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 18, 2005ON THE BEAT, COAST TO COAST That support could help the matter past NewIt appears likely that thoroughbred racing on the York’s glacial legislative ice jam, but in anotherwest coast could be moving from Hollywood Park New York legislative development, the New Yorkto Los Alamitos. Although Churchill Downs Racing Association is strongly opposing a proposalto increase takeout on straight and mul-president Tom Meeker played it coy in discussingthe possibility that Churchill may sell the huge tiple-pool bets. That move, included in a budgetInglewood track to developers, he did say, “as proposal, would raise takeout on win, place andwith all our assets, we continually evaluate each show bets from 14% to 15.5%, and on two-horseasset in light of two overriding objectives: increasingshareholder value and improving the Charles Hayward, who has supported NYRA’sexotics from 17.5% to 19%. NYRA presidentsport of racing,” and added that an evaluation recent policy of advocating lower takeouts, wason Hollywood Park would be completed quoted by Thoroughbred Times.com as saying of“in the space of a few months.” Major thoroughbredowner Mike Pegram and Los Alamitos Race we’ve recommended or even discussed with any-the proposal, “These are not takeout increasesCourse owner Dr. Edward C. Allred, however, one. We do not believe that is a prudent way todid not seem to be waiting, announcing a $40 do business, and these are not any adjustmentsmillion partnership plan which would convert that we would support.”Los Alamitos into a mile thoroughbred track with20 weeks of runners and year-round quarterhorse racing on an inner track. Allred would remainowner of the track and all operations wouldbe under his control, with Pegram -- who thoughthe had bought the Fair Grounds last year butlost it to Churchill Downs -- heading the thoroughbredmeeting there.Across the country, in New York, the Senatepassed two bills sponsored by Senator Bill Larkin,chairman of the Racing and Wagering Committee,hoping to get slots at Yonkers and Aqueductrolling. One would raise the tracks’ share fromslots from 29% to 32% on the first $50 million ofnet winnings, 29% from the next $100 million,and 26% for all over that. The horsemen’s sharewould be roughly 8% from the track’s vendorfees, subject to negotiation. A second bill wouldraise the track’s share to 34%, with a 9%horsemen’s subsidy and 4% advertising subsidycoming from the state’s general fund, thus seekingto avoid the constitutionality issue currentlya problem in the state. State majorityleader Joseph Bruno is urgingquick passage.HARSH WORDS IN FLORIDAThe battle over how much to tax tracks inBroward county on potential slots revenue is onfull blast. At a meeting of the Senate RegulatedIndustries Committee, state senator Steve Gellerof Hallandale Beach, a strong proponent of slotsto help tracks, bluntly told Broward county schoolboard member Beverly Gallagher, who proposeda 50% tax on gross revenues, that she didn’t knowwhat she was talking about. “It’s clear to me,”Geller said, “that you have no idea what you’respeaking about when you’re doing this. I don’tknow why the school board is interjecting itselfinto something they clearly know so little about.”Geller later called Gallagher’s remarks to thecommittee “stupid” and warned the school boardwas “not making friends by disagreeing with itslocal legislative delegation.”DEEP IN THE HEART OF TEXASTrack slots may be dead in Maryland and Indiana,but they still are breathing in Texas, wherelegislation has been reintroduced seeking tolegalize VLTs at all licensed Texas tracks.