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, EditorWHAT GIVES IN FLORIDA?The will of the people does not always apply inFlorida, as we all know by now, but disregarding it,or derailing it, seems to have become a hobbythere. The people of Broward county, not oncebut twice, have voted for slots at tracks. The legislatorsin Tallahassee, however, unable to simplyoverturn what voters have voted for, seem determinedto deny them by other means. They aretalking about a pari-mutuel tax on slots at tracksin Broward county of as high as 60%, or at least inthe 50% range, and are blunt about why. The chairmanof the Senate Judiciary committee, DanWebster, who is expected to ask his committee fora 50% tax today, said, “I don’t want casinos in thestate. I’ve said that a hundred times.” It apparentlymakes no difference to Webster, a Republicanfrom Winter Garden, what the people ofBroward county want. He does not think tracksshould have slots at all, and since the people votedfor them he has decided to nullify their vote bytaxing them at a rate that blunts their effect. Aman who strongly disagrees, former state EducationCommissioner Jim Horne, points out that,“There’s a bell curve. You reach an optimum.When you increase the rate, you can’t generatethe profits to build a first class facility, and fewerpeople will come.” But the House, after a hearingof its Fiscal Council this afternoon, could optfor a tax as high as 60%, at the urging of governorJeb Bush. And something called Florida TaxWatch is urging the state to impose a 74% taxrate, which its “experts” say will produce $770million for state education, badly needed inFlorida, or twice as much as legislative economistsestimate a tax no higher than 35% wouldproduce. The racing industry, obviously, is of littleconcern to anyone in state government exceptperhaps Steve Geller and a few other legislators.The high tax folks hope to either discourageinstallation of slots or make certainthey don’t fare too well.April 22, 2005EHRLICH: PREAKNESS MAY GOHe may have lost his battle with the legislature onslots for Maryland tracks, but Gov. Robert L.Ehrlich Jr. is not giving up the fight. He spoke toreporters before giving a speech to the MarylandHorse Breeders Association last night, and toldthem, “The failure to pass slots means, clearly,the future of the Preakness in Maryland is an openissue. The state does not own that race.” MagnaEntertainment does, along with Joe DeFrancis, andwhile Magna had no early response to Ehrlich’swarning, its senior vice president of racing, JimGagliano, told the Baltimore Sun, “We’re disappointedwith the legislature, and it will be difficultto confront our competition without electronic gaming,but we’re not for sale.” His response came topublished reports that the company was contemplatingsale of Pimlico and Laurel, and that interestedbuyers who had come forward included BaltimoreOrioles owner Peter G. Angelos, who hadstarted to buy Rosecroft Raceway and thenbacked out.TOUGH NEW RULES AT NYRAStung by a milkshaking scandal a few months ago,the New York Racing Association is putting in placeone of the toughest detention rules in the country.Quoting NYRA senior vice president Bill Nader,Daily Racing Form reports that every horse on aday’s racing program, including also eligibles, willbe required to spend six hours of pre-race detention,with access to the horse restricted to the stateveterinarian except in cases of emergency. Thestate vet also will be the one to administer Lasixto horses running on that medication. The newrequirement will affect horses racing in theBelmont Stakes, third leg of the Triple Crown, onJune 11.DUES FORMS NEEDEDIf your track has not yet submitted duesforms to HTA, please do so now.