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, 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.”