2005 - Harness Tracks of America, Inc.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor January 3, 2005CAN THINGS GET WORSE? HOW TO HANDLE SUCCESSAt least in Maryland, the answer seems to be yes. HTA member Saratoga Gaming and RacewayAfter calling an extraordinary holiday season has completed a hugely successful year, withspecial session to consider medical malpractice purses tripling from $2.9 million in 2003 to almost$9 million in 2004. Track management doesreform and engendering the ill well of legislatorswith that move, Republican governor Robert not intend to sit on its laurels. General managerEhrlich Jr. and the Democrat-controlled General Skip Carlson announced that “I don’t think youAssembly were at it again. Ehrlich said he would can ever take your customers for granted,” soveto the legislation produced at the session, and Saratoga is planning to spend $750,000 to renovateits pleasant dining room, with new designsome lawmakers were saying they would attemptto override his veto. With the regular 90-day sessionjust two weeks away, a former state senator upgrade the video camera system to provide splitand an improved menu, and another $30,000 towho now teaches political science, John N. screen viewing. That move is not designed justBambacus, told the Baltimore Sun, “Never in the for local consumption. Carlson thinks it will helppast three decades have I seen this kind of rancorin the two branches of government. I really venues. One pending project on which no im-Saratoga sell its simulcasting to other tracks andbelieve the citizens of this state, while they may mediate action is likely to be taken is increasingin one way admire the governor’s resolve, on the the track size from half-mile to five-eighths, asother hand are saying, ‘Look, folks, we expect has been discussed for several years. The cost ofyou to act on this issue.’” They also presumably the project has gone from a projected $2 millionwould like the legislature to act on slots at tracks, to $4 million, and, successful or not, Carlson saysbut given the present hard feelings, and the continuedobjections of House Speaker Michael E. In a very positive story on the success and im-“You have to think about return on investment.”Busch, odds seem slim there will be agreement provements, Paul Post of The Saratogian wrote,on that issue. The House Democratic leader, “In 2003, only nine drivers had purse earningsKumar P. Barve, said of the governor, “He called of $100,000 or more, compared to 19 in 2004.us into town at a very inconvenient time, to solve Leading driver Dan Capello Jr. has seen hisa genuine problem, and he is not willing to give purses increase from $491,397 to $867,383. Onlyan inch. He seems to be almost genetically incapableof compromise, which is astounding.” in 2003, versus 16 in 2004. Leading trainer Johnthree trainers had purses of more than $100,000Ehrlich saw it differently. “One person’s Stark Jr.’s purses went from $165,248 todysfunctionality is another person’s healthy $375,721.” Saratoga also increased its race datesphilosophical debate,” he told the Sun. “There’s from 129 10-race cards in 2003 to 165 13-racea different view of the world here. It’s a view of cards in 2004. “That’s a 30% increase in totalthe world that is asking people downstairs (in the races,” Carlson noted. “No other track can sayAssembly) to do things they don’t want to do.” that. I really think we’ve delivered on most ofThe House minority whip, Anthony J. O’Donnell, our promises to the horsemen.”agreed, saying media criticism is focused unfairlyon the governor rather than legislative leaders. TOM RIDGE COULD RACE IN 05“The legislative leadership has demonstrateda continued pattern of obstruc-disappointing fertility tests and could pos-Tom Ridge, the world’s fastest trotter, has hadtionism,” he said.sibly race again in 2005.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor January 4, 2005WHO’S ON FIRST IN CATSKILLS ALL’S CLEAR FOR MTR IN ERIEThere’s a tempest in the teepee in the Catskills, The Pennsylvania Supreme Court has cleared theas conflicting signals pour forth from the mountains.The Oneidas, who have the money from racetrack in Erie, and MTR CEO Ted Arneaultway for MTR Gaming to build a thoroughbredTurning Stone, are supporting and advising the says construction will begin on the track, to beCayugas, telling them to keep the so-called Seneca-Cayugasout of New York and back in Okla-had earlier announced he would not build at theknown as Presque Isle Downs, in April. Arneaulthoma. The spokesman for the Cayugas, at least site of the old International Paper Mill, a 200-until now, Clint Halftown, made headlines today acre property he bought earlier but abandonedby announcing that the tribe was “walking away” after the mayor of Erie became involved in afrom its deal with Empire Resorts, which owns messy conflict of interest proceeding. MTR mayMonticello Raceway, and would not renew its develop that property into a retail, residential orcontract with them to build a $500 million casinothere. Charles Degliomini, speaking for Summit Township along highway I-90, a fewlight industrial project, but will build its track inEmpire, said Halftown didn’t know what he was miles south of Erie’s downtown. Arneault is planninga $100 million project, a track, a racino withtalking about, that the Cayugas already had senta letter saying they intended to renew their contract,which expired Dec. 31, for another six Supreme Court, in rejecting the appeal of Pitts-1,500 or 2,000 slots, and perhaps a hotel. Themonths. Halftown is not just some supernumerary.He was the one who arranged the deal to tence decision, ended objections that had beenburgh developer Charles Betters in a one sen-settle a nearly $258 million land claim in return expressed not only by Betters, who wanted to developa complex with slots in Pittsburgh, but alsofor the casino deal, and it appears Ray Halbritter,the Harvard grad who runs the Oneidas, has his by Magna Racing Pennsylvania, owner of Theear. Degliomini called Halftown’s actions “bizarre”and not to be taken seriously. “We haveMeadows.every confidence the Cayuga nation is going tomove forward and build a casino at Monticello,”Degliomini says, noting that a tribal council member,Gary Wheeler, not Halftown, signed the letterof intent to renew. Stay tuned for tomorrow’sexciting half-hour of “As the Catskills Turn.”SLOTS FOR NEW HAMPSHIRE?The president of the New Hampshire Senate, TomEaton, says he supports legalizing video poker atthe state’s four racetracks, and that a bill is in theworks to legalize the machines. Eaton and senatorLou D’Allesandro, who is introducing the legislation,think it can raise $200 million a year forthe state. The governor-elect, John Lynch,faces a $300 million budget shortfall, butis concerned about slots changing “thequality of life.”FRINZI HITS HIGH C IN OPERAFra Noi, an Italian newspaper, conducts an annualopera quiz -- a tough one with 40 questions -- and no one has ever had a perfect score in answeringit. Until now, when the president of HarnessHorsemen International, opera buff DominicFrinzi, aced the test in winning the competitionfor the third time. The operatic score was notFrinzi’s only recent triumph, however. He alsowas presented with the Ray Cannon JusticeAward, presented by the Federal Defender Servicesof Wisconsin. The award noted Frinzi’s “lifetimededication to the cause of justice,” and mentionedthe qualities that those in harness racingknow so well: fairness, intelligence, forcefulness,a consensus seeker, and a peacemaker. HTAconcurs, and congratulates its good friend.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor January 5, 2005OFFERS FOR TRACKS, SORT OF Duff noted in his story that there is no indication,despite the current dates controversy, thatIn New York, Jeff Gural, one of New York City’sbiggest real estate executives and a major player Windsor Raceway is for sale.in harness racing, says he is interested in buyingVernon Downs, but with a condition that may be In regards to the dates issue, the Ontario Racingvery hard to meet. Gural, who bought abandonedTioga Park last year and is preparing it dates from Windsor Raceway as of today. TheCommission says it has no new application forfor a harness meeting, is willing to buy Vernon, commission also advises HTA that our report inas he has tried to do in the past, but only if the this newsletter that the commission had proposedracino proceeds are doubled from 20% to 40%. a 153-date schedule was erroneous, and that atGetting that done may be difficult in a legislaturethat can’t even come up with a state budget ule for Windsor for 2005.no time did the commission propose such a sched-on time. Gural told the Syracuse Post-Standard,“You can’t possibly make a go of it at 20%. Theonly way I’m interested would be if we’re able toget the legislation changed.” Gural also said heis talking with another bidder for Vernon,Casinopartners Management Group, but EddieLynn, the COO of that company, declined to commenton a possible deal with Gural. Lynn wasgeneral manager of Fort Erie Racetrack and Slotsin Ontario for five years. Lee Woodward, bankruptcylawyer for Mid-State Raceway, whichowns Vernon Downs, confirmed talks with bothpotential buyers.In Windsor, Ontario, columnist Bob Duff of theWindsor Star quoted seven-time Canadian trainingchampion Bob McIntosh of nearby LaSalle,as saying a group of Michigan owners have contactedhim offering to buy Windsor Raceway.Windsor currently is closed for racing in a disputewith the Ontario Racing Commission andOntario Harness Horse Association over numberof racing dates. McIntosh said he understoodthat Tandem Entertainment, part of the WindsorbasedToldo Group of companies, had bought thetrack by assuming $36 million of debt last year,and said the potential Michigan investors -- ownersin his stable who wished to remainanonymous -- were not fazed by thatnumber. “They’ve got that kind ofmoney,” McIntosh said of the group.INDIANA TRACKS GET BOOSTIt remains to be seen how far it goes, but a keyRepublican lawmaker in Indiana -- Luke Messerof Shelbyville -- says he will introduce legislationthat calls for 2,500 slots at both HTA tracks inthe state, Hoosier Park and Indiana Downs.Messer says his bill will not include a casino indowntown Indianapolis, but acknowledged thatwhile it limits the expansion of gambling “it won’tbe the last version. In the end, it will likely lookmuch different,” since he is open to compromiseon a casino in Indianapolis. Messer says the legislationis intended to help keep the IndianapolisColts in that city by building a new stadium, amove proposed by the mayor of Indianapolis,Bart Peterson, who also wants the stadium paidfor by slots at the state’s two tracks and a casinoin the heart of the city.HANOVER ACTS ON OWNERSHanover Shoe Farms has announced it will sponsorsix of the USTA-staffed seminars for new owners.Run by Harness Racing Communications’Ellen Harvey, the seminars have produced some140 new owners in the sport, and 60% of themhave bought more than one horse. More than 600people in 11 states have attended the seminars.Hanover president Jim Simpson said the farmwants to help give new owners tools for successin the sport.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor January 6, 2005FALLOUT IN WINDSOR STRIFE In a story on Bloodhorse.com, Tom LaMarraThe impasse between Windsor Raceway and its wrote that although McCarron had originallyhorsemen and the Ontario Racing Commission backed Gertmenian -- whom he had known forover number of racing dates for 2005 is resulting 10 or 12 years -- for the Guild leadership, his positionon Gertmenian’s credentials and back-in shock waves beyond the immediate dispute.With live racing cancelled, 478 holders of WoodbineHorsePlayer Interactive accounts in the don’t know what he is and what he isn’t, to thisground had changed in the last three years. “IWindsor home-market area have been disenfranchisedby the Canadian Pari-Mutuel Association. ters. Earlier on it didn’t matter that much today,” McCarron was quoted. “I think it mat-The CPMA told Woodbine it could not allow the me, but now it matters not just to me but to allWindsor-area bettors to use their accounts until the jockeys, and it matters to the strength of theWindsor has a betting permit. With the track organization and future of the organization. Itclosed and their Woodbine accounts deactivated, all comes down to credibility and integrity. I hopethose bettors have no legal access to live or simulcastbetting, according to Standardbredand pray he’s able to prove us all wrong.”Canada. SC’s report on the situation concludedwith this: “It is clear that HorsePlayer Interactivecustomers are frustrated with the inabilityto access legally operated track-run betting poolswhen offshore and illegal bet providers operatefreely and unregulated.”CALIFORNIA CUTS OFF GUILDSaying he doesn’t understand the arrogance ofthe Jockeys’ Guild, California racing commissionerRichard Shapiro, leading a committeelooking into the Guild’s finances, announced yesterdaythat the Guild will not receive its annual$1 million payment from uncashed tickets inCalifornia until it answers “very specific” questionsabout its finances. Shapiro convened thefirst meeting of his investigating committee thisweek, and a committee document will be sent tomorrowto the Guild demanding informationbefore any further payments are made to it fromthe California fund. Chris McCarron, a memberof Shapiro’s committee and the man mainlyresponsible for the hiring of Gertmenian, said ina recent radio interview that “things began tounravel” after Gertmenian refused hisrequest to provide information to formerGuild members Jerry Bailey and Pat Day.SHAWN SCOTT IS BACKShawn Scott is back, and in controversy as usual.He resurfaced from his Virgin Island retreat, startlingDistrict of Columbia election officials witha pre-Christmas invasion of Washington with 75paid circulators who asked registered voters tosign petitions in support of a slots initiative Scottis backing there. The workers were paid as muchas $20 a valid signature, according to the WashingtonPost. Scott and his associates now havedelivered 6,000 signatures to the election board,asking that they be added to some 14,700 previouslycollected and validated during a contentiousdrive last summer. The election board,which ruled then that there were not enough validsignatures to qualify, now must decide whetherDC law allows the 2004 signatures to be transferredto qualify for a vote in 2006. According tothe Post, the December effort surprised not onlyelection officials but Scott’s local allies in Washington,who quickly distanced themselves fromthe effort, the chairman of a PAC formed to supportthe measure resigning. One of Scott’s lawyerstold the paper that even if the board doesnot accept the signatures, Scott is prepared tovigorously renew pursuit of the referendumprocess.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondPaul J. Estok, Editor January 7, 2005BAD READ ON PLAINRIDGE CASE Providence murder,” which involved the track beingrobbed and the perpetrator being found deadYesterday’s Boston Herald ran a story under theheadline “Ex-partner is back in the race” that purportedto report on a Massachusetts appeals court word yet on whether the Herald has responded totwo years later after an unrelated drug deal. Nodecision involving litigation between Plainridge Piontkowski’s letter.Racecourse President and CEO Gary Piontkowskiand Rhode Island developer and former NYRA ’04 LOSS WILL TOP $10Mhorsemen’s association officer Lou Giuliano. But Despite a reported $12 million worth of operatingthe story that followed was so full of inaccuracies cost reductions, losses by the New York Racingthat by the end of the day, lawyers for Piontkowski Association will top $10 million for 2004. Spendingreductions involved everything from payrollhad sent the Herald a three-page letter detailingthe errors and demanding a retraction and correction.The story stated that “a state Appeals Court employees. NYRA CFO William Byrne said somecuts to outsourcing jobs previously done by NYRAjudge has cleared the way for a possible ownership of the aggressive cost-saving measures NYRA haschange at Plainridge Racecourse by confirming that taken include hiring an all-new fiscal staff, eliminatingconsultants hired to assist departments suchan original investor cut out of the business is entitledto stock shares.” The article also contained as human resources, and trimming the payroll bythe statement that “the Appeals Court denied an 150-200 people. “Over the years, a certain amountappeal by track boss Gary Piontkowski that of waste was built up in all departments,” saidclaimed Giuliano wasn’t entitled to stock in the Byrne. “There are still opportunities to reducecompany.” As a final insult, the story ended with acosts. There’s a lot more to go.” A $3 million federalfine and the high cost of paying for a court-paragraph saying that “Plainridge has long beenmired in scandal....” As Piontkowski’s lawyersappointed monitor offset some of NYRA’s financialgains.noted in their letter to the Herald, the story’s author,David Wedge, seems not to have even readthe court’s decision. In fact, as Piontkowski’s attorneyspoint out, the decision, issued on Decem-GOOD NEWS AND BAD NEWSIn the good news category comes word that Donber 30, 2004, “simply found that the minority shareholdersin Plainville Racing Company were not per-Fuller, who retired from United Tote in 2002, hasbeen named executive vice president of AmTotemitted to intervene in an underlying piece of litigationwhich was tried...last year. A decision in thatInternational. In other news, StandardbredCanada has announced that Armstrong Bros.underlying litigation has not been rendered. TheFarms of Inglewood, Ontario, is the 2004 winnerAppeals Court decision contains no statement, implicitor otherwise, that Mr. Giuliano is entitled toof the Cam Fella Award. The award, establishedin 1997 in honor of the legendary pacer Cam Fella,purchase anything.... The decision decided no substantiverights of any kind.” All of which wouldrecognizes meritorious service to the Canadianhave been perfectly clear if reporter Wedge hadharness racing industry.bothered to read the first three sentences of the decision.As for the reporter’s claim that Plainridgehas been “mired in scandal,” the list of supposed“scandals” featured an allegation of “wiretapping”that turned out to be a wiringproblem and a “money-room heist tied to aThe bad news is the report of the death of BertramSarafan, formerly chairman of the New York Racingand Wagering Board. Sarafan, who spent 40years as a public servant and who served on theNew York racing board from 1975 to 1976,died at the age of 91 on December 5.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor January 10, 200556% FAVOR SLOTS IN MD JOE NAMATH LEAVES VESTINThe Baltimore Sun, which doesn’t care for gamblingbut usually presents a fairly balanced pic-Shawn Scott’s mortgage broker pals in Las Ve-Yes, that Joe Namath, and that Vestin Mortage,ture of it, reports this morning that 56% of voters gas. You say you weren’t aware that Namath wasin a Sun poll say they favor expanded gambling to associated with Vestin? Neither were we, until wehelp deal with the state’s budget shortfall. The read in the Las Vegas Review-Journal that he hadpaper says the number is the highest ever in the been their spokesman and had decided to returnstate, up from 52% a year ago. The poll surveyed his 400,000 shares. take $1.6 million for them, and800 voters last week, and support was highest in terminate a warrant to purchase another 200,000the suburban counties around Baltimore. One intervieweesaid, “The money is being spent on slot yearlong dispute over Namath’s contract asshares. The paper said the agreement ended amachines in other states, and why should we send spokesman, in which he appeared in several adsour money to other states when the state so desperatelyneeds money?” That has been the argu-a company privately owned by Vestin chairmanand commercials, and that Shustek Investments,ment, of course, of governor Robert L. Ehrlich Jr., and CEO Mike Shustek, would loan Vestin the $1.6but there is no sign his nemesis, House speaker million at 8% yearly. It turns out Paul Hornung,Michael E. Busch, has softened his opposition as former Notre Dame and Green Bay Packers great,Maryland’s new legislative session gets underway. also did a little commercial work for Vestin, but“I would hate to follow the road map of the last no longer is a company spokesman. Two dayscouple of years,” Ehrlich said, “which is to have a after what Vestin’s PR man called “welcome closure”to the Namath matter, the Review-Journalstrong bill come out of the Senate and go nowherein the House.” He might hate that map, but that’s carried another Vestin story, saying the mortgagewhat’s showing on the screen.brokerage firm was being formally investigatedby the Securities and Exchange Commission,which had been conducting an informal inquiryinto its operation for a year.NO ACTION IN ILLINOIS, EITHERIn a story in today’s Chicago Sun-Times by stafferMary Laney, the lead reads, “What’s going on withthe Illinois Gaming Board? What’s happeningwith the 10th casino license? What’s with Gov.Blagojevich?” The story goes on to say thatBlagojevich has done nothing about appointingnew members to the gaming board, which is downto two members who meet once a week, call a meetingto order, and then adjourn their meeting forlack of a quorum. The two can’t renew licenses,so two casinos are operating without them. Theycan’t hire investigators. They can’t let the RockIsland casino expand. They can’t act on the Isleof Capri, who they selected to receive the final licensebefore that matter got mired downin politics. In short, the governor has assignedgambling to limbo in Illinois.U.S. APPEALS WTO DECISIONThe United States last week formally appealed aWorld Trade Organization ruling against it inGeneva on barring Internet betting to other countries,and apparently accompanied the appeal witha veiled threat to change its commitment to theworld organization. Antigua, a little Caribbeanisland nation with less than 68,000 residents, wonits WTO case in November, successfully arguingthat U.S. prohibition on using its online bettingservices was inconsistent with WTO rules. TheU.S. appeal says the WTO panel decision “is inerror and is based on erroneous findings,” accordingto Bloomberg News. The WTO has 90 daysto rule on the U.S. appeal.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor January 11, 2005TRACK, OHHA SEEK SOLUTION SEE IF YOU CAN MATCH THISThe impasse at HTA member Windsor Raceway We don’t like to make you envious, but lastcontinues, with the track and Ontario Harness weekend’s 9th annual Delaware StandardbredHorse Association seeking possible solutions. Owners Association awards dinner not only attestedto the health of the sport in Delaware butWindsor issued a press release saying OntarioRacing Commission vice chair Larry Todd had set an example for the industry. A record crowddenied a request for a meeting, saying he did not of some 480 turned out, and it included the governorof the state, Ruth Ann Minner; the lieu-feel the proposed forum was appropriate, and thetrack had expanded its efforts by seeking meetingswith the Ontario Lottery and Gaming cor-agriculture, Michael Scuse; state senators Nancytenant governor, John Carney; the secretary ofporation, members of the provincial parliament, Cook, Thurman Adams and Anthony DeLuca;Windsor’s mayor, and Susan Whelan, the attorneyrepresenting the OHHA. Windsor asked the tatives; chairwoman Beth Steele and administra-eight members of the state’s House of Represen-lottery corporation to work with it on benchmarks,noting that its racino ranks 14th out of Fred Noe, executive VP of the USTA. The crowdtor John Wayne of the racing commission; and15 in Ontario. The slot program, Windsor’s releasesaid, “has left the impression that all tracks said enough as the count neared 500. Congratu-would have been even bigger, but fire marshalsbenefit equally when they do not. Slot revenue lations to all concerned.to the horsepeople and to tracks in the Torontoarea is approximately 800% higher than in THE LONG SHADOW OF DONALDWindsor. Windsor Raceway has requested the Indiana’s new governor, Mitch Daniels, sworn inOLGC establish benchmarks on slot revenue yesterday, wasted no time in wielding power. Heperformance which will allow Windsor Raceway vented his displeasure with his Gaming Commission,saying he hoped all seven voting membersto establish a business model that works for allstakeholders. If the OLGC improved the performanceof Windsor Raceway slots to the provin-hours after a Fort Wayne representative, Robertwould offer to resign. Daniels’ comments camecial average, Windsor Raceway could introduce Alderman, angrily quizzed the outgoing executivedirector of the commission as to why it li-a plan to expand live racing and improve the livelihoodof OHHA’s members.” Slots at Ontario censed Donald Trump’s casino company to operatea casino in French Lick. Alderman calledtracks are operated by the OLGC, not the tracks.The OHHA, meanwhile, contacted the racing it “extraordinary” that the state chose the company,given its financial situation. Daniels saidcommission and requested immediate action toresume racing at Windsor under its mandate to yesterday he wanted to review the deal before agovern, control and regulate horse racing. final contract with the Trump organization wasWhether that mandate includes power to demand signed.that private enterprises operate remains to beseen, but the OHHA also says it requested a meetingwith Windsor Raceway to try and resolve its state Gaming Control Board, which has some 60In New Mexico, Brett Woods, the director of theconcerns, and also contacted the OLGC concerningits operations at Windsor. The OHHAat racetracks, fraternal clubs and non-Indianemployees and overseas slot machine gamblingwill hold a meeting of members Wednesdaycasinos, resigned his $85,000 a year job.evening.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondJanuary 12, 2005Stanley F. Bergstein, EditorROSECROFT SALE GETS OKThe Maryland Racing Commission yesterdayunanimously approved the sale of RosecroftRaceway to Georgia K. Angelos, wife of Peter G.Angelos, the majority owner of the BaltimoreOrioles. Mrs. Angelos is expected to close thesale within 30 to 60 days. The chairman of theracing commission, Tom McDonough, acknowledgingthe family tie, said frankly, “We all knowwho’s the power behind this. Having PeterAngelos in the corner of the people trying to getslots to help racing and breeding is a good thing.We’ve got to get some help from the legislature.I think Peter helps in that respect. He gets thingsdone. With his enthusiasm and hard work, we’reconfident he can bring racing to new heights inthe state of Maryland.” Neither Peter Angelosnor his wife attended the commission meeting,but they were represented by Louis F. Angelos,their son, representing Rosecroft Holdings as itsattorney. He told the commission he pledged towork with thoroughbred interests as a “supportivesociety,” not only to pursue slots but to helpresolve long-running disputes in Maryland racingand promote the product. Alan Foreman,attorney for the Maryland ThoroughbredHorsemen’s Association and a major player inthoroughbred racing nationally, told the commissionhe was absolutely certain thoroughbred interestscould work with the Angelos family.“We’ll be able to deal with them,” he said. “TheAngelos family comes from a thoroughbred background.They understand our issues and concerns.”Rosecroft Holdings will pay $13 millionfor the track. It already has advanced $7.2 millionto pay off the mortgage held by Dr. MarkRicigliano’s Northwind Racing and loaned thetrack an additional $500,000 as a deposit, withthe remaining $5.3 million to be paid at closing.The agreement calls for 150 days of racingwith purses of some $43,000 a day, ascompared to 117 days and $41,000 last year.GOOD NEWS FOR POMPANOA circuit judge in Florida yesterday threw outthe lawsuit challenging the validity of the slotmachine referendum, writing that courts canoverturn the results of an election only wherethere is evidence of fraud in the election itself,not in events leading up to the election, such aspetition drives. The judge, Nikki Ann Clark, saidthat “to invalidate the amendment after the facton the grounds asserted would thwart the will ofthe people who voted for it and would improperlyinject this court into the political process.”Floridians voted 51% to 49% in November tochange the state constitution to permit local electionson slots in south Florida. An appeal of thedecision is promised by opponents, but Clark saidin her opinion that “any improper signature gatheringwhich may have occurred on the petitionswas cured by the election in which the voters approvedthe slot machine amendment.” She alsosaid the complaint about procedures in verifyingsignatures was a matter for the executive branchof government, not the judicial branch. Negotiationscontinue between Broward county officialsand their counterparts in Miami-Dadecounty hoping for special March 8 elections inboth counties on the issue.WEST VIRGINIA GOV SAYS NOThere will be no special session of the West Virginialegislature to vote on table games at tracks.Gov. Bob Wise, entering his final week in office,says he is too busy with other matters, includingflooding, and time has run out.In New Jersey, despite federal law that says it isillegal, an Assembly committee ploughed aheadon a bill to allow sports betting in Atlantic Citycasinos. The vote now goes to the full Assembly,even though the Office of Legislative Servicessays a challenge to federal law “most likely”would fail.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor January 14, 2005PLENTY OF NEWS..MOSTLY BAD headline over Campbell’s letter read, “IntegrityRacing was in the news today, coast to coast, and No Easy Task.” Of course it’s not. But if it is anthe headlines and stories were not pleasant reading.In New York, a successful thoroughbred and head out.impossible task, we had better all pack our bagstrainer, Greg Martin, and a longtime harnessdriver, Rene Poulin, were included in those As New York headlines were hammering racing,charged with milkshaking at Aqueduct in a race those in California and elsewhere were indictingmore than a year ago. The front page of the New it as well. Jockey Pat Valenzuela, with one ofYork Post read, “Race Fix: Gambler doping scandalshocks Big A, Belmont.” The Daily News cov-Neil Papiano, leading the way, was back in rac-California’s smartest and best known lawyers,ered its entire front page with “Mob Day At The ing. Bill Christine, the Los Angeles Times’ awardwinningracing writer, wrote that PapianoRaces.” Not surprisingly, the assistant U.S. attorneyhandling the case also made bold type, “painted witnesses into a corner and left themsaying, “This is not a one-time deal. This is somethingthat was happening regularly.” He also said Christine called “little choice” after an adminis-there.” The California racing board, with whatthe mixture was “impossible to detect in trative law judge’s ruling, relicensed Valenzuela,Aqueduct’s postrace drug tests.” Milkshakes are who has had 11 drug-related suspensions fromsuccessfully tested for all over the nation, and if riding since first testing positive for cocaine inthey are not tested for at Aqueduct, New York 1988. Gary West, the star racing writer of theracing should be ashamed. According to the New Fort Worth Star-Telegram, led his story with,York Daily News Poulin and Martin, the son of “After several drug-related suspensions, jockeyHall of Fame trainer Frank (Pancho) Martin, face Pat Valenzuela is set to resume riding, and horseup to 20 years behind bars on federal gambling, racing is set to resume its role as an enabler.”race-doping and fraud charges.The headline on West’s story read, “Jockey’s returntaking the sport for a ride.”It has long been predicted here that one of thesedays racing figures would wind up behind barsas a result of the medication mess. This may ormay not be the case that results in that. Eitherway, the news arrived on the same day prominentthoroughbred owner Cot Campbell, defendingthe toothless Code of Ethics on horse auctionspresented last month by a committee hechaired, said in a letter to the Blood-Horse that“developing a practical, legally feasible organizationfor accomplishing this is close toimpossible.....Start with an industry that has nocentral power for punishing anyone in respect tocriminal issues. Add the legal ramifications arisingfrom matters of libel, and throw inthe complications of 50 states, with eachhaving its own set of unique laws.” TheBAD NEWS IN ONTARIO, TOOThere was bad news in Ontario as well, althoughnot a scandal. The Ontario Harness Horse Association,with some 200 members meeting inWindsor, “strongly rejected” Windsor Raceway’slatest date application offering to race 124 days.The OHHA is insisting that Windsor be made torace 153 days. The Ontario Racing Commissionannounced it would consider the Windsor applicationat a meeting in Toronto next Tuesday, Jan.18, at 4 p.m.ONE LITTLE RAY OF SUNSHINEOhio governor Bob Taft has appointed NormBarron as interim chairman of the OhioState Racing Commission.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor January 17, 2005GURAL SIGNS TO BUY VERNON FALLOUT WIDE AND FARJeff Gural, one of New York City’s most importantreal estate magnates and a major owner and New York in the Aqueduct milkshaking case andRepercussions from the federal indictments inbreeder in harness racing, has signed a deal to betting ring surrounding it have been felt acrossbuy Vernon Downs. Gural, who bought Tioga the country. In Manchester, New Hampshire, twoPark earlier this year, agreed to invest $8.5 millionin Vernon and assume its mortgage held by general manager Richard Hart and assistant GMexecutives of Lakes Region Greyhound Park --Vestin of Las Vegas, but he put a large conditionalstamp on the purchase. Gural says he will with the case involving alleged associates of theJonathan Broome -- were indicted in connectionbuy the track only if the state of New York increasesthe amount racetracks keep from video charged with money laundering and participat-Gambino organized crime family. Both weregaming machines, and he has helped get a bill ing in a gambling conspiracy, but Allan Hart, generalpartner in the operation and uncle of Rich-introduced in Albany that would double theamount that tracks receive, from 20% to 40%. ard Hart, said both men were “100% legitimatePaul Noyes, chairman of the board of directors guys” and tried to distance the track, which hasof Vernon’s parent Mid-State Raceway, called pursued outside bettors vigorously, from InternationalPlayers Association, the organizationGural’s agreement “a new dawn for VernonDowns,” saying Gural would give the track instantcredibility because he is so well known in sonal involvement with it. He called the indict-directly involved, but would not discuss his per-the harness racing industry. Noyes said Gural ments “a totally separate issue” that have nothingto do with Lakes Region Greyhound.would invest $1.2 million into Vernon immediatelyto get the track up and operating. The salehas to receive approval from the U.S. Bankruptcycourt, since Mid-State filed for bankruptcy August11. A Syracuse lawyer representing VestinMortgage said he had not yet seen terms of theagreement as yet, so he could not comment. Publishedreports have put the value of that mortgageat $26 million, but a major stockholder ofMid-State disputes that amount and said Vestincould be owed half that amount.SIMULCAST OF THE PRIXThe Meadowlands and Hippodrome de Montrealwill simulcast Europe’s greatest trotting race, thePrix d’Amerique from Vincennes in Paris, onSunday morning, Jan. 30. Post time for the 84threnewal of the classic will be 9:40 a.m. easterntime. For a contract or more information, contactYvon Giguere, simulcast manager, at514-739-2741, ext. 2361, fax 514-340-2025, email ygiguere@sonacc.com.In Fargo, North Dakota, where Susan Bala’s defunctRacing Services was named as part of theNew York betting scheme, and where a trial onan earlier indictment on running an illegal gamblingoperation is to start tomorrow, there was astartling development. Raymundo Diaz Jr., a vicepresident of Racing Services and a close confidanteof Bala’s and fellow defendant in the 12-felony count case, reportedly will change his pleato guilty on some counts and testify for the government.When asked if his testimony will hurtthe case, Bala told the Associated Press that “thetruth will carry the day.”In Lexington, KY, the National ThoroughbredRacing Association urged its member tracks tocut off rebate betting shops unless they disclosetheir ownership and allow review of their wageringdata.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor January 18, 2005BALA GOES ON TRIAL TODAYThirteen months after their indictment, SusanBala and her chief lieutenant Raymundo Diaz Jr.,go on trial in Fargo, North Dakota, today, facing12 federal felony counts. The charges includerunning an illegal gambling operation, moneylaundering,illegal wire transmission and conspiracy.Their Racing Services and Global ContactInc., owned by Diaz, also are on trial. Theweather may be cold in Fargo, but this trial couldbe hot, and the fallout from it could be far reachingand include big names before it ends in thenext two weeks or so.BROWARD GOES ON TRIAL TOOWell, not really on trial. But Broward countycommissioners meet this afternoon to considerwhether to approve a March 8 election that wouldput the issue of slots at tracks before Browardcounty voters. The commissioners are expectedto approve the election, and Miami-Dade countycommissioners meet Thursday to consider holdingan election on the same issue on the sameday. Since the measure won resoundingly in November,it would seem chances are good of it winningagain, but state senator Steve Geller, presidentof the National Council of Legislators fromGaming States, warned that the real battle maycome not at the polls but in Tallahassee. Legislatorswill have to consider the rules, includingoperating hours, tax rates and the split in revenues,and Geller says anti-gambling Jeb Bushmay “only pass a bill that is so restrictive thatthe pari-mutuels will reject it. For example, limitingit to the same hours as the card rooms --only 12 to 12 and only days tracks run live. Orhe’ll ask for a 70% tax rate.” Jim McAlpine ofMagna Entertainment, who spoke at Geller’sNCLGS meeting last week, said tracks must beable to operate freely and without burdensplaced upon them by legislators and outdatedstatutes. Ah, but who bells the cat.HONKYTONK WITH MOUNTAINSThat was what the Concord, NH, Monitor saidwould happen to New Hampshire if gambling isexpanded there. “Opening the state to gamblingwill permanently change its image from a beautifulplace for family vacations to a honky-tonkwith mountains,” the paper editorialized. Itcalled tracks “dying industries with waning politicalpower,” and said that if the four in NewHampshire got video slot and poker machines,“you can bet that some of the state’s resorts andhotels will too.” Gov. John Lynch yesterday calledfor a full investigation of last week’s indictmentof two Lakes Region Greyhound Park officials,saying if anyone is found to have violated the law,they should be prosecuted fully. The governor alsosays he wants “clear and convincing evidence”that gaming could be expanded “without harmingthe state’s quality of life” before he wouldapprove any such legislation.PENNSY DECISION DELAYEDDon’t expect a decision on who gets the last harnessracing (and racino) license in Pennsylvaniauntil the birds chirp and the flowers bloom. ThePennsylvania Harness Racing Commission, nowat full three-man strength, has postponed a decisionuntil then as a result of Ambrosia Enterprises,one of the two applicants, dropping Isleof Capri as a financial backer and switching toInnovation Capital Holdings of El Segundo, California.HTA president Jeff Smith, who representsthe second applicant, Centaur Racing, saidof the development, “Once again, we are readyto proceed and Bedford Downs is not. The lackof an operator and secure financing are centralmatters for Commission consideration.”THIS COULD HELPAmerican Airlines has eliminated Saturday nightstay requirements in many markets. Check tosee about Palm Springs or Ontario, California.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor January 19, 2005ORC OKS WINDSOR DATEElsewhere in New York, Gov. George Pataki presenteda highly controversial and hotly disputedAfter four hours of discussion, debate and differences,the Ontario Racing Commission unanimouslyaccepted a date application from Windsor track VLT casinos throughout the state. Givenbudget that includes a provision for eight non-Raceway, with conditions and over the objections New York’s dismal legislative record -- it has notof the Ontario Harness Horse Association, thus met an April 1 budget deadline in 20 years -- it isopening the way for a quick resumption of racingat the HTA member track in Windsor, Pataki’s proposals, particularly in the Democraticnot likely that there will be any rapid action onOntario. The commission approved Windsor’s Assembly. Included in Pataki’s proposals is a124-day proposal, providing the track will make reorganization plan, passed in the Senate but ignoredin the Assembly last year, to abolish theup seven missed days, bringing the total racingschedule to 131 days, and average 15 races a card New York Racing and Wagering Board andover the entire 131 days. The commission gave merge its duties into one State Gaming Commissionthat would control racing, the Capital In-Windsor until noon tomorrow to accept the proposal,or it will again reject the entire applicationtionalso arose about the renewal of NYRA’s livestmentFund, and slots in the state. Speculacense,which expires in 2007 after 50 years. Acommittee could be appointed by December ofthis year to solicit requests for proposals to operateNYRA tracks for 10 years starting in 2008.REBATERS OUT, TESTING INIn the aftermath of last week’s milkshaking andbetting scandal at Aqueduct, two positive andoverdue steps have been introduced. The NewYork Racing Association has ended its relationshipwith four off-track betting sites with whichit had been doing business -- Euro Off-Track,operations on the Isle of Man off Great Britain,the International Racing Group and Elite TurfClub in Curacao, and the Tonkawa Indian Reservationin Oklahoma. In addition, NYRA announcedit was introducing milkshake testing atits tracks, and was “aggressively” reviewing itsrelations with other secondary pari-mutuel organizations(SPMOs) with which it has been doingbusiness. This action has been urged by theThoroughbred Racing and Protective Bureau andStandardbred Investigative Services for years. Ina related move, the Meadowlands announced italso was cutting off simulcast servicing to the foursites banned by NYRA. Officials are hoping forexpedited legislation in Albany to permit sodiumbicarbonate testing to begin as soon aspossible, perhaps as early as March.ELSEWHERE IN RACING.....In FARGO, ND, an hour before the trial of SusanBala and her Racing Services got underway,Bala’s partner and co-defendant in the proceeding,Raymundo Diaz Jr., pleaded guilty to threecounts and agreed to testify against Bala.....InBROWARD COUNTY, Florida, county commissionersapproved a special election March 8 inwhich residents will vote to approve slots at tracksthere. If the referendum passes and legislationdoes not amend it too drastically, slots could startat HTA’s Pompano Park as early as July 1, althoughhours, number of machines, revenue splitsand taxes still are under discussion......In THEPOCONOS in Pennsylvania, the owner of PoconoAuto Raceway unveiled a plan for a $300 millioncasino complex, which he hopes to build ifawarded one of two resort licenses...At theMEADOWLANDS, profit from the PresidentialSeries Saturday night will go to Red Cross tsunamirelief.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor January 20, 2005MINNESOTA OKS HARNESS NEW MICHIGAN COMMISSIONERThe Minnesota Racing Commission yesterday Thoroughbred Times.com reported this morningvoted, 5-3, to approve a combined harness track that Christine C. White, currently director of agriculturepolicy at the Michigan Department ofand card room that it previously denied. Theapproval on reconsideration, after an earlier turndownbecause of concerns of competition with terim Racing Commissioner in Michigan by gov-Agriculture, was to be announced today as in-Canterbury Downs, apparently clears the way ernor Jennifer Granholm. Ms. White would succeedRobert Geake, whose term expired Dec. 31.for the North Metro Initiative, a group headedby CEO James B. Druck, to move forward with White is a Notre Dame graduate in political science,and a daughter of former Michigan con-plans to build its proposed $47 million complexstarting next spring, with racing in 2006. A 7- gressman Donald Albosta. The Times story, byday, 24-hour cardroom could open during the Greg Forde, was unconfirmed at press time, butfirst full year of racing. The license was granted rumors of White’s appointment had been heardafter a memo to the commission from the MinnesotaHBPA saying it had “a basis for agree-known on how long White will serve.in Michigan. The story said no details werement” with Southwest Casino, one of NorthMetro’s partners, for a fail-safe provision on thoroughbredand quarter horse purses at Canterbury,to be backed by a percentage of gross cardclub revenues against any purse losses at the runningtrack.VERNON SAYS NO TO SCOTTVernon Downs parent, Mid-State Raceway, yesterdaysaid “No thanks” to its former “savior,”Shawn Scott, and his partner Vestin Mortgageof Las Vegas. Scott and Vestin had offered toinvest another $9 million to get the track up andrunning, as opposed to the $8.5 million offeredby harness horse owner and breeder and real estatemagnate Jeff Gural, but Vernon said it preferredto deal with Gural, who should have noproblems getting licensed in New York State,where Scott already has been denied a license.Gural’s bid is contingent on getting legislationchanged in New York to increase track share fromVLTs, while Scott’s is not, but Scott’s ability toget licensed was a major consideration, accordingto Mid-State chairman Paul Noyes.Vernon is hoping to be able to reopen inApril for live harness racing, and get itsracino open as soon as possible.WINDSOR ISSUES STATEMENTHTA member Windsor Raceway resumes racingSunday with a 6 p.m. post time, and will race131 days in 2005 with 1,965 live races. In announcingthe schedule, track president JohnMillson said the model validation “clearly establishes”the commitment of track owner TandemEntertainment to live horse racing through innovation.Millson said he believed the understandingwill lead to “a new decision processwhereby race dates can be determined onbenchmarked data and not on unsubstantiatedclaims.”TRACKS SHARE FLORIDA COSTSIt is illegal in Florida for special interests to payfor an election, but it is perfectly legal to pay forexpenses that may be incurred by the result.Florida tracks in Broward and Miami-Dade apparentlyhave agreed to pay a total of $6.5 millionfor expenses such as added security and roadimprovements that may be necessary as a resultof the March 8 elections in both counties thatcould open the way for slots at tracks in thosecounties. State legislation can impact theoutcome regardless of the vote.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor January 21, 2005GOOD NEWS ON MEDICATION $250 MILLION UP FRONT?With the approval of model rules of the Racing That’s the number kicked around this morningMedication and Testing Consortium by seven majorracing states, and California moving to legaldentfor the Albany Times Union, as the up-frontby James Odato, the Capitol bureau corresponizemilkshake testing, the sky is brightening on franchise fee for the New York Racinguniform medication policies. Six mid-Atlantic Association’s license, which expires Dec. 31, 2007.consortium states -- Delaware, Maryland, New Odato says governor George Pataki plans to bidJersey, New York, Pennsylvania and Virginia -- out the NYRA franchise as early as this year, andadopted the RMTC rules yesterday, along with wants bidders to come up with a one-time franchisefee on or before March 31, 2007, with an-Ohio, and in California the racing board approvedTC02 testing subject to a legislative nual payments after that. A Pataki spokesmanchange allowing such testing without split said the $250 million is not set, and could be lowersamples. It took California almost a year to get or higher, but any number of that magnitudeto this point, according to the board’s vice chairman,but at least they are there. They don’t have NYRA’s CFO, William Byrne, said, “NYRA as itcould present serious problems for NYRA.any penalties yet for offenses, other than loss of exists today certainly doesn’t have $250 millionpurse, but commissioner Richard Shapiro is campaigningfor minimum penalties, including ex-with $250 million.”to write a check to the governor. I can’t come upclusion for a second offense. Arkansas, which hasbeen testing for milkshakes after racing, now isdiscussing a change to test for them before racing.The noose is tightening.SPEAKER: NO INDY SLOTSThe Speaker of the Indiana House, Brian Bosma,announced yesterday that there was no hope forIndianapolis mayor Bart Peterson’s plan for acasino in that city to finance a new football stadiumfor the Indianapolis Colts, and that themeasure was dead on arrival. The House minorityleader, Democrat Pat Bauer, said he thoughtthere might be alternatives, saying, “We have tofind another horse to ride.” Hopefully, the horsemight be stabled at HTA’s Hoosier Park and IndianaDowns, both of which have expressed interestin helping fund a stadium if they were givenpull-tab slots. The proposed stadium, plannedto replace the RCA Dome, the smallest in theNFL, would seat 63,000, with a retractable roofand expansion capabilities to 70,000 fora Super Bowl, and would cost between$550 and $700 million.SUSAN SAYS SHE DIDN’T KNOWThe Racing Services federal trial began yesterdayin Fargo, ND, and Susan Bala’s defense attorneysaid Susan didn’t know about problemswith more than $99 million in bets being unreportedbecause none of her employees told her.“She didn’t see any of this unfold before her,”her attorney said.A REALLY TOP MAN AVAILABLEIf you are looking for a really experienced andskilled general manager or mutuel manager, oneof the very best in the business is available forwork immediately. He has worked at top levelsin both areas, and is an indefatigble worker. Forfurther information, contact Stan Bergstein at theHTA office.RESERVATION DEADLINE NEARYou have two weeks to make room reservationsfor the joint HTA/TRA meeting, after whichit’s open season. Contact Cindy at HTA toassure a soft bed.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor January 24, 2005TURNING OFF THE FAUCET WOLF TURNS SNOW TO GOLDAfter 10 years of feverish expansion of gambling Racing was flattened over the weekend by thein Ontario, the province has decided enough is driving blizzard that covered the country fromenough. Economic Development Minister Joe the midwest to the east coast, but it was grist forCordiano has said there will be no new installationsof slots at tracks, no VLTs in bars and res-bulletins all day Saturday that it was in the 70sSteve Wolf’s mill in Florida. After sending outtaurants, no slot machines in bingo halls, and no and Pompano was racing, the innovative Wolfprovincial involvement in Internet gambling. filed this lead on the track’s Saturday night card:Present installations, however, will be upgraded, “Pompano Park was one of the few tracks inand Cordiano did not rule out that some sites North America that did not have to cancel racingSaturday due to snow. In fact, the closestcould get more slots. He said the new strategy isintended to preserve the economic viability of the thing to snow at the track came in the form ofgambling industry in Ontario, where 16 tracks the pure white gelding Forever Laag ($55.20,currently have slots and two more -- Picov Downs 12.00, 6.80) a 26-1 shot that swept four-wide inin Ajax and Quinte Exhibition and Raceway in the final turn and posted a 1:54.4 three and onequarterlength romp in the sixth race pace.”Belleville -- will be permitted to complete plansalready underway. “Our strategy,” Cordianosaid, “will not only keep the industry competitive,it will ensure social responsibility is frontand center in the way we manage Ontario’s gamingindustry.” Cordiano acted after a consultantreported that the gambling market in Ontario isnearing the saturation point, and that managementof current operations and not creation ofnew ones was the most prudent course. The studywas commissioned by the Ontario Lottery andGaming Corporation, which manages slots at alltracks in Ontario.BLOOMBERG NIXES SLOT IDEAThe governor of New York, George Pataki, wantscasinos all over the state, including five in New YorkCity, to help raise money for schools, but the mayorof New York does not like the idea. Mayor MichaelBloomberg says he has never been a great fan ofgambling and that “the big problem that I havewith it is that it is a very variable income source,when most of the city’s expenses are fixed and longterm.”Bloomberg has allies in Assembly SpeakerSheldon Silver, who also dislikes the idea,and City Council Speaker Gifford Miller,but the all-powerful Senate MajorityLeader Joe Bruno supports Pataki.GETTING RACY IN THE AIRThe giant Airbus A380 is still three years fromflying commercially, but it hasn’t slowed downpublicity-wise Richard Branson, part owner ofthe quaintly named Virgin Atlantic airline.Branson was in France preparing for lastTuesday’s roll-out of the first giant doubledecker,to seat 555, in Toulouse, and as usual he was inrare form with the press. He told reporters thatthe Virgin form of the huge plane would containa gym and casino offering blackjack and roulettein both economy and business class, and by theway it would have double beds as well. Neverone to miss an opportunity, Branson said, “Sinceyou have gaming and you have private doublebeds, maybe there are two ways of getting luckyon a Virgin plane.”APPLAUSE! APPLAUSE!Messages from all over the place congratulatingHTA on its naming Dean Hoffman, executive editorof Hoof Beats and the sport’s most prolificwriter, as winner of the 2005 Messenger Award.The response was the largest of its kind everreceived here on a Messenger recipient.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor January 26, 2005NYRA OUSTS 6 MORE OUTLETS UNUSUAL TWIST AT VERNONThe fallout from the Aqueduct indictments continues,as the New York Racing Association an-Vernon Downs’ ownership, contending biddersIn an unusual arrangement in the dispute overnounced it will terminate sending signals to six Jeff Gural and a partnership of Vestin Mortgagemore simulcasting outlets. The six are Racing and Shawn Scott have agreed to each put upand Gaming Services of St. Kitts, West Indies; $75,000 to tide the track over for a week untilLakes Region Greyhound Park in Belmont, NH; bankruptcy judge Stephen Gerling decides whoCapital Sports Limited, Canberra, Australia; will get to invest in the track. Vernon’s parentDarwin All Sports Ltd., Darwin, Australia; Coeur Mid-State Raceway accepted an $8.5 million offerfrom Gural and turned down a $9 million bidd’Alene Casino, Worley, Idaho; and the ExcelsiorCasino in Aruba. NYRA’s senior vice president,Bill Nader, said of the suspensions, “We court the party that wins Gerling’s decision willfrom Vestin. Under the agreement in bankruptcyneed to know more about the ownership, clienteleand business practices of these simulcast needed because Mid-State’s interim CEO, Jus-pay the loser’s $75,000 loan. The $150,000 issites.” Predicting that the action could result in tice Cheney, told the court Vernon would be completelyout of money by the end of this week ora $10 million loss to NYRA, Nader said, “Hopefullywe can recover some of that handle through Monday at the latest.other outlets, which will lessen the economic impactof the decision.” NYRA’s new president andCEO, Charles Hayward, said that NYRA hasmade great strides in improving the transparencyof its operations, and added that it felt “thosewho do business with us should be held to thesesame high standards.”In related developments in the Racing Servicestrial in Fargo, ND, the former vice president ofthe company, Raymundo Diaz Jr., claimed he didnot know the operation was not properly licenseduntil three months after it opened. Diaz said helearned about it only after his CFO and controllershowed him an account statement for a companycalled Brixcorp that was used to disguisethe Fargo betting site of Racing Services. Diaz,who said he lived with co-defendant Susan Balaon two occasions, testified against her after pleadingguilty to three counts of operating an illegalbetting operation. He said he and Bala had dinnerin New York with Gerald Uvari, one of RacingServices’ big bettors indicted in theAqueduct betting ring scandal last week.Diaz will continue testifying today.HOOSIER TAB HEARINGS BEGINState legislators in Indiana begin hearings todayon proposed bills that could provide 2,500 pulltabs,similar to slot machines, at HTA membersHoosier Park and Indiana Downs. A Republicansponsor of one bill said putting the slots atthe two tracks would provide enough funding toenable construction of a new stadium for the IndianapolisColts. A casino in Indianapolis alreadyhas been ruled out by Indiana’s new governor,Mitch Daniels, who says that if the legislaturepasses a slots bill he prefers awarding the licensesby competitive bidding among all interested parties.In Iowa, meanwhile, the Racing and GamingCommission yesterday approved a $60 millionexpansion of HTA member Prairie MeadowsRacetrack and Casino. The expansion would add500 slots to the 1,500 already at the racino, andwould double the number of table games to 65.GM Bob Farinella says the expansion should becompleted by April of 2007 and will boost revenuefrom $160 million a year to $200 million.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor January 27, 2005SLOT HOPES DIM IN INDIANA ANOTHER FED TRIAL BEGINSChances for slots at Hoosier Park and Indiana While the Racing Services trial droned on, anotherfederal trial was getting underway in Provi-Downs dimmed yesterday, when the chairmanof the House Public Policy Committee said he dence, Rhode Island, where Dan Bucci, formerwon’t allow a vote on the issue unless the proponentsand opponents get together on a compro-CEO of Lincoln’s owner, Wembly Plc, are facingCEO of Lincoln Park, and Nigel Potter, formermise, which seems unlikely. The chairman, RobertAlderman, said, “This is not my issue. I cer-Lisi spent yesterday interviewing jurors, and infederal bribery charges. U.S. district judge Marytainly don’t live or die on this issue. I will drop it federal court, trials begin immediately after juryin the trash can before I let it become political, I selection, which is expected to be completed thiscan tell you that right now.” Alderman also said week. Bucci, Potter and Lincoln Park are underthat if he takes the bill off the table, it will not be federal indictment for allegedly attempting to payrevived this session. The issue at the moment a bribe of millions of dollars to an attorney whosehas evolved into one between the Democratic cousin and law partner was speaker of the Housemayor of Indianapolis, Bart Peterson, and the of Representatives in Rhode Island at the time,new Republican governor, Mitch Daniels, over a supposedly to stop a Narragansett Indian bid fornew stadium for the Indianapolis Colts. Peterson a casino and to add slots at Lincoln Park.apparently has abandoned his quest for a casinoin downtown Indianapolis, realizing there is no DOES THIS SURPRISE YOU?chance of getting that accomplished, but he still The governor of West Virginia, looking to privatizethe state’s workers’ compensation program,hopes to raise $46 million a year for 30 years,which is what he says is needed. In another Indianadevelopment, three of the seven members be the state’s race tracks. He is proposing to gethas decided a good place to help finance it wouldof the state gaming commission resigned in responseto governor Daniels’ call for them to do splitting the slots’ contribution to purses betweenat least $20 million of the needed $230 million byso. So far, 17 members of various state boards purses and the state, with the state’s share cappedhave turned in their resignations, although at $20 million. The tracks received $91.9 millionDaniels is not expected to accept all of them. in purse subsidies from slots in the 2004 fiscalyear that ended June 30.MORE DIAZ-BALA TESTIMONYThe romance clearly is over between RaymundoDiaz Jr. and his former boss and buddy, Susan Bala.Yesterday, as the Racing Services trial continuedin Fargo,ND, Diaz testified that he had shared concernswith Bala about state taxes not being paid amonth before the outfit was raided, and that shehad told him she would take care of the matter.The accountant who prepared Bala’s income taxreturns said that as betting increased so did Bala’ssalary, leaping from $120,716 in 2001 to $683,624in 2002, then dropping back to $122,815 in2003, after the golden goose was stricken.HAVE A DRINK, WITH SLOTSThe Oregon State Lottery Commission, urged bygovernor Ted Kulongoski, voted unanimouslyyesterday to allow slot machine-style games in asmany as 2,200 bars and restaurants across thestate. The establishments could have the electronicmachines online as early as July 1. Barsand restaurants have had video poker in Oregon,but to get the new slots they will have to agree toa reduction in their share, which produced $164million in profits on video poker last year.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor January 28, 2005BIG PLANS FOR POCONO TRACKPOWER JOINS GURALRobert Soper, the youthful new president and TrackPower, Inc., and its CEO John Simmonds,CEO of Pocono Downs, lost no time in telling of partners with Jeff Gural in reopening Tiogathe Mohegan Tribal Gaming Authority’s ambitiousplans for the track after the group closed announced that the company will be entering intoDowns in Nichols, NY, near Binghamton, haveon its $280 million acquisition of the track and a joint venture with Gural in his pursuit ofits five OTB parlors from Penn National Gaming.Soper said the Mohegans expect to spend of Vernon Downs, accepted an offer two weeksVernon Downs. Mid-State Raceway, the parent$175 million on new construction, furnishings and ago from Gural to contribute $5.4 million on anequipment for the track and its racino, in additionto the $50 million upfront fee on receipt of the TrackPower announcement says that on con-interim basis for continuation of operations, andthe gaming license. Although the designs are not firmation of Vernon Downs’ Chapter 11 plan, theyet complete, Soper said they will include a racino loans will be converted to 80% of the issued publiclytraded common stock of the reorganizedfor between 1,500 and 3,000 machines initially,along with some restaurant and retail facilities debtor. It says that if approved by the BankruptcyCourt, TrackPower and Gural will eachand a small entertainment area.hold one-half of the 80% interest acquired onconfirmation and each will contribute one-halfof the funding required.In a related and bizarre development,Pennsylvania’s gaming law provision for challengingthe sales price of tracks has been mentionedin press reports. Aside from the dangerousprecedent of dictating the sale price of privateproperty, what the Mohegans paid forPocono has no relationship to the $47 million thatPenn National paid for the track nine years ago.Slots were a far-off and far-from-certain dreamat the time, and the present price also has littleor no relationship to the $53 million that MagnaEntertainment paid for The Meadows in 2001,also long before anyone knew whether Pennsylvaniawould pass a racino law. In typical pressfashion, the Philadelphia Inquirer appeared to bemaking an issue of the price provision, but expertsin the field made light of the non-issue. TheInquirer’s John Sullivan, who wrote the story, didquote William Thompson, a professor of publicadministration at the University of Nevada-LasVegas, who said of the pricing question, “Thereis no sense to that. It’s rent control. We have amarketplace that tells us what the valueof something is.” He’s right, and thegaming commission should make shortwork of dismissing the matter.BALA CATCHES MORE HEATLeonard (Lenny) Del Genio, a Las Vegas handicapperwho worked for Susan Bala for five years,testified yesterday at Ms. Bala’s federal trial onillegal gambling charges that “she knew everythingthat happened” at Racing Services, saying“Nothing ever was ordered without Susan’s fullauthority and permission.” His testimony contradictedthe defense argument that she wasn’taware that $99 million in bets were going unreportedand untaxed at her Fargo operation.TIME RUNNING OUT FOR ROOMSA high-powered agenda for the upcoming HTA/TRA meeting will be announced early next week,and if you plan to hear it and take part in it andhave not yet made hotel reservations with CindyKnox at the HTA office, you had better do so.HTA’s room block expires the end of next weekfor the March 8-12 meeting at the Hyatt GrandChampions resort in Indian Wells, California.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor January 31, 2005NEWS FROM ALL FRONTSA very busy day in the world of racing.In New York, the state Racing and WageringBoard withdrew its approval for state racetracksto engage in simulcasting with 10 outlets previouslysingled out by individual tracks, thus barringall tracks in New York state from doing businesswith them. It also was announced thatNYRA and the New York ThoroughbredHorsemen’s Association were funding the freezingof urine samples at Dr. George Maylin’s laboratoryat Cornell, keeping them on hand for useas new tests for performance enhancing substancesare developed.At Saratoga Springs, Saratoga Gaming andRaceway announced it was eliminating its giftshop as part of an expansion of higher stakes slotsfor high rollers. Up to 20 new machines withbets ranging from $5 to $25 will be installed.Shawn Scott, suing again, now is seeking to havefive directors who run Vernon Downs disqualifiedfor incompetence. Justice Cheney, one ofthe five and the track’s interim CEO, said Scottwas “grasping at straws.”In Kentucky, the Horse Racing Authority is expectedto vote this week to recommend legislationto create a Kentucky Injury CompensationFund for licensed jockeys, apprentice jockeysand exercise riders in the state. The action cameat the request of governor Ernie Fletcher, andpresumably was inspired in part by a blisteringfour-part article in the Lexington Herald-Leaderby writer Janet Patton on conditions on backstretchesin the state. We presume, although thoroughbredjournals might not report it in anyevent, that the state fund would coverharness drivers and grooms as well asjockeys and thoroughbred employees.In Paris, France, trotting fans have a new nationalhero after Jag de Bellouet won the world’srichest trotting race, the Prix d’Amerique, withroughly $650,000 to the winner, just one weekafter winning the $900,000 Prix de Cornulier, theworld’s richest race for trotters under saddle. Nohorse had been able to accomplish that doubletriumph in 30 years. The Hambletonian, scheduledto go for a purse of $1.5 million this year,will regain it status as the world’s premier trottingrace. Jag de Bellouet’s owner, incidentally,expressed no interest in racing his champion inthe U.S. this year, at least while basking in theglory of his double classic victory in France.In Iowa, Prairie Meadows Racetrack and Casinowas forced to return an unsolicited $10,000 checkto AmericaTab after the state attorney generalruled it is illegal for Prairie Meadows to take paymentsfrom sites that offer Internet or phone bettingto Iowa residents. Jack Ketterer, executivedirector of the Iowa Racing and Gaming Commission,said the thought was that it “would betaking fruit from a forbidden tree.”In Maine, Penn National Gaming is consideringthe possibility of building its $75 million racinoat a location other than Bangor Raceway, thecity’s historic downtown harness track. Thestate’s slot law allows the racino to be built withina roughly half-mile radius of the center of theracetrack. Asked if Penn National was engagedin negotiations with any particular landowner,spokesman Eric Schippers said, “That’s probablytoo strong a way to put it. We have had somediscussions.”In Pennsylvania, the director of the Wilkes-Barre/Scranton airport thinks it should have 100 to 150slots “to improve our bottom line, big time,” butlegislators from both parties, who fought for ayear over the slots bill, said in essence, “nodice.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor February 1, 2005JOCKEYS’ GUILD RELENTS THE GOVERNOR’S PLEASUREUnder pressure from a California Horse Racing An interesting situation has arisen in Indiana,Board committee chaired by commissioner RichardShapiro, the Jockeys’ Guild has agreed to ing to gain control of 17 state boards and com-where the new governor, Mitch Daniels, is seek-allow the racing board to examine its financial missions by requesting the resignation of 120statements and conduct a limited audit of the organization.The Guild, through its attorney ana, members of most state boards and commis-people working in those departments. In Indi-Barry Broad, assured Shapiro that he would be sions serve fixed terms, and of the 120 whoable to see anything he wanted to see, with one Daniels asked to quit, only 33 resigned by hiscaveat. That exception is that the racing board deadline of last Friday. One of those who didlimit its audit as to how the Guild spent the $1 not, Christopher J. Murphy III, who serves onmillion a year it has been receiving from California,but not delve into the expenses of Guild offi-Daniels, “I do not serve in my capacity repre-the Commission for Higher Education, wrotecials. Shapiro also was notified by Ron Warren, senting one political party or another, one educationalinstitution or another, nor one Gover-a northern California jockey, in a letter endorsedby 29 northern California riders, that they intendedto form a California Jockeys Guild in the not of confrontation.” Daniels is not seeking tonor or another. My response is one of principle,hopes of managing state funds to jockeys. State fire or replace all of those who resign. He simplylaw, however, specifies that the monies, from wants the freedom to do so. Four of seven membersof the state’s Gaming Commission resigned,uncashed tickets, be managed by a group representinga majority of California riders. Some 300 and all five members of the Horse Racing Commissiondid, but Daniels has not announced whichare licensed in the state. A second request to reviewthe books of the Guild, from the ThoroughbredRacing Associations, has gone unanswered. lose the executive secretary of the commission,resignations he will accept. If Indiana were toJoe Gorajec, it would lose one of the most knowledgeableand effective racing administrators inthe country.BALA CASE READY FOR JURYWith the defense of Susan Bala and her RacingServices winding down, it appears the federal casemay go to the jury as early as tomorrow, or possiblyThursday. Bala’s attorney noted that abonus check for $359,444 she received at the endof 2002 was deposited in the Racing Services accountrather than a personal account, but an assistantU.S. attorney made the point that “eitherway, personally or through the company, she wasdoing pretty well.” A former bookkeeper testifiedMonday that the pretax amount of Bala’s2002 bonus check was around $500,000. An accountanttestified that it was suggested Bala bepaid the bonus to limit tax liability ofRacing Services.HOW SARATOGA $$ WERE SPLITSaratoga Gaming and Raceway, which celebratedits first anniversary as a racino last Friday, paidout more than $900 million to winning bettors.The state picked up $82 million, of which 61%,or $50 million, goes to support education in thestate. The track received 29%, or $23.8 million,to be split on purses, and the Lottery commissiongot 10%, or $8.2 million, for administrativecosts.CAMPBELL, YOUBET AGREEHarness racing’s money-winning champion,John Campbell, has renewed his contractas a spokesman for Youbet.com.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor February 2, 2005IT AIN’T MUCH, BUT SUMPTIN BEATING AROUND THE BUSCHThe word standardbred isn’t heard much in Kentucky,where thoroughbreds hold sway, so it is and arch foe of slots at tracks, now is sponsoringMichael Busch, speaker of the Maryland Houseencouraging to learn that Gov. Ernie Fletcher’s a bill that would legalize them in Maryland, butnew plan for breeders awards, drafted in part by only at six locations he favors. Busch says he hasstate senator Damon Thayer, includes harness agreed to introduce a bill, with his name at theracing in a plan to establish a breeders’ award top of sponsorship, although he plans to voteprogram from stud fees generated in Kentucky. against it. That’s what the man said, accordingUnder the proposed plan, monies derived from a6% tax on stud fees would go not to the state’sgeneral fund, but to breeders, with thoroughbredsgetting 80%, standardbreds 13%, andother breeds 7%. The 13% to harness horsebreeders would amount to roughly $1.8 million.The tax law on the sales tax also is to be altered,providing that out of state residents who buyyearlings or 2-year-olds in Kentucky and keepthem there no longer would have to pay sales tax.Currently they have to pay tax if the horse is leftthere more than 60 days.In another Kentucky development, Democraticrepresentative Tom Burch of Louisville said heplanned to file two separate gambling bills, oneof which would provide for slots at Kentuckytracks and the other that would legalize them bylocal referendum. Burch says, “The money isthere, people are going to gamble, so why not keepthe money here in Kentucky?”PENNSYLVANIA WANTS MOREThe first slots at tracks in Pennsylvania still aremany months away, but the Democratic leaderof the House and the House Democratic whip saythey’re going after more revenue before the firstslot jingles. Both House leader H. WilliamDeWeese and whip Michael R. Veon say they planto sponsor legislation that would allow tablegames at the 14 slot locations that are now authorized,but do not yet exist. In a joint statement,the two legislators say they see nodifference between playing blackjack andpoker and playing slots.to NBC.OH OH, OHHA AT IT AGAINThe Ontario Harness Horse Association does notlose easily, or graciously. Still apparently seethingover the award of dates to Windsor Raceway,the truculent horsemen now are filing a classaction lawsuit against the track for $10 millionfor loss of income while the track was closed andfor supposedly breaching an agreement withOHHA. John Walzak, the president of OHHA,called the action “absolutely a watershed momentfor Ontario racing.” The suit claims, among otherthings, that Windsor has some $1 million in a trustfund that belongs to horse people. John Millson,Windsor Raceway’s president, said he believesthe claims are without merit “and brought tacticallyto extract concessions from Windsor Racewaywith respect to live race dates,” and he calledthem an attempt by OHHA to once again litigatethe same race date issues that were before theOntario Racing Commission and approved bythat body. Millson said he is “hopeful the courtswill expeditiously recognize this claim for thenegotiating ploy it is.”PATAKI, MOHAWKS, SETTLEGovernor George Pataki of New York gave theMohawk tribe what it wanted yesterday, settlinga land claim involving 12,000 acres in northernNew York. Under the settlement, the Mohawksget $100 million and the right to add 13,400 acresto their reservation, but no specific casino compact,although the tribe still hopes to buildone near Monticello.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondFebruary 3, 2005Stanley F. Bergstein, EditorMAJOR EXECUTIVE CHANGESBruce Garland, a veteran of 14 years of serviceat the Meadowlands and the senior executive vicepresident of the New Jersey Sports and ExpositionAuthority, is retiring. Garland, an attorneywho has been an industry leader during his entiretenure at the Meadowlands, served as presidentof Harness Tracks of America from 1998 to2000, and played a major role in obtaining an$86 million purse agreement with Atlantic Citycasinos and bringing the Breeders Cup toMonmouth Park in 2007. Garland has spentnearly 30 years in public service, and in retiringhe paid tribute to his colleagues, saying, “I’vebeen privileged to work with the professional staffat the NJSEA; they are the best in racing.”Dennis Dowd, former chairman of the New JerseyRacing Commission and a veteran executivewho headed Freehold Raceway, Rosecroft Raceway,Ocean Downs and, briefly, Vernon Downs,will move up from his current post as vice presidentof off-track wagering to become senior vicepresident of racing.Chris McErlean, who started his racing careeras executive assistant at HTA and has been generalmanager of the Meadowlands, now takes onnew responsibilities as vice president of racingoperations for both the Meadowlands andMonmouth Park.In another executive shift, Mark Loewe, formerOperations and Racing Director at PompanoPark, is leaving Florida to become Pari-MutuelMarketing Manager at Prairie Meadows Racetrackand Casino in Altoona, Iowa.Vince Donlevie has been named senior vice presidentand general manager of Harrah’s ChesterCasino and Racetrack, now in developmentin Chester, PA, and Annie Allman hasbeen named vice president of operationsand assistant general manager.ELSEWHERE IN RACINGThe Maryland racing industry, turning proactivein its efforts to get slots, has submitted a 15-page document to House Speaker Michael Busch,outlining a total revitalization of the importantMaryland industry if slots legislation were passed.Busch remained non-committal, but did call thedocument “the most substantive thing we’ve received.”Magna Entertainment, which ownsLaurel and Pimlico; William Rickman, the operatorof Ocean Downs, and the Maryland StateFair signed the document, and Rosecroft Racewaywill be included in the endorsement and programonce its sale to the family of Peter Angelosis completed. In a related development, a Marylanddelegate is filing a bill to close HTA memberOcean Downs and lay the foundation for WilliamRickman to open a new track in PocomokeCity. Rickman is reported to be in favor of themove.The defense rested in the Racing Services’ casein Fargo, ND, with defendant Susan Bala essentiallytelling the court she was unaware of theevents for which the federal government is seekingher conviction. She said that when she foundout wagers at Racing Services were four timesthe normal amount, “it was staggering to me.”In the Dan Bucci trial in Rhode Island, the governmentproduced documents showing that Buccihad recommended “a $1 million retainer for fouryears, without strings,” to the law firm representingthe track as “a clear message of gratitude anda willingness to share its success.”In Illinois, Ontario trainer Doug McIntosh is vigorouslyfighting a 180-day suspension levied bythe Illinois Racing Board, saying “the level thehorse tested at would not be a positive in anyother jurisdiction.” McIntosh has not had a positivetest in 37 years of racing, and noted thatfour recent cocaine tests in horses in Illinoisresulted in $500 fines.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor February 4, 2005NOE GETS HIGH HTA HONORFred J. Noe, retiring executive vice president ofthe United States Trotting Association, has beennamed the 2005 recipient of Harness Tracks ofAmerica’s Distinguished Service Award.Noe, whose 12-year stewardship transformedUSTA into a modernized, computerized andhighly efficient service organization, leaves thestage as he entered. His first public appearanceon assuming his USTA duties in 1993 was a speechat the HTA meeting held that year at the ArizonaBiltmore in Phoenix, and his public farewellwill be at this year’s HTA joint meeting withthe Thoroughbred Racing Associations at theHyatt Grand Champions in Indian Wells, California,March 11.Noe’s tenure has been marked by unprecedentedgoodwill and close cooperation between USTAand HTA and resulting progress in the industry.One of the most involved of all men to serve inthe post, Noe emersed himself in harness racingafter leaving as president and CEO of Stihl Inc.,where he served for 15 years. He became an avidamateur driver and visited breeding farms andracetracks across the country and overseas, andwon international respect for his involvement anddedication to the sport, and for his accomplishmentsin bringing USTA into the 21st century asan industry leader.FBI’S FABIAN NEW TRPB HEADFranklin J. Fabian, a 20-year veteran of the FBIand most recently assistant section chief in thebureau’s counter-terrorism division, has beennamed successor to Paul Berube, who is retiringas president of the Thoroughbred Racing ProtectiveBureau and Standardbred InvestigativeServices April 1. Fabian took over investigatingand dismantling terrorist groups afterSept. 11, 2001, and he also was responsiblefor oversight of FBI undercover operations.ELSEWHERE IN RACINGIN KENTUCKY, the turbulent medication issuecontinued to boil, with the state’s HBPA resistingadoption of the Racing Medication and Consortiumrecommendations. The state’s EquineDrug Research Council meets in Lexington todayto consider standards, and Keeneland andChurchill Downs announced they will test formilkshakes at their meetings. Nick Nicholson,president of Keeneland, said that while a trackor private solution was better than doing nothing,he wished the Kentucky Horse Racing Authoritywould take action of its own as soon aspossible. The Authority had been waiting ontoday’s Drug Research Council recommendations.IN PENNSYLVANIA, the contest between CentaurInc. and Bedford Downs for the final harnessracing license in the state could wind up incourt. Bedford is challenging a hearingexaminer’s decision not to amend or extend itsapplication time to arrange financing, and eitherside can contest in Commonwealth Court the licenseaward from the Pennslvania Harness RacingCommission, expected in two to three weeks.IN FARGO, ND, a 12-person jury is deciding thefate of Susan Bala on illegal gambling charges.The case went to the jury yesterday, after theassistant U.S. attorney prosecuting the case ridiculedthe argument that Bala did not know $99million in wagers were being processed in a relatedoperation just a few blocks from her RacingServices headquarters.IN WASHINGTON, a redrafted version of theAmerican Horse Slaughter Prevention Act wasintroduced in the House of Representatives. Astrong supporter is Rep. Ed Whitfield, the KentuckyRepublican whose wife Constance is amember of the Kentucky Racing Authority.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor February 7, 2005BALA GUILTY ON ALL COUNTS In federal court in Providence, Rhode Island, theA federal jury has convicted Susan Bala and her former CFO of Wembley USA, read from handwrittennotes of a company meeting on Jan. 24,company, Racing Services, on all 12 counts of illegalgambling against each, after a trial that 2001, stating that a proposed payment to the lawbegan on Jan. 18. The company also was mentionedin a federal indictment in New York in-increase from $500,000 to $1 million a year ifpartner of the then Speaker of the House wouldvolving three alleged members of the Gambino Wembley’s Lincoln Park got more slots. Defenseorganized crime family who were running bets lawyers for former Lincoln GM Daniel Bucci andthrough four rebate shops, including Racing Services.Ms. Bala, smiling as she emerged from the the handwritten comments were not included informer Wembley CEO Nigel Potter asked whyfederal courthouse in Fargo, ND, after the fivewoman,seven-man jury found her guilty after said company executives had not decided to in-the official typed minutes of the meeting. Brentsix hours of deliberation, told reporters “The case clude the payment in the company budget, but itisn’t over.” She faces up to 20 years in prison appeared there when he received the budget in aand a $500,000 fine for each of the eight convictionson money laundering and one on money Britain.spreadsheet sent from Wembley’s offices in Greatlaundering conspiracy, and up to five years anda $250,000 fine on single counts of illegal gamblingand conspiracy to conduct it. The convic-Members of the Harness Racing Museum andHONORS, HONORStion on transmission of wagering information Hall of Fame have voted Beach Towel and CRcarries up to two years in prison and a $250,000 Kay Suzie into the Living Horse Hall of Fame.fine. No sentencing date was set, but jurors returntoday to hear evidence in forfeiture allegationsagainst Bala, RSI, and her former boyfriend the Year, the brilliant 3-year-old pacing fillyIn Canada, Luc Ouellette was named Driver ofRaymundo Diaz Jr. and his company, Global Rainbow Blue was named Horse of the Year, andContact. As part of a plea agreement, Diaz, who Joe Stutzman was named Trainer of the Year astestified against Bala, agreed to a $100,000 personalmoney judgment against him. His sentenc-the late, great trainer-driver Joe O’Brien, wereCanada’s prestigious O’Brien Awards, named foring is set for April 1.announced.ELSEWHERE, IN COURT NEWSThe attorney for jockey Jose Santos, who lost a$48 million libel case against the Miami Heraldin December when a U.S. judge ruled that a federalcourt in Louisville had no jurisdiction, sayshe probably will refile the case in south Florida.Jose sued the paper and its parent, Knight-Ridder, after it printed a story and photographsuggesting he was holding a device of some sortin his victorious ride of Funny Cide tovictory in the 2003 Kentucky Derby.Elsewhere in Canada, in a heated meeting of theOntario Harness Horse Association, the membershipapproved most of the agenda, but voteddown a proposal that would have allowed OHHAdirectors to remove fellow directors who twothirdsof the board considered disruptive or notacting in the best interests of the association.YOUBET REACHES A BILLIONYoubet.com announced a bet on Jan. 31 put itover the billion dollar mark since it tookits first bet eight years ago.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor February 8, 2005JURY THROWS BOOK AT BALAThe jury that found Susan Bala guilty on 12counts of illegal gambling in a federal court inFargo, ND, threw its final punch yesterday, whenafter a 45-minute forfeiture hearing it orderedBala to forfeit $19.7 million personally, which itsaid was the revenue remaining after $99 millionin illegal bets had been paid to winners. Her company,Racing Services, was ordered to pay theremainder of the $99 million to the federal government.The Grand Forks Herald said the jurydid not subtract about $12.8 million in rebatespaid to high rollers from Bala’s total forfeiture,and the Fargo Forum reported that with the forfeitureverdicts in hand, the government now willfurther investigate Bala and RSI to see what assetscan be recovered. The paper said that couldinclude RSI’s international subsidiaries in Mexicoand Venezuela.MASSACHUSETTS CUTS OFF NHThe four horse and dog tracks in Massachusettshave joined others in the east in cutting off simulcastingsignals to Lakes Region GreyhoundPark in northern New Hampshire, where the generaland assistant managers were named in thefederal charges in New York involving allegedmembers of the Gambino crime family.BLB BUYING LINCOLN PARKBLB, the company that had proposed to buyWembley USA for $554 million last summer andthen backed out, now is reported to be buyingWembley and its Lincoln Park in Rhode Islandfor $435 million, and says it will spend another$125 million renovating it. That would be a $560million package, and the mayor of Providence,Don Carcieri, says he wants three conditions metin the sale. He does not want a hotel or conventionfacilities built there, he wants theNarragansett Indians cut in on the deal,and that any growth in machines be dedicatedto property tax relief.RACING CAN’T BEAT BUS(C)HESFirst it’s Michael Busch in Maryland, fiercelyfighting slots at tracks for the third year in a row.Now it’s Jeb Bush in Florida, playing cute withan already passed slots bill for south Florida.That legislation -- Amendment 4, which allowsresidents of Broward and Miami-Dade countiesto vote on slots at tracks -- is being used by theMiccosukee tribe to argue that they are coveredtoo, and can operate slots at their casinos. Bushdoesn’t want to get in the middle of this, but heis. Last week he said he isn’t ready to talk, beggingoff by saying, “This is very complicatedstuff.” Of course it is, governor. That’s whatgovernance is all about. Federal law specifies thatIndian tribes can negotiate with a state to operatewhatever gambling on their land that is legalwithin a state, and that the governor of a statemust negotiate in good faith within 180 days aftera tribe requests talks to begin. TheMiccosukees made that request in November, justthree days after Amendment 4 was approvednarrowly statewide, and overwhelmingly inBroward and Miami-Dade. That gives Bush untilMay 5 to get started on negotiations. He clearlyis not ready now, but the issue is not likely tohelp what kind of limitations on track slots comeout of Tallahassee. Whatever they decide will besubject, of course, to a possible veto by Bush.Senator Steve Geller of Hallandale Beach,Florida’s foremost legislative authority on gambling,thinks Bush will push for very limited hoursand very high taxes in an attempt to forestalltracks from installing machines by making themeconomically unfeasible.YOUBET GIVES RTIP $100,000Youbet.com, which recently passed the one billionmark in bets, has contributed $100,000 tohelp endow a proposed faculty chair in racingresearch at the Race Track Industry Programof the University of Arizona.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor February 9, 2005GENERAL SESSIONS AGENDA 9:40-10:30 Issues Faced by All Drug Testing ProgramsDr. Don Catlin, Director, UCLA TestingHere are the agendas of the general sessions ofthe HTA/TRA joint annual meeting Thursday Laboratories and Olympic testing consultantand Friday, March 10 and 11. Business sessions (depending on testifying schedule in court proceedingin Lausanne, will be held on Wednesday, March 9.Switzerland)THURSDAY, MARCH 108:10-9:10 Women Run the World...and These HelpRun Racing. A Feminine View of Racing AdministrationCheryl Buley, NY Racing & Wagering BoardIngrid Fermin, California Horse Racing BoardLynda Tanaka, Ontario Racing CommissionConstance Whitfield, KY Racing Authority9:10-10 New Approaches to Horse Racing Betting:Wagering Possibilities & Out-of-Box ThinkingLee Amaitis, Executive Managing Director, CantorFitzgerald and Vice Chairman, eSpeed10-10:45 Tote & other comments & responses10:45-Noon. The Impact of Negative NewsOn Legislation: Jay Hickey, President, AmericanHorse CouncilOn News Coverage: Bill Christine, Los AngelesTimesOn Marketing: Allen Gutterman, HollywoodParkFRIDAY, MARCH 118-8:50 Returning Fans to the Racetrack, and SolvingProblems That Have Driven Them AwayRichard Shapiro, California Horse Racing BoardBill Hoge, former California legislator and fulltimehandicapper8:50-9:40 Customer Relation DatabasesAtique Shah, VP, CRM & TechnologySolutions, Churchill DownsDavid Norton, Senior VP, RelationshipMarketing, Harrah’s Entertainment10:30-11:15 Racing in a Wireless WorldWilliam Shanklin, Visiting Professor, Universityof AkronNick Eaves, Senior VP, Marketing and Gaming,Woodbine Entertainment11:15-Noon The Realities of Wireless Transmission:Where It Is, Where It Is Going, and WhatRacing Can ExpectBob Rapp, Group Product Manager, StrategicEnterprise Planning, Mobile and Embedded Devices,Microsoft CorporationNEW GROUP IN SACRAMENTOA new group will replace Alan Horowitz’s CapitolRacing this fall at the Cal Expo state fairgroundsin Sacramento, California. SacramentoHarness Association, headed by former CaliforniaRacing Commission chairman RalphScurfield, will operate the harness meeting startingSept. 1 as a non-profit corporation, ending10 years of Capitol Racing tenure at the fairgrounds.Horowitz, who unexpectedly did notsubmit a formal bid for renewal, told the SacramentoBee, “It wasn’t a matter of wanting to leaveSacramento, but frankly the conditions in therequest for proposals were onerous. The rent washigh and the terms were inflexible. In good faith,we felt we couldn’t meet those conditions.” JackCoffey, another former California racing commissionerinvolved in the new operation, speakingfor himself and his partners in the venture,said, “We want to plow any profits we may havemade as a private entrepreneur back into themeet, the facility and the community.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondPaul J. Estok, Editor February 10, 2005SLOTS ROUND 3 IN MARYLANDLegislation providing for the legalization of slotmachines in Maryland was put on a fast track yesterday,and Senate President Thomas “Mike”Miller predicted that his chamber would pass abill within a week. After that, however, the legislationheads over to the House of Delegates, wheresimilar legislation has died each of the last twoyears. Gov. Robert Ehrlich appeared at Miller’sside at a hearing of the Senate Budget and TaxationCommittee and argued that his gaming legislationwould not only assist the state’s strugglingracing industry but also generate hundreds of millionsof dollars for public school construction andother educational needs. The governor’s bill wouldallow 15,500 slot machines at six locations acrossthe state, including 3,500 each at Pimlico, Laureland Rosecroft racetracks, 1,000 in AlleganyCounty (where Ocean Downs’ owner WilliamRickman plans to build a track), and 4,000 othersto be placed at two additional sites. Legislativeanalysts in Maryland predict the machines wouldgenerate more than $1.5 billion a year by 2009,with about half that amount flowing to the state.YOUBET BUYS ‘RACING GROUP’Online account wagering company Youbet.comannounced on Tuesday that it has signed a Letterof Intent to acquire International Racing Group(“IRG”), the privately held account wagering companybased in Curacao. The purchase of IRG iscontingent upon certain events, including completionof due diligence, execution of definitive transactiondocuments and the approval of Youbet’sboard of directors. IRG was recently in the newswhen it was named as one of four “rebate shops”through which the individuals indicted in NewYork for running an illegal gambling operationplaced bets. Youbet’s release notes that IRGhandled approximately $140 million in 2003and $210 million in 2004, and that its clienteleconsists “predominantly” of “highvolumecustomers.” As a result of the newsthat it’s attempting to purchase a known off-shorerebate shop, Youbet announced that it has begunthe formation of an independent committee thatwill review Youbet’s current gaming compliancepolicies to ensure that it continues to employ “bestpractices.” To better facilitate its review, Youbethas hired Gregg Schatzman, former chief of investigationsfor the Nevada Gaming ControlBoard, “to assist Youbet and the committee incrafting and implementing any necessary protocolsto ensure that, among other items, the protocolsand safeguards of acquisition targets are inline with the rigorous standards Youbet has establishedfor its online and telephonic wagering businesses.”Schatzman will also conduct a review ofIRG’s business operations. Youbet said it expectsto add to the committee “representatives from thehorse racing, U.S. law enforcement and financialservices sectors” in the near future.MARLENE BROWN DIESArrangements have been made for a memorialservice for Marlene Brown, wife of Hanover ShoeFarms publicity manager Murray Brown. Brown,who was 59, died Feb. 8 of lung cancer. The servicewill be held at 2 p.m. on Friday, Feb. 11, atTemple Beth Israel, 2090 Hollywood Drive, York,PA 17403. In addition to her husband, Brown issurvived by her son Andrew, two daughters, JenniferHodur and Stacey Zitto, and four grandchildren.In lieu of flowers the family suggests donationsto the Standardbred Retirement Foundation,49 East Main Street, P.O. Box 763, Freehold, NJ07728, or the American Cancer Society, 924 N.Colonial Avenue, York, PA 17403.KENTUCKY SLOTS BILL DEFEATEDA bill to allow slot machines in every county in theState of Kentucky died in a House committee yesterday.The bill would have permitted 11,000 slotsacross the state, with local approval needed andlocal governments deciding where to put themachines.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor February 11, 2005HERPES CLOSES NORTHVILLE SUPPORT FOR INDIANA SLOTSThe fourth case of equine herpes at Northville Housekeepers, cooks, servers, limo drivers, bartendersand other hospitality industry membersDowns has forced cessation of live racing, but notsimulcasting, at the track, at least until Monday of the Indianapolis Convention and Visitors’ Associationwere scheduled to rally at the state capi-and possibly for the remainder of the live racingseason, scheduled to run until April 2. The MichiganDepartment of Agriculture placed the track expanded gaming in the state to help build a newtol today to show legislators their support forunder quarantine, preventing any horse from Indianapolis Colts stadium. Two bills currentlyentering or leaving the grounds, after the fourth in the Indiana legislature would authorize slotshorse tested positive at the state’s diagnostic centerat Michigan State university in Lansing. State bers, Hoosier Park and Indiana Downs.or slot-like pull tabs at HTA’s two Indiana mem-regulators met with Northville officials yesterday,and an in-depth investigation is underway with BUT HOPES IN TEXAS FADEan epidemiologist from the U.S. Department of A new slots bill has been introduced in the TexasAgriculture Veterinary Services office. In December,a barn at Northville was quarantined after Perry, who supported an earlier bill, says a bud-House of Representatives, but governor Ricktwo horses were found to have equine herpes. get turnaround makes its chances dim. AlthoughBoth were euthanized, and a third horse tested the Houston legislator who introduced the measuresaid it could generate as much as $1 billionpositive in January. The three horses werestabled in separate barns, and the second barn a year for the state, Perry is distancing himselfwas quarantined until Feb. 4 when all horses were from the proposal in view of a projected budgetmoved to a different location.surplus of some $400 million, telling the FortWorth Star-Telegram the budget turnaround hasreduced the need to raise money from slots.DEMANDS THREATEN JACKSONHarness racing at Jackson Raceway in Jackson,Michigan also is in jeopardy, but for an entirelydifferent reason. The Jackson County Fair Boardhas moved to evict the Raceway, which operatesin exchange for at least $75,000 of its annual revenuesfrom simulcasting. While the disagreementinvolves simulcasting, Rakietin said the track,which employs more than 100 people and producessubstantial tax revenue for the city and state, isnot likely to conduct live racing if the Fair Boarddoes not relent on its demands for a 30% increasein rent. The mayor of Jackson called the FairBoard’s action “shameful,” saying, “Where theythink they can get that much revenue from an old,dilapidated building is beyond me.” Rakietin saidhe will not meet the board’s terms and thatnegotiations continue with MTR. Gamingfor purchase of 90% of the track.TOP TRAINER TRIPS ON SHAKEJeff Mullins, second in wins at Santa Anita andninth nationally in purses won, is the first bigname trainer to pay for a high milkshake readingin California. Although the state legislaturehas not yet passed legislation exemptingmilkshakes from split sample testing, Santa Anitahas a track rule that will require all of Mullinshorses that race there in the next 30 days to do soout of a 24-hour detention barn. Two other trainers,unnamed, with high positives, are havingtheir samples reviewed, and according to Dr. RickArthur of the Racing Medication and TestingConsortium one of them “is not off the hook.”Mullins said he was being treated fairly, butwas unhappy that his name was the onlyone revealed.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor February 14, 2005HUGH MITCHELL LEAVES WEG VERNON GETS OK FOR $1.2 MILHugh Mitchell, senior vice president of racing at A federal bankruptcy judge has given VernonWoodbine Entertainment for the past seven Downs approval to borrow $1.2 million from harnessbreeder and real estate executive Jeff Gural,years, has resigned to become chief operatingofficer of Western Fair Racing in London, presumably enabling the track to open with liveOntario, where he previously worked for 15 years racing in April. The judge’s decision enablesin six different positions. Mitchell lives in Delaware,Ontario, nearby, and owns a farm near and two members of the board of Mid-State Race-Gural to appoint a new chief executive officerLondon. He said of his move, “I’m coming home. way, Vernon Downs’ parent. The judge refused,This is a lifestyle decision -- to be back home with however, to allow Gural to loan Mid-State another$7 million in return for gaining a control-my family and my roots. Commuting and livingpart-time in Oakville...has been fairly difficult.” ling share of the company’s stock, saying that longWestern Fair has changed since Mitchell left it term the matter will have to go through a separatebankruptcy proceeding. The Syracuse Post-to join Woodbine. It now has 750 slots, an arena,a new agricultural facility and $65 million in renovations.Mitchell said he was amazed at how the ding war for the track, since at least five otherStandard reported that decision could open a bid-property had developed and evolved. As COO, companies have made tentative offers to buy it.reporting to general manager Gary McRae, One of those, Shawn Scott, quickly issued a pressMitchell will oversee the daily operations of all release saying he was pleased that his offer hadaspects of Western Fair, including its Imax theater,facility rentals, and the fair itself. David make further financial commitments.” Scott,“forced Mr. Gural to step up to the plate andWillmot, chairman and CEO of Woodbine, said who holds a large mortgage on Vernon withMitchell had made “enormous contributions” to Vestin Mortgage of Las Vegas, said he still hopesWEG, adding, “In addition to his considerable “the debtor will ultimately conclude that my offeris better, because it provides more money forand valuable management skills, his exceptionalpersonal standards of integrity and fairness have unsecured creditors, the horsemen and the track;left an indelible mark not just on the Woodbine and more certainty of success....If he (Gural) doesorganization but on racing in general. I will miss not properly fund Vernon Downs, I am afraid wehim as a friend and key member of our managementteam.” Woodbine executive vice president ing months.”will find ourselves back to square one in the com-and COO Jim Ormiston will assume Mitchell’soperating responsibilities on an interim basis.Woodbine made other news Sunday when its Pick7 pool was hit and returned $435,235.65, despitea 44-1 shot winning the opening leg third race.At the outset of Sunday’s card, the Pick 7carryover was $259,697, and fans poured another$175,539 into the pool on the third through ninthraces. The triactor on the third race,which got things started with the $90winner, paid $6,582.30.GOLD IN THEM THAR HILLSSouthwest Casino corporation, which wants tobuild a $47.5 million harness track north of Minneapolis-St.Paul, isn’t the only one who thinksthere is potential there. Gordon Graves, a Texasgaming magnate who made his fortune manufacturingslot machines, announced a $50 millioninvestment in the company that gives himcontrol. Graves and Jim Druck, CEO of SouthwestCasino, said the deal does not change itsharness plans, and Graves said he wouldnot be involved in management.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor February 15, 2005ANGELOS CANCELS CLOSING SLOTS DIE IN ROWDY INDYRosecroft Raceway was left at the altar this morningwhen, assembling for a 10 a.m. closing by the the Public Policy and Veterans Affairs commit-In a raucous session marked by heated debate,family of Baltimore Orioles owner Peter Angelos, tee of the Indiana legislature killed slot machinethey were told the deal had been cancelled becauseof Mr. Angelos’ concern over events in the 5,000 slots to be split between HTA memberslegislation last night, rejecting a bill to authorizestate capitol in Annapolis over the legalization of Hoosier Park and Indiana Downs by a vote of 7slots. The development is doubly startling, since to 4. The chairman of the committee said he nowa sophisticated power broker like Mr. Angelos considers the issue dead for the session, “unlessclearly had to be aware of the continuing impasse somebody walks up with a revelation that theybetween House speaker Michael Busch and governorRobert Ehrlich Jr. Whether he thought he man for Indiana breeders, said the vote could bemade a huge mistake.” Mike Brown, a spokes-could resolve the impasse and discovered otherwise,or for whatever reasons, the decision not toa death blow for Indiana racing.go forward leaves Rosecroft, which opens tomorrow,faced with its agonizing search for a buyer.Thomas Chuckas Jr., Rosecroft’s HTA directorand COO, said of the Angelos family backingaway from a commitment, “The sale of the racetrackwas never contingent on what may or maynot occur in Annapolis. The Angelos family committedto an absolute closing date of Feb. 15,based upon the Maryland Racing Commission’sapproval. We are disappointed with these developmentsbut will continue to move forward withboth live racing and simulcasting to moveRosecroft into the future, starting tomorrow,February 16th, when we reopen for business.Cloverleaf Enterprises will be reviewing theiroptions as appropriate.”OHHA CLEARED, BUT FINEDThe Ontario Racing Commission has issued thereport of its inquiry and investigation into theOntario Harness Horse Association’s managementof purse accounts in Ontario. The commissionfound no evidence of corrupt or illegalactivity by the OHHA board or senior management,no specific rule violations, but a lack ofaccountability and transparency withinthe organization in the past. OHHA wasordered to pay $100,000 to the Commissionto cover cost of the inquiry.YOUBET TAKES TRIP TO CHINAYoubet.com, with an eye toward the 2 billion 300million people living in China, has announced itwill open a non-betting horse racing entertainmentWeb site in April, exclusively for access bycustomers in Mainland China. The site will featurelive feeds from U.S. tracks, including HTAmember The Meadowlands, whose racing is conductedat times that align with daylight timezones in China. Youbet said construction of itssite will include architecture that will enabletransmission of fully functional Chinese andSpanish language sites in the United States, andthose will be operational by summer. CharlesChampion, Youbet’s CEO, said, “We’re launchingthe China site to be in a position to capitalizeon opportunities that could arise if MainlandChinese government acts to legalize aspects ofonline gaming. Clearly, if gaming laws are liberalized,it will create a large potential market forhorse racing and Youbet.” A $50 million track isnow operating in Beijing and a $180 million complexis on the drawing boards for Hubei provincein east central China, where 60 million peoplelive. The new Youbet site will be accessible onlyfrom the Chinese mainland, will require freetrial memberships, and will not provide forbetting.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor February 16, 2005MORE ON ROSECROFTThe Baltimore Sun reported more details on thesurprising last minute cancellation of the Angelosfamily purchase of Rosecroft Raceway. Accordingto the story, track officials were waiting atthe settlement table yesterday morning when anattorney for the Angelos family arrived to say thefamily wanted a penalty-free extension of up to60 days, which would expire just after the end ofthis year’s legislative session. Rosecroft CEO TomChuckas Jr. and his Cloverleaf colleagues tookthis to mean that the Angelos group was puttinga condition on the sale contingent on whether aslot bill passed, a far thing from certain in thepolitically charged Maryland fight between thegovernor and speaker of the house. Accordingto the story, the Angelos family will lose a $500,000deposit, but retain a $7.2 million mortgage it hadpurchased.In another development in the matter, a localPrince Georges county group of African-Americaninvestors who lost out to the Angelos familyin bidding for the track announced it remainedinterested and was financially prepared to buyit. Thomas Taylor Jr., a Fort Washington businessmanorganizing the effort, said his group willbuy Rosecroft irrespective of the slots debate.“We’re going to buy the racetrack,” he said. “Ifslots come, that’ll be an added benefit.”NORTHVILLE: DOWN TO 3-1The Michigan Department of Agriculture andstate racing commissioner announced yesterdaythat Northville Downs must remain closed untilMarch 1, not Feb. 22 as previously indicated,because of the outbreak of equine herpes at thetrack. The state quarantine on horses enteringor leaving the track was extended, and all horsesentering any of Michigan’s seven tracksare required to be vaccinated againstequine herpes immediately.WAS GOV. PATAKI JOKING?The governor of New York, George Pataki, has asense of humor, and we can only imagine he wasusing it when he asked New York legislative leaders-- the same guys who have not met a budgetdeadline in what? -- 20 years -- to come up “witha quick resolution” of the slots delay that is costingNew York nearly $3 million a day. Patakiwants to get going with opening slots at YonkersRaceway on the Deegan Expressway and Aqueduct,and he told legislative leaders that he wouldlike the issue resolved before the state’s fiscal yearbegins April 1. The delay in getting started iscosting the state $1 billion a year. A state appealscourt last year struck down one key provisionof the VLT law. A number of bills have beenintroduced to correct the problem, but as usualthey are languishing in Albany. Both Yonkersand Aqueduct need legislation to enable them toobtain funding to begin major construction ontheir racinos. Pataki wants the opposing partiesto get together, and senate majority leader JoeBruno said after the meeting, “I think we canreconcile those differences in half an hour.”Time’s up, Joe.State controllers in New York, who have beenknown to run for higher office, frequently turnto racing when they want sure fire front page issues.Current controller Alan Hevesi is no exception.He has launched charges against trusteesof the Agriculture and Horse Breeding DevelopmentFund, which administers New York’sSires Stakes program, claiming inappropriate andineffective handling of operation of the fund.Hevesi issued a bulky audit report with a host ofshortcomings, including lack of written proceduresfor important financial matters and failingto validate receipts from tracks that supportthe program financially. Gov. Pataki has proposedeliminating the fund and the racingboard and placing their duties under oneagriculture department.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor February 17, 2005MD SENATE OK, HOUSE NOT BALA WANTS VERDICT TOSSEDRosecroft Raceway’s agonizing fight to get slot Susan Bala, found guilty on 12 counts of illegalmachines took two new turns yesterday, one good gambling and money laundering charges in federalcourt, now says the government did not proveand one bad. The Maryland Senate rejected attemptsto strip Prince George’s county, where its case and wants the judge to throw out herRosecroft is located, out of the slots bill it is expectedto pass. But the Prince George’s delegaingBala should be acquitted on all counts, butconviction. Bala’s attorney filed an appeal, saytionin the House, where speaker Michael Busch the U.S. attorney who prosecuted the case said,has been able to kill the bill in the last two sessions,are determined to make sure any slots bill Bala’s appeal said, “The only question that re-“These motions come as a matter of course.”excludes the county. Senate budget and taxationcommittee chairman Ulysses Currie, who criminal offense because of the manner of bookmainsis whether Bala should be convicted of astrongly supports slots, told the Prince George’s keeping relating to her Racing Service’s parimutuelactivities.” The jury ordered Racing Ser-county Gazette that “the leadership of PrinceGeorge’s county has said quite clearly that they vices to forfeit $99 million to the government, including$19.7 million from Bala individually.do not want slots in Prince George’s county,” andsuggested that perhaps “we don’t do Prince Each of the 9 money laundering charges carriesGeorge’s this year and revisit the issue in future a maximum charge of 20 years in prison, and theyears.” The Senate bill, expected to pass today other three counts have a maximum penalty ofor tomorrow, would allow 15,500 slots at four 12 years. No date has been set for sentencing.tracks, including Rosecroft, and three offtracklocations. The bill as proposed would providemore than $800 million a year for public schools,including $150 million for school construction.The president of the Senate, Mike Miller, said,“I’m fairly certain we’re going to get somethingthis year. If you care about kids and you careabout them going to school in quality facilities,you’re going to vote for this bill.”SCOTT GETS LICENSE, FOR NOWA state Supreme Court judge in New York hasreinstated the racing license of Vernon Downs’majority owner, Shawn Scott, and has orderedthe New York State Racing and Wagering Boardto show cause at a March 11 hearing why Scottis unfit to hold such a license. Scott was issued atemporary license after he bought 52% controlof Vernon in 2002, but it was revoked in December,2003, when the board said he had liedon his application. Vernon Downs managementrecently opted to be bought byharness breeder Jeff Gural rather than Scott.CAL CONSIDERS TOUGH STEPSWith three thoroughbred trainers already facingdetention barns for their horses as a result ofhigh milkshake readings, California’s racingboard is considering tougher steps in regulation.The board’s medication committee, during amore than three-hour meeting, considered theillicit use of shock wave therapy; increased inspectionof vehicles in the stable area; expandingthe retention of frozen blood and/or urinesamples for future testing as more sophisticatedand sensitive tests are established; and clearerpenalty guidelines, one of the prime goals of theRacing Medication and Testing Consortium.KY TRACKS BOOST INSURANCETurfway Park and Keeneland have purchasedpolicies from AIG covering jockeys for up to $1million in medical bills for accidents. ChurchillDowns is expected to follow, up from $100,000limits at a 40% increase in premiums.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor February 18, 2005JOHANSSON GROOM OF YEAR charges. As a result of the success of her horsesEmma Johansson, the first groom ever to care and the accompanying publicity, Emma has beenfor two HTA champions in the same season, has placed in the public spotlight. Not only has shebeen named Caretaker of the Year, the annual acquitted herself well in that role, but her cheerfuldemeanor and visible emotions and conducthonor awarded jointly by Harness Tracks ofAmerica and Hanover Shoe Farms. Ms. have resulted in highly visible favorable publicityfor both harness racing in general and theJohansson, a native of Columbia but raised inSweden, not only groomed the first Triple Crown role of the caretaker in particular.” Ms.of Trotting winner in 32 years, Windsong’s Johansson will receive an oil painting of herselfLegacy, but also cared for Housethatruthbuilt, and her two champions by renowned Pennsylvaniaartist James Ponter, and the blue and goldHTA’s champion 3-year-old trotting filly of 2004,both racing in the remarkable trotting stable of jacket awarded to all nominees by Hanover Shoetrainer Trond Smedshammer.Farms.The Caretaker of the Year award is symbolic ofthe key role played by all grooms, the unsungheroes of the sport, in the success of their charges.It was first suggested in 1982 by the late DelvinMiller, winner of HTA’s Messenger Award thatyear, in his acceptance “State of the Sport” speechdelivered by all Messenger winners, when henoted that harness racing did nothing to honorthese stars of the backstretch. HTA respondedthat year by naming Odell Short, caretaker ofFan Hanover, which the previous year had becomethe first and only female pacer to win theLittle Brown Jug. In nominating Ms. Johansson,Ted Gewertz, co-owner of both Windsong’sLegacy and Housethatruthbuilt, wrote, “While Iam certain that each of the nominees has displayedthe same hard work, dedication, care, attentionand affection for the horse or horses inhis or her care that Emma has exhibited, Emma’scredentials and achievements in 2004 go far beyondthose admirable qualities. Neither of hertwo champions was in the forefront for divisionalhonors at the beginning of the racing season. Thefact that both horses were able to remain soundand healthy for the entire season and achieve theirremarkable results was due in substantialpart to Emma’s efforts…..But her credentialsdo not end with the success of herBACHRAD WINS DAN PATCHMarv Bachrad, who for the better part of fourdecades has been synonymous with the best inharness racing publicity, first at BrandywineRaceway and Garden State Park and for the lastnine years at Dover Downs, has won HarnessTracks of America’s Dan Patch Award for exceptionalmedia, publicity and public relations contributionsto the sport. A former sportswriterand sportscaster known throughout the Philadelphiaand Delaware Valley area, Bachrad currentlyhosts a daily harness racing news programtelecast to up to 500 off-track and simulcastingfacilities in the United States and Canada. Amember of the Communicators’ Corner of theHall of Fame in Goshen and the PennsylvaniaSports Hall of Fame, he also is a past winner ofthe harness writer’s coveted Proximity Award,the Publicists’ Golden Pen Award, the UnitedStates Trotting Association’s John Hervey awardfor writing, and the Harness Horse YouthFoundation’s Service to Youth Award. He is apast president of both the U.S. Harness Writersand North American Harness Publicists’ Associations.Bachrad will receive his Dan Patchaward at HTA’s annual Nova Awards Dinner atHyatt Grand Champions in Indian Wells,California, Friday night, March 11.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor February 21, 2005NOW FOR THE HARD PART In regard to his Tioga Park operation, which heThe Maryland Senate, as expected, passed Gov. bought last year, Gural says he will wait for aRobert Ehrlich Jr.’s slots bill last Friday, 26-21, change in the VLT law, pending before the Newsending it to the House with 15,500 slots to be York legislature, before he moves forward onallocated at seven locations around the state. completing renovation of the plant. “I’m veryAlthough the language did not specify the locations,it did say four of the locations had to be at nia, Daily and Sunday Review. “I have spent aoptimistic,” Gural told the Towanda Pennsylva-Maryland racetracks, so Pimlico, Laurel and million and a half dollars and I’d be very disappointedif it didn’t work out.”Rosecroft are home as far as the Senate is concerned.But not the House. Although delegateClarence Davis, who chairs the House subcommitteedealing with the bill, said, “I think we cancome up with something. It’s going to be tightwire,but we’ll craft a bill that can go forward,”there is opposition from legislators in PrinceGeorge’s county, where HTA member Rosecroftis located. Anthony J. O’Donnell, the House minoritywhip from southern Maryland, said, “Ithink we’re going to keep an open mind. We’rewilling to work on something that is mutuallyagreeable to this body, knowing if we do pass abill it will be a matter of intense negotiations withthe Senate.” One legislator said of the Housedeliberations, “It’s like the saying, ‘Everybodywants to go to heaven but nobody wants to die.’”VERNON GETS NEW CEOWhen Vernon Downs accepted Jeff Gural’s offerof a $1.2 million loan to keep it solvent, one ofthe conditions was that Gural, the New York Cityreal estate magnate and harness horse ownerbreeder,got to appoint the track’s chief executiveofficer. He has, naming Edward Tracy,former president and CEO of Trump Hotel CasinoResorts in 1990 and 1991, when Trump filedbankruptcy on its Taj Mahal. Tracy, commentingon his appointment, pointed that out, saying,“So I know a little bit about bankruptcies.”Tracy also was president of the consulting companythat helped the Oneida Indian Nationlaunch its Turning Stone casino nearVernon 12 years ago.POPULAR COAST TO COASTA national bench warrant, covering all 50 states,has been issued for the arrest of trainer RichardChansky and his associate, Kevin Goodell, by ajudge in New Jersey. Chansky and Goodell wereindicted by a grand jury in Superior Court inNew Jersey on Dec. 20, 2004, on charges includingpossession of a controlled dangerous substance,multiple counts of failure to file tax returns,and receiving stolen property. They werearrested in April of 2001 by New Jersey StatePolice and subsequently lost their New Jersey licenses.The national bench warrant was issuedafter they failed to appear for a scheduled arraignmentand bail hearing in Ocean county, NJ,Superior Court Feb. 15. Anyone with knowledgeof the whereabouts of either man can call theirlocal, state, or federal (FBI) law enforcementauthorities or the New Jersey police racetrackunit at 732-462-3788.DON’T FORGET NOVA DINNERIf you’re going to attend the annual joint meetingof HTA and TRA at the Hyatt Grand Championsin Indian Wells, CA, March 8-11, plan tomake the Friday night March 11 Nova Awardsdinner as well. HTA honors the owners of its seasonalchampions, as selected by our racing secretaries,and nine of them will be on hand in California.Help let them know of HTA’s appreciationof their ownership. It is informal, andspecial entertainment is on tap as well.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor February 22, 2005KY BITES THE BULLET TODAYThe Kentucky Horse Racing Authority meets thisafternoon, and hopefully its members will act onthe recommendation of the state Equine DrugResearch Council and endorse the national policiesof the Racing Medication and Testing Consortium,and ask for state legislation enablingpenalties for milkshake positives with readingshigher than 37 millimoles of carbon dioxide perliter of blood plasma. If the matter passes andthe legislature concurs, Kentucky could join thegrowing number of states adopting the RMTCrules, moving the sport closer to the goal of uniformmedication rules and penalties.In another Kentucky development, the KentuckyHouse passed, 96-4, a bill that diverts taxes onstud fees paid in Kentucky from the state’s budgetto breeding funds for horses. The bill has thesupport of governor Ernie Fletcher, and is expectedto pass in the Senate as well. The amountinvolved is not insignificant: $14 million wasgenerated by the sales tax on stud fees last year.The monies will be divided 80% to thoroughbredbreeders, 13% to harness horse breeders, and 7%to other breeds.OHHA TACKLES MEMBER ISSUEThe Ontario Harness Horse Association meetstonight to discuss its recently passed rule that itsmembership be limited to Ontario residents. Thechange triggered enough negative response --including one from John Campbell and apparentlyfrom Ottawa members -- that the well informedHarness Edge predicts tonight’s meetingwill be “a contentious affair.” According to thatpublication, Ottawa horsemen signed a contractwith Rideau Carleton Raceway to stage a wintermeeting, a move not endorsed by OHHA. Theissue led to formation of the NationalCapital Region Harness Horse Association,a further fractionalization of racing.PLAIN GIRL WITH RICH DADDYThat was the characterization by TomWinebrener, president of the Cloverleaf StandardbredOwners’ Association, which ownsRosecroft Raceway, after losing its third promisingsuitor in two years. Winebrener was quotedby David Snyder in the Washington Post as saying,“We’ve had two broken engagements andwe’ve been left at the altar once. We’re startingto feel like the plain girl with the rich daddy, andthe rich daddy is slots. If Mr. Slots is home, wehave a lot of suitors. When Mr. Slots leaves, we’releft in the dust.” If all sides in the Maryland politicalmess cared as much about racing in Marylandas Cloverleaf and Rosecroft do, the state’sracing industry, once a pride and joy, would bein far better shape than it is. Being a plain girl intoday’s world -- or a political football -- is no fun.BIG M CONTEST TURNING BIGThe Meadowlands’ National Harness HandicappingChampionship, scheduled for April 2, isturning out to be a big promotion. Five tracksalready have qualified entrants, and 13 more arescheduled to hold qualifying events this monthand next. The winner will receive a $50,000 guaranteedprize, a Continental airline voucher fortwo anywhere in the United States, a guest shoton Fox Sports New York’s Racing from the Meadowlands,and his or her handicapping picks andpicture on the Meadowlands Web site every Saturdayfor the remainder of the year. Freehold,Northfield Park, Mohegan Sun, The Meadowsand WinTicket.com already have qualified finalists.Qualifying contests are scheduled forBalmoral Park, Buffalo Raceway, Cal-Expo,Capital OTB, Flamboro Downs, The HarnessEdge, Hazel Park, Maywood Park, the Meadowlandsitself, Northville Downs, Saratoga Gamingand Racing, Woodbine Entertainment,Youbet.com and Xpressbet.com.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor February 23, 2005“THRESHOLD DAY” FOR KY Scott’s lawyer urged applicants other than JeffThat was how veteran racing lawyer Ned Bonnie, Gural to quickly file bids for Vernon Downs, andas close to Kentucky racing as anyone in the country,reacted to yesterday’s Kentucky Racing Auruptcyand awarding himself 91% of the track’sGural proposed bringing the track out of bankthoritypassage of new medication rules that parent, Mid-State. Scott, who holds the mortgageon the track with Vestin Mortgage of Lasbring the commonwealth into conformity withproposals of the Racing Medication and Testing Vegas, says he will fight that plan. Gural’s revisedplan dropped the caveat that he would buyConsortium. Bonnie said he felt “an enormoussense of relief” at Authority endorsement of the the track only if the legislature increased its sharerules, and added, “This is really a threshold event of revenues from slots. His new proposal substitutedthe 91% control provision instead of thefor Kentucky.” Under the new rules, if they survivelegislative oversight, nothing but Salix can legislative move. Gural still is sticking to his requestfor a higher share in connection with hisbe administered on race day, up to four hoursbefore posttime; only one of three antiinflammatories-- Butazolidin, ketoprofen or Currently racing gets a 25% share of VLT rev-project of rebuilding and reopening Tioga Park.flunixin -- as “adjuncts” to Salix but only up to enues, but state senator William Larkin, chairmanof the Senate Racing Committee, has intro-24 hours before the race; no steroids within 24hours of a race; and milkshake testing for high duced a bill calling for a 32% share of the firstcarbon dioxide readings. As expected, the KentuckyHBPA opposed the changes and packed million, and 26% thereafter. Tracks would get$50 million in revenues, 29% for the next $100the meeting with members, and some veterinariansspoke against it, but one of the state’s most ing and 5% of those revenues above $50 million.another 8% of the first $50 million for market-prominent trainers, John Ward, told them,“You’re worried that it’s going to hurt you. Itisn’t going to hurt. It’s going to move you to thetop.”SCOTT LOSES ANOTHER ROUNDShawn Scott lost another round in his quest forcontrol of Vernon Downs yesterday, when a bankruptcyjudge refused to grant his request to tossout Mid-State Raceway’s board of directors aftera rancorous 90-minute hearing. One lawyercalled the proceedings “a sideshow” and anothercalled his opponents “locusts” before JudgeStephen Gerling said the directors had “acted outof a sense of urgency and they have acted from asense of mistrust, rightly or wrongly, of Mr. Scott.I don’t think anything they have done rises tothe level of, quote, ‘acting in bad faith oracting with fraudulent intent.’”THE PROF MAKES A POINTAllen Eberhart is a professor of finance and adean’s fellow at the McDonough School of Businessat Georgetown University. In an article todayin the Baltimore Sun on the slots controversyin Maryland, he wrote, in part, “It’s open seasonagain on horse racing....the critics portray racinosas a last-gasp effort to prop up a dying sport.But in many ways, horse racing has never beenhealthier. More than 100,000 people regularlyattend the Preakness, more than 2 1/2 times thenumber who saw Seabiscuit beat War Admiralat Pimlico in 1938” (although reading the bookyou would think half of America was there).Eberhart goes on to ask, “So why does horse racingneed slots?” and answers by saying, “No businesscan survive in the long run if it’s prohibitedfrom responding to its competitors.” HTAhas the full Eberhart text.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor February 24, 2005IN INDY, COLTS, NOT HORSES In a separate development, Magna announced itA key House committee in Indiana drove another is slashing costs, including executive pay, afternail in the coffin of slots at tracks yesterday, passing17-4 a bill that provides for higher taxes on of $731.5 million last year. The losses were downreporting it lost $95.6 million on annual revenuecasinos and pro players salaries, rather than slots $10 million from 2003, but Jim McAlpine,at Hoosier Park and Indiana Downs, as the way Magna’s CEO, said the company no longer canto finance a new stadium for the Indianapolis strain its resources on initiatives that don’t producesignificant immediate revenue. Magna cutColts. The bill now goes to the full House forconsideration next week. Casinos tried to detour its losses in the fourth quarter of 2004 from $103.1the tax, telling legislators that casino corporations million a year earlier to $40.9 million, and all executives,including McAlpine, took pay cuts inmade decisions about which properties to investin by looking at states where tax rates are lower the stabilization move. McAlpine called Magnaand stable, but the legislators didn’t buy it. The Entertainment a “classic example of a young companywith ambitious goals for future growth.”Louisville Courier-Journal reported, “There waslittle sympathy, though, for the plight of the casinos,which last year had $2.3 billion in combinedgambling revenue and paid about $742million in admissions and wagering taxes.” Thecasinos had opposed putting slots at Indiana’stracks, claiming it would have caused dramaticcuts in casino business.SHAPE UP OR SHIP OUTThat was the message sent from Magna Entertainment,which ended greyhound racing in Oregonrecently, to that state concerning horse racingthere. Magna says that if legislators don’tprovide some relief, horse racing in the state alsowill become history. Magna says competitionfrom the Oregon lottery, tribal casinos and onlinebetting is forcing the possibility of it closing itsPortland Meadows thoroughbred and quarterhorse operation. Magna has asked Oregon -- andhas gotten a bill introduced -- that would allow itto capture revenue from simulcasting operationseven when horse races aren’t being run at thetrack. Portland Meadows operates from Octoberthru April, and presently state law requiresthat tracks must hold live racing when they areimporting simulcast signals from elsewhere.Magna’s decision to closeMultnomah Greyhound Park ended 71years of dog racing in Oregon.ANOTHER DROWNS ON SHAKESA fourth Santa Anita trainer has wound up witha milkshake positive, and will have to race hishorses out of a detention barn. AdamKitchingman has joined Jeff Mullins, VladimirCerin and Julio Canani on the milkshake list atSanta Anita. Kitchingman, Mullins and Cananiranked among the top 15 trainers in the countryduring the year from Feb. 6, 2004 to the samedate this year, according to Today’s Racing Digest,and each were winning at rates above 21%.Since racing out of a detention barn on Feb. 9,Mullins has won only one race in 18 starts.Kitchingman, responding to his positive, said,“It’s a competitive business out here.Everybody’s out there to win. We’re going tocorrect it (the milkshake issue) and it won’t happenagain.”BIG PLANS AT PENN NATIONALPenn National Gaming, gearing up for slots, isplanning a $240 million expansion at its homecourse in Grantville, Pennsylvania, near Harrisburg,including a racino, a clubhouse, valet parking,restaurants, a five-story parking garage and35 spaces for customers arriving in limousines.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor February 25, 2005CODEY WANTS BIG M SLOTS With the conviction, Leahy became persona nonGov. Richard J. Codey of New Jersey says he will grata at all Illinois tracks, and no entries will bepropose next week allowing video slot machines taken on horses owned by him.at the Meadowlands. Codey will present his budgetnext Tuesday, and some state officials sayVLTs at the track could generate between $100million and $150 million for the state in the firstfiscal year, and probably more than $200 millionafter that. Atlantic City casinos are certain tooppose the move, but Assemblywoman LindaStender, the Democratic chairwoman of the AssemblyTourism and Gaming Committee, said,“Since we’re facing a $4 billion deficit, any chanceto provide new revenue will be seriously considered.”LEAHY GUILTY OF MAIL FRAUDJohn J. Leahy, a prominent harness horse ownerand formerly a principal patron of the Joe Andersonstable, was found guilty of mail fraud yesterdayby a federal jury in Chicago. The chargesstemmed from an alleged scam involving $100million in contracts with the city of Chicago heldby the powerful Duff family, whose connections,according to the Chicago Sun-Times, “stretchfrom City Hall to organized crime.” Leahy, presidentof Leahy and Associates, an insurance brokeragein suburban Westchester, was found guiltyof mail fraud and wire fraud involving defraudinginsurance companies of as much as $3 millionby inaccurately describing the type of workbeing performed by day laborers supplied byJames Duff. The insurance brokers said that thework was largely clerical, greatly reducing thepremiums Duff had to pay. Mayor RichardDaley, who severed his ties to the Duffs after thefederal investigation began, defended them yesterday,according to the Sun-Times, which quotedhim as saying, “I know them, sure...they’re hardworking people. It’s an unfortunate incident.”When asked about the Duff’s allegedmob ties, Daley said, “Gee, I don’tknow about that.”FEDEX CRACKDOWN ON DRUGSHow many ads for online drugs appear on yourcomputer each day? Ten? Twenty? More? Accordingto the Associated Press, the problem ofdrug dealers and abusers doing online orderingfrom unlicensed Internet pharmacies has becomeso pervasive in some areas that legislatures arebeginning to take notice. State legislators in Kentuckyare pushing a bill to regulate such onlinesales of prescriptions drugs, which the attorneygeneral has called a cancer. The practice hasbecome so serious in eastern Kentucky thatFedEx has stopped deliveries from online pharmaciesthere, saying, “We don’t tolerate the useof our system for illegal purposes.” One sheriffin eastern Kentucky said things have gotten sobad that FedEx and UPS drivers are in dangerof being hijacked, and he called the situation “amonumental problem.”EQUINE HERPES GETS SERIOUSConfirmed cases of equine herpes, which haveclosed Northville Downs, are creating problemselsewhere. Northfield Park now requires proofof immunization with Pneumabort K vaccine,and a horse was destroyed at The Meadows aftera positive there, with the barn in which it wasstabled now quarantined for two weeks. Hardesthit of all was Truro Raceway in Nova Scotia,where nine cases have been discovered at or nearthe track.BEDFORD SELLS 30% SHAREBedford Downs, hoping to get the final harnesslicense in Pennsylvania but scuffling for financing,has agreed to sell a 30% equity interest toMerit Management Group, which openedthe Empress casino in Joliet, Illinois.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor February 28, 2005‘UNCERTAIN’ OPTIMISTIC VIEWYesterday’s Baltimore Sun ran a headline readingPROVINCIAL CUP DATE MOVEDWindsor Raceway has announced its 40th Pro-“Slots’ future still uncertain.” vincial Cup, the track’s showpiece pacing fea-Bloodhorse.com ran one reading, “DespiteProgress, Uncertainty Still Exists Over MarylandSlots.” Both are optimistic views. Although theHouse finally passed a slots bill last Friday, 71-66 -- the very bare minimum votes needed to passthe measure -- it is so far from what the Senateproposed, and so antithetical to governor RobertEhrlich’s views, that it seems more than anuncertainty that reconciliation will be possible.ture, has been rescheduled from its May 29 dateto an unannounced date in the fall. Track presidentJohn Millson, discussing the move, said, “Ittakes time for an operation the size of Windsorto return to normal after a disruption of operationssuch as we experienced in January. We wantto make sure that we are back to full steam andcelebrate the 40th anniversary milestone with allthe glamour and success that it deserves.”Racing attorney Alan Foreman, a keen observerof the Maryland and national scene, was on targetas usual when he said, “Any number of issuescould mean its downfall. There’s no wayfor anybody to feel one way or the other rightnow. There’s a long way to go yet.” The longestway to go still is Michael Busch, who says he willnot tolerate a single change to the House bill,which would mean Busch-induced doom onceThe postponement was met with displeasure byCanada’s most successful trainer, Bob McIntosh,who has patrons in his stable who want to builda new track in Windsor. McIntosh complainedthat he had nominated seven 3-year-old pacersto the race for $500 each and had another paymentdue March 15 without knowing when theevent was going to be raced.again. If the House were to prevail with its 9,500slots in four locations, only one racetrack -- Laurel-- would be eligible, with 30% going to theoperator and 3% to a fund for the first five yearsto be divided by all tracks in the state for capitalimprovements. Under the Senate bill, therewould be 15,500 slots with Laurel, Pimlico,Rosecroft and a still unbuilt Rickman familytrack in western Maryland sharing them.NORTHVILLE BACK TOMORROWHTA member Northville Downs, closed for threeweeks by an outbreak of equine herpes, is scheduledto reopen tomorrow with the lifting of thequarantine on ship-ins. New procedures will bein effect for horsemen, who will hear them firsthandat a meeting scheduled for tomorrow bythe office of the racing commissioner. A veterinarianwill be on hand to answer questionson the procedures and the disease,which has threatned other midwest tracks.SLOTS FINALISTS NAMED IN PAThere were 10 in the race when it started, butlast week the Pennsylvania Revenue Department,which is deciding who will provide the state’s61,000 slot machines, sent 8 home and narrowedthe race to 2. The survivors are, not surprisingly,Scientific Games Corporation, the favorite off 27years of partial operation of the Pennsylvanialottery system, and international giant GTECHcorporation.STILL TOUGH HURDLES IN FLEven if voters in Miami and Dade counties approveslots at tracks a week from tomorrow, substantialhurdles lie ahead. The legislature thenwould have to pass a law, which would cover taxrates, numbers of machines, and operating hours.The tracks are hoping for unrestricted hoursand a tax rate of somewhere around 31 or32%.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor March 1, 2005ONE MISTAKE TOO MANY PUBLIC SPEAKS, IS HEARDIt didn’t take long for the national warrant for This corner has been arguing, for years, thatRichard Chansky’s arrest to produce results. He tracks’ best defense against shrinking news coverageis public anger and response. The view haswas found and arrested by Union county sheriffsand local police at his father’s home in Jackson, been vindicated in Cleveland, where dozens of e-Delaware, an address he had put on a license mails and phone calls from irate Northfield Parkapplication some years ago. His accomplice in patrons at the cutting of entries and reduction ofthe drug cases in New Jersey four years ago, results in the Cleveland Plain Dealer have broughtKevin Goodell, is still at large.a return of entries, and a reconsideration of howto present results in a mutually satisfactory format.GEORGE MILLER DIES AT 89George Miller, who replaced the great Roy Shudtas track announcer at Saratoga Raceway in 1958and called races there until his retirement in 1981,has died in Springfield, MO, at the age of 89.Miller also called at Vernon Downs from 1955until taking the Saratoga job, and during thattenure got to call Adios Harry’s 1:55 worldrecord, which led to Vernon being named theMiracle Mile.DR. SPEARS GETS TRIBUTEDr. Paul Spears, the breeder of the Triple Crownof Trotting winner Windsong’s Legacy, has receiveda half-page feature in Mercersburg, themagazine of his prep school alma materMercersburg Academy in Pennsylvania. Dr.Spears later attended Brown University and thenthe University of Pennsylvania, where he receivedhis degree in gastroenterology, which he practiceduntil retiring to breed harness horses severalyears ago. When asked if he had a mid-lifecrisis in giving up a lucrative medical career forhorse breeding, Dr. Spears said, with a chuckle,that he did not consider it such. “To me,” hesaid, “a mid-life crisis is running off to Vermontwith a 20-year-old girl to sell costume jewelry atcraft fairs. This is not anything resembling thatkind of personal fiasco.” Dr. Spears, the sonof Hanover Shoe Farms’ Paul Spears andhis wife, started his career in the sportmowing lawns at Hanover when he was 12.ON THE SLOTS FRONTIn New Jersey, Gov. Richard J. Codey faces fierceopposition today, as expected, from Atlantic Citycasinos and their legislative supporters after proposingVLTs for the Meadowlands. The statetreasurer, John McCormac, told The Press ofAtlantic City, “I want to stress we’re in continuednegotiations with the industry. We believewe can have a plan that is attractive to them interms of revenue.”In Florida, Gov. Jeb Bush said he will make televisedappeals to voters of Dade and Miami countiesto reject slot machines at tracks in those counties.If the referendums pass, as expected, he sayshe will work with the legislature to spell out thenumber of machines allowed in each venue, thetax rate, and other regulations. It is not goodnews for Florida’s tracks.In Maryland, more Busch, but with a C. Slotsfor Rosecroft seem in their death throes. At leastthat is the reading of key Democrats in the Senate,who realize the unlikeness of their bill survivinga House conference, and now are suggesting“coming back in 2007 after the election andstarting this effort all over again.” That was theplan suggested by Sen. Ulysses Currier, the powerfulDemocratic chairman of the Senate Budgetand Taxation Committee, fromRosecroft’s Prince George’s district.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor March 2, 2005WINDSOR CAN’T CHANGE CUP THERE’S JOY IN CALIFORNIAThe Ontario Racing Commission and Windsor “We’re absolutely thrilled. This truly is a landmark.”That was the response of Kim Hankins,Raceway are at odds again. The ORC yesterdayruled that Windsor, having taken nominations the old Illinois hand who now is executive directorof the California Harness Horsemen’s Asso-for its showpiece race for May 29, will have torace it then, and cannot arbitrarily move it to ciation, after the State Fair Board announced itthe fall. The commission cited its rule 16.14, will request that harness racing dates replace thewhich states in part, “The date and place where traditional thoroughbred program this summer.early and late-closing events will be raced must Hankins’ elation may be a trifle premature, forbe announced before nominations are taken. The the California Horse Racing Board must approvedate and place where stakes and futurities will the move, which the Sacramento Bee calls “a dramaticattempt to help new operator Sacramentobe raced must be announced as soon as determinedbut, in any event, such announcement Harness Association get rolling.” The SHA takesmust be made no later than March 30th of the over from former operator Alan Horowitz in operatingharness racing at Cal-Expo in Sacra-year in which the event is to be raced.” JohnMillson told the Windsor Star that is not mento. Ben Kenney, president of the CaliforniaWindsor’s read on the regulation, but that the Harness Horsemen’s Association, has been negotiatingthe arrangement with Cal-Expo offi-track was prepared to return all nominating feesif the date change for the race is approved. The cials and says he is overjoyed at Cal-Expo’s commitmentto harness racing. He thinks the moverace carries an estimated purse of $450,000, and$500 nominations closed Feb. 15, with a sustainingpayment of $1,500 due on March 15 and a million fairgoers who will be exposed to harnesscould provide a potential new audience of onedeclaration fee of $2,500 due at time of entry. racing.The U.S. equivalents are $400, $1,200 and $2,000,and supplementary entries are eligible on paymentof $17,500 Canadian or $14,000 U.S.Windsor, meanwhile, made offers to the OntarioHarness Horse Association, which is suing thetrack for $10 million, an issue not popular withall OHHA members, who questioned $450,000in legal fees spent by OHHA in recent years.Windsor offered to pay OHHA dues held on depositin the Windsor Purse Trust Account, in returnfor OHHA returning all Windsor RacewayPurse Trust Account funds held on deposit byOHHA that it was required to return last yearwhen its license as purse account manager wassuspended by the Ontario racing commission.The ORC at the time directed Windsor towithhold OHHA dues pending a decision,now made, and Windsor is offering to reconcileand pay the dues owed.There are, however, complications that need tobe worked out. Horowitz and his group are seekinga harness meeting at Fairplex in Pomona.Horowitz’s time is up at Cal-Expo July 31, andCal-Expo’s fair runs Aug. 12 thru Sept. 5. Byracing its own meeting Cal-Expo can host livethoroughbred racing throughout its session, withthe live harness raced on a twi-night card startingat 4:30 p.m. Local horsemen have seen pursescut 30% in the last year, and Cal-Expo racingdirector David Elliott said the board had decidedto step in “and try to get this industry back onits feet.” The racing board dates committee willmeet on the issue next Monday morning, withfinal approval up before the full board March24. If Cal-Expo gets its harness request, it canlease its thoroughbred dates to another fairassociation, without any thoroughbreddates lost.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor March 3, 2005ANOTHER HILL IN CATSKILLS AROUND THE CIRCUIT......Maybe even a mountain. Richard Pombo, the More hearings today in the Vernon Downs situation,this time to argue whether a judge shouldRepublican chairman of the U.S. House ResourcesCommittee, which controls all Indianrelatedlegislation, is reportedly ready to intro-Raceway, parent of the track. Shawn Scott andappoint an independent trustee to run Mid-Stateduce a bill next week that could be a lethal blow Vestin Mortgage want a federal bankruptcyto Indian casinos planned in the Catskills. The judge to appoint a trustee who would have broadbill is a reflection of growing concern in Congress powers to run the company. Edward Tracy, aover the proliferation of Indian gaming in the former Trump casino executive who has beennation, and the chief of the St. Regis Mohawks chosen by Jeff Gural as interim chief executivesays if the Pombo bill is passed “it would make it officer in return for Gural’s investment to keepextremely difficult” for any tribe to open a casinoin the Catskills.the track running, is among those who will testify.GTECH WINS PENNSYLVANIAThe Pennsylvania Department of Revenue announcedyesterday that it has selected GTECHto run its huge computer system for lotteries, andplanned to sign a five-year contract that will notexceed $6.3 million. Sixty companies had submittedbids for the contract, and that numberwound up narrowed down to two, GTECH andScientific Games.A FEW ALTERATIONSOn the agenda sent to all directors -- and of interestonly to the finance and executive committees-- the dinner meeting scheduled for Tuesdayevening at 5:30 has been cancelled. Instead, thefinance committee (Ormiston, McErlean,McKeever, Sobkowiak, Register) will meet forbreakfast at 7 a.m. Wednesday morning in GardeniaB, and then again as originally scheduledwith the executive committee at 11 a.m. Wednesdaymorning in salons F, G and H.In the Salary Survey sent to all directors, HTA’sFebruary report, page 3 was omitted by error inthe printed version. It does appear in the e-mail version, and the missing page is beingmailed to all original recipients forinclusion in your report.Horses, horses, more horses. Woodbine’s PepsiNorth America Cup has drawn a record 110 3-year-old pacing colts for its June renewal, andThe Red Mile’s Moni Maker, for 3-year-old trottingfillies, has drawn 68 for its inaugural racing.Wayne Gertmenian’s Matrix Capital Associatesreceived $448,000 in 2003 for managing the Jockeys’Guild, but those fees, which should have beenincluded in that year’s report to the Departmentof Labor, were not and are now nine months pastthe reporting date, according to bloodhorse.com.Robert Kinsey Sr. and Jr., charged with inhumanetreatment of a horse in a highly publicizedcase last June, pleaded guilty this week and weresentenced to 90-day suspended jail terms, fined,ordered to pay court costs, and placed on sixmonths probation.That happened in Delaware. What did not happenin Delaware, and was erroneously reportedhere as a Delaware event Monday, was the arrestof trainer Richard Chansky. He was arrestedat his father’s home in Jackson, NJ, in Unioncounty, also in New Jersey. Our apologies toDelaware, and our congratulations to authoritiesin New Jersey.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor March 4, 2005THE SHAWN AND JEFF SHOW As of press time, a call to Jeff Gural for commentWelcome to the newest act in the drama of Vernon had not been returned, but the Syracuse Post-Downs. The playbill, in the form of a letter from Standard reported that Gural said he had not seenShawn Scott’s attorney in Dallas, Deborah the proposal when interviewed but was not enthusiasticabout what he was told it contained.Deitsch-Perez, to Michael Rhodes-Devey, representingVernon Downs in Albany, is a “DearMike” suggestion that starts, “After seeing anotherday of unresolved conflict and more than adozen lawyers billing on the Mid-State bankruptcycase, Mr. Scott has a proposal for Mr.Gural that should satisfy all of the warring constituenciesin the case. In addition, we believethat it provides the best potential for there to bea 2005 racing season at Vernon Downs.”The letter goes on to propose that Scott and Guraljoin forces, instead of battling one another, andbuy the assets of Mid-State for $36 million in cashand become 50/50 partners. Vestin Mortgagewould be paid $27 million in cash for the paper itholds, all professionals would be paid in full, and$3 million would be left to be divided among theexisting shareholders.Scott says he is confident he will be licensedshortly in New York, where the Supreme Courtupheld the validity of his temporary license andthe New York Racing and Wagering Board hasto rule on it again. Ms. Deitsch-Perez’s letter says,“Shawn would be happy to meet with Jeff in NewYork to work out how they could best proceed torestart racing and obtain a VLT license as quicklyas possible in a new debt-free company.”A bankruptcy court, meanwhile, approvedGural’s choice as chief executive officer of Mid-State Raceway, hotel and gaming executive EdwardTracy, formerly president and CEO ofTrump Hotel Casino Resorts. Gural got to appointTracy and two Mid-State directors aftersigning a deal to loan the track $8.5 millionto remain solvent. Tracy will be paid$20,000 a month by Gural.ELSEWHEREIn bad news for racing, Gov. Richard Codey ofNew Jersey, faced with opposition in his bid toput VLTs at the Meadowlands, has let it be knownthat, while “committed to the VLT proposal...aswith any initiative, he is open to hearing aboutalternatives as long as the plan is viable and serious.”One of the alternatives he may consider isputting keno games in bars across New Jersey iflegislators reject his VLT proposal. Some AtlanticCity casino spokesmen say they consider itless of a threat to their operations than VLTs atthe Meadowlands. New Jersey racing had bettersolidify quickly on this one.In Florida, the House Speaker has joined withgovernor Jeb Bush in opposing the idea of slotsfor Broward and Dade counties, and regardlessof a favorable popular vote there he and Bushcan make sure slots legislation is onerous.In Kentucky, Churchill Downs has filed a federalsuit against the Jockeys’ Guild, seeking injunctionsthat would prevent a recurrence of lastNovember’s boycotts at Churchill Downs and itsHoosier Park operation. Churchill charges thatthe Jockeys’ Guild orchestrated both walkouts.Churchill also has discontinued its voluntary contributionsto the Guild.NO NEWSLETTER NEXT WEEKHTA’s entire staff, and most of its member trackexecutives, will be in California next week for ourannual joint meeting with TRA. The ExecutiveNewsletter will resume on Monday, March 14.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondPaul J. Estok, Editor March 14, 2005MARTIN TO LEAD RCIC’BURY HAS RACINO PROPOSALFrank Zanzuccki, chairman of the Association of Officials at Canterbury Park in Shakopee, Minnesota,have unveiled a legislative proposal to sup-Racing Commissioners International (RCI) hasannounced that Edward J. Martin has been named port a $120 million racino development at its 380-president and chief executive officer of the association.Of the appointment, Zanzuccki said, “We terbury management released an economic analy-acre site. At a state capitol news conference, Can-are extremely fortunate and pleased to select an sis that determined a racino would generate atindividual of Ed Martin’s stature to serve as our least $200 million in new tax revenue for the stateorganization’s next chief executive. He is an experiencedregulator who has a grasp of the im-on the conclusions of the economic consultingduring the first two years of full operation. Basedportant issues and possesses the right blend of experience,knowledge and the ability to lead our would: Generate $180 million in new state gam-group, the proposed 3,000 machines at the racinoorganization.” Martin is expected to begin his tenureat RCI around the first of April. He is cur-fee; generate at least $200 million in future bieningtax revenues, including a $100 million up-frontrently in the process of winding up his duties with nia when the racino is fully operational; createthe New York State Racing and Wagering Board, 1,300 full and part-time jobs from racino operations;increase live racing purses by $18 million;where he has served as executive director since1997. Prior to joining the racing board in New and produce over $9 million per biennium.York, Martin managed the New York Departmentof Economic Development and served as a memberof the New York Casino Gambling Commis-The U.S. department of justice has told NorthPOKER BILL THREATENEDsion. From 1991 through 1996, Martin Served as Dakota attorney general Wayne Stenehjem it believesa proposal to license Internet poker violatesCEO of Armadillo Group, Inc., a strategic communicationsgroup he founded. Throughout the federal law. The letter, signed by Laura Parsky, a1980s, Martin held positions with the Federal deputy assistant attorney general in the justiceEnergy Regulatory Commission, was chief spokesmanand advisor to U.S. Senator Alfonse D’Amato cally address North Dakota’s proposed law, butdepartment’s criminal division, does not specifi-and was director of communications and senior repeats the agency’s belief that federal law “prohibitsgambling over the Internet, including ca-advisor to the majority leaders and members ofthe New York State Senate.sino-style gambling.”In other news from the regulator’s side of the business,Thomas B. Gaines, a Lexington, Kentucky,horseman and son of the late John Gaines, hasbeen named to the Kentucky Horse Racing Authorityby Gov. Ernie Fletcher. Gaines is a partnerin Gaines-Gentry Thoroughbreds and is presidentof KBC International, an equine supply businessbased in Lexington. Other Authority memberswhose terms expire this year are LarryTelle, Tom Handy, and former HTA presidentand owner of Castleton Farm JohnCashman.SEEKING ASST. PROGRAM EDITORAn HTA member racetrack is seeking a candidateto become the track’s permanent Assistant ProgramEditor. The position is seasonal, beginningin mid-March and continuing until the end of therace meet in mid-November. Experience is preferred,but the track would be willing to train acandidate who shows promise and aptitude. Formore information contact the HTA offices byphone at 520-529-2525 or by e-mail atinfo@harnesstracks.com.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor March 15, 2005SEE AND HEAR THE MEETINGIf you weren’t fortunate enough to make theHTA/TRA meeting in Indian Wells, California,and enjoy the charms -- and especially theweather -- of the Palm Springs area, don’t despair.We can’t deliver the weather, but we canbring you the sights and sounds and interestingpanels of the Thursday and Friday general sessions,thanks to Todd Roberts and his RobertsCommunications Network of Las Vegas. Todd,who also annually and generously sponsors ouropening night reception, has again made availablevideo streaming of the entire Thursday andFriday proceedings. Thursday’s sessions are upon our HTA Web site, www.harnesstracks.comand Friday’s will be up in a day or two, and willremain there. There was a great amount of interestingthings discussed on those two days, sowatch and listen if you missed it first time around.MONMOUTH NIGHTS DEAD?The mayor of Oceanport, New Jersey, MariaGatta, has told the Asbury Park Press that shebelieves night racing at Monmouth Park -- proposedby acting governor Richard Codey -- isdead for 2005. Codey’s spokesman, Joseph L.Fiordaliso, was scheduled to have appeared at a“town meeting” last week, but was ill and cancelled.The next town meeting is scheduled forJune 1, and Monmouth will be racing by then,its meeting starting May 14. Mayor Gatto toldthe Press, “Do I believe it is off the table for 2005?Yes, I do. We have constant communication inwhich we’re hearing unofficially that night racingwill not happen in 2005. Now we’d like theofficial answer. We’d like to get something inwriting.” In other New Jersey developments, astate senate committee approved a bill that wouldban smoking in offices, restaurants, bars andcasinos, and a study commissioned by theCodey administration said 2,000 slots atthe Meadowlands would have only aminimal effect on Atlantic City casinos.COURT INVITES NEW SUITORSA U.S. bankruptcy court in Utica, NY, has terminatedMid-State Raceway’s exclusive right tosubmit a reorganization plan for Vernon Downs,and said it will accept competing bids after April4. The ruling opens the door to anyone, but particularlyhelps Shawn Scott, who is trying to regaincontrol of the track. Scott’s lawyer said“Everybody in the case, other than the debtorand Jeff Gural, opposed the extension of exclusivitybecause they all said in order to the get thebest deal for Mid-State, you need to have a competingbidder. The court gets to decide if the planis feasible and if it’s fair and equitable. Everyonehas to put up or shut up. You put in a planand people pick which one they’re going to votefor. All of the different groups get to vote onwhich one they want.” According to the lawyer,Deborah Deitsch-Perez, Sc-ott and Gural are settingup a meeting to discuss Scott’s offer to partner50-50 with Gural, each putting up $18 millionto settle all claims against Mid-State. “I thinkwhat the decision does,” she said, “is it encouragesMr. Gural to work with us, because if hedoesn’t, well then we can put in our own offer. Ithink if we can’t work something out with Mr.Gural, it’s very likely that we would.” JusticeCheney, speaking for Mid-State, said of the courtdecision, “If you were a debtor and we owed youmoney, why wouldn’t you say, well, let’s wait untilafter April 4 and see what Shawn Scott offers orwhat somebody else offers? So I don’t know ifthis helps us, but it does give us some time.”In another Scott-related episode, the group thatbacked a failed initiative to legalize slots in thenation’s capital -- reportedly funded by Scott andassociates -- told a hearing of the WashingtonD.C. election board that it hired and relied on aprofessional firm that collected phony signatures,and therefore “can’t be held responsible forcirculators they did not hire, pay or control.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor March 16, 2005XANADU OR XANADONT? LICENSE AUCTION IN OHIO?Xanadu at the Meadowlands, a $1.3 billion Details are hazy, but it appears that state legislatorsin Ohio are considering auctioning off sevenproject, could begin construction by the end ofthis week. Or it could not, winding up instead in “traditional gambling” licenses for $50 millioncourt. Mills Corporation and Mack-Cali, the each to “development corporations.” Preciselycompanies developing the huge entertainment what that means is uncertain, but one legislatorand business complex, say they are awaiting only defined “traditional gambling” as slot machineswetlands-related permits from the U.S. Army and table games. He did not mention racetracks,Corps of Engineers, expected today, to start work. but said under the likely proposal voters wouldThe permits are the last in a long list that have decide whether or not they wanted “traditionaltaken the developers a year to obtain, but two gambling” in their communities. “The frameworkrests on the people who vote,” Rep. Chrispossible court actions could upset the scheduledstart of construction. Hartz Mountain Industries, Redfern said. “It won’t be going into places it’swhich has battled Mills and Mack-Cali for two not wanted.”years, still is threatening to exercise “a lot of legalremedies out there,” and the New York Giantsare unhappy too and may go to court if constructionbegins before a dispute over parking,traffic and other concerns are resolved. CarlGoldberg, the chairman of the New Jersey Sportsand Exposition Authority, says that constructionand the Giants negotiations on a new $750 millionstadium are unrelated, and he says the Giants“do not have the right to approve or notapprove the start of construction.”HOLLYWOOD OR HOLLYWONT?The rumors are flying again, that ChurchillDowns is planning to sell Hollywood Park to developersand end racing at the Inglewood track.Matt Hegarty, writing in Daily Racing Form, saidthere is “wide speculation among industry officials”that the track’s days may be numbered,and that Churchill could move its dates either toSanta Anita or Los Alamitos. Hegarty quotedDrew Couto, president of the ThoroughbredOwners of California, as saying “I think everyoneunderstands that Churchill is not going tobe at Hollywood much longer.” Churchill boughtthe track and its 240 acres in 1999 for $140million, and it is estimated to be worthbetween $250 million and $300 milliontoday.VOTERS GET CALL IN PA, TOOLegislative proposals in Pennsylvania also wouldgive voters a voice, not in slots but in slots revenue.The plan is to let voters decide if theirschool districts should participate in Act 72, astate plan to reduce local property taxes. Schooldistricts, under the proposal, could decide to useslot machine revenues to reduce property taxes.The school boards have until May 30 to decidewhether to opt in to the plan. A survey of half ofPennsylvania’s 501 school districts showed a thirdin favor of participating, a third opposed, and athird undecided. The legislator who introducedthe proposed law, state senator Lisa Boscola, saysshe thinks once accurate information is publicized,most school boards will opt in.MAGNA STILL A GO IN DETROITThe development director of Romulus, Michigan,says it is his impression after speaking with MagnaEntertainment real estate officials that Magna,despite its problems, still wants to breakground on its $350 million Michigan Downsproject in the spring of 2006. The track wouldbe a multi-purpose racing and entertainmentcomplex located near Detroit’s MetropolitanAirport.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondPaul J. Estok, Editor March 17, 2005ROCK’S CALLAHAN WINS AWARDRockingham Park Vice President and GeneralManager Ed Callahan was honored by the GreaterSalem, New Hampshire, community today withthe Chief John P. Ganley Community ServiceAward. At the 16th annual St. Patrick’s Day MemorialAward Luncheon, which was attended byNew Hampshire Gov. John Lynch, Callahan wasrecognized for “his involvement and leadership inthe community of Salem while providing inspirationto others through his dedication, integrity andcourage.”In other news from the Granite State, once again,lawmakers are considering a proposal to allow slotmachines in New Hampshire. Calling it an economicrecovery bill, Manchester Sen. LouD’Allesandro has backed legislation to add videoslot machines at Rockingham Park, at three dogtracks, and at two other locations. According toD’Allesandro, if legislators had approved a similarplan several years ago, the machines wouldhave generated $1.2 billion for the state by now.D’Allesandro said his bill also would add an estimated2,100 jobs, raise money for municipalities,and help sustain the struggling pari-mutuel industry.“The positives outweigh the negatives,”D’Allesandro told the State Senate’s Ways andMeans Committee on Wednesday. Committeemembers apparently agreed, voting the bill outby a 3-1 margin; the legislation now heads to thefull senate.DELAY IN DALEY PROCEEDINGTrainer Noel Daley, arrested on March 2 by theNew Jersey State Police and charged with illegalpossession of prescription drugs, has had his dayin court changed. Daley was scheduled to appearin a Chesterfield Township (NJ) court today, butthe proceeding was postponed until April 6. Thecharges against Daley came as a result ofa search of his stable at Magical AcresFarm in Chesterfield.ANOTHER WYNN L.V. PROJECTWith only six weeks to go before unveiling the $2.7billion Wynn Las Vegas resort and casino, SteveWynn is planning another megaresort, this onewith an estimated cost of $1.4 billion, on the formerDesert Inn property, according to a filing madethis week with the Securities and Exchange Commission.The project, referred to as “Encore,” willinclude 2,000 luxury suites, restaurants, conventionand meeting space, retail space, a spa salon,and entertainment venues. In an interview withthe Wall Street Journal, Steve Wynn said he isdesigning Encore to surpass Bellagio, built byWynn in 1998, as the most luxurious hotel on theStrip. Each Encore suite will be 1,030 square feet,with 230-square foot bathrooms. Construction isexpected to begin on Encore this summer, withcompletion planned for sometime in 2008. WynnLas Vegas, the Strip’s first new resort in five years,will open with 2,716 rooms and suites, 111,000square feet of casino space, 18 restaurants, about223,000 square feet of meeting space, and an onsiteFerrari and Maserati dealership.AR GOV. TO LET BILL BECOME LAWA bill that allows a local vote on electronic gamblingin two Arkansas counties, Garland andCrittenden, will become law without Gov. MikeHuckabee’s signature. The governor said Wednesday,however, that he will encourage residents inthose counties to vote down initiatives to expandgambling at Oaklawn Park in Hot Springs andSouthland Greyhound Park in West Memphis.The bill, which becomes law five days after passage,allows either the city or county where thefacility is located to hold the election. The measurewould not allow games of pure chance, suchas slot machines, but only games in which someskill and study is involved. Bill supporters estimatethe measure could create an additional $1billion a year in betting. One thing the bill didnot do was create a regulatory body to overseethe games.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor March 18, 2005ON THE BEAT, COAST TO COAST That support could help the matter past NewIt appears likely that thoroughbred racing on the York’s glacial legislative ice jam, but in anotherwest coast could be moving from Hollywood Park New York legislative development, the New Yorkto Los Alamitos. Although Churchill Downs Racing Association is strongly opposing a proposalto increase takeout on straight and mul-president Tom Meeker played it coy in discussingthe possibility that Churchill may sell the huge tiple-pool bets. That move, included in a budgetInglewood track to developers, he did say, “as proposal, would raise takeout on win, place andwith all our assets, we continually evaluate each show bets from 14% to 15.5%, and on two-horseasset in light of two overriding objectives: increasingshareholder value and improving the Charles Hayward, who has supported NYRA’sexotics from 17.5% to 19%. NYRA presidentsport of racing,” and added that an evaluation recent policy of advocating lower takeouts, wason Hollywood Park would be completed quoted by Thoroughbred Times.com as saying of“in the space of a few months.” Major thoroughbredowner Mike Pegram and Los Alamitos Race we’ve recommended or even discussed with any-the proposal, “These are not takeout increasesCourse owner Dr. Edward C. Allred, however, one. We do not believe that is a prudent way todid not seem to be waiting, announcing a $40 do business, and these are not any adjustmentsmillion partnership plan which would convert that we would support.”Los Alamitos into a mile thoroughbred track with20 weeks of runners and year-round quarterhorse racing on an inner track. Allred would remainowner of the track and all operations wouldbe under his control, with Pegram -- who thoughthe had bought the Fair Grounds last year butlost it to Churchill Downs -- heading the thoroughbredmeeting there.Across the country, in New York, the Senatepassed two bills sponsored by Senator Bill Larkin,chairman of the Racing and Wagering Committee,hoping to get slots at Yonkers and Aqueductrolling. One would raise the tracks’ share fromslots from 29% to 32% on the first $50 million ofnet winnings, 29% from the next $100 million,and 26% for all over that. The horsemen’s sharewould be roughly 8% from the track’s vendorfees, subject to negotiation. A second bill wouldraise the track’s share to 34%, with a 9%horsemen’s subsidy and 4% advertising subsidycoming from the state’s general fund, thus seekingto avoid the constitutionality issue currentlya problem in the state. State majorityleader Joseph Bruno is urgingquick passage.HARSH WORDS IN FLORIDAThe battle over how much to tax tracks inBroward county on potential slots revenue is onfull blast. At a meeting of the Senate RegulatedIndustries Committee, state senator Steve Gellerof Hallandale Beach, a strong proponent of slotsto help tracks, bluntly told Broward county schoolboard member Beverly Gallagher, who proposeda 50% tax on gross revenues, that she didn’t knowwhat she was talking about. “It’s clear to me,”Geller said, “that you have no idea what you’respeaking about when you’re doing this. I don’tknow why the school board is interjecting itselfinto something they clearly know so little about.”Geller later called Gallagher’s remarks to thecommittee “stupid” and warned the school boardwas “not making friends by disagreeing with itslocal legislative delegation.”DEEP IN THE HEART OF TEXASTrack slots may be dead in Maryland and Indiana,but they still are breathing in Texas, wherelegislation has been reintroduced seeking tolegalize VLTs at all licensed Texas tracks.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondPaul J. Estok, Editor March 21, 2005TRIBE HALTS CASINO PLANThe Lytton Band of Pomo Indians said in a letterto Gov. Arnold Schwarzenegger dated last Thursdaythat they have shelved plans to build an expandedcasino with 2,500 slot machines in the SanFrancisco Bay area after state lawmakers, whoseapproval for the facility was needed, said it wouldbe too big for the community. An agreementsigned last year between the tribe andSchwarzenegger had envisioned a Las Vegas-stylecasino covering four acres that would have providedlocal and state governments with 25 percentof profits, an estimated $155 million a year. Instead,the tribe will renovate and install hundredsof new games -- but not slot machines -- at its existing70,000-square foot cardroom called CasinoSan Pablo, about 20 miles north of San Francisco.Absent slots, California has no regulatory authorityover the facility and the tribe avoids sharingrevenue.LA. WILL USE PRE-RACE TESTMatt Hegarty in Daily Racing Form reports thatLouisiana will become the latest state to begin preracetesting for milkshakes on March 24. Louisianahad been testing for alkalizing agents usingblood drawn post-race. The director of the LouisianaState University Medication SurveillanceLaboratory, Steve Barker, told the Form that thechange to pre-race testing, considered a more accurateway of determining whether a milkshakehas been administered, was being instituted dueto concerns that horsemen had changed the waymilkshakes were being administered to horses, infeed supplements rather than through nasal-gastrictube.REPORT IS GURAL, SCOTT DEALINGThe Oneida Dispatch is reporting that businessmanand horse owner Jeff Gural and Shawn Scotthave come together in an attempt to bringVernon Downs out of bankruptcy. “Wehad some discussions and I’m hopeful we’llbe able to reach an agreement,” Gural told thepaper. “We’re fairly close.” Gural called theagreement a “four-way settlement” among him,Scott, Raceway Ventures and Vestin Mortgage,which holds $26 million of Mid-State’s debt. Underthe new plan, Scott would be bought out andGural would become the majority shareholder.Negotiations continue regarding how much Scottwill receive and what percentage of the sharesGural will hold. Gural hopes to have the new planfinalized by the end of next week, and he remainsconfident the track will re-open in 2005.NY GAMING IN COURT TODAYToday New York’s highest court will weighwhether the law approving gaming expansion inthe state is constitutional. At issue is the 2001 lawthat approved three Indian casinos in western NewYork, three more in the Catskills, video slot machinesat racetracks, and participation in a multistatelottery. An appellate court has already ruledthe expansion legally sound; as part of its holding,the court said slot machines were permissiblefor Indian casinos in part because of the IndianGaming Regulatory Act, and that the multi-statelottery passed muster because New York maintainsenough control over the game to cover the requirementthat lotteries be “operated by the state.” Inaddition, the court said that video lottery terminalsat racetracks were legal but that the formulafor distributing the proceeds was not. The appealscourt said that the provision in the law that partof the revenue from the machines go to trackpurses and horse breeding violated a New Yorkconstitutional mandate that the proceeds of anylottery game go to education. The New York Senatehas rewritten the formula in an attempt to complywith the constitution and the Assembly has indicatedthat it will draft legislation to “fix” thelegal problem. In the meantime, Gov. GeorgePataki’s attorneys, as well as those from gaminginterests, will argue the law’s legality beforethe high court today.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor March 22, 2005GURAL BUYING OUT SCOTT HELPFUL DECISION IN KYVernon Downs’ control by non-racing outsiders In a reversal of long-standing policy by his office,the attorney general of Kentucky, Gregmay be over, as New York realtor and harnesshorse owner and breeder Jeff Gural says he has Stumbo, has ruled that the state constitution doesreached a deal to buy the 52% share in the track not have to be amended to allow expanded gambling.While the decision is merely advisory inowned by Las Vegas and Virgin Island entrepreneurShawn Scott. Gural says he has an oral nature, it removes one stumbling block to legalizationof slots for tracks in the commonwealth,agreement with Scott and Vestin Mortgage,which holds a $27 million mortgage on Vernon but formidable opposition still faces such a move.and is the track’s biggest creditor. Gural’s dealwould end Scott’s involvement with Vernon, NEW SECURITY FOR RUNNERSmarred by Scott’s inability to obtain a New York In two significant thoroughbred security developments,the New York Racing Association haslicense to operate the track and its racino. Guralplans to invest $1.2 million to get Vernon up and announced it plans to use a pre-race detentionrunning, and has agreed to provide another $7.3 barn when it opens its 60-day spring-summermillion to get the racino open. Mid-State is estimatinggross revenue of $47 million a year from has announced tough new milkshaking penalties.meeting at Belmont Park May 4, and Keenelandthe racino. Gural is hopeful that the New YorkAssembly will approve a bill passed last week bythe state Senate which would increase revenuesfrom the VLTs.QUEBEC SELLING ITS TRACKSHTA member Hippodrome de Montreal andthree other harness tracks in Quebec will be soldto private operators under a move by the Quebecgovernment. The decision reverses the decisionof the province’s former finance minister,Yves Seguin. In addition to Hippodrome, formerlyBlue Bonnets, the tracks to be sold are inQuebec City, Trois-Rivieres and Gatineau. TheMontreal Gazette said the likely buyer will be eitherOntario-based Magna Entertainment orRemstar, a Quebec company, both of which haveshown interest in acquiring the tracks and haveexpressed a willingness to invest some $100 millionCanadian dollars.In another Canadian development, Great CanadianGaming corporation has completedits acquisition of Fraser Downs andSandown Park in British Columbia.NYRA began pre-race testing for carbon dioxidereadings in mid-February, and will begin freezingurine samples for use as Cornell Universitydevelops new tests for currently undetectablesubstances. The new testing program is beingsponsored jointly by NYRA and the New YorkThoroughbred Horsemen’s Association.Under new rules at Keeneland, readings of 37millimoles per liter of blood or higher will drawpenalties that start with the first horse in atrainer’s care having to be raced out of 24 hoursof detention and observation, to be paid for bythe trainer at $150 a day. A second stable offensewill bar the trainer from entering a horse at themeet for 10 days from notification of the positive.A third offense will result in banishmentfrom Keeneland for one year.Penalties against owners, through banning onentries of horses testing positive, are being proposedat a meeting today of the Kentucky HorseRacing Authority.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor March 23, 2005KENTUCKY TAKES THE LEAD During the term of a suspension, access to theIt’s a headline you may never have expected to grounds of any Kentucky racetrack would beread, but the proposals made yesterday by the denied both trainer and horse, and there wouldKentucky Equine Drug Research Council, if be no “split sample” requirement for milkshakeadopted, would put the commonwealth at the testing.forefront of meaningful penalties for racing infractions,particularly the use of illegal substances.Largely the work of premier harnessbreeder Alan Leavitt and co-authored by Councilchairwoman Connie Whitfield, the penaltieswould include loss of purses and suspensions fortheir horses testing positive, putting the ownersin the orbit of responsibility. Here are highlightsof the proposals:For first offenses on milkshakes with a readingof 37 millimoles of carbon dioxide per liter ofblood or higher, with no allowances for Salix, lossof the purse, $1,000 fine and 75-day suspensionfor the trainer, and a 30-day suspension of thehorse.A second offense would bring loss of purse, $2,000fine and a 150-day suspension for the trainer, anda 45-day suspension of the horse.A third offense would result in loss of purse, a$3,000 fine and 300-day suspension for thetrainer, and a 60-day suspension of the horse.And a fourth offense would bring loss of purse,lifetime suspension for the trainer, and a 180-daysuspension of the horse.In addition, every winner would have to be testedpost-race for milkshakes, along with one otherhorse to be selected by the judges; any claim ona horse with a high milkshake reading would beautomatically voided; during the entire time anypenalty -- not just milkshakes -- was being appealed,all horses raced by the offending trainerwould be required to race out of a 24-hour detention barn, with the trainerbearing the cost.In a major innovation, possession or use of bloodgas machines, also known as black boxes, wouldbe limited to authorized state regulatory representatives,and the possession or use of shockwave therapy machines would be restricted tolicensed veterinarians, and no horse could beshock waved within six days of a race. The veterinarianusing shock wave therapy would haveto file a report listing the horse’s name, tattoonumber, and trainer, and file that report with thejudges within eight hours of administering thetreatment. Currently, in New Jersey, Florida andelsewhere, trainers are reported using these machineson their farms and/or training centers. Inthe case of black boxes, they obviously could permitexperimenting with milkshakes right up tothe maximum limit, and shock wave therapy isnot something at this stage of development fornon-veterinarians to use.The Kentucky proposals, based on work beingdone by the national Racing Medication and TestingConsortium, would divide drug offenses intothree classes, with penalties highest for Class Adrugs that have no therapeutic value in a horse.The penalties for first violations of administrationof Class A drugs would carry loss of purse, a$15,000 fine and 1,095-day suspension of thetrainer, and a 90-day suspension of the horse, andrange upwards to loss of purse, a $50,000 fineand life suspension for the trainer, and a 360-day suspension of the horse for third offenses.Third offenses for private use of a blood gas machinewould result in a $20,000 fine and 360-daysuspension, and for unauthorized shock waveuse in a $10,000 fine and 120-day suspension.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor March 24, 2005BIG WIN FOR PIONTKOWSKI VICTORY FOR SCURFIELD, TOOA Massachusetts Superior Court judge yesterdaydismissed all claims of Louis Giuliano against Ralph Scurfield and his associates, includingFormer California Horse Racing Board chairmanGary Piontkowski and associates in HTA memberPlainridge Racecourse, and ruled that former racing commissioner Jack Coffey, andLloyd Arnold, USTA director Ivan Axelrod,Piontkowski and the other defendants in the case former track operator Christo Bardis, won awere entitled to almost $2 million, plus interest major victory yesterday when the Race Datesand attorneys’ fees. According to a release from Committee of the California board voted unanimouslyto recommend that all harness dates inDavid H. Rich, counsel for Ourway Realty, oneof the defendants, the Giuliano liability stemmed the state be raced this year at the Cal-Expo infrom his fraudulent conduct related to constructionof the harness track in Plainville, MA, in Racing meeting at Cal-Expo, Alan Horowitz, hadSacramento. The former operator of the Capitol1998-99. The decision, delivered yesterday by been seeking harness dates at Fairplex in Pomonajudge Margot Botsford in Suffolk Superior in southern California, but the race dates committeevoted against any overlap of dates becauseCourt, found that Giuliano’s misappropriationof funds intended for subcontractors and his conversionof site materials was fraudulent, and that ings simultaneously. Scurfield’s group plans toof an inadequate horse supply to race two meet-he had used construction funds for personal purposesincluding horses, personal mortgage ex-Association, and will operate a harness meetingoperate as the Sacramento Harness Benevolentpenses and furniture for his home. Judge for the first time during the California State Fair.Botsford found the deception to be knowing and The thoroughbred meeting normally held at theintentional, and awarded double damages and fair will be moved to another fair venue if the fullattorneys’ fees to be assessed at a future hearing. racing board approves the date committee’s recommendationstoday.Giuliano had persistently claimed he was entitledto an ownership interest in Plainville RacingCompany, the parent of Plainridge. The court BETTER HAVE GOOD LAWYERSspecifically rejected that claim, finding that The 17 defendants in the doping and illegal sportsGiuliano had fraudulently induced Piontkowski betting ring in New York had better have someto sign a stock pledge agreement by defrauding very good lawyers, because the federal governmentis loaded for bear. The feds yesterday filedPiontkowski and his partners into believing thathe, Giuliano, owned the racetrack, when in fact 5,000 intercepted phone calls, surveillance photosand bank, credit card and betting records inhe did not. The court also rejected Giuliano’sclaim that he had been illegally blocked from exercisingan option to purchase the track in 2000. saying that “the physical evidence is so stagger-the case, and the New York Post reported sourcesIn rejecting all of Giuliano’s claims, the court ing it’s a good bet many defendants will try tofound his testimony in a number of instances “not make plea deals rather than go to trial.”to be credible.” Piontkowski said he felt “completelyvindicated” by the court’s decision, andOUR THANKS TO ROBERTSThanks to Todd Roberts and his Roberts CommunicationsNetwork, all sessions of the HTA/was grateful for it because of Giuliano’s “inflammatoryand outrageous accusationsTRA convention now can be seen on videoagainst me and my colleagues.”streaming on the HTA Web site,www.harnesstracks.com.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor March 25, 2005MONMOUTH COULD LOSE CUP In other California news, the board ended its 50-Unless the New Jersey Racing Commission and year relationship with Truesdail Laboratories,New Jersey Thoroughbred Horsemen’s BenevolentAssociation settle their long-simmering grievingon July 1 to the Ken Maddy Equine Testingwhich has done its testing, and will switch all testancesin the next two weeks, there is a good Laboratory at the University of California atchance that Monmouth Park may lose its chance Davis, which has been doing about a third of theto host the Breeders’ Cup in 2007. Cup presidentD. G. Van Clief says the commitment to North America accredited by the Internationalstate’s testing. One of only two laboratories inMonmouth is firm at the moment, but unless Organization for Standardization, the Maddy isthere is a resolution to the dispute by April 9 the named for the late state senator Ken Maddy, whocommitment will expire. “Barring a resolution was instrumental in supporting virtually all racinglegislation in the state during his tenure.by that date,” Van Clief said, “we will officiallycommence the search for an alternate site on thatdate.” Van Clief said the Cup “could not take Finally, after almost five years, the racing boardsomething that already has inherent risks and dismissed the 2000 morphine positive of the Bobexacerbate that with a long-standing dispute that Baffert-trained Nautical Look, supporting theis not yet resolved.” The Asbury Park Press, commentingon the dispute between commission and who ruled that the facts as presented andrecommendation of an administrative law judgehorsemen, said the two sides “are mad at each Baffert’s “success as a trainer support the conclusionhe had nothing to gain and a great dealother over stuff that happened so long ago nobodyeven remembers who threw the first rock.” to lose by the use of a banned substance on thisThe paper headlined its story, “Fighting over horse.”peanuts with steak on the table.”AH YES, THE JOCKEYS’ GUILDIt is back on the hot seat in California, where theracing board voted 5-0 to require a forensic auditof the Jockeys’ Guild before it resumes issuingsome $1 million a year to the Guild’s jockeyhealth coverage from uncashed winning tickets.Commissioner Richard Shapiro, whose motionthe board adopted, said, “There have been allegationsthat many jockeys have claims that havenot been paid and bills that were sent to collectioninstead. Until we get satisfaction that themoney is being spent correctly, we will withholdthe funds.” Disabled jockey Ron Warren toldthe board he had documented 17 cases wherejocks’ benefit bills that supposedly were coveredby the Guild had been turned over to collectionagencies, and he asked the boardto redirect the funds to a new group herecently helped incorporate.OHIO SLOTS: STUDY IT MORESome sixty important people interested in bringingslots to Ohio met in Columbus yesterday, andafter three hours decided to conduct academicresearch on the economic impact of gambling,along with a statewide poll to see how voters feelabout the issue. Track lobbyist Neil Clark saidafter the meeting it marked the first time thatcompeting groups were willing to work together.A NEW BUSCH IN FLORIDANo, not Jeb. This one, a spitting legislative imageof Michael Busch of Maryland, is the chairmanof the House Business Regulation Committee,Frank Attkisson, and he wants to makeBroward county pay all $438 million that waspromised by Broward and Dade toward educationif slots were approved. They were, inBroward, and Attkisson wants to make thetracks there pay dearly.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor March 28, 2005HARNESS FIGURES IN NY FRAY APRIL 1? YOU’RE FOOLING USTwo major harness racing figures -- owners Jeff Leaders of both the New York Assembly and Senatehave announced they will have a budget forGural and Adam Victor -- are playing importantroles in a current struggle between the New York 2005 passed by April 1. Unless you are a NewJets, Cablevision and TransGas Energy Systems Yorker, the significance of this may be lost onfor the future of Manhattan’s West Side railroad you, but meeting that deadline is something thatyards. Cablevision offered $760 million for the has not been accomplished in 21 years in theproperty, hoping to build apartment towers and great Empire state. Things do not move witha park; the Jets offered $720 million to build a the speed of light, or sound, or glacial ice, in thestadium along with commercial and residential state that prides itself as being a national leadertowers; and TransGas Energy has offered $1.05 in all things except possibly legislation.billion for the site. The Metropolitan TransportationAuthority, which will decide the issue, is Perhaps more important, it seems the legislatorsexpected to announce the winner on Thursday. have lost their awe or amorous admiration forVictor said he has been called the dark horse, their third term governor, and are at odds withbut he says he believes the dark horse has becomethe stalking horse and seems confident of They are even talking defiantly, both Senatehim on several issues as the deadline approaches.victory, although he says he has no idea what his president Joe Bruno and House speaker Sheldoncompany would do with the property if it wins Silver standing together and saying they will announcea budget next week on time. Governorthe bidding war. He called it “grossly premature”to predict what the west side river site might George Pataki took exception to that, saying, “Ilook like for the next 100 years, and said it makes have the ability, at the end of the process, to exercisemy executive powers, and I intend to dono sense for anyone to try to make that decisionin the next three weeks. He said, “We’ll let the that.” One contentious issue is Pataki’s plan topeople decide what they want,” if TransGas winds settle land claims with five Indian tribes by allowingthem to open casinos in the Catskills. Aup with the site. Victor reportedly is more interestedin the site of an active fuel depot on the bill in draft form in the Assembly would bar tribesEast River in Brooklyn than in the west side from out of state opening casinos in New Yorkrailyards. He wants to build a natural gas power state, and three of the five tribes dealing withplant there that could be connected to New York’s Pataki are located out of state, although all fivegas and steam grid. Jeff Gural entered the pictureas president of Newmark and Company,have original roots in New York.hired by the MTA as a consultant real estate firm Of paramount interest to racing is the status ofto evaluate bids on the property. Newmark is legislation that would make changes in existingurging the MTA to reject the Jets and Cablevision law that has been found unconstitutional. Theoffers as being far too low. Newmark believes changes would enable Yonkers Raceway and$300 million has been “left on the table” by the Aqueduct to begin construction of their racinos,two sports offers, and that some 6 million square which have been stalled by the present impasse.feet of prime real estate should be worth close to Bruno says he thinks the problem has been fixed,$200 a square foot, making the total propertyacreage worth more than $1 billion.tors are doing it, and says he has some res-but Pataki says he has questions how the legislaervationson the VLT solution.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor March 29, 2005MORE OF THE SAMEIf the original American colonies had been as preoccupiedwith local and regional arguments asAmerican racing is today, we probably still wouldbe part of the British empire. Racing has littleinterest in cosmic views, but a great deal of interestin local fights.New Jersey and the 2007 Breeders’ Cup is a classicexample. The no-holds barred bruising battlebetween the New Jersey Racing Commission andthe Thoroughbred Horsemen’s Association, apower struggle for control, continues to threatenthe Breeders’ Cup, currently scheduled forMonmouth Park two years from now. Chancesare dimming, as a Cup deadline of April 9 approachesand both Dennis Drazin, counsel for thehorsemen, and Frank Zanzuccki, executive directorof the racing commission, are acting likeGov. Robert Ehrlich Jr. and House SpeakerMichael Busch in Maryland: give no ground.Some interesting oratory has resulted. Alan Foreman,chief executive officer of the MarylandheadquarteredThoroughbred Horsemen’s Association,said he has remained “on the periphery”given the circumstances. What constitutes “aperiphery” apparently is highly subjective, forForeman ventured pretty close to the fire whenquoted by Bloodhorse.com as saying, “There isno horsemen’s organization in the country beingharassed and micromanaged by a racing commissionlike this one is.” He also was quoted assaying, “Breeders’ Cup shouldn’t go into a venuewhere these type of shenanigans are going on.”That seems a fairly strong endorsementof`Drazin, whose group has been accused of fiscalmismanagement. Drazin says, “the commissionposition is wrong, but the commission is unwillingto budge.” Zanzuccki says the matter hasbeen scheduled for court and will be litigatedin October. The Breeders’ Cupdoes not intend to wait that long.WHAT CONSTITUTES ENOUGH?West Virginia’s four racetracks already operate10,802 slot machines, but they have told the statelegislature they will be in dire peril once neighboringPennsylvania gets rolling, and the stateSenate, at least, has agreed the tracks are in mortaldanger. The Senate approved a bill yesterdaythat would allow the tracks to operate table gamesas well, as long as voters in the counties in whichthey operate agree. In a quaint touch, the Senateamended the bill by attaching two provisions:regional jails would get additional revenue fromthe table games, and each track would have topay $125,000 toward local “economic development.”The state would take 23.5% of table gamerevenue, with smaller shares going to purses andracing pensions and other state funds. The Senateapproved the table games measure on a 19-14 vote, and sent it to the House of Delegates,where its sponsor called chances of passage “excellent.”One Republican senator put forth anamendment that a statewide referendum be required,saying, “I don’t think anyone can crediblyargue that casino gambling won’t have astatewide impact,” but his colleagues killed thatidea 22-11. The 5% share for jails, taken frommoney that otherwise would go to the generalfund, squeaked through 17-16, jails obviously beinga more sensitive subject to senators.NEXT MOVE UP TO PATAKIIt appears that both houses of the New York legislatureare in accord with an increase from 29%to 32% of the first $50 million in “vendor’s fees”for VLTs, with a boost to 29% for the next $100million and 26% for everything over that, butthere has been no word from Albany that GeorgePataki agrees, or will. Construction of racinos atboth Yonkers Raceway and Aqueduct hinge onpassage of the measure. Whether passagewould fulfill Jeff Gural’s requirements tobuy Vernon Downs is unknown.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor March 30, 2005BLESSINGS OF A RACING GOV No one knows more about those subjects thanThe state of New Jersey, or at least the racing Liebman, and hopefully he and his students, andinterests in it, can be thankful they have a man Woodbine Entertainment and Churchill Downs,who understands and appreciates racing as governor.Richard Codey, urged by the New Jersey venture and have harness racing interests of theirboth of which are helping to fund Tim Smith’sSports and Exposition Authority, stepped into own, will make sure that whatever emerges doesthe dispute between his racing commission and not lose sight of harness racing as a still importantand vital segment of racing in New York.thoroughbred horsemen and ended it with aphone call, apparently securing the Breeders’ Cup Without their input harness racing leaders in Newfor Monmouth Park in 2007. The racing commission,for its part, will allow the Thoroughbred or not.York have cause to worry, whether they realize itHorsemen’s Association to retain three of its nineboard members if they win reelection later thisyear, and the parties are scheduled to finalize theagreement in state Superior court tomorrow. Aspokesman for the Breeders’ Cup called the resolution“good news,” and NJSEA CEO GeorgeZoffinger said, “Now we can get back to the businessof preparing for the Breeders’ Cup.”STILL A “MAYBE” IN NEW YORKThe Republican Senate and Democratic Assemblymay have reached agreement on raising VLTtakeout in New York, but there is no indicationyet that Gov. George Pataki will sign whateverthey send him, and disturbing vibrations that hewill not. A Pataki veto may well be in the offing,and for harness racing there is an equally bigthreat. The “Friends of New York Racing,”meanwhile, whose proper name should be“Friends of New York Thoroughbred Racing,”are still buzzing around the state, building modelsthat are not likely to have much of substancefor harness racing . They now have entered anagreement with the man who knows most aboutNew York racing -- Bennett Liebman, directorof the Government Law Center at the AlbanyLaw School-- for help from him and his studentsin preparing a report on the history and developmentof racing, pari-mutuel and breedinglaw in the state.TOP COURT CURTAILS INDIANSThe United States Supreme Court, in an 8-1 decision,has ruled that Indian tribes cannot expandtheir tax-exempt holdings by buying up propertythat has been outside its reservation for generations.With Justice Ruth Bader Ginsberg writingthe 22-page majority opinion and only JusticeJohn Paul Stevens dissenting, the Court ruledthat “the tribe cannot unilaterally revive its ancientsovereignty, in whole or in part, over theparcels at issue. The Oneidas long ago relinquishedthe reins of government and cannot regainthem through open-market purchases fromcurrent titleholders.” The decision came in thedispute between the little city of Sherrill, NY, andthe New York Oneidas over unpaid taxes on agas station, convenience store and defunct T-shirtfactory. The Court ruled that too much time hadpassed for the Oneidas to now claim tribal sovereigntyon individual properties within the city,and that doing so would create a “disruptive”patchwork of local and Indian jurisdiction. JusticeStevens, in dissenting, argued that the decision“is at war with at least two bedrock principlesof Indian law,” that only Congress can reducea tribe’s reservation, and that only Congresscan change a reservation’s tax status. Thedecision overruled two lower court rulings. Itwas silent on the fact that the Indians did notvoluntarily relinquish their sovereigntyyears ago.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor March 31, 2005HOW GOES IT IN FLORIDA?It could be worse, but it could be better, too. Thefate of slots at Pompano Park and Gulfstream,already decided by public vote, now rest in thehands of legislators, who do not always feel obligatedto accommodate their constituents. Statesenators know the bill was approved by Browardcounty voters -- twice -- but they also know theycontrol how many machines, how long they canoperate, who can play them, and most importantof all, how much tax the state plans to impose onthe tracks who operate them. The latest thinkingis reported to be a tax rate between 30 and35%, no limits on the number of machines but alimitation on hours of operation, no free booze,and no one under the age of 21. The House, however,may take a stiffer stand, possibly trying tolimit the machines to VLTs and electronic bingo,or “class II” games that already exist in Florida’sIndian casinos. If full slots are approved for thetracks, the Indians already have served noticethey intend to negotiate for them as well, as providedby federal law.A REAL THREAT IN DELAWARETwo HTA tracks -- Dover Downs and HarringtonRaceway -- have prospered with slots in Delaware.They face a serious threat now, however,partly from imminent competition in Pennsylvaniabut even moreso from a proposal to build a$300 million casino on the waterfront inWilmington. The proposed Diamond Casinowould be built on 50 acres on the WilmingtonSeventh Street Peninsula, with up to 4,000 slots,a 400-room hotel, and a full scale entertainmentand shopping complex.10-CENT SUPERFECTASStarting Saturday, Hawthorne in Chicagowill begin offering 10-cent superfectas, offeringfans the opportunity to play farmore combinations.THE LADY VS. CAL RACING BDThere is no fury like a woman scorned, and theCalifornia Horse Racing Board is feeling thewrath of a lady who doesn’t like to be ignored.Mary Frances Rowe, the former mayor of Sunnyvalein the San Francisco bay area, turned herattention to horse racing a few years ago and was,she says, “swindled” by a well known trainer ina private horse sale. This has been known tohappen, in California and elsewhere, and Ms.Rowe ultimately got back $30,000 she paid forthe horse. That didn’t end things, however, accordingto a story by Jack Shinar inbloodhorse.com. Ms. Rowe heard about the caseof trainer Frank Monteleone, who was accusedin a Nevada court of defrauding two clients inthe acquisition and training of two Europeanthoroughbreds. A Nevada court issued a $635,000judgment against Monteleone before a settlementwas negotiated, and Ms. Rowe became incensedthat the former executive director of the Californiaracing board, Roy Wood, allegedly made adeal with Monteleone, ignoring the fraud case inreturn for information on drug violations. Theboard denied any such agreement had beenmade, but a California deputy attorney generalseemingly confirmed one may have been, writingto Ms. Rowe that, “The requested record isexempt from disclosure under the Public RecordsAct...it being part of an investigatory or securityfile compiled by the CHRB for law enforcementor licensing purposes.” The board now has nocomment, but Ms. Rowe is now fully revved up,and has filed a lawsuit asking a court to compelthe racing board to comply with the PublicRecords Act. She claims her interest is that theboard operates in secret, saying, “They are apublic agency. So why don’t they start actinglike it?” A friend who knows Ms. Rowe told usshe sued trainer Jack Van Berg and won, andthat Ms. Rose is “tenacious” and not easilydeterred. Obviously.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor April 1, 2005YOUBET TOSSES THE GANTLET ELSEWHERE, SLOT TURMOILUnannounced to its track partners, Youbet.com Here are late slot developments around the nation:has quietly launched a program offering rebatesof up to 11% to its best customers, according toIn Illinois, Gov. Rod Blagojevich finally got offDaily Racing Form, and some of the track partnersare less than pleased. Youbet president andthe dime and said he would veto plans for a Chicagocasino. He also left racing out of his budgetCEO Chuck Champion said notification of thesolution, proposing instead to double the numberof slot machines and table games at Illinoisrebate program was sent to 46 current or previouscustomers who live in the U.S., except for 15casinos from its present 11,000 “positions” at ninestates including California where rebates are prohibited,and live more than 25 miles from anyexisting casinos, with a 10th still in dispute.track. Champion said the move was made “to In New Jersey, the chairman of the Assemblyincrease their interest and wagering into the parimutuelpools in the United States.” Concerning posal for VLTs at tracks is “going nowhere,” andBudget Committee said Governor Codey’s pro-track partners that are unhappy at not being his committee is not including VLT revenues innotified, Champion told the Form’s Matt Hegarty its projected revenues for 2006. In West Virginia,that, “A lot of people encouraged us to do this. I a major backer of legislation for table games fordo know that there is some confusion about this tracks said the bill “is in trouble in the House,”from people who don’t really understand it, and saying it was being held hostage and some legislatorswere ready to pull their support. The mea-we look forward to talking to them.” Most trackoperators in the U.S. today understand rebates sure was approved by the Senate but is beforefairly well, including Charles Hayward, the new the House Judiciary Committee and will needpresident of NYRA, who found out about the House Finance Committee approval and threemove secondhand over the weekend, and said he readings in the full House before that body adjournsApril 9.was “mystified” and called Youbet’s rebates onNYRA’s three tracks “pretty distressing percentages.”Peter Berube of Tampa Bay Downs alsoIn Florida, the first committee to considerBroward county slots voted to limit games to electronicbingo. The leader of the slots movementunderstands rebates, having addressed the jointHTA/TRA convention a year ago on the subject,in Broward, Dan Adkins of Hollywood GreyhoundPark, said, “No question the voters inand he called the move “disturbing” and “a causefor concern on a day-in or day-out basis.” HeBroward knew what they were voting for. Anypredicted the move would have “some consequences.”Steve Mitchell, vice president of wa-8-year-old on the street knows what a slot machineis.”gering operations for Woodbine Entertainment,said Woodbine’s contract with Youbet was being In New Hampshire, slots for Rockingham and theplaced in jeopardy because of the rebate program,which calls for 6.5% on straight wagers Lou D’Allesandro, whose bill would allow nearlystate’s other tracks are still alive. State senatorand 11% on WEG exotics. Mitchell said Woodbinewas not happy about the idea, and said if a bling now. The difference is if we pass this bill,4,000 VLTs at the tracks, said, “We have gam-satisfactory answer to Youbet’s motives the state makes money.”was not forthcoming, WEG would reviewits wagering agreement with Youbet.In Maryland....gridlock. What else?

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor April 4, 2005WEG PLANS TO COMMINGLE A WEEK LEFT IN MARYLANDWoodbine Entertainment, planning to take advantageof the elimination of the U.S. 30% song goes, and chances for slots in Maryland nowThe days narrow down to a precious few, as thewitholding on foreign wagers, is applying to send rest on the usual hurly-burly of last minute dealing.It seems unlikely that there will be any be-bets directly into commingled pools at the Meadowlandsin New Jersey and Calder Race Course tween Gov. Robert L. Ehrlich Jr. and his archin Florida. Woodbine’s chief financial officer, foe House Speaker Michael Busch, so the legislativesession is likely to end without compromiseSteve Mitchell, told Daily Racing Form WEGhopes to commingle with the Meadowlands by on the issue. Through heavy lobbying, EhrlichJune, and also will seek commingled pools in got 35 of 43 Republican delegates to support aCalifornia and New York. He said Canadian House slots bill, but Busch and Senate presidenttracks are 100% committed to the project, but Thomas V. Mike Miller could not or would notadmitted it was a complicated regulatory process.He said Woodbine did not plan to raise itsagree, and time is running out.minimum bet from $1 to $2, saying that was notconsidered a viable option by WEG.IT’S NOW ALL UP TO GEORGEThe New York legislature, Senate and Assembly,has done its job on clearing VLT hurdles thatwill enable expansion to Yonkers, Aqueduct andbeyond, but The Boss -- and we don’t meanTrump -- has not yet signed off on the deal. WhileYonkers and Batavia and Vernon Downs awaitthe final word, Pataki is expected to negotiatewith Joe Bruno and Sheldon Silver on their plans,which raise the track’s share to 32% of the firstmillion in annual revenue, 29% of the next million,and 26% of revenue above $10 million, plus8% of the first $100 million of slots revenue formarketing and advertising expenses and 5% ofrevenue above $100 million. Charles Hayward,president and CEO of NYRA, called the legislation“a good bill,” and said that he thought allparties concerned would still agree it was a goodbill even after expected changes are negotiated.At Vernon Downs, meanwhile, the track will holdan open house next week, of both its propertyand books, for eight investors it says areinterested in the track and its racino.UNHAPPINESS IN ILLINOISRod Blagojevich, the governor of Illinois, is havinga hard time pleasing anyone on gambling issuesin his state. His proposal to raise $300 millionby doubling the number of gambling “positions”on the state’s nine existing riverboat casinoswould, one would have thought, pleased thecasinos, but they say they have no intention ofbuying more equipment without tax relief, currentlytopped out at 70%. Only two casinos currentlypay that rate -- Harrah’s in Joliet and theGrand Victoria in Elgin -- with all the others exceptone falling in the 50% bracket for grossingbetween $100 million and $250 million a year.Those in that bracket fear doubling the positionsfrom the present 1,200 a boat to 2,400 would drivetheir gross above $250 million, pushing them fromthe 50% tax bracket to 70%.WAPLES IN TROUBLE, AGAINRandy Waples, blessed with an abundance ofdriving talent, seemingly is cursed with a shortageof self restraint. After losing months of racinglast year for intemperate actions, he now hasbeen fined $1,000 and suspended for 90 days for“improper and insulting language and improperconduct to another participant” atMohawk Raceway.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor April 5, 2005GEORGIAN DOWNS SOLDGreat Canadian Gaming corporation, which recentlypurchased Hastings Park, Fraser Downsand Sandown Park in British Columbia, has returnedto the marketplace and is acquiring GeorgianDowns in Ontario for C$25 million, plus assumptionof shareholder loans and other indebtednessof some C$23 million. Georgian Downs isa harness operation in Innisfil, Ontario, some 45miles north of Toronto, and has approximatelyC$34 million in total assets including buildings,land and undeveloped property. It also has slotmachines, and Great Canadian Gaming’s presidentand CEO, Anthony Martin, called it a “totalentertainment package.” Georgian Downs isnew, having been built in 2000 and opening ayear later, and races two days a week, 12 monthsa year.In other Canadian racing business news, theOntario Racing Commission ruled that HTAmember Windsor Raceway cannot arbitrarilymove its premier stakes event, the $450,000 ProvincialCup, from spring to fall. Windsor hadhoped to race the event late in its meeting, butthe commission, taking into consideration thatentries had been taken and payments made byowners and trainers, said the race would have tobe raced as originally scheduled on Sunday, May29, with eliminations, if needed, on Sunday, May22.In Aurora, Ontario, the board of FrankStronach’s MI Developments urged shareholdersto reject a proposal to convert it into a realestate trust and dump its interest in Magna EntertainmentCorporation, its racing arm. Theboard, in recommending rejection of a plan submittedby its second largest shareholder,Greenlight Capital LLC, raised its dividend 67%to fend off critics. The payout, an increaseof 60 cents a share, will cost $28.6million a quarter.THE GUY SIMPLY WON’T QUITCornelius Murray, the lawyer who brought thesuit that resulted in portions of New York state’sVLT law being ruled unconstitutional, is at itagain. He now is urging attorney general EliotSpitzer to shut down the flourishing and hugelyprofitable Turning Stone Casino, near VernonDowns. Murray contends Turning Stone has beenoperating illegally for 12 years, and in a letter toSpitzer he wrote, “Your office has earned a justifiablereputation as a vigorous prosecutor andenforcer of violations...including Internet gambling.I would now expect that you would bringthe same enthusiasm and vigor to bear in thiscase.” Murray’s letter followed by just two daysthe United States Supreme Court decision thatonly 32 acres were actually Oneida’s sovereignterritory, and that 17,000 other acres of the tribe’sproperty in central New York is taxable. Murraywrote Spitzer that “the property is...the sovereignsoil of the state of New York and activitiesthereon are subject to the laws of the state of NewYork.” An Oneida spokesman said the court rulingis about property taxes, not gambling.Murray won a court ruling last year that saidthe Oneida gambling compact issued by formergovernor Mario Cuomo was invalid. That decisionis under appeal.MEADOWS GETS SURROUNDEDThe Meadows, HTA’s longtime member in westernPennsylvania southwest of Pittsburgh, hassince it was built commanded an impressive sitejust off Interstate 79. It now appears it will loseits exclusivity, if plans for a huge, 122-acre factoryoutlet mall and 210-acre Bass Pro Shopsstore, restaurants and hotel materialize. The explosionof long-predicted development near thetrack and its adjoining motel has delighted someWashington county residents and appalled others,who fear overcrowded roads andstrained public services.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor April 6, 2005SENATE BOOST FOR POMPANO RACING THRU THE COURTSThere was good news in Florida, where a key Attendance may be down at tracks, but it is upSenate leader said Pompano Park, Gulfsteam in courts across the land, keeping squadrons ofPark, Hollywood Greyhound and Dania Jai-Alai lawyers busy fighting either for or against developmentsaffecting racing.in Broward county should get just what votersthere voted for: slots, and not electronic bingomachines. Senator Dennis Jones, chairman of the In New Jersey, the New York Giants have suedRegulated Industries Committee, made it clear the state, seeking to halt construction of the $1.3he intends to push for slots, saying, “The constitutionalamendment clearly says they were vot-parking and “tailgating,” a popular pastime atbillion Xanadu project because of its impact oning for slot machines. Nowhere did it say bingo Giants Stadium where fans prepare sometimesor video machines. The governor or House just lavish pre-game snacks and meals on the stadiumdreamed that up.” Jones’ committee yesterday parking lots. The Giants also are trying to forceapproved, by a 6-2 vote, a bill that would let the New Jersey Sports and Exposition AuthorityBroward county tracks operate slots 16 hours a to spend hundreds of millions of dollars to turnday, 7 days a week, with a tax ranging from 30% 29-year-old Giants Stadium into a “state-of-theart”facility. On the tailgating issue, Giants ex-to 35%, as opposed to a House bill calling for a35% to 45% tax based on number of machines, ecutive Steve Tisch rejected the idea of the multilevelparking garage proposed as a parking so-with a maximum of 3,000 at each facility. TheSenate bill sets no limits on the number of machinesa track could have. Jones indicated nego-fan experience, and I can’t imagine tailgating onlution at Xanadu, saying, “Tailgating is a greattiation will be needed, but he said, “There are the sixth floor of an eight-floor parking structure.”Also in New Jersey, leading trainer Noelgoing to be entertainment centers and this bill isbuilt to help them be successful. If we can’t work Daley’s attorney received a second continuanceout our differences this year, we’ll work them out on charges following Daley’s arrest for possessionof prescription drugs without prescriptionsnext year.” Dan Adkins, vice president of HollywoodGreyhound who speaks for Broward’s and possession of hypodermic needles and syringesat his Magical Acres training headquar-tracks, called the Senate bill “a very good businessplan...and it will allow us to produce what ters. A new court date was set for May 4 to allowwe promised the people.” The Senate slots bill for completion of testing on vials found in Daley’spassed with no debate, few amendments and only possession.brief public testimony.In Minnesota, Canterbury Park had less luck.The Senate committee on Agriculture, Gamingand Veterans Affairs voted 10-4 against allowinga racino at the track. Canterbury presidentRandy Sampson said he was not surprised by thecommittee’s vote, and said he fully expected thegaming debate to continue in both theSenate and the House this year. The billis still alive in the House.In North Dakota, beleaguered Susan Bala, facingsentencing April 29 on charges of operatingan illegal gambling site at her Racing Servicesoperation, was ordered to return a $50,000 loanshe made from her company to buy a life insurancepolicy in 1995 and borrow against its cashvalue in November, months after Racing Servicesdeclared bankruptcy. A federal bankruptcy judgealso ordered her to turn over $14,000 in furnitureshe had bought with Racing Servicesfunds.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor April 7, 2005SLOTS A LOTS AROUND NATIONPro and con, good and bad, legislators and otherswrestled with slots problems this week.In Massachusetts, the legislature will take up theissue of legalizing slots at tracks this session, accordingto the chairman of the House Joint Committeeon Consumer Protection and ProfessionalLicensure, Vincent Pedone, who has pledged toaddress the issue in his committee. The formerSpeaker of the House, Thomas Finneran, neverlet it come to a vote, but new impetus andFinneran’s departure may result in a decision.In neighboring New Hampshire, hopes dimmedas the two biggest boosters of legalizing slots allbut admitted defeat. The principal sponsor ofthe idea, Democratic Senator Lou D’Allesandro,said he will force an up-or-down vote to permit atotal of 5,700 machines at the state’s four tracksand three resorts, but he admitted momentumhas turned against his cause, and said some formerlyin his corner now aren’t even returninghis phone calls. The Republican senator fromRockingham Park’s district, Chuck Morse, wasquoted in the Nashua Telegraph as saying, “It’sgoing down....for some reason many of the Democratshave decided we don’t need the revenue.They aren’t looking at what I am looking at.”Morse said that the failure of Gov. John Lynchto support the idea, thinking that an increase incigarette taxes would be enough to finance thenext state budget, hurt the cause.In West Virginia, The Intelligencer-WheelingNews-Register reports that Senate Bill 442, whichwould provide table gaming for the state’s slotrichtracks, “Likely won’t even make it out ofthe House Judiciary Committee.” Today is thelast day bills can be passed out of committeeand still be read three times, providinglittle chance of passage.In Maryland, Gov. Robert Ehrlich, whistlingbravely in the dark, said he still was optimisticthat slots would be legalized despite the fast approachingend of the legislative session with littlesign that the legislative stalemate can be broken.Ehrlich said yesterday, “We believe the bill canand will be passed.” When asked the same question,Senate president Thomas V. Mike Millersaid, “Quite frankly, I don’t. We have a longway to go and a short time to get there.”In Maine, a push has started at the state houseto get legislation passed for a PassamaquoddyTribe harness track and racino in Washingtoncounty in northern Maine. Sebastian Sinclair,president of Christiansen Capital Advisors consultingfirm, said such a casino would be in a farmore rural area than others in the United States,and added, “I would be hesitant to be an investorin it.” Some Maine horse racing interestssupport the idea, according to MaineToday.com,as an opportunity to build a racing circuit inMaine. The state representative from the districtsaid, “There is overwhelming support forsomething like this in Calais. I’m surprised byit.” Maine’s two harness tracks, ScarboroughDowns and Bangor Raceway, reportedly havetaken no stand on the issue, althoughScarborough’s attorney said he thought the statehad enough racing currently. He did add, however,that if purses grow from slots operations atBangor Raceway, the state could see an increasein demand.In Minnesota, Southwest Casino Corporation,planning to build a new harness track north ofMinneapolis, announced it had lost its chief investorand his $50 million in backing. GordonGraves, who was scheduled to become chairmanof the venture, has withdrawn his investment.Southwest’s CEO gave no reasons, but saidthe company had a backup plan to moveahead and added. “Everything’s OK.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor April 8, 2005TWO RIGHTS AND A BIG WRONGThe United States and Antigua are both claimingvictory after a World Trade Organizationappellate board handed down a 146-page decisionthis week. Both countries may be right intheir reading, but from this vantage point thereis no good news, under any interpretation, forU.S. racing.The reason is that in order to comply with thedecision, the U.S. has several courses it couldpursue. One would be to ignore the decision andface sanctions, since it has little trade withAntigua. A more draconian approach would beto leave the World Trade Organization. A thirdpossibility -- and as long as it exists it is bad newsfor racing, with no other interpretation -- is thepossibility that the Interstate Horseracing Act of1978, the bedrock on which current Internetwagering rests, where legal, could be challengedor amended. That possibility was hinted at byActing U.S. Trade Representative Peter Allgeier,who said, “This report essentially says that if weclarify U.S. gambling restrictions in certain ways,we’ll be fine.” But he added that federal restrictionson Internet gambling could be maintainedand still meet the WTO’s decision, which denieda U.S. appeal of an earlier decision that the U.S.policy contravenes WTO rules and regulations.Antigua’s case with the WTO contended U.S.policy interfered with its economic welfare bypreventing U.S. citizens from betting with legal,licensed and regulated Antigua Internet bettingoutlets, and the WTO agreed. Antigua arguedthat the Interstate Horseracing Act is inconsistentwith U.S. prohibition on Internet gambling,and its legal counsel, a Texas attorney, says thedecision was “clear cut, and Antigua won on allmajor points.” A law professor at the state universityof New York in Buffalo said, “Ifadvising a client, I would urge caution.”It is good advice for racing.The professor, Joseph Kelly, who is editor of GamingLaw Review, warned that the matter is notgoing to be clear cut. “There are going to be furtherproceedings on both sides,” he said, notingthat while the U.S. might ignore Antigua, withwhich it has few trade dealings, it would find itdifficult to ignore other trade partners intent onexpanding Internet betting. “How are you goingto stop a British-licensed casino in the UnitedKingdom from taking wagers from American citizens?”Kelly asked, and answered the questionhimself. “You just can’t.”YOU WON’T BELIEVE THIS, BUTAfter months of diligent lobbying in New Yorkto get VLT revenues to racing increased, the NewYork Thoroughbred Breeders and the New YorkThoroughbred Horsemen’s Association now areurging Gov. George Pataki to veto the legislationraising racing’s share. The thoroughbred horsemenare piqued at the New York Racing Association,saying NYRA won’t split the new revenueaccording to terms of current law, which providefor 7.5% to 10% to purses. Pataki doesn’t likethe legislation either, passed over his objections,and he has until Tuesday to veto the measure.The horsemen are unhappy because the measure,as passed, does not mandate how the revenue willbe shared. The horsemen’s execs, Dennis Bridaand Richard Bomze, oppose the legislation eventhough it could mean more money for everyonein racing. If their plan is to bluff the legislature,which has already decided against Pataki’s plan,they are playing a very dangerous game, particularlywith Pennsylvania gearing up with slots fornext year.TWO GAMBLING BILLS DEADSlots for tracks in New Hampshire and tablegames for those in West Virginia died yesterday,although there could be a last minute resurrectionin West Virginia today. The sessionends tomorrow night.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor April 11, 2005WAIT ’TIL NEXT YEAR..OR TWO HOPES STILL ALIVE IN TEXASAt the risk of seriously dating ourself, the old The Speaker of the House in Texas, TomBrooklyn Dodgers used to have a rallying cry, Craddick, has told supporters of casinos, and perhapsracinos, they should make their push in theafter losing pennant races, “Wait ’til next year.”Unless something monumental happens between next two weeks, although he doubts there are 100now and midnight tonight, that has to be the forlornhope of Maryland racetracks. Gov. Robert Because a constitutional amendment would bevotes in the House to approve such legislation.Ehrlich Jr. gave up Saturday, telling WBAL radioin Baltimore that slots not only were dead for approval. The Texas state comptroller, Caroleneeded, a two-thirds vote would be required forthe session now ending, but “for two more years,” Strayhorn, who has been a longtime supporteruntil after the 2006 elections. Ehrlich added, “It’s for expansion of gambling, estimates casino gamblingin Texas could mean an additional one bil-a crying shame. The leadership has told me theywill not allow a slots referendum on the ballot lion dollars a year in revenue for the state.with my name on the ballot at the same time.”SAME STORY IN INDIANAThings were no better in Indiana, where HTAmembers Hoosier Park and Indiana Downs hadtheir hopes dashed by Senate Republicans, whorejected a plan to put 5,000 slot-like machines atthe two tracks. Minority Democrats offered theproposal, saying it could raise some $180 millionfor funding of public schools, but the vote followedparty lines and went down, 33-16. Threeweeks remain in the Indiana legislative session,and a principal supporter of the slots measure,Democratic senator Tim Lanane of Anderson,home of Hoosier Park, told that body that theloss of $75 million annually to riverboat communitiescould be avoided. “We perhaps could avoidall of that if we put all of the chips that are availableon the table,” he said. “We’ve got to do that.”Under the amendment proposed, the HoosierLottery Commission would have owned and operatedthe machines and the state would havekept 60% of the proceeds, with the rest splitamong horsemen and the two tracks. The chairmanof the Senate Tax Committee, RepublicanLuke Kenley, said the proposal should be heardin a committee hearing, where the publiccan testify.NEW MEXICO COMMON SENSEEven though the legislature didn’t show any, thegovernor of New Mexico, Bill Richardson,showed good judgment in Santa Fe, vetoing abill that would have allowed the state gamblingregulatory agency to grant licenses to people ororganizations whose licenses had been revokedin other jurisdictions. The veto could have ramificationsfor Ruidoso and Hobbs track owner R.D. Hubbard, who still is not totally out of thewoods in Indiana, where he voluntarily relinquishedhis gaming license three years ago aftera scandal involving alleged use of prostitutes atthe Belterra Casino Resort. A new federal lawsuitfiled by Pinnacle Entertainment, whichowned Belterra and of which Hubbard was chairman,could result in the Indiana commission imposingfurther sanctions against Hubbard, accordingto the freenewmexican.com, the Web siteof The New Mexican. If that were to happen, thesite reported, it could affect Hubbard’s status inNew Mexico. Only one New Mexico senator,Cisco McSorley, an Albuquerque Democrat,spoke against the forgiveness bill, and his responsewhen told the governor had vetoed it wasquick and blunt. “Hallelujah,” he said. “Thegovernor is a man of integrity and balls.”This is the Wild West, pardner.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor April 12, 2005ANOTHER STORM ON COAST KEENELAND CUTS OFF FIVEAfter a winter of black clouds and rain, Californiaracing has been hit with another storm. This bate shops from receiving signals from its 16-dayKeeneland Racecourse has cut off five major re-one surrounds the physical condition, or more spring meeting, now underway. President Nickprecisely the stable subterfuge in concealing it, Nicholson said concerns about their betting practicesled to the discontinuation of signals to Rac-of the standout thoroughbred filly SweetCatomine, the soundly beaten favorite in last ing and Gaming Services in St. Kitts; Euro Off-Saturday’s Santa Anita Derby. The filly was reportedin press conferences as okay and ready to tralia; the Elite Turf Club in Curacao; and theTrack on the Isle of Man; Capitol Sports in Aus-run, but she had been transported -- under false Tonkawa Indian casino in Oklahoma.identification -- to a veterinary clinic for hypobaricchamber treatment earlier in the week. AT WAR ON HORSE SLAUGHTERA California Horse Racing Board investigator A determined trio launched a major effort yesterdayagainst the slaughter of U.S. horses forused strong language following his investigation,saying assertions made by both owner and trainer foreign food consumption. Award-winning authorBill Heller and U.S. Congressmen Edwere “deliberately falsified” and misled the public,which made the filly the even money favorite Whitfield of Kentucky and John Sweeney of Newin the race. The racing board filed complaints York outlined their case at the National Museumyesterday against both the filly’s owner, Martin of Racing in Saratoga Springs, also heralding theJ. Wygod, and Dean Kerkhoff, the driver of the publication of Heller’s new book, “After the FinishLine: The Race To End Horse Slaughter invan who told a stable gate guard the filly was “apony” when he hauled her at 3:15 a.m. a week America,” now available in bookstores and fromago Monday for special treatment, and again Bow Tie Press. Congressman Whitfield is thewhen he returned her to the track the next day. husband of attorney Constance Whitfield, viceThe case has created yet another press furor for chair of the Kentucky Horse Racing AuthorityCalifornia racing nationwide.and chairwoman of the Kentucky Equine DrugCouncil. Reps. Whitfield and Sweeney are cosponsorsof House bill 503, that would outlawcommercial horse slaughter in the U.S.IT’S OFFICIALLY OVER IN MDThe Maryland legislature adjourned last night,and for the third straight year legislation to legalizeslots at tracks died with adjournment. Thegovernor, Robert L. Ehrlich Jr., put the full blameon House Speaker Michael E. Busch, and saidno slots legislation could have a chance in thestate until 2007, after next year’s election.PATAKI DEADLINE TODAYThe fate of VLT legislation in New York state --and probably of Vernon Downs -is due to bedecided today, the deadline for Gov.George Pataki to sign or veto the pendingVLT revenue increases to tracks.EVICTION AT LES BOISThe axe fell in the woods of Les Bois in Boise,Idaho, this week, as county commissioners gaveLariat Productions, which had been running thetrack, 48 hours to hand over the keys. A legalbattle is expected, but with no signed lease order,Capitol Racing, which is leaving Cal-Expoin California in late summer and had hoped tooperate Les Bois, cannot apply for a license therefor live racing or simulcasting. Financial problemsprecluded signing of a lease betweenthe two.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor April 13, 2005PATAKI SIGNS VLT BILL IN NY LOOKING FOR A GOOD JOB?New York governor George Pataki has signed the The Department of Agriculture in Delaware isVLT bill approved by his legislature, and the looking for an Administrator of Racing to representthe state’s interests at Dover Downs andmove could pave the way finally for slots at YonkersRaceway and Aqueduct, and the restoration Harrington Raceway. The Administrator wouldof racing and introduction of gaming at Vernon supervise the Delaware Harness Racing Commissionstaff, including the board of judges, veteri-Downs. As passed, the legislation circumventsthe constitutional prohibition of using the moniesfor purses, by providing the funds to the tracks personnel, and would be the state’s chief liaisonnarians, inspectors, investigators and licensingand allowing them to strike their own deals on officer between the state and track management.purses with their horsemen’s associations. The The job will pay between $60,000 and $75,000 anew law provides tracks with 32% of the first year, with a competitive benefits package. The$50 million in annual VLT revenue, 29% of the closing date for applications is May 6. For a fullnext $100 million, and 26% on anything over that, job description and to submit a resume, contactalong with a marketing and promotional payment the Department of Agriculture, Human Resources,2320 S. DuPont Highway, Dover, DE,of 8% on the first $100 million in VLT revenueand 5% over that figure. That fund would be 19901.capped at 4% of all VLT revenue for Yonkers andAqueduct. Legislators think the bill will be worthsome $1 billion more a year in revenue for NewYork once racinos are up and running.WHEN WAS THE LAST TIME?When was the last time the governor, lieutenantgovernor and secretary of agriculture of yourstate showed up at your track for a race? Thisweek, in the case of Dover Downs, where Gov.Ruth Ann Minner, Lieutenant Governor JohnCarney Jr. and Secretary of Agriculture MichaelScuse all turned out for dinner and the governorproclaimed Monday “Rainbow Blue Day” inDelaware. The Rainbow and driver Ron Piercedid not disappoint, breezing to victory in the$50,000 race named in her honor.BIG FINE, BAN, FOR ZERONOntario driver Rick Zeron has been fined $35,000and suspended for 10 weeks and trainer RichardMoreau has been fined $15,000 and suspendedfor 15 days for “acts injurious to racing”at Mohawk Raceway.THE TRADER GOES TO EUROPE“Trader Bud” Hatfield, Ohio’s auto dealer andamateur driver par excellence, is headed forEurope....temporarily. He will represent theUnited States in a 12-country amateur drivingcompetition in Austria in late June. Hatfield willbe attempting to improve on the best showing anAmerican amateur has ever made in the WorldCup Amateur Driving Championships, a thirdplace finish earned by Bob Krivelin six years ago.CHURCHILL GOES TO COURTWith the Kentucky Derby looming less than fourweeks away, Churchill Downs has asked a federaljudge to make sure the minions of suddenlysilent Wayne Gertmenian don’t rear their contentiousheads. Churchill filed in U.S. DistrictCourt last week asking for a hearing to ensurethe Jockeys’ Guild does not direct a Derby walkout.The petititon said the Guild “has contractedor conspired with jockeys in an illegal effort tocontrol prices through concerted action,” and itseeks an injunction againts illegal activities.A hearing is set for April 27.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor April 14, 2005SECOND CHANCE IN ILLINOIS? “A MISSION OF THE HEART”The governor of Illinois says he is interested in That was the way Steve Ferguson, chairman ofa new proposal, put forth by Chicago Democratic the Cook Group of Bloomington, Indiana, oneHouse member Robert Molaro, that would providea new approach to riverboat gambling taxa-devices, described the $240 million plan of hisof the world’s largest manufacturers of medicaltion that includes a subsidy for Illinois horse racing.Molaro’s idea is to let existing riverboat napolis put forth to pick up the casino licensecompany and Lauth Property Group of India-casinos increase their slots and table games dropped by Donald Trump to restore the historicfrom the present 1,200 limit to 3,000, pay the French Lick Springs Resort and Spa. Oh, andstate $20,000 for each new space, lower their to operate a casino there. Ferguson said hetop rate tax from the present 70% to 50%, and didn’t know any other way to put the offer, butprovide 3% of each casino’s gross revenue to he also admitted that while he had said for yearsthe Illinois racing industry. He pointed out that his company wasn’t interested in bankrolling athe government-regulated racing industry createsthousands of jobs and should be protected ery word you say, and she was right.” Rightcasino, “Mother always told me you’d eat ev-from competition created by government action. from the heart, Steve.A spokeswoman for Gov. Rod Blagojevich saidof the Molaro plan, “It’s certainly somethingwe are interested in.”THE LADY BUYS IT ALLMarian Ilitch is 70, the daughter of Macedonianimmigrants who with her husband started a pizzaparlor in suburban Detroit. They called it LittleCaesars, and largely due to her smarts it grewinto one of the biggest national pizza chains. TheIlitches and their seven children now own the DetroitRed Wings of the National Hockey League,the Detroit Tigers of Major League Baseball, realestate all over Detroit, and businesses with combinedrevenue of more than $1 billion last year.Yesterday Mrs. Ilitch expanded her holdings, whenthe Michigan Gaming Control Board voted 4-0 toapprove her bid to buy out her partners and becomesole owner of the MotorCity Casino, currentlyowned by Mandalay Resort Group, whosemerger with MGM Mirage forces them to sell.Mrs. Ilitch already owns 25% of MotorCity, andwill pay $525 million for Mandalay’s 53.5% shareand buy 11.5% held by Atwater Entertainmentand the remaining 10% ownedby Detroit investor Tom Celani.NOEL DALEY GETS SIX MONTHSTrainer Noel Daley has been suspended sixmonths, fined $2,500, and denied the privilegesof all grounds under the jurisdiction of the NewJersey Racing Commission during the suspensionperiod for his second violation ofmilkshaking rules. The judges also ordered afull suspension of all horses owned or trainedby Daley. An appeal is certain, but the severityof the suspension shows that New Jersey hasgotten serious about infractions of its rules.In other New Jersey news, the New York Giantsand the state have reached an agreement that willallow the Giants to build a new $750 million stadiumat the Meadowlands. The settlement cameafter Gov. Richard J. Codey intervened, callingthe move “a good deal for New Jersey taxpayers,”and adding, “We’re going to get a brand newstadium with one of the best deals in the country.”Giants Stadium, owned by New Jersey, opened withthe Meadowlands in 1976 and is among the oldestin the National Football League. Giants’ COOJohn K. Mara said the new stadium could beready by 2008.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorA SETBACK FOR THE ISLEIllinois governor Rod Blagojevich’s new IllinoisGaming Board, appointed because the governorwas unhappy with the old one and its decisions,has reopened the Emerald Casino issue. Thisdispute has been ongoing for eight years, and appearedresolved last year when Isle of Capriagreed to pay bankrupt Emerald $518 million forits license, the 10th and final casino license inIllinois. The state attorney general, LisaMadigan, immediately vowed to undo the oldboard’s 4-1 vote to allow Isle of Capri to buy thecasino, claiming mob ties in Rosemont, and hasmade good on her vow at least to the extent ofdragging the matter back for review. Illinois,meanwhile, loses hundreds of millions a year whilethe political haggling goes on. The chairman ofthe new gaming board, Aaron Jaffe, says theboard will resume a long-suspended disciplinaryhearing aimed at stripping the license from Emerald,and has appointed a respected and reformmindedformer Chicago federal judge, AbnerMikva, to preside over the revocation process.Chicago Business reports that if Emerald’s licenseis revoked, it could “effectively end effortsof Mississippi-based Isle of Capri Casinos to buythe license and open a casino in Northwest suburbanRosemont.” Chairman Jaffe insists he isnot trying to punish Isle of Capri, but LesMcMackin, Isle of Capri’s senior vice presidentof marketing and communications, says, “It’sgoing to add more time to the process, and onceagain impedes the ability for this license to generateanything positive for the state.”PENN NATIONAL NOT WAITINGPenn National Gaming, not choosing to wait untilit can get Bangor Raceway rebuilt into a racino, isbuying a restaurant overlooking the Bangor waterfrontfor $3.8 million and hopes to opena temporary facility with 475 slots by Novemberor December.April 15, 2005RACING SAYS WHOA TO GAMESHTA member Plainridge Racecourse and SuffolkDowns in Massachusetts are deeply upset overplans of the Massachusetts State Lottery to introducenew virtual horse racing games in thestate. The Lottery announced it was adding thesimulated race games “as just another way to generaterandom numbers for a game, like keno,”and Lottery spokesman Joe Sullivan says, “Thisis animation. It is not any form of live action. Itis not any form of an actual race. It is not offtrackbetting. It is not a simulcast.” The trackssee it in a totally different light. Plainridge presidentGary Piontkowski said, “It is a simulcast,and the idea of putting these into venues aroundMassachusetts is off-track betting. Make no mistakeabout it. That’s what it is.” His view wasshared by Bob O’Malley, COO of Suffolk Downs,who said, “I think the new game is going to lookexactly like a simulcast race. The images of thehorses on the video screen will be scaled to lookexactly like what we do.” Perhaps most significantof all, State Senator Michael W. Morrissey,chairman of the Joint Committee on ConsumerProtection and Professional Licensure, whichoversees the state lottery, said, “It may look alittle cartoonish, but isn’t it just off-track betting?If it is, shouldn’t we just send live signals to thebars and restaurants so they can do actual simulcastbetting?”TOTAL DETENTION FOR DALEYAll horses trained by Noel Daley or in his caremust race out of detention for the next six months,starting April 21, and each will be subject to a$100 fee for the procedure, unless the horse ispart of a race in which all horses are detained.The penalty is not new. It has been in effect forhigh carbon dioxide rulings since November, 2001,and every horseman signing a stall applicationreceives a copy of the rules, which also areon the track’s Web site.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor April 18, 2005DANDY GUIDE AT NORTHFIELDNorthfield Park’s 2005 media guide is out, and isa first rate job. With a full illustrated roster oftrack officials, a history of the track from its beginnings,a look at new improvements, detailedinformation on simulcasting, statistics, a review of2004, its featured races, its horsemen, and ofcourse a plug for its microbrewery, it is a completeand thorough tool for media or fans.BIG NIGHT AT DOVER DOWNSHarness racing fans at Dover Downs get to see thebest of the best tonight, when six Classic Seriesbring out the best older horses in the sport, alongwith six Hall of Fame drivers who will be guidingthem, plus two $100,000 events for Delaware bredhorses. The highlight of the night, of course, willbe the first meeting between the world’s two bestfemale pacers, Rainbow Blue and Loyal Opposition.Rainbow Blue won 20 of 21 races last yearand was named Harness Horse of the Year. LoyalOpposition has won six of eight starts this year,including her last four in a row, the two most recentbeing the $100,000 Strada Memorial and the$122,520 Overbid at the Meadowlands. GlowingReport, a $1 million winner, and Carolina Sunshine,nearing $1 million in earnings, also are inthe field.CATSKILLS HAVE TO WAITCasinos in the Catskills, long awaited, will haveto wait a little longer. New York governor GeorgePataki late last week announced he was withdrawingland claim settlements with four Indian tribesand would “review and reevaluate them“ in viewof a recent Supreme Court decision declaring thatan Indian tribe could not expand its sovereign territorysimply by reacquiring former reservationlands and declaring them sovereign and tax-exempt.A spokeswoman for one of the tribes affected,the Oneidas of Wisconsin, said, “We’vewaited 200 years to settle, so another delay isnothing new.”A NIGHT MYSTERY MYSTERYWhere is Night Mystery, the horse that got theMeadowlands’ leading trainer, Noel Daley, suspended?He reportedly was sold on March 15,after the Feb. 25 race in which he tested positivefor a high TC02 reading, but USTArecords indicate he hasn’t raced sincethat date. Anyone know his whereabouts?Anyone wonder?NEW OHIO COMMISSIONEROhio has a new racing commissioner. Gov. BobTaft has appointed Ted Brown, for the last fiveyears’s the governor’s labor liaison and chairmanof Taft’s Labor Advisory Council, to replace ScottBoregemenke, who resigned as chairman of theracing commission to become chief of staff for OhioHouse Speaker Jon Husted.GURAL TELLS IT AS IT ISJeff Gural was in Owego,NY, last week, giving localofficials a realistic assessment of his plans forTioga Downs Racino, the new harness venture heis building there. “This isn’t like ‘Field of Dreams,”he told the Tioga County Legislature, “where ifyou build it they will come. If you market it andpromote it right it will work.”A GOOD GUY LEAVES USAnother of racing’s good guys is gone, with thedeath last week of Nick Jemas at 86. There hasbeen no one like him at national racing meetingssince his retirement 19 years ago as national directorof the Jockeys’ Guild. A fiery personalitywho made his views known with force, vigor, humorand intelligence, he espoused the cause ofjockeys in a style and substance lost since his departure.HTA sends its sympathy to his son James,vice president of finance for the New Jersey Sportsand Exposition Authority. Contributions may bemade to the St. Thomas Greek Orthodox Homefor the Aged at 615 Mercer Street, CherryHill, NJ. 08002.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorSABLE LEAVES FOR CHURCHILLSable J. Downs, HTA’s Executive Assistant andInformation Architect for the last five years, hasbecome the latest in a long procession of executiveassistants to move on to higher posts. Sablehas accepted a position as Manager of CustomerRelationship Management Analytics at ChurchillDowns, and leaves HTA this week with our warmestgood wishes in her new career. She has administeredthe HTA Scholarship Fund, compiledand edited its annual art auction catalogue and theHTA World Racing Directory, and coordinatedHTA/TRA meeting planning, among many otherduties since joining HTA after being named outstandingsenior in the class of 1999 at the RaceTrack Industry Program of the University of Arizona.Joining HTA’s permanent staff are two exceptionalrising young talents and a skilled replacement forcontroller Julie Golden.Assuming Sable’s duties will be Jessica Carner,former editor of the Bridger Valley Pioneer inLyman, Wyoming, city editor of the Humboldt-Wells Times in her hometown of Wells, Nevada,and sports editor of the Uinta County Herald inEvanston, Wyoming, where she covered all sports,including horse racing at Wyoming Downs. Jessicawill serve as HTA’s new Editorial Coordinator.In addition to handling Sable’s editing of allHTA publications, she will write the weekly Promotionsat HTA Tracks and handle associationnews releases. An accomplished equestrienne,Jess has ridden since childhood, started trainingwith her father when she was 7, and has participatedin rodeos and other riding activities sincethat time.Brody Johnson, now in his final semesterat Arizona’s Race Track Industry Program,is joining HTA as Research Analyst.April 19, 2005Brody took his first job in racing at 15 and hasserved since that time as a chart caller forEquibase, assistant general manager and racingsecretary at Wyoming Downs, assistant managerat Wyoming Off-Track Betting, and host of a handicappingshow called “Let It Ride.” He hasworked in marketing and promotion and comesfrom a family with a rich history of owning, training,breeding and riding. His brother BillyPeterson was the leading Quarter Horse jockeyin America in 1995 winning nearly $2 million inpurses, and Brody’s family continues breedingand racing quarter horses and thoroughbredsacross the west.Also new to HTA’s staff is Libbie Gabriel, whohas taken over for controller Julie Golden. Mrs.Golden, a 10-year HTA employee, has left becauseof the growth and increasing demands ofher own accounting firm. Libbie is another graduateof the University of Arizona Race Track IndustryProgram, receiving her Bachelor of Sciencedegree there in December of 1997 and subsequentlyworking as a simulcast program producerat Monmouth Park and Data ProcessingManager and Project Supervisor for CHRIMS,the California Horse Racing Information ManagementSystems in Dublin, California.A “DREAM” AT NORTHLANDSThe Edmonton Journal headline read,“Northlands unveils $150 Million Dream,” asHTA’s strong member in the far west announcedits plans yesterday to demolish two aging buildingsand build a major exposition center as partof the largest redevelopment in the organization’shistory. “It’s something that we can build our futureon,” general manager Ken Knowles said, notingthat the organization had a 125-year historybehind it. “With the additional facilities on thissite, we will certainly ensure the future ofNorthlands Park.” Construction in the 10-year plan gets underway this spring.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTHE DALEY DIARYThe doings of Noel Daley continue in New Jersey.The state racing commission yesterday granted“an extension of time concerning the start date ofhis license suspension,” from April 21 to April 27,running to Oct. 23. While New Jersey granted anextension, Solvalla Racetrack in Stockholm, Sweden,home of the famed Elitlopp, did not waitaround. It announced that it had withdrawn theinvitation of Mr. Muscleman, trained by Daley andpreviously invited to the Elitlopp, given “the turbulencesurrounding” Daley, who also facescharges of possessing hypodermic needles andunauthorized prescription drugs at his training baseat Magical Acres in New Jersey.In another controversial racing situation, thenot-so-sweet Sweet Catomine mess in California,a suit, that could turn into a class action,has been filed against Santa Anita, Magna Entertainment,owners Marty and Pam Wygod andtrainer Julio Canani by a bettor who says he lostmoney on the filly in the Santa Anita Derby. Theattorney who filed the action said the suit wasfiled for one Arthur Mota and “the thousandsthat bet on Sweet Catomine in the Santa AnitaDerby without knowledge of the true facts of thehorse’s condition for the race.” SweetCatomine, beaten favorite in the race, has beenretired after veterinary “evaluation” and will bebred.NEW QUIZ IN WAYNE’S WORLDU.S. Congressman Ed Whitfield of Kentucky,chairman of the House of Representatives Subcommitteeon Oversight and Investigations andhusband of Connie Whitfield, vice chair of theKentucky Horse Racing Authority, has askedWayne Gertmenian, president of the Jockeys’Guild, for information on accounting andoversight of all Guild funds and documentationon health insurance.April 20, 2005OUELLETTE THERE, OR NEARIf you live in Canada, where Standardbred Canadarecords prevail, Luc Ouellette has become thefourth driver to guide the winners of more than$100 million. If you live in the United States, whereUSTA rules govern, he still has four million to winbefore reaching that milestone. StandardbredCanada announced Ouellette went over the $100million mark in winning last night’s fourth race atWoodbine with Crown Caper, but the USTA recordsshow him with $95,933,387 as of today. Whetherthere or merely close, Luc remains one of thesport’s great drivers.BATAVIA ALMOST READYAt least for VLTs, if not live racing. The tracksays it will open its doors for the first time intwo years on May 18, with 580 VLTs ready towhir. Live harness racing will not return toBatavia until August 3, and Western OTB, whichowns Batavia, expects it will be operating on asound financial basis by then. The track willrace, starting with four nights and then reducingto three and finally to Fridays and Saturdays,from August until Nov. 19.THE FEDS READ ESQUIREGuys, and maybe gals too, at the Justice Departmentapparently read Esquire magazine.The Department is unhappy over five pages ofads for offshore online gambling in the April issueof the magazine, and the New York Post saysEsquire “publisher Kevin O’Malley may be gettingcaught in the crosshairs of a federal investigationinto illegal offshore gambling operations.”The ads were supposed to run again inthe June edition, which started printing last Saturday,but there are differing opinions as towhether they will. One source said Hearst executivesmay replace the ads with public servicespots, but a Hearst spokeswoman yesterdaysaid they will run, with $1 million at stakein the next three issues.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorSARATOGA REPORT UPBEATThings may be fuzzy elsewhere in New York State,but they are crystal clear at HTA member SaratogaGaming and Raceway. With a remodeled Fortunesrestaurant -- formerly known as Chariots -- andan expanded marketing budget, plus the newchanges in revenues from VLTs at its racino,Saratoga is sailing high on the waves.Daily per machine revenue from the 1,324 VLTshas climbed to $215 in the last two months, andracino general manager Jamie Hartman is predictingthe daily average will reach $225, up from thefirst year’s $171. The track’s clubhouse restaurant,charming before, has been revamped, andunder the recently passed and signed law thetrack will keep 32% of the first $50 million inmachine revenues, 29% of the second $100 millionand 26% of everything over $200 million, plus8% on the first $100 million for marketing andpromotion. Over $100 million the marketing andpromotion number drops to 5%. The racino currentlyis drawing approximately 50,000 guests aweek, and Hartman expects that number to risewith promotions, including boxing in May and acircus in June.Elsewhere on the New York scene, Yonkers Racewaygeneral manager Bob Galterio reports a conferencecall yesterday with Merrill Lynch has“put things back on track,” and he expects financialarrangements will be completed in fourto five weeks. After that , 10 months of constructionwill be required to convert the track into aracino.In Tioga county, Jeff Gural hopes to open harnessoperations a year from now, with live harnessracing, simulcasts, video lots, a restaurantand a bar and lounge, under the name TiogaDowns Racino. He will ask for 54 daysof live racing, from May through earlySeptember. Local approval is pending.April 21, 2005PEACE SETTLES OVER DERBYTom and Wayne have kissed and made up atChurchill Downs, and preparations for the May7 Kentucky Derby can go forward without concernabout a jockeys’ walkout. Churchill announcedit had reached an agreement with theJockeys’ Guild, through a court approved JointStipulation and Consent Order under which theJockeys’ Guild “shall not, directly or indirectly,through any device, in connection with any effortto fix, increase, stabilize, or otherwise affect thelevel of consideration for jockey services in thoroughbredraces, including the level of insurancefor jockeys, enter into, continue, cooperate in,or carry out any agreement, understanding, planor common course of action, either explicit orimplied,” to refuse to ride at any Churchill Downstracks, or coerce, encourage, suggest, advise, orinduce any jockey not to provide his services atChurchill tracks. Churchill still has a suit pendingagainst the Guild, however, concerning walkoutslast year at Churchill and its Hoosier Parkoperation.In addition to that no-strike agreement, Churchillannounced it has obtained $1 million accident insurancecoverage for jockeys at all of its tracksexcept Hollywood Park, where jockeys are coveredunder workers’ compensation laws.Churchill plans to pass part of the cost along toowners, through a $5 a start charge toward the$25 a mount cost, at least at its Calder Downsoperation. It has not decided how it will handlethe matter at its six other tracks, a spokeswomansaying, “There’s not going to be a one-size-fitsallapproach.” The newly elected president ofthe Florida thoroughbred horsemen, Sam Gordon,said the horsemen’s bookkeeping office, controlledby the horsemen, will not collect moneyfor Calder. “They’ll have to bill every owner individuallyfor the $5,” he said. “We won’thelp them collect it.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWHAT GIVES IN FLORIDA?The will of the people does not always apply inFlorida, as we all know by now, but disregarding it,or derailing it, seems to have become a hobbythere. The people of Broward county, not oncebut twice, have voted for slots at tracks. The legislatorsin Tallahassee, however, unable to simplyoverturn what voters have voted for, seem determinedto deny them by other means. They aretalking about a pari-mutuel tax on slots at tracksin Broward county of as high as 60%, or at least inthe 50% range, and are blunt about why. The chairmanof the Senate Judiciary committee, DanWebster, who is expected to ask his committee fora 50% tax today, said, “I don’t want casinos in thestate. I’ve said that a hundred times.” It apparentlymakes no difference to Webster, a Republicanfrom Winter Garden, what the people ofBroward county want. He does not think tracksshould have slots at all, and since the people votedfor them he has decided to nullify their vote bytaxing them at a rate that blunts their effect. Aman who strongly disagrees, former state EducationCommissioner Jim Horne, points out that,“There’s a bell curve. You reach an optimum.When you increase the rate, you can’t generatethe profits to build a first class facility, and fewerpeople will come.” But the House, after a hearingof its Fiscal Council this afternoon, could optfor a tax as high as 60%, at the urging of governorJeb Bush. And something called Florida TaxWatch is urging the state to impose a 74% taxrate, which its “experts” say will produce $770million for state education, badly needed inFlorida, or twice as much as legislative economistsestimate a tax no higher than 35% wouldproduce. The racing industry, obviously, is of littleconcern to anyone in state government exceptperhaps Steve Geller and a few other legislators.The high tax folks hope to either discourageinstallation of slots or make certainthey don’t fare too well.April 22, 2005EHRLICH: PREAKNESS MAY GOHe may have lost his battle with the legislature onslots for Maryland tracks, but Gov. Robert L.Ehrlich Jr. is not giving up the fight. He spoke toreporters before giving a speech to the MarylandHorse Breeders Association last night, and toldthem, “The failure to pass slots means, clearly,the future of the Preakness in Maryland is an openissue. The state does not own that race.” MagnaEntertainment does, along with Joe DeFrancis, andwhile Magna had no early response to Ehrlich’swarning, its senior vice president of racing, JimGagliano, told the Baltimore Sun, “We’re disappointedwith the legislature, and it will be difficultto confront our competition without electronic gaming,but we’re not for sale.” His response came topublished reports that the company was contemplatingsale of Pimlico and Laurel, and that interestedbuyers who had come forward included BaltimoreOrioles owner Peter G. Angelos, who hadstarted to buy Rosecroft Raceway and thenbacked out.TOUGH NEW RULES AT NYRAStung by a milkshaking scandal a few months ago,the New York Racing Association is putting in placeone of the toughest detention rules in the country.Quoting NYRA senior vice president Bill Nader,Daily Racing Form reports that every horse on aday’s racing program, including also eligibles, willbe required to spend six hours of pre-race detention,with access to the horse restricted to the stateveterinarian except in cases of emergency. Thestate vet also will be the one to administer Lasixto horses running on that medication. The newrequirement will affect horses racing in theBelmont Stakes, third leg of the Triple Crown, onJune 11.DUES FORMS NEEDEDIf your track has not yet submitted duesforms to HTA, please do so now.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorNEW GIANTS STADIUM ON WAYGov. Richard Codey of New Jersey got his wayover the weekend on a deal for the New York Giantsto build a new $750 million stadium at theMeadowlands, when the 15-member board of theNew Jersey Sports and Exposition Authority approvedthe deal, 11 members voting yes and four -- including president and chief executive GeorgeZoffinger -- abstaining, saying they needed moreinformation than provided before approving theidea. Codey, saying the deal is advantageous toNew Jerseyans because the Giants will pay forthe stadium, issued a statement that added, “TheGiants have been a part of the New Jersey experiencefor the last three decades. With a new stadiumnow approved, they will continue to be a partof the fabric of our state for future generationsto come.” Under the deal struck by Codey withSteve Tisch and John Mara, the Giants will pay$6.3 million a year for 75 acres of Sports Authorityproperty where they will build a new 80,000-seat stadium with their own money, and developshops, restaurants and a Giants museum. Technically,the deal will not close until a formal leaseand development agreement is worked out -- expectedto take three to six months -- at whichtime the Sports Authority board again will take avote on the contract. Zoffinger said his opposition“stems from my wife being a social workerand my seeing the things the state needs to spendmoney on rather than football stadiums. We’veworked hard over the past three years to accomplishsome financial stability and it is going to bedifficult moving forward.”LIEBMAN HAD IT RIGHTLast week Bennett Liebman commented, on hisAlbany Law School Web site, about the chargesof “actions detrimental to the best interests of racing”against owner Martin Wygod in theSweet Catomine events prior to the SantaAnita Derby. Liebman called the ‘detrimen-April 25, 2005tal actions’ rule “typically the last resort of racingregulators,” and said, “Anytime you resort to thisrule, you are on a very slippery slope.” Over theweekend the Hollywood Park Board of Stewardsslipped off the slope, and dismissed the CaliforniaRacing Board’s complaint, deciding “thatall charges against Mr. Wygod are going to bedismissed in the furtherance of justice.” Theboard’s executive director Ingrid Fermin was notpleased, judging from a release in which she said,“The California Horse Racing Board has a responsibilityto pursue cases where there is probablecause that a violation has occurred. Weare committed to protecting the public interestand the integrity of horse racing.” Mrs. Ferminadded that she was “surprised, disappointed and,frankly, concerned that Mr. Wygod was not interviewedpersonally.” She said that in an effortto improve the process, “I intend to evaluateour investigative procedures from start tofinish. In that way, licensees and the public willbe reassured that cases have been fully investigatedand evaluated before any accusations arefiled.”DALEY ROLLS ON WITH A STAYThe Appellate division of the Superior Court ofNew Jersey has stayed the 180-day suspension oftrainer Noel Daley, without setting a date for ahearing with the Office of Administrative Law. Stillon schedule, unless it also is changed, is a May 4court date for possession of hypodermic needlesand other charges resulting from a search of hisbarn at Magical Acres in Chesterfield, NJ.ALLRED SAYS NOT INTERESTEDHollywood Park may be sold or developed, or itsracing moved to Los Alamitos, but in any event EdAllred will not be part of the deal. He says he has“pulled out” of any such development, the secondtime big owner Mike Pegram has been left inthe lurch. Pegram also had tried to buy theFair Grounds.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorNO LIGHTS AT MONMOUTHAt least this year. That’s the word from the NewJersey Sports and Exposition Authority, whichruns both Monmouth and the Meadowlands, andwhich for a time was considering racing them incompetition. James DeBosh, a NJSEA spokesman,said it was his understanding that “we’renot planning on doing anything about lights atMonmouth this year, but it may be a subject thatcomes up in the future. We’re not saying therewill never be lights there.” Gov. Richard Codey,before becoming governor, had said he favoredthe idea, and a Codey spokesman says thegovernor’s office “will be reviewing all our options,looking forward to the input the residentswill provide in June.” That input, to date, hasbeen concern, on the part of the mayor ofOceanport, where the track is located, and boroughofficials who have been seeking an officialconfirmation about the status of lights. One residentquoted by Bob Jordan of the Asbury ParkPress said, “We moved into town, and we understoodthere was a racetrack here. But there is abig difference to calling a race at 3 o’clock in theafternoon and calling one at 10 p.m. This is aresidential area. It changes the whole dynamic.”DEFINITION OF A POWERHOUSEWith yesterday’s completion of the MGM Mirageand Mandalay Resort Group merger, aworld casino giant emerges, with $7 billion inrevenues and 70,000 employees. MGM Miragenow will own 24 hotel-casinos, includingBellagio, The Mirage, MGM Grand, TreasureIsland, Excalibur, Monte Carlo, Luxor andMandalay Bay in Las Vegas alone, giving itcontrol of a majority of hotel rooms on the Vegasstrip and roughly 40% of the slot machineslocated there. Terry Lanni, who runs this empireas chairman and CEO, said thereare no immediate plans to sell any of theVegas properties and no plans for wholesalelayoffs.April 26, 2005NO SPEED IN PENNSYLVANIAAnd that’s not just on the Turnpike or the highways.It permeates the courts and the racing andgaming commissions as well. The state SupremeCourt heard hearings more than six weeks agoon a constitutional challenge to the slots-at-trackslegislation, but no word as yet, so the state GamingControl Board cannot hire an executive director.The chairman, Tad Decker, says he hasnarrowed the search down to two out-of-state candidates,but neither is willing to leave their presentpositions while the court issue is pending. Thecommission faces thousands of applications forcasino jobs in the next few months, but has hiredonly 11 staffers so far, with a goal of having 40 onboard by June. The Pennsylvania Harness RacingCommission, meanwhile, has not decidedwhich of two candidates will get to build a newharness track in western Pennsylvania. BothCentaur Gaming and the Schick family are poisedand ready to start construction, but the decisionstill is in limbo.WINDSOR HIT WITH $100 G FINETroubled Windsor Raceway has been hit with a$100,000 fine for violation of the OccupationalHealth and Safety Act involving serious burns to ayoung employee. The incident occurred in December,2002, when a kitchen employee slipped on hotoil while changing a deep fryer. The track pleadedguilty to failing to take proper precautions in thelifting, carrying, or moving of oil, and the penaltywas levied by an Ontario Court of Justice JP whoalso imposed a 25% surcharge provision to assistvictims.3 MORE DANDY PRESS GUIDESBig, colorful, handsome, illustrated press guidesclearly are “in.” HTA has received three morebeauties, from the Meadowlands, Prairie Meadowsand Hoosier Park. The Prairie photographs,by track photographer Jack Coady Jr., arehuge, the best we’ve seen.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor April 27, 2005HTA TO SELL KITTELSON ARTThe Harness Tracks of America College ScholarshipFund has been named worldwide agentfor the woodcarvings of John Kittelson, leadingfigure for the last 17 years in the annual HTAart auction and one of the world’s most renownedfigures in animal woodcarving and classic dioramas.Kittelson has granted the Scholarship Fund exclusiveselling rights, not only of his harnesscarvings, but of his infinitely detailed workson western and African animals, the scaled reproductionsof authentic western vehicles, andthe famed Kittelson dioramas in his Cody, Wyoming,museum. The two most spectacular carvingsin the collection are the nine-foot longBudweiser Hitch, with its eight giant Clydesdalehorses, and an 8-foot-6-inch masterpieceof a western stagecoach procession. Theworks, including prices, can be seen online atwww.johnkittelsonwoodcarvings.com. Theyalso are linked thru the HTA Web site,www.harnesstracks.com.Kittelson, now nearing the end of his carvingcareer, is an authentic American cowboy. Heran away from home at 13, joined cattle drives,roped calves, participated in rodeos, brokebroncos, and became a saddlemaker.Along the way he mastered woodcarving, firstspecializing in wild animals of the Americanwest, including mountain lions, bobcats, grizzlybears and bison. Carved mostly in basswood,his animals found buyers from South Americato the Orient, and a number of American collectorswho began assembling collections of hiswork. His dioramas of western scenes arepopulated with people, dogs, horses,cattle and vehicles.In 1988, after seeing what appeared tobe a photograph of the Budweiser hitch andfinding it was in fact a Kittelson woodcarving,HTA executive vice president Stan Bergsteincontacted Kittelson and asked if he would considerdoing some pieces for the HTA art auction.There was no response for six months,and then six completed pieces arrived, whichsold for $28,000 at that year’s auction. Thesale turned out to be fortunate for both HTAand Kittelson, for he was seriously injured inearly spring that year in a rodeo accident inwhich he almost lost his foot after being thrownfrom a racing wagon, and was unable to carvefor the rest of the year.He has contributed pieces to every HTA art auctionsince, most of them winding up as sales toppers.What may be his final harness racing workswill be sold at Tattersalls this fall at the annualHTA auction.JACOBS MAY WANTVERNONJacobs Entertainment of Colorado, a division ofJacobs Entertainment that sold the ClevelandIndians and owns Colonial Downs, apparently isinterested in buying Vernon Downs. Althoughthe lawyer for Shawn Scott, majority owner ofVernon, says the Jacobs Colorado deal wouldbe better for shareholders than that offered byNew York real estate magnate Jeff Gural, theSyracuse Post-Standard says Jacobs Entertainmentof Colorado is deeply in debt, quoting federaldocuments that say its “significant amountof indebtedness” could hamper its operationsand potential growth. In Maine, meanwhile,where Scott got slots introduced at BangorRaceway and then sold the track to Penn National,a legislative panel is reviewing a proposalto allow the Passamaquoddy tribe to build a harnesstrack which would include a 3,000-slotracino “Down East,” in Calais in Maine’sWashington county.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor April 28, 2005HOOSIER GETS TEN STARSHoosier Park’s $200,000 Dan Patch this Saturdaynight has attracted an exceptional 10-horse fieldto HTA’s member in Anderson, Indiana. Althoughthe morning line maker has installed He Wants ItAll as favorite, the field includes Canyon Wind,coming off three straight wins at the Meadowlandswith David Miller; Maltese Artist, with red hotRon Pierce driving; Toronto’s popular 9-year old“Gray Gladiator,” Admiral’s Express;Whosurboy; Escape the Wind; Eaton Road Kill;Casimir Commotion; Life Source and Johnny BeCool N. Top field, major attraction.SLOTS DIMMING IN FLORIDAWith time running out, the president of the FloridaSenate said yesterday he doubts the legislaturewill pass bills that would allow slot machines inBroward county this year, this despite the factthat residents of Broward have twice voted thatthey favored them. Senate president Tom Leetold the Sun-Sentinel that he thought slots legislation“is less than a 50-50 chance right now.”The danger of this situation became apparentlast November, when in the euphoria of a successfulvote on the issue supporters lost sightof the fact that it was up to the legislature toagree on rules and regulations. With the Houseand Senate furlongs apart on a tax rate, and lessthan two weeks left in the session, Lee said hecould see “nothing happening until there is a newgovernor.” He said, “It’s so much easier to killa bill in this town (Tallahassee) than to pass one.”If Lee proves right, the four Broward countytracks have little option but to go to court. GovernorJeb Bush said yesterday that an agreementwas still possible, but according to the Sun-Sentinel “he gave little indication he was willingto change his position to make it happen.”Pompano Park, meanwhile, called on its patronsand supporters to make their views known, loudand clear, to the legislature.“HAVE A CUP OF COFFEE”After the Supreme Court ruled recently that toomany years had passed for the Oneida Indiansto claim their reacquired former reservationlands were again sovereign and tax-exempt, thetown of Verona, where the Oneidas own theTurning Stone Casino, had the casino and sixother properties owned by the Oneida Nationappraised. The total appraisal came in at $384million, and the town supervisor hand deliveredit to the Oneidas yesterday. He saidthey didn’t indicate whether they wouldpay taxes, but offered him a cup of coffee.PEOPLE ON THE MOVEJohn G. Cansdale, a Saratoga Springs attorneywho has served previously as director of industrydevelopment with Empire State Development, generalcounsel to the Olympic Regional DevelopmentAuthority in Lake Placid, and a negotiatorfor other international events, succeeds Ed Martinas executive director of the New York StateRacing and Wagering Board. Martin now is presidentand CEO of the Association of Racing CommissionersInternational.......Timothy (Ted)Connors, chairman of the New Hampshire RacingCommission and the longest-serving racing commissionerin the country, having first been appointedin 1968, is the new chairman of the commissioners’organization....... Steve Molnar hasbeen named Executive Vice President-StrategicMarkets, and Bruce Benedict has been namedExecutive Vice President-International Sales, atUnited Tote.......Lisa Narotsky, the softball pitchingdemon daughter of Illinois racing secretaryEliot (Doc) Narotsky, has won five games -- two ofthem complete game shutouts -- at Hinsdale Southhigh school. Her ERA is 0.42.JOB OPEN AT ROSECROFTRosecroft Raceway is looking for an experiencedAssistant Track Superintendent. Call 877-818-9467 for information.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorNYRA ANNOUNCES DETENTIONThe New York Racing Association, in a move totighten security, has announced that all horses atits three tracks -- Belmont Park, Saratoga RaceCourse and Aqueduct -- will race out of a six-hourdetention barn starting with the opening of theBelmont Park meeting May 4. At Belmont, 93stalls in barns 8 and 23 will be used as a secureenvironment, and once horses enter only thetrainer and stable employees -- but no private veterinarians-- will be allowed in the barns. NYRAvets will administer Salix, pending approval bythe State Board of Veterinary Medical Examiners.Charles E. Hayward, NYRA president andCEO, said of the new program, “While we appreciatethat this will create some short-term inconveniencefor trainers, the overwhelming responsehas been incredibly supportive as we workcollaboratively to further strengthen the credibilityof New York’s racing program.” TrainerDonald Donk, a strong supporter of the idea, said,“I am pleased that NYRA is stepping up to theplate and taking on this initiative. Obviously, Iam for it because this is the future of racing.Eventually, I think the future is a 24-hour securitybarn with a camera in every stall. This is forthe betterment of racing and a great day for boththe $2 bettor and the serious gambler.”CHURCHILL ON A ROLLChurchill Downs, basking in rave reviews to thecompletion of its $121 million renovation thatincludes six completely new floors in the clubhouse,got another boost this morning whenpresident and CEO Thomas H. Meeker ceremoniouslyopened the NASDAQ Stock Market inNew York City, celebrating Churchill’s 12th anniversaryof trading on the stock market. Inanother Churchill development, the track restoredsignals to several unidentifiedofftrack rebate locations that had beencut off, after the sites provided new information.April 29, 2005BREEDERS’ CUP TO ESPNFirst it was NFL football. Now it is the Breeders’Cup, giving up network coverage of its World ThoroughbredChampionships on NBC and switchingto ESPN in 2006. Under the new multi-mediaagreement, ESPN and ABC Sports will air five twohourtelecasts from June thru October, and ESPNwill provide a live, 7-hour program from noon to 7p.m. -- two hours longer than the current telecastof the event -- starting next year. D.G. Van CliefJr., president of Breeders’ Cup and NTRA commissioner,called the new arrangement “an extraordinarymulti-media agreement highlighted byunprecedented television coverage for the Breeders’Cup and Thoroughbred racing for the nexteight years.”FAST START FOR KITTELSONThe HTA College Scholarship Fund, which openeda new Web site on the woodcarvings of JohnKittelson just two days ago, sold five of Kittelson’sworks for $7,950 on the second day. Kittelson hasgranted the HTA Fund worldwide selling rights tohis collection of African and western Americananimals, vehicles, and dioramas.THE END AT ATLANTIC CITY?The Trentonian of Trenton, NJ, reports today thatofficials of Greenwood Racing, which owns AtlanticCity Racecourse, is close to selling thetrack and its 254-acre site to the Nebraska-basedsporting goods retailer Cabela’s. The Press ofAtlantic City, however, says the track is only oneof several possibilities being considered byCabela’s, which plans a 200,000-square-footsuperstore on whatever land it buys. The companysays it could invest as much as $40 millionin construction, with employment of as many as700 people. Cabela’s, a 40-year-old company, isthe nation’s largest direct marketer and retailerof hunting, fishing and camping equipment.The track is 39 years old.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTHE HARD WAY TO COVERAGEIt is nice, of course, to have horse racing on thefront page of the New York Times, with a picture,and a huge jump inside. This morning’s Times hadjust that, Joe Drape’s feature, five days beforehorse racing’s biggest weekend, under the headline“At the Derby, Racing is Facing Its Drug Problem.”Acknowledging that the industry is facingits problem probably has to be considered a positivestory, but it’s a hard way to get coverage. Itis, however, an opportunity for horse racing, regardlessof breed, because if the industry does notstrike now, while the iron is hot, and charge fullspeed ahead with the work of the Racing Medicationand Testing Consortium, it is losing a goldenopportunity. The idea for a per start, per horseassessment to fund research on drugs and attainuniform drug testing rules and procedures hasbeen languishing, and the sport should take advantageof the current recognition and publicity ofthe milkshake mess to get moving with it. Therehas been enough committee discussion leadingnowhere, and now is the time for action, not talk.It is not likely that there will be any better timesoon, for horsemen and regulators alike have theproblem clearly in front of them with articles liketoday’s big Times spread.LATE AFTERNOON IN FLORIDAThe sun hasn’t quite set on slots legislation inFlorida, but it is late in the day, and the presidentof the Florida Senate, Tom Lee, is quotedas saying, “the slot machine bill has a very unlikelychance of passing. I see an end game, Ijust don’t see a very pretty one.” Lee told theMiami Herald. “I think the chambers are toofar apart, and there’s some deeply held philosophicalbeliefs that I think are going to makeit difficult to move this legislation unless someonereally blinks.” As of press time,there was no sign of blinking.Putting aside that Broward county votersMay 2, 2005twice have expressed a wish for slots, as thelegislators have, they are deadlocked overwhether to allow bingo style machines alreadyin use at the state’s Indian casinos, or Las Vegasstyle slots, which the Indians want if thetracks get them; over how many machines ateach track, the House opting for a 3,000 limit,the Senate setting none; over taxes, the Housewanting a 55% tax, the Senate 30 to 35%; andover where the tax would go, the House wantingit for buying computers and other schoolneeds, the Senate wanting it spent exclusivelyon building new schools. With slot hopes dimmingand Florida runners prominent in theDerby picture, Richard Hancock, executivevice president of the Florida ThoroughbredBreeders and Owners Association, mused,“Wouldn’t that be ironic? We win the Derbyand lose the thoroughbred industry.”NOW ITS LEWIS AND PEGRAMEd Allred, owner of Los Alamitos, may have decidedhe’s too old to mess with buying HollywoodPark, but McDonald’s tycoon and horseowner Mike Pegram -- who was going to beAllred’s partner -- has found a new one. He andmajor owner Bob Lewis, who made his money inthe beer business, have formed a partnershipand will try to race thoroughbreds at LosAlamitos if Churchill Downs decides to sell ordevelop Hollywood Park. Pegram and Lewis aretalking about leasing Los Al for seven years,with an option to buy, and adding runners to thequarter horse menu at the Orange county track.Lewis said it would cost more than $40 millionto convert the plant to thoroughbred racing, butcalled the potential in heavily populated andprosperous Orange county “limitless.” He saidit would take industry cooperation, but said “everybodyrealizes that Southern California needsa shot in the arm and this could be the opportunityto give it that.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondMay 3, 2005Stanley F. Bergstein, EditorTOTAL VICTORY IN NEW YORKThe Court of Appeals, New York’s highest court,ruled 5-2 yesterday that VLTs and Indian-ownedcasinos are legal and constitutional. The total victorywas hailed by all in racing, and by SenateMajority Leader Joe Bruno, who said, “They gotit right.” The decision overturned that of the AppellateDivision, which had ruled last year that theVLT law violated the New York constitution’s provisionthat all net proceeds from VLTs should goto education. Judge Carmen Beauchamp Ciparick,writing for the majority of the Court of Appeals,wrote, “These moneys are not a separate deduction,beyond other costs and expenses, from theamount paid to the racetracks as a vendor’s fee.Rather, they constitute simply a part of the vendorfee itself -- but a part whose use the state hasdecided to regulate.” The decision should eliminatethe last obstacles to construction of majorracinos at Yonkers Raceway and Aqueduct, andincrease chances of Vernon Downs being acquiredand reopening. Even Cornelius Murray, the Albanylawyer who has been the prime antagonist inattempting to overturn the VLT legislation,acknowleged defeat on that issue. “This is probablythe end of the line on VLT and Mega Millionsissues,” he told the Associated Press. Hedid say, however, that he was considering an appealto the U.S. Supreme Court on the Indian casinoportion of the decision, since they are authorizedby federal law. The full New York decisioncan be seen on HTA’s Web site home page,www.harnesstracks.com.HOPE SPRINGS ETERNAL, ETC.The Oneida Indian Nation must be one of the mostoptimistic groups in America. Although the U.S.Supreme Court voted 8-1, in a decision on a localmatter that had national implications, theOneidas say they will ask the high courtto re-hear the case. Legal experts saysuch reconsideration is rare.A NEW DAY: DUTROW GETS 120With the awareness of illegal medication problemsin racing spreading, regulators are becoming morestringent in their use of their power. The latestexample is well-known thoroughbred trainer DickDutrow Jr., who was suspended for 120 days andfined $5,000 after dropping his appeals on threecharges against him, two for medication violationsand one for an illegal claim. The illegal claim involvedowner Sandy Goldfarb, who also owns harnesshorses. Sixty days of Dutrow’s suspensionwill be stayed and discharged if he does not commitany significant violation of board rules, whichwould seem difficult if he is not racing horses.New York Racing and Wagering Board spokespersonStacy Clifford said of the suspension, “Theboard continues to take a firm stance against inappropriateuse of equine drugs and believesstrongly about holding people accountable fortheir violations.” Well, yes, but if you say 120,you might mean it. Three violations would seemenough.NUMBERS PLEASE IN NJIt took a long while to get connected, but telephoneaccount betting finally got underway inNew Jersey today. Meadowlands senior VPDennis O. Dowd said, “Technically, everythingis running smoothly. We’ve already exceeded3,000 accounts, and we’re projecting handle ofmore than $35 million for 2005, which is 20%beyond our expectations.” Betting is not limitedto New Jersey races, but includes all incomingsimulcast signals offered by NewJersey’s three tracks, so the program is readyfor Kentucky Derby weekend, as Dowd hadpromised.JENNA’S CHOICE INJUREDJenna’s Choice, winner of all three finals leadingup to Saturday’s $225,480 Berry’s Creek at theMeadowlands, broke a rear pastern in lastweek’s prep victory and is out for the year.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorNO TICKEE, NO LAUNDRYThat was one of the earliest business slogans theeditor remembers as a kid, and it is the same messagethat Magna Entertainment sent to Marylandyesterday. Jim McAlpine, now vice chairman forcorporate development of Magna, let Marylandknow that without slots there is little likelihood ofany further improvements at Laurel and Pimlico.“We’re weighing very carefully what’s happenedin Maryland, and we could, frankly, stopinvesting any significant sums at this stagebecause we’ve done the most important piece,which was to get the racing assets of Laurelfixed up,” McAlpine said in a conference calldiscussing Magna’s first quarter results, whichshowed a $4.1 million loss. McAlpine saidMagna hopes to build a racino at The Meadows,and in discussing plans he said -- withoutmentioning Pimlico or Laurel -- that options forraising cash included the sale of real estate andother assets. The Baltimore Sun reported thatone member of the Maryland Racing Commission,Terry Saxon, has said he is part of a grouplooking into the feasibility of making an offerto buy the two tracks. Saxon was quoted assaying that his group wants to look at the financialdata and “perhaps a few weeks afterthe Preakness, make an offer.” Magna executiveJim Gagliano said the company has spentsome $38 million since buying controlling interestin the Maryland Jockey Club in 2002,$20 million of that spent rebuilding the dirt andturf tracks at Laurel, and the rest spent on improvementsat Pimlico including dining roomupgrades, landscaping and a brick column perimeterfence. The Magna announcement yesterdaycame as no surprise to Gov. RobertEhrlich Jr. A spokeswoman said, “It’s saddeningnews, but not surprising, as this is the resultof inaction. The governor has foryears warned of dire consequences andramifications of not passing a slots bill,May 4, 2005and today those warnings came to fruition.”One anti-slots legislator, Baltimore DemocratCurtis S. Anderson, called the Magna announcementan “empty threat.” He may think Magna isbluffing, but we don’t, and it’s that kind of legislativethinking that has brought racing in a state thatonce prided itself of a great racing tradition to thesad state in which it now finds itself.PENNSYLVANIA THINKS BIGWhile Gov. Ehrlich faces the diminution of the racingindustry in his state, Gov. Ed Rendell in neighboringPennsylvania is talking very big dollars. Hepredicts that when slots are fully operational inthe Keystone state, they will produce $1 billion ayear for the commonwealth. His projections, however,are being challenged by academics and others,who point out that no state -- Nevada included-- reaps that large a bounty on slots. While Nevadacasinos made $10.6 billion last year, the statecollected $887 million, and that was the highestanywhere. Illinois picked up $802 million on $1.7billion of wagering, by taxing its casinos as high as70%. There may be skepticism, but it certainly isnot evident in Gov. Rendell’s office. His presssecretary, Kate Phillips, says “We are confidentthat we’ll not only reach $1 billion, but that we couldreach more than that.”JUNE START FOR YONKERS?With the legal obstacles now cleared away, YonkersRaceway is finalizing its financing and expectsto close on its loans next month, and possiblyeven start on construction before June is over.General manager Bob Galterio says racing will besuspended for five months for construction, andanother five months will be required to completeconstruction of the $175 million Empire City racinoat the track. The plan includes 5,500 VLTs, newrestaurants and entertainment facilities. One remaininghurdle is how much the city of Yonkerswill get.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor May 5, 2005NO DOUBT AT THE ISLENEW MAINE TRACK ON COURSEThere may still be doubt in the Florida legislature A legislative committee in Maine yesterday overwhelminglybacked a plan for a new harness trackas to the form slots in Broward county will takewhen the session closes tomorrow night, but there and racino “Down East” in the state’s Washingtoncounty. The Legal and Veterans Affairs com-is no uncertainty at HTA member Pompano Park.The track announced today that it will start constructionwithin two weeks on a 157,000 square-Indians’ plan. The bill still faces votes in the Housemittee voted 9-1 to support the Passamaquoddyfoot building that will hold as many as 2,000 slots, and Senate, and strong opposition from Maine’sand a Pompano Beach city building official confirmedthat approval of the permit to build it is Baldacci, who opposes an expansion of gambling,Casino No! anti-gambling group. Gov. Johnnear. Approval for the site plan of the $1.6 millionPhase I of the project was approved by the were to pass. As approved, the Passamaquoddieswould not say whether he would veto the bill if itPompano Beach Planning and Zoning Board last would operate the track and share their slot revenueswith Maine’s three other tribes.week. Pompano general manager Dick Feinbergsaid the new racino “is going to be gorgeous.”CAL BOARD BILL APPROVEDOn the opposite coast, the CaliforniaAssembly’s Committee on Governmental Organizationapproved, after what the San DiegoUnion-Tribune called “heated debate and noisyopposition,” a bill that would restrict horseownership by members of the California HorseRacing Board. The committee approved, onan 8-5 vote on strict party lines -- Democratsfor and Republicans against -- a bill that wouldprovide that no more than four of the board’sseven members could have any financial stakein horse racing. There is no current limit, andfive members of the board presently own horses.Neither side was happy with the result of thevote, and both agreed to continue negotiatingthe content of the bill before it is sent to theAssembly floor for an up or down vote. Thecommittee’s chairman, Jerome Horton ofInglewood, said after the vote, “What a monster.”Speaking of monsters, no word from TheTerminator yet on where he might stand on theproposal, which might have been inspired as apayback for remarks by commissionerand horse owner Richard Shapiro aboutthe Jockeys’ Guild.THE SLOW WHEELS OF JUSTICETrainer Noel Daley got another extension ofhis pre-trial hearing on medication violationsin New Jersey yesterday, when the prosecutionasked for a postponement because a laboratoryhas not completed its analysis of itemsfound in Daley’s barn following a search March2. Prosecutor Mark Tarantino said it could beanother month before the tests were completed.In North Dakota, three months after a jury convictedRacing Services and it owner, SusanBala, the government still has done nothingabout the promised guilty plea of Gary Storm,the former CFO of the company. An assistantU.S. attorney, asked why by Fargo’s InforumNews, said he was “not at liberty to say whythe guilty plea hasn’t been filed at this time fora number of reasons.” Ms. Bala, meanwhile,has had her sentencing postponed until July 14to allow for more pre-sentence investigation,but the federal judge in the trial denied hermotion for acquittal. Her former partner inRacing Services, Raymundo Diaz Jr., pledguilty to three felony counts in return for alighter sentence, and is to be sentencedMay 20.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTHE AMBIVALENT MAYORMartin O’Malley, the mayor of Baltimore, lashedout Wednesday of this week at the governor ofMaryland’s leadership on juvenile justice issues.A day later, he lauded Gov. Robert L. Ehrlich Jr.’sfailed efforts to get slots at tracks. Speaking atan event promoting the May 21 Preakness,O’Malley said critics had questioned the moralityof Ehrlich’s position on slots, but he asked,“Where’s the morality of doing away with 18,000racing jobs? The Preakness is Baltimore’s versionof the Super Bowl. We need to rise abovepartisan politics.” O’Malley is expected to runfor governor next year, and you might think thegovernor would have asked, “Where were youwhen I needed you?” Ehrich’s response, or atleast that of his spokeswoman Shareese N.DeLeaver, was far more original. “The mayorhas flip-flopped on this issue, expressing quasioppositionand quasi-support for months, if notyears,” she said. “If Mayor O’Malley truly is aproponent of slots, then he needs to be a workhorse,not a show pony.”THE AMBITIOUS GOVERNORThe governor of New Jersey, Richard Codey, is aracing man from way back. So, using a spokeswoman,as did Gov. Ehrlich, he was quick to takethe offensive yesterday after New York’s Courtof Appeals upheld VLTs there. Kelley Heck ofCodey’s staff said the New York decision madeit “imperative” for the state to take action andpermit 5,000 slots at the Meadowlands. Codeybelieves that some $550 million could be raisedif the slots were installed, and state senator PaulSarlo, whose district includes the Meadowlands,has introduced a bill to permit VLTs at the track.Sarlo hope to get support for the plan when budgetnegotiations begin next month, but he andthe governor will be facing the BeachBoys, the casino crowd from AtlanticCity, who bitterly oppose the idea.May 6, 2005SCIOTO, BILLINGS OPEN TONITEScioto Downs opens for its 46th racing season tonight,with a pre-race concert and a meeting thatwill run through Sept. 24. Among features plannedfor the meeting is a one dollar Pick 7 on races threethru nine, an innovation for Scioto.At Pompano Park in Florida, one of harnessracing’s great strengths -- amateur driving -- willbe featured as the C.K.G. Billings Amateur DrivingSeries gets underway. The series, open to allamateur drivers 18 or older, will continue for sevenmonths at 49 racetracks in the U.S. and Canada,culminating with a $45,000 Gold Cup final at theMeadowlands Nov. 25.Pompano publicist Steve Wolf captured the spiritof the series eloquently in the lead of his releaseon tonight’s opening. It reads, “What do an embroiderer,two business executives, a doctor, acar detailer, a salesman, a real estate investor, amaintenance supervisor, a food distributor and aventure capitalist all have in common?” Theseare the true professions of the ten harness racingdrivers who will be competing tonight at PompanoPark in the opening round of the 24th seasonof the C.K.G. Billings Amateur Driver TrottingSeries.” All drivers in the series must nothave taken compensation for driving for the past10 years, and all donate their 5% driving commissionto the Harness Racing Museum and Hallof Fame in Goshen, NY.Former Denver Bronco wide receiver TonyKimbrough, now driving harness horses professionally,won his first race at Hoosier ParkWednesday night. Kimbrough drove the pacerBark Bark -- his first pari-mutuel horse -- to a1:54.4 victory. Hoosier, incidentally, had the highesthandle in its harness racing history last Saturday,when $1,736,485 was wagered on the 15-race card featuring the $200,000 Dan PatchPace.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorHUGE NUMBERS AT DERBYWhatever other troubles horse racing may have,the Kentucky Derby is not one of them. Its numbersSaturday were staggering: 156,435 people,a $102.60 winner, and the biggest handle ever inNorth America for a single racing program. Thattotal came in at $155,133,631, and was up almost9% from the previous record set just last year. Ofthat total, $133,016,465, or 85.7%, was bet offtrack,not too far off the national average.Churchill bet $22,117,166 on the 12 race card, upalmost 15% from last year. Betting on the Derbyitself from all sources was $103,325,510. Here isa breakdown of the numbers.Attendance this year, 156,435, last year 140,054,up 11.7%.On-track betting on the Derby, $10,055,508, lastyear $9,488,539, up 6%.On-track betting on the entire card, $22,117,166,last year $19,246,210, up 14.9%.Off-track betting on the Derby, $93,270, 002, lastyear $89,875,549 this year, up 3.8%.Off-track betting on the entire card, $133,016,465,last year $123,602,079, up 7.6%.Total all-source betting on the Derby,$103,325,510, last year $99,364,088, up 4%.Total all-source betting in the entire card,$155,133,631, last year $142,848,289, up 8.6%.In addition to those numbers, 111,243 showed uplast Friday for the Kentucky Oaks, breaking theold record of 106,156 set in 2000. On- track bettingrose 9.4%, but all-source betting declinedslightly, down 1.3% from all -sourcebetting on the Oaks card last year.May 9, 2005“AN INSULT TO THE VOTERS”That was how Dan Atkins of Hollywood GreyhoundTrack characterized the Floridalegislature’s shilly-shallying on promulgatingrules for slots at Broward county’s four tracks.Voters in Broward twice expressed their desireto have slots there, but the legislature, whichaccomplished little of Gov. Jeb Bush’s agenda,did heed his expressed opposition to gamblingand let the matter die without a vote in theHouse after the Senate passed a bill with a 35%to 55% sliding scale tax on slots. State senatorSteve Geller, who led the fight for slots at tracks,said, “At the end of the day, the governor wasthe heavyweight in the slot debate. The Househas a history of following the governor’s lead onissues, and the governor was very outspokenabout slots”. The people were too, but theirgovernor wasn’t interested in what they weresaying. The tracks have not made a decision onwhether they will go to court seeking relief.NO NUKES, SEATRAIN DIETwo big names in the harness racing equine worldhave died. No Nukes, one of a few stallions ofany breed to sire winners of over $100 million,died yesterday afternoon at Hanover ShoeFarms in Pennsylvania. His sons and daughtershave won $123.2 million, ranking him thirdamong all standardbred stallions behind Albatrossand Abercrombie. He was 26.Seatrain, winner of the 1975 Little Brown Jug,died Saturday night at his retirement home atthe Rockin T Equine Rescue in Maine. He becamethe first gelding ever to win the Jug, andwas 33.LAKES REGION SURRENDERSThe owners of Lakes Region Greyhound Park inNew Hampshire, caught up in illegal gamblingcharges in January, have surrendered theirlicense.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor May 10, 2005WHAT FEATURES CAN DORegular visitors to this site know the editor’s passionfor solid features and what they can accomplishin coverage, and Saturday’s KentuckyDerby and its bizarre payoffs provided the bestpossible examples. Here are a few:REGULATORS: FRIEND OR FOENew York Times columnist Thomas L. Friedman,in his latest book “The World Is Flat,” makes thepoint repeatedly that technology and theInternet have changed the world, that boundariesno longer exist with meaning, and that those whodo not learn this lesson will fall irretrievably behind.Racing and its regulators are not exempt.It is imperative that the people who control racing,whether state racing commissions in theUnited States or federal regulators in Canada,come to realize that this is not their fathers’ orgrandfathers’ pari-mutuel world. A case in pointis the current controversy in Canada, where Canadiantracks, hoping to start common pool bettingwith Hawthorne and Balmoral and Maywoodin the Chicago area, have received approvalfrom the Illinois Racing Board but have beenrebuffed by the Canadian Pari-Mutuel Agency,which regulates pari-mutuel wagering in Canada.Steve Mitchell, Woodbine Entertainment’s seniorVP and CFO, alluding to the CPMA’s mandate“to protect the wagering public againstfraudulent practices, thereby helping to maintaina viable racing industry,” says CPMA mustbe accountable to the Canadian public. He saysCPMA should “get on with U.S. common poolsusing the principle of ‘host tracks rules apply’or tell the public what fraudulent activity theyneed protection from.” Woodbine has taken outfull page ads in Daily Racing Form inviting itscustomers to call, fax and e-mail governmentofficials urging them to give Canadians accessto U.S. pools, and has invited the CPMA to a‘town hall’ meeting to listen to Woodbine’s customersfirsthand. CPMA’s ambiguity is confusing.It allows commission vets to administeranti-bleeding medication in detention barns withoutnotifying the public which horses aretreated, but it won’t allow common poolwagering. Who’s protecting whom fromwhat?The hard-to-believe story of one of the seven winning$1 tickets on the Derby superfecta, worth$864,253.50, being lost by a bettor and then foundby a mutuel clerk at Turf Paradise. After the bettorand track employees sifted through all of thegarbage bags in the clubhouse, naturally with noluck, a mutuel clerk named Brenda Reagan, informedthat her machine had produced asuperfecta winner, said she noticed two ticketslying next to her machine. One was the winner.The huge coverage in New York and New Jerseyon the two friends handicapping in the Meadowlandsparking lot who tossed out the “figs” andpicked by names and hunches, and came up withone of the $864,254 winners. Meadowlands PRdirector Carol Hodes, off on Monday, left wordfor the mutuel department to notify her if the winnersshowed up. They did, and Carol interviewedthem by phone, wrote a release, and the storyexploded all over the place.Betting volume. It broke records all over theplace, and a good example was HTA associateCapital OTB in Schenectady, NY, which receivedone of its biggest positive stories ever in the AlbanyTimes Union with the its $3 million day, biggestone-day handle in its 33-year history.And then there was Kentucky. With all of thegrievous problems facing racing, the KentuckyRacing Authority got coverage by postrace worryingabout advertising on jockeys’ pants. If that’ssuch an overriding issue (no pun intended) itseems that it could have been checked out prerace,and offenders ordered to change theirbritches, saving the bruhaha.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTHE COUNTY RISETH UPBroward county, Florida, is home to four parimutuelfacilities: HTA member Pompano Park;Gulfstream Park; the Hollywood GreyhoundTrack; and Dania Jai Alai. The citizens ofBroward have voted -- twice --that they approveof those tracks having slot machines. The legislature,ignoring their wishes, disagreed. NowBroward county commissioners, feeling the legislatureabdicated its responsibility to make rulesand regulations for installation and regulation ofslots, is exploring the possibility of seizing theinitiative and doing it on their own. The commissionersasked their attorney yesterday to researchtheir authority to oversee industry slots,and will consider next week whether to begindrafting restrictions covering slot payouts, numberof slots and hours of operation of the machines.The commissioners expressed concernthat if the tracks and fronton sue the state and ajudge rules in their favor, there could be unregulatedgambling. The commissioner who made themotion, Irene Lieberman, said, “If they (thetracks) are successful in a lawsuit because thestate did nothing, there will need to be regulations.I don’t want to see it operate unregulated.”The South Florida Sun-Sentinel’s Scott Wymanwrote, “While a court could authorize the parimutuelsto offer slots, election law experts doubtwhether judges have the authority to spell outtaxes or regulations.” When the tracks andBroward county met earlier this year to deal withextra costs of law enforcement and governmentservices should the racinos be approved, thetracks agreed to allow the county to regulate slotsif the state did not do so. They still hold to thatposition, their lobbyist Ron Book saying, “We’vealways said we are for responsible regulation.”The Seminole tribe, which has a stake in all ofthis, says it will wait to see what happensbetween the pari-mutuel industry and thestate before it makes any moves.May 11, 2005FOUR WIN, SIX LOSE IN IOWAThe Iowa Racing Commission met this morningafter months of deliberation and settled the issueof winners and losers on 10 applications fornew riverboat casinos in the state. The four winnerswere Wild Rose Emmetsburg/Palo AltoCounty Gaming Development in Emmetsburg;Diamond Jo Worth/Worth County DevelopmentAuthority in Worth county; IOC Black HawkCounty/Black Hawk County Gaming Associationin Waterloo; and Washington County CasinoResort/Washington County Riverboat Foundationin Riverside.Losers were six groups that had hoped to havegambling boats in Fort Dodge; a second grouplooking for a license in Emmetsburg; one inFranklin county; two other groups in Waterloo;and one in Ottumwa.OPEN LETTER FROM WOODBINEIn an open letter to its customers, Woodbine Entertainmentoutlined its grievances with the CanadianPari-Mutuel Agency that regulates parimutuelin Canada. The two have been negotiatingfor six months for approval of common poolwagering with U.S. tracks, Woodbine seeking theU.S. formula that “host track rules apply.”CPMA refuses to accept that position, insistingthat U.S. tracks must remove all teller canceldelays across their networks before letting Canadianswager into those pools. The CPMA alsowants Canadian tracks and teletheaters to provideup-to-date wagering rules for every commonpool jurisdiction for all customers to accesson an immediate basis, and insists U.S. hosttracks advise Canadian tracks, who in turn mustadvise their customers, of any change in wageringrules before implementing them. Woodbineis asking its customers to sign petitions sayingthey are prepared to accept the “hosttrack rules apply” idea.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWILLMOT, FIRLOTTE TO HALLDavid Willmot, chairman and CEO of WoodbineEntertainment and a former president and chairmanof HTA, has been named to the CanadianHorse Racing Hall of Fame, along with veterantrainer Stew Firlotte. Willmot, a respected leaderin both thoroughbred and harness racing in NorthAmerica, has had a huge impact on racing with hisinnovative and progressive ideas and his pioneeringenterprise in turning Woodbine in Toronto intoone of the premier racetracks and racinos on thecontinent. He and his father D. G. Willmot builttheir Kinghaven farms into one of Canada’s leadingthoroughbred breeding and racing operations,and David currently owns one of harness racing’stop pacing fillies, Cabrini Hanover, and also racedthe champion trotting filly Southwind Allaire withhis partner Bob Anderson.Stew Firlotte began his racing career as a groom35 years ago. He opened his own public stablesix years later, in 1976, and over the years hasdeveloped such standardbred standouts as TownPro, Historic, His Mattjesty, Brees Brief, StrongClan and Rare Review. Also named to the hallare the outstanding trotting stallion Garland Lobell,sire of the winners of more than $46 million withaverage earnings of $75,770; the trotter GlorysComet, first $2 million winner in Canadian harnessracing; and the pacing star and stallion ArmbroOmaha. Also entering the Hall Aug. 25 will be thethoroughbreds Norcliffe, Cool Reception andAnita’s Son.$4.1 MIL FOR LAKES REGIONThree New England businessmen plan on buyingbesmirched Lakes Region Greyhound Park in NewHampshire for $4.1 million. David Johnston, adeveloper, and hotel chain owner, ChristopherGistis and his son Glen -- all without racingexperience -- hope to “make the trackprofitable and respectable.”May 12, 2005POSITIVE DERBY FALLOUTThe huge payoffs on last Saturday’s KentuckyDerby produced positive aftershocks in a numberof harness racing locations. The Meadowlands’exceptional metropolitan coverage was outlinedyesterday, and nearby Freehold Raceway reporteda spectacularly successful press conference on atrio of partners who bought one of the seven nationalwinning $864,253 superfecta tickets at thetrack last Saturday. Publicity director Don Bielakcalled the turnout “huge,” especially in broadcastcoverage, where CBS New York, Fox 5 New York,News 12 New Jersey and ABC in Philadelphia allsent TV crews to cover the winners, Mark Maddenand his daughter Lisa from Morganville, NJ,and Lisa’s boyfriend Alex Corrado of Hoboken.The three gave their handicapping secrets free:Corrado used Afleet Alex because it was his namesake;he simply liked the sound of Giacomo;Madden liked Don’t Get Mad because it was partof his name; Lisa said she just kept hearing arace call in her head that said, over and over, “Andhere comes Closing Argument.” Now you knowhow to pick an $864,253 winning ticket.At Pocono Downs’ Hazleton, PA, OTB outlet, aregular patron bet $24 on a $4 triple box on theDerby, and won $266,269. “Unlike the lottery,”he said, “I only had to pick three numbers to winthat amount on the Kentucky Derby.” The numberswere 10-18-12. Two other patrons at TheDowns at Hazleton each had winning $66,567.40tickets on the Derby, one betting $36 on a 10-all-12 and the other betting $342 on a 10-all-all. Thefacility had its biggest day, and its manager, MikeZullinger, said, “We have a lucky site here andastute patrons.” John Zimich, Pocono’s publicitydirector, agreed, noting that the three lucky bettorstook home almost $400,000 and more thanhalf a million dollars was paid out at Pocono andits off-track betting facilities. There were 18winning exactas sold.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorKY TAKES BIG STEP ON DRUGSThe Kentucky Equine Drug Council, meeting yesterday,unanimously approved stringent new recommendationson penalties for illegal medicationviolations in the state. The recommendations willbe forwarded to the Kentucky Horse Racing AuthorityMonday for final approval. If they are approvedas recommended, Kentucky would leap tothe forefront as a medication leader in the UnitedStates, a far cry from its much maligned formerposition as the bastion of permissiveness. ConnieWhitfield, chairwoman of the drug council, acknowledgedthe change, saying of the new recommendations,“I think Kentucky, around the country, isbeing perceived as being the leader that we areand should be.” The eight members of the drugcouncil, appointed by Gov. Ernie Fletcher, earlierrecommended rules similar to those of the RacingMedication and Testing Consortium on limitingrace day medication. The proposed rules makepossible suspension of horses as well as trainers,thus extending the penalties to owners, but the ruleslimit those penalties to protect owners who claimnot knowing their trainers were using illegal substances.Owners are merely alerted for first offenses.The proposals would provide stewards discretionto force trainers to give up care of horsesunder their care who test positive for illegal drugs,rather than allow them to switch their care to associatesor family members. Revocation of licenseis included in the penalty schedule, and thoroughbredtrainer John Ward, a member of both the Kentuckydrug council and the Racing Medication andTesting Consortium, said, “I hope other statesadopt these kinds of rules.” In an indication thatother states are taking medication violations farmore seriously than previously, Delaware has finedtrainer Chris Height $5,000 and suspended himfor five years for illegal medication of a filly in hiscare.Although Height indicated he will appeal,no stay will be granted pending the appeal.May 13, 2005Following commission hearing for the offense atHarrington Raceway, Height was arrested by animalcontrol officers with the Society for Preventionof Cruelty to Animals (SPCA) and DelawareState Police, and charged with cruelty to animalsand cruel mistreatment. Two veterinarians testifiedthey doubted the filly would live through thenight involved. She survived, although the owner,Howard Levine, refused to allow the commissionto have her treated, at which point the state tookcustody of the filly and treated her.YOUBET GETS WASHINGTON OKYoubet.com, in a unique bargaining arrangement,received approval yesterday from theWashington Racing Commission to acceptInternet online bets from Washington residents.What made the deal unique was a paymentof $400,000 to the state to compensateit for wagers Washington says Youbet acceptedillegally from residents last year. Thechairman of the Washington commission,Gary Christenson, rejected the notion thatregulators were ignoring, or even rewarding,illegal activity. “It’s almost the opposite. Bygiving Youbet.com a license, we are insuringthat the state of Washington is getting themoney that’s due it.” Ron Crockett, ownerof Auburn Downs, Washington’s only majorracetrack, supported Youbet’s license application,and Youbet’s attorney, Scott Solomon,indignantly rejected the notion that Youbethad broken Washington state law. “Any activitythat we have or haven’t been doing hasbeen with the full knowledge of everyone inthat room,” Solomon said, and added that theracing commission had never told the companyto stop taking bets. He said Youbet appliedfor a license even though it does notbelieve Washington has the authority to regulateinterstate Internet gambling. TVGand XpressBet already are licensed inWashington.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorLAST CHANCE MOVES IN MD,FLTrack managements in Maryland and Florida, rebuffedby legislatures in those states, are takingfinal shots at changing the outcome and gettingslots.In Maryland, Dennis Mills, a vice chairman ofMagna Entertainment, met with Gov. Robert L.Ehrlich Jr. and Senate president Thomas V.Mike Miller -- both advocates of slots at tracks-- and appealed to the man who stopped slots,House Speaker Michael Busch. Busch skippedthe meeting, saying he had a prior commitment,in effect nullifying Mills’ trip to Maryland. TheBaltimore Sun reported that the governor andMiller emerged from the session saying they fearthat Magna will pull out of Maryland and takethe Preakness, the state’s biggest racing attraction,with them. Mills denied that his visit wasto make threats, but he did warn the leaders inAnnapolis that Magna shareholders were growingtired of losing money in Maryland. If Mills’visit was to encourage the governor to call aspecial session of the legislature, that seemsunlikely. The governor says he would like to doso, but won’t unless he, the Speaker and Senatepresident can agree on a bill. That possibilityseems remote, since Busch called the Mills’ visit“a big set-up.” He said the governor and Senatepresident were trying to blame someone elsefor the fact that they didn’t take the bill that theHouse had passed, which was unacceptable tothem. Mills said that Magna would have acceptedeither the House or Senate version.Mills was not the only supplicant for reconsiderationof the slots issue. The Maryland RacingCommission offered to meet with state politicalleaders to discuss the situation, calling it“very dire.” Speaker Busch had negativeviews on this, too, telling the WashingtonPost he wondered what took thecommission so long to express its opinions.May 16, 2005In Florida, the four tracks in Broward countywere preparing to play a longshot: going tocourt to force the legislature to act on the slotsissue that voters in the county have twice approved.Constitutional scholars were not supportingtheir bet. An amendment passed lastNovember requires the legislature to producerules and regulations for slots in Broward byJuly 1, but one constitutional law authority, DexterDouglass, put it about as bluntly as possible:“The legislature thumbed their nose at the Constitution,which is not unknown to this group.”Douglass agreed that in light of the default onthe part of the legislature, the only remedy wasfor the tracks to go to court and contend that itshould intercede and direct how slots should beimplemented. He added, however, that the courtcould say, “We can’t do anything. The Legislaturedidn’t do its duty, so vote them out of office.”Jon Mills, dean emeritus and professorat the University of Florida’s Levin School ofLaw, said that although the slots amendmentappears to require the legislature to act, “Weall know in a very real sense you can’t necessarilycompel such action.” Mills, a formerHouse speaker in Florida, did add that there issome precedent for the courts to intervene whena judge has been convinced that the legislaturefailed in its duty, and that courts have orderedlegislatures to act, but not very often.A THREAT IN MAINE, TOOThe Bangor Daily News in Maine, under a headlinereading, “Bid to repeal slot machines worriesPenn,” reports that a movement to repeal the November2003 vote authorizing slot machines coulddelay Penn National Gaming from beginning workon its permanent racino at Bangor Raceway. Thepaper says anti-gambling and church groups aregathering signatures in an effort to bring the issueto referendum, most likely in November of 2006,and that movement could push Penn Nationalconstruction back from 2006 to 2007.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor May 17, 2005MAGNA GETS MICHIGAN OKMichigan Racing Inc., a fully-owned subsidiary ofMagna Entertainment, has been awarded the oneavailable racing license in the Detroit Metropolitanarea. Acting racing commissioner Christine C. White,in awarding the license, said, “After careful and objectivereview of the applications, I have reached theconclusion that Michigan Racing Inc. possesses themost comprehensive plan to bring Thoroughbred racingback to the Detroit area.” Her rationale included:Magna currently owns the property under considerationand its plans were the most detailedproposal;Magna has demonstrated the most public supportfrom residents, government officials and industryrepresentatives;Magna has a proven record of racetrack operation,currently operating 14 tracks;Magna has the financial wherewithal to build andoperate Michigan Downs;Magna has secured all local approvals in orderto apply for a building permit.Magna plans to commence thoroughbred racingon the 212-acre site in Romulus, about two milesfrom Detroit Metro Airport, by 2009.GET IN LINE FOR HOLLYPARKA dozen or so developers have submitted bids tobuy Hollywood Park from Churchill Downs Inc.,and Churchill’s investment bank, Lazard Freres,is expected to narrow the field to five top candidatesin the next few weeks. One bidder wasquoted by the Los Angeles Business Journal assaying, “Everybody threw their hat in. How manytimes do you get the opportunity to acquirenearly 240 acres of urban infill in Los Angeles?”Guesses on selling price rangefrom $200 million up.ISLE OF CAPRI TO SINGAPORE?They’ll be there, running a new integrated resortcasino complex, if a group called Eighth Wonderwins the competition to build it. The governmentof Singapore hasn’t chosen the winner yet, butEighth Wonder is one of the finalists and has signeda management agreement with Isle. Eighth Wonderis a privately held company whose founder isMark Advent, who created the New York New Yorkhotel in Las Vegas, and his partners includeStarwood Hotels and Resorts, whose brands includeSheraton, St. Regis, Westin and W hotels.Isle president Bernard Goldstein said managingfor the high-powered consortium “validates ourefforts to bring high-quality gaming and hospitalityto markets across the world.” Isle of Capri isthe owner of HTA member Pompano Park andwidespread casino holdings in the U.S. and offshore.FIVE SUSPENDED IN DELAWAREDelaware Online, a service of the WilmingtonNews Journal, reports that five harness racingdrivers have been suspended for drug violationsby presiding judge Allen Cook and the DelawareHarness Racing Commission in the past two andone-half months. The paper said the suspensionswere confirmed by John Wayne, executive directorof harness and thoroughbred racing. The fiveare Andrew (Bobby) Glassmeyer, who received a$3,000 fine and nine-month suspension for amilkshake violation; Darrell Lewis, who receivedthe same penalty for the same offense; KennyMitchell, Dino Episcopo, and John Veazy, allfined $500 and suspended 90 days and orderedto complete drug rehabilitation programs aftertesting positive for oxycodone, hydrocodone, andcocaine, respectively. In its most major recentpenalty action, the Delaware commission finedtrainer Chris Height $5,000 and suspended himfor five years, with no stay while any appealis pending.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorSTRONACH FRONT PAGE NEWSOnly this time it isn’t Frank. It’s his politiciandaughter Belinda. She was all over the front pagesof the Toronto Globe and Mail and all other papersin Canada after announcing, two days beforea critical budget vote that could bring down theLiberal government, that she was defecting fromthe challenging Conservative Party and joining theLiberals. The Prime Minister of Canada, PaulMartin, immediately named her to his cabinet, asCanada’s new Human Resources DevelopmentMinister, but all sources said it was not a quid proquo for her switch. The Conservative leader,Stephen Harper, was quick to acknowledge thather decision to accept the Prime Minister’s offerof a cabinet post did not help the Conservativecause. “Obviously,” he said, “Belinda’s actionstoday make the defeat of the government muchless likely.” For her part, Ms. Stronach left a strongjab, saying her former colleague was insensitiveto the concerns of women, urban Canada, andOntario, and that his plan to force an election willaid Quebec separatists. Prime Minister Martinsaid that while he was thrilled to be appearing withMs. Stronach, he was a little worried that when itcame to style he was going to suffer by comparison.Our opening sentence, on review, is not quiteaccurate. Belinda’s father also was front pagenews, but in Detroit, not Canada. He was picturedin the Detroit News smiling broadly afterMagna was awarded the only Detroit area licenseto operate thoroughbred racing at a new$100 million complex Stronach plans to build inRomulus, near Detroit’s Metropolitan Airport.Stronach told the paper’s R. J. King that hewasn’t deterred by falling revenue in Michigan’sracing industry, saying “it has been neglectedover many decades,” and saying he willpress ahead even without slots, butwould be happy “to take them if someoneoffered.”May 18, 2005LARKIN WANTS INTERNET BETSNew York state senator Bill Larkin, chairman ofthe Senate Racing, Gaming and Wagering Committee,was expected to introduce legislation todayto permit Internet wagering in New York state.Larkin said, “Other states are doing it, and we’regoing to lose” without it. Larkin’s counterpart inthe New York Assembly, Gary Pretlow, lent bipartisansupport of the idea by saying he agrees onInternet betting, hoping “to keep dollars in thestate.” Larkin and Pretlow conducted a widelypublicized joint legislative hearing on “The Futureof Horse Racing in New York” yesterday, whichjournalist Bill Heller wrote “was pretty much newplayers singing the same old song until racing lawexpert Bennett Liebman testified.” Liebman, appearingon behalf of the “Friends of New YorkRacing,” called sections of New York’s existingracing and wagering law“incomprehensible....Nobody knows what takeoutshould be...what decisions should be made by thelegislature and what decisions should be made bythe tracks, horsemen and the OTBs.” He said thecreation of an ad-hoc committee to solicit requestsfor proposals to operate NYRA’s three tracks ifNYRA’s current franchise is not renewed presented“a unique opportunity” to change NewYork’s racing laws.SETBACK FOR MN RACINOCanterbury Downs’ hope for a racino went up insmoke yesterday -- possibly for the rest of thisyear -- when an overnight defection left supporterswithout enough votes to pass the measure.Minnesota governor Tim Pawlenty’s office announced,“We lost a couple votes over the last 24hours and we no longer have enough votes to passthe bill today.” The bill would have set up a racinoand new tribal casino next door, creating a mini-Las Vegas strip with another Indian casino justdown the road, but supporters pulled the billrather than lose a vote in the House TaxesCommittee.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondMay 19, 2005Stanley F. Bergstein, EditorPROSPERITY 2-EDGED SWORDAtlantic City’s casinos and their legislative friendshave found another weapon in their fight againstallowing the Meadowlands to have slots. Goodtimes. South Jersey Assemblyman Jeff Van Drewsays now that the state has solved its budget problem,there is no need for Gov. Codey’s plans forslots at tracks. “It’s dead, buried and decomposing,”the casino’s good friend said. “This reallykills it.” The “this” he was referring to wasCodey’s announcement last week that state revenueshad surged by some $1 billion above previousprojections. Gov. Codey, however, did notagree with Assemblyman Van Drew. His officesays lottery terminals still are part of his budgetproposal. Codey faces opposition not only fromVan Drew but from the Assembly Majority LeaderJoseph Roberts -- another south Jersey lawmaker-- as well, along with other opponents who contendVLTs are slots and since slots currently arelimited to Atlantic City by the state constitution,voters would have to approve an amendment to itto allow VLTs at the Meadowlands. The state’sposition is that VLTs would be an extension of theNew Jersey State Lottery, and therefore exemptfrom the constitutional ban.CONGRESS TALKS DRUG BANSProfessional sports, which have messed aroundwith a lot of anti-drug talk but not much significantaction, was pulled up short in Washington yesterday.First, the NBA was told its testing policieswere so weak that a bill is being drafted that willfollow Olympic standards and provide for a 2-yearban for a first offense and a lifetime ban for a second.Then baseball commissioner Bud Selig, testifyingthat the game had taken “an abrupt aboutface”and that it was up to baseball “to take thenext step and that is to remove any doubt” aboutsteroid use and needed to do it as soon as possible“so we can quit talking about.” Selig’s commentsdrew comment from Rep. Fred Upton of Michiganthat, “You’ve come a long way,” but Selig was blisteredthis morning by New York Times writerGeorge Vecsey, who sarcastically began his columnwith, “Fightin’ Bud Selig, the People’s Choice,came out swinging yesterday. He was against steroids.He was against amphetamines. By golly,he was for what’s right. This new baseball commissioner,this man we’ve never seen before,vowed that baseball would turn back the forces ofevil, those illegally pumped, bulging-muscled,revved up players.”TRACK SLOTS FLOATED IN ILThings are not as rosy economically in Illinois asthey are in New Jersey, and the president of theSenate, Emil Jones of Chicago, thinks 20,000 newslot machines, including at Illinois tracks, wouldhelp solve the problem. Jones thinks they couldadd $580 million to the state treasury, and saidthey would not represent gambling expansion, butrather would provide current gambling facilitieswith more betting options. He floated that ideayesterday in budget discussions. The Senate minorityleader, Republican Frank Watson, lent b i -partisan support, calling horseracing “aviable industry in Illinois that needs somehelp.”Professional football, determined to keep its softballtouch, also was in Washington yesterday, withcommissioner Paul Tagliabue and NFL PlayersAssociation executive director Gene Upshaw discussingpending federal legislation. Tagliabue toldthe House Energy and Commerce subcommitteeconducting a separate inquiry into steroid use andproposed legislation that he “would respectfullyurge that it not be enacted into law in its presentform.”The hearings and the testimony should convinceracing that its current course toward more severepenalties is both proper and proactive, andneeds to move forward forcefully and withoutdelay.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor May 20, 2005BLACK TIE IS OPTIONALIf you are in Milwaukee tomorrow evening, ornearby, plan to stop in the Italian Community Center,where HTA’s longtime good friend DominicH. Frinzi will be receiving another high honorwhen he is installed as president of the NationalItalian Bar Association. Dominic has been aprominent Wisconsin attorney for more than 50years, and has served a record five terms aspresident of Milwaukee’s Italian CommunityCenter. He also is a past president of UNICONational, the UNICO Foundation and its Milwaukeechapter, and is a member of enough organizationsto fill the rest of this column. The JustinianSociety, an attorneys’ group, honored Frinziwith its Justinian Man of the Year award six yearsago, and three years ago he was honored withthe Order of Merit from the Republic of Italy.He has tried cases in every county of Wisconsin,ran for governor in 1964 and 1966, and is anationally renowned scholar of opera. He hasserved an unprecedented nine three-year termsas president of Harness Horsemen’s International,and won HTA’s Messenger Award, ourhighest honor, in 1993. He also has been enshrinedin harness racing’s Hall of Fame inGoshen, NY, and in the Illinois and Wisconsinharness Halls of Fame. HTA salutes him on hislatest national honor.MAGNA STILL HOPING IN MDDennis Mills, executive vice president of MagnaEntertainment, is in Baltimore along with a hundredthousand others for tomorrow’s Preakness.Unlike most of the rest of the throng, he will bereturning Wednesday. Mills has a meeting scheduledwith Michael Busch, the killer of slots, to seeif something can be worked out. Busch confirmedthe meeting, but said a special session of the legislatureis unlikely. Maryland’s governor, RobertL. Ehrlich Jr., made clear at yesterday’sPreakness Alibi Breakfast that he still hopes toget slots done. Speaking of Magna, he said, “Iknow that they’re hemorrhaging money in Maryland.I know it’s an uneven playing field, and Iknow they will make a decision (on leaving) at somepoint. The 112,000 people leaving here Saturdayneed to understand the stakes have been ratchetedup.” Michael Olesker, humorist of the BaltimoreSun, who last week wrote that “As everybodyknows, the average age of the serious horse-racingfan is 114,” was back at it again for thePreakness, writing that “The Alibi Breakfast feltlike the Last Supper,” referring to the concernsthat Magna might move Maryland’s premier racingattraction. Magna wasn’t saying that at theBreakfast, but others were. Chick Lang, the manwho played a large role in making the Preaknesswhat it is, said, “I see it happening. I think it’sgoing to Gulfstream Park.” Olesker, in his columnon racing age, said he bumped into two ofhis old high school teachers, both approaching 70,at Pimlico. “Among the thoroughbredhorseracing set,” Olesker wrote, “they have aname for 70-year-old men. They are called ayouth movement.” It makes funny copy, but100,000 or more of the 112,000 at the Preaknesswill be far under 70. Someone out there likes thesport. While watching the NBC Preakness telecast,watch for the Derby Superfecta winnerswho picked their winner on theMeadowlands parking lot.While we’re saluting, a tip of the hat to two ofthe sport’s worthiest women. Carol Cramer ofUSTA, who has handled the Stakes Guide sinceits inception in 1967 and is a steward and secretaryof the Grand Circuit, will be the 2005 LadyPace honoree at the Little Brown Jug meeting inDelaware, Ohio, Sunday, Sept. 18. And prolificharness racing author Marie Hill will receive theHarness Racing Museum’s Pinnacle Award forpress and public relations accomplishments atthe annual Hall of Fame Day dinner inGoshen, NY, Sunday, July 3.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorNYRA ZAPS 59 MUTUEL CLERKSAfter 89 mutuel clerks called in sick at BelmontPark on Preakness day, an angry NYRA fired 59of them for participating in an illegal job action.Under terms of the relevant collective bargainingagreement between NYRA and the mutuel clerks,15 days notice is required for any strike or jobaction. None was given Saturday, and Bill Nader,senior vice president of NYRA, said as late asFriday night Belmont was told no job action wouldbe taken. The absence of 89 of the 180 clerksscheduled to work the Preakness card left the9,221 on hand at Belmont irate over long linesand short tempers, and NYRA announced todayit would offer free grandstand admission and reducedclubhouse admission as a good will gesture.NYRA president and CEO Charles Haywardcalled the absenteeism “a blatant and illegalaction to embarrass NYRA on an importantrace day,” and said it was both disappointing anddisruptive. The clerks’ union chairman SalZammitto said the union did not sanction any typeof walkout or strike Saturday, and that all of theclerks who did not show up either called in sickor went to work the Preakness in Baltimore. Theclerks have been working without a contract sincethe end of 2003, operating under provisions of aprior agreement. Although Zammitto claimedNYRA backed out of an agreement reached threeweeks ago that he said had been signed by bothparties, Nader denied that. He also said therewere “hundreds” of people in training to be mutuelclerks and 800 would be working for the Belmonton June 11.MAGEE 5TH TO REACH 10,000Dave Magee, HTA’s Driver of the Year in 1994and a winner of more than 200 races for 27 consecutiveseasons on the Chicago circuit, joinedHerve Filion, Cat Manzi, Walter CaseJr. and Dave Palone in the exclusive10,000-win club at Balmoral Saturdaynight.May 23, 2005STRANGLES AT INDY DOWNSHTA member Indiana Downs, currently in themiddle of its spring thoroughbred meeting, hasquarantined its receiving barn for the remainderof the session that runs through June 18 after anoutbreak of the highly contagious respiratory diseasestrangles. General manager Jon Schustersaid, “Our concern is for our equine athletes. Thehorses and their safety have been considered inevery decision that has been made and will continueto be our primary concern.” The track andthe Indiana HBPA have made alternate arrangementsfor receiving horses.OHIO VOTERS NOW LIKE SLOTSOhioans voted down slots in 1990 and 1996, but aCleveland Plain Dealer poll now shows that 55%of voters polled say they favor Cleveland mayorJane Campbell’s effort to change the Ohio constitutionto let the state’s major cities decide if theywant casino gambling. The telephone poll covered1,500 voters, and revealed that one third of therespondents had gone to another state to gamblein the last year.MARINO, JEWELS & POMPANOCity and Shore, an up-upscale magazine whose sloganis “Savoring the Good Life in South Florida,”and is about as posh as publications get, featuresDan Marino enjoying the good life on thecover, pictures of Donald Trump’s new$41,350,000 home in Palm Beach inside, and,opposite the inside back cover, a full page featureand great picture of Pompano Park. Thearticle, by Stuart McIver, tells of Pompano’s historyfrom 1926 to the time Francis and Fred VanLennep bought it and rebuilt it in 1964, and showsthe track as it looks today. The article concludes,“The vote in favor of slot machines in Browardcounty will bring big changes again to thetrack...and, more than likely, a big crowdagain.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMORE TROUBLE FROM KYLArizona senator Jon Kyl is at it again, proposinglegislation that could be disastrous for racing.This time it is called “The Unlawful InternetGambling Enforcement Act of 2005, and accordingto the headlines on this morning’s “MarketWatch” of the Wall Street Journal, there are notrack exemptions in this latest Kyl attack. Thestory, written by William Spain, says the draftlegislation was spurred by the World Trade Organizationruling on the dispute between the U.S.and Antigua. A warning was sounded on thesepages several months ago, when U.S. trade repsbegan talking about “minor revisions” in currentInternet laws. Kyl apparently saw the disputeas another opportunity to reintroduce hispreviously failed measures, but writer Spainsays this one goes farther. “What makes Kyl’slatest proposal different from previous failedbills is that it doesn’t carve out an exception forracing. That has given rise to warnings that theonly part of the parimutuel industry that is growingat all -- account, or remote, wagering -- couldbe run right out of business.” Spain said thatthrough a spokesman, Kyl declined to commenton the proposal.The Spain article apparently was triggered by along report co-authored by Anthony Cabot, apartner in the Las Vegas office of Lewis andRoca LLP, and Eugene Christiansen, chairmanof the gaming consulting firm Christiansen CapitalAdvisers in New York. HTA has obtained acopy of the article, which reportedly is scheduledfor publication in Gaming Law Review. Itis titled “Why the Future of Horseracing is atRisk: the WTO Decision and Senator Kyl,” andit begins, “For the past seven years, SenatorJon Kyl (R-AZ) and other conservative membersof Congress have attempted to passlegislation that would prohibit all formsof Internet wagering. In early May, Sena-May 24, 2005tor Kyl began circulating proposed legislationthat would again seek to prohibit interactive gaming.Significant changes in the political landscapein Washington provide an unprecedented opportunityfor Senator Kyl to obtain the necessaryvotes in both the House and Senate to pass his“Unlawful Internet Gambling Enforcement Act of2005 (New Kyl bill). Republicans control bothhouses of Congress; they control the WhiteHouse; they control the Department of Justice;they are increasing their control of the Federalbench; and they owe this control in significantpart to the Christian Right, for whom Internetgambling is a moral issue, just as, to theirforebearers, Prohibition was a moral issue. Ifthey want to pass Senator Kyl’s bill, or any versionof Senator Kyl’s bill, they can.” Greg Avioli,executive vice president of the NTRA, whospeaks more and more for the American HorseCouncil these days, says, “We are confident thatMr. Kyl and other members of the Senate donot want to interfere with legal parimutuel betting(and that) whatever legislation passes willadequately protect racing.” That’s Greg Aviolitalking, not Jon Kyl. Kyl is my senator, and unfortunatelyI do not share Avioli’s confidence inhim. Racing had better begin preparing itselffor another major effort with what friends it hasin Congress to kill this legislation soon.BOB HACKETT DIES AT 80Robert Alden Hackett, former editor of both HoofBeats and Horseman and Fair World, died Saturdayin an assisted living home in Hilton Head, SC.Bob, 80, had been seriously ill for several years.He moved to South Carolina a year or so ago tobe near his daughters. A Harvard graduate andcavalry man who moved to Tubac, AZ, after retirementto share old times with hiscavalry buddy Will Rogers Jr., he was one ofthe sport’s most popular figures during hislong writing and editing career. He will beburied in Arlington National Cemetary.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMEMBER PERKS FOR HTA,USTAThe United States Trotting Association, representing24,847 owners, breeders, trainers and drivers,and Harness Tracks of America, representing 35major harness tracks in North America and theirthousands of employees, have joined the NationalThoroughbred Racing Association’s group purchasingprogram. Under the plan, USTA and HTAwill be offering Members’ Perks that will providesignificant savings to their individual members.Effective immediately, those associated withUSTA and HTA will be able to enjoy sharp discountson a diverse selection of products includingDodge cars and trucks, John Deere tractorsand other equipment, FedEx delivery service,Sherwin-Williams Paints, OfficeMax supplies,NetJets, Presort Services, Daktronics, Lexmarkinkjet and laser printers, and Hallway Feeds.USTA president Phil Langley and HTA presidentJeff Smith, jointly announcing the affiliation andpartnership, said the agreement has the potentialto provide hundreds of thousands of dollarsin savings to those making purchases under theprogram. NTRA Purchasing President Joe Morrissaid the addition of USTA and HTA “will significantlystrengthen the collective buying powerof NTRA Purchasing and allow us to generateeven more savings for the horse industry.”May 25, 2005HTA ADDS TWO NEW MEMBERSWestern Fair Raceway in London, Ontario, andHarrah’s Chester Casino and Racetrack inChester, PA, now are members of Harness Tracksof America, bringing the association’s membershipto 35 tracks and racing organizations. HughMitchell, chief operating officer of Western FairAssociation, will represent Western Fair on HTA’sboard of directors and Anne Allman, who is supervisingconstruction and organization of the newHarrah’s track in Chester, will be the HTA directorfor that operation. HTA president Jeff Smithsaid the additions “add new strength and vigor toHTA,” and HTA welcomes both organizations andtheir directors to the HTA family of tracks.ELSEWHERE IN THE NEWSHTA member Pompano Park, along withGulfstream Park, Hollywood Greyhound Trackand Dania Jai-Alai, sued the state of Florida yesterday,seeking to have a decision saying theyare authorized to operate slot machines. Opponentsalso filed a suit, asking for a ruling thatthe tracks cannot operate slots until the adjournedlegislature issues enabling legislation.In Maryland, Magna Entertainment executivesmet today with House Speaker Michael Busch,hoping to persuade him to broker a compromiseon slots at tracks in that state.NTRA Purchasing has generated $107 million insales and $25 million in savings to the equine industrysince its inception in 2002. Last yearalone, its sales figures topped $60 million. TheAmerican Quarter Horse Association and theUnited States Equestrian Federation also aremembers of the NTRA group purchasing program.Details of participation in Members’Perks are being provided to all membersof USTA and HTA.In New Jersey, the state treasurer told the AssemblyBudget Committee that the Codey administrationstill is counting on its proposal forVLTs at the Meadowlands. Up or down action isexpected in the next two weeks.In Massachusetts, the mayor of Boston, ThomasM. Menino, threw his full support behindslots at state tracks, calling it “a matter of survival”for the tracks and essential for retainingas many as 4,000 jobs.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorKEEP AN EYE ON THIS ONEYoubet.com, which registered huge 75% gainson Preakness betting over its numbers a yearago, thinks last week’s U.S. Supreme Court decisionin a wine case could enable it to offer itsservices in nine states where it is now prohibited.Jeff True, Youbet’s western region generalmanager, says “We think this decision couldgo a long way in allowing us to operate in thoseother nine.” Youbet’s hopes, which were reportedalong with details of the decision by InteractiveGaming News, which keeps a closewatch on the pulse of Internet wagering and gaming,are based on a court decision written by JusticeAnthony Kennedy. It argues that if in-statecompanies are allowed to partake in a form of commerceamong in-state companies, that form of commercealso must be opened to out-of-state companies.The 5-4 decision came in the consolidatedcases of Granhold v. Heald in Michigan andSwedenberg v. Kelly in New York. The centralissue was whether a state can prohibit the onlinesale of wine to its residents from an out-of-statewinery, while allowing in-state wineries to sell theirproducts as long as they don’t ship those productsacross state borders. Justice Kennedy wrote,“States have broad power to regulate liquor. Thispower, however, does not allow states to ban, orseverely limit, the direct shipment of out-of-statewine while simultaneously authorizing direct shipmentby in-state producers. If a state chooses toallow direct shipments of wine, it must do so onevenhanded terms.” Kennedy also said thatlaws blocking some businesses from a marketwhile allowing others to access it are in directviolation of the Commerce Clause. Lawyers whoopposed allowing Internet importation arguedthat the 21st amendment, which ended prohibition,overrode the Commerce Clause, but theCourt rejected that argument. Youbetthinks the decision is applicable to interstatehorse race betting.May 26, 2005Kennedy was joined in the decision by justicesAntonin Scalia, David Souter, Ruth BaderGinsburg and Stephen Breyer, with chief justiceWilliam Rehnquist and justices John Paul Stevens,Sandra Day O’Connor and Clarence Thomas dissenting.SLOTS DIE IN TEXAS AT 2 A.M.Things are different in Texas, as everyone knows,and they were different as slots at tracks camedown to the wire in the Senate last night. First, inan unusual legislative development, the Texas Senatevoted yesterday, 16-15, to shut off debate onHouse Bill 3540, a crucial revenue measure withabout 50 amendments including one that would haveallowed VLTs at tracks. Senator Ken Armbrister,a Democrat who wanted to sponsor a VLT amendment,was bristling at the parliamentary maneuver,and at 2 a.m. this morning, as the session woundto a close, he introduced his bill. Or tried to. Hebegan by saying, “This is a small amendment thatwill bring in billions of dollars for the State ofTexas....,” but that was as far as he got. RepublicanSenator Jane Nelson, an opponent, raised apoint of order that it was after midnight and nodebate could be considered. Armbrister said, “Ibelieve it’s before midnight...in Vegas,” andNelson shot back, “But senator, what happens inVegas stays in Vegas. You know that.” After aparliamentary discussion, Lt.Gov. David Dewhurst,presiding over the Senate, ruled that time had runout, and the measure died as the legislature dissolved.PROBLEMS IN WONDERLANDWonderland Park, Boston’s big dog track that hasbeen closed since May by a serious epidemic ofkennel cough and does not plan on reopening untilJune 10, has asked the Massachusetts RacingCommission to reduce its season by 106 performances,from 256 to 150. The track says itreached the decision before the siege of sicknessdecimated the ranks of its dogs.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTWO VERSIONS IN MD; PICK ‘EM BETDennis Mills, a vice president of Magna Entertainment,met with racing’s nemesis in Maryland,House Speaker Michael Busch, this week. So howdid it go?“I sense a great hope after speaking with thespeaker,” Mills said. “We observed that time isof the essence. We hope things can be done soonerrather than later.”How about it, Mr. Busch?“The people of Maryland expect us to do our workin 90 days. They don’t expect us to come downhere in a special session at a cost of $45,000 a dayto help out one industry.”Mr. Mills: “We talked about the fantastic successof the Preakness. We impressed upon thespeaker the competitive disadvantage the racingindustry is up against.”Mr. Busch: “They articulated the point of viewthat horse racing is at a competitive disadvantagehere. What does it take to make horse racing morecompetitive? What does it take to do that withoutslots? I think that is an alternative everybody mustconsider.”Mills: “We remain optimistic that all legislatorshere will do what needs to be done.”Busch: “For the members, this isn’t just abouthorse racing. It’s a defining vote for them on thefuture of Maryland and of their communities.”Mills: “The bank says, ‘You’ve got slots all aroundyou.’ Magna needs additional revenues, eitherfrom slots or some other unspecified source, tosatisfy banks.”Busch: “I would encourage Magna to continue tocome down here working to make horse racingmore competitive.”Any questions?May 27, 2005PRESSURE ON TRACKS IN CAL, TOOWith handle down in California by $65 millionthrough five and one-half months of this year --the runners down $39 million in southern California,or 3.82%, and harness down $18 million,or 22.18%, in northern California -- andwith attendance down 315,000, racing commissionerRichard Shapiro called the numbers “dismal,”and racing board chairman John Harrissaid, “We really need to get something going toturn this around.” Exactly what -- short of lessrain -- was not specified exactly, but the boarddid put the onus on the tracks, saying it intendsto place more demands on tighter security, bettermarketing and advertising, and more financialinformation. It took steps in those directionsyesterday by approving rule amendmentsfor public notice to incorporate those requirementsin the applications for licenses to operaterace meetings. The tracks responded quickly,with Hollywood Park Rich Baedeker, speakingfor the federation of California tracks, tellingthe board the federation does not believe marketing-dollarinformation should be included inthe licensing process. He told commissionersthat process opened the door for micromanagingof tracks’ business operations, and offered asan alternative a willingness -- at least on the partof Hollywood Park -- to provide such details“one on one” to any commissioner. The chairmanof the racing board and three colleagueswere not impressed. Chairman John Harris said,“Your marketing efforts affect so many peoplein the industry, it really should be public information.If racing was doing well right now, it might notbe so important, but the way things are, I would liketo see more transparency.” Shapiro added, “I understandthat you need help, but it is difficult for meto be an advocate when I don’t really understandyour bottom line. We need to make sure racingassociations are putting forth the effort andexpenditures to justify granting a license.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorA SLOTS DEAL IN CALIFORNIA?Bloodhorse.com reports that a revenue-sharingagreement may be underway in California betweenstate racetracks and tribal casinos, following thedropping of a track suit that was aimed at overturningfive compacts signed last year by Gov.Arnold Schwarzenegger. Hollywood Park, SantaAnita, Bay Meadows, Golden Gate Fields and LosAlamitos had filed the suit, but dropped it in May25, and Hollywood president Rick Baedeker andan attorney representing the tracks said talks havebeen ongoing between the Indians and the tracks.The lawsuit had derailed a $1 billion transportationbond that was to have been financially supportedby the tribal casinos in return for slot exclusivityand unlimited machines. The attorneysaid the suit was withdrawn in the hope of a compromisesettlement with the tribes and the state,but that it could be reinstated if the negotiationsdo not produce results.SCHOOLS SAY “NO THANKS”Only 96 of 318 school boards in Pennsylvania haveagreed to accept gambling money from track slotsto fund tax rebates. One supporter of the idea, astate representative, said, “It’s going down inflames.” In the Philadelphia area, where 64 suburbanschool boards are located, only 7 joined theprogram, which offers school districts gamblingrevenues for property tax rebates and the stringsattached to getting them. The non-acceptance byschool districts statewide refuted the prediction inApril of Gov. Ed Rendell, who said at the time, “Inthe coming months, we’ll see school boards acrossthe commonwealth make history by voting to provideproperty tax relief to their residents.” In returnfor the slots revenue, school boards wouldhave had to enact a 0.1% earned-income tax increaseand conduct referendums on school budgetsif tax hikes exceeded an annual inflationindex. Proponents said the districtswere unwilling to give voters budget vetopowers.May 31, 2005DIAZ SENTENCED, BALA NEXTRaymundo Diaz Jr., the business and personalpartner of Racing Services’ owner Susan Bala, hasescaped jail for his role in the huge illegal gamblingoperation in Fargo, North Dakota. Diaz wassentenced to 90 days in a halfway house, 60 daysof electronic home surveillance, two years of probation,and forfeiture of $100,000 for his role inthe operation. Ms. Bala, who will be sentencedJuly 14, stunned Diaz’s lawyer by showing up athis trial and sitting with his family. “I still can’tbelieve she came to this sentencing,” he said, apparentlyin view of Diaz turning prosecution witnessagainst her. Diaz blamed all guilt on Ms.Bala, and said he was “very remorseful for everythingthat has happened and the shame I’vebrought on my family, my friends and my children.”When asked by reporters if he still had apersonal relationship with Ms. Bala, he said, “No,I don’t.”IN THE NEWS ELSEWHEREKeith Waples has been named Canada’s greatesthorseman of all time in a poll conducted by TheCanadian Sportsman......Prairie Meadows Racetrackand Casino breaks ground tomorrow on a$60 million expansion project that includes a14,000-square foot multipurpose facility that willseat 800 for banquets and 1,200 for concerts....Penn National Gaming won a 5-0 vote of confidencewhen the Maine Harness Racing Commissiongranted it a license to operate a temporaryOTB facility in a restaurant it purchasedfor $3.8 million in Bangor while its $75 millionracino is built at Bangor Raceway......CantorFitzgerald has won Nevada Senate approval ofa handheld wireless device that will enable gamblersto play as they wander through Nevadacasinos.....the $2.6 million dollar winning pacerRed Bow Tie was euthanized Saturday, a victimof EPM....Gov. John Baldacci of Maine sayshe is unlikely to sign enabling legislationfor an Indian harness track if it is passed.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor“USE A CLUB” IN MARYLANDThe state controller of Maryland, William DonaldSchaefer, who is former governor, has suggestedthe present governor, Robert L. Ehrlich Jr., bringin House Speaker Michael Busch “and club himwith a club” to get slots at tracks. Busch was quickto reply, saying that if Ehrlich took Schaefer’s advice,he should train the weapon on Senate presidentThomas V. Mike Miller. “If the governorwants to execute the suggestion to use a club,he should point it in the direction of the otherMike, the president of the Senate,” Busch said.Schaefer, in addition to suggesting the governorclub Busch, had a more positive idea. “Myadmonition is to ask the business community toget involved. The Greater Baltimore Committeeis sitting on their hands. There’s time yet todo this.” Schaefer was referring to the threatof Magna Entertainment to move Maryland’sgreatest race, the Preakness. Schaefer saidbusiness leaders don’t believe the threat, butobviously he does. Gov. Ehrlich did not agreewith Schaefer on losing the Preakness. “We arenot going to lose the Preakness, but I need alittle cooperation from downstairs to get it done,”he said, referring to the House and SpeakerBusch.A LESSON FOR HORSE RACINGGary Tanaka, the co-founder of Amerindo InvestmentAdvisors and a major figure in thoroughbredracing, has been charged with fraud and, accordingto The Blood-Horse, is being held at a federaldetention facility pending bail, with a hearing setfor tomorrow. The Securities and Exchange Commission,meanwhile, has filed a lawsuit in federalcourt asking a judge to appoint a temporary receiverfor Amerindo. How refreshingly differentfrom horse racing itself. If this were a rac- i n gmatter, instead of a major fraud case,Tanaka would still be running Amerindoon appeal.June 2, 2005JOCKEY CLUB V. HEMINGSEvery so often racing takes itself so seriously thatit looks ridiculous. Here’s the latest instance: TheJockey Club, which has approved a few doubleentendre names with salacious interpretations inrecent years, has taken great offense that GarrettRedmond, owner of Ballycapple Farm in Paris,KY, asked to name a runner Sally Hemings, theslave who was reportedly the mistress of ThomasJefferson, and whose descendants surfacedin the news with fanfare in the last year. TheJockey Club first had no idea who Sally Hemingswas, telling Redmond he would have to get herpermission to use her name. Redmond wroteback that “I will gladly get her permission if youcan dig her up.” And he asked, with good cause,if the Jockey Club had required written permissionwhen it approved Louis Quatorze, theFrench king Louis XIV, or Buddha? Chastenedbut unbowed, the Jockey Club then decided SallyHemings was notorious, or at least famous, anddenied Redmond’s application. Redmond hasnow filed a federal lawsuit. If there ever was acase where we hoped an owner would win, thisis it. Racing has enough problems without absurditybeing added to the list.CONRAD SETS US STRAIGHTTwo days ago we reported here that 96 of 318school districts in Pennsylvania had rebuffed thegovernor, Ed Rendell, by rejecting participationin Act 72, the property tax relief program tied toslots at Pennsylvania tracks. Our trusted directorfrom The Downs at Pocono, ConradSobkowiak, responded before the ink had driedon the release that “It’s worse than that. Thereare 501 school districts in Pennsylvania, with only96 voting to take the slots money.” Gov. EdRendell responded, too, but not to us. He toldAssociated Press he would “have to look for anothervehicle to provide Pennsylvania withproperty tax relief.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFARALDO ATTACKS “THEY”Wearing his hat as lawyer for Vernon Downs’horsemen, USTA chairman Joe Faraldo leveled ablistering attack in the Oneida (NY) Daily Dispatchthis week on unnamed “theys,” scoldingthem for not stepping up and buying the track.Although Faraldo did not mention major New YorkCity realtor and owner-breeder Jeff Gural or majorityshareholder Shawn Scott by name, the reporterwho did the interview with Faraldo --Rachael Protzman -- did, a number of times, makingit appear that Gural was Faraldo’s target. Thiswould be strange, because Faraldo recently wasquoted as lauding Gural for his legislative effortsin Albany in getting the VLT issue resolved. Inthe long story, Protzman identified Faraldo as “attorneyfor the Harness Horsemen’s Associationof Central New York,” who told her, “They’re sayingthat they’re doing everything they can to makesure there is a racing season, but they don’t seemto be doing what they need to do. It seems to methat there are people that have an ownership interestin Vernon Downs and they say they are goingto create all these wonderful things for thehorsemen. But instead they’re doing all they canto scare away competitors that are interested inbuying the place, and all that’s doing is setting usback. I think somebody’s got to step up and buyVernon Downs. Until that happens everything elseis, unfortunately, just a waste of everybody’s time.It’s raising a lot of people’s hopes. They knowwhat they’re doing. They’ve calculated everypenny and dime. They’ve calculated the risks thatthey’re willing to take and not take.” That’s finetalk for clients, but perhaps a bit of oversimplification,particularly when someone has to figureout how to handle Vernon’s $26 million or more indebt. It would seem to an outsider that calculatingthe risks is a prudent course when tens of millionsof dollars are involved. Gural toldProtzman, “Everything’s still up in the airat bankruptcy court.June 3, 2005“We intend to submit a revised plan in the nextfew days. We’re working on it with attorneysas we speak. There’s growing concern that thedelay is just costing everybody money. We’rehoping there will be a racing season. We’reworking on it with Racing and Wagering.”Faraldo said, “If it was in our hands, we woulddo everything that we can. But because of thismaneuver of putting this place in bankruptcy,because of the maneuvering by potential suitors,the horsemen are caught in the middle.”That’s true, but talk is cheap. Buying VernonDowns is not.BIG CHANGES ON THE COASTIn what is characterized as one of many changes,the California Horse Racing Board is not renewingthe contracts of three veteran Californiastewards. Board executive director IngridFermin, who formerly worked with the three asa steward, announced that senior steward PetePedersen; former harness racing driver andsteward Jack Williams; and MerlinVolzke,were being replaced. Petersen, 84, is in his 50thyear as a California steward. Fermin saidchanges also were being made to the racingboard investigative staff, including adding newemployees and rotating some present ones fromtrack to track. Pedersen said “I’ve been luckyto be on the track this long. It’s not the end ofthe world.”THE STORY IS EVEN BETTERWe recounted here yesterday thoroughbredbreeder Garrett Redmond suing The JockeyClub for refusing the name Sally Hemings, thereported slave mistress of Thomas Jefferson.The Club first requested Redmond to get her permission,then decided she was notorious or famous.We neglected the real jewel of the story,however. The filly in question is out ofJefferson’s Secret, who was by ColonialAffair.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMAINE GOV TO VETO RACINOThe legislature of Maine gave its approval lastweek to a tribal racino and harness track in economicallydepressed Washington county, but thestate’s governor, John Baldacci, says he will vetothe bill. The House passed the measure, 94-53,and reaffirmed that vote in another 87-46 vote.The Senate approved it 19-15, but those votes donot provide the two-thirds majority needed to overrideBaldacci’s promised veto. The governor saidgambling would hurt long-term efforts to bring businessesand jobs to Washington county -- a strangepremise -- and said the project was “not sustainableeconomic development.” The Senate majorityleader, Paul Davis, said, “If he vetoes it, it’s allover.”A VETO IN FLORIDA, TOOTracks in Florida, particularly in Browardcounty where HTA’s Pompano Park operates,have been plagued recently with a proliferationof adult arcades, where four quarters get you achance in pizza parlors and arcades to win ticketsthat can be exchanged for gift certificatesin stores, supermarkets, and restaurants. Althoughdirect cash, alcohol and tobacco prizesare prohibited under the law, the tickets canbe exchanged in supermarkets and stores forthose items. A Miami Republican, Senator AlexVillalobos, slipped a provision into a consumerprotection bill that would have allowed the arcadesto use dollar bills instead of coins in themachines. The tracks objected, and for onceJeb Bush came down on their side. He vetoedthe measure, calling it “an expansion of gamblingand inconsistent with my long-standinganti-gambling philosophy.” It was a nickel anddime victory -- or maybe more accurately afour-quarter victory, but at least it gavet h etracks something they wanted and gavethe arcades something they didn’t want.In Florida, that’s progress.June 6, 2005HANG ON. HELP ON WAY, IN’07Tracks and horsemen in Pennsylvania have beenwaiting a long while for slots, but it appears they’llhave to wait at least another two years. The chairmanof the Pennsylvania Gaming Control Board,Thomas A. Decker, told reporters last week thathe feels confident the state will begin seeing revenue“as soon as 2007.” That is not “as soon as”racing would like, but the control board is crawling,not running, and a legal challenge on constitutionalityisn’t helping. The state Supreme Courtis expected to hear the case this summer.AH YES, THE EMERALD AGAINIf you like really long-running serials, then Chicagoand the Emerald Casino case is the placefor you. The Illinois Gaming Board, recentlyreconstituted by the governor, has taken up thelicense revocation matter involving the Emeraldagain. We have lost track of the years thishas been dragging on, but eight is a good guess,and the revocation proceedings themselves goback three years. Now attorneys for the bankruptEmerald are asking a judge to halt the revocationmatter, saying it is causing the Emeraldgroup to lose money for lawyers and the stateto lose money because the license remains unused.The attorney general of Illinois, LisaMadigan, says there is no emergency that wouldcause the judge to grant an injunction to stopthe hearing.DANICA ASIDE, HERE’S KARYNDanica Patrick has captured headlines, includingSports Illustrated’s cover, since her fourth placefinish in the Indy 500. But how about Dr. KarynMalinowski, a dean at Rutgers university and directorof its Equine Science Center, who finishedfirst in the $5,000 American Harness DriversSpring Final at the Meadowlands. She not onlywon, but drove her own pacer Hugme Christito a 1:55.4 victory.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorKEY SLOTS VOTE IN NJThe Senate Tourism and Gaming Committee ofthe New Jersey legislature has scheduled a voteThursday on a proposal to place 1,500 to 2,000VLTs at the Meadowlands. Regardless of theSenate committee vote, Democratic leaders in theAssembly have vowed to block the measure, whichis vigorously supported by Gov. Richard J. Codey.Codey believes VLTs at the track could generate$150 million for the state, noting that New Jerseyalready faces slots competition from New York,but Atlantic City casinos have thrown their moneyand clout behind the effort to defeat Codey’s proposal.REALITY REPLACES RHETORICAfter some earlier rhetoric castigating potentialinvestors in Vernon Downs for not putting up$38 million or so to buy the track, horsemen’scounsel Joe Faraldo told the horsemen this weekthat “there’s very little we can do” and theywould have to resign themselves to waiting forwhatever is going to happen. “Unless we have$38 million to buy this joint,” he said in a meetingwith Vernon’s horsemen, “there’s very littlewe can do. This is your reality. This is whatyou’re stuck with here. Absent someone comingup with the money to buy this place, I don’tsee this place getting a license. I think you’rebetter off knowing the truth. While Shawn Scottowns 52% in this corporation or even more than10%, this corporation is not going to get a racinglicense. It’s not going to get a simulcastinglicense. It’s not going to get anything. It’ll takea removal of Scott’s interest.” Real estate magnateJeff Gural, meanwhile, says the cost of reopeningVernon has risen from $8 or $9 millionto $15 million, but says he still is interested inbuying the track and its racino. Gural has submitteda plan to bring Vernon out ofbankruptcy, which is to be heard by thejudge handling the case next month.June 7, 2005HARRAH’S BREAKS GROUNDHTA’s new member Harrah’s Chester Casino andRacetrack, broke ground yesterday, and Harrah’sEntertainment president and CEO Gary Lovemanbacked his commitment to Chester with a checkfor $500,000 for job training and development inthe economically depressed waterfront city. Callingit “The Harrah’s Chester Challenge,” Lovemansaid the community development initiative wasdesigned to support the acquisition of job skillsand training that will enable Chester residents tofully benefit from the new jobs that will be createdas a result of Pennsylvania’s gaming legislation.The check, payable to the Delaware CountyWorkforce Investment Board, is expected to beearmarked for not-for-profit and government organizationsthat are dedicated to helping educateand train Delaware county residents, includingUnited Way, the Delaware Office of Employmentand Training, and the Opportunities IndustrializationCenter.Loveman said, “Gaming has helped produce dramaticeconomic turnarounds in communities acrossAmerica, and we expect similar results from ourproject in Chester.” Pennsylvania governor EdRendell, harness racing commissioner Ed RogersJr., state senators and other dignataries attendedthe groundbreaking.COULD TEXAS BE OVERRATED?If nothing else, its legislature could be. Newspapershave blasted the legislature for its do-nothingrecord in the session recently concluded, andFt. Worth Star-Telegram racing writer Gary West,was one of the voices, saying the legislators quit“without tossing so much as a crumb toward horseracing.” Hope springs eternal, however, and LoneStar Park and TRA president Corey Johnsonthinks the industry had the votes to pass VLTs,but “ran out of time” according to West’s story.He quoted Johnson as saying, “I think wecan accomplish this.”>>

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorRACING THRU THE COURTSIn horse racing these days, drivers need helmetsand safety vests and track operators need lawyers.Here are just a few reasons why:In Michigan, HTA member Northville Downs hasfiled an appeal of a license granted to Magna Entertainmentto build a huge thoroughbred racingoperation just north of Detroit’s Metropolitan airport.Northville argues that a third track in theDetroit metropolitan area will oversaturate themarket and force Northville, now in its 61st season,to close. It points out that it is one of itshost city’s 10 largest sources of revenue, contributingmore than half a million dollars toNorthville last year. Northville attorney EdDraugelis said in the appeal, filed in WayneCounty Circuit Court, that, “With the competitionfrom casinos (in both downtown Detroit andWindsor across the Detroit river) we think thearea can really only support two tracks.” Theappeal was delivered to the office of the stateracing commissioner, and the state must answerthe appeal within 21 days.In Yonkers, New York, Yonkers Raceway facesanother challenge in getting underway with itsracino. A city economic development agency metthis week behind closed doors to discuss involvingitself in litigation challenging the Division ofLottery’s review of the $155 million project thatis scheduled to place 5,500 VLTs at Yonkers. Thecity of Yonkers has been negotiating with the stateand track for a steady revenue stream from theracino. The latest action, by the Industrial DevelopmentAgency, came in executive session atthe end of an open meeting, and the agency’s lawyersaid the Open Meetings Law permits closedsessions to discuss “proposed, pending or currentlitigation.” He would not reveal whatwas said in the session, but did say noaction was taken.June 8, 2005In Nevada, Gov. Kenny Guinn signed a bill soughtby Cantor G & W, an affiliate of CantorFitzgerald, which will enable the company to useits wireless gambling technology in Vegas hotelsand casinos. The device will permit gamblers touse the wireless devices from casino bars, pools,and other hotel and casino facilities. It was approvedby the legislature last week and will allowgamblers to place bets from public areas in casinoswith at least 100 slots or other games.In Chicago, Nick and Sherri Boscarino invokedFifth Amendment rights against self-incriminationin the Emerald Casino license revocation proceedings.Boscarino has been accused of being“a known associate of organized crime” and atrust in his wife’s name helped trigger the IllinoisGaming Board investigation that sank the Emerald.Boscarino currently is out on bond on a 2004insurance scam conviction.In California, a third complaint has been filed bythe California Horse Racing Board against JulioCanani, the trainer of Sweet Catomine, allegingviolations of board rules concerning insuring thecondition of a horse and conduct detrimental tohorse racing. Sweet Catomine was the favoritein the Santa Anita Derby that was spirited off thetrack for treatment during the week precedingthe race.And this tidbit. While some racing leaders aretrying to reason with Arizona senator Jon Kyl onhis proposed Internet gaming bill that does notinclude an exemption for racing, the River CityGroup’s I Gaming News reveals that the AmericanGaming Association is delighted with thataspect of the bill. It quotes Frank Fahrenkopf,president of the AGA, as saying his organizationwould not support any legislation that creates“competitive advantages” for pari-mutuelwagering operations, and the AGA’s lobbyistsays it will not oppose the Kyl bill as currentlyproposed.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorHORSE SLAUGHTER: ONE DOWNDespite strong opposition by House AgricultureCommittee chairman Bob Goodlatte, Republicanof Virginia, proponents of ending commercial horseslaughter in the U.S. won a resounding victory yesterdaywhen Rep. John Sweeney, Republican ofNew York, outmaneuvered Goodlatte and theHouse passed, 269-158, a bill to strip funding frominspecting horse meat, effectively barring commercialslaughter, even though the meat is not sold inthe United States.The measure now goes to the Senate, where JohnEnsign, the Nevada Republican and a veterinarian,leads the fight to get a similar bill passed.Sponsors of the House bill, in addition to Sweeney,included Rep. Ed Whitfield, husband of ConnieWhitfield, vice chair of the Kentucky Racing Authorityand chairwoman of the state’s Drug TestingCouncil; Jack Spratt, Democrat of SouthCarolina; and Nick Rahall II, Democrat of WestVirginia. The ban as passed will force a yearlongshutdown of two commercial slaughterhousesin Texas and one in Illinois, where some65,000 horses a year are slaughtered for theoverseas market. If the Senate approves, themeasure will become effective October 1, thestart of a new fiscal year. That timing is theresult of Sweeney getting the measure attachedas an amendment to a Department of Agriculturespending bill. Sweeney and Whitfield havebeen stymied for two and one-half years byGoodlatte, who again argued -- this time unsuccessfully-- against the measure. The presidentof the Humane Society of the United States,Wayne Pacelle, said of yesterday’s vote, “Thisis the beginning of the end of horse slaughterfor human consumption in the United States. Weknew it had tremendous support. It wasalways just a question of getting a vote.”Yesterday Sweeney, Whitfield and theircolleagues got it.June 9, 2005A COMPROMISE IN MAINE?Maine is not Florida, where legislators and thegovernor ignore voters’ wishes and go their ownmerry way. The governor in Maine, John Baldacci,dislikes gambling, like Jeb Bush, but apparentlyis willing to let voters make their voices heard.Baldacci indicates he still plans to veto the measurepassed by the legislature to allow a tribalracino and harness track in depressed Washingtoncounty, but after nearly two hours oftalks with tribal leaders he appears willing tohave the people vote on a referendum on theissue. The tribal leaders were jubilant afterthe meeting, which they called “fruitful andpositive,” and said they looked forward “to returningto the table.” Without a veto, the bill -- LD1573 -- would require only a local vote beforea racetrack casino with as many as 1,500slots could open in a community. The Housepassed the measure 87-46, but the Senate votewas 19-15, not enough for a veto override.Baldacci said he would postpone his veto untillater this week as “a reflection of respect.”Washington county is the poorest in Maine, andthe Passamaquoddy tribe proposes to split anygaming revenue with other tribes in the state.One state senator, former Speaker of the HouseLibby Mitchell, said, “For the life of me, I can’tunderstand why it’s OK to have a racino in Bangorbut not in Washington county and for our tribes.” ARepublican senator from Washington county saidthere was “stunned disbelief” that the governor, whoco-sponsored a casino bill 10 years ago as a statesenator, has changed his mind on gambling.“HANDS OFF INTERNET BETS”Nearly 30 states, including California, NewYork, Kentucky, Michigan and Delaware, arejoining forces to urge the federal governmentto keep Internet betting out of internationaltrade agreements. Their attorneys generalare petitioning to protect states’ rights onthe issue.

HARNESS TRACKS OF AMERICACOURT ORDER ON EMERALDAn Illinois county judge has ruled that the IllinoisGaming Board must renew the bankrupt EmeraldCasino’s gaming license and allow it to relocate toRosemont. Cook County Judge Sophia Hall issuedan order that says the Illinois AppellateCourt’s decision in 2003 that gambling regulatorswere required to renew Emerald’s license shouldbe followed. Emerald’s attorney says the rulingmeans a hearing aimed at revoking the casino’slicense should stop. But Gaming Board attorneyscontend the ruling does nothing to stop that hearing.The board has been trying to revokeEmerald’s license since 2001 over concerns thatcompany officials lied to regulators and some investorsallegedly have ties to organized crime.VLT BILL MOVES TO NJ SENATEA bill that would allow as many as 5,000 video lotteryterminals at the Meadowlands Racetrackmoved to the full state Senate on Thursday. TheSenate Wagering, Tourism and Historic PreservationCommittee heard three hours of testimony,including presentations of contrasting studies thatestimated how many customers would bedrawn away from Atlantic City by slots inNew York, Pennsylvania and at the Meadowlands.Acting Gov. Richard Codey andExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley Paul J. Estok, F. Bergstein, Editor Editor June 10, 2005MAINE GOV. VETOES RACINO other northern New Jersey Democrats have ledMaine Gov. John Baldacci on Thursday vetoed the push for VLTs at the Meadowlands. So muchthe bill that would have allowed a tribal-run harnesstrack with slot machines in the state’s Washmates$150 million in revenue to the state this yearso that Codey’s proposed budget for 2005 estiingtonCounty. Under the legislation, the and $300 million next year. A study by ChristiansenPassamaquoddy Tribe would have been permitted Capital Advisors found that VLTs at the Meadowlandswould have minimal impact on Atlantic Cityto operate a racetrack with up to 1,500 slot machines.When the legislature approved the bill compared to the expected damage from slot machinesin neighboring states. “It’s a changed mar-last week, neither the House of Representativesnor the Senate had the two-thirds majority needed ket for Atlantic City and nothing can reverse that,”to override a gubernatorial veto. Supporters of Eugene Christiansen said. “Meadowlands VLTsthe racino now are pushing for a statewide referendumon the issue.crossing the state borders into New York and Penn-will help prevent the New Jersey population fromsylvania.” A study performed byPricewatershouseCoopers, commissioned by theNew Jersey Casino Association, found exactly theopposite. For now, the bill is stuck in the Senateand facing an uncertain future in the House. Thesponsor of the bill, Paul Sarlo of Bergen County,believes a compromise could still be reached.“This budget still relies on $110 million fromVLTs,” Sarlo said. “Where are the alternatives?”YONKERS TO CLOSE JUNE 25?According to a report in the New York Daily News,Yonkers Raceway has filed a request with the NewYork State Racing and Wagering Board to end liveracing at the conclusion of the program on June25 and simulcasting following the last race on June26. The plan is to stay shut down four months inorder to complete the massive reconstruction necessaryfor VLTs to be installed. The request willbe presented to the Board as part of its regularlyscheduled monthly meeting on June 16.MAGNA & ODS SETTLE IN MD.The Baltimore Sun reports that a lawsuit betweenMagna Entertainment and ODS Technologies wassettled out of court this week. The suit stemmedfrom Magna’s desire to be released from its contractwith TVG. Although terms were not disclosed,current broadcast and wagering practiceswill continue.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley Paul J. Estok, F. Bergstein, Editor Editor June 13, 2005SPOOR JOINS FLAMBOROFlamboro Downs announced that effective today,Gerard Spoor has been appointed president andgeneral manager of the Dundas, Ontario, racetrack.Spoor brings more than 30 years of experienceto his new post. A former vice president andgeneral manager of the Ontario Jockey Club (nowWoodbine Entertainment Group), Spoor most recentlyheld the positions of Director of AutototeNetherlands and regional manager of Autotote fornorthern Europe. “We welcome Gerard to theMEC team and we believe his experience will bea substantial asset to Flamboro Downs, the Ontarioharness racing industry and to MEC,” said DonAmos, executive vice president and chief operatingofficer of Magna Entertainment Corp.,Flamboro’s parent company.GAGLIANO JOINS JOCKEY CLUBJim Gagliano has been named executive vicepresident and chief administrative officer for TheJockey Club, the breed registry for thoroughbredhorses. According to a release from The JockeyClub, Gagliano will be “responsible for overseeingall administrative activities for The JockeyClub and its family of companies and will work directlywith business unit heads to develop andimplement company-specific business plans.”Gagliano, who resigned as executive vice presidentof Maryland racing operations for MagnaEntertainment Corp. (MEC) to accept the positionat The Jockey Club, joined Magna in 2002 aspresident of MEC OTB and group vice presidentof MEC Northern Group, which includes racetracksin Michigan, Oregon, Ohio and Pennsylvania.Prior to joining MEC, Gagliano spent fouryears with Greenwood Racing Inc. as executivevice president and general manager of PhiladelphiaPark and 10 years with the New Jersey Sportsand Exposition Authority. In his new position,Gagliano will be based at TheJockey Club’s New York office.FLA. TRACKS SEEK DISMISSALBroward County’s racetracks are preparing toappear before a Tallahassee judge this month toask him to dismiss an anti-gambling group’s lawsuitdesigned to block them from adding slot machinesto their facilities. A hearing is set for June21 before Leon County Court Judge P. KevinDavey. The anti-gambling group No Casinos filedthe lawsuit on May 23 to get a judge to forbid thetracks from installing slot machines unless thestate legislature passes regulations. The next day,track operators filed suit in Broward County askinga judge to let them have slots immediately inspite of the legislature’s inability to pass regulations.Attorneys for the tracks argued that theanti-gaming group has no standing to weigh in onwhether tracks should get slots now or not, andthat in any case, the matter should be heard inBroward County, since the case is about slots inBroward County.NY GOV. HAS A NEW PLANNew York Gov. George Pataki, who had proposedas many as five casinos for the Catskills in hisattempt to settle the Akwesasne Mohawks’ 23-year-old land claim against the state, is now planningjust one. “At this point we’re only looking atone casino,” Pataki spokesman Kevin Quinn said.“We’re continuing negotiations on the other settlements.The agreement with the Mohawks entitlesthem to build a casino in Sullivan County, providesthem with more than $100 million and the right tonearly double the size of their reservation in northernNew York. The Mohawk settlement, signedby Pataki and tribal leaders in February, requiresthe approval of the state legislation and Congress.In other Indian gaming news from New York, theOneida Tribe, owners of the Turning Stone Casinoin Verona, New York, released a list of investmentsas part of a tax valuation. According to thetribe, the Oneida’s have spent roughly $343million over the past decade.

HARNESS TRACKS OF AMERICAKY LEGISLATOR BAILS ON BILLExpressing frustration that Kentucky’s racing industrycould not present a united voice on the detailsof a casino gaming proposal, House SpeakerPro Tem Larry Clark, a Louisville Democrat, toldthe racing industry that it “can get another jockey,”according to a story in the Kentucky Post. Justlast week Clark, who has been a proponent of casinogaming, sent a letter to fellow lawmakers urgingsupport for gaming legislation which he nowsays he has no plans to introduce. In Clark’s letter,he used figures from the Legislative ResearchCommission of the Kentucky Assembly to estimatethat casinos in the Bluegrass State could generate$1.25 million in revenue and $430.5 million instate taxes annually. But as of Sunday, Clarkemphasized that he has no plans to introduce thelegislation.REFERENDUM BILL IN MAINEFollowing a veto of legislation by the governor ofMaine, the Maine House of Representatives hasindicated they want voters to decide on the issueof whether slot machines should spin at a racetrack-casinoin Washington County. The move isthe first in an effort to push the state toward a fallreferendum on the expansion of legalized wagering.House members voted 97 to 40 Monday tohold a November referendum on the proposal byMaine’s Indian tribes to open a harness track witha 1,500-machine casino. The senate is expectedto vote on a proposed statewide referendum today.Executive NewsletterNM GOV WANTS JOINT BOARDNew Mexico Gov. Bill Richardson has proposedcombining the Gaming Control Board and theRacing Commission, creating a single regulatoryagency. In announcing the proposal,Richardson said the consolidation wouldsave money and streamline the regulatoryprocess without sacrificing oversight of gam-A daily fax and e-mail report on racing and gaming developments in North America and beyondStanley Paul J. Estok, F. Bergstein, Editor Editor June 14, 2005bling. The Gaming Control Board, with a budgetof $5.2 million and more than 50 employees, regulatesslot machines at racetracks and at veteran’sand fraternal organizations. The Racing Commission,with 17 employees and a $1.9 million budget,regulates pari-mutuel wagering, drug testing andlicensing for live and simulcast racing at the state’sfive racetracks. Richardson has ordered theboards and staffs of the two agencies to develop apreliminary plan over the summer. A special advisorycommittee will then review and revise theplan, with the goal of being ready to introduce thelegislation required to carry out the merger duringthe 2006 session.NO OAKLAND CASINO...FOR NOWOnce again, it appears that an effort by a CaliforniaIndian tribe to build a casino in an urban areahas failed. The Lower Lake Rancheria KoiNation’s proposal to build a huge gaming complexnear the Oakland International Airport has apparentlydied with the expiration of a sales agreementbetween a developer and the tribe. Despite anoffer to pay $30 million per year for 20 years tomitigate environmental and traffic problems, theproject was opposed by the Oakland, Alameda andSan Leandro city councils. The failure of the proposalfollows the abandonment of a similar planby the Lytton Band of Pomo Indians, which wantedto build a huge casino in San Pablo.HARRAH’S CLOSES MERGERHarrah’s Entertainment Inc., soon-to-be-built HTAmember Harrah’s Chester Casino & Racetrack,on Monday closed its $6.8 billion purchase of rivalCaesars Entertainment, creating the world’slargest casino operator. The combined companyhas nearly 100,000 employees and $9 billion inannual revenue from 40 current properties, includingriverboats and hotel-casinos in 12 states.Harrah’s now controls six Las Vegas properties,compared with the number two gamblingcompany, MGM Mirage.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorUSTA SAYS NO TO ADVANTEDGEThe United States Trotting Association has withdrawnits approval of the Evolution Racing’sAdvantEdge Model 6.8 sulkies, as continued collapsesand breakdowns of the bike have led toconcern over potential injuries or death. TomHarmer, the head of Evolution Racing and a trainerand driver himself, announced he has issued a recallon all 368 race bikes in use across the country“in the interest of safety.” Harmer’s actioncame after drivers at the Meadowlands votednot to use the bike and the Indiana Racing Commissionbanned its use after an accident at HoosierPark. An AdvantEdge also collapsed atPocono Downs. Both arches and shafts havebroken in 13 reported failures. Paul Consol,speaking for Meadowlands’ horsemen, said,“We don’t want to see anyone get hurt. Therehave been anywhere from 6 to 15 incidents ofthem falling apart, not from accidents but justbreaking. We don’t want to wait until someoneis hurt. Even if you’re not driving one, if itbreaks in front of you, it’s still a problem.” JohnBrennan, a USTA director, said, “All the driverslike the bike, but it’s a safety question.”There have been two breakdowns of the bikein races at the Meadowlands, one on January14 and another June 1. USTA’s withdrawal ofapproval of the AdvantEdge means that itneeds to be retested and reapproved, and theUSTA also is conducting further testing and areview of the race bikes.ONEIDAS FACE FORECLOSUREOneida county in New York has begun foreclosureproceedings on dozens of properties ownedby the Oneida Indian Nation, trying to recovermore than $5 million in delinquent taxes. TheOneidas, who own the hugely prosperousTurning Stone casino and entertainmentcomplex, also own 284 parcels in thecounty, mostly in the town of Verona, and theJune 15, 2005county mailed notices to 59 of them.Oneida county also had gone to court in April toforeclose on 98 parcels owned by the Nation, anda hearing on that matter is scheduled for July 18.Both actions in Oneida county, and another inMadison county involving some $3 million intaxes, came after the U.S. Supreme Court ruledin March that the Oneida Nation must pay propertytaxes in Sherrill, NY. Last Friday, a highrankingDepartment of the Interior official wroteto the Oneidas, telling them that the high court’sdecision “unmistakably” means the lands are taxable.The Oneidas contend that despite the SupremeCourt decision, the land remains part oftheir reservation and cannot be taxed. They ownsome 17,000 acres in the two counties, and askedthe Department of the Interior to place all of it intrust, which would remove it from all local controland taxes. Interior declined, saying the landwould not be taken into trust unless the backtaxes, totaling some $8 million, were paid.A SAD SITUATION IN SWEDENAfter Noel Daley, who trains the top trotterMr. Muscleman, was arrested for illegal possessionof drugs at his training center, HansLindskog, the racing manager at Solvalla racetrackin Stockholm, Sweden, withdrew an invitation to theowners, Adam Victor and his son, to race their trotterin Sweden’s most important race, the Elitlopp.After Mr. Muscleman clearly established himselfas the best trotter in North America, pressure atSolvalla built on Lindskog. Last Sunday, atCharlottenlund Racetrack in Copenhagen, wherethe Copenhagen Cup is contested every year followingthe Elitlopp, Lindskog announced he wasquitting the Solvalla job and probably would returnto Swedish television, his former job. Meanwhile,in the charade that is part of North Americanracing, Mr. Muscleman raced at Woodbine withChris Ryder listed as trainer. In an interviewafter the race, his owner said on television,“Noel has done a great job with this horse.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTHE TWO BEST ARE OUTIn a twist of ironic timing, harness racing and thoroughbredracing lost their brightest stars in oneweek’s time. After the announcement ofGhostzapper’s retirement, taking the world’s bestrunner from the scene, harness racing lost its 2004Horse of the Year, the brilliant pacing mare RainbowBlue, to a tendon tear. Now four, RainbowBlue has won 30 of 32 lifetime starts, includingher last 13 races in a row, and is sidelined withearnings of $1.4 million. She is four for four thisyear, and was scheduled to start tomorrow nightat the Meadowlands in the $215,000 Lady LibertyPace. Trainer and co-owner George Teague sayshe will seek second and third opinions, but atpresent it appears the great mare will not raceagain this year.DALEY GETS ‘SUPERVISION’Trainer Noel Daley, charged by New Jersey statepolice with possession of hypodermic needles andsyringes and possession of prescription drugs withouta prescription, gets off with an $833 fine and ayear of court supervision. Judge Bonnie L.Goldman of Chesterfield Township MunicipalCourt granted Daley a conditional discharge,meaning no plea or admission of guilt is entered,and if no additional offenses are committed duringa specified monitoring period, the chargesare dismissed. Daley’s attorney said he had intendedto go to trial, but the program acceptedwas available, and, “It’s just a lot more costeffective and we can on with life.” He claimedthe items seized by State Police on March 2 atDaley’s aptly named Magical Acres were obtainedthrough a veterinarian and administeredby a vet.In Illinois, meanwhile, the Illinois RacingBoard relicensed Agostino Siciliano, whohad been given a lifetime suspension in1987 after urine tests on his horses showedJune 16, 200521 positives for Etorphine, or elephant juice.And in Kentucky, in a move not unexpected, thestate HBPA has resorted to an end run to avertchanges proposed by both the state’s Drug TestingCouncil and the Kentucky Racing Authority.The horsemen have appealed to their legislativefriends, and according to bloodhorse.com HouseSpeaker Larry Clark, a member of the InterimJoint Committee on Licensing and Occupations,wants the staff to get answers on whether all interestedparties have had a chance to be heard, andwhether the national Racing Medication and TestingConsortium’s standards need to be adopted intotal in the Bluegrass. Clark also is inquiring intothe drug council’s budget. Sound familiar?UGLY TIMES IN NEW YORKWhen government agencies issue reports,confirming or refuting them becomes a task forthe accused, and black headlines pour forth.They were jet black today after New York statecomptroller Alan G. Hevesi called the New YorkRacing Association “the poster child for mismanagementand corruption,” and claimed NYRAviolated state law and its own policies by awardingno-bid contracts during a 2-year audit periodcovering 2002-2004. Hevesi said NYRA “isthe worst agency of all, in my experience.” Oneof his charges was that NYRA awarded a no-bidcontract for $797,913 to a Web services companyowned by the daughter and son-in-law ofBarry K. Schwartz, the former NYRA chairmanand CEO, and called for his resignation alongwith other directors who served before the appointmentof the monitors. Schwartz, respondingto the articles, called Hevesi a liar, sayingthat contract was bid out and asking, “How doessomebody this dumb get a job in this state?” Wehave a question of our own. How does MGMMirage, which announced today it would managea 4,500-unit VLT facility at Aqueduct, getthat lush assignment in New York withoutbidding for the contract?

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorGURAL OFFERS VERNON PLANMajor New York City realtor and harness horseowner and breeder Jeff Gural has submitted a newVernon Downs plan to federal bankruptcy court.If accepted by the court and all creditors, Guralthinks Vernon could be back racing by late Julyor early August. Under the plan, Gural and TrackPower of Canada would invest some $15 millionto get the track out of bankruptcy. The pairwould purchase all of the stock of Mid-StateRaceway, Vernon’s parent, and eventually currentstockholders would be able to reinvest aslong as they are licensed by the New York StateRacing and Wagering Board. Gural explainedhis plan to the Oneida Dispatch, telling the paper,“It basically provides that we would be payingeveryone virtually 100 cents on the dollar tothe creditors; however, we would be stretchingout the existing mortgage on the property overeight years. Also, essentially we are buying allof the stock of Mid-State Raceway; however,we are allowing those stockholders who are interestedin buying back into the company anopportunity to acquire a portion of the stock ata very, very low discount rate, provided that theycan get a license.” For the plan to be acceptedby the bankruptcy court, it must be approved bya majority of the creditors, who have 30 days toreview the plan. Gural says he has some ideasabout Vernon, but “it’s premature to announceanything.” The track currently is open for training,and qualifying races are being held, but noracing has been conducted in the last year. Guralsays if his plan is accepted, it would provide immediatepayment to horsemen who received badpurse checks last July. He already has loanedthe track $1.2 million, and Mid-State acceptedGural’s offer of $8.5 million to reopen the track,but the bankruptcy court has not yet acceptedthat proposal. A court date of June 21now will be moved back to allow creditorstime to study the proposal.June 17, 2005SARATOGA MAY BUILD HOTELCity officials in Saratoga Springs, NY, announcedtoday that HTA member Saratoga Gaming andRaceway is considering building a 144-bed hoteland entertainment facility near the Jeffersonstreet entrance to the track property. Trackpresident Daniel Gerrity declined to commenton the report, but said, “We’re getting close toknowing what we’re going to do,” adding thathe already had met with architects and couldhave an announcement within two weeks.Saratoga Springs’ mayor Michael Lenz said ofthe project, “If it brings more people to our cityand our downtown, we want to see this happen.It tends to be a natural extension of the activitiesgoing on there, but we don’t want it to detractfrom our downtown.” The city has beenbriefed on the plans, which apparently also includean 18,000 square-feet arena with fixedseating. Gavin Landry, executive director ofthe Saratoga Convention and Tourism Bureau,called that idea “very logical,” adding that itcould be “very appealing, reaching out to nichesthat are not being served.” The racino, whichis drawing some 50,000 people a week to its1,324 VLT terminals, has created 300 jobs, andanother 200 are involved in the track operation.NOW THIS IS RACE CALLINGAs an old track announcer, the editor is qualifiedto pass judgment on good calls and quick thinking.Vic Stauffer, Hollywood Park’s racecaller, deservesfive stars. When an earthquake shook his boothand the press box yesterday, Stauffer, calling thesecond race, said, “We are in the midst of an earthquake.I want you to know that I love you all, andhorse racing was my first love.” He then added,“I better make this my greatest race call,” and hedid. As Dark Beauty and Pleasant Thunder battledto the wire, Stauffer said, “These two come tothe wire in the shaker. It’s a photo. I don’tknow who won, nor do I care.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor June 20, 2005ACCORD ON CANADIAN BETS hours of operations, type of machines and distributionof revenues by that date, he would. He saidThe Canadian Pari-Mutuel Agency has relentedin its earlier refusal to allow Canadians to bet into the state legislature violated the intent of theU.S. pools, agreeing to a compromise with tracks Amendment 4 of the Florida state constitution thatthat will allow commingled pools with warnings to allowed voters in Broward and Miami-Dade countiesto decide whether they wanted slots at theirCanadian bettors of what the agency perceives asa challenge to the integrity of the pools. The pari-mutuel sites. Pompano Park announced itCPMA previously had refused because of cancel would wait until its new racino building is completeddelay policies at U.S. tracks, which the agency to begin slots operations, but Hollywood GreyhoundTrack said it would begin offering slotsbelieves could lead to manipulation of odds. Underthe agreement, the agency is drafting a notice within a month or two. A Miami Herald photographerwas enroute to Pompano to get a picture ofthat will advise bettors of risks related to the 3- to10-second cancel delays in effect at some U.S. general manager Dick Feinberg celebrating atoptracks. Ron Nichol, director of coordination and a pile of structural steel resting on the parking lotprogram standards for the CPMA, told Daily awaiting construction. It is doubtful governor JebRacing Form’s Matt Hegarty, “We want to make Bush is celebrating, for the decision is likely tosure that the fans know that there are possible complicate his federally mandated negotiationsrisks inherent in the U.S. pools that are not inherentin the Canadian pools.” The CPMA does for slots instead of VLTs. The attorney who iswith the Seminole Indian Nation, now clamoringnot allow cancel delays at Canadian tracks. general counsel for the Florida Prosecuting Attorneys’Association, representing the state’s attor-Woodbine Entertainment has been eager to introducecommon pool betting on U.S. racing ney, had asked Moe for a dismissal and a postponementbecause he couldn’t attend the hearing,since Congress removed the mandatory 30%withholding tax on foreign bets made at U.S. but Moe denied both motions. The state can appealMoe’s decision, but as of press time no wordtracks, but the CPMA’s permission does notmean immediate implementation. Track, tote from either the state’s attorney or the governorand CPMA officials met last Friday to work out as to that possibility. Meanwhile, exultation understandablyis the order of the day in southdetails, but Nichol would not put a dateJune 21,2005Florida.MAJOR VICTORY IN FLORIDA NEW CAL-EXPO SEEKS HORSESA circuit court judge in Broward county, Florida,In an innovative push to lure new horses to California,the new operators-to-be of racing at Sacra-threw out the state’s case in the matter of slots attracks today and told the county’s four pari-mutuelmento, Cal Expo Harness and the Sacramentooperations that they were free to begin operatingHarness Association, along with the Californiaslot machines by July 1 without fear of prosecutionfrom the state’s attorney’s office. The judgeHarness Horsemen’s Association, have announceda bonus incentive plan. When any new horse oversaid a constitutional amendment approved by voterslast November overrode the state statute pro-two years of age makes its first start, the ownerwill receive a $500 bonus. When it makes its 10thhibiting slots. Obviously annoyed at thestart, the owner will receive another $500. Andlegislature’s dereliction in ignoring voters’the owner of the horse with the most wins betweenwishes, Judge Leroy Moe said that if theAug. 6 and Dec. 30 will receive a $10,000state or county did not issue regulations onbonus, as will the owner of the new horse withthe most money earnings during that period.BRUNO FLEXES HIS

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor June 21, 2005MAJOR VICTORY IN FLORIDA NEW CAL-EXPO SEEKS HORSESA circuit court judge in Broward county, Florida, In an innovative push to lure new horses to California,the new operators-to-be of racing at Sacra-threw out the state’s case in the matter of slots attracks today and told the county’s four pari-mutuel mento, Cal Expo Harness and the Sacramentooperations that they were free to begin operating Harness Association, along with the Californiaslot machines by July 1 without fear of prosecutionfrom the state’s attorney’s office. The judge a bonus incentive plan. When any new horse overHarness Horsemen’s Association, have announcedsaid a constitutional amendment approved by voterslast November overrode the state statute pro-will receive a $500 bonus. When it makes its 10thtwo years of age makes its first start, the ownerhibiting slots. Obviously annoyed at the start, the owner will receive another $500. Andlegislature’s dereliction in ignoring voters’ wishes, the owner of the horse with the most wins betweenJudge Leroy Moe said that if the state or county Aug. 6 and Dec. 30 will receive a $10,000 bonus,did not issue regulations on hours of operations, as will the owner of the new horse with the mosttype of machines and distribution of revenues by money earnings during that period.that date, he would. He said the state legislatureBRUNO FLEXES HIS MUSCLESviolated the intent of the Amendment 4 of theJoe Bruno, The Force in the New York legislatureas Senate Majority Leader, announcedFlorida state constitution that allowed voters inBroward and Miami-Dade counties to decideyesterday that it will not be one casino in thewhether they wanted slots at their pari-mutuelCatskills, as proposed by Governor Georgesites. Pompano Park announced it would wait untilits new racino building is completed to beginPataki, but three, or nothing. Some lawmakersand lobbyists protested that a three-casinobill would help the Oneidas of Wisconsin,slots operations, but Hollywood Greyhound Tracksaid it would begin offering slots within a montha tribe that has Bruno’s son Kenneth as a lobbyiston its payroll. Be that as it may theor two. A Miami Herald photographer wasenroute to Pompano to get a picture of generalOttaway News Service says Bruno’s opposition“puts Pataki’s proposal to settle the St.manager Dick Feinberg celebrating atop a pileof structural steel resting on the parking lotRegis Mohawks’ land-claim lawsuit on thinawaiting construction. It is doubtful governor Jebice.” The legislature is nearing the end of itsBush is celebrating, for the decision is likely tosession, and before Bruno made his “threeor-none”announcement, it seemed Pataki’scomplicate his federally mandated negotiationswith the Seminole Indian Nation, now clamoringwish for one casino would pass. One statefor slots instead of VLTs. The attorney who issenator, Eric Schneiderman of Manhattan, toldgeneral counsel for the Florida Prosecuting Attorneys’Association, representing the state’s at-Newsday the usual 11th hour frenzy in thestate capitol had been replaced by a desire totorney, had asked Moe for a dismissal and a postponementbecause he couldn’t attend the hear-end the session on a high note with the firston-time budget in 20 years. “They just seeming, but Moe denied both motions. The state canto want to get out of town,” Schneiderman saidappeal Moe’s decision, but as of press time noof his colleagues. “If they stay here anyword from either the state’s attorney or the governoras to that possibility. Meanwhile,longer, they’ll get into a fight about something.”His statement was prescient. Joeexultation understandably is the order ofBruno now has given them something tothe day in south Florida.fight about.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor June 22, 2005GOOD HORSES, GOOD HANDLE AND VERY BIG NUMBERSLast Saturday’s North America Cup, carrying a According to a report from The Canada Westpurse of $1.5 million Canadian and others of Foundation, government-run gambling in Canada$565,000, $342,100 and $100,000, also produced now is almost a $13 billion business. The reportbig numbers on the business side....in fact, the biggestin the 22-year history of the Pepsi North chines, 60 permanent casinos, and 33,000 lotterysays the country has some 87,000 gambling ma-America Cup. Total wagering reached ticket centers producing revenue for the government.Gambling-related profits of $6.3 billion now$3,820,598, topping the previous record set in2002 by almost $400,000. Jamie Martin, vice approach what the government receives from taxespresident of Standardbred Racing for Woodbine on fuel and liquor, with gambling producing a profitEntertainment, said, “It’s rewarding for all involvedto see our biggest event result in a recordmargin of 49.7%. Slots, anyone?handle and outstanding ontrack attendance.” The CASINO DEADLOCK IN NY?program concluded Woodbine’s spring meeting, With time running out on the session, legislatorswith action now moved to Mohawk Raceway. in New York state are still far apart on casinosDuring the Jan. 1 - June 18 session, Chris in the Catskills, and James Odato, the CapitolChristoforou was the leading race winner with 144 bureau chief of the Albany Times Union, saysvictories, topping Luc Ouellette’s 135 and Rick the situation “creates the possibility that the sessionmay end without settling Native AmericanZeron’s 131, and also was the leading percentagedriver with a .369 slugging average; land claims or an expansion of gambling.” AsOuellette was the leading money-winner with reported yesterday, governor George Pataki$2,933,085 won by his mounts; Joe Stutzman won says he will not sign a bill for multiple casinos in99 races to lead all trainers and also topped the mountains, and Senate majority leader Joemoney-winnings with $1,815,603 won by his Bruno says he will not allow legislation for justhorses; and Bob McIntosh was the leading percentagetrainer with a soaring .507 in-the-money Wisconsin tribes seeking a casino in return forone to pass. Bruno’s son works for one of thepercentage. Zeron, third in wins and fourth in land-claim settlement. Another power in Newmoney won, will have to give a sizeable piece back York, Assembly speaker Sheldon Silver, hasto the government. The Ontario Racing Commissionhas fined him $25,000, and suspended consin tribes still is incomplete. The presidentsided with Pataki, saying the case for the Wis-him for six weeks, for an unspecified violation of of the New York State Building and ConstructionTrades Council has joined the Bruno camp,racing conduct rules at Woodbine March 13.Trainer Richard Moreau was fined $15,000 earlier,and handed a 15-day suspension with Zeron, jobs.”calling for three casinos and saying, “It’s aboutfor “Conspiring with another participant to attemptto commit an act injurious to racing, specificallyattempting to cause a witness to changeNEW HONORS FOR LAVERNEHTA director LaVerne Hill, who has not missedor retract their evidence as it pertains to an incidentat Greenhawk Tack Shop.” Moreau did notan HTA meeting in more than 40 years, has beenelected as the 21st inductee to the Little Brownappeal. Zeron did, and the commissionJug Wall of Fame. Laverne was HTA’s Messengerwinner in 2001 and has received a host ofreduced his penalties, originally a$35,000 fine and 10-week suspension.other honors.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorBIG NEWS IN PENNSYLVANIAThe Pennsylvania Supreme Court reaffirmed theconstitutionality of Pennsylvania’s slot laws yesterday,saying the legislature followed proper parliamentaryprocesses in enacting it and it is constitutional.The full 51-page decision is on HTA’sWeb site this morning. The court concluded that,“as a matter of law, there was a single unifyingsubject to which most of the provisions of the actare germane, the regulation of gambling.” Thecourt did throw out a section of the Gaming Act,however, that gave the Gaming Control Boardpower to override local zoning ordinances as towhere casinos will be located, saying the legislaturedid not provide adequate standards andguidelines. It also ruled that a provision for $25million a year to volunteer fire fighting companies,another for reimbursement to rural countiesfor forest lands, and allowing casinos to providefree and below-cost alcoholic drinks, werenot germane to the single subject of gambling,and were prohibited. Although other legal challengesremain, yesterday’s decision removed thebiggest stumbling block in getting sRACINGLEGISLATION IN NYChanges in racing law in New York are in the worksin Albany today, having already passed the Senateand possibly the House by the time this newsletterappears. The new legislation will:Legalize the VLT contract between MGM andNYRA for construction of a racino at Aqueduct,and place the Lottery Division in control of theissue instead of the Racing and Wagering Board.Allow the ad hoc committee scheduled to reviewthe NYRA franchise, which expires at the end of2007, to begin its deliberations immediately, insteadof on or after Dec. 1 of this year. Itnow must begin studying the issue on orbefore Dec. 1 of this year. Gov. GeorgePataki, Senate president Joe Bruno andJune 23, 2005Speaker of the House Sheldon Silver each selectthree members of the committee.Create a five-person non-profit racing oversightboard that will monitor NYRA. Pataki gets to appointthree of the members, Bruno one, and Silverone. This board will assume powers that the divisionof the budget currently hold in regard to capitalexpenditures and approval of NYRA’s biddingprocess, will prescribe a plan of operation forNYRA, and will have power to make recommendationson NYRA’s finances, budgets, accountingsystems and governance systems. This boardwould succeed the thoroughbred racing capital investmentfund.Gives OTBs a tax credit on increases on in-statehandle over 2004.Eliminates pari-mutuel taxes collected at Belmontfor the Breeders’ Cup meeting.Leaves the Racing and Wagering Board intct, withno new commission created.ON THE HARNESS FRONTIn New Jersey, Senate Democrats abandoned fornow their quest of VLTs at the Meadowlands, acknowledgingthey had no chance to get the measurethrough the Assembly. The HambletonianSociety, meanwhile, relocated from East Brunswickto president Tom Charters’ hometown ofCranbury.In Ontario, Woodbine Entertainment chairmanand CEO David Willmot announced that Woodbinehad found a suitable partner to develop thehuge land areas surrounding its Woodbine track,and that plans for the undeveloped portion of its700 acres would be finalized in the next few months.The focus of construction will be west of the grandstandand is expected to include a hotel, conferencecenter and theater seating severalthousand. The development will fulfill a longtimeWillmot goal, and he said of the project,“we are really excited and ready to proceed.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorRACING LEGISLATION IN NYChanges in racing law in New York are in the worksin Albany today, having already passed the Senateand possibly the House by the time this newsletterappears. The new legislation will:Legalize the VLT contract between MGM andNYRA for construction of a racino at Aqueduct,and place the Lottery Division in control of theissue instead of the Racing and Wagering Board.Allow the ad hoc committee scheduled to reviewthe NYRA franchise, which expires at the end of2007, to begin its deliberations immediately, insteadof on or after Dec. 1 of this year. It nowmust begin studying the issue on or before Dec. 1of this year. Gov. George Pataki, Senate presidentJoe Bruno and Speaker of the House SheldonSilver each select three members of the committee.Create a five-person non-profit racing oversightboard that will monitor NYRA. Pataki gets to appointthree of the members, Bruno one, and Silverone. This board will assume powers that the divisionof the budget currently hold in regard to capitalexpenditures and approval of NYRA’s biddingprocess, will prescribe a plan of operation forNYRA, and will have power to make recommendationson NYRA’s finances, budgets, accountingsystems and governance systems. This boardwould succeed the thoroughbred racing capital investmentfund.Gives OTBs a tax credit on increases on in-statehandle over 2004.Eliminates pari-mutuel taxes collected at Belmontfor the Breeders’ Cup meeting.Leaves the Racing and Wagering Boardintct, with no new commission created.June 24, 2005ON THE HARNESS FRONTIn New Jersey, Senate Democrats abandoned fornow their quest of VLTs at the Meadowlands, acknowledgingthey had no chance to get the measurethrough the Assembly. The HambletonianSociety, meanwhile, relocated from East Brunswickto president Tom Charters’ hometown ofCranbury.In Ontario, Woodbine Entertainment chairmanand CEO David Willmot announced that Woodbinehad found a suitable partner to develop thehuge land areas surrounding its Woodbine track,and that plans for the undeveloped portion of its700 acres would be finalized in the next few months.The focus of construction will be west of the grandstandand is expected to include a hotel, conferencecenter and theater seating several thousand.The development will fulfill a longtime Willmotgoal, and he said of the project, “we are reallyexcited and ready to proceed.”In New York, Yonkers Raceway announced it wastransferring the $390,000 Yonkers Trot and its$114,000 companion Hudson Filly Trot to FreeholdRaceway in New Jersey for the second straightyear, as Yonkers undergoes construction for aracino. The races will be contested Saturday, Aug.20.In Indiana, Hoosier Park closes its 61-day meetingtomorrow with the ninth edition of the $500,000Hoosier Cup as the feature. In post position order,the field consists of Dawn Ofa New Day, UpFront Jerry, Chevie Cash, Allamerican Inca,Michael’s Marvel, Up Front Tornado, I Zee, TeamHutch, Glittering Beaches, Odds On Duane, andBeretta Hall.In Ohio, as elsewhere, the dime superfecta is provinga popular bet at Scioto Downs. It’s popularityis likely to increase after last night’s dimesuper paid $3,518.35.

HARNESS TRACKS OF AMERICA‘FRIENDS’ INITIAL REPORT OUTFriends of New York Racing today released itsinitial report, in which it proposes a new structurefor racing under which NYRA’s three tracks wouldbe run as a public-private partnership. As part ofthe new structure, off-track betting corporationscould opt to become part of the enterprise. Thereport projects that by replacing NYRA with thenew model, the State of New York would attractcapital investment of $500 million to $1 billion,would produce more than $6 billion for educationin its first 10 years, and by increasing purses andbreeder awards, assure racing’s future in the state.The release of the report comes just days afterthe state legislature established an oversight boardthat will monitor -- and could take over control of-- operation of the NYRA tracks if NYRA doesnot satisfactorily deal with its well-publicized legalproblems. Meanwhile, Gov. George Patakiwill appoint a nine-member ad hoc committee tocome up with a process to put the NYRA tracksup for bid. As an alternative proposal, Friendsoffers a privatization model under which the statewould receive a flat rate up front for the right tooperate the tracks.DECISION IN PA PUT OFFThe Pennsylvania Harness Racing Commissionwill decide by October whether Centaur Inc. orAmbrosia Enterprises will be eligible for the state’sremaining harness track. The commission’s attorneysneed time to investigate the financing ofthe competing applicants, according to the PittsburghTribune-Review.IN MAINE, LOOKING TO 2006Supporters of a proposed Maine harness track withslot machines will try to place the idea on a statewideballot in November 2006, unless thestate legislature beats them to it by schedulinga referendum this year. Backers ofthe project outlined the new plan on FridayExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley Paul J. Estok, F. Bergstein, Editor Editor June 27, 2005after Gov. John Baldacci pledged to veto a bill thatcalled for a referendum this year. Baldacci hadsaid he would not veto the bill if the House andSenate passed it by two-thirds votes. The Housemet that threshold, but the Senate fell one voteshort.SCOTT SUES OVER TIOGAIn the latest twist in the neverending saga of VernonDowns and majority owner Shawn Scott, All VernonAcquisition Company, Scott’s company, is seekingto derail Tioga Park’s plans for a projected MemorialDay 2006 reopening as a racino. In a filing inthe New York State Supreme Court, All Vernon contendsthat since Tioga was not licensed as a harnesstrack at the time New York’s VLT law wasenacted, the track is not entitled to a VLT license.The owners of Tioga are Jeff Gural and TrackPower.Gural and TrackPower have also become involvedin attempting to buy bankrupt Vernon Downs. Forhis part, Scott has indicated he is turning to thecourts for a ruling so he will have a better idea howto vote on the reorganization plans being floatedfor Vernon. In the suit, Scott contends that Vernonwill be unduly devalued at a critical time by whathis filing called the false prospect of competitionwith Tioga Downs. Scott also contends that it maybe Gural’s plan to close Vernon because the twotracks, located approximately 140 miles apart, arein the same geographic market for horses, horsemenand patrons. “This would have the effect ofthwarting the will of the Legislature, which specificallyidentified Vernon Downs as a track to be salvagedwith the prospect of VLTs, by allowing the‘tricky efforts’ of a downstate New York landlord tomanipulate the system to seize an opportunity intendedto benefit harness racing for the benefit of afew politically powerful Goliaths,” Scott said in hisfiling. “Even if the goal of the Tioga Downs operationis not to shutter Vernon Downs, it is still criticalto determine whether or not Tioga Downs isentitled...to claim an entitlement...created tobenefit established harness tracks.”

HARNESS TRACKS OF AMERICAHORSE IMPACT NEARLY $40 BILLThe horse industry in the United States contributes$39 billion in direct economic impact to theU.S. economy and supports 1.4 million jobs on afull-time basis according to a study released todayby the American Horse Council. When indirectand induced spending are included in the equation,the industry’s economic impact reaches $102billion. The study also estimates the horse populationin the United States at 9.2 million. Entitled“The Economic Impact of the Horse Industry inthe United States,” the study is being describedby the Horse Council as “the most comprehensiveresearch document ever compiled on theAmerican horse industry.” Jay Hickey, presidentof the Horse Council, said of the research, “Thisstudy paints a portrait of an industry that operatesin every corner of the country and contributesmightily to the American economy and culture.”PARTYGAMING’S WINNING HANDOnline gaming company PartyGaming explodedonto the London Stock Exchange on Monday witha stock offering that shot up 11 percent by the endof the trading day, giving the company a value ofmore than $9 billion dollars. To give that numbera little context, the $9 billion market capitalizationmakes PartyGaming more valuable than casinogiants like Harrah’s Entertainment and WynnResorts, and nearly as valuable as MGM Mirage.Although online gambling is illegal in the UnitedStates, almost 90 percent of PartyGaming’s revenueand profit came from the U.S. last year.Internet gambling was legalized in Great Britainthis spring. As a result of the troubled status of’net gambling in the U.S., America’s large financialinstitutions, which generally play a large rolein London’s financial markets, were absent fromthe offering, fearing possible repercussionsfrom authorities in the United States.PartyGaming began with a price of $2.12 perExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley Paul J. Estok, F. Bergstein, Editor Editor June 28, 2005share and closed at $2.35 per share. The stockoffering will make PartyGaming’s founders andmany of its executives rich. Founder Ruth Parasoland her husband are cashing in stakes worth$370 million each, and the company’s group operationsofficer, Anurag Dikshit, is selling sharesworth $720 million. The three will retain largeshares of PartyGaming even after selling stock.BROWARD WILL APPEAL RULINGThe Broward County state attorney announced thathe plans to appeal a circuit judge’s ruling orderingcounty commissioners to enact regulations for slotmachines because state lawmakers failed to passsuch a measure. In a twist, however, State AttorneyMichael Satz hired an outside lawyer to representthe state’s 20 prosecuting attorneys becauseAttorney General Charlie Crist refused to get involvedin the matter. While Florida’s attorneygeneral normally handles appeals for state attorneysand state agencies, Crist spokesman JoannCarrin said that “the state attorney is the appropriateoffice to be the party in this suit.” As forwhat comes next, Dan Adkins, owner of HollywoodGreyhound Track, told the Palm Beach Post thathe believes the four Broward County pari-mutueloperations, including HTA member Pompano Park,will move ahead with slots once a “firm regulatorystructure is in place and the lawsuits settled.”NOT DONE IN PENN. YET EITHEREven as the newly formed Penn. Gaming ControlBoard accelerates its efforts to get an expectedmultibillion-dollar gaming industry off the groundin the Keystone State in the wake of a state SupremeCourt ruling upholding the constitutionalityof Pennsylvania’s slot machine law, there istrouble on the horizon. Developer Charles Betters,who is bidding to operate a thoroughbredtrack in the state, intends to go forward with separatelegal cases he has filed in federal and statecourt challenging the legislation as well asthe legislative process.

HARNESS TRACKS OF AMERICAINDIAN CLAIM REVERSAL IN NYIn a potentially far-reaching decision, a federalcourt in New York has ruled that the Cayuga Indiansare not entitled to a $248 million land claimand judgment awarded them by a lower court. Ina 2-1 decision, the 2nd Circuit Court of Appealscited the U.S. Supreme Court’s recent ruling inthe tax case involving the Oneida Indians, ownersof the successful Turning Stone Casino, and thetown of Sherrill, New York, that said too manyyears had passed for the Oneidas to claim theirreacquired former reservations lands were againsovereign and tax exempt. The court in the Oneidacase said some of the considerations that doomedthe case included the passage of so much time;that most of the tribe moved elsewhere; the tribe’slong delay in seeking relief; and the longstandingdistinctly non-Indian character of the area and itsinhabitants. As a result, the appeals court reversedand dismissed the Cayuga’s entire 25-year-old landclaim. “This wasn’t remanded. This was reversedand dismissed,” said Christine Pritchard, a spokespersonfor New York Attorney General EliotSpitzer. “This is significant and precedent-setting.This is the same court that will oversee the rest ofNew York’s land claims.” The Cayugacase is the only Indian land claim in NewYork to make it through the courts. TheExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley Paul J. Estok, F. Bergstein, Editor Editor June 29, 2005BROWARD TO WAIT ON RULES Oneidas, Onondagas, Mohawks and Senecas alsoFor the time being, Broward County commissionershave decided they will not write their own guide-had been pushing to get the legislature to pass ahave land claims pending. Gov. George Patakilines to oversee expanded gaming at the county’s bill for another tribe with a land claim, the St. Regisfour pari-mutuel facilities. On Tuesday, county Mohawk Tribe, that would have involved a settlementof $100 million plus the right to build a ca-commissioners declined to pass emergency rulesfor slot machines, saying that for now, a pending sino in the Catskills. The Assembly passed thecourt appeal (see Executive Newsletter of June bill, but the Senate, seeking a bill for three land28 for details) makes it unnecessary for them to claim settlements to yield three Catskill casinos,act. Pari-mutuel operators in Broward welcomed would not settle for one casino deal. In light of thethe decision and made it clear that they are comfortablewaiting until there is clear legal authority will still try to use gaming compacts as currencyappeals court ruling, it remains to be seen if Patakifor slots and a regulatory structure in place. to settle land claims. Attorneys for the Cayugasare considering their appeals options.YONKERS BREAKS FOR CASINOYonkers Raceway now has officially closed itsdoors for renovations for four to five months whilework on the track’s $185 million constructionproject begins. Over the next 10 to 12 months,the raceway will add a food court with 300 seats, acoffee shop as well as a bar and entertainmentlounge. Yonkers will also be adding a 120,000square foot building that will house as many of theapproved 5,500 slot machines. It will take about ayear before Yonkers will be transformed into aracino.PAUL SPEARS HONOREDThe Pennsylvania House of Representatives hashonored Paul Spears, chairman of Hanover ShoeFarms and executive vice president of the StandardbredHorse Sales Company, for lifetimeachievements in representing the equine industryin the Keystone State. Spears has been instrumentalin most equine-related initiatives in Pennsylvania,most recently as a representative of Standardbredinterests in the drafting and passage ofthe Pennsylvania slot machine legislation. Spearswas introduced to the membership of the houseduring today’s legislative session and presentedwith a special House citation for serviceto Pennsylvania agriculture.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley Paul J. Estok, F. Bergstein, Editor Editor July 1, 2005McCAIN AIMS AT INDIAN GAMINGCongress never intended for Indians to build Nevada-stylecasinos away from their reservations,and tribes risk a backlash by pursuing the trend,Sen. John McCain told the Senate Indian AffairsCommittee. The trend of tribes establishing offreservationcasinos has surfaced as Indian Gaminghas transformed in recent years from a relativelysmall industry into a huge one, generatingan estimated $18.5 billion in 2004, nearly doublethe take from Nevada’s gaming industry. McCainsaid after the hearing that he was still decidingwhether to introduce legislation to further restrictoff-reservation gaming.TRUE PROMOTED AT YOUBETYoubet.com, Inc. has announced that Jeff True hasbeen named a vice president of the company. Truewill continue to serve as Western Region GeneralManager for Youbet and will now oversee the promotionand promotion partner development programs.CHRB BACKS CHIP IDThe California Horse Racing Board instructedstaff on Thursday to develop a detailed plan for apilot program to add microchips to the methodsused to identify racehorses in California. Microchipsare used widely in 16 other countries and ona limited basis in some states, but if the CHRBsuccessfully implements program, California wouldbecome the first state to require microchip technologyfor the monitoring of racehorses. CHRBChairman John Harris said the intent of the Boardwould be to require, “at a date certain, that anyhorse participating in races in California has achip.” Dr. Ron Jensen, the Board’s equine medicaldirector, will be meeting with horse identifiers,stall superintendents, and others to develop t h epilot program, which could be funded bythe California Department of Food and Agriculture.PENN NATIONAL TO SELL CASINOPenn National Gaming announced this week thatis has agreed to sell the Argosy-Baton Rouge casinofor $150 million in cash upon the completionof its acquisition of Argosy Gaming Co. PennNational will sell the property to a unit of ColumbiaSussex Corp., a Fort Mitchell, Kentucky, hoteland casino operator.NYRA MONITOR GETS MORE TIMEA federal judge yesterday extended the time theNew York Racing Association will be under thewatchful eye of a court-appointed monitor. Yesterday,on the eve of the expiration of Getnick &Getnick’s 18-month oversight, Judge Arthur Spattextended the time NYRA will be under the purviewof the monitor to July 24, while at the sametime extending the deferred prosecution, which wasalso set to expire, until August 23. According toJim Odato’s report in the Albany Times Union,Getnick wrote to Spatt asking to extend themonitorship until the end of the Belmont meet andsaid he would recommend dismissal of chargesbrought against NYRA if he determines it has metthe terms of the deferred prosecution agreement.RED MILE RACING...Racing action returns to The Red Mile this weekendwhen the Lexington track opens for two daysof quarter horse racing this Saturday and Sunday.Last year The Red Mile’s abbreviated quarterhorse meet drew crowds of 10,000-12,000.NM LAW ALLOWS LONGER HOURSBeginning today, gamblers will be able to spendmore time in New Mexico’s casinos. A new statelaw will now let racetrack casinos stay open 18hours a day, but it won’t let casinos operate morethan 112 hours a week. Casinos must also spendat least a quarter of their income from gamblingmachines on programs to treat compulsivegamblers.

HARNESS TRACKS OF AMERICAStanley F. Bergstein, EditorCANADA COMMINGLES TONITECanadian racing fans get their first chance tonightto bet directly into an American track’s hostpools. With Illinois and Ohio approving commingledpools, Woodbine Entertainment givesits patrons the opportunity tonight to bet intopools at Maywood Park in Maywood, Illinois,and Balmoral Park in Crete, Illinois, and tomorrownight at Northfield Park near Cleveland. ArlingtonPark in Arlington Heights, Illinois, is expectedto become the first thoroughbred trackto take Canadian bets directly into its pools laterthis month. New York and Delaware also are consideringthe issue, and California, Florida, andNew Jersey are studying it. Steve Mitchell ofWoodbine, who has been handling details forWEG, thinks Canadians will benefit greatly fromthe new system, giving them larger pools andbetter payouts. “Once all states permit this,”Mitchell believes, “payouts on winning betsshould increase by more than $10 million a year.”Commingling became possible last fall when theU.S. Congress eliminated the 30% withholdingtax on foreign bets made on a U.S. racetrack.Following that Woodbine worked out an agreementwith the Canadian Pari-Mutuel Agency,which was concerned about teller delays at U.S.tracks, but finally conceded as long as warningsabout that process were posted at wagering sites.John Johnston, president of Balmoral and vicepresident of Maywood, says he expects poolsat those tracks will grow by 10% from Canadiansbetting directly into them.OUR BOY JOE SCORES BIGSandra Day O’Connor may have grabbed the frontpage of the New York Times last Saturday withher retirement announcement, but Joe Asher ofCantor G and W didn’t do too badly. He grabbedcolumn 1 on the same front page, and hishandsome visage and story took up 34inches of the Times page 9.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondJuly 5, 2005Joe, who started at Brandywine under HapHansen, now is an attorney and managing directorof Cantor Gaming and Wagering, whichhas developed under its parent CantorFitzgerald, the New York-based financial servicescompany, hand-held devices that will enablecasino guests in Las Vegas to play poker,slots, blackjack or other table games while atthe swimming pool, in a meeting or restaurant,or in any other public spaces in the hotel. Cantorintroduced the devices successfully in England,and Asher said, “Since we spent a tremendousamount of money developing the technology, wewere looking for other applications, and so we approachedNevada.” The new machines are notlinked to the Internet, thus circumventing Nevada’slegal ruling that casinos cannot do online gaming,and Gov. Kenny Guinn signed them into law lastmonth. The Nevada Gaming Control Board currentlyis writing regulations for their use, and theyshould be operational by the time HTA, TRA andUSTA meet for the Racing Congress at the Bellagiostarting February 6, 2006.RO LO SCORES BIG, TOORo Lo, a 3-year-old Quebec-bred trotting colt,made page 1 of Canada’s largest French newspaper,the Journal de Montreal, over the weekend,when he was sold for a reported $750,000 to Norwegianinterests. Trond Smedshammer will trainthe colt for U.S. campaigning. The Journal deMontreal has a circulation of more than 2 million,and its headline read, in French, Jackpot for 3Quebecers.TOUGH KY RULES ADVANCEStill facing legislative challenges, the KentuckyRacing Authority last week unanimously votedto endorse penalties approved by the KentuckyEquine Drug Research Council in May. The newrules include suspension of horses andgreater accountability for owners and veterinarians.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorPLAYERS’ POOLS ILLEGAL IN CAPlayers’ pools -- where bettors commingle fundsand bet as a group -- have been ruled illegal inCalifornia. The state attorney general ruledagainst them, and racing board executive directorIngrid Fermin announced the decision last week.AmericaTab, which has conducted such pools, saysit will comply with the ruling, even though it is nota licensed entity in California and its hub is locatedin Oregon, where such pools are legal. ToddBowker, general manager of AmericaTab, wasquoted in Thoroughbred Times as saying, “As anaccount wagering provider, we’re not licensed inCalifornia, but we do business there. We don’t wantto lose the California product. If they prefer wedon’t do pools on the California product, then wewon’t.”THOSE INTERSECTING LINESBones of racetracks lie across the nation, victimsof the intersecting lines of real estate values andracing business. In harness racing, three of thegrimmest reminders are the shopping centers thatnow stand where Roosevelt Raceway on Long Island,Liberty Bell Park in Philadelphia, andBrandywine Raceway in Wilmington, Delaware,once stood. Although the track owners who soldthe property prospered, in most cases, racing suffered,and could again if Churchill Downs sellsHollywood Park for development rather than racing.Churchill almost certainly will do well. It paidsome $140 million for the track and its roughly240 acres just six years ago, and the LouisvilleCourier-Journal quotes Jeffrey Thomison, an analystat Hilliard Lyons in Louisville, as saying hethinks, using recent land sales next to HollywoodPark as an indicator, that Churchill can get as muchas $235 million for the Inglewood track and its adjoiningproperty. Hollywood Park represented23% of Churchill’s cash flow in2000, 11% in 2003, and 14% last year.The paper says Churchill spent $5.9 millionJuly 6, 2005last year on efforts to get slots in California andFlorida. Its long-term debt at the end of last yearwas some $243 million, according to the Courier-Journal, and it could use proceeds from sale ofHollywood Park to pay down that figure, or makefurther acquisitions. Either way, the ominous graphhangs over all of racing: when the ascending lineof real estate value intersects the descending lineof racing business, some hard decisions must bemade.O LITTLE TOWN OF BETHLEHEMThe hopes and fears of all the years are met inthee tonight. And slots are one of them. Plansare afoot to use the former mighty but now abandonedBethlehem Steel site in the PennsylvaniaLehigh Valley city as the locale for a $300million casino project, but some citizens andcouncilmen are aghast at the idea. One says, “Iam trying to prevent the town’s character changingfrom the Christmas city to the Gamblingcity.” Signs have appeared reading, “Take thebet out of Bethlehem.” Another opponent urges,“Don’t exchange the star of Bethlehem for theneon lights surrounding slot machines.” Proponentsmight want to remind fellow citizens thatanother line of the famed Christmas carol starts,“Yet in thy dark streets.....” which are gettingdarker without Bethlehem Steel. A stanza of thecarol ends, “The dark night wakes, the glorybreaks, and Christmas comes once more.” Forthose who want slots, Christmas could come inthe form of jingle bells in the huge complex thatonce belched the smoke of prosperity overBethlehem.In another holy setting, the National LotteryCorporation of Israel is asking the finance ministryto widen its gambling machine empirearound the country to battle thousands of illegalvideo poker machines, blackjack tables andslots currently operating.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorSALES AND STORM WARNINGSChurchill Downs’ sale of Hollywood Park to BayMeadows Land Co. for $260 million was today’sbig news in racing, but it is not necessarily goodnews. Although the announcement stated that liveracing will continue at the huge Inglewood track-- one of America’s best known racing venues --for at least three years, and Churchill can reinvestas a majority partner for eight years, thebuyer is a land company. It operates a race track-- Bay Meadows -- but it also develops property,and its president, Terrence E. Fancher, while talkingabout his love for racing, also made clear thatchanges must be made so California racing canbetter compete with other forms of gaming. “Ifchanges are not made,” Fancher said in a newsconference, “then it’s simply a reality that thiswill not be an economically viable track over thelong term. We don’t know how much more clearthe message could be. A huge track in NorthernCalifornia and a huge track in Southern Californiawould be gone.” Los Angeles Times writerBill Dwyre, writing about the turn of events, likenedthe comments of Churchill CEO TomMeeker and Fancher to the movie “Network.”He wrote, “Two men who have spent a lifetimeconducting business with quiet, understated dignitybecame Howard Beale....they were mad ashell and they weren’t going to take it any more.”Dwyre called what happened Wednesday “gutsy,brilliant and also somewhat desperate.” He saidpart of the brilliance was “that it so publicly dropsthe hot potato in Sacramento’s lap.” But headded, “Sacramento, of course, may yawn andturn its back. It may legitimately have biggeragendas, much larger blocks of constituents than60,000 race employees, much bigger losses offace than two horse tracks folding. But you haveto give California horse racing credit for one thingafter Wednesday’s power play. Somemajor players in the sport may eventuallygo, but they won’t go quietly.”July 7, 2005GREAT CANADIAN MARCHES ONThere was another major development on the westcoast, as Great Canadian Gaming Corporation,which has been expanding its racing holdings exponentially,announced it was buying FlamboroDowns from Magna Entertainment for some $63.9million. The track, 45 miles from Toronto, has 230acres and offers year-round live harness racingand daily simulcasting on-track and at fourteletheaters and OTBs. It also has 752 slot machinesGreat Canadian has in the last year boughtHastings Park, Fraser Downs, Sandown Park andGeorgian Downs. MEG president/CEO W. ThomasHodgson said the divestiture “allows MECto focus resources on a strategic goal of deliveringprime racing content, developing our U.S. gamingpotential, and expanding our signal deliveryand wagering capability within North America andinternationally.”BITTER HERBS, SUGAR IN OHIOThe Ohio State Racing Commission has grantedThistledown, Cleveland’s thoroughbred track, permissionto discontinue sending its signal toNorthfield Park, at the request of the Ohio divisionof HBPA. On a brighter note, the commissionapproved the sale of the Sandusky CedarDowns OTB -- Ohio’s only remaining OTB -- toNorthfield Park by Argosy Gaming.DANCER IN BAD SHAPEStanley Dancer, perhaps the best known driver inharness racing history, is hospitalized, in constantpain and unable to walk. Plagued by the thoughtthat the harness world has forgotten him, he wouldbe bolstered by cards and letters. Send them to1300 S. Ocean Blvd., Apt. 101, Pompano Beach,FL 33062-6914.Also send best wishes to Meadowlands chiefDennis Dowd, recovering from another roundof hip surgery.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorYOU SHOULD LIVE SO LONGThe old Jewish mothers’ wish is our hope for thosewaiting for slots in Pennsylvania. We have a secondwish, too: get your kid a job with the PennsylvaniaGaming Control Board. Outside of beinga mutuel clerk in California, it’s the best dealin racing. Moving with glacier-like speed, theControl Board is operating so slowly in puttingtogether an operating staff that many of thehorses -- and perhaps their owners and breeders-- who were expected to benefit from slots inPennsylvania will be retired or dead by the timethey finally get regulations argued over, written,and in place. The latest move was the hiring ofAnne L. Neeb, director of the Louisiana GamingControl Board for the last two years, to be executivedirector of the Pennsylvania board, at acool $180,000 a year. She will direct a staff thateventually will number between 130 and 140. Thecontrol board also hired its top cop yesterday, a30-year veteran of the FBI named David J. Kwait,62, who will be paid $140,000 and will answer toMs. Neeb. Most recently, he has been chief ofcriminal investigations for the Pennsylvania attorneygeneral. Although the board’s chief counselhas not been hired yet, three members of hisor her staff were hired yesterday. They are agaming law specialist from an Atlantic City lawfirm; the director of the state House Judiciarycommittee; and the assistant counsel of the PennsylvaniaJudicial Conduct board. The chairmanof the Gaming Control Board, Thomas (Tad)Decker, said the board will be moving “expeditiously”to implement the law passed a year ago,now that the Supreme Court has upheld its legality.He also said he still hopes to have the firstseven track racinos licensed by late 2006 or early2007. The wheels of progress grind slowly inPennsylvania, and racing in the state -- which Ms.Neeb says has an opportunity to be revitalized-- can only wait and hope, thatthere’s money left after staffing.July 8, 2005TOP NY COURT HOLDS FIRMNew York’s highest court -- the Court of Appeals-- has refused to reopen a case it upheld last monthestablishing the legality of VLTs in the state. Withoutcomment, the court denied a motion to rehearthe case, which differentiated VLTs from slots andpermitted revenues from them to be used to benefitthe state breeding fund. The decision was anotherdefeat for Joseph Dalton, the president ofthe Saratoga County Chamber of Commerce, whohas been trying to upset VLTs in New York.CASINO TIES UP MINNESOTAA partial shutdown of state government in Minnesotaentered its second week today, with thegovernor, Tim Pawlenty, and legislative leadersdeadlocked over the issue of a casino at CanterburyDowns. The governor and his key Republicanallies want one. They control theHouse, but Democrats control the Senate, andthe stalemate over the casino issue has forcedalmost 9,000 state employees off the job sinceJuly 1. Residents can’t get new drivers’ licenses,highway rest areas are barricaded, and otherservices that derive income from state fundingare shut down. A special court master says hewill recommend restoration of the services, butanother judge still must sign off on that. Canterburyhas round-the-clock poker, but wants toadd slots and more table games, and is willingto pay the state $210 million for the next twoyears to get them. At the present time in Minnesota,those privileges are reserved for thestate’s many Indian tribes. If the stalemate continuesfor another week, the 8,900 affected employeeswill be formally laid off and Minnesotawill have to pay millions in unemployment andseverance costs.PICK 6 OVER $100,000The Meadowlands Pick 6, not hit since June22, now has a $100,067 carryover.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley Paul J. Estok, F. Bergstein, Editor Editor July 11, 2005POSITIVES IGNORED IN KY.Jim Gallagher, the transplanted New Yorker taskedwith helping to straighten out the regulatory environmentin the State of Kentucky on Friday outlinedhow the previous incarnation of Kentucky’shorse racing regulatory body failed to pursue penaltiesafter horses tested positive for banned substances.In testimony before the Kentuckylegislature’s Interim Joint Committee on Licensingand Occupations, Gallagher, executive directorof the Kentucky Horse Racing Authority, saidresults from the laboratory that processes postracesamples from the state’s racetracks showeda number of positives but that none of the positiveswas ever reported. “More troubling werefindings that should have been vigorously pursuedfrom an investigative standpoint” but were not,Gallagher told the committee. As a result ofGallagher’s testimony, the legislative committeeasked the Racing Authority for documentation tosupport Gallagher’s allegations. Kentucky Gov.Ernie Fletcher abolished the old Kentucky RacingCommission and reconstituted it as the KentuckyHorse Racing Authority after taking officein January 2004. Gallagher said he came acrossthe information after discussions with the directorof the Iowa State University Laboratory, the laboratorywith the contract to analyze Kentucky’spost-race testing in 2002. Lu Juana Wilcher,Kentucky’s Secretary of the Environmental andPublic Protection Cabinet, which oversees thehorse racing authority, told legislators that whilethe Authority could have spent much more timeon the matter, they decided rather to attempt to,“find the problem, fix the problem, and make sureit doesn’t happen again.” Legislators have askedfor more information about the positives as wellas about the work of the Racing Medication andTesting Consortium, the industry coalition that hasbeen working to, among other things, recommenduniform guidelines for medicationusage and testing in the racing industry.ORE. HOUSES OKAYS MACHINESIn a move supporters say could help save horseracing in the state, the Oregon House approved abill to expand the number of slot and video pokermachines at Portland Meadows. Under the termsof the bill approved last Wednesday, the trackcould have 30 machines, triple the current number.The bill now goes to the Senate, where itsprospects remain uncertain. Portland Meadowsis owned by Magna Entertainment Corp. Lastyear, Magna closed its other Oregon racing operation,Multnomah Greyhound Park, because offinancial losses.NOW THAT’S A POT!The nine players reaching the final table at theWorld Series of Poker main event can no doubtagree on at least one thing: There’s big moneyinvolved. The total prize pool for the tournamentis $52.8 million, minus the house cut of $3.37 million.According to tournament officials, 560 playerswill finish in the money, but the best moneywill be at that final table, where the first personknocked off the table, the ninth place finisher, willreceive a cool million bucks. From there it’s eighthplace, $1.15 million; seventh place, $1.3 million;sixth place, $1.5 million; fifth place, $1.75 million;fourth place, $2 million; third place, $2.5 million;and second place will collect $4.25 million. Thefinal table is scheduled to begin play Friday atBinion’s Gambling Hall & Hotel in downtown LasVegas. The main event began last Thursday atthe Rio hotel-casino with a record 5,619 players,more than double the 2,576 participants in 2004and almost seven times the then-record 839 playerswho entered in 2003.PLATO TO HBPALaura Plato, a former HTA staffer who more recentlyworked for Overbrook Farm in Lexington,Ky., has taken a position as executive assistantwith the National Horsemen’s Benevolent& Protective Association.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondAnd Scientific Games Corporation has announcedthat, in a move “designed to broaden theCompany’s highly respected management team totake advantage of future growth opportunities,”Micheal Chambrello has beenappointed president and chief operating of-Stanley Paul J. Estok, F. Bergstein, Editor EditorJuly 12, 2005MAINE TRIBE TO TRY VOTERS ficer of the company. Chambrello, previouslyProponents of an Indian-operated racetrack casinoin Maine, who have twice won legislative backtiveVice President of GTECH Holdings Corp.served as president of GTECH Corp. and Execuingin recent weeks but have been unable to overcomethe objections of Gov. John Baldacci, are KY. WILL LOOK AT POSITIVESseeking to take the issue before state voters themselves.Tribal leaders submitted an application Horse Racing Authority (KHRA) Executive Di-In light of the revelations made by Kentuckywith state election officials Monday, aiming to put rector Jim Gallagher with regard to alleged positivedrug tests that were never pursued in the Blue-the question to voters in November 2006. On June23, after the Legislature adjourned, Baldacci grass State (see Exec. Newsletter of July 11), thevowed to veto a racino bill calling for a statewide KHRA has asked for an investigation by the inspectorgeneral of the Environmental and Publicreferendum. The governor vetoed a similar billwithout a referendum provision on June 9. Protection Cabinet, which oversees the Authority.Baldacci had linked acceptance of the referendummeasure to its supporters’ attainment of supermajorities of two-thirds voting approval in the legislature.The senate’s enactment vote was justshort, 21-11. Once cleared for circulation, supportersof a ballot initiative would have to submitthe requisite number of valid voter signatures byJanuary in order to get their proposal on the November2006 ballot.VLTS FAIL IN TEXAS...FOR NOWA legislative maneuver to legalize video lotteryterminals at racetracks in Texas was rejected earlythis morning. The vote by legislators came at 3:15this morning.NEW FACES AT ISLE AND SGMSIsle of Capri Casinos, owner of HTA member PompanoPark, has announced the appointment ofDuncan McKenzie as regional vice president.McKenzie will be responsible for Isle’s propertiesin Mississippi and Missouri.TRIBE SETTLES IN NEW MEXICOThe Pojoaque Pueblo Indians in New Mexico haveagreed to pay the State of New Mexico $24 millionin back casino payments in order to settle alawsuit, the state attorney general announced.Attorney General Patricia Madrid sued NewMexico tribes that operate casinos five years ago.She alleged they were violating a 1997 compactthat required them to pay 16 percent of their netslot machine revenue to the state in exchange forlimits on competition. All tribes except thePojoaque eventually settled and made payments.Revised compacts approved in 2001 require tribesto pay no more than eight percent of their slot revenue.Under the terms of the settlement agreement,Pojoaque Pueblo will sign the 2001 gamingcompacts and make its back payments in installmentsover about 12 years. The agreement stillmust be approved by a federal judge in connectionwith the lawsuit.OOPS...WHAT THE WINNER GETSYesterday’s Executive Newsletter listed the consolationprizes for the World Series of Poker, witha total prize pool for the tournament of $52.8 million,minus the house cut of $3.37 million. Whatwasn’t listed was what the winner’s share ofthe pot will be...a whopping $7.5 million.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorINQUIRY ON POSITIVES IN KYJim Gallagher’s charges that the former KentuckyRacing Commission overlooked drug positives andthat commission policies never went through properadministrative review have gone to the Office ofInspector General. Bernie Hettel, who was firedfrom his former job as executive director and chiefsteward in Kentucky, denies Gallagher’s charges.Gallagher, for his part, says he “just wants to moveforward...to make sure this sort of thing never happensagain.” He followed up on that statement bytelling the new Racing Authority he would like toupdate all of Kentucky’s pari-mutuel rules andregulations and make them applicable to all threebreeds. This would be a welcome change from thepast double standard, where harness horses andthoroughbreds were subject to different standards,with full approval of the former commission andits executive director.OK FOR GOOSE, NOT GANDER?The Indiana legislature refused to approve slotsfor the state’s two racetracks, but now the HoosierLottery is asking for the same thing. Thelottery’s executive director, Esther Q.Schneider, has asked the Indiana attorney generalfor a legal opinion on whether current lawallows the lottery to offer new games, includingelectronic gambling devices. She added thatnew games would be implemented only with legislativeapproval. Assuming that what is goodfor the Indiana goose would be good for theIndiana gander, it seems a favorable decisionon Ms. Schneider’s request would be the heightof inequity. Lottery profits are expected to fallabout 5% in the budget year that ended June30, and Ms. Schneider says, “We’re looking atall the different ways we can increase revenueand our bottom line.” We’re pretty certain,Ms. Schneider, that’s exactly whatHoosier Park and Indiana Downs werehoping to do.July 13, 2005OHHA ISSUES ULTIMATUMThe Ontario Harness Horse Association and anorganization called National Capital Region HarnessHorse Association, representing horsemenin the Ottawa area of Rideau Carleton Raceway,are tangling over membership. OHHA presidentJim Whelan sent a letter to OHHA members inDistrict 1, covering that area, telling them theycannot be members of both organizations, and askingthem to make their choice. Whelan explainedthat OHHA needed to confirm its membership, andthat only those who chose OHHA as its sole andexclusive bargaining agent would continue to receivebenefits of OHHA membership. His lettersaid members of the NCRHHA could not continueto be members of OHHA and would have to maketheir choice.NEW BUSINESS FOR MAGNAAdd a new product to Magna Entertainment’s inventory.The company has announced it has builta plant in Lumberton, North Carolina, to manufacturea pellet form of straw to be sold for beddingunder the brand name STREUfex. TheLumberton plant will process local straw into pelletsthat “work almost like kitty litter.” The newbedding was the only product allowed for stall beddingat Magna’s Palm Meadows training facilityin Florida this year, and the results led to Magnaproduction of the pellets.PIERCE NOW OWNS A RUNNERHarness racing’s hottest driver now is a thoroughbredowner. Ron Pierce, inducted into theHall of Fame in Goshen a week ago Sunday, issending out a 2-year-old called Blackout OThree in Monmouth Park’s fourth race tomorrow.Ron bought the Louis Quatorze-Quiet Expressby Quiet American colt for $20,000 as aweanling, after stopping at neighboring farm inClarksburg, NJ, when a flight taking him toToronto for a race was cancelled by ablackout.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondANOTHER CHALLENGE IN MICH.Another challenge has arisen to Magna EntertainmentCorp.’s bid to build a new thoroughbred trackin suburban Detroit. Same Danou, a developerwho was an unsuccessful applicant for the tracklicense granted to Magna, last week filedan appeal claiming Magna still controlsthe license of Great Lakes Downs in west-Stanley F. Bergstein, Editor July 14, 2005INDIANS RAKE IN $19.4 BILLION ern Michigan, although Magna claims to have soldIndian-owned casinos nationwide won nearly twice its interest in that license. Michigan law prohibitsas much from gamblers as all of Nevada’s casinos any racetrack entity from holding more than onelast year, according to data released today by the racing license. Northville Downs, the suburbanNational Indian Gaming Commission. The nation’s Detroit harness racing facility, has also appealed367 tribal casinos won $19.4 billion, up 15 percent the granting of a license to Magna.from 2003. That compares to the roughly $10 billionwon by Nevada casinos for the year ended MEDIA AWARD FOR CTVJune 30. Tribal gaming revenue grew 14 percent CTV, one of Canada’s best-known and popularin 2003 and 15 percent in 2002. In California, broadcast communications operations, and itstribal casinos won $5.8 million, up 23 percent from broadcast of last summer’s Nat Christie MemorialStake in Calgary has been named by an inter-2003. The California region also includes NorthernNevada, which is negligible. The commission national committee as the best harness racing TVdoesn’t report state-specific data because in some broadcast in the world during the last 18 months.states, the figures could reveal too much detail The announcement came at the recently concludedabout tribal revenue, figures closely guarded by World Trotting Conference in Italy.tribes, commission spokesman Shawn Pensoneausaid. The data is based on quarterly financialstatements sent to the commission by tribes. Thestatements are required by federal law, which alsoallows tribes to keep private their financial data.MORE CHANGES AT NYRAAfter what NYRA President Charles Haywardtermed “careful evaluation,” the Association todayannounced the firing of two key racing officialsand an executive as well as the retirement ofthe association steward. Racing secretary MikeLakow, chief examining veterinarian CelesteKunz, and vice president of human resources andlabor relations Raphael Chetcuti were fired withoutnotice today, while association steward DaveHicks was given the option of early retirement.POCONO PLANS TO BE OUTLINEDOn Thursday, July 21, Robert Soper, president andCEO of HTA member The Downs at Pocono, willpresent the Mohegan tribe’s plans for the developmentof a gaming facility at the Plains, Pennsylvaniaracing facility. The name and logo of thenew facility will be unveiled during the press conference,along with details of proposed “gamingamenities.”ALICE CARNEY DIESAlice “Allie” (McCrystal) Carney, wife ofRockingham Park owner and President Dr. ThomasCarney for 54 years, died suddenly in Winston-Salem,North Carolina, on July 12. Mrs.Carney is survived by her husband, three sons(Thomas F. Carney, Jr., Dr. Daniel Carney, andPeter Carney), nine grandchildren, and manynieces and nephews. Visitation will be held onSunday and Monday at the Lorne & Sons FuneralHome in Delray Beach, Florida. The funeral willbe held at 1 p.m. on Monday, July 18, at St. VincentFerrer Catholic Church in Delray Beach. HTAsends deepest condolences for their loss tothe Carney family.

HARNESS TRACKS OF AMERICABALA SENTENCED TO 27 MOS.Susan Bala, the founder and owner of NorthDakota’s Racing Services Inc., was sentenced bya federal judge in Fargo, North Dakota, yesterdayto 27 months in prison for her role in what theFargo Forum called “the largest illegal gamblingcase in North Dakota history.” Bala, for her part,continues to claim innocence, telling Judge RalphErickson, “I just want you to know, in my heart, Iwould never do anything illegal.” The judge chastisedBala for bringing “unsavory characters” toNorth Dakota, including an alleged member of theGambino crime family now under federal indictmentin New York, but also noted that in light ofBala’s past good deeds, spotless record and lowrisk, she deserved a sentence at the low end ofthe scale provided by federal sentencing guidelines,which is what she got. Assistant U.S. AttorneyKeith Reisenauer asked for 33 months, tellingthe judge that Bala has not taken responsibilityfor her actions. “She blames everybody butherself,” Reisenauer said. Bala, 50, and her companywere convicted in February on 12 counts, includingconducting an illegal gambling business,conspiracy to conduct an illegal gambling business,illegal wire transfer, and nine counts of moneylaundering. Raymundo Diaz Jr., the vice presidentof Racing Services, was sentenced in May to90 days in a halfway house. He had pleaded guiltyto three felony charges of illegal gambling. Jurorsin February also ordered Racing Services toforfeit about $99 million, and Bala herself was orderedto pay $19.7 million of that. Reisenauersaid he did not know how much of the money wouldbe collected.SIMO AWARD DEADLINE AUG. 29The award to honor the racing industry’s best simulcastproduction again will be presented at the13th Annual International Simulcast Conference.The deadline for all entries isMonday, August 29, 2005. The award honorsthe best simulcast telecast by a host siteExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley Paul J. F. Estok, Bergstein, Editor Editor July 15, 2005and is open to all pari-mutuel breeds. The simulcastentry will be judged on technical merit, quality,and timeliness of racing and wagering informationdissemination, as well as overall appeal.Entries for the award must be no more than 30minutes in length and contain one complete racepresentation, including pre-race features andgraphics, the race itself, and any post-race replaysor wrap-ups. Entries must have been part of anormal simulcast program and not a collection ofhighlights or features and have aired after August24, 2004. For the first time, entries will be acceptedin DVD format. Six copies of each entryshould be sent to Thoroughbred Racing Associations,420 Fair Hill Drive, Suite 1, Elkton, MD21921, along with a letter of entry detailing thecontact name for the entry and the date the programaired.TUCSON TRACK DEFICIENT“Serious structural deficiencies” at 63-year-oldRillito Park Racetrack in sunny Tucson, Arizona,have prompted Pima County officials to considertearing it down and replacing it with athleticfields. That idea is drawing opposition from thehorse racing community. The track needs $1million to $1.5 million in repairs to avoid a “catastrophicfailure” of the steel-and-wood grandstand,according to a consultants’s report. Thegrandstand, built in 1962 and considered an eyesoreby many in the Old Pueblo, was “built deficiently[and] never strengthened adequately.”County Administrator Chuck Huckelberry saysthe county doesn’t have the money it would taketo repair the facility, let alone the estimated $5million to $6 million it would cost to replace thestructure with a new one. That puts the next racingseason, slated to begin in January of 2006, injeopardy. For now, the facility remains closed,but as a result of the dire reports and in an effortto move the issue forward, a county advisorycommission voted unanimously to “seekshort- and long-term solutions.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondJuly 18, 2005drawing by Robert Dickey.Stanley F. Bergstein, EditorHTA ART CATALOG NOW ONLINEHarness Tracks of America’s new art catalog forits Oct. 1 sale is now online on the HTA Web site.www.harnesstracks.com, and also can be accessedat www.elegantequineart.com. All 200 works areillustrated in full color, and each is enlargeablefor clearer viewing. A print version of the catalogwill be available free of charge by Aug. 1, andthe actual work will go on display in the grandstandof the Red Mile in Lexington, KY, Monday,Sept. 26, and remain on display through Fridaythe 30th, when it will be moved to Tattersallsfollowing that afternoon’s racing program for auctionthe following morning.This year’s auction is divided into four sections.The first is original harness racing art, numbers1 thru 85, which will be sold starting at8:30 a.m. This section includes the largest collectionof harness art ever offered by the Polishcavalry officer-turned-artist, ZenonAniszewski, HTA’s most popular and successfulartist. Included in this section is an originalearly work by George Ford Morris, a beautifulpainting of the trotter Baroness done by Morrisin 1906.Section II consists of a superb collection of Currier& Ives trotting prints, numbers 86 thru 124,selling at 10:30, and including such exceptionalprints as Central Park in Winter, Trustee, Starsof the Trotting Track, Trotting Cracks on theSnow, A Brush for the Lead: New York Flyerson the Snow, and Ready for the Trot. Also beingoffered, in mint condition, is SalvadoreDali’s American Trotting Horses #1 and AmericanTrotting Horses #2, hand signed by theworld renowned surrealist artist. A rare Currier,lithographed from a painting by the Englishmaster J. F. Herring Sr., also is inthe auction, along with five Currier &Ives comics and an original pen and inkSection III, going under the hammer at 11:30 a.m.,are truly exceptional equine bronzes by renownedEuropean masters. Isidore Jules Bonheur, PierreJules Mene, Pierre Lenordez and Arthur Waagenare represented in the collection.Starting at noon, HTA offers 70 works cataloguedas The Glory of the Horse, including paintings ofthoroughbreds, western horses, Indian ponies, carriagehorses, broncos,and show horses, and somebeautiful prints as well. Work by ZenonAniszewski, Helen Hayes, Svetlana Gadjieva,Henry Stull, Alfred Edgerton Cooper, RichardStone Reeves, George Ford Morris, SantosBarbosa, Mostafa Keyhani, Sherry Blanchard Stuart,Alyson Champ, David Pavlak, Joan MacIntyre andother well known equine artists are featured.All net proceeds of the show, as always, go to theHTA College Scholarship Fund, a 501 (c) 3 charity.HTA tracks are invited to participate.THE END FOR HIALEAH?Hialeah Park, once one of America’s most beautifulracetracks, may have reached the end of the line. TheThird District Court of Appeals in Miami affirmed anorder by Florida’s Department of Business Regulationto revoke Hialeah’s racing permit. Track ownerand president John Brunetti says he now will moveahead with plans to rezone the property for commercialuse, and if that happens another American racinglandmark disappears.THE MEN WHO OPPOSE GURALSpeculator Shawn Scott and three Florida partners, allof whom were unable to get New York licenses to runVernon Downs and its racino, now have filed a federalbankruptcy plan to pay off the track’s nearly $30 millionin debt and re-sell Vernon’s parent, Mid-StateRacway. The group wants to prevent New Yorkrealtor and horse owner Jeff Gural from buyingand operating the track.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorHOW ABOUT ONE ON SHAWN?With the federal bankruptcy court hearing onVernon Downs just a week away, Shawn Scotthas run ads in the New York Post soliciting informationon his rival, real estate executive andharness racing owner-breeder Jeff Gural. Thead reads, “Have you dealt with Newmark & Co.or Jeff Gural? If you have experience negotiatingwith or doing business with either that youwould be willing to share, please contact Holly.”The 800 number given in the ad, according tothe Syracuse Post-Standard, rings to a voicemail, where a woman’s voice identifies herselfas Holly Lackey. A Scott associate works forthe Dallas law firm of Lackey Hershman. Guralmight consider running a similar ad asking forinformation on Scott. Might as well make thisfight interesting. Scott, still trying to get licensedin New York, reportedly will have anotherhearing Friday before the Racing and WageringBoard.While this was going on in New York, Scott’smother Victoria, a high stakes player herself,was in the news in Alaska. The Anchorage DailyNews reported that Ms. Scott, who has a residencein Anchorage, is sponsoring an initiativeto bring video poker to Alaska. The story saidshe and Shawn have worked together in the past,including in a company that sponsored the successfuleffort to bring slots to Bangor Raceway,but Ms. Scott told the Anchorage paper that thisproject is hers alone. Calling Shawn Scott’sdealings “profitable but checkered,” the DailyNews reported that “Victoria Scott bristled atthe mention of her son, saying she has run severalventures without him, including a chain ofvideo poker truck stops in Louisiana. ‘Theseproblems existed for him long before I got mytruck stop licenses,’ she said. ‘I don’tknow why you’re even bringing his nameinto this.’” The paper reported that Scott’sJuly 19, 2005original initiative draft was denied certificationearlier this year by Lt. Gov. Loren Leman followingan attorney general’s opinion. The AGruled the proposal was “not of statewide interest”since it allowed just one licensee to run afull blown gambling facility through 2008 by designatinga specific Anchorage parcel, a 670,824square-foot lot, roughly 15 acres, on which Ms.Scott holds an option -- as a “gaming district,”the only place a video lottery terminal facilitycould be located in Alaska. A revised initiative,now under review, would require the sponsorsto collect enough signatures to place it on the2006 ballot. The new proposal would allow upto five video poker machines in bars and pulltabparlors with voter approval of them and thecreation of new gaming districts. Only one in anyborough of more than 30,000 would be allowed.ACCOUNT BETS IN NV CASINOSThe Las Vegas Sun reports that Nevada gamingregulators have begun reviewing new regulationsthat would permit telephone betting accounts withNevada casinos to be opened by out-of-state bettors.The new rules were presented to the StateGaming Control Board for consideration last week.Recommendation there would lead to a hearingbefore the Nevada Gaming Commission before theout-of-state telephone accounts could be opened.FIRST YOUBET, NOW AUTOTOTEFirst it was Youbet, buying International RacingGroup in Curacao in February. Now Autotote Enterprises,a division of Scientific Games, hassigned a five-year deal to supply simulcast servicesat Tote Investments Racing Service simulcastcenters on the island of Barbados, at an estimatedvalue of $5 million for the five years.Autotote president Rick Pullman said he hopedthe deal would “extend the successes we haveenjoyed in our other recent Caribbeanlaunches in St. Croix and the Bahamas.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorBATAVIA DOWNS BACK IN HTABatavia Downs, ready to return to live racingaction August 3, this time fortified by 586 VLTs,also is returning to HTA. The country’s oldestnight time pari-mutuel harness track, which wasfirst licensed in September of 1940, reopens withracing Wednesdays through Saturdays and a7:35 post time and a busy promotional schedule.HTA welcomes track president MartyBasinait back to its board of directors, andwishes him and his Western OTB managementteam the best of luck with the revitalized venture.KEY NYRA MAN OUT THE DOORThe Albany Times-Union reports today that theNew York Racing Association’s $200,000 a yearchief financial officer will be shown the door tomorrowmorning. CFO William Byrne would bethe fifth NYRA executive to get the boot in thelast week -- the racing secretary and director ofpersonnel preceded him -- but the Times-Unionalso reported that “a source familiar with NYRAbusiness affairs” said Byrne had renewed hiscontract just last month for another two years.The dismissals at NYRA come only days beforethe Getnick and Getnick law firm is scheduledto complete its monitoring report on NYRA,more than 18 months in the making, which willbe provided to a federal judge no later than Monday.A FUROR OVER CREDITThe announcement by Maryland governor RobertL. Ehrhlich yesterday that Maryland has gonefrom $1 billion in debt to a surplus of more than $1billion during his regime might be expected to generatejoy. Instead, the Democrats lashed out atthe Republican governor, giving credit for the turnaroundto everything from the weather tointerest rates and calling Erhlich’s claimsof credit “outrageous and bogus.” Obviously,nothing has changed in Maryland.July 20, 2005COMPUTER GLITCHES? C’MONThe NTRA, accused by some players that entrantshad past-posted selections in an online handicappingcontest, explained patiently that this was nottrue, and that several computer glitches had forcedNTRA to take down its leader board a number oftimes to correct computer malfunctions. We knowexactly what NTRA is talking about. One ofTucson’s famed monsoon lightning storms struckMonday night, and knocked our office modemclear into California. We were without Internetservice all day Tuesday and Wednesday morning,and hopefully by the end of this column a new modemwill have been installed. Glitches? You’redamn right. They happen.THE MEADOWS IS NEXTMagna Entertainment’s construction warroom, located in its headquarters in Aurora,Ontario, and called DreamWorks Stronach bythose who work there, is growing nervous asthe next Gulfstream season approaches, accordingto reports from Tom LaMarra in ThoroughbredTimes. Dennis Mills, MEC’s executiveVP, told LaMarra the company’s constructionguys “will be losing a lot of hair over thisone,” but predicted, “When we make this asuccess, others are going to see that the modernizationof the racetrack environment intoa multipurpose facility is working, and hopefullyothers will do the same.” The good news,from a harness racing point of view, is thatCharlie Thomas, an architect in MEC’s designdepartment, said that when Gulfstream is completeMagna’s focus then will turn to its HTAmember The Meadows, where the track willbe retrofitted with a racino. Whether the constructioncrews get Gulfstream finished in timefor racing is not the real issue in Florida.More important is if the state’s glaciallypaced legislators get off their butts andpass enabling slots regulations.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorA RENAISSANCE? GREAT NEWSWhen someone reports a renaissance in racingthese days, it is like man bites dog: it is news.That’s the word out of Prince Edward Island inAtlantic Canada, once known as the Maritimes,where new legislation and a newly built racetrackhave rejuvenated the sport. To fully understandand appreciate this, you have to realize thatPrince Edward Island is one of the hotbeds ofharness racing anywhere, on scale. It is difficultto drive around the island and not see trottersand pacers in backyard paddocks, and the peopleknow the sport intimately. One of the world’sgreatest trainer-drivers, Joe O’Brien, hailed fromthere. And things had been looking grim for awhile. Atlantic Lotto tried to revive things once,then pulled out, and trainer Ron Matheson says,“It was pretty dismal for a few years.” Then AtlanticLottery Corporation stepped in, and aracino is being built at the island’s main racingvenue, Charlottetown Driving Park, scene of amajor racing festival each summer. The physicalracetrack itself was rebuilt, casino subsidies alreadyare in place, and purses are up some 50%since last year. One of the island’s leading breeders,Brian Andrew of Meridian Farms, says, “Thestandardbred industry is a very important aspectof the agriculture scene on PEI, and if it’s goingahead, then it only means it’s going to help theeconomy as well -- in terms of sales, feed, harness,equipment, it all filters down.” A sign ofthe revival is the fact that on a recent card, 107horses were entered and drew in and another 99that were entered did not get in. That’s a sign ofrenaissance. Just thought that another reminderof what alternative gaming can do -- not that oneis needed -- might brighten an otherwise dullThursday. If you ever get a chance to go toCharlottetown for the Gold Cup and Saucer classicin summer, make the trip. You’ll findit entertaining and, who knows, perhapseducational.July 21, 2005ROBERTS KNOWS GAMINGNot sure it makes any difference, but if John Robertsis confirmed as a Supreme Court justice --anybody game enough to bet against that odds-onchoice? -- it will mark an unusual occurrence, ajustice who knows gaming. Roberts, while in privatepractice, participated in a 1999 case beforethe Supreme Court involving gaming, where theCourt ruled unanimously that banning televisionand radio advertising for casinos violated the FirstAmendment. Roberts, according to the Las VegasReview-Journal, did not appear during oral arguments,but prepared a brief and was “counsel ofrecord” for the American Gaming Association. Hewrote that an advertising ban could not be justifiedby “the perceived dangers of commercial casinogaming.” The briefs were filed in support ofthe Greater New Orleans Broadcasting Association,26 television and radio stations that won theircase against federal attempts to ban air ads forcasinos in Louisiana and Mississippi. Roberts andthe American Gaming Association’s presidentFrank Fahrenkopf both worked for the same Washingtonlaw firm, Hogan and Hartson, in 1986.Fahrenkopf said Roberts would “decide casesbased on the facts and law presented,” but added,“It’s nice to know there is a member of the courtwho at least knows about the industry and its background.He is aware of the real picture of the industry,and not just the myths and superstitionsstill in the mind of some of the media. That’s apositive, but it may not help us.”INSURANCE NOT SIMPLE, BOYSKentucky’s blue ribbon panel on jockey compensationinsurance is discovering that, and hasbegged off meeting a September 1 deadline tomake recommendations to Gov. Ernie Fletcher,saying it would be premature without further information.One member said, “A proposal isgreat, but if we can’t fund it, it’s not worth awhole lot.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorRECAPITALIZATION AT MAGNAMagna Entertainment announced today that, aspart of its strategic plan, its board has approvedrecapitalization that includes two binding termsheets for loan agreements with a subsidiary ofMI Developments. The first effectively replacesthe existing $77 million construction loan for aracino at HTA member The Meadows in Pennsylvaniawith a loan for up to $34.2 million to fund thedevelopment, design and construction of an alternativegaming facility at Remington Park in Oklahoma.It was not clear from the announcementhow the transaction would affect construction atThe Meadows, and a call to Magna executive VPand CFO Blake Tohana had not been returned atpress time. In addition to that development, certainterms of the existing $115 million GulfstreamPark loan will be amended, with a second termsheet for a bridge loan for a non-revolving generalcredit facility up to $100 million. MI Developmentsis the controlling shareholder of MagnaEntertainment, owning some 59% of MEC’s equitysecurities and 96% of the votes attached to itsvoting securities. Magna Entertainment presidentand CEO Tom Hodgson said he was pleased to adviseshareholders “of our continuing progress inimplementing our strategic plan, and our commitmentto achieving debt reduction through assetsales, a possible gaming partnership, and a possiblefuture equity financing.” The release said the recapitalizationplan would include “the sale of certainnon-strategic real estate, racetracks and otherassets to generate some $150 million, but did notspecify which racetracks Magna might sell. InOklahoma, where Magna Entertainment has beenpaying $132,857 a year to lease Remington propertyowned by the Oklahoma City Zoo, it was announcedthat the company had agreed to pay atleast $370,000 more a year to lease the Zoo land.The zoo had demanded an increase in anticipationof slot revenue from 650planned machines.July 22, 2005MOHEGANS ANNOUNCE PLANSAs promised, Mohegan Tribal Gaming Authoritypresident Robert Soper announced the Authority’splans for The Downs at Pocono yesterday, sayingthey would start with a $47 million constructionproject in September in order to have a temporaryslot machine facility ready at the trackby early 2006. A more ambitious project, to builda 400,000-square-foot casino and entertainmentcomplex, will start once the state has issued aconditional license. The entire project will cost$187 to $207 million, and when up and runningwould employ up to 800. In Harrisburg, meanwhile,the Pennsylvania Gaming Control Boardannounced it had adopted licensing standardsfor the track parlors, and could start acceptinglicense applications as early as September. Nofirm date has been set for the issuance of anylicenses, but Control Board spokesman NickHays said no licenses are expected to be issuedbefore early 2006.CAL-EXPO GETS ITS DATESThe California Horse Racing Board hasgranted dates for September 23 thru Dec. 30to the new Sacramento Harness Association,which will be headed by president RalphScurfield, former chairman of the CaliforniaHorse Racing Board. Chris Schick, longtimeCal-Expo official who built the track’s extensivesimulcasting network, will serve as generalmanager of the new group.HORSEMEN BETTER THINKJeff Gural, who has loaned Vernon Downs $1.5million in his quest to buy it, says he is “wavering”in view of a lack of horsemen’s support. Vernonhorsemen and their leaders had better stop playingpower games and start thinking.CONTROLLER JOB OPENA major member of HTA is looking for an experiencedcontroller. Call HTA at 529-2525.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorSCOTT DENIED LICENSE AGAINThe New York Racing and Wagering Board onFriday again denied promoter Shawn Scott a licenseto operate a race track in New York, citing“lack of credibility” and misstatements in previousdealings with the board. Scott’s attorneysaid he will appeal. In another development affectingVernon Downs -- and one that makes itunlikely the track will race this year -- a BankruptcyCourt judge postponed until August ahearing on the competing bids of Scott and NewYork real estate magnate and harness horseowner-breeder Jeff Gural. The judge delayedthe hearing after a morning of deliberation inwhich he decided it would be unfair to allow anamended Gural plan, offered a night before thehearing, to be heard on such short notice. Thejudge also wants both disclosure statements tobe debated at the same time, to allow creditorsto examine both and vote on one or the other.The Scott plan provides for a partnership withRaceway Ventures, in which they would pay $30million to get the track out of debt, loan it $10million more to improve it, and then sell it to aninterested buyer. Scott currently owns 52% ofthe track’s stock, and his plan would allow allshareholders to keep their stock. Under theGural proposal put forward by him andTrackPower, a Canadian partner, Gural wouldbecome sole owner of the track, according to theOneida Dispatch, and then allow previous shareholdersto buy back a certain percentage, providingthey can be licensed in New York. Gurallawyers were anxious to have the matter resolved,since Gural’s $1.2 million and $675,000 loansare running low, and the lawyers say they will begone by Aug. 23. The Gural agreement also containsa clause that would allow him to back out ofthe offer on Sept. 15 if his plan has not been approvedby that date. The judge wants toknow if Gural and TrackPower can paycreditors the $32 million they are owed.July 25, 2005In another Gural development, groundbreakingceremonies were held in the town of Nichols, NY,of the route 17 expressway, for the beginning ofdemolition and construction of Gural’s TiogaDowns, which he hopes to open with as many as750 video lottery terminals in the spring of 2006.PURDON ON TRIAL IN NZAfter 14 months of investigation, during which twoof the principals reportedly committed suicide,leading trainer Mark Purdon is on trial in NewZealand in the “Blue Magic” case, involving useof propantheline bromide. The two key figureswho are dead are John Seaton, one of NewZealand’s most prominent owners, who also wasto have faced charges, and Robert Asquith,charged with supplying the illegal drug. Australiancoroners, who work at their own pace, still havenot confirmed the deaths as suicides. In a sidelineto the matter, assault charges were withdrawnagainst Purdon’s mother-in-law, who was accusedof driving her car at a blue magic protester outsideof Purdon’ stable last July and then assaultinghim as he lay on the road.FOXWOODS IN DISPUTEConnecticut state regulators have orderedFoxwoods Resort Casino to shut down an Internetpromotion, marketing a “Play Away” commercialfor remote play, but the tribe has refused. The stateattorney general says, “This game has to stop.”We’ll see who wins this one.WE KNOW YOU, TOM LAMARRAIn an embarrassing error, Executive Newsletterlast week misidentified veteran racing writer TomLaMarra as being with Thoroughbred Times. Tomis, of course, news editor of The Blood-Horse. Weare avid readers of both excellent thoroughbredpublications, but like the New York Times, whichnever acknowledges mistakes, we attribute thisto an “editing error.” You can call it a plaindumb mistake. Sorry.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor July 26, 2005MEADOWS SEEMS SECURE HEY GOV, HOW ABOUT RACINGLast week, when Magna Entertainment announcedit was redirecting construction monies of his own, and we apologize if we cannot under-The governor of Indiana, Mitch Daniels, has logicfrom The Meadows to Remington Park, HTA inquiredof MEC CFO Blake Tohana how the re-gambling machines openly operating in many ofstand it. The governor now says that since videofinancing might affect HTA member The Meadows.Mr. Tohana did not reply, but yesterday illegal, one way to solve the problem is to legal-the state’s bars, social clubs and truck stops arean MEC conference call gave a hint. The ize them. Daniels says that while he generallycompany’s chief executive, Tom Hodgson, identifiedfive key properties as core operations consider that approach as an expansion. Okay,opposes an expansion of gambling, he wouldn’t“with the greatest potential for value creation,” governor, if you say so. But logic would also seemand The Meadows was not one of them. He did to dictate that legalizing pull tabs or VLTs orsay, however, that MEC would “aggressively whatever at Indiana’s two racetracks, which employhundreds, would not be an extension of gam-pursue alternative gaming opportunities” atRemington Park, The Meadows and Gulfstream bling either, since people already go there toPark, and said results at The Meadows could gamble.jump by between $50 million and $60 million withthe introduction of slots. So while MEC said it 17 PAY UP FOR $1.5 MIL HAMBOplans to sell at least $150 million worth of assetsin the next 12 months to pay down debt, each this morning to enter the sport’s richest trot-Owners of 17 3-year-old trotting colts paid $12,500The Meadows is not likely to be one of those ting race, the $1.5 million Hambletonian at theassets. MEC recently sold Flamboro Downs in Meadowlands. Eliminations will be raced Saturdaynight to determine the field for the classic onOntario for $64 million, taking an impairmentcharge of some $10 million, which Hodgson said Saturday, August 6. Ken Warkentin and Classicwas “not pleasant, but the right strategic move.” Photo are the early favorites. The HambletonianMEC also owns Thistledown in Ohio, Portland Oaks, the $750,000 companion feature of theMeadows in Oregon, and Great Lakes Downs Hambletonian, drew 27 filly entrants, and threein Michigan, among other properties, along with eliminations will be raced on Saturday night’sthe Horseracing TV cable network and a onethirdinterest in the Racetrack Television Net-Meadowlands’ card.work.BETFAIR SEEKS FOOT IN DOORControversial Betfair, which has circumvented Australianopposition by seeking a license in Tasmania,is seeking to do the same here. It has approachedthe HBPA, NTRA, Breeders’ Cup andindividual tracks for partnering, but the companyhas been involved in another investigation in Australiaafter stewards found an “unusuallyhigh” amount of money bet on two odds-onfavorites to lose and said the circumstanceswarranted further investigation.NANCY MOVES; WE HAVE HERNancy Hanks, world champion trotter from 1892to 1894, will be reburied, along with 17 other greathorses, at historic Hamburg Place in Kentucky.Preston and Anita Madden and their son Patrick,who own the nursery that has been in existence inthe family since 1898, say the new cemetary willbe more accessible to the public. HTA, meanwhile,will offer a beautiful 1897 chromolithograph ofNancy Hanks, driven by her famed driver BuddDoble, in its College Scholarship Art Auctionin Lexington Saturday morning, Oct. 1.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorSUN SHINES IN FLORIDAThe Speaker of the House in Florida, Allan Bense,now says he could call a special session in October,or possibly November, to write rules for SouthFlorida slot machines. “I think it’s going to haveto happen,” Bense was reported to have told histop deputies, a pleasant change from thelegislature’s adjournment last spring without takingany action on the matter. Bense was quotedby south Florida’s Sun-Sentinel as saying Houseand Senate negotiators are inching closer to compromiseson the two chief slot issues -- how muchto tax the revenue, and whether to allow Vegasstyleslots or only bingo-style machines.BROCK COULD BE BIG PLAYERWhen Bob Roberts writes racing in the ClevelandPlain Dealer, people pay attention. Itwas news, therefore, when Roberts speculatedin his dispatch this morning about whetherBrock Milstein, the chairman of HTA memberNorthfield Park and senior VP of HTA, mightbe interested in buying Thistledown if MagnaEntertainment should decide to sell it. Thatpossibility arose earlier this week when Magnapresident and CEO Tom Hodgson leftThistledown out of his list of Magna’s “premier”tracks, and hinted that some lesser Magnalights might be sold. The Meadows nearPittsburgh also was not named by Hodgson asa premier asset, although he did say its businesscould be grown by $50 to $60 million withthe expected advent of slots in Pennsylvanianext year. Roberts went farther in his speculation,asking if Milstein “would be more interestedin The Meadows” if it were put up forsale, and he quoted Northfield’s CEO, TomAldrich, as saying, “That’s a very good question.Brock’s heart is in Cleveland, but slotsare not in Ohio.” Roberts suggestedthat if it did, Magna “might be cradlingThistledown in its arms.”July 27, 2005DARK HEADLINES DOWN UNDERChemicals in racing are not solely a North Americanissue. They are commanding black headlinesin New Zealand and Australia as well. Yesterday,one of New Zealand’s best known trainers,Mark Purdon, pleaded guilty inChristchurch to acting “in a manner detrimentalto the interests of harness racing.” Purdonadmitted to administering “a substance” twiceto a pacer in his care, but said he did not know itwas propantheline bromide, or Blue Magic.Purdon said he was introduced to the supplier ofthe stuff, Robert Asquith, by his principal owner,John Seaton. Both are dead, reportedly suicides,although the Christchurch coroner has not gottenaround yet to officially confirming that muchpublicized fact. Purdon faces suspension fromracing and a fine of up to $25,000 when he issentenced in two weeks.While this was going on in New Zealand,Sydney’s leading thoroughbred trainer GaiWaterhouse was making headlines in Australia.Her horse Love You Honey turned up positivefor cocaine after a race April 25, and Ms.Waterhouse now says her daughter reportsSydney is “awash” with cocaine and the positivecould have resulted from stable employeesvisiting nightclubs where cocaine use is “epidemic”according to Ms. Waterhouse’s son anddaughter. One groom in the Waterhouse stablehas admitted to being a cocaine user, and Ms.Waterhouse insists “nobody has given this horsecocaine.”BIG MONEY ON THE LINEFour $250,000 finals in the Classic series for olderhorses, and two $100,000 eliminations for nextweek’s $1.5 million Hambletonian, will be racedSaturday night at the Meadowlands. In addition,there will be $632,000 in purses on Mohawk’Saturday night card.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWOODBINE LIVE! AND HUGE!Woodbine Entertainment Group, in partnershipwith The Cordish Company, a Baltimore-baseddevelopment company, announced today a $310million project to develop a 25-acre entertainmentdistrict on Woodbine’s spacious groundsnear the Toronto airport. To be called WoodbineLive!, the plan is to transform WoodbineRacetrack into a thriving entertainment destination,including movie theaters, a multi-purposelive performance hall, restaurants, bars, clubs,retail shops, and a hotel with pool oasis, all in avibrant mainstreet setting. The mayor ofToronto, David Miller, called the project “remarkablebecause urban design is such an integralpart of the plan. These storefronts, walkways,fountains and so on have the potential tocontribute greatly to the overall beauty of ourcity” Woodbine Live! will be located on thenorthwest side of the track, accessible off busyHighway 427 by two main entrance arteries.Woodbine chair and CEO David Willmot said,in announcing the project at a press conferencetoday, “We wanted a tourist and entertainmentdevelopment that is synergistic with the energyand excitement of horse racing, as opposed to aconventional development that goes dark at 5p.m.” He said the Cordish company shared thatvision and brings a wealth of experience to creatingit. Willmot said some 1,100 jobs will becreated over the two-year construction period,and 2,300 will be generated permanently whenthe complex is completed. Woodbine Live! isscheduled to open by the end of 2007.POULIN IN DEEPER IN NYThe FBI has revealed that former harness trainerdriverRene Poulin told them that he milkshakedhorses for thoroughbred trainer GregoryMartin for five months in 2003, and thatone gambler said after one race, “Youmust have had in hi-test today.”July 28, 2005TWOGUNS SHOT DOWNThe Bureau of Indian Affairs has rejected anIndian election that was underwritten in part byEmpire Resorts, the owner of Monticello Raceway.Empire, hoping to build and manage a casinoowned by the Cayuga Nation, helped backan election in which three tribal members replacedthe traditional government of the Cayugas,a small New York tribe without a reservation.The three -- Timothy Twoguns, GaryWheeler and Michael Wheeler -- were told byBureau of Indian Affairs regional directorFranklin Keel that “the level of support forchanging the form of government of the CayugaNation is insufficient,” and that the federal governmentwould not recognize the election.Twoguns had said Empire Resorts had paid forexpenses of the tribal election, which wasshunned by members who only recognize traditionallyappointed chiefs. The traditional sixmembergovernance of the tribe includes at leastfour members who oppose casinos, includingClint Halftown, who originally signed a deal withEmpire and later announced opposition to thepartnership, according to the Albany TimesUnion. The paper quoted Joseph Heath, a lawyerrepresenting some of the traditional tribemembers, as saying the ruling is “a severe blowfor Empire,” which he said “had tried to overthrowthe government of the Cayugas.” AssemblymanJames Brennan, a Brooklyn Democratwho took part in the hearings on Indian landclaims in New York state, said, “Empire wasclearly involved in an effort to manipulate theelection and sort of hijack the will of the tribe.”It was Brennan who wrote the Bureau of IndianAffairs in late June alerting them that Empirewas trying to influence the Cayuga governmentto ensure that it would settle land claims againstNew York in return for rights to a casino. AnEmpire spokesman declined to discuss thematter beyond a prepared statement.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTAX LEGISLATION INTRODUCEDThree U.S. senators have introduced legislationthat could revitalize horse racing ownership if itpasses. Republicans Mitch McConnell and JimBunning of Kentucky and Democrat Blanche Lincolnof Arkansas have introduced the Equine EquityAct, which would put horses on an equal taxplane with other enterprises. Jay Hickey, presidentof the Washington, DC-based AmericanHorse Council, said the legislation was wellnamed, since “it would eliminate the disparatetreatment that horse owners and breeders receiveunder several outdated and ill-conceivedfederal laws, including the federal tax code.”Under the proposed legislation, horses would bemade eligible for capital gains treatment after 12months, similar to other business assets; all racehorses would be placed in a three-year categoryfor depreciation purposes; and horses would becomeeligible for federal emergency assistanceunder circumstances presently enjoyed by otherlivestock and crop producers.Under the present tax code, gains from sales byindividuals of property used in a trade or business,including horses, qualify for long-term capitalgains and are subject to the maximum capitalgains tax of 15%. But where they are held forbreeding, racing, showing or draft purposes, theymust be held for 24 months to qualify for the 15%rate, unlike all other business assets, exceptcattle, which qualify after being held for 12months. Passage of the new legislation would endthis discriminatory treatment of horses under thetax code and allow owners to enjoy the reduced15% rate after holding a horse for one year, exceptwhere it was held specifically for sale.Horses also would be eligible for the same disasterassistance as other livestock, and senatorMcConnell says his new bill will removethat unfair tax burden “that discouragesinvestment in the horse industry.”July 29, 2005OHHA DROPS OUT OF OHRIAThe Ontario Horse Racing Industry Association,long considered the shining example of effectivecooperation in horse racing, suffered a seriousblow yesterday when the Ontario HarnessHorse Association announced its board hadunanimously approved withdrawing fromOHRIA. The chairman of OHRIA, Tom Deacon,said of the defection, “OHHA has alwaysbeen a restless participant in OHRIA. NowOHRIA is left to redefine itself. At nextWednesday’s OHRIA meeting we will determinewhat will happen next. It is my hope thatthe remaining participants will wish to continuewith the organization even without their vagabondfriend.” OHRIA, under its former director,Jane Holmes -- winner of HTA’s MessengerAward in 2002 for her pioneering work inhelping unite the industry in Ontario -- playeda significant role in working with the OntarioLottery Commission to bring slots to Ontario’s17 tracks. Ms. Holmes now is a key memberof the executive staff at Woodbine.$90 MILLION TO GO ONLINEThat’s what International Game Technology paidthis week to acquire SanFrancisco-basedWagerWorks, which provides content to Internetgaming sites including the World Poker Tour’sonline casino and Richard Branson’s Virgin Groupin Great Britain. IGT chairman and CEO T JMatthews says the purchase will let IGT distributegames across the Internet, wireless phones,PDAs and interactive television.HTA, HANOVER HONOR GROOMHTA chairman Chris McErlean and Hanover ShoeFarms president Jim Simpson will present HTA’sCaretaker of the Year Emma Johansson with a JimPonter oil painting of herself with her two championsof 2004, Windsong’s Legacy andHousethatruthbuilt, during the Meadowlands’huge racing card tomorrow night.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorDOG DAYS FOR GREYHOUNDSLast week was not a good week for the greyhoundindustry. In Connecticut, once popularPlainfield Greyhound Park announced it wouldclose its doors after its Aug. 12 simulcastingsession. The track had given up live racing threemonths ago, but was continuing with simulcasting,but is abandoning even that refuge now afterbeing unable to pay for incoming signals.Karen Keelan, executive vice president of the30-year-old track, said live racing could returnnext year on a limited basis, but no applicationshave been filed with the state. Keelan said,“With the casinos having racebooks 15 minutesaway, they took the majority of our customers.We were unable to sustain the financial losses.”The town of Plainfield, meanwhile, said it willcontinue to bill the track some $90,000 in annualproperty taxes, but has not received the$50,000 payment due July 1. Plainfield Greyhoundopened in 1976 and at its zenith contributedmore than $2 million a year to the town’seconomy, and $4.9 million to the state in 1976.Last year Plainfield got $155,000 and Connecticut$109,394. The track’s viability began to fadewhen Foxwoods opened in 1992 and worsenedwhen the Mohegan Sun began operations in1996. A local area developer plans to build adomed auto racetrack and convention centernearby and incorporate the dog track in it, andhis plans were approved by the city’s planningand zoning commission, but now are being challengedin court.In Iowa, meanwhile, the former president of theNational Greyhound Association revealed thathe had been a hidden 50% owner of a kennel atthe Bluffs Run greyhound track in Council Bluffs.According to the Des Moines Sunday Register,well-known breeder and owner Herb(Dutch) Koerner also admitted workingwith his partner to have ineligible dogsfalsely certified as Iowa-breds. No chargesAugust 1, 2005have been brought against Koerner as yet.No charges have been brought in Tucson, either,against a kennel owner who received front pagetreatment in local papers after dozens of dogs werediscovered in flea and tick infested quarters. TheArizona Department of Racing apparently did notconsider the situation serious enough to warrantpenalties, but the Arizona Daily Star found it newsworthyenough to give the sport a black eye inArizona’s second largest city.WISCONSIN GOV PULLS PLUGJim Doyle, the governor of Wisconsin, has vetoeda Republican proposal to extend video gaming andsimulcasting beyond Indian reservation borders.Doyle said in his veto message that “the expandeduse of video gaming devices for pari-mutuel wageringcould raise serious constitutional concernsby expanding gambling.” Wisconsin’s constitutionallows horse and dog tracks and Indian casinos,but restricts the tribal casinos to reservations ortribal trust land.IN INDIANA, AMBIGUITYThe Ft. Wayne, Indiana, Journal Gazette, confusedby mixed signals on video gaming in thestate, is asking Gov. Mitch Daniels to clarify hisadministration’s position. The paper noted thatin one corner the Indiana State Excise Police arewriting citations, confiscating money and disablingsome of the 20,000 to 25,000 estimatedCherry Master machines in bars, taverns, fraternalorganizations and truck stops across thestate, while the Hoosier Lottery is seeking a legalopinion on whether it has the authority to offervideo gaming machines. Daniels declined aninterview, but did say, “I prefer frankly to see usget to a point where if these machines are goingto be available recreation in Indiana that they aredone above board in a regulated fashion and removethe hypocrisy of the status quo.” Yourtwo racetracks would be a perfect setting,governor.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorBETFAIR AND THE BACK DOORBetfair, the English betting exchange that is tryingdesperately to get a foothold in America andAustralia, and is almost universally opposed bythe racing industry, has found a chink in the Australianarmor by hustling Tasmania, the islandof 456,000 people that lies directly south of Australia.The premier of Tasmania, Paul Lennon,wants Betfair, and the harness racing chairmanJohn Hammond recently gave his personal approvalof letting the exchange operate there, althoughhis board has not taken an official position.The thoroughbred industry strongly opposesthe idea, and so does racing in Australia,and Hammond accused the head of thoroughbredracing on the island of pushing the Australianview rather than thinking of Tasmania.Hammond went farther, suggesting that HarnessRacing Victoria and Australia’s other leadingharness racing bodies “sit down with theBetfair people, as he did, and hear what theyhad to say.” John Anderson, the chief executiveof Harness Racing Victoria, had a quickanswer to that. He said it will never happen.“We would never even entertain the thought ofmeeting and talking to Betfair. Frankly, I amstaggered by John Hammond’s personal view onthe whole issue.”JUDGE CLEARS PA SLOTSA United States District Judge has dismissed thelawsuit filed by a disgruntled applicant againstPennsylvania governor Ed Rendell and other legislators.Pittsburgh developer C. J. Betters, whowanted to build a thoroughbred track and racinoin Pittsburgh, had filed the suit, but the federaljudge tossed out the action on grounds that thestate and its top officials are immune from liability.The judge also dismissed the GamingControl Board from the suit.Pennsylvania’s Supreme Court upheld theconstitutionality of the slots law last month.August 2, 2005LOTTERIES FEELING A PINCHWith lotto sales in what the New York Post calls“free-fall -- down 22% through July 24 over thesame period last year,” speculation is that thegrowing popularity of VLTs are cutting sharplyinto Lotto, Mega Millions and keno-like QuickDraw, all of which are down from last year. Lottosales, for example, totaled $157.4 million thisyear thru three weeks of July, as opposed to$201.7 million in the same period last year. ThePost also said experts expect that “huge videogamingparlors planned for Yonkers and Aqueduct”will hurt Lotto and other games even more.Interestingly, scratch-off instant games havedone well, showing a 10.6% increase this yearover last. And no tears need be shed for the NewYork lottery overall, with sales up 5.3% over thesame period last year.In a related development, Informa Telecoms &Media’s latest report, Mobile Gambling, projectsthat form of gambling as poised to rocket fromcurrent annual revenue levels of $1.2 billion to$7.6 billion by 2010. The author of the report,Stuart Dredge, said that to reach that goal, operatorsand the companies that run mobile gamblingservices will have to negotiate legislative,technological and cultural hurdles. The reportsays Europe is likely to remain the largest marketfor mobile gambling, followed by Asia-Pacific,with North America described as “the great unknown”because of legislative and regulatory issues.ESTOK, WOLF, FLY HTA COLORSHTA chief counsel Paul Estok and former HTAexecutive assistant Maury Wolf spoke on legaland rebating issues in racing today at BennettLiebman’s Albany Law School symposium inSaratoga Springs, NY. The two appeared with EdMartin of RCI and Greg Avioli of the NTRA,the panel moderated by New York RacingBoard member Cheryl Buley.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorSOME SLIGHT DISAGREEMENTSBennett Liebman’s annual Albany Law SchoolSymposium on racing drew a standing room onlycrowd yesterday, and produced some friendly anda few not-so-friendly jabs from participants withdiffering viewpoints. Perhaps most significantwere the glowing remarks of Neil Getnick, thecourt-appointed federal monitor of New York RacingAssociation’s reformation movement. Getnicksaid, in telling how NYRA had taken steps to correctdeficiencies, “Simply put, NYRA has unequivocallysaid ‘yes’ to racing integrity.” NYRAofficials obviously were elated at Getnick’s remarks,president Charles Hayward being sopleased that he joked from the podium, “I thinkit might be a good idea for Neil to come up andgive his speech again.” Hayward said “The monitorhas been the best thing that NYRA has had inits recent history.” And NYRA co-chairman SteveDuncker greeted Getnick after his presentationby saying, “Absolutely stunning.” Not quite asenthusiastic or pleased over Getnick’s remarkswas Michael Hoblock, chairman of the New YorkRacing and Wagering Board. He said in a writtenstatement he was “surprised, confused anddisappointed over Getnick’s remarks,” addingthat “they were not neutral or impartial as youwould expect from an independent monitor.” Partof Hoblock’s displeasure came from the fact thatGetnick never met with Hoblock during the pastyear and a half of his monitoring of NYRA. TomPrecious, writing for Blood-Horse, said, “Formonths, industry officials have privately criticizedGetnick for being too close to NYRA officials.”Also sparring were Hayward and Jim McAlpineof Magna Entertainment. McAlpine said Magnawas “very interested in participating in thebidding process” for the NYRA franchise, butHayward took strong exception to some ofMcAlpine’s references to NYRA’s pastand counterattacked with pointed questionsabout Magna.August 3, 2005LEADING TRAINER GROUNDEDSean Campbell, the leading trainer at SaratogaGaming and Raceway, has been suspended fromthe track pending an investigation of charges ofanimal cruelty. All of his horses have beenscratched for the last four days, according to CBSchannel 6 in Albany. The station said the NewYork Racing and Wagering Board was followingup on claims by witnesses who said they sawCampbell beating a horse. Chairman MichaelHoblock said such claims were the basis of manyinvestigations, and that it could take three to sixmonths to resolve the issue. Saratoga’s vicepresident of racing, Skip Carlson, told the stationthe matter was in the hands of the racingboard, and the track would support any decisionit made.Batavia Downs, meanwhile, announced that as itresumes live racing after an 18-month hiatus, itwill continue its policy of not allowing family membersto compete against one another. Managementwill not allow brothers or immediate familymembers to drive in the same race, a move criticizedby some and applauded by others in its drivingcolony. Michael Kane, vice president of racingand gaming for Batavia Downs, said, “We’renot casting any aspersions upon anyone. Thereis the potential for things to take place that arenot in the best interest of racing and by enforcingthis rule we eliminate that potential.” The rulecarries special significance at Batavia becausebrothers Kevin Cummings and John CummingsJr. finished first and second in races won at theBuffalo Raceway meeting just concluded. JohnCummings Jr. called the rule “a great injustice,”saying he drove the winners of $445,587 and hisbrother $480,212 at Buffalo. But trainer-driverRob Beback complimented management for thinkingof public perception. He added, “If you haveto make a split-second decision of letting a guygo at the first quarter, you’re not going topark your brother.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor August 4, 2005SCOTT’S LAWYER YELLS BIAS A REALLY FAR OUT TRACK IDEADeborah Deitsch-Perez, who carries the legal If you haven’t been able to contact Williambriefcase for Shawn Scott, has accused the state Coplen, the former general manager of the Redhearing officer who found Shawn Scott “not a Mile in Lexington, there is a good reason. Hetrustworthy person” of making false assumptions is now with an organization called Exchange UnlimitedLLC, and he has been spending muchand ignoring evidence. The charges, in the SyracusePost-Standard, said, “What the hearing officerdid was he took the testimony of (racing Mongolia, on the northern border of China.of his time in Ulaanbaatar, the capital city ofboard) staff at face value...and then found a reasonto dismiss the testimony of witnesses for taken by the Asia-Pacific Equine InvestmentWilliam was a prime mover in a project under-Scott.” The hearing officer, Russell H. Baller company, formed last year in Lexington to establisha world-class venue and racing product.Jr., heard 15 days of testimony last winter, in connectionwith a Scott appeal of the racing board’s Founder Joe Flynn heads the group, which includesformer Kentucky governor Martha2003 denial of a license to operate racing in NewYork. Ms. Deitsch-Perez said, “You might as well Layne Collins, horseman Larry Richardson,not have had a hearing.” Baller said in his reportthat Scott lied to state regulators on his li-Asia-Pacific Sports Promotion, a subsidiary ofarchitect Cheanault Woodford, and Coplen.cense application and then submitted false documentsto cover up his lies. He also reported that operation in cooperation with the Mongolianthe company, will operate a racing and gamingScott had appointed a convicted felon to run the company Roaring Hooves, which is comprisedtrack and gave testimony that was “not credible.” of numerous individuals and existing racing organizations.Horses are big in Mongolia. YouBaller concluded that Scott “is not fit to be licensedas a track manager in harness racing.” In remember the Mongol hordes from your historyclasses. Flynn got the idea when flyinga separate development, the Washington Postcarried an editorial saying “promoters of legalizingslot machines in the nation’s capital were vir-Ulaanbaatar, and he made inquiries of the U.S.over a racetrack as his plane approachedtually thumbing their noses at D.C. election laws. Ambassador about racing there. Mongolia wasFortunately, the board found that gambling supportershad committed ‘significant and pervasive race meeting there in 2007.enthusiastic, and the group hopes to hold a fullirregularities and improprieties of a magnitudenever previously experienced in this jurisdiction’ENTHUSIASM IN ALBERTA, TOOand it imposed a penalty to match: For the first There is optimism in the province of Alberta, too,time in its history, the board levied fines in the where councillors in Calgary approved, by a votecontext of an initiative petition, in the amount of of 8 to 1, to allow land proposed for a major new$622,880.” The paper said offshore gambling entrepreneurswho backed the project spent, acton,writing in the Calgary Sun, said the Unitedracetrack there to be rezoned. Jonathon Huntingcordingto the board’s counsel, at least $1.7 million.The fines, however, were against a local matters to arrange, including submitting detailedHorsemen of Alberta still have some regulatorycitizen’s committee with $3,410 in the bank. proposals and obtaining land scraping permits, butScott’s name had appeared earlier duringthe Post’s coverage of Virgin Islandwithout difficulty. Dr. David Reid, chairman ofHuntington thinks those issues will be resolvedbackers of the initiative.Horse Racing Alberta, called the council approval“a huge day for horse racing.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor$1.5 MILLION HAMBLETONIANHarness racing’s biggest and most important race,the Hambletonian, takes center stage at theMeadowlands tomorrow afternoon. CBS willtelevise the event, as usual, starting at 2 p.m.eastern time, with Gary Seibel again emceeingthe show, working with the talented Caton Bredarand Jay Privman. The presence of the threeknowledgeable racing personalities, and the interestingcast that includes Chicago-area ownedfavorite Classic Photo, a winner of $411,801 thisyear, with Ron Pierce driving, as the favorite,assures an exciting afternoon. The colt, an$87,000 yearling at the Kentucky StandardbredSale, enters the classic with four straight victoriesin races worth $100,000 or more. He is oneof two colts by S. J.’s Photo, is trained by ErvMiller, and is owned by H. W. Wright of Morton,IL, Dennis and Kevin Lakomy of ChicagoHeights, IL, racing under the nom de course ofMystical Marker Farms, and Jack and PeggyHood of Valparaiso, IN. Another S. J.’s Photo,Vivid Photo, owned by trainer-driver Roger Hammerof Bedford, PA and Todd M. Schadel of Gratz,PA, was a $30,000 yearling at the Harrisburg, PA,Standardbred Sale and has won five straight and9 of 11 races this year entering the Hambletonian.Others in the richest Hambletonian ever, and theirpurchase prices as yearlings, areGettindownanddirty, $80,000; Mr. Dream Om,$30,000; Muscle Bound, $175,000; MuscleMemory, $17,000; Northern Ensign, $40,000 Canadian;Racino, $30,000; Self Professed,$30,000; and Strong Yankee, $52,000. In an interestingcontrast last night at the Meadowlands,Keystone Savage, a $12,000 yearling, won thesport’s richest race for 2-year-old trotters, the$460,000 Peter Haughton Memorial, while thecompanion $390,000 Merrie Annabelle for 2-yearoldtrotting fillies was won by Miss Wisconsin,who cost $150,000 last fall as ayearling.August 5, 2005MEADOWS A “HIGH PRIORITY”Magna Entertainment president and chief executiveThomas Hodgson, in a press conference thismorning, indicated that MEC is looking for a partnerto operate The Meadows’ racino when it isup and running, possibly in 2006, and althoughhe did not name names industry speculation isthat Boyd Gaming may be the partner. Hodgsonsaid of The Meadows, “There is no financing inplace (for building the racino) but clearly it’s apriority.....It’s very high priority for us.” Hodgsonsaid Magna did not intend to sell Gulfstream orSanta Anita, but that “the sale of excess real estateis absolutely the critical part of our debt-reductionstrategy.” Hodgson revealed that MagnaEntertainment lost $26.9 million in the threemonths ended June 30, bringing total losses for2005 to $31 million, and three and one-half yearlosses to $215,128,000. “Our financial resultsfor the three and six months ended June 30 aredisappointing in absolute terms,” he said, “but atthe same time they are in line with our expectationsfor 2005 and are consistent with our previouslystated expectation that Magna Entertainmentwill continue to incur operating lossesthrough 2006 but is expected to achieve sustainableoperating profitability in 2007 and beyond.”MI Developments, the parent company of MagnaEntertainment, reported earnings of $22.3million in the three months ended June 30, up87.3% over the same period last year. Revenuesrose 16.4% for that period, and net income rose67% and revenues were up 14.7% for the firstsix months of the year. In New York, the NewYork Racing Association reported drops of15.17% in attendance and 11.2% in handle atBelmont’s summer meet, in part reflecting the absenceof a Triple Crown bid in the BelmontStakes. TVG, meanwhile, passed $100 million inbets during its second quarter, a first, andYoubet.com reported record second quarternet income of $1.3 million.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTHE SPORT’S GREATEST DAYHarness racing’s greatest day turned out to be justthat on Saturday, with new racing records, unprecedentedpurses and the largest handle in thesport’s history -- over $9 million bet at the Meadowlandsand off-track. Between its Friday nightand Saturday afternoon programs, the Meadowlandsoffered eight races with purses of$300,000 or more, and $3.9 million total purseson Hambletonian Day. They were topped, ofcourse, by the $1.5 million Hambletonian andits “country boy” winner, Roger Hammer, whooutsmarted all of the sport’s top stars in a flawlessdrive with his ‘county fair trotter’ that heand his partner bought for $30,000 as a yearlingand now has winnings of $846,574. Hammerhas been a star at the Pennsylvania fairsfor decades, and a familiar figure at the state’spari-mutuel tracks as well. He is cagey, and hestayed away from last Tuesday’s Hambletonianpress conference, opting to race at the countyfairs which he dominates. Hammer credited MalBurroughs, who became the second amateur towin the Hambletonian when he guided hisMalabar Man to victory in 1997, with helpinghim make his decision to drive Vivid Photo himselfand not use one of the Meadowlands’ elitecorps of catch drivers. “After I won the elim,”he told Dave Little of the New York Daily News,“Mal told me, ‘Drive him yourself. You only getone chance in a lifetime to have a shot to winthe Hambletonian.” Hammer took it, and no onecould have driven the horse better. He said hefigured everyone thought he would get crazy andgo for the lead, but he said he planned all alongto follow the favorite, Classic Photo, to the headof the stretch. “I figured I’d give my horse abreather for a change, and I knew if he carriedme that far my horse could outbrush him. Henever gives it up.” He was right.“I waslike a politician,” Hammer said. “Ifooled everybody and then I won.”August 8, 2005TRY THIS FOR HORROR STORYImagine finding yourself in a courtroom with morethan a dozen lawyers, and a judge asking them allto agree. That was the scene last Friday in Utica,NY, where a bankruptcy judge listened to the competingplans for Vernon Downs submitted by JeffGural and Shawn Scott. The startling surprise wasthat only one lawyer had any objection, and thatlawyer, representing unsecured credited DominickGiambona, made some points that the judgethought reasonable, and which Gural’s plan alreadyhad amended. Gural is offering to raisepurses sixfold at Vernon Downs if his plan is accepted,and offer high purses at his Tioga Downs,basing them on potential slots revenue at bothtracks and a combined circuit. If Vernon’s horsemencannot understand the benefit of this aftersitting idle for a year, and if their advisors don’tcouncil them to support the idea, they may live toregret it.BLUMENTHAL’S BANSThe attorney general of Connecticut, RichardBlumenthal, does not like gambling and never did.He particularly does not like Internet gambling,considering it a violation of the 1961 Wire Act. Amonth ago the state shut down a Web promotionby Foxwoods Resort Casino, one of the biggestgambling operations in America. Earlier it hasblocked the Connecticut Lottery from introducinga computer-based gambling game. Now it has gonea step farther, and told Penn National Gaming thatit will not allow Connecticut residents to wagerusing eBet USA. Paul Young, executive directorof the Special Revenue Division in the state, said,“In Connecticut you cannot use the Internet foronline gambling. Period. Telephone gambling isokay.” In response to the Connecticut stand, PennNational has posted a notice on its eBet Web sitethat reads, “By order of the state of Connecticutwe can no longer accept wagers from Connecticutresidents.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorBUCCI GUILTY, SERIOUS TIMEDan Bucci, former general manager of LincolnDowns, was found guilty yesterday of briberyconspiracy and wire fraud by a federal jury inMassachusetts, where his trial was moved afteran earlier trial had resulted in a deadlocked juryin Rhode Island. This federal jury heard twoweeks of testimony and deliberated three daysbefore it found Bucci and Nigel Potter, theformer chief executive of the British firmWembley PLC, and the company itself, guilty.Bucci was convicted of one bribery conspiracycharge and four wire fraud counts, Potter wasconvicted of the bribery conspiracy and threewire fraud counts, and the company was deemedguilty of the bribery charge and two wire fraudcounts. The charges involved plotting in 2000and 2001 to bribe the law firm of former RhodeIsland House Speaker John Harwood to win legislativesupport for additional video lottery terminalsfor their dog racing track in Lincoln,Rhode Island, and blocking plans of theNarragansett Indian tribe to build a rival casino.Defense attorneys claimed the pair were notplanning a bribe, but rather a multi-million dollar“performance bonus” for Dan McKinnon,Harwood’s law partner who was Lincoln Downs’legal adviser. No payment was ever made, andHarwood and McKinnon were not charged withany wrongdoing. Bucci and Potter are free onbond until their Oct. 28 sentencing, when Buccifaces up to 25 years in prison and a $1.25 millionfine. Potter could get up to 20 years and a $1million fine. The track, since sold, faces $500,000on each of the three counts on which it was convicted.Lawyers for both Bucci and Potter saidthey plan to appeal. The trial had been movedto Worcester, Massachusetts at the request ofdefense attorneys after the first trial in Providence,Rhode Island, produced no verdict.Potter testified this time in his owndefense, but Bucci never took the stand.August 9, 2005FARALDO BACKS SCOTT PLANThe chairman of the United States Trotting Association,who also serves as attorney for the HarnessHorsemen’s Association of Central New York,was quoted today as preferring Shawn Scott’s planfor purchasing Vernon Downs to one put forth byharness horse owner-breeder Jeff Gural.UticaOD.com quoted Joe Faraldo as saying, “Ifsomeone comes in and buys Shawn Scott andVestin out, this thing ends tomorrow, plus twoweeks for a new license.” He also said Gural hadfailed to meet some promises he made, such asreturning racing by June 1, which seems strangesince a federal bankruptcy court currently isweighing the competing plans and neither Gural,Scott or anyone else could have fulfilled such apromise. Gural told UticaOD.com there wasno way he could have started racing June 1 becausethe New York Racing and Wagering Boardsaid it would not grant Vernon a racing licenseas long as Scott, who it has twice denied a license,owns 52% of the track. Faraldo alsosaid Gural had promised to repay money thathad been taken from the horsemen’s purse accountto pay track operating expenses, but Guralsays he already has paid about $120,000 tocover bounced purse checks from last year, aswell as $55,000 owed to the horsemen’s association.Gural says he has lent Vernon $1.5 million,and added that some horsemen appreciatewhat he has done and some don’t. The news servicequoted trainer Jim Cruise as saying, “UntilShawn Scott’s out of here, we’re done. I believeour only hope is Jeff Gural.”HUGE WEEKEND IN JERSEYSomebody still loves racing. Last weekend morethan 75,000 turned out at the Meadowlands andMonmouth Park, and bet more than $21 million.The Hambletonian drew its biggest crowd in15 years -- 31,245 --and a record single dayhandle of $9,015,019.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor August 10, 2005MEADOWS READY FOR ADIOSThirteen 3-year-old pacers dropped in the entrybox for Saturday’s $421,800 Coors Delvin MillerAdios, feature attraction of Grand Circuit week atThe Meadows. That called for eliminations -- two$50,000 events -- with last year’s colt championVillage Jolt and driver Ron Pierce the 7-to-5 favoritein the first and the swift P-Forty Seven,driven by the Meadows’ perennial champion DavePalone, top choice in the second. The top four ineach elimination advance to the final.FREEHOLD OPENS BIG MEETThe New Jersey harness racing scene shifts tomorrowfrom the Meadowlands to Freehold Raceway,the nation’s oldest pari-mutuel harnesstrack, where the 2005 meeting marks the renewalof the sport first conducted there 152 years ago,in 1853. The new meeting is loaded with richstakes, including two Triple Crown events for 3-year-olds, the $390,000 Yonkers Trot and$450,000 Cane Pace. Also on the schedule is the$275,000 James B. Dancer Memorial, the$150,000 Shady Daisy, the $150,000 Battle ofFreehold and the $125,000 Molly Pitcher. A hostof stakes for New Jersey-sired horses also willbe featured, on a Tuesday through Saturdayschedule of afternoon racing with a daily post timeof 12:30 p.m. and free admission for the entiremeeting.GEWERTZ TO HAMBO, MUSEUMTed Gewertz, the New York lawyer who is a seniorpartner at one of the city’s major law firms --Wachtell, Lipton, Rosen & Katz -- and a partowner, it seems, of every other top harness horsethat hits the track, has new honors. He was namedOwner of the Year by harness writers last year,and now has been elected to the board ofthe Hambletonian Society and as a trusteeof the Harness Racing Museum and Hallof Fame in Goshen.EVERYWHERE BUT HOMEThe Ohio division of HBPA, which recently talkedThistledown management into not sending its simulcastsignals to Northfield Park, now has approvedtransmission of thoroughbred signals fromOhio to TVG, XpressBet and Youbet.com, but hasnot yet come to terms with the Ohio-ownedAmericaTAB, which is owned by Beulah Park andRiver Downs, both Ohio tracks. The chairmanof the Ohio HBPA’s purses and wagering committee,Bob Reeves, has issued statements thatOhio harness track operators have called “absolutelyfalse.” Charles Ruma, the president ofHeartland Jockey Club, which owns Beulah Parkin Columbus, wrote to Dan Theno, the executivedirector of the Ohio HBPA recently, and calledits termination of simulcast signals “a sad dayfor Ohio racing, especially in Cleveland.” He toocalled Reeves’ statements erroneous, and said“the Cleveland racetracks, and mostly Thistledown,receives the major share” of the purse poolas determined under Ohio racing laws. Ruma toldTheno, “There are four harness tracks in thisstate, all of which send their signals to thoroughbredtracks that are open at the same time. Thepurses generated from wagering on harness racingontrack goes directly into purses generatedfor the horsemen at that track. I suspect thatThistledown is taking wagers on Scioto Downs,and Toledo Raceway, as well as Lebanon,throughout the whole year. I also suspect theyeven take some of Northfield’s races.” Rumatold Theno he was “dealing with a double-edgedsword,” and said he thought it inappropriate thatTheno and Reeves were “absolutely delighted”over cutting off Thistledown’s signals toNorthfield. Ruma said they had “dug the graveanother foot deeper as it pertains to Ohio racing...the industry’s inability to deliver fans a consistent,quality product is simply turning themaway from Ohio racing, and maybe from racingin general.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorGREAT CANADIAN DIVERSIFIESAlthough casino business is going straight throughthe roof everywhere, one casino operator thinksthe variety and appeal of his company’s propertieswill both expand the size of the market andincrease his company’s share. That’s the view ofAnthony Martin, president and COO of GreatCanadian Gaming Corporation, which has extendedits business beyond slots and table games in acquiringracetracks, hotels and theaters. GreatCanadian already has purchased Fraser Downsand Sandown on the Pacific coast, and is buyingFlamboro Downs and Georgian Downs in Ontario.Great Canadian expects to open a 222-room hoteland theater expansion at its Rock River CasinoResort in suburban Vancouver later this year, alongwith a second theater and casino there next year.It also purchased casinos in Halifax and Sydney,Nova Scotia, in May. The company reported earningsof $10.5 million for the three months endedJune 30, compared to $5.4 million a year ago.Quarterly revenue rose from $37.5 million to $68.5million.NJ CASINOS SET NEW RECORDSThe headlines were different, but all said thesame thing: “A.C. casinos set new revenuehigh,” “Casinos win record $504.8 million duringJuly,” “Casino win sets record in July,” and,1000 miles away from Atlantic City, in KansasCity, “July casino revenues go through the roof.”Atlantic City’s 12 casinos won $504.8 millionfrom gamblers in July, a 6.5% increase over July2004. During the month, slot revenue rose5.3%, to $376.1 million, and table games wereup 10.2%, to $128.7 million. One analyst saidthat “when you dive into the numbers a little, itshows that slots are pretty weak on a year-toyearbasis and reflects an overall shift instrategy to table games.” Either way, itwas the biggest July in 26 years of A.C.gaming.August 11, 2005A LAWYER’S DREAM CLIENTShe is the busiest lawyer in Scottsdale. Not upscaleScottsdale, Arizona, but Scottsdale as in theworld of Shawn Scott. Her name is DeborahDeitsch-Perez, and although she is from Dallas,she shows up everywhere from Utica, NY, to Washington,DC, and beyond. In Utica she accused aNew York Racing and Wagering Board hearing officerof dismissing testimony favorable to Scott inhis two unsuccessful attempts to get licensed inthe state. In Washington she is trying to get anattorney-client arbitration board to decide whetherScott suffered monetary damages as a result ofthe representation of an attorney who representeda slots initiative in the nation’s capital involvinga group from the Virgin Islands including Scott.That group has spent nearly $2.1 million on theWashington slots campaign, and the attorney whothe Washington Post says “served as the publicface of the slots initiative” now says the VirginIsland crowd owes him and his law firm $533,118in fees. The Virgin Island folks, in turn, haveaccused the lawyer -- former council member andfour-time mayoral candidate John Ray, of legalmalpractice. The Post story this morning calls a$622,880 fine levied against the slots campaign“a tiny fraction of the vast sums Scott and hisfriends stood to gain if Ray had successfully navigatedthe elections board. Had D.C. voters giventheir consent, Scott would have won the right tobuild a gambling hall with 3,500 slot machines inNortheast Washington, a project that would havegenerated an estimated $765 million a year inrevenue. That plan must have sounded awfullygood when Scott and his associate, Rob Newell,showed up in Ray’s office in April, 2004.” Thepaper said Ray racked up huge legal bills, andScott and his associates paid about $340,000when the checks stopped coming. Ray’s lawyersaid she hopes to resolve things “so that JohnRay doesn’t have to deal with these peopleanymore.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorGARLAND, MITCHELL HONOREDBruce Garland, senior VP for racing industry relationsfor the Meadowlands and Monmouth Park,and Hugh Mitchell, now COO of Western FairRaceway in Ontario after seven years as seniorVP for harness racing at Woodbine Entertainment,have been honored by the Hambletonian Society.The pair shared honors as recipients of the 2005Frederick Van Lennep Memorial Award for “exceptionalsupport of the harness racing industryin general and specifically their endorsement andsupport of classic racing events owned by the Society.”Garland was honored in particular forhis staunch support of the Hambletonian at theMeadowlands during his tenure as senior VP forracing of the New Jersey Sports and ExpositionAuthority, and Mitchell for his support of theBreeders Crown championships. In anotherMeadowlands development, it was revealed thatnearly $1 million of the more than $9 millionrecord handle on last Saturday’s Hambletonianday program came from international betting. TheNordic Pool consisting of Sweden, Finland, Norwayand Denmark bet on five of the Meadowlands’15 races, including of course theHambletonian, and added $213,876 to the totalpool. Canada contributed another $711,075 onthe full program. Big M vice president for racingoperations Chris McErlean said the trackhoped that both Europe and Canada would bebetting directly into Meadowlands pools nextyear.A CLASSIC DUMB DECISIONBay Meadows Land Company may or may notmake it as a racing operation in its new role asowners of Hollywood Park, but they are off to astupid start. As one of its first moves, Bay MeadowsLand cut loose one of racing’s all-time toppublicity men, Allen Gutterman, whoserved in the same capacity previously atboth the Meadowlands and New York RacingAssociation.August 12, 2005Gutterman is not likely to remain idle long, as heknows and handles publicity and PR as well as anyonein world racing, and horse racing executives -- if not Bay Meadows Land Company -- has knownthat for years.IT’S NOT ALL WINE AND ROSESYesterday’s Executive Newsletter chronicled therecord new numbers being posted by casinos nationwide,and today Nevada joined the cast, announcingrecord June winnings of $954.2 million,up 11.7% from last year. Gambling on the LasVegas strip was up 16.4%.The casino picture was not all pleasant, however.In Connecticut, the state Division of Special Revenueruled that the Foxwoods Resort Casino’s newInternet-based PlayAway game violated state andfederal gambling laws.In Florida, former Washington bigwig and TomDeLay buddy Jack Abramoff was indicted, alongwith his business associate Adam Kidan, by afederal grand jury on five counts of wire fraudand one count of conspiracy for their purchaseof the SunCruz fleet of gambling boats fromKonstantinos (Gus) Boulis, a multimillionaireowner of the Miami Subs chain of sandwichshops. Boulis accused Kidan of connections withorganized crime, according to the WashingtonPost, and he later was killed in gangland styledriving home from a business meeting.In Tasmania, the Turf Club says it is confidentit can persuade the Premier not to grant a licenseto the online betting exchange Betfair,which is trying to reach the Australian marketthrough the Tasmanian back door. Officials fromthe Australian Racing Board and RacingVictoria, who bitterly oppose Betfair, metyesterday with Tasmanian horsemen andTurf Club members.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorQUEBEC TO SELL THE STOREThe entire store, lock, stock and barrel. SONACC,the governing body of Quebec racing, in collaborationwith the Quebec government, published aRequest for Proposals on Friday, inviting biddersto begin the process to buy the province’s fourracetracks, 19 Hippo Clubs, or OTBs, and an interestin 1,900 VLTs located at the four tracks.The full notice is on the HTA Web site,www.harnesstracks.com, and also in a weeklyTrack Topics being mailed today. Requests forproposals must be accompanied by a $500 nonrefundablepayment, sent to Raymond ChabotGrant Thornton (RCGT) at 140, Grande-AleeEast, Suite 200, Quebec City, Quebec, CanadaG1R 5P7 and then, following an initial review ofthe requests for proposals, interested parties mustsend by Sept. 2 at 5 p.m. eastern daylight savingstime, a document indicating their interest in participatingin the due diligence process and eventuallysubmitting a proposal for the acquisition ofthe four tracks and Hippo Clubs. Those proposalsmust be received in Quebec before Oct. 13 at5 p.m. Additional information can be obtained fromMr. Jean Chiasson of RCGT at 418-647-3151, faxat 418-647-9279, or e-mail atchiason.jean@rcgt.com.Interest is expected to be high for the unprecedentedpackage. Magna Entertainment had expresseddeep interest earlier, but has been in aselling rather than buying mood of late. Remstar,a Montreal conglomerate that produces motionpictures, owns a hotel and rents refuse containers,has been interested from the start. It is notunlikely that Great Canadian Gaming, which in thelast year has bought Sandown Park, Fraser Downs,two casinos in Atlantic Canada, and is in the finalprocess of acquiring Georgian Downs andFlamboro Downs, could be interested inthe Quebec package as it expands its holdingsin racing and gaming.August 15, 2005THE BETFAIR THREAT GROWSBetfair, the British betting exchange, moved closerto getting in the backdoor of the Australian marketlast week. Although the premier of Tasmaniahas not made a decision on licensing the outfit inthat island state, and although Australian tracksand horsemen strongly oppose the idea, the chiefexecutive officer of the Australian Racing Boardannounced that while he still is opposed to Betfairoperating in Australia, his board will not excludeTasmania from interstate betting should Betfairbe licensed there. The CEO, Andrew Harding,said, “The question is, will there be changes to theway the industry operates in Australia if a bettingexchange is licensed? The answer to that must beyes, there will be changes; there will be rippleeffects, but there won’t be ripple effects in thesense of retaliation or retribution.” interactivegaming news reported that Harding also said hewould still try to convince Tasmanian premier PaulLennon that Betfair shouldn’t be given a license.The president of the Queensland Racehorse OwnersAssociation, Wayne Milner, had a much strongerstatement than Harding concerning the issue.As quoted by IGN, Milner said, “The fact is thatbetting exchanges can’t match the returns TABs(OTBs) provide to the industry throughout theland, so if Tasmania goes it alone with this, thenthey do so in the knowledge there is a real dangerthey may be cutting a large hole in the revenueavailable to national prize money. Betfair has beenstrongly opposed by the Queensland governmentand most other states. A decision by the Tasmaniangovernment to go ahead would be a massiveact of betrayal of the racing industry.”NOV. BANGOR SLOTS, SORT OFPenn National Gaming, which is turning a Bangorrestaurant it bought into a temporary slot facility,hopes to have the operation open in November.The gutting and renovation will cost $17 million,its new racino $75 million.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorA VICTORY FOR RACING IN KYIn a victory for horse racing everywhere and particularlyin Kentucky, the Kentucky Horse RacingAuthority yesterday unanimously approvednew drug rules for the state, over the objectionsof horsemen. It also was a triumph for commonsense. The Lexington Herald-Leader, in itsKentucky.com online news, got it right. The serviceheadlined a story by business writer JanetPatton “Fewer drugs will be at the post.” Thenew regulations give Kentucky rules that closelyfollow those adopted by the national RacingMedication and Testing Consortium, and ConnieWhitfield, vice chair of the Racing Authority andchair of the Kentucky Equine Drug ResearchCouncil, was on target in her assessment of thesignificance of the Authority’s action. “Thesechanges,” she said, “not only advance the integrityof racing in Kentucky, but also protectthe health of the horse and the safety of therider.” Racing Authority chairman Bill Streetnoted that “these amendments will create themost comprehensive drug rule in the country andwill help protect the integrity of horse racing inKentucky.” Street said he would ask Gov. ErnieFletcher, who appointed the new Authority, tosign emergency regulations that would put therules and penalties into immediate effect. Streetsaid of the Authority action, “I think it’s the rightthing to do for horse racing in this state. Thenext challenge for us will be to make sure therule is administered as intended. That meansenforcement.” If Authority executive directorJim Gallagher has his way, there will be no questionabout that. He said, “The former KentuckyRacing Commission adopted internal policies in1998 and again in 2002 which made Kentuckythe most liberal and permissive state in the countryfor equine medications. Those policies neverwent through the proper administrativereview process, were not subject to publicreview or comment, and were never re-August 16, 2005viewed by the appropriate legislative committees.But they were applied as if they had been.”Gallagher, a disciplinarian with long experiencein New York, is the man to make sure Street’smandate is carried out. Toward that goal, hewill work with retired jockey Patti Cooksey, thenew deputy executive director of the Authority,on enforcement issues. The new rules limit useof non-steroidal anti-inflammatory drugs to oneof three allowed, and then not later than 24 hoursbefore a race. Only Salix and either phenylbutazone,banamine or ketoprofen will be allowedunder the new rules. Kentucky had allowed themto be used as cocktails up to 4 hours before posttime. To no one’s surprise, Marty Maline, theexecutive director of the Kentucky HBPA, objectsto the rule changes. Our congratulationsto the Kentucky Authority for its firm and progressiveaction in turning Kentucky from a racingjoke on its former permissiveness into a respectedleader in medication reform.A VEXING PROBLEM REMAINSWhile Kentucky moved ahead on the medicationissue, it still struggles with the problem of insurancefor participants against catastrophic injuryor disability, and how it will be handled. An 11-member committee appointed by the governor deliberatedfor two and one-half hours yesterday,but came to no definitive agreement on the formof coverage, who should be included, and how topay for it. One two-tier plan suggested wouldmake jockeys employees of trainers rather thanindependent contractors, with workers’ compensationcoverage, and with trainers obtaining workers’comp coverage of their own for exercise riders.The governor asked the panel to finalize itsproposals by September 1, and it adjourned yesterdaywith another meeting scheduled for thatdate to resolve differences, if possible, betweenjocks, legislators, horsemen’s organizationsand tracks.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWELCOME TO THE CLUBAnother gaming company has moved to enter theracing field, following Harrah’s, Mohegan Sun andGreat Canadian Gaming. Millenium Gaming Inc.and Canner Casino Resorts LLC have purchasedan option to acquire HTA member RockinghamPark in Salem, NH> Bill Wortman, president ofMillenium Gaming, told the New HampshireUnion Leader, “We are not purchasing an interestin the track as we speak, but we have withinour agreement the ability to do so.” Wortmansaid if the state passes expanded gambling, whichMillenium and Rockingham will pursue,Millenium most likely would exercise its optionto buy the track. He added, however, that theoption is not dependent on the legalization of expandedgambling. Ed Callahan, Rockingham’sgeneral manager, said, “We’re working togetherto try to educate the people of the state aboutthis issue and to do some lobbying.” Callahansaid Millenium would make a full-fledged effortto convince elected state officials of the economicbenefits of expanded gambling, including newspaperspace and broadcast time for advertisements.He said the arrangement was “in essencea working relationship in which they will bring intheir expertise to help design facilities and educatethe public and Legislature.” When the UnionLeader’s senior political reporter, John Distaso,asked Wortman the duration of the option,Wortman said it was “multi-year” but that he“couldn’t recall” the duration. Wortman said,“We want to show the benefits it can create forjobs and for taxation to the state. We want toshow what Rockingham could be, which is what itused to be.” The track, which now conducts onlyharness racing, would return thoroughbred racingto the scene. Callahan said, as other trackoperators have, “Down the road, without slot machines,you have to be looking at otherdevelopment here. I think that would besad.”August 17, 2005That same theme was echoed by Bob Elliston, thepresident of Turfway Park in Kentucky. He toldthe Cincinnati Enquirer, “We have a 200-acreasset of tremendous value, but we are not obtainingthe most return on that asset as a pure racingfacility. So we’ve got to look at augmenting thegaming environment with alternative gaming. Andif that doesn’t happen, then we’ve got to start lookingat what that asset would be.”TWO PURSE SPLIT DISPUTESTrack management at two venues are wrestlingwith purse distribution problems. At HTA memberPrairie Meadows, president and generalmanager Bob Farinella is dealing with disgruntledharness and quarter horse representativeswho want a larger share of the track’s2006 purses. Iowa set minimum purses of 11%of casino revenue last year, and this seasonquarter horses and harness horses will getabout 10.7% each of the $16.7 million in pursemoney. Both want more, the quarter horsemenasking for 20% and the harness horsemenwanting 15.4%. Farinella first offered 75.58%to thoroughbreds, 13.42% to quarter horses,and 11% for harness racing. The offer wasrefused, and now he is offering 78% to the runners,12.5% to quarter horses, and 9.5% toharness racing, answering their protests formore by saying, “Why didn’t you sign at 11?”At River Downs in Ohio, the track -- which is apartner with Beulah Park in AmericaTab --withdrew its signal from that account wageringsite after the state’s thoroughbred horsemen’sconsent to simulcast expired and no agreementhad been reached on purses from the simulcasting,the runners wanting all revenues from thoroughbredsignals. Jack Hanessian, RiverDowns’ general manager, said, “We’re not interestedin getting into a breed war in Ohio,”and said the track would rescind its approvalfor TVG to take its signal today.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorDAN PATCH RETURNS, AS BOOKThe greatest American sports hero of the firstdecade of the 1900s, the unbeatable pacer DanPatch, is returning a century after his greatesttriumphs as a Simon and Schuster book. CharlesLeerhsen, executive editor of Sports Illustratedand author of best selling books on Donald Trump,famed test pilot Chuck Yeager, and former NBCpresident Brandon Tartikoff, is writing the storyof the pre-automobile era hero. Leerhsen’s bookon Trump was number one on the best seller listfor seven weeks.A contemporary book on the great pacing championis long overdue. Dan Patch’s popularity from1900 to 1910 was so widespread that washing machines,tobacco products, a railroad and innumerablechildren were named for him. Leerhsen plansnot only to tell his story and that of the peoplewho surrounded him, but also plans to place thehorse and harness racing in the context of sportshistory, and to discuss the changes that were happeningto sports in general during the early yearsof the 20th century. Leerhsen is no stranger toharness racing, and is superbly qualified to tellthe Dan Patch story. A brilliant writer, his firstprofessional job was working with the editor ofthis newsletter at the U.S. Trotting Associationfrom 1976 to 1982, when he left to work forNewsweek, where as a senior writer he coveredsports and, later, general news. He left that magazinein 1992 to become the entertainment editor,and later assistant managing editor, of People.Six years later he joined Wenner Media, and waseditor of Us magazine. He also has written forEsquire, the New York Times Magazine, RollingStone, TV Guide, and other major magazines.He expects to complete his book on Dan Patch in12 to 18 months, and welcomes suggestions, researchmaterials, stories or other materialson Dan Patch atcharlie_leerhsen@hotmail.com.August 18, 2005MORE GOOD NEWS, TOORichard Shapiro, president of Western HarnessRacing in the early 1980s and a member of theCalifornia Horse Racing Board since last October,has been unanimously confirmed in thatrole for a term that expires July 26, 2008.Shapiro has been an activist on the Californiaboard, sitting on some of its most influentialcommittees, including those on medication, securityand licensing, and the allocation of racingdates. His grandfather, L. K. Shapiro,founded Western Harness Racing and ownedthe outstanding thoroughbred Native Diver, andRichard’s father, Marvin, was responsible forlegislation that legalized night horse racing inCalifornia. Shapiro was appointed to the racingboard by Gov. Arnold Schwarzenegger, andappreciation for his work on the racing boardwas indicated by the 5-0 confirmation vote bythe Senate Rules Committee.AND SOME NOT-SO-GOOD NEWSIn another wife or sweetheart beating -- the thirdreported in the sport in recent years -- trainerdriverJames R. Pantaleano was arrested by NewJersey State Police after beating a former ladyfriend in Colts Neck, NJ. The victim required 30stitches in her face to close her injuries.Pantaleano first was charged with Simple Assault,with bail set at $1,500, but after the extent of thevictim’s injuries were determined the charge wasamended to Aggravated Assault, and bail raisedto $5,000.MORE HEAT ON JOCKS’ GUILDRep. Ed Whitfield of Kentucky, chairman of theU.S. House Subcommittee of Oversight and Investigations,has notified Jockeys’ Guild presidentWayne Gertmenian that information providedto the committee on Guild operations was“inadequate,” and threatened a subpoena if betterdocumentation is not provided by Aug.31.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWHERE’S THE BEEF..AND CASH?Richard Shapiro, who was confirmed for anotherthree years as a member of the California HorseRacing Board earlier this week, has asked theCalifornia deputy attorney general to recommendthe proper recourse in a matter involving now departedCapitol Racing and some $1.5 million inunpaid purses. Capitol, headed by Alan Horowitz,operated racing in Sacramento for 10 years beforerelinquishing its license. The Californiaboard had ordered it to redistribute $1.5 millionin the form of purses to horsemen, as settlementof a dispute over promotional funds. Capitol apparentlyignored the board’s order. A representativeof the California Harness Horsemen’s Associationhad expressed concern that horsemencould wind up “holding a fistful of tickets theycan’t cash,” but Shapiro said the board still has$2 million in bonds and letters of credit from CapitolRacing, and he reassured horsemen who racedthere that “there is ample security to pay for anyshortfall.” Horowitz and an associate reportedlyhave been exploring a working relationship withShawn Scott in seeking to purchase VernonDowns.Shapiro and board member Marie Moretti alsohad some questions for Jack Liebau, presidentof both Bay Meadows and the newly created HollywoodPark Racing Association. Ms. Morettiasked, “What assurances do we have that youare going to be or even want to stay around?”and Shapiro asked about Bay Meadows’ budgetfor marketing, advertising and promotions. Hesaid he was “uncomfortable” determining thatCalifornia would be better served by the BayMeadows’ acquisition when he didn’t know whatthey planned to do to market horse racing. “Iwant to know what you are going to do to improvethings from where they were,” he toldLiebau, who said a $4 or $5 million installationof Polytrack is planned.August 19, 2005The board, after hearing Bay Meadows’ plans,determined that the state would be better servedallowing Bay Meadows to proceed with the purchaseof Hollywood Park from Churchill Downs,thus assuring continuity of operations at Hollypark.GREEN LIGHT IN MAINEAcross the country, in Augusta, Maine, the racingcommission approved final licensing for Penn Nationalto operate slots at Bangor Raceway, whichit acquired from Shawn Scott. The board voted 5-0 to approve licensing, and also approved InternationalGaming Technologies as the slot machinedistributor. Penn National spokesman EricSchippers called the events “an exciting and historicday.”COLONIAL BUYS OUT MAGNAColonial Downs, owned by Jacobs EntertainmentInc., is buying out its partner, MagnaEntertainment, paying $7 million in cash andissuing a $3 million one-year interest-bearingnote for the Maryland Jockey Club’sMaryland-Virginia Racing Circuit, Inc. Thatentity was established a decade ago, andpartnered with Colonial in operating harnessand thoroughbred meets at the Virginia trackand its seven OTB facilities. The transactionalso calls for pro-rated 2005 managementfees and repayment of some $145,000 plusaccrued interest under an existing promissorynote.JUG OPEN TO CANADIAN BETSThe Ohio Racing Commission has approved commonpool betting from Canada on the LittleBrown Jug, using net pool pricing methods underAssociation of Racing Commissioners’ Internationalmodel rules. Jug marketing directorand HTA director Phil Terry called the move“another step in the right direction for thesport of harness racing and the DelawareCounty Fair.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorDECISION TIME FOR RACINGThe North American horse racing industry nowfaces a monumental choice. The industry finallyhas faced the real challenge -- detecting what isbeing used on horses and developing tests forthem -- with a world class expert at its head. Dr.Don Catlin, founder and head of the UCLA OlympicAnalytical Laboratory, who will be a featuredspeaker at the HTA-TRA-USTA Racing Congressat Bellagio in Las Vegas in February, hasagreed to head a non-profit laboratory to be calledthe Equine Drug Research Institute. Secret negotiations-- getting to be a passion in the racingindustry -- have been underway at Keeneland inKentucky for two years, and surfaced Sunday withthe announcement that Dr. Catlin was on board.Catlin told the Jockey Club Round Table inSaratoga Springs yesterday, “The issues you faceare very similar or identical to the issues I’vefaced in sport. Your sport offers some uniqueopportunities.” With Catlin at the helm, theproject can be far and away the most significantin racing in years. Catlin, respected worldwide,has been involved in solving Olympic druggingproblems and was a key player in unraveling theBalco THG issue. Unlike the Racing and MedicationTesting Consortium, which has been concerningitself primarily with developing uniformrules, the Equine Drug Research Institute willfocus on developing tests for presently hard-todetectdrugs, and some yet to be identified. Untilthese tests are developed, racing’s frequent selfservingstatements that only a minute number ofpositives have been found in testing are meaningless,since if there are no tests for substancesbeing used in racing obviously there will be nopositives for them. The new project will be expensive-- a $3 million price tag was mentionedfor starters yesterday -- but this is one projectracing needs desperately to rally behindand fund. It is a potential turning pointfor the sport.August 22, 2005TO NY HARNESS: BEWAREAll the talk in Saratoga Springs yesterday wasthoroughbred -- the Jockey Club Round Table is,after all, sponsored by the Jockey Club -- but harnessracing interests in the state of New York hadbetter stay focused on what is being kicked around.NYRA is concerned about NYRA, and the Friendsof New York Racing, whether New Yorkers or not,are really at this point the Friends of New YorkThoroughbred Racing. There still are six harnessrace tracks operating in New York State, with ahuge agriculture breeding industry behind them,and one of them -- Yonkers Racway, has the bestlocation in all New York for VLTs, smack on theDeegan Expressway. It would be folly for theowners and operators of these tracks to letFriends (or Enemies) get too far down the roadwithout keeping them in the loop for their ambitiousplans. Tom LaMarra’s coverage of theFriends’ plans in bloodhorse.com say the group“proposes formation of an industry advocacygroup to represent all factions in the effort todevelop a new structure for the pari-mutuel industryin the Empire state.” It would be comfortingto know what “all factions” embraces.Hopefully it is just that, all-compassing.TO ALL RACING: BIG BEWARETo those who have put the World Trade Organizationchallenge to U.S. simulcasting on a backburner, better move it further front. The WTOhas announced an April, 2006, deadline for U.S.action, and a spokeswoman for the US Trade Representativewas quoted in Middle East Times assaying, “The United States has already announcedits intention to comply with WTO findings.In order to implement the findings all weneed to do is clarify one narrow issue concerningInternet gambling on horseracing.” It may be“one narrow issue” for US Trade Representatives,but it is one very wide one for Americanhorseracing.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorANOTHER SPLASH IN THE POOLEverybody in the water! Eric Spector is back seekingto buy Vernon Downs, which he ran briefly duringthe bankruptcy merry-go-round of the last year.Spector, now based in San Diego, has backing froma group called Plainfield Asset Management, andhe joins Jeff Gural and Shawn Scott in the chasefor the prize. Lawyers for Gural and Scott can fileobjections to Spector’s proposal by tomorrow ifthey wish.HERE COMES DE JUDGECircuit Judge Leroy Moe in Broward county,Florida, has not changed his mind. In June he ruledthat the wishes of voters in south Florida were beingignored by the legislature, which adjournedwithout providing for rules for slots at Browardcounty’s tracks. The Broward state attorney arguedagainst that, which triggered an automaticstay. Yesterday Moe reconfirmed his order, liftingthe stay and saying the will of the voters couldnot be disregarded. He ruled that the county’sthree tracks, including HTA member PompanoPark, could install slots before their legal appealsare finished or the state legislature drafts rules.Track executives, however, said they still preferredto work with state lawmakers and Browardcounty commissioners to draft regulatory guidelinesbefore installing the machines, and they expectgovernor Jeb Bush will convene a special sessionthis fall to have that done.KY HORSEMEN WANT TO FIGHTThe governor of Kentucky, Ed Fletcher, hassigned an emergency order putting Kentucky’snew drug rules into effect, but the KentuckyHBPA still is unwilling to go along. They stillwant to be able to use the former medicine cabinet,and they are threatening to go to court,arguing this time about whether medicationrules warrant emergency legislation.August 23, 2005Kentucky’s vets, who administer all of the stuffpreviously used, also reportedly are consideringlegal action. Kentucky horsemen are arguing thenew rules will create short fields and harm theirhorses by depriving them of needed medication.Amazing how horsemen everywhere but Kentuckyare getting along with versions of the new rules.NZ’S TOP TRAINER SUSPENDEDMark Purdon, the leading harness racingtrainer in New Zealand, has been suspendedfor four months and fined $15,000 by the JudicialControl Authority for his role in the “BlueMagic” scandal that has rocked the sport DownUnder. The case was bizarre in a number ofways. Purdon said his principal owner, the millionaireJohn Seaton, had introduced him toRobert Asquith, a manufacturer and supplierto horsemen of Blue Magic, or propanthelinebromide. Asquith told Purdon the substancewould not test positive, and Purdon bought 10vials for $1,500 and injected the pacer Lightand Sound six hours before a race on two occasions.The horse won his first race with thesubstance, but did not race as well on the secondadministration, finishing third. The pursehas been redistributed on both races. WhenPurdon decided his action was inappropriate afterthe Blue Magic scandal heated up, he telephonedthe general manager of Harness RacingNew Zealand and apologized. He also visitedhis local police and told them what he haddone. Both Asquith and Seaton, who HarnessRacing New Zealand said was involved in theuse of the illegal substance, were later founddead, Asquith a suicide. Seaton’s death alsowas reported to be a suicide, but no coroner’sreport has been issued, more than eight monthslater. Harness Racing New Zealand, which hadasked for a year’s suspension of Purdon, saidit would consider appealing the four monthpenalty as inadequate.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorIT’S AN EMERGENCY, MARTYThe Kentucky Horsemen’s Benevolent and ProtectiveAssociation filed a lawsuit yesterday to preventthe state of Kentucky from enforcing newmedication rules similar to those being adopted orin use in most of the rest of North America. Therules were unanimously approved by the KentuckyHorse Racing Authority and signed into law bygovernor Ernie Fletcher on an emergency basislast week. Marty Maline, the executive directorof the Kentucky HBPA, says his group does notthink the governor met the necessary criteria tosign emergency regulation. “We’re not confidentthat it met those criteria, and furthermore,why is it an emergency?” The fact that the KentuckyHBPA does not recognize -- or acknowledge-- that drugging on the backstretches of Americais an emergency for horseracing in this country isreason enough for the governor’s actions. TheHBPA position itself is an emergency. A hearinghas been set for September 1.CROWNS IN COURT, TOOIt’s a litigious jungle out there in racing, folks.While the Kentucky horsemen were trying toundo what their racing authority and governorwant them to do, the owners of the top flightpacer Canyon Wind are going to court over abitter dispute over the horse’s rejected supplementalentry in the $590,000 Breeders Crown,upcoming Sept. 3 at Mohawk Raceway. Thehorse was entered on time for the event, but theconditions required the $62,500 supplementalentry fee to be on hand by noon yesterday. Theowners of the horse, Marty Granoff’s Val d’OrFarms and Howard Schoor’s School RacingStable, say the check arrived at 12:02 p.m. andthe entry was rejected. Granoff and Schoor, bothveterans of decades of ownership, are su- i n gthe Hambletonian Society and its president,Tom Charters, over the deniedentry.August 24, 2005The race itself drew 15 entries, and two $45,000eliminations will be raced this Saturday. BoulderCreek, defeated last week by Canyon Wind,is the likely favorite. The $800,000 BreedersCrown Trot drew seven horses, led by $2.4 millionwinner Mr. Muscleman, so no eliminationsare needed in that event. Nine trotting mares,led by the brilliant Peaceful Way, undefeated insix starts this year, will race Sept. 3 in the$250,000 Crown for their division, and 11 pacingmares will face the starter in the $331,500Crown for their gait and sex, without eliminations.Oh, before leaving the litigation department,Shawn Scott is back, suing again, this time inOneida county, New York, in a case that he lostin his resident Virgin Islands against Paul Noyesof Mid-State Raceway.FUROR OVER PURDON PENALTYThere is unhappiness in New Zealand, too -- bothways -- over the four-month suspension and$15,000 fine handed the nation’s leading harnesstrainer, Mark Purdon, for his involvement in theBlue Magic scandal there. Harness Racing NewZealand, which wanted him suspended for a year,accepted the lesser suspension but will decidetomorrow whether it wants to appeal the fine.The maximum for the offense he is charged withis $25,000. Purdon’s lawyer wanted only a fine,but the chairman of the Judicial Control Authority,which issued the penalty, said the suspensionwas needed “to emphasize the seriousnessand foolishness of the defendant’s actions.” Asource close to Purdon called his legal fees“frightening.”A REQUEST FOR A RESPONSEHTA has faxed all track action officers a marketingand exotic betting survey. Please take thetime to complete and return these valuablesurvey requests ASAP.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWILLMOT TO HALL OF FAMEDavid Willmot, chairman and CEO of WoodbineEntertainment Group and past president and vicechairman of Harness Tracks of America, will beinducted into the Canadian Horse Racing Hall ofFame at the Toronto Congress Center in Torontotonight.Willmot, one of world racing’s most eloquentspeakers and progressive thinkers, also operatesat the top levels of both harness and thoroughbredownership. His 3-year-old pacing filly CabriniHanover, owned in partnership with Bob Anderson,was the co-champion juvenile of last season,and will be racing in the upcoming Breeders Crownat Mohawk Raceway Sept. 3. Willmot’s understandingof racing’s needs and his progressive andaggressive leadership of Woodbine played a largerole in rescuing its financially troubled Ontariotracks. David’s father, D. G. Willmot, builtKinghaven Farms into one of Canada’s premierthoroughbred breeding and racing stables, and hewas the first Canadian named to the presidency ofHTA. The association, its directors and track ownersand operators salute him on the occasion ofhis entry in the Canadian Horse Racing Hall ofFame.Also being inducted tonight are veteran trainerStew Firlotte, trainer of a host of top harnesshorses including the pacing Triple Crown winnerRalph Hanover, the champion filly Town Pro, andstandouts including Historic, His Mattjesty, BreesBrief, Strong Clan and Rare Review.The top trotting stallion Garland Lobell and the$2 million winning trotter Glory’s Comet also arebeing honored, along with pacer Armbro Omahaand thoroughbreds Norcliffe, Canada’s Horse ofthe Year in 1976; Cool Reception, secondin the 1967 Belmont Stakes finishing witha broken foreleg that ended his life, andAnita’s Son.August 25, 2005A TIP FOR YOUR MAITRE’DBetter keep your hand in your pocket, Captain.Manuel (Manny) Alvarez, who has had his handout in New York Racing Association restaurantsfor 49 years, most recently as maitre’d atSaratoga Race Course, has been fired. Mannyaccepted one too many tips when he allegedlyaccepted $200 from a pair of NYRA security officersposing as customers seeking good seatsfor The Terrace or The Porch, Saratoga’s havenswhere the elite meet to eat. Alvarez, speaking ofthe bust that ended his NYRA career, said, “Itold them I don’t take any money for a table.They gave me what anybody would give me for atip, and I put it in my pocket. They went throughmy money and they found marked bills. That’swhat I did. I know I didn’t do anthing wrong.” If$200 is the going price for a good table atSaratoga, as Manny indicated with his “They gaveme what anybody would give me for a tip,” I thinkI’ll eat across the street at Saratoga Raceway.The food is probably cheaper, and the tables definitelyare. Add to the quotes of the week, incidentally,that of Mike Billows, regional managerof Centerplate, which caters Saratoga, BelmontPark, Aqueduct and Yankee Stadium. He said hewas unaware of complaints of track regulars whosay shaking down of customers in exchange forseating privileges at The Terrace and The Porchhas been a longtime abuse.A NEW STAR FOR BETHLEHEM?It took more than four hours of heated debate, butthe city planning commission of Bethlehem (Pennsylvaniaversion) yesterday rejected a proposedban on gambling for the 135 acres of the oldBethlehem Steel works, once the largest steel producerin America. Starting next year, slots insteadof steel could be ringing out there, under a redevelopmentplan proposed by Las Vegas SandsCorporation, owner of the Venetian in LasVegas.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorORC SAYS NO TO CANYON WINDMarty Granoff and Howard Schoor got the badnews this morning: the Ontario Racing Commissiondenied their appeal to allow Canyon Wind torace in the $560,000 Breeders Crown for olderpacers. Granoff’s Val d’Or Farms and Schoor’sSchoor Racing Stable own Canyon Wind, who couldhave wound up favored in the Crown. The conditionsof the Crown are clear, specifying that entryand supplementary checks had to accompany theentry and, in this case, were due by noon Monday.Trainer Steve Elliott showed up a few minutes latewith the check, and the entry was refused. Granoffand Schoor appealed, and in turning down theirappeal the Ontario commission chairwoman, attorneyLynda Tanaka, noted that prudent horsemenhad the responsibility to keep themselvesinformed of conditions and regulations governingevents.ADD ANOTHER CASINO TO MIXEarlier in the week we mused about the new partnersin racing, casino interests now involved fromgiants like the New York Racing Association’sracino operation to the latest, little Tioga Downsnear Binghampton, NY. Nevada Gold and Casinos,Inc., headed by president W. Thomas Winn,has announced his company wants to buy a 50%interest in Tioga Downs, owned jointly by JeffGural and Trackpower, Inc. Beyond that, Winnsays he wants to partner with the two in their pursuitof Vernon Downs, where proposed financialplans went under court scrutiny today. Winn saidNevada Gold and Casinos would invest in Vernon-- he did not say how much -- if Gural’s bankruptcyplan is accepted by the court. If not, he said NevadaGold will proceed with Tioga Downs alone.“Two would be better,” Winn said. “It would begood synergy and give us economy of scale.” EricSpector of California also is in the chasefor Vernon, along with Shawn Scott andfriends.August 26, 2005KATY’S GONE, POMPANO BACKWith Hurricane Katrina come and gone, PompanoPark resumes simulcasting this afternoon at 4:30p.m. The track, which cancelled simulcasting yesterday,suffered only minor structural damage, butlots of debris, from Katrina’s visit. Calder RaceCourse, also escaping with minor property damagebut much debris, cancelled today’s card buthopes to resume racing tomorrow afternoon.A PR PAYOFF AT AMERICATABAmericaTab, the Ohio-owned, Oregon-hubbedbetting service, which informed a bettor hisbet was accepted but then refunded it after aglitch in which the company’s bet processingsystem did not connect with Del Mar’s tote,has decided to pay the bettor the $540 his winningpick four paid. AmericaTab refunded allbets on the fifth race at Del Mar Monday afterthe malfunction, but Tom Ranftie, a Syracuse,NY, bettor using AmericaTab, declinedthe refund and demanded payment.AmericaTab said it had no obligation to pay,but did so, according to Ranftie, “as strictly acustomer-service courtesy.” And, we suspect,to avert a PR disaster.TO ALL PUBLICITY DIRECTORSIMPORTANT NOTICE: HTA is updating andrevising its computerized database, including themailing lists for individual HTA track mediasources. If you have a current list of media youwould like to receive Track Topics, HTA news releases,and other materials distributed to mediaby this office, please send them ASAP to JessicaCarner at the HTA office. Also, to aid Jessica inher compilation of Promotions at HTA Tracks,please ask your program department to add herto their mailing list. And if you have a promotionyou would like mentioned or think noteworthy,let Jess know at jess@ harnesstracks.com,and send graphics.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor August 29, 2005TODAY’S MORNING LINEThe Plain Dealer story said the study done byHave your morning line maker lengthen the odds the Michigan firm encouraged the power brokerson the New York Racing Association keeping its to “believe they can craft and win a ballot initiativein November, 2006, to change Ohio’s consti-franchise on New York racing. The two most importantmen in New York state --- Gov. George tution and allow casinos, most likely at the state’sPataki and Senate Majority Leader Joe Bruno - seven racetracks and in a handful of big cities,- made clear at a press conference in Saratoga including Cleveland.” One related story said thatSprings that they are inclined to convert NYRA if Lebanon Raceway were to get slots, it wouldinto a for-profit enterprise with professional leadershipwhen its franchise expires in two years. grounds location to a new site. The story alsolikely relocate from its longtime Lebanon fair-As each announced their choices for a state-appointedCommittee on the Future of Racing, they purchased by Argosy Gaming. Argosy itself isreferred to Raceway Park in Toledo, recentlymade clear they are unhappy with the nearly $40 being acquired by Penn National Gaming in a $2.1million in losses at NYRA tracks in the last two billion deal, but that transaction was sidetrackedyears. Pataki said, “This is a multibillion-dollar indefinitely when the Illinois Gaming Board lastbusiness and it has to be run professionally and week delayed approval because of antitrust concerns.Penn National operates a casino in Au-efficiently.” Bruno said, “I hope in January ‘08you’re going to see an entirely different approach.Bruno’s three appointments to the Com-in the state, in Alton and Joliet.rora, west of Chicago, and Argosy operates twomittee on the Future of Racing are Jack Knowlton,GALLAGHER TO DELAWAREbest known as the owner of Funny Cide; realHugh Gallagher, with a long career as a state stewardand presiding judge in Ohio, Minnesota, Ken-estate investor Edward P. Swyer; and real estatedeveloper John Nigro. Gov. Pataki appointedJ. Patrick Barrett, chairman of a privatetucky and at the Meadowlands, and in managementat Ocean Downs, has been named Administratorof Racing for the Delaware Harness Rac-investment company and former president ofCarrier International and ex-chairman and CEOing Commission. He starts Oct. 17.of Avis; Bernadette Castro, his parks commissionerand former chief executive of Castro Convertibles;and Fredric Newman, founding part-Starting September 15, Canadian wagering outletsRED MILE, CANADA COMMINGLEner of the Hoguet Newman and Regal law firm. will begin betting directly into pools at the RedState Assembly Speaker Sheldon Silver also has Mile in Lexington with commingled wagers andthree choices on the committee, still unnamed. net pool pricing.Have your morning line maker shorten the oddson slots in Ohio. After release of a study by StrategicPartner Management Consulting which saidcasinos in Ohio could generate up to $12 billionin revenue a year and create 85,000 jobs (and a43% increase in people with gambling problems)optimism has risen among what the ClevelandPlain Dealer called “pro casinoheavyweights.”SORRY WE’RE LATE WITH THISWe would have invited you earlier, but we justlearned of today’s press conference in Ulaanbaatar,Mongolia. A Kentucky group that includesformer Red Mile GM William Coplen is openinga simulcast center in the Bayangol hotel, and alsois having a groundbreaking ceremony for a trackproject with a Mongolian group called RoaringHooves.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorRTIP GETS $100,000 GIFTThe University of Arizona’s Race Track IndustryProgram got a big boost in its quest for endowmentof a $1.5 million chair for racing businessresearch when America Tab, the Ohio-owned, Oregon-basedbetting service, announced it was contribution$100,000 to the fund. Oak Tree RacingAssociation and Youbet.com previously had contributed$100,000 each. Doug Reed, the RTIP’sdirector, said, “America Tab’s contribution will helpfurther our mission of education and service to theindustry. The impact will be felt in the classroomas well with the addition of a highly qualified educatorto our faculty for the express purpose of enhancinggraduate level study and research.” MikeWeiss, America Tab’s executive vice president anda graduate of the RTIP program, said, “We can allbenefit from the kind of independent and in-depthstudy of our issues and opportunities envisionedby the RTIP.”GIVING AWAY THE FARMPompano Park, which opens its 42d season ofharness racing Friday night, is joining withFlorida’s Dreamfinder Farms Horse Rescue ina season-long raffle with a first prize of a milliondollar “farmette” in south Florida or$750,000 in cash. Second prize will be a choiceof a new car, the winner getting his or her pickof five new 2006 vehicles from King Auto Mallin Fort Lauderdale, and third prize $2,500 incash. Tickets will sell for $100 each, with theprize drawings held at Pompano Park Saturdaynight, March 4, 2006. The “farmette” is inDavie, Florida, one of two locations of theDreamfinder Horse Rescue, which also has afacility in Ocala. Dreamfinder is a not-for-profitorganization that provides care for horses ofall breeds that have been neglected, abused,abandoned, or retired and are in dangerof being sent to slaughter oreuthanized.August 30, 2005JACK, WE HARDLY KNEW YEJack Abramoff, friend of the mighty in Washington,pleaded not guilty yesterday -- in absentia --to federal conspiracy and wire fraud charges inFlorida. He was missing because his attorneyconvinced the court it would be too hard on Jackto brave the aftermath of Katrina to get to Miami,which was largely spared from the storm.Abramoff and his business partner Adam Kidanwere indicted in connection with their $147.5 millionacquisition of SunCruz Casinos five yearsago. They face charges of giving lenders a counterfeit$23 million wire transfer to make it looklike they had a financial stake in the deal. Twobanks lent them $60 million to buy the casinocruise line. Abramoff and Kidan could get fiveyears on each of six charges, and be ordered topay back the $60 million, if they are convicted. Atrial date could be announced today. The FortLauderdale police also have asked to interviewAbramoff concerning the killing of the SunCruzCasinos, Konstantinos Boulis, who was gunneddown gangland style in 2001 during bitter argumentsover the sale of his cruise line. No onehas suggested Abramoff was involved, but the policeare interested in what he might know aboutBoulis’ murder.TENANT WANTS THE HOUSEIn an interesting turn of events in Chicago, theNational Jockey Club, which lost Sportsman’s Parkafter a hugely expensive conversion from a horsetrack to automobile racing, and leased space atHawthorne Race Course next door, now is applyingfor the same racing dates as Hawthorne. Makingthe deal more bizarre is the fact that the twofamilies involved -- the Bidwills of Sportsman’s andthe Careys of Hawthorne -- have a long history ofclose friendship and association. Patricia Bidwill,chair of the National Jockey Club, says she“deeply regrets” the end of the once happymerger.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTHE PRICE OF DISASTERNo one can put a dollar amount on the devastationand disaster, and certainly not on the human sufferingand agony inflicted by Hurricane Katrina, but itis obvious that the huge gambling industry centeredalong the Mississippi-Alabama coastline has takena tremendous hit. Churchill Downs has not yet hadany way to determine the damage to its Fairgroundsin New Orleans, and president Tom Meeker says it“could take several days or weeks before we havean accurate assessment.” The track is not scheduledto race until Nov. 24. Other operators alongthe Gulf Coast know already of the monstrous damageinflicted on their facilities. At least three of thefloating barge casinos in Biloxi were torn from theirmoorings and washed 200 yards from shore. GaryLoveman, chairman of Harrah’s Entertainment, toldCNBC that its Grand Casino was “probably ruined,”having washed ashore and landed on the other sideof busy U.S. 90. Loveman said he thought it wouldhave to be cut to pieces just to be moved away. AtBiloxi’s most lavish casino, Beau Rivage, the firstand second floors were blown out. BernieBurkholder, president and CEO of Treasure BayCasino in Biloxi, told the Associated Press the casinowas “a total loss,” with damage in excess of$100 million. The first two floors of the Hard RockCasino -- due to open Sept. 8 -- were blown out.Harrah’s Grand Casino Gulfport was swept inland.The Copa Casino in Gulfport was destroyed. Asidefrom the huge property damage, and loss of $400,000to $500,000 a day to the state of Mississippi, Thegambling industry in Mississippi employs some30,000 workers, who could be idled for weeks ormonths. Loveman said Harrah’s would guaranteeits 8,000 workers at its Grand Casino, Harrah’s NewOrleans and the Grand Casino Gulfport for up to90 days. Mississippi has 27 state-regulated casinos,which together generate $400 million in taxrevenue each year. With at least 17 of them closedby the storm, and the others virtually shutdown by the elimination of tourist trade,the impact is clear, beyond the tragedy itself.August 31, 2005In another distant ramification of the Gulf disaster,reflecting possible heavy damage to oil platformsin the Gulf, gasoline prices in Canada wereraised some 20% this morning, rising to $1.20 aliter in Montreal, Toronto and Vancouver. Thattranslates to $4.54 for a U.S. gallon, or $5.45 for aCanadian gallon, which is one liter larger than itsU.S. counterpart. The immediate impact was indicatedby an announcement by Jeff Doyle of DoyleBloodstock Transportation in Ontario, one ofCanada’s largest horse transporters, who said thecompany was discussing a fuel surcharge for haulinghorses. With the season’s major yearling salesahead in Lexington and Harrisburg, the issue addsone more economic burden for yearling buyers inCanada, or Americans shipping horses to race forCanada’s rich slot-fueled purses.BETTING ON THE IF COME“Everybody’s wondering what’s going on,” saidTed Connors, chairman of the New HampshirePari-Mutuel Commission, about the suddenrush to invest in New Hampshire racing.Millenium Gaming has purchased an option onRockingham Park, and Mississippi casino mogulMarlin Torguson is about to buy the LakesRegion Greyhound Park in Belmont. There isno mystery about “what’s going on,” and aspokesman for Torguson made it clear: “We’replanting the seed for the future,” he said, meaningthat Torguson expects, as Millenium obviouslydoes, that New Hampshire legislatorseventually will legalize slots, hopefully fromtheir standpoint sometime soon. They mayknow something others don’t. There has beenlittle action or inclination in the New HampshireHouse for such action, and the most recent proposalin the Senate failed last April, losing 18to 6. Despite that, hope still apparently springseternal among the suitors, who hope to convincethe legislature of the error of theirways.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWORLD’S BIGGEST BET TO U.S.Sweden’s V75 -- the most popular bet in the worldon the basis of pool size, according to ScientificGames -- is coming to the United States in the formof commingled betting to be offered by PhiladelphiaPark. In Sweden, V75 accounts for 40% oftotal pari-mutuel wagering and has grown at anannual rate of 10% over the last five years. Aweekly pool, the seven races of V75 are held onSaturdays in Sweden, with betting beginning onWednesdays. The average weekly pool is $11million, but can grow to $20 million with “SuperPool” jackpot carryovers. Philadelphia Park willoffer not only V75, but its popular quick-pick companionpool, Harry Boy, which is based on betsalready accumulated in the V75 pool. ScientificGames CEO Lorne Weil thinks the introductionof V75 and its potential huge jackpots “will appealto both the experienced and the casual race fan.”Philadelphia Park’s CEO Hal Handel says, “Giventhe fact that the base bet is 10 cents and the payoffon July 30 was $290,000 on a 10-cent basewager, this will be a popular pari-mutuel bet forour racing customers. In the long term, we expectthe V75 to attract interest from non-racing customerswho have an interest in wagering into thiscommingled pool with the potential for major payoffs.”September 1, 2005MICHIGAN COMMISSIONER OK’DGovernor Jennifer Granholm of Michigan yesterdaymade it official, and announced that ChristineWhite, who has been acting commissioner sinceJanuary, now is the full fledged permanent racingcommissioner in the Wolverine state. Ms. White,former deputy director of the Michigan Departmentof Agriculture, will serve until Dec. 31, 2008,under yesterday’s action.JESSE TELLS IT AS IT IS..FOR $$You remember Jesse Ventura, Minnesota’s prowrestler turned former governor. He started anew job yesterday, as pitchman for an offshoreInternet gambling outfit. The site, BetUs.com,licensed in Canada and Costa Rica, decided thecolorful Ventura could help round up bettors, justas he rounded up voters in Minnesota a few yearsago. In one of the commercials, Ventura says,“As governor, Jesse Ventura told it like it is, andnow I’m telling you that BetUs.com is the onlyplace to bet.” Ventura told the Associated Pressthat, “I don’t know why I’m attracted to gambling,considering I don’t do it myself very often.”Could it be money, Jesse? He had a differentexplanation: “Bob Dole had the pills, Viagra. Iprefer to endorse gambling. To each hisown......it’s entertainment.”NEVADA GOING TO PHONE BETSYou can bet on this one. The state of Nevada’sGaming Commission has conducted a public hearingon allowing people in other states to set upaccounts at Nevada books for telephone accountbetting. The Nevada Pari-Mutuel Assn. had aheavy hitter, Las Vegas gambling specialist TonyCabot, representing them, and he told the commissionNevada was in “a perfect position” to join17 other states already accepting phone bets. N oone offered testimony opposing the proposal,which bars Internet bets...for themoment.SIMULCAST CONFAB TO MOVEThe joint TRA-HTA-AQHR International SimulcastConference, scheduled for Oct. 3-5 at theHilton Riverside in New Orleans, obviously willhave to be moved. TRA is exploring three alternatesites and will make an announcement in thenext few days.SECURITY DIRECTORS OKThe 8th annual Security Directors Conferencesponsored by SIS will be held Oct. 17-19 at TheWoodlands Resort in the PennsylvaniaPoconos. More details tomorrow.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorHTA JOINS NTRA RELIEF FUNDHarness Tracks of America will join the Racingto the Rescue Fund being established by the NationalThoroughbred Racing Association as an industry-wideresponse to the national disaster inLouisiana. HTA chairman Chris McErlean notifiedKeith Chamblin, who is organizing the NTRAfund, that HTA will be part of the effort. Plansare being formulated for an Oct. 8 special “Racingto the Rescue Day,” with tracks and horsemenparticipating in a fundraising drive that willinclude on-site donation centers where track patronsalso may make contributions. HTA trackmembers that wish to contribute or participatethrough the HTA effort should contact the HTAoffice, 520-529-2525 and ask for general counselPaul Estok or Stan Bergstein. The problems ofracing pale into insignificance in comparison withthe devastation, misery and chaotic anarchy rampantin New Orleans, but the racing industryneeds to join the rest of the nation in attemptingto alleviate the suffering that better national, stateand local planning could have averted to a largedegree with any foresight.HEARING TODAY ON KY CRYINGA Kentucky circuit court judge will continue ahearing today prompted by thoroughbred horsemenand veterinarians in Kentucky who want tocontinue to play by their liberal rules rather thanjoin the rest of the country in uniform medicationreform. The hearing began yesterday andwas expected to end around 2 p.m., but attorneysrepresenting several groups were permittedto cross-examine witnesses, dragging out theproceedings. Circuit Judge Roger Crittendenof the Franklin County Court called a halt andsaid the hearing would continue at 1 p.m. today.A veiled threat arose about a boycott at TurfwayPark, with HBPA chief Marty Malinequickly pointing out that his group couldnot promote a boycott, but that he wasmerely repeating what he had heard.September 2, 2005SETTLEMENT OF SORTS IN OHIOWith River Downs’ biggest weekend of racing comingup, members of the Ohio HBPA have struckan agreement with River Downs and Beulah Parkthat will at least allow River Downs to offer itssignal to account wagering services, includingBeulah’s America Tab operation. No details wereavailable, but Beulah general manager MikeWeiss minimized the arrangement, telling theBlood-Horse that “It wasn’t anything that drastic.We just ended up sitting down and coming to anagreement.” What impact the temporary fix mighthave on Ohio racing in general was not known atpress time.AND RECOMMENDATION IN KYThe state appointed panel in Kentucky named toattempt to break the impasse on compensationinsurance for jockeys yesterday unanimouslyagreed that a three-way split would be the mostequitable approach. Under the 11-memberpanel’s recommendation, tracks, horse ownersand jockeys themselves would share the cost.Tracks would pay what they are currently contributingtoward accident insurance, estimated tobe $400,000 to $450,000 a year. Horse ownerswould be assessed $20 for every starter theyowned. First place money paid to jocks woulddecrease from 10% to 9%, with the differencegoing to the fund. All trainers would have to havea workers’ comp policy to cover exercise riders,whether the rider was a salaried employee or independentcontractor. The panel, the LouisvilleCourier-Journal reports, wants to formalize thesplits rather than dollar amounts, but estimatesthat at present premium rates the plan would costbetween $1.25 and $1.5 million. The head of theJockeys’ Guild, not surprisingly, did not like thesolution. He said that “to say that the jockeysneed to pay into the system flies in the face ofthe definition of workers’ comp. Jockeysshouldn’t be paying a penny.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorJUDGE SAYS NO TO KY HBPAA state circuit court judge in Kentucky has refusedto enjoin the state from implementing and enforcingits new medication rules, as requested by theKentucky HBPA. Judge Roger Crittenden saidthe new rules, which ban horses from receivingmost therapeutic drugs on race day, would notcause irreparable harm to horsemen in Kentucky.A few horsemen based at Churchill Downs declinedto enter Wednesday’s opening night program atTurfway Park, but the track filled its 10-race cardand has a full field in its feature. The threat of aboycott would have cast a pall over Turfway’s introductionof its new Polytrack surface, the first tobe tested under actual race conditions in the UnitedStates.ANOTHER SAYS NO TO NIAGARAIn Niagara Falls, New York, a state Supreme Courtjudge dismissed a suit filed by Niagara county,seeking 75% of the local share of Niagara Falls’Seneca Niagara Casino revenue. The judge ruledthat the $11.2 million cut for the locality hasn’t beenallocated as yet by the New York legislature, andcalled the county’s suit premature.MORE DARK CLOUDS FOR NYRAThoroughbred racing at Saratoga still is the bestand most successful handlewise in the nation, butthe New York Racing Association, which runs it,continues to catch flak regardless of its successes.Although this year’s meeting was down in handleby 5.47% from last year, and attendance was down3.17%, the meeting still averaged almost $15 milliona day. But it no sooner closed than a statecontroller’s draft report surfaced that it had failedto pay the state $40.4 million in franchise fees between2000 and 2003, a figure NYRA says is nottrue. NYRA also caught fire for spending some$17,000 for a press party the day before theTravers. A NYRA spokesman argues, withsome logic, that it makes money for thetrack in coverage.September 6, 2005IN BRITAIN, $4.4 BILLION DROPGibraltar-based PartyGaming Plc, the online pokeroperator that shook Britain with its most explosivestock offering ever in June, has fallen as muchas 37% below its initial offering price, accordingto Bloomberg.com. The report said the stock dropwiped out some $4.4 billion in U.S. dollars. Onefund manager in London for Barclay’s Private Clients,which manages $45 billion, said, “There weresome clear dangers in relation to the valuation ofthis company and our concerns have been realized.”Another analyst, at Seymour Pierce in London,said, “The market has misinterpreted what’sactually happened in the same way that it misinterpretedthat poker was going to the moon ad infinituminitially.” Whatever, it’s a big hit.THE RIGHT AIMS AT ROMNEYSpeaking of big gambles, Mitt Romney, governorof Massachusetts and a presidentialhopeful for 2008, has drawn the ire ofmidwestern and other conservatives with talkof slots in the Bay State. Right wing mobilizerStacey Cargill, who organized thousands ofvoters last year to soundly defeat a slots proposalin Iowa, now says she will seek to jointhe Iowa Christian Coalition and Iowa FamilyPolicy Center against Romney’s hopes in Iowacaucuses. Cargill was quoted in the BostonGlobe’s Boston.com as saying, “If Mitt Romneyis going to engage in incorporating casinoslots as a form of economic development forthe state of Massachusetts, we will spread theword and ask the state of Iowa to vote for anothercandidate in the caucuses. It’s that bigan issue.” Although Romney said two yearsago he would support slots if they were auctionedoff to the highest bidders and the licenseshad limited terms, the matter neverreached his desk, and a Romney spokeswomannow says, “Expanded gaming is notsomething Gov. Romney has proposed oris even considering.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorCLARIFICATION ON N.O. RELIEFIn the welter of confusion, from the very top down,over the New Orleans disaster, a number of trackshave inquired about HTA’s participation in theNTRA Racing to the Rescue Fund.It is a two-part program. Tax deductible contributionscan be made immediately via mail to NTRACharities, Inc. - Racing to the Rescue Fund, c/oBessemer Trust Company N.A., attention RobertElliott, 630 Fifth Avenue, New York, NY 10111.Wire-transferred funds can be sent to BessemerTrust Company N.A., Federal Reserve SymbolABA#0260-0875-6, user name Bessemer TrustNYC-for account NTRA Charities Inc. -Racing tothe Rescue Fund. 100% of all contributions willbe passed through to existing charities establishedto aid in recovery efforts.The second part of the program, in which HTA hasoffered to solicit its tracks for participation, is aRacing to the Rescue Day scheduled for Oct. 8 forvictims of Hurricane Katrina. Tracks can participatein this in whatever fashion they consider appropriateor desire to do. Many HTA tracks alreadyhave implemented relief programs of theirown. All are encouraged to contribute, and to encouragedrivers, trainers, breeders and owners tocontribute a part of their purse winnings on Racingto the Rescue Day Oct. 8. There is nothingobligatory about the program, but a concerted nationalracing effort appears an appropriate industryresponse to the tragedy. If you schedule specialevents for fundraising on Oct. 8, the proceedscan be forwarded as above to the NTRA Charities- Racing to the Rescue Fund, which is a specialdivision of the NTRA’s nonprofit 501 (c) (3) subsidiaryNTRA Charities. Bessemer Trust hasagreed to establish and administer the fund at nocost, and all contributions are tax deductible.If you have further questions, contactHTA.September 7, 2005MAGNA PULLS BACK IN MDThe governor of Maryland, who has been frustratedfor more than two years in his efforts tobring slots to Maryland’s tracks, announced todaythat Magna Entertainment was cutting its racingdays in the state by almost one half. Gov.Robert L. Ehrlich said, “Magna is pulling backfrom Maryland. They are letting legislators andthe general public know it today. They are goingfrom 200 racing days down to 112. We have 20,000jobs at risk.” The governor made clear, in his announcementduring participation on a Baltimoreradio show, that the Magna decision did not meanthat the Preakness was gone, nor that horse racingwas gone, from a state where it once was anational power. “I’ve been told they don’t want toleave,” Ehrlich said. “I’ve been told they mostlikely will be here next year. I have no guaranteethey will be here in two years, three years.” Thegovernor said Magna does not want to leave Maryland,but the company is losing money just aboutevery day of the year except for Preakness day.There was no early comment from House SpeakerMichael E. Busch, who has almost single handedlykilled slots legislation for tracks in Maryland inthe last two sessions of the legislature.O LITTLE TOWN OF BETHLEHEMThe mayor of Bethlehem, Pennsylvania, formerhome of Bethlehem Steel, has problems similarto the governor of Maryland. Bethlehemmayor John Callahan supports the idea of convertingthe huge deserted Bethlehem Steelworks into a $300 million entertainment complex,with a casino, as an economic boon thecity. Now a bitter gambling opponent has useda city council meeting to launch a write-in campaignagainst the mayor, saying he was “emphaticallyand categorically opposed to gambling.”The gambling foe, Karl Fluck, says hewill challenge Callahan, who has no Republicanopponent this fall.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWE LOSE OUR GREATEST NAMEHarness racing lost its brightest star today, whenStanley Dancer died at 78 at his home in PompanoBeach, Florida. The best known harnesshorseman of the modern era -- some outsidersthought he was a horse, but all knew his name,and many knew nothing else but that about harnessracing -- he has suffered in recent years fromthe effects of numerous back injuries and surgeriessuffered during his spectacular racing career.He drove the winners of five Hambletonians --Egyptian Candor, Nevele Pride, Super Bowl,Bonefish and Duenna -- and won harness racing’sTriple Crown of trotting twice, with Nevele Pridein 1968 and Super Bowl in 1972. He also wonpacing’s Little Brown Jug four times, with HenryT. Adios, Lehigh Hanover, Most Happy Fella andKeystone Ore. To the generation that followedharness racing in its halcyon years in the 1960sat Roosevelt Raceway and Yonkers Raceway inNew York, he was the sport. He went to the bigcity from his farm home in New Egypt, NJ, in the1950s and revolutionized the game, breaking theback of single file racing with his bold aggressiveness.At the height of his career he appearedon television’s number one program, the EdSullivan Show, with Cardigan Bay, the sport’s firstmillion dollar winner that he had bought for$100,000 in New Zealand. He developed NevelePride into a three-time Horse of the Year, andappeared on the cover of Sports Illustrated withthat horse in the August 25, 1968 issue. He wasa guest of President Lyndon Johnson at the WhiteHouse the same year. Dancer won 3,781 racesduring his driving career that ended, appropriately,with an 11 1/2-length stakes win with thetrotter Lifelong Victory at Garden State Park inhis native New Jersey on Sept. 21, 1995. HTAextends its sympathies to his wife Jody, his sonRon, a legislator in New Jersey, and theentire Dancer family. The sport was enrichedby Stan’s legacy.September 8, 2005GURAL, SCOTT IN VERNON PACTThe long battle for Vernon Downs may be over,and the track could reopen as early as Novemberif a court approves an agreement betweenNew York breeder-owner Jeff Gural and Las Vegasentrepreneur Shawn Scott. Gural, who hasloaned Vernon some $1.5 million and has courtpermission to loan another $600,000, toldUticaOD.com, “We have reached a deal. Weare in the final stages of exchanging checks andsignatures.” Deborah Deitsch-Perez, an attorneywho has been representing Scott in the negotiations,said, “We think it will resolve virtuallyall disputes between virtually all parties.”Although neither side revealed details, Gural didsay that almost all secured creditors will be paidback between 90% and 100% of their debts, andhe added, “We’re still talking to the non-securedcreditors.” Details of the Gural-Scott agreementwill be made public Tuesday, when it is submittedto a Bankruptcy Court judge for approval.A hearing on the plan is scheduled for Friday,Sept. 16 before U.S. Bankruptcy Court JudgeStephen Gerling. At that time Gerling also willhear a proposal from Eric Spector of California,who is trying to buy the track and once servedbriefly as its chief executive. Joe Faraldo, representingthe Harness Horsemen’s Associationof Central New York, said of the deal, “We onlylike one thing, and that is getting racing back assoon as possible. If racing can get back soonerby Shawn Scott and Jeff Gural making peace,we can live with that.” The horsemen have anotherchoice, of course: suicide.SIMULCAST TO SAN DIEGOThe TRA-HTA-AQHR International SimulcastConference, originally scheduled for New Orleans,has been moved to the Hilton LaJolla Torrey Pinesin LaJolla, California. The dates remain the same-- Oct. 3-5 -- and details are available fromTony DeMarco at TRA, 410-392-9200.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMD HORSEMEN UNHAPPYIn a burst of wrath that would have been helpful ifdirected earlier at House Speaker Michael Busch,Maryland’s thoroughbred horsemen have lashedout at Magna for its plans to cut racing dates inthe state. The Maryland ThoroughbredHorsemen’s Association president RichardHoffberger, using strange allegory, said “I’m notprepared to say everything we’re going to do. DidGen. Rommel tell the world his battle plan? Ouroptions are somewhat limited, but they are severeand significant.” Hoffberger undoubtedly remembersthat Rommel lost the war, not won it, but regardlessthe Baltimore Sun speculated thatHoffberger’s “options” included denying simulcastingprivileges to Magna’s Maryland JockeyClub, or withholding entries and racing elsewhere.The horsemen plan to raise the roof at a Marylandracing commission meeting next Tuesday.Commission chairman Tom McDonough, told theSun, “Magna gave what I thought was significantjustification for the actions they’re taking. ButI’m not sure it’s significant enough, given theamount of trauma and hardship it’s going to causethe grooms, the hotwalkers, the trainers.”Hoffberger, still apparently impressed withRommel, said, “Let’s see how the commission respondsto this scorched earth policy.” SpeakerBusch and his colleagues in the House are, accordingto The WBAL Channel.com, “looking atways to prop up the state’s horse racing industrywithout approving slot machines.”BIG PLANS IN BETHLEHEMA group called BethWorksNow, hoping to developa $350 million slots parlor and hotel in the desertedBethlehem Steel Works in the Lehigh Valley cityof southeast Pennsylvania, is prepared to makethe Bethlehem City Council an offer it can’t refusewhen it meets Sept. 20 to vote on the issue.BethWorksNow principal Michael PerrucciSeptember 9, 2005told Bethlehem businessmen at a meeting yesterdaythat his offer would “include everything frompreserving the hulking blast furnaces to hiring locallabor to building a $200 million mall,” accordingto mcall.com, the Allentown Morning Call’sWeb site. The service also quoted Perrucci assaying he was prepared to agree by contract todoing what he proposes. The offer was formidableenough that one city councilman who supports azoning change to ban gambling from the steel sitecalled it, “Very impressive, very interesting.” Hesaid he wasn’t ready to change his view, but “I’minterested in hearing more.”DANCER ARRANGEMENTSStanley Dancer will return to his roots in NewJersey next week, when he will be buried in theMaplewood Cemetary, across the street fromFreehold Raceway. Visitation will be Monday,Sept. 12, from 5 to 8 p.m., at Freeman’s FuneralHome, 47 Main Street, Freehold, NJ, withservices there on Tuesday morning at 11 a.m.Following the services the hearse will take Stanon his final mile, circling the Freehold trackbefore interment. A special memorial servicewill be held at HTA member Pompano Park ata later date to be announced. In lieu of flowers,donations may be made to the StanleyDancer Memorial Museum building fund at theNew Egypt Historical Society, P.O. Box 295,New Egypt, NJ 08533, the Harness RacingMuseum and Hall of Fame, 240 Main Street,Goshen, NY 10924, or Hospice Care of SoutheastFlorida, 309 SW 18th Street, Ft. Lauderdale,FL 33316.CONFERENCE CALL ON RELIEFHTA is setting up a conference call for next weekto clarify participation by our member tracks inthe October 8 Racing to the Rescue program ofthe NTRA. Day, date and time of the call willbe announced here Monday.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor‘SURVIVAL’ IS NEW BUZZ WORDAll of a sudden, survival is on everyone’s mind,in racing as well as in Louisiana. Maryland isworrying about the survival of its racing industry,and getting a lot of suggestions from the Baltimoreand Washington press, both of whom definehorse racing as thoroughbred racing, andscarcely seem to know there also is a major harnessracing industry in Maryland. The BaltimoreSun, editorializing on this, calls the night racingexclusivity, designed to separate the days andnights into their long-established domains, unreasonable.It bemoans the fate of the “AverageJoe,” who generally finds himself working at 1p.m. on weekdays, as “out of luck.” He can, ofcourse, go to the harness races at night, but theSun does not consider that as “worth saving.”Magna-bashing has become a popular journalisticsport in Maryland and the District of Columbia,as if this big company has some huge responsibilityto Maryland to continue to lose money.Magna may have made mistakes in what it hasdone or not done in Maryland, but destroying oneracing industry to help another is not the answerto Maryland’s racing problems.In Iowa, the Racing and Gaming Commission hasrejected a claim by the National Cattle Congressthat it still holds a gaming license issued in theearly 1990s at the now shuttered Waterloo GamingPark. The NCC called its bid “an act of desperation,”saying that without the license the NationalCattle Congress fair in Waterloo, a fixturesince 1910, is doomed.Elsewhere on the “survival” front, the StateBoard of Horse Racing in Montana is discussingthe possible consolidation of Montana’s five minorracing meets into one to help save the sportin that state. Racing days in Montanahave dropped from 120 to 37, and tracksfrom 12 in 1982 to 5 today.September 12, 2005In California, where doom is less imminent, controversythrives. Gov. Arnold Schwarzeneggerannounced last Friday that he might allow twoIndian tribes to set up Vegas style casinos inBarstow, far from their ancestral homes. Barstowis in favor of getting both casinos for its economy,but southern California tribes that already havecasinos are not. The chairman of the San ManuelBand of Mission Indians, which owns a large casinojust out of the city limits of San Bernardino,called Schwarzenegger’s move, “Reservationshopping at its worst.” The geographic discrepancyinvolved is interesting. The Los Coyotes,380 strong, have a 27,000-acre reservation inWarm Springs in San Diego county, but in ruggedcountry that is relatively inaccessible. The BigLagoon Band, 18 members strong with 20 acresin Humboldt county in northern California, are600 miles from Barstow, but the state insistedthey be allowed to have a Barstow casino as acondition to the Los Coyotes, and both will get2,250 slots. Barstow is a small city of 23,000, butis located on U.S. 15, the main highway from LosAngeles to Las Vegas, and about midway betweenthe two cities. One estimate, repeated severaltimes in the Los Angeles Times, estimates that60 million motorists pass thru every year, a highlyimprobable number since it breaks down to almost165,000 a day. Its gas stations have 25 to30 pumps each and reportedly are busy all day,and its McDonald’s franchise is one of the fivelargest grossing in the entire chain. In case whereyou wonder where two little tribes would get themoney to build $160 million dollar casinos, theanswer is in BigWest Gaming, way out West inDetroit. BigWest is Marian Ilitch, who made hermoney selling pizza, founded the Little Caesarschain, and now owns much of Detroit, includingthe Red Wings, Tigers, Olympia arena, theaters,and other scattered activities. She also had westcoast power broker Willie Brown as consultant.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorCONFERENCE CALL TOMORROWWith the welter of relief efforts for HurricaneKatrina flowing all over the place, willy-nilly, includingsome scams, HTA and the NTRA will hosta conference call tomorrow, Wednesday, at 3 p.m.eastern daylight savings time, to update membertracks on the NTRA Charities - Racing to the RescueDay October 8 and attempt to coordinate plansas far as possible by all tracks participating in theeffort. If you plan to participate -- and we hopeyou do -- join the conference call at 3 tomorroweastern time, by calling 1-800-486-3317, with a conferenceID number of 6814000#.FIRST STEP TO OBLIVION?The city planning commission of San Mateo, California,after 15 meetings extending over severalmonths, has voted to recommend to the city councilthat 71-year-old Bay Meadows racetrack bedemolished to make room for housing, shoppingand office space. The Bay Meadows Land company,which recently bought Hollywood Park,wants to redevelop the 83.5-acre San Mateotrack into 1,250 residential units, 1.25 millionsquare feet of office space, and 150,000 squarefeet of retail space, with 15 acres of open spacefor aesthetics. Bay Meadows was built in 1934and its Bay Meadows Handicap was won in 1937and 1938 by Seabiscuit. Talk of redevelopmentof Bay Meadows has been going on for at least13 years, and track president Jack Liebau indicatedthere will be horse racing there for at leastseveral more, since in addition to city councilapproval, design plans and environmental reportsare required, and the Land Company itselfmust determine that housing and office space arethe best use of the property. Liebau said, “Themarket must be there,” and Daily Racing Formnoted that much of the office space built whenthe old stable area and training trackwere sold in the 1990s remains unoccupied.September 13, 2005NYRA OFF HOOK, FOR NOWThe New York Racing Association has beenspared prosecution for past sins, after the ActingU.S. Attorney Eric Corngold and statecomptroller Alan Hevesi announced that thefederal government was dismissing the Dec.4, 2003, indictment against NYRA. The actionon the deferred prosecution issue followedNYRA’s compliance with demands for restructuringsenior management, appointment of anindependent monitor, and payment of $3 millionin fines. The dismissal followed a favorablereport from the court appointed monitor,the law firm of Getnick and Getnick, whichfound reforms and remedial measures byNYRA warranted the government’s action.Hevesi, in announcing the dismissal, said,“The franchise to operate Saratoga, Belmontaned Aqueduct race tracks will be worth muchmore when it is put up for bid if the reformsachieved at the New York Racing Associationover the last two years are preserved and sustained.”$200 MILLION TO STAY PUTDetroit’s Greektown Casino, which has been talkingabout moving out of downtown Detroit, haschanged its mind and decided to spend $200 millionto upgrade its facility in the heart of the downtowndistrict. Greektown plans to build a 15-story,400-room hotel with 25,000 square feet of conventionspace; a 3,500-car parking garage; a 1,500-seat theater; and expand its gambling floor from75,000 square-feet to 100,000.RENDELL ACTS ON SCHOOLSAfter only 111 of Pennsylvania’s 501 school districtsagreed to accept slots money with strings attached,Gov. Ed Rendell has asked for legislation to overridethe other 390 and make them take it, so he cancarry through on his property tax reduction law.The school boards are not happy, one membercalling Rendell “a dictator.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondSeptember 14, 2005Stanley F. Bergstein, EditorAH YES, FLORIDA & MARYLANDMore stormy weather in those two racing states.In Florida, the chairman of the House BusinessRegulation Committee, Frank Attkisson, said hesees no reason “to rush” the issue of slots forBroward county tracks, although it now is 10months since voters approved the idea. Attkissonsays he doesn’t want to rush the issue, telling theAssociated Press, “I feel no compulsion to pushthis into a special session.” We have a solutionto the problem. Put a track in Kissimmee, nearOrlando and where Attkisson is from, and offer itslots, and Attkisson would get the matter resolvedtomorrow. Meanwhile, although a judge has toldthem they can start offering slots anytime theywant, with or without Frank Attkisson and the legislature,no one in track management in Browardcounty has ordered any, preferring to wait for thelegislature’s decision on revenue splits, hours andtype of equipment.In Maryland, the racing commission listened torepresentatives of track management and horsemen,and then punted, postponing until Oct. 6 adecision on whether or not it will approve MagnaEntertainment’s proposal to cut racing dates inthe state dramatically. Joe DeFrances, presidentand CEO of the Magna-owned Maryland JockeyClub, told the commissioners that if they grantedthe cut in dates Pimlico and Laurel could raisepurses to $303,571 a day instead of the $197,877,enabling them to compete with West Virginia,Delaware and, in the next year or two, Pennsylvania.Magna lost $95.6 million last year on itsMaryland operations. Alan Foreman, generalcounsel for the Maryland thoroughbred horsemen,said Magna was “emboldened by what theysee as a compliant racing commission that willrubber-stamp whatever they want to do.”He was not quoted as to whether heagreed with that view.A MILLION FROM RICKMANSThe Rickman family, which owns Delaware Parkand Ocean Downs in Maryland, has contributed$1 million through a newly created DelawareGood Neighbor Fund, to relief for victims of HurricaneKatrina. Bill Fasy, COO of Delaware Parkand HTA member Ocean Downs, said theRickman family approached Gov. Ruth AnnMinner and helped jump start the Good NeighborFund with their donation. Fasy noted thatBill Rickman Jr. had been a helicopter pilot inthe Army, and had flown over the devastation ofan earlier disaster caused by Hurricane Camillein 1969 and has seen firsthand what havoc a hurricanecan wreak. Fasy said the Rickmans hopedthat if their million dollar donation, at the midsizedlevel of their enterprises, might encourageother businesses, larger and smaller, to followsuit. Horsemen at Delaware Park obviously wereencouraged, donating $250,000 of their pursemoney to the NTRA Charities, which HTA trackswill join Oct. 8 in a Racing to the Rescue Dayorganized by NTRA.MORE ON THE VERNON DEALMore details have surfaced on the Vernon Downspurchase deal being proposed by Jeff Gural aftera compromise with Shawn Scott. If approved bythe bankruptcy judge hearing the matter and creditors,Mr. Gural’s new group would take Scott entirelyout of track ownership by acquisition of hisshares and repayment of an outstanding $2.8 millionloan. Gural and TrackPower each would a25% share in Vernon, and the other 50% wouldbe owned by Nevada Gold, which despite its nameis a Texas company that owns gaming facilitiesaround the country. The bankruptcy judge,Stephen Gerling, will weigh the Gural proposalFriday along with one from Eric Spector, the Californiaentrepreneur who briefly was Vernon’schief executive after the track declared bankruptcy.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorSOMEONE IS MISTAKENAngry words in New York and Maryland, as officialsissued differing opinions of events.The widest gap came in New York, where the NewYork Racing and Wagering Board and the courtappointedmonitor of NYRA, the law firm ofGetnick and Getnick, issued statements that cannotbe reconciled. One of the parties must be inerror.The dispute started Tuesday, when Neil Getnick,after issuing a report that NYRA had reformed,lashed out at the racing board, criticizing it for failingto act on pending simulcast contracts and proposedrule changes regarding rebates for NYRA.Getnick said, “Right now, the regulated is leadingthe regulator.”Yesterday, the board fired back, claiming it neverwas contacted by the Getnick firm as it was examiningmismanagement charges at NYRA. DanToomey, a spokesman for the racing board, issueda statement saying, “It’s unfortunate that the independentmonitor, in the course of hismonitorship, chose not to consult with us despiteour many requests to fully share the concerns wehad about NYRA’s practices.” That brought animmediate charge from Getnick that the statementwas not accurate. “We did contact the Racing andWagering Board right from the start of themonitorship and that is referenced in the first report,”which was issued in June of 2004. “We’vehad numerous meetings with the board includinghighly substantive and, frankly, helpful meetingswith the board staff in the early months of ourmonitorship and more than a half-dozen meetingsover time where NYRA was also in attendance.”Either Toomey or Getnick is mistaken. Newsdayreported yesterday that Toomey had noimmediate comment in response toGetnick’s remarks.September 15, 2005In Maryland, another case of disputed testimony.The chairman of the Maryland Racing Commission,Tom McDonough, contradicted a statementmade at a Tuesday meeting by Maryland ThoroughbredHorsemen’s Association executive secretaryWayne Wright and attorney Alan Foremanthat a preexisting agreement between the MTHAand track owners required Magna to run five daysof live racing each week through Belmont Stakesday in June 2006. McDonough said, “Alanmisspoke. The agreement says, up to five days.As I read it, that means Magna can fulfill its obligationby running as few as one day. It’s a matterof interpretation. What I think Alan was talkingabout was the intent of the parties at the time theagreement was made.” Foreman in effect agreedon the intent issue, calling the agreement “verytechnical,” but also saying it was an argument overnothing. It seemed doubtful McDonough wouldagree with that, and he cannot be pleased withForeman’s statement that, “In the first place, thechairman shouldn’t be weighing in. He wasn’t inthe room when this document was drawn up. Butevery year since it was agreed to, the tracks haveraced five days a week, which speaks to the intent.Tom is arguing Magna’s case, saying theycan run less than five days and be in compliance.We read it as saying not more than five withoutpermission.” Foreman also said there could be nodebate that Magna was proposing to stop racingon Preakness Day, but the agreement said theymust run through Belmont Day 2006, three weekslater.QUOTE OF THE WEEKThe Pittsburgh City Council voted unanimouslyyesterday to approve having the mayor apply fora slots license within city limits. One councilman,William Peduto, questioned the wisdom of the cityrunning slots. “We have a difficult time runningrodent control,” he said. “I don’t know if it’sreally local government’s job to run casinos.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorSECURITY ROOMS DEADLINETomorrow, September 17, is the deadline forroom reservations for the 8th annual HarnessTracks Security Directors Conference at theWoodlands Inn and Resort in Wilkes-Barre, PA,hard by the Mohegan Sun at Pocono harnesstrack. The Woodlands Inn is located on 40 acresof lush greenery in the heart of the Pocono resortarea. To make room reservations, at $85 anight, single, including breakfast, call 570-824-9831 or 1-800-762-2222 and ask for the StandardbredInvestigative Services room block.The Security Conference dates are Oct. 17-19,and the registration deadline is Monday, Oct. 3.The registration fee is $35, and registration canbe handled through the SIS office at 410-392-2287. The agenda includes slot operations,medication issues, interaction with Canadian securityoperations, conducting internal investigations,and terrorism updates, among other subjects.If you are flying to the Wilkes-Barre/Scranton airport, there is complimentary shuttleservice to the Woodlands by calling their phonelisted above. If you are renting a car, take Interstate81 south from the airport to the Wilkes-Barre exit (170B), then get off at exit #1. If drivingfrom Philadelphia, Pittsburgh, New York orBaltimore contact SIS.‘BOLD INITIATIVE’ BY KEEPThe Kentucky Equine Education Project, orKEEP, announced its “ bold legislative initiative”for Kentucky today, but the revelations weresparse. KEEP, which includes the Red Mile, withJoe Costa as a director, said earlier that “Kentuckyis in dire need of additional revenue to provideservices to its people,” and its plan wouldraise revenue “without a broad-based tax increase.”That means casinos and slots, but therewas no word about how the monies raisedwould be divided, what tracks would get,or where casinos would be located.September 16, 2005BIG DOINGS SATURDAY NIGHTBig money and dramatic racing on the line ontomorrow night’s harness racing calendar.At Saratoga Gaming and Raceway, the track offersits richest night ever, with eight $150,000New York Sire Stakes Finals on a card billed asthe Night of Champions. Saratoga is offering aunique betting format on the rich program, withrolling pick threes, two pick fours and superfectawagering on all eight of the championship races.The evening’s program carries $1.2 million inpurses.At Mohawk Raceway, a phenomenal card, ledby the $1 million Metro Pace for 2-year-old colts,with Palone Ranger the 2-1 favorite. The realhighlight of the program, however, is the$918,500 Maple Leaf Trot, with the world’s besttrotting mare, Peaceful Way, facing the sport’sbest male trotter, Mr. Muscleman. “ In addition,Mohawk’s program includes the $688,200She’s a Great Lady for 2-year-old pacing fillies;a $50,000 consolation for that event; a $100,000Metro consolation; two $40,000 eliminations forthe Canadian Trotting Classic for 3-year-old trotters,including American-National winner andHambletonian runner-up Classic Photo; and a$45,000 open event for pacing mares.The Saratoga Night of Champions had one darkcloud thrown over it when Four Starz Dlivery wasscratched from the $150,000 championship finalfor 3-year-old pacers after testing positive formilkshaking at Batavia Downs Sept. 10. DaveSabatelli, Four Starzzzz Stable’s regular trainer,was training Four Starz Dlivery for owners JeffCohen and Mike Sudaley in the Batavia race inwhich he turned up positive. Sabatelli also wastrainer of Four Starz Cacti, another Cohen-Sudaley horse that came up with a positiveat Batavia Sept. 8.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorCREDITORS GET THEIR SAYSome 1,000 creditors and stockholders of VernonDowns get their say next week, when they willvote on the proposals of Jeff Gural of New Yorkand Eric Spector of California as to who gets tooperate the shuttered track. They have until Oct.31 to express their preference on the plans, andprobably will need most of that time to digest the300 pages of information that the document theyreceive will contain. After the creditors andshareholders vote, federal bankruptcy judgeStephen Gerling will rule on the winner at a Dec.16 hearing. Although Gural has been the drivingforce in working for new ownership, it turns outhe will be a minority partner if his group wins,with a 25% share to the 50% share that would beheld by Nevada Gold, a Texas outfit that operatesgambling facilities. The remaining 25%would be held by TrackPower, a Canadian-ownedcompany that has dabbled in a number of bids forracing roles. Although the two proposals are similarin a number of respects, and both were approvedto go forward by Gerling, the Gural planguarantees creditors at least 90% of their claims,while the Spector bid does not.YOU CAN BE DUMB AND DRIVEIt takes skill and courage and timing and coordinationto drive harness horses, but it does not necessarilyrequire brains. A case in point is that ofdriver Todd M. Kolbe, who walked up to aparimutuel clerk stationed in the paddock ofPlainridge Racecourse before the seventh race onAug. 30 and bet $18 against his own horse, favoritein the race, and then finished fifth. Track presidentGary Piontkowski, on hearing of the bets,marched to the paddock and ejected Kolbe fromthe track. The Massachusetts racing commission,which Piontkowski once headed, was not quitea sdecisive. It suspended Kolbe for 90 daysand fined him $250 for “an unsatisfactorydrive.”September 19, 2005Asked by Boston Globe reporter Bob Hohler ifthat penalty was severe enough, acting state racingcommissioner Jack Magee said doing morewould have been “a little premature” because thejudges hadn’t even signed their decision. Mageeclaimed the commission “took this seriously,” butobviously not seriously enough for Piontkowski,who said, “Whether the racing commission suspendshim for 90 days or 900 days, we threw himout and we won’t let him come back.”SARATOGA’S BIGGEST NIGHTQuality pays handsome dividends in racing, andif you need to confirm that you can ask SkipCarlson, who runs Saratoga Gaming andRaceway’s racing operations. He calledSaturday’s “Night of Champions,” which featuredeight $150,000 New York Sire Stakes, “a fantasticnight. The energy and enthusiasm that wasgenerated was tremendous for the horsemen,owners and personnel at the track. It shows ifyou have great horses and great racing, the fanswill come out.” Carlson said many in the crowdof more than 4,000 -- Saratoga’s biggest in recentmemory -- told him how excited they were tobe back, and Carlson says that excitement validatedthat the mix between racing and gamingworks well at Saratoga. He said many of the patronsstayed in Saratoga Springs overnight, enjoyedthe gaming, and took in what Saratoga hasto offer. Five track records were set or equaled,and four of the races featured times that werethe fastest in the 16-year history of “Night ofChampions,” which previously were raced at YonkersRaceway, now being reconfigured as aracino. Carlson hopes to host the event again.He thinks the excitement and quality of the nightwill inspire new owners to enter the sport, and hepredicts the $9 million in purses for New Yorkbredtrotters and pacers will double over the nexttwo years, when slots at Yonkers should beunderway.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTANNER TO RUN CHESTERMike Tanner, director of marketing at GulfstreamPark, where he has worked for 12 years, has beennamed by Harrah’s to run its harness racing operationat Chester Downs. Tanner served for eightyears as assistant director of communications atGulfstream under veteran publicist JoeTanenbaum. He also took over simulcasting operationsat the track four years ago, and servedone year as special assistant to track presidentScott Savin before replacing David Rovine as directorof marketing last year. Tanner, 39, says heloved his time at Gulfstream but called Chester“an opportunity that I couldn’t pass up.” He is anative of southern New Jersey and said the newjob allows him “to go back home.” He will start atChester next month.BIDDING QUESTIONED IN PASlots are still a long way off in Pennsylvania, butthe process of getting them started already hascreated controversy. A Pittsburgh publication, theTribune-Review, reports that the first major gambling-relatedcontract, worth an estimated $6.3million a year to GTECH, which was awarded thecontract, was let by the state’s Department ofRevenue without normal procurement process, andthat Revenue refuses to identify nine other biddersor reveal how it selected GTECH. The paperquoted Barry Kauffman, executive director ofPennsylvania Common Cause, the public policynonprofit agency, as saying, “It’s clearly not anappropriate way to conduct the public’s business.The public can’t evaluate if the government is doinga good job in the selection process if it onlyknows the winner.”The story detailed GTECH’s negative publicity andproblems in recent years, saying the contract“could put a company embroiled in a federalbribery investigation in charge of thecomputer tracking activity at slots casinos.”September 20, 2005NO UNANIMITY IN SAN MATEOTwo hundred people turned out for a public hearingbefore the San Mateo, California, City Councilon the fate of Bay Meadows racetrack last night,but they left with as much indecisiveness as beforethe meeting started. Bay Meadows Landcompany, which owns the 71-year-old track and nowalso owns Hollywood Park, wants to tear BayMeadows down and replace it with 1,250 homes,1.25 million square feet of offices, 15 acres ofparkland and 150,000 square feet of stores andrestaurants on the track’s 83 acres. Supportersof the plan think it will help stop development ofSan Mateo’s hills and provide better access totransportation and Highway 101, which serves SanMateo. Opponents say the housing plan wouldcause congestion, gridlock and school overcrowding,and that if the track must go, the land shouldbe put to better use than housing. The San MateoChronicle’s SFGate.com reported this morningthat the proposal to tear down the track and buildthe homes “received about as much opposition asit did support.” If the City Council approves themove, a group called Save Bay Meadows says itwill launch a referendum drive, with 30 days togather the signatures needed to get a referendumon the ballot next fall.NY BOARD MULLS REBATESAlthough the court-appointed monitor of the NewYork Racing Association strongly recommendedrebates as an aide to racing, the New York Racingand Wagering Board has no immediate plans toapprove the idea, according to Daily RacingForm. Dan Toomey, a board spokesman, told theForm’s Matt Hegarty that “NYRA is only one ofthe many entities that the racing and wageringboard regulates,” and the board was still collectinginput on the programs from racing interests inthe state. With all the political and business considerationsinvolved in even the smallest decisionconcerning New York racing, don’t expectquick action on rebates.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorSENATE ACTS ON SLAUGHTERThe U.S. Senate yesterday passed, by a decisive68-29 vote, an amendment to the Department ofAgriculture Appropriations Bill that could, in effect,end the slaughter of horses in this countryfor foreign consumption. Under provisions of thebill -- a similar version passed the House on June8 by a 269-158 vote -- funds would be cut off forinspection of horse meat and would end for oneyear, starting Oct. 1, the exportation of horse meatoverseas. The bill has been pushed hard in theHouse by Reps. Ed Whitfield of Kentucky, JohnSweeney of New York and John Spratt of South Carolina,and Whitfield, husband of Kentucky racing commissionerConnie Whitfield, called yesterday’s vote“a great, great victory.” It increases the chances ofpassage of H.R. 503, the American Horse SlaughterPrevention Act, which currently is before the HouseEnergy and Commerce Committee and would permanentlyend commercial horse slaughter in theUnited States. The Senate amendment was introducedby former veterinarian Sen. John Ensign ofNevada.BETHLEHEM OKS SLOTSBefore a standing room only, turnaway crowd, theCity Council of Bethlehem, PA, voted 4-3 yesterdayagainst a plan that would have prohibited gamblingat the huge abandoned Bethlehem Steel companyplant. The vote came one day after a six andone-half hour public hearing, and opens the way forBethWorks Now and the Sands corporation of LasVegas to seek a gaming license for their project todevelop 126 acres of the Bethlehem Steel site intoa huge entertainment and recreational area thatwould save 23 of 33 buildings on the site and bring3,000 slots to it. The mayor of Bethlehem, who supportedthe idea of a casino at the steel site, told theCouncil last night, “Gambling is the law ofthe land in Pennsylvania, and no action tonightis going to change that.”September 21, 2005TASMANIAN BETFAIR ON HOLDBetfair’s bitter battle to gain a foothold in thesouthern hemisphere by gaining approval to openbetting exchanges in Tasmania were delayedagain yesterday, when the issue was put on holduntil Oct. 18. The premier of Tasmania, PaulLennon, was expected to endorse Betfair’s bidyesterday, and says he thinks he has enough supportin both houses of Parliament to get it done.But Tasmania’s racing industry wanted moretime, and the delay for discussions was extended.If Betfair is approved, Tasmanian racing wouldbe deleted from the Super TAB, TAB Limited andUniTAB betting pools in other Australian statesand territories, and could affect the schedulingof the Inter Dominion, harness racing’s biggestevent Down Under. That racing carnival currentlyis scheduled for Tasmania in March. Harnessracing authorities are expected to urge Tasmaniato be stripped of the event if Betfair is licensed.Robert Nason, chief executive of RacingVictoria and a strong opponent of Betfair,thinks Lennon will have a difficult time gettingapproval through both houses of Parliament.“There is a way to go,” he said, “and it will bemonths away.” Australian racing opposes the ideabecause of the primary concern over Betfair, thefact that it allows bettors to back a horse to loseas well as win.MORE TROUBLE AT NYRA?The New York Post reports that “a group of topNew York Racing Association officials has beenindicted on charges they ‘altered the outcome ofraces’ by lying about the weight of jockeys....”Thepaper said Mario Sciafani, NYRA’s chief of scales,and his deputy, Hall of Fame jock Braulio Baezamwere expected to surrender today when a 190-pageindictment is formally unsealed in Albany. Thestory says the indictment claims officials failed toreport the accurate weights of jocks and thenlied about the matter afterward.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTHE RITA AND BRAULIO SHOWThere is no levity to what is happening in the Gulfof Mexico, but to read New York sports pagesthis morning Hall of Fame jockey Braulio Baezagets equal billing with the evil lady Rita who isrampaging toward Galveston. Baeza, assistantclerk of scales for NYRA, was fired yesterday,along with his boss Mario Sclafani, after a 291-count indictment charged the two with defraudingbettors, trainers, and other jocks by conspiringwith some jockeys to falsify their actual weightin stakes and other races on 67 occasions. JockeysJose Santos, who rode Funny Cide to hismuch publicized victories in the 2003 KentuckyDerby and Preakness, and Robby Albarado,Heberto Castillo Jr., Ariel Smith and CornelioVelasquez were named as co-conspirators in thesuit, but do not face criminal action. They could,however, face sanctions from the New York Racingand Wagering Board.Sclafani and Baeza are in much deeper water.The charges brought by state attorney generalEliot Spitzer, state comptroller Alan Hevesi andstate police superintendent Wayne Bennett includescheme to defraud, conspiracy, falsifyingbusiness records, tampering with a sports contestand grand larceny. Although Spitzer said thecharges resulted from a yearlong investigationby the AG’s Organized Crime Task Force, andHevesi acknowledged that the new managementof NYRA had brought the matter to light immediatelyon discovering it, one had to read as far as13 paragraphs or more into most stories to discoverthat fact. NYRA itself went farther, andmade its role clear in a press statement, that readin part: “NYRA initiated the investigation intothese alleged improprieties two years ago and wehave cooperated fully with all government andlaw enforcement agencies.” The pressdamage to racing integrity, nevertheless,has been, like Rita’s potential impact inthe Gulf, enormous.September 22, 2005The negative publicity involving one of racing’sgreatest former jockeys was not the only pressblow yesterday. Newsday and others jumped onthe story of NYRA trying for a quick sale of 80acres near Aqueduct, even though state officialsclaim NYRA’s assets belong to the state. NYRAmay turn out to be right or wrong in what it isdoing, but you wouldn’t know it from the stories,which imply deep, dark acts of impropriety.One such implication was cast by attorneyDonald Kinsella, representing -- according toNewsday -- “one of several entities that seek toreplace NYRA when the state franchise expires.”Kinsella, who would not identify his client,which to some journalists would disqualifyany objectivity connected with the story, wrotea letter to comptroller Hevesi calling NYRA’saction “remarkable.” Some might think newspapersprinting charges by lawyers refusing toidentify their clients also classify as “remarkable,”but they get printed, sell papers, and dotheir damage to the accused long before adjudication.BETTER NEWS ELSEWHEREThere were happier developments yesterday onother fronts. In Washington, the American HorseCouncil revealed that thanks to Senator MitchMcConnell of Kentucky, language making horseseligible for federal disaster assistance now is includedin the Department of Agriculture 2006 appropriationsbill in the wake of Hurricane Katrina.In Maryland, a very positive story in Gazette.com,the online newsletter of Maryland CommunicationNewspapers, on the strong economic recovery ofRosecroft Raceway.And in Pennsylvania, Mohegan Sun president BobSoper says he expects Mohegan Sun at PoconoDowns to be the first track slots operation in thestate. Pocono already is building a temporaryracino, and Soper thinks they will be readyto roll by spring.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTHE NET WIDENS IN ONTARIOThe battle against illegal medication took a newand important turn yesterday in Ontario, whenthe trailblazing Ontario Racing Commission notifiedlicensees and participants in horse racing-- harness and thoroughbred -- that any horsestreated by two veterinarians would be prohibitedfrom racing in the province.The commission on Wednesday issued a lifetimesuspension to Dr. Blaine Kennedy, revoking hislicense because he “will not act in accordancewith the law, or with integrity, honesty or thepublic interest.” The commission said Dr.Kennedy had “placed the integrity of the horseracing industry in Ontario in question and, inparticular, the quality and integrity of veterinarycare of horses, and the public interest requiresthat the licensee be suspended immediately.”Dr. Kennedy held Ontario commission licensesto treat both harness horses and thoroughbreds,and was found to have purchased and used controlledsubstances from the late Fred Rogers.Rogers had been the subject of investigation foryears by Standardbred Investigative Services.In issuing its ruling, the Ontario Racing Commissionnotified all Ontario participants in racingthat any horse treated by Dr. Kennedy on orafter Saturday would be ineligible to be declaredin any race at any raceway in Ontario, and thatany participant attempting to enter a horsetreated by Dr. Kennedy after Sept. 24 would befound to be in violation of Ontario rules, regardlessof breed. The same penalties apply tohorses treated by Dr. Martin Ian Levman. Althoughnot an Ontario Racing Commission licensee,horses treated by him also will be ineligibleto race in the province and will befound to be in violation of Ontario’s racingrules.September 23, 2005PRIORITIES IN FACE OF RITAYou might think people living on the Gulf coast ofthe United States would be concerned most aboutsurvival, whether the economic devastation of thekiller hurricanes can be reversed in the next decadeor whether some of the damage to ports andresidential areas are essentially irreversible andinevitable with global warming, which the federalgovernment has long ignored.That undoubtedly is true with the vast majority ofpeople living there, but Missisippi’s largest religiousgroup -- the Mississippi Baptist Convention-- apparently has other priorities. It is trying tomake sure that casinos do not use Katrina andRita to rebuild on land, rather than over the watersof the Mississippi River or Gulf of Mexico towhich they now are limited. There are 13 of thosecasinos, and the Convention’s fear is that “oncethe casinos are land-based, attempts to move inwardto other locations will follow,” according toJimmy Porter, executive director of theConvention’s Christian Action Commission. TheConvention is not exactly without political powerin Mississippi. One out of every four Mississippiansis a Baptist. The Daily Mississippian, commentingeditorially on the situation, noted that “immoralor not, the fact is the state needsmoney....Granted, some in-state dollars did feedthe casinos; but even more money poured in fromour Southern neighbors, of which approximately$500,000 a day ended up in Jackson; not in Atlanta,not in Baton Rouge and not in Montgomery,but in Jackson....Too much money and toomuch of our tourist appeal will be lost if we don’trebuild the casinos. If we’re going to have gambling,and we are, then we should go ahead andembrace it.”SEE YOU FROM LEXINGTONThe Daily Executive Newsletter will reach you nextweek from Lexington, KY, where the staff willbe operating the HTA art auction. The homeoffice will be manned.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor September 26, 2005FUMBLING AROUND IN PA AND CHECKING UP IN NYRacing is working at solving its many problems Still smarting under attacks of inaction by the courtthese days, and the Pennsylvania Harness RacingCommission has a very big one, whether it ciation, the New York Racing and Wagering Boardappointed monitor of the New York Racing Asso-knows it or not. It is communications, or more announced over the weekend that it would seek aaccurately the lack of them. The commission issueda suspension order dated last Wednesday for as possible” to review the licenses of themeeting with the attorney general’s office “as soonthe nation’s leading money-winning driver, Brian unindicted coconspirators in the latest NYRA problem,that of inaccurate jockey weights. A spokes-Sears, saying he would have to undergo six monthsof rehabilitation on drug matters and that he was man for the board said it would go over any informationattorney general Eliot Spitzer might havebarred from racing or its premises in the meantime.Sears then drove last Thursday in the halfmilliondollar Little Brown Jug, and on Saturday and perhaps four others who the AG’s office re-on five jockeys already named, but not charged,at both Freehold in the afternoon and at Mohawk ported rode more than five pounds over announcedthat night in the Canadian Trotting Classic, worth weights. NYRA issued a statement that “at this$1 million in Canadian dollars. He drove, presumably,under appeal. We say “presumably” because on the allegations contained in the indictment con-time, it is NYRA’s intention to reserve judgmentwhen we called the Pennsylvania Harness Racing cerning the named jockeys until more facts andCommission this morning trying to find out what information become known through the Racing andthe story was, we were given gobbledygook and Wagering Board’s investigation. Meanwhile,the runaround, both inappropriate for a racing commissionanywhere, and particularly for a state cluding the right to deny access to the NYRA race-NYRA reserves all of its rights in this matter, in-about to become a major power when slots kick in. tracks on anyone whose actions or reputations aredeemed to be detrimental to the sport of thoroughbredracing.” NYRA already fired its clerk ofscales, Mario Sclafani, and his assistant, Hall ofFame jockey Braulio Baeza.Anton Leppler, the executive director of the commission,was “too busy with meetings” to talk withus. The commission’s director of enforcement, WaltRemmert, took our call and said the commissionwas in the process of “sorting things out” and hadno comment, that we should call back later in theday. Meanwhile, the USTA Web site carried thesuspension, and chat lines all over North Americawere buzzing with the story. This involved thesport’s leading driver, not some minor light. Asthis is written, Sears has driven the winners of$11,508,612, this year, and the racing commissionthat issued a suspension notice on him five daysearlier was still sorting things out and has no commenton the situation. We hope they get itfigured out before the Grand Circuit meetingstarts tomorrow at the Red Mile in Lexington.CANDOR IN DELAWAREThe Delaware Harness Racing Commission alsowas in the news, in a lengthy interview of chairwomanBeth Steele by the Wilmington News-Journal’s veteran racing writer Jack Ireland. Askedabout reducing the use of illegal drugs, Ms. Steele -- who has been a racing commissioner for 12 years-- said, “All we get to do is put our finger in thedike. There is no quick fix, but I think racing iscleaner and safer in Delaware right now. The horsementell us they want things cleaned up, but theydon’t want us coming on the farm to investigate.We can’t do anything to stop the drug problemuntil we can get on the farms and the trainingcenters.” She is 100% correct.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorCONVENIENCE PENALTIESThe Pennsylvania Harness Racing Commission,which yesterday was “sorting things out” in thematter of its suspension of the nation’s leadingdriver Brian Sears five days earlier for a drug problem,decided at the end of the day that althoughSears will be suspended for six months, his suspensionwon’t start until Oct. 3. This convenientlyallows him to drive in eight Grand Circuit events,ranging in purse value from $200,000 to $400,000including the Kentucky Futurity, at the Red Milein Lexington, KY, if he chooses. In that historicrace, the two leading 3-year-old trotters of 2005,Hambletonian winner Vivid Photo and CanadianTrotting Classic winner Classic Photo, meet again.Concerning Sears, there was no public word as towhether the Oct. 3 date was the result of a pleabargain, a stay, an appeal or whatever. It seemsstrange that if an offense warrants six months suspension,the offender is given the grace of makingsubstantial amounts of money plying his trade beforehe pays the price for his misdeeds.GURFEIN, THOMSON IN HALLTrainer Ron Gurfein and executive Tom Thomsonhave been elected to harness racing’s Hall ofFame, the United States Harness Writers Associationannounced yesterday. Gurfein, who hastrained some of the sport’s finest horses, is knownin particular as a master developer of top trotters.His pupils have included Continental Victory, VictoryDream and Self Possessed, all winners of theHambletonian, and the world record holding trottingmare Beat the Wheel. Thomson, president ofthe Grand Circuit for 14 years, is the impresariobehind the Little Brown Jug, the sport’s classicevent for 3-year-old pacers, a race created by hisfather Hank Thomson and Hank’s associate JoeNeville. Elected to the Hall of Fame’s Com- municatorsCorner are photographer EdKeys, writer Bill Heller, newspapermanJack Ginnetti and innovator Virginia O’Brien.September 27, 2005BALA DENIED NEW TRIALA federal judge has denied granting a new trial toconvicted gaming operator Susan Bala. Theformer operator of Racing Services in Fargo,North Dakota, had claimed “newly discovered evidence”in requesting a new trial last month, andhad submitted 150 documents to U.S. DistrictJudge Ralph Erickson. He brushed them aside,saying they did not constitute new evidence, andlet stand the conviction on 12 felony charges returnedby a jury last February. Ms. Bala, still verymuch a beauty at 51, is scheduled to begin a 27-month prison term Friday.NO HELP FOR SALLY, EITHERAnother federal judge, this one sitting in Lexington,KY, has ruled for the Jockey Club and KentuckyHorse Racing Authority, and against thoroughbredbreeder Garrett Redmond of Paris, KY,in the case of naming a thoroughbred filly SallyHemings. Hemings is known in history as theslave lover of Thomas Jefferson, and the filly inquestion is out of Jefferson’s Secret, by ColonialAffair. Somehow Alan Marzelli, president of theJockey Club, thinks naming the filly would contravene“the right of a private organization tomake and enforce rules for the integrity of racing.”He says solemnly that “the responsibilityfalls upon us to enforce those rules,” and theJockey Club claims Hemings was a famous ornotorious person, and such names require specialapproval. The Jockey Club also invokes thematter of what it considers poor taste, or namesthat may be offensive to religious, political orother groups. We could fill the rest of this columnand an entire special edition with names theJockey Club has approved that are in poor taste,including some with strong sexual innuendo approvedfor a major owner in recent years, but thatalso might be in poor taste, and we do not wantto incur the wrath of those who enforce theintegrity of racing. Redmond says he mayappeal.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorSEARS GETS EXTENDED STAYBrian Sears, the nation’s leading harness driverin money winnings with more than $11 millionearned by his mounts this year, has denied allcharges of drug use and has received an extended,indefinite stay of his six-month suspension fromthe Pennsylvania Harness Racing Commissionpending confirmatory tests, according to his attorney,Howard Taylor. Sears now is in Lexington,KY, and will drive in the rich Grand Circuit stakesthat will feature the Red Mile racing program nowthrough Saturday, culminating with the $400,000Kentucky Futurity Saturday afternoon.POMPANO PLANS DANCER NITEPompano Park is hosting a Stanley Dancer TributeNight on Saturday, October 15 to honor thememory of the great Standardbred trainer/driver.Dancer, who passed away at age 78 on Thursday,September 8, was a fixture at Pompano Park formore than 30 years. The tribute evening will featurea special memorial service before the firstrace followed by live interviews with family membersand friends during the racing program, a specialphoto page and video clips of races and specialevents during Dancer’s illustrious career,many of which have never been seen before bythe general public.LEGISLATORS DEFY VOTERSUnder our system of government, legislators aresupposed to represent their constituents, not defyor deny their wishes. In Florida, a move is afoot inthe legislature to attempt to repeal the constitutionalamendment passed by voters last year whichpermits slots for four pari-mutuel operations inBroward county. Steve Geller says the Re- publicanleadership of the legislature “is treatingthe constitution and the will of the votersas advisory opinions.”September 28, 2005The Sun-Sentinel.com reported on the situationtoday, saying, “With hopes dimming for a speciallegislative session on slots, there’s a renewed attemptto seek repeal of the constitutional amendmentthat allowed expanded gambling in Florida.”The story quoted Russell Schweiss, a spokesmanfor Gov. Jeb Bush, as saying, “If the legislatorscan’t come to agreement, there is no sense callingthem up here in special session.” The tracks’ lobbyist,Ron Book, said he was not optimistic thatlegislators could reach agreement in time for aspecial session, but hoped they would in the regular2006 session that starts in four months. DanAdkins, vice president of Hollywood Greyhoundand spokesman for the tracks, was even more optimistic.“The voters addressed the issue and itpassed by a pretty good margin. We’ve been indiscussion with the Legislature. I’m more thanhopeful. I’m confident they intend to implementthe will of the people.” A major opponent of slots,state senator Randy Johnson, a leader in the fightfor repeal, says, “People do change their mindswith more information.” Perhaps legislators whooppose slots should too.BAD NEWS IN MASS, TOOAlthough Suffolk Downs gave its employees todayoff to rally at the Massachusetts legislature,where a joint House and Senate committee is debatingthe future of simulcasting in the state, therewill be no discussion of slots at Bay State tracks.The co-chairman of the joint committee, Rep.Vincent Pedone, ruled out any action on that issue.“The committee is not going to hear anythinghaving to do with slot machines,” he said.“People who come up to testify, they are going tobe talking to a committee that cannot dealwith the slot issue.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor September 29, 2005ORC SUSPENDS THIRD VET Tad Decker, chairman of the State Gaming ControlBoard, described the state police lawsuit asA third veterinarian has been barred from treatingracehorses in Ontario. Dr. John Flanigan joins “a power play” with no legal grounds, saying, “ThisDr. Blaine Kennedy and Dr. Martin Ian Levman is more about money and power and control thanon the suspension list of the Ontario Racing Commission.The ORC issued a ruling that “any par-Chairman? Surely you jest.it is about the merits of the case.” In politics, Mr.ticipant entering or attempting to enter a horsefor whom Dr. Flanigan provided such services on A LOCAL BAN IN MARYLANDor after Sept. 30, 2005 may be found to be in violationof the Rules of Standardbred or Thorough-County commissioners there voted 4-0 to amendIn Frederick county, Maryland, a first for the state.bred racing, whichever applies.” The three veterinarianshave been linked to the purchase of il-did not get a favorable vote on the issue of slotsthe county zoning to bar video slot machines, butlegal substances supplied by the late Fred Rogers, within the city of Frederick. As a result, the countylong the subject of an investigation by StandardbredInvestigative Services. Flanigan, it turns out, Rickman from building a casino on land he ownsban would not prohibit HTA director Williampermitted Rogers to use his name and registrationnumber with the College of Veterinarians in within the city limits of Frederick. First, however,near the Frederick Municipal Airport, which isOntario for the purpose of obtaining pharmaceuticalsand veterinary supplies. He admitted he We hope Frederick is still there when they getthe General Assembly will have to approve slots.treated horses with products purchased from around to it.Rogers. In another ORC development, thecommission’s six month suspension of ownertrainer-driverJean Chretien was upheld for fail-A state appeals court in Florida yesterday ruledAPPEALS COURT OK SLOTSing to report the deaths of the horses Armbro that there is no reason four pari-mutuel operationsMiracle and Don’t Ask Chris, both trained by in Broward county cannot operate slots. This isChretien. He also was fined C$5,000, with half the second court to rule for the tracks, but theystayed for one year and vacated at that time unlesshe violated rules on whipping and keeping fore moviog ahead building racinos.still say they would like legislative approval be-both feet in the stirrups.WHEN THE TROOPS REBELIt may not be a first, but it’s unique, when statepolice sue their state over who gets to conductbackground checks. That’s the situation in Pennsylvania,where the state police union has suedbecause the Gaming Control Board is negotiatingno-bid contracts with three private firms to checkas many as 30,000 people who could be subject toinvestigation in connection with slots jobs. GovernorEd Rendell’s office does not think itwill result in further delay, but it seems itmight slow down policing other matterswhile troopers pour over 30,000 applications.UP AND DOWN IN BEANTOWNRace track employees and horsemen from HTAmember Plainridge Racecourse and SuffolkDowns, some 500 strong, paraded outside the StateHouse in Boston yesterday, carrying placards andwearing T-shirts emblazoned with “Save OurJobs.” The demonstration was intended to influencelegislators considering slots at tracks forMassachusetts, and one legislative supporter ofthe idea, state senator Michael Morrissey, saidhe thought there probably was a Senate majorityin favor of slots, but not overwhelmingsupport.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMORE ONTARIO SUSPENSIONSThe fallout from the investigation of illegal drugsales by the late Fred Rogers continues in Ontariowith the suspension for five years of the leadingtrainer at Rideau Carleton Raceway, SherryKorniski. Her husband, Robert McNamara, alsohas been suspended by the Ontario Racing Commission.The commission has made no announcementof details of the case, but before his lawyerclamped a “no comment” gag on McNamara, hetold Trot Insider on Standardbred Canada’s Website that the suspension was linked to dealings withRogers. McNamara said he and his wife had“bought products off a man who was licensed tosell them,” and claimed they bought only productsthat were advertised for sale to everyone.McNamara says he intends to fight the suspensionsin court.HAMBO SOCIETY HIT BY SUITDaniel Waxman, son of prominent owner BobWaxman and owner of the outstanding pacing mareLoyal Opposition, is suing the Hambletonian Societyfor withholding the purse money from theBreeders Crown, won at Mohawk Raceway byLoyal Opposition. The ownership switch from fatherto son came while Bob Waxman and the StandardbredHorse Sales Company were battling overalleged nonpayment by Waxman for horses purchasedat the company’s Harrisburg sale. TomCharters, president of the Hambletonian Society,said the purse money has been placed in an escrowaccount at the request of the Ontario RacingCommission and will be paid after the commissionconcludes its investigation of the ownership changeon Loyal Opposition. The mare is scheduled tostart in the Milton stake at Mohawk tomorrownight.In other Ontario news, Woodbine Entertainmenthas requested 179 racing datesat Woodbine and 81 at Mohawk for 2006.September 30, 2005MAJOR LEAVITT DISPERSALAlan Leavitt, who with his wife Meg Jewett Nicholsoperates one of harness racing’s major breedingfarms at Walnut Hall Ltd. near Lexington, announcedyesterday that they will be dispersingtheir broodmare band and weanling crop at Harrisburgin November and operating only as a studoperation. Walnut Hall manages stallions standingin Kentucky, New York, Pennsylvania andOntario. Leavitt, who broke with other breedersthis fall by selling the 90 Walnut Hall Ltd. yearlingsat Tattersalls, while all other consignorsmoved to the Fasig-Tipton arena across town,averaged $32,992 Wednesday night, up almost18% over a year go, with 17 yearlings failing tobring reserve prices. The sale topper was AllstarHall, a Like a Prayer half-brother to the outstandingConway Hall, Angus Hall and Andover Hall,which was purchased for $270,000 by a partnershipled by John Erik Magnusson of Sweden, whooperates a farm near Paris, KY.CONGRESS CHECKS ON JOCKSThe Congressional subcommittee chaired by Rep.Ed Whitfield of Kentucky will hold a hearing Oct.18 that will include investigation into the Jockey’sGuild, according to bloodhorse.com. The magazinesays the Guild inquiry is “part of an ongoinginvestigation by the Committee on Energy andCommerce Subcommittee on Oversight” and thatthe hearing will include management practices andfinances of the Guild. The committee is awaitinginformation on those items due by Oct. 3 from theJockey’s Guild president Wayne Gertmenian.HTA ART SELLS TOMORROWHarness Tracks of America’s 28th annual auctionof equine art gets underway tomorrow morning at8:30 at Tattersalls in Lexington. More than 200works, featuring 19th century European bronzesand 40 Currier & Ives prints, along with contemporaryart, is being offered.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorART AUCTION GROSS $319,525HTA’s 28th College Scholarship Art Auctiongrossed $319,525 for 210 paintings, prints, bronzesand woodcarvings. The $1,521.55 average pricewas the highest in the history of the event. Fullresults will be published later this week.MLANDS ASKS FOR CHOOSE 6The New Jersey Sports and Exposition Authorityhas asked the New Jersey Racing Commissionfor permission to introduce Choose Six andGroup Bet wagering at the Meadowlands, andat its next meeting at Monmouth Park. ChooseSix is the new wager introduced by ScientificGames Racing and Cantor Index, in which thebettor chooses the winner of any six races onthe card. It differs from Pick Six wagering inthat the bettor, not the track, chooses the sixraces in their Choose Six, and has the option ofbuying back into the pool if they are eliminated,as long as there are at least six races remainingon the card. The bet was introduced at DelawarePark in July. The Group Bet offers fans aone-in-three chance of winning each race byplacing horses into three different categories,all within the win pool. The morning line favoriteremains a separate win bet, while the remainderof the field is placed into either Group A orGroup B. Group A includes “contenders” whileGroup B consists of “longshots,” or every otherhorse in the race. The bettor does not have tobe concerned which member of his or her Groupwins, as the payout will remain the same. TheGroup Bet will debut in April of 2006, but theChoose Six will be introduced just as soon as itreceives commission approval. Joe Asher, managingdirector of Cantor Index LLC, and LorneWeil, chairman and CEO of Scientific Games,feel the availability of the new bet types is importantto the growth of racing, andlauded the Sports Authority for its “visionaryspirit.”October 4, 2005A WORLD RECORD FOR HTA?The HTA art auction ended Saturday afternoon,at 2:30, and HTA general counsel Paul Estok andresearch analyst Brody Johnson helped sort thingsout for the remainder of the day and evening.Then, at 5 a.m. Sunday morning, they hopped inEstok’s truck and drove nonstop to San Diego,California, for the TRA-HTA-AQHR-AGTOA InternationalSimulcast Conference. By noon theyhad passed St. Louis, by late afternoon they sailedpast Tulsa, by early Monday morning they werein Arizona, and they arrived at the simulcast conferencearound 1 p.m. Monday, in time for the afternoonopening session. There is somethingcalled “above and beyond the call of duty,” andthis qualifies. It is also, until someone proves uswrong, a world record for a nonstop Kentucky-California crossing. Opening session activities atthe conference, with more than 300 attendees, includedgaming and racing authority GeneChristiansen discussing future trends in racing andTim Sullivan of the security firm of Safir-Rosettidiscussing financial integrity and anti-money launderingpolicies. Appropriately, in view of theMeadowlands’ request for Choose Six wagering,Christiansen stressed the need for racing to embracechange, technological and philosophical, toremain viable. The conference continues todayand tomorrow.SLACK, RUBINETTI, DIEHarness racing has lost two prominent figures. BillSlack, the personable and popular former simulcastcoordinator and PR spokesman for Hippodromede Montreal, and a baseball scout for many yearsfor a number of major league teams, has died ofcancer.Owner Frank Rubinetti, who campaigned more than60 horses over 30 years of racing, including the1997 3-year-old trotting filly champion NoNonsense Woman, died at 76.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondOctober 5, 2005Stanley F. Bergstein, EditorNYRA GOING BROKE: HAYWARDThe president of the New York Racing Association,Charles Hayward, told a state oversightpanel yesterday that NYRA will be out of moneyby the third week of November if it cannot selloff some 80 parcels of land near its Aqueductoperation. The land is in dispute, with the stateof New York claiming it is state property, andNYRA claiming it owns the land because it holdsthe deeds and has paid property taxes on theproperties for years. NYRA says it needs between$15 million and $20 million from a sale ofthe land to avoid bankruptcy, with Hayward saying“the franchise is in jeopardy.” Things are sobad that NYRA is considering cutting health carebenefits for employees and retirees and sellingpaintings that have been given to it over the years.Carole Stone, a member of the state oversightpanel recently named by governor George Pataki,said she believes NYRA must obtain permissionfrom the oversight panel, the New York Racingand Wagering board, and the legislature beforeit can sell any of the disputed land. Haywardwants a rebate program, saying, “Money is notleaking out of New York. Money is pouring outof New York.” He said purses may have to bereduced and race dates may have to be curtailedto prevent NYRA from sinking, and also suggestedpossible repeal of NYRA policy to allowemployees to retire at 50 fully vested and with100% of health care costs covered.WILLIAM RICKMAN SR. DIESWilliam Rickman Sr., who rose from a machinistin a two-car garage to a fortune as a developerand major figure in American racing, died last Fridayat 84. An owner and breeder, his racing holdingsincluded Delaware Park and HTA memberOcean Downs. HTA extends its deepest sym- p a -thy to his son, HTA director WilliamRickman Jr., and the entire Rickman family.O CANADA!Speakers at yesterday’s second session of theTRA-HTA-AQHR-AGTOA International SimulcastConference in San Diego verified what bothCanadian and American tracks predicted wouldhappen with the legalization of common pool wageringbetween the U.S. and Canada. ArlingtonPark’s director of mutuels, Jack Lisowski, reportedhandle from Canada increased 23%, andnoted that Canadians were betting more in trifectaand superfecta pools than American bettors. SeanPinsonneault, vice president of wagering operationsat Woodbine Entertainment Group, saidArlington’s increase in handle from Canada sincemerged pools began translated into a $1.3 milliongain. And Susie Sourwine, vice president of marketingat Emerald Downs in Washington stateshowed a 57% increase since the introduction ofcommon pool betting. J. Curtis Linnell, wageringanalyst for the TRPB, suggested that propositionbets and fixed odds betting, available in Englandand Australia, had proved attractive to bettors withaccess to wagering in those countries.GUILD STANCE “TROUBLING”Kentucky congressman Ed Whitfield, chairman ofthe House subcommittee investigating the Jockeys’Guild, says he is doubtful that the Guild andMatrix Capital Associates, associated with itthrough Guild president L. Wayne Gertmenian,have produced all records subpoenaed by his committee.Whitfield said Gertmenian’s “continuedlack of cooperation is troubling.” A hearing onGuild management and finances is set for October18 in Washington.YOU CAN’T RIDE THEM, MALThe guy with the big smile given half a page inThoroughbred Times had to be Mal Burroughs,saying he was going to give the runners a try as anowner. You can’t win the Kentucky Derby ridingthem, Mal.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorSOMETHING NEW IN INDIANAAnswering the call that something new and differentis needed in racing, HTA member IndianaDowns has announced it will hold a one mile$20,000 Indiana Sires stakes for trotters on theturf Oct. 29. Racing trotters on grass is not newin Europe -- turf races are held in Normandy --but it is rare here. Oct. 29 is Breeders’ Cupday, and Indiana Downs will race Saturday afternoonrather than night that day, with the turfrace scheduled to follow immediately after thelast Cup event. Racing director and racing secretaryJim Ewart thinks the novelty is well worththe try.RACING TO THE RESCUERosecroft Raceway is the latest HTA track tojoin the NTRA’s Racing to the Rescue ReliefFund for victims of Hurricane Katrina. Theevent, to be held this Saturday, coincides withRosecroft’s Showcase of Champions night, andall grandstand admissions will be donated to thefund. Hoosier Park, Northfield Park, andPocono Downs/Mohegan Sun also are participatingin the charity event. Some tracks aretaking voluntary contributions from patrons,some are using automatic check-off by owners,trainers and drivers, others are raffling off prizeswith ticket receipts earmarked for the fund, afew are matching employee contributions, andstill others are using autograph sessions withleading drivers and jocks. Dunking booths forthe latter also are being tried.SUSAN IN THE SLAMMERSusan Bala, president and founder of Racing Servicesin Fargo, ND, has reported to a minimumsecurity federal prison in Pekin, IL, to begin servingher 27-month term for taking some $99million in unlicensed betting between Oct.2002 and April 2003. She is still appealingto a higher court.October 6, 2005IT’S ALL IN THE GENESIf you ever have wondered where entrepreneurShawn Scott got his talent for wheeling and dealingand persistence, the answer is clear. He gotit from his mother. Victoria Scott, undaunted bytwo rejections earlier this year, is trying for athird time to place an initiative on the 2006 ballotto legalize video gaming halls in Alaska. Ms.Scott’s previous applications were denied becausethey would have created a video gamblingmonopoly in Anchorage for one person -- VictoriaScott -- and assistant attorney general SarahFelix found that a bit inappropriate. The earlierScott proposals would have established two“gaming districts” which could not be within 75miles of one another, and only in cities with populationsover 30,000. That meant Anchorage, andwhen the Associated Press looked into the proposal,it discovered that a parcel of land detailedin the proposed law designated where that districtwould be. It turned out that Victoria Scotthad an option on the land. The latest Scott proposaleliminates the 75-mile buffer zone betweendistricts, but still designates Scott’s parcel asAnchorage’s first gaming district. Voters wouldhave to approve any additional gaming halls inAnchorage. Juneau and Fairbanks also couldhave halls, with voter approval. An effort is beingmade to collect the 31,451 signatures neededfor the initiative before the January legislativesession begins, but a Scott co-sponsor says thetime frame is tight.SENATE VOTES IN BAY STATEThe Massachusetts Senate was to vote on slots attracks today, and is expected to pass the measure,since the Senate president supports the bill andthe votes appear there. That would be only onethirdof the way home, because the House is notlikely to follow suit, and the governor, Mitt Romney,has promised to veto the bill if it shouldpass.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorSCHOLARSHIP ART VICTIMIZEDIn the first such incident in the 28-year history ofthe HTA College Scholarship art auction, a buyer,either unable or unwilling to pay for his purchases,has defaulted, leaving HTA with 28 of its bestworks of art to be resold or carried over to nextyear’s auction. The unsold works are being listedas “Available” on the result sheet of the auction,being released today on the HTA Web site and tomedia.BRUNO DROPS THE HAMMERIn a move ominous for the New York Racing Association,one of its staunchest supporters -- andNew York state’s most powerful legislator, Senatemajority leader Joe Bruno -- has announcedhe is urging governor George Pataki and Housespeaker Sheldon Silver to create legislation toaccelerate bidding for the racing franchise currentlyheld by the New York Racing Association.Bruno also suggested, however, that the stateconsider a bailout for NYRA to help it out of itscurrent dire financial crisis and allow it to continueoperations. Bruno said, “We’re going todo everything we can through the oversight committee,”recently appointed by Pataki, “to shoreup NYRA short term.” But he added that sellingassets, which NYRA has proposed doing to saveitself from bankruptcy, “is no way to run anything.”Bruno wants New York to award a newthoroughbred racing franchise within the next sixmonths, and if his view prevails, as it usually doesin New York state, NYRA could be out of the racingbusiness well before its franchise expires Dec.31, 2007. Bruno says he expects the legislatureto return for a special session before January andhe hopes it will consider his racing proposal atthat time. NYRA senior VP Bill Nader called thattime frame unrealistic, saying, “To implementthese changes that fast would be asunexpected as Upset beating Man O’Warat Saratoga.October 7, 2005When a reporter asked Bruno if ending NYRA’sfranchise early could benefit his son Kenneth, whois paid $15,000 a month by Magna Entertainmentto represent it in Albany in its quest for the NYRAfranchise, Bruno bristled, calling the question“dumb.” Magna also retained Patricia Lynch, oncethe top aide to House speaker Sheldon Silver, andformer Senator Alfonse D’Amato in pursuit of thatgoal.MORE DELAYS IN MARYLANDThe Maryland Racing Commission yesterday rejectedthe Maryland Jockey Club’s request to racefour days a week instead of five from January 1through June 10. Magna Entertainment COODon Amos and MJC president Joe DeFrancis toldthe commission such a move would provide largerfields and boost daily purses from $194,000 thisyear to $304,000 next year, but the commissionruled against that proposal after an assistant attorneygeneral said the MJC was contractuallybound to race five days a week for the first fivemonths of the year. Magna sought to have its 2006racing dates cut from 200 to 112, then compromisedat 129, but the commission delayed a vote on thatproposal and ordered management to sit down withhorsemen and attempt to resolve their differencesbefore the next commission meeting in November.MASS SENATE OKS SLOTSThe Massachusetts Senate yesterday voted, 26-9,to allow 2,000 slots at each of the state’s four racetracks,including HTA member Plainridge Racecourse,but the battle is far from won. The Househas shown no inclination to take up the bill, and governorMitt Romney has threatened a veto. TheSenate’s six Republicans rebelled against Romneyin yesterday’s vote, and with two of the body’smembers recusing themselves the 26 votes forslots would be the magic number for a veto ifthe bill gets that far.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorYOU WON’T BELIEVE THISAfter stumbling and fumbling for days with theoriginal announcement of a six-month suspensionof Brian Sears, the nation’s leading harness racingdriver, then extending the penalty’s effectivedate to Oct. 3, allowing him to drive in and winmajor races including the Kentucky Futurity atthe Red Mile in Lexington, the Pennsylvania HarnessRacing Commission, without comment, todayannounced the penalty had been rescinded.There was no explanation, no clarification, norationale, nothing, except the bare bones announcement,which reads: “Ruling No. 050907Cdated September 29th, 2005, issued againstdriver Brian Sears, is hereby rescinded.” That’sit.The original suspension ruling, dated Sept. 26,stated that Sears “must complete a PennsylvaniaDepartment of Health approved drug treatmentprogram” and upon successful completionof the Substance Abuse Rehabilitation Programhe might be issued a conditional license for fiveyears, to be reviewed annually. As a condition ofcontinued license, the ruling stated that Sears willbe additionally required to sign a waiver and releaseconsent authorizing the Pennsylvania HarnessRacing Commission to obtain personal informationin order to ensure compliance with theruling and conditional license. The original suspensionalso denied him privilege of the groundsof Pocono Downs and The Meadows, the two harnesstracks in Pennsylvania. Presumbly, sincethe new notice calls for rescinding and not amendingof the original suspension, those terms presumablyno longer apply. It is difficult to reconcile-- and to explain to the racing public -- howan alleged offense serious enough to draw a sixmonthsuspension suddenly is rescinded withoutcomment. One conclusion is that the PennsylvaniaHarness Racing Commissiondesperately needs a public relations directoror counselor.October 10, 2005PELLING, MORGAN RELOCATEU.S. harness racing may have seen the last oftrainer Brett Pelling, or will soon, and Chicagoharness racing may have seen the last of its stormystar, Tony Morgan. When asked in Lexingtonabout reports of his move to Australia at the endof the racing season, Pelling replied brusequely,“Well, you’ve heard it officially now, from thesource.” Pelling told Canada’s The Harness Edgethat he was disappointed with the lack of leadershipin U.S. racing, and that he disagreed withsome racing jurisdiction rules as well as legal actiontaken against him by a major client. He alsotold the magazine that he wanted to educate histwo children in Australia, and that his extensivestable at White Birch Farm in New Jersey will betaken over by his assistant, Richard (Nifty)Norman.In Chicago, where he has been a dominant drivingfigure for years and the forceful de factoleader of the Illinois Harness Horsemen’s Association,driver Tony Morgan said he is leaving torelocate his base of operation at Dover Downsin Delaware. Morgan told the Northwest IndianaTimes that “after I saw the dates for 2006,there was no way I was going to stay in Chicagoand race.” Morgan has fought with track managementover the years, and says he has “servedmy time....it’s time to let someone else battle.”He also is troubled by the creation of a newhorsemen’s group, the Illinois Standardbred Association,which represents owners and breedersprimarily, rather than trainers and drivers, andwhich Morgan says “has compromised our positionterribly.” He predicted that the first of theyear “is going to be a disaster here...with thehorsemen divided into two groups....we just don’thave the leverage we used to have with the racetracks,the Illinois Racing Board, or the legislature.He said cutting the amount of days racedwould have been the smart thing to do, forpurses and racing.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorRACING LOSES THREE STARSThe death of three stellar figures in the racingworld has left the sport poorer.Joe Gerrity, chairman of the board of SaratogaGaming and Racing and an owner of both harnesshorses and thoroughbreds for years, hasdied at 88. His greatest racing thrill, he oncesaid, was winning the Breeders Crown 2-yearoldpacing classic in 1986 with Sunset Warrior,a horse he kept and visited daily at his farm inLoudonville, NY.Tony Sisti, a sports reporter and harness racingwriter for 40 years for Newsday, died in SouthNassau Communities Hospital in New York at80. Sisti covered harness racing from its halcyondays at Roosevelt and Yonkers Racewaysuntil the late 1980s, and was elected to the Writers’Corner of the Harness Racing Hall of Famein 1988.Richard Stone Reeves, one of the best knownequine painters of the present era, died Oct. 7in Eastern Long Island Hospital in Greenport,NY, at the age of 85. Reeves began paintingracehorses after leaving the Navy followingWorld War II, and became an immediate success,receiving innumerable commissions topaint the great horses of both thoroughbred andharness racing. Most of his paintings are ownedby private collectors, with the Aga Khan owningthe largest, and a dozen hanging in the NationalMuseum of Racing and Hall of Fame.GOLDSTEIN MOVES UP AT CAPRIRobert S. Goldstein, son of chairman and chiefexecutive Bernard Goldstein of Isle of Capri Casinos,has been named to the new role of executivevice chairman of the company. He alsois chairman and CEO of Alter Trading, ascrap metal recycler.October 11, 2005SPECIAL SESSION ON NYRACapital News9.com in New York reports that aspecial session of the Senate will be called in Novemberor December to discuss an early end ofthe franchise of the New York Racing Associationto operate New York’s Aqueduct, Belmont Parkand Saratoga Racecourse, and energy issues inthe state.YOU SHOULD LIVE SO LONGIt is becoming apparent that horses that currentlyare yearlings, and human beings of any advancedage, may not live to see slots in Pennsylvania.When the pols who inhabit the state’s GamingControl Board get done their internal bickeringand backbiting, the current crop of yearlings maybe retired from racing, and the potential bettorsgone to their eternal reward. After hemming andhawing over almost every administrative issuebefore it, the board now is deadlocked over howto license the companies that will provide theslots. The chairman of the board, Thomas A.(Tad) Decker, solemnly announced, “This is amajor problem. I don’t want to kid anybody, becauseI don’t see any end in sight.” The governorof Pennsylvania, Ed Rendell, is counting on$1 billion in tax revenue from 14 racinos and casinosthat he wants to use to reduce propertytaxes by some $340 a household. He is going tohave to wait. The law passed in the state requiresoperators to get their games from in-state suppliers,but the board can’t issue casino licensesuntil 90 days after it licenses the manufacturersand suppliers. It hasn’t even begun taking applications,but already is fighting tooth and nail overhow to do it, and to whom. Board chairmanDecker says it will take his investigators monthsto complete the necessary background checks onpotential suppliers after applications are accepted,so April now is the earliest any licensesmight be issued. Oh well, there always isDelaware and New Jersey.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorA LOT OF NEWS...MOSTLY BADThe nation knows by now that very strange thingsgo on politically in Florida, and it received moreevidence yesterday. The governor, Jeb Bush,says it is wrong not to make a good-faith effortto have the slots bill for Broward county implemented,since the voters of Broward voted forit, but that once it is implemented he will moveto have it repealed. Bush was joined by Senatepresident Tom Lee and House Speaker AllanBense, who told activists for the Christian Coalitionof South Florida they support asking votersin November, 2006, to repeal the citizen initiativethat was voted in by constitutional amendmentlast November and affirmed by Browardcounty voters last March. This affront to publicwill is one more sign of political arrogance inFlorida, and effectively postpones any chanceof slots at Broward’s four pari-mutuel operationsunless they choose to follow a state appeals courtdecision that ruled they could install slots anytime they choose. To go to that expense now, inthe face of Bush’s actions and his legislative support,would seem unlikely as well as unfortunate.MORE ON JOE GERRITYYesterday’s bare-bones obituary notice on JoeGerrity, chairman of the board of Saratoga Gamingand Raceway, needs amplification. Gerritydied Monday at 89, a longtime owner and breederof both trotters and pacers and runners. AHarvard graduate who was involved in horseseven in his college days as manager of theHarvard polo team, he later earned a license asa harness driver and drove occasionally atSaratoga. He owned two Little Farms, one atKinderhook, NY, and another at his home inLoudonville, where he personally cared for his21-year-old pride and joy, the pacer Sunset Warrior,which gave him his greatest racingthrill winning the $819,600 BreedersCrown as a 2-year-old at Garden StatePark in 1986.October 12, 2005Still actively involved at the time of his death,Gerrity had 6 standardbreds at Vernon Downsand 12 thoroughbreds at Belmont Park and FingerLakes, including the stakes winner Dave,which captured the $113,000 West Point handicapat Saratoga Racetrack this year. He wasmajority owner of Saratoga Gaming and Raceway,personally helping finance its opening asthe first racino in New York state when legalchallenges to the law made conventional financingdifficult, and he was that HTA track’s chairmanfor the last 18 years. A philanthropist withbusiness interests including real estate, investmentsand a car dealership, he loved horse racingwith a passion to the day he died. HTA extendsits deepest sympathy to his son Daniel,involved in management of Saratoga, to fiveother sons and daughters, and the entireGerrity family.VERNON DEALS CHALLENGEDCarl Greenberg, a minority shareholder in Mid-State Raceway, has filed objections with the AssistantU.S. Trustee handling the Vernon Downssales transactions, complaining that the majorityshareholder, Shawn Scott, is receiving preferentialtreatment under the purchase plan offered byJeff Gural, and alleging that undesirables are involvedwith the proposal. Greenberg, whose familyhas owned Vernon Downs stock for 40 years,says he also is “uncomfortable” with the secondpurchase plan under consideration, questioning therationale for the proposed $4 a share value offeredfor the minority shareholders’ holdings.MLANDS, BELMONT CANCELHeavy rains in the New York area have forcedcancellation of thoroughbred racing at both theMeadowlands and Belmont Park. The Meadowlandsran only one race Saturday night and threeon Tuesday afternoon before cancellingtoday’s card.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorPLAINRIDGE GOING TO HOUSEHTA member Plainridge Racecourse has cancelledits Tuesday, October 18 card in order to permitmembers of the Massachusetts harness racingcommunity to be heard in the halls of the Bay Statelegislature. That day, a state House committeewill conduct a hearing on a measure that wouldpermit the installation of slot machines at thestate’s four pari-mutuel racetracks. That legislationpassed the state senate last week by a 26-9margin. Next week’s hearing will begin at 9 a.m.at the State House in Boston. Plainridge will providetransportation free to Boston for all interestedparties. The cancelled race card will be made upon Saturday, October 22.BANGOR TO OPEN NOV. 4Penn National Gaming plans to open its BangorRaceway slot machine facility to the public onNovember 4, with an invitation-only party to beheld two days earlier, according to a company official.The casino, called Hollywood Slots, will houseup to 475 slot machines, and will open two years tothe day after voters approved a statewide referendumlegalizing slot machines at Maine’s commercialharness racing facilities. Still, the facilityis only temporary; Penn National plans to replacethe slots parlor, which is located at the site of aformer restaurant, with a permanent casino withup to 1,500 gaming machines.TWELVE IN MESSENGERA total of 12 3-year-old pacing colts are enteredfor the third leg of pacing’s Triple Crown, theMessenger Stakes, to be run on Monday atHarrington Raceway. Two fields of six will contest$72,825 divisions (to be raced as the 5th and6th races on the card), with the top four comingback for a third and final heat for a purse of$281,475 (to be contested as the 10thrace). The first division includes, in postposition order: Dawn of a New Day (DavidOctober 13, 2005Miller); Up Front Jerry (Bradley Hanners); SpeedDemon (Jim Morand); Gryffindor (David Miller);Beretta Hall (Mike Lachance); and Whelan Mike(Kevin Sizer). The second division, in post positionorder, includes: Load the Dice (MikeLachance); Weiss Hanover (George Brennan);Revolutionary Foe (Cat Manzi); Cam’s Fool (BrianSears); Secret Weapon (Bradley Hanners); andRoyal Flush Shark (Eric Ledford).GAMING ATTENDEES WARNEDPublic health officials in a number of states areoffering preventative shots to those who attendedthe Global Gaming Expo in Las Vegas the weekof Sept. 12, after learning that a worker at theSchwan’s Food Co. booth who served free ice creamto attendees had hepatitis-A. Hepatitis-A is a viralinfection of the liver that can cause jaundice,fatigue, abdominal pain, loss of appetite, nausea,vomiting, diarrhea and fever. The virus most oftenis spread through fecal-oral contact, such astouching hand to mouth after using the bathroomor shaking the hands of infected people who didnot wash properly. Those infected usually developsymptoms 15 to 50 days after exposure to the virus.Officials in Nevada said that there is no evidencethe free ice cream was tainted. “It’s importantto make clear that the individual was the exposure,not the product.”ATTENTION HTA DIRECTORSToday, along with the press release soliciting nominationsfor the 2005 Hanover Shoe Farms/HTACaretaker of the Year Award, Jessica Carner,HTA’s editorial coordinator, e-mailed to each memberracing association program ads (1/4-page, 1/2-page, and full-page versions) announcing theaward. HTA asks that whenever and whereverpossible, member associations use these ads intheir programs to promote the caretaker award.The deadline for nominations for the 2005award is December 31, 2005.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorCAL BOARD TAKES OVER TESTSMilkshakes in California may cost a bit more startingnext Wednesday, when the California HorseRacing Board takes over high bicarbonate leveltesting. Licensees with high bicarbonate readingsnow can face fines and suspensions, and pursemoney earned in such instances would automaticallybe forfeited. The board will test all horsesat Santa Anita and Golden Gate Fields and willtest standardbreds at Cal Expo on a random basis.Thoroughbred samples will be collected prerace,standardbred samples post race, and trainerswill have the option of having a duplicatesample collected at the same time the primary iscollected, but tested at a different laboratory thanthe Kenneth Maddy lab at the University of California-Davis,which the CHRB uses. A duplicatesample will cost trainers $165, and must be paid inadvance. If Maddy tests show high levels of carbondioxide, and are not contradicted by duplicatetests done elsewhere, a complaint will be filedagainst the trainer and other licensees implicatedby the evidence. During processing of the case,horses from the trainer’s barn will have to raceout of a track detention facility. Either stewardsor an administrative law judge will hear the case,and potential sanctions include disqualification,fine, or suspension.RAIN, RAIN GO AWAYNew Jersey is underwater, or parts of it, and theMeadowlands has not been spared. Unrelentingrain has forced cancellation of Wednesday’s andThursday’s night thoroughbred cards at the track,and tonight’s racing program has been cancelledas well. The Meadowlands has not raced a completecard since Oct. 7.DON’T FORGET GROOMSDirectors and action officers: Please askyour program directors to use the Caretakerof the Year solicitation ads we haveprovided.October 14, 2005UNHAPPINESS IN IOWAThe Iowa Racing and Gaming Commission hasstepped into the dispute between harness horsemenin the state and HTA member Prairie MeadowsRacetrack and Casino. The track and horsemenhave not been able to agree on a contract,and the commission has refused to renew casinoand racing licenses for 2006 until they do. Thecommission ordered representatives of both sidesto sit down again at the bargaining table, and resolvethe issue, and said they would consider licensesnext month if the issue is settled. Prairiehas settled with thoroughbred and quarter horseinterests, proposing purses totaling $14.3 millionfor thoroughbreds and $2.3 million for quarterhorses, but the Iowa Harness Horsemen’s Assn.is asking for $2.5 million and 17 days of racingnext year. Commission chairwoman DianeHamilton has said of the impasse, “Our interest isto encourage the working together of the threehorse breeds.” Track president and general managerand HTA director Robert Farinella says PrairieMeadows has negotiated in good faith with theharness group and is trying to offer a fair and competitivepurse structure for all three breeds. Thetrack has proposed 45 days of thoroughbred racingfor next year, 45 days of mixed thoroughbredand quarter horse racing, and a 12-day harnessmeeting Sept. 24 thru Oct. 14. The horsemen’sassociation president, Royal Roland, says its goal“is to get some additional funding to sustain theincreased growth and investment in Iowa’s agriculturaleconomy.”BERMAN OUT AT MONTICELLORobert Berman, who built Empire Resorts, theowner of Monticello Raceway, and stepped downas CEO a few months ago, now is leaving the companyaltogether. Although his 49-year-old brotherdied recently, news releases implied Berman’scontroversial and sometimes confrontationalstances also played a role.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor October 17, 2005A VICTORY FOR GOV. CODEY We weren’t aware that they had, but if they did weA two-judge appeals panel in New Jersey has can guess at the answer: lack of transparency.spelled out the pecking order of political chess in Gertmenian has shrouded the doings of the Guildthe state. It ruled that a governor can capture a in secrecy. People have had enough of that thesequeen, not the other way around, and that a judge days. Maybe tomorrow’s hearing will pull asidecannot stop him from doing it. Gov. Richard Codey the curtains a bit. But don’t bet on it.had attempted to remove Linda Kassekert, the One hundred jocks are scheduled to show up forstate’s top casino regulator as chairwoman of the the hearing, packing the House to protest whatCasino Control Commission, from the Casino ReinvestmentDevelopment Authority board. The tee.”they call “the one-sided nature of the subcommit-Authority oversees distribution of millions of dollarsof casino revenue for development projects in A HEARING IN BOSTON, TOONew Jersey, and a state Superior Court judge issueda temporary injunction preventing Codey morrow in Boston to follow up on the Senate’s de-A House committee in Massachusetts meets to-from removing Kassekert. Codey appealed, and cisive approval of slots last week by a 26-9 vote,Judge Francine I. Axelrad, writing the decision for and Plainridge Racecourse is taking it seriously.the two-judge appeals panel, sustained his power. The track has cancelled its Tuesday racing card“The trial judge does not have the jurisdiction to so employees, fans and others can be heard in thereview and enjoin the final decision of the governor,”she wrote. Kassekert had clashed with the a.m. in the State House, and Plainridge is provid-halls of the legislature. The hearing begins at 9governor over the appointing of a former state ing free transportation to Boston for all interestedLabor Commissioner, Thomas Carver, to the positionof executive director of the Casino Rein-That’s interested!! Tomorrow’s cancelled card willparties. Buses will leave the track at 6:30 a.m.vestment Development Authority. Kassekert be made up with a special program this comingturned up a double loser. Carver has been appointedto the position, and she is off the authority early in Massachusetts.Saturday, with a 10 a.m. post time. They get upboard. She still can appeal to the state SupremeCourt.GERTMENIAN IN THE GLAREOut of the shadows and into the light comes L.Wayne Gertmenian, the president of the Jockeys’Guild. He is expected to testify tomorrow beforethe House Energy and Commerce Subcommitteeon Oversight and Investigations, chaired by Kentuckycongressman Ed Whitfield. The Guild, preparingfor a public performance by the controversialGertmenian, took the offensive, issuing a pressrelease asking, among other things, whytracks and their lobbyists pretendGertmenian is the source of the industry’sproblems.MESSENGER AT HARRINGTONHarrington Raceway hosts the 49th edition of theMessenger Stake for the second time tonight, andthe track is pulling out all the stops for the thirdleg of pacing’s Triple Crown for 3-year-olds. Aninvitational dinner for VIP friends of the racewaykicks off the event, with a cocktail party startingat 5 p.m. and a buffet dinner served from 6 to 8 ina weather-conditioned hospitality tent at the westend of the grandstand. The track is providing busshuttle service from the State Fair carnival parkinglot to the hospitality tent. Two well-matchedfields of six race in two $72,825 eliminations asthe 5th and 6th races, and the top eight returnfor the $218,745 final in the 10th race.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorSTRONG FEELINGS IN FLORIDAIf sentiments expressed in the Sun-Sentinel insouth Florida today are any indication, GeorgeBush is not the only family member losing publicsupport. His brother Jeb is catching it too,being called a hypocrite by columnist MichaelMayo. Writing about Bush’s duality -- the governorsaid he would like to see a special sessionof the legislature to implement slots in Browardand then an anti-slots amendment to repealthem, Mayo wrote, “A simple question for thegovernor and State Representative RandyJohnson, a Republican legislator who’s leadingthe crusade against slots: Why not push to banthe state lottery, too? Only a hypocrite couldpick on one without the other.” Broward countyresidents were unhappy, too. The paper quotedone as saying, “Why should we even vote? I’vevoted straight Republican all my whole life, butno more.” Mayo quoted Bruce Rogow, an attorneyrepresenting Broward county tracks, as saying,“If you or I violated a mandate such as this,we’d be in jail. It’s a slap in the face to the democraticprocess. If anything, they ought to repealthe lottery because it’s the worst bet in town.It targets the poorest and most vulnerable, promotesthe notion of striking it rich quick, andit’s the state that advertises and markets it.”Mayo wrote, “Funny, Bush doesn’t seem to haveany problems relentlessly growing the lottery,even though he says he’s opposed to the expansionof gambling in all forms. A hypocrite? Well,maybe just a little. Jeb Bush’s most recent pronouncementon issues involving gambling wasan admission that it was “inappropriate” for fourRepublican legislators to accept a $48,000 tripto Toronto from Magna Entertainment, whichowns Gulfstream Park. The Republican partyof Florida decided to pick up the tab, “in thehopes of sparing the four lawmakers apossible ethics problem” according tothe St. Petersburg Times.October 18, 2005A FAMILIAR NAME IN THE NEWSFrance is cracking down on illegal medication, anda nine-month undercover operation has resultedin the indictment of a leading thoroughbredtrainer, Yann-Marie Porzier, and his right handman, a Paris pharmacist, and Bernard Sainz,dubbed “Le Docteur Mabuse” after a bogus doctorportrayed in the 1932 Fritz Lang movie, TheTestament of Dr. Mabuse. Porzier blazed to prominencelast year with unexpected victories in bothflat and steeplechase racing. His stable at thegreat racing center at Chantilly was raided bypolice. A string of arrests and searches also wasmade in Normandy at the stable of Jean-PhilippeDubois, a trainer-driver well known in harnessracing circles in the United States. The prosecutorin the Normandy town of Alencon said numeroussubstances were seized during the Duboissearches and are being analyzed. The daily LeMonde reported, “The racing world is reeling,”saying horses have died in mysterious circumstances,tests have come back positive, and someperformances have been what the paper called“surprising.” Sainz, “Dr. Mabuse,” is involvedin the current scandal. He reportedly was jailedfor two months some years ago for practicingmedicine illegally, and for handling performanceenhancingsubstances. He was released on probationon condition he not leave France, but wasstopped for speeding in Belgium in 2002, and vialsof phamaceutical products were found in hiscar. He said he was driving to see Belgian cyclistFrank Vandenbroucke, and police then foundEPO, morphine and Clenbuterol atVandenbroucke’s home, and Sainz was jailed fora month for breaching probation.HAPPY BIRTHDAY, EDEd Decker, a longtime HTA director from LebanonRaceway in years past, celebrated his 95thbirthday yesterday. HTA sends its warmestgood wishes. Go for 100, Ed.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondOctober 19, 2005Stanley F. Bergstein, Editor“AN ABSOLUTE DISGRACE”That’s pretty strong language for the usuallydecorous members of Congress, but that is howTexas Republican representative Joe Bartoncharacterized the conduct of Wayne Gertmenian,president and CEO of the Jockeys’ Guild, in ahearing in Washington yesterday. Barton wentfarther, questioning Gertmenian’s claims to havebeen a shadowy agent of high intrigue during theNixon and Ford administrations. Barton askedGertmenian if his resume was correct, and afterGertmenian said it was Barton said, “We thinkit’s a complete fabrication. You need to providesome documentation.” Hall of Fame jockey ChrisMcCarron, who was responsible for Gertmenianbeing hired to replace John Giovanni -- fired byfax -- told the House subcommittee checking intoGuild management and finances that he had beenduped by Gertmenian. He called his decision tobring him into the Guild “the worst mistake I evermade,” and apologized to Giovanni and othermembers of the Guild staff who had been terminatedand locked out of their offices. Paralyzedjockey Gary Birzer and his wife told the subcommitteethey were unaware the Guild’s $1 millioncatastrophic injury insurance had been terminated,and talked of the callous treatment theyreceived from Gertmenian and the Guild’s COOAlbert Fiss. The Birzers said repeated phonecalls to the pair were ignored, and that whenGertmenian and Fiss finally visited Birzer in arehabilitation center their conversation was notabout helping Birzer, but on discussing how heshould sue Mountaineer Park, where he was injuredin a spill. Mrs. Birzer said Fiss had toldher the Guild wanted to use her husband as a‘guinea pig’ in the matter, and Fiss admitted, underoath, that he had said that and apologized tothe Birzers. Michigan Democratic Rep. BartStupak said of the investigation, “Thisthing is really a hornet’s nest and it’sstarting to unravel.”THE END OF AQUEDUCT?A story in today’s Thoroughbred Times.comquotes New York Racing Association presidentCharles Howard as saying he favors an end toracing at Aqueduct, and instead using the trackpurely as a gaming facility. “You don’t needtwo tracks,” Hayward said, concerning NYRAracing at Aqueduct and Belmont Park. Haywardraised the question, however, of whetherMGM Mirage would continue with its agreementto loan NYRA $170 to build its racino andthen run it “if there’s no one at the other endto pay back the loan.” He said NYRA thoughtit could pay the $170 million back in five or sixyears once Aqueduct got its 4,500 slots late nextyear.CLASSIC PHOTO FINISHEDThe winner of the $1 million Canadian TrottingClassic, Classic Photo, has been retired after sufferinga paddock injury. Vying with Vivid Photoand Strong Yankee for honors as 3-year-old trottingcolt of the year, Classic Photo was hurt in NewJersey. The colt also won the Goodtimes, American-National,Dancer Memorial, and Review Futurity,and finished second to Vivid Photo in theHambletonian. Owned by H. H. Wright, JorgenJahre and the Classic Photo Stable, Classic Photowill be retired to one of Kentuckian Farms’ stallionfacilities with earnings of $1,447,004.SHAKING THINGS UP IN TEXASThe Texas Racing Commission is likely to introducemilkshake testing at its next meeting in December.The commission yesterday proposed arule, using 38 millimoles of carbon dioxide per literof plasma -- one millimole higher than mostjurisdictions -- that would carry graded penaltiesfor first, second and third offenses, with the thirdcarrying a $5,000 fine and one-year suspension.In all cases, purse money forfeitures wouldbe part of the penalty.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMAGNA, GCGC IN THE NEWSMagna Entertainment and Great Canadian GamingCorporation were in the news yesterday. Firstthey jointly announced closing of Magna’s saleof Flamboro Downs to Great Canadian, withMagna getting $23.6 million in cash and assumptionof existing debt by Great Canadian. Magnaalso announced it had increased its capital budgetfor construction at Gulfstream Park to $171.5million (all numbers in U.S. dollars) much of whichwill go to clubhouse construction costs in the hugerebuilding project. Magna also is borrowing upto $13.5 million for the clubhouse constructionfrom BE&K, parent company of the general contractoron the Gulfstream project, and pledgingland owned by Magna in Ocala as security forthe loan. Magna also announced the retirementof Jim McAlpine, vice chairman of corporate development.McAlpine, former CEO at MagnaEntertainment, had been the company’s longestservingchief executive, serving in that capacityfor four years, as well as being a member of thecompany’s policy making executive committee.Magna said McAlpine will continue to make himselfavailable as a strategic advisor and consultant.On the GCGC front, its completely refurbishedFraser Downs operation was unveiled after$35 million and 22 months of construction.GCGC’s vice president of racing operations,Chuck Keeling, said “not one square inch” of thefacility -- which GCGC bought along withSandown Park on Vancouver Island for $42.5million Canadian last March -- hasn’t beentouched by a hammer or screwdriver, from thegrandstand to the far reaches of the parking lot.Included in the package are more than 400 slots,which will give Fraser a new lease on life. GreatCanadian president and COO Anthony Martin,enthused over both developments, called the acquisitionof Flamboro “an ideal propertyfor our continued expansion into centraland eastern Canada.”October 20, 2005OH NO! SHAWN SCOTT AGAINThe latest in the seemingly never-ending perambulationsof Shawn Scott takes place in Maine,where Scarborough Downs has sued the Las Vegas-VirginIslands promoter, saying he manipulatedvoters, state laws and horsemen to create a monopolyon slot machines in the state. The suit,according to Scarborough Downs owner SharonTerry, is an attempt to ensure that Scott “doesn’twalk away from this a rich man after doing whathe did.” We’re not sure Ms. Terry can preventthat, or may be a little late in doing so. Ms. Terry’ssuit says Scott, although professing to helpScarborough Downs secure slots, always intendedto block the track from getting them. A Scott attorneysaid the suit had no merit, and that neitherScott nor his Capital Seven company had doneanything wrong. A judge refused on Oct. 3 to freezean upcoming final payment to Scott by Penn NationalGaming, which bought Bangor Racewayfrom Scott for a reported $50 million after Scottgot slots legalized there.KEY VOTE AT NORTHLANDSMembers of the board of directors of HTA memberNorthlands Park are scheduled to make a decisionnext Wednesday on the fate of a $21 millionexpansion project. The decision -- called “historic”by Dr. David Reid, chairman of Horse RacingAlberta, involves expanding Northlands’ currentfive-eighths mile track to seven furlongs. Reidsays the expansion would make Northlands competitivein selling simulcast signals and promotingmajor races. Dr. Reid also said the new $80 millionracing facility near the Calgary airport still isscheduled to open in spring of 2007.ACTION OFFICERS: PLEASE!Four new HTA surveys, on revenues v. expenses,player rewards, handicapping tournaments andcomparative pricing, are in your hands.Please return ASAP.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor“THE POLITICS ARE VOLATILE”No kidding. That was the assessment ofFlorida Senate president Tom Lee when askedabout what his august body planned to do aboutthe will of the voters of Broward county, whovoted twice to have slots at the four pari-mutueloperations in their county. Lee said, “The politicsof this issue are volatile,” not mentioningthe will of the people. Lee, his counterpartHouse speaker Allen Bense and governor JebBush all are in agreement that they have “aconstitutional obligation” to carry out the voters’wishes, and then negate them by havingthe constitutional amendment repealed in Novemberof 2006. The issues will be discussedat a special session of the legislature likely tobe called in December or January.HOW TO CHANGE ATTITUDESGetting legislators to change their minds aboutgambling, particularly in Florida, is not easy, butwe have a suggestion. Try the Judd Gregg approach.Gregg, a U.S. senator from New Hampshire,stopped for gas last week and, lured by the$340 million Powerball jackpot, bought $20 worthof tickets One was one of 47 with five winners,worth $853,492.N’FIELD GETS MORE DATESHTA member Northfield Park, overflowing withhorses, has struck a compromise with the OhioState Racing Commission in its dispute over dates.The track sued the Commission after it wasawarded 17 dates less than it asked for this year.It now is filing a motion to dismiss the lawsuit afterthe commission granted it nine extra dates --Tuesday nights in November and December, normallydark -- to help ease a shortage of racingopportunities. Northfield spokesman DaveBianconi said Northfield had 250 horsesin the box for Monday’s card and couldprogram only 144 of them.October 21, 2005CALLING ALL SHAREHOLDERSOfficials of Mid-State Raceway, owners of VernonDowns, are scouring the woods for shareholders,urging those found to vote before an Oct. 31 deadlineon whether they want Jeff Gural or EricSpector to get their track. Their vote is non-binding,but presumably will be considered by the federalbankruptcy judge who will make the call.Gural, who according to the Syracuse Post-Standardalready has lent some $2 million to Mid-State,is reported ready to lend another $437,000 to keepVernon afloat. The track spends around $200,000a month to pay its ongoing bills.KEEPING TIME IN ONTARIOOntario has become the first Canadian provinceto go along with the U.S. decision to extend daylightsavings time in 2007. The U.S. will go on thatenergy-saving plan on the second Sunday in Marchthat year and stay on it until the first Sunday inNovember, and Ontario said it would agree to coordinatebusiness activity with its largest tradingpartner, according to The Harness Edge. The Canadianharness racing monthly reports that Quebecis likely to follow the switch too.DEFYING WILMAWith hurricane Wilma hesitating in the westernCaribbean about making up her mind, PompanoPark officials have decided to ignore her and holdthe track’s richest night of racing as scheduledSaturday night. Pompano will be open for live racingand poker and present its $517,550 Super Nightprogram, featuring rich Florida Breeders Stakesfinals. In addition to the racing, Pompano will offerfree miniature horse rides for kids, free T-shirts,and free drawings for raffle tickets for DreamfinderFarms’ $1 million home giveaway.In Toronto Saturday night, $2.6 million in purseswill be on the line in Woodbine’s Fall Four classicsfor 2-year-old trotters and pacers, coltsand fillies.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMAGNA’S DREAM MOVES AHEADFrank Stronach has said, from the start, that hisidea for racing’s future included state-of-the-artcommunities surrounding racetracks, with highend condominiums, retails shops, restaurants, entertainmentvenues and offices. His Magna Entertainmenthas announced a major step towardthat goal with the development, with Forest CityEnterprises, of “The Village of Gulfstream Park.”Forest City, Cleveland-based, will build the complex,which will cost $350 million, and if it worksas Stronach expects it will become the prototypefor other major Magna tracks around the country.The Village is stage two of a three-stageproject that began with the rebuilding ofGulfstream Park and will conclude with a 500-room hotel and casino that is expected to costaround $400 million. The overall completedproject is expected to cost $1 billion, accordingto Magna Entertainment vice chairman DennisMills.CONSORTIUM TO SEEK FUNDSThe Racing Medication and Testing Consortium,of which HTA is a member, is preparing to launchits bid for funding for the future through a $5 perstart assessment of owners and horsemen, andmatching funds from tracks based on averagepurses per race. The Consortium hopes for 25%participation in 2006 and 100% by 2009, in its effortto develop uniform national guidelines basedon scientific research as to when trainers and veterinariansshould stop administering certain therapeuticdrugs to avoid positive tests. The Consortiumalso is seeking to establish uniform penalties.Both objectives are needed critically in racing,regardless of breed, and HTA’s board andmembers will be asked to support the Consortiumeffort at the association’s annual meeting scheduledfor Bellagio in Las Vegas startingFebruary 6. Dr. Rick Sams of Ohio Statewill be lead scientist in the Consortiumproject.October 24, 2005NY ALSO SEEKS CONSENSUSBennett Liebman, coordinator of the Racing andGaming Law program at Albany Law School’s GovernmentLaw Center, will take a shot at herdingcats in mid-November. Bennett is convening aconference hoping to bring together a diverse sectorof the state’s racing industry in an attempt todevelop consensus on seeking new racing legislationin the state.BROWARD NOT WAITINGWhile governor Jeb Bush and his key legislatorsmess around talking about implementing and thenrepealing slots in Broward county, the county itselfis moving ahead with or without them. Countycommissioners have unveiled a 422-page frameworkfor regulating racinos, and the Miami Heraldreports that even if the legislature finally getsaround to acting, Broward leaders will continuediscussing, and most likely passing, the regulationsthat a consultant spent all summer developing.A Broward county circuit court judge earlierordered the county commission to develop its ownoperating regulations after track owners suedwhen the legislature failed to act on rules duringits regular session. He also gave the tracks theauthority to operate without state guidelines, anorder being appealed by the Broward stateattorney’s office. Dan Adkins, speaking for thepari-mutuel interests in Broward county, said thetracks were pleased at the county’s action, butpreferred to have the legislature resolve the issue.HOW LONG IS ETERNITY?The Pittsburgh Post-Gazette reports that the PennsylvaniaHarness Racing Commission has againput off its decision on whether Centaur Inc. of Indianaor Carmen Schick of Pennsylvania gets thefourth and final track license in the state. The commissionhas studied the matter for more than ayear, and now is expected to rule “in a fewweeks.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorUH-OH, HERE WE GO AGAINRacing’s resolve to solve its medication problems--and the problems affecting that resolve--surfaced again yesterday, with the LouisvilleCourier-Journal pinpointing the issue with itsheadline, “Racing authority may scale backpenalties in medication policy.” It was referringto the Kentucky Horse Racing Authority,which has begun backsliding from its former determinedstance to end permissiveness in medicationin Kentucky. The paper reported that,“The racing authority will take public commenton the rules through Monday and then is expectedto file an amended regulation with theLegislative Research Commission. From there,it goes before two legislative committees beforebecoming permanent.” The modifications representa victory for Kentucky’s hardboot thoroughbredhorsemen, who have vehemently foughtchanges in tougher raceday medication rulessince they first were announced. Jim Gallagher,the Authority’s executive director, said the proposedpenalties will reflect the guidelines for commonanti-inflammatory drugs established by theRacing Medication and Testing Consortium, butKentucky thoroughbred horsemen have notagreed with the raceday provisions of those guidelines,and still object to them.“A STACK OF AMENDMENTS”It appears there will be changes in Pennsylvania,too, but on slots instead of medication. Statesenators plan to vote tomorrow on “a stack ofamendments” but one omission from the stackhas raised the ire of Pennsylvania’s governor, EdRendell. The issue of multiple slot machine distributors,which offers the opportunity for politicalpatronage payoffs, is red hot, with no resolutionin sight. Rendell has grown impatientwith the delay it is causing in getting slotsup and running, and says he is ready tolegislate the issue.October 25, 2005WHO WILL BELL THE CAT?The Breeders’ Cup, worried about possible furtherdeclines in betting this coming Saturday,is calling for criteria in barring secondary parimutueloperators (SPMOs) from its pools.Ken Kirchner, senior vice president of productdevelopment for the NTRA, was quotedon Blood-Horse.com as saying, “We agreewholeheartedly with the need for full disclosureas far as ownership of SPMOs and informationregarding their players, and we wanttote security at the highest level possible. Ourcomplaint has been we’re not seeing a writtenpolicy from the New York State Racing andWagering Board on what criteria was used fordisallowing these sites.” New York has a banon SPMOs, which reportedly produced some$7 million in handle on last year’s Breeders’Cup.DAMAGE AT POMPANO PARKPompano Park, which defied Hurricane Wilma onSaturday night by presenting its half-million dollarFlorida Sire Stakes Super Night card, paid thepenalty for fooling Mother Nature when it wasblasted as Wilma raced across Florida Monday.Although direct communication apparently hasbeen cut off, phone calls indicate roof damage atthe track, and Jane Murray, executive director ofthe Florida SBOA, told The Horseman’sharnessracing.com that “we have suffered majordamage on the backstretch.” No injuries to peopleor horses have been reported at press time.YOU HAVE IT WRONG, JOHNSenator John McCain of Arizona, speaking to ninemain tribes in Oregon at Portland State University,said the Indian Gaming Regulatory Act of 1988“must be revisited, and we will.” McCain saidgambling had a long history of corruption. Readingthe DeLay-Abramoff-Libby reports, wethought he was referring to Washington.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorA MICHIGAN TOWN SAYS NODorian Lange is a Michigan entrepreneur and promoterwith a dynamic personality and persistence.Neither was enough, however, to convince thetrustees of Michigan’s Windsor Township, nearLansing, to let him build a horse park -- with racingand simulcasting and a hotel -- on 200 acres inthe township. Lange has been talking for severalyears now of developing the project, and showedup at the Racing Symposium in Tucson to discussit. Yesterday the township trustees took only 30minutes to shoot down Lange’s proposal, sayingthey had enough information after months of controversyto resolve the matter quickly. Lange sayshe is not discouraged by the vote. He acknowledgedthat it will make it difficult for him to have aracing component, but says he still can have a rodeoand other viable options to continue to pushthe project through. Lange says despite the rejection,the door is not fully closed on the idea.“It’s a great project,” he says. “We have been atit for a number of years, and we will stay thecourse.” Just not a race course.SLOTS IN MAINE BEGIN NOV. 4Two years and $50 million or so after voters approvedslot machines at harness tracks in Maine,Penn National Gaming will open its HollywoodSlots in Bangor, Maine. The operation will notbe at the harness track in the center of town. Itwill be a 475-slot operation in a former restaurant,with Hollywood glitz, a temporary home untilPenn National’s permanent racino, with 1,500slots, gets going in two to three years after renovationof Bangor Raceway. The racino may notbe at the track even then. The law specifies ithas to be within 2,000 feet of the track, so itcould be as much as almost half a mile away.The president of the Maine HarnessHorsemen’s Assn. asks, “How can youcall it a racino? You can’t even see ahorse.”October 26, 2005LIGHTING UP DOVER DOWNSWhen Dover Downs opens its 37th season ofharness racing next Monday night, it will be abrighter place by far. Dover has replaced itslighting system, installed for its opening in 1969,with 26 new lighting towers around the racingproperty. The installation triggered rumors thatDover was planning night auto racing on its“Monster Mile,” as NASCAR fans know it, butDenis McGlynn, CEO and president of DoverMotorsports, quickly ended that speculation.“There is no truth to the rumor that lights willbe added in 2006 at Dover International Speedway.”SIS PLAYS ROLE IN CUPAgents from Standardbred Investigative Serviceswill join their counterparts from the ThoroughbredRacing Protective Bureau this week in securityoperations on the backstretch of Belmont Park,scene of Saturday’s Breeders’ Cup. The coordinatedteam effort is part of the “BET” task forceassigned to major racing classics to assist and enhancestable area security. BET was in operationat both the Hambletonian and Little Brown Jug,and at the request of the Racing Medication andTesting Consortium BET investigators are developinga “best practices” manual on track security.The Consortium will make the manual availableto participating tracks and state racing commissionsto assist in development of more effectiveand cost efficient track security, and to help providemore uniform security practices from state tostate and track to track. For the first time in 21years of Breeders’ Cup racing, all horses in alleight races will race out of six-hour retention barns.THINGS STILL GRIM IN FLORIDAAn e-mail from Steve Wolf, marketing director atPompano Park: “Wolf family ok. Cell nogood. House damaged, track worse. Will callwhen able.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor October 27, 2005FOUR NEW TRACKS IN HTAThe four harness tracks now owned and operatedby Great Canadian Gaming Corporation -- FraserDowns, Sandown Park, Georgian Downs andFlamboro Raceway -- are joining Harness Tracksof America, and will officially be welcomed at theHTA board meeting February 7 during the RacingCongress at Bellagio in Las Vegas. Chuck KeelingJr., whose family founded Fraser Downs andwho now is vice president of racing operations ofGreat Canadian Gaming, will serve as director onthe HTA board for the four GCGC tracks.WILMA CLOSES POMPANOBattered and lashed by the winds of Wilma, PompanoPark announced today that it is going to beclosed “indefinitely,” until the damage can be assessedand repairs get underway. General mangerDick Feinberg reported, “We are happy toreport that all of our horses survived the stormand are safely housed, and that all of our horsemenand women made it through okay.”GERTMENIAN ON THE GRIDDLEAfter a United States congressman said his subcommitteecould not verify the supposed credentialsof the Jockeys’ Guild president WayneGertmenian, the Guild has begun its own internalinvestigation to see if it can. Gertmeniansupposedly held high secret posts during theNixon and Ford administrations, but neither thepresent House subcommittee nor earlier effortshave been able to substantiate those claims.Daily Racing Form’s Matt Hegarty reportsthat the Guild’s nine-member executive committeeapproved the investigation Tuesdaynight after a telephone conference call, duringwhich New York rider John Velazquez urged thecommittee to fire Gertmenian. Seven ofthe nine members did not support thesuggestion.Velazquez declined comment on whether his reportedmotion was accurate, saying, “I can’t talkabout that right now. We are having meetings,and we want an investigation. We want somequestions answered.” Gertmenian has not beenhaving a good month. His veracity was challengedlast week by House member Joe Bartonof Texas, who called his conduct“an absolute disgrace”; Hall of Fame jockeyChris McCarron said getting Gertmenian hiredwas “my worst mistake”; and this weekGertmenian was called “a bully who finally methis match in the halls of Congress” by editor-inchiefRay Paulick in his column in Blood-Horse.Paulick wrote that Gertmenian “brought whathe thought would be hapless ‘yes’ men andwomen onto the board and into leadership positions,then manipulated the membership and itsfinances to do as he pleased.” Paulick also camedown hard on McCarron, writing that he was “asresponsible for the current mess as anyone. Hetraveled the country with Gertmenian in 2001,introducing him to jockeys from coast to coastas the future savior of the Guild.” Paulick saidMcCarron was “hoping the mess would go away,but it hasn’t,” adding that McCarron has theinfluence and stature to help right a wrong, and“It’s time he stood up and did just that.”EQUINE EQUITY ACT OF 2005The American Horse Council reports that RepresentativesRon Lewis, Hal Rogers, EdWhitfield and Geoff Davis, all Republicans ofKentucky, have introduced the Equine Equity Actin the House of Representatives. The bill, H.R.4151, has been referred to the House AgricultureCommittee and the Ways and Means Committee.The bill would end disparate tax treatmentof the horse industry versus other industries,by making horses eligible for capital gainstreatment after one year, depreciating racehorsesover three years, and providing federalemergency assistance for horses.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorHOUSE VOTES TO KILL CASINOSIt isn’t going to happen, but the Illinois Houseyesterday voted to close the state’s riverboat casinos,15 years after they opened. The speakerof the House, Michael Madigan, said the existingcasino system has produced huge amounts ofmoney for a few people, and needs to be overhauled,and House Democrats voted overwhelminglyto support abolition. The president of theSenate, Emil Jones, had a sharp reaction to theHouse action, making it clear the House proposalwas going nowhere in the Senate. “The Senateis a very responsible body,” he said. “It doesn’tdo irresponsible things. Riverboat gambling providesabout $780 million for schools every year.How is that revenue going to be replaced? I can’tsee a member voting to take money away fromtheir schoolchildren.” Madigan proposed startingover with new gambling legislation, saying,“I think we should go back to the drawing board.”The bill passed the House 67-42, with 7 membersvoting “present.” Its sponsor, Rep. John Bradley,said the casinos encourage addiction, lead tocrime and take money away from the people whocan least afford to lose it, and said, “Let’s takethis scourge out of our communities.” The governorof Illinois, Rod Blagojevich, called theHouse bill “intriguing,” but would not say whetherhe would sign it if it reached his desk. “I justthink if you’re going to do something like havingriverboats and licenses where you can make allkinds of money, that people have to get their fairshare.” The Republican House minority leader,Tom Cross, said he thought the move was designedto help downstate Democrats fend offRepublicans in next year’s elections. A suggestionto Rep. Bradley: After you get shot down bythe Senate, why not try to do away with the IllinoisLottery? If you’re concerned with addictionand taking money from people who canleast afford it, that would be a great placeto start.October 28, 2005GUILD LAWYER HAS ENOUGHA lobbyist and lawyer for the Jockeys’ Guild hasquit, saying he cannot continue to represent theGuild with the present management team in place.Daily Racing Form reports that Barry Broad resignedbecause of concerns raised in the Oct. 18hearing of the House Subcommittee on Oversightand Investigations, primarily about the Guild president,Wayne Gertmenian. He draws a yearly salaryof $165,000 and the Guild also pays his company,Matrix Capital Associates, $335,000 a year.Gertmenian is the owner and sole employee of thecompany, according to the Form.SPLIT DECISION FOR TRIBESIndian tribes on the east and west coast werenot only geographically miles apart yesterday,but also far apart on results of their negotiations.In Utica, NY, a federal judge ruled that Madisoncounty cannot seize Oneida Indian Nationproperty over unpaid taxes. In the state of Washington,Gov. Christine Gregoire rejected theSpokane Tribe’s proposed gaming compact.In the New York matter, U.S. District JudgeDavid Hurd said that although the Oneidas owedproperty taxes to Madison county, the county“must find an alternate method to satisfy theNation’s debt to the county,” because the Oneidasare a sovereign nation. The judge said therewas “a vast difference” between requiring propertyowned by a sovereign nation to be taxedand allowing property to be seized from that sovereignnation. Hurd said such seizure shouldrequire, at the very least, a specific act of Congress.FRANK WHITE DIESFrank White, former president and CEO of Mid-State Raceway and Vernon Downs, died lastweek in Community Memorial Hospital inHamilton, NY.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorBUCCI GETS 3 YEARS 5 MONTHSDan Bucci, the veteran and well-known formergeneral manager of Lincoln Downs, or Lincoln Parkas it now is known, was sentenced to three yearsand five months in a federal prison Friday for conspiracyinvolving bribery. In sentencing Bucci andNigel Potter, CEO of Wembley PLC, the track’sformer owners, U.S. District Judge Mary Lisi saidit was clear to her “that Mr. Bucci was the instigatorof these offenses,” and she gave Potter threeyears and fined Wembley PLC $1.5 million. Thecrime was conspiring to bribe the speaker of theRhode Island House, John Harwood, by funneling$4 million to him through his law partner DanMcKinnon, attorney for Lincoln Downs. The bribewas never paid, and Harwood and McKinnon werenot charged, but a paper trail through faxes in 2000and 2001 indicated the idea was to bribe Harwoodinto blocking a Narragansett Indian Nation bid tobuild a competing casino, and at the same timeadd 1,000 more slots to Lincoln Downs. Wembleyno longer owns the track, having sold it in July.ANOTHER CRIME DOES NOT PAYIn another “crime does not pay” narrative, alady named Christina Goodenow discoveredgood luck can be obliterated totally by bad judgment.Ms. Goodenow, 38, of White City, Oregon,bought a state scratch-it ticket and won$1 million. She is not likely to receive themoney, however, and is sitting in jail withoutbail on charges of theft, forgery, identify theft,credit card fraud, possession of methamphetamine,computer crime and a parole violation.It seems that Ms. Goodenow bought the winningticket with a stolen credit card -- actuallythat of her mother-in-law, who died more thana year ago -- and police began tracking her lastWednesday. She picked up a first installmentof $33,500 of the $1 million, and thecops, who found the meth in her house,can’t find the money.Oct. 31, 2005ILL WINDS BLOW SOME GOODThat’s if you’re a casino operator on the Gulf coast.They were devastated, of course, by Katrina, butit appears they will be bailed out of some of theiragony by being allowed to move onshore in Mississippiand Louisiana. Mississippi already hasset the process in motion by approving 15 acreson Back Bay Boulevard in Jackson for constructionof a new Golden Gulf Casino. The ill windturned out to be followed by sunny clouds for oneChristopher A. Ferrara of Baton Rouge, LA, whoowns the property on which Golden Gulf will build,and he will be the builder as well, with financialpartners. He already has environmental and citypermits to begin construction.CLOSED DOORS IN CONGRESS?Nah. Couldn’t be. Someone must be mistaken.On the other hand, the charge is beingmade by two congressmen, Republicans EdWhitfield of Kentucky and John Sweeney ofNew York, prime movers in the horse antislaughterbill passed recently in the House attheir instigation. The pair now say a lastminute change in the language, making it ambiguousand confusing, was done behind closeddoors. It appeared that the NationalCattleman’s Beef Association may have beenbehind the doors, since their newsletter reportsthat the new language will allow horseslaughter plants in Texas and Illinois to payAgriculture Department inspectors to checkhorse meat for sale. The original bill intendedto cut off horse slaughter by withdrawing fundsfor federal inspection, without which it cannotbe sold. Whitfield says, “We had four differentlawyers look at this (new) language, andwe’ve come up with four different answers.”Even Agriculture Department lawyers admittedthe provision was vague. Sweeney said,“Someone made the decision to change 100years of congressional precedent withoutdebate.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorVIABLE, DRAMATIC AND DUMBWe do not know Carole Stone, the chairwoman ofthe state oversight board in New York created tohelp avoid the projected demise of the New YorkRacing Association, but we can guess that Ms.Stone does not know racing. After a closed doormeeting yesterday on NYRA’s desperate financialsituation, Ms. Stone said there were “viable,dramatic measures” that NYRA might take to allowit to operate until spring, when revenues rise.She did not identify them, but the press did, sayingthey included raising takeout. Three men whodo know racing -- NYRA co-chairman C. StevenDuncker, NYRA spokesman Bill Nader, and racinglaw expert and former racing commissionerBennett Liebman, quickly foretold what raisingtakeout was likely to do. Duncker said bettorswould take their gambling dollars elsewhere.Nader said, “If’s it aimed at helping NYRA, itwould do just the opposite.” And Liebman notedthat handle dipped when takeout rose in the past,and said, “The notion that raising takeout is goingto help NYRA has very little historical basis.” Allthree are right.The argument continues, meanwhile, as to whetherNYRA has the right to sell or otherwise dispose ofthe 15 paintings worth $2 million or more and sell$20 million of property near Aqueduct. One manwho has been noisily saying they don’t is an attorneynamed Donald Kinsella of Albany. He wroteMs. Stone objecting to NYRA selling that property“to pay for costs caused by its misconduct.”We’re not sure what standing Mr. Kinsella has,but he says he represents a potential competitorto NYRA that he won’t identify. If New York andNYRA need transparency, as very expensive measurestaken so far claim, it might be nice either toidentify who people like Kinsella represent or ignorethem. Competition is healthy, butshould not be clandestine.One “viable and dramatic” way Ms. StoneNov. 1, 2005and her colleagues might help racing is to help collectthe more than $23 million in taxes that areowed to New York by the more than 3,000 licensedlottery machine operators, 350 of whom owe thestate more than $10,000 each. Some of them sellmore than $1 million a year in lottery tickets, andstate comptroller Alan Hevesi needs to crack downon these people instead of campaigning on theNYRA issue. One New York City lottery retailer,according to Hevesi, collected $72,763 in commissionson sales of $1.2 million, and owes New York$43,504 in taxes. You might solve your problem inone stroke, Ms. Stone, with a little enforcement inthe state.TRIALS AND TRIBULATIONSThe Pennsylvania Harness Racing Commission,after more than a year of deliberation, will announceThursday whether Centaur and Jeff Smithor Ambrosia and Carmen Shick get the fourth andfinal harness track in the state.New HTA member Fraser Downs will pay up to$2,000 shipping on horses bought for $8,000 ormore at eastern sales to help owners defray theexpense of shipping them west to British Columbiaand encourage purchase of better stock.Saginaw Harness Raceway in Michigan has closedfor good after 25 years of racing.A study group has been formed to conduct a fullscale,extensive feasibility study on the future viabilityof Rockingham Park without slots.More than 90 members of the MassachusettsHouse are reported ready to approve slots, butface a time bind in this year’s session.The betting exchange Betfair is expected to getan Australian foothold this week in Tasmania.Bay Meadows is planning to move from its SanMateo home to a location with slots.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorAROUND THE TRACKSPOMPANO PARK, still digging out from the furyof Wilma, may be able to resume simulcasting inless than two weeks, according to general managerDick Feinberg. The return of live racing ismore distant, hopefully sometime betweenThanksgiving and Christmas. There is some potentialgood news, however. The U.S. DistrictCourt of Appeals has ruled that the Division ofPari-Mutuel Wagering, which serves as a racingcommission in Florida, overstepped its authorityin attempting to limit poker jackpots and specialevents. If the decision holds, Pompano will beable to compete on more equal terms with theSeminoles and other Indian casinos, which haveheld a competitive advantage with their exoticjackpots and special games.POCONO DOWNS will join Freehold Racewayas a major daytime harness track when it opensApril 1. The Pennsylvania mountain resort trackwill conduct its entire 143-day meeting with afternoonprograms.SARATOGA GAMING AND RACING is introducinga 10-cent superfecta, on its own supersand on any simulcast from tracks that also offerthem.THE ONTARIO HARNESS HORSE ASSN. isrelocating its offices, moving from the offices ithas rented for some $60,000 a year from StandardbredCanada to a new location inCampbellville. According to The Harness Edge,the OHHA also is taking back in house administrationof its membership duties, which had beenperformed for it by Standardbred Canada at areported $40,000 a year.BEDFORD DOWNS or VALLEY VIEWDOWNS will learn their fate asPennsylvania’s final harness track tomorrow.November 2, 2005THE NEW YORK RACING ASSOCIATION’Sco-chairman, Peter Karches, has called the proposalto raise takeout to save NYRA “a nonstarter.”Karches says raising takeout won’t workbecause it could increase revenues only on betsmade at NYRA tracks, which would bring in onlyabout $140,000 a month in extra revenues, presuminghandle wouldn’t fall as a result. Karchescalled the idea “a bad solution” and said, “Itdoesn’t solve the problem; it doesn’t generatemoney.”THE MEADOWLANDS and PENNWOODRACING handled almost $41.5 million in accountwagering in the first year of operation. Big Msenior vice president for racing Dennis Dowd saidfirst year operations “far exceeded our expectations”and called account wagering “the goodnews in New Jersey horse racing.” The phonebetting produced $475,000 in purses, the moniesgoing to each track on which the wagers weremade. Hal Handel, CEO at Philadelphia Park,also expressed delight at the first year resultsand said his track was “appreciative of the finework the NJSEA has done with the account-wageringsystem.”HOOSIER PARK and INDIANA DOWNS arehopeful that reconsideration of pull-tabs for thestate will result in installation at tracks. The idearesurfaced after the Indiana Licensed BeverageAssn. launched a major push to legalize the machinesfor taverns and bars. One state representative,Scott Reske, raised the question of howthe state would regulate 2,000 taverns, and saidthere is growing support among lawmakers to allowalternative gaming at the two HTA tracks.State senator Tim Lanane suggested the tracksmay have to join forces with the tavern owners toget legislation passed, but Rick Moore of HoosierPark said Hoosier prefers a stand-alone billthat supports the racing industry, whichtouches all 92 counties.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorPA VOTE: NO ONE GETS TRACKThe Pennsylvania Harness Racing Commission,after more than a year of deliberation, announcedits decision today in the long battle betweenCentaur’s Valley View Downs and the Schickfamily’s Bedford Downs for the final harness racinglicense in Pennsylvania. It turned down bothapplications and did not award the license, and itdid so without comment or explanation, saying theirrationale would be issued in the next few weeks.The two applicants have spent tons of money andthree years of effort in their applications to build awestern Pennsylvania track. The racing board saidit would start anew on the licensing process, withBedford Downs and Valley View Downs eligible tore-apply despite the board’s denial today. Theboard’s action can be challenged in court, but noword on that as yet.YOUBET REBATE SHOP GETS OKYoubet.com broke new ground in U.S. racing yesterday,when the Oregon Racing Commission approveda license for Youbet’s International RacingGroup subsidiary, International RacingGroup, an off-shore high volume rebate shop operatingout of Curacao. Known as Holiday Beach,the shop was acquired by Youbet in June. It hadbeen named but not charged in an 88-count federalindictment earlier this year, and handled $140million in 2003 and $210 million last year, accordingto Youbet, whose CEO Charles Championcalled the Oregon action “an important step forwardfor U.S. racing.” Champion said, “Now thereis a regulated entity in this segment of the horseracing industry that meets the compliance needsof tracks and the demands of customers. Clearly,ORC has once again demonstrated its leadershipand appreciable understanding of issues facingthe racing business and ADW.” IRG currentlyaccepts races on 90 U.S. tracks ofall breeds.November 3, 2005THE TAIL WAGS THE DOGWhen you can’t get in the front door, try goingaround to the back. That’s what Betfair did DownUnder, where it was rebuffed by seven state andterritory governments and then wooed the premierof the eighth, Tasmania, Australia’s smallest statewith 484,000 people. The premier, Paul Lennon,partnering with the Publishing and BroadcastingLtd. of Australia’s richest man and biggest bettor,Kerry Packer, announced Tasmania would grantthe British betting exchange a license to operatein the country, despite vehement opposition fromthe local racing industry and other racing groupsthroughout Australia. The Tasmanian governmentissued multiple media releases trying to justifythe move, including defending the integrity of asystem that includes betting on horses to lose. Thechairman of the Australian Racing Board, AndrewRamsden, issued a long and blistering response inwhich he said, in part, “The Tasmanian Premier’sdecision today doesn’t beat anyone to the punch -- it gives a green light to something that everyother State and Territory has already rejected.That surely tells its own story....The views of thewider Australian Racing Industry seem to havebeen a poor secondary consideration. For theAustralian Racing Board the issue is squarelyabout the integrity of racing -- our capacity to runthe sport in a way that the public has confidence inits integrity. It is an unshakeable fact that the presenceof betting exchanges undermines this. Theeasy facility to make money out of horses losingis an undeniable temptation to cheat.”ILLINOIS SENATE SAVES BOATSForget the Illinois House and its vote to endriverboat casinos in the state. The Senate tookcare of that matter in short order, when its sponsorof the abolition legislation, John Cullerton ofChicago, said he had no intention of asking for avote on the issue.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorHTA MEMBERSHIP UP TO 41Four more tracks will be welcomed to HTA membershipat the annual meeting. Rejoining HTA areBatavia Downs in New York and Cal-Expo in California.New members are Western Fair Racewayin Ontario and Harrah’s Casino and Racetrack inPennsylvania. Joining HTA’s board of directorswill be Martin Basinait for Batavia, Chris Schickfor Cal-Expo, Hugh Mitchell for Western Fair, andAnne Allman for Harrah’s. We welcome all fourwarmly.NYRA SLOT SPLIT ANNOUNCEDSlots are still a long way off at Aqueduct Racetrack,but the New York Racing Association andits thoroughbred horsemen and breeders havereached a revenue-sharing agreement for whenthey do arrive. In the first three years of slotsoperation, horsemen will receive 7.5% of grossgaming revenues. In years 4 and 5, they willget 7.75%. And in the sixth year and afterwards,they will get 10%. They will dedicate $3.5 millionof their share annually, however, to capitalimprovements on the backstretch for as long asNYRA retains its franchise. The New YorkBreeding and Development Fund will get 1.25%of gross gaming revenue for the first five years,and 1.5% after that. All parties to the agreementexpressed satisfaction with the split, whichwill begin when 4,500 slots start operating at Aqueduct.THE PENNSYLVANIA MYSTERYHow and why the Pennsylvania Harness RacingCommission operates is a secret shared by thethree commissioners who constitute it, and to theexecutive director who runs it, but public relationsseemingly is not one of their concerns. Yesterday,after agonizing for more than two yearsover which of two applicants should receivethe final harness license in Pennsylvania,November 4, 2005they stunned everyone concerned by deciding togive it to neither. That decision, coming on theheels of the fiasco of a six-month suspension ofthe nation’s leading harness driver, and the quickrescinding of that penalty, would have seemedenough to make the commission conscious of publicrelations, but instead the commission made itsannouncement with little comment and no explanations.The Pittsburgh Post-Gazette, among others,was mystified, reporting, “Commissioners refusedto explain their decision and said their rationalewould not be available until next week.” Onemight think that if a racing commission had finallymade up its mind on something after two years ofdeliberation, it would be able to announce its reasoningwhen it announced its decision. Not in Pennsylvania.LIFE & DEATH IN HOLLYWOODThere are things that are hard to believe in Californiaas well as Pennsylvania. One is HollywoodPark operating without a fall turf stakesschedule. The once-storied track, now in a threeyearlife-and-death cycle that could wind up withit becoming a housing or business complex underits new owner, the Bay Meadows Land Company,announced it was cutting back live racingdates from 31 to 27, without turf stakes. It cut11 of them worth $2.3 million as a result of nothaving a raceable turf course. With the cutback,overnight purses will increase between 12 and14%. In better news, the California RacingBoard heard from Norm Towne, representingCal-Expo, who said that even though handle andattendance dropped during the summer lead-inharness meeting to Cal-Expo, that summer harnessmeeting still was desirable, and the Cal-Expo board was considering adding a turf courseand 5-furlong dirt track to accommodate runnersand harness horses in afternoon and night racing,in the pattern proved workable byWoodbine.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorBUCCI, POTTER GET 3 YEARSThe scheme to get more slot machines and stiflecompetition that was hatched four years ago byformer general manager Dan Bucci of LincolnPark in Rhode Island, and Nigel Potter, CEO ofthe track’s former owner, Wembley PLC of England,came to a sorry end Friday, when both weresentenced to a federal penitentiary by U.S. judgeMary Lisi. Bucci received three years and fivemonths as the instigator of the conspiracy, andPotter, the English CEO of the major gaming companyin Great Britain, was sentenced to threeyears. They are due to report to the court Nov.25. Faxes between the two men played a keyrole in the indictment on 22 counts in September,and Friday’s sentencing. In addition, Lincoln Parkwas fined $1.5 million for allowing the scheme totake place within the company. According to thetrial testimony, Bucci had suggested -- and Potterhad agreed -- to channel $4 million to RhodeIsland’s then speaker of the House, JohnHarwood, by disguising the money as merit bonusesto Harwood’s law partner, DanielMcKinnon, who has been a lawyer for LincolnPark for ten years. In return, it was hopedHarwood would use his political influence to getLincoln Park an additional 1,500 slot machines,and block efforts of the Narragansett Indian Tribeto build a competing casino. The bribe moneywas never paid, and Harwood and McKinnonwere not charged in the matter.November 7, 2005“These applicants have now spent several yearsand millions of dollars that has resulted in absolutelynothing for western Pennsylvania,” Veontold the Pittsburgh Post-Gazette. The commissiongave no explanation or rationale for its decisionwhen it was announced last Friday, saying awritten document would be issued in a week orso.BUSH CALLS SPECIAL SESSIONJeb Bush, that is, the other half of the family andthe governor of Florida. He has ordered state legislatorsto return to Tallahassee next month tooverhaul Florida’s $15 million Medicaid programand draft rules and regulations for Browardcounty’s four racinos. Although track executiveswere heartened, there is no reason for celebrationjust yet. Bush apparently still plans to call forNovember 2006, repeal of the legislation approvedby voters in Florida last November.NO JOY IN INDIANA, EITHERThe governor of Indiana, Mitch Daniels, has madeit clear again that he remains a stumbling block topassage of any legislation that would provide foralternative gaming at the state’s two tracks, HTAmembers Hoosier Park and Indiana Downs.Daniels’ press secretary, Jane Jankowski, saysno proposal to legalize pull tab machines or slotswill be part of Daniels’ agenda at next year’s legislativesession.PA COMMISSION UNDER FIREPennsylvania state representative Mike Veon,one of the architects of Pennsylvania’s racino law,has urged Gov. Ed Rendell to remove all threemembers of the Pennsylvania Harness RacingCommission. Veon was outraged by thecommission’s decision not to award a license t oeither Centaur Inc.’s Valley View Downsor the Schick family’s Bedford Downs inhis district.In southern Indiana, nature’s 2006 assault thatincludes hurricanes Katrina and Wilma continued,when a tornado killed 22 people and skipped acrossthe Ohio river to kill three horses and do majordamage at Ellis Park in Henderson, KY. An Ellistrainer, Larry Jones, said, “It’s wiped out a lot ofpeople’s lives as they know it.”In Wisconsin, a stable fire killed nine harnesshorses owned by Carol and Bob Yohn.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor November 8, 2005BAD NEWS IN BOSTONGOOD NEWS AT GCGCHTA member Plainridge Racecourse and the three Great Canadian Gaming Corporation, owners ofother tracks in Massachusetts got bad news yesterday.The speaker of the House, Sal DiMasi, Fraser Downs and Sandown Park, reported aHTA members Georgian Downs, Flamboro Downs,announced that it is likely that body would ignore nearly 50% increase in quarterly profits yesterday.The Vancouver-area based company said itslots-for-tracks legislation passed last month bythe state Senate. DiMasi said in a City Hall Plaza earned C$9 million, or 11 cents per diluted share,interview that, “I can’t say for sure that I’m going for the three months ended Sept. 30, comparedto say, ‘No,’ for this year, but it doesn’t look likely with a profit of C$6.3 million, or 9 cents per dilutedshare, a year ago. Quarterly revenue rose-- it looks highly unlikely.” The president of theSenate, Robert E. Travaglini, a strong supporter from C$51.1 million to C$75.1 million. Rossof slots for tracks (he has Wonderland Greyhound McLeod, GCGC’s chairman and CEO, said, “OurPark and Suffolk Downs in his district) said there assessment of the Canadian gaming market iswas little he could do to prod the House into action proving accurate and our strategy for developingon the bill. Responding to DiMasi’s statement, that market continues as planned.”Travaglini said, “The Senate took the action theyfelt was responsible and appropriate at the time;if the House doesn’t concur, that’s totally withintheir rights. There are a lot of things that aren’tgoing to get done, and tomorrow’s another day.”Perhaps, but Wonderland owner Charles Sarkissaid he would likely have to shut down temporarily,sending 300 employees onto the street, until a simulcastproposal was passed. HTA director GaryPiontkowski said Plainridge is prepared to let morethan 100 employees go, “We couldn’t last payingeveryone full boat,” he said.BAD NEWS AT POMPANO, ELLISDamage from hurricane Wilma at Pompano Parkand from a tornado that tore into Ellis Park inHenderson, KY, has left racing uncertain at thetwo tracks. Pompano’s backstretch was badly damagedand still is without power 16 days later, butIsle of Capri is shipping in generators and serviceshould be restored in the next 72 hours. The trackhopes to resume live racing early in December ifall goes well with replacing downed light poles. EllisPark may not race its 2006 schedule, accord- i n gto reports from its owner, Churchill Downs.Power has been restored, but damage assessmentcontinues.TWO TRACKS REACH THE ENDThe end has arrived for two more racetracks.Geneva Lakes dog track wound up operations Sundaywith 550 on hand -- a larger than normal crowd-- and general manager Milt Roth said, “A lot ofpeople come to see a train wreck.” Simulcastingwill continue temporarily, but Roth said only about20 of 185 employees will remain on staff. Developershave expressed interest in the property. InSan Mateo, California, the city council unanimouslyapproved a plan for development that spellsdoom and demolition for the 71-year-old track.OAKLAWN AWAITS VOTEOaklawn Park in Hot Springs will know beforemidnight tonight if it is getting slots. Voters aredeciding today whether “electronic games of skill”can be added to Oaklawn’s menu.MOHAWKS WANT MONTICELLOThe St. Regis Mohawks have decided they don’twant to build at famed Kutsher’s resort, but atMonticello Raceway, and they claim they havefederal approval and just need Gov. GeorgePataki to give them the go ahead.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMAGNA SELLS THE MEADOWSMagna Entertainment has sold HTA member TheMeadows to Millennium Gaming Inc., which ispartnering in the deal with what The Deal.comcalls a “Los Angeles-based buyout shop,”Oaktree Capital Management LLC. Under termsof the agreement, the news source says MagnaEntertainment will continue to manage the trackfor at least five years for the new owners. Thesale is conditional on approval by the PennsylvaniaHarness Racing Commission and granting ofa Conditional Category 1 slot license. Magnaalso, through its Palm Meadows Estates whollyownedsubsidiary, has sold 157 acres of its excessreal estate in Palm Beach county, Florida,to Toll Brothers, a Pennsylvania real estate developmentcompany for aggregate considerationof $51 million in cash. Magna announced it hadcut its third quarter loss to $34.5 million, comparedto a loss of $50.3 million in the same quarterlast year. Revenue during the period fell12.4% to $83.2 million.In Maryland, meanwhile, where Magna controls theMaryland Jockey Club, the racing commission gavethe company, horsemen and breeders until Dec. 1to resolve expense-sharing issues, and until Dec.13 to agree on racing dates for next year. MJCCOO Lou Raffetto said he hoped “we can behavelike grown men and make a deal -- or the commissionwill step in and make one for us.” Alan Foreman,lawyer for the thoroughbred horsemen, saidhis group was ready to finalize an agreement ondates last Wednesday, but that it didn’t happen “onlywhen Magna introduced expense sharing” as anissue.GURAL WINS BIG IN VOTEIt doesn’t assure how the bankruptcy judge will rule,but more than 99% of Mid-State Raceway’s unsecuredcreditors voted for a Jeff Guraltakeover of Vernon Downs, with less than1% favoring the Eric Spector plan.November 9, 2005A “WHOA” FOR BETFAIRBetfair’s backdoor approach to Australia betting,through the nation’s smallest state or territory,Tasmania, hit a bump in the road yesterday. Afterthe premier, Paul Lennon, had approved the deal,the House of Assembly tabled the matter after theOpposition claimed that Lennon had accepted thehospitality of Kerry Packer’s PBL publishing andbroadcasting empire, calling his behavior “arrogantand inappropriate.” The charges said Lennonhad been entertained in the PBL marquee while atthe races in Melbourne and had stayed in thePacker-owned Crown Casino. The House outlined15 points on probity, including a prohibition forowners to bet any of their horses or greyhounds tolose, and a $1 million fine and four years in jail forcheating. The bill is due for debate later this week.A WIN AND A BOOSTIn the closest of possible photo finishes,Oaklawn Jockey Club won public approval yesterdayto install more “electronic games ofskill” at the track. Of 9,401 votes cast,Oaklawn won by 89. In West Memphis, votersapproved expanded electronic gaming forSouthland Greyhound Park with a 64% approvalvote. What “electronic games of skill”means will be determined by the Arkansas RacingCommission.In Kentucky, the lieutenant governor, StevePence, said that state legislators need to considerlegalizing casinos and warned that EllisPark may not survive its tornado damage withoutadditional gambling. He told the LouisvilleCourier-Journal in an interview initiated byhis office that the General Assembly “needs tobe willing to face the consequences that failingto expand gambling could have on Kentucky’shorse industry,” adding, “The consequencesmay very well be that we don’t have an EllisPark, that we don’t have those jobs, andthat we don’t have tourists coming in.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTHIS DECISION CANNOT STANDThat was the pronouncement of Pennsylvania staterepresentative Mike Veon of Beaver Falls, whohosted a meeting of legislative officials in westernPennsylvania to increase pressure on Gov. EdRendell regarding the state harness racingcommission’s decision not to grant either of twolicense applications to build a track in the region.HTA, meanwhile, has published the full 87-pagecommission report denying the two licenses on thehome page of our Web site, for the entertainmentof our readers.The commission wrote that “neither applicant’sproject will best serve the interests, convenienceand necessity of the public by developing a firstclassgaming facility with integrated harness racing.”It based its decision on the Bedford Downsapplication on financing and alleged past associationswith undesirables, and the Centaur ValleyView Downs proposal because it was concernedabout the design of the track, a traffic entranceand topography of the land, as well as “what appearsto be ongoing compliance/regulatory problemswith Valley View’s parent corporation.” It didnot, however, find evidence “of any improper orillegal activity.” Centaur said it spent $3.2 millionto buy 217 acres for its proposed five-eighths miletrack. Rep. Veon said the commission operated“with a double standard and an undeniable biastoward eastern Pennsylvania when it comes toawarding licenses.” He noted that the commissionhad licensed Chester Downs, which sits on 60acres, a little more than one-fourth the size of theCentaur property.CONGRATULATIONS, ERICUSTA executive vice president Eric M. Sharbaughwas married Sunday to his longtime love,Mary Ann McNally. HTA extends itswarmest good wishes.November 10, 2005TOUGH TALK IN BOSTONMassachusetts state representative Brian Wallacehas blasted the state’s Catholic Conference forsending letters to legislators urging them to voteagainst slots for tracks. Wallace told the BostonHerald, “For an organization which raised millionsof dollars through bingo to now say they are againstgambling is hypocritical and shortsighted.”MORE ON THE MEADOWS SALEMillenium Gaming, one of the purchasers ofHTA’s member track The Meadows, is aLakewood, Colorado-based partnership of LasVegas casino executives William Paulos andWilliam Wortman. Millenium’s partner in the$225 million purchase from Magna Entertainmentis the Los Angeles investment managementfirm Oaktree Capital Management, andThe Meadows’ five OTB parlors in the Pittsburgharea are included in the sale. Paulos,who met with horsemen at The Meadows yesterday,said plans are to build a temporary60,000-square foot slots facility, which wouldbe timed as closely as possible with the state’sgranting of a temporary license. Don’t growold waiting for that, Mr. Paulos. The commissiondoesn’t work on a very fast schedule, asValley View Downs and Bedford Downs cantestify.TWO JOBS OPEN IN DELAWAREThe Delaware Harness Racing Commission is seekingan experienced presiding judge and associatejudge. Applicants must have previous harness racingexperience of not less than 45 days during 3 ofthe past 5 years, or 5 years experience as a driverwho has served as a licensed official for more than 1year, or 10 years as a trainer who has served as anofficial for a year. The job carries competitive salaryand benefits. Applications to Hugh Gallagher, DelawareHarness Racing Commission, 2320 S.Dupont Highway, Dover, DE 19901, to be receivedby Nov. 25.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorAROUND THE CIRCUIT...In MICHIGAN, all three Detroit casinos reportedincreasing revenues, with a total to date in 2005 ofmore than $1.025 billion.In PENNSYLVANIA, in the wake of the harnessracing commission’s denial of track licenses toValley View Downs and Bedford Downs and thesubsequent call by legislators and others for theremoval of the members of the racing commission,Gov. Ed Rendell issued a statement saying thathe and his staff are reviewing the actions of thecommission. In responding to cries that the commissionwas showing an “eastern Pennsylvaniabias,” Rendell said that he believes “it is in thebest interest of Pennsylvania that this harness licensebe awarded to a location in western Pennsylvania.”Also in the Keystone State, public hearingson two proposals to establish thoroughbredtracks in western Pennsylvania are scheduled fornext Tuesday. Commissioners will first hear from1935 Inc., which proposes to build a one-mile dirttrack in South Versailles, Pennsylvania. The track,to be named Oak Park, is being proposed by theBiros family, who envisions a small track with agrandstand seating 1,800 customers. The secondproposal comes from businessman Charles Betters,who wants to build a racetrack in the Pittsburghneighborhood of Hays on a bluff overlookingthe Monongahela River. Should Betters’ applicationfor Pittsburgh Palisades Park be approved,the track would be run by Churchill Downs.In one other note from PENNSYLVANIA, thePennsylvania Harness Racing Commission reportsthat on Thursday, the state’s Secretary of Agriculture,Dennis Wolff, became the “newest of new”standardbred owners after agreeing to purchasethe Balanced Image broodmare Yankee Dallas for$22,000. The mare, in foal to 2004 championWindsong’s Legacy, had been consignedby Hempt Farms to the StandardbredNovember 11, 2005Horse Sale at Pennsylvania’s Farm Show Complex.Paul Spears bought the mare but later soldher to Wolff.The National Cattle Congress closed the WaterlooGreyhound Park in 1996 after experiencing financialdifficulties. It’s been trying for severalyears to get a license to reopen the Waterloo,IOWA, track. Now the group is suing the IowaRacing and Gaming Commission, alleging it shouldget a license under expanded gambling measuresin the state. The lawsuit comes a month after theCommission voted unanimously to deny the group’sapplication to reopen.Darrell Haire, a leading member of the Jockeys’Guild, called for the immediate resignation of embattledorganization president Wayne Gertmenian,whom Haire had previously supported. The Guildboard also imposed strict financial controls on theorganization’s officers and staff.FORMER DRF STAFFER DIESArt Krawitz, a former advertising executive for theDaily Racing Form, died Wednesday at his homein Santa Monica, California. The cause of deathwas cancer. Krawitz was 53.HTA DIRECTORS, ACTION OFFICERSHTA Directors and Action Officers are remindedthat update information for the 2006 HTA WorldRacing Directory currently is being collected.Forms have been sent to HTA members as well asracing commissions and other organizations; pleasemake necessary changes and get them back toHTA as soon as possible.In addition, registration materials for the 2006Harness Racing Congress are in the mail. Thedeadline for hotel reservations if December 30,2005, so make your plans now. Fax registrationsto HTA at 520-529-3235, or call 520-529-2525.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorPOMPANO SETS REOPENINGPompano Park, lashed and closed by HurricaneWilma, will resume simulcasting Thursday andexpects to present live racing again starting onFriday night, Dec. 2. Live matinees with purses,open to the public without charge, will be held thiscoming Saturday and a week later, on Nov. 26, tohelp ease the financial strain on idle trainers andowners. General manager Dick Feinberg, announcingthe dates, said, “After assessing all ofthe repairs that will be needed to reopen the facilityfrom the damage, we are happy that we shouldbe able to reopen ahead of schedule.” The second,third and fourth floors of the clubhouse andgrandstand, and the poker room, suffered considerabledamage. The tote board and paddock suffereddirect hits, and more than 10 barns on thebackstretch will have to be replaced. It appearsthat the drivers’ room building, which also housesthe racing secretary’s office and security, judges’and state offices, will have to be demolished, aswill the outdoor bleacher area. Feinberg said Pompanohoped to be able to race a full schedule whenit reopens Dec. 2, racing Mondays, Wednesdays,Fridays and Saturdays.STARTING ALL OVER AGAINIt is difficult to tell how much money -- privateand public -- has been wasted by the decision ofthe Pennsylvania Harness Racing Commissionnot to license either applicant for the state’s finalharness track, but it is in the millions. Neitherapplicant -- the Shick family or Centaur ofIndiana -- has been daunted, Carmen Shick isprotesting that Bedford was judged “for transactionsthat occurred 20 years ago and for whichnone of the principals had any responsibility,”and vowing to beef up financial backing, andCentaur is saying that topography and entranceplans that didn’t please the threecommissioners are “issues that are easilyresolved.”November 14, 2005IT WILL BE BUFFALO OR NADAThe Appelate Division of the New York State SupremeCourt has unanimously upheld a lower courtruling that says if the Seneca Nation of Indianswants to build a casino in Erie county, it has tobuild in the city of Buffalo. The Buffalo suburb ofCheektowaga, near the airport, appealed a June2004 ruling to that effect, but the Supreme Courtsaid it was the legislature’s intent to have the casinobuild within the city limits of Buffalo. TheSenecas have acquired nine acres along Michiganavenue in downtown Buffalo and are planningto locate their casino on the second floor of a railterminal there. The Supreme Court, despite itsname, is not the highest tribunal in New York, andCheektowaga says it will carry its fight to the Courtof Appeals, which is the ultimate arbiter.AN AUSSIE BETFAIR INQUIRYThe English betting exchange Betfair still isnot licensed in the state of Victoria in Australia,but that did not prevent one $30,000 beton the favorite to lose in a race at Sandownthere Saturday. The horse, Vengo, finishedninth, as a $31 outsider won. In addition tothe single $30,000 bet, another $40,000 wasbet on the favorite to lose. The chief stewardtook the word of the jockey that the horse didnot race well in front, and “hit a brick wall atthe top of the straight (stretch)” as a result.Because Betfair is not licensed, the stewardswere unable to ascertain the identity of theBetfair account holder. The jockey said, “Allwe can put down to is that the horse is betteroff ridden quieter than today.” Okay, if yousay so.In this country, the Jockeys’ Guild’s Senatemeets tomorrow to discuss ways of amendingits bylaws as a prelude to an attempt to removeits embattled president, L. WayneGertmenian, who vows to fight the move.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorKY BACKS OFF ON MEDICATIONIt’s better than it was, but not as good as it couldhave been. That’s the verdict on Kentucky’s newmedication rules, which -- like the Old Gray Mare --ain’t what they used to be, but unlike Lady Suffolk,the mare of that song, they are better than they oncewere. The Kentucky Horse Racing Authority unanimouslyapproved changes yesterday limiting racedaymedication to furosemide and two of four permitted“adjunct bleeder medications.” That’s better thanunregulated furosemide and corticosteroids and assortedpainkillers, as before. The new rules will allowsome anti-ulcer medications, some topical liniments,antiseptics, ointments, leg paints and antibiotics,and 24-hour restrictions on alkalizing substancesthat could alter serum or plasma and highbicarbonate readings. The final result is a compromise,the best the new Authority could get, and ithopefully now will pass legislative muster withoutfurther messing around.ONE TRACK FOR NJ RUNNERS?That’s what senior VP for racing Dennis Dowdtold the New York Daily News would be best forNew Jersey racing, and it seems clear he wastalking about Monmouth Park. It also is clearthat the Meadowlands should remain harnessracing’s preeminent track, which it is not in thoroughbredracing. Dowd told the paper hethought that racing runners at more than onetrack in New Jersey was “quite frankly, 1976thinking,” dating back to the Meadowlands’ firstmeeting. “Our costs are escalating and ourhandle is going down on the thoroughbred meet,”Dowd said. “It’s something we’ve obviouslygot to look at, but it couldn’t happen beforeMonmouth hosts the Breeders’ Cup in 2007.”It was interesting to read how the ThoroughbredTimes handled the story. After reportingDowd’s remarks, the magazine said, “TheMeadowlands also conducts harness racing.”They sure do, TT, the biggest andbest in this country.November 15, 2005CHREBET GETS A “Q” LICENSEWayne Chrebet, the New York Jets wide receiverwhose sixth concussion has ended his NFL career,has received a qualifying license from theUnited States Trotting Association that will permithim to drive in qualifiers at the Meadowlandsand Freehold Raceway. Chrebet owns DoubleDown Stables, with 11 horses trained by his goodfriend Kevin McDermott, who says Chrebet enjoysdriving as a hobby at the moment “and isgood at it.” The “Q” license is a first step towardacquiring a provisional license after winning10 races in one year’s time, and that “P” license,when obtained, would enable him to drive at Freehold.Once he completed 25 satisfactory parimutuelstarts, he could apply for an “A” licenseand after receiving one could drive at the Meadowlands.That could be the goal for the highachiever, who lives in Garfield, NJ, not far fromthe Big M.GERTMENIAN AT RISK TODAYThe senate of the Jockeys’ Guild is meeting today,and could vote to change the Guild’s bylawsto allow it to elect a new board of directors,which in turn could act on the reign of L. WayneGertmenian, president of the Guild for the lastfour years. The tide began to turn againstGertmenian after a House of Representatives’subcommittee questioned financial operations ofthe Guild, including Gertmenian’s yearly salaryof $165,000 and another $335,000 he receivedannually through his Matrix Capital Associates,which he owns and operates. Business First alsoreports that Congressional records indicate thejockeys themselves were in arrears by morethan $700,000 in premiums paid to the Guildhealth plan. Posted on a Congressional Web site,the information said that of 320 covered jockeys,251 -- or 78% -- were delinquent in payingmonthly premiums, with 50 owing morethan $5,000.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFORM BUYS SPORTS EYEIn what could be a significant development forharness racing, Daily Racing Form has acquiredthe publishing assets of Sports Eye, the NewYork-based publisher of a number of sports publications.Brent Diamond, CEO of the Form,said of the acquisition, “Sports Eye has done atremendous job producing publications for thecasual and new horseplayer, which is an areathat we haven’t focused on with the Daily RacingForm products. We believe there is an opportunityto provide information to the full rangeof horseplayers and this will allow us to do so.We’re very excited about expanding our currentbusiness with these products. This acquisitionalso provides us with the opportunity to extendour franchise into sports publishing, which issomething we planned when we acquired DailyRacing Form as our platform asset in May,2004.” Harness racing, in this corner’s opinion,never gave Sports Eye the support it deservedfrom the day it was founded back in 1964. Theoriginal founders appeared at an HTA meetingin Scottsdale, Arizona that year and outlinedtheir plans, but fought an uphill battle for supportfrom that time on. Attacks on managementpolicies weakened the publication’s case underone editor, but under Daily Racing Form controland with the Form’s plans to expand thereach of the publication, Sports Eye is likely todeserve industry support.AROUND THE CIRCUIT......L. Wayne Gertmenian is gone from the JOCK-EYS’ GUILD. The Guild’s senate changed theirbylaws yesterday, appointed a new board of directors,and fired Gertmenian for alleged mismanagement.Darrell Haire, a guild regional representativefor the last six years and a protege oft h eformer national manager, John Giovanni,was named to head the organization on atemporary basis.November 16, 2005PENN NATIONAL’S Hollywood Slots in Bangor,Maine, are off to a bangup start. After $1.76 millionwas bet on opening day, the crowds continuedto pour in, and more than $8 million waspumped into the machines during the week thatended Sunday. The Maine Gambling ControlBoard reported that Penn National’s share fromthe first 10 days of operation was $435,000. Inother Penn National news, Richard Schnaars,general manager of the company’s Penn NationalRacetrack, resigned after six years in that role.BARRY SCHWARTZ, former chairman of theNew York Racing Association, has resigned fromthe NYRA board, saying, “My views on racing inNew York are very different from the views ofthe current management.” NYRA, meanwhile,was told by state regulators not to sell $2 millionin racing art at Sotheby’s next month because thepaintings are owned by New York state.KEEP, the Kentucky Equine Education Project,has proposed a racino plan that would providemoney to each of the state’s 120 counties basedon population, and would provide thoroughbredracing with 14.65% of casino revenue and otherbreeds, including harness racing, 1%.QUEBEC’s government has delayed its decisionon racing once again, this time postponing a verdicton which one of five proposals on theprovince’s four tracks will be accepted.DEATHS: Wayne Shumate, former member ofthe Kentucky Harness Racing Commission anda past president of the Association of Racing Commissioners,at 71. Tom Ivers, author of nine bookson training race horses, all espousing intervaltraining, at 61.RECOVERING: Race-caller Roger Huston, athome after suffering a torn esophagus.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorAN EXCEPTIONAL HTA ‘CLASS’Harness Tracks of America’s 2005-6 scholarshipwinners, individually and as a group, representsome of the strongest academic achievers in the32-year history of the annual awards. Two of thewinners, Amy Beth Todd and Ryan John O’Mara,each awarded $10,000 scholarships, are straightA students in tough academic settings. Ms. Toddis a senior at Cornell Veterinary College, rankingthird in a class of 85, and Dr. Nena J. Winand,assistant professor of pathology in the departmentof molecular medicine, wrote HTA, “I anticipatethat Amy will be a leader in the field of equine internalmedicine. She is poised to make great contributionsto the performance horse industry.”Ryan, injured in a stable accident as a child, wasinspired during his recovery to become a surgeon,and remains on course, maintaining an all-A recordin pre-med at the University of Florida, aiming forHarvard Medical School. Ms. Todd is the daughterof trainer Art Giambrone and his wife Mona, ateacher. O’Mara is the son of Debbie Garofalo,a respiratory therapist, and trainer MarkO’Mara.Rounding out the $50,000 in scholarships are fourother outstanding students, each receiving $7,500grants. They are Jennifer Marie Ashby ofMaquoketa, Iowa, an accounting major at the Universityof Northern Iowa, daughter of trainer BradAshby and his wife Laurie, a pharmacy technician;John Bradbury, St-Hyacinthe, Quebec, a trainerand senior in the veterinary school at the Universityof Montreal; Michael John Latessa ofAmherst, Ohio, member of a longtime Ohio harnessracing family, a second-year student at OhioState’s Veterinary School; and Jo Ellen Proctor ofChesapeake Beach, MD, executive assistant toCloverleaf Enterprises chief executive TomChuckas at Rosecroft Raceway, pursuingan associate’s degree in Human Servicesat the College of Southern Maryland, witha perfect 4.0 grade average.November 17, 2005AROUND THE TRACKS.....POMPANO PARK reopened for simulcasting today,its first day of operation after HurricaneWilma. Eighteen different signals were being offeredas the day’s simulcasting fare, and thingswere lively in the racing secretary’s office as well.Non-betting matinee races with purses were scheduledfor Saturday to help idle horsemen, and whenthe entry box was opened, slips for 299 horsesspilled out.PRAIRIE MEADOWS and its harness horsemenwere meeting today in an effort to close a $700,000purse gap in negotiations. The horsemen wereexpected to ask the racing commission to orderarbitration. Harness racing currently is to get $1.8million out of a purse pool of $18.4 million.VERNON DOWNS’ parent, Mid-State Raceway,wants Eric Spector and his Oneida Entertainmentpartner out of the picture, and have asked a federaljudge to toss out Spector’s plan to take overVernon. No more than 4% of any category of creditorapproved Spector’s plan, the rest opting forthat offered by Jeff Gural.JUDGE: REVOKE THEIR LICENSEAbner Mikva currently is an administrative lawjudge in Chicago, but his resume includes fiveterms as a U.S. Congressman, former WhiteHouse Counsel, and chief judge of the U.S. Courtof Appeals for the District of Columbia circuit.Given that background, he used pretty strong languagethis week when he recommended that theIllinois Gaming Board revoke the gambling licenseof the Emerald Casino, saying its leaderKevin Flynn “flat-out lied and others dissembled”when it first attempted to move its gambling operationto Rosemont, near O’Hare airport, in thelate 1990s. The gaming board is expected tovote to revoke the license when it meets inDecember.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorNovember 18, 2005INTERNET BETS ON 60 MIN-UTES CBS turns its “60 Minutes” spotlight on Internetbetting this Sunday night at 7 p.m. eastern standardtime, and the coverage is not likely to bepretty. Lesley Stahl handles the segment, and youcan get an idea of what it will be like from a pretelecastblurb from CBS, saying, “LegalizingInternet gambling would bring billions in U.S. taxdollars, but critics say it cannot be regulated andcan corrupt youth....The federal government saysInternet gambling is 100% illegal, and people whowant to keep it that way believe that the sites --legal in more and more foreign countries -- cannever really be effectively regulated.” If you can’tcatch the show, you can view clips online atCBS.com.MORE NON-EXPERT ADVICEGov. George Pataki’s racing oversight panel inNew York is telling the financially embattled NewYork Racing Association how to dig itself out ofthe hole it is in. As might be expected, it does sowithout much racing expertise. ChairwomanCarole Stone’s solution includes raising the costof the product, deferring dues to the National ThoroughbredRacing Association for a year, and settlingpending lawsuits “in order to achieve a timelycash settlement.” While all of this is going on, thestate of New York has ordered NYRA not to try tosell 80 acres of valuable land or 19 pieces of equineartwork, claiming both are the property of the stateand not NYRA’s to sell.MEADOWLANDS REOPENSThe Big M, back in harness with its fall meeting,opens with eliminations tonight and tomorrow nightfor next week’s $4.3 million Breeders Crown championshipsfor 2- and 3-year-old trotters and pacers,colts and fillies. The races play a major rolein seasonal championships. The Meadowlandswill race from now through theend of the year.WHAT A SORRY MESS THIS ISChris McCarron wasn’t kidding when he told acongressional committee that hiring WayneGertmenian as president of the Jockeys’ Guild was“the worst mistake of my life.” Here’s where ithas wound up:After Gertmenian was fired Tuesday, his temporaryreplacement, Darrell Haire, and seven ridersincluding Laffit Pincay Jr., Alex Solis and KentDesormeaux, got a locksmith to let them in theGuild offices in Monrovia, California, to accessthe Guild’s books. While there, Gertmenian andthe Guild’s COO, Albert Fiss, showed up, and ascuffle broke out in which Gertmenian reportedlypushed Haire to the floor. Monrovia police werecalled, and Guild counsel Barry Broad settled thematter by phone.Yesterday the Guild reported that while the Guild’snew board was giving Gertmenian the boot Tuesday,he was writing and cashing checks totaling$217,000 to himself, his Matrix Capital Associates,and Fiss. The Guild on Nov. 8 had invoked controlson all checks over $200 unless approved bytreasurer Jeff Johnston, and attorney Broad says,“It is the view of the Guild that the funds werestolen and that a crime has occurred.” Monroviapolice are investigating.In Washington yesterday, the jockeys’ insurancemess surfaced, and U.S. Representative EdWhitfield raised the specter of federal legislationover racing, or at least that portion of it. “A lot ofinterest groups do not want their turf touched,”Whitfield told Associated Press, “but there arestrong arguments for some uniformity and for somefederal oversight and involvement.” Happily, Rep.Joe Barton, chairman of the full Energy and CommerceCommittee, said he thought voluntary actionwould be preferable to “last resort” legislation.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorGUILD SUED FOR $10 MILLIONTheir woes never seem to end. After having theexiled Wayne Gertmenian write himself and hiscolleague Albert Fiss checks for $217,000 lastweek after being fired by the Jockeys’ Guild, theGuild, Gertmenian and Fiss now are being suedfor $10 million by jockey Gary Birzer, who is paralyzedfrom the waist down after an accident atMountaineer Race Track last year. The 30-yearolddisabled jock, who says he was told that hewould be a poster boy in a campaign to get tracksto pay for jocks’ insurance, is accusing the Guild,Gertmenian and Fiss of fraud and breach of fiduciaryduty. The jocks’ attorney, Barry Broad,whose phone call to Monrovia, CA, police last weekresolved a brawl involving Gertmenian and hissuccessor, Darrell Haire, and other jocks includingLafit Pincay Jr., Alex Solis and KentDesormeaux, says Birzer’s suit for $10 million is$10 million more than the Guild has. Daily RacingForm’s Matt Hegarty, writing about a secondhearing in Congress on jocks’ insurance, says itdrew far less interest from legislators than the firstmeeting, and Hegarty called the possibility of federallegislation “remote.”NO INJUNCTION IN FLORIDAA federal appeals court in Florida has denied sixdog tracks an immediate injunction to stop the statefrom making changes in gaming rules that endedchances of high stakes poker tournaments for themoment. The request denial means Florida’s 17dog and horse tracks will have to wait at least untilnext month, when an appeals court in Tallahasseeis expected to make a final ruling. The trackschallenged the $45 limit on entry fees for pokertournaments a year and a half ago. An administrativelaw judge agreed with the tracks that thestate did not have the authority to set poker tournamentrules. The Division of Pari-MutuelWagering appealed and lost in federalcourt.November 21, 2005LESS RACES, HIGHER PURSESThat’s the order of the day in Iowa, where theRacing and Gaming Commission unanimouslyapproved reducing racing days at HTA memberPrairie Meadows Racetrack and Casinofor all three breeds racing there. The commissioncut thoroughbred and quarter horse datesfrom 95 to 81, and the abbreviated harnessmeeting from 17 days to 14. Purses will go up$1.3 million over the projected $18.3 millionthat Prairie Meadows is required to pay underthe 2004 law that fuels purses with a mandatedshare of casino revenue. The harnessmeeting will pay out $630,000 in the twoweeks of racing, with another $1.3 million setaside for county fair racing in Iowa. Veteranexecutive director Jack Ketterer announcedthe commission plan after the track and harnesshorsemen reached an impasse. “We’retrying to be regulators, not the manager of theracetrack,” Ketterer said. “I feel like we wereput in a situation where we had to make a decision.”MILLSON LEAVES WINDSORJohn Millson, longtime president of Windsor Raceway,has resigned, effective February 7 of nextyear. Patrick M. Soulliere, who has held managementpositions in accounting and finance at theraceway, will replace Millson the following day.ANYONE HAVE SOME ASPIRIN?If you’re going to make a mistake, you might aswell make it a big one. That’s what the direct marketingvendor for Harrah’s Joliet Casino in Illinoisdid, when instead of the customary $15 and$20 betting coupons the casino distributes, the vendorsent out coupons good for $525. How manywent out? Try 11,000. Harrah’s Illinois regionalpresident, Joe Domenico, said the company willhonor the coupons, after the Illinois GamingBoard was deluged by coupon holders’ complaints.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMcERLEAN JOINS USTA BOARDAt the annual membership meeting of District 12of the United States Trotting Association, held inFreehold, NJ, HTA board chairman and formerpresident Chris McErlean was elected a USTAdirector. McErlean fills the spot formerly held byBruce Garland.AUSSIE STAR SERIOUSLY HURTTed Demmler, the first Australasian harness racingdriver to win 3,000 races and winner of the 1987World Driving Championship in Germany, has beeninjured seriously in a racing accident at theWarragul ‘country track’ in Australia. A four-timeAustralian champion, he was listed in serious conditionwith a broken bone in his neck, a puncturedlung and several broken ribs, according to a reportin The Harness Edge.DOGS FACE MUSIC ONCE AGAINGreyhound racing in Massachusetts, which surviveda 51-49 per cent vote for survival five yearsago, may have to fight another attack next year.The Humane Society of the United States, theMassachusetts Society for the Prevention of Crueltyto Animals, the greyhound protection groupGREY2K, and the Animal Rescue League of Bostonhave joined forces and told the Boston Globethey have collected almost twice as many signaturesas the 65,825 needed to put a measure toban the sport on the ballot in November, 2006. Thechairwoman of the ballot committee formed by theanti-dog racing groups says they have collectedmore than 110,000 signatures since Sept. 21, whenthe drive started. The petition is due to be submittedto the municipal clerk’s office in Boston tomorrowevening. As the proposal now reads, itwould phase out greyhound racing in Massachusettsentirely by Jan. 1, 2008. GaryGuccione, executive director of the NationalGreyhound Assn., called the group’sclaims of cruelty “ludicrous.”November 22, 2005MORE ABOUT MILLENIUMA few more details about the purchase of TheMeadows from Magna Entertainment for $225million have surfaced in Las Vegas, including thenot-surprising news that the entire deal is contingenton the new owners getting a slots license.Those new owners, Bill Paulos and Bill Wortman,operate as Millenium Gaming, and own the CanneryCasino and operate the Rampart Casinothere. They and private investor Oaktree CapitalManagement out of Los Angeles agreed to purchase100% of Magna’s interest in the track, buthave Magna’s present management team run thetrack for five years. When slots come to Pennsylvania-- and that does not appear imminent -- TheMeadows would wind up with 3,000 slots, andcould extend that number to 5,000 under presentstate law. The Millenium-Oaktree partnershiphopes to obtain a temporary license and open acasino as early as the third quarter of 2007, butit apparently has not dealt with the PennsylvaniaHarness Racing Commission, which does notdo things quickly. It is now 16 months sincegovernor Ed Rendell signed the slots bill in thestate, and that long or longer since the commissionbegan studying two applications for the finalharness racing license before deciding thatit liked neither one. Paulos acknowledged asmuch when he said, “It’s been a very slow-movingprocess,” noting that each part of the statewants to get their fair share. He claimed that“there are things happening behind the scenes,and the state is still taking applications.” Paulossays Millenium won’t close on the deal until itis licensed, and consequently is not fronting alot of money. He called the Pittsburgh area amajor feeder market “with great demographics.”Although Harrah’s already is in Pennsylvania,and the Venetian and Planet Hollywoodare hoping to be with free standing casinos, BoydGaming says it looked at The Meadows andpassed.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorGUESS WE WERE THE LUCKY ONESWe thought we had problems at the HTA art auction,when a wild man showed up bidding untilwe discovered Amex disavowed him. Fortunatelyhe never laid a hand on any of the art, and wegot Humpty Dumpty put back together again.That pales in comparison with the problems theNew York Racing Association is encountering intrying to sell its art to stay afloat. The 19 NYRAworks, including old masters, are still scheduledto be sold a week from tomorrow at Sotheby’s,but it is questionable if that auction house willproceed after receiving a copy of a letter sentby New York Racing and Wagering Board chairmanMike Hoblock to NYRA president CharlesHayward. Hoblock reportedly told Hayward thesale was “unauthorized” and threatened legalaction against NYRA and Sotheby’s if the auctionwas held. New York’s recently appointedRacing Oversight Board, which speaks for governorGeorge Pataki, followed suit. Sotheby’shas issued a $50 catalog for the sale, which canbe viewed on their Web sitewww.Sothebys.com. The price estimates rangefrom $10,000 to $400,000 for John FrederickHerring’s painting of The Flying Dutchman, althougha lone harness racing piece is estimatedat $5,000 to $7,000. There are nine works byfamed American equine artist Henry Stull, a starof the late 1890s. If you bid and don’t get anyof these, we’ll be happy to oblige you with HTAart for far lower prices, and with no court actioninvolved, as it appears it might be in NewYork. If HTA track participation in its own artauctions is any indication, NYRA had better notcount on that source for its hoped-for bailout.At last report, Sotheby’s still plans on goingahead with the auction. A spokesman, MatthewWeigman, said, “The sale hasn’t been canceled.There were issues that wereraised. Sotheby’s is waiting for these issuesto be resolved.”November 23, 2005SOME FUN FOR LIBERTY MEDIALiberty Media, John Malone’s huge media empirethat includes The Discovery Channel, TheShopping Network and QVC, has agreed to paysome $195 million for a 51% share in Fun Technologies,a Toronto-based online game developer.Fun was developed three years ago by LorneAbony and Andrew Rivkin, two co-founders ofCyrptoLogic Inc., a software company. It runs aninteractive television game-show service for theU.S. cable TV channel GSN, and it now employs200 people. Fun’s games, unlike online poker andother interactive games that are the mainstay ofCryptologic’s business, are not considered onlinegambling. One of its biggest hits has been Lingo,an interactive, real-time online spelling game show.Abony, Fun’s CEO, says the company is the marketleader in two of the fastest growing sectors ofonline gaming, skill gaming and fantasy sports.The Liberty investment gives Fun a market valueof some $480 million.8 BREEDERS CROWNS AT BIG MThe Meadowlands takes over harness racing’sspotlight again Saturday night, when it presentseight Breeders Crown championships for 2- and3-year-olds of both gaits and sexes. The pursesfor the eight races total $4.3 million, and as usualsome season’s champions+hips could be clinchedor lost in the big show. HTA racing secretaries,incidentally, will be polled early next week for theirchoices for their champions, since time is neededto notify owners in time to obtain room reservationsfor the Night of Stars Wednesday, Feb.6, atBellagio in Las Vegas. The gala awards dinnerwill be part of the quadrennial Racing Congress,and HTA executives are reminded that room reservationsat our special convention rate will remainopen only through Dec. 31.The HTA staff is being given a holiday breather.Happy Thanksgiving. We’ll see you Monday.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor November 28, 2005BETFAIR GETS ITS FOOTHOLDIt took a marathon session of the Legislative Council-- the upper house of the Tasmanian Parliament-- to get it done, but the English betting exchangeBetfair, backed by the premier Paul Lennon andthe multi billions of Kerry Packer, Australia’s richestman, won its foothold into Australia last week.The Council approved Betfair after amendmentsto ensure, as far as possible with a program whereyou can bet on horses to lose, that the system wouldbe monitored for its social and economic impact.Other Australian racing interests were dismayed,but their pleas to defeat the bill were rejected bythe Legislative Council, and Betfair plans to beginAustralia operations by January 1 in a jointventure in Hobart, the capital of Tasmania, withPacker’s media giant, Publishing and BroadcastingLtd.WILL MIKE STAY OR LEAVE?Nothing happens in racing in New York unlessGeorge Pataki says it will, so the odds are thatRacing and Wagering Board chairman MikeHoblock will wind up somewhere else. Gov.Pataki apparently wants another friend of Senatemajority leader Joe Bruno -- businessmanJohn Simoni, 74 -- to replace Hoblock, but accordingto the Albany Times-Union’s capitolbureau writer James M. Odato, Hoblock is notsure he wants to leave. He may have to, forin addition to Simoni it appears Pataki wouldlike Bernadette Castro, now Parks Commissioner,to replace Hoblock as chair of the racingboard as well as having Simoni serve.Racing commissioners in New York receive$101,600 a year, with the chair receiving$120,800. Board member Cheryl Buley willsurvive the changes, and is expected to bereappointed to another six-year term.Hoblock has been chairman for almostnine years, and his term does not expireuntil 2008.THE CHIEF VET SPEAKS OUTUsing some very strong language, the chief veterinarianin Kentucky, Dr. Gary Wilson, lashedout at the state’s racing authority last week, callingcurrent conditions “appalling” and saying thefunding and staffing crisis is so severe it puts thewelfare of horses racing in the state at risk. Wilsonapparently reached his boiling point after athoroughbred died of heat stroke at Turfway Parkin September, when a horse ambulance had nomedication or water to treat the animal. He wrotea letter asking, “Is the administration and KentuckyHorse Racing Authority committed to developinga program that sets industry standards,or are they interested in just getting by?”LaJuana Wilcher, whose Environmental and PublicProtection Cabinet oversees racing in Kentucky,and the woman who recommended Wilsonfor his job last summer, was not happy. She saidWilson might not appreciate the complicated processof state government, and called her staff “themost competent anywhere.” She said Kentuckyemploys more regulatory vets than ever. JimGallagher, executive director of the KentuckyHorse Racing Authority, said of Wilson’s remarks,“A lot of this is being blown a little bit outof proportion.”VERY BAD NEWS FROM BOSTONApparently taking his cue from the parent New YorkTimes, the sports editor of the Boston Globe, JoeSullivan, announced yesterday that the Globe wouldno longer publish entries and results from three offour tracks in Massachusetts -- HTA’s memberPlainridge Racecourse and Raynham and Wonderlanddog tracks -- and Rockingham Park in neighboringNew Hampshire. Sullivan said, “Interest indog racing and harness racing is no longer greatenough to warrant daily entries and results in thesports pages.” HTA has invited Sullivan to explainhow he measures that interest at the RacingCongress.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorSUPREME COURT ENDS NY TRYThe persistent effort of attorney Cornelius Murrayof Albany and Saratoga County Chamber of Commerceexecutive director Joseph Dalton to have expansionof gambling in New York state declaredunconstitutional ended yesterday, when the UnitedStates Supreme Court refused to hear the challenge.The high court’s action was a victory for governorGeorge Pataki and his colleague Senate presidentJoe Bruno. The court, by its action, ended the effortto prevent more Indian tribes from opening casinosin the state. Murray, who led the legal challenge,acknowledged defeat, saying, “The SupremeCourt’s refusal to hear this case effectively concludesthis aspect of the war against the spread ofcommercialized gambling in this state. There’s nowhereelse to go.” Shares in Empire Resorts, whichhopes to have a St. Regis Mohawk tribe casino atits Monticello Raceway, rose 69 cents, or 13.3 percent,to $5.89 in afternoon trading on the Nasdaqafter the Court’s announcement. Empire stock hastraded between $3.25 and $12.21 over the past year,and is down 47% since the year began.November 29, 2005POMPANO BACK, BEATS WILMAIt may not be nice to fool with Mother Nature, butPompano Park has tried it and survived. The trackreopens for live racing Friday, recovered andcleaned up in the aftermath of Hurricane Wilmathat devastated its stable area and other areas ofthe track. The tote system and teletimer infieldboard have been repaired, and last minute repairsare being made on the sound system in the backstretch.Lighting was checked out Monday nightand general manager Dick Feinberg reported testsworked fine. The Top of the Park restaurant onthe 6th floor will reopen Friday along with the restof the track, but the children’s playground area isclosed until new fencing arrives. The 4th floor boxseats and Players’ Room Buffet will not beready for the reopening, and the 2nd floor leadingto the track apron will be open air temporarily,its glass-etched doors having been destroyedby Wilma. Two 100-stall makeshiftbarns also are being constructed until new permanentbarns, destroyed in the hurricane, canbe rebuilt.In another New York development, the AlbanyTimes-Union reports that “the Patakiadminstration on Monday continued to pushfor the nomination of Parks CommissionerBernadette Castro as the new chairwomanof the Racing and Wagering Board, but theSenate seems to be resisting.” One possiblereason is that Joe Bruno apparently wantshis friend John B. Simoni, 74, to get thechairmanship. It now appears that MikeHoblock may have lost his bid to remain onthe board, and may be leaving soon. If hedoes, and either Castro or Simoni gets tochair the board, it would mean that the chairmanshipof the racing board of one ofAmerica’s most important racingstates would have no racing experienceat all.Also in Florida, at the Embassy Suites inDeerfield Beach, the nation’s harness racingsecretaries begin their three days of deliberationson Thursday. The gathering, held since1966, is used to set stakes schedules for thefollowing year and coordinate dates to minimizeconflicts as far as possible.HOW ABOUT A HELPING HAND?HTA’s editorial coordinator Jessica Carner isdeep in work compiling our 2006 World RacingDirectory, but could use a little more cooperationfrom our member tracks. You all have theforms, so please take a few minutes to fill themout and return them to Jess. We take greatpride in the Directory, and want to have thenew edition for the Racing Congress, soyour help will be appreciated.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorARE YOU SURE NOW, GEORGE?If our reports of the doings of Gov. GeorgePataki and his New York Assembly on the issueof the New York Racing and Wagering Boardhave seemed contradictory and confused, takesolace in the fact that Albany itself was hopelesslyconfused. What Pataki and Senate presidentJoe Bruno wanted and what they got apparentlyare two different things, but what theygot made a lot more sense than what theywanted. Bruno wanted a buddy, John Simoni, tobe put on the board and made chairman, and wasquoted as saying, “We have some confusion” atthe end of a long day of futile hustling. Patakiwanted Bernadette Castro, who once sold convertibledaybeds as her racing qualifications.Neither, it turns out, was appointed. Presentboard member Cheryl Buley, who although apurely political appointee when she was namedto the board to replace the veteran racing manBennett Liebman five years ago, did her homeworkwell, and at least knows which end the haygoes in and which end it comes out, now switchesjobs with Mike Hoblock, chairman for the lastseven years. Pataki spokesman SaleemCheeks, who was left to handle this mess withthe media, reported that “Mr. Hoblock has indicatedto us his desire to leave the Board andwe expect him to resign in the very near future.”That is not what Hoblock had to say about hisdemotion, however. He said he had been replacedas chairman but would stay on the board,calling the situation “circumstances beyond mycontrol.” Unlike most racing commissioners,Hoblock does not serve at the pleasure of thegovernor, and apparently is not interested inpleasing Pataki at the moment. Hoblock’s termdoes not expire until 2008, and we now will haveto see whether he or Saleem Cheeks is rightabout his plans. If he stays, the NewYork board will enter 2006 one membershort, as it has been since 2002.November 30, 2005BRUNO’S SON QUITS LOBBYINGIf you want to be a lobbyist when you grow up,it doesn’t hurt to have your father be the presidentof the state Senate. That has been thesituation in New York in recent years, whereKenneth Bruno, son of the legislature’s mostpowerful man, has operated as a successful lobbyist.His clients have included MadisonSquare Garden and Magna Entertainment, eachof which, according to Associated Press, paidhim $15,000 a month for his services. Theyounger Bruno had been district attorney ofRensselaer county, where he and his fatherlive. He resigned that job in May of 2003 tojoin one of Albany’s most successful lobbyingfirms, Wilson, Elser, Moskowitz, Edelman andDicker, and he stayed there until March of thisyear, when he left to open his own lobbying company,Albany Strategies. That move createdcontroversy and criticism of the father-son relationship,and Kenneth now says he plans toreturn to practicing law.SHAWN’S MOM LOSES AGAINVictoria Scott, mother of the well known promoterShawn Scott, has lost for a third time inher bid to open a gambling den in Alaska. Thelieutenant governor of Alaska, Loren Leman,denied certification for a ballot initiative thatwould have created a gambling monopoly for Ms.Scott in Anchorage. She was the main sponsorof the bill, and although Leman’s action marksthe third time this year the proposal has beenrejected, backers say they plan to try againwithin two months.C’MON, GIVE JESS A HANDIf you would like your 2006 HTA World RacingDirectory early next year, complete your informationforms (they’re somewhere on your desk) andreturn them to Jess Carner so she can completeher compilation of the valuable guide.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorYOUBET BUYING UNITED TOTEYoubet.com announced today it was buying UnitedTote for $49 million, and expected to close on theacquisition within the next 60 days. United,founded in 1959, supplies tote systems that handlemore than $7 billion a year, 90% of that amount inNorth America, where its more than 90 customersinclude the New York Racing Association andChurchill Downs. Youbet chairman, president andCEO Charles Champion called the purchase “anexcellent strategic and financial opportunity forYoubet,” which earlier this year acquired theCuracao rebate betting service International RacingGroup, and more recently was licensed by theOregon Racing Commission to operate a bettinghub through that state.TODAY’S TRIVIA QUESTIONIs Philadelphia big enough to hold the egos of bothDonald Trump and Pat Croce? The two announceda partnership yesterday, with local investors,which will seek one of Pennsylvania’s 14slot licenses in the city of brotherly love. Croce,former president of the Philadelphia 76ers, wascalled “a great guy with great vision” by Trump,and Croce, for his part of the lovefest, said, “I’mpsyched to work with the Donald and his new executiveteam.” Croce, a native Philadelphian, hasrounded up restaurateur Pete Ciarrocchi, ownerof the Chickie and Pete’s restaurant chain inPhiladelphia, and three members of the musicalgroup Boyz II Men, as partners. Slots are still ayear or so away in Pennsylvania, but at least theGaming Control Board got seven of them yesterdayfrom suppliers to play with in Harrisburg untilthe long wait ends. The Allegheny Institute forPublic Policy, meanwhile, says Pennsylvaniashould have auctioned off its licenses, rather thanselling them for $50 million each. It said the stateleft $2.1 billion on the table, basing itsnumbers on the $225 million sale of TheMeadows and the $280 million sale ofPocono Downs.December 1, 2005THEY’RE STILL AT IT IN FLORIDAThe Miami Herald reports today that a state representativewho was part of a $48,180 Canadianjunket paid by Gulfstream Park in July has beenadvised not to cooperate with a Senate investigation.The paper says the representative,Frank Farkas, who made the trip with three statesenators, including two who sit on the committeethat regulates parimutels, is refusing to cooperatewith an investigation ordered by thepresident of the Senate. His refusal is backedby the Speaker of the House, Allan Bense, whosaid through a spokesman that Farkas “is advisedto maintain the integrity of the Legislatureand independence of the two chambers.”Nothing changes under the sun.In what could be better Florida news, the Sun-Sentinel reports that Gov. Jeb Bush and Republicanlegislative leaders have decided not topress their plan to push for repeal of the citizeninitiative that cleared the way for slots at PompanoPark and Broward county’s three otherpari-mutuel operations. Rather than trying topersuade the legislature during next week’s specialsession to approve a repeal plan, Republicanleaders now think it is better to delay thatdebate until spring. The leader of the anti-slotmovement, Rep. Randy Johnson, had introduceda bill to repeal the slots during the special session,but the Sun-Sentinel says he now acknowledgesthat without support of the GOP leadershiphe has no chance of getting that done.TRY HTA; WE’LL SELL OUR ARTAnd do it legally, we might add. Sotheby’s announcedyesterday that it has withdrawn the 19paintings the New York Racing Assn. had hopedto sell after new Racing and Wagering Board chairwomanCheryl Buley said, “We remainunconvinced that this is an appropriate way toaddress NYRA’s fiscal situation.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorPOMPANO BACK, POST-WILMAPompano Park reopens for live racing tonight, sixweeks after being devastated by Hurricane Wilma.The poker room opened at noon, first post is 7:25,and admission and general parking are free. Thetrack will race Wednesdays, Fridays and Saturdaysand will be open seven days a week for simulcasting.SPECTOR STILL IN HUNTA federal judge has ruled, over objections of Mid-State Raceway, the parent of Vernon Downs, thatOneida Entertainment can stay in the race for thebeleaguered central New York harness track.Oneida, which is backed by a Connecticut assetmanagement company and Eric Spector, whobriefly was the track’s CEO. received only minimalvotes in a poll of shareholders, but the judgesaid it would be inappropriate to dismiss their reorganizationplans before a hearing on Dec. 16.The judge presumably will choose a winner in thecompetition on that date.In another development involving Jeff Gural andTioga Park, which would be tied into Vernon as acircuit under Gural’s plan, his Southern Tier Acquisitionand TrackPower closed on their financingdeal with Nevada Gold & Casinos, Inc. to formAmerican Racing and Entertainment. The twocompanies each contributed $1.5 million to AmericanRacing for membership interests in that group,which nominally will own and operate the track andracino at Tioga in Nichols, New York. Nevada Goldwill own a 50% interest, Southern Tier Acquisitiona 25% share, and TrackPower 25%. NevadaGold, under the agreement, will contribute $10million in new equity to American Racing, andAmerican Racing is seeking senior note financingfor $70 million to complete the buildout of TiogaDowns and Vernon Downs. If they don’tget Vernon, they will continue plans withTioga on a reduced scale of financing.December 2, 2005SCREWING IN A LIGHTBULBHow many racing organizations does it take toscrew in a lightbulb? At least three or more, ifyou’re talking about lighting up racing security.There is, of course, the existing combination ofThoroughbred Racing Protective Bureau and StandardbredInvestigative Services. Then there isthe Association of Racing Commissioners, whichwould like to get in on the act. And there is theNTRA, which hopes to finally get around to itsOffice of Wagering Integrity, which stumbled whenthe redhead first appointed to run it quit in shortorder, and Rudy Giuliani stepped in for a millionor so to consult and guide, and recommendedNTRA go forward with that idea. Racing lovesthis multiple approach to problems. It has twoseparate organizations of racing commissioners,so why not three security organizations? There iscomfort in numbers.GERTMENIAN THE LANDLORDIn the aftermath of the downfall of WayneGertmenian as leader of the Jockeys’ Guild, it turnsout that under the contract now abrogated the Guildhas been paying $4,000 a month to Gertmenian torent their own offices and an adjacent office forGertmenian’s one-man company, Matrix CapitalCorporation. The Guild’s lawyer, Barry Broad,called this “oppressive,” and the Guild has movedfrom Monrovia to Duarte, rented a 2,000-squarefoot office instead of Gertmenian’s 1,800-squarefeet, and costs $1,706 plus utilities instead of$4,000 a month. See what a PhD can do for you?SHAPIRO NEW CAL CHAIRMANCommissioner Richard Shapiro has been electedby his colleagues to take over as chairman of theCalifornia Horse Racing Board in 2006. It washis second vote of confidence in three months. OnSept. 1, he was confirmed by the California Senateby a 39-0 vote.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWILL SUN RISE IN FLORIDA?The Florida legislature reconvenes today in dayone of their five-day special session, and slots inBroward county will be one of their principal concerns.No one really knows what will happen betweentoday and Friday, and even Allan Solomon,executive vice president and general counsel ofIsle of Capri Casinos, which owns and operatesHTA member Pompano Park, isn’t certain. Hetold the South Florida Sun-Sentinel, “I’m notsure I can make the best wager on how all thisgets done.” Leaders in the House released a 44-page bill last Friday that would allow for Vegasstyleslots, but limits them to no more than 1,000per venue, with a 55% flat tax, proceeds thatwould by law be spent on education by the state.The Senate is considering a 45% tax rate andpossible sliding scale, which could help tracks byproviding a greater share in the first few years ofoperation. The House wants a minimum age of21, with 16 hours of play a day, year-round, and85% returned to players. The St. PetersburgTimes is predicting legislative approval. No oneis talking much about the threat of enabling legislationbeing passed this week and then havingit nullified by a statewide repeal vote next November,something Gov. Jeb Bush and the leaderof both houses support. When Dan Adkins of HollywoodGreyhounds was asked about it, he said,“The only way I can address that is that I’m in arace with blinkers on. I’ll deal with the next raceafter this one’s resolved.” Bush claims voters inFlorida didn’t know that in voting to allow slots inBroward county they also were opening the doorto expansion at seven Indian casinos in thatcounty and four others. The proposed tax rate,whether House or Senate version or a compromise,would be the highest in the country otherthan Rhode Island, which has a 61% rate, accordingto a Florida legislative staff report,that also says seven states allowingslots average 35% in taxes.December 5, 2005DECISION WEEK IN NY, TOOFlorida is not the only racing state with muchhanging in the balance this week. In NewYork, the New York Racing Association shouldknow by the end of the week if it will have tofile for Chapter 11 bankruptcy to continueoperating. President Charles Haywardshowed up in the Aqueduct press box Saturdayand told writers that if the association didnot get help from the state this week -- somethinghe will appeal for tomorrow beforeCarole Stone, chairwoman of the oversightpanel appointed by Gov. George Pataki -- itwas likely NYRA would file for bankruptcyprotection this month. Hayward said filingwould “give us a little room to breathe, and Ithink in terms of running the races, it shouldjust be business as usual.” Breathing time wasnot on the mind of Senate majority leader JoeBruno, however. He called for the NYRA franchiseto be awarded in the next six months,rather than waiting for it to expire at the endof 2007. “Let’s do it sooner rather than later,”he told Tom Precious of Blood-Horse.AND A DEADLINE IN MD, TOOActually, the deadline in Maryland was missed.The racing commission had given the MarylandJockey Club until last Thursday to reach agreementwith horsemen, but that date passed withoutsuccess. Now the issue hopefully can be resolvedbefore the commission’s next meeting a week fromtomorrow. Expense-sharing reportedly is the majorsticking point, with tracks wanting to be reimbursedfor expenses in producing the show.ARNEAULT, BLACK WANT MTRTed Arneault, CEO of MTR Gaming Group, andexecutive vice president Robert Blatt have extendeda takeover offer of some $258.4 million toshareholders of MTR Gaming Group. MTRshares rose $1.84, or 23%, closing at $9.73on the Nasdaq.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor December 6, 2005OIL AND STEROIDS DON’T MIXThe leading trainer in the Emirates Racing Associationfor the last two seasons has been suspendedfor four months after four of his seven winnerstested positive for the steroid bodenone.BloodHorse.com reports that Mazin Al Kurdi, whotrains some 120 horses, mostly for top ownerSheikh Rashid, will miss the remainder of the UAEracing season, which includes the Dubai InternationalRacing Carnival that starts on Jan. 19. Unlessthe suspension is reversed on appeal, Kurdiis down for presenting horses to race with bannedsubstances in their systems. We are not alone.IS THIS JUST POSTURING?That was the question asked yesterday by LeeWoodard, bankruptcy lawyer for Mid-State Raceway,the parent of Vernon Downs, after thehorsemen’s lawyer, Joe Faraldo, asked a bankruptcycourt judge to have Vernon reimburse them$9.6 million that Faraldo says the horsemen havelost since the track closed 16 months ago.Woodard said he was “shocked and dismayed” bythe move, and added that “I’m hopeful that this isnothing more than just posturing.” Faraldo said itwas done “to protect the horsemen.” Given theprecarious status of Vernon, and the money JeffGural and his associates have dumped into it inthe hope of reviving the track, a second questionbesides Woodard’s might be if the horsemen reallywant Vernon to return to racing. Certainlyhorsemen have lost money by Vernon being closed,but so has Mid-State Raceway, which is bankrupt.The track has not been licensed in New York, itsmajority shareholder Shawn Scott is not licensedin New York, and the overwhelming majority ofshareholders voted to have the Gural group takeover. Scott’s principal lawyer, Deborah Deitsch-Perez, has written a 42-page brief blasting the NewYork Racing and Wagering Board for not licensingScott, but board chairwoman Cheryl Buley saidthe board has no selective bias against Scott. “It’snot the board’s responsibility to make Shawn Scottlicensable. That’s Shawn Scott’s responsibility, andhe failed to meet those standards.” The board’shearing officer, Russell Baller, told the board thatScott had lied on his application and submittedfraudulent documents. Scott’s lawyer called them“minor errors.”55%: FLORIDA HOUSE FIRMThe Florida House is holding firm on its demandfor a 55% tax on Broward county slots. Afrustrated state senator Steve Geller saidof the House stance, “We can’t negotiatewith people who aren’t negotiating.”WE’RE NOT KIDDING, FOLKSIf you plan to race at the Racing Congress atBellagio in February, you had better get your stallapplication in now. You have only the rest of Decemberin which to make room reservations withCindy Knox in the HTA office. After the beginningof January our special room rate will not apply,and you will be on your own both as to rateand availability.Also, we’re again asking our action officers to respondto Jessica Carner’s request for Directoryinformation. We take great pride in this uniquebook, which we consider the most comprehensivedirectory in racing, but we need your cooperationto have it produced in time for the Congress. Youhave the forms. Please fill them out and return toJess. Or request new ones if you have lost thosesent to you.RACING SYMPOSIUM BEGINSThe annual University of Arizona Race Track IndustryProgram symposium gets underway in Tucsontoday. Harness folks spotted early includeChris McErlean of the Meadowlands, Ed Ryan ofScioto Downs, Conrad Sobkowiak of PoconoDowns, and Eric Sharbaugh, executive vicepresident of the USTA. We’ll bring you dailyhighlights here.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorHALLELUJAH! RCI, NAPRA JOINIt took 8 years, but the absurdity of two separateassociations of racing commissioners ended yesterdaywith the announcement that Racing CommissionersInternational and the North AmericanPari-Mutuel Regulators Association had votedunanimously to merge. Although the officialmerger date is January 1, the two groups said theyhave begun working as one immediately. PaulBowlinger, executive director of NAPRA, will becomeexecutive vice president of RCI. The splitbetween the two organizations occurred over salaryissues and other matters, and has taken thislong to heal. Ed Martin, president of RCI, whoseeks to fold racing security into the organization,said the merger will help that effort. First, however,RCI will have to figure out how to technologicallykeep all jurisdictions informed immediatelyof suspensions and penalties, something itdoes not do currently.AND THEN THERE IS FLORIDAIf there was good news on the racing commissionfront, there was none to report yet in Florida, wherethe House and Senate are toiling in special sessionto resolve the slots in Broward county issue.There has been no compromise so far. Here ishow the plans differ:HOUSE - Tax rate 55%, 1,000 slots at each facility,16 hours of operation a day.SENATE - Tax rate a sliding scale, starting at 35%up to $125 million, 40% between $125 and $250million, 45% between $250 and $500 million, andcapping at 55% on slots revenue over $500 million,with 2,000 slots at each facility and 16 hoursof operation a day. One senator, Republican BillPosey, obviously understands the issue. “If welimit the number of machines and set too high atax,” he said, “all we’ll do is kill what little goldengoose we have, if we overregulate.” Regardlessof outcome, slots are nine monthsaway, according to the Miami Herald.December 7, 2005DRUGS, THIS TIME IN INDIANAIllegal medication has raised its ugly head againto plague racing, this time in Indiana. A countyprosecutor has said the Indiana Horse RacingCommission waited for nearly two years to do anythingabout vials of suspicious drugs that wereseized at HTA member Hoosier Park. The incidentinvolved two women vets, one of whom turnedagainst another in her employ. The second wasarrested and charged with unregistered dispensingof a controlled substance, Dormosedan, a tranquilizer.The second vet was cleared, accordingto her attorney. Commission executive directorJoe Gorajec said some of the medication wasseized at Hoosier in November, 2003, but saidthe investigation was still ongoing. Hoosier Parkpresident and general manager Rick Moore expressedfull confidence in the commission, sayinghe was confident it would take swift action ifthe county prosecutor’s allegations proved valid.Horsemen contacted in Indiana sided with thesecond vet, some with uncomplimentary commentson the first.HELP MAY BE ON WAY IN NYThere may be a softening of position on the partof the rulers of New York concerning the New YorkRacing Association and its financial woes. Followinga three-hour meeting yesterday, a spokesmanfor Gov. George Pataki said the governor hasnot ruled out allowing NYRA to sell 80 parcels ofland near Aqueduct, or defer $32 million in tax andfee payments for the year, which is NYRA’s preferredsolution to its cash-flow problems. NYRApresident Charles Hayward said other new anddifferent options are being pursued, but would notgive details. He called the session between himself,other NYRA representatives and thegovernor’s NYRA Oversight Board “productive,with no conclusions.” He said NYRA eitherneeded to sell the land or find a “commensuratesolution.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor December 8, 2005A FLORIDA SLOTS DEAL? SOLUTIONS MAKE PROBLEMSProgress in Florida, with caution. House and Senateleaders, meeting in a five-day special session, merger success, he faces an interesting prob-While Martin deserves loud plaudits for hisstruck a deal yesterday to bring slots to HTA memberPompano Park and three other Broward terday in Tucson. In what he called “a dramaticlem in another major move he announced yes-county racing operations. The compromise calls move to fill a long discussed void and vulnerabilityfor the U.S. racing industry,” he said hisfor a 50% tax rate on net profits and 1,500 machinesfor each location, down from the 55% the board had voted to partner with technology suppliersfor independent monitoring systems to pro-House wanted on the tax rate and down from the2,000 machines and sliding tax rate the Senate vide a national monitoring service and databaseproposed. The machines could operate 16 hours for pari-mutuel wagering. The new entity willa day, and each track would pay a $3 million licensefee for regulation. The House and Senate will be a strategic partnership between RCI, ESIbe known as RCI Integrity Services, Inc. andare expected to vote today on the matter, and Integrity Inc. and Monitor Technology. Underone opponent of gaming, Rep. Marco Rubio, said, the plan, monitoring services will begin in the“I met with the Senate president Wednesday, and second quarter of 2006 with services to be providedto wagering system operators and regula-we have an agreement that I think both chamberscan support.” And then he added that the tors. Martin said, “It’s time to stop talking anddeal could fall apart if too many changes are made start doing. We have the talent, we have thewhen the House Fiscal Council discusses the expertise, and we have a desire to do somethingagreement today. “You just never know what everyone in the racing industry has said needshappens overnight,” Rubio said. The Senate’s to be done and do it right.” That’s a noble sentiment,but not answered is the question if RCIlead negotiator, Ken Pruitt, also sounded optimistic,saying, “We’re very close to a product has the money, or where it will get it.everybody can sign off on.” What happens nextNovember, when Gov. Jeb Bush wants to repealthe whole slots deal, is another matter, but theFlorida tracks are playing things one move at atime. Their next decision is whether a 50% taxrate, if that deal holds, is viable.MARTIN MAN OF THE YEAR?Ed Martin, who left the New York Racing andWagering Board to run Racing CommissionersInternational, has put Humpty Dumpty back togetheragain. Martin, working cooperatively withhis North American Pari-Mutuel Regulators Assn.(NAPRA) colleagues, announced in Tucson thisweek that after eight years of dual operation thetwo commissioners’ organizations aremerging. In a year without too many scintillatingperformances, this one deservesloud applause.There also is the question of what happens withthe integrity plans of the NTRA, which also hastalked about a national integrity program for severalyears. One solution might be to merge thosetwo plans, which could end the NTRA’s searchand provide funding at the same time, but nomention of that was made in RCI’s release.GREAT! WHO BELLS THE CAT?During yesterday’s Symposium sessions GregAvioli, exec VP of NTRA, addressing the issue ofthe World Trade Organization April 3 deadline forthe U.S. to comply with WTO commitments, saidthe best long term solution would be for the U.S.to authorize and regulate Internet gaming. Obviouslythe best solution. Now to bell thatdamn cat.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor December 9, 2005FLORIDA SLOTS, SORT OFThe Florida House passed Broward county’s slotbill yesterday, 110-8, and the Senate followed suit,approving the compromise measure 33-7. Gov.Jeb Bush says he will sign the bill, reluctantly. “It’snot going to feel good,” he said. “I just don’t thinkthis is right for our state....The fact that there’sgoing to be a bunch of slot machines in Browardcounty doesn’t warm my heart.” In fact, it chillshis heart enough that he still plans to seek repealof the voter’s wishes next November, and onestrong supporter of the measure, who knows racingbetter than all of his colleagues in the FloridaSenate, is alarmed. Senator Steven Geller, founderand president of the National Council of Legislatorsfrom Gaming States, said he is concerned thatthe bill contains a tax rate so high -- 50% -- that“we’re getting something up with the intent of failure.”Jim Horne, lobbyist for HTA member PompanoPark, said, “We’re not jumping for joy overit, but we’re glad to get a bill. Certainly the rate oftax, the amount of machines (1,500) has a dramaticeffect on our plans. All four venues are probablygoing to have to go back and revisit what theirplans were and see to what extent they have to bemodified to fit this kind of environment.”MORE ON RCI INTEGRITY IDEAYesterday, reporting on the announcement of RacingCommissioners International’s formation ofRCI Integrity Services, we asked where the groupwould get the money. Later in the day we foundout. Youbet.com and Scientific Games Corp. aregoing to foot the bill, at least initially. In laudingRCI president Ed Martin for merging RCI andNAPRA, we failed to do justice to NAPRA presidentPaul Bowlinger, who becomes executive VPof the new unified RCI. And behind the entirepackage and security effort are the major contributionstoward reconciliation and rebuildingby former RCI president LonniePowell.BAD NEWS FOR THE JOCKSL. Wayne Gertmenian is gone, but so, apparently,are much of the funds of the Jockeys’ Guild followinghis departure. The Guild released resultsof a preliminary financial review yesterday thatsaid Gertmenin and former COO Albert Fiss appearedto have “inappropriately” used $2.1 millionin Guild funds to cover daily operating costsand pay health insurance premiums, and that$442,000 earmarked for individual savings accountsapparently had been used to cover operatingcosts and medical expenses. The review,according to the Los Angeles Times, “suggestedan apparent pattern of increasing fiscal neglectextending for at least the past 18 months.” Ahealth fund account that is supposed to holdenough money to cover two and one-half monthsof claims is nearly depleted, the story said, withthe Oct. 30 balance of $6,029, down from$860,000 in April of 2004. Some utility bills andother obligations had not been paid in sixmonths, and various bank statements had notbeen reconciled in several months, according to thereport. Janet Patton, business writer for the LexingtonHerald-Leader in Kentucky, reported in herstory that more than $1.1 million that should havebeen set aside to cover health claims is missing.Patton wrote that although the Guild had movedquickly to stop payment on checks written the daybefore Gertmenian and Fiss were ousted, it had notmoved quickly enough. Four checks totaling$104,000 made out to Gertmenian’s Matrix Capitalwere stopped, but one made out for $69,000 toGertmenian and another for $44,000 to Fiss hadcleared the bank. The FBI now is investigating thediscrepancies.MTR BUYS JACKSON RACEWAYMTR Gaming, through its Jackson Racing Inc.subsidiary, has bought 90% of Jackson Racewayfrom Dan Rakietin and his motherNan.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFLORIDA: SIX MONTHS, MAYBEThe Florida Division of Pari-Mutuel Wagering hassix months to produce rules for slots in Browardcounty, now that the legislature has finally signedoff on the bill and Gov. Jeb Bush says he will signit, reluctantly. But at least one authority on thesubject is skeptical. Florida senator Steve Geller,founder and president of the National Council ofLegislators from Gaming States, says he expectsBush to make the rule-making process as difficultas possible for the pari-mutuel operations.“The governor’s already said he’d try to throwup all the regulatory roadblocks he can,” Gellertold the South Florida Sun-Sentinel. A spokesmanfor Bush told the paper that Bush wouldnot be involved in preparation of the rules. Bushhimself said, “I’d rather be creating jobs in wayspeople’s lives are improved, but the voters didvote for this.” Those voters apparently thinkgambling is one of the pleasures of life and doesimprove it in a country where grimness has becomecommonplace. Dan Adkins of HollywoodGreyhound, who has been speaking for theBroward tracks through all this mess, is an optimist.“I’m not concerned,” he says. “I thinkthere will be a good-faith effort.” We hopeyou’re right, Doug.The entire Florida racing bill is online on thehome page of our HTA Web site, for those whomay wish to download and peruse it.IN MAINE, VINDICATIONIt is rare when a newspaper gives gambling thebenefit of the doubt, but the Bangor News didover the weekend when it acknowledged thatthe promises of slots as a possible salvationfor Maine’s harness racing industry and othersocial, cultural and educational needs are beingfulfilled. The paper said that official figuresshow that in the first five weeks ofoperation, the slots in Bangor have generated$775,000 for the 10 beneficiariesspelled out in the slots law.December 12, 2005Under the Maine formula, Hollywood Slots -- thename Penn National Gaming gave its operation --pays 1% of total slots wagering to the state. Eightninepercent is returned to players. Of the remaining10%, 39% goes to the state for distributionamong the 10 beneficiaries, 10% goes to supplementpurses, and 3% goes to the Maine SireStakes. The executive director of the Maine HarnessRacing Commission, Henry Jackson, says heexpects purses will rise from $1.3 million in 2004to $2.1 million next year.FAIL SAFES ARE JUST THATOr at least that’s what they are supposed to be.The New York Times has a big story today onYonkers Raceway continuing to receive paymentsfrom New York City OTB even though there isno live racing at Yonkers. OTB chairman DavidCornstein called it a disgrace. Bob Galterio, Yonkers’general manager, saw it a bit differently.“I’m not arguing that it’s right or wrong,” he said.“I’m just arguing that they have a responsibilityto pay.” The original legislation that created thesituation was a fail safe arrangement under whichOTB was given the right to broadcast fewer racesfrom Yonkers and Monticello but in return forbringing in simulcast signals from thoroughbredtracks around the country, but continue to paythe tracks the same amount as previously. In arare display of courage on the part of a legislatureon a gambling matter, state senator NicholasA. Spano defended his actions against critics.Spano noted that Yonkers Raceway was one ofthe city’s largest employers, and said, “I will continueto work as hard as I can to make sure thetrack remains economically viable. I am proudof the fact that they think I am the protector ofYonkers Raceway, because in fact I am.” Manof the Year material.If you haven’t already sent your room reservationsfor the Bellagio, or your HTA Directoryinformation, please do so.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorDAYS OF DECISION AT VERNONThe first of two days of hearings got underwaytoday on the fate of Vernon Downs, with the secondscheduled for Friday. The bankruptcy judgewho has been handling the contentious issue willlisten to more testimony today, then again on Friday,and presumably will announce then who getsthe track, the Jeff Gural group or one fronted byEric Spector of California, who ran Vernon for ashort time earlier in the proceedings. The judgemust determine, under federal bankruptcy law,that the successful applicant meets 13 criteria,including having creditors support the plan, goodfaith intent, and assurances that the plan won’tlead to another bankruptcy. Gural, who receivedheavy creditor support, wants to link Vernon andhis fledgling Tioga Downs meeting as a centralNew York racing circuit.PR THAT GARNERS SPACELuc Ouellette is one of harness racing’s greatestdrivers, but he is far more than that. He consistentlyhas championed charitable causes, workingwith various groups and on his own. Thisweek his latest initiative gained exceptionallypositive space for harness racing in the toughto-crackToronto Star. Ouellette rounded upWoodbine’s leading drivers, including ChrisChristoforou, Rick Zeron and Paul MacDonnell,then added Jody Jamieson, Phil Hudon and redhot Mark MacDonald to the mix, getting themto donate their driving fees for one night to theJim Proudfoot corner of the newspaper’s SantaClaus Fund, which for 100 years has been providinggift boxes to kids at Christmas. Some45,000 will be handed out this year. Proudfootwas a widely read sports columnist for the Star,and today’s story on contributions to his fundincluded not only the Woodbine drivers but alist of other contributors from the worldof Woodbine Racing. Good stuff, thebest possible kind of PR.December 13, 2005ELECTRONIC PROP BETSRacing hasn’t adopted much in the way of propositionbetting, but Las Vegas is moving forwardwith technology geared to that end. The WallStreet Journal reported last Friday on a systemcalled Rapid Bet Live, which allows gamblersto bet on individual plays throughout a game.As the Journal’s Peter Sanders put it, “Gamblerswatching an Indianapolis Colts game inVegas may have a hunch that, on the next play,Peyton Manning will throw a long bomb to receiverMarvin Harrison for a touchdown. Butright now there is nothing they can do about it -- casino sports books don’t accept bets on individualplays.” The Palms Hotel and Casino saysit is in final negotiations to test Rapid Bet Live’stouch screen kiosks which will enable them tobet on scoring, punts, whatever. A companycalled Progressive Gaming International hasdeveloped the system, one more move linkingVegas with technology.GOODRICH LEAVES ARLINGTONCliff Goodrich has announced he is leaving hispresidency of Arlington Park to take it easy andspend a little happy time with his family.Goodrich, 62, told Daily Racing Form, “Sometimes,it got to the point where I really felt I haddone as much as I could do. We had a brand newgranddaughter, and I asked, ‘Do I really need towork this hard?’ He answered no, and ends anactive racing management career that included19 years at Santa Anita Park as president andCOO and 3 years at Arlington.D-DAY IN MARYLAND TODAYThe Maryland Racing Commission meets today,a week after its deadline demand on an agreementbetween management and horsemen passed withoutresolution. Commissioner John Franzone saidthe commission could “beat up an industry thatalready is in dire straits,” but he preferredreasoning.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMORE FOOT-DRAGGING IN KYKentucky’s thoroughbred horsemen and their veterinarianswere still battling reform and progressyesterday, but thanks to a legislator who recognizedtheir ploy the commonwealth’s new drug ruleswere passed by the legislature’s AdministrativeRegulation Review Subcommittee and moves onto House and Senate committees. The horsemenand vets and their lawyer tried to block passage,but a motion by Rep. Jim Bruce, a HopkinsvilleDemocrat, brought quick passage. Bruce said hemade the motion because he believes the opponentsof the regulation are a vocal minority whowouldn’t accept anything. The horsemen’s andvets’ attorney called the victory “just round one,”indicating the fight is not over. In a strange development,the executive director of the Racing Authority,Jim Gallagher, apparently made an offerto put off consideration of the rule for a month, amove that happily Rep. Bruce’s successful motionmade moot. Gallagher called the passage “a goodday for Kentucky,” but still looming are threebanamine positives during the fall Grand Circuitmeeting that have drawn no action for 60 days. Apositive sign on the legislation was a statement byDarrell Haire, interim national manager of theJockeys’ Guild, who supported the new rules, sayingsome pre-race medications can mask physicalproblems in horses and jockeys “need to know whatthey have beneath them.”ANABOLIC STEROIDS IN NEWSThe American Association of Equine Practitioners’Task Force on Medication has recommendedthe banning of anabolic steroids inhorses being sold at public auctions. The recommendationprovides that in addition, no stimulants,muscle relaxants or diuretics should beallowed at any detectable level in sale horses,with sales companies to be the “principleenforcers.” More will be heard aboutsteroids in coming months.December 14, 2005SWEDEN, TEXAS, YOU NAME ITBreaking of rules, or legislation to prevent it, is inthe holiday air. In Texas, the racing commissionhas adopted a milkshake rule, setting 38 millimolesof carbon dioxide per liter of plasma as the cutoffpoint. Over that would be a violation which wouldbring a $1,000 fine and 30-day suspension for thefirst offense, a $2,500 fine and 90-day suspensionfor a second, and a $5,000 fine and one-year suspensionfor a third. All of the penalties includeloss of purse money, with testing random, pre orpost race. The rule will become effective nextmonth.In Sweden, the Swedish Trotting Association confiscatedthe license of trainer Michael Demmers,conditioner of the $800,000 winner Vasterbo Daylight,according to The Harness Edge. Demmershas been fined more than $45,000 for false breedingreports, and a Ms. Kathrin Biderman has beenfined $30,000 for signing false mating certificates.Demmers plans to appeal, saying he doesn’t thinkhis training license should be linked to his breedingoperations.COMPROMISE IN MARYLANDThoroughbred horsemen and management havereached an accord in Maryland, with both sidesgiving a little in a compromise that headed offcommission action. Magna’s Maryland JockeyClub will conduct 180 days of racing next yearand keep stable areas open at Pimlico, Laureland Bowie for all of 2006. According to the WashingtonPost, there still is disagreement on howmuch horsemen, including breeders, should contributeto the cost of satellite and simulcast operations.Magna has submitted a proposal to thehorsemen’s leadership, and the board of theMaryland Thoroughbred Horsemen’s Assn. isexpected to review and respond by next week.With a tentative agreement in place, the commissionapproved Jan. 1 - April 16 winterdates for Laurel.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorQUEBEC PRIVATIZES TRACKSThe long-expected hammer fell yesterday in Quebec,where the Minister of Finance, Michal Audet,announced the transfer of management of theprovince’s four racetracks to private ownership.Winner in the competition is AttractionsHippiques Quebec, owned by Senator PaulMassicotte, currently attending the World TradeOrganization summit meeting in Hong Kong.Under the transfer, $100 million will be spent onrelocating Hippodrome de Montreal from itspresent in-city location to the northern suburbanring surrounding Montreal. Purses will receive$153 million over five years, raising them from$17 million to $25 million in the first year of theagreement, and increasing them each year afterthat to $35 million in the fifth year. Another $5million a year will be allocated to promotion andmarketing of the racing industry in the province.No mention of the fate of SONACC, which hasrun racing in the province, was made, butSONACC’s chairman, Gilles Dubreuil, a memberof the independent committee that workedout the transition plan, said, “Thanks to today’sdecision, the entire horse racing industry, whichemploys 3,000 people in Quebec’s regions, willbenefit from the injection of these new investments.”The Minister of Finance added that theagreement met the government’s objective ofdoing everything possible to secure the long-termviability of the racing industry in Quebec, and theinfusion of purse money could signal a new erafor harness racing in the province. The minister,Michal Audet, will determine the role ofSONACC in the reorganization. Massicotte, amember of the Liberal Party of Canada, is in additionto his senatorial duties the president andCEO of Alexis Nihon Real Estate InvestmentTrust and a board member of a number of civicgroups in the Montreal area. An accountant,he was lead director of the Board ofDirectors of the Bank of Canada.December 15, 2005He also has been a major real estate developer inMontreal. A rival bidder for the tracks of Quebec,Remstar corporation, filed for the tracks ofQuebec, Remstar corporation, filed for a temporaryinjunction blocking the government’s announcement,but a Quebec Superior Court judgedenied that request. Andre Marier, a former presidentof Blue Bonnets, the predecessor of Hippodromede Montreal, is associated with the Remstargroup.DISSENT REARS ITS UGLY HEADMore troubles all over the map:In Massachusetts, Raynham/Taunton dog trackowner George Carney stormed out of the StateHouse summit meeting with other track owners, justweeks before a looming legislative deadline thatthreatens Massachusetts racing. Carney wantsexpanded simulcasting at his Brockton Fair. Thethree other track owners in the state want a rollover of the current law. Plainridge president andHTA director Gary Piontkowski said of Carney’scarnage, “What you have here is a singleperson...stopping a billion dollar industry.”In Illinois, the Illinois Harness Horsemen’s Associationand Balmoral and Maywood Park managementhave been meeting on contract negotiations,but despite exchange of various proposals an impasseis reported and no compromise has beenreached.In Utica, New York, a federal bankruptcy judge hasscheduled final hearings tomorrow morning at 9 a.m.to determine whether Jeff Gural and his NevadaGold backers of Vernon Downs Acquisition, or EricSpector’s Oneida Entertainment and his PlainfieldAsset Management of Connecticut, get VernonDowns. Mid-State Raceway, the track’s parent,paid $107,000 in county taxes today, forestallingpossible foreclosure proceedings.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorHTA’S NOVA WINNERS OF 2005The racing secretaries of Harness Tracks ofAmerica’s 41 members have chosen their 12 divisionalchampions of 2005, whose owners willbe presented with bronze Novas at Bellagio inLas Vegas during the Racing Congress onWednesday, Feb. 8. The winners are:2-year-old pacing colt: Jereme’s Jet, winner of$1,039,376 and 6 of 7 starts, owned by JoleneLeahy’s Genesis Racing Stable, Plainfield, IL.2-year-old pacing filly: Darlin’s Delight, winnerof $560,404 and 9 races, and first or second inall 14 starts, owned by Joseph Parisi’s WhiteBirch Farm, Allentown, NJ.3-year-old pacing colt: Rocknroll Hanover, winnerof $2,223,257 and 12 races, and first, secondor third in all 18 starts, owned by Jeffrey S.Snyder, New York City; Phyllis Campbell’sLothlorien Equestrian Centre, Mississauga,Ontario; and William J. Perretti, Cream Ridge,NJ.3-year-old pacing filly: Cabrini Hanover, winnerof $917,440 and 8 races, and first, second orthird in all 18 starts, owned by David S. Willmot,King City, Ontario, and Bob M. Anderson, St.Thomas, Ontario.Older male pacer: Boulder Creek, winner of$978,645 and first, second or third in 15 of 25starts, owned by Clifford D. Siegel, Staten Island,NY; Lee S. Wasserman, Brooklyn, NY;and John A. Fodera, Staten Island, NY.Pacing mare: Loyal Opposition, winner of$673,525 and 14 of 20 races, owned byDaniel Waxman, Ancaster, Ontario.December 16, 20052-year-old trotting colt: Chocolatier, winner of$508,250 and 8 of 10 races, owned by Doug andAda Jean Ackerman’s Doug Ackerman Stables,LaPorte, IN.2-year-old trotting filly: Passionate Glide, winnerof $638,947 and first or second in 10 of 11races, owned by George Segal’s Brittany Farms,Versailles, KY.3-year-old trotting colt: Vivid Photo, winner of$1,481,020 and first or second in 21 of 25 races,owned by Roger R. Hammer, Bedford, PA, andTodd M. Schadel, Gratz, PA.3-year-old trotting filly: Blur, winner of $867,453and 7 of 12 races, owned by Barry Goldstein,Hewlett, NY.Older male trotter: Hellava Hush, winner of$522,720 and first, second or third in 15 of 21races, owned by Joseph Chnapko, Livingston,NJ.Trotting mare: Peaceful Way, winner of$660,804 and 9 of 10 races, owned by Josephand Barbara Myers, Jamesville, VA; Sam A.Goldband, Toronto, Ontario; Marvin Katz,Toronto, Ontario; Al Libfeld, Pickering, Ontario;Linda Ann Worrell, Warrington, PA; David S.Tingley, Guelph, Ontario; and Angie M. Stiller,Arva, Ontario.ARE YOU ON THIS LIST?Cindy Knox has no room reservations for Bellagiofor the following tracks: Batavia, Buffalo, CalExpo, Hippodrome de Montreal, Lebanon, NewYork City OTB, Northville, Northville RacingCorp., Plainridge, Red Mile, Rockingham,Rosecroft, Saratoga, Suffolk OTB and WesternFair. Happy New Year, but after Jan. 1 ourspecial rate expires.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor December 19, 2005DO THEY KNOW, OR CARE?The U.S. Harness Writers have announced somerecipients of their Dan Patch awards over theweekend, and their winners include Mr.Muscleman, trained by Noel Daley, who is undersix-month suspension for the use of illegal medication.HTA will not honor the horse or its owneror trainer with its Nova award, pursuant to our associationpolicy of not presenting awards to ownersof horses trained by trainers under suspension,or by their second trainers acting as “suspension”trainers. To do so and talk or write aboutintegrity seems an anomaly.LAYOFFS IN MASSACHUSETTS?Internecine warfare in Massachusetts, with onetrack operator endangering all others with his refusalto reason or negotiate, has brought threatsof layoffs for hundreds of track employees nextmonth. In the face of what the Boston Heraldcalls “a fierce battle over an extension of lucrativesimulcasting laws,” Wonderland Dog Trackand Suffolk Downs are preparing letters, to besent out after Christmas, informing employeesof imminent layoffs unless the simulcasting disputeis resolved. It does not appear to be an idlethreat or bluff. HTA’s Plainridge Racecourse isholding off on letters, but said it would have topink slip 130 employees if a simulcast deal cannotbe cut. The current law expires Dec. 31, andits renewal has been stymied by George Carney,owner of the Raynham/Taunton dog track, whoclaims the current simulcasting laws are unfairto his track. Carney calls his obstinance “a matterof principle” and complains that the otherthree track owners “are trying to make it looklike I am the bad guy.” He is able to forestallrenewal of the simulcasting laws because of legislativerules that require unanimous consentfor any bill to be passed in “informalsession.” The legislature does notreconvene officially until January.Plainridge, Suffolk Downs and Wonderland calledon the legislature Friday to correct the situation,calling Carney’s move “special interest legislation”that would unfairly impact their three tracks.Their letter to legislators noted that their tracks“already are facing financial difficulties from decliningrevenues as a result of billions of Massachusettsdollars that are annually flooding over theborder to Connecticut, Rhode Island and nowMaine.” The House Ways and Means Committeeendorsed an extension of the current simulcastinglegislation Dec. 14, but legislation introducedby Rep. David Flynn on Carney’s behalfthrew a monkey wrench into the proceedings.President Richard Dalton of Wonderland said,“It’s outrageous that one man could cavalierly putthousands of people out of work.”NO DECISION YET ON VERNONAfter a day of tough questioning of prospectiveowner Jeff Gural by a lawyer for a rival group, thehearing on the future of Vernon Downs was continueduntil after Christmas, resuming Wednesday,Dec. 28. Gural acknowledged to the lawyer that hedid not have $70 million to reopen Vernon and openhis Tioga Park, and get their racinos operating, buthe pointed out that he did have a commitment for a$15 million temporary loan that could get Vernonunderway, since some $45 million of Vernon debtwould not come up for a year under his plan. Hetold his questioner, “A year from now this casino isgoing to be up and running, and I would expect itwon’t be very difficult to get that money. We allthink Vernon Downs is going to be a success. Yourclient wouldn’t be here if they didn’t think so.” Guralsays he plans on racing in the spring, and that hehas broken off talks with the current horsemen’sassociation after their attorney, Joe Faraldo, fileda suit demanding $9.5 million reimbursement forlost purses. “If the horsemen want to keep mediocreracing, if they want to keep Vernon Downsthe way it is, I guess they have to hope I don’tget Vernon Downs,” Gural said.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWOODBINE SAYS NO TO IRGWoodbine Entertainment Group, restating its viewson non-racetrack rebate operations, has deniedInternational Racing Group access to pools hostedby Woodbine, the major racing circuit in Canada.David Willmot, chairman and CEO of WEG, saidof the decision, “We, as an industry, cannot affordto continue to legitimize these non-racetrack rebateoperations. Our long term success dependson a significant reinvestment in the racing industrywhich is something that these organizations donot deliver.” Woodbine’s announcement yesterdaysaid, “The racing business relies on substantialcontributions from wagering revenues to fundbreeding programs, purses and overall infrastructure.Non-racetrack rebate operators are not contributingenough to achieve these objectives, evenwith their claims of generating increased handle.”The action is not Woodbine’s first attempt to shutrebaters out of Woodbine pools. WEG stoppedselling to similar operators in early 2004 after trackcustomers were actively solicited by some rebateoperators. Steve Mitchell, senior VP and chief financialofficer of WEG, said the effect on handlefrom barring the rebaters “has been inconsequential.We have been able to recoup that lost handleand more.”HELP FOR A LEGENDARY LOVERNot Viagra, but a painkiller, and an illegal one --Flunixin -- at that. The Harness Edge reports thatformer U.S. trotting star Legendary Lover K, a$1.75 million winner, tested positive for Flunixin inDenmark following a race at the Charlottenlundtrack in Copenhagen. The positive is the first inDenmark in several years, and is embarrassing becausethe trotter’s co-owner is Knud Erik Ravn,president of the Danish Trotting Association. Thehorse was given high doses of Flunixin in Septemberafter a much publicized encounter witha heifer, but none recently, according to histrainer.December 20, 20058 POSITIVES AND YOU’RE OUTWell, out for half a year, anyway. Illinois turnedup eight positives from winners sent out by trainerKen Rucker at Balmoral in October and earlyNovember, and sent Rucker to the sidelines for180 days. His winners all showed Indomethacin, apowerful painkiller also known as Indocin. Ruckeris third nationally in wins among trainers, and sixthin money-earnings. On the thoroughbred front,the New York Racing and Wagering Board suspendedtop trainer Todd Pletcher for 45 days andfined him $3,000, and an appeal was rejected by ahearing officer. Mepivacaine, a local anesthetic,was the villain here. Pletcher leads the nation inmoney winnings and is a candidate for an Eclipseaward. How about a Rucker-Pletcher-Noel Daleytri?A TOOTHLESS TIGER IN KY?If you can’t stop them one way, try another. Thestaff of Kentucky’s Legislative Research Commissionnow takes the stance that Kentucky law doesnot give the Kentucky Racing Authority the powerto fine violators of its proposed drug rules. TheAuthority plans to go to the legislature, which convenesnext month and will be in session throughApril, and ask for specific language authorizingfines and penalties. If they don’t get it, they mightas well go home and play golf, and let horsemenand vets run racing in the Bluegrass.PERSONNEL CHANGESExecutive vice president Steve Molnar has leftYoubet.com.....Nick Salvi is the new racing secretaryat Pompano Park....Art Manuel, former generalmanager of Pocono Downs, has been namedto the Pennsylvania Harness Racing Commission,effective immediately. He replaces Ed Rogers,who resigned after 10 years to race his own harnesshorses, and will be missed on thecommission....Glenn Cademartori has left theMeadowlands, where he was director of marketingand development.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorBRUNO CALLS FOR BAILOUTJoe Bruno, majority leader of the New York Senateand a man who usually gets his way, has calledfor a $30 million bailout of the economically distressedNew York Racing Association. Bruno proposesan immediate $7 million advance to the oversightboard appointed by Gov. George Pataki tohelp straighten out New York racing, and another$23 million for subsequent use in revitalizingNYRA. The money would come from the statebudget and apply only until NYRA gets slots, hopefullyby next fall. Bruno, who in the past has calledfor quick privatization of NYRA, now says in aletter to Pataki, “It is urgent that the state act immediatelyto implement a plan which will ensurethe continuity of world class thoroughbred racingin the state, secure the livelihood of all individualsinvolved with the industry, enhance the economicbenefits derived from thoroughbred racing andrestructure the industry to assure its viability andcompetitiveness in future years.” It seems clearthat “racing” to Bruno, whose district includesSaratoga Racetrack (and Saratoga Gaming andRaceway) means only thoroughbred racing, andhe rejected the use of “bailout,” although that isprecisely what his proposal is. He said NYRAwould need to repay the money.“A STAIN ON THE INDUSTRY”That was the contemptuous appraisal of the EmeraldCasino in Chicago of Rosemont yesterday,as the Illinois Gaming Board voted unanimously,5 to 0, to revoke its license. The action followed aruling by former Judge Abner Mikva saying Emeralddid not deserve the license. A board member,Charles Gardner, said, “The record is clear -- is it replete with deceit, misdirection, dissembly,lies and untruths.” It is now eight years since thisbattle started, and Emerald indicated it would a p -peal to the Court of Appeals. Look foranother two to five years of hassling.Following yesterday’s revocation, Isle ofDecember 21, 2005Capri, which had been awarded the license earlier,had this to say: “Nothing in the GamingBoard’s finding involves Isle of Capri. We wereinvited to participate in a fair and open auctionprocess and, unfortunately, two years later we findourselves caught in the middle of issues that predatedour participation in the auction. Isle ofCapri’s financial condition is strong -- just as it wasat the time of the Rosemont application. And Isleand its officers have one of the best regulatoryrecords in the gaming industry.” Isle of Capri ownsHTA member Pompano Park in Pompano Beach,Florida.PENN NAT’L WANTS VALLEYPenn National Gaming, which was forced to sellits Pocono Downs holding to Mohegan Sun a yearago because Pennsylvania law prohibits an entityowning two tracks for racino purposes, now wantsa trackless casino outside of Allentown, wherePocono maintains an OTB site. Penn National canown up to one third of another gambling location,and has a potential partner in the Allentown venturein UCH Venture Capital.TIME RUNNING OUT IN MASSThe simulcasting situation in Massachusetts isnearing its year-end deadline, with three trackoperators held virtual hostage by the fourth,Raynham/Taunton boss George Carney. No decisionas of the moment.RIGHT CHURCH, WRONG PEWYesterday’s newsletter had veteran racing officialSteve Molnar leaving his post as executive VP ofYoubet.com. Steve worked for Youbet four or fiveyears ago, but the job he has left now is executiveVP at United Tote, soon to be a wholly owned subsidiaryof Youbet.com. We had the right churchbut the wrong pew, and hope Steve lands inanother high racing job soon.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMARYLAND STILL IN MUDDLEMaryland’s war between the states, or at leastbetween the main parties, continues. The MarylandThoroughbred Horsemen’s Association rejectedthe latest compromise from Magna Entertainment,which owns Laurel Park and PimlicoRace Course, leaving the dates situation in Marylandfor 2006 still unresolved. Magna had proposed180 days of live racing, year-round stablingand a request for contributions to help cover operatingexpenses. The horsemen accepted the 180days, but not the dates. They want local racing inMaryland during the summer, while Magna prefersto keep its tracks closed then because of primeseasons at competing tracks in surrounding states.The horsemen also agreed to contributions to expenses,but not the plan presented by Magna.Richard Hoffberger, president of the Marylandhorsemen’s association, took an optimistic view,saying, “We’re not in agreement, but we’re agreeingto continue to talk and that is a good thing.We did approve the continuation of simulcasting,which could have been a huge problem for tracks,the breeders and the horsemen if not approved.The world isn’t going to blow up on Jan. 2 or 3because we don’t have a deal. There are difficultdecisions to be made by all parties.” The chairmanof the racing commission, John Franzone, alsosounded optimistic, saying, “Let’s focus on a businessplan for Magna. There is no burning fire toget this deal done. Even the racetrack seems tobe taking a ‘let’s see what happens’ approach.”That attitude was a pleasant change from earliercommission threats to resolve the issue unilaterally.POST XMAS SESSION IN ILHarness horsemen in Illinois, still wrapped in controversywith the management of Balmoral andMaywood Parks, have called a meeting oftheir Illinois Harness Horsemen’s Associationfor Dec. 27 to discuss current negotiations.December 22, 2005ISLE IN DEAL WITH PENGUINSIsle of Capri, still stymied in its quest to open acasino in Chicago, has switched gears and destinations.The company announced today it hassigned a joint development agreement with theLemieux Group, owners of the Pittsburgh Penguinsof the National Hockey League, to fund a newmulti-use area and pursue a Pennsylvania gaminglicense in Pittsburgh. Isle president and CEOsaid the proposed arena “will become the bestentertainment venue in the region, and keep thePenguins in Pittsburgh. If awarded a gaming license,Isle said it would begin the construction phase inearly 2007. The Pittsburgh Tribune-Review reportsthat at least four other groups, including AlcoParking and MTR Gaming, are considering includingmoney for an arena in their slots proposals.IT’S XMAS, AND ELLIOTT STAYSStewart Elliott, the jockey of Smarty Jones whofaced deportation for a 2001 aggravated assaultcharge, has been spared. An immigration judge inNewark, NJ, provided a waiver yesterday allowingElliott to stay. The judge said Elliott’s celebritydid not affect his decision. Okay, judge, if yousay so. After all, Elliott only used a beer bottle, apool cue and a wooden stool in beating a friendinto senselessness. Elliott was ordered to serve ayear of probation, pay the victim, AlexanderKovalik, $13,900 in hospital bills and $50,000 tosettle a civil lawsuit. Lucky Kovalik was a friend;think of what Elliott may have done if he was anenemy.AWARDS AND REWARDSDr. David Reid, chairman and CEO of progressiveHorse Racing Alberta, is the recipient ofCanada’s Cam Fella award for meritorious serviceto Canadian harness racing. The Harness HorseYouth Foundation has recognized Brittany Farms,which provides off-season homes for its pony racers;Living Color Cabinetry, for providing trunks;Jim Taylor, for trucking the ponies 14,000 mileson their youth driving tour; and Ellen Harvey ofHarness Racing Communications, a facilitatorfor much of HHYF’s needs and efforts.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorGOOD NEWS FOR GURAL GROUPFederal bankruptcy judge Steve Gerling ruled yesterdaythat there was no “ulterior motive” thatwould invalidate the agreement between Jeff Guraland his financial backers, and a Mid-State Racewaylawyer said the decision effectively ends anychances of Eric Spector’s Oneida Entertainmentgroup taking over Vernon Downs. “With this decisionin place,” it says Oneida Entertainmentcan’t do anything further.”Spector disagreed, saying his group thinks thereare a variety of ways it can continue pursuing thetrack, and they would do so when the bankruptcyhearing resumes next Wednesday. Gural’s planwon overwhelming support from creditors andstockholders, and the matter hopefully will be concludedthis coming week as a belated Christmasgift for Vernon and its horsemen.FARALDO ACCUSES YONKERSJoe Faraldo, busy trying to derail the Vernonproceedings by asking for $9.5 million in lostpurses from a bankrupt company, now hasturned his attention to Yonkers Raceway, accusingthe track of being “intentionally misleading”in its target of an April 1 reopeningdate. Yonkers has been dark six months whileconstruction continues on its racino, andFaraldo now says of the April 1 date, “I don’tbelieve it. And furthermore, I don’t believethe racetrack was candid with us from the beginningof this entire process.” Bob Galterio,Yonkers general manager, told Dave Little ofthe New York Daily News, “We had lawsuitissues with the city of Yonkers over what theythought was a flawed environmental study.Then we had to close on our $230 million loanwith Merrill Lynch, who then had to syn- dicatethe loan. All of that took a monthand a half. Does that sound unreasonableto you?”December 23, 2005CURRIER & IVES TO CONGRESSThe Harness Racing Museum and Hall ofFame’s traveling Currier & Ives exhibit willget an exclusive showing the first week ofApril, in the halls of Congress. With persistentand untiring work by Museum curatorGail Cunard, strong senatorial help fromSenators Hilary Clinton and Lincoln Chaffee,and the good offices of Jay Hickey’s AmericanHorse Council, the exhibit of Currier &Ives trotting prints will be shown in the Rotundaof the Russell Senate Office Buildingfrom April 2 through 7. The dates coincidewith the American Horse Council conventionin Washington, offering conventioneers an opportunityto see American sporting history ina truly historic setting.NO MERRY XMAS AT WINDSORThere is no holiday cheer at Windsor Raceway.The union representing hotel and restaurantworkers at the track, UNITE HERE, reportsthat management will lay off dozens of employeesindefinitely by Feb. 12, and 10 more, includingfive bartenders and five program and admissionsstaff, will be terminated with no chance ofrecall. Calls by the Windsor Star seeking informationon the layoffs were not returned. Employeesaffected by the layoffs will be bartenders,snack food vendors, wait staff and coatcheck attendants.USTA TO HONOR THREEThe United States Trotting Association board ofdirectors will honor three racing veterans at itsupcoming meeting during the Racing Congress atBellagio in Las Vegas Feb. 6-9. Software executiveand former USTA activist director CreightonBritell, longtime successful harness racing ownerVic Zeinfeld, and Prince Edward Island pioneeringowner and breeder Paul A. McKinnon willreceive USTA honors.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor December 27, 2005THE RACE BEGINS IN PAThe New York Times, meanwhile, reported Sundaythat “blue-chip investment houses likeMore than 20 applicants were scrambling to gettheir applications in by tomorrow’s deadline for Goldman Sachs, Merrill Lynch and Fidelity nowlucrative gaming licenses in Pennsylvania. That hold hundreds of millions of dollars in shares ofdoesn’t mean the glacial pace will pick up on decidingwho gets the 61,000 slots that will be availliclytraded on the London Stock Exchange andonline casinos and betting parlors, which are pubableat 14 locations around the state. It just headquartered in places like Costa Rica ormeans that an army of state employees will beginto paw over the applications, some of which - tion by American investors underscores a strikingGibraltar.” The paper says the growing participa-- like Mohegan Sun’s -- run to as many as 400 gap between the federal law-enforcement positionpages of information. The tracks will each get a on online gambling and the realities behind whatracino by law, although who will get the sixth harnesslicense still is an open question. Among the that the situation “highlights the difficulty of po-has emerged as a booming business. It also notedother applicants panting for Pennsylvania are licing cross-border activity in the Internet age atDonald Trump, who wants to build a glitzy casino the same time that electronic commerce and a globaleconomy are creating fast economic partnersin North Philadelphia; Harrah’s Entertaiment,which already has Chester Casino and Racetrack across national boundaries.”well underway and would like a standalone casinoin Station Square in Pittsburgh; Boyd Gaming,partnering with Patrick Rooney Jr. and David A state senator in Maryland has prefiled a bill call-TWO INTERESTING IDEASSweet, a friend of Gov. Ed Rendell, to get a nontrackcasino west of Philadelphia; Ted Arneault, voters if they would approve of six designated sloting for a non-binding vote next November askingalready building a thoroughbred track and racino locations in the state, three at racetracks and threein Erie and wanting a standalone on Pittsburgh’s elsewhere. The legislator, Sen. Richard ColburnNorth Shore; 100% Purses, still seeking a thoroughbredtrack near Allentown; Charles Betters be close, but that if it were “no” then the issueof Dorchester, says he doesn’t think the vote wouldand the Biros family, both of which want to cash needs to be dropped. In Kentucky, a state senator,Tom Burch, says if the commonwealth reallyin on the Pittsburgh area; the Pittsburgh Penguins,partnering with Isle of Capri, with plans wants to ensure racing is conducted fairly, the logicalsolution is pre-race testing of all horses beforefor a $290 million arena if they get a casino licenseto go with it; and parking magnate Merrill they compete. “If that is what they actually believe,this is what we should do,” Burch said inStabile, who wants a license but, unlike Isle ofCapri, is not ready to fully fund a new arena for filing his bill.the Penguins. In the Poconos, a developer namedGreg Matzel has submitted an application for a CONNORS USHWAN OF YEARslots license to go with a $1.2 billion, 750-room Longtime publicist Jerry Connors, national secretaryof the U.S. Harness Writers Assn., has beenhotel and 100,000-square-foot casino he proposesto replace Pocono Manor, a 104-year-old Pocono named the group’s USHWAN of the year. He willresort he bought “to continue a great tradition,” receive his honor on the Night of Stars in Vegas.not to mention making a few millionKERRY PACKER DEAD AT 68bucks.Australia’s richest man, media tycoon KerryAh, for springtime in the Poconos.Packer, has died at 68.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTHINGS STILL GRIM IN ONTARIOAccording to The Harness Edge, live racing willbe halted after Saturday at both Windsor Racewayand HTA member Western Fair. Bothtracks’ contracts with the Ontario HarnessHorse Association expire then, with the last dayof the old year, and neither track has hammeredout a new contract as of press time. Accordingto The Edge, OHHA members from both areasoverwhelmingly voted not to enter horses untila new contract is in place, and asked otherOHHA members and horse people to supporttheir decision.Western Fair has offered the horsemen 130 racingdates and a 50-50 purse split on the first $3.9million of all wagering commissions, whichWestern Fair COO Hugh Mitchell says is theequvalent of 2005 revenues on 112 race dates.The OHHA wants 142 dates, and apparently iswilling to shut down racing rather than yield.This willingness on the part of horsemen to takenothing rather than something also is evidencedat Vernon Downs, where under Joe Faraldo’s legalguidance the horsemen are demanding morethan $9 million in “lost money” and using theclaim to block transfer of the track to Jeff Gural.Faraldo and Gural do not see eye to eye, andFaraldo calls the offer of Eric Spector’s “a betterdeal.” Spector’s group, Oneida Entertainment,filed a new plan after creditors overwhelminglyrejected their first bid, and Faraldo claimsthe new Oneida bid came after the horsemen’sclaim. The horsemen are contending their suittakes precedence over Bankruptcy Court JudgeStephen D. Gerling’s decision on who getsVernon, and Gerling today delayed ruling on theCentral New York Horsemen’s Assn. claim.DON’T BLOW WHISTLE IN KYFair warning to potential whistleblowers inKentucky. Don’t. A month ago, on Nov.28, the Executive Newsletter reported that theDecember 28, 2005commonwealth’s chief veterinarian, Dr. Gary Wilson,had fired off a letter complaining that the statewas operating without adequate veterinary supervision,supplies and equipment. He called the situation“appalling,” and asked, “Is the administrationand Kentucky Horse Racing Authority committedto developing a program that sets industrystandards, or are they interested in just gettingby?” Dr. Wilson got a partial answer last week,telling him that whatever Kentucky did, it woulddo it without his services. Mark York, the deputysecretary of the state’s Environmental and PublicProtection Cabinet, headed by LaJuana Wilcher,who originally recommended Wilson for the job lastJuly, sent the pink slip to Wilson, and then refusedto discuss the matter with the press, calling it “apersonal matter.” Personal, we presume, betweenMs. Wilcher and Dr. Wilson, but regardless Dr.Wilson is out.FOUR DOES NOT GO INTO TWOFour entities -- three of them identified and a fourthshrouded in secrecy -- are vying for two casinolicenses in Philadelphia. The four are:The SugarHouse Casino, a partnership of MidwestGaming and Entertainment of Illinois and agroup of local Philly investors.Philadelphia Entertainment and DevelopmentPartners (your guess is as good as ours who theymight be).New Jersey Nets owner Lewis Katz and developerRon Rubin, and -- according toPhillynews.com -- Harrahs’ as landowner or mortgageholder and some very well placed Philadelphiapolitical figures.Donald Trump and Pat Croce.With the Eagles out of it, this should makean interesting playoff in Philadelphia.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorA REPRIEVE FOR MASS. TRACKSThe Massachusetts House and Senate agreedyesterday to extend the state’s current simulcastingbill for another 90 days, averting ashutdown of the state’s four tracks. The billwas sent to Gov. Mitt Romney for signature,and could be signed before the end of the week.State Rep. Vincent Pedone, the Democrat whoplayed a key role in pushing the extension, said,“The foremost thought in people’s minds washow do we keep people at the racetracks workinguntil we come to some sort of an agreementon simulcasting legislation.” House speakerSalvatore DiMasi, a Boston Democrat, said thesimulcasting issue must be resolved before theissue of slots for Massachusetts tracks can bedebated in the House. The Senate already hasapproved a slots bill.NO REPRIEVE AT BAY MEADOWSAcross the country, backers of old Bay Meadowsin San Mateo, California, lost their fight tosave the racing landmark when the San MateoCounty Elections Office ruled that there weretoo few signatures on a referendum petition, thuspaving the way for the track’s destruction andredevelopment. The Bay Meadows Land Company,which owns the track, said it was “relieved”by the result of the county’s verificationprocess. The results would seem to end fiveyears of meetings and debates over the futureof the track, but diehards still were talking aboutlegal challenges.THERE GOES THE ‘HOOD’Lasix, the root of much evil in racing in America,has been illegal in Australia. Until now. SouthAustralia has voted to break the country’s drugfreepolicy by legalizing it. The SydneyHerald Sun said the move “is sure tospark a massive backlash from otherAustralian racing officials.December 29, 2005BANAMINE BAGS 3 BIG NAMESThree top harness racing trainers -- Bob McIntosh,Erv Miller and Casie Coleman -- have hadtheir horses disqualified and have been fined $250each for banamine positives during the recent RedMile Grand Circuit meeting in Lexington, KY. Dr.Richard Mather, who administered the Banamine,has been fined $1,500. Presiding judge MarcGuilfoyle said a lengthy investigation showed thepresence of the prohibited drug was “not the resultof malicious intent.”NO RERUN OF MAPLE LEAFOwner Joseph Chnapko’s appeal to the OntarioRacing Commission to have the $918,500 MapleLeaf Trot raced over again has been denied.Chnapko’s horse, HTA’s older trotting horse ofthe year, Hellava Hush, was one of three whosedrivers pulled up their horses after the starterhad first flashed recall lights and then turnedthem off, creating confusion at the start of therich race. The commission ruled that it was adriver’s decision to pull up, noting that sevenother drivers did not do so, and said, “There isno guarantee that the running of a horse race,from any...perspective, will be free of or unfetteredby human error.....Even with appeals andreplays, human error on the part of officials cannotbe eradicated as a factor sometimes affectingthe outcome of such contests.”SHE KNOWS MORE THAN WEGov. George Pataki still wants Bernadette Castroto be chairwoman of the New York Racing and WageringBoard, and apparently has told her to sit tightand she’ll get the job. Ms. Castro was quoted inocala.com as saying, “My role is to see that racingand wagering in New York is the most honest in thecountry, that any wager is an honest wager.” Patakisays he wants her because “she’s a tremendouspublic servant who would have that open mindas she looks to the future of racing.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorANOTHER CHICAGO CLOSUREDeja-vu all over again in Chicago. Illinois harnesshorsemen have declined offers from theJohnstons, owners of Balmoral Park in Creteand Maywood Park in Maywood, and thosetracks will go dark after the current horsemen’scontract expires tomorrow night. Balmoral andMaywood will not race Sunday or Tuesday. Nofuture negotiations have been scheduled, and thehorsemen’s president, Martin J. Engel, wasquoted as saying, “The industry has been hurtingfor a long period of time. The horsemenare hanging on by a thread. They’d rather notrace at all. It’s also a matter of principal.” Wefind principal is not legal tender at the groceriesand gas stations and department stores wepatronize, but that’s Mr. Engel’s call, and thatof his members. The last horsemen’s strike inChicago, in 2003, lasted two and one-halfmonths. It’s almost impossible to recoup losseslike that, regardless of settlements.The same nothing-is-better-than-something sentimentis being expressed at Western Fair inOntario and at Vernon Downs. The Western Fairsituation is likely to be resolved with reasonablenegotiation, but the Vernon situation isturning ridiculous. The horsemen’s demands forgetting blood from a stone yesterday delayedthe bankruptcy proceedings again, this time untilJanuary 6, as judge Stephen Gerling did notrule on either the horsemen’s motion for $9 millionin damages or the winner of the contentiousbattle for the track and its racino. The courtheard yesterday from Thomas Winn, chairmanand CEO of Nevada Gold, who said his companyis seeking $80 million in financing to help bringVernon out of bankruptcy. “There is no shortageof capital out there looking for a home,”Winn told Gerling. “We just need to convincethem that this is a good home.”Vernon horsemen are not making his jobeasy.December 30, 2005THE BAILOUT AND HOBLOCKIt depends on who you talk to in New York as towhere the bailout of NYRA stands. Senate majorityleader Joe Bruno says it is a done deal.NYRA senior VP Bill Nader says “the dialogueis continuing” between NYRA and thegovernor’s office and Bruno’s office, but said“We don’t have a final deal yet. We’re cautiouslyoptimistic that a deal will get done. We’renot there yet.” Reports indicate that NYRA willreceive a $1 million down payment on a piece ofunspecified property at Aqueduct, which couldrun as high as $5 million. There also would be a$5 million loan from the Empire State DevelopmentFund, contingent on NYRA assuring thestate it would race at Aqueduct, Belmont andSaratoga without interruption next year. Another$24 million would be voted by the legislature.Apparently the state would like to dole out themoney as needed, while NYRA would like it in alump sum.Regardless of how the financing takes place, formerRacing and Wagering Board chairman MikeHoblock has been treated roughly by Albany in thispoorly handled mess, caught between Pataki’s andBruno’s wishes for a new board member. For MikeHoblock to be blamed for NYRA’s problems is unfairto a good man. Hoblock has run the Racingand Wagering Board honorably and diligently duringhis years at the helm, and he says the peopletrying to get him out have been giving the governorincorrect information. He calls the situation “themost confusing, disappointing experience I’ve hadin my 35-plus years in public service,” and he sayshe won’t quit.DESPITE ALL THIS.....the sun is shining brightly in Tucson, and from allof us at HTA to all of you, wherever you may be,Happy New Year. We will see you next week,and next year.