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, EditorTHE HARD WAY TO COVERAGEIt is nice, of course, to have horse racing on thefront page of the New York Times, with a picture,and a huge jump inside. This morning’s Times hadjust that, Joe Drape’s feature, five days beforehorse racing’s biggest weekend, under the headline“At the Derby, Racing is Facing Its Drug Problem.”Acknowledging that the industry is facingits problem probably has to be considered a positivestory, but it’s a hard way to get coverage. Itis, however, an opportunity for horse racing, regardlessof breed, because if the industry does notstrike now, while the iron is hot, and charge fullspeed ahead with the work of the Racing Medicationand Testing Consortium, it is losing a goldenopportunity. The idea for a per start, per horseassessment to fund research on drugs and attainuniform drug testing rules and procedures hasbeen languishing, and the sport should take advantageof the current recognition and publicity ofthe milkshake mess to get moving with it. Therehas been enough committee discussion leadingnowhere, and now is the time for action, not talk.It is not likely that there will be any better timesoon, for horsemen and regulators alike have theproblem clearly in front of them with articles liketoday’s big Times spread.LATE AFTERNOON IN FLORIDAThe sun hasn’t quite set on slots legislation inFlorida, but it is late in the day, and the presidentof the Florida Senate, Tom Lee, is quotedas saying, “the slot machine bill has a very unlikelychance of passing. I see an end game, Ijust don’t see a very pretty one.” Lee told theMiami Herald. “I think the chambers are toofar apart, and there’s some deeply held philosophicalbeliefs that I think are going to makeit difficult to move this legislation unless someonereally blinks.” As of press time,there was no sign of blinking.Putting aside that Broward county votersMay 2, 2005twice have expressed a wish for slots, as thelegislators have, they are deadlocked overwhether to allow bingo style machines alreadyin use at the state’s Indian casinos, or Las Vegasstyle slots, which the Indians want if thetracks get them; over how many machines ateach track, the House opting for a 3,000 limit,the Senate setting none; over taxes, the Housewanting a 55% tax, the Senate 30 to 35%; andover where the tax would go, the House wantingit for buying computers and other schoolneeds, the Senate wanting it spent exclusivelyon building new schools. With slot hopes dimmingand Florida runners prominent in theDerby picture, Richard Hancock, executivevice president of the Florida ThoroughbredBreeders and Owners Association, mused,“Wouldn’t that be ironic? We win the Derbyand lose the thoroughbred industry.”NOW ITS LEWIS AND PEGRAMEd Allred, owner of Los Alamitos, may have decidedhe’s too old to mess with buying HollywoodPark, but McDonald’s tycoon and horseowner Mike Pegram -- who was going to beAllred’s partner -- has found a new one. He andmajor owner Bob Lewis, who made his money inthe beer business, have formed a partnershipand will try to race thoroughbreds at LosAlamitos if Churchill Downs decides to sell ordevelop Hollywood Park. Pegram and Lewis aretalking about leasing Los Al for seven years,with an option to buy, and adding runners to thequarter horse menu at the Orange county track.Lewis said it would cost more than $40 millionto convert the plant to thoroughbred racing, butcalled the potential in heavily populated andprosperous Orange county “limitless.” He saidit would take industry cooperation, but said “everybodyrealizes that Southern California needsa shot in the arm and this could be the opportunityto give it that.”