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 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.