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, EditorWILL SUN RISE IN FLORIDA?The Florida legislature reconvenes today in dayone of their five-day special session, and slots inBroward county will be one of their principal concerns.No one really knows what will happen betweentoday and Friday, and even Allan Solomon,executive vice president and general counsel ofIsle of Capri Casinos, which owns and operatesHTA member Pompano Park, isn’t certain. Hetold the South Florida Sun-Sentinel, “I’m notsure I can make the best wager on how all thisgets done.” Leaders in the House released a 44-page bill last Friday that would allow for Vegasstyleslots, but limits them to no more than 1,000per venue, with a 55% flat tax, proceeds thatwould by law be spent on education by the state.The Senate is considering a 45% tax rate andpossible sliding scale, which could help tracks byproviding a greater share in the first few years ofoperation. The House wants a minimum age of21, with 16 hours of play a day, year-round, and85% returned to players. The St. PetersburgTimes is predicting legislative approval. No oneis talking much about the threat of enabling legislationbeing passed this week and then havingit nullified by a statewide repeal vote next November,something Gov. Jeb Bush and the leaderof both houses support. When Dan Adkins of HollywoodGreyhounds was asked about it, he said,“The only way I can address that is that I’m in arace with blinkers on. I’ll deal with the next raceafter this one’s resolved.” Bush claims voters inFlorida didn’t know that in voting to allow slots inBroward county they also were opening the doorto expansion at seven Indian casinos in thatcounty and four others. The proposed tax rate,whether House or Senate version or a compromise,would be the highest in the country otherthan Rhode Island, which has a 61% rate, accordingto a Florida legislative staff report,that also says seven states allowingslots average 35% in taxes.December 5, 2005DECISION WEEK IN NY, TOOFlorida is not the only racing state with muchhanging in the balance this week. In NewYork, the New York Racing Association shouldknow by the end of the week if it will have tofile for Chapter 11 bankruptcy to continueoperating. President Charles Haywardshowed up in the Aqueduct press box Saturdayand told writers that if the association didnot get help from the state this week -- somethinghe will appeal for tomorrow beforeCarole Stone, chairwoman of the oversightpanel appointed by Gov. George Pataki -- itwas likely NYRA would file for bankruptcyprotection this month. Hayward said filingwould “give us a little room to breathe, and Ithink in terms of running the races, it shouldjust be business as usual.” Breathing time wasnot on the mind of Senate majority leader JoeBruno, however. He called for the NYRA franchiseto be awarded in the next six months,rather than waiting for it to expire at the endof 2007. “Let’s do it sooner rather than later,”he told Tom Precious of Blood-Horse.AND A DEADLINE IN MD, TOOActually, the deadline in Maryland was missed.The racing commission had given the MarylandJockey Club until last Thursday to reach agreementwith horsemen, but that date passed withoutsuccess. Now the issue hopefully can be resolvedbefore the commission’s next meeting a week fromtomorrow. Expense-sharing reportedly is the majorsticking point, with tracks wanting to be reimbursedfor expenses in producing the show.ARNEAULT, BLACK WANT MTRTed Arneault, CEO of MTR Gaming Group, andexecutive vice president Robert Blatt have extendeda takeover offer of some $258.4 million toshareholders of MTR Gaming Group. MTRshares rose $1.84, or 23%, closing at $9.73on the Nasdaq.