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 April 1, 2005YOUBET TOSSES THE GANTLET ELSEWHERE, SLOT TURMOILUnannounced to its track partners, Youbet.com Here are late slot developments around the nation:has quietly launched a program offering rebatesof up to 11% to its best customers, according toIn Illinois, Gov. Rod Blagojevich finally got offDaily Racing Form, and some of the track partnersare less than pleased. Youbet president andthe dime and said he would veto plans for a Chicagocasino. He also left racing out of his budgetCEO Chuck Champion said notification of thesolution, proposing instead to double the numberof slot machines and table games at Illinoisrebate program was sent to 46 current or previouscustomers who live in the U.S., except for 15casinos from its present 11,000 “positions” at ninestates including California where rebates are prohibited,and live more than 25 miles from anyexisting casinos, with a 10th still in dispute.track. Champion said the move was made “to In New Jersey, the chairman of the Assemblyincrease their interest and wagering into the parimutuelpools in the United States.” Concerning posal for VLTs at tracks is “going nowhere,” andBudget Committee said Governor Codey’s pro-track partners that are unhappy at not being his committee is not including VLT revenues innotified, Champion told the Form’s Matt Hegarty its projected revenues for 2006. In West Virginia,that, “A lot of people encouraged us to do this. I a major backer of legislation for table games fordo know that there is some confusion about this tracks said the bill “is in trouble in the House,”from people who don’t really understand it, and saying it was being held hostage and some legislatorswere ready to pull their support. The mea-we look forward to talking to them.” Most trackoperators in the U.S. today understand rebates sure was approved by the Senate but is beforefairly well, including Charles Hayward, the new the House Judiciary Committee and will needpresident of NYRA, who found out about the House Finance Committee approval and threemove secondhand over the weekend, and said he readings in the full House before that body adjournsApril 9.was “mystified” and called Youbet’s rebates onNYRA’s three tracks “pretty distressing percentages.”Peter Berube of Tampa Bay Downs alsoIn Florida, the first committee to considerBroward county slots voted to limit games to electronicbingo. The leader of the slots movementunderstands rebates, having addressed the jointHTA/TRA convention a year ago on the subject,in Broward, Dan Adkins of Hollywood GreyhoundPark, said, “No question the voters inand he called the move “disturbing” and “a causefor concern on a day-in or day-out basis.” HeBroward knew what they were voting for. Anypredicted the move would have “some consequences.”Steve Mitchell, vice president of wa-8-year-old on the street knows what a slot machineis.”gering operations for Woodbine Entertainment,said Woodbine’s contract with Youbet was being In New Hampshire, slots for Rockingham and theplaced in jeopardy because of the rebate program,which calls for 6.5% on straight wagers Lou D’Allesandro, whose bill would allow nearlystate’s other tracks are still alive. State senatorand 11% on WEG exotics. Mitchell said Woodbinewas not happy about the idea, and said if a bling now. The difference is if we pass this bill,4,000 VLTs at the tracks, said, “We have gam-satisfactory answer to Youbet’s motives the state makes money.”was not forthcoming, WEG would reviewits wagering agreement with Youbet.In Maryland....gridlock. What else?