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, EditorWHERE’S THE BEEF..AND CASH?Richard Shapiro, who was confirmed for anotherthree years as a member of the California HorseRacing Board earlier this week, has asked theCalifornia deputy attorney general to recommendthe proper recourse in a matter involving now departedCapitol Racing and some $1.5 million inunpaid purses. Capitol, headed by Alan Horowitz,operated racing in Sacramento for 10 years beforerelinquishing its license. The Californiaboard had ordered it to redistribute $1.5 millionin the form of purses to horsemen, as settlementof a dispute over promotional funds. Capitol apparentlyignored the board’s order. A representativeof the California Harness Horsemen’s Associationhad expressed concern that horsemencould wind up “holding a fistful of tickets theycan’t cash,” but Shapiro said the board still has$2 million in bonds and letters of credit from CapitolRacing, and he reassured horsemen who racedthere that “there is ample security to pay for anyshortfall.” Horowitz and an associate reportedlyhave been exploring a working relationship withShawn Scott in seeking to purchase VernonDowns.Shapiro and board member Marie Moretti alsohad some questions for Jack Liebau, presidentof both Bay Meadows and the newly created HollywoodPark Racing Association. Ms. Morettiasked, “What assurances do we have that youare going to be or even want to stay around?”and Shapiro asked about Bay Meadows’ budgetfor marketing, advertising and promotions. Hesaid he was “uncomfortable” determining thatCalifornia would be better served by the BayMeadows’ acquisition when he didn’t know whatthey planned to do to market horse racing. “Iwant to know what you are going to do to improvethings from where they were,” he toldLiebau, who said a $4 or $5 million installationof Polytrack is planned.August 19, 2005The board, after hearing Bay Meadows’ plans,determined that the state would be better servedallowing Bay Meadows to proceed with the purchaseof Hollywood Park from Churchill Downs,thus assuring continuity of operations at Hollypark.GREEN LIGHT IN MAINEAcross the country, in Augusta, Maine, the racingcommission approved final licensing for Penn Nationalto operate slots at Bangor Raceway, whichit acquired from Shawn Scott. The board voted 5-0 to approve licensing, and also approved InternationalGaming Technologies as the slot machinedistributor. Penn National spokesman EricSchippers called the events “an exciting and historicday.”COLONIAL BUYS OUT MAGNAColonial Downs, owned by Jacobs EntertainmentInc., is buying out its partner, MagnaEntertainment, paying $7 million in cash andissuing a $3 million one-year interest-bearingnote for the Maryland Jockey Club’sMaryland-Virginia Racing Circuit, Inc. Thatentity was established a decade ago, andpartnered with Colonial in operating harnessand thoroughbred meets at the Virginia trackand its seven OTB facilities. The transactionalso calls for pro-rated 2005 managementfees and repayment of some $145,000 plusaccrued interest under an existing promissorynote.JUG OPEN TO CANADIAN BETSThe Ohio Racing Commission has approved commonpool betting from Canada on the LittleBrown Jug, using net pool pricing methods underAssociation of Racing Commissioners’ Internationalmodel rules. Jug marketing directorand HTA director Phil Terry called the move“another step in the right direction for thesport of harness racing and the DelawareCounty Fair.”