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, EditorHOUSE VOTES TO KILL CASINOSIt isn’t going to happen, but the Illinois Houseyesterday voted to close the state’s riverboat casinos,15 years after they opened. The speakerof the House, Michael Madigan, said the existingcasino system has produced huge amounts ofmoney for a few people, and needs to be overhauled,and House Democrats voted overwhelminglyto support abolition. The president of theSenate, Emil Jones, had a sharp reaction to theHouse action, making it clear the House proposalwas going nowhere in the Senate. “The Senateis a very responsible body,” he said. “It doesn’tdo irresponsible things. Riverboat gambling providesabout $780 million for schools every year.How is that revenue going to be replaced? I can’tsee a member voting to take money away fromtheir schoolchildren.” Madigan proposed startingover with new gambling legislation, saying,“I think we should go back to the drawing board.”The bill passed the House 67-42, with 7 membersvoting “present.” Its sponsor, Rep. John Bradley,said the casinos encourage addiction, lead tocrime and take money away from the people whocan least afford to lose it, and said, “Let’s takethis scourge out of our communities.” The governorof Illinois, Rod Blagojevich, called theHouse bill “intriguing,” but would not say whetherhe would sign it if it reached his desk. “I justthink if you’re going to do something like havingriverboats and licenses where you can make allkinds of money, that people have to get their fairshare.” The Republican House minority leader,Tom Cross, said he thought the move was designedto help downstate Democrats fend offRepublicans in next year’s elections. A suggestionto Rep. Bradley: After you get shot down bythe Senate, why not try to do away with the IllinoisLottery? If you’re concerned with addictionand taking money from people who canleast afford it, that would be a great placeto start.October 28, 2005GUILD LAWYER HAS ENOUGHA lobbyist and lawyer for the Jockeys’ Guild hasquit, saying he cannot continue to represent theGuild with the present management team in place.Daily Racing Form reports that Barry Broad resignedbecause of concerns raised in the Oct. 18hearing of the House Subcommittee on Oversightand Investigations, primarily about the Guild president,Wayne Gertmenian. He draws a yearly salaryof $165,000 and the Guild also pays his company,Matrix Capital Associates, $335,000 a year.Gertmenian is the owner and sole employee of thecompany, according to the Form.SPLIT DECISION FOR TRIBESIndian tribes on the east and west coast werenot only geographically miles apart yesterday,but also far apart on results of their negotiations.In Utica, NY, a federal judge ruled that Madisoncounty cannot seize Oneida Indian Nationproperty over unpaid taxes. In the state of Washington,Gov. Christine Gregoire rejected theSpokane Tribe’s proposed gaming compact.In the New York matter, U.S. District JudgeDavid Hurd said that although the Oneidas owedproperty taxes to Madison county, the county“must find an alternate method to satisfy theNation’s debt to the county,” because the Oneidasare a sovereign nation. The judge said therewas “a vast difference” between requiring propertyowned by a sovereign nation to be taxedand allowing property to be seized from that sovereignnation. Hurd said such seizure shouldrequire, at the very least, a specific act of Congress.FRANK WHITE DIESFrank White, former president and CEO of Mid-State Raceway and Vernon Downs, died lastweek in Community Memorial Hospital inHamilton, NY.