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, EditorVIABLE, DRAMATIC AND DUMBWe do not know Carole Stone, the chairwoman ofthe state oversight board in New York created tohelp avoid the projected demise of the New YorkRacing Association, but we can guess that Ms.Stone does not know racing. After a closed doormeeting yesterday on NYRA’s desperate financialsituation, Ms. Stone said there were “viable,dramatic measures” that NYRA might take to allowit to operate until spring, when revenues rise.She did not identify them, but the press did, sayingthey included raising takeout. Three men whodo know racing -- NYRA co-chairman C. StevenDuncker, NYRA spokesman Bill Nader, and racinglaw expert and former racing commissionerBennett Liebman, quickly foretold what raisingtakeout was likely to do. Duncker said bettorswould take their gambling dollars elsewhere.Nader said, “If’s it aimed at helping NYRA, itwould do just the opposite.” And Liebman notedthat handle dipped when takeout rose in the past,and said, “The notion that raising takeout is goingto help NYRA has very little historical basis.” Allthree are right.The argument continues, meanwhile, as to whetherNYRA has the right to sell or otherwise dispose ofthe 15 paintings worth $2 million or more and sell$20 million of property near Aqueduct. One manwho has been noisily saying they don’t is an attorneynamed Donald Kinsella of Albany. He wroteMs. Stone objecting to NYRA selling that property“to pay for costs caused by its misconduct.”We’re not sure what standing Mr. Kinsella has,but he says he represents a potential competitorto NYRA that he won’t identify. If New York andNYRA need transparency, as very expensive measurestaken so far claim, it might be nice either toidentify who people like Kinsella represent or ignorethem. Competition is healthy, butshould not be clandestine.One “viable and dramatic” way Ms. StoneNov. 1, 2005and her colleagues might help racing is to help collectthe more than $23 million in taxes that areowed to New York by the more than 3,000 licensedlottery machine operators, 350 of whom owe thestate more than $10,000 each. Some of them sellmore than $1 million a year in lottery tickets, andstate comptroller Alan Hevesi needs to crack downon these people instead of campaigning on theNYRA issue. One New York City lottery retailer,according to Hevesi, collected $72,763 in commissionson sales of $1.2 million, and owes New York$43,504 in taxes. You might solve your problem inone stroke, Ms. Stone, with a little enforcement inthe state.TRIALS AND TRIBULATIONSThe Pennsylvania Harness Racing Commission,after more than a year of deliberation, will announceThursday whether Centaur and Jeff Smithor Ambrosia and Carmen Shick get the fourth andfinal harness track in the state.New HTA member Fraser Downs will pay up to$2,000 shipping on horses bought for $8,000 ormore at eastern sales to help owners defray theexpense of shipping them west to British Columbiaand encourage purchase of better stock.Saginaw Harness Raceway in Michigan has closedfor good after 25 years of racing.A study group has been formed to conduct a fullscale,extensive feasibility study on the future viabilityof Rockingham Park without slots.More than 90 members of the MassachusettsHouse are reported ready to approve slots, butface a time bind in this year’s session.The betting exchange Betfair is expected to getan Australian foothold this week in Tasmania.Bay Meadows is planning to move from its SanMateo home to a location with slots.