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 24, 2005IN INDY, COLTS, NOT HORSES In a separate development, Magna announced itA key House committee in Indiana drove another is slashing costs, including executive pay, afternail in the coffin of slots at tracks yesterday, passing17-4 a bill that provides for higher taxes on of $731.5 million last year. The losses were downreporting it lost $95.6 million on annual revenuecasinos and pro players salaries, rather than slots $10 million from 2003, but Jim McAlpine,at Hoosier Park and Indiana Downs, as the way Magna’s CEO, said the company no longer canto finance a new stadium for the Indianapolis strain its resources on initiatives that don’t producesignificant immediate revenue. Magna cutColts. The bill now goes to the full House forconsideration next week. Casinos tried to detour its losses in the fourth quarter of 2004 from $103.1the tax, telling legislators that casino corporations million a year earlier to $40.9 million, and all executives,including McAlpine, took pay cuts inmade decisions about which properties to investin by looking at states where tax rates are lower the stabilization move. McAlpine called Magnaand stable, but the legislators didn’t buy it. The Entertainment a “classic example of a young companywith ambitious goals for future growth.”Louisville Courier-Journal reported, “There waslittle sympathy, though, for the plight of the casinos,which last year had $2.3 billion in combinedgambling revenue and paid about $742million in admissions and wagering taxes.” Thecasinos had opposed putting slots at Indiana’stracks, claiming it would have caused dramaticcuts in casino business.SHAPE UP OR SHIP OUTThat was the message sent from Magna Entertainment,which ended greyhound racing in Oregonrecently, to that state concerning horse racingthere. Magna says that if legislators don’tprovide some relief, horse racing in the state alsowill become history. Magna says competitionfrom the Oregon lottery, tribal casinos and onlinebetting is forcing the possibility of it closing itsPortland Meadows thoroughbred and quarterhorse operation. Magna has asked Oregon -- andhas gotten a bill introduced -- that would allow itto capture revenue from simulcasting operationseven when horse races aren’t being run at thetrack. Portland Meadows operates from Octoberthru April, and presently state law requiresthat tracks must hold live racing when they areimporting simulcast signals from elsewhere.Magna’s decision to closeMultnomah Greyhound Park ended 71years of dog racing in Oregon.ANOTHER DROWNS ON SHAKESA fourth Santa Anita trainer has wound up witha milkshake positive, and will have to race hishorses out of a detention barn. AdamKitchingman has joined Jeff Mullins, VladimirCerin and Julio Canani on the milkshake list atSanta Anita. Kitchingman, Mullins and Cananiranked among the top 15 trainers in the countryduring the year from Feb. 6, 2004 to the samedate this year, according to Today’s Racing Digest,and each were winning at rates above 21%.Since racing out of a detention barn on Feb. 9,Mullins has won only one race in 18 starts.Kitchingman, responding to his positive, said,“It’s a competitive business out here.Everybody’s out there to win. We’re going tocorrect it (the milkshake issue) and it won’t happenagain.”BIG PLANS AT PENN NATIONALPenn National Gaming, gearing up for slots, isplanning a $240 million expansion at its homecourse in Grantville, Pennsylvania, near Harrisburg,including a racino, a clubhouse, valet parking,restaurants, a five-story parking garage and35 spaces for customers arriving in limousines.