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, EditorSCOTT DENIED LICENSE AGAINThe New York Racing and Wagering Board onFriday again denied promoter Shawn Scott a licenseto operate a race track in New York, citing“lack of credibility” and misstatements in previousdealings with the board. Scott’s attorneysaid he will appeal. In another development affectingVernon Downs -- and one that makes itunlikely the track will race this year -- a BankruptcyCourt judge postponed until August ahearing on the competing bids of Scott and NewYork real estate magnate and harness horseowner-breeder Jeff Gural. The judge delayedthe hearing after a morning of deliberation inwhich he decided it would be unfair to allow anamended Gural plan, offered a night before thehearing, to be heard on such short notice. Thejudge also wants both disclosure statements tobe debated at the same time, to allow creditorsto examine both and vote on one or the other.The Scott plan provides for a partnership withRaceway Ventures, in which they would pay $30million to get the track out of debt, loan it $10million more to improve it, and then sell it to aninterested buyer. Scott currently owns 52% ofthe track’s stock, and his plan would allow allshareholders to keep their stock. Under theGural proposal put forward by him andTrackPower, a Canadian partner, Gural wouldbecome sole owner of the track, according to theOneida Dispatch, and then allow previous shareholdersto buy back a certain percentage, providingthey can be licensed in New York. Gurallawyers were anxious to have the matter resolved,since Gural’s $1.2 million and $675,000 loansare running low, and the lawyers say they will begone by Aug. 23. The Gural agreement also containsa clause that would allow him to back out ofthe offer on Sept. 15 if his plan has not been approvedby that date. The judge wants toknow if Gural and TrackPower can paycreditors the $32 million they are owed.July 25, 2005In another Gural development, groundbreakingceremonies were held in the town of Nichols, NY,of the route 17 expressway, for the beginning ofdemolition and construction of Gural’s TiogaDowns, which he hopes to open with as many as750 video lottery terminals in the spring of 2006.PURDON ON TRIAL IN NZAfter 14 months of investigation, during which twoof the principals reportedly committed suicide,leading trainer Mark Purdon is on trial in NewZealand in the “Blue Magic” case, involving useof propantheline bromide. The two key figureswho are dead are John Seaton, one of NewZealand’s most prominent owners, who also wasto have faced charges, and Robert Asquith,charged with supplying the illegal drug. Australiancoroners, who work at their own pace, still havenot confirmed the deaths as suicides. In a sidelineto the matter, assault charges were withdrawnagainst Purdon’s mother-in-law, who was accusedof driving her car at a blue magic protester outsideof Purdon’ stable last July and then assaultinghim as he lay on the road.FOXWOODS IN DISPUTEConnecticut state regulators have orderedFoxwoods Resort Casino to shut down an Internetpromotion, marketing a “Play Away” commercialfor remote play, but the tribe has refused. The stateattorney general says, “This game has to stop.”We’ll see who wins this one.WE KNOW YOU, TOM LAMARRAIn an embarrassing error, Executive Newsletterlast week misidentified veteran racing writer TomLaMarra as being with Thoroughbred Times. Tomis, of course, news editor of The Blood-Horse. Weare avid readers of both excellent thoroughbredpublications, but like the New York Times, whichnever acknowledges mistakes, we attribute thisto an “editing error.” You can call it a plaindumb mistake. Sorry.