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 March 4, 2005THE SHAWN AND JEFF SHOW As of press time, a call to Jeff Gural for commentWelcome to the newest act in the drama of Vernon had not been returned, but the Syracuse Post-Downs. The playbill, in the form of a letter from Standard reported that Gural said he had not seenShawn Scott’s attorney in Dallas, Deborah the proposal when interviewed but was not enthusiasticabout what he was told it contained.Deitsch-Perez, to Michael Rhodes-Devey, representingVernon Downs in Albany, is a “DearMike” suggestion that starts, “After seeing anotherday of unresolved conflict and more than adozen lawyers billing on the Mid-State bankruptcycase, Mr. Scott has a proposal for Mr.Gural that should satisfy all of the warring constituenciesin the case. In addition, we believethat it provides the best potential for there to bea 2005 racing season at Vernon Downs.”The letter goes on to propose that Scott and Guraljoin forces, instead of battling one another, andbuy the assets of Mid-State for $36 million in cashand become 50/50 partners. Vestin Mortgagewould be paid $27 million in cash for the paper itholds, all professionals would be paid in full, and$3 million would be left to be divided among theexisting shareholders.Scott says he is confident he will be licensedshortly in New York, where the Supreme Courtupheld the validity of his temporary license andthe New York Racing and Wagering Board hasto rule on it again. Ms. Deitsch-Perez’s letter says,“Shawn would be happy to meet with Jeff in NewYork to work out how they could best proceed torestart racing and obtain a VLT license as quicklyas possible in a new debt-free company.”A bankruptcy court, meanwhile, approvedGural’s choice as chief executive officer of Mid-State Raceway, hotel and gaming executive EdwardTracy, formerly president and CEO ofTrump Hotel Casino Resorts. Gural got to appointTracy and two Mid-State directors aftersigning a deal to loan the track $8.5 millionto remain solvent. Tracy will be paid$20,000 a month by Gural.ELSEWHEREIn bad news for racing, Gov. Richard Codey ofNew Jersey, faced with opposition in his bid toput VLTs at the Meadowlands, has let it be knownthat, while “committed to the VLT proposal...aswith any initiative, he is open to hearing aboutalternatives as long as the plan is viable and serious.”One of the alternatives he may consider isputting keno games in bars across New Jersey iflegislators reject his VLT proposal. Some AtlanticCity casino spokesmen say they consider itless of a threat to their operations than VLTs atthe Meadowlands. New Jersey racing had bettersolidify quickly on this one.In Florida, the House Speaker has joined withgovernor Jeb Bush in opposing the idea of slotsfor Broward and Dade counties, and regardlessof a favorable popular vote there he and Bushcan make sure slots legislation is onerous.In Kentucky, Churchill Downs has filed a federalsuit against the Jockeys’ Guild, seeking injunctionsthat would prevent a recurrence of lastNovember’s boycotts at Churchill Downs and itsHoosier Park operation. Churchill charges thatthe Jockeys’ Guild orchestrated both walkouts.Churchill also has discontinued its voluntary contributionsto the Guild.NO NEWSLETTER NEXT WEEKHTA’s entire staff, and most of its member trackexecutives, will be in California next week for ourannual joint meeting with TRA. The ExecutiveNewsletter will resume on Monday, March 14.