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 4, 2005WEG PLANS TO COMMINGLE A WEEK LEFT IN MARYLANDWoodbine Entertainment, planning to take advantageof the elimination of the U.S. 30% song goes, and chances for slots in Maryland nowThe days narrow down to a precious few, as thewitholding on foreign wagers, is applying to send rest on the usual hurly-burly of last minute dealing.It seems unlikely that there will be any be-bets directly into commingled pools at the Meadowlandsin New Jersey and Calder Race Course tween Gov. Robert L. Ehrlich Jr. and his archin Florida. Woodbine’s chief financial officer, foe House Speaker Michael Busch, so the legislativesession is likely to end without compromiseSteve Mitchell, told Daily Racing Form WEGhopes to commingle with the Meadowlands by on the issue. Through heavy lobbying, EhrlichJune, and also will seek commingled pools in got 35 of 43 Republican delegates to support aCalifornia and New York. He said Canadian House slots bill, but Busch and Senate presidenttracks are 100% committed to the project, but Thomas V. Mike Miller could not or would notadmitted it was a complicated regulatory process.He said Woodbine did not plan to raise itsagree, and time is running out.minimum bet from $1 to $2, saying that was notconsidered a viable option by WEG.IT’S NOW ALL UP TO GEORGEThe New York legislature, Senate and Assembly,has done its job on clearing VLT hurdles thatwill enable expansion to Yonkers, Aqueduct andbeyond, but The Boss -- and we don’t meanTrump -- has not yet signed off on the deal. WhileYonkers and Batavia and Vernon Downs awaitthe final word, Pataki is expected to negotiatewith Joe Bruno and Sheldon Silver on their plans,which raise the track’s share to 32% of the firstmillion in annual revenue, 29% of the next million,and 26% of revenue above $10 million, plus8% of the first $100 million of slots revenue formarketing and advertising expenses and 5% ofrevenue above $100 million. Charles Hayward,president and CEO of NYRA, called the legislation“a good bill,” and said that he thought allparties concerned would still agree it was a goodbill even after expected changes are negotiated.At Vernon Downs, meanwhile, the track will holdan open house next week, of both its propertyand books, for eight investors it says areinterested in the track and its racino.UNHAPPINESS IN ILLINOISRod Blagojevich, the governor of Illinois, is havinga hard time pleasing anyone on gambling issuesin his state. His proposal to raise $300 millionby doubling the number of gambling “positions”on the state’s nine existing riverboat casinoswould, one would have thought, pleased thecasinos, but they say they have no intention ofbuying more equipment without tax relief, currentlytopped out at 70%. Only two casinos currentlypay that rate -- Harrah’s in Joliet and theGrand Victoria in Elgin -- with all the others exceptone falling in the 50% bracket for grossingbetween $100 million and $250 million a year.Those in that bracket fear doubling the positionsfrom the present 1,200 a boat to 2,400 would drivetheir gross above $250 million, pushing them fromthe 50% tax bracket to 70%.WAPLES IN TROUBLE, AGAINRandy Waples, blessed with an abundance ofdriving talent, seemingly is cursed with a shortageof self restraint. After losing months of racinglast year for intemperate actions, he now hasbeen fined $1,000 and suspended for 90 days for“improper and insulting language and improperconduct to another participant” atMohawk Raceway.