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2005 - Harness Tracks of America, Inc.

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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.

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