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
MACH THREE AND MONEY
With Western Shooter and Louie Louie Too both
gone, Mach Three clearly is the horse to beat in
this year’s 3-year-old pacing division. He acted
like the best again Saturday night winning the
$300,000 Berry’s Creek at the Meadowlands. But
a controversial side of the Mach Three story came
to light Saturday when Standardbred Canada editor
Harold Howe, writing in the Hamilton, Ontario
Spectator, told of an apparent disagreement, or at
least an abrupt change of mind, between Linda
Magid, owner of the colt, and a four-member group
headed by major breeder Peter Heffering which
thought they had bought Mach Three. Heffering
told Howe the group had already wired the money
to Ms. Magid, and he said the price was “a very
large sum.” That was not surprising since Mach
Three had won $954,708 as a 2-year-old last season
and a half-interest reportedly was priced at
$750,000 in recent weeks. Unaware of all this,
Mach Thee looked supremely at ease and confident
in winning Saturday night, and Ms. Magid --
apparently feeling the same -- now says the horse
is not for sale.
THE HIGH COST OF RUNOFF
The American Horse Council has been working
for a year or more with the Environmental Protection
Agency, the federal bureau controlling effluent
limitation guidelines and water pollution. Racetracks
have fallen under the agency’s purview, and
just how expensive this can be was illustrated last
week with completion of Portland Meadows’
project to prevent storm water runoff from the
track’s stable area. The job cost $750,000, and
horses are starting to return to the track’s backstretch
today, three months after the track was
forced to end its meeting two and a half-months
early because the EPA said it was not in
compliance. Magna Entertainment, which
leases the track, plans to build a new one
nearby after the lease expires in 2005.
May 13, 2002
THE FEDS AND NYRA CLERKS
The Albany Times Union reported yesterday that
the Internal Revenue Service has launched “a
widespread investigation” into Saratoga Race
Course mutuel clerks who allegedly borrowed
money regularly from their cash drawers but did
not report the money as income. An unidentified
teller told the newspaper that colleagues ‘shorted’
their cash drawers, and if they were unable to pay
back the shortages by week’s end, they filled out
a ‘short slip’ to have that amount taken out of their
NYRA paychecks. NYRA provided clerks a yearend
summary of how much NYRA was reimbursed
by the clerks for the shortages, but the clerks reportedly
then did not report those ‘loans’ as income.
“If they shorted $30,000 and didn’t report
it, they would only have $20,000 taxable instead
of $50,000,” the clerk told the Times Union. If
the investigation was a surprise to the newspaper,
it was not to the New York State Racing and Wagering
Board, nor to NYRA, both of which said
they were aware of investigations that have been
ongoing for some time. Mike Hoblock, chairman
of the racing board, said the federal investigation
has been underway for two years, and that the
board has cooperated with federal authorities.
NYRA said both state and federal investigations
are underway and continuing, but would not discuss
specifics.
HONG KONG HITS OFFSHORE
It won’t be official until May 22, but insiders say it
is certain that legislation to prohibit offshore bookmakers
from taking bets from Hong Kong residents,
and to make it illegal for residents to place
such bets, will pass on that date. One close observer
said, “It’s pretty much a done deal.” When
asked, in view of the same issue pending in North
America, how the government intended to monitor
and catch offenders, the answer was “Not
surprisingly, the government has no real answer.”