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April - Harness Tracks of America, Inc.

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HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor<br />

WESTERN SHOOTER PUT DOWN<br />

Western Shooter, the outstanding 2-year-old pacer<br />

<strong>of</strong> 2001, winner <strong>of</strong> $904,000 and last year’s Breeders<br />

Crown and Governor’s Cup and top-rated in<br />

this year’s Experimental Handicap <strong>of</strong> 3-year-olds,<br />

was euthanized Saturday evening at the Biederman<br />

Veterinary Clinic in Maidstone, Ontario. Owned<br />

by trainer Bob McIntosh, the CSX Stables <strong>of</strong> Ohio,<br />

Michael Koehler <strong>of</strong> Michigan and Walnut Hall Ltd.<br />

<strong>of</strong> Lexington, the colt was named champion juvenile<br />

pacer <strong>of</strong> 2001 by both <strong>Harness</strong> <strong>Tracks</strong> <strong>of</strong><br />

<strong>America</strong>’s racing secretaries and the United States<br />

<strong>Harness</strong> Writers Association. He developed a lump<br />

on his neck two weeks ago and was treated at Ohio<br />

State University’s Veterinary Clinic. A week ago<br />

today he was sent home to Ontario, where his condition<br />

— diagnosed as toxemia — worsened. He<br />

was sent to the Biederman Clinic and appeared to<br />

improve by mid-afternoon Saturday, but he then<br />

suffered a relapse, and as he sank into severe distress<br />

in the early evening the decision was made<br />

to end the brilliant young pacer’s suffering, and he<br />

was euthanized at 7:30 p.m. His death removes<br />

from the scene a colt that owner-trainer McIntosh,<br />

who has conditioned some <strong>of</strong> the most successful<br />

horses in the sport, said “He goes fast easy, and<br />

does it easier than any I’ve ever trained.”<br />

RACING VS. BOATS IN IOWA<br />

Iowa’s discriminatory taxation <strong>of</strong> racing’s slots at<br />

tracks as opposed to the state’s gambling<br />

riverboats has reached the Iowa Supreme Court,<br />

which now will decide the constitutionality <strong>of</strong> the<br />

widely disparate rates. The Racing Association <strong>of</strong><br />

Central Iowa, which operates Prairie Meadows<br />

Racetrack and Casino, is challenging the present<br />

structure under which the track’s casino revenues<br />

are taxed on a graduating scale that has risen<br />

2% a year from 20% in 1994 to 32% at<br />

present, and will continue to rise for two<br />

more years to 36% in 2004.<br />

<strong>April</strong> 1, 2002<br />

Iowa’s riverboats, meanwhile, continue to be taxed<br />

at a maximum rate <strong>of</strong> 20%. The rationale <strong>of</strong>fered<br />

for the differing rates by Iowa assistant attorney<br />

general Jeffrey Farrell seem ludicrous. He argues<br />

that the state was trying to keep riverboats from<br />

leaving Iowa, which some did, and that it was not<br />

interested in attracting more racetracks. He also<br />

noted that riverboats, under the law, were required<br />

to have historic river themes, and the tracks are<br />

not. One Supreme Court judge last Friday, responding<br />

to Farrell’s argument about keeping riverboats<br />

in Iowa, asked, “If people were leaving western<br />

Iowa, could we tax them at a different rate than in<br />

central Iowa” If having to maintain river themes<br />

is a valid reason for hugely disparate tax rates,<br />

then Prairie Meadows would seem to have an easy<br />

solution. Paint historic Iowa rivers on all <strong>of</strong> the<br />

walls. A Polk county district judge agreed with the<br />

state’s arguments in December, 2000, but the Supreme<br />

Court now will consider the matter. A decision<br />

is not expected to be handed down for several<br />

months, but if Prairie Meadows prevails Polk<br />

county could owe the racino a rebate <strong>of</strong> $60 million,<br />

Bluffs Run Greyhound Park in Council Bluffs<br />

could receive $49 million and Dubuque Greyhound<br />

Track and Casino could get $12 million in refunds.<br />

NEW POST FOR HARTMANN<br />

Joe Hartmann, veteran publicist and former general<br />

manager <strong>of</strong> HTA member Plainridge Racecourse,<br />

has been named executive director <strong>of</strong> the<br />

Florida Standardbred Breeders and Owners Association.<br />

Past president and chairman <strong>of</strong> the board<br />

<strong>of</strong> the United States <strong>Harness</strong> Writers Association,<br />

Hartmann also has served as president <strong>of</strong> the<br />

North <strong>America</strong>n <strong>Harness</strong> Publicists Association,<br />

director <strong>of</strong> communications at Pompano Park, director<br />

<strong>of</strong> public relations at the Red Mile, and director<br />

<strong>of</strong> simulcasting at the Little Brown Jug. He<br />

takes over his new duties a week from today.


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor<br />

WILL THEY OR WON’T THEY<br />

The New York State Racing and Wagering Board<br />

is meeting at Vernon Downs today to decide on a<br />

2002 license for the financially embattled track.<br />

Track president Justice Cheney thought that the<br />

fact that the board had moved its meeting from<br />

yesterday in Albany to Vernon today was an encouraging<br />

sign, saying “they will get a chance to<br />

see how important our license is to the local<br />

people and the local area.” Vernon hopes to open<br />

its 50th season <strong>of</strong> racing May 3, but the racing<br />

board wants to review its financial status and<br />

hear details <strong>of</strong> the $8.5 million, 2-year-loan, at<br />

15% interest, from Las Vegas entrepreneur<br />

Shawn Scott, and the threatened lawsuit by the<br />

Eric Cherry group that exercised an option to<br />

buy the track for $9 million but can be voted<br />

down by Scott, who has gained control <strong>of</strong> almost<br />

40% <strong>of</strong> Vernon’s stock.<br />

POMPANO DEAL CHALLENGED<br />

Pompano Park’s agreement to exchange simulcast<br />

signals with Gulfstream Park, which got<br />

underway on Sunday, March 24 and was challenged<br />

by the Florida Division <strong>of</strong> Pari-Mutuel<br />

Wagering two days later, now is under reconsideration<br />

following a teleconference between<br />

Pompano, Gulfstream and Calder <strong>of</strong>ficials and<br />

attorneys, horsemen’s reps, the Division, and the<br />

Bureau <strong>of</strong> Business Regulation, which oversees<br />

the Division. The Division contends that the exchange<br />

is contrary to Florida law and told the<br />

tracks they had exposed themselves to “potential<br />

disciplinary action by the state.” Lawyers<br />

for the tracks disagree with that interpretation,<br />

have a different view <strong>of</strong> the statute, and presented<br />

their opinions accordingly. Track <strong>of</strong>ficials said<br />

they considered the conference to have been a<br />

good meeting and look forward to further<br />

dialogue with the Division, and are continuing<br />

the daily simulcast exchanges pending<br />

further word.<br />

<strong>April</strong> 2, 2002<br />

FEINBERG FLIES UNITED<br />

Regardless <strong>of</strong> how the cross-breed simulcasting<br />

discussions turn out, Pompano Park general<br />

manager Dick Feinberg flies on in national commercials<br />

for United Airlines. A United spot shows<br />

one <strong>of</strong> its huge airliners with “Richard Feinberg”<br />

painted large on the side <strong>of</strong> the fuselage. The<br />

commercial goes on to say that “We fly 120 (or<br />

whatever the number) 747s and one Richard<br />

Feinberg.” That should be good for a few years<br />

-- maybe a lifetime --<strong>of</strong> free first-class tickets to<br />

anywhere, Dick. Look into it.<br />

BAD NEWS COMES IN THREES<br />

The old adage hit harness racing hard in the last<br />

week. First came the collapse and death <strong>of</strong> Louie<br />

Louie Too, third ranked 3-year-old pacer in this<br />

year’s Experimental Handicaps, while preparing<br />

for a training mile for Joe Holloway last<br />

Wednesday at Showplace Farm in New Jersey.<br />

Then the top rated colt, Western Shooter, was<br />

euthanized in Ontario. And yesterday trainer<br />

Chris Marino announced that the 3-year-old<br />

trotting filly <strong>of</strong> 2001, Syrinx Hanover, undefeated<br />

in 12 starts last year, was being retired after going<br />

lame while training at the Red Mile in Lexington,<br />

Ky. She will be bred to the red hot trotting<br />

sire Garland Lobell.<br />

GOT A PROBLEM RAISE TAKE<br />

California, like the rest <strong>of</strong> the country, is facing<br />

a major problem as insurance premiums soar.<br />

No <strong>of</strong>ficial approach has been taken yet, but discussions<br />

at a California Horse Racing Board<br />

meeting last week floated the idea <strong>of</strong> s<strong>of</strong>tening<br />

the blow by -- you guessed it -- raising takeout,<br />

and have the constantly diminishing public that<br />

bets on racing underwrite the cost. The<br />

Thoroughred Owners <strong>of</strong> California think they will<br />

support the idea. One who won’t is the<br />

CHRB’s vice chairman Roger Licht, who<br />

says he opposes a hike in takeout.


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor<br />

VERNON TRIES AGAIN TODAY<br />

The New York Racing and Wagering Board, meeting<br />

yesterday at Vernon Downs, declined to license<br />

the track and tabled the matter, raising questions<br />

about financing including the status <strong>of</strong> Shawn Scott,<br />

the Las Vegas investor who has loaned Vernon<br />

$8.5 million to stay afloat. The track used $3.5<br />

million to avoid foreclosure on its Vernon Country<br />

Suites Hotel, where yester-days’ racing board<br />

meeting was held. Board chairman Mike Hoblock<br />

said the board had spent six months investigating<br />

Eric Cherry’s agreement to buy Vernon, but had<br />

only a week or so to check on Scott’s bid and his<br />

background. The board’s deputy director <strong>of</strong> audits<br />

and investi-gations reported yesterday that<br />

during that brief time he found “regulatory compliance<br />

issues” involving Scott in other states. In<br />

response, Scott said he would relinquish any control<br />

over the Mid-State Raceway board, which<br />

operates Vernon Downs, and over Vernon president<br />

Justice Cheney, while the board was checking<br />

his own credentials. Cheney said the 15%<br />

annual interest Scott is charging for his loan was<br />

not out <strong>of</strong> line with other loans Vernon has taken<br />

out in recent years, and the Associated Press reported<br />

the track carried seven mortgages. Racing<br />

board executive director asked Cheney about<br />

Vernon’s future financial viability if it received an<br />

interim license, and Cheney replied, “I don’t have<br />

an answer for you.” Former HTA and Maryland<br />

Jockey Club executive Jim Mango, now a Mid-<br />

State Board member representing Eric Cherry, said<br />

Cherry was willing to risk his investment with other<br />

shareholders, but that Scott had little personal risk<br />

if the track fails. Also representing Cherry yesterday<br />

was Morty Finder, a longtime figure in the<br />

sport, who said Mid-State’s action raised “an<br />

aroma <strong>of</strong> double-dealing” that might require court<br />

action. Racing board chairman Hoblock<br />

said the board would consider the application<br />

again today.<br />

<strong>April</strong> 3, 2002<br />

NEXT WORD FROM BUFFY<br />

Taking a light touch, this is how the Lexington<br />

Herald-Leader’s Janet Patton sized up the struggle<br />

for VLTs for tracks in Kentucky today, under a<br />

headline reading, “Slots bill is dead, or maybe it<br />

isn’t. Patton is noncommittal.”<br />

Ms. Patton’s story read, “The slots bill is<br />

dead....unless it gets sucked into the budget freefor-all.<br />

Otherwise, the slots bill is dead.....unless<br />

the budget bickering blossoms into a special legislative<br />

session. But otherwise, the slots bill really<br />

is dead....unless the governor calls a special<br />

session just for slots. For now, until we hear from<br />

Buffy the Vampire Slayer, the slots bill is slumbering<br />

in a dead-end committee with a Senate stake<br />

in its mechanical-fruit heart.......An <strong>April</strong> Fool’s Day<br />

joke pretended to spring the controversial bill for<br />

a vote, but later on Monday night, House Bill 768<br />

was quietly buried in the Appropriations and Revenue<br />

committee.”<br />

Proponents, including the House bill’s sponsor,<br />

Rep. Jim Callahan, the Majority Caucus chairman,<br />

promised they would be back. Callahan said if there<br />

were no agreement on the state budget and a special<br />

session is called, he will ask Gov. Paul Patton<br />

to consider putting slots on the table. Patton was<br />

non-committal about doing so if he calls a special<br />

session on the budget, saying, “Slots have not<br />

been our agenda, and we never proposed a budget<br />

based on slots.” And if that were not negative<br />

enough, House Speaker pro tem Larry Clark, a<br />

strong supporter <strong>of</strong> the bill, said, “I think it’s probably<br />

at the funeral home right now.”<br />

In Arizona, Gov. Jane Hull said the state’s horse<br />

and dog tracks were lying and distorting facts on<br />

her plan to continue Indian casino operations. She<br />

told legislators tracks were “playing fast<br />

and loose with the truth” in radio and newspaper<br />

ads they ran opposing her plan.


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor<br />

RACING WAITS ON EMERALD<br />

And it may be a long wait. The Emerald Casino,<br />

whose gaunt steel skeleton holds high promise for<br />

Illinois racing at some distant date, is in more deep<br />

controversy. Kevin Flynn, who says he and his<br />

relatives have put nearly $40 million into the illfated<br />

casino, now says he will fight to prevent anyone<br />

else from gaining rights to the project until his<br />

family is assured <strong>of</strong> “a fair return” on its investment.<br />

Flynn did not tell the Chicago Tribune what<br />

a “fair return” would be, but the newspaper reports<br />

that had the Illinois Gaming Board approved<br />

a sale <strong>of</strong> the Emerald license to MGM Mirage,<br />

which it did not, the Flynn family would have received<br />

some $240 million. Fair enough.<br />

Flynn says that “if we can’t find a middle ground,<br />

we will have to work to vindicate ourselves and<br />

our reputations in a court <strong>of</strong> law.” The Gaming<br />

Board last year found Flynn and his father Donald,<br />

a former Waste Management executive, unsuitable<br />

for a casino license, saying they had lied to<br />

regulators and sold shares to mob-related figures.<br />

A spokesman for a minority investor group that<br />

includes the widow <strong>of</strong> Chicago Bears hero Walter<br />

Payton told the Tribune the Flynns “are trying to<br />

milk every dime out <strong>of</strong> a deal they frankly don’t<br />

have any right to. To be standing at the rail demanding<br />

pr<strong>of</strong>it is just audacious.”<br />

In another Emerald development, in which Donald<br />

Stephens, the mayor <strong>of</strong> suburban Rosemont where<br />

the casino is located, is trying to have a cap placed<br />

on the size <strong>of</strong> the subsidy that would go to tracks<br />

from the casino’s revenues. The Illinois House<br />

Republican leader told Stephens he would not support<br />

a reduction. A bill doing just that passed a<br />

House committee yesterday, however, on a party<br />

line vote, and Democrats also control the<br />

full House, where it may be voted on today<br />

or tomorrow.<br />

<strong>April</strong> 4, 2002<br />

Stephens, who never objected to the track share<br />

until recently, now calls the law as currently written<br />

“a rip-<strong>of</strong>f for the horse-racing industry.”<br />

Other Illinois Gaming Board developments also<br />

are making news in Chicago. Three days after<br />

retiring from the board, its deputy administrator<br />

signed on as executive director <strong>of</strong> the Illinois Casino<br />

Gaming Association. A board spokesman said<br />

the board found no conflict <strong>of</strong> interest, but public<br />

watchdog organizations are enraged.<br />

AND WHILE ROME BURNS<br />

The Nebraska attorney general plans to ask the<br />

state Supreme Court to decide whether betting on<br />

horses by telephone violates the state’s constitution.<br />

Citing a law passed 68 years ago that specifies<br />

that betting is limited “to wagering that takes<br />

place inside the confines <strong>of</strong> a racetrack”, he questions<br />

whether account wagering, approved for several<br />

tracks by the state’s racing board, is legal.<br />

The tracks contend that courts in other states have<br />

held that since telephone bets are recorded at a<br />

track, that technically satisfies any “on-site” requirement.<br />

The tracks’ attorney says telephone<br />

betting is no different than someone making a cell<br />

phone call to a friend at a track and asking him to<br />

place a bet on their behalf. “This conduct is clearly<br />

legal and not in violation <strong>of</strong> any statutory <strong>of</strong> constitutional<br />

provisions,” he said.<br />

INDIANS REVISIT MONTICELLO<br />

A dissident faction <strong>of</strong> the St. Regis Mohawk tribe<br />

in New York state, not currently recognized by the<br />

U.S. government, now claims it has new rights under<br />

a recent federal court decision, and says it plans<br />

to revive efforts to build a casino at Monticello<br />

Raceway. The government recognizes three chiefs,<br />

who ditched a Mohawk Monticello agreement for<br />

one with Park Place Entertainment, as the legal<br />

representatives <strong>of</strong> the tribe.


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor<br />

D-DAY FOR ILLINOIS TRACKS<br />

The Illinois House was scheduled to vote today on<br />

a measure that would sharply reduce racetracks’<br />

shares <strong>of</strong> revenue from the Emerald Casino, currently<br />

in skeletal limbo in the Chicago suburb <strong>of</strong><br />

Rosemont. Under original legislation tracks were<br />

to get a 15% share <strong>of</strong> the proposed casino’s revenues<br />

to modify the impact <strong>of</strong> the increased competition.<br />

Wednesday a House Government Administration<br />

committee voted 5-3 for slicing that<br />

to 15% <strong>of</strong> the state’s tax revenue share. Today is<br />

the final day for a vote in the full House, and a<br />

close vote is expected if one is called.<br />

CASINO GIVES UP TAX FIGHT<br />

An Indiana riverboat casino, Caesars Indiana, has<br />

decided after a two-year fight and adverse opinion,<br />

not to ask for a rehearing in its request for a<br />

50% reduction <strong>of</strong> its 1999 property tax assessment.<br />

Caesars’ argument was that it had encountered<br />

unexpected business reverses, and had<br />

pleaded “economic obsolescence”, defined as a<br />

loss <strong>of</strong> value from factors beyond its control. They<br />

cited low water levels on the Ohio river that created<br />

a two-week shutdown in July 1999, delays in<br />

building their 500-room hotel, and an accident<br />

between their 5,000 passenger riverboat and a<br />

barge. Business men and farmers told the tax review<br />

board they would file for similar tax breaks if<br />

the board granted Caesars’ request, and the board<br />

told Caesars, “Sorry, but no.” Caesars says it<br />

still thinks it is entitled to the reassessment, but<br />

that it has decided it isn’t worth the money, time<br />

and effort to appeal any further. A favorable decision<br />

for Caesars would have cost Harrison county,<br />

where the riverboat is located, $275,000. In another<br />

loud “No!”, the town council <strong>of</strong> Scarborough,<br />

Maine, banned VLTs in the business zone in which<br />

Scarborough Downs is located. The track<br />

and horsemen had argued their economic<br />

viability depended on the track getting the<br />

slots.<br />

<strong>April</strong> 5, 2002<br />

CONGRESS SPEECHES ON WEB<br />

Transcripts <strong>of</strong> individual and panel presentations<br />

from the <strong>Harness</strong> Racing Congress in Las Vegas<br />

now are available on the public section <strong>of</strong> <strong>Harness</strong><br />

<strong>Tracks</strong> <strong>of</strong> <strong>America</strong>’s Web site,<br />

www.harnesstracks.com, and more are being<br />

added daily as transcriptions are completed. Currently<br />

available (click on red on Web site):<br />

The Medication Issue: Is There Light at the End<br />

<strong>of</strong> the Tunnel, with Lonny T. Powell, president<br />

and CEO, Racing Commissioners International,<br />

and Alan Foreman, chairman/CEO Thoroughbred<br />

Horsemen’s Association and author <strong>of</strong> a new plan<br />

for uniform medication.<br />

Living with the People Who Regulate Your Lives.<br />

Bennett Liebman, Albany Law School, former<br />

member New York Racing and Wagering Board.<br />

Making Money Legally Without Losing Your Sanity:<br />

Some Thoughts on Managing in the Racing<br />

Industry. Dr. Lyle Sussman, pr<strong>of</strong>essor <strong>of</strong> management,<br />

School <strong>of</strong> Business, University <strong>of</strong> Louisville.<br />

The Realities <strong>of</strong> International Simulcasting. Tom<br />

Aronson, senior vice president, international, Television<br />

Games Network.<br />

Big and Small: What’s Ahead for <strong>Harness</strong> Racing<br />

in the Age <strong>of</strong> Giants John R. Long, president,<br />

Churchill Downs Management, and executive VP<br />

and COO, Churchill Downs, and David Willmot,<br />

president/CEO, Woodbine Entertainment Group<br />

and immediate past president, HTA.<br />

Print, Radio and TV Coverage in the Age <strong>of</strong> Simulcasting,<br />

with journalists Bill Heller; Alan<br />

Kirschenbaum; Debbie Little, New York Post; Rob<br />

Longley, Toronto Sun; and Phil Pikelny,<br />

Landmark Broadcasting.<br />

.


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor<br />

SCIOTO ROAR IS MOTORCYCLES<br />

For the first time in its 43-year history, something<br />

other than trotters and pacers will race around<br />

Scioto Downs’ five-eighth mile track later this<br />

month, and you won’t have any trouble hearing<br />

them. The roar and rumble <strong>of</strong> 750cc motorcycles<br />

will be heard loud and clear, as the <strong>America</strong>n Motorcycle<br />

Association presents the third leg <strong>of</strong> the<br />

AMA Progressive Insurance U.S. Flat Track<br />

Championship at Scioto Sunday, <strong>April</strong> 21. Scioto<br />

general manager Ed Ryan says the track is thrilled<br />

to be hosting the Buckeye National, and thinks<br />

the event will attract not only existing flat track<br />

fans, but his harness racing fans as well. “The<br />

entire family will have fun spending a day at the<br />

motorcycle races, and afterwards they can go to<br />

the pits and meet the racers.” We wonder if Scioto<br />

publicist Anne Doolin will hustle this one as “Going<br />

to the pits”. And we think Scioto is fortunate<br />

in having one <strong>of</strong> the best track builders and conditioners<br />

in the business as its general manager: Mr.<br />

Ryan himself. He may have a great time Monday,<br />

the 22d, putting his track back together, particularly<br />

since the cyclists’ operations manager<br />

says, “It’s a fast track with 14-degree banking in<br />

the corners. The riders should be able to get a<br />

heck <strong>of</strong> a run down the straights coming <strong>of</strong>f banked<br />

turns. It should make for great racing.”<br />

PLAINRIDGE, BIG M, FOR YOUTH<br />

Two HTA tracks are stepping up to the plate with<br />

solid support for one <strong>of</strong> the sport’s most valuable<br />

assets, the <strong>Harness</strong> Horse Youth Foundation.<br />

Plainridge Racecourse in Massachusetts is donating<br />

100% <strong>of</strong> proceeds on ticket sales for its Kentucky<br />

Derby Raffle to the HHYF, and the Meadowlands<br />

in New Jersey will be the site <strong>of</strong> an exceptional<br />

wine tasting event in conjunction<br />

with its Berry Creek final that should prove<br />

to be a solid winner for the HHYF.<br />

<strong>April</strong> 8, 2002<br />

Thanks to the efforts <strong>of</strong> Paul Fontaine at Plainridge<br />

and Jonathon Newman at the Meadowlands, the<br />

Youth Foundation should kick <strong>of</strong>f the spring-summer<br />

season with two winners. At Plainridge, the<br />

promotion gives the lucky winner <strong>of</strong> the track’s<br />

Kentucky Derby Raffle on Saturday, <strong>April</strong> 27, a<br />

$5,000 bet on the Derby. Tickets are $1 each, and<br />

the bet must be placed through the windows at<br />

Plainridge at least an hour before post for the<br />

Derby May 4. Fontaine, who is vice president <strong>of</strong><br />

the Youth Foundation, says, “This is a no-lose<br />

fundraiser with a huge potential for the winner <strong>of</strong><br />

the raffle. The Foundation appreciates the cooperation<br />

<strong>of</strong> the track and management to include us<br />

and, given the nature <strong>of</strong> our industry we feel there<br />

should be a market for the ticket sales.”<br />

At the Meadowlands, fundraiser organizer and<br />

Youth Foundation trustee Newman says <strong>of</strong> the wine<br />

tasting, “This event is extremely exciting. Not<br />

only will the finest wines be served with a paired<br />

dinner at the Meadowlands, but the proceeds will<br />

benefit the Foundation whose work is vital to harness<br />

racing. Wine enthusiasts should certainly<br />

plan to attend this rare opportunity to enjoy some<br />

<strong>of</strong> the very best wines in the world.” Wines will<br />

include those from the domaine <strong>of</strong> Chateau Lafite<br />

Rothschild, Chateau Latour, Chateau Mouton<br />

Rothschild, Chateau Haut Brion and Chateau<br />

Margaux. A tax deductible contribution <strong>of</strong> $1,000<br />

per person will help educate young people about<br />

all facets <strong>of</strong> harness racing.<br />

ANOTHER WOODBINE WINNER<br />

Woodbine Entertainment’s 2002 Media Guide is<br />

out, and it’s another open length winner. In a slick<br />

and shiny black cover and 5 1/2 x 8 1/2 format,<br />

uses the effective back-to-back upside- down presentations<br />

for harness and thoroughbred racing,<br />

and includes a CD on stakes results in an inside<br />

back cover pocket.


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor<br />

VERNON GETS TEMP LICENSE<br />

The New York Racing and Wagering Board yesterday<br />

issued a temporary 90-day racing and simulcasting<br />

license to Mid-State Raceway, the parent<br />

<strong>of</strong> Vernon Downs, which will enable the track<br />

to open its season as scheduled on May 3. Although<br />

the racing board staff expressed concern<br />

about licensing pending further investigation,<br />

board chairman Mike Hoblock said, “I think this<br />

is the best we can do under the circumstances,”<br />

adding that the track was “about a day” from being<br />

closed down. The issues <strong>of</strong> concern included<br />

the role <strong>of</strong> investor Shawn Scott and and regulatory<br />

compliance issues involving him. Scott’s $8.5<br />

million loan enabled the track to meet outstanding<br />

obligations and kept it from losing its stretch turn<br />

hotel.<br />

Under the terms <strong>of</strong> the conditional license, Scott<br />

and his associates are prohibited from being involved,<br />

directly or indirectly, in the management<br />

or affairs <strong>of</strong> Vernon, or <strong>of</strong> directly or indirectly influencing<br />

its directors, <strong>of</strong>ficers or employees in<br />

any way. Failure to comply with the conditions set<br />

forth by the board, or derogatory information concerning<br />

the licsensibility <strong>of</strong> Shawn Scott, the lender<br />

entities or those individuals or entities associated<br />

with the lender’s interests would result in termination<br />

<strong>of</strong> the temporary licenses prior to July 6, 2002,<br />

their ending date. Vernon president and CEO said<br />

he had no complaints with the conditions, and said<br />

that “if Scott wants to participate with Vernon<br />

Downs, I’m sure he’ll cooperate in every way possible.”<br />

SIMULCASTING TRIAL ENDS<br />

Bowing to racing regulators’ view that cross-breed<br />

simulcasting between Pompano and<br />

Gulfstream Parks violated Florida law, the<br />

two tracks ended their experiment yesterday.<br />

Dick Feinberg, Pompano’s GM, said<br />

racing fans were the biggest losers.<br />

<strong>April</strong> 9, 2002<br />

Both tracks plan to pursue the matter, seeking an<br />

immediate review and “judicial resolution” <strong>of</strong> the<br />

issue. Under the agreement, the two tracks were<br />

exchanging their simulcast signals, and Feinberg<br />

said the cross-breed simulcasting “has been enjoyed<br />

by hundreds <strong>of</strong> racing fans who have appreciated<br />

the convenience <strong>of</strong> watching and wagering<br />

on thoroughbred racing at Pompano.” Pompano’s<br />

daily simulcasts <strong>of</strong> other out-<strong>of</strong>-state thoroughbred<br />

action after 6 p.m. is not affected by the ban.<br />

SCHWARTZ CALLS FOR MERGER<br />

Blood-Horse Interactive reports today that the<br />

magazine has obtained a copy <strong>of</strong> a late February<br />

letter sent by New York Racing Assn. chairman<br />

Barry Schwartz to New York City mayor Michael<br />

Bloomberg, saying a merger between New York<br />

City OTB and NYRA “would have no downside”<br />

and would make New York racing able to compete<br />

more effectively against Magna Entertainment and<br />

Churchill Downs, which NYRA considers competition.<br />

According to Blood-Horse, Schwartz <strong>of</strong>fered<br />

to share excess pr<strong>of</strong>it above base numbers equally<br />

with OTB, and said the idea would provide “substantial<br />

budget relief to the city in the near term,<br />

and enormous potential for long-term economic development<br />

over the coming decades.” Schwartz<br />

told the mayor that Magna, which thought it had<br />

bought New York City OTB under the Giuliani<br />

administration, and Churchill had a strategy <strong>of</strong><br />

“driving a wedge between NYRA and NYCOTB”.<br />

He said New York was “in grave danger <strong>of</strong> losing<br />

out leverage in the industry,” and that merger could<br />

make New York “a dominant force in determining<br />

the price for which races are bought and sold in<br />

the simulcast market.” He said unions, which opposed<br />

the sale <strong>of</strong> NYCOTB last year, would accept<br />

a merger, and talked <strong>of</strong> “crafting a merger<br />

that will be satisfactory to all concerned.”


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor <strong>April</strong> 10, 2002<br />

“A DELICATE BALANCE” SLOTS FOR SCHOOLS IN MD<br />

A noisy, nasty fight has developed in Arizona between<br />

the state’s horse and dog tracks, such as V. Mike Miller Jr., said yesterday that he believes<br />

The president <strong>of</strong> the Maryland Senate, Thomas<br />

they are, and the state’s fiery, red-haired governor,<br />

Jane Hull. The governor has called the track billion-dollar increase in eduction funds that was<br />

the state will have to legalize slots to pay for a<br />

operators liars, and if they lose the fight they have approved by the General Assembly without provisions<br />

for funding the program. Miller told the<br />

started, they had better stay clear <strong>of</strong> the governor’s<br />

<strong>of</strong>fice for the remainder <strong>of</strong> her term. The issue, Washington Times that he thinks tying income<br />

not surprisingly, is Indian gaming, and a quest for from the VLTs to educational funding will ensure<br />

slots at the tracks, which have gained the support their approval and enable Maryland to stay competitive<br />

with neighboring states. The intractable<br />

<strong>of</strong> the president <strong>of</strong> the state Senate, Randall<br />

Gnant. Gov. Hull does not want slots at tracks, opposition to slots at tracks by Gov. Parris N.<br />

and Gnant has introduced a bill that could give Glendening will cease to be an issue when the<br />

them to the tracks through a statewide referendum.<br />

The governor has worked out what she calls limits if Republican candidate Robert L. Ehrlich<br />

governor leaves <strong>of</strong>fice next January under term<br />

“a delicately balanced compromise” with 17 <strong>of</strong> the Jr. wins in November. Ehrlich, currently a U.S.<br />

state’s Indian tribes, and she wants the Senate to Congressman, favors legalizing slots at tracks as<br />

ratify it. She is infuriated at ads run by the tracks, the only way to help Maryland’s tracks and horse<br />

and she showed up in a rare personal appearance industry. Either way, Miller says getting slots approved<br />

“will be a close vote and a tough sell.”<br />

at a Senate Government Committee hearing to tell<br />

the legislators, “I think there are other ways we<br />

EMERALD SWEETENS THE POT<br />

can be spending money other than on fancy slick<br />

A huge state budget shortfall also is at the heart<br />

ads that tell lies as the tracks have been doing for<br />

<strong>of</strong> another gambling matter. According to the Chicago<br />

Sun-Times, which obtained a copy <strong>of</strong> an <strong>of</strong>-<br />

the past several months.” She said that if gambling<br />

is not confined to the Indian reservations “it<br />

fering letter, the owners <strong>of</strong> the half-built but stalemated<br />

Emerald Casino in Chicago’s suburb <strong>of</strong><br />

will put gambling in our neighborhoods, because I<br />

think once this goes you will have slot machines in<br />

Rosemont have doubled the stakes in the hope <strong>of</strong><br />

every Circle K or 7-11 in the state, along with the<br />

being able to sell the license and take a huge pr<strong>of</strong>it.<br />

tracks.” A poll conducted by the Social Research<br />

They have sent a letter to the Illinois Gaming<br />

Laboratory at Northern Arizona University showed<br />

Board, <strong>of</strong>fering $300 million to end the stalemate<br />

that 51% <strong>of</strong> a 400-voter sampling favored increasing<br />

the number <strong>of</strong> slots at Indian reservation casi-<br />

created by the Board when it refused last year to<br />

license them because <strong>of</strong> alleged unsavory ties with<br />

nos, with 34% opposed. The survey also showed<br />

mob figures. The “them” is primarily seven members<br />

<strong>of</strong> the Donald Flynn family, who have invested<br />

that 56% <strong>of</strong> those asked were opposed to allowing<br />

slots beyond reservation borders, with only<br />

$39.5 million to date in the Emerald project, but<br />

37% supporting the idea. The Gnant bill would<br />

stand to receive some $115 million if they are allowed<br />

to sell the property to MGM Mirage or other<br />

allow tracks to operate up to 1,000 VLTs. Hundreds<br />

<strong>of</strong> people packed a Senate hearing room<br />

interested parties. Another 50 investors would<br />

Monday to hear the debate, and busloads<br />

share $150 million if the sale is approved. The<br />

<strong>of</strong> people showed up for both sides in the<br />

gaming board turned down an earlier MGM<br />

dispute.<br />

<strong>of</strong>fer <strong>of</strong> more than $600 million for the casino.


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor<br />

AN UGLY CALIFORNIA LAWSUIT<br />

A California trainer has filed a lawsuit alleging<br />

serious charges against Capitol Racing, which operates<br />

year-round in Sacramento. The trainer,<br />

Rudy Sialana, suspended by Capitol Racing for a<br />

year, charges irregularities in testing for<br />

milkshakes, and claims that Capitol and the California<br />

<strong>Harness</strong> Horsemen’s Association have financial<br />

vested interests in some trainers’ horses.<br />

The suit has been filed in Sacramento County Superior<br />

Court, with Los Angeles lawyer Jay M.<br />

Coggan representing Sialana and his son Russ,<br />

who also trains at Cal Expo. The Sialanas claim<br />

that testing methods and penalties are influenced<br />

by the financial interest held in certain horses. Alan<br />

Horowitz, general manager <strong>of</strong> Capitol Racing and<br />

executive secretary <strong>of</strong> the horsemen’s association,<br />

denies that Capitol had any financial interest in<br />

horses racing at the track. He told the Sacramento<br />

Bee’s writer Debbie Arrington, “We will advance<br />

shipping costs to trainers who want to bring horses<br />

out, and we have made some loans to trainers who<br />

wanted to improve their stock. But we have no<br />

financial ties to the horses they chose or race.<br />

There’s no relationship between that and the racing<br />

program itself.” One problem is the limbo in<br />

which milkshaking is held in California. It is not<br />

specifically mentioned under banned substances,<br />

as it is in some other major jurisdictions, but it also<br />

is not on the list <strong>of</strong> allowed substances. Mike<br />

Marten, the racing board’s spokesman, told<br />

Arrington, “Our policy is that if it’s not specifically<br />

permitted, then it’s not allowed to be there.<br />

Nowhere (in state regulations) does it say anything<br />

about baking soda -- or several other substances.<br />

But the burden is on the horseman not to have it in<br />

the horse.” California does not test for high carbon<br />

dioxide, a byproduct <strong>of</strong> milkshaking, but Capitol<br />

Racing does, with a blood-gas analyzer.<br />

Coggan, Sialanas’ lawyer, contends the<br />

persons doing the testing are “immediately<br />

<strong>April</strong> 11, 2002<br />

taintedbecause they are connected financially to<br />

the parties they are regulating.” He says the<br />

Sialanas, father and son, want blood-gas testing<br />

eliminated entirely, or else administered by the<br />

state as part <strong>of</strong> its regulatory scheme. “If the state<br />

believes there’s a need to regulate soda, then they<br />

should take it on.”<br />

KILL IT NAH, STUDY IT<br />

It’s a technique as old as legislatures themselves,<br />

<strong>of</strong> course, and the Rhode Island House pulled it<br />

out <strong>of</strong> mothballs again this week in the Case <strong>of</strong><br />

the Narragansetts. That tribe, backed by their<br />

Las Vegas friends, Boyd Gaming, wants to build a<br />

Vegas style casino in West Warwick. The town<br />

wants the legislature to put the matter on the ballot.<br />

Ah, but another Nevada presence, Harrah’s<br />

Entertainment, also is involved in Rhode Island,<br />

and according to the Providence Journal-Bulletin,<br />

their executives and lawyers and lobbyists<br />

“helped to pitch and sell” the idea <strong>of</strong> a study. The<br />

House Finance Chairman, Gordon D. Fox, welcomed<br />

the study, saying, “You rush to judgment,<br />

you <strong>of</strong>ten get burnt.” West Warwick’s representative,<br />

Timothy Williamson, countered, saying,<br />

“Let’s not do the same song and dance, year after<br />

year after year about casino gaming. We are either<br />

going to give it to them, like we did in 1994<br />

(when a casino referendum failed), or not.” Fox<br />

replied, “When the stakes are high, there’s mischief<br />

that goes on.” Williamson laughed loudly at<br />

that, and so do we. Mischief when the stakes are<br />

high Surely you jest, Mr. Fox. But Fox prevailed,<br />

easily. On a vote <strong>of</strong> 77 to 12, the House ducked<br />

the issue and voted for a Special House Commission<br />

to Study Gaming, sort <strong>of</strong> like the federal one<br />

that wasted zillions <strong>of</strong> dollars and went nowhere a<br />

few years ago. This one, however, has served its<br />

purpose already. There will be no referendum next<br />

November. No legislative committee could possibly<br />

study anything in seven months.


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor<br />

CLEVER, THESE KANSANS<br />

Slots for tracks is an issue in Kansas, as it is in<br />

most places with racing. The Woodlands is located<br />

in Kansas City, and it would like to have slots. So<br />

far, the legislature has not agreed. The governor,<br />

however, has agreed to support slots at tracks, and<br />

he has leaped into the battle in full armor after the<br />

Senate minority leader came up with a new approach<br />

to the issue. The senator, Anthony Hensley,<br />

a Topeka Democrat, has put forward an idea that<br />

avoids the difficult legislative problem <strong>of</strong> how to<br />

split the spoils. He proposed to the Senate Federal<br />

and State Affairs committee, and the committee<br />

agreed to introduce the measure, a plan<br />

whereby residents <strong>of</strong> any county with a track could<br />

petition for a vote on whether to create a commission<br />

to draft a plan to legalize slots in that county.<br />

Or county commissioners could order an election<br />

on their own. If voters agreed to create a commission,<br />

its seven members would be appointed by<br />

the governor.<br />

While Senators seem to like the idea, the House<br />

has been unyielding on the issue. Its Tourism committee<br />

was to meet earlier this week and send a<br />

new slots for tracks bill to the House floor for debate,<br />

but opponents refused to attend the session<br />

and without a quorum the panel was forced to adjourn.<br />

The Tourism committee had endorsed a<br />

slots bill, but the House rejected it. The chairwoman<br />

<strong>of</strong> the committee called the latest ploy “a<br />

boycott.”<br />

The governor, Bill Graves, likes the Hensley proposal.<br />

According to the Kansas City Star, he wants<br />

action on it, and he wants it quickly. The paper<br />

reported that a leading Republican backer <strong>of</strong> the<br />

slots for tracks bill told it that the governor had<br />

spoken to him and to the Republican<br />

Speaker <strong>of</strong> the House and told both <strong>of</strong><br />

them that he wanted some action on the proposal<br />

in 48 hours.<br />

<strong>April</strong> 12, 2002<br />

FRIENDS IN HIGH PLACES<br />

Michael Strauss is a former sports writer for the<br />

New York Times, who retired to Florida and -- unable<br />

or unwilling to sit around idle -- became the<br />

sports editor <strong>of</strong> the Palm Beach Daily News.<br />

Strauss covered harness racing for the Times during<br />

the heyday <strong>of</strong> the sport in New York, and when<br />

The Society <strong>of</strong> the Four Arts unveiled an exhibit<br />

<strong>of</strong> 33 Currier & Ives lithographs Strauss knew what<br />

to do. He joined forces with Lou Barasch, former<br />

public relations director at Roosevelt Raceway and<br />

a consultant for Yonkers Raceway, who is another<br />

Florida retiree, and swung into action. Barasch’s<br />

wife, Grace -- better known in the sport as Bunny<br />

-- volunteered to give a gallery talk, and the curator<br />

<strong>of</strong> the Four Arts program, Nancy Mato, enthusiastically<br />

agreed. Thirty-three Currier & Ives<br />

trotting prints were provided by the <strong>Harness</strong> Racing<br />

Museum in Goshen, NY, and Mrs. Barasch<br />

gave a presentation called The Story <strong>of</strong> <strong>Harness</strong><br />

Racing. Despite heavy rain, an overflow turned<br />

out, and the gallery was forced to add extra seating.<br />

To add to the success, the Daily News devoted<br />

the entire front page <strong>of</strong> its Arts section to a<br />

full color spread on the exhibition, headlined “The<br />

Charm <strong>of</strong> the Sporting Life,” with four large Currier<br />

& Ives prints displayed along with half a page<br />

<strong>of</strong> text. A wonderful job by all concerned, and a<br />

wonderful score.<br />

BIG BOOK SALE IN GOSHEN<br />

The <strong>Harness</strong> Racing Museum in Goshen, NY, is<br />

launching a used book sale that will enable the<br />

museum to rebind and repair the treasures <strong>of</strong> harness<br />

literature now in its library stacks. To finance<br />

that project, the museum is accepting used books<br />

on harness racing, which will be sold or -- if the<br />

museum doesn’t already have a copy -- will be<br />

added to its library. It’s a chance to get rid <strong>of</strong> old<br />

harness books, and help preserve our history<br />

at the same time. Call the Museum 845-<br />

294-6330 for details.


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor<br />

AZ. SLOTS IMPACT QUESTIONED<br />

Arizona’s racetracks would have to operate 13,000<br />

to 25,000 slot machines to raise the millions <strong>of</strong><br />

dollars they say they can supply to the state’s budget,<br />

according to an analysis done for the state’s<br />

Dept. <strong>of</strong> Gaming. Senate President Randall Gnant<br />

has proposed legislation that would allow the tracks<br />

to operate up to 6,000 slots. Gnant estimated that<br />

the state would reap $200 million a year if the<br />

tracks operate slot machines and pay 30 percent<br />

<strong>of</strong> their proceeds to the state. But the racetrack<br />

slots permitted under Gnant’s bill, which is scheduled<br />

for a hearing today in the legislature, would<br />

raise only $123 million, according to an analysis<br />

done by the Howard Consulting Group <strong>of</strong> Reno.<br />

To raise $200 million, the racetracks would need<br />

13,000 slot machines, said Bill Eadington, an economics<br />

pr<strong>of</strong>essor at the University <strong>of</strong> Nevada Reno<br />

and a principal <strong>of</strong> the Howard Consulting Group.<br />

He said it takes more machines to raise a disproportionately<br />

smaller amount <strong>of</strong> money because the<br />

market becomes saturated as more machines are<br />

added. Eadington’s argument also took into account<br />

the likelihood that Arizona’s Indian tribes<br />

would reject the gaming compact contained in<br />

Gnant’s bill. Gnant is counting on the tribes to pay<br />

up 12 percent <strong>of</strong> the revenue from their slot machines<br />

to the state, for a total <strong>of</strong> $100 million a<br />

year. David LaSarte, executive director <strong>of</strong> the Arizona<br />

Indian Gaming Association, told the Associated<br />

Press that Gnant’s proposal is unacceptable<br />

to the tribes because it would ask voters to impose<br />

limits on tribal gaming without negotiations.<br />

If the tribes aren’t part <strong>of</strong> the plan, Eadington estimates<br />

the racetracks would need 25,000 slot machines<br />

to raise $300 million. Eadington was asked<br />

for an analysis <strong>of</strong> Gnant’s bill after he was hired<br />

by the Dept. <strong>of</strong> Gaming to analyze the compact<br />

Gov. Jane Hull reached with Arizona’s Indian<br />

gaming tribes.<br />

<strong>April</strong> 15, 2002<br />

HOOSIER OPENS WITH A CROWD<br />

The second largest opening night crowd for harness<br />

racing turned out to help kick <strong>of</strong>f the ninth<br />

season <strong>of</strong> harness racing at HTA member Hoosier<br />

Park last Saturday. With a total <strong>of</strong> 6,398 in attendance,<br />

the opening night crowd for the 2002 season<br />

ranks eighth on the all-time attendance list at<br />

the track for either standardbred or thoroughbred<br />

racing. The total also surpassed both signature<br />

events during the 2001 season, beating out the<br />

attendance for the Dan Patch Invitational during<br />

the harness meeting and the Indiana Derby during<br />

the thoroughbred meet. “I couldn’t be more<br />

pleased with the evening,” said Rick Moore, Hoosier<br />

Park’s president and general manager. “All<br />

<strong>of</strong> our employees made sure that everyone had a<br />

great evening. It’s nice to see our employees buy<br />

into what we are trying to do this year. We have<br />

challenged them to ‘raise the bar’ and everyone<br />

reacted. Everyone did his or her job. It is always<br />

a group effort. It’s never one person here at Hoosier<br />

Park.”<br />

APPLICATIONS AVAILABLE!!!<br />

Applications for <strong>Harness</strong> <strong>Tracks</strong> <strong>of</strong> <strong>America</strong> scholarships<br />

for the 2002-2003 academic year are now<br />

available. This year, the scholarship fund will <strong>of</strong>fer<br />

six $7,500 scholarships to deserving students.<br />

Scholarships are awarded for one year and are<br />

based on academic merit, financial need and active<br />

harness racing involvement. For information<br />

on the HTA scholarship program or to download<br />

and print an application, visit<br />

www.harnesstracks.com and follow the link marked<br />

“Scholarships.” Information can also be obtained<br />

by calling the HTA <strong>of</strong>fices at 520-529-2525. The<br />

deadline for applications is June 15, 2002. The<br />

HTA scholarship program, begun in 1973, has made<br />

121 grants to 91 worthy students since its inception,<br />

with scholarships totaling $280,000.


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor<br />

UNITED TOTE’S FULLER TO RETIRE<br />

Don Fuller, president and chief executive <strong>of</strong>ficer<br />

<strong>of</strong> United Tote, announced his retirement effective<br />

August 1, 2002, after 37 years in the parimutuel<br />

industry. Fuller began his totalisator career<br />

at Charles Town Race Course as data processing<br />

manager in 1965. After several years, he<br />

joined AmTote, where he rose to the position <strong>of</strong><br />

executive vice president <strong>of</strong> sales and service.<br />

Fuller left AmTote in 1994 and shortly thereafter<br />

joined United Tote as senior vice president. In<br />

1997 he was promoted to chief operating <strong>of</strong>ficer;<br />

Fuller added the title <strong>of</strong> president in 1999 and in<br />

2000 became the company’s president and CEO.<br />

“I want to thank my many friends and colleagues<br />

who have made my totalisator career very pleasant<br />

and enjoyable,” Fuller said in a statement released<br />

by United Tote. “I know that I will miss my<br />

friends and fellow employees as I wind down my<br />

career, but it is time to move on and enjoy my home<br />

with my wife Susie and my grandson Ridge. To<br />

my fellow employees and my many good friends in<br />

the industry, I wish the best. If I can ever be <strong>of</strong><br />

help, please call.” Succeeding Fuller will be Joe<br />

Tracy, who has been named managing director <strong>of</strong><br />

United Tote as <strong>of</strong> August 1, 2002. Tracy has over<br />

20 years experience managing system installations,<br />

service and marketing programs in the gaming<br />

industry. Most recently, Tracy managed the<br />

Maryland Lottery account for Automated Wagering<br />

International, <strong>Inc</strong>., a wholly owned subsidiary<br />

<strong>of</strong> International Game Technology.<br />

NEW PRES. AT GEMSTAR-TV GUIDE<br />

Gemstar-TV Guide International, <strong>Inc</strong>., parent company<br />

<strong>of</strong> Television Games Network (TVG) on<br />

Monday named Fox Cable Networks group president<br />

and chief executive Jess Shell as its copresident<br />

and chief operating <strong>of</strong>ficer. The<br />

move comes as Gemstar tries to counter<br />

a wave <strong>of</strong> bad news that has cut its stock price<br />

in half. Shell’s appointment comes less than<br />

<strong>April</strong> 16, 2002<br />

a month after Peter Boylan resigned as Gemstar<br />

co-president and the company’s stock started its<br />

slide from the low $20s to less than $10. In the<br />

first quarter <strong>of</strong> 2000 the stock reached a peak price<br />

<strong>of</strong> over $90 per share.<br />

CHURCHILL NAMES AUDITOR<br />

Churchill Downs <strong>Inc</strong>orporated (CDI) has named<br />

Brian S. Johnson director <strong>of</strong> internal audit for the<br />

Louisville, Kentucky-based racing company.<br />

Johnson will report directly to CDI President and<br />

CEO Tom Meeker and to the audit committee <strong>of</strong><br />

the company’s board <strong>of</strong> directors. According to a<br />

CDI press release, in his newly created position,<br />

Johnson will analyze the effectiveness <strong>of</strong> various<br />

company-wide financial, operational and compliance<br />

practices, provide risk assessment, and identify<br />

issues and potential improvements related to<br />

these practices. Johnson is a CPA and previously<br />

served as an audit manager for Pricewaterhouse<br />

Coopers LLP, where he headed the audit team that<br />

regularly reviews financial reports for CDI and its<br />

racing facilities. “Churchill Downs <strong>Inc</strong>orporated<br />

has experienced exponential growth over the past<br />

decade, and as we work to integrate six racing<br />

properties and nine <strong>of</strong>f-track betting facilities under<br />

a common brand, it’s vital to continually examine<br />

our across-the-board business practices and<br />

look for ways to improve them,” said Meeker.<br />

“The creation <strong>of</strong> an internal audit position demonstrates<br />

our commitment to fiscally prudent management<br />

and delivering value to our shareholders.”<br />

MAGNA NETS $143 MILLION<br />

Magna Entertainment Corp. (MIEC), parent company<br />

<strong>of</strong> HTA member The Meadows, estimates<br />

the proceeds from its recently completed public<br />

<strong>of</strong>fering <strong>of</strong> 20 million Class A voting shares<br />

<strong>of</strong> stock at $143 million.


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor<br />

REQUEST OF IMPORTANCE<br />

H.R. 3215, the Combating Illegal Gambling Reform<br />

and Modernization Act -- better known as<br />

the Goodlatte bill -- is now on the House Judiciary<br />

Committee calendar for markup, and could be<br />

called this week or more likely next. The bill<br />

amends the Wire Act, section 1084 <strong>of</strong> the criminal<br />

code, to clarify prohibitions that apply to all forms<br />

<strong>of</strong> wagering on the Internet and other interactive<br />

technologies, and contains an exemption for parimutuel<br />

racing and wagering activities allowed under<br />

the Interstate Horseracing Act. That exemption<br />

has been carefully crafted to permit racing to<br />

continue activities it has <strong>of</strong>fered for many years,<br />

including the Internet to be used to disseminate<br />

information about racing and wagering and to continue<br />

interstate simulcasting and account wagering<br />

between states that permit such activities. The<br />

bill does not expand this wagering or override any<br />

state requirements or prohibitions on this already<br />

existing activity.<br />

<strong>April</strong> 17, 2002<br />

Members <strong>of</strong> the House Judiciary Committee and<br />

their districts from states in which HTA tracks are<br />

located:<br />

FLORIDA -- Ric Keller (R), 8th, Robert I. Wexler<br />

(D), 19th.<br />

ILLINOIS -- Henry Hyde (R), 6th<br />

INDIANA -- John N. Hostettler (R), 8th, Mike<br />

Pence (R), 2d<br />

MASSACHUSETTS -- William Delahunt (D) 10th,<br />

Barney Frank (D) 4th, Marty Meehan (D) 5th<br />

MICHIGAN -- John Conyers Jr. (D) 14th<br />

NEW YORK --Jerrold Nadler (D) 8th, Anthony<br />

David Weiner (D), 9th<br />

OHIO -- Steve Chabot (R) 1st<br />

It is vitally important that our tracks do whatever<br />

they can to ensure that those horse racing exemptions,<br />

covered in Section 1084(f) <strong>of</strong> the Goodlatte<br />

bill, are preserved in the House Judiciary Committee.<br />

HTA believes this bill will ensure the continued<br />

integrity <strong>of</strong> racing and allow the racing industry<br />

and the $34 billion agri-business it supports<br />

to remain viable and competitive. Because <strong>of</strong> the<br />

time element, we are asking you to fax your representatives<br />

on the House Judicary Committee to<br />

support the pari-mutuel wagering provisions in the<br />

Goodlatte bill, and in that hope we are enclosing<br />

members <strong>of</strong> the Committee from states with HTA<br />

tracks. We also are faxing you a suggested letter<br />

and rationale provided by the <strong>America</strong>n Horse<br />

Council, and you are free to use this material in<br />

your appeal for support from your representatives<br />

on the House committee. That<br />

material will be on your fax machines tomorrow.<br />

PENNSYLVANIA - George W. Gekas (R) 17th,<br />

Melissa A. Hart (R) 4th<br />

SCORE TWO FOR AZ GOVERNOR<br />

Arizona’s horse and dog tracks did not fare well in<br />

the early rounds <strong>of</strong> their battle with Gov. Jane Hull<br />

on their quest for slots. The Senate Government<br />

Committee killed, by a 3-2 vote, an attempt to raise<br />

$200 million a year for the state budget by giving<br />

6,000 slots to the tracks, and lost again, on a 4-1<br />

vote in favor <strong>of</strong> a slightly revised version <strong>of</strong> the<br />

governor’s agreement with 17 Indian tribes to expand<br />

gambling at tribal casinos while prohibiting<br />

slots at the track. The governor’s policy adviser<br />

for Indian gaming, Mike Bielecki, allowed that the<br />

battle is far from over. “If this was the last hearing,<br />

instead <strong>of</strong> the first, I’d feel a lot better,”<br />

Bielecki said.


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor<br />

DOWN AND DIRTY IN ARIZONA<br />

The bitter battle reported here yesterday and previously<br />

between Jane Hull, the governor <strong>of</strong> Arizona,<br />

and the president <strong>of</strong> the state Senate, Randall<br />

Gnant, over awarding slots to the state’s thoroughbred<br />

and greyhound tracks took another surprising,<br />

and perhaps alarming, turn yesterday afternoon.<br />

The governor has opposed giving the tracks<br />

slots, saying she preferred to keep them where<br />

they currently are, on land <strong>of</strong> 17 Indian tribes in<br />

the state. Gnant sponsored a bill that would have<br />

continued Indian gaming but also would have put<br />

casino style games at the state’s racetracks. That<br />

bill was killed Tuesday by the Senate Government<br />

Committee.<br />

Rather than accept that defeat, Gnant -- who pr<strong>of</strong>esses<br />

to oppose political maneuvers to hamstring<br />

legislation -- used a rarely used procedural move<br />

to kill the governor’s bill late yesterday by having<br />

the Senate Rules Committee announce that the<br />

bill did meet constitutional standards. The ominous<br />

part <strong>of</strong> the move was that the Senate’s rules<br />

attorney and the state attorney general both told<br />

the committee that it did. Gnant cast the decisive<br />

vote for the measure, creating a 4-4 tie which in<br />

Arizona is tantamount to a defeat. Democrats were<br />

enraged, and one <strong>of</strong> them, Herb Guenther -- the<br />

sponsor <strong>of</strong> the governor’s bill -- quickly rounded<br />

up 18 signatures on a discharge petition to force a<br />

vote by the full Senate. He also said, “It demonstrates<br />

a part-time morality. We violated one <strong>of</strong><br />

our own internal policies. When that happens, I<br />

lose faith.” The Arizona Republic reported that<br />

Gnant was deluged with angry calls and e-mails,<br />

and in a remarkably insensitive and racially tinged<br />

remark he told the newspaper, “I’ve been called<br />

everything but a white man.” He also said, “This<br />

is a message to the governor that the Senate<br />

runs the Senate, not the governor.” Or<br />

perhaps Randall Gnant.<br />

<strong>April</strong> 18, 2002<br />

MORE TROUBLE FOR PRAIRIE<br />

The troubles for Prairie Meadows Racetrack and<br />

Casino, which seemed over with the drafting <strong>of</strong> a<br />

five-year, $100 million agreement with Polk county<br />

three weeks ago, fell apart Tuesday when the Polk<br />

county Board <strong>of</strong> Supervisors voted not to ratify<br />

the deal. The county has been concerned about<br />

getting enough from the lease to pay for a new,<br />

$200 million Iowa Events Center in Des Moines,<br />

and the county supervisors decided the $20 million<br />

a year might not be adequate to cover payments<br />

on the Events Center and other projects in<br />

downtown Des Moines if track and casino pr<strong>of</strong>its<br />

lag. The agreement calls for $1 million a month in<br />

rent, plus a quarterly share <strong>of</strong> net pr<strong>of</strong>its that would<br />

total $8 million a year. Track <strong>of</strong>ficials could opt to<br />

pay less than that if business expenses exceeded<br />

gaming revenues. The supervisors say they will<br />

meet with RACI in two weeks, but the association<br />

says arbitration may be the next step.<br />

ACCORD IN NEW JERSEY<br />

The New Jersey Sports and Exposition Authority<br />

and New Jersey horsemen’s groups have reached<br />

accord on resolution <strong>of</strong> date differences for 2002,<br />

and will announce the settlement Friday afteroon<br />

at 1:30 at a press conference at Monmouth Park<br />

in which Governor James E. McGreevey, NJSEA<br />

president/CEO George Z<strong>of</strong>finger, New Jersey thoroughbred<br />

attorney Dennis Drazin and harness<br />

counsel Joel Sterns will speak.<br />

YOUBET AUDITOR PESSIMISTIC<br />

Youbet.com’s auditor, BDO Seidman, says it has<br />

substantial doubt about the company’s ability to<br />

continue as a growing concern. In Youbet.com’s<br />

annual report filed this week with the SEC, BDO<br />

cited recurring Youbet operating losses and a need<br />

to raise additonal funds as causes for its concerns.<br />

Youbet says it is confident it can improve cash<br />

flow.


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Magna Entertainment’s CEO Jim McAlpine told<br />

shareholders at an annual meeting at Santa Anita<br />

yesterday that Magna will be looking to acquire 3<br />

to 5 more tracks in the next 12 to 24 months, and<br />

will increase its <strong>of</strong>f-track betting operations from<br />

its present 26 to as many as 75 in the next year<br />

and expand telephone and Internet wagering. Boss<br />

Frank Stronach said his company “is in the process<br />

<strong>of</strong> building the largest lottery corporation in<br />

the world,” and that it will be actively developing<br />

land around its racing operations<br />

into entertainment and retail venues.<br />

In New Mexico, two major figures are bat-<br />

Stanley F. Bergstein, Editor <strong>April</strong> 19, 2002<br />

ACCORD OPENS DOORS IN NJ tling for the right to build a fifth race track in that<br />

A major obstacle blocking telephone account wagering<br />

and <strong>of</strong>f-track betting in New Jersey appears owner <strong>of</strong> Hollywood Park in California and The<br />

sparsely populated state. R.D. Hubbard, former<br />

to be cleared, with Gov. James E. McGreevey Woodlands in Kansas City, and present owner <strong>of</strong><br />

scheduled to make the announcement this afternoon<br />

at Monmouth Park that thoroughbred and Shawn Scott, former brief owner <strong>of</strong> Delta Downs,<br />

Ruidoso Downs, is one <strong>of</strong> them. The other is<br />

harness horsemen have agreed to a plan that will which he bought in 1999 for $10 million and sold in<br />

provide thoroughbreds with 141 days <strong>of</strong> racing this 2001 for a reported $110 million, and current suitor<br />

year, which is what they sought. The agreement for Vernon Downs in New York. A Scott consultant,<br />

Toney Anaya, yesterday suggested that the<br />

carries a price for the runners, however, in the form<br />

<strong>of</strong> lower daily purses, and the issue <strong>of</strong> thoroughbred-harness<br />

split <strong>of</strong> revenues from simulcasting ability” <strong>of</strong> Hubbard as an applicant for a New<br />

New Mexico commission should look into the “suit-<br />

and OTB operations remains unresolved. George Mexico license because the Indiana Gaming Commission<br />

is investigating activities <strong>of</strong> Pinnacle En-<br />

R. Z<strong>of</strong>finger, president and CEO <strong>of</strong> the New Jersey<br />

and Exposition Authority, says that issue will tertainment, a gaming company in which Hubbard<br />

be worked out in the next 90 days, and he also is a major stockholder. Ironically, Scott currently<br />

announced the extra 21 days <strong>of</strong> thoroughbred racing<br />

will be conducted at the Meadowlands. Wagering Board as to his suitability as the poten-<br />

is being investigated by the New York Racing and<br />

Z<strong>of</strong>finger thinks that the agreement could enable tial purchaser <strong>of</strong> Vernon Downs.<br />

telephone account wagering to become a reality<br />

by the end <strong>of</strong> this year, four years after it was approved<br />

in a statewide referendum. Off-track betting,<br />

signed into law last August, is not likely in<br />

2002, but could be operational next year.<br />

A FEEDING FRENZY IN RACING<br />

Everyone, it seems, wants a racetrack. Or many<br />

racetracks.<br />

In North Dakota, the state racing commission increased<br />

its investment in a proposed track in<br />

Fargo from $1 million to $2.5 million, the money<br />

to be used to lengthen the track by 110 yards and<br />

to cover higher than anticipated construction costs.<br />

Despite the increased supplement for Fargo, which<br />

outbid the Mandan Park Board for the license last<br />

summer, the new track still will have portable toilets,<br />

gravel parking lots and bleachers instead <strong>of</strong><br />

a grandstand, according to the Bismarck Tribune.<br />

Two and a half million barely gets you a seat these<br />

days.<br />

In British Columbia, Woodbine Entertainment is<br />

inching closer to completing its deal to take over<br />

the Pacific Racing Association, operators <strong>of</strong><br />

Hastings Park Racecourse. The Daily Racing<br />

Form’s Randy Goulding’s lead on today’s story<br />

about the acquisition says, “It’s a done deal. Well,<br />

almost a done deal.” Hastings’ GM Phil Heard<br />

says, “I’m still optimistic, but I’ve been that<br />

way all along.”


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor<br />

PHONE BETS BY FALL IN NJ<br />

That’s the hope <strong>of</strong> Bruce Garland, senior VP /racing<br />

<strong>of</strong> the New Jersey Sports and Exposition Authority,<br />

following last week’s resolution <strong>of</strong> date and<br />

purse disputes in the Garden State. Telephone<br />

account wagering will be run by the Authority, and<br />

Garland says the goal is to be up and running for<br />

the Breeders’ Cup Oct. 26, or earlier if possible.<br />

Off-track betting, whose future also was cleared<br />

by the settlement, will take a bit longer, with the<br />

first <strong>of</strong> a possible 15 parlors not likely to open before<br />

late in 2003. Garland said that projections<br />

for the future when all the parlors are in place --<br />

perhaps as long as five to seven years down the<br />

road -- estimate total revenue for the sports authority<br />

as high as $10 million a year, <strong>of</strong>fsetting ontrack<br />

attendance declines expected in the wake <strong>of</strong><br />

the introduction <strong>of</strong> phone and OTB betting.<br />

Extremely encouraging in the formal announcements<br />

<strong>of</strong> the settlement last week at Monmouth<br />

Park were words from New Jersey governor James<br />

E. McGreevey and Sports Authority president<br />

George Z<strong>of</strong>finger. McGreevey said, “We need to<br />

understand that racing not only has quality <strong>of</strong> life<br />

values, but is indeed an economic engine for the<br />

state <strong>of</strong> New Jersey. I, as governor, am strongly<br />

and irrevocably committed to making racing work<br />

and work well in the state <strong>of</strong> New Jersey.”<br />

McGreevey also called Monmouth Park “one <strong>of</strong><br />

this state’s precious resources.” His remarks<br />

would seem to dispel earlier concerns about privatizing<br />

<strong>of</strong> Monmouth and the Meadowlands, the<br />

nation’s largest harness track. Z<strong>of</strong>finger, who made<br />

the settlement <strong>of</strong> the thoroughbred-harness impasse<br />

a priority <strong>of</strong> his new administration and<br />

played a major role in it, was equally positive in<br />

his remarks at the press conference, noting that<br />

the agreement protects harness racing,<br />

which he called the “core business” <strong>of</strong> the<br />

Authority.<br />

<strong>April</strong> 22, 2002<br />

Under the 3-year agreement, thoroughbreds will<br />

race 141 programs each year, split between<br />

Monmouth and the Meadowlands, but the 2003<br />

Meadowlands’running meet will end Nov. 8, enabling<br />

the track to host Breeders Crown events.<br />

ANOTHER WIN FOR USTA<br />

After more than eight years <strong>of</strong> litigation and one<br />

appeals court victory after another, the United<br />

States Trotting Association has prevailed again in<br />

its defense <strong>of</strong> banning bent shaft sulkies. In what<br />

could be the final round <strong>of</strong> court action, a Franklin<br />

county, Ohio, common pleas judge has granted the<br />

USTA’s motion for summary judgment in Nassau<br />

Turf Equipment vs. USTA, saying “it is clear that<br />

Nassau is unable to maintain a claim for tortious<br />

interference against defendant as defendant’s conduct<br />

was privileged.”<br />

IN OTHER DEVELOPMENTS<br />

The provincial government <strong>of</strong> Quebec has agreed<br />

to another six-month, $11.8 million aid package to<br />

supplement purses at QUEBEC’S FOUR<br />

TRACKS between <strong>April</strong> 1 and September<br />

30.....Chicago harness racing’s DAVE MAGEE<br />

became the fifth North <strong>America</strong>n driver to win<br />

9,000 races, joining Herve Filion, Walter Case Jr.,<br />

Catello Manzi and Mike Lachance in that charmed<br />

circle......JOHN WALZAK, a faculty member at<br />

the University <strong>of</strong> Arizona’s Race track Industry<br />

Program for the last seven years and associate<br />

coordinator <strong>of</strong> the program, is leaving and returning<br />

to Ontario, where he will become Chief Operating<br />

Officer <strong>of</strong> the Ontario <strong>Harness</strong> Horseman’s<br />

Association. He is scheduled to take over his new<br />

post in June and HTA, which has worked closely<br />

and rewardingly with John over the years, wishes<br />

him and his wife Susan all the best.....Fueled by<br />

racing and gaming revenue increases <strong>of</strong> $4.5 million,<br />

NORTHLAND PARK’S total revenues<br />

for 2001 were up $6.8 million and earnings<br />

increased $1.8 million.


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor<br />

RACING BIZARRE NAH, WEIRD<br />

When a routine report on little Mount Pleasant<br />

Meadows in Michigan showed a monstrous per<br />

capita last year, racing commission <strong>of</strong>ficials were<br />

curious. What they found after investigation<br />

makes a wildly weird tale. After the former GM<br />

was unable to make a payment to the horsemen’s<br />

fund, auditors found a slight discrepancy in the<br />

track’s funds: $545,000 was missing. It turns out<br />

that the GM had allowed a friend who owned a bar<br />

in Mount Pleasant to bet on credit, and then joined<br />

him in the fun. If you want to find the former GM<br />

these days, check the state pen, where he is vacationing<br />

after being found guilty <strong>of</strong> two felonies<br />

and a misdemeanor involving violation <strong>of</strong><br />

Michigan’s rules <strong>of</strong> pari-mutuel betting. But if you<br />

need a loan, stop in the local bar and see the owner,<br />

John Hunter. Mount Pleasant Meadows decided<br />

it wanted to get its half million back, so it filed a<br />

civil action against Hunter. He acknowledged that<br />

he owed the track $240,000 for bets he made but<br />

didn’t pay for four years ago, and has repaid about<br />

half <strong>of</strong> that since that time. The former GM, Jon<br />

Leuth, reached an out-<strong>of</strong>-court settlement. Then<br />

a court ruled the track couldn’t collect from Hunter,<br />

because he had made an illegal bet, and the judge<br />

dismissed the charges against him. So Hunter sued<br />

the track, saying it had violated the RICO act by<br />

trying to recoup money from his bets. He got a<br />

jury trial, and the jury found Mount Pleasant<br />

Downs was guilty <strong>of</strong> trying to collect on an illegal<br />

wager. It awarded Hunter $100,000. Mount Pleasant<br />

Downs is appealing. Its attorney, John Lynch,<br />

says it absolutely has to, since under the Racketeering<br />

Influence and Corrupt Organization Act<br />

the track could be ordered to pay triple damages.<br />

“You can’t let a $300,000 judgment go for a person<br />

who testified he took the money,” Lynch says.<br />

Hunter also may not have to pay the<br />

$125,000 he still owes. Weird world,<br />

racing. Think I’ll buy a bar.<br />

<strong>April</strong> 23, 2002<br />

HONEY, I SHRUNK THE PAYBACK<br />

Strange things happen in legislatures, and Maryland<br />

is no exception. A few months ago it was announced<br />

that $4.5 million that had been set aside<br />

for Maryland Jockey Club improvements that<br />

were never made would be returned to the tracks<br />

for supplementing purses, since the money really<br />

was theirs as a result <strong>of</strong> increased takeout.<br />

Somehow, somewhere, someone misread the law,<br />

or misinterpreted it, or missed a few decimal<br />

points. The tracks, it turns out, will get $3 million,<br />

not $4.5 million, split 70% to thoroughbreds and<br />

30% to harness racing. Sorry about that.<br />

INDY DOWNS ON SCHEDULE<br />

Actually ahead <strong>of</strong> it, general manager Gil Short<br />

tells TIMES:in harness. Short says a mild winter<br />

and good dirt have helped immensely, and the first<br />

section <strong>of</strong> the ro<strong>of</strong> is on the stands and the structure<br />

should be enclosed in the next month or so.<br />

Enclosure is crucial, since the track’s scheduled<br />

opening is December 6. Short told the magazine<br />

Indianapolis Downs plans to be good neighbors<br />

with Indiana’s existing track, Hoosier Park. He<br />

says horsemen will reap the benefit <strong>of</strong> an expanded<br />

racing season, and he thinks both tracks will benefit<br />

as well. “I respect Hoosier Park’s initial reluctance<br />

to our going forward,” Short told TIMES.<br />

“If I had been in their position, I’d have felt the<br />

same way. But now, we’ll have to work together<br />

for the betterment <strong>of</strong> the industry in Indiana. And<br />

I think we will succeed.”<br />

CRUNCH TIME IN OHIO<br />

The Ohio legislature has two months left in which<br />

to decide what to do about the state’s huge financial<br />

shortfall. The president <strong>of</strong> the state senate<br />

says slots at tracks have re-entered the budget<br />

discussion, but still face a veto from Gov. Bob<br />

Taft. A 50-cent a pack tax increase on cigarettes<br />

also is in the works.


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor <strong>April</strong> 24, 2002<br />

PURSES UP, UP AT WOODBINE<br />

Woodbine Entertainment and the Ontario <strong>Harness</strong><br />

Horse Association have announced a 3% increase<br />

in purses, effective the first week <strong>of</strong> May. If any<br />

questions remain as to what slots can do for purses,<br />

consider this: the latest purse increase means that<br />

purses have risen 100% in the last five years at<br />

Woodbine Entertainment’s Woodbine and Mohawk<br />

operations. The new boost takes the average<br />

purse per race at the two tracks to $22,500, and<br />

before the year is over WEG will have paid overnight<br />

purses totaling $62.5 million. Jamie Martin,<br />

vice president <strong>of</strong> Standardbred racing, says the<br />

latest increase “reflects continued strong support<br />

for our racing product, and an increase in operating<br />

hours on the slot floors <strong>of</strong> Woodbine and<br />

Mohawk racetracks.”<br />

H.R.3215 ON HOLD, IGN SAYS<br />

House bill 3215, better known as the Goodlatte<br />

bill, will be considered sometime during the next<br />

week or two, according to Interactive Gaming<br />

News. That was reported here on <strong>April</strong> 17, but<br />

the newsletter says the measure updating the 1961<br />

Wire Act to include Internet gaming will be part <strong>of</strong><br />

a “rolling mark-up, which means there won’t be<br />

an exact schedule by which the committee will look<br />

at each bill slated to be marked up.”<br />

HOLD ON TO THAT TOTE BOARD<br />

Hard core horse players are not ready for high<br />

technology, it seems. Pimlico in Maryland, which<br />

has torn down a third <strong>of</strong> its tote board and replaced<br />

it with a 26 x 32-foot video screen called a<br />

Lumitron, has been ordered by the Maryland Racing<br />

Commission to halt demolition <strong>of</strong> the traditional<br />

board after “a steady stream <strong>of</strong> complaints” from<br />

patrons. COO Lou Raffetto told the Washington<br />

Post that Pimlico will consider rebuilding the<br />

tote board, and move the Lumitron to Laurel<br />

to supplement that track’s existing tote<br />

board.<br />

PLEASE TELL ME IT WASN’T ME<br />

Kris Johns is vice president <strong>of</strong> marketing at Hoosier<br />

Park, HTA’s member track in Indiana. Since<br />

<strong>April</strong> 13 her telephone has been buzzing with calls<br />

from ladies in Muncie, Indiana, hoping she can talk<br />

them out <strong>of</strong> suicide. Well, perhaps not quite that<br />

serious, but after it was announced that a lady from<br />

Muncie had been mailed a mutuel ticket worth<br />

$1.75 million and did not redeem it, the ladies <strong>of</strong><br />

Muncie who had received tickets in the National<br />

Thoroughbred Racing Association promotion because<br />

they were on Hoosier’s mailing list <strong>of</strong> 60,000<br />

names, just had to know if it was them. Kris told<br />

them all she didn’t know who the winner was, and<br />

NTRA wasn’t saying, so it’s now on to August,<br />

when the booty goes up to $2 million. This has<br />

been going on since August <strong>of</strong> 2000, with no one<br />

redeeming a winning ticket, and each subsequent<br />

failure raising the pot by $250,000. It’s a great<br />

promotion. You can be sure all those ladies from<br />

Muncie will be at Hoosier August 3, the next drawing.<br />

The <strong>April</strong> 13 drawing fell on opening night <strong>of</strong><br />

Hoosier’s harness meeting and produced the<br />

track’s second largest handle for harness, which<br />

will still be racing Aug. 3. Thanks, NTRA. Good<br />

work!<br />

HOLLYPARK SETTLES WITH TOC<br />

Hollywood Park, which opens today, won a photo<br />

finish with the Thoroughbred Owners <strong>of</strong> California<br />

yesterday, reaching accord on horsemen’s<br />

shares <strong>of</strong> revenue from telephone account and<br />

Internet wagering. Horsemen will receive 5.3%<br />

<strong>of</strong> bets placed by California residents on<br />

Hollywood’s races, 4.5% from bets by Californians<br />

on out-<strong>of</strong>-state races, and 1.8% on bets placed out<br />

<strong>of</strong> California on California races.<br />

CONGRESS ON HTA WEB<br />

All presentations from the <strong>Harness</strong> Racing<br />

Congress now are on HTA’s Web site,<br />

www.harnesstracks.com.


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor <strong>April</strong> 25, 2002<br />

CHICAGO TRACKS MUST WAIT BIG M REVISES FALL DATES<br />

Chicago’s horseracing -- harness and thoroughbred<br />

-- is champing at the bit for huge dollar inpute<br />

in New Jersey, the Meadowlands has made<br />

With the settlement <strong>of</strong> the thoroughbred dates discreases<br />

from their share <strong>of</strong> the proposed Emerald slight revisions in its fall harness racing schedule.<br />

Casino in Rosemont, but it appears as if they’ll The runners now will race from Labor Day, Sept.<br />

have to cool out and wait a little longer. The Illinois<br />

Gaming Board has again rejected a buyout harness will resume on Nov. 29 and race 17 pro-<br />

2 until Nov. 23. Following a Thanksgiving break,<br />

<strong>of</strong>fer for the proposed Emerald Casino in the Chicago<br />

suburb <strong>of</strong> Rosemont. Earlier this year MGM The Fall Final Four, season-ending championship<br />

grams through Dec. 28, with Christmas Day dark.<br />

Mirage <strong>of</strong>fered to pay $615 million for the license, races for 2-year-olds <strong>of</strong> both gaits inherited from<br />

but the board said no dice. More recently, the Garden State Park, will be raced Dec. 7, with elimination<br />

races for trotting colts and fillies on Nov.<br />

owners <strong>of</strong> Emerald said they would pay $350 million<br />

to the state if they could sell the license, and 29 and for pacing colts and fillies on Nov. 30. The<br />

the board now has vetoed that idea. All <strong>of</strong> this has races last year carried purses ranging from<br />

infuriated Donald Stephens, the mayor <strong>of</strong> $340,000 to $500,000.<br />

Rosemont, who told the Chicago Tribune, “This<br />

is getting to the point <strong>of</strong> asininity.” Stephens wants HEAVY HITTERS (IN MAINE)<br />

to debate the board, but it is not in the mood for<br />

Or somewhere. The vagaries and potential impact<br />

<strong>of</strong> transcontinental (or international) simul-<br />

debates. It seemingly does not want the casino in<br />

Rosemont, and although it has not said why, the<br />

casting were felt yesterday from Maine to California,<br />

when last minute bets totaling $118,000<br />

Tribune noted that last year, when it denied Emerald<br />

its license, critics argued Rosemont should<br />

from a United Tote hub in Lewiston, Maine,<br />

be rejected as a location “because <strong>of</strong> business relationships<br />

Stephens has had with alleged associ-<br />

streamed into Hollywood Park at post time and<br />

drove down a maiden filly’s price from 9-2 on the<br />

ates <strong>of</strong> organized crime.” The paper said he is a<br />

post time flash to 2-5 at the finish <strong>of</strong> the race. Instead<br />

<strong>of</strong> the $11 that winning bettors on<br />

former business partner <strong>of</strong> Nick S. Boscarino, who<br />

was indicted in January in a scam involving<br />

Hollywood’s opening day expected to get on the<br />

Rosemont village insurance, and said Stephens<br />

filly with the appropriate name <strong>of</strong> Global Finance,<br />

also wrote to a federal judge pleading for a lenient<br />

they wound up receiving $2.80. It turns out that<br />

sentence for his longtime friend Anthony Daddino,<br />

23 bets <strong>of</strong> $5,000 and one <strong>of</strong> $3,000 were bet from<br />

convicted in a mob shakedown scheme. When<br />

Lewiston just before post on the filly, who had run<br />

Daddino was released, Stephens gave him a job in<br />

only once before, finishing seventh in a 10-horse<br />

Rosemont as a building inspector, according to the<br />

field at Santa Anita March 27. There was only<br />

Tribune. Board members have denied that<br />

$11,461 bet on her to win at Hollywood. The<br />

Rosemont was the reason for the license denial,<br />

Lewiston bets produced a pr<strong>of</strong>it <strong>of</strong> $47,200 for<br />

and chairman Gregory Jones said “Geographically,<br />

it’s a terrific location for our casino, given<br />

someone, somewhere.<br />

its accessibility to O’Hare airport.” Another board<br />

A similar case last winter at Gulfstream created<br />

member, Joseph Lamendella, who cast the<br />

wide consternation, and Hollywood carries a note<br />

board’s only vote in favor <strong>of</strong> the casino,<br />

in its program explaining out-<strong>of</strong>-state last<br />

said “It’s not a bastion <strong>of</strong> organized<br />

minute betting flashes.<br />

crime....it’s a model <strong>of</strong> municipal magnificence.”


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor <strong>April</strong> 26, 2002<br />

NON-SURPRISE OF THE DAY IMPORTANT BILL INTRODUCED<br />

Those who like to plunge on absolute 1-to-10 sure A major stumbling block to international merged<br />

things had another winner this week, when Magna<br />

Entertainment announced that it plans to re-<br />

introduced on <strong>April</strong> 17 is passed. Introduced by<br />

pools and simulcasting could be removed if a bill<br />

negotiate with the Thoroughbred Owners <strong>of</strong> California<br />

after that organization gave Hollywood Park 4474) would stipulate that residents <strong>of</strong> foreign<br />

Congressman Jim McCrery (R-LA), the bill (H.R.<br />

and TVG a better deal on share <strong>of</strong> account wagering<br />

revenues than it had given Santa Anita in Janu-<br />

merged with U.S. tracks and not be subject to the<br />

countries could bet on U.S. races through pools<br />

ary. Thoroughbred Times reported that Magna current U.S. 30% alien withholding tax after Sept.<br />

VP and general counsel Ed Hannah said the company<br />

“would be back at the negotiating table” when although some countries have treaties with the<br />

30, 2002. The <strong>America</strong>n Horse Council notes that<br />

its current contract expires. The discrepancies that U.S. that suggest that gambling winnings are not<br />

raised Magna’s hackles were horsemen’s share subject to this 30% withholding requirement, U.S.<br />

<strong>of</strong> 5.3% on bets by Californians on California races track shave been concerned that they might be<br />

through TVG accounts as opposed to 5.88% for liable for this 30% withholding if they did not take<br />

Magna’s XpressBet; 4.5% on Californian’s bets it out <strong>of</strong> payments to foreigners because the treaties<br />

are unclear or could be changed. This con-<br />

on out-<strong>of</strong>-state races as opposed to 5.19% for<br />

Magna’s service; and 1.8% on bets through TVG cern over liability has effectively prevented the<br />

by out-<strong>of</strong>-state residents as opposed to between racing industry from merged wagering pools internationally,<br />

except for a few countries. Several ex-<br />

2.9% and 5.64%, for a blended rate <strong>of</strong> between<br />

4.5% and 5% through Magna. Both the Magna ceptions to the 30% alien withholding requirement<br />

XpressBet and Hollywood TVG agreements were already are on the books, and the McCreary bill<br />

hammered out in the heat <strong>of</strong> last minute deadlines would add exemption from foreign betting to them.<br />

before the two services began operations at Santa H.R. 4474 has been referred to the House Ways<br />

Anita and Hollywood Park, respectively. The California<br />

racing board’s pari-mutuel committee will<br />

and Means Committee.<br />

discuss the contracts and market access fees at a<br />

meeting June 5.<br />

CAL SETS HOUSING RULES<br />

In another California development, the state’s racing<br />

board has established minimum standards for<br />

employee housing and stable area sanitation facilities.<br />

The standards, which are temporary until<br />

the board develops and approves permanent rules,<br />

require “habitable” rooms, with adequate light and<br />

ventilation, and separate toilet, bath and shower<br />

rooms for men and women. They also cover<br />

health and safety measures including pest<br />

control, garbage collection, and smoke<br />

detectors.<br />

APRIL REPORT NOW ONLINE<br />

HTA’s <strong>April</strong> report to directors, containing the text<br />

<strong>of</strong> 13 presentations from the <strong>Harness</strong> Racing Congress<br />

in PDF format in one easy-to-print document,<br />

is posted online today. It can be accessed at<br />

www.harnesstracks.com/docdatabse/htamembers/<br />

456.pdf. Individual presentations from the Congress<br />

remain available on the HTA Web site at<br />

www.harnesstracks.com.<br />

The new HTA World Racing Directory goes to the<br />

printer next week. If your track has made any<br />

recent changes that may not have been transmitted<br />

to us, please do so now if you would like<br />

them included in the new book.


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor<br />

SCHWEIBEL LEAVES BUFFALO<br />

Jerry Schweibel, general manager <strong>of</strong> Buffalo Raceway<br />

and the track’s HTA and USTA director for<br />

the last 10 years, is leaving the post, effective tomorrow.<br />

Jerry, an innovator and promoter, says it<br />

is time to move on, and his boss, Buffalo CEO<br />

Dennis Lang, called his departure a “mutual agreement”.<br />

Schweibel’s wife suffered a health scare<br />

last week, and Schweibel says it caused him to<br />

reevaluate stress and work and life in general, although<br />

he added that he feels he still has much to<br />

<strong>of</strong>fer to the industry. Lang said the society’s board<br />

will search for a new general manager after the<br />

track’s current meeting ends July 27, when Batavia<br />

Downs will resume racing under the aegis <strong>of</strong> HTA<br />

associate member Western Regional OTB.<br />

INDIANA SLOTS BACK IN NEWS<br />

Yogi Berra’s old cry <strong>of</strong> “It ain’t over ’til it’s over”<br />

was ringing through Indianapolis yesterday, as the<br />

South Bend Tribune reported that expectations<br />

are high that when lawmakers reconvene next<br />

month to discuss the state’s budget crisis and tax<br />

structure slots, in the form <strong>of</strong> pull tabs, may jump<br />

back into consideration. They were passed over<br />

in the recent session <strong>of</strong> the legislature, but one<br />

legislator, Rep. Scott Pelath <strong>of</strong> Michigan City, said<br />

expanded gambling “is not an issue that goes away.<br />

In fact, it hovers over every discussion <strong>of</strong> the budget.”<br />

That does not mean the pull tabs will find<br />

adequate support, however, for Larry Borst, a key<br />

figure in the legislature long considered a friend<br />

<strong>of</strong> racing, opposes the idea, as does Gov. Frank<br />

O’Bannon. In fact, the Tribune says support for<br />

pull tabs could narrow if a broadly written bill that<br />

would include them were introduced, because <strong>of</strong><br />

Borst’s and O’Bannon’s opposition. Borst instead<br />

is proposing higher taxes on casino admissions as<br />

the solution to the budget shortfall. They<br />

could help racing, depending on how such<br />

legislation was written.<br />

<strong>April</strong> 29, 2002<br />

Indiana’s riverboat casinos, which want flexibility<br />

on dockside gambling, naturally oppose the Borst<br />

proposal, which calls for a rise from $3 to $4 on<br />

the riverboat casinos, and an increase on taxes on<br />

casino revenues from 20% to 22.5%, which he says<br />

will raise more than $800 million over three years.<br />

A lawyer and lobbyist for seven Indiana casinos,<br />

Phillip Bainbridge, summarized the special session<br />

by saying, “I’ve long given up saying this can’t<br />

happen unless that happens. You have to assume<br />

that anything can happen.” Indiana’s two tracks,<br />

Hoosier Park and Indianapolis Downs, currently<br />

under construction, will have to pin their hopes on<br />

Bainbridge’s assessment.<br />

A ‘RIDICULOUS’ OFFER BY FAX<br />

Shawn Scott, who bought Delta Downs for $10<br />

million and sold it two years later to Boyd Gaming<br />

for $110 million (or was it $120 million or $130<br />

million Reports vary) and is trying to buy Vernon<br />

Downs, now has launched another track <strong>of</strong>fer, this<br />

one by fax. Scott is trying to buy Ruidoso Downs<br />

in New Mexico and its Billy the Kid casino from<br />

veteran track operator R. D. Hubbard, without a<br />

phone call or personal contact, according to track<br />

president Bruce Rimbo. Rimbo, once publicist<br />

for harness racing at Los Alamitos, says Scott simply<br />

faxed the track saying he would buy it and the<br />

casino for $6 million. Rimbo called the <strong>of</strong>fer “so<br />

ridiculous that it’s not worth responding to. It just<br />

appeared on our fax machine.” Scott also is bidding<br />

against Hubbard for the right to build still<br />

another track in far southeastern New Mexico.<br />

Scott filed an application with the New Mexico<br />

Racing Commission saying he would build a $30<br />

million racetrack and casino in the little town <strong>of</strong><br />

Hobbs on the Texas border. The location might at<br />

first appear remote, but is less than 75 miles from<br />

three busy Texas cities, Lubbock, Odessa and<br />

Midland.


HARNESS TRACKS OF AMERICA<br />

Executive Newsletter<br />

A daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyond<br />

Stanley F. Bergstein, Editor<br />

TOM WALSH JUG HONOREE<br />

Tom Walsh Jr., one <strong>of</strong> harness racing’s best known<br />

and most popular owners and one <strong>of</strong> the most generous<br />

contributors to the sport’s causes, has been<br />

named the 2002 inductee to the Little Brown Jug<br />

Wall <strong>of</strong> Fame. Walsh, an owner for more than 40<br />

years, has co-owned two Little Brown Jug winners<br />

in Magical Mike, the 1994 victor in harness<br />

racing’s best known classic for 3-year-old pacers,<br />

and Armbro Operative, which won the race in 1996.<br />

Magical Mike won $1.6 million in his racing career<br />

and now is a successful sire, his progeny including<br />

the $3.7 million winner and 2000 Horse <strong>of</strong><br />

the Year Gallo Blue Chip. Armbro Operative was<br />

a winner <strong>of</strong> $1,012,712, and Walsh also has been<br />

involved in the ownership <strong>of</strong> three other $500,000<br />

winners — Conway Hall, Bold Dreamer and Victory<br />

My Way — and other top horses, most in<br />

partnership with his longtime friend David<br />

McDuffee. The pair were primarily responsible for<br />

funding the construction <strong>of</strong> the Little Brown Jug<br />

Barn at the Delaware County Fairgrounds where<br />

the classic is raced each September. Walsh will<br />

receive his traditional gold Jug ring at the Mayor’s<br />

Breakfast in Delaware , Ohio, on Sept. 18, the day<br />

before the 57th racing <strong>of</strong> the Jug.<br />

PICK 4 BEST BET AT BIG M<br />

With a 15% takeout, an average pay<strong>of</strong>f <strong>of</strong> more<br />

than $9,000 and a $50,000 pool guarantee, the $2<br />

Pick 4 has become Saturday Night Live at the<br />

Meadowlands. Last Saturday’s $84,847 pool was<br />

the highest since the $50,000 guarantee was put<br />

in place, and for 15 Saturday nights to date the<br />

average pool has been $76,134.<br />

NEW UNIT AT CHURCHILL<br />

Recognizing the growth <strong>of</strong> simulcasting and its<br />

potential worldwide, Churchill Downs has<br />

formed a separate simulcasting business<br />

unit, Churchill Downs Simulcast Network,<br />

and named Churchill CFO and executive VP<br />

Bob Decker as president <strong>of</strong> the new venture.<br />

<strong>April</strong> 30, 2002<br />

NY WOES MAY AFFECT SLOTS<br />

The Buffalo News reports today that the state’s<br />

finances have taken a sharp turn for the worse<br />

with the revelation <strong>of</strong> a new budget hole totaling<br />

up to $1.3 billion, and that Senate majority leader<br />

Joe Bruno and Assembly speaker Sheldon Silver<br />

were looking for ways to speed up introduction <strong>of</strong><br />

VLTs at New York tracks. Gov. George Pataki,<br />

however is not counting on any money from track<br />

slots in 2002, and administration <strong>of</strong>ficials do not<br />

think machines will be operational before next<br />

spring. Bruno, however — whose word in New<br />

York is law — told Tom Precious <strong>of</strong> the News,<br />

“We’ll take a look to see if we can ramp them up<br />

faster.” Pataki sought to downplay gambling revenues<br />

as a solution to the present crisis, saying,<br />

“I don’t think that’s going to be a significant revenue<br />

factor in dealing with the budget.”<br />

HBPA’S MALINE “ON LEAVE”<br />

A conflict <strong>of</strong> interest investigation by the national<br />

Horsemen’s Benevolent and Protective Association<br />

has led to the executive director <strong>of</strong> the<br />

organization’s Kentucky division, Marty Maline,<br />

being placed on administrative leave with pay. The<br />

national HBPA is looking into a company started<br />

by the former president <strong>of</strong> both the Kentucky di<br />

ision and national organization, Rick Hiles, in<br />

which Maline was an <strong>of</strong>ficer. The company, Century<br />

Consultants, was set up to advise racing companies<br />

on simulcast and legal issues, but had only<br />

one client, Choctaw Racing Services, a tribal company<br />

in Oklahoma, that pays a fee to the national<br />

HBPA based on handle at its <strong>of</strong>f-track betting sites.<br />

John Griffith, Kentucky HBPA’s treasurer, resigned<br />

the week <strong>of</strong> <strong>April</strong> 22, when the external investigation<br />

began, and Don Sturgill, also an <strong>of</strong>ficer<br />

with Century Consultants, resigned two weeks ago,<br />

saying his resignation was triggered by work demands<br />

at his Lexington law firm. Hiles said<br />

the investigation was “blowing smoke,” and<br />

said he was telling HBPA “they better be<br />

careful.”

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