2002 - Harness Tracks of America, Inc.

HARNESS TRACKS OF AMERICA
Executive Newsletter
A daily fax and e-mail report on racing and gaming developments in North America and beyond
Stanley F. Bergstein, Editor
SCHWEIBEL LEAVES BUFFALO
Jerry Schweibel, general manager of Buffalo Raceway
and the track’s HTA and USTA director for
the last 10 years, is leaving the post, effective tomorrow.
Jerry, an innovator and promoter, says it
is time to move on, and his boss, Buffalo CEO
Dennis Lang, called his departure a “mutual agreement”.
Schweibel’s wife suffered a health scare
last week, and Schweibel says it caused him to
reevaluate stress and work and life in general, although
he added that he feels he still has much to
offer to the industry. Lang said the society’s board
will search for a new general manager after the
track’s current meeting ends July 27, when Batavia
Downs will resume racing under the aegis of HTA
associate member Western Regional OTB.
INDIANA SLOTS BACK IN NEWS
Yogi Berra’s old cry of “It ain’t over ’til it’s over”
was ringing through Indianapolis yesterday, as the
South Bend Tribune reported that expectations
are high that when lawmakers reconvene next
month to discuss the state’s budget crisis and tax
structure slots, in the form of pull tabs, may jump
back into consideration. They were passed over
in the recent session of the legislature, but one
legislator, Rep. Scott Pelath of Michigan City, said
expanded gambling “is not an issue that goes away.
In fact, it hovers over every discussion of the budget.”
That does not mean the pull tabs will find
adequate support, however, for Larry Borst, a key
figure in the legislature long considered a friend
of racing, opposes the idea, as does Gov. Frank
O’Bannon. In fact, the Tribune says support for
pull tabs could narrow if a broadly written bill that
would include them were introduced, because of
Borst’s and O’Bannon’s opposition. Borst instead
is proposing higher taxes on casino admissions as
the solution to the budget shortfall. They
could help racing, depending on how such
legislation was written.
April 29, 2002
Indiana’s riverboat casinos, which want flexibility
on dockside gambling, naturally oppose the Borst
proposal, which calls for a rise from $3 to $4 on
the riverboat casinos, and an increase on taxes on
casino revenues from 20% to 22.5%, which he says
will raise more than $800 million over three years.
A lawyer and lobbyist for seven Indiana casinos,
Phillip Bainbridge, summarized the special session
by saying, “I’ve long given up saying this can’t
happen unless that happens. You have to assume
that anything can happen.” Indiana’s two tracks,
Hoosier Park and Indianapolis Downs, currently
under construction, will have to pin their hopes on
Bainbridge’s assessment.
A ‘RIDICULOUS’ OFFER BY FAX
Shawn Scott, who bought Delta Downs for $10
million and sold it two years later to Boyd Gaming
for $110 million (or was it $120 million or $130
million? Reports vary) and is trying to buy Vernon
Downs, now has launched another track offer, this
one by fax. Scott is trying to buy Ruidoso Downs
in New Mexico and its Billy the Kid casino from
veteran track operator R. D. Hubbard, without a
phone call or personal contact, according to track
president Bruce Rimbo. Rimbo, once publicist
for harness racing at Los Alamitos, says Scott simply
faxed the track saying he would buy it and the
casino for $6 million. Rimbo called the offer “so
ridiculous that it’s not worth responding to. It just
appeared on our fax machine.” Scott also is bidding
against Hubbard for the right to build still
another track in far southeastern New Mexico.
Scott filed an application with the New Mexico
Racing Commission saying he would build a $30
million racetrack and casino in the little town of
Hobbs on the Texas border. The location might at
first appear remote, but is less than 75 miles from
three busy Texas cities, Lubbock, Odessa and
Midland.