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, Editor February 1, 2005JOCKEYS’ GUILD RELENTS THE GOVERNOR’S PLEASUREUnder pressure from a California Horse Racing An interesting situation has arisen in Indiana,Board committee chaired by commissioner RichardShapiro, the Jockeys’ Guild has agreed to ing to gain control of 17 state boards and com-where the new governor, Mitch Daniels, is seek-allow the racing board to examine its financial missions by requesting the resignation of 120statements and conduct a limited audit of the organization.The Guild, through its attorney ana, members of most state boards and commis-people working in those departments. In Indi-Barry Broad, assured Shapiro that he would be sions serve fixed terms, and of the 120 whoable to see anything he wanted to see, with one Daniels asked to quit, only 33 resigned by hiscaveat. That exception is that the racing board deadline of last Friday. One of those who didlimit its audit as to how the Guild spent the $1 not, Christopher J. Murphy III, who serves onmillion a year it has been receiving from California,but not delve into the expenses of Guild offi-Daniels, “I do not serve in my capacity repre-the Commission for Higher Education, wrotecials. Shapiro also was notified by Ron Warren, senting one political party or another, one educationalinstitution or another, nor one Gover-a northern California jockey, in a letter endorsedby 29 northern California riders, that they intendedto form a California Jockeys Guild in the not of confrontation.” Daniels is not seeking tonor or another. My response is one of principle,hopes of managing state funds to jockeys. State fire or replace all of those who resign. He simplylaw, however, specifies that the monies, from wants the freedom to do so. Four of seven membersof the state’s Gaming Commission resigned,uncashed tickets, be managed by a group representinga majority of California riders. Some 300 and all five members of the Horse Racing Commissiondid, but Daniels has not announced whichare licensed in the state. A second request to reviewthe books of the Guild, from the ThoroughbredRacing Associations, has gone unanswered. lose the executive secretary of the commission,resignations he will accept. If Indiana were toJoe Gorajec, it would lose one of the most knowledgeableand effective racing administrators inthe country.BALA CASE READY FOR JURYWith the defense of Susan Bala and her RacingServices winding down, it appears the federal casemay go to the jury as early as tomorrow, or possiblyThursday. Bala’s attorney noted that abonus check for $359,444 she received at the endof 2002 was deposited in the Racing Services accountrather than a personal account, but an assistantU.S. attorney made the point that “eitherway, personally or through the company, she wasdoing pretty well.” A former bookkeeper testifiedMonday that the pretax amount of Bala’s2002 bonus check was around $500,000. An accountanttestified that it was suggested Bala bepaid the bonus to limit tax liability ofRacing Services.HOW SARATOGA $$ WERE SPLITSaratoga Gaming and Raceway, which celebratedits first anniversary as a racino last Friday, paidout more than $900 million to winning bettors.The state picked up $82 million, of which 61%,or $50 million, goes to support education in thestate. The track received 29%, or $23.8 million,to be split on purses, and the Lottery commissiongot 10%, or $8.2 million, for administrativecosts.CAMPBELL, YOUBET AGREEHarness racing’s money-winning champion,John Campbell, has renewed his contractas a spokesman for Youbet.com.