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, EditorTHE PRICE OF DISASTERNo one can put a dollar amount on the devastationand disaster, and certainly not on the human sufferingand agony inflicted by Hurricane Katrina, but itis obvious that the huge gambling industry centeredalong the Mississippi-Alabama coastline has takena tremendous hit. Churchill Downs has not yet hadany way to determine the damage to its Fairgroundsin New Orleans, and president Tom Meeker says it“could take several days or weeks before we havean accurate assessment.” The track is not scheduledto race until Nov. 24. Other operators alongthe Gulf Coast know already of the monstrous damageinflicted on their facilities. At least three of thefloating barge casinos in Biloxi were torn from theirmoorings and washed 200 yards from shore. GaryLoveman, chairman of Harrah’s Entertainment, toldCNBC that its Grand Casino was “probably ruined,”having washed ashore and landed on the other sideof busy U.S. 90. Loveman said he thought it wouldhave to be cut to pieces just to be moved away. AtBiloxi’s most lavish casino, Beau Rivage, the firstand second floors were blown out. BernieBurkholder, president and CEO of Treasure BayCasino in Biloxi, told the Associated Press the casinowas “a total loss,” with damage in excess of$100 million. The first two floors of the Hard RockCasino -- due to open Sept. 8 -- were blown out.Harrah’s Grand Casino Gulfport was swept inland.The Copa Casino in Gulfport was destroyed. Asidefrom the huge property damage, and loss of $400,000to $500,000 a day to the state of Mississippi, Thegambling industry in Mississippi employs some30,000 workers, who could be idled for weeks ormonths. Loveman said Harrah’s would guaranteeits 8,000 workers at its Grand Casino, Harrah’s NewOrleans and the Grand Casino Gulfport for up to90 days. Mississippi has 27 state-regulated casinos,which together generate $400 million in taxrevenue each year. With at least 17 of them closedby the storm, and the others virtually shutdown by the elimination of tourist trade,the impact is clear, beyond the tragedy itself.August 31, 2005In another distant ramification of the Gulf disaster,reflecting possible heavy damage to oil platformsin the Gulf, gasoline prices in Canada wereraised some 20% this morning, rising to $1.20 aliter in Montreal, Toronto and Vancouver. Thattranslates to $4.54 for a U.S. gallon, or $5.45 for aCanadian gallon, which is one liter larger than itsU.S. counterpart. The immediate impact was indicatedby an announcement by Jeff Doyle of DoyleBloodstock Transportation in Ontario, one ofCanada’s largest horse transporters, who said thecompany was discussing a fuel surcharge for haulinghorses. With the season’s major yearling salesahead in Lexington and Harrisburg, the issue addsone more economic burden for yearling buyers inCanada, or Americans shipping horses to race forCanada’s rich slot-fueled purses.BETTING ON THE IF COME“Everybody’s wondering what’s going on,” saidTed Connors, chairman of the New HampshirePari-Mutuel Commission, about the suddenrush to invest in New Hampshire racing.Millenium Gaming has purchased an option onRockingham Park, and Mississippi casino mogulMarlin Torguson is about to buy the LakesRegion Greyhound Park in Belmont. There isno mystery about “what’s going on,” and aspokesman for Torguson made it clear: “We’replanting the seed for the future,” he said, meaningthat Torguson expects, as Millenium obviouslydoes, that New Hampshire legislatorseventually will legalize slots, hopefully fromtheir standpoint sometime soon. They mayknow something others don’t. There has beenlittle action or inclination in the New HampshireHouse for such action, and the most recent proposalin the Senate failed last April, losing 18to 6. Despite that, hope still apparently springseternal among the suitors, who hope to convincethe legislature of the error of theirways.