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
PRICE OF POOL GOING UP
VLTs and slots may level the playing field, which
usually is cited as the reason for their need, but
the price of acquiring them is going up. Last week
the Illinois Gaming Board turned down an offer of
$330 million to allow the owners of the stalemated
Emerald Casino to sell its license to MGM/Mirage.
Now come the Wampanoags of Massachusetts,
offering the state up to $100 million as an
upfront cash advance if it will allow them to build a
giant Indian casino in southeastern Massachusetts
as a buffer to the exodus of citizens of that state
who travel to neighboring Connecticut to gamble
in the two hugely successful Indian casinos there.
The Wampanoags are pointing out to legislators
that Connecticut has a budget shortfall of only
$200 million or so, while Massachusetts has one
in the $2 billion range. The outlook for the
Wampanoags, however, does not appear much
brighter than for the four race tracks in Massachusetts,
which saw their bid for VLTs shot down
in the legislature in recent days. The
Wampanoags, while offering the $100 million
upfront to help the state while they build their casino,
estimate annual taxes from the venture would
produce more than $200 million a year once up
and operating. The chairman of the Massachusetts
House’s powerful Government Regulations
committee, Rep. Daniel Bosley, takes a dim view
of the proposal. He told the Boston Herald that
the Wampanoag offer “sounds like a bad movie
where you borrow money from the gambling interests
and they come after you later when you don’t
pay.” It would seem he either sees too many mob
movies or too many Westerns. A more credible
source, the Rev. Richard McGowan, a Boston College
professor called “a gaming expert” by the
Herald says he doubts a Massachusetts casino
would do as well as those in Connecticut.
“In economics,” McGowan says, “it is
what we call the first mover advantage.”
May 20, 2002
EPO ‘PROHIBITED SUBSTANCE’
In a welcome move in the right direction, the board
of the Association of Racing Commissioners recently
announced a drug classification change of
significance. Under a heading of “Prohibited Practices,”
the RCI announced that possession or use
of erythoropoietin and its derivative darbepoetin
now fall into that category. The two controversial
drugs are prohibited under a rule change covering
“The possession and/or use of a drug, substance
or medication, on the premises of a facility under
the jurisdiction of the regulatory body for which a
recognized analytical method has not been developed
to detect and confirm the administration of
such a substance; or the use of which may endanger
the health and welfare of the horse or endanger
the safety of the rider or driver, or the use of
which may adversely affect the integrity of racing.”
Now for the next, and urgent, step: to develop
“a recognized analytical method” to detect
the two prohibited substances.
ELSEWHERE ON THE TRAIL
While the rest of the country struggles toward unanimity
in medication rules, 6 of the 13 horses in
the PREAKNESS ran on “adjunct bleeder medications”
allowed in Maryland......After $4 million
in renovations to the 128-year-old RED MILE,
managing partner Joe Costa says “We’re ready
to cook.” In addition to a new $1 million lighting
system, the track has new underground audio/visual
wiring and transformers, a new track surface,
repaired fences, a paved parking lot, roof renovations
and other infrastructure improvements.
Opening weekend drew 6,000, compared to 2,225
last spring......SUFFOLK OTB president Mea
Knapp said “we smiled when we saw the bid,” after
selling a long-vacant OTB in Patchogue for $1.7
million....veteran tote executive KEVIN O’KEEFE
is retiring May 31 as executive VP and CEO
of United Tote.