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, EditorKEEP AN EYE ON THIS ONEYoubet.com, which registered huge 75% gainson Preakness betting over its numbers a yearago, thinks last week’s U.S. Supreme Court decisionin a wine case could enable it to offer itsservices in nine states where it is now prohibited.Jeff True, Youbet’s western region generalmanager, says “We think this decision couldgo a long way in allowing us to operate in thoseother nine.” Youbet’s hopes, which were reportedalong with details of the decision by InteractiveGaming News, which keeps a closewatch on the pulse of Internet wagering and gaming,are based on a court decision written by JusticeAnthony Kennedy. It argues that if in-statecompanies are allowed to partake in a form of commerceamong in-state companies, that form of commercealso must be opened to out-of-state companies.The 5-4 decision came in the consolidatedcases of Granhold v. Heald in Michigan andSwedenberg v. Kelly in New York. The centralissue was whether a state can prohibit the onlinesale of wine to its residents from an out-of-statewinery, while allowing in-state wineries to sell theirproducts as long as they don’t ship those productsacross state borders. Justice Kennedy wrote,“States have broad power to regulate liquor. Thispower, however, does not allow states to ban, orseverely limit, the direct shipment of out-of-statewine while simultaneously authorizing direct shipmentby in-state producers. If a state chooses toallow direct shipments of wine, it must do so onevenhanded terms.” Kennedy also said thatlaws blocking some businesses from a marketwhile allowing others to access it are in directviolation of the Commerce Clause. Lawyers whoopposed allowing Internet importation arguedthat the 21st amendment, which ended prohibition,overrode the Commerce Clause, but theCourt rejected that argument. Youbetthinks the decision is applicable to interstatehorse race betting.May 26, 2005Kennedy was joined in the decision by justicesAntonin Scalia, David Souter, Ruth BaderGinsburg and Stephen Breyer, with chief justiceWilliam Rehnquist and justices John Paul Stevens,Sandra Day O’Connor and Clarence Thomas dissenting.SLOTS DIE IN TEXAS AT 2 A.M.Things are different in Texas, as everyone knows,and they were different as slots at tracks camedown to the wire in the Senate last night. First, inan unusual legislative development, the Texas Senatevoted yesterday, 16-15, to shut off debate onHouse Bill 3540, a crucial revenue measure withabout 50 amendments including one that would haveallowed VLTs at tracks. Senator Ken Armbrister,a Democrat who wanted to sponsor a VLT amendment,was bristling at the parliamentary maneuver,and at 2 a.m. this morning, as the session woundto a close, he introduced his bill. Or tried to. Hebegan by saying, “This is a small amendment thatwill bring in billions of dollars for the State ofTexas....,” but that was as far as he got. RepublicanSenator Jane Nelson, an opponent, raised apoint of order that it was after midnight and nodebate could be considered. Armbrister said, “Ibelieve it’s before midnight...in Vegas,” andNelson shot back, “But senator, what happens inVegas stays in Vegas. You know that.” After aparliamentary discussion, Lt.Gov. David Dewhurst,presiding over the Senate, ruled that time had runout, and the measure died as the legislature dissolved.PROBLEMS IN WONDERLANDWonderland Park, Boston’s big dog track that hasbeen closed since May by a serious epidemic ofkennel cough and does not plan on reopening untilJune 10, has asked the Massachusetts RacingCommission to reduce its season by 106 performances,from 256 to 150. The track says itreached the decision before the siege of sicknessdecimated the ranks of its dogs.