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, 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.