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 December 9, 2005FLORIDA SLOTS, SORT OFThe Florida House passed Broward county’s slotbill yesterday, 110-8, and the Senate followed suit,approving the compromise measure 33-7. Gov.Jeb Bush says he will sign the bill, reluctantly. “It’snot going to feel good,” he said. “I just don’t thinkthis is right for our state....The fact that there’sgoing to be a bunch of slot machines in Browardcounty doesn’t warm my heart.” In fact, it chillshis heart enough that he still plans to seek repealof the voter’s wishes next November, and onestrong supporter of the measure, who knows racingbetter than all of his colleagues in the FloridaSenate, is alarmed. Senator Steven Geller, founderand president of the National Council of Legislatorsfrom Gaming States, said he is concerned thatthe bill contains a tax rate so high -- 50% -- that“we’re getting something up with the intent of failure.”Jim Horne, lobbyist for HTA member PompanoPark, said, “We’re not jumping for joy overit, but we’re glad to get a bill. Certainly the rate oftax, the amount of machines (1,500) has a dramaticeffect on our plans. All four venues are probablygoing to have to go back and revisit what theirplans were and see to what extent they have to bemodified to fit this kind of environment.”MORE ON RCI INTEGRITY IDEAYesterday, reporting on the announcement of RacingCommissioners International’s formation ofRCI Integrity Services, we asked where the groupwould get the money. Later in the day we foundout. Youbet.com and Scientific Games Corp. aregoing to foot the bill, at least initially. In laudingRCI president Ed Martin for merging RCI andNAPRA, we failed to do justice to NAPRA presidentPaul Bowlinger, who becomes executive VPof the new unified RCI. And behind the entirepackage and security effort are the major contributionstoward reconciliation and rebuildingby former RCI president LonniePowell.BAD NEWS FOR THE JOCKSL. Wayne Gertmenian is gone, but so, apparently,are much of the funds of the Jockeys’ Guild followinghis departure. The Guild released resultsof a preliminary financial review yesterday thatsaid Gertmenin and former COO Albert Fiss appearedto have “inappropriately” used $2.1 millionin Guild funds to cover daily operating costsand pay health insurance premiums, and that$442,000 earmarked for individual savings accountsapparently had been used to cover operatingcosts and medical expenses. The review,according to the Los Angeles Times, “suggestedan apparent pattern of increasing fiscal neglectextending for at least the past 18 months.” Ahealth fund account that is supposed to holdenough money to cover two and one-half monthsof claims is nearly depleted, the story said, withthe Oct. 30 balance of $6,029, down from$860,000 in April of 2004. Some utility bills andother obligations had not been paid in sixmonths, and various bank statements had notbeen reconciled in several months, according to thereport. Janet Patton, business writer for the LexingtonHerald-Leader in Kentucky, reported in herstory that more than $1.1 million that should havebeen set aside to cover health claims is missing.Patton wrote that although the Guild had movedquickly to stop payment on checks written the daybefore Gertmenian and Fiss were ousted, it had notmoved quickly enough. Four checks totaling$104,000 made out to Gertmenian’s Matrix Capitalwere stopped, but one made out for $69,000 toGertmenian and another for $44,000 to Fiss hadcleared the bank. The FBI now is investigating thediscrepancies.MTR BUYS JACKSON RACEWAYMTR Gaming, through its Jackson Racing Inc.subsidiary, has bought 90% of Jackson Racewayfrom Dan Rakietin and his motherNan.