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, EditorWELCOME TO THE CLUBAnother gaming company has moved to enter theracing field, following Harrah’s, Mohegan Sun andGreat Canadian Gaming. Millenium Gaming Inc.and Canner Casino Resorts LLC have purchasedan option to acquire HTA member RockinghamPark in Salem, NH> Bill Wortman, president ofMillenium Gaming, told the New HampshireUnion Leader, “We are not purchasing an interestin the track as we speak, but we have withinour agreement the ability to do so.” Wortmansaid if the state passes expanded gambling, whichMillenium and Rockingham will pursue,Millenium most likely would exercise its optionto buy the track. He added, however, that theoption is not dependent on the legalization of expandedgambling. Ed Callahan, Rockingham’sgeneral manager, said, “We’re working togetherto try to educate the people of the state aboutthis issue and to do some lobbying.” Callahansaid Millenium would make a full-fledged effortto convince elected state officials of the economicbenefits of expanded gambling, including newspaperspace and broadcast time for advertisements.He said the arrangement was “in essencea working relationship in which they will bring intheir expertise to help design facilities and educatethe public and Legislature.” When the UnionLeader’s senior political reporter, John Distaso,asked Wortman the duration of the option,Wortman said it was “multi-year” but that he“couldn’t recall” the duration. Wortman said,“We want to show the benefits it can create forjobs and for taxation to the state. We want toshow what Rockingham could be, which is what itused to be.” The track, which now conducts onlyharness racing, would return thoroughbred racingto the scene. Callahan said, as other trackoperators have, “Down the road, without slot machines,you have to be looking at otherdevelopment here. I think that would besad.”August 17, 2005That same theme was echoed by Bob Elliston, thepresident of Turfway Park in Kentucky. He toldthe Cincinnati Enquirer, “We have a 200-acreasset of tremendous value, but we are not obtainingthe most return on that asset as a pure racingfacility. So we’ve got to look at augmenting thegaming environment with alternative gaming. Andif that doesn’t happen, then we’ve got to start lookingat what that asset would be.”TWO PURSE SPLIT DISPUTESTrack management at two venues are wrestlingwith purse distribution problems. At HTA memberPrairie Meadows, president and generalmanager Bob Farinella is dealing with disgruntledharness and quarter horse representativeswho want a larger share of the track’s2006 purses. Iowa set minimum purses of 11%of casino revenue last year, and this seasonquarter horses and harness horses will getabout 10.7% each of the $16.7 million in pursemoney. Both want more, the quarter horsemenasking for 20% and the harness horsemenwanting 15.4%. Farinella first offered 75.58%to thoroughbreds, 13.42% to quarter horses,and 11% for harness racing. The offer wasrefused, and now he is offering 78% to the runners,12.5% to quarter horses, and 9.5% toharness racing, answering their protests formore by saying, “Why didn’t you sign at 11?”At River Downs in Ohio, the track -- which is apartner with Beulah Park in AmericaTab --withdrew its signal from that account wageringsite after the state’s thoroughbred horsemen’sconsent to simulcast expired and no agreementhad been reached on purses from the simulcasting,the runners wanting all revenues from thoroughbredsignals. Jack Hanessian, RiverDowns’ general manager, said, “We’re not interestedin getting into a breed war in Ohio,”and said the track would rescind its approvalfor TVG to take its signal today.