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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 <strong>America</strong> and beyondStanley F. Bergstein, EditorANOTHER CHICAGO CLOSUREDeja-vu all over again in Chicago. Illinois harnesshorsemen have declined <strong>of</strong>fers from theJohnstons, owners <strong>of</strong> Balmoral Park in Creteand Maywood Park in Maywood, and thosetracks will go dark after the current horsemen’scontract expires tomorrow night. Balmoral andMaywood will not race Sunday or Tuesday. N<strong>of</strong>uture negotiations have been scheduled, and thehorsemen’s president, Martin J. Engel, wasquoted as saying, “The industry has been hurtingfor a long period <strong>of</strong> time. The horsemenare hanging on by a thread. They’d rather notrace at all. It’s also a matter <strong>of</strong> principal.” Wefind principal is not legal tender at the groceriesand gas stations and department stores wepatronize, but that’s Mr. Engel’s call, and that<strong>of</strong> his members. The last horsemen’s strike inChicago, in 2003, lasted two and one-halfmonths. It’s almost impossible to recoup losseslike that, regardless <strong>of</strong> settlements.The same nothing-is-better-than-something sentimentis being expressed at Western Fair inOntario and at Vernon Downs. The Western Fairsituation is likely to be resolved with reasonablenegotiation, but the Vernon situation isturning ridiculous. The horsemen’s demands forgetting blood from a stone yesterday delayedthe bankruptcy proceedings again, this time untilJanuary 6, as judge Stephen Gerling did notrule on either the horsemen’s motion for $9 millionin damages or the winner <strong>of</strong> the contentiousbattle for the track and its racino. The courtheard yesterday from Thomas Winn, chairmanand CEO <strong>of</strong> Nevada Gold, who said his companyis seeking $80 million in financing to help bringVernon out <strong>of</strong> bankruptcy. “There is no shortage<strong>of</strong> capital out there looking for a home,”Winn told Gerling. “We just need to convincethem that this is a good home.”Vernon horsemen are not making his jobeasy.December 30, <strong>2005</strong>THE BAILOUT AND HOBLOCKIt depends on who you talk to in New York as towhere the bailout <strong>of</strong> NYRA stands. Senate majorityleader Joe Bruno says it is a done deal.NYRA senior VP Bill Nader says “the dialogueis continuing” between NYRA and thegovernor’s <strong>of</strong>fice and Bruno’s <strong>of</strong>fice, but said“We don’t have a final deal yet. We’re cautiouslyoptimistic that a deal will get done. We’renot there yet.” Reports indicate that NYRA willreceive a $1 million down payment on a piece <strong>of</strong>unspecified property at Aqueduct, which couldrun as high as $5 million. There also would be a$5 million loan from the Empire State DevelopmentFund, contingent on NYRA assuring thestate it would race at Aqueduct, Belmont andSaratoga without interruption next year. Another$24 million would be voted by the legislature.Apparently the state would like to dole out themoney as needed, while NYRA would like it in alump sum.Regardless <strong>of</strong> how the financing takes place, formerRacing and Wagering Board chairman MikeHoblock has been treated roughly by Albany in thispoorly handled mess, caught between Pataki’s andBruno’s wishes for a new board member. For MikeHoblock to be blamed for NYRA’s problems is unfairto a good man. Hoblock has run the Racingand Wagering Board honorably and diligently duringhis years at the helm, and he says the peopletrying to get him out have been giving the governorincorrect information. He calls the situation “themost confusing, disappointing experience I’ve hadin my 35-plus years in public service,” and he sayshe won’t quit.DESPITE ALL THIS.....the sun is shining brightly in Tucson, and from all<strong>of</strong> us at HTA to all <strong>of</strong> you, wherever you may be,Happy New Year. We will see you next week,and next year.

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