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 beyondPaul J. Estok, Editor February 10, 2005SLOTS ROUND 3 IN MARYLANDLegislation providing for the legalization of slotmachines in Maryland was put on a fast track yesterday,and Senate President Thomas “Mike”Miller predicted that his chamber would pass abill within a week. After that, however, the legislationheads over to the House of Delegates, wheresimilar legislation has died each of the last twoyears. Gov. Robert Ehrlich appeared at Miller’sside at a hearing of the Senate Budget and TaxationCommittee and argued that his gaming legislationwould not only assist the state’s strugglingracing industry but also generate hundreds of millionsof dollars for public school construction andother educational needs. The governor’s bill wouldallow 15,500 slot machines at six locations acrossthe state, including 3,500 each at Pimlico, Laureland Rosecroft racetracks, 1,000 in AlleganyCounty (where Ocean Downs’ owner WilliamRickman plans to build a track), and 4,000 othersto be placed at two additional sites. Legislativeanalysts in Maryland predict the machines wouldgenerate more than $1.5 billion a year by 2009,with about half that amount flowing to the state.YOUBET BUYS ‘RACING GROUP’Online account wagering company Youbet.comannounced on Tuesday that it has signed a Letterof Intent to acquire International Racing Group(“IRG”), the privately held account wagering companybased in Curacao. The purchase of IRG iscontingent upon certain events, including completionof due diligence, execution of definitive transactiondocuments and the approval of Youbet’sboard of directors. IRG was recently in the newswhen it was named as one of four “rebate shops”through which the individuals indicted in NewYork for running an illegal gambling operationplaced bets. Youbet’s release notes that IRGhandled approximately $140 million in 2003and $210 million in 2004, and that its clienteleconsists “predominantly” of “highvolumecustomers.” As a result of the newsthat it’s attempting to purchase a known off-shorerebate shop, Youbet announced that it has begunthe formation of an independent committee thatwill review Youbet’s current gaming compliancepolicies to ensure that it continues to employ “bestpractices.” To better facilitate its review, Youbethas hired Gregg Schatzman, former chief of investigationsfor the Nevada Gaming ControlBoard, “to assist Youbet and the committee incrafting and implementing any necessary protocolsto ensure that, among other items, the protocolsand safeguards of acquisition targets are inline with the rigorous standards Youbet has establishedfor its online and telephonic wagering businesses.”Schatzman will also conduct a review ofIRG’s business operations. Youbet said it expectsto add to the committee “representatives from thehorse racing, U.S. law enforcement and financialservices sectors” in the near future.MARLENE BROWN DIESArrangements have been made for a memorialservice for Marlene Brown, wife of Hanover ShoeFarms publicity manager Murray Brown. Brown,who was 59, died Feb. 8 of lung cancer. The servicewill be held at 2 p.m. on Friday, Feb. 11, atTemple Beth Israel, 2090 Hollywood Drive, York,PA 17403. In addition to her husband, Brown issurvived by her son Andrew, two daughters, JenniferHodur and Stacey Zitto, and four grandchildren.In lieu of flowers the family suggests donationsto the Standardbred Retirement Foundation,49 East Main Street, P.O. Box 763, Freehold, NJ07728, or the American Cancer Society, 924 N.Colonial Avenue, York, PA 17403.KENTUCKY SLOTS BILL DEFEATEDA bill to allow slot machines in every county in theState of Kentucky died in a House committee yesterday.The bill would have permitted 11,000 slotsacross the state, with local approval needed andlocal governments deciding where to put themachines.