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, EditorPA VOTE: NO ONE GETS TRACKThe Pennsylvania Harness Racing Commission,after more than a year of deliberation, announcedits decision today in the long battle betweenCentaur’s Valley View Downs and the Schickfamily’s Bedford Downs for the final harness racinglicense in Pennsylvania. It turned down bothapplications and did not award the license, and itdid so without comment or explanation, saying theirrationale would be issued in the next few weeks.The two applicants have spent tons of money andthree years of effort in their applications to build awestern Pennsylvania track. The racing board saidit would start anew on the licensing process, withBedford Downs and Valley View Downs eligible tore-apply despite the board’s denial today. Theboard’s action can be challenged in court, but noword on that as yet.YOUBET REBATE SHOP GETS OKYoubet.com broke new ground in U.S. racing yesterday,when the Oregon Racing Commission approveda license for Youbet’s International RacingGroup subsidiary, International RacingGroup, an off-shore high volume rebate shop operatingout of Curacao. Known as Holiday Beach,the shop was acquired by Youbet in June. It hadbeen named but not charged in an 88-count federalindictment earlier this year, and handled $140million in 2003 and $210 million last year, accordingto Youbet, whose CEO Charles Championcalled the Oregon action “an important step forwardfor U.S. racing.” Champion said, “Now thereis a regulated entity in this segment of the horseracing industry that meets the compliance needsof tracks and the demands of customers. Clearly,ORC has once again demonstrated its leadershipand appreciable understanding of issues facingthe racing business and ADW.” IRG currentlyaccepts races on 90 U.S. tracks ofall breeds.November 3, 2005THE TAIL WAGS THE DOGWhen you can’t get in the front door, try goingaround to the back. That’s what Betfair did DownUnder, where it was rebuffed by seven state andterritory governments and then wooed the premierof the eighth, Tasmania, Australia’s smallest statewith 484,000 people. The premier, Paul Lennon,partnering with the Publishing and BroadcastingLtd. of Australia’s richest man and biggest bettor,Kerry Packer, announced Tasmania would grantthe British betting exchange a license to operatein the country, despite vehement opposition fromthe local racing industry and other racing groupsthroughout Australia. The Tasmanian governmentissued multiple media releases trying to justifythe move, including defending the integrity of asystem that includes betting on horses to lose. Thechairman of the Australian Racing Board, AndrewRamsden, issued a long and blistering response inwhich he said, in part, “The Tasmanian Premier’sdecision today doesn’t beat anyone to the punch -- it gives a green light to something that everyother State and Territory has already rejected.That surely tells its own story....The views of thewider Australian Racing Industry seem to havebeen a poor secondary consideration. For theAustralian Racing Board the issue is squarelyabout the integrity of racing -- our capacity to runthe sport in a way that the public has confidence inits integrity. It is an unshakeable fact that the presenceof betting exchanges undermines this. Theeasy facility to make money out of horses losingis an undeniable temptation to cheat.”ILLINOIS SENATE SAVES BOATSForget the Illinois House and its vote to endriverboat casinos in the state. The Senate tookcare of that matter in short order, when its sponsorof the abolition legislation, John Cullerton ofChicago, said he had no intention of asking for avote on the issue.