April - Harness Tracks of America, Inc.

HARNESS TRACKS OF AMERICA
Executive Newsletter
A daily fax and e-mail report on racing and gaming developments in North America and beyond
Stanley F. Bergstein, Editor April 10, 2002
“A DELICATE BALANCE” SLOTS FOR SCHOOLS IN MD
A noisy, nasty fight has developed in Arizona between
the state’s horse and dog tracks, such as V. Mike Miller Jr., said yesterday that he believes
The president of the Maryland Senate, Thomas
they are, and the state’s fiery, red-haired governor,
Jane Hull. The governor has called the track billion-dollar increase in eduction funds that was
the state will have to legalize slots to pay for a
operators liars, and if they lose the fight they have approved by the General Assembly without provisions
for funding the program. Miller told the
started, they had better stay clear of the governor’s
office for the remainder of her term. The issue, Washington Times that he thinks tying income
not surprisingly, is Indian gaming, and a quest for from the VLTs to educational funding will ensure
slots at the tracks, which have gained the support their approval and enable Maryland to stay competitive
with neighboring states. The intractable
of the president of the state Senate, Randall
Gnant. Gov. Hull does not want slots at tracks, opposition to slots at tracks by Gov. Parris N.
and Gnant has introduced a bill that could give Glendening will cease to be an issue when the
them to the tracks through a statewide referendum.
The governor has worked out what she calls limits if Republican candidate Robert L. Ehrlich
governor leaves office next January under term
“a delicately balanced compromise” with 17 of the Jr. wins in November. Ehrlich, currently a U.S.
state’s Indian tribes, and she wants the Senate to Congressman, favors legalizing slots at tracks as
ratify it. She is infuriated at ads run by the tracks, the only way to help Maryland’s tracks and horse
and she showed up in a rare personal appearance industry. Either way, Miller says getting slots approved
“will be a close vote and a tough sell.”
at a Senate Government Committee hearing to tell
the legislators, “I think there are other ways we
EMERALD SWEETENS THE POT
can be spending money other than on fancy slick
A huge state budget shortfall also is at the heart
ads that tell lies as the tracks have been doing for
of another gambling matter. According to the Chicago
Sun-Times, which obtained a copy of an of-
the past several months.” She said that if gambling
is not confined to the Indian reservations “it
fering letter, the owners of the half-built but stalemated
Emerald Casino in Chicago’s suburb of
will put gambling in our neighborhoods, because I
think once this goes you will have slot machines in
Rosemont have doubled the stakes in the hope of
every Circle K or 7-11 in the state, along with the
being able to sell the license and take a huge profit.
tracks.” A poll conducted by the Social Research
They have sent a letter to the Illinois Gaming
Laboratory at Northern Arizona University showed
Board, offering $300 million to end the stalemate
that 51% of a 400-voter sampling favored increasing
the number of slots at Indian reservation casi-
created by the Board when it refused last year to
license them because of alleged unsavory ties with
nos, with 34% opposed. The survey also showed
mob figures. The “them” is primarily seven members
of the Donald Flynn family, who have invested
that 56% of those asked were opposed to allowing
slots beyond reservation borders, with only
$39.5 million to date in the Emerald project, but
37% supporting the idea. The Gnant bill would
stand to receive some $115 million if they are allowed
to sell the property to MGM Mirage or other
allow tracks to operate up to 1,000 VLTs. Hundreds
of people packed a Senate hearing room
interested parties. Another 50 investors would
Monday to hear the debate, and busloads
share $150 million if the sale is approved. The
of people showed up for both sides in the
gaming board turned down an earlier MGM
dispute.
offer of more than $600 million for the casino.