2005 - Harness Tracks of America, Inc.

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HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, Editor December 6, 2005OIL AND STEROIDS DON’T MIXThe leading trainer in the Emirates Racing Associationfor the last two seasons has been suspendedfor four months after four of his seven winnerstested positive for the steroid bodenone.BloodHorse.com reports that Mazin Al Kurdi, whotrains some 120 horses, mostly for top ownerSheikh Rashid, will miss the remainder of the UAEracing season, which includes the Dubai InternationalRacing Carnival that starts on Jan. 19. Unlessthe suspension is reversed on appeal, Kurdiis down for presenting horses to race with bannedsubstances in their systems. We are not alone.IS THIS JUST POSTURING?That was the question asked yesterday by LeeWoodard, bankruptcy lawyer for Mid-State Raceway,the parent of Vernon Downs, after thehorsemen’s lawyer, Joe Faraldo, asked a bankruptcycourt judge to have Vernon reimburse them$9.6 million that Faraldo says the horsemen havelost since the track closed 16 months ago.Woodard said he was “shocked and dismayed” bythe move, and added that “I’m hopeful that this isnothing more than just posturing.” Faraldo said itwas done “to protect the horsemen.” Given theprecarious status of Vernon, and the money JeffGural and his associates have dumped into it inthe hope of reviving the track, a second questionbesides Woodard’s might be if the horsemen reallywant Vernon to return to racing. Certainlyhorsemen have lost money by Vernon being closed,but so has Mid-State Raceway, which is bankrupt.The track has not been licensed in New York, itsmajority shareholder Shawn Scott is not licensedin New York, and the overwhelming majority ofshareholders voted to have the Gural group takeover. Scott’s principal lawyer, Deborah Deitsch-Perez, has written a 42-page brief blasting the NewYork Racing and Wagering Board for not licensingScott, but board chairwoman Cheryl Buley saidthe board has no selective bias against Scott. “It’snot the board’s responsibility to make Shawn Scottlicensable. That’s Shawn Scott’s responsibility, andhe failed to meet those standards.” The board’shearing officer, Russell Baller, told the board thatScott had lied on his application and submittedfraudulent documents. Scott’s lawyer called them“minor errors.”55%: FLORIDA HOUSE FIRMThe Florida House is holding firm on its demandfor a 55% tax on Broward county slots. Afrustrated state senator Steve Geller saidof the House stance, “We can’t negotiatewith people who aren’t negotiating.”WE’RE NOT KIDDING, FOLKSIf you plan to race at the Racing Congress atBellagio in February, you had better get your stallapplication in now. You have only the rest of Decemberin which to make room reservations withCindy Knox in the HTA office. After the beginningof January our special room rate will not apply,and you will be on your own both as to rateand availability.Also, we’re again asking our action officers to respondto Jessica Carner’s request for Directoryinformation. We take great pride in this uniquebook, which we consider the most comprehensivedirectory in racing, but we need your cooperationto have it produced in time for the Congress. Youhave the forms. Please fill them out and return toJess. Or request new ones if you have lost thosesent to you.RACING SYMPOSIUM BEGINSThe annual University of Arizona Race Track IndustryProgram symposium gets underway in Tucsontoday. Harness folks spotted early includeChris McErlean of the Meadowlands, Ed Ryan ofScioto Downs, Conrad Sobkowiak of PoconoDowns, and Eric Sharbaugh, executive vicepresident of the USTA. We’ll bring you dailyhighlights here.
HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorHALLELUJAH! RCI, NAPRA JOINIt took 8 years, but the absurdity of two separateassociations of racing commissioners ended yesterdaywith the announcement that Racing CommissionersInternational and the North AmericanPari-Mutuel Regulators Association had votedunanimously to merge. Although the officialmerger date is January 1, the two groups said theyhave begun working as one immediately. PaulBowlinger, executive director of NAPRA, will becomeexecutive vice president of RCI. The splitbetween the two organizations occurred over salaryissues and other matters, and has taken thislong to heal. Ed Martin, president of RCI, whoseeks to fold racing security into the organization,said the merger will help that effort. First, however,RCI will have to figure out how to technologicallykeep all jurisdictions informed immediatelyof suspensions and penalties, something itdoes not do currently.AND THEN THERE IS FLORIDAIf there was good news on the racing commissionfront, there was none to report yet in Florida, wherethe House and Senate are toiling in special sessionto resolve the slots in Broward county issue.There has been no compromise so far. Here ishow the plans differ:HOUSE - Tax rate 55%, 1,000 slots at each facility,16 hours of operation a day.SENATE - Tax rate a sliding scale, starting at 35%up to $125 million, 40% between $125 and $250million, 45% between $250 and $500 million, andcapping at 55% on slots revenue over $500 million,with 2,000 slots at each facility and 16 hoursof operation a day. One senator, Republican BillPosey, obviously understands the issue. “If welimit the number of machines and set too high atax,” he said, “all we’ll do is kill what little goldengoose we have, if we overregulate.” Regardlessof outcome, slots are nine monthsaway, according to the Miami Herald.December 7, 2005DRUGS, THIS TIME IN INDIANAIllegal medication has raised its ugly head againto plague racing, this time in Indiana. A countyprosecutor has said the Indiana Horse RacingCommission waited for nearly two years to do anythingabout vials of suspicious drugs that wereseized at HTA member Hoosier Park. The incidentinvolved two women vets, one of whom turnedagainst another in her employ. The second wasarrested and charged with unregistered dispensingof a controlled substance, Dormosedan, a tranquilizer.The second vet was cleared, accordingto her attorney. Commission executive directorJoe Gorajec said some of the medication wasseized at Hoosier in November, 2003, but saidthe investigation was still ongoing. Hoosier Parkpresident and general manager Rick Moore expressedfull confidence in the commission, sayinghe was confident it would take swift action ifthe county prosecutor’s allegations proved valid.Horsemen contacted in Indiana sided with thesecond vet, some with uncomplimentary commentson the first.HELP MAY BE ON WAY IN NYThere may be a softening of position on the partof the rulers of New York concerning the New YorkRacing Association and its financial woes. Followinga three-hour meeting yesterday, a spokesmanfor Gov. George Pataki said the governor hasnot ruled out allowing NYRA to sell 80 parcels ofland near Aqueduct, or defer $32 million in tax andfee payments for the year, which is NYRA’s preferredsolution to its cash-flow problems. NYRApresident Charles Hayward said other new anddifferent options are being pursued, but would notgive details. He called the session between himself,other NYRA representatives and thegovernor’s NYRA Oversight Board “productive,with no conclusions.” He said NYRA eitherneeded to sell the land or find a “commensuratesolution.”
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2005 - Harness Tracks of America, Inc.

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