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 29, 2005MORE OF THE SAMEIf the original American colonies had been as preoccupiedwith local and regional arguments asAmerican racing is today, we probably still wouldbe part of the British empire. Racing has littleinterest in cosmic views, but a great deal of interestin local fights.New Jersey and the 2007 Breeders’ Cup is a classicexample. The no-holds barred bruising battlebetween the New Jersey Racing Commission andthe Thoroughbred Horsemen’s Association, apower struggle for control, continues to threatenthe Breeders’ Cup, currently scheduled forMonmouth Park two years from now. Chancesare dimming, as a Cup deadline of April 9 approachesand both Dennis Drazin, counsel for thehorsemen, and Frank Zanzuccki, executive directorof the racing commission, are acting likeGov. Robert Ehrlich Jr. and House SpeakerMichael Busch in Maryland: give no ground.Some interesting oratory has resulted. Alan Foreman,chief executive officer of the MarylandheadquarteredThoroughbred Horsemen’s Association,said he has remained “on the periphery”given the circumstances. What constitutes “aperiphery” apparently is highly subjective, forForeman ventured pretty close to the fire whenquoted by Bloodhorse.com as saying, “There isno horsemen’s organization in the country beingharassed and micromanaged by a racing commissionlike this one is.” He also was quoted assaying, “Breeders’ Cup shouldn’t go into a venuewhere these type of shenanigans are going on.”That seems a fairly strong endorsementof`Drazin, whose group has been accused of fiscalmismanagement. Drazin says, “the commissionposition is wrong, but the commission is unwillingto budge.” Zanzuccki says the matter hasbeen scheduled for court and will be litigatedin October. The Breeders’ Cupdoes not intend to wait that long.WHAT CONSTITUTES ENOUGH?West Virginia’s four racetracks already operate10,802 slot machines, but they have told the statelegislature they will be in dire peril once neighboringPennsylvania gets rolling, and the stateSenate, at least, has agreed the tracks are in mortaldanger. The Senate approved a bill yesterdaythat would allow the tracks to operate table gamesas well, as long as voters in the counties in whichthey operate agree. In a quaint touch, the Senateamended the bill by attaching two provisions:regional jails would get additional revenue fromthe table games, and each track would have topay $125,000 toward local “economic development.”The state would take 23.5% of table gamerevenue, with smaller shares going to purses andracing pensions and other state funds. The Senateapproved the table games measure on a 19-14 vote, and sent it to the House of Delegates,where its sponsor called chances of passage “excellent.”One Republican senator put forth anamendment that a statewide referendum be required,saying, “I don’t think anyone can crediblyargue that casino gambling won’t have astatewide impact,” but his colleagues killed thatidea 22-11. The 5% share for jails, taken frommoney that otherwise would go to the generalfund, squeaked through 17-16, jails obviously beinga more sensitive subject to senators.NEXT MOVE UP TO PATAKIIt appears that both houses of the New York legislatureare in accord with an increase from 29%to 32% of the first $50 million in “vendor’s fees”for VLTs, with a boost to 29% for the next $100million and 26% for everything over that, butthere has been no word from Albany that GeorgePataki agrees, or will. Construction of racinos atboth Yonkers Raceway and Aqueduct hinge onpassage of the measure. Whether passagewould fulfill Jeff Gural’s requirements tobuy Vernon Downs is unknown.