HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyondStanley F. Bergstein, Editor March 22, <strong>2005</strong>GURAL BUYING OUT SCOTT HELPFUL DECISION IN KYVernon Downs’ control by non-racing outsiders In a reversal <strong>of</strong> long-standing policy by his <strong>of</strong>fice,the attorney general <strong>of</strong> Kentucky, Gregmay be over, as New York realtor and harnesshorse owner and breeder Jeff Gural says he has Stumbo, has ruled that the state constitution doesreached a deal to buy the 52% share in the track not have to be amended to allow expanded gambling.While the decision is merely advisory inowned by Las Vegas and Virgin Island entrepreneurShawn Scott. Gural says he has an oral nature, it removes one stumbling block to legalization<strong>of</strong> slots for tracks in the commonwealth,agreement with Scott and Vestin Mortgage,which holds a $27 million mortgage on Vernon but formidable opposition still faces such a move.and is the track’s biggest creditor. Gural’s dealwould end Scott’s involvement with Vernon, NEW SECURITY FOR RUNNERSmarred by Scott’s inability to obtain a New York In two significant thoroughbred security developments,the New York Racing Association haslicense to operate the track and its racino. Guralplans to invest $1.2 million to get Vernon up and announced it plans to use a pre-race detentionrunning, and has agreed to provide another $7.3 barn when it opens its 60-day spring-summermillion to get the racino open. Mid-State is estimatinggross revenue <strong>of</strong> $47 million a year from has announced tough new milkshaking penalties.meeting at Belmont Park May 4, and Keenelandthe racino. Gural is hopeful that the New YorkAssembly will approve a bill passed last week bythe state Senate which would increase revenuesfrom the VLTs.QUEBEC SELLING ITS TRACKSHTA member Hippodrome de Montreal andthree other harness tracks in Quebec will be soldto private operators under a move by the Quebecgovernment. The decision reverses the decision<strong>of</strong> the province’s former finance minister,Yves Seguin. In addition to Hippodrome, formerlyBlue Bonnets, the tracks to be sold are inQuebec City, Trois-Rivieres and Gatineau. TheMontreal Gazette said the likely buyer will be eitherOntario-based Magna Entertainment orRemstar, a Quebec company, both <strong>of</strong> which haveshown interest in acquiring the tracks and haveexpressed a willingness to invest some $100 millionCanadian dollars.In another Canadian development, Great CanadianGaming corporation has completedits acquisition <strong>of</strong> Fraser Downs andSandown Park in British Columbia.NYRA began pre-race testing for carbon dioxidereadings in mid-February, and will begin freezingurine samples for use as Cornell Universitydevelops new tests for currently undetectablesubstances. The new testing program is beingsponsored jointly by NYRA and the New YorkThoroughbred Horsemen’s Association.Under new rules at Keeneland, readings <strong>of</strong> 37millimoles per liter <strong>of</strong> blood or higher will drawpenalties that start with the first horse in atrainer’s care having to be raced out <strong>of</strong> 24 hours<strong>of</strong> detention and observation, to be paid for bythe trainer at $150 a day. A second stable <strong>of</strong>fensewill bar the trainer from entering a horse at themeet for 10 days from notification <strong>of</strong> the positive.A third <strong>of</strong>fense will result in banishmentfrom Keeneland for one year.Penalties against owners, through banning onentries <strong>of</strong> horses testing positive, are being proposedat a meeting today <strong>of</strong> the Kentucky HorseRacing Authority.
HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyondStanley F. Bergstein, Editor March 23, <strong>2005</strong>KENTUCKY TAKES THE LEAD During the term <strong>of</strong> a suspension, access to theIt’s a headline you may never have expected to grounds <strong>of</strong> any Kentucky racetrack would beread, but the proposals made yesterday by the denied both trainer and horse, and there wouldKentucky Equine Drug Research Council, if be no “split sample” requirement for milkshakeadopted, would put the commonwealth at the testing.forefront <strong>of</strong> meaningful penalties for racing infractions,particularly the use <strong>of</strong> illegal substances.Largely the work <strong>of</strong> premier harnessbreeder Alan Leavitt and co-authored by Councilchairwoman Connie Whitfield, the penaltieswould include loss <strong>of</strong> purses and suspensions fortheir horses testing positive, putting the ownersin the orbit <strong>of</strong> responsibility. Here are highlights<strong>of</strong> the proposals:For first <strong>of</strong>fenses on milkshakes with a reading<strong>of</strong> 37 millimoles <strong>of</strong> carbon dioxide per liter <strong>of</strong>blood or higher, with no allowances for Salix, loss<strong>of</strong> the purse, $1,000 fine and 75-day suspensionfor the trainer, and a 30-day suspension <strong>of</strong> thehorse.A second <strong>of</strong>fense would bring loss <strong>of</strong> purse, $2,000fine and a 150-day suspension for the trainer, anda 45-day suspension <strong>of</strong> the horse.A third <strong>of</strong>fense would result in loss <strong>of</strong> purse, a$3,000 fine and 300-day suspension for thetrainer, and a 60-day suspension <strong>of</strong> the horse.And a fourth <strong>of</strong>fense would bring loss <strong>of</strong> purse,lifetime suspension for the trainer, and a 180-daysuspension <strong>of</strong> the horse.In addition, every winner would have to be testedpost-race for milkshakes, along with one otherhorse to be selected by the judges; any claim ona horse with a high milkshake reading would beautomatically voided; during the entire time anypenalty -- not just milkshakes -- was being appealed,all horses raced by the <strong>of</strong>fending trainerwould be required to race out <strong>of</strong> a 24-hour detention barn, with the trainerbearing the cost.In a major innovation, possession or use <strong>of</strong> bloodgas machines, also known as black boxes, wouldbe limited to authorized state regulatory representatives,and the possession or use <strong>of</strong> shockwave therapy machines would be restricted tolicensed veterinarians, and no horse could beshock waved within six days <strong>of</strong> a race. The veterinarianusing shock wave therapy would haveto file a report listing the horse’s name, tattoonumber, and trainer, and file that report with thejudges within eight hours <strong>of</strong> administering thetreatment. Currently, in New Jersey, Florida andelsewhere, trainers are reported using these machineson their farms and/or training centers. Inthe case <strong>of</strong> black boxes, they obviously could permitexperimenting with milkshakes right up tothe maximum limit, and shock wave therapy isnot something at this stage <strong>of</strong> development fornon-veterinarians to use.The Kentucky proposals, based on work beingdone by the national Racing Medication and TestingConsortium, would divide drug <strong>of</strong>fenses intothree classes, with penalties highest for Class Adrugs that have no therapeutic value in a horse.The penalties for first violations <strong>of</strong> administration<strong>of</strong> Class A drugs would carry loss <strong>of</strong> purse, a$15,000 fine and 1,095-day suspension <strong>of</strong> thetrainer, and a 90-day suspension <strong>of</strong> the horse, andrange upwards to loss <strong>of</strong> purse, a $50,000 fineand life suspension for the trainer, and a 360-day suspension <strong>of</strong> the horse for third <strong>of</strong>fenses.Third <strong>of</strong>fenses for private use <strong>of</strong> a blood gas machinewould result in a $20,000 fine and 360-daysuspension, and for unauthorized shock waveuse in a $10,000 fine and 120-day suspension.