2005 - Harness Tracks of America, Inc.

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.”