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, EditorBRUNO CALLS FOR BAILOUTJoe Bruno, majority leader of the New York Senateand a man who usually gets his way, has calledfor a $30 million bailout of the economically distressedNew York Racing Association. Bruno proposesan immediate $7 million advance to the oversightboard appointed by Gov. George Pataki tohelp straighten out New York racing, and another$23 million for subsequent use in revitalizingNYRA. The money would come from the statebudget and apply only until NYRA gets slots, hopefullyby next fall. Bruno, who in the past has calledfor quick privatization of NYRA, now says in aletter to Pataki, “It is urgent that the state act immediatelyto implement a plan which will ensurethe continuity of world class thoroughbred racingin the state, secure the livelihood of all individualsinvolved with the industry, enhance the economicbenefits derived from thoroughbred racing andrestructure the industry to assure its viability andcompetitiveness in future years.” It seems clearthat “racing” to Bruno, whose district includesSaratoga Racetrack (and Saratoga Gaming andRaceway) means only thoroughbred racing, andhe rejected the use of “bailout,” although that isprecisely what his proposal is. He said NYRAwould need to repay the money.“A STAIN ON THE INDUSTRY”That was the contemptuous appraisal of the EmeraldCasino in Chicago of Rosemont yesterday,as the Illinois Gaming Board voted unanimously,5 to 0, to revoke its license. The action followed aruling by former Judge Abner Mikva saying Emeralddid not deserve the license. A board member,Charles Gardner, said, “The record is clear -- is it replete with deceit, misdirection, dissembly,lies and untruths.” It is now eight years since thisbattle started, and Emerald indicated it would a p -peal to the Court of Appeals. Look foranother two to five years of hassling.Following yesterday’s revocation, Isle ofDecember 21, 2005Capri, which had been awarded the license earlier,had this to say: “Nothing in the GamingBoard’s finding involves Isle of Capri. We wereinvited to participate in a fair and open auctionprocess and, unfortunately, two years later we findourselves caught in the middle of issues that predatedour participation in the auction. Isle ofCapri’s financial condition is strong -- just as it wasat the time of the Rosemont application. And Isleand its officers have one of the best regulatoryrecords in the gaming industry.” Isle of Capri ownsHTA member Pompano Park in Pompano Beach,Florida.PENN NAT’L WANTS VALLEYPenn National Gaming, which was forced to sellits Pocono Downs holding to Mohegan Sun a yearago because Pennsylvania law prohibits an entityowning two tracks for racino purposes, now wantsa trackless casino outside of Allentown, wherePocono maintains an OTB site. Penn National canown up to one third of another gambling location,and has a potential partner in the Allentown venturein UCH Venture Capital.TIME RUNNING OUT IN MASSThe simulcasting situation in Massachusetts isnearing its year-end deadline, with three trackoperators held virtual hostage by the fourth,Raynham/Taunton boss George Carney. No decisionas of the moment.RIGHT CHURCH, WRONG PEWYesterday’s newsletter had veteran racing officialSteve Molnar leaving his post as executive VP ofYoubet.com. Steve worked for Youbet four or fiveyears ago, but the job he has left now is executiveVP at United Tote, soon to be a wholly owned subsidiaryof Youbet.com. We had the right churchbut the wrong pew, and hope Steve lands inanother high racing job soon.