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 beyondMay 3, 2005Stanley F. Bergstein, EditorTOTAL VICTORY IN NEW YORKThe Court of Appeals, New York’s highest court,ruled 5-2 yesterday that VLTs and Indian-ownedcasinos are legal and constitutional. The total victorywas hailed by all in racing, and by SenateMajority Leader Joe Bruno, who said, “They gotit right.” The decision overturned that of the AppellateDivision, which had ruled last year that theVLT law violated the New York constitution’s provisionthat all net proceeds from VLTs should goto education. Judge Carmen Beauchamp Ciparick,writing for the majority of the Court of Appeals,wrote, “These moneys are not a separate deduction,beyond other costs and expenses, from theamount paid to the racetracks as a vendor’s fee.Rather, they constitute simply a part of the vendorfee itself -- but a part whose use the state hasdecided to regulate.” The decision should eliminatethe last obstacles to construction of majorracinos at Yonkers Raceway and Aqueduct, andincrease chances of Vernon Downs being acquiredand reopening. Even Cornelius Murray, the Albanylawyer who has been the prime antagonist inattempting to overturn the VLT legislation,acknowleged defeat on that issue. “This is probablythe end of the line on VLT and Mega Millionsissues,” he told the Associated Press. Hedid say, however, that he was considering an appealto the U.S. Supreme Court on the Indian casinoportion of the decision, since they are authorizedby federal law. The full New York decisioncan be seen on HTA’s Web site home page,www.harnesstracks.com.HOPE SPRINGS ETERNAL, ETC.The Oneida Indian Nation must be one of the mostoptimistic groups in America. Although the U.S.Supreme Court voted 8-1, in a decision on a localmatter that had national implications, theOneidas say they will ask the high courtto re-hear the case. Legal experts saysuch reconsideration is rare.A NEW DAY: DUTROW GETS 120With the awareness of illegal medication problemsin racing spreading, regulators are becoming morestringent in their use of their power. The latestexample is well-known thoroughbred trainer DickDutrow Jr., who was suspended for 120 days andfined $5,000 after dropping his appeals on threecharges against him, two for medication violationsand one for an illegal claim. The illegal claim involvedowner Sandy Goldfarb, who also owns harnesshorses. Sixty days of Dutrow’s suspensionwill be stayed and discharged if he does not commitany significant violation of board rules, whichwould seem difficult if he is not racing horses.New York Racing and Wagering Board spokespersonStacy Clifford said of the suspension, “Theboard continues to take a firm stance against inappropriateuse of equine drugs and believesstrongly about holding people accountable fortheir violations.” Well, yes, but if you say 120,you might mean it. Three violations would seemenough.NUMBERS PLEASE IN NJIt took a long while to get connected, but telephoneaccount betting finally got underway inNew Jersey today. Meadowlands senior VPDennis O. Dowd said, “Technically, everythingis running smoothly. We’ve already exceeded3,000 accounts, and we’re projecting handle ofmore than $35 million for 2005, which is 20%beyond our expectations.” Betting is not limitedto New Jersey races, but includes all incomingsimulcast signals offered by NewJersey’s three tracks, so the program is readyfor Kentucky Derby weekend, as Dowd hadpromised.JENNA’S CHOICE INJUREDJenna’s Choice, winner of all three finals leadingup to Saturday’s $225,480 Berry’s Creek at theMeadowlands, broke a rear pastern in lastweek’s prep victory and is out for the year.