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 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.