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 February 8, 2005JURY THROWS BOOK AT BALAThe jury that found Susan Bala guilty on 12counts of illegal gambling in a federal court inFargo, ND, threw its final punch yesterday, whenafter a 45-minute forfeiture hearing it orderedBala to forfeit $19.7 million personally, which itsaid was the revenue remaining after $99 millionin illegal bets had been paid to winners. Her company,Racing Services, was ordered to pay theremainder of the $99 million to the federal government.The Grand Forks Herald said the jurydid not subtract about $12.8 million in rebatespaid to high rollers from Bala’s total forfeiture,and the Fargo Forum reported that with the forfeitureverdicts in hand, the government now willfurther investigate Bala and RSI to see what assetscan be recovered. The paper said that couldinclude RSI’s international subsidiaries in Mexicoand Venezuela.MASSACHUSETTS CUTS OFF NHThe four horse and dog tracks in Massachusettshave joined others in the east in cutting off simulcastingsignals to Lakes Region GreyhoundPark in northern New Hampshire, where the generaland assistant managers were named in thefederal charges in New York involving allegedmembers of the Gambino crime family.BLB BUYING LINCOLN PARKBLB, the company that had proposed to buyWembley USA for $554 million last summer andthen backed out, now is reported to be buyingWembley and its Lincoln Park in Rhode Islandfor $435 million, and says it will spend another$125 million renovating it. That would be a $560million package, and the mayor of Providence,Don Carcieri, says he wants three conditions metin the sale. He does not want a hotel or conventionfacilities built there, he wants theNarragansett Indians cut in on the deal,and that any growth in machines be dedicatedto property tax relief.RACING CAN’T BEAT BUS(C)HESFirst it’s Michael Busch in Maryland, fiercelyfighting slots at tracks for the third year in a row.Now it’s Jeb Bush in Florida, playing cute withan already passed slots bill for south Florida.That legislation -- Amendment 4, which allowsresidents of Broward and Miami-Dade countiesto vote on slots at tracks -- is being used by theMiccosukee tribe to argue that they are coveredtoo, and can operate slots at their casinos. Bushdoesn’t want to get in the middle of this, but heis. Last week he said he isn’t ready to talk, beggingoff by saying, “This is very complicatedstuff.” Of course it is, governor. That’s whatgovernance is all about. Federal law specifies thatIndian tribes can negotiate with a state to operatewhatever gambling on their land that is legalwithin a state, and that the governor of a statemust negotiate in good faith within 180 days aftera tribe requests talks to begin. TheMiccosukees made that request in November, justthree days after Amendment 4 was approvednarrowly statewide, and overwhelmingly inBroward and Miami-Dade. That gives Bush untilMay 5 to get started on negotiations. He clearlyis not ready now, but the issue is not likely tohelp what kind of limitations on track slots comeout of Tallahassee. Whatever they decide will besubject, of course, to a possible veto by Bush.Senator Steve Geller of Hallandale Beach,Florida’s foremost legislative authority on gambling,thinks Bush will push for very limited hoursand very high taxes in an attempt to forestalltracks from installing machines by making themeconomically unfeasible.YOUBET GIVES RTIP $100,000Youbet.com, which recently passed the one billionmark in bets, has contributed $100,000 tohelp endow a proposed faculty chair in racingresearch at the Race Track Industry Programof the University of Arizona.