HARNESS TRACKS OF AMERICA Executive Newsletter

HARNESS TRACKS OF AMERICAJAMIESON, PALONE, HTADRIVERS OF 2009Jody Jamieson, Ontario’s new driving champion,has added North America’s top harness racingaward for drivers to his honors. Jamiesonfinished in a dead heat with Dave Palone ofPennsylvania for Harness Tracks of America’sDriver of the Year award for 2009.It was Palone’s fifth HTA cup, and Jamiesonbecame the first Canadian driver ever to winwhile competing almost exclusively in Canadianraces. Eight other Canadians have won in the42-year history of the competition, but all droveprimarily in the United States. Jamieson drovein 3,322 purse races last year, but 3,247 of themwere in Canada and only 75 in the U.S.Both Jamieson and Palone scored 88 points inwinning the honor, the toughest in harness racingto attain. To win, a driver must finish in the top25 internationally in three categories – raceswon, money won and percentage standings.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, January 4, 2010Only 5 drivers, out of 4,030 who drove in at leastone pari-mutuel race last year in the U.S. andCanada, were able to accomplish that feat.Jamieson won 796 races to finish first in thatcategory, and was 7th in both money won, with$10,400,000 earned by his mounts and in-themoneypercentages, with a .366 average. Paloneaccumulated his points by finishing fourth inraces won with 697, 6th in money with $10.7million earned by horses he drove, and fifth witha .382 in-the-money average in that category.Jason Bartlett finished third with 86 points, TimTetrick was fourth with 78, and Jim Morrill Jr.finished fifth with 71.Points were awarded 25 for finishing first in acategory, down to 1 for finishing 25th, with a 25point bonus for being in the top 25 in all three.Here are the final standings of North America’stop 10 in HTA’s Driver of the Year 2009 trophyrace.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, January 5, 2010PLAYING IT CLOSE IN PAThe political game in Pennsylvania obviouslywill be played to the last card. Gov. Ed Rendellhas released a list of 995 state jobs involving21 agencies that he will eliminate Friday if thelegislature does not end its partisan bickeringover the table games bill that has been kickedaround for three months in Harrisburg. Rendellinstructed state secretary of administration NaomiWyatt to let each department head know howmany jobs must be deleted in their staffs. Twohundred fifty million in potential state income isat stake, and furlough plans are being completedas the deadline approaches. House and Senateleaders of both parties say they are optimisticthey will reach an accord by Rendell’s firingdeadline. With three days left, the leader of theSenate said, “We are not saying at this point thatthere’s a deal, although we believe we’re on theverge of a final agreement.”MUST BE THE MOUNTAIN AIRThe New York Catskills once were the scene ofquiet and beauty, and New Yorkers flocked to“the mountains” for rest and recreation. Theyare not tranquil now, with bitter internecinewarfare at Monticello Raceway, where its ownersEmpire Resorts and that company’s formerCEO are embattled in a bitter dispute. JosephBernstein, who ran the company prior to his departureDec. 31, has filed a complaint with theNew York Racing and Wagering Board, sayingthat Empire’s financial backers, the Malaysiancompany Kien Huat, has moved to take controland force Empire out of most revenues from thepotential casino deal with the Mohawk Indians.Bernstein’s successor as CEO, Joe D’Amato,says the charges are “simply untrue,” and thatBernstein filed the complaint after a dispute overseverance pay. Bernstein, still a major investorin Empire, says he was told to stayaway from meetings by Kien Huat reps.ANOTHER EXEC GETS BOOTIn Connecticut, the Mashantucket Pequot Indians,operators of famed Foxwoods Casino andthe nation’s richest tribe, have banished theirformer deputy chief operating officer after a juryfound him guilty of eight counts of wire fraud.The former tribal leader, Christopher Pearson,was convicted of defrauding investors in a resorton a Honduran island in the Caribbean. He faces20 years in prison and fines as high as $250,000,and the Mashantucket tribal Elders Council voted22-0 to banish him from the tribe. The 600members of the Nation, once in abject poverty,have reaped rich rewards from Foxwoods andother tribal enterprises springing from it.LOOK INWARD, AND PAY FOR ITTurf Paradise, the Phoenix thoroughbred track,has lost a battle in its fight to avoid having topay for a state investigation of its ownership.The track had been notified four years ago thatthe state had hired a certified public accountantand an investigator to check on ownershipprincipals before issuing a license renewal, thatthe cost would be around $50,000, and that TurfParadise would have to pay the cost of the stateinvestigation. The track paid the $50,000, andthen was told additional investigation had costanother $11,261. Turf Paradise sent a check forthat too, but paid under protest. The license wasrenewed by the racing commission, over a recommendationagainst doing so by the state racingdepartment. Turf Paradise filed for a refundand went to court, and this week the ArizonaCourt of Appeals told Turf Paradise the ArizonaRacing Department was legally obligated to investigateindividuals and companies, and thatthe parties under investigation had to bear thecosts incurred in conducting a full backgroundinvestigation. Physician, heal thyself.Get your HTA annual meeting reservationsin to Jen Foley in our office, please.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, January 6, 2010SORRY: NO SALE THIS WEEKFor those waiting breathlessly for the sale ofLaurel Park and Pimlico in Maryland, longscheduled for this coming Friday, no sale. It nowhas been postponed until Jan. 21, after Marylandlawyers argued in a court filing that Magnahad not complied with an agreement promisingthat all six bidders would have to promise tokeep the Preakness, second leg of thoroughbredracing’s Triple Crown, in Maryland. Magna’slawyers said all six bidders had agreed to that,but Maryland’s lawyers were looking for signedwritten agreements to that effect, which have notyet been received.Yesterday the judge in the case, Mary Walrath,rejected arguments from attorneys representingformer Maryland Jockey Club sibling owners,Joe and Karen DeFrancis, and others, who contendedthey have exclusive rights to slot machinegambling at Laurel Park, under a 2002 agreementin which Magna gained its ownership positionin the two tracks. The DeFrancis team nolonger has a slots license, and lawyers arguedsuccessfully that because it doesn’t that part ofthe 2002 agreement no longer exists. Judge Walrathruled that nothing in which the DeFrancisparties and their LLC can claim an interest isbeing sold at auction, and that Magna thereforecan void the agreement. She said, “I construethe contract to mean that any license or othermeans by which the debtor might be able to operatean alternative gaming facility was to beconveyed to MV LLC. It is clear the debtor doesnot have any such rights currently.” It appearsthat the only way DeFrancis can recapture anyslots rights is if he is the winner in the upcomingauction, now two weeks away.TIME FOR RESERVATIONSIf you have not made your HTA hotel reservations,Jen Foley awaits to oblige.RULINGS IN ONTARIO, TOOThe pace of justice in Canada apparently is nofaster than in the U.S. The Ontario Racing Commission,acting on a 2006 proposed order, hasissued a release dated yesterday, Jan. 5, 2010,dismissing a motion to stay filed by lawyers forDaniel Waxman and Vandalay Racing more thanfour and one-half years ago. The original proposedorder was issued on May 10, 2006, callingfor five years suspension and a fine of $100,000Canadian for violation of the hidden ownershiprule. Waxman and Vandalay appealed nine dayslater, on May 19, 2006. An ORC panel heardthe appeal on January 26, 2009, with subsequenthearings January 27 and 28 and May 4 and 21last year. An attorney for Waxman and Vandalayfiled a motion staying the proceedings for“excessive delay” and failure to make “full andcomplete disclosure” or, as an alternative solution,for further disclosure. Upon hearing evidencefrom seven witnesses, a release was issuedyesterday saying the commission panel had dismissedthe motion to stay filed by Waxman andVandalay.AND ONE MORE, IN NYBloodhorse.com correspondent Tom Precious reportsthat the New York Racing Association hasfiled a lengthy brief in federal court arguing thatthe bankruptcy petition by the New York CityOff-Track Betting Corporation should be tossedout. NYRA is the NYCOTB’s second largestcreditor behind Yonkers Raceway, and NYRA istaking the position that OTB failed to negotiatewith any of its creditors before filing for Chapter9, and that it is using the bankruptcy “as a maneuverto try to get its way on its long-stalled legislativeagenda at the state capitol.” NYCOTB,an HTA associate member, would not commenton the action, but it has consistently charged thatthe current system of payments is archaicand unworkable.

HARNESS TRACKS OF AMERICASTRAIGHT TALK IN ONTARIORod Seiling, chairman of the Ontario RacingCommission, has written an open letter stronglycritical of tracks and horsemen who have beenunable or unwilling to reach a new agreement onsimulcasting. Seiling ordered ORC executive directorJohn Blakney to intervene and work withthe parties involved, and presented the heart ofthe issue in a paragraph reading, “Whether theparties realize it or not, horse racing is in a crisisas it relates to the public betting on its races....Itcannot be allowed to become a total ward of thestate. It must keep what customers it has andidentify new ways and means to build the base.In short, horse racing has to have an entertainmentvalue component. Allowing the old ways ofshutting out the customer -- a process that helpedbring on the current crisis -- is not in the cards....Horsepeople and racetracks are partners; it istime for them to start acting as such.”Underscoring Seiling’s remarks was a developmentin Illinois, where the racing commissionstripped Fairmount Park of all but 3 days of itsdate allocation this year because a dispute betweenthe track and labor has not beensettled. The track had been awarded 52dates by the commission, but when theExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, January 7, 2010FINALLY: TABLE GAMES IN PA union representing the six state racing officialsIt took time -- a lot of it -- but the Pennsylvania working at Fairmount Park turned down theHouse, faced with blame for 1,000 lost jobs and track’s latest offer this week, failing to meet athe potential for losing up to 10,000 others, finallypassed the casino table games bill, 103-89, to 3, on April 27, 30, and May 1. Fairmountcommission deadline, it cut the meeting from 52and sent it to Gov. Ed Rendell for his certain signature.Rendell had threatened to fire 995 state harness racing. What happens to all other trackraced 232 dates in 1999, the last year it offeredemployees tomorrow if the bill had not been employees is uncertain, and track president BrianZander said he had no comment at present.passed by then. Racinos at the state’s tracks willbe able to install 250 tables for poker, blackjack The dispute involves health insurance issues.and other games, and smaller resort casinos will Racing board executive director Marc Lainoget 50. State gaming board officials say it could said, “The deadline has come and gone,” and hebe six to nine months before the games are operational.modify its order and restore racecalled it “highly unlikely” that the board woulddays.IN OTHER RACING NEWS.....Although news headlines were wildly disparate-- Thoroughbred Times led its story saying,“Kentucky Attorney General: Instant RacingNot Permissible” while the Louisville Courier-Journal headlined its story, “AG says slot-likeInstant Racing machines OK,” it appears whatthe AG really said was state racing rules wouldhave to be rewritten to allow Instant Racing, butthat could be done if the governor and racingcommission chose to do so. Gov. Steve Beshearsays he still calls video slots “the best solution forour struggling signature industry,” and HouseSpeaker Greg Stumbo, who is introducing a billthat would allow it, asked, “If the governor couldallow Instant Racing, then why couldn’t the governorallow slot machines at race tracks?”....InIndiana, a Senate committee is considering legislationthat would withhold lottery winnings ifwinners owed child support payments. Morethan 165,000 non-custodial parents each owemore than $2,000 in back payments in Indiana....In Delaware, a report to the sports commissionsays the state needs two more casinos, but acknowledgesgranting them would cut profits atexisting racinos at HTA members Dover Downsand Harrington, and at Delaware Park.

HARNESS TRACKS OF AMERICARENDELL SIGNS TABLE GAMESBut he does so reluctantly. After his threats to fire995 more state employees, on top of 731 alreadylet go in 2009, the House got off its collective buttand, with a day to go until the Jan. 8 deadlineRendell had imposed, passed what the governorcalled a flawed bill. “I signed this bill despitethe misgivings I have about it,” Rendell said.“I have serious misgivings about ‘sin’ taxes as away to go. There is no sense of celebration.” Hecalled the bill “laden with pork,” looking afterspecial projects such as hospitals and schools incertain legislators’ districts. “This is no way torun a railroad,” Rendell said. Included in theprovisions Rendell objects to is an exemptionfrom Philadelphia’s indoor public smoking banfor Philadelphia’s two prospective casinos. “Idon’t think it’s an improvement,” Rendell said,“to take away Philadelphia’s right to set its ownrules on smoking. That part of the bill bothersme.” All of the flaws may not have been the wayto run a railroad, but it was a way to get the billpassed, with a promise of a quick infusion of $200million in table game licensing fees. Pennsylvaniatracks, with Mohegan Sun at Pocono leadingthe way, were quick to act. The track, which enjoyeda 19% increase in slots revenue last year --the biggest of any of the six racinos and casinoscurrently operating in Pennsylvania -- receiveda flood of applications for the 400 jobs trackpresident and CEO Bobby Soper says will resultfrom the table games expansion. Soper alsosaid passage could speed up plans for Mohegan’snine-story, 300-room hotel planned to adjoin thetrack’s racino. Pocono Downs now has 2,466slots, 10 restaurants, 7 bars and 6 retail shops.The area’s Wachovia Arena at Casey Plaza alsowill get a name change, thanks to Mohegan Sun.Later this month it will become the MoheganSun Arena at Casey Plaza, after the trackagreed to pay Luzerne county $2.375 millionover 10 years for the change.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, January 8, 2010 (Delayed)Pennsylvania’s slots played an obvious role insharp drops in New Jersey gaming, where all 11Atlantic City casinos reported losses in November,the last month for which results are available,as casino win dropped 13.4%, slot revenuefell 9.5%, and table games were down 21%. Aspokeswoman for the New Jersey Gaming Associationacknowledged the impact, saying, “Nowthat casinos are open in Pennsylvania, residentswho might have made the drive to Atlantic Citynow don’t have to hop in their cars and drive formore than an hour.”In Kentucky, the attorney general said “a fewtweaks” in present regulations could make InstantRacing electronic games, based on thousandsof old results, legal if the racing commissionand governor chose to do so.In New York, a state supreme court judge granteda temporary restraining order to hold up enforcementof the out-of-competition testing rulespassed recently by the New York Racing andWagering Board. The TRO was requested bythe New York Standardbred Owners Associationand others. In an interesting “Yes...but” explanation,the SOA said no one should be permittedto engage in blood doping, but veered awayfrom out-of-competition testing that is increasingcoast-to-coast as an integrity measure, sayingthe New York rules “provide absolutely nosafeguards to protect innocent trainers, ownersand farm owners from being subjected to arbitrarytargeting of the Racing Board.” The SOAsays testing for detection of blood-doping agentsshould be administered “on race night, exactlywhere EPO testing belongs.”BUNNY LAKE, VARENNE ARE INThe brilliant pacing mare and the Italian trottingworld record money-winner were chosenby members of the Harness Racing Museumfor induction into the Living Horse Hall ofFame in Goshen, NY.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, January 11, 2010THE NYRA BATTLEFRONTLatest reports from the front, the first from JimOdato of the Albany Timesunion.com, are thatthe New York Racing Association is preparingto turn over requested materials to state comptrollerThomas DiNapoli. Odato says the informationwill include the one item NYRA mostwanted to avoid disclosing, the salaries of itsmain officers, which Odata says are more than$400,000 each for president Charles Hayward,chief operating officer Hal Handel, and chief attorneyPatrick Kehoe.NYRA, meanwhile, is proposing that it take overbankrupt New York City OTB and its 1,381 employees.Hayward made that announcement lastFriday at a legislative hearing in Albany. He saiddetails would be announced this week or next.At the same hearing, NYCOTB president SandyFrucher said he wants the legislature to set feesOTB pays tracks at a “fair market value;” thatOTB will cut its work force in half; and that heplans to cut OTB parlors from 55 to 20 or so, andplace as many as 1,300 betting kiosks in bars,restaurants, bodegas and other locations in NewYork’s five boroughs. He called the OTB parlors“much too expensive. They are a disaster.”Legislators immediately took shots at the kiosks,saying they would encourage juvenile betting.33 MONTHS FOR CARRUTHERSDavid Carruthers, the former chief executive officerof the now defunct British offshore gamblingoperation BetOnSports, has been sentenced to 33months in federal prison. Carruthers, 52, pledguilty to one count of racketeering. The JusticeDepartment reported that bettors lost between$7 million and $20 million wagering with BetOn-Sports before it ceased operations four years ago.The prosecuting assistant U.S. attorney said thefact that Carruthers is a foreign nationalindicated U.S. determination to end Internetoffshore betting.$20 MILLION IN WEG STAKESWoodbine Entertainment Group has announceda 2010 stakes schedule of more than $20 million.The program, which Woodbine calls “the richestand most attractive on the continent,” featuresthe $1.5 million Pepsi North America Cup for3-year-old pacers on June 26 at Mohawk. Thatday’s program will exceed $3 million, with thecard also including the $680,000 Fan Hanover,$600,000 Elegantimage and $400,000 Goodtimes.Two other million dollar stakes are scheduled, the$1 million Metro for 2-year-old pacers on Sept. 4and the $1 million Canadian Trotting Classic onSept. 18, both at Mohawk. Purses for the CanadianPacing Derby and Maple Leaf Trot, both tobe raced July 24, have been boosted to $820,000,and the Ontario Sires Stakes on Nov. 13 will be a$2.4 million Super Night program, according toWoodbine’s vice president of standardbred racing,Bruce Murray.AROUND THE CIRCUIT.....This is the final week of operation for the MICH-IGAN RACING COMMISSION. It is being abolishedand the Michigan Gaming Control Boardwill take over its regulatory responsibilities....FRANK MAROTTA SR., a former HTA directorfor Muskegan Race Course, has died at 85.HTA extends its sympathies to his large family....The U.S. HARNESS WRITERS PRESIDENT’SAWARDS for 2009 go to Bob Hayden, the Meadowlandsstatistician; Dr. George Maylin, CornellUniversity’s renowned researcher in pharmacologyand toxicology; and Bob Galterio, generalmanager of Yonkers Raceway....THE OHIOUSHWA chapter RAMBLING WILLIE AWARDhas been won by Senena Esty of Spring HavenFarm, for two decades of service to the sport inOhio. Mrs. Esty is a director of the Ohio HarnessHorsemen’s Assn., and she and her husband arepart of the Muscle Hill syndicate. Her sisterStephanie bred Somebeachsomewhere.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, January 12, 2010STRONACH SETTLES, SAVESThe name may change, but the face is familiar.In a deal announced Monday, MI Developments,the parent company of Magna Entertainment,aims to take over Santa Anita, Gulfstream Park,Golden Gate Fields, AmTote, and XpressBetin exchange for the approximate $435 millionowed to MI by Magna Entertainment. If a federalbankruptcy judge approves the convoluteddeal, unsecured creditors, who are owed some$250 million, will receive $76.5 million in cashand reimbursements, and will split proceedsfrom the sale of Lone Star Park, Pimlico, Laurel,and Thistledown in various ways with MI.Under the arrangement, Magna Entertainmentcould emerge from bankruptcy in the next fewmonths.THE HIGH COST OF COVERAGEChurchill Downs is seeking more NBC coverageof pre-Kentucky Derby events in order to promotethoroughbred racing. So the two have enteredinto an agreement, in which NBC will showsix important races leading up to the big one inthree one-hour broadcasts entitled “Road to theKentucky Derby.” The deal is not a freebie, however.Churchill will pay up to $2 million for thecoverage. It is a one-year contract, but Churchillsays it hopes to make it multiyear. Happiest ofall, we presume, is the talent crew, with six additionalbig checks for their work on the telecasts ofthe Louisiana Derby from Fair Grounds, Lane’sEnd from Turfway Park, Santa Anita Derbyfrom Santa Anita, Wood Memorial from Aqueduct,Blue Grass from Keeneland, and ArkansasDerby from Oaklawn Park. Churchill and NBCare calling the coverage part of their “big eventstrategy,” and will include stories on Derby fashions,celebrities and other off-course features, anumber of them designed to attract women fans,according to the Louisville Courier-Journal.A track spokeswoman said the series“is something we’d like to build on.”WHAT AC WANTS, AC GETSIn the state of New Jersey, it is good to be a casino,if you enjoy getting what you want. The latestcurtsy to the casino crowd came yesterday, whenthe Senate and Assembly approved proposals toallow staff and state government officials to takelobbying and other jobs with gambling interestsimmediately on leaving their government positions.Currently and for 30 years the law hasrequired a two-year hiatus between those events.Where could something like this come from?For one thing, it enables staffers and others whohave worked with outgoing governor Jon Corzineto trade on their contacts and friends inhigh places and avoid those long unemploymentlines. Not everyone in Trenton, the state capital,was thrilled. Republican assemblywoman AmyHandlin, expressing her displeasure to the bill’ssponsor, Democrat Joan Quigley, said, “No matterhow you slice it or dice it, this is a bill aboutrolling back conflict-of-interest restrictions.”One Democratic legislator who voted against themove, which passed the Assembly 42-31, andfour hours later the Senate, 23-11, said, “It justfelt odd, the timing and everything.” The Pressof Atlantic City, reporting on the vote, said, “Theimplications of the bill are wide-ranging. Notonly could government employees take jobs withfirms that have standing contracts with casinoclients, but firms that employ former state officersor employees could now actively seek contractswith gaming companies and those seekinglicenses.” Not surprisingly, the former mayorof Atlantic City, Democratic state Senator JimWhelan, applauded the move. The Press quotedhim as saying the casino industry had earned theright not to be regulated so stringently by postemploymentrestrictions, because “They haveproved themselves.” Republican state SenatorGerry Cardinale, dissenting, said, “This isn’t justa slippery slope. This is walking on a glacier,with a lot of money floating around.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, January 13, 2010PANEL SAYS NO IN DELAWAREFive of six members of Delaware’s Sports andVideo Lottery commission have overruled a paidstudy and recommended that no new casinos bebuilt in the state. The decisive decision came despitea report that had been commissioned andprepared by a New Orleans consulting firm thatsaid two new venues would raise state revenueand not put Delaware’s three existing racinosout of business. The sports commission thoughtotherwise, several members insisting that anyfinancial harm to the existing track operationswas unacceptable. The majority sent the paidstudy to the legislature on its first day, addinga contradictory footnote that read in part thatthe commission “concludes that it opposes thede facto finding in the report that would recommendtwo additional video lottery facilities, dueto the potential job losses, not-withstanding anynet job gains, (and) the potential damage to thehorse racing industry and destabilization of thethree current video lottery facilities.” The legislature,in a session that adjourned last June 30,approved table games for Delaware, but left unfinishedthe business of how they would be runand regulated. That matter will be resolved inthe legislative session that began this week. TheHouse majority leader, Pete Schwartzkopf, andgovernor Jack Markell and his key departmentheads favor new casinos, presaging lively debateahead.The same is true in Kentucky, where Senatepresident David Williams filed a constitutionalamendment this week that would require anytype of expanded gaming be submitted to astatewide referendum by voters. His bill, SenateBill 2, would eliminate the possibility of slots attracks being permitted by state statute. Trackslots were approved by the House lastsummer, but the measure died when aSenate committee killed it.JUDGE SAYS NO TO BIG BANKA federal judge made short work of a lawsuitfiled by Wells Fargo Bank against the Lac duFlambeau tribe in Wisconsin. The bank chargedseveral violations of an agreement signed withthe tribe a year ago and asked the court to appointa receiver to overlook provisions agreedto by the tribe in relation to bondholders. Thetribe defaulted last month on $50 million worthof bonds purchased by Saybrook Capital of California,that were issued with Wells Fargo as thebondholders’ trustee. The Indians’ responsewas that appointing a receiver would constitutea management contract, which would have requiredapproval by the National Indian GamingCommission, which never was issued. U. S. judgeRudolph T. Randa, in a one-page ruling, agreedwith the tribe and declared the agreement betweentribe and bank two years ago to be a managementcontract, that without NIGC approvalwas null and void. Marilyn Neuburger, a financialanalyst who specializes in Indian gaming forFitch Ratings, told the Milwaukee Journal-Sentinelthe case would be watched closely because ofthe chilling impact it could have on other tribeshoping to tap the bond market. “Having noability to enforce collection of a bond debt is anightmare for investors,” she said. “It’s sort ofan investor’s worst-case fear.”DRAZIN TO NJ COMMISSIONAs one of his final acts as outgoing governor, JonCorzine appointed thoroughbred owner and attorneyDennis Drazin to the New Jersey RacingCommission, reportedly to be chairman. Drazinhas served both as counsel and president of thethoroughbred horsemen’s association in NewJersey, and has clashed with the commission inthe past. He also received the Sports and ExpositionAuthority’s Buddy Raines award for meritoriousservice to New Jersey’s thoroughbredindustry, and races his horses at MonmouthPark and the Meadowlands.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, January 14, 2010NEW GUV SAYS “BAD IDEA”That’s what New Jersey’s new governor ChrisChristie said of one of outgoing governor JonCorzine’s last acts as governor. Christie said theidea of repealing a 30-year prohibition on exitingstate employees joining firms that represent casinoswithin two years of leaving their state jobswas a bad idea, and he urged Corzine not to signit. Christie, a former prosecutor, said, “I thinkthat’s a bad thing. For a governor who’s said hewants to be tough on ethics, I hope he doesn’tsign it. This is not the era in which we want toloosen ethics laws.” A few hours later, Corzine’soffice announced the deed was done, and he hadsigned the bill. If you were thinking of invitingboth governors to dinner, you might plan on doingit on different nights.THE WINNERS’ CORNERDriver DAVID MILLER, named to Ohio’s harnessracing Hall of Fame by the Ohio chapterof the U.S. Harness Writers Association...DriverCHRIS PAGE, 26, chosen as the Peter HaughtonMemorial Award winner, honoring a young risingstar, by the Ohio writers.....Sportswriter BOBJORDAN of the Asbury Park Press in New Jersey,named winner of the 2009 Clyde Hirt mediaaward for coverage of harness racing by HarnessHorsemen International....Harness horse ownerW. KENNY WOOD, winner of HHI’s DominicFrinzi Person of the Year, for more than a dozentrips to Ghana where his Lifetime Well Drillingcompany has drilled hundred of wells to provideclean drinking water for residents....OwnerFRANCIS AZUR, winner of HHI’s AppreciationAward for his work in promoting and supportingthe Orleans county fair in Vermont....Photographer CLAUS ANDERSEN of CanadianSportsman magazine, winner of first place forexcellence in harness racing photographyin both feature and race photo categories.The award, named for the late GeorgeSmallsreed, was sponsored by Jeff Gural.REACTOR COMING, TROUBLEDA hero worshipped by New Zealand kids andtheir parents when he won 16 straight races ayear ago, the pacing star Auckland Reactor,troubled since by a palate problem and otherills, is headed to America. He will undergo treatmentfor the flipped palate, and be trained for areturn to racing in June by Kelvin Harrison inNew Jersey. A son of Mach Three, who also siredHorse of the Year Somebeachsomewhere here asAuckland Reactor was burning up New Zealandracing, has won 25 of 31 lifetime starts and justunder $1.5 million.MD SLOTS ALSO TROUBLEDNot one coin has yet clinked in slot play in Maryland,where they were legalized two years ago,but a legislator already has introduced a bill thatwould divert $50 million from purses to the stateto buy fancier slot machines. The House of Delegateslegislator who has pre-filed the proposal,Frank Turner, wants the purse dedication fromslots cut from 7% to 3.5%. He denies that themove will seriously harm racing, and says thestate-of-the-art machines, for which $30 millionalready is provided, will cost far more, and areneeded to meet surrounding state competition.Turner says racing still will be in “better shape”than they would have been without slots, but onelegislator, Jim Mathias, called the proposal “disingenuous,”and said he thinks it is important toget the five allocated locations up and runningbefore making such a drastic cut. Keep your eyeon this one. It is deadly dangerous, with the potentialto stoke similar cuts elsewhere.BRIGGS, PATTAK WIN HERVEYSDave Briggs, editor of the Canadian Sportsman,and Evan Pattak, who covers racing at TheMeadows and writes for Hoof Beats, have wonthe major writing awards in the annual JohnHervey competition, started by the editorof this HTA newsletter 48 years ago.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, January 15, 2010TWO EXCEPTIONAL REPORTSTwo outstanding pieces of work have been addedto HTA’s resource library for directors and trackofficials. One is the latest HTA purse analysis report,greatly enlarged and expanded to 70 pagesby new executive assistant Steve May, utilizingstatistical information from USTA’s copiousdata bank. The second is the monthly report forJanuary, a compilation of rules and regulationsof advance deposit wagering in the United Statesand Canada. This significant 60-page study hasbeen researched and written by Eric Sindler, anattorney and graduate student at the Race TrackIndustry Program of the University of Arizonahere in Tucson. Both items now have been distributedonline to HTA’s executive list and canbe found in our password-controlled executiveproprietary library.ANOTHER THREAT TO RACINGClose on the heels of a proposal in Maryland tocut purse benefits from slots by 50% comes anotherlegislative threat, this one in Indiana. Thechairman of the Senate appropriations committeeannounced his panel would consider a bill allowingriverboats on the Ohio River and LakeMichigan to move inland. The senator, LukeKenley, a Republican from Noblesville, an establishedharness racing center, said the situation“calls for allowing these people (the riverboatoperators) to do things that they ought to be ableto do to meet anticipated competition head-on.”He was referring to new Ohio competition, andhe was not quoted as to the impact on racinos atHoosier Park and Indiana Downs. An analysisby the Indiana Legislative Services Agency, thegeneral assembly’s non-partisan research arm,addressed that subject, and said Hoosier Parkin Anderson would lose gambling customers to acasino planned by Penn National Gamingin Toledo, Ohio. Obviously additional inlandIndiana casinos would add furtherlosses to Hoosier and Indiana Downs.SEMINOLE DEAL SHOT DOWNIt took only 10 minutes for a Florida House committeeto vote -- either 15-0 or 17-0, depending on yournews source -- to hand Gov. Charlie Crist a stingingrebuke on his gambling pact with the SeminoleIndians. The committee also voted for tax relief tosouth Florida’s pari-mutuel interests, adding emphasisto the killing of the Crist-Seminole pact. TheSeminoles indicated no change in their operationof slots, baccarat, blackjack and other table games,and the governor shook off the vote, saying thelegislative session, which runs until May, offered“plenty of time” for an agreement that could funnelbillions of dollars to Florida schools. The chairmanof the committee that took action, Republican BillGalvano, said the vote indicated the legislature’shope that the federal government would shut downslot machines and blackjack tables at the tribe’s casinosuntil a compact is signed, “This is a signal tothe federal government -- among many other signalsthat have occurred over the past year. Hopefully, itwill be a signal that is not lost on them.” PompanoPark recently installed “virtual blackjack games,”and the Seminoles claim that means the Nation’sblackjack games are legal under federal law. Thetrack and the state scoff at that idea, saying the machinesare slot machines, pure and simple.NEW HOPE FOR ROSECROFTThe powerful president of the Maryland Senate,Thomas V. Mike Miller, has endorsed the idea ofslots in Prince George’s County, the home of RosecroftRaceway. Miller said he was awaiting approvalof the idea by Senator Anthony Muse, a ministerwho represents the county. Muse opposes slots, butsays he would be open to all possible options to saveRosecroft.GET THOSE HOTEL RES’S IN TO HTAIf you haven’t made your hotel reservations for theHTA-TRA meeting March 8-11 at the Hyatt GrandChampions, please do so by contacting Jen Foleyat the HTA office, 520-529-2525, e-mail jen@harnesstracks.com

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, January 19, 2010NY THROWS BOOK AT NYRAThe New York Racing Association faces hundredsof thousands of dollars of fines from thestate Department of Environmental Conservation,according to the Albany Times-Union. Thepaper’s James Odato of its capitol bureau saysNYRA was cited in late December for pollutionviolations, including discharging manure, wastewaterand other pollutants into the Nassau Countydrainage system, which empties into JamaicaBay. The bay includes a wildlife refuge whichis home to wildlife and birds. The violation noticelists nine violations at Belmont Park, threeat Aqueduct and two at Saratoga Race Course,each carrying a maximum fine of $37,500 a day.MD AUCTION DELAYED AGAINWe’re sure the Magna auction of Pimlico andLaurel will be held -- sometime -- but it won’t beJan. 21. Magna Entertainment, which originallyhad scheduled it for Jan. 8, then had it movedback to Jan. 21, now has changed it again, to Feb.10. We’ll let you know the date of the next postponement.Magna says six companies still arein the bidding: the Cordish company; Penn NationalGaming; the Joe DeFrancis family; BlowHorn Equity, a bloodstock consultancy groupled by Jeff Seder; and two unnamed bidders, includinga lead or stalking bidder whose bid willbe the opener in the Feb. 10 round. Maybe.BIG M UPS POPULAR PICK 4The Meadowlands has upped the guarantee onits Pick Four to $75,000 on Saturday and $35,000on Wednesday, Thursday and Friday. The bet,offered on the sixth thru ninth races, features a15% takeout, and has been paying big prices.One winner took the entire pool of $67,998 onJanuary 1, and it averaged $72,399 a card lastyear, with the average payoff $3,113. It paidmore than a thousand dollars nearly 50%of the time, and over $25,000 on four occasions.BIG HITS ON THE BAD BOYSCrime does not pay. At least for those committingthem. Two cases in point, Bob Brennan ofNew Jersey and David Brooks of New York andFlorida. You remember Brennan, he of the FirstJersey Securities and its commercial of “ComeGrow with Us,” with Bob and his helicopter. Heis still in jail, not scheduled to get out until Januaryof next year. Meanwhile, some 27,000 of hisformer customers will share a $5.15 million payoutof his assets, according to the Newark Star-Ledger and its nj.com.As for Brooks, reported back in jail, he wastripped up in part, it turns out, by London policeusing undercover cameras in another case.Harnessracing.com, with reports from Newsday,said the cameras showed Jeffrey Brooks, David’sbrother, and an associate withdrawing more than$3.6 million in pounds, dollars and euros froma safe deposit box. U.S. feds reported Brookscontrolled the money and had not reported itwhile orchestrating schemes to hide overseas assetsworth $25 million. No word on the status ofhis Bulletproof Enterprises, now listed in his sonAndrew’s name.DELAWARE’S QUICK RESPONSEIt didn’t take long for Delaware to respond to tablegames being legalized in neighboring Pennsylvania.A bill introducing them in Delawarewas introduced last Friday and could be consideredby the Delaware House this week.SANTA ANITA BACK TO DIRT?Pasadenastarnews.com reports that Santa Anita,fed up with its racing cancellation yesterday --the 12th in two years -- will replace its synthetictrack before fall. Reports say the track will askthe state, which mandated synthetics four yearsago under the Shapiro-led racing board, toallow it to return to a dirt surface.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, January 20, 2010HARNESS GUY TO THE SENATERegardless of your political affiliation, it’s niceto know we have a U.S. Senator who knows andloves harness racing. Scott Brown, who upsetMartha Coakley to score a once-in-a-lifetimewin for Republicans in traditionally DemocraticMassachusetts in yesterday’s special electionthere to replace Ted Kennedy, has driven awinner in a charity race at Plainridge, and hisyoungest daughter Arianna has been part ownerof a trotter.KY GUV COUNTS ON SLOTSThe governor of Kentucky, Steve Beshear, hasput the challenge of passing slots at tracks directlyinto the hands of his legislature. Beshearproposed a two-year budget to that group yesterdaythat includes $780 million in revenuefrom expanded gambling, which the LouisvilleCourier-Journal says key legislators have said isunlikely to pass. If it doesn’t, Beshear told thelegislature it would have to find other ways to cutthe budget by more than $850 million in the nexttwo years. “Gaming revenue is the only practicaloption to begin funding long-term prioritieswith recurring revenue,” he said last nightto a joint session of the General Assembly. Hisproposed $18.4 billion budget includes no tax increasesor wide layoffs of state employees, butBeshear said, “If the legislature chooses not togo in that direction in terms of gaming revenuesthey have other options. There are tax increases,there are more cuts, there is hoping and prayingthat we get more federal assistance, but that’sabout it.” Another option is to seek statewideapproval of a constitutional amendment, butKentucky tracks have rejected that idea as takingtoo long, although it has bipartisan legislativesupport. They prefer statutory decree,rather than the lengthy and chancy routeof voter approval.HTA DUES SURVEY SENT OUTMembers have received the 2010 dues survey, onwhich HTA dues are based, in their in-boxes thisweek. Action officers and directors are urged torespond as soon as possible, so the track allocationscan be completed and dues assessed.Also, time is short for hotel reservations for theHyatt Grand Champions in Indian Wells, California,where the annual meeting with TRA willbe held March 8-11. If you have not already madeyours, please do so by returning your forms toJen Foley at HTA -- not the hotel directly. Jen’se-mail is jen@harnesstracks.com, or phone 520-529-2525, fax 520-529-3235.AROUND THE TRACKS.....Delaware, where HTA members DOVER DOWNSAND HARRINGTON RACEWAY are located,along with thoroughbred track Delaware Park,will take its case on sports betting to the U.S. SupremeCourt. Gov. Jack Markell announced thestate will appeal a ruling last August in whichthe U.S. Court of Appeals for the Third Circuitdrastically limited sports betting at the tracks’racinos....ANTOINETTE NIGITO, a co-ownerand director of HTA member THE RED MILEand owner of Joie De Vie farm in New Jersey,will receive the Equine Science Center at RutgersUniversity’s Spirit of the Horse award Jan.31 at the SBOA dinner....Good news! HTA memberPRAIRIE MEADOWS will have a 10-dayharness meeting this year after all. It has beenscheduled for October 1-16....Dog racing hasbeen banned by the New Hampshire house, butthe greyhound tracks at SEABROOK and BEL-MONT will be able to handle simulcast wageringwithout live racing....KEITH BRACKPOOL isthe new chairman of the California Horse RacingBoard, and DAVID ISRAEL vice chairman,after chairman JOHN HARRIS announced hewill be leaving the board after nine yearsof service.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, January 21, 2010COLD RESPONSE TO KY GOVGov. Steve Beshear’s effort to get slots at Kentuckytracks approved in his legislature metwith lack of enthusiasm and resistance in thestate capital at Frankfort, and drew a quickresponse from the president of the Senate andspeaker of the House, both of whom introducedtheir own bills. The Lexington Herald-Leader’sJanet Patton reported that even the sponsor ofthe governor’s version, Senate minority floorleader Ed Worley, drew his hand across histhroat when asked about the bill’s chances. Ithas been referred to the Senate Appropriationsand Revenue committee, and Worley told Patton,“Any bill that goes to A&R, normally that’sthe writing on the wall.” Senate president DavidWilliams’ version, Senate Bill 2, calling for astatewide referendum, received State and LocalGovernment committee approval yesterday, butSenator Worley said it doesn’t stand a chancein the full Senate, where 23 votes are needed forapproval. There are 21 Republican votes andone independent, and Worley thinks the bill willbe dead on arrival on party lines alone. Housespeaker Greg Stumbo also introduced a bill ofhis own, its fate unknown. The Senate is to votetoday on the Williams bill.In Indiana, the Senate Appropriations committeewas due to take testimony today on enablinglegislation that would allow the state’s riverboatcasinos to up anchor and move inland. As proposed,such moves would require a $50 millionfee, but would be waived for one of the two riverboatsin Gary, with the second returning itslicense to the state. The Indiana House PublicSafety committee approved by a 7-5 vote a billthat would prohibit smoking in public places, includingbars and restaurants, but exempting casinos.Harness racing in Indiana returns to HTAmembers Hoosier Park on March 25 for arun until July 11 and Indiana Downs fora July 23-Nov 9 meeting.JURY SELECTION FOR BROOKSJurors have been selected for the upcoming trialof David Brooks, whom the federal governmenthas accused of looting $186 million from DHBIndustries, his self-named company that includedmanufacturing of armored vests for troops inIraq. Brooks and his family are probably theworld’s largest single-family owners of trottersand pacers, with the U.S. Trotting Associationreporting one division, Bulletproof Enterprises,as owning more than 400 horses. A federal prosecutor,not impressed, has asked the trial judgeto forfeit the $400 million bond that enabledBrooks to remain free on bail, although he nowis reported as being back in prison for mishandlingand concealing funds in European banks.Brooks’ brother Jeffrey is registered with USTAas corresponding officer for the family’s tremendouslysuccessful Bulletproof Enterprises division,which topped all stables last year with $10million in earnings. Brooks’ wife Terry is listedas owner of several family stables, including TacticalArmor Products and Tactical Armor Enterprises,the first having bred the major stakeswinner If I Can Dream and the latter havingbred the standout filly Not Enough.YOU CAN BREATHE NOWIn case you’re in New York and have been holdingyour breath for two weeks now, or longer,waiting for a promised decision on who willbuild and run the Aqueduct racino, you canbreathe now. Thoroughbred Times reports thatGov. David Paterson didn’t mention the subjectin his budget proposal, but did tab $134 millionas possible income from legalizing extreme fighting,loosely called a martial art.If you haven’t made your reservation for HTA’sannual meeting at the Hyatt Grand Champions inIndian Wells, CA, March 8-11, HTA’s JEN FO-LEY awaits your call at 520-529-2525.The room deadline is nearing.

HARNESS TRACKS OF AMERICAHOUSE APPROVES DEL. GAMESTable games for HTA’s two Delaware tracks, DoverDowns and Harrington Raceway, are halfwayhome to state approval. The Delaware House,with little discussion, passed the measure yesterday,27-5. As passed, the bill calls for a collectivelicense fee of $13.5 million, split among the threeracinos, including Delaware Park, on percentageaccording to play. If they spend a total of $2.5million on capital improvements annually andreach performance goals, the fee could drop toas low as $5 million. The bill provides for racinosto get 66% of gross table game revenue, withthe state taking 29% and 4.5% earmarked forpurses.KY SENATE CHIEF’S BILL FAILSThe president of the Kentucky Senate, DavidWilliams, lost his bid for a constitutional amendmenton slots at tracks yesterday, garnering only21 votes where 23 were required for passage. Themeasure died on a straight party line vote, with16 Democrats opposing. Kentucky law calls fora three fifths majority in both House and Senateon constitutional amendments. Williams,who faces re-election this year, was accused byDemocratic Senator Mike Reynolds of using theattempted vote purely for political purposes.Reynolds was quoted in the Louisville Courier-Journal as saying the move had nothing to dowith gambling, because Williams knew it hadabsolutely no chance of approval in the House.INDIANA VOTE NEXT WEEKIn Indianapolis, the state Senate AppropriationsCommittee discussed but did not vote onlegislation that would allow riverboat casinos tomigrate inland. For a $50 million fee, the casinoscould move onto land in the counties wherethey are located. An exception would be madein Gary, where two riverboats are located,because one license would be returned tothe Indiana Gaming Commission.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, January 22, 2010The Appropriations committee is schedule to voteon the measure this coming Tuesday. If the billwere to pass as written, it could have a heavy impacton racino play at HTA’s Indiana members,Hoosier Park and Indiana Downs. The measureis being considered because of fears that comingcasinos in Ohio will cost Indiana an estimated$100 million in gambling tax revenue.ROCK SHAKEN BY DISPUTEHTA member Rockingham Park, like othertracks affected by the 17-track Mid-AtlanticCooperative, is hurting from the continuedcontractual dispute with TrackNet Media overpercentage fees on simulcasting. The ChurchillDowns-Frank Stronach controlled TrackNetand the Mid-Atlantic tracks are holding out forhigher fees at the tracks they control, includingGulfstream Park, Santa Anita, the Fair Grounds,Golden Gate and Laurel. The dispute, ragingsince October, involves TrackNet’s rejection of amulti-year offer of escalating fees. Ed Callahan,president and general manager of Rockingham,says it has impacted track business there by 10to 15%, and that customers -- including thosefrom neighboring Massachusetts -- have beenseriously deprived of highly desirable simulcastsignals. He called the present deadlock “regretful,”but said he expected an upcoming bill in theNew Hampshire senate would include tracks ina proposal to allow gaming in the state in hotelswith 500 rooms or more.NO FLY-BY SLOTS IN MIAMIIn Florida, Miami-Dade County commissionersvoted yesterday, 8-2, to abandon their quest forslots at the Miami airport. Bowing to opposition,the commission decided, according to memberDorrin Rolle, that it should not pursue a battle itcould not win.Get your room reservations for the HyattGrand Champions in to Jen Foley at HTA.

HARNESS TRACKS OF AMERICAA SHOCKING & SCARY REPORTThe New Jersey Gaming, Sports and EntertainmentsTransition Committee, which has beenworking on approaches to racing, casino andother problems in the state, has issued a draftreport that will shock and frighten the entireracing community, harness and thoroughbred.It overlooks most of the positives of the industryand ignores entirely the most obvious potentialalternative -- slots at the state’s three tracks-- and suggests instead reforms including newagreements with horsemen, an end to subsidies,making racing self-sustaining, consolidating andrestructuring the racing industry, and the possibilityof discontinuing racing at the Meadowlands.The latter is last on the list of the committee’ssuggestions, indicating it may have very lowpriority, but as of the moment it is included inthe 20-page draft of the report that, if approved,goes to new governor Chris Christie.It seems unlikely that Gov. Christie, a successfullawyer and U.S. attorney for the last eight years,would not quickly see the folly of the proposal ofscuttling an industry that employs some 12,000,preserves thousands of green acres in the state,and produces $115 million in current taxesthat with the multiplier effect balloons to aneconomic impact of $750 million, according toa Rutgers University study produced little morethan two years ago. There are, of course, otherpositive actions that can help solve the problemthat are not considered in the draft report. Thegovernor says he and his staff will be studyingthe racing and gaming report -- along with 20others on various aspects of state administration-- and hopefully the racing industry will begiven an opportunity to respond. Jon Hanson,former chairman of the New Jersey Sports andExposition Authority, chairs the gaming,racing and sports committee making therecommendations, and Bob Mulcahy,Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, January 25, 2010former president and chief executive of theMeadowlands complex, is a member. The onlyharness racing member is Mike Gulotta, chiefexecutive officer of Deo Volente farm.Here is the committee’s draft executive summaryon racing and the New Jersey Sports andEntertainment Authority, in its entirety:As budgeted for 2010, horseracing on track isprojected to lose $22 million; the business modelis broken. The agreements with the variousHorsemen Associations will ensure continuedlosses; during 2010 these agreements need to bereopened and renegotiated. It is time to reviewoptions for racing in New Jersey. THE STATUSQUO IS NOT SUSTAINABLE. We encourageconsideration of all the options to make horseracingself-sustaining, including consolidation of racingstate-wide. The ultimate goal is to continue to havelive racing at a venue where the Sports Authorityand its OTW system (ed. note: off-track wagering)can operate without a subsidy. (NJSEA budgetedtotal deficit for 2010 is $38 million.) Anotheroption to be considered is a feasibility study for thecommercial redevelopment of the Meadowlands,including examining other potential uses such asNASCAR.The mission statement includes goals of “eliminatingentities that are based on deficit spendingand no longer relevant to the healthy future ofNew Jersey,” and “acting decisively and immediately.”The reference to closing the Meadowlandsis contained in a section called “NJSEA TransitionTeam Suggested Options to Resolve Losses/Create New Revenue,” and reads: “We need toexplore restructuring the entire operations of theSports Complex to make the Authority at leastrevenue neutral to the taxpayers. This may includediscontinuing racing at the Meadowlandsand restructuring the industry in NJ.”

HARNESS TRACKS OF AMERICAOTB ISSUES MARCH 30 ALERTNew York City Off-Track Betting, complyingwith federal law, has alerted its 1,350 employeesof an impending cessation of operations byMarch 30. The company filed for chapter 9bankruptcy early in December, and a U.S. bankruptcyjudge will rule on OTB’s reorganizationplan Feb. 22. That plan calls for cutting its workforcein half, eliminating more than half of its66 betting shops, and replacing them with five“flagship” sites, one in each of New York City’sfive boroughs. NYCOTB wants a new negotiateddistribution plan for payments to tracks,based on operating expenses, but a state taskforce on off-track betting has recommended thepresent system of payments be retained. LikeNew Jersey, New York breeders fear the proposedchanges would greatly lower purses, andresult in a corresponding lowering of quality ofracing through departures of stables to jurisdictionswith higher purses.BROOKS AT THE BARThe trial of Bulletproof Enterprises’ DavidBrooks and his former chief operating officerSandra Hatfield got underway in federal courton Long Island yesterday, and the New Yorkpress made merry of the proceedings. ReporterSelim Algar of the New York Post opened his storywith, “Even body armor might not help himnow,” referring to Brooks’ hugely profitable ventureof selling bulletproof vests to the army andMarine corps. Brooks and Hatfield are accusedof looting the company, DHB Industries, and iffound guilty of inside trading, securities fraudand other violations they could face up to lifein prison. The prosecutor for the governmentopened his case saying it was about “the nakedgreed of two people...and the lies and the fraudthey used to satisfy that greed.” He saidBrooks was “a voracious lover of luxurywho spared no expense when it came toentertaining himself and his family.”Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, January 26, 2010Brooks’ lawyer responded by saying, “Beingwealthy is not a crime. This is a man whoworked hard for what he got.” The Brooks family’sBulletproof Enterprises racing stable ledharness racing in money winnings last year, with$10 million in earnings.RACING BOARD ROUGHED UPTwo Illinois state legislators, unhappy with thetreatment they received from the Illinois RacingBoard, said yesterday there is some confusionamong racing board members about who hasauthority over whom in the state. State SenatorBill Haine said, “I just have a message hereto the racing board. It is constituted by law tofairly regulate an industry. It is not constitutedto put a part of that industry out of business.”He was referring to the board’s earlier decisionto cut Fairmount Park’s racing dates from 52 to3 because of a track management-union disputeover five or six union racing board employees.The legislators said the racing board was holdingFairmount Park “over a barrel,” and StateRepresentative Jay Hoffman said, “We wereprepared to go to court today to obtain a restrainingorder indicating that the actions of theracing board were unconstitutional and beyondtheir statutory authority.” It turned out the orderwas not needed. The board, whose executivesecretary had insisted was not likely to changeits mind over the date cut, quickly restored thefull dates when a tentative agreement betweenthe board and the union was reached. SenatorHaine was not happy. He said he had a secondmessage for the board, that the Senate confirmsthe governor’s appointment to the board,and that he “will not forget how this track wastreated, and how we were treated in the past fewmonths.” We don’t know how they were treated,but our phone request for information and clarificationfrom the board’s executive director,Marc Laino, was ignored. That’s no wayto run a railroad, or a racing board.

HARNESS TRACKS OF AMERICAA.C. CASINOS DROPPING SIMOThe PressofAtlanticCity.com reports that theTropicana Casino and Resort is the latest AtlanticCity gambling site to drop simulcasting,announcing it was no longer profitable. Thenewspaper’s Web site says the casino closed itssmall operation January 15, letting 9 workersgo, saying it had become unprofitable last year.Although the Tropicana would not say howmuch money it lost, New Jersey Casino ControlCommission figures show gross revenue last yearwas $569,000, down from a high of $1.6 millionin 2000. Gross revenue is not profit, and doesnot include expenses of operation. Only 6 of 11casinos in Atlantic City now offer simulcasting,with the Atlantic City Hilton, Hilton Casino Resort,Resorts Atlantic City, and the Trump Plazaand Trump Marina Hotel Casino now also lackingsimulcasting facilities. Bally’s, Caesars, andHarrah’s Resort and Showboat, all Harrah’s operations,continue to operate simulcasting, butthe president of the group, Don Marrandino,told the Press it was “an amenitythat is part of the city’s overall gamblingExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, January 27, 2010SIMULCASTING MEETING SET experience” and not a big money-maker. Ironically,gross revenue at Atlantic City casinos wasThis year’s Simulcasting Conference, the 18thannual, will be held in Clearwater Beach, Florida,Monday thru Wednesday, September 20- to $4.9 million in 2008. The record year cameup sharply last year, to $7.2 million as compared22. HTA co-sponsors the conference with the in 1998, when gross revenue reached $12.5 million,but the total fell for four straight years fromThoroughbred Racing Associations, with theAmerican Greyhound Track Operators joining 2004 thru 2007. The city’s simulcasting leader isthe event. TRA has announced the location will the Borgata Hotel Casino and Spa, which nearlybe the Sheraton Sand Key Resort, with a specialconference rate of $135 a night. The event its casino four years ago. Borgata’s gross rev-tripled its simulcast facility when it expandedends the day before the Little Brown Jug in Delaware,Ohio, enabling attendees to make both. year, with Bally’s second with $1.3 million. Jimenue from the operation was $2.7 million lastThe agenda, as usual, will cover simulcasting, Wortman, gaming director at the Conrad HiltonCollege of Hotel and Restaurant Manage-account wagering, wagering security and technology.The hotel is located on the shores of the ment at the University of Houston, commentingGulf of Mexico, a short drive from the Tampa on simulcasting at thoroughbred tracks, said,International Airport.“Most people in our current society are unwillingto spend 45 minutes at a racetrack waiting for a2-minute race and another 45 minutes waitingfor another. That’s why casinos put in simulcasting,to bring in races from across the countrywithout the waiting.” That figure seems unrealisticallyhigh for the runners, and totally irrelevantfor harness racing, with official-to-post 17minutes or so at most tracks. But Wortman says,“In this age of instant gratification, this generationof gamblers has gravitated to the fast-pacedslot machines and table games.”AROUND THE TRACKS....The Florida chapter of the U.S. Harness WritersAssociation will induct 95-year-old AIMECHOQUETTE, one of the sport’s most populartrainers during his days as Delvin Miller’strusted first lieutenant, into the Florida HarnessHall of Fame at its banquet March 7.....theCalifornia Harness Horsemen’s Association willpresent Hall of Fame honors to trainers FREDKUEBLER and BOB JOHNSON at their Marchbanquet, and present the association’s LifetimeAchievement Award to longtime owner andbreeder Billie Schwartz and her late husbandMichael.

HARNESS TRACKS OF AMERICASCI GAMES SELLS RACING DIV.Scientific Games is selling its racing division toEngland’s Sportech for up to $83 million, puttingthe English firm in the thick of American parimutuelracing. In making the purchase, Sportechis reaching out to Playtech, a gaming softwarefirm, which says it will buy 19.88 million sharesin the new group, giving it a 9.99% stake, and willprovide new products for the venture. ScientificGames will retain a 19.99% stake in the enlargedgroup. Sportech chairman Piers Pottinger toldReuters, “This is a transformational transactionfor Sportech. It catapults the business onto theinternational stage.” Sportech CEO Ian Penrosewas just as enthusiastic, saying, “This transactionwill provide Sportech with a multi-sport,multi-channel gaming business. The combinedentity, which will have global reach and will beone of the leading pari-mutuel product and systemsproviders, will optimize its existing and newtechnologies to capitalize on worldwide growthopportunities.” Scientific Games also will gainneeded financing and executives Lorne Weil andBrooks Pierce will play a role in the new company.Sci Games will pick up some $33 millionin cash, $10 million in deferred cash in 2013, and$32.1 million in stock shares.HIPPIQUES IS BANKRUPTPaul Delean, writing in the Montreal Gazette,started his story today with this: “AttractionsHippiques has been put out of its misery.” Its1,000 or more unsecured creditors, however, stillare miserable, as nothing remained for them ofthe $400,000 in liquidation of equipment andfixtures at the track, formerly known as BlueBonnets, a longtime major player on the NorthAmerican harness racing scene. A proposal toshare any proceeds with creditors from a Hippiqueslawsuit against Loto-Quebec andthe provincial government was doomed,Delean wrote, when the lottery and theracing group SONACC said no.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, January 28, 2010DeLean said Quebec, currently without horseracing, could get some from owners and horsemenwho have obtained a provincial permit torace this spring. They have asked the CanadianPari-Mutuel Agency to authorize Internet bettingin Quebec in partnership with WoodbineEntertainment Group.DELAWARE TRIES HIGH COURTThe state of Delaware has filed a 106-page appealto the U.S. Supreme Court, contending thata lower court overstepped its authority by limitingsports betting in the state. The Delawarelawyers said the 3d U.S. Circuit Court of Appealshad committed several legal errors whenit said the state could offer no more in sportsbetting than it did in a 1976 experiment. Theycalled the case “a poster child for the propositionthat federal appeals courts should rarely converta preliminary injunction appeal to a merits appeal.”Racinos at HTA members Dover Downsand Harrington Raceway and the one at DelawarePark are paying up to $50,000 each for legalfees covering the state’s filing.ORC FIRST TO ACT ON BROOKSThe Ontario Racing Commission, in its usualpace-setting role, has become the first racing authorityto take action on the Brooks family andits Bulletproof Enterprises and other racing entities.The commission has ordered all tracks inits jurisdiction to immediately report and hold,freeze and maintain all funds, purse accountsand other monies related to Terry, Jeffrey, Andrewand Victoria Brooks and their BulletproofEnterprises, Perfect World Enterprises, VA Enterprises,Goldfinger Enterprises, Seize the DayIndustries and VAE LLC. The actions come afterDavid Brooks, founder of most of those racingentities, went on trial on Long Island on chargesof looting his DHB company of millions and failingto report millions more hidden from thegovernment in England and elsewhere.

HARNESS TRACKS OF AMERICACRITICS RIP NJ COMMITTEEThe New Jersey “transition team” suggestionsfor possibly closing the Meadowlands were metwith harsh criticism today from one of the state’smost important and influential newspapers. TheAsbury Park Press blasted the idea, and suggestededitorially that Gov. Christie “should instructstaff to go back to the starting gage in assessinghorseracing’s future.” The editorial said thepanel was “top-heavy with people whose interestsconflict with those in the racing industry,”and it likened the panel’s deliberations to “askingMcDonald’s to make suggestions to menuchanges for Burger King.” The paper suggestedthat if the Meadowlands were not profitable,the state should find a way to make it so, ratherthan abandoning it. The Press noted that thepanel included “only one representative fromthe horse industry, the CEO of a standardbredfarm. Someone representing thoroughbredowners and breeders should havebeen included.”Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, January 29, 2010NO TIME LOST IN DELAWARE It went on to say the committee was led by theDelaware lost no time yesterday in moving forwardon table games at its racinos, hoping to and included two representatives from thechairman of a real estate management companyget a jump on neighboring Pennsylvania, where lottery, three casino representatives, two peoplethe games also have been approved. Delaware’s from the YES sports network and another realSenate voted 15-4 yesterday in favor of the legislation,and later in the day Gov. Jack Markell racing, particularly for thoroughbreds, got shortestate professional, and concluded, “Horsesigned the legislation into law. The measure establishestax rates, forms an oversight commit-Sen. Richard Codey, probably New Jersey’sshrift.” It suggested Gov. Christie reach out totee, and creates 40 new state jobs for overseeing most knowledgeable legislator on racing issues,the games and regulating them.who advocates slots at tracks in the state. Itconcluded, “Christie can’t let horse racing -- andEd Sutor, CEO of Dover Downs, told delawareonline.comthat Dover’s racino would begin brings -- fall prey to the desires of other gamingthe environmental and employment benefits itworking quickly to order materials for the table interests in the state.” It suggested, “he shouldgames and hire staffers to man them. He expectedthat barring any unforeseen delays, Dover County, then head to Monmouth Park for itstake a drive past the horse farms in Monmouthwould have table games in operation before the May 1 opener. It might help him understand thatPennsylvania tracks.the open space, the jobs and the family-friendlyenvironment horse racing provides is a trifectathe state can’t afford to lose.”ANOTHER BOLD MOVE BY ORCActing in an area too often overlooked by racing,the Ontario Racing Commission has suspendedthree members of the Jason R. Robertson family,after investigating the death of two horsesin their stable that had been administered substancesintravenously.USTA, meanwhile, announced it was withholdingtransfers requested by the Brooks family, whichhad all monies frozen in Ontario yesterday.MAYWOOD OPENS 64TH TIMEMaywood Park opens its for its 64th meeting tonight,which set us to thinking. We were thereon opening night in May of 1946, working in thepress box for famed Chicago newspapermanJames S. Kearns. Wonder if anyone else canmake that statement. Check on that, willyou, Duke Johnston?

HARNESS TRACKS OF AMERICAWHICH PAPER DO YOU READ?Smoke continues to rise from the fires of controversyraging in New York City over Gov. DavidPaterson’s selection of friends, or friends offriends, for the $300 million contract to buildand operate the Aqueduct casino. Your take onthe development might get confusing, dependingwhether you read about it in the Las VegasReview-Journal or the New York Post. The Journalstory quoted Larry Woolf, the Las Vegas casinooperator, who said, “We’ve covered all ourbases and we put together a group of people withunbelievable background and reputation in NewYork.” The Post, which has been blasting the selectionunmercifully, turned its guns directly ontarget once again. The headline of the story read,“Floyd Flake’s friends,” referring to associatesand colleagues of the powerful Queens ministerpolitician.“It’s bad enough,” the story began,“that Senate President Malcolm Smith, Rep.Gregory Meeks and assorted pals are runningwhat looks to be a tax-subsidized slush fund gussiedup as a legitimate charity. But it just bogglesthe mind that Gov. Paterson last week handed thesame set of characters a $300 million contract torun a gambling operation in southeast Queens.The governor on Friday selected a group cobbledtogether by the Rev. Floyd Flake to installvideo-lottery machines at Aqueduct racetrack.Flake is a former congressman and a patron ofboth Smith and Meeks, who represent the area.The two aren’t officially part of the consortium,but that doesn’t mean there is no cause for concern.As the Post reported Sunday, a nonprofitcorporation founded by the two Queens Democrats-- New Direction Local Development Corp.-- can account for only a fraction of the cash ithas received over the years. ...Smith and Meeksmay have had a hand in shortchanging Katrinavictims: Of the $15,000 the charity raisedfor Katrina relief in 2005 with the pair’shelp, only $1,392 was reported spent.”Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, February 2, 2010The story also said Darryl Greene, a minor partnerin the venture and a former business partnerof Smith’s, whose wives both were foundingboard members of New Direction, was convictedin 1999 of stealing $500,000 in city and corporatecash. It looks like Woolf in Vegas was right whenhe said he had put together a group of peoplewith an unbelievable background. It is unbelievable,indeed.GOV NIXES MD TABLE GAMESGovernor Martin O’Malley of Maryland says hewill not support table games or more slots facilitiesin the state. “I’m not interested,” he told biz.journals.com of Washington, in regard to a suggestionfrom the panel controlling slots licensesin the state. Senate President Mike Miller hadrecently suggested them for Rosecroft Raceway,but O’Malley said the Prince George’s Countydelegation, representing Rosecroft’s area, hadoverwhelmingly opposed the idea when it wasdiscussed earlier. O’Malley said he would listento the argument for table games, and expansionbeyond five sites already designated, “but I’mnot at this point in favor of any of that.”HOPE IN ON., DANGER IN IOWAWhile Ontario Racing Commission chairmanRod Seiling was declaring a moratorium on anyrace date reductions in the province, and urgingunity in fighting for inducements for strong liveracing, a cloud of future trouble arose in Iowa.Harrah’s Entertainment has offered the state$70 million to do away with dog racing. Thebattle between casinos and racetracks is just beginning,but in Iowa and New Jersey an ominousshadow is hanging over the sport.DON’T LOSE YOUR COZY ROOMWe’re facing room deadline time at the HyattGrand Champions. If you haven’t made yourreservations, give Jen Foley at HTA a call at520-529-2525. Call Jen, not the hotel.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, February 3, 2010USTA SUSPENDS THE BROOKSThe United States Trotting Association, in accordancewith its rules on reciprocity with otherlicensing bodies, has followed Ontario’s exampleand suspended memberships of the Brooks clanand their extensive stable holdings. The banincludes Terry, Jeffrey, Andrew and VictoriaBrooks, Perfect World Enterprises, BulletproofEnterprises, VA Enterprises, Goldfinger Enterprises,Seize the Day Enterprises and VAE LLC.The action is in conformity with USTA rule 22,section 14, which says in part that, “All personsand horses under suspension or expulsion by anystate racing commission or by a reputable trottingassociation of a foreign country shall uponnotice from such commission or association tothe executive vice president, be suspended or expelledby this association.”BRETT PELLING RETURNINGIn a related development, Steve Kallas, a NewYork attorney, horse owner and correspondentfor The Horseman and Fair World, reportingon the David Brooks trial in New York for themagazine, says documents in the trial indicatetrainer Brett Pelling will be returning to theUnited States and is a potential government witnessagainst Brooks. Pelling may testify that amorphine positive on a Brooks horse led to a20-day Pelling suspension, and to a supposedBrooks payment in stock for helping arrange thesale of the pacer Grinfromeartoear, and then hisinability to pursue the payment because Brookshad the arrangement invalidated. The story alsosays Pelling is reported to be returning to trainhorses in the U.S. again, after his self-imposedexile five years ago. A controversial but hugelysuccessful trainer here for years, Pelling’s returnundoubtedly would shake up the currenttraining scene. He had attributed his departureto a desire to raise his family inhis native New Zealand.NEARLY 60% BACK KY SLOTSA poll conducted for the Louisville Courier-Journalamong 617 registered voters shows nearly60% favor slots at Kentucky racetracks, but85% think the decision should be made by votersand not the General Assembly. The newspaperreports support for slots at tracks are at thehighest level since the polls on expanded gamingwere initiated eight years ago. Gov. SteveBeshear, who included revenue from expandinggaming in his proposed 2010-2012 budget, sayshe sees a need for speed in reaching a decision.He said “the vast majority” of Kentuckianswould approve VLTs, and said the General Assemblymay have to choose between support forslots or reduced support for education. DavidWilliams, president of the Senate, favors a referendum,House speaker Greg Stumbo does not.Stumbo says, “We’re not a referendum state. Wedon’t need to have a vote on it. If we wanted tobe a referendum state, then we’d have to changeour constitution.” The poll found stronger supportfrom those under 50, and more men thanare women in favor.DON’T SIT AROUND WAITINGFor the Pimlico-Laurel auction, that is. Magnahas delayed it again, until Feb. 23, with a hearingto approve the plan on March 3. Observersbelieve, according to the Baltimore Sun, thatMagna is waiting to see if opponents of a casinoin Arundel Mills can get enough signatures toput the issue on the ballot next November. Thatresult could greatly affect the desirability of thetracks at auction.Don’t sit around waiting to get your Hyatt GrandChampion rooms from Jen Foley, either. We areon the edge of close-off, and if you want a stallJen -- not the hotel -- is the stall superintendent.We will have further agenda announcementsof interest next week.

HARNESS TRACKS OF AMERICATHE WRATH OF THE TABLOIDSThat, and the pitter-patter of politicians’ feetscurrying for cover, assure the sustained furyover New York governor David Paterson’s selectionof the Aqueduct Entertainment Groupas the winning bidder in the 9-year-old Aqueductracino saga. The New York Daily News, notabout to let itself be outdone by the rival Post,joined the fray with an editorial headlined, “Badsmell at Aqueduct: State’s racetrack deal stinksworse than the stables.” The editorial began,“The men who misrule Albany have plumbednew depths of public-be-damned irresponsibilityin their flagrantly scandalous plan to bringcasino-style gambling to Aqueduct racetrack inQueens.” The Post, meanwhile, continued itsblasting with a piece headlined, “Bettor wait aminute,” which revealed that Senate Republicanleader Dean Skelos had grasped the moment tohalt the award, charging it “reeked of favoritismand election-year politics.” He questionedwhether AEG had the resources or experience torun a gambling facility, saying, “This is probablythe largest faith-based initiative I’ve ever seen interms of funding to a group.” He called the deal“potentially a conflict of interest,” and told newsmenit was “a behind-the-doors deal that wasn’tvetted in a public way.” Gov. Paterson, meanwhile,defended his decision, saying, “There wasa deadlock. I myself did not have a preference.Time had long since worn out and I was tryingto break the deadlock and that was the bestthing that I could do.” In a quick “Dear Governor”letter of response, on Assembly stationeryand which Silver’s office presumably made surereached an eager press, Speaker Sheldon Silverstrongly contradicted the governor’s version ofwhat happened, pointing out that he agreed tosupport the selection of AEG only after Paterson“personally and strongly recommendedthe selection of the Aqueduct EntertainmentGroup.”Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, February 4, 2010The Post leaped to the cannons, thinking it hilariousthat Bill Lynch, one of Paterson’s leadingadvisers, talked to the governor while travelingon the 9 a.m. Acela express train between NewYork and Washington on a speakerphone. Itquoted Lynch as saying, “Have you seen the Postyet?” referring to a story about charity doingsinvolving the Aqueduct deal, then asking, “Canyou call me back, governor? My phone is stuckon speakerphone.” The Post headlined that item,“Gov’s Train of Thought,” making sure the gaffewent far beyond those in the car who heard itfirsthand.BACK HOME IN INDIANA....And in Indiana, politics also were playing amajor role. The minority leader of the IndianaHouse, Brian Bosma, was quoted in the ChicagoTribune as saying he would “fight any efforts topass legislation allowing the state’s riverboats tomove inland.” After the Indiana casino associationopposed the bill, the Senate removed the onlandproposal. The House still could revive it.Meanwhile, in Iowa, a Senate subcommittee yesterdayapproved unanimously a bill to legalizesports betting in the state’s 17 casinos. The 80-year old president of the Senate, Jack Kibbie,said, “We’ve heard about sports betting sinceI was a pup. It’s already legal in many foreigncountries. I’m just saying why not Iowa?” Oneanswer, senator, is that it’s illegal in the UnitedStates, except in the four states that are grandfathered.Iowa is not one of the four.BARTLETT GETS HIS MUNSONThe old and the new in harness racing met inNew York this week, when the old BrooklynDodger pitcher -- and former harness horseowner -- Ralph Branca -- presented a ThurmanMunson award to current driving star JasonBartlett.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondPaul J. Estok, Editor Friday, February 5, 2010PENN INKS OHIO LAND DEALPenn National Gaming, owner of HTA membersFreehold Raceway in New Jersey and HollywoodSlots Hotel and Raceway in Bangor, Maine, announcedtoday that is has completed purchaseof 123 acres at the site of a former General Motors/DelphiAutomotive plant located on the westside of Columbus, Ohio. The site is the alternatelocation for the development of Penn National’splaned Hollywood Casino Columbus, the budgetfor which has been set at $400 million. Votersapproved casinos in Ohio’s four largest cities inNovember 2009. Based on negotiations with Columbusgovernment, civic, business and neighborhoodleaders, Penn National agreed to seeka state constitutional amendment to relocate theauthorized Columbus casino to the former autoplant, pending voter approval on a May 4 statewideballot. “Closing on this property reflectsour ongoing commitment to work closely withCentral Ohio’s business and community leaderson this relocation effort, which could, pendingvoter approval, result in hundreds of millions ofprivate investment dollars for the west side ofColumbus, an area in need of an economic catalyst,”said Eric Schippers, a senior vice presidentfor public affairs for Penn National. PennNational previously completed the purchase ofsome 24 acres in the Columbus downtown “arenadistrict,” the site authorized for the casino inthe November Constitutional amendment. Accordingto a release from Penn National, that sitewill be put up for sale if the May ballot effort issuccessful. The company hopes to open HollywoodCasino Columbus during the second halfof 2012.REGISTER FOR THE MEETINGThe HTA/TRA Joint Annual Meeting is justaround the corner, March 8 through 11 inIndian Wells, California...get your registrationsin now!TABLE GAMES IN MAINE???A report from the Maine Public BroadcastingNetwork says members of that state’s legislativeappropriations committee are thinking aboutupping the ante at Penn National’s HollywoodSlots Hotel and Raceway by allowing the racinoto offer table games. The committee has spentthe last few weeks listening to ideas about plansto offset program cuts in the governor’s $438million budget revision. State Sen. Debra Plowmansays that when her Legal and Veterans AffairsCommittee meets with the appropriationscommittee, they’ll hear something new. “I thinkwe’re about the only committee that’s pursuingavenues of new revenue that don’t have anythingto do with taxation,” she said. Plowman saysher committee is bringing several gaming proposalsto the appropriations committee, includinga new online Keno game, a new lottery game,as well as a plan to allow table casino games likepoker, craps and roulette at Hollywood Slots. Inaddition to a $5 million license fee, HollywoodSlots officials say the games would generateabout $1.4 million in additional revenue to thestate general fund. A spokesman for Maine Gov.John Baldacci said he could only support such aplan if it has voter approval.GAMING IN HAWAII???Could economic times be so bad that even a statelike Hawaii which has resisted gaming of any sortover the course of its existence could want in onthe action? Perhaps, according to a report in theHonolulu Star Bulletin. Hawaii House Bill 2759was passed by a legislative committee yesterdayauthorizing casino gaming operations on Hawaiianhomelands and establishing a gambling commission.The split would give 80 percent of revenueto the Hawaiian Homelands Trust fund and20 percent to the state’s general fund. Hearingswith other committees are scheduled, andit’s a longshot, but you never know...

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, February 9, 2010POWER OF THE PRESSThe relentless pounding by the New York Postand New York Daily News has brought downtheir first victim in the Aqueduct racino scandal.Darryl Greene, who pleaded guilty to misusinghalf a million dollars in public funds 11 yearsago, dropped out of the Aqueduct EntertainmentGroup and took his tainted Darman Groupwith him. Greene was complying with AssemblySpeaker Sheldon Silver’s demand that nokey members of the winning group could havecriminal convictions involving fraud, theft, misappropriationof funds or tax evasion in the last15 years. The fact that Greene’s conviction came11 years ago indicates that Silver’s condition forapproving Gov. David Paterson’s choice of AEGmay have been based on more than chance, andthat Silver may have known of Greene’s background.Greene said in a statement that he didnot want to disturb the award to AEG.The prospect of endangering the huge award ofthe Aqueduct racino project also brought downchances of Senate president Malcolm Smithsharing in the rich returns. AEG announcedthat Smith will never be given a job with AEGor its related companies. AEG partner JeffreyLevine, the CEO of Levine Builders, who willhelp build the racino, announced that “We canunequivocally state that Sen. Smith nor any governmentofficial involved in this process will everbe employed by Aqueduct Entertainment Groupor any of its partners, investors or affiliates.”Paterson, meanwhile, is under savage media attack,with rumors that he was considering resigningthe governor’s job. Paterson vigorouslydenied that, as well as reports of sexual misconduct.He had confessed to earlier extra maritalaffairs when he was elected. New York’sGothamist reported that the governor“was gnashing his teeth” over the reportsand “lashing out at aides.”MAINE GOV NIXES EXPANSIONGovernor John Baldacci of Maine says he willnot approve any expansion of gambling in hisstate. Baldacci spoke after HTA member HollywoodSlots began asking lawmakers to considertable games, a move already on the way in Pennsylvaniaand about to be in Delaware. Baldacci,in announcing he would veto such legislation,said, “What you have now in Bangor was votedon by the people of Bangor and was voted on bythe people of Maine. The percentages, all of this,was part of a referendum. Any changes in theway that it operates, especially in this particulararea, need to be approved by the people.”MORE ON SPORTS BETS IN NJA New Jersey Senate committee has approveda proposed constitutional amendment to allowsports betting at Atlantic City casinos and NewJersey’s three racetracks. A sister proposal wasto be considered in the Assembly, but was postponedafter Atlantic City Rep. Vincent Polistina,carrying water for the beach casinos, announcedhe would propose changes limiting the changes tocasinos but not racetracks. The proposal passedthe Senate State Government, Wagering, Tourismand Historic Preservation Committee 4-0,and sends the bid for a constitutional amendmentto the full Senate for consideration. All ofthis effort, and that in other states, ignores thefact that federal law prohibits such wagering,except in the four states -- Nevada, Delaware,Oregon and Montana -- where sports betting isgrandfathered by U.S. law. Happily, a voice inthe wilderness arose. Assemblywoman CarolineCasagrande, a Mounmount-Mercer Republican,called for any such proposal to include horse racing.She said, “That industry is under the sameintense competition as the casinos.”LAST CHANCE FOR HYATTIf you plan to join us at the joint HTA-TRAmeeting, call Jen Foley at HTA now.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, February 10, 2010WHELEN VOWS TO BLOCK GOVNew Jersey State Senator Jim Whelen has firedoff a letter to new governor Chris Christie, tellinghim that if Christie decides to support slotsat New Jersey tracks Whelen will block the effortthrough the Senate Committee on State Government,Wagering, Tourism and Historic Preservationthat he chairs. Whelen, a former mayor ofAtlantic City, said, “The governor comes acrossas a direct, blunt guy, and I decided to send avery direct, blunt letter so we’re not equivocatingor leaving the door ajar.” Whelen’s letterread, “I respectfully request that you informyour advisory committee to seek alternative solutionsto the racetracks and the Meadowlandsproblems. Solutions that will not divide us geographicallyand that will respect the investmentof the billions of dollars made in good faith inAtlantic City, and the contributions that casinoshave made in Atlantic City and New Jersey.” Ina less hostile response, a Christie spokesman,Michael Drewniak, told media that the governor“wants to come up with a comprehensive policythat takes into account all stakeholders and formulateour policy based on their (the advisorycommittee’s) recommendations.”Freehold Raceway, which previously did not acceptthe casinos’ subsidy money, now has, to thetune of $4.8 million that it will distribute to trackpurses. Chris McErlean, president of the track’sowner, Penn Wood Racing, Inc., noting the dropin available purse money, said the funds will helpthat aspect of management.BIG M, BIG A, MEADOWS CANCELFacing the second major snowstorm in five days,eastern tracks are shutting down live racingagain. The Meadowlands, Aqueduct and Meadowsharness have cancelled today’s cards,along with Penn National in Pennsylvania,Beulah Park in Ohio and CharlesTown in West Virginia.MO DOLAN GROOM OF YEARMaureen (Mo) Dolan, a veteran groom in theJeff Smith stable based at Showplace Farms inNew Jersey, has been named Groom of the Yearin the annual competition sponsored by HarnessTracks of America and Hanover Shoe Farms.Ms. Dolan, currently caring for the $208,814older trotting gelding The Mighty Mr. K, fromJeff Gural’s Little E Stable, has cared for somemajor stars in the past, working for trainer JoeHolloway. Past horses in her care included TooterScooter, Megamind, Island Glow and She’s AGreat Lady, as well as that great filly’s foal LadyMcBeach. She also cared for Jenna’s Beach Boyfor a short time.Ms. Dolan worked for 20 years alongside PamBaillie, Groom of the Year in 1996, when Pamwas caring for world record holder Jenna’sBeach Boy. It was Ms. Baillie who nominatedMs. Dolan, and in her nomination letter she wrotethat good horses make for good grooms, but saidMaureen Dolan went far beyond that. “Whatmakes Mo a great groom is her dedication, commitmentand sacrifice, no matter how good thehorses are. I’ve worked with Mo long enough toknow that she is the hardest-working, most conscientiousperson I know. Anyone who knowsher can attest to that. She is never in a hurryto get done and never takes short cuts. She puts100% into taking care of horses no matter theirprice or class. She’s always willing to take thatextra time to make sure a horse is properly caredfor. She takes great pride in her work. Over theyears she has managed her money well enoughto own a home and truck and trailer, which shemanages to make extra money with. You don’tsee that a lot any more. She sets a great examplefor all of us.” HTA’s and Hanover’s judges,agreeing, noted that the award is symbolicof the work ethic of grooms everywhere.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, February 11, 2010FEDS WADE INTO AQUE-MUCKThat was the headline in this morning’s NewYork Post, but the ink was not dry on it beforeGov. David Paterson’s office and the man whohas surfaced as the winner’s chief spokesmanissued denials that the federal investigationhad anything to do with the award of the hugebounty. The Post said, “The sweeping probeinvolves the incestuous relationship betweenAEG and a Queens nonprofit group, New DirectionLocal Development Corp.” That seems atleast true in part, for the U.S. Attorney’s officein Brooklyn, which handles Queens’ matters,has subpoenaed records of New Direction’s accountant,James Lee. Gov. Paterson’s counsel,Peter Kieman, confirmed the federal probe butinsisted it had nothing to do with the governor’saward to AEG. He and “a high-ranking lawenforcementsource” both had told the Post theinvestigation does concern the New Directiongroup, with the anonymous source telling thepaper, “It’s definitely about Aqueduct. Lookingat New Direction is part of the overall Aqueductinvestigation.” AEG’s apparent official spokesman,builder Jeff Levine, said, “We are unawareof any investigation and have not been contactedby any law enforcement or regulatory agency ofany kind. Like all bidders, we adhered to the bidprocess as outlined by the State of New York.”Levine said AEG would pay the $300 million upfrontfee, which it was forced to increase by $100million after it was awarded the license, by theend of March.ANY GOOD NEWS? POCONOMohegan Sun’s operation at Pocono Downs isshining brightly. The track raised revenue andprofit from a year ago during the last quarter ofits fiscal year. Net slot revenue from Oct. 1 toDec. 31 was up 6.5%, to $52.5 million, foodand beverage sales were up 9.6%, and incomefrom operations was $2.3 million,compared to a $1 million loss last year.WEEDING OUT COMMITTEESFollowing the twisting path of committees inNew Jersey, we lost our way. We disputed AtlanticCity’s claims of non-inclusion of casino memberson the governor’s transition commission,since there were three prominent casino figureson it, and speculated they might have been referringto the Red Tape Review commission. NewJersey writer Carol Hodes, former press chief atthe Meadowlands, led us gently down the path.“I believe they (the casinos) are referring to theseven-member Gaming, Sports & EntertainmentCommission, not the 15-member transition subcommittee....TheGaming and Sports group hasno casino reps, but a lot of South Jersey folks onit.” They are, so you (and I) know who is handlingour fate, are:Chairman Jon Hanson, a former Sports and ExpositionAuthority Meadowlands chief;Finn Wentworth, a real estate executive and formerpresident of YankeeNets;Former Yankee pitcher Al Leiter;Wes Lang, managing director of WML Partners,an investment/development firm;Debra P. DiLorenzo, president and CEO of theChamber of Commerce of Southern New Jersey;Rutgers law professor Robert Holmes, directorof the Community Law Clinic;Bob Mulcahy, former president of the SportsAuthority and athletic director at Rutgers.We also learned from the Camden County’s CourierPostOnline.comthat the 15-member transitionteam had embraced the idea of a casino atthe Meadowlands just one day before it issuedits report. Then, after 24 hours of whatever, therecommendation was deleted.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, February 12, 2010A SILVER LINING FOR BIG A?The man who made the Aqueduct racino dealpossible now is crawling out of the big escapehole he fashioned. New York Assembly SpeakerSheldon Silver, one of the slyest of the fox denin Albany, now is calling for a state investigationof the whole process. Silver took what onenewspaper -- The Buffalo News -- called “the unusualstep” of asking the state inspector generalto look into what went on between Albany andQueens. After setting careful conditions broadenough to cover his tracks, he is retracting hissupport of the Aqueduct Entertainment Group,which quickly met one of his requests -- uppingits upfront money from $200 million to $300 millionafter the bidding was over -- which he hadto know it could, easily, once it had the contract.So now he is saying “serious questions” havearisen, which need to be answered, including therole of the shadowy Rev. Floyd Flake. In challengingthe process he approved, Silver said hewas asking for the inquiry to determine whether“the Division of the Lottery and relevant stateagencies followed all applicable statutory provisions.”To show just how sly this fox is, Silveradded that he wanted to make sure the inquiryincluded how the Lottery Division would “assurethe conditions I conveyed to the Governoron January 29, and restated in my February 3dletter to him.” As Silver climbs out of his selfconstructedbomb shelter, Gov. David Patersonsinks deeper into his dark hole. The whole issueof the racino -- like the whole scene in Washington-- is likely to turn on politics. The Republicanleader in the Senate, Dean Skelos, is callingon the Democrats, who control that body, tohold public hearings. As for the governor, thebest he could do was have a spokesman point outthat Silver had given “full endorsement” of AEGjust two weeks ago. It wasn’t quite full endorsementthen, of course, but that wastwo weeks ago. That’s ancient stuff.HOW BAD CAN THINGS GET?One indication is when a 349-room Ritz-Carltonhotel closes its doors. The Ritz Carlton at LakeLas Vegas, which opened to fanfare seven yearsago, is folding. A spokeswoman said, “Our owners,Village Hospitality, decided they could nolonger fund the hotel. As as a result of that, wecan no longer operate the hotel without adequatefunding.”ANOTHER DANGER SIGNALStorm warnings are flying everywhere, andparticularly in smaller jurisdictions where theymight fail to draw adequate notice.Last week it was in Iowa, where Harrah’s offeredto pay $70 million to buy its way out of having tohave live racing at its dog tracks.Then it was Michigan, where Hazel Park endorsed,and harness horsemen rejected, a plan toback slots at tracks, but at a high tax rate. HazelPark’s spokesman and creator of the legislationthat would add eight more casinos and racinosin Michigan, has drawn negative response fromthe Michigan Harness Horsemen’s Association,which says there is nothing in Adkins’ bill thatwould benefit them. Adkins disputes their assertion,saying his measure would require the stateto take a share of its revenue and put it back intoprograms for horse breeding and racing. Thehorsemen say Adkins’ bill lets the racing percentageup to the state. Adkins called their refusalto support his bill “suicidal,” saying, “Thisis the only vehicle out there. For them to say theydon’t support it is suicidal. Effectively, withoutthis, these tracks are going to close.”In Maine, meanwhile, a legislator has introduceda bill calling for capping purses for three years.Don Marean, a former legislator and USTAdirector, said, “We all thought this was adead issue.” Now it is resurrected.

HARNESS TRACKS OF AMERICAHERE, THERE, & EVERYWHERESAME FATE AS BERNIE. Not all media faintsand fawns over Atlantic City and its casinos. Onewho doesn’t is Howard Stutz, who writes for theLas Vegas Review-Journal. In his Inside Gamingcolumn this week, he notes that A.C.’s gamingrevenues fell 13.2% in 2009, the third straightyear of declining revenue, and the first time in itshistory that casino winnings fell by double digits.In a line to remember, he writes, “Atlantic Cityis like the corpse in the movie Weekend at Bernie’s.It’s being carted around in an effort to fooleveryone that it’s still alive.”IN BOSTON, House budget chief Charles Murphy,according to the Gate House News Servicestate house writer Jim O’Sullivan, “appeared tobe laying political cover for lawmakers to switchtheir votes in favor of expanded gambling, signalinghis own shift as the legislature prepares totackle casino and slot machine legislation.” Hesees a vote coming in March or April. Unemploymentin Massachusetts has more than doubledin two years, up from 4.4% in 2008 to 9.4%now. Despite that, Mental Health and SubstanceAbuse Committee co-chair Elizabeth Malia, aslots opponent, says, “I think the chances of doinglegislation this year and reaching any agreementare pretty thin. But I could just be naive.”We hope that’s the case, Elizabeth. Assistantmajority leader Ronald Mariano, when asked ifgambling would pass, said, “To be honest withyou, I have no idea. I think that’s a great question.I think it’s not a slam dunk. There’s seriousopposition, and this will be a huge debate.”IN MINNESOTA, where HTA member RunningAces announced higher purses this year, a formerstate senator said he thought the possibilityof slots, in addition to the 50-table cardroom already at Running Aces, has a goodchance “in the not-too-distant future.”Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, February 15, 2010NEW LOBBYIST IN NJ. The StandardbredBreeders & Owners of New Jersey have announcedthat AJ Sabath, a veteran of Trenton’sState House, will serve as a lobbying consultantfor the SBOA. The group’s president, TomLuchento, said the SBOA “will be able to tap intohis wealth of knowledge and insights into the innerworkings of the State Legislature.”ROAP, the Racing Officials Accreditation Program,has announced two upcoming continuingeducation seminars. Officials must complete atleast 16 hours of continuing education every twoyears, president Stan Bowker said, and they willhave the opportunity March 4 at National SteeplechaseAssn. headquarters in Fair Hill, MD,and March 16 and 17, at Tampa Bay Downs inOldsmar, Florida.PENN NATIONAL GAMING last Friday gotunanimous approval from the Kansas Racingand Gaming Commission to build a casino overlookingthe Kansas Speedway track in conjunctionwith the Speedway in Kansas City, Kansas.IN KENTUCKY, House Speaker Greg Stumboand Senate President David Williams, brushingaside Gov. Steve Beshear’s appeal to support hisbudget proposal, said this budget will be, morethan ever before, a product of the legislaturerather than the governor. Stumbo called it “Adefining moment for the General Assembly.”KARYN MALINOWSKI, director of the EquineScience Center of Rutgers University’s AgriculturalExperiment Station, has received theNew Jersey Governor’s Trophy as New JerseyHorseperson of the Year. Dr. Malinowski washonored for her commitment to the well-beingand quality of life for horses in the state, and forpromoting the state’s equine industry. Sheis a strong supporter of harness racing.

HARNESS TRACKS OF AMERICAC OF C FOR SLOTS AT BIG MThe president of the Meadowlands Chamber ofCommerce, with 800 members, has voiced approvalof slots for the Meadowlands racetrack.The organization’s CEO, Jim Kirkos, told njbiz.com it only made sense to pursue that goal. Henoted that slots in neighboring states, which arebeyond New Jersey’s control, already threatenAtlantic City casinos, and said he sees no reasonnot to have them at New Jersey tracks.Executive NewsletterGEORGIA ON MY MINDRay Charles sang it first, but legislators andothers in Georgia now have switched to it fromSweet Georgia Brown. Bloodhorse.com reportsthat a meeting is set for this coming Friday at therequest of Georgia House Speaker David Ralstonwith prominent Atlanta attorney Robert Meierto discuss horseracing in the state. Meier, whohas been working on the project for more than ayear and is acting president of the Georgia Ownersand Breeders’ Association, cautioned membersin a memo yesterday that “if this is not doneproperly, it can derail and permanently damageany chance of bringing the racing industry toGeorgia.” Calling representatives, gubernatorialcandidates, and other politicians or groupsto ask if they are for or against gamblingor pari-mutuel betting is the wrong wayto frame this issue and will result in noth-A daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, February 16, 2010$100 MIL FOR HIPPODROME? ing but backlash and ultimately failure. “ThereA Montreal landmark for 137 years and one of is great support for this issue now more thanthe great tracks in harness racing during its life ever. However, it must be done correctly. Thereas Blue Bonnets Raceway, the site of the Hippodromede Montreal has been placed on the marvisorypanel succeed and produce the necessaryare politicians who privately want to see this adketby the government of Quebec and SONACC, information to allow them to publicly supportthe owners. The asking price is $100 million, with a voter referendum on the issue. This advisoryfull availability to build or develop to the buyer. panel’s goal is to provide political and privateA story in examiner.com calls it “likely” that the sector participants with the necessary and accuratefactual details and economic impact state-vast track along heavily traveled Decarie Boulevardwill be used for residential construction. ments to allow for their public support on thisinitiative. We cannot expect elected officials tosupport a bill on an issue of this magnitude withoutsuch information. The advisory panel wantsto provide not only political cover, but also allowthose in support to change the minds of thosewho are currently opposed to the issue.”A HARNESS BEST-SELLERStandardbredcanada.ca reports that “Behind theGate,” a historical look at the 20th century inMaritime Canada harness racing, has reachedbest-seller status and is in its third printing afteronly 14 months. The author, Paul Murphy, is beinghonored tonight with a provincial HeritageAward by the Prince Edward Island Museumand Heritage Foundation. Major bookstores inCanada carry the history, which includes profileson PEI reinsman Wally Hennessey, GillesBarrieau of New Brunswick, and Nova Scotia’sand Canada’s most accomplished female driver,Clare MacDonald.TEN YEARS FOR RIDEAU SLOTSToday marks the 10th anniversary of the riotousopening of slots at Rideau Carleton Raceway,when massive crowds forced closing of the doorsbecause the facility was overcrowded. Thingshave quieted down, substantially, but cbs.ca reportsthat 15 million people have played there,and the machines took in $140 million inthe 2008-09 fiscal year.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, February 17, 2010ROSECROFT GETS EXTENSIONRosecroft Raceway, working on finalization ofMark Vogel’s acquisition of the track, got threequartersof what it asked for yesterday. Presidentand acting CEO Kelly Rogers had requesteda 60-day extension of the track’s racing license,but the Maryland Racing Commission decided,while chiding Rosecroft for what it consideredproviding less than full information requested,to grant an extension of only 45 days, throughApril 14. Rogers said he thought he had providedenough to meet the commission’s request,but the board’s chairman, John Franzone, didnot agree.DE LEO: MASS. TRACKS IN BILLIf his position was not clear before, Robert De-Leo, Speaker of the Massachusetts House, madesure everyone knows that his plans for gamingin the state include support of slots at tracks. Inan interview on Boston’s Channel 5 On the Record,DeLeo said, “I’ve always been a slots person.The proposal that I’m going to make to theHouse later on in February or in early Marchis going to set forth a joint proposal of slots andresort casinos.” Clyde Barrow, the director ofUMass Dartmouth’s Center for Policy Analysis,says DeLeo’s stance makes sense on two fronts.“The tracks have always had enough supportersin the House to block a casino bill if the trackswere not taken care of too. There are definitelysome expanded gambling proponents who wouldvote against it if it were just casinos. Second,while the state would stand to rake in moremoney from casino gaming, revenue from slotmachines would come in a lot sooner. They canget licensing revenue almost immediately, andthey could even get some slot revenue this fiscalyear. Two years ago the governor said he wouldbe willing to compromise on the numberof casinos or slots at the tracks. I don’tknow if that’s changed.”BARRAGE CONTINUES IN NYThere is no letup in the media cry of protestagainst Gov. David Paterson’s award of slots atAqueduct to his friends and political allies. TheNew York Post, leading the charge since day one,added another gem of a headline this morning,one reading, “Aqueduct deal’s funny bid-ness.”Among those protesting the contract award, orasking to have it investigated, was Senate PresidentDean Skelos; Bronx Senator Ruben Diaz;and James Featherstonhaugh, the Albany lawyerwho is secretary of Saratoga Gaming andRaceway.NAMES IN THE RACING NEWSMICHAEL FRANCIS BURNS, one of the greatracing and sports photographers in Canada, isdead at 84. Burns won a record seven CanadianSovereign Awards, the most recent last year, andhas photographed the great men and horses ofthe sport in Canada for the last 67 years, sincebeginning as an apprentice at old Woodbine in1943. He has been Woodbine Entertainment’sofficial photographer since 1946. Burns gave30,000 of his negatives to the Canadian SportsHall of Fame, where they are displayed as theMichael Burns Photography Collection.BARBARA DRESSER, an attorney and harnessracing participant for 20 years, has been namedto the Maine Harness Racing Commission byGov. John Baldacci. The governor also reappointedSTAN KUKLINSKI to the commission.One more nail in the coffin of harness racingin Quebec: Trainer RICHARD MOREAU hasmoved his operations to southern Ontario, acquiringa self-contained complex that includes atraining track, swimming pool and large homewith a wraparound porch. Standardbred Canadareports Moreau uses one barn on the propertyand rents out another. He is one of a numberof Quebec horsemen relocating to Ontarioin face of the end of racing in Montreal.

HARNESS TRACKS OF AMERICAThe annual award, named for the English thoroughbredimported to America in 1788 andfounder of the harness breed, and for Stan Bergstein,now in his 49th year as executive vice presidentof HTA, recognizes exceptionally meritoriouscontributions to the sport of harness racing.Gov. Rendell is the 30th recipient, and is beingrecognized for his determined and decisive effortsin revitalizing harness racing in Pennsylvania.Hugh Mitchell, chief operating officer of WesternFair Raceway in Ontario and president ofHTA, announcing this year’s winner, said, “EdRendell’s contributions to Pennsylvania harnessracing have been immense, and have transformedthe sport in his state to major internationalprominence and stature.”Gov. Rendell will receive the Messenger at theannual joint convention of HTA and the ThoroughbredRacing Association March 10 at theHyatt Grand Champions in Indian Wells, California.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, February 18, 2010RENDELL WINS MESSENGER in the tripartite award vote (along with the governorand Assembly Speaker Sheldon Silver) toEdward G. Rendell, governor of Pennsylvania,has been named winner of the 2010 Stanley F. the Democratic Conference Leader, John Sampson,who now is considering appeals for investi-Bergstein Messenger Award, highest honor bestowedby Harness Tracks of America, the associationof North American harness racetracks. Federal authorities, meanwhile, have contactedgation of the award from other legislative leaders.Delaware North and other unsuccessful bidders,asking their views on the bidding process.NJ SENATE BOSS: NO M SLOTSThe president of the New Jersey Senate, challengingthe state’s new governor, told an Atlantic CityChamber of Commerce meeting yesterday therewould be no slots at the Meadowlands or otherNew Jersey tracks. Senator Stephen Sweeneytold a cheering audience that he would not permita vote on any bill allowing VLTs anywhere inthe state but Atlantic City. “I can tell you,” hesaid, “I’m not posting a VLT bill for anywhereoutside of Atlantic City.” Gov. Chris Christiehas appointed a new seven-member panel to reviewthe state’s gambling, sports and entertainmentinterests and make policy recommendationsby June 30, and has not ruled out slots attracks. Sweeney, however, belligerently told hispartisan audience, “The governor threateningVLTs, he has to deal with me on that, and I’vealready told you, it ain’t happening.” Sweeneyalso invoked the media description of racing as“a dying industry” that should not be subsidizedby Atlantic City casinos.THE PRES & MINORITY LEADERAn item in yesterday’s Executive Newsletter onthe turmoil in New York over Gov. David Paterson’saward of the contract for a racino at Aqueductto a consortium called Aqueduct EntertainmentGroup misidentified two of the leadingplayers in Albany. Dean Skelos is minority leaderof the Senate, not president, a job heldby Malcolm A. Smith. Sorry, gentlemen.Smith, significantly, turned over his roleBROOKS EXEC COOKED BOOKSNew York Newsday, covering the David Brookstrial in federal court on Long Island, reportsthat Rhonda Graves, former chief operationsmanager of the Brooks’ firm Point Blank Industries,testified that when her boss, COO SandraHatfield, told her the company needed to show agross profit, “I just threw in numbers. Some ofthem were accurate. Others I created.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, February 19, 2010SILVER MAY SCRAP BIG A DEALThe New York Post reports this morning, in a storyby its writers Fredric Dicker in Albany and CarlCampanile in New York, that Assembly SpeakerSheldon Silver is prepared to kill the controversialAqueduct slots contract deal. Silver, who conditionallyapproved the contract along with Gov.David Paterson and Senate Democratic leaderJohn Sampson, the latter as proxy for Senatepresident Malcolm Smith, now is reported consideringwithdrawing his support by refusing tosign a “memorandum of understanding” neededfor final approval. The paper’s writers quoted asource that told them Silver also believes “it’s possible,when all is known, that maybe the governor,or the Senate, won’t want to sign the MOUeither.” Silver opened the door to not signing theMOU by saying it depended on what new informationemerged from federal and state investigationsnow underway. His original agreement stipulatedin increased up-front payment of $300 million, upfrom AEG’s original offer of $200 million, whichin effect changed the bidding process after theaward of the contract, a highly unusual procedure.Silver also insisted on no major players or investorshaving criminal records, a requirement thatled to the departure of Darryl Greene of the DarmanGroup, one of the players in AEG, who failedthat test, having a criminal conviction in the past.Meanwhile, investigators subpoenaed the documentsthat had been submitted to the Lottery Divisionand Paterson’s office turned over a sheaf ofedited documents containing numerous deletions.They revealed that AEG’s initial bid ranked deadlast among all six bidders as far as revenue to thestate was concerned, but was bumped to first whenrebidding was ordered. It is only three weeks, butseems like three years, since Paterson announcedthe award to AEG. Since the Memorandum of Understandingis just being drafted and is notexpected to be finalized for four to six weeksmore, expect more smoke and flames.A BUMP IN ROSECROFT ROADHope of a quick finalization of the $10.5 millionsale of Rosecroft Raceway by Cloverleaf Enterprisesto former owner Mark Vogel have beendashed in Maryland. The state racing commissionand a bankruptcy trustee both now havethrown logs in the road. The commission expressedwhat executive director J. Michael Hopkinscalled “a very mild objection, just a reminderthat we will need to approve this sale.” Hopkinssaid the commission will need time to review Vogel’scomplete financial information before decidingon approval of the deal. The bankruptcytrustee involved in Cloverleaf’s filing for chapter11 protection proceedings said Cloverleaf’s lawfirm that is handling the sale failed to reveal thatit also represents the Cloverleaf SOA, CloverleafEnterprises’ sole shareholder and a creditor. Heis concerned that the sale would provide $100,000to Cloverleaf to pay off debts, with the rest goingto the association, a development which wouldleave nothing for unsecured creditors, and littlerecourse in the event Vogel should breach thecontract. The trustee, W. Clarkson McDow Jr.,also expressed doubts about Vogel not submittingfull financial information and instead sayinghe would personally pay for the purchase. Mc-Dow also chided Cloverleaf for not seeking otherbuyers since last May.LOSS IS RELATIVE, FOLKSCelebrating a $433.9 million loss might seemstrange to Joe the Plumber, but it was a causefor brightness with officials of MGM Mirage.The big gambling operation announced a fourthquarter loss of that amount, down from $1.45billion a year ago. Revenue fell in all categories,with casino revenue falling 11%. The fourthquarter loss was attributed in large part to a$548 million write-off on the value of land MGMMirage owns in Atlantic City. Last year ithad a $1.2 billion write-down.

HARNESS TRACKS OF AMERICATHE DEFINITION OF CHUTZPAHIt means unlimited gall or flagrant arrogance,but whichever definition you choose you won’tbe near matching the action of Jeffrey Brooks,the brother of David, now on trial in federalcourt on charges of securities fraud. Jeffrey issuing the United States Trotting Association andits executive vice president Mike Tanner, alongwith the New York State Racing and WageringBoard and its chairman John Sabini and membersDaniel Hogan and John Simoni, for $108million. He claims Bulletproof was barred bythe two groups in what he calls “a classic case ofguilt by association,” saying his mammothly successfulBulletproof Enterprises stable has donenothing other than been tarnished by his brother’stroubles. Bulletproof, long the object of suspicionbut never convicted of racing crimes, wonalmost $12 million last year, almost twice theamount of the sport’s former individual recordearnings and more than triple the winnings of itsnearest competitor. The USTA acted after Bulletproofearnings were frozen in Canada, but theOntario Racing Commission was not named as adefendant in the suit.A WAY OUT FOR GOV. CHRISTIEGov. Chris Christie of New Jersey, during thecourse of campaigning, made what both AtlanticCity casinos and harness and thoroughbredinterest construed as commitments to help theircauses. A recommendation to build a world classcasino at the Meadowlands, included in a draftof his transition committee in January, but deletedfrom the draft report issued a day later, wasdismissed by a governor’s spokesman as not surprisingwhen a large group was discussing publicpolicy. Now comes displeasure on the part of thegovernor at what he is alleging is a waste at bestor a misuse at worst of budget used for lobbyingby the Thoroughbred Breeders Associationand Standardbred Breeders andOwners Association.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, February 22, 2010The Press of Atlantic City, in the lead for its story,said, “Two politically active horse-racing associationsfind themselves shifting from politicalfavorites to outsiders.” Where the casino-orientedPress got the idea that racing was a favoriteat any time in the process is mystifying, and sois the total lack of any accounting of what thecasinos spend in lobbying Trenton in New Jersey.The story did mention that the New JerseyRacing Commission had signed off on the thoroughbredand harness expenditures on January20. In any event, a door has been opened as anescape route, and the sky has darkened in EastRutherford and Freehold.WHAT THE HELL IS GOING ON?That was the lament of Louis Rainey, a formerLouisiana Democratic political director who losthis home to Katrina, concerning monies collectedbut apparently not paid for hurricane reliefby Congressman Gregory Meeks of New York,now in the thick of the Aqueduct racino rewardcase. Rainey, who now lives in Dallas, said Meekshad chosen him to identify needy displaced families,but that the relief monies they raised nevershowed up. Meeks’ charity, New Yorkers Organizedto Assist Hurricane Families, now is underinvestigation. Its books showed it raised $31,000,but it delivered only $1,392 to New Orleans relief.Rainey told the New York Post, “We didn’tget the funds. We never got a dime.” Meeks toldthe Queens weekly Times-Ledger during fundraising, “Every dime, every dime will go to those30 families.” Rainey, who served as an unpaidadviser, said the families chosen to get assistancereceived nothing, saying, “I’m baffled as to whythe families never got that money. I want to findout what the hell is going on. I think Meeks is anice guy and hope he wouldn’t steal from victimsof Katrina...but I’m damned sure going to findout.” No one connected with the Meeks’ charityhas any recollection of what happenedto the money.

HARNESS TRACKS OF AMERICABULLETPROOF BACK, FOR NOWPending a hearing of its Executive Committee onMarch 20, and while mulling a $108 million lawsuitfiled by Jeffrey Brooks and his Bulletproofbrigade against it, the United States Trotting Associationhas stayed its suspension of Brooks andBulletproof, whose horses won more than $10million last year. The stay came after a formalnotice of appeal, in accordance with USTA rules.The New York Racing and Wagering Board, butnot the Ontario Racing Commission, first to tieup Bulletproof’s finances, also are named in theBrooks’ suit. No word on their actions as yet.NYCOTB, AGAIN: WE’RE BROKEWhen someone says they’re a month away fromnot having enough money to pay their help, youknow times are tough. HTA associate memberNew York City Off-Track Betting chairmanMeyer Frucher repeated the dire circumstanceyesterday during a six-hour ordeal in bankruptcycourt in New York. “We might have toshut down around the end of March,” he told thecourt. “We will run out of money and we will notbe able to pay our employees.” OTB is seekinga redistribution of its shares of betting revenue,asking the legislature to allow it to distribute racing’sshare after it deducts operating expensesinstead of before. The New York Racing Association,which is owed $14.7 million by NYCOTB,is opposing the OTB proposal in the bankruptcyproceedings, saying Gov. David Paterson had nopower to allow OTB to file a Chapter 9 reorganization,normally reserved for municipalities.NYRA says OTB used the Chapter 9 filing toavoid paying it and other creditors. It claims thegovernor “usurped legislative action” in allowingthe Chapter 9 filing. NYRA’s lawyer, BrianRosen, told the court yesterday that there was noreason to believe the state legislature willchange the statutory distribution OTBpays to the racing industry.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, February 23, 2010Frucher told the court that City OTB’s losseshave totaled $40 million this fiscal year, and that35,000 to 70,000 jobs could be lost to the horseracingindustry in New York, especially upstate, ifOTB fails to reorganize.AROUND THE CIRCUIT.....The NEW JERSEY SENATE has approved havingits president, Senator Stephen Sweeney, proceedon a suit challenging the federal government’sright to refuse to allow sports betting inall but four states....The MARYLAND JOCKEYCLUB auction of its Laurel and Pimlico propertieshas been postponed a fourth time, untilMarch 25, and the court announced that datealso was tentative....HAWAIIAN LEGISLA-TORS, facing billion dollar budget deficits, aregiving consideration to the legalization of gamingin the island state. Only Hawaii and Utah,among all American states, do not have legalizedgambling of one form or another. Proponentsof the idea are pointing out shortened trips forAsian gamblers, less trips to Vegas for Hawaiianbettors, and satisfying the gambling appetites ofHawaiian natives. Opponents do not want theidyllic nature of the islands’ natural delights disturbed....Enforcementof the UNLAWFUL IN-TERNET GAMING ENFORCEMENT ACT hasbeen delayed until June, but Visa and MasterCard are not waiting to comply. Visa now hasjoined Master Charge in blocking online gamblingtransactions. Rep. Barney Frank is stillleading the effort to derail the act, but the creditcard firms are choosing to avoid confrontationwith the feds....the SWEDISH V75 POOL, availablein this country at the Meadowlands, FreeholdRaceway, Monmouth Park, 4NJBets.comoutlets in New Jersey, and Hawthorne, Balmoraland Maywood Parks in the Chicago area, wasnot hit last week, and has a $19.5 million (USD)carryover heading into this coming Saturday’snational pool.

HARNESS TRACKS OF AMERICANO INDIANA INLAND CASINOSThe House sponsor of a bill to allow Indianariverboat casinos to move inland withdrew themeasure yesterday in the face of opposition, andthe legislation appeared doomed. The legislator,Bill Crawford, told newsmen, “As far as I’m concerned,it’s dead.” At the same time, the Houseapproved a measure that would ease some of thetax burden of racinos at HTA members HoosierPark and Indiana Downs, but not at casinos inthe state. Crawford’s bill would have allowedriverboats in industrial Gary, near Chicago, torelocate to heavily traveled interstate highways,and those in Hammond and East Chicago to relocateto anywhere in those two cities. Other riverboatswould have been able to locate on landnear their present docked locations under thedefeated measure. The bill easing the tax burdenfor the two track racinos passed narrowly on a49-47 vote before Crawford pulled the measureentirely. Then the House voted 57-42 against theidea, killing it, according to Indystar.com, for thissession of the legislature. One proponent, Rep.Charlie Brown of Gary, would not agree. Hesaid, “We have been very creative in conferencecommittees before, so who knows? The undertakerdoes not have that body yet.” An opponentof the idea if inland casinos, Rep. Mike Murphyof Indianapolis, thought otherwise. He said theproposal would have made gambling more prevalentin everyday life, and colorfully decoratedhis belief by saying, “Pretty soon we will haveslot machines in the nursing homes, and they’llwheel one up next to your bed and you’ll be ableto use your Medicaid match as your money.”RACING RESPONDS TO NJ GOVChris Christie, the governor of New Jersey, haswidened his anti-lobbying net to include all stateagencies, ordering them to stop hiring lobbyistsin an effort to halt buying access toTrenton politicians.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, February 24, 2010The net has very big holes, however, since it doesnothing to stop the flow of Atlantic City moneyto friends in the state capital, while punishingother state or quasi-state operations.As the governor signed a freeze on new lobbyingcontracts, New Jersey thoroughbred racingchallenged his authority over state tracks. MichaelCampbell, executive director of the ThoroughbredBreeders’ Association, said a MonmouthCounty superior court had ruled severalyears ago that funds received from betting areregulated but not public funds. When asked ifthe TBA would stop lobbying, Campbell said thebreeders would want to have “a full conversationwith the governor before deciding how wego forward.” The governor’s order will not affectcasinos, which can pour money into lobbyingas in the past as private businesses. Christienot only ordered an end to state lobbying, butimposed a $250 cap on state travel unless specificallyapproved by his office. A spokesman forthe Casino Reinvestment Development Authoritydenied using lobbyists, saying it was rarelydone, “and we tend to work with our local legislatorsdirectly.”CORDISH GOES ON OFFENSIVEThey don’t call David Cordish “the king of urbanmakeovers” for nothing, and he doesn’t take thetitle lightly. Challenged in his pursuit of a casinoat an Anne Arundel county mall by a petitiondrive, his giant Cordish Company now has suedthe Anne Arundel County Board of Elections, sayingit is overlooking “glaring and massive fraud”in considering a petition drive to send the propositionto a public vote in November. The drive,which needs 18,790 valid signatures by March8, now has had 13,136 validated by the electionsboard. An attorney for the board said it alreadyhad thrown out about half of the signatures submitted,and “we’re doing what we’re supposedto be doing.”

HARNESS TRACKS OF AMERICASLOTS FOR RUNNING ACES?A Minnesota state representative and state senatorhave introduced bills in their chambers thatwould pave the way for slots at HTA memberRunning Aces and at Canterbury Park. Thestate is facing a $1.2 billion deficit and the proposedlegislation would, its sponsors say, close$125 million a year of that gap. Despite that,Minnesota Governor Tim Pawlenty says he doesnot support the idea of expanded gambling. TheHouse sponsor of the bill, Al Juhnke, is chairmanof the House Agriculture, Rural Economies andVeterans Affairs Finance Committee. He told inforum.comof St. Paul the legislation, in additionto helping the state meet its budget deficit, wouldhelp boost the state’s $1 billion horse industry“by capturing racino business from people whonow are gambling via the Internet or otherwiseoutside of Minnesota.” Juhnke and State SenatorDan Sparks both expect to receive committeehearings, but say they have not counted voteson the proposals. Democrats oppose the ideabecause of its potential impact on Indian gaming,with tribes with casinos being major donorsto Democratic candidates, inforum.com reports.The Senate majority leader, Larry Pogemiller,has indicated opposition to the idea.PHILLY TO MEET STEVE WYNNWhen he didn’t like the way New York was handlingbids by changing the game almost day today, Steve Wynn pulled out of the bidding processfor the Aqueduct racino. Now he is back fullblast in Pennsylvania, announcing he has signeda letter of intent for a Wynn affiliate, Wynn ResortsInc., to take over from Foxwoods as managingpartner of the controversial Foxwoods casinoproject in Philadelphia, stalled for three years byneighborhood and political opposition. Detailsof Wynn’s entrance into the fray have notbeen released, and his company’s participationis subject to Pennsylvania GamingControl Board approval.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, February 25, 2010Wynn said he was “thrilled” at the prospect ofreturning to his old college town. He attendedthe University of Pennsylvania for four years andhas served as a university trustee for 10 years.He said, “Philadelphia has always felt like hometo me.” The financial news service thestreet.comcalled Wynn’s entrance into the Foxwoods scene“yet another blow to Atlantic City and its casinooperators,” in particular the high-end Borgata,half-owned by Boyd Gaming, and to MGM Mirage,which has been trying to sell its interestin the Borgata. It called Wynn’s move “a smartone,” presuming Wynn would become the majorityowner.AGAIN, A MESSED-UP NY MESSNothing, it seems, can be done in New York’sstate capital in Albany on the merits of a case,or without political haggling. Now somethingas simple as approving or not approving a newmember of the State Racing and Wagering Boardhas turned into another huge political mess. TheDemocrats hold a narrow margin in the Senate,and on party lines approved Gov. David Paterson’sappointment of Charles Diamond, a formerHouse member without any racing background,to the $101,600 a year racing board post, replacingmember John Simoni, who had been appointedby former Senate boss Joe Bruno. TheRepublicans, saying rules require a 32-membermajority vote on confirmations as well as legislation,are contesting the 31-vote approval, createdby the banishment of one Democratic legislatorfollowing spousal abuse charges. The Democratscontend the 32-member vote is required only forlegislation and resolutions, not confirmations ofgubernatorial appointees.In New Jersey, the state’s race horse interestshave objected strenuously to being tagged “aspart of the wasteful spending going on in stategovernment,” saying they are a privategroup, not part of state government.

HARNESS TRACKS OF AMERICAPHILLY TO GET ‘CUTE CASINO’We’re not sure what “the cutest casino you’veever seen” will look like, but that’s what SteveWynn -- he of the big hotels and bright ideas --is promising the city of Philadelphia as he andWynn Resorts prepare to take over managementand presumably majority ownership inthe troubled Foxwoods casino on the DelawareRiver waterfront. One thing it will not contain isa high rise luxury hotel, a Wynn specialty. Themaster said he is dumping plans for a hotel inPhilly, something that conflicts with testimonygiven by the lawyer for local investors when hetestified before the state Gaming Control Boardon Jan. 27. That board set a $2,000 a day fine,retroactive to Dec. 1, after the investors hadmissed a deadline for plans. The fine will reach$186,000 by the time Wynn testifies before theboard next Wednesday, according to Philly.com.In a conference call to stock analysts this week,Wynn said his plans for a three-story casino andparking garage would be “cute” but not a destinationresort. “No Gulfstream jets, no helicopters,no nothing,” Wynn said. He said it wouldhave a steakhouse, an Italian restaurant and anAsian noodle house where gamblers could spenda couple of hours. “All my good old friends,” hesaid, “Italians and Jews and every conceivabletype of ethnic group that loves to shoot craps andgamble. And they’re 10 minutes away by car orbus from my casino on the river.” An Asian noodlehouse, Steve? No kosher deli? C’mon, youcan do better than that. There won’t be enoughAsian Jews to fill that noodle joint. When theanalysts pressed him for more details, he said, “Ithink that’s provocative and self-serving enoughfor now.”CANCEL THAT HAWAIIAN TRIPHawaiian legislators have killed a bill forlegalized gaming on Oahu, and won’teven discuss one for the outer islands.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, February 26, 2010Public testimony was reported to be “overwhelminglynegative,” so the House Finance Committeescuttled the idea without further discussion.They said opponents had convinced them publicsentiment was worried about the impact on thetourist trade, the island’s image as an Eden inthe Pacific, and the possible affect on increasedcrime.CAL BOARD PAYS THE JAMMERFaced with the cost of a protracted trial, the CaliforniaHorse Racing Board yielded to its longtimetormentor, horse owner Jerry Jamgotchian,and agreed to pay him $35,000 for a 5-year-olddispute despite their attorney saying the case was“winnable.” The litigation-loving Jamgotchianhad sued the board because its then state stewardallegedly ordered his trainer to run a horseback in 2005 that he had scratched after scratchtime. A superior court judge had granted thesteward, George Slender, immunity because hewas protected by discretion as a steward. bloodhorse.comreports that a three-judge panel of theCalifornia Second Appellate District had ruledthat stewards had no discretion to bar an owner“from retrieving his or her horse before a raceis run.” There goes the neighborhood as far asscratch powers for stewards are concerned.NJ “RACING” MEANS RUNNERSIn New Jersey, when the press -- and presumablythe state as well -- refers to “horse racing,” trottersand pacers do not count. A proposed planto “save the horse racing industry” as reportedin a scoop in the Newark Star-Ledger reports ona state plan to cut the Monmouth Park runningseason to 50 days and triple the purses to a milliondollars a day, thus hopefully attracting thenation’s best horses. What about relief for thenation’s best trotters and pacers at the Meadowlands?They would benefit, the report goes, bygetting rid of the runners and enjoying alonger fall season, perhaps profitable.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, March 1, 2010ON THE BROOKS BATTLEFIELDA familiar name returned to U.S. harness racinglate last week, when former training star BrettPelling, back from Down Under, testified in theDavid Brooks fraud trial in federal court on LongIsland. According to Newsday and harnessracing.com, Pelling told the court he had received morethan $900,000 in training payments in checksfrom Tactical Armor Products, one of a numberof war product companies owned or controlledby Brooks, and linked through his DHB Industries,whose stock he reportedly sold for $185million in a “pump and dump” securities fraud.Prosecutors say the $900,000 was funneled to theTennessee-based TAP from the parent DHB topay Pelling’s training bills. TAP provided sewingservices and armored plates for military andarmy use. Two other Brooks companies, PointBlank and PACA, allegedly purchased morethan $29 million in goods and services from TacticalArmor Products, which derived a $9 millionprofit that was used as part of $14 millionto pay Pelling, buy $6 million worth of horses,and $1.8 million for grooms. TAP was owned atthe time by Brooks’ wife Terry. Brooks’ defenseattorney Kenneth Ravenell, noted that TAP alsosewed saddle pads for harness racing, and thatit was privately owned by Mrs. Brooks and nota public company like DHB. As such, he said,she could do whatever she wanted with the millionsin profits made by TAP, including financingBrooks’ horse business if she chose to do so.POST 9 FOR MR. FEELGOODFormer American pacer Mr. Feelgood has drawnninth post position for Sunday’s $1 million Interdominionfinal in Sydney, Australia. Australia’sBlacks A Fake and New Zealand’s MonkeyKing drew 3 and 5 as favorites Blacks A Fake isseeking an unprecedented fourth Interdominionwin.THE NAME SOUND FAMILIAR?Lou Guida. It used to roll off the tongue as theowner of the best harness horses in America. Itstill is a major name in Italian harness racing,and yesterday it echoed over the Ippodromo SanSiro race course in Milan as his Lisa America,Lou’s sentimentally-named trotting filly by theformer world champion Varenne, returned froma three-month layoff to score a stunning victoryin the Gran Premio ENCAT for the best trottingfillies in Europe. Jorma Kontio, the Finnishdriving star, scored an easy parked-out victoryfor Guida and American trainer Jerry Riordan,who emigrated to Italy years ago to handleGuida’s trotting interests there. Lisa America,named for Guida’s homeland and for his daughterLisa, won $57,120 and was only two-fifths of asecond off the European record for 2,100 meters,winning at a mile rate of 1:54.4, according to theUnited States Trotting Association’s Web Newsroomand marketing director John Pawlak.AROUND THE CIRCUIT.....TWO RIVAL GROUPS are seeking status for acasino vote on next November’s ballot in Michigan.A group called Racing to Save Michigan isworking on a petition that would legalize eightnew casinos, including five at racetracks in thestate, and another is seeking casinos in six citiesand Detroit’s Metropolitan airport, along withsports betting. That makes Michigan anotherstate hoping to overturn the federal prohibitionagainst sports bets in all but four grandfatheredstates, Nevada, Delaware, Oregon and Montana....Harnessracing’s famed equine surgeonDr. Patty Hogan has confirmed to Ray Paulick’sPaulick Report that she has resigned as chief surgeonfor the $18 million IEAH veterinary hospitalnear Belmont Park. She would not state reasonsfor leaving the heralded facility essentiallybuilt around her talents.

HARNESS TRACKS OF AMERICAROBINSON TO GEORGETOWN?Dennis Robinson, president of the New JerseySports and Exposition Authority and in that capacityboss of harness racing’s pride the Meadowlands,may be leaving that post. nj.com andthe Newark Star-Ledger report Robinson is a finalistunder consideration for the post of athleticdirector at Georgetown University. The developmentfollows Gov. Chris Christie’s appointmentof former acting U.S. attorney Ralph Marra assenior vice president for legal and governmentalaffairs of the state agency that manages theMeadowlands sports complex.NJ SLOTS BILL INTRODUCEDIn another development of interest involving theMeadowlands, five northern New Jersey DemocraticAssembly legislators introduced legislationyesterday calling for slots at the track. Oneof the sponsors, Gary Schaer, said the measurewould be “a boon to taxpayers,” and another,Ralph Caputo, said, “Times have changed andso must we, if Meadowlands racing and gamingare going to be a strong part of New Jersey’seconomy. We cannot stand idle and pretend thatexpanded competition at nearby horse tracks inNew York doesn’t exist.” Or Pennsylvania. StateSenator Paul Sarlo, who introduced an identicalbill that went nowhere two years ago, saidhe welcomed the support but called the new bill“outdated,” and said he would like to see “a fullfledgedcasino model at the Meadowlands.” Oneimportant legislator who would not, and is in aposition to block it, is Senate President StephenSweeney, a southern Jersey Democrat, who toldthe Atlantic City Chamber of Commerce that it“ain’t happening,” and that he would make sureit didn’t by blocking any vote in the Senate. Stillto be heard from in clear tones is the governor,Chris Christie, who has passed off the issueto still another commission that willreport to him by the end of June.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, March 2, 2010In another development on the issue, the MonmouthCounty Board of Freeholders has resurrectedthe Save the Horse Committee, with membersincluding prominent harness racing figuresAnthony Abbatiello, a member of the New Jerseyracing commission; Tom Luchento, president ofthe New Jersey SBOA; and breeders AnthonyPeretti and Mark Mullen.IT TAKES A VILLAGE....to end a century of racing. That is what has happenedto Hippodrome d’Aylmer, known to olderthoroughbred fans as Connaught Park, whichopened in 1912 and later was the home of harnessracing for half a century, from the 1950s tothe recent past. Senator Paul Massicotte boughtthe track four years ago from the Quebec provincialgovernment, went bankrupt, and sold it andtwo other Quebec tracks last fall to Alain Bouladier,a developer, with a plan now approvedby the Quebec Superior Court. Bouladier plansan 88-acre “urban village,” with shops, professionalservices, and other park-like features forresidents of the area of Gatineau, between Hulland Aylmer.MASSACHUSETTS VOTE SOONThe Speaker of the House in Massachusetts,Robert DeLeo, says he will release his bill callingfor expanded gambling, including slots at thestate’s harness track, HTA member PlainridgeRacecourse, in the next two or three weeks. If itpasses the House, the measure would face Senateand gubernatorial approval. DeLeo says nomoney has been budgeted from the measure thisyear, adding that in his former capacity as chairmanof the House Ways and Means Committee,he learned “not to spend money that you don’thave.” The President of the Senate, ThereseMurray, agreed with DeLeo, saying “it wouldnot be a wise thing to do” to count on fundsfrom gaming before the matter is debated.

HARNESS TRACKS OF AMERICAELECTRONIC GAMES IN KY?They still have a long way to go, but at least a legislatorhas introduced a bill in the House to allowelectronic “games of skill” to be allowed at thestate’s racetracks. Whether the Senate has anyinterest remains to be seen, but if so the House bill-- HB 601 -- would allow video poker, blackjackand similar games. The sponsor, Democrat HarryMoberly, said he “would assume this is moreacceptable to the general public” than Gov. SteveBeshear’s wish for slots at the tracks, althoughalmost certainly it is not preferable to the state’stracks, who reacted cautiously to the proposal.Moberly told the Louisville Courier-Journal hehad discussed his bill with the Senate minorityleader, Democrat Ed Worley, “who expressed interestin it” and Worley said he hoped the Senatemight consider the idea. How the House willreceive it also remains to be seen. The bill callsfor 13.5% of proceeds from the machines to goto the track for purses, another 1.5% to pursesupplements, breeders and owners awards, andthe remaining 85% to the state for a jobs program.Moberly estimated the state’s share at$32 million a year. “It’s not a big sum,” he said,“but it would help the horse industry.” He toldthe paper there was no guarantee the Senatewould consider the idea, but said he thought theHouse should have a bill ready “in case a possibilityfor cooperation should emerge.” He usedArkansas legislation which provides for InstantRacing as his model. The state attorney generalhad said that idea would be legal under Kentuckylaw with rewritten regulations.FLORIDA AGREEMENT NEARLawyers and legislators working on a compromisegambling agreement with the Seminole Indianssay they are close to a resolution acceptableto both state and tribe. Under the agreement,the Seminoles would pay Florida$150 million a year in return for exclusiveuse of table games in south Florida.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, March 3, 2010Mary Ellen Klas, reporting on the negotiationdevelopments for the St. Petersburg Times/Heraldstate capital bureau, said if the legislature allowedtable games at the tracks, the Seminoles’payment to the state would be reduced but continuefor 20 years past such a move. The paymentswould end, however, if the state approvedVLTs or other casino games outside of Miami-Dade and Broward Counties. Barry Richard, alawyer for the Seminoles, said, “The only thingthe tribe is paying for is exclusivity, and it’s notreally buying it, it’s renting it, because the legislaturecould change it at any point.”A SOLUTION RACING IGNORESAs North American racing continues to flounderaround looking for solutions to its problems, itlargely ignores one that could contribute morethan any now being considered. The projectwould require concerted action (God forbid!Only a racing heretic would suggest that) but thetime is ripe, with economies and budgets everywhereriddled with holes and state and provincialracing commissions hopefully understandingthat fact and willing to experiment and bendor draft new rules. Realizing that racing in Swedenis a totally different animal, facts of life therenevertheless should dictate that racing here doeverything it can, with legislatures and commissions,to work toward a huge multiple pool likethe Swedish V75. That hugely popular weeklypool paid one lucky winner who picked all sevenwinners in the designated races last week $9.35million U.S. dollars. He had spent around $145U.S. on his bets. With multiple state lottery payoffsnow in the hundreds of millions, horseracingneeds to do something to refresh its payoffs. Sofar all it has done is have tracks tell why it can’tbe done, or wouldn’t work. It is time for racingto realize it’s a new day, drop the defeatist tone,and get off its butt and make every effort possibleto work thru the tangle and legislativeand administrative thicket to do it.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, March 4, 2010BETTING RESUMES IN QUEBECAfter months of being shut out from legally bettingon horse racing in Quebec, patrons of thesport now can watch and wager on more than150 tracks from around the world, thanks to anagreement announced today between WoodbineEntertainment Group and Le Club Jockey duQuebec. As a result of the accord, Woodbine’sHorsePlayer Interactive online account wageringplatform now is available to both Quebec’sharness and thoroughbred racing fans. The serviceis Canada’s first and only legal pari-mutuelaccount wagering service. Club Jockey du Quebec,better known as CJQ, is a not-for-profitgroup formed last June by a group of horse owners,including former Montreal Canadiens hockeystar and successful harness horse owner andbusinessman Serge Savard. The Internet bettingwas approved by the Canadian Pari-MutuelAssociation, according to the Montreal Gazette,after CJQ secured a permit for 10 days of liveracing at a location known as Ayer’s Cliff, witha harness meeting of 50 days a possibility. Takeoutfor bettors under the new agreement willdrop from 30% to 23% under Woodbine and itsaccount betting service.NOT A WYNN-WIN SITUATIONSteve Wynn arrived in Harrisburg, PA, for ahearing with the Pennsylvania Gaming ControlBoard, and with a new lady friend on his armand cheering union workers just happening tobe on hand to greet them. The control board wasless cordial, voting unanimously to continue its$2,000 a day fine of the Foxwoods casino groupthat Wynn expects to take over in Philadelphia,and telling the Vegas impresario it wanted morespecific information on his plans for buildingand managing the long-delayed riverfront casino.The chairman of the board, GregoryFajt, told Wynn, “I’m getting more comfortablewith this, but we’ll take this onestep at a time.”HORNICK GETS 10 YEARSKen Hornick, the former Woodbine media relationsman and Standardbred Canada employeewho turned to drug dealing, has been handeda 10-year suspension and fined $30,000 by theOntario Racing Commission. Chairman RodSeiling, presiding over a hearing requested almosttwo years ago by Hornick after an originalrecommendation of 15 years and a $60,000fine, said, “The use of illegal, non-therapeuticmedications has no place in horse racing. ThisCommission is committed to eradicating theiruse by the small few who would seek to gain anunfair advantage. For that reason, this Commissionhas established and published a substantivepenalty regiment that is designed to act as a deterrent.The penalty falls within the guidelinesas set at the time of the violation....In my view,the ORC properly took into account that therewas a significant need for general deterrence ina case such as this given the level of drug abusein the industry.” Hornick’s car and home weresearched by Ontario Provincial Police and theORC’s Investigations Unit on Dec. 11, 2007, anda number of prohibited substances were found,along with records on his computer hard drivecontaining sales and other information involvingthe DPO drug Aranesp.WHERE’S THE UNDERTAKER?Lawmaking in Indiana is providing some greatsound bytes. One legislator, commenting on theHouse defeat of a move to allow riverboat casinosto move inland, said recently the legislature was“creative” and “the undertaker didn’t have thebody yet.” Yesterday for a brief time it appearedthe creativity might restore the measure, when abill suddenly reappeared from conference committee.Asked about its chances, House SpeakerB. Patrick Bauer replied, “You never say never,but I don’t see it happening, unless you seeTinkerbell and Peter Pan reappearing.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, March 5, 2010DOUBLE BLOW FOR MICHIGANHarness racing in Michigan has suffered a disastrousdouble blow. First the Michigan GamingControl Board, now running racing with the departureof the former racing commissioner’s office,announced draconian cuts in the number ofracing days, harness and thoroughbred, in thestate in fiscal 2009-10. Total racing days for theperiod have been cut from 261 to 112, cappinga decline in five years from 548 dates. NorthvilleDowns has been allocated only 11 more racingdates in the current fiscal year ending Oct.31, Hazel Park, which once raced 168 dates, hasbeen cut to 62, and Pinnacle Race Course, thestate’s new thoroughbred track, has been slashedfrom 84 to 31. Michigan horsemen are workingto challenge the cuts and renegotiate the date allocation,ordered because of the Gaming ControlBoard’s budgetary problems.On the heels of the drastic date cuts, the MichiganState Police announced a joint investigation,with the Gaming Control Board and OntarioRacing Commission, into an alleged race fixingoperation involving up to 30 drivers, trainers,owners and gamblers at Hazel Park, NorthvilleDowns and Sports Creek Raceway. The statepolice emphasized that the three tracks werenot involved and “have been working and cooperatingfully with investigators and are not underinvestigation.” Warrants were obtained forsearches yesterday at homes in southeast Michiganas part of the investigation, but the state policewithheld further details for now and askedfor information from anyone with knowledge ofthe alleged plot. Race fixing is a felony, in Michiganand elsewhere.NO EXEC NEWS NEXT WEEKWith HTA’s staff involved in next week’s annualjoint meeting with TRA in Indian Wells,California, publication of Executive Newswill be suspended next week.CAPPELLI SUED, BUT DEFIANTFor a man who has pretty much had his ownway at every step of his grandiose project in NewYork state, builder Louis Cappelli is determinednot to let a little thing like a $162.5 million lawsuitbother him. That is what EntertainmentProperties Trust of Kansas City, a multi-billiondollar company traded on the New York StockExchange, is asking in its suit filed in federalcourt there, saying no payments on a $225 millionloan have been paid since January, 2009.Cappelli personally guaranteed the loan, butsays it is guaranteed fully by the land value ofhis Concord hotel property. He also said he willsettle with two dozen contractors who have filedliens against Cappelli’s companies for work donebut unpaid. Cappelli told the Middletown TimesHerald-Record, “The liens on the project are predominantlyfrom steel and aluminum contractorsthat prefabricated materials prematurelyfor the project and without signed contracts.”He said once the project financing closes, “thereare sources of money to pay all of the vendors anequitable amount of money. There are no foreclosureor bankruptcy proceedings. The onlything for the future is to build the facility that Ihave been trying to do for 10 years.” The wordyou are looking for, folks, is chutzpah.MORE INTERESTING NUMBERSThe former mayor of Birmingham, Alabama,Larry Langford, who was run out of office afterbeing convicted of bribery, won 555 electronicbingo jackpots over three years at hisfriend Milton McGregor’s VictoryLand Casino,reports from Birmingham say. In oneday two years ago, he won 36 jackpots worth$96,000, and his total winnings from 2006to 2008 came to some $1.5 million. Langfordis being sentenced today for his briberyconviction, and told the Birmingham News,“I gamble a lot, everybody knows that.But I don’t remember winning like that.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, March 15, 2010WHILE WE WERE GONELower than normal attendance, more provocativethan normal presentations by speakers,lower than normal temperatures, downward revisionof budgets in line with current economicconditions, exceptional food, and presentation ofthe 2010 Messenger Award to Gov. Ed Rendellof Pennsylvania capsulize the story of the jointHTA-TRA annual meeting at the Hyatt GrandChampions in Indian Wells, California last week.The meeting also ended the six-year run of jointHTA-TRA sessions, with HTA announcing itwill hold a second late year meeting in 2010, inconjunction with the University of Arizona RaceTrack Industry Program Symposium in Tucsonin early December, rather than its traditionallate February or early March gathering in 2011.Transcripts of the presentations will be distributedto all directors in coming weeks, along withminutes of the business and board of directorsmeetings.BACK TO SQUARE 1 AT BIG ABowing to unrelenting media criticism and politicalreality, Gov. David Paterson of New Yorkwithdrew his support of the furiously controversialaward of the 30-year racino contract atAqueduct Racetrack to the highly questionableAqueduct Entertainment Group, and the dealcollapsed of its own weight. The final strawswere the state lottery commission’s announcementthat it would not license AEG, and NewYork Assembly Speaker Sheldon Silver’s refusalto sign off on the deal because participants failedto meet his previously announced standards fordoing so. The racino, approved legislatively nineyears ago and in political limbo since that time,now reverts to an uncertain fate. Albany hintedat quick new selection of a successor group, presumablyto be chosen from the four otherunsuccessful candidates considered beforeAEG was a huge surprise selection.NEW UNITY AMONG OTBS?Three of New York State’s six regional off-trackbetting corporations -- Western, Capital and Suffolk-- have announced formation of a state-widebetting council and joint venture agreement, underwhich they will work together to streamlineoperations with coordinated projects. The plan,which makes overtures to New York City OTB,Catskill and Nassau to join the loose federation,was announced by Marty Basinait, presidentand CEO of Western Regional OTB and BataviaDowns, and that track’s director on the HarnessTracks of America board. John Signor, presidentof HTA associate member Capital OTB,said racing fans in New York state would seeimprovement in a new joint Web site, Internetwagering, marketing, video streaming and customerservice as a result of the amalgamation.Betting at state OTBs dropped 10.3% last year.The three current members of the betting councilwill launch a radio campaign in the next twomonths, announcing benefits for bettors fromthe new entity.NEWS SUPPORT FOR CENTAURCentaur Gaming, owner and operator of HTAmember Hoosier Park Racing and Casino in Anderson,Indiana, gained strong editorial supportyesterday from its hometown newspaper for itsreorganizational filing for bankruptcy protection.The Herald Bulletin in Anderson called thefiling “painful, necessary,” and said it was a logicalstep for Centaur in its financial battle to gainPennsylvania Gaming Control Board approvalfor its planned Valley View Downs in LawrenceCounty, near the Pennsylvania-Ohio state line.Centaur has been awarded Pennsylvania’s finalharness racing license from the state harnessracing commission, but has been prevented fromobtaining financing because of incessant refusalof the gaming board to follow suit. HoosierPark will open later this month and racethis spring and early summer.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, March 16, 2010JOE HARTMANN DEAD AT 59Joe Hartmann, a veteran member of harnessracing’s publicists’ corps, was found dead in hisapartment in Deerfield Beach, Florida, late Sunday,of an apparent heart attack. Hartmann,who switched to the sport’s publicity ranks afteran early newspaper writing career at theMiddletown, NY, Times-Herald and Port Jervis,NY, Union-Gazette, winning state sportswriterof the year honors at the latter paper. In harnessracing, he worked at Foxboro Raceway andPlainridge Racecourse in Massachusetts, PoconoDowns in Pennsylvania, and Pompano Park inFlorida. He was assistant general manager andpublicity director at Foxboro and general managerof Plainridge, and executive director of theFlorida Standardbred Breeders and Owners Association.He freelanced for industry publicationsand organizations, including the HambletonianSociety, Breeders Crowns, and Horsemanand Fair World, and was recognized as the AllenJ. Finkelson Golden Pen award winner forthe U.S. Harness Writers Association, serving asboth president and chairman of that organizationand president of the North American HarnessPublicists Association. He was nominatedto the Communicators Corner of the Hallof Fame this year. HTA sends its regretsto Joe’s extended family.KY GOV WILL SIGN NEW BILLGovernor Steve Beshear of Kentucky says he willsign an Instant Racing bill for the state, using oldtapes of races long past, if the Senate passes itthis week. The measure then would need Houseconcurrence, with money realized going to supplementpurses at Kentucky’s harness and thoroughbredtracks.ANOTHER COMEDY ACT IN NY?Or perhaps another tragedy? It is nine yearsnow, and counting, since the fumblers in Albanyhave messed around with a racino for Aqueduct,and still no winner. Delaware North couldn’tcome up with the money. Aqueduct EntertainmentGroup couldn’t come up with public orpress acceptance and Assembly leader SheldonSilver’s support. Now the almost-certain outgoinggovernor, David Paterson, says he willreturn to the drawing board and speed up theprocess of naming a new winner who can meetnew requirements. Paterson says he should beable to fashion rules that don’t defy commonsense within a month. His staff, perhaps jokingly,say they are working on a bill that will passover politics, and then they announce the governorstill will have the final word. There may becourt challenges, and hopefully no folly like allowinga candidate to raise their bid by as muchas $100 million, after the fact, to match whatshould have been a winning bid by a rival. Thisis New York, of course, where the governor alsoannounced it was not likely the budget processcould not meet its April 1 deadline...again. Thehead of the Senate Committee on Racing, Gamingand Wagering, meanwhile -- Eric Adams --says he is making progress on saving racing byallowing OTBs to skip payments owed to tracks.He added there was no solid agreement on thatactually happening. Barry Ostrager, presidentof the thoroughbred breeders says he’s “stillquite skeptical.” Oh, come on now, Barry.Don’t be a spoilsport.

HARNESS TRACKS OF AMERICAKY TO ENGLAND FOR TESTINGKentucky’s vaunted bluegrass horse industryno longer will go out of state for blood testing.It will go out of country. The state racing commissionyesterday agreed unanimously to hireEngland’s HFL Sport Science as its official drugtesting laboratory, replacing the University ofFlorida lab. If it will ease the pride of Kentucky,the commission announced HFL will do the workin Lexington, with “world-class testing with theopportunity for this company to expand intoother areas.” The idea of a nationwide testinglaboratory in the interest of uniformity has beenkicked around for years, and racing commissionchairman Robert Beck made it clear that is ahope contained in the new agreement. “This ismuch more than just drug testing of racehorsesat Kentucky tracks,” he said. If other states signon with a better deal than Kentucky will pay,Kentucky’s costs will be lowered. Lisa Underwood,executive director of the racing commission,says using HFL could save Kentucky 20to 25% of its $900,000 current costs for testing,or between $180,000 and a quarter of a million.HFL is a division of Quotient Bioresearch, whichthe announcement release says provides specialdrug development services to pharmaceutical,biotechnology and medical device clients worldwide.The Kentucky commission’s action apparentlyrelied heavily on the recommendations ofthe chairman of its equine drug research panel,Jerry Yon, who said that after months of studyingcompeting testing contract offers he was convinced“no lab in the world does testing betterthan HFL.”There was more news from Kentucky on a busylegislative day. The issue of Instant Racing,which governor Steve Beshear approves, becameentangled in politics when David Williams,the President of the State Senate, said hischamber will remove the item from aHouse bill it is considering.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, March 17, 2010Williams put the item directly in the lap of thegovernor, who could approve it by executive order,or the racing commission, which could doso by changing regulations. In either case, Williamssaid the Senate would impose a 1.5% taxon Instant Racing, which would go to purse increasesand breeders incentives. A Senate committeeis meeting today to remove Instant Racingfrom the bill, according to kentucky.com, andfull Senate consideration will follow if the committeetakes action. Senator Williams told thenews service, “the bill will not authorize InstantRaces but will protect the position of the pursesand incentive funds if such action is taken by theexecutive branch, which the attorney general’soffice said they could do.”TABLE GAMES BY JULY: SOPERFollowing Pennsylvania Gaming Control Boardapproval of Mohegan Sun at Pocono’s requestfor table games, the track’s president and CEO,Bobby Soper, told the Wilkes-Barre Times Leaderthat after other details of internal controls satisfythe board, he thought his racino could be readyto offer games to players in June or July. Beforethat, Mohegan Sun would have to pay the state$16.5 million by June 1 for a licensing fee. Soperhad just returned to Wilkes-Barre after presentingHTA’s Stan Bergstein Messenger Award toPennsylvania Governor Ed Rendell at the jointannual HTA-TRA convention in California.IT WILL KILL US: SPECTOREric Spector, owner and operator of WyomingDowns in Evanston, is worrying about potentiallegislation that could affect future plans tocontinue this year’s schedule of no live racingbut continued simulcast by holding two “ropingdays.” He told the editorial board of the CasperStar-Tribune, “This concept of government orlegislative control is the wrong approach. Allit’s going to do is put us out of business.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, March 18, 2010DINNER THEATER AT MOHAWKAfter nearly two years of discussions and planning,HTA member Mohawk Raceway will havea dinner theater prior to its 2010 racing season.Mohawk’s parent, Woodbine EntertainmentGroup, and Working Reel Productions have announceda limited spring run of Move Over Mrs.Markham, which played in London and NewYork, with both evening and matinee performances.The first show will be an evening eventon April 9, followed by other nighttime performancesthroughout April and May and matineeson April 11 and 25 and May 9 and 16. Twonights already are sold out after initial pre-sales.Summer and fall live racing at Mohawk does notget underway until May 20 and will continuethrough October 16.BIG IDEAS FOR MONMOUTHThere is excitement in Oceanport, New Jersey,home of Monmouth Park. The New JerseySports and Exposition Authority has announceda shortened summer meeting with an unprecedented$1 million a day purse distribution; thereis talk of building a thoroughbred training facilityat nearby Fort Monmouth, which is beingvacated and moved by the army to Maryland;and Oceanport officials are talking again aboutbuilding a convention hotel and transformingthe area into a resort, entertainment and businessmeeting destination.CASINO FOES VS. CORDISHOpponents of a casino at the major mall ArundelMills, Maryland, have asked a court to allowthem to intervene in a lawsuit in which the giantCordish corporation is suing the Anne ArundelCounty board of elections for alleged fraud in areferendum effort that threatens to send the issueto public vote next fall. Field Works, acompany hired and paid by the MarylandJockey Club, also seeks to intervene.AROUND THE TRACKS....A bill EXPANDING TABLE GAMES AT NEWYORK STATE RACINOS to include electronicbaccarat, roulette and blackjack and expand thehours of operation has passed the state Senate....THE ILLINOIS HOUSE HAS PASSED A BILLTO OUST ALL 11 MEMBERS OF THE ILLI-NOIS RACING COMMISSION. It would requireGov. Quinn to either reappoint them or name replacements.The bill, sponsored by CollinsvilleDemocrat Jay Hoffman, was an angry reaction toan earlier racing board decision, since rescinded,that would have cut racing dates at FairmountPark in Collinsville from 52 to 3 this year. Thebill not only upset Hoffman, but apparently mostdownstate House members and others, who approvedthe measure 89-24. Hoffman was quotedby the Chicago Sun-Times Springfield bureau assaying the move was part of an effort “to forcean unfair tax increase on the track.” A boardspokesman denied that, blaming financial problemsfor awarding dates “when it wasn’t fiscallyfeasible.” The bill now goes to the state Senate....ANOTHER POSSIBLE LEGISLATIVE DEATHIN KENTUCKY. A Senate committee that a weekago had passed, with strong bipartisan support,a bill that would have enabled Instant Racing onold video races, reversed itself after the measurewas sent back to it by the full Senate. The committeechairman, Senator Damon Thayer nowsays it is questionable if the measure can be revivedin the face of opposition....A poll conductedby the University of Massachusetts Dartmouth’sCenter for Policy Analysis says 58% OF STATEVOTERS FAVOR TWO CASINOS ALONG WITHSLOTS AT STATE TRACKS. Opponents quicklyquestioned validity of the poll....Canadian Sportsmaneditor David Briggs, writing in the GuelphMercury, says a move to pool purse distributionamong Ontario’s 16 harness tracks is “gainingtraction” as a means of survival.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, March 19, 2010WEB OWNERS LOSE IN KYIn a case that the Lexington Herald-Leader sayshas “international repercussions,” the KentuckySupreme Court ruled yesterday that owners ofgambling Web sites operating in the state mustappear in court to defend themselves againstKentucky’s attempts to seize their domainnames, which the state seeks to do to curb illegalInternet gambling. Web site owners havenot appeared in court, remaining anonymouswhile lawyers for Internet gambling proponentshave represented them. One of those lawyers,Jon Fleischaker of Louisville, representing theInteractive Media Entertainment and GamingAssociation, told the Herald-Leader’s BethMusgrave he considers yesterday’s decision“a very, very temporary setback.” He called it“an unusual decision because it signals an interestin the merits of the case and gives us a roadmap on how to get back to the Supreme Courtquickly.” The state saw it differently. Justiceand Public Safety Secretary J. Michael Brownsaid it allowed Kentucky to continue its effortsto curb illegal gambling on the Internet. Internetgambling advocates claim a victory for thestate would curtail Internet freedom worldwide.The Poker Players Alliance issued a statementsaying, “The commonwealth’s effort at such abold, broad and, we believe, unlawful seizuresets a dangerous precedent for anyone who usesthe Internet.” Yesterday’s unanimous 6-0 decisionsaid the pro-Internet gambling associationsinvolved must disclose the companies that theyrepresent. A key issue is whether Kentucky hasthe authority to seize domain names of 141 Websites run by out-of-state entities, and whether, asthe state maintains, the 141 are breaking Kentuckylaw by operating illegal gaming activitiesin the state. Gov. Steve Beshear believes the statecan seize the domain names, and proposesclosing the sites down, although they currentlyare still operating.LAS VEGAS DOES HAVE LIMITSThere is such a thing as too much of a bad thingin Las Vegas, after all. The Nevada GamingCommission has said “No” for a private entrepreneurto move forward with an idea in whichconvenience store operators could have customerstake their change from transactions as creditsfor slot machine play right at the cash register.The state Gaming Control Board asked the stateGaming Commission to rule on the idea, andyesterday the commission voted, 3-2, against theidea. The Las Vegas Sun, covering the hearing,reported commission chairman Peter Bernhardas saying, “It’s not a question of can it be done,but should it be done?” Commissioner John MoranJr., testifying for the majority, said he couldsee “five Little Leaguers with Slurpees in line atthe convenience store waiting for an attendantto activate the ‘Change game.’” His vision wasenough to turn the tide in the narrow vote.AN INTERESTING 3-WAY DEALIt is still fragile and may not survive, but a gamblingdispute in Maine could be resolved by aunique three-way agreement. A proposal thatwould expand gaming in western, eastern andcentral Maine, has tentatively been reachedamong Penn National Gaming, with its HollywoodSlots in Bangor; the Passamaquoddy Indians,who have sought gaming rights on triballand for 20 years; and Black Bear Entertainment,which is seeking slots and table games inOxford County. Penn National originally urgedlegislators to reject the idea, but after a week ofprivate negotiations now is reported by the BangorDaily News to agree to it if table games wereapproved for its Bangor main street HollywoodSlots operation. If approved by the legislature, areferendum approving the three-way deal wouldbe voted on by Maine voters next November.Some legislators have expressed concern inhaving time to consider the “complicatedcompeting ballot measure.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, March 22, 2010CARDS FOR ROSECROFT?The Maryland Senate gave preliminary approvalto card games at Rosecroft Raceway last Friday,subject to approval by a voter-supported constitutionalamendment. The measure was supportedby Senate President Thomas V. Mike Miller,and according to the Baltimore Sun “stirred abroad debate about enhancing gambling optionsin Maryland.” The state still is strugglingto get its slot machine program, approved twoyears ago, underway. A motion to expand thelocal Rosecroft card provision to Maryland’sfive slot machine locations, which do not includeRosecroft, was defeated. After some technicaladjustment this week, the proposal also will requirepassage by Maryland’s House of Delegates.During consideration of the Rosecroft bill in theSenate, the Budget and Taxation Committee effectivelykilled a proposal for table games at slotlocations by asking for a study as to how theywould affect gambling in the state.BIG A HORSEMEN STOP RACEMembers of the New York Thoroughbred Horsemen’sAssociation and thoroughbred breedersand their supporters, some 500 strong, stageda protest rally at Aqueduct racecourse on LongIsland yesterday, and the track’s first race wascancelled when trainers for six horses in therace did not bring the horses to the track securitybarn by an 8 a.m. deadline. The rally wascalled to protest nine years of inaction on a slotsprovider at Aqueduct, the latest delay comingafter the winning organization, the AqueductEntertainment Group, was declared unfit to receivethe rich reward. A horsemen’s release said,“There have been nine years of broken promises,regarding a video lottery terminal operation atAqueduct, which now threatens 35,000 jobs anda $2.4 billion industry in New York state.”Aqueduct’s state steward fined each ofthe six trainers involved in the boycott$500.GEITHNER KISSES KYL ON NETThe Washington Post, in a news item on pendingenforcement of the UIGEA, the UnlawfulInternet Gambling Enforcement Act, reportedrecently that a meeting between Treasury SecretaryTimothy Geithner and Arizona’s SenatorJon Kyl, the Senate Minority Whip, resulted inGeithner agreeing to no further delays in enforcementof UIGEA in return for Kyl releasingholds on six Democratic federal appointees. TheInternet ban was due for enforcement in December,but Treasury agreed at that time to a sixmonthhold until June 1. Rep. Barney Frank,sponsor of legislation to defuse the bill, has notyet had it marked up in his own House FinanceCommittee, and now has only two months to doso if Geithner keeps his promise to Kyl.USTA EXTENDS BROOKS’ STAYThe executive committee of the U. S. Trotting Association,meeting Saturday during the USTA’sannual board meeting in Columbus, continued itsstay on the suspension of owner Jeffrey Brooks,brother of David Brooks, owner of the incrediblysuccessful Bulletproof Stables. David Brookscurrently is on trial in federal court on Long Islandon fraud and other charges. USTA presidentPhil Langley, addressing the Jeffrey Brooksissue, said, “We have spent a great deal of timestudying this information and listening to our attorneys.Our decision is to continue the stay untilthey have a hearing in Canada, or somethingelse comes up in the case.” No hearing has yetbeen held in Canada, where the Brooks familysuspension began, with USTA following suit.ANOTHER ABUSE CASE IN NYShortly after the conviction on 33 counts of animalabuse involving thoroughbred trainer ErnieParagallo, 73 horses and more than 50 dogs andcats have been seized by SPCA officialsfrom a farm in Aurora, NY.

HARNESS TRACKS OF AMERICAJUDGE RULES FOR NYCOTBScore one for New York City OTB and oneagainst the New York Racing Association in theirdispute over bankruptcy as a possible solution toNYCOTB’s problems. Bankruptcy judge MartinGlenn rejected, one by one, all of NYRA’s argumentsin its efforts to halt Chapter 9 bankruptcyproceedings by NYCOTB, and said bluntlythat the ailing betting corporation “will eitherreorganize or liquidate under the watch of thiscourt.” NYRA contended NYCOTB had filedfor Chapter 9 protection in bad faith to avoidpaying creditors, including NYRA and YonkersRaceway, both high on the list. Judge Glenn dismissedthe arguments one by one in a 43-pageruling, calling NYRA’s actions “an overreach,”saying Gov. David Paterson had issued an executiveorder approving the filing. The judge’s decisionwas a rebuff to New York horsemen -- bothharness and thoroughbred -- as well, since theyhad supported NYRA’s arguments. NYCOTB ishoping for quick legislative relief, its presidentMeyer Frucher saying without it the associateHTA member cannot survive. He plans to havetermination notices sent by Friday if help doesnot arrive from Albany by then.MAGNA, DEFRANCIS SETTLEMagna Entertainment, facing a roadblock in theauction sale of its Laurel and Pimlico tracks, hassettled with Joe DeFrancis and his sister Karinover their claims for slots and other profits fromthe sale. Magna will pay the siblings $8 millionand another $4 million will be paid by the MarylandJockey Club. That’s only the beginning. Ifthe tracks bring more than $39 million at auction,Joe and Karin stand to pick up another 15to 25% of the proceeds, according to the BaltimoreSun. If Magna’s parent company, MI Developments,should buy the tracks outsidethe auction process, or if they sell for lessthan $39 million, the brother-sister teampicks up another million, the paper says.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, March 23, 2010A hearing is scheduled for today, and Magnasays it is critical that the proposed settlement beapproved so the sale can go forward Thursday.A TOTE MESS AT NORTHLANDSTwo days after the horses crossed the finish line,HTA member Northlands in Edmonton still waswaiting for an explanation from its tote supplieras to what happened and why after Saturdaynight’s 10th race. Technical difficulties apparentlyprevented AmTote from posting payoffs.The track says the race never was declared official,although the track announcer said it wasand added, “There will be a slight delay in thepays being posted.” After an hour and 20 minutes,the track’s TV screens said the $13,783 beton the race would be refunded. AmTote and thetrack made a joint decision to refund “becausewe could not pay the customer,” and AmTotespokesman Jay O’Neal was quoted in today’sEdmonton Journal as saying the company was“gathering all the facts regarding this incident.Once all facts have been gathered and reviewedin detail, AmTote will be in a position to providemore information.” All pools are available, andodds still are available from Horseplayers Interactive,the company that handles Internet andtelephone betting through Woodbine EntertainmentGroup in Toronto. As of yesterday afternoonthere were no further answers available asto what happened.FOREWARNED IS FOREARMEDThe Ontario Racing Commission, in a commendableeffort to head off positive tests for a newprohibited substance problem, has advised allparticipants in Ontario racing to be aware of theproperties of calcium propionate. The substanceis an alkalizing agent similar to baking soda, andits use could lead to readings that exceed acceptableTCO2 levels under rules of racing inthe province.

HARNESS TRACKS OF AMERICAIS ANYONE SURPRISED?The oft-postponed Magna Entertainment Groupauction of Pimlico and Laurel in Maryland,which had been scheduled once again for tomorrow,will not take place. Magna says it could findno satisfactory “stalking” bid to start the auction,and instead will sell it essentially to itself, ormore accurately to its parent, MI Developments.Despite heavy losses, Frank Stronach decided notto give up the two tracks and Pimlico’s proudestpossession, the Preakness. MID vice chairmanDennis Mills said in a press release, “Weare excited about the development opportunitiesrepresented by the land owned by the MarylandJockey Club. The land is comprised of 565 acresin three major properties well-located in theBaltimore-Washington area.” Magna attorneysreportedly said Monday the auction still was on,but at least some of the bidders were notifiedby e-mail yesterday that it had beencalled off.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, March 24, 2010NH SENATE SLOT VOTE TODAY One bitter bidder, Jeffrey Seder, managing directorof Blow Horn Equity, called the Magna-In what is predicted to be a close vote, the NewHampshire Senate votes this afternoon on allowingup to 17,000 video slot machines at six locaroomsecret deals” and told the Baltimore SunMID arrangement “another example of backtionsin the state, including HTA member RockinghamPark. The Senate did not plan to wait on tracks) in 35 years.” As part of the announcedthat Magna “hasn’t put in a new ashtray in (thea “quality of life” study, commissioned by Gov. arrangement, MID will pay unsecured creditorsJohn Lynch but not due until May, or for a House $89 million, instead of a previously announcedvote, still to come. The governor has indicated $75 million promised as settlement for a creditors’lawsuit that had claimed Stronach proppedhe will veto any slots bill unless convinced “byoverwhelming evidence” that the state’s quality up Magna with equity infusions disguised as securedloans. MID also will pay Joe DeFrancisof life will not be adversely affected. Rockinghamalready has lost its 2010 live racing season, and his sister Karin and other former owners ofwith no funds for a state racing commission to the tracks $4 million for their future slots rightsregulate the sport. As the bill reads heading for and another $1 million, arranged in recent days,the Senate vote, the first $50 million of revenue because the properties were selling for less thanfrom slots license fees, likely to be from Rockingham,would have to be used to restore health and ment of some $13 million by MID to PNC Bank,$39 million. The transaction also includes a pay-welfare cuts already in place. Any House vote, which holds a lien on Magna’s Maryland racinglike today’s Senate vote, is expected to be close. assets, and another $6 million to pay holders ofunsecured claims against the Maryland JockeyClub. A DeFrancis lawyer said the DeFrancismillion dollar sign-off had been made withThursday’s scheduled auction “a significant partof the consideration and the inducement.”SENATE SLOT ACTION IN KSThe Federal and State Affairs Committee of theKansas Senate passed by a 5-4 vote this morningand sent to the full Senate a bill that would boosttrack revenue from slots at one dog track andthe Woodlands horse and dog track in KansasCity from 40% to 58%. Both tracks currentlyare closed, as is Wichita Greyhound Park.KY’S BILL NAPIER DIES AT 63Bill Napier, longtime executive director of theKentucky Harness Horsemen’s Association, hasdied at 63 after a long fight against pancreaticcancer. Napier, a former Lexington detective,had headed the horsemen’s association formore than 20 years.

HARNESS TRACKS OF AMERICAIn New Hampshire, they voted, 14-10, to allow upto 17,000 slots at six locations in the state, includingHTA member Rockingham Park. The measurepassed with bipartisan support, but facesa tough fight in the House, where it has beendefeated before, and from the governor, JohnLynch, who has threatened a veto. Lynch wantsthe legislature to wait until he receives a final report,due by May 25, from a commission he selectedto consider the issue. Millennium Gamingholds an option to buy Rockingham if slots pass,and the track would be in line for a $450 millionrenovation, which supporters say would create2,000 construction and 2,500 permanent jobs.In Maryland, the Senate passed, 34-13, a bill thatwould allow table games, including poker, blackjackand baccarat, at Rosecroft Raceway. A $51million renovation job would be needed thereto upgrade the facility, and the measure facesan uphill battle, as it does in New Hampshire,in the House. It lost a similar fight in the Housethree years ago, and it also would require a statewidelocal referendum in November. Mark Vogel,who is seeking to buy the track, said cardswould preserve 200 jobs, create 400 more andproduce as many as 1,500 jobs in ancillary businessand as much as $258 million in gross revenuethe first year for Prince George’s County,where Rosecroft is located. A formidable foe isthe Speaker of the House, Michael E. Busch, whosaid of the measure, “If you did go to full fledgedtable games and card games, that is somethingthat everyone would want to take up at the fiveexisting facilities as well. I don’t think weare quite there yet.”Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, March 25, 2010SENATE ACTION IN NH, MD, MN The chairwoman of the Prince George’s delegation,State Senators were busy yesterday, openingDemocrat Melony Griffith, tolddoors to new wagering opportunities in NewHampshire, Maryland and Minnesota.the Baltimore Sun she sympathizes withthe financial problems facing the track, but“I’m just not convinced that the delegation believesthis is the best way to get us to that desiredresult.” She acknowledged that a majorityof voters in the county voted to approve slots inMaryland two years ago, but added, “One mightread the vote as an agreement to allow those jurisdictionswho want to have slots in their communitiesto have them, but I’m not sure that votetranslates into support for gaming.”In Minnesota, Democratic Rep. Al Juhnke attacheda racino bill to another measure thatwas approved by the House Agriculture, RuralEconomics and Veterans Affairs Committee, ofwhich he is chairman. That kept alive hope forslots at the state’s two tracks, including HTAmember Running Aces in Columbus, with alarger House committee still to vote and the billstalled in the state Senate.HOW MUCH BOOZE IN INFIELD?How many gallons of beer and booze will your infieldhold? Pimlico in Maryland is likely to findout on Preakness Day, when it takes big steps-- or perhaps strokes -- to recapture the collegecrowd it lost last year with its ban on booze beingbrought in from outside. A baltimoresun.comfeature says attendance fell by 35,000, to 77,000,and quoted a Pimlico spokesman as saying, “Wewere boycotted by the college kids, but we stillbelieve that was the right decision. Obviously,we took something from them last year.” Thisyear, they are reducing the infield price from $50to $40, and adding a $20 offer for 16-ounce mugsof beer with unlimited refills, individual beerswill sell for $3 instead of the previous $3.50. Howmuch it will cost to haul away those whocan’t walk still hasn’t been calculated.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, March 26, 2010NEW ‘GOLDEN AGE’ IN MD?That’s what the Baltimore Sun says Dennis Mills,CEO of MI Developments, expects at Pimlico andLaurel following the switch from Magna Entertainmentto its parent MID. The paper conducted“an extensive interview” with Mills and writerAndrea K. Walker says he envisions “anothergolden age of horse racing in Maryland -- believingMI can polish the Preakness and transformthe two tracks into profitable enterprises withbigger betting pots and new retail and entertainmentvenues on the land.” Mills says the FrankStronach-controlled operation hopes it will get asecond chance at slots in the state, having beendisqualified earlier for not paying a required upfrontfee. He also sees the tracks aiming for tablegames. He stressed that Magna and MID “aretwo totally different and totally separate publiccompanies. Yes, we do have the same chairman(Stronach) but it is a different philosophical approach.”INTERESTING OAKLAWN TWISTConcerned about field sizes as its season drawsto a close, the runners at Oaklawn Park havedecided to return to an experiment that racingsecretary Pap Pope tried last year. The plan isto draw new horses and keep what he has by increasingpurses by $1,000 for each starter overeight, starting today. The experiment will continuethrough April 10, the end of Oaklawn’sseason. Pope tried the idea last year and saidit seemed to help field size late in the meeting,as tracks elsewhere open for spring and summermeetings.NY OKS TIOGA TAKEOUT PLANNew York’s racing and wagering board has approveda drop in takeout at HTA member TiogaDowns, from 18% to 15% on win, place andshow; 20% to 17% on daily doubles andexactas; and from 25% to 21% on otherexotics.FREEHOLD PURSES UP AGAINThe infusion of a $4.8 million allocation fromNew Jersey’s Purse Enhancement Agreementhas produced a second hefty purse increase acrossthe board at HTA member Freehold Raceway.Racing secretary Karen Fagliarone announcedyesterday that Freehold’s $10,000 claimers willsee an increase from a season’s starting point of$3,800 through a boost to $4,900 on Feb. 19 tonext week’s $6,000. Horses with a $15,000 pricetag, which were racing for $4,500 two monthsago and jumped to $5,800 in February now willrace for $7,200; and $20,000 claimers, originallyracing for $6,400, got a boost to $8,300 in Februaryand will race for $10,200 starting next week.Preferreds, which started the season at $8,600and were boosted to $11,000 in mid-February,will go for $13,800 next week and thereafter.KY INSTANT RACE BILL DEADState Senator Damon Thayer of Kentucky hasadministered last rites to his Instant Racing bill,at least for the moment, in the absence of enoughvotes to pass it and opposition to it. The FamilyFoundation thinks it is an unconstitutional expansionof gambling; House Democrats and thegovernor still want slots at tracks; and SenatePresident David Williams put the stake thru themeasure’s heart. Thayer still hopes that Gov.Steve Beshear might legalize it by executive order,but a spokeswoman said the governor hasnot considered action past the current legislativesession, but still is “committed” to help horsebusiness in the Bluegrass.SO THAT’S WHERE THE $ WENTThe Ontario Teachers’ Pension Plan is buyingCamelot Group PLC, the consortium that runsGreat Britain’s National Lottery. The teachersobviously learned their lessons well. They arepaying $579 million for Camelot. At leastsomeone is solvent.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, March 29, 20101,300 GOING, EXECS PASS PAYThings are grim on Broadway, where New YorkCity Off-Track Betting corporation went into crisismode, threatening to close its 66 betting shopsin the city. Pink slips went out to more than 1,300employees, and president Ray Casey announcedthat executives and expensive consultants wouldforego pay until New York’s sluggish legislaturetakes some action to help the dire situation. “Inthe days ahead,” Casey said, “over 1,300 hardworkingOTB employees will receive terminationnotices in the mail because there remains noconsensus on the legislation required to keep thisvital economic engine alive. Until a compromiseis forged that saves these jobs, we will suspendour pay.” It seems likely that “the legislation required,”if passed, will not be to the liking of NewYork racetracks. Yonkers Raceway and the NewYork Racing Association already are looking athuge losses as OTB struggles in Chapter 9 bankruptcyand its cash position deteriorates. EvenNew York’s besieged governor, David Paterson,called for the legislature to “stop the cat calls andget to work.” The state Senate was scheduled totake up an emergency budget plan today.KY ANSWER: HIT THE PATRONOn straight party lines, the Kentucky Senatepassed, 21-17, a bill to raise purses by addinga 1.5% tax on advance deposit wagering at thestate’s racetracks. The tally saw all 20 Republicansand 1 Independent vote for the measure andall 17 Democrats oppose it. KEEP, the KentuckyEquine Education Project, issued a statementsaying, “We are astounded that Senate Republicanshave once again ignored the pleas of thehorse industry to help level our competitive playingfield, and have instead chosen to pass a taxincrease on our struggling signature industry.”Former governor Julian Carroll denounced themove. Senator Kathy Stein asked, “Whatare we doing?” and spokesman JohnAsher called it “disappointing.”NYRA MAKES DEEP CUTS, TOOReacting to the demise of Aqueduct EntertainmentGroup as casino operator at Aqueductand financial losses as a result of New York CityOTB’s bankruptcy, the New York Racing Associationhas terminated 12 staffers who were earninga total of $1.4 million a year. NYRA did notrelease names, citing privacy, but reports saidJohn Ryan, a senior VP and chief administrativeofficer, headed the list, losing his $295,000a year job. Others in the purge were Ryan’ssecretary Gina Toner; head of group sales DebbieSolomine; director of purchasing Mary JeanCoscia; and Saratoga operations manager KevinGremillion. NYRA president and CEO CharlesHayward called the firings “a difficult, but unfortunatelynecessary decision that was dictatedby the current economic downturn and NYRA’scurrent challenging financial situation.”NH GOV PLANS TO BLOCK LAWDemocratic Gov. John Lynch of New Hampshire,asked if he planned to veto the slots bill passedlast week by the state Senate, told reporters, “Iwill do what it takes to have it not become law.”The New Hampshire House still has to pass it.NOW FOR SOME GOOD NEWSA glowing story on Mohegan Sun at PoconoDowns boosting the local economy and details ofits big upcoming 12-race Breeders Crown Octoberfestwas featured in yesterday’s Wilkes-BarreTimes Leader WEEKENDER. Writer S. JohnWilkin said the track’s racino had been overshadowingits racing by helping the local areaeconomically, but pointed out that Pocono nowis offering $150,000 a day in purses, giving itmajor league harness stature. Pocono’s directorof racing operations Dale Rapson was shown inthe track’s colorful paddock, with stalls matchingbright saddle pad colors, and quoted on thebig things to come during the summer andparticularly with the Breeders Crowns.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, March 30, 2010NEW PLANS FOR RCIEd Martin, president of Racing CommissionersInternational, has announced an ambitious threeyearprogram for that organization built aroundcreation of a new state regulatory structure, theNational Racing and Wagering Commission.RCI will serve as a resource for commissionsand others seeking uniformity in regulation,standardization, common safety standards, simplifiedlicensing, economies of scale, and eliminationof redundancies.“A top priority,” Martin says, “is the creation ofa new interstate compact for racing regulationin the United States. RCI has been working withthe Council of State Governments (CSG) and apublic-private steering committee involving theNTRA, the Jockey Club, the USTA, NationalHBPA and Keeneland to develop model statelegislation to create an entity that enables individualracing commissions to jointly promulgateand adopt common rules.”Martin issued a three-page “blueprint” of neededreforms and improvements that he says racing’sregulators are committed to working toward,and stressed that RCI members “stand ready towork in partnership with other industry organizationsto advance these reforms.” The goalscenter around four primary areas of concentration:1- Creation of the new interstate regulatory compact;2- Equine welfare and drug testing;3- Canine welfare;4- Wagering SecurityMartin, a fellow Tucson resident, says he realizesthere are tough issues to be worked through, buthe and RCI members believe a collective commitmentto finding common ground canresult in the best results for racing andthe public.NEW DOINGS IN DELAWAREWhy should Delaware be different from everywhereelse? A new confrontation between Democratsand Republicans has arisen, with PeteSchwartzkopf, the Democratic leader of theHouse, pushing hard for a casino license in SussexCounty that would free the holder from havingto operate a harness track, and Republicanleaders in Sussex County already having passedunanimously, by a 5-0 vote, a measure to declarea six-month moratorium on submission of zoningapplications for gambling venues. How thoseopposing actions play out against one another remainsto be seen. Sussex Council President, RepublicanVance Phillips explained that becausecasinos were not included in any county zoningordinances, “a moratorium was the only actioncouncil members could take. There is a loophole,and we need to put brakes on any applications.The county needed the moratorium to stop a rushof applications and shut the door to give us timeto consider regulations.” No applications actuallyhave been filed, but at least four proposals havesurfaced, including one for Wilmington; anotheroutside Georgetown, home of the old largely forgottenGeorgetown Raceway; at Delaware SeashoreState Park; and in Delmar. Three of thefour would be under Sussex County jurisdiction.Delaware being Delaware in size, all would affectthe market area of HTA member HarringtonRaceway. As the General Assembly discusses theissue, the amendment to change the verbiage ofthe expansion bill is due today in the House, witha vote expected Thursday. Passage is uncertain.In a similar squabble in Arizona, a municipal effortto halt construction of a $550 million Indiancasino, hotel and shopping center in the Phoenixsuburb of Glendale ran into an unexpectedbarrier yesterday when the president of the stateSenate ruled that the dispute “is not somethingwe should be involved in,” and killed it.

HARNESS TRACKS OF AMERICAIn New Hampshire, the state Senate passed a slotsbill last week, by a 14-10 vote, a measure thatwould give slots to Rockingham. Yesterday, in aspirited session, the House took up the measurewith Sen. Lou D’Allesandro, longtime backer ofthe proposal, calling it an economic stimulus andjob creation package. D’Allesandro said RockinghamPark could be up and operating a racinowithin six months after passage of the enablinglegislation, and he challenged opponents, saying,“If there’s a better way, I suggest you bring itforward.” The bill as passed by the Senate callsfor up to 17,000 machines in the state, and whenquestioned about that number D’Allesandro said,“I’m not sure we would ever get to the 17,000number.” Rockingham president Ed Callahanwas on hand for the hearing, along with WilliamWortman, co-principal of Millennium Gaming,which has an option to buy the track and says itwill do so and spend $450 million to renovate it ifslots are approved.In Maryland, the House of Delegates is consideringH.B. 608, which would expand the law alreadypassed but not yet in effect providing slotsfor the state. If that measure passes, Mark Vogel,who once owned Rosecroft Raceway and istrying to buy it again, thinks he and the trackhave a chance. “Without alternative gaming,”Vogel says, “Rosecroft will close. If we have towait two years (for a public referendum) I don’tthink I’ll try again. We’ve got a chance of gettingit.” Veteran Maryland racing writerRick Snider wrote, “There’s a lot of lobbyingand arm twisting coming.”Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, March 31, 2010TWO TRACKS FACE KEY BILLS One Maryland legislator, state Senator C. AnthonyMuse, wrote to the state’s governor, Mar-Pending legislation likely to be voted on in Aprilcould determine life or death for two harness tin O’Malley, last week, saying the state’s harnessracing industry is “being discriminatedtracks seeking salvation from slots. RockinghamPark in Salem, NH, and Rosecroft Raceway against” by the present racing commission andin Fort Washington, MD, say their futures are charging that the commission chairman, Johndependent on passage of the bills.B. Franzone, is serving a third consecutive termin violation of Maryland law. Muse, who hasintroduced legislation calling for separate thoroughbredand harness commissions, noted in hisletter to O’Malley that only one of Maryland’sten current racing commissioners has any significantexperience in harness racing.PENN NAT’L OUSTS KILLERSWith deeds speaking louder than words, PennNational Gaming has moved to halt the sellingof unwanted horses to slaughter dealers. ChrisMcErlean, vice president of racing, announceda new policy that will take effect immediatelyat Penn National’s five wholly owned and operatedtracks, including harness tracks HollywoodRaceway in Bangor, ME, and Raceway Parkin Toledo, OH, and thoroughbred operationsat its home base at Penn National Race Coursein Pennsylvania, Zia Park in Hobbs, NM, andCharles Town Races in West Virginia. The newedict reads, “Any horseman stabled at a PennNational Gaming Inc. -owned or -operated horsefacility who knowingly, or without conductingdue diligence, sells a horse for slaughter, directlyor indirectly, will have his or her stalls revokedand may, in addition, be barred from all of ourracing properties. Penn National requires thathorsemen participating at the company’s racetracksconduct proper due diligence on thosebuying horses and encourages horsemen participatingat Penn National facilities and industrywide to support rescue and adoption efforts andseek humane means of dealing with horses unableto continue racing.” McErlean said PennNational has a long-term commitment tothe humane treatment of animals.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, April 1, 2010NO DELAWARE CASINO VOTEThe bill to expand casinos in Delaware beyondthe three currently at HTA members DoverDowns and Harrington Raceway and DelawarePark died last night -- at least for the present --when the sponsor of the bill pulled it, lacking the21 votes needed to pass. The measure -- HouseBill 194 -- will at best be delayed while Delawarelawmakers enjoy a two-week Easter break. Themeasure drew nine amendments in yesterday’sdiscussion, including some to kill it, and Rep.Greg Lavelle, a Republican sponsor, doomedthe proposal when he said he was unhappy withit as amended by House majority leader PeteSchwartzkopf, a Democrat. Schwartzkopf sayshe will regroup during the recess and return todo battle again. Bobby Byrd, a former lawmakerand adviser to former governor Ruth Ann Minner,lobbying for Dover Downs, agreed, saying,“The way the General Assembly works, very seldomare bills ever dead, They get tabled. Theyget put in committee. They get postponed.”Even if passed in the House after the recess, thebill faces an uncertain fate in the Senate.ROSECROFT BILL ALSO SHAKYAlthough the president of the state Senate andthe senator representing Rosecroft’s districtsupport legislation that would bring poker andother table games to the track, a House legislatorfrom Rosecroft’s district who also favors passagesays she thinks “the odds of it coming out ofthe House are slim.” An earlier bill proposed bythat House member, Rep. Kris Valderrama, wasfavored by only 12 of the county’s 23 delegates.A legislator who opposes cards for Rosecroft,Doyle Niemann, was quoted by Gazette.Net, anonline service of Maryland newspapers in Rosecroft’sarea, as saying, “It’s way too early to beexpanding gambling when we haven’t evenworked out slots.” Jobs could be an issue.Rosecroft, even without live racingbut with simulcasting, employs over 200.TABLE GAMES ALIVE IN MAINEUncertainty apparently is the key word of theday everywhere. A key first vote in the MaineHouse yesterday kept chances alive for tablegames at HTA member Hollywood Slots inBangor. The issue was saved for the momentby incorporating a proposal for Indian gamingwith that of Hollywood, in a single questionrather than as separate entities. A thirdgroup, Black Bear Entertainment, LLC, seekingto build a resort casino in Oxford county,distant from Bangor, supports the Hollywood-Passamaquoddy Indian accord, which offersstatewide appeal instead of regional disputes.THE NUMBERS GAMEBATAVIA DOWNS set new records last weekendwith the giveaway of a 2010 Camaro featuredin a daylong “Muscle or Money” contest.Records set include attendance of 6,107 andbetting of $3.155 million, with the profits fromthe 605 VLT’s averaging over $400/machine.Bettors and buyers at WOODBINE were ona tear last week, producing an $18,125 superfecta,a $4,838 Pick 4 payout from a pool of$45,780.66, a win payoff of $91.90, an averagePick 4 pool of $32,106. Also, two claims weredropped, one for $50,000 and the other for$40,000, for pacers on Saturday.Need a loan? Try CHINA. Development ofthe Baha Mar Resort in the Bahamas has beenstalled in financing. After two years negotiatinglocally, and Baha Mar wound up yesterdayannouncing signing of a deal with Beijing’s Export-Importbank and contracts with China’sstate-owned construction corporation for $2.5billion financing for a huge entertainmentcomplex on Nassau’s Cable Beach.

HARNESS TRACKS OF AMERICAIt was a good day all around for Penn National.Stock analysts at Sterne Agee initiated a “Buy”rating with a target price of $35, while the Oppenheimerinvestment firm reiterated its “Outperform”rating but lowered its target price from$39 to $34. Online Vegas quoted Oppenheimeras saying, “Regarding Penn’s debt instruments,we revise our estimates and maintain positivethesis on the story. Consumer trends thus farappear to be affecting other industries more positivelythan regional gaming, although we expectgradual recovery during the year. Penn Nationalstock has ranged from $22.45 to $35.18 duringthe last year.JUDGE RULES FOR NY IGA New York Supreme Court juge hasruled the state Inspector General has theright to subpoena legislators.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, April 2, 2010A MAJOR EXCLUSION VICTORY The Senate argued that the inspector general hadThe West Virginia Supreme Court of Appeals overstepped his power in ordering the subpoenashas refused, by a unanimous 5-0 vote, to hear petitionsfrom the West Virginia Racing Commis-the Senate’s legal arguments “without merit,”of key legislators, but Judge Joan Lobis calledsion and from three horsepersons who have been saying the process of awarding the disgracedbarred from Penn National’s Charles Town Races& Slots. Earlier, Penn National had obtained ished fourth in balloting among the five finalistsAqueduct Entertainment Group -- which fin-an order from a circuit court barring the commissionfrom holding hearings on the exclusions. The Senate legal response read, “We are disap--- was not a legislative act, but an executive act.The circuit court had ruled that the racing commissionlacks authority to unilaterally reinstate that the inspector general’s office has limitedpointed the court did not agree with our positionan ejected permitholder over the objection of a statutory authority over executive agencies andracing association. Current West Virginia law departments, and does not have legal oversightis specific on the subject, saying, “Any person over the legislature. We intend to appeal so aejected by the stewards or the association from higher court can address the fundamental abilitythe grounds of an association shall be denied admissionto the grounds until permission for his der the separation of powers doctrine.” Anotherof the Senate to act as an independent body un-or he re-entry has been obtained from the associationand the racing commission. However, a projected cost of a million dollars a day? Andnine years of indecision and inaction ahead, atall occupational permit-holders who are ejected this in a state whose legislature for four straighthave the right of appeal to the racing commission.”The high court decision ends years of le-the statutory deadline, which was yesterday.years has been unable to agree on a budget bygal actions on the matter.DELEO’S SLOTS PLAN IN MASSRobert DeLeo, speaker of the MassachusettsHouse, unveiled his plan for gaming in the stateyesterday. It calls for 30,000 slots divided amongthe state’s four racetracks, and two resort casinoswith gaming. Here are the highlights:**2 casino licences selling for at least $100 millionand 4 racino license for at least $15 million;**state to receive 25% of casino revenue, 40% ofracino revenues, for total of $200 - $600 millionper year;**revenues to be directed to community colleges,tourism, schools and state rainy day fund;**five-member state gaming commission to beformed, with political imput, to select casinosites and regulate gaming**new attorney general bureau and state policeto oversee the operations.The governor and senate president opposeslots at tracks. Battle lines are formed.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, April 5, 2010MUDDY WATERS GET MUDDIERNew complications in New York state could createeven further delay in the nine-year-old circusof trying to select a winner of the Aqueductracino project. The state inspector general,Joseph Fisch, who is investigating the wholeprocess, says the “three-men-in-a-room” formulawhich made the now disgraced selectionraises “constitutional concerns about the constitutionalityof the entire scheme for selectinga VLT operator.” Fisch says the New Yorkconstitution expressly prohibits gambling unlessauthorized and prescribed by the legislature,and he says that means legally a majorityvote of both houses. Under an unprecedented“memorandum of understanding,” that processwas bypassed and did not require any subsequentvote by the entire legislature. Even then,Fisch says, there are legal issues. The memorandumof understanding, he says, names only oneSenate representative to help decide the matter,and that is temporary Senate President MalcolmSmith, himself under investigation. But publicdocuments show that the Senate side decisionwas made not by Smith but by Democratic conferenceleader John Sampson. That’s hard tosee, says the New York Post, “how the designationof any bidder -- not just the terminally taintedAEG -- could withstand a court challenge.” Ifthat were to materialize, the whole process mightreturn to square one.PRIVATIZE ILLINOIS LOTTERY?Ongoing discussions on privatizing a portion ofthe highly successful Illinois state lottery havereached a new stage. A New York consulting firm,Oliver Wyman, has been hired for $3.95 millionto assist the state in writing the bidding documents.Illinois, concerned about New York andother mishandled situations, is insisting ontransparency and openness in choosing aprivate managing company that wouldbe paid a percentage of increased profits.TIGHTER CHAIN OF CUSTODYA new chemical test developed in Pennsylvaniaand reported by bloodhorse.com from ForensicScience International: Genetics, the scientificjournal that published the report in its April issue,is likely to tighten the oft-disputed chain ofcustody in movement of blood and urine samples.The new test, the report says, “has highpower of discrimination and reproducibilitywith high accuracy and precision, and is the firstin the horseracing industry specifically designedfor racehorse identification and detection ofequine sample contamination by human DNA.”The test, called 24-plex STR for short tandemrepeats, utilizes pieces of genetic material whichare amplified and analyzed to confirm or excludea single blood or urine sample being from thehost horse tested. It was developed after workwith 171 trotters and pacers and 90 thoroughbreds,with the chance of extremely few falseidentifications.UNIQUE AUSSIE COOPERATIONIn a welcome step forward in regulative cooperation,two separate Australian state racing jurisdictions-- Harness Racing South Australia andHarness Racing Victoria -- have joined forces onintegrity issues. Stewards and vets from SouthAustralia joined with their counterparts fromVictoria to gather almost 80 blood and urinesamples from horses in to race before a $50,000feature. Officials of the two state agencies calledthe experiment “only the first of many collaborationsin the future.”KEENELAND’S 50-CENT PICK 3Keeneland’s high level thoroughbred meetingin Lexington, KY, just getting underway, is experimentingwith a 50-cent Pick 3. The trackalready offers 50-cent Pick 4 and trifecta bets,and a 10-cent superfecta. The experimentis worth watching.

HARNESS TRACKS OF AMERICAROSECROFT CHECKING OUTRosecroft Raceway, an original charter memberof Harness Tracks of America and one of HTA’sstalwart tracks during the Miller family regimeand afterwards under its successors, includingthe present horsemen owners Cloverleaf Enterprises,finally is giving up the good fight. UnlessMaryland legislative relief is forthcoming,Rosecroft will close its simulcasting doors, allthat is left of the once thriving track, on April19. Rosecroft in its glory days served as a feedertrack for Roosevelt and Yonkers Raceways, withBilly Haughton’s powerhouse stable and othertop harness horsemen using it as a base for gettingtheir 2-year-olds started. It opened in 1949under the guidance of W. E. Miller, and continuedunder his son John and grandson Bill, ultimatelybeing run by advertising executive EarlePalmer Brown, who became president of HTA in1978-9. Mark Vogel, one of the subsequent owners,was deeply involved again in trying to rescueand buy the operation, and yesterday’s closingrelease noted that Vogel remains the contractpurchaser of the track. The sale, however, wasvetoed by a bankruptcy judge, who denied Cloverleaf’smotion to sell substantially all of its assetsto Vogel. Yesterday, stripped of that possiblesale, Cloverleaf’s president Kelly Rogers notifiedits member horsemen and current 200 employeesthat the simulcasting operation would ceasein two weeks. He left the door slightly open, sayingCloverleaf “will be working with Mr. Vogelto structure and establish a traditional Chapter11 plan which satisfied the concerns of the bankruptcycourt and the unsecured creditors. Thiswill likely involve a greater investment on Mr.Vogel’s part, a commitment guaranteed by Mr.Vogel for Debtor in Possession financing so Rosecroftcan continue to operate, and will delay hisclosing on Rosecroft to become our newowner. Mr. Vogel will be in a financialposition to absorb the necessary losses toExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, April 6, 2010stabilize Rosecroft’s future if we can be successfulin our pursuit of legislation currently pendingbefore the Maryland legislature. While we aredisappointed with the court’s decision, we willrespect the legal process and move forward withplans to save Rosecroft. Mr. Vogel is committedto working with us and providing the necessarydollars needed for our survival if we can obtainsome help from the legislature.”GUESS WHO’LL BAIL OUT OTBA week or two ago, here in Executive Newsletter,while discussing New York City OTB’s financialproblems, we said any likely relief probablywould be unpopular with and punishing to NewYork tracks. Yesterday reports from Albanysaid the General Assembly was readying a rescueplan for the betting giant, which has announcedit will close at the end of this week without one.The plan reportedly includes downsizing of NY-COTB, and “trimming by 10% the payouts tothe state’s racing industry.”SLOTS PASS 1ST MASS. TESTIn what some characterized as a new speed record,House speaker Robert DeLeo’s bill callingfor slots at Massachusetts’ four tracks alongwith two casinos in the state zoomed past thelegislature’s Joint Committee on Economic Developmentand Emerging Technologies yesterdayby a 12-2 vote, with most Senate membersof the committee not voting. The bill now goesforward with a favorable recommendation.AROUND THE TRACKS.....In Kentucky, where horses have long been king,the best it seems the legislature can do for racingis again consider instant racing....At VernonDowns, gaming exec Scott Freeman has beennamed general manager......At the Meadowlands,the SBOA and track have reached agreementfor the stable area to be open year-round.

HARNESS TRACKS OF AMERICAFLORIDA, SEMINOLES SETTLEAfter bitter haggling and intense negotiations,the state of Florida and the Seminole Indiannation have reached a tentative billion dollaragreement that gives the Indians a victory andresults in a mixed bag for the state’s pari-mutueloperations. Gov. Charlie Crist, with the Houseand Senate’s chief negotiators standing at hisside, announced the accord yesterday which theSeminoles are expected to approve today and theFlorida legislature tomorrow. It is the third compactagreed to in five years, the first nullified bythe Florida Supreme Court and the second by theFlorida legislature. Both sides breathed deeplyafter the agreement was reached, the chairmanof the Seminole Tribe, Mitchell Cypress, saying,“It’s been a long journey. The governor has beenworking with us since 2007. I know they’ve attackedand thrown arrows at him, but I think everyonewill benefit as well as the Seminole tribe.”Rep. Bill Galvano, key legislative negotiator forstate, said, “At the end of the day, what wehave created is a good basis for movingforward and real equity.”Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, April 7, 2010PATERSON: I’LL PICK WINNER Under the terms of the agreement, the Seminolesget exclusive operation of blackjack, bac-Gov. David Paterson of New York, stung by criticismof the circus act in selecting the disgraced carat and chemin de fer at five of its seven casinos-- three in Broward County and two othersAqueduct Entertainment Group as winner ofthe Aqueduct racino project after it had finished in Immokalee and Tampa -- for five years, andfourth in the race, announced yesterday that he will pay Florida a billion dollars over that span.was taking over selection of a new winner, and The payments will be made with $150 millionit would simply be the highest bidder. Brushing the first two years, a minimum of $233 millionthe Senate and Assembly aside, Paterson said, in years three and four, and $234 million in year“With the new procurement plan, we think that five, or beginning in year three, pay 10% of itswe could have a winner within the month of June net revenue from the exclusive games, whicheverat the latest. Whoever is going to be the highest is greater. House and Senate legislators believebid, and assuming that they will provide all of the total from this compact, along with $287 milliondue in June from the 2007 agreement thatthe services, they will be the winner. If you letthree people act independently, it’s likely they’ll was nullified, will bring the state’s total to $1.5go on and on and on. In the end, decisions have billion. After the tribe operates the exotic gamesto be made by one person....you find that governmentacts a lot better that way.”a law allowing them to continue or close themfor five years, the legislature must either passdown.So what do the tracks get? First, lowering of thetax rate in Miami-Dade and Broward counties,which include Pompano Park, from 50% to 35%.Pompano Park is likely to move forward on itsplans to build a hotel on its expansive land.They also get longer poker card room hours andswitch from weekly to monthly tax paymentsand they get electronic bingo and instant racinggames. Lowering the license tax fee and the taxon the slots should reduce payments from $3.5million to $2.5 million.Both the state of Florida and the Seminole Tribehad a degree of urgency in reaching accord. Thestate needs cash, facing a $3.2 billion budget deficitas it resolves House and Senate differenceson budget proposals. The Seminoles had an incentiveto settle because their leading supporter,Gov. Crist, will be running for the Republicannomination for U.S. Senator after this year. Hesaid of the new compact, “This really bodeswell for the future of Florida.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, April 8, 2010REBID FOR AQUEDUCT RACINOTom Precious, the well-placed Albany reporterwho also writes for Blood-Horse, gave the magazinea jump on other sources this morning. Hereported that Gov. David Paterson and legislativeleaders have tentatively agreed to start overon the Aqueduct racino project, allowing newbidders to enter the competition and old ones toform partnerships. It will cost another millionup front to play, and a memorandum of understandingthat can’t be renegotiated, but you’ll getit back if you aren’t the winner. The minimumfranchise fee of $300 million still exists, payablein 10 days after selection, and the bids will bescored by an outside investment bank that willverify financial aspects of the bids and forwardthe scores to Gov. Paterson, who will have to acceptthat bidder as the winner. No add-ons orcommittee of three involved this time around,according to Precious.GLOWING REVIEW AT VERNONThe editorial board of New York’s state’s OneidaDispatch, which has covered developments of thelast decade at Vernon Downs, issued a highly favorableand optimistic report on the track today.“For too many years,” the editorial reads, “thisnewspaper was filled with reports of major problemsat Vernon Downs. The facility was in dangerousdisrepair and its finances under a stringof owners were even worse. The low point camewith bankruptcy in 2004 and in 2005 the harnessracing track never opened. But those dark daysare over. Today, stories about Vernon Downs aregood news. Under the management of AmericanRacing & Entertainment -- and with morethan a little help from its racino -- the track hasbeen spruced up and placed on sound financialfooting. Every year more events are added withthe goal of drawing more people, especiallyfamilies.” It went on in similar vein, atribute to top man Jeff Gural, who wasvilified by horsemen just a few years ago.OTB BAILOUT NEWS IN NYNo one, including Executive News, needed to bea seer when a bailout for HTA associate memberNew York City Off-Track Betting Corporationwas discussed in Albany a few weeks ago.It was clear then where the legislature woulddrop the hammer -- on New York tracks -- anda story today by Paul Post in Saratoga Springs’Saratogian and another in LoHud.com providesconfirmation. Post outlines Albany’s solution, asproposed by John Van Lindt, executive vice presidentand chief operating officer of NYCOTB,who chaired the state Task Force on the Futureof Off Track Betting. His report recommendedthat OTB should not have to make “hold harmless”payments; should not pay a night-timethoroughbred tax for carrying out-of-state thoroughbredraces; and should not have to makedark-day payments for airing out-of-state thoroughbredraces when NYRA and Finger Lakesaren’t running.LoHud.com, which stands for Lower Hudson,its coverage area, spelled out what that wouldmean to two tracks in its circulation area. TheVan Lindt committee plan would create as highas a $28 million loss to Yonkers Raceway, and a$2 million loss at Monticello Raceway, accordingto the news service.Two years ago Albany approved an increase inthe monies harness tracks received from VLTs.Don Groth, the always loquacious president ofCatskill OTB, said, “That was a mistake. It’sOTB’s job to save racing, but no one’s trying tosave OTB.” If the legislature is to act now onthe bailout, it will have to be today. It returnedyesterday from its Easter-Passover recess, workstoday, and will not be in session tomorrow orSaturday. NYCOTB is scheduled to shut downoperations Sunday. Van Lindt says he thinks itwill stay open if it gets assurances of a bailoutdeal likely to be passed next week.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, April 9, 2010WYNN PULLS OUT IN PHILLYAfter announcing highly heralded plans for “thecutest casino ever,” and showing fancy coloredrenderings of the place to the mayor of Philadelphiaand the city’s Gaming Control Boardin a happy meeting last Monday, Steve Wynn’sWynn Resorts announced yesterday it was abandoningthe project. In a terse and brief release,Wynn was quoted as saying, “We are fascinatedby the legalization of full gaming in Pennsylvaniaand stimulated by the opportunity it presentsfor Wynn Resorts. This particular project didnot, in the end, present an opportunity that wasappropriate for our company.” The astonishedmayor of Philadelphia, Michael Nutter, said,“This is a stunning turn of events. I’ve neverseen anything like this before.”The Mashantucket Pequot Tribal Nation, ownersof Foxwoods in Connecticut and principals alongwith three local investors in the long-simmeringand highly controversial Foxwoods waterfrontcasino, were equally startled. They had rejoicedin February when Wynn signed a letter of intentwith them to take over the stricken project anddevelop a uniquely designed gambling boutique,and yesterday the attorney for the local investorsfound out about Wynn’s withdrawal when everyoneelse did, when the press release was distributedby the Associated Press. His reaction:“We are shocked and amazed. We’re trying tofind out what is behind it and if anything can bedone about it.”Wynn, in a fourth quarter conference call lastmonth, had outlined the $600 million project,saying it would have 3,000 slots, table games, andseveral dining options. He also said at the timethere would be no hotel built with it. The PhiladelphiaDaily News said Wynn’s whirlwind withdrawal“could spell the end for the statecasino license for a weed-strewn, 16-acrelot on the banks of the Delaware River.”A BLOW FOR RUNNING ACESThere is no indication it will pass, but a proposalput forth by a former Senator, now turned lobbyistin Minnesota could deeply impact HTAmember Running Aces. The lobbyist, Dick Day,is proposing the legislature allow slots at onlyone track -- Canterbury Downs -- rather thanboth in the state, and earmark 40% of the revenueto the state for construction of a new MinnesotaVikings stadium. Day announced the planon the same day a House committee defeated anattempt to amend another bill to include racinos.The Duluth News Tribune said racino legislation“is stalled in both legislative chambers, but Daysaid the new plan is ready to be offered as anamendment when the right bill comes along.”He offered as justification appeasement of theNorthern Indian tribes, which he says have complainedabout Running Aces’ competition withtheir gaming operations, but claimed southernMinnesota Indian casinos would not be affectedby Canterbury Downs, which has a big Indiancasino -- Mystic Lake -- just down the road. Thatrationalization was not bought by the News Tribune,which noted that there was no assurancethat the Day proposal would change oppositionthat has blocked racino proposals from advancingfor years.NEW TABLE GAMES IN PAHTA member Mohegan Sun at Pocono Downs alreadyis moving ahead rapidly with constructionof its facility for the addition of 83 table games inlate spring or summer, and with it nearly 600 newjob opportunities, but it picked up new competitionthis week with state approval of three newtable game expansions in its market area. Thenewly approved sites are the nearby Mount AiryCasino Resort, Sands Casino Resort serving inthe tri-city area of Bethlehem, Allentown andEaston, and Penn National’s HollywoodCasino at its track near Harrisburg.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, April 12, 2010LOOKS GOOD FOR PLAINRIDGEIf the Massachusetts press has it right, things arelooking good for HTA’s Plainridge Racecourse.The Attleboro Sun Chronicle heads its slot storythis morning, “Slots at tracks sure bet,” and thelead of the story reads, “If slot machines wererace horses they’d be rounding the far turn andheading for home. There’s really no questionthat slot machines are coming to Massachusetts,almost certainly including Plainville.” The paperwent on to call House Speaker Robert DeLeo“the most powerful man in Massachusetts,” andsays Gov. Deval Patrick, who opposes the slotsat tracks idea, will go along “because he’s got todeal with DeLeo on bigger things like the budgetand taxes.” The story says there will be debateover just how many slot machines go where,and perhaps how many casinos will be built, butthat’s about all.The Worcester Telegram & Gazette says DeLeohas scheduled a debate in the House to begin tomorrowon the bill and its 216 proposed amendments,and a vote is expected as early as Thursdayof this week. The 172-page DeLeo bill wasfiled 10 days ago and the newspaper says Gov.Patrick and other opponents “have been frustratedby the fast track push” behind the measure.Former opponents in the House have beenswitching to support the bill, and one of them-- Rep. Vincent Pedone -- said, “I’m flipping,”noting that economic times and shift in gamblingavailability were among the reasons. Anotherlegislator, James J. O’Day, said, “I don’t thinkwe can turn up our nose at the number of jobs itis going to generate,” adding that with so manyjobless in the state many lawmakers were takinga different stance this time around. The bill as itstands would tax track slots at 40%, comparedto neighboring Connecticut’s 25%, but afterthree days of debate and with those216 amendments who knows what willemerge? Possibly Robert DeLeo for one.WEEK REPRIEVE FOR NYCOTBSurprise, surprise. HTA associate member NewYork City OTB, scheduled to close yesterday,was given a week’s fresh lease on life in NewYork. You know how Albany works. Do nothingon time. Drag things out. Talk and talk somemore. The New York tabloids know the story,with the Daily News, or was it the Post?, callingthe legislators “buffoons” in a headline. Littledifference. In any event, the OTB board decidedto stay open to give the guys in Albany a chanceto chortle, and then relent, including a 15% cutin track revenue from OTB as their solution tosaving it.FRANK HEARING ON FRIDAYCongressman Barney Frank has scheduled aFriday committee hearing on his two onlinegambling bills, the Reasonable Prudence in RegulationAct and the Internet Gambling RegulationConsumer Protection and Enforcement Act.Both seek to kill the Unlawful Internet GamingEnforcement Act -- UIGEA -- currently under apass until July 1. A second extension is possible.AROUND AND ABOUT.....Some very good news. Expect a major announcementfrom New York Times and ESPNwriter BILL FINLEY this week....HTA’s VER-NON DOWNS conducts a double draw tomorrowfor Friday’s and Saturday’s season openingweekend. Vernon has big plans for an $8 millionexpansion, including addition of more than 7,000square feet of space on its restaurant, conventionand events center, and indoor simulcast area....The New England Chapter of harness writershonors author ROBERT TEMPLE tomorrow.It’s his 66th birthday, and his new book, The Historyof New England Harness Racing, is due outthis month....MOHEGAN SUN AT POCONO isflying. Slots revenue up 19% from 2008 to 2009,and up from $17 million to $19.8 from Februaryto March this year.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, April 13, 2010MASS SLOTS BILL MOVES ONThat’s the word from Boston, where HouseSpeaker Robert DeLeo’s bill calling for slots atMassachusetts tracks and two casinos was approvedby a quick voice vote and moved forwardon Tuesday morning. DeLeo let deputiesknow last evening that he had 104 commitmentsfor his measure, and only two more would givethe bill the 106 that would the needed two-thirdsmajority to be bulletproof. As of now there were216 amendments to consider, and DeLeo has, accordingto press reports, decided to group largebatches of them into at least four categories.They are: siting, revenues, licensing and regulation.Individual amendments on those topicsconsidered in a bill formulation process hailedby supporters as efficient and criticized by opponentsas secretive, according to the State HouseNews Service. The bill as proposed calls for 750at Plainridge, Suffolk Downs, and two formerdog tracks, with that live sport now barred inMassachusetts. House passage still faces stiffopposition from Gov. Deval Patrick and SenatePresident Therese Murray, but if the Senate approvesDeLeo insists he now has veto-proof supportin the House.THE WILD WEST STILL LIVESAt least in Arizona. Citizens shuddered thisweek as the legislature approved concealedweapons for all, and now it has given preliminaryapproval to legislation that would enablethe Phoenix suburb of Glendale to halt constructionof an Indian casino by annexing tribal landwithout the tribe’s consent. An earlier attemptwas thwarted by one of the few clear thinkersin the legislature, Senate President Bob Burns,who stopped it in his chamber, saying the stateshould not wade into the issue. If this passes,it faces what one legislator called “consti- tutionalinfirmities,” not recognized west ofthe Pecos.CONCERN ON ONTARIO SLOTSDavid Briggs, the very bright light who edits theCanadian Sportsman magazine, has raised seriousconcerns about the future of slots at Ontariotracks. In a current piece, he writes that “themost vital program in Canadian horse racing isin limbo, and no one seems to be talking publiclyabout it. Worse, there’s growing concern it’s notgetting much attention privately, either.” Briggsnotes that long-term contracts, or site holdersagreements, have expired at six Ontario tracks,with contracts at three more set to expire beforethe end of the year. The agreements were basically10-year deals with the Ontario Lottery andGaming Corporation (OLG) and each began theday the track opened its slots facility. That means,by Briggs’ count, that time has elapsed on facilitiesat HTA member Western Fair Raceway, andat Fort Erie, Hiawatha Horse Park, Rideau Carleton,Sudbury Downs, and Windsor Raceway.All six, he says, are operating with short-termrollover contracts. Briggs says the horse industryin Ontario has been mindful of the problem,and working on it. A subcommittee of the OntarioHorse Racing Industry Association headedby Jim Bullock and buoyed by OHRIA executivedirector Hector Clouthier has been quietly lobbyingkey politicians, letting them know that theracing industry and its slots have put $1 billionin government coffers, and pointing out that itis one of the very few industries not asking formore, but for maintenance of the status quo. TheOLG answered eight Briggs inquiries by tellinghim the matter is “under review.” The situationwas not helped yesterday -- or perhaps was if heis successful -- when Clouthier announced he isresigning his OHRIA post June 1 to return to thepolitical wars. A former member of Parliament,he will run again. If elected Ontario racing willbe able to breathe a bit easier. Good luck Hec,in the campaign and in your third Bostonmarathon run, at 60, on Monday.

HARNESS TRACKS OF AMERICAOCEAN DATES TO ROSECROFT?In a Maryland Racing Commission meeting yesterdayin which only harness racing foe JohnFranzone dissented, the commission approved,5-1, extending Rosecroft Raceway’s operating licensethrough July 1. Sharon Roberts, executivedirector of the track’s horsemen-owned parent,Cloverleaf Standardbred Owners Association,issued a joyful release headed “We live to fightanother day.” The commission decision cameafter former and hopefully future owner MarkVogel pledged another $350,000, and Cloverleafadded $150,000, to assure the commission thetrack could operate until the first of July. Theloans are subject to approval by a bankruptcyjudge, who earlier disallowed a Vogel offer to buythe track. Cloverleaf president Kelly Rogers, intelling commissioners Vogel still was pursuingpurchase of Rosecroft, also said that if the trackcould reach an agreement with Ocean Downsowner William Rickman Jr., it hoped to runOcean Downs’ 2010 dates at Rosecroft. Cloverleaf’sattempt in the legislature to get poker diedwhen, after the Senate approved, the GeneralAssembly session ended Monday night withoutthe House taking action. Commissioner Franzone,in voting no to the July 1 extension, claimedthe request was “not about harness racing, butabout an entity that’s trying to get extendedgaming.” His comments completely ignored theeconomic contributions of the track to the localand state economy, and the welfare of employeesand horsemen whose livelihoods depend on thecontinuation of racing at Rosecroft. Cloverleaf,which also had sought a separate harness racingcommission, which Maryland does not have, employsmore than 200. Cloverleaf’s accountant,Street Baldwin, was questioned about financesfor more than an hour, and president Rogerssaid Cloverleaf had spent some $900,000in legal fees defending itself against theMaryland Jockey Club and others.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, April 14, 2010In an ironic twist, the Jockey Club is now runby Tom Chuckas, the former president of Rosecroft.The thoroughbreds were successful in gettingtransmission of their signals to Rosecroftstopped last April, a move that Cloverleaf accountantStreet Baldwin said had a “severe impact”on Rosecroft, which had continued to takeharness and quarter-horse simulcast bets thatwould have ended today without the extension.IN OTHER NEWS.....Massachusetts House Speaker ROBERT DELEOopened the third day of debate on his slots-attracksbill today, seemingly assured of passagewith a veto-proof vote....NEW YORK REPUB-LICAN LEGISLATORS floated an alternativeplan for the Aqueduct racino project, callingfor the state controller to recommend one of the“big 4” accounting firms to vet bidders for theracino....GOV. DAVID PATERSON, meanwhile,was to offer legislation today to bail out NewYork City OTB. The plan reportedly calls for a15% reduction in OTB payments to tracks, shuttinga number of facilities, and cutting OTB’sstaff and payroll by 50%....Former HTA directorJOE LASHINGER JR., the man largely responsiblefor the creation of Chester Casino andRacetrack, has resurfaced, this time with PennNational Gaming providing financing for a resorthotel-casino near the Gettysburg nationalbattleground. The operation would be known asMason-Dixon Resort and Casino, would developa 300-room hotel, and host up to 600 slots andup to 50 table games and a 20,000-square-footconvention center....After HARRAH’S ENTER-TAINMENT announced it planned to issue $500million in second priority secured loans due in2018, Moody’s Investors Service posted a “negative”rating toward Harrah’s long-term debt,saying declines in gaming play “will negativelyimpact the company’s operating performancein 2010.” Harrah’s has total debt of some$20 billion, Las Vegas sources say.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, April 15, 2010NY OTB AID PLAN COLLAPSESDon’t bet that it won’t be revived next Monday,when the well-rested New York legislators returnfrom their long weekend recess, but as of rightnow help for desperate New York City OTB isgone, with the old story of disparate intereststrying to get a legislature to deal with all theirrequests and demands. Assistance fell apart yesterdaywhen labor unions objected to severancepayment arrangements, tracks objected to a 15%cut in OTB proceeds, and the boys in Albany simplythrew up their hands and went home. NYCOTB, which was scheduled to shut down last Sunday,now is due to shut down this coming Sunday,but could delay that a day in the hope thatsome compromises might have been arranged inthe down time in Albany between now and then.Some legislators balked at the retirement benefitspromised by NYC OTB, which they said aren’trealistic given the company’s financial problems;others with tracks in their districts said no to the15% cuts; and the governor said he was “deeplysaddened” that the legislature’s reluctance to accepthis plan for OTB would lead to unemploymentfor NYC OTB’s 1,300 employees. In anexcellent summary of what the bailout plan actuallyconsisted of, Rick Karlin of the Albany TimesUnion provided an outline of the major points.They include:A 15% cut to tracks for a year, worth $1 million,and 75% cut to New York City and the five boroughsfor a year, provided a positive cash flow isshown by NYC OTB within 60 days or that provisionwill be lost;Allowing NYC OTB, instead of the state, to keepunclaimed ticket money for a year;Allowing 1 year of Internet streaming of races forany OTB;No requirement to pay the tens of millions owedto tracks and others by NYC OTB;An $18 million loan to pay for early retirementincentives;Allowing joint ventures for OTBs, tracks;Eliminating the memorandum of understandingbetween unions and NYC OTB.DELEO SLOTS BILL SAILS THRUThe power and popularity of Robert DeLeo,Speaker of the Massachusetts House, and thestate’s urgent need for money, was made evenmore apparent yesterday, when his proposal forslots at state tracks along with approval of twocasinos breezed thru by a veto-proof vote of 120-to-37. An ecstatic DeLeo told a packed Housechamber, “We all did ourselves very proud. Ithink what we can say is that we are the envy ofevery other state in the country.” DeLeo’s pointman on the legislation, Rep. Brian Dempsey, saidthe bill will create more than 15,000 jobs andbring the state $100 million a year, and said thepositive impact of the bill will clearly outweighthe negatives raised by opponents. The measurenow goes to the Senate, where it faces a toughervote, particularly on the slots portion of the bill.NH BILL WILL BAN DOG RACINGThe New Hampshire Senate has voted to banlive dog racing in the state, following the actionof the legislature in neighboring Massachusetts.Proponents noted that the two remaining dogtracks in New Hampshire, Seabrook and Belmont,no longer offer live racing, surviving onsimulcasting, and banning the sport will save thestate regulatory expenses. Opponents arguedthat the tracks, not the state, should decide onthe prudence of racing. HB360 now moves backto the New Hampshire House.$65 MILLION HIT AT MIGHTY MA New York Supreme Court judge has ruled thatMonticello Raceway must pay its bondholders$65 million. The track had gone to court hopingto escape meeting the calls, triggered whenPlainfield Asset Management, a lead investor,called in $22.5 million of the notes of the track’sowners, Empire Resorts. Former Empire CEOJoseph Bernstein says the track “should be fine”with the backing of 50% owner Kien Huat,a Malaysian casino giant.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, April 16, 2010FLORIDA MOVES, NY STALLSWith little debate, the Florida Senate has approved,29-9, the billion dollar agreement withthe Seminole Tribe, and sent the measure to theHouse for discussion and a vote next week. GovernorCharlie Crist, who helped fashion the accord,is certain to sign it, having worked hard onthe agreement for three years. The Seminolesguarantee the state a minimum of one billion inrevenues in the next five years, in return for slotsat its seven casinos, and blackjack and two othercard games in Broward County and Tampa andImmokalee. Roulette and craps are banned underthe agreement. With quick passage virtuallyassured in the House, the law could produce$435 million for Florida in its budget this year.In sharp contrast to the swift action in Florida,paralyzed legislators in New York, where a racinoat Aqueduct has languished for nine years,are due to return from a long weekend on Mondayto consider help for New York City OTB,scheduled to cease operations Sunday. AlthoughGov. David Paterson and the press have pronouncedRest in Peace wishes for the OTB, nowstate-owned, skeptics doubt the legislature willlet it die.INTERESTING FRENCH NEWSPari Mutuel Urbain, Europe’s largest betting organizationwith 10,400 betting shops in France,loses its monopoly in June, when other licensedoperators get underway, but PMU is not curlingup and quitting. To the contrary, it is launchinga new program next month with the issuance ofa plastic card that will allow holders to gamblein any format they wish -- cafes, Internet, mobilephones, you name it -- with funds automaticallytransferred from their accounts. It also is exploringfixed odds betting and online poker.For further details, read this week’sTrack Topics.A VERY GOOD PROMOTIONHTA member Plainridge Racecourse and theHarness Racing Museum again have linked up,for the eighth or ninth year, in a dual promotion.On April 27 Plainridge will offer three fans, chosenby raffle drawing, bets of $4,000, $1,500 and$500 on the Kentucky Derby. The Museum willsell tickets for $1 each to participate in the drawingand you do not have to be present to win.Plainridge will assign a representative to placeyour bets if you are one of the lucky three drawn.The Museum picked up $4,000 for its educationalprogramming last year. More details in thisweek’s HTA Promo News.DRUG OFFENSES GO PUBLICIn a significant move toward greater transparencyin racing, the Racing Medication and TestingConsortium (RMTC) has announced the formationof a database on drug-related rulings, withpublic revelation of the offenses, and explanationsof what they mean, on its Web site. RMTCexecutive director Dr. Scot Waterman said of thedevelopment, “To our knowledge, this is the onlydatabase in existence that allows viewers to seenot only the infractions but also a description ofthe possible uses and effects of the drug in thehorse. We hope that this will begin the processof better clarifying the difference between medicationmanagement mistakes and more seriousdrug violations.” Tracks might avail themselvesof local violations and publication in past performanceprograms as a service to their patrons.In other medication news, Dr. Rick Sams of theUniversity of Florida Racing Laboratory announceda joint project with four other testing facilitieson threshold and withdrawal times for 13medications often used by practicing veterinariansin treating race horses which will be publishedwithin the next three or four months. A study of2,000 frozen drug samples also is underwayat the University of California-Davis.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, April 19, 2010NYCOTB AND “MARKET RATES”Sandy Frucher, the man who cried wolf, hassaved his flock once again. He announced overthe weekend that Albany had agreed to an “interimplan” which would enable him to keep NewYork City OTB open and alive for another yearafter twice announcing its closure. He says NYCOTB will be smaller, trimmer, and “paying marketrates to tracks for their races.” He didn’t announcewhat market rates were, saying, “I can’tquantify at this point the amount of pain we’llbe inflicting on the racing industry. There willbe pain.” Frucher said NYC OTB would be halfthe size it was within a year, with half of its 1,300workforce laid off and dozens of its betting shopsclosed. Reports from Albany said the proposed15% cuts in payments to tracks would not bepart of the solution, but as to monies NYC OTBowes to tracks nationwide, including millionsto Yonkers and NYRA in New York, prospectswere dim. “You can’t pay what you don’t have,”Frucher said. He reportedly will close up to 40of OTB’s 60 or so betting shops, replacing themwith some 1,500 “KwikBet” Internet wageringterminals in sports bars, following a model alreadyin use in Capital, Suffolk and Nassau OTBoperations. Frucher announced his new planson Saturday, when his board voted to continueoperations for a year after a three-way agreementwas reported from Albany involving Senateand Assembly leaders and Gov. David Paterson.That agreement had not been officially voted onin the legislature as of this morning, but seemssure of passage. The Derby, Belmont Stakes andSaratoga meetings lie ahead, three events thatare among the most profitable for OTBs. Fruchersaid closure would have a “profound negativeeffect” on racing. Gov. Paterson’s office said he“supports Sandy Frucher’s efforts to keep NewYork City OTB open and will continue towork with him to come up with a longtermsolution to this problem.”NH GOV: “I’LL VETO SLOTS”If the New Hampshire House votes to agree witha Senate bill to allow video slots at six sites in thestate, Gov. John Lynch says he will veto the measure.Lynch said he would kill the legislaturewhether it offered six sites or five, as the Housesuggests. There still is hope for HTA memberRockingham, however, for Lynch says he wantsto review a report, due next month, of a gamblingcommission he appointed last year. Beyondthat, negotiations lie ahead on how to closea $220 million budget gap, an issue that needsaction by July, and the issue of video gamblingcould be revived.In nearby Rhode Island, meanwhile, the ProvidenceJournal reports that House Speaker GordonFox has put an upcoming Senate vote ontrack slots and two casinos in neighboring Massachusetts“high on his priority list.” The MassachusettsHouse gave quick approval there toboth. A Rhode Island House bill already hasbeen introduced that would allow voters to decideon allowing casino gambling at Rhode Island’stwo slots parlors.AROUND AND ABOUT......Despite rain, HTA member VERNON DOWNSopened its 57th year of racing Friday night with3,200 on hand, a good crowd for the Jeff Guraloperatedtrack in upstate New York....WOOD-BINE ENTERTAINMENT has added videofeatures and on-demand videos to its Web siteinventory, with Trevor Ritchie, Paul MacDonelland Mario Baillargeon among the early interviewees....PopularYVON GIGUERE has departedMontreal and now is mutuel manager at GrandRiver Raceway in Elora, Ontario.... harnessracing.comreports that Point Blank Solutions, theformer DAVID BROOKS company that madebody armor for the US army, has filed for bankruptcyin the face of monthly legal fees of$600,000 in Brooks’ fraud case.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, April 20, 2010$600 MILLION OFFER AT BIG MThat’s what a group headed by former Harrah’sAtlantic City chief executive David Hanlonthinks slots at the Meadowlands are worth, andfor another $100 million they’ll take over operationof the track. The offer was sent to Gov.Chris Christie, who turned it over to his pointman, former New Jersey Exposition Authoritychairman Jon Hanson, to evaluate. The bidders,a group called Global Enterprises Meadowlands,is offering the $600 million to install 5,000slots at the track, and according to the BergenRecord, which has a copy of the bid, GEM alsoenvisions a freestanding, 300,000 square foot racinoadjacent to the track to house the machines.Global would pay $500 million by June 30, 2011,the end of the next budget year, if the VLTs wereinstalled by then. The group projects the statewould receive $350 million in the first year fromthe slots from a 40% cut of gross revenue.There are, of course, serious roadblocks, primarilythe powerful Atlantic City casino lobby thatso far has been able to forestall any discussionof slots outside of those at the glittering casinosthat front the grimy beach resort city. Anotheris the boastful challenge of state Senate presidentStephen Sweeney, who has publicly announcedthat no bill expanding gaming anywhere else butAtlantic City will be considered by the Senate aslong as he is president. And a statewide referendummost likely would be needed. The Globalgroup sweeps away those problems by saying thetime is right for slots at the track, and that thestate faces not only a money crunch but figuringout a way to save the racing industry. Sofar Gov. Christie has expressed more concernabout saving the casinos. Global talks about1,000 jobs, a hotel -- although Xanadu developerColony Capital has first nibs on that -- andestablishing two charitable foundations.It says slots could be open 8 months afterapproval.HORSEMEN PUMMEL NYCOTBTwo thoroughbred horsemen’s groups -- theNew York Thoroughbred Breeders and the NewYork Thoroughbred Horsemen’s Association --have accused the New York City Off-Track BettingCorporation of keeping two sets of books,and have asked for the resignation of NYCOTBchairman Sandy Frucher. The horsemen, angeredby Frucher’s promise of “pain” to the industry,have lashed out at what they call “a webof deceit and lies” and say NYCOTB “is engagedin a cynical and we believe illegal strategy.” RayCasey, president of the HTA associate member,responded that NYCOTB has been “completelytransparent,” and David Vermillion, an OTBspokesman, called the charges “a silly diatribefrom racing industry shareholders whose solestated purpose is to put NYCOTB employees outof work and who have refused to come to the tableto negotiate with all stakeholders over a longterm plan for the industry.” An anonymous respondent,replying in a comment to the AlbanyTimes Union story, said in a letter addressed to“You horsey folks,” that Frucher had addressedthe charges in detail on a talk show today, to berebroadcast tonight at 6 p.m. Eastern time on1300 AM and offered “to open his books to anyone,including you, and would welcome the sameoffer from your organizations.”“WHIPS GONE IN 5 YEARS”In an interesting prediction for European racing,with overtones for North America, the influentialFrench racing leader Louis Romanettold a panel on animal welfare that televisionof racing will force the abandonment of whipswithin five years. Romanet said, “It won’t happentomorrow, but the influence of better qualitytelevision on public perception” will force racingregulators to outlaw whips except for correctivesafety purposes. He likened the process togradual education on medication rules.

HARNESS TRACKS OF AMERICABRUNO PALS IN BIG TROUBLETimothy McGinn and David Smith, whoseMcGinn Smith & Co. investment firm in Albany,NY, was one of the first to hire disgraced politicalleader Joe Bruno as a “consultant,” now is indeep trouble of its own. The Securities and ExchangeCommission has obtained a court orderto freeze the assets of the company and its owners“to halt a fraudulent scheme” in which the firmsold $89 million in unregistered securities andfalsified information in raising some $120 millionfrom investors which it knew it could neverrepay. The SEC said “the full extent of the fraudis not yet known” but it appears that investorsare owed at least $80 million on the 25 or moreofferings of unregistered securities. The chargesinclude use of some of the money for “a sexuallythemed cruise” with hired strippers, and filingfraudulent documents.HERE COMES CHINAThe Meydan Group, developers of the world’sbiggest racing complex in Dubai, now haveturned their attention to China, announcing a10-year plan to build a “horse city,” with a spectacularlydesigned track, international equestriancollege, horse breeding center, auctionbase, animal feed factory, and luxury hotel. Thecompany says it has been invited to develop thecomplex by the Chinese government, newly interestedin becoming a major international racingpower. China, which legalized horse racingonly two years ago, hopes to emulate the successof Dubai, which in 18 years went from no racingto hosting the world’s richest horse race, the $10million Dubai World Cup. Work is scheduledto begin next month on the 660-acre equestriancollege, stud farm and feed factory, with completionexpected by the end of next year, with thefirst 1,000 students to be enrolled in 2012.A second “horse city” with a stud farmbreeding 1,000 horses a year, is plannedExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, April 21, 2010in the mainland city of Wuhan, which sent representativesto Kentucky last year to gain expertise.A 3,600-bed hotel is planned there by theOrient Lucky Horse Corporation, which expectsto sell 700 horses at its new auction center.In still another indication of the rise of gamblingin the Pacific Rim, Las Vegas entrepreneurSteve Wynn said he is considering moving theheadquarters of his huge Wynn Resorts gamingempire from Las Vegas to Macau, calling thatcountry the future resort capital of world gaming.Wynn announced that he is building a thirdhotel in the region, where his first property producedhalf of Wynn Resorts’ income last year.PREWITT GETS KHHA JOBGabe Prewitt, the 27-year-old go-getting announcer,publicity man and successful harnesshorse owner who works for the Red Mile andThoroughbred Times advertising, has toppeda list of 14 candidates for the job of ExecutiveSecretary of the Kentucky Harness Horsemen’sAssociation. Among his plans: contacting eachmember of the association and “listening to anyonewith any concerns and try to address theirneeds.”LUCKY JIM TO ELITLOPP?The American trotting king Lucky Jim has receivedthe first invitation from the managementof Stockholm’s Solvalla track to its May 30 internationalclassic Elitlopp, or Elite championshiprace. Should his owners accept, and with PeterKleinhans’ and Jerry Silva’s Enough Talk headedfor a European campaign and likely Elitloppinvitation, the U.S. will have its strongest entryin years in the rich Swedish invitational. Sixteenof the world’s best trotters are invited, and pastAmerican winners have included the great mareFresh Yankee and Mack Lobell.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, April 22, 2010NH HOUSE KILLS SLOT BILLThe New Hampshire House has killed the slotsat-tracksbill by a vote of 212 to 158, and didnot even consider an alternative measure. StateSenator Lou D’Allesandro, chairman of the SenateFinance Committee, who sponsored the billand has been a longtime proponent of slots attracks, said the issue still has life, “for the simplereason that there are people unemployed.” Thechairman of the Granite State Coalition AgainstExpanded Gambling, former state Senator JimRubens, acknowledged the fight “by no meansis over, but we’re very pleased by the margin.”The issue is not dead for the current session,because the House still must vote on its budgetcuttingbill next month, and then must negotiatewith the Senate on a compromise decision. Thebill that was defeated yesterday called for up to17,000 video slots at three tracks, including HTAmember Rockingham Park, and at a golf resortand two other undesignated sites. Governor JohnLynch, who promised a veto of the D’Allesandrobill and the alternative that would have reducedthe site to five locations and stipulated a 10,000maximum but was not considered, has not closedthe door entirely. He says he would first review areport he ordered, due next month. An ad showingMassachusetts governor Deval Patrick smiling,with the caption “Thank You New Hampshire”signifying Massachusetts benefitting fromthe negative New Hampshire vote, was run byFix It Now, a coalition supporting the measurekilled by the House.In another action yesterday, a hotly disputedbill to legalize, tax and regulate electronic bingoin Alabama was withdrawn by its House sponsor,who admitted he did not have the 63 votesneeded to pass the measure. It had passed theSenate and called for a public referendum,but was seven or eight votes short of passage.The Alabama governor, Bob Riley,strongly opposed the measure.BIG M SLOT PUSH URGEDThree New Jersey legislators -- state SenatorJennifer Beck, Assemblyman Declan O’Scanlonand Assemblywoman Caroline Casagrande --have urged the New Jersey Sports and ExpositionAuthority to seek proposals for slots, in viewof the $600 million offer from a group of casinoexecutives. Beck says the offer indicates primeinterest in the Meadowlands as a profitable enterprisewith slots, and says the Authority shouldpursue other offers. Casagrande said, “We areat the point where we need to look at all alternatives,but we won’t know what all the alternativesare if we accept the first offer to comealong.” She noted there has been much talk, butthe offer from Global Enterprises Meadowlands,led by David Hanlon, former chief executive ofHarrah’s Atlantic City operations, was the firstconcrete offer made. She called it “vital” that anopen bidding process get underway to see whatother offers might be out there.JOB OPENING AT TIOGATioga Downs has an immediate opening for acombined assistant racing secretary and charterand is reviewing applications. The job is seasonal-- May 1 thru mid-September -- and interestedapplicants should contact director of racing JasonBluhm at 607-372-1693, or e-mail jbluhm@tiogadowns.com for further details.PENN NATIONAL GETS AWARDPenn National Gaming has received the 2010Governor’s Award for Environmental Excellence,presented by the Pennsylvania Departmentof Environmental Protection. The gaming giantwas honored for its commitment to the local environmentsurrounding its Hollywood Casino atits home Penn National Racecourse, in which astate-of-the-art wastewater treatment plant wasinstalled to mitigate the impact of wastewaterand provide reuse in track operations.

HARNESS TRACKS OF AMERICAIn Ohio, the state racing commission, which hadasked tracks to resolve dates issues early, stillhas five of Ohio’s seven tracks without applicationsapproved. They are concerned about whatcommissioner Thomas Zaino called, “November,November, November,” which is when slots willbe voted on in the state, and which some commissionersexpect -- not unreasonably -- is theprime interest of tracks, including Penn National,buying more tracks in Ohio. Penn Nationalis in the process of buying Beulah Park near SciotoDowns in Columbus. Zaino expressed thecommission’s concern when he said, “We are ahorse racing commission, not a gaming commission.We are not the lottery. How is this goingto help horse racing if November goes badly?”Penn National vice president Chris McErleananswered Zaino by telling him and the othercommissioners, “This acquisition, it is a gamble.But as you see with Raceway Park (which PennNational bought in Toledo) we have stuck withOhio racing. We will be frank. Raceway Parkloses money -- a substantial amount of money.However, we have continued to invest in Racewayand continued racing operations. Hopefully,this company has the resources to withstandthese losses.” McErlean said Penn National’splans could not be completed without knowingthe results of the November election, but hewould not say the elections would make orbreak the deal for Beulah Park, accordingto a story on the Ohio hearing by BrianKraft in Blood-Horse.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, April 23, 2010PENN NAT’L IS EVERYWHERE Kraft called the November election “theIt doesn’t matter where you turn these days, 800-pound gorilla” in the hearing, along withyou’re likely to find Penn National Gaming there four Penn National representatives. One of them,ahead of you. They turned up earlier this week Thomas Auriemma, said bluntly, “The answer isfor a stiff questioning session before the Ohio no,” when asked if Penn National was buyingRacing Commission, and yesterday they showed Beulah with the intention of shutting it down toup in a hearing in Maryland as possible operatorsof the Laurel Park thoroughbred meeting bus casino in the works. In another story in theeliminate competition with its full-scale Colum-for Magna.magazine, written by Tom LaMarra, commissionerZaino, who had been the one urging earlyresolution of dates, was quoted as saying, “It justfrustrates me the horsemen can say, ‘Yeah, wethink it will be fine, but you’ll get a decision bySept. 3.’” Beulah and HTA member NorthfieldPark were the only two tracks to have their 2010dates approved at the hearing.In Maryland, at a hearing in which attendeesshowed flaring tempers, Marc D. Puntis, representingMiller Buckfire, the company workingwith Magna on its Maryland Jockey Club plans,revealed that Magna planned for Penn Nationalto operate Laurel Park for Magna if it were approved.THOSE ILLINOIS FAIR STAKESMid-April stakes payments have come and gone,and ads in the trade journals urged horsemen tostake at the Springfield and DuQuoin state fairs.If entries are down, no one should be surprised,for purses are still owed from last year. Whenmight they be paid? “Whenever the generalrevenue fund is robust enough to pay them, theywill get paid,” according to Tom Jennings, directorof the Illinois Department of Agriculture.OCEAN DOWNS NEEDS A RACESomewhere. Anywhere. It can’t race its summermeeting because the grandstand is being rebuilt,but it turns out it needs a race to meet countyrequirements for zoning for the track. Themeet could wind up at Rosecroft.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, April 26, 2010MONEY STILL TALKSThe lure of money, it turns out, still is the toppromotion of all. Both the Meadowlands andHoosier Park recorded their highest handles ofthe year Saturday.At the Meadowlands, the attraction was the tendayPick Six carryover of $511,350, which washit and returned $5,147 for a $1 ticket. Of thetotal, only $65,042 was bet at the Meadowlands,but the total handle from all sources for thenight was $4,031,158, biggest of 2010, surpassingthe $3.7 million bet on Jan. 23. Live handleof $648,889 also was a seasonal high. The Meadowlands’national harness handicapping championshipwas won by Joseph Fierro of Holtzville,NY, who won the $20,000 first prize.At Hoosier Park, the night was designated HoosierdegaNight, the first of a series, with a hostof promotional features highlighted by a 2010Dodge Charger giveaway. The 14-race programfeatured Indiana sire stakes, with total purses ofalmost $500,000, and auto-race themed promotionsincluded a 10-lap Go-Kart race for charityat the local Go-Kart track, which was televisedon Hoosier’s monitors. Horses in a special 7/8thmile race were given NASCAR-themed namesand a host of other promotions featuring Hoosier’smuch-used Fab Five, a group of leadingdrivers, produced a season’s record night. TheDodge Charger was presented on the casino floorand the Fab Five presided, with a fan from Muncie,Indiana -- Suzy Mansfield -- winning the carand $2,500 to cover licensing, tax and fees. TheFab Five also were on hand prior to a concerton April 17 and presented roses to ladies in thecrowd and tossed T-shirts at both concert performances.Hoosier also announced it would raceits $500,000 Hoosier Cup for 3-year-old pacersas a one dash for the money event, ratherthan in heats, May 29. Forty-four colts,including Sportswriter, are eligible.35 OTB MANAGERS FIREDThirty-five top non-union managers at New YorkCity OTB were handed pink slips last week, in asurprise move designed to save the beleagueredorganization $2 million a year. The cuts included12 administrative managers, 3 executive directors,4 senior directors, 3 special assistants and1 associate director. Chairman Meyer (Sandy)Frucher called the cuts “regrettable, but a necessarystep to operate our business more efficientlyand effectively.” He said that while more downsizinglay ahead, the action at the top level wastaken while awaiting legislation to enable themto provide early retirement incentive benefitsthat will enable OTB to move forward with itsunion partners on further reductions. Answeringquestions about the meeting at Saratoga,Frucher said, “I’m sure that when people stopcalling each other names and sit down to havea constructive and honest dialogue, we will notonly ensure the Saratoga meet, but also movea long way to solve the industry’s problems aswell.”IN OTHER HAPPENINGS.....HTA director PAUL FONTAINE of PlainridgeRaceway has been nominated as the New EnglandChapter of the U.S. Harness Writers Assn.Writers’ candidate for the Harness Racing Hallof Fame. Fontaine, a veteran of 40 years of theharness wars, is a prominent Rhode Island attorneyand board member of both the HTA andUSTA leadership teams, having served as USTAchairman for seven years....WOODBINE is addinga Wednesday night thoroughbred programto its scheduling, with a 6:45 post time, in additionto its Friday, Saturday and Sunday 1 p.m.afternoon programs....DAVID BROOKS hasbeen held in contempt of court for failure to producerequested items in his federal criminal trialfor fraud. A veterinarian also has testified thatBrooks asked him if he could erase thememory of a key witness in the trial.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, April 27, 2010FEAR AND CONCERN IN AC?The Press of Atlantic City, which carries waterfor the casino industry in the New Jersey oceanresort city, had a most unusual headline today.Over a story written by Juliet Fletcher, the paper’sStatehouse Bureau reporter, the headlineread, “Some fear power of new Christie panel ongaming in New Jersey.” This is a new sentimentto be expressed anywhere near the boardwalk orits environs, and certainly in Trenton, the statecapital, where the casinos are firmly entrenchedwith powerful friends in the New Jersey legislature.What possibly could cause fear in thosecircles? The 800-pound gorilla turns out to bethe state advisory commission appointed by newGov. Chris Christie to report to him on gamingand racing in the state, their problems, and suggestionsfor improving them. The specific scareis the fact that last Tuesday that commission acknowledgedit was working with a group headedby the former head of Harrah’s in Atlantic Cityto study the $600 million offer to put 5,000 videoslots in the Meadowlands and take over managementof the track. The concern is that the groupanswers directly to the governor, and the Pressstory said, “some lawmakers worry that the commissionmay be moving too quickly, and wieldingtoo much power.” According to the story, aspokesman for the governor’s office said the advisorycommission was not bound by either theOpen Public Records Act or open-meeting laws.Jon Hanson, a former head of the New JerseySports and Exposition Authority that runs theMeadowlands, now heads the governor’s advisorycommission, and he refused to provide a copy ofthe commission’s executive summary of its reportto the Press, saying “It’s not a public documentyet.” An encouraging sign for harness racingwas prominent mention in the story of the nameof Mike Gulotta, a former Wall Street starand now major harness racing figure inNew Jersey. We’re at least on board.FIRINGS & RAISES AT NYCOTBThe Chief-Leader, a weekly civil service newsletter,catches up with an interesting anachronismtoday. The New York City Off-Track BettingCorporation, bleeding badly and havingfired 35 top level execs last weekend, will stepin where the New York legislature reportedlycannot tread, and will cover the cost of a severancebuyout program and two 4% raises for itsunionized employees. The publication, quotingOTB chairman Meyer (Sandy) Frucher, saysthe first of 40 of NYC OTB’s 60 betting shops tobe closed will remain open, at least until June.INTERESTING NOTE ON SLOTSThe Pittsburgh Post-Gazette reports this morningthat the city’s big Rivers Casino is asking thePennsylvania Gaming Control Board to give itpermission to close down 126 of its 3,000 slotmachines and replace them with table games.The slots are under performing, and the casino’sattorney told the board they weren’tmaking money and “There’s no sense havingmachines that are not getting play.” The Riversalready is planning on 86 table games, and therequest to shut down slots is necessary becausethe law allowing table games stipulates that casinosmust keep the same number of slots theyhad operating last October 1.MEITTINIS RECOVERING IN NJDriver Jim Meittinis is recovering from a badspill at Freehold Raceway last week, when anunruly pacer went on a break and Meittiniswas thrown from the sulky and hit by a trailinghorse. He suffered three broken vertebraeand was taken to the trauma center at JerseyShore Medical Center in Neptune. Driver JimPantaleano, driving the trailing horse, also wasunseated but not injured.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, April 28, 2010WED’S MENU: SMORGASBORD IN MICHIGAN, voters will have a chance to considertwo gaming expansion measures, IF twoIN MINNESOTA, a bid to tie racino slots to anew Vikings football stadium was defeated in the groups are able to obtain 380,126 signatures byHouse, where it had been attached to an unrelatedbill. Opponents, who are concerned with issue in the David Brooks federal fraud trial. TheJuly 5....ON LONG ISLAND, more dirty doings atMinnesota Indian casinos more than the state’s messy affair now includes revelations about thetwo racetracks, voted 99-31 not to consider the number of extramarital sleep-ins of Dawn Schlegel,a former executive in the Brooks empire. Theproposed amendment....IN KENTUCKY, Gov.Steve Beshear said he would not consider any InstantRacing action until the legislature passed a more than one encounter, as testified, and hopeddefense claimed it had evidence Ms. Schlegel hadbudget. The state attorney general had ruled the to defuse her testimony as less than credible asgovernor had the power to act unilaterally on a result. The judge asked for metadata provingthe contention, and was given two pieces ofhis own, but he announced he would not untila budget was passed. The legislature ended its paper that angered her enough to file contemptsession without approving slots at tracks, which charges against Brooks. New York’s NewsdayBeshear favors, and he is considering calling a and Horseman and Fair World’s harnessracing.special session next month....Also in Kentucky, com continue to report the day to day chargesthe usual dire predictions for racing at the two-day and countercharges, as the USTA and New YorkKentucky International Equine Summit, where the stays of Brooks’ suspension allow his regimentusual cast of suspects intoned the usual comments, of pacers to perform....Also on Long Island, theincluding one by Oaklawn Park’s Louis Cella Nassau County executive Edward Mangano isthat tracks without slots are doomed, and agreementon that from Penn National’s Chris McEr-Indian Nation to build a casino on the 77-acrepushing for consideration by the Shinnecocklean. Keeneland’s Nick Nicholson suggested the site of the rundown Nassau Coliseum. The Indiansare awaiting hopeful approval as a certifiedattendees smell the roses while on hand duringKentucky Derby week, and presumably most tribe by the federal government....IN OHIO, thewill....HARRAH’S ENTERTAINMENT, run by Columbus Government Examiner waved a journalisticfinger at the Columbus Dispatch, sayingformer Harvard whiz Gary Loveman, reporteda first quarter loss of $195.6 million, higher than that powerful newspaper neglected to let readersa year ago when the company lost $132.7 million.The report did not include industry rumors a 20% interest in property the paper was tout-know that one of its affiliated companies ownedthat Harrah’s was seeking to sell its Las Vegas ing as a better site for the future Columbus casinothan one proposed by Penn National Gam-Rio hotel property....IN DELAWARE, the groupseeking to rebuild old Georgetown Raceway harnesstrack, dead for decades, again suggested pro-a 20-year jail term has been set down for formering....Not current but previously unreported here,viding 51% of its earnings to charity. There are harness driver Hugh Stevens, and a 5-year termthree other candidates, all in a state as small as for his wife Sandra, for hauling ephedrine thatDelaware spelling more competition for racinos the judge said could have been made into “astronomicaland astonishing” amounts of meth-at HTA members Dover Downs and HarringtonRaceway. One, seeking a casino in Millsboro,said Georgetown’s Hail Mary effortbattle between Stevens and the federal govamphetamine.The sentencing ended a six-yearwas a recipe for certain failure.ernment.

HARNESS TRACKS OF AMERICAExecutive NewsletterNEW DEAL IN SOUTH FLORIDAWith the signing by Florida governor CharlieCrist of the billion dollar deal with the SeminoleIndian Nation, Pompano Park is about toreap some rich rewards. How they are spent isanother matter. Those hoping for badly neededbackstretch renovations may be in for disappointment,with Isle of Capri general mangerRob Wyre telling the South Florida Sun-Sentinel,“Having been under the 50% slot tax for threeyears has prevented the shareholders from a fairreturn on their investment. We’re looking to improvethat.” The new deal includes a reductionin the tax from 50% to 35%, a wide open pokeroperation with former $800 pot limits gone andpoker rooms now free to conduct events like$10,000 buy-in tournaments that could drawmajor players, and a reduction in machine licensingfees from $3 million a year to $2.5 millionnext year and $2 million in 2012. The southFlorida tracks have indicated, however, thatthey do not want to price too many players outof competition, so tables may still be limited toaccomplish that purpose. Palm Beach KennelClub gets an extra poker room, which may beused for the new higher limit games. Steve Wolf,former senior director of operations at Pompanoand now a south Florida gaming consultant, saidof the new changes, “Everything opens up,” andhe predicted the gambling experience would bebetter overall along with tourism, with the lureof wider games and the opportunities for gamblersto bring their families along for sun andsurf. Isle of Capri may move forward now withits delayed plans to build a hotel on its property,but Wyre said the company was still trying togauge if the worst was over with the economyand added, “It’s too early to set a constructiondate.” Under the compact, which still must beratified by the U.S. Department of Interiorwithin 45 days of Crist’s signing, Floridawill get $435 million this year and a bil-A daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, April 29, 2010lion in five years, or $300 million more than thatif tribal revenues increase as they are expectedto do.EXEC CHANGES AT WOODBINENick Eaves, taking over as chief executive officerat Woodbine Entertainment, has announcedchanges in the WEG’s top echelons. Jamie Martinhas been promoted to executive vice presidentof racing, and will handle duties as headof marketing and communications as well; SeanPinsonneault, formerly vice president of wageringservices, assumes overall responsibility forall operating departments as executive vice presidentand chief operating officer; Eddie Stutzbecomes senior VP operations, and as such willwork with Pinsonneault; and Steve Mitchell,currently executive VP and CFO, will assumeresponsibility for capital projects and propertydevelopment initiatives.AROUND AND ABOUT.......MOHEGAN SUN AT POCONO DOWNS will begetting its 300-room resort hotel, president andCEO Bobby Soper revealed yesterday, addressingbusiness leaders in the Wilkes-Barre area.Soper told them Mohegan had reached an agreementwith an unnamed hotel developer to builda $60 million facility, which Mohegan Sun wouldmanage and lease, with an option to buy. Sopersaid no memorandum of understanding had beensigned, but he called it “less important” than thehotel developer obtaining the financing. He saidhe hopes to break ground this year....And thelatest juice from the juicy David Brooks trial.The former president of the company, DouglasBurns, claims that his signature was forged onan alleged employment contract allowing Brooksto have the company pay his personal expenses.This marks the third time in the trial that a governmentwitness has testified a key defense documentwas a fake. We will let you know whenthe movie of all this will be released.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, April 30, 2010ONE OF THESE DAYS.....This may not be the one, but one of these daysone of these proposals for slots at Illinois trackswill gain enough support to turn the industryaround in Illinois. It was interesting that WGN,the radio voice of the Chicago Tribune, led its reporton the proposal not with the proposal itself,but rather with the opposition of the executivedirector of the Illinois Casino Gaming Association.Deep in the report it mentioned that Rep.Will Burns, pushing the measure, had securedsome important labor support from Mark Beaubien,the Republican who is a point man on budgetmatters in the House. The Burns proposalwould give Chicago tracks up to 1,200 slots.WHEN WYNNERS ARE LOSERSSteve Wynn’s abandonment of the ill-fated Foxwoodscasino project in Philadelphia may havedoomed the enterprise. Cyrus Pitre, an attorneyfor the Pennsylvania Gaming Control Board,says he is filing a complaint to revoke the slotslicense of Foxwoods, which has been trying tobuild a casino on the Delaware River waterfrontsince it obtained the license four years ago. Pitremade clear revoking the Foxwoods license didnot mean rescinding of the license itself, and DonaldTrump is believed to be interested, which isgood or bad news for the city, depending on howyou look at it. At the control board meeting atwhich Pitre made his announcement yesterday,The Meadows was awarded 62 table games forits highly successful racino that is fueling pursesat the western Pennsylvania track. Bill Paulos,top man for the Cannery Casino that runs thetrack, said there will be 25 tables for blackjack,20 poker tables, 5 craps tables and 3 roulettetables. The Wall Street Journal reported yesterdaythat Wynn is still interested in Pennsylvania.How about a partnership with Centaur toget their long stalled racing and racino inwestern Pennsylvania underway?MORE SMORGASBORD....ED WHITFIELD is back. Daily Racing Formreports that the Republican Kentucky congressmanand Democratic Senator Tom Udall haveasked the National Thoroughbred Racing Associationto answer nine questions about thestate of uniformity on medication rules and thethoroughbred industry’s efforts to collect dataon racing injuries. Alex Waldrop, president andCEO of the NTRA, said, “We welcome the scrutinyof the Senate and House committees andsincerely appreciate their interest in improvingthe sport of thoroughbred racing.” Keep yourleft up, Alex....YONKERS RACEWAY has boostedpurses by 15% across the board to meet thecompetition for horses from a wave of tracksopening spring meetings....Dexter Cup eliminationsat FREEHOLD RACEWAY tomorrow, withentries from the Jimmy Takter and Ray Schnittkerstables favored, as usual....Note to those whoscoffed at New Zealand’s Auckland Reactor inthe recent USTA poll of his impact in America.He qualified in 1:53 by two lengths over a goodpacer in Bullville Powerful at the Meadowlandsin his first start on American soil. More to come.Trainer Kelvin Harrison and owners Peter Hefferingand the AR stable wisely went to the topand secured Brian Sears to drive. This is a goodhorse....RICHARD SIEBERT, a Batavia Downsfan since his days as a counter in the money roomat the track 52 years ago when he was paid $14 anight, has been elected in the contentious contestfor chairman of the 17-man board of directors ofWestern OTB, which runs off-track betting fromBuffalo to Rochester....CHRIS POLZIN, son oflongtime Chicago harness writer and handicapperElmer Polzin and his wife Pat, has begun hisduties as racing secretary at Arlington Park. Hisbrother David, named for Dave Feldman, theformer legendary Chicago announcer and racingwriter, is a professor of veterinary medicineat the University of Minnesota.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, May 3, 2010ESTOK TAKES OVER NEW DUTIESPaul Estok, general counsel and corporate secretaryof Harness Tracks of America for the last15 years, has assumed his new HTA duties asExecutive Director. Estok served in his previousrole, and as an executive assistant and researcher,during his honors career at the University ofArizona in the College of Agriculture and sincehis graduation from the Race Track IndustryProgram and from the University of ArizonaCollege of Law. In his new role Estok will be responsiblefor the overall management of the dayto-dayoperations and budget of HTA, providingoversight and administration of all membershipservices. He will work alongside Executive VicePresident Stan Bergstein, who will continue producingand editing the association’s daily, weeklyand monthly newsletters and editorial contentand public relations image.Estok, who graduated magna cum laude andwas named the outstanding graduating senior inthe Department of Animal Sciences at the Universityof Arizona in 1994, previously studied atthe University of California San Diego, the BaruchCollege of the City University of New York,and the New School for Social Research in NewYork City. Before his Arizona days, he workedas an editor at Lucent Books and GreenhavenPress in Rancho Bernardo, California and as alegal proofreader at Cleary, Gottlieb, Stein andHamilton in New York City. A native of Cleveland,Ohio, Estok said he is “looking forward toworking with Bergstein to keep HTA the vibrantand vocal organization it has been for the last 50years.” Along with HTA president Hugh Mitchell’sannouncement of Estok’s promotion, Estokand Bergstein announced the advancement ofJennifer Foley from manager of web developmentand information services, a position shewill continue to serve, to a new role as executiveassistant of HTA.NEW BOSS IN CANADAJohn Gallinger, a Magna Entertainment executivefor the last seven years and that company’schief information officer since 2006, has beennamed president and chief executive officer ofStandardbred Canada, succeeding Ted Smith,who has retired. At Magna Gallinger alsoworked in a wide spectrum of duties, includingrace office operations, horseman applicationsand services, domestic and international videodistribution, totalisator services, account wagering,internet strategy, simulcasting, wageringproduct development and customer loyalty programs.He served on the Thoroughbred RacingAssociation’s 2020 committee, the transmissionprotocol committee and the video security committee.Before joining Magna, Gallinger was manager ofBearingPoint LP, one of the world’s largest businessconsulting systems. In that role he focusedon the sale and delivery of large-scale telecommunicationsystem implementation and businesstransformation projects. He holds a master’sdegree in accounting.NOT IN OUR HOUSE, DAVIDLast week Executive News reported that USTAand the state of New York had put stays on theirbans of David Brooks, on trial for federal fraud.That is true, but it does not apply to Jeff Gural’sTioga Downs and Vernon Downs. Brooks’Bulletproof Enterprises brigade of horses arenot welcome at either track, and will not be welcomedto race at either under track rules.SHIFTING SANDS IN VALLEYThings are not going too well at the Sands CasinoResort in Bethlehem in Pennsylvania’s LehighValley. The year-old operation fired 80 employeeslast Friday, cutting its workforcefrom 860 to 780.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, May 4, 2010DELAWARE LOSES COURT BIDThe United States Supreme Court has declinedto hear the state of Delaware’s request to consideroverturning a Philadelphia federal appealscourt ruling against expanded sports betting inits track racinos. Yesterday’s refusal dooms thestate’s case, and ends the controversy. It was thelast stop on the state’s effort to expand sportsbetting, and the high court had no comment onthe request, which was denied along with dozensof others coast to coast.The turndown means Delaware’s racinos will notbe able to expand sports betting to college football,basketball, NASCAR or baseball, accordingto the Wilmington News Journal’s delawareonline. The state also is prohibited from allowinggamblers to place bets on the outcome of singleNFL games. The parlay bets that were allowedduring the most recent NFL season brought thestate $1.6 million in revenue, but a huge chunkof that -- $611,000 -- was spent on fees to lawyers,some working at $500 an hour, defendingDelaware from lawsuits brought by major sportsleagues, and preparing appeals.Gov. Markell said he was disappointed but notsurprised by the high court’s refusal to hear thecase. “It is what it is,” he said, realizing that theSupreme Court takes only 100 out of 8,000 petitionsit receives each year. A University of Richmondprofessor of law, Carl Tobias, explainedthe refusal. “You could read into the decisionthat the justices are happy with the appeals courtdecision, but that’s not always the case. It justmight not have been something that was veryimportant to them.” Ed Suitor of Dover Downssaid the track had hoped that the court wouldfind that because Delaware had the right to beton other sports in the 1970s but chose not to doit, it might grant an appeal. He said sincethat didn’t happen, “We’re going to haveto make do with what we’ve got.”DERBY BIG AT BIG M, ITS OTBSSaturday’s betting on the Kentucky Derby producedrecord numbers at the Meadowlands’OTBs in Woodbridge and on New Jersey accountwagering. Woodbridge’s upscale teletheaterand dining facility on busy Route 1 in Fordshandled $944,966 on the Derby card, eclipsingthe old record of $893,804 bet on Derby Day lastyear. New Jersey account wagering passed themillion dollar mark in a single day for the firsttime, handling $1,042,328 on Saturday. Its previoushigh was $944,792 last year. The serviceprovides betting by Internet at www.4njbets.comand by phone to state residents. Total bettingon the Derby card across all New Jersey Sportsand Exposition Authority venues was $6,824,706Saturday.TIOGA’S PROGRAMS ONLINEProgressive Tioga Downs, in a bid to stay currentwith technology, has introduced a joint servicewith TrackMaster to provide its patrons withthe ability to download its past performanceprograms from home. Jason Settlemoir, thetrack’s innovative vice president of racing andsimulcasting, explained the rationale. “The costof getting the programs to off-site facilities to sellhas moved beyond a break-even venture. However,we don’t want to disregard customers thatcan’t get to the track to buy a program, so wethought this was a great alternative way of goingabout it for both parties.” Customers can logon to TrackMaster through links under the racingtab on the track’s Web site and download theprograms right to their computer at home for advancehandicapping. All major credit cards areaccepted on the TrackMaster site. Other newtechnologies incorporated into operations areFacebook Friday and MySpace Saturday, whereguests who are friends of Tioga on those socialnetworks can print coupons good for a freehot dog, soda and program at the track.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondPaul J. Estok, EditorWednesday, May 5, 2010PENN GETS NEEDED OHIO VOTEPenn National Gaming, owner of HTA membersFreehold Raceway in New Jersey and HollywoodSlots Hotel and Raceway in Bangor, Maine, announcedtoday following approval by voters ofState Issue 2 on yesterday’s statewide ballot, it isimmediately proceeding with design, planning,environmental remediation and other pre-constructionactivities for the company’s HollywoodCasino Columbus at the 123-acre site on the westside of the City of Columbus. The tract was previouslythe location of a General Motors/DelphiAutomotive plant. Ohio voters approved theoriginal plan for casinos in the state’s four largestcities in November 2009, but following negotiationswith the Columbus city government, aswell as civic, business and political leaders, PennNational agreed to seek a state constitutionalamendment to relocate the Columbus casinofrom the downtown Arena District to the formerGM plant site. Returns from yesterday’s electionshowed the measure to approve moving thecasino passing with 69 percent of the vote. Ina company release, Eric Schippers, senior vicepresident for public affairs for Penn National,said, “With the approval of State Issue 2 we aremoving quickly to the next steps in the developmentof Hollywood Casino Columbus, whichwill create 3,500 construction jobs and 2,000 newpermanent jobs and generate hundreds of millionsof dollars in tax revenues.” With a plannedbudget of $400 million, the casino is expected toopen in the second half of 2012.WESTERN FAIR OPENS TODAYA 10 percent purse increase and a new racingschedule will greet patrons as Western FairRaceway kicks off its spring meet today. Purseswere raised across the board due to an increaseof approximately nine percent in averagedaily handle in the track’s recently concludedwinter meet.NM RACINO LOSES LICENSEThe New Mexico State Gaming Control Boardvoted yesterday to “pull the plug” on a plan for anew horse racetrack and casino in Raton, in theLand of Enchantment’s northeast corner. Theproposed $500 million racino’s problems begannot long after it received its license. A 60-dayrace meet was supposed to begin Memorial Dayweekend, but lack of a racing surface or grandstandmade achieving that milestone virtuallyimpossible. The license-holders had asked for amuch shorter meet, this one starting Labor Dayweekend, but gaming board members said no.Revocation of the license for the Raton racinosends the issue back to the gaming board. In additionto the action by the gaming board, the NewMexico Racing Commission will consider disciplinaryaction at its May 19th meeting. Whilea New Mexico track can normally have a racinglicense without a gaming license, one of the conditionsput on the Raton operators when the racingcommission awarded the racing license wasthat the operators have a gaming license.MEADOWS GETS TABLE GAMESThe Meadows Racetrack & Casino now hasthe State of Pennsylvania’s permission to offertable games, but a spokesman for the companysaid that while the casino is happy about the approval,rollout of the new games probably won’tbe any time soon. The racino needs time to hireand train the nearly 600 employees it will needto staff the poker, blackjack, roulette and crapstables that will be added. The gaming board ishoping the games are up and running by July ofthis year.HTA INVOICES IN THE MAILThose pesky HTA dues invoices have been sentout by trusty controller Bente Jensen...pleasedon’t ignore them. Your cooperation isgreatly appreciated!

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, May 6, 2010NEW CONTROVERSY FOR NYRAThe New York Racing Association, which hasmore controversial issues than Walgreens haspills, is seeking help in Albany again. The problemthis time is NYRA’s inability to video streamits races, a privilege it says could generate $2 milliona year for the strapped racing outfit. Undercurrent law, people can bet on NYRA races online,but can’t watch the racing on either NYRAor off-track betting sites. Help is on the way, inthe form of approval of a bill by the New YorkSenate racing commission, which has approvedvideo streaming for NYRA and OTBs. The measure,S.6895, would allow NYRA to stream itssignals on its Web site, and NYRA’s presidentand CEO says it could generate the $2 millionpredicted revenue in the first year and “substantialincreases going forward.” He also says OTBshould be allowed to videostream “assuming thatwe can reach a suitable business arrangement,”but adds that videostreaming “is only one of themany business operations that should be consolidatedbetween NYRA and the OTBs, but theredoes not appear to be serious interest to do anyof these initiatives.” The proposed bill would allowtracks and OTBs to expand the market andbetter compete with out-of-state betting outlets,including Youbet.com, which can and does showNYRA races. The Senate racing committee approvedthe measure on Tuesday and sent it to thefull Senate with a do-pass recommendation. Nomatching bill has been introduced in the Assemblyas yet. The Saratogian in Saratoga Springssays that house may be waiting on an omnibusracing bill, rather than tackling issues one at atime. New York Governor David Paterson hasproposed giving NYRA $17 million as an advanceon future racino revenues, estimated toreach $250 million a year. NYRA could repaythe loan from racino income, but it is nineyears since the racino was approved andcould be another nine before it is built.NEW LAWSUIT IN MARYLANDWhile the Aqueduct racino project holds thecurrent record for longevity without life, it mayultimately be threatened by events in Maryland,where the years are piling up on slots in the state,now two years old and aging. Now a new delayappears on the horizon, as a complaint was filedthis week in circuit court in Annapolis, takinga new tack on challenging a public referendumvote on barring slots at the Arundel Mills mallbetween Baltimore and Washington. The newsuit, backed by the giant Cordish Corporation,which hopes to build the casino, claims the referendumis unconstitutional because the countycannot hold a referendum that conflicts with statelaw. The suit charges the Anne Arundel Countyboard of elections and Maryland unlawfullycertified the petition allowing the referendum tomove forward. It also questions the motives ofthe Maryland Jockey Club, which paid a privatecompany to help collect petition signatures.BIG DERBY, AND BIG LOSSESDespite an announced attendance of 155,804,high television ratings, and record revenues of$75 million, the rest of the Churchill Downs pictureis not quite as bright. The company saw itslosses for the first quarter, traditionally a toughtime, rise from $4.83 million a year ago to $8.67million this year. The big increase was attributedto expenses in buying Youbet.com and $1.1million in startup costs for the January openingof its Calder Casino and Race Course slots parlor,according to the Louisville Courier-Journal.Quarterly losses of 64 cents a share compared to36 cents a share a year ago, when revenues were$73.74 million for the quarter. Chief financialofficer Bill Mudd told the newspaper that “Overall,we’re pleased with the results.” Churchill’sTwin Spires ADW betting was up 8% for thequarter.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, May 7, 2010STRONACH STEPPING DOWNFrank Stronach reluctantly is giving upcontrol of Magna, the huge auto partsbusiness he has built worldwide. Themove, if approved by shareholders, wouldleave Magna without a major shareholderand potentially vulnerable to a takeover,according to the Toronto Globe and Mail.Stronach would receive an $863 millionbuyout of his multiple voting shares thathave given him control of Magna, afterwhich he would hold a 7.44% stake in thecompany. He would receive $300 millionand 9 million shares of class A shares in returnfor surrendering the multiple votingclass B shares first issued to him 32 yearsago, according to the paper. “It took alot of reflection, a lot of soul searching,”Stronach said yesterday in announcinghis decision to agree to the managementproposal to step down. “We still havea strong voice because we have a lot ofshares,” he said, but the Globe and Mailsaid the 77-year-old Stronach seemed, despitepreaching for years about the needto shelter Magna from the influence of institutionalshareholders concerned onlyabout short term financial performance,to have little concern about the possibilityof the company he founded 53 yearsago being left in control of public investors.Stronach will remain chairman ofMagna and receive consulting fees for thenext four years. He will invest $80 millionto hold a 27% share to lead a newMagna division created to developelectric cars.Major company executives differ withStronach on the future of electric cars,which he says could generate $20 billionin revenue for Magna in 10 years. Analystswere stunned by his decision to relinquishcontrol -- one saying he had beenwith the company for 23 years and neverthought he would see it happen -- butStronach said, “I realize I can’t managethe company from the grave.” One personsaid Stronach’s decision would leavehis daughter Belinda with a higher premiumthan she would have received if sheinherited Stronach’s stake and then sold ita few years later.BRUNO GETS 2 YEARS IN JAILFormer New York Republican Senateleader Joe Bruno was sentenced to twoyears in prison yesterday by a federaljudge, who said he had violated publictrust and engaged in a pattern of usinghis powerful office to enrich himself. Thesentence of the 81-year-old Bruno will beheld up, however, until the United StatesSupreme Court rules on the legality of the“honest services” law under which Brunowas prosecuted. If they strike it down, hegoes free.PENN NATIONAL MARCHES ONPenn National Gaming and MI Developmentshave announced a joint venture toown and operate Pimlico and Laurel racecourses. Penn National also will moveforward on its Columbus, Ohio, casinoand one in Kansas City, Kansas.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, May 10, 2010NUMBERS CONTINUE TO FALLLike the oil spill in the Gulf, horse racingcontinues to lose ground. Numbersreleased by Equibase last week showyear-to-date betting down $3.8 million, or8.4%. And that included the appearanceof Rachel Alexandra and the KentuckyOaks, run on the last day of the April reportingperiod this year instead of in Mayas usual. April was still down -- 2.5% belowa year ago -- but that simply seemedto reflect two fewer racing days in Aprilthis year. One that was extremely encouragingas the new month began was a riproaring Derby and the highest televisionviewing since 1989, and U.S. purses heldsteady. The TV audience of 16.5 millionwas the best since Sunday Silence’s 18.5million 21 years ago. There is life in theold gal yet. Those who can figure out theappeal of this year’s Derby, with 20 horsesnamed Joe, please write or call.NYRA AS SEEN BY VIOLETTEAs the boys in Albany debated how muchand how to give NYRA some spendingmoney, a man close to the picture gavehis own view. Rick Violette, president ofthe New York Thoroughbred Horsemen’sAssociation and a NYRA board member,had this evaluation. “NYRA already ischecking under seat cushions and turningits pockets inside out looking for money.That’s not a pretty scenario. This isn’tposturing. It isn’t even a threat. It’sreality. If NYRA says it’s going toclose its doors, it will.”SAD SCENARIO IN LEXINGTONThose who know racing photographerTony Leonard in Lexington, KY, knowthe man’s spirit, spontaneity and dedicationto his trade. To them the recent developmentwhere Tony and his wife Adelle,both former stage performers, were madewards of the state to protect them andtheir vast store of Tony’s photo collectionswas one of the sadder developments of theseason. Last week trial commissionerChoya Oliver granted a petition to endstate control and place Leonard’s massivenegative collection of top thoroughbreds,and many harness horses, in the hands offamily members, and place the Leonardsin a nursing home. Matt Bergantino, anephew, and attorney Rebecca Naser willbecome guardians of the Leonards, andpresumably will be in charge of his photocollection. Judge Oliver expressed theview of most when she said, “Hopefullyall the people who have come forwardand said they want to help Tony and providethe best possible marketing strategyfor the photographs will follow through.”SNARLS IN NJ, MILES IN PAFigures released by the American GamingAssociation reveal New Jersey sufferedthe largest gaming declines in 2009 andPennsylvania enjoyed the highest gains.New Jersey gaming revenues were down13.3% and tax revenue down 18.6%.Pennsylvania recorded increases of21.6% in its 13 commercial casinos.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, May 11,2010SOME ADVICE TO OUR FRIENDSWe have hung around long enough, andput in enough shifts, that we can doleout advice on occasions now with a littleauthority. Here is one piece of wisdompicked up over the years, and more recentlyin the hallowed halls of the NewYork legislature in Albany.Don’t get caught in the middle betweenDemocrats and Republicans.That’s where the New York Racing Associationfinds itself, and although it willwiggle out of this one as it has all the rest,it blew a cool $17 million over the weekend.Democrats in the Senate, accordingto The Saratogian of Saratoga Springs,NY, claim Republican attempts to giveNYRA a $17 million loan are unconstitutional,and would shut down state government.The Republicans, through Sen. RoyJ. McDonald, accused the senate majorityof playing “Philadelphia lawyer games.”Yesterday, the legislature, unable to reachagreement on a state budget well beyonddeadline, as usual in New York, approvedthe sixth emergency spending bill to keepstate government running. Even a pollike McDonald realizes how stupid thisexercise has become. “I understand thepolitics,” he said in the Senate. It’s timewe start doing something. I appeal to youto recognize this vitally important industry.”And so it goes, on and on,in the nation’s “greatest state.”GREAT BREAK FOR TROT FANSThere will be eleven weeks of high qualityharness racing on national radio this summer,it was announced today by SIRIUSRadio in New York. The coast-to-coastservice, with top track announcer DaveJohnson and widely respected major racingjournalist Bill Finley at the controls,will kick off the series on May 29 at 10p.m. eastern time on SIRIUS 126 and XMchannel 243. The $500,000 Hoosier Cupfor pacers from Hoosier Park in Anderson,Indiana; the $200,000 New Jersey sirestakes for colts and fillies from the Meadowlands;and the $60,000 James LynchMemorial from Mohegan Sun at PoconoDowns in Wilkes-Barre, PA will feature thefirst show. “Saturday Night at the Races,”Johnson says, “will give SIRIUS and XMlisteners from coast to coast access to thebest, richest and most important harnessraces held this summer. These upcoming11 weeks will feature dozens of big eventsand give us the chance to showcase harnessracing at its very best.” The broadcastshave been made possible by a collectiveindustry effort, in which BrittanyFarms, Hanover Shoe Farms, the IndianaStandardbred Breed Development Fund,Perretti Farms, Tioga and Vernon Downs,Woodbine Entertainment and YonkersRaceway have agreed to underwrite theshows, with Bill Finley spearheading theeffort. All-around star Peter Kleinhanswill serve as analyst and HTA ExecutiveVP Stan Bergstein as commentator.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, May 12, 2010FIRE PLANS PAY OFF BIG TIMESound planning and a prudent investmentpaid off in many ways at PlainridgeRacecourse last Sunday morning, when asprinkler system in the stable area was givencredit for saving the lives of as many as200 horses. A fire broke out in a tack stallat 3 a.m., and tripped an alarm at the Plainvillefire station. The town’s fire chief,Ted Joubert, credited the system withquick response that averted a possible disaster.“This fire speaks volumes aboutfire prevention,” he said. “The sprinklersystems did exactly what they were supposedto do.” The track’s sprinkler systemand fire alarm work jointly with itsbarn area protection, wired directly intoit, and brought quick response from Plainvilleand surrounding towns, who wereon the scene in minutes and joined trackpersonnel and horsemen in clearing thebarn of some 40 horses. None appearedseriously injured, but were withheld fromMonday and Tuesday racing and will notbe drawn into races until cleared by veterinariansof smoke damage and/or otherhealth problems. General manager SteveO’Toole, a former horseman, said, “Wefelt it was in the best interests of both theanimals and the wagering public to makesure that any impact from the fire is addressedbefore these horses participatein racing.” The Boston CBS TV outlet,the city’s biggest, led its 6 p.m. news showwith a piece on Plainridge, includingstarting gate footage.In other good news for Plainridge, RichardRoss, the track’s state representative,won the state Senate seat of Scott Brown ina special election. Ross becomes the firstlegislator in Massachusetts history to voteon a piece of legislation in both branchesof the legislature. He voted “yes” on theslots bill in the House and will be seatedbefore the Senate vote on the issue.ANOTHER DANCER TO FOREThe Dancer family in New Jersey has wonfar more battles than it ever lost. BrothersStanley, Harold and Vernon and theirfather brought fame to the state and tothe sport of harness racing. Now anotherDancer, Assemblyman Ronald Dancer,Stanley’s son, is moving forward with racinglegislation to help the Meadowlands.Ron and Assemblywoman Caroline Casagrandeare working on A-2507, a bill thatcodifies agreements between tracks andhorsemen’s associations and is expected tohelp purses grow hugely by reducing thenumber of racing days. The plan, craftedfrom models in Japan and Australia, alsohas support from Bob Mulcahy, a memberof Gov. Chris Christie’s commission ongaming, sports and entertainment. Dancer,a Republican representing Ocean, Burlington,Mercer and Monmouth counties,calls horse racing “too important to let itgo away.” He says he hopes the legislationwill reconfigure the sport, and he has thesupport of John Burzichelli, chair of theAssembly Regulatory Oversight andGaming Committee.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, May 13, 2010HANG ON. HERE WE GO AGAINMighty New York is starting over fromground zero, attempting once again to finda suitable suitor to build and operate theracino at Aqueduct Race Course. It hasbecome almost traditional to cite “a milliondollars a day” being lost by the state,which if accurate would mean that NewYork has squandered $3 billion, 285 millionwhile its legislators played games inAlbany over the last nine years. Now comesa new effort, launched this week, with theLottery and Budget divisions playing leadroles in screening the applicants -- presumablyat least five being previously unsuccessfulapplicants -- before winding upright where the process left off in disgracea few months ago: with governor DavidPaterson. After the lottery and budgetfolks hand him their “winner,” Patersonwill pick whom he chooses, supposedlyon August 3, although missed deadlinesin New York state stretch from Albany toBroadway. This selection process is whatPaterson calls “apolitical.” The New YorkLottery says all bids will be made publiconce a winner is selected, and the requestfor proposals will be publicized on variousWeb sites. Previous “winners” whoturned out losers were Delaware North,which won the first round of bidding butcouldn’t deliver the $300 million in upfrontmoney, and the scandal-ridden AqueductEntertainment Group whose niceprincipals included folks who mayhave diverted flood relief monies.Other hopefuls who did not make the cutlast time around include SL Green Realty,Hard Rock Casinos and MGM Mirage,Harrah’s Entertainment, Penn NationalGaming, Peebles Realty and the winnerloserin the earlier selection, DelawareNorth.BOOZE FLOWS AT BIG MApparently inspired by this coming Saturday’sSaturnalian doings at the Preaknessat Pimlico, the Meadowlands hasannounced its own revelry a day earlier.For 38 bucks tomorrow night, you canget track admission, barbecue buffet, arace program, prize drawings, and a $5betting voucher if you make advance reservations.Oh, jeez, we almost forgot themost important part of the promotion.“Unlimited beer samplings.” Not surewhat that means in quantity -- probablynot as much as Pimlico’s drink-yourselfsillyoffer -- but at least there won’t bewild things wandering in the infield inEast Rutherford.D’ALLESANDRO FIGHTS ONUndaunted by defeat at the hands of hisgovernor, John Lynch, and his colleaguesin the state legislature, State Senator LouD’Allesandro battles on in New Hampshire.He now has come up with a newproposal, for fewer slots and the LotteryCommission getting to pick where to putthem. A live webcast discussing the issueis being held today. Still alive.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, May 14, 2010TRY BUYING YOUR WAY INWhen all else fails, you always can try tobuy your way in. That’s the tack nowbeing taken by Canterbury Downs inMinnesota, as the Minneapolis-St. Paultrack lobbyist, Dick Day, has emergedas president of something called RacinoNow. Day is telling legislative leadersand Governor Tim Pawlenty that thetrack will pay the state $100 million fora racino license, a one-time payment thatDay says will help Minnesota solve itsbudget problem. The former state legislatorwent farther when he said, “I’venever seen the state in need of moneymore than now. We have the money rightnow. If House and Senate leaders turndown this offer, we’ll know that the fix isin.” Pretty strong statement, Dick, for aguy who resigned from the legislature tobecome a lobbyist.NYRA GETS NO HELPThe situation may change before the inkis dry on this page, but as of this morningNew York Racing Association officialstold Matt Hegarty of Daily RacingForm that they have been told the legislativeplan to loan NYRA $17 million hasfallen through “because it would violaterestrictions on how the state can loanmoney.” An unidentified state officialsaid, “They are looking at other ways tosecure the money. But there isn’t an obviousway of doing that right now.”Maybe Canterbury can help out.OR PERHAPS THIS GUY...You very possibly have not heard of TerranceWatanabe, but Harrah’s Entertainmentwill tell you all about him. Heis out of Nebraska and identified as “a53-year-old philanthropist who obviouslylikes to gamble.” He lost $189 million atCaesars Palace and the Rio three yearsago, up from an estimate of $112 millionlast November. The $189 million representedsome 6% of all Harrah’s casinorevenue in Las Vegas, and Watanabe’slawyers say he gambled more than $800million at the two hotels in 2007 alone.Bill Thompson, the public administrationprof at the University of Nevada Las Vegas,says, “No one has ever lost this muchmoney in a casino before. It’s just a fantasticamount. He’s the biggest whale ofall time.” Watanabe’s lawyers also saythe reason for the losses was that the hotelcasino operators plied their client withliquor, and that while he had lost $67.29million at Harrah’s casinos by the end ofAugust 2007, “his gambling losses escalatedastronomically in the fall of 2007,just as his level of intoxication was reachingthe most extreme. The Harrah’s entitiesmade these losses possible not onlyby progressively increasing Watanabe’scredit limit and providing him with anonstop supply of alcohol and prescriptionpainkillers, but also by increasinghis table limits beyond other patrons.”Watanabe also faces claims of $14.7million in bad markers.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, May 17, 2010LOU GUIDA BACK WITH STARThe man is back, and his days of gloryare being relived. Lou Guida, whoowned harness racing in America in the1980s with brilliant stars like Niatrossand Mack Lobell, and a deep platoon ofpacing fillies and colts, took command ofone of Europe’s classic trotting races, theOslo Grand Prix, over the weekend. HisItalian-bred Lisa America, named for hisolder daughter and by the world championtrotter Varenne, won the $500,000Norwegian race as a 33-1 longshot, beatinga field of eight of the best male trottersin Europe at a mile and three-sixteenths,and picking up $240,429 for the victory.The Finnish driving ace Jorma Kontiodrove, and when American trainer JerryRiordan, who has trained Guida horses inItaly for years, was asked by a reporterhow he communicated with Kontio, hesaid, “Why should we. I’m the lousiestdriver in the world, and he’s the best, soI just let him do the job.” The victoryearned Lisa America an invitation to Sweden’sElitlopp in Stockholm on the lastSunday in May. Good to see you back ontop again, Lou. As Lisa America won ina mile rate of 1:55.7 over the 5/8ths miletrack in Bjerke, beating the favored Maharajahby a length and a half, Canada’sDefine the World finished third for Canadianreinsman Paul McDonnell. EnoughTalk, owned and trained by PeterKleinman and driven by Luc Ouellette,was off form, finishing last.IT’S NOT OVER TIL ITS OVERYogi Berra got credit for this one, as he didso many, and it’s applicable again in NewHampshire, where you may have thoughtthe chance of slots at Rockingham Park wasdead. So did we, but no, a spark of hopestill glimmers there, as the state Senate approved,as part of a $283 million budget,10,000 slots at four locations still not identified.Agreement is needed from the House-- not too likely -- but persistent slots backerand Senate Finance Committee chairmanLou D’Allessandro said, “It’s this vehicleor nothing.” The two houses have 10 daysto reach accord before a June 2 vote.AROUND THE CIRCUIT.....In what could be the first retreat of its successfulcareer, Betfair has announced it isleaving the French market because of newgambling laws on interactive betting....Owner Daniel Waxman has lost his appealagainst the Kentucky Horse Racing Authority.The Kentucky Court of Appealsupheld the positive flunixin test of Waxman’schampion filly Loyal Opposition atthe Red Mile five years ago and ordered the$80,000 purse redistributed, with GlowingReport declared the winner. Trainer ErvMiller was fined $250 and veterinarian Dr.Rick Mather fined $1,500 for administeringflunixin to three Waxman horses. Waxmanhad argued the racing commission’s actionat the time was unconstitutional.....Dr.Ed Allred has resigned as president/chairmanof his Los Alamitos quarter horsetrack.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, May 18, 2010NYRA HINTS THE END IS NEARAs horsemen’s rumors swirled arounda story that the New York Racing Associationwill shut down operations after itsstarless Belmont Stakes on June 5, NYRAissued a release suggesting it was a possibilityunless an impasse over a $17 millionloan from the legislature was approved.NYRA’s release said its “current cash positionwill not allow us to make it throughthe entire Belmont Park race meet. Weare in discussions with the State regardingpotential avenues for us to acquirefunding, including the $17 million currentlyowed to NYRA by New York CityOTB.” So far, the threat “has had littletraction in the legislature,” according towriter Patrick Donges in The Saratogian.The likelihood that the Senate and/or Assemblywould allow thoroughbred racingin New York to shut down is remote, andyou can still expect the hero to snatch themaiden from the tracks as the train bearsdown upon her.The Saratoga County Chamber of Commerce,meanwhile, authorized its attorneysto file a unique suit against NewYork state, saying the state was in defaulton enforcing state law guaranteeing aminimum of 24 days of racing. Joe Dalton,president of the Chamber, said thestate was supposed to start giving NYRAmoney a year ago -- April 1, 2009 -- if anAqueduct racino had not opened bythen. You know what happenedsince then.DOVER TABLE GAMES IN JUNEHTA member Dover Downs, flourishingwith its racino operation, expects toopen its table games operations late nextmonth, and follow in July with a thirdfloor poker room. The center of the mainracino floor has been cleared of slots tomake room for 40 tables featuring craps,roulette, blackjack, baccarat, and pai gowpoker. Former simulcast space also is beingutilized in the retrofitting, which willinclude Texas Hold-em poker in a CrownRoyal Poker Room on the redone thirdfloor. Already operating in a fourth floorfacility known as Trackview Slots are sixpopular $5 and $10 electronic blackjackgames and 94 slots moved there from theracino floor. The track expects to hire andtrain 200 new racino workers.PRAIRIE TAKES DEEP BREATHThat sigh of relief from the midwest isHTA member Prairie Meadows relaxingin its spacious track and racino inAltoona, Iowa. State regulators rejectedgambling licenses for new casinos in FortDodge, Ottumwa and Tama counties, andPrairie Meadows CEO and HTA directorGary Palmer says their wise action preventsa loss of between $21 and $25 milliona year to Prairie’s gaming operations,which reached $193 million last fiscal year.Palmer told the Des Moines Register newcasinos would have cut $4 million a yearPrairie gives to area charities, cost moneyfor the city and Polk County governments,and ended 100 racino jobs.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, May 19, 2010DID YOU THINK OTHERWISE?Of course Gov. David Paterson of NewYork has announced his office is workingon a new bill to save the New York RacingAssociation. You didn’t really thinkany major politician in the state wouldallow New York to lose horse racing, didyou? The new bill, designed to providebetween $17 million and $25 million toNYRA to save its Belmont and Saratogameetings for the summer, could be introducedby next Monday, either as its ownor as part of a budget extension, accordingto a story by Albany Times Union’sJames M. Odato and Leigh Hornbeck.Paterson was quoted as saying “lawmakershaven’t committed to it, but we haveit ready. I think they’ll pass it.” He saidNew York state will not allow horse racingtracks go dark. He could have added,but did not, “particularly in an electionyear.” Charles Hayward, president ofNYRA, said $20 million was needed tosave the summer classic meetings, a figurehe called “a small amount given the$90 million NYRA and OTB pay in taxesand fees to the state each year.”DRAZIN NEW NJ CHAIRMANGov. Chris Christie of New Jersey has appointedDennis Drazin, an attorney andspokesman for thoroughbred racing inthe state, as a member and new chairmanof the New Jersey Racing Commission.Drazin replaces commissioner JohnTucker.FRANK GETS HEARING TODAYBarney Frank of Massachusetts gets topush his Internet betting legalization andlicensing bill, H.R. 2267, today beforethe House of Representatives’ Ways andMeans Committee, along with bills thatprovide a framework for regulated Internetgaming, including taxing it. H.R. 2268proposes a 2% federal “Internet gamblingfee with IRS notification of winners,” andH.R. 4976 would allow state governmentsto collect a 6% tax. Assuming all forms ofgambling, including sports betting, wouldbe covered, a gaming consultancy group,H2 Gambling Capital, predicts the proposalswould raise $58 billion for the governmentby 2015 and create some 32,000jobs. Focus on Family Action, whichstrongly opposes legalization of Internetbetting, calls it a measure “decriminalizingan addictive, predatory vice in orderto exploit more citizens for more money.”Mr. Frank calls the existing Bush administrationban on Internet gambling “aninappropriate interference on the personalfreedom of Americans.”BIG CLASS TO CANADIAN HALLIt’s a big class of ten new names for theCanadian Horse Racing Hall of Fame, includingfive from harness racing: AmericanJoe Muscara’s Mr. Big, second richestpacer of all time with $4.08 million earned;trainer Bob McIntosh; breeder Peter Heffering;trotter A Worthy Lad; and ClassicWish, dam of pacing stallions Bettor’sDelight and No Pan Intended.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, May 20, 2010FIFTH TRY FOR BIG A RACIN0Five bidders are back on the trail seekingthe Aqueduct racino franchise, and accordingto Crain’s New York Business, lastweek’s state request for proposals generatedmore than 120 questions for clarificationfrom the New York Lottery, whichis supervising this selection round. Of thefive, only one, Penn National Gaming, admittedasking questions before jumping inthe pool, which this time around requiresa refundable $1 million entry fee due byJune 1. Penn National’s spokesman, seniorVP of public affairs Eric Schippers,said the Pennsylvania-based gaming giantwas “awaiting additional informationprior to deciding whether or not to participate.”Three other losers presumablyare back from the fourth round of biddingthat ended with the winner, the scandaltaintedAqueduct Entertainment Group,being disqualified. The three were SLGreen Realty, Delaware North -- anotherformer winner that couldn’t producethe $300 million upfront payment -- andThe Peebles Corp., another realty outfit.All three declined to comment when contactedby Crain’s. The Lottery divisionwill score the applications, which mustbe submitted by June 29, and its recommendationsare supposed to be bindingon the governor, Assembly Speaker SheldonSilver, and Senate Majority ConferenceLeader John Sampson. All three ofthose state powers must sign off onthe Lottery winner. We’ll see.NEW RULES IN OHIO, TOORules for Ohio’s coming casinos were announcedthis week in the Ohio House, andwill require reconciliation with the Senateversion of the regulations. Hearingswere held yesterday. The House versionrequires plans to hire minority contractorsand buy goods and services fromOhio companies, and specify which jobtrainingprograms will get receive taxbreaks from $200 million in expected regulationfees. Both House and Senate billsban round-the-clock booze, as well as freedrinks for customers. The legislation inthe Democratic House calls for $70 millionin Urban Workforce funds for grantsthat provide Ohio companies wherewithalto hire unemployed Ohioans, and $60 millionfor the state’s Co-Op Internship program,which provides students with actualworkforce experience in their fields in aneffort to encourage them to stay in Ohio.The House also proposes setting aside $60million for the Ohio Workforce GuaranteeProgram hoping to avert layoffs andspur training resources to Ohio companies,and $10 million for a new programcalled Build Your Own Business, whichwill work with the state’s Small BusinessDevelopment Centers, community collegesand adult career centers to help thestate’s unemployed start their own businesses.Both bills will charge a $2 millionapplication fee to get in the game and inexpensiveliquor licenses good for 5:30a.m. to 2:30 a.m. 21-hour operation.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, May 21, 2010NJ SENATE PULLS SPORTS BETThe New Jersey Senate, scheduled to votelast evening on a resolution to allow sportsbetting if the federal ban on it is relaxedor removed, changed its mind. Two keysponsors of the bill, Senators Ray Lesniakand Jeff Van Drew, said after the issue waswithdrawn that they hope to go forwardwith the vote on June 10. A decision bythe National Football League on a possibleSuper Bowl in 2014 in the new MeadowlandsStadium, due next Tuesday, appearedto hang heavily over yesterday’sscheduled vote. Lesniak, however, deniedthat and said a fractious debate over taxingthe rich was the issue that delayed lastevening’s vote. Gov. Chris Christie’s officewould not comment, saying the governorstill was waiting to see the citizens’advisory report due shortly on gamblingin New Jersey.“LET’S STUDY THIS MORE”After spending nine months studyingthe issue, a 15-member governor’s gamingstudy commission in New Hampshirecame up with this recommendation:let’s have another round of study. Whoknows? New Hampshire may be enviousof the record set in New York, where considerationof who gets what in the Aqueductracino deal now is in its ninth year.The New Hampshire group did take noticethat while caution is best, delay whileMassachusetts moves forward onthe issue could cost New Hampshire$60 million a year.Gov. John Lynch’s office said the governorhad not yet had time to read the 175-page commission report, but restated hisintention to oppose gambling unless thereport could show it would not hurt NewHampshire’s quality of life. The reportmay be of questionable value to the governor.One of its recommendations reads,“If policy makers do decide to expand legalizedgaming, what matters is how carefullythey do it -- not how quickly.” Ninemonths of study can produce some reallyprofound findings. Another projects thata hotel and racino at Rockingham Park,at a 39% tax rate, would produce $220million a year, or $150 million a year ifMassachusetts moves forward.OHIO GOV, HORSEMEN, MEETOhio’s harness and thoroughbred horsemenhave arranged a face-to-face, questionand answer session with their governor,on Sunday, June 6. The discussionwill be held at Eutrophia Farm, in Chesterlandin northeast Ohio.MONMOUTH A MILLION A DAYThe New Jersey Sports and ExpositionAuthority launches its huge “less is more”experiment tomorrow at MonmouthPark, and all signs are bright green andgo. Thoroughbred racing dates have beencut from 141 to 71 this year, enabling thesummer meet starting tomorrow to offer$1 million a day in purses. $5,000 claimerswill race for $30,000, stakes horses for atleast $100,000, and the nation’s topstables are responding to the lure.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, May 24, 2010AROUND THE TRACKS.....ROCKINGHAM PARK is facing a newchallenge, this time from new rules governingbudget negotiations in the NewHampshire legislature. The Senate President,Sylvia Larsen, and House Speaker,Terie Norelli, signed an agreement lastweek intended to bring unanimity betweenthe two bodies that would includeeverything they had already agreed onbut would exclude video slots. The HouseFinance chairwoman, Marjorie Smith,said slots fall outside the agreement. Givenstrong past opposition from the Houseon the slots issue, it appears any agreementon that issue could be reached thatmight add slots to gubernatorial consideration,according to the Boston Herald.Slots backer Lou D’Allesandro, chairmanof the Senate Finance Committee,disagreed. “The only two people boundby that agreement are the Speaker of theHouse and President of the Senate. Noone else voted on that. There was neverpublic discussion on that,” he told theHerald.ROSECROFT RACEWAY’S hopeful suitorMark Vogel says he still seeks to finalizepurchase of the track, despite refusal of abankruptcy judge to approve the sale, althoughhe has no strategy at the momentin the face of no simulcasting of thoroughbreds,no live racing, and no card games.Backstretch employees, meanwhile,are fighting eviction.MONMOUTH experiment is a smash hit.Monmouth Park’s first two days of racingunder a drastically shorter season -- 50days instead of 141 -- with dramaticallyhigher purses -- a million dollars a day onaverage -- produced stunning increases inattendance and handle. Opening day’shandle Saturday of $9,357,444 more thandoubled the same day a year ago, when$4,279,438 was bet, and attendance of17,903 was up 74%. Sunday saw handleup 126% over a year ago at $7,046,389.Field size for the first 24 races was 9.62starters a race, compared to BelmontPark’s 7.45. Monmouth will race onlythree days a week, and general managerBob Kulina said after the first two days,“Everywhere I go around here, there’s excitement.”On the opposite coast, meanwhile,HOLLYWOOD PARK cancelledWednesday’s racing card because of lackof entries.MOHEGAN SUN AT POCONO DOWNSwill take its latest step forward June 11when it opens a new gaming room calledPenny Grove featuring 300 penny slotmachines. The machines are being movedfrom the main floor of the track’s racinoto make room for 83 table games includingblackjack, craps and roulette. Thetable games will add nearly 600 jobs.The NEW YORK RACING ASSOCIA-TION, in accordance with state and federallaw, has notified its employees ofpossible layoffs on June 9.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, May 25, 2010MAIDEN SAVED FROM TRAINYou know the plot by heart. As the trainbears down on the fair maiden tied to thetracks, the hero sweeps in and scoops herup. The villain, in the wings, twists hismustache and mutters, “Curses, foiledagain.” The governor of New York playedthe lead role yesterday, with the help ofhis legislature, when they joined forces towork out arrangements for a $25 millionloan to keep the New York Racing Associationrunning the rest of the year. Whenlabor unions representing workers at NewYork City OTB threatened to disrupt therescue, complaining NYRA was gettinghelp but they weren’t, a quick Plan Twowas put in effect, adding the relief measureas a budget extension rather than astandalone bill. NYRA, or whoever getsto run the Aqueduct casino, will pay the$25 million back from the 4,500 slots thatwill be operating at Aqueduct sometime,under someone, and then be repaid byNYRA or a redirection of NYRA’s shareof the slots revenue. The vendor, still unknownof course, after nine years, will get$250 million from bond sales to help buildthe racino, less the $25 million paybackfrom its slots. That really represents upfrontmoney, because there is a deadlineof March 31, 2011. The Empire StateDevelopment corporation, meanwhile,would take enabling action to repay theloan within 30 days after the state officiallysigns a deal with the successfulvendor. Late, but neat and natty.5 HORSEMEN OUT AT HAZELharnessracing.com reports this morningthat five harness horsemen have beentossed out of Hazel Park in Detroit, suspendedindefinitely, presumably as a resultof a three-month investigation intocharges of race fixing. The suspensionsand exclusion came after the five refused toproduce financial records for the last twoyears requested by the Michigan GamingControl Board. The report identifiedthe five as Don Currier Jr., Don Harmon,Wally McIlmurray Jr., John Moody andRick Ray. Three others, including driverArt McIlmurray and two unidentifiedowners, were suspended in March whenthe investigation was first announced.OUTRAGE IN CHICAGOThe chairman of the Illinois GamingBoard, Aaron Jaffee, was reported in thismorning’s Chicago Tribune as calling aHouse committee vote yesterday “a disaster,”and saying power plays in the statecapital at Springfield were the result of“listening to the wrong people.” One ofthose being listened to is reported to beJoe Berrios, chairman of the Cook CountyDemocratic party and a candidate forcounty assessor, lobbying for the IllinoisCoin Machine Operators Association.The bill in question, H.B. 4927, wouldrequire a felony conviction on gamblingcharges before the gaming board coulddeny a license. The measure went to thefull House on a 9-2 vote.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, May 26, 2010FIRST IN THE FIRST STATEThat was the proud pronouncement fromHTA member Harrington Raceway as itbecame the first racino in Delaware to introducetable games. Harrington did sowith a “soft opening” that featured lowerbet limits from 2 p.m. to 10 p.m. until Friday,when a grand opening at noon willkick off 24-hour nonstop operation thatincludes blackjack, craps, roulette anda wide variety of exotic forms of pokerincluding Ultimate Texas Hold ‘Em, PaiGow, Let It Ride, Casino War, three-cardand traditional Texas Hold ‘Em and minibaccarat. Horsemen at Harrington willreceive 4.5% of table game revenues.In another Delaware development, inGeorgetown, annexation of a 78-acre casinoand entertainment complex, includingrestoration of the old Georgetown Raceway,shuttered for decades, will be votedon by the town council next month. Theplan, which proposes 51% of racino profitsto charity, has faced opposition in thestate legislature and also is likely to fallunder a six-month moratorium in SussexCounty, where it is one of three proposalsvying for two possible licenses in thestate, both of which would compete withexisting casinos in little Delaware.JON KYL STILL HOLDING OUTWith the Unlawful Internet GamblingEnforcement Act due to go into effectJune 1, Arizona Senator Jon Kyl isinsisting on no further delays.The million-member Poker Players’ Alliancehas been pushing hard for anothersix-month extension in implementation.Kyl’s former Senate colleague AlphonseD’Amato, representing the Alliance, metwith Kyl but came away unsuccessful asKyl insists on getting the George Bush billput into effect.WAIT ‘TIL NEXT YEARThat was the old Dodgers’ battle cry whenthey were the Brooklyn Dodgers years ago,and now it is the rallying hope of harnessand thoroughbred horsemen in Illinois.They were turned down by Illinois SenatePresident John Cullerton, who told themstraight out he would not call a pendingslots-at-tracks bill now in this electionyear. They were heartened by what theyconsider a commitment from Cullerton toallow a Senate vote after the elections inNovember.HARRAH’S BARGAIN BUYLast year Harrah’s Entertainment let anoption expire to buy Thistledown in Clevelandfor $89.5 million. It was a smart decision.Yesterday they bid $43 million forthe track at a MI Development auction inNew York, and got it, according to a reportby writer Tom Lamarra on bloodhorse.com. He also reported that the three remainingprivately-owned tracks in Ohio-- Northfield Park, Lebanon Raceway andRiver Downs -- were expected to completea clean sweep of casino partnership ownershipof tracks in the future.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, May 28, 2010HARNESS SHOW KICKS OFFHarness racing’s first national radio show-- the hour and a half debut of the 11-weekseries Saturday Night at the Races, kicksoff tomorrow night at 9:30 eastern timeon Sirius Channel 126 and XM Channel243. Co-hosted by New York Times andESPN racing writer Bill Finley and formerABC Sports race caller Dave Johnson,and including analysis by all-aroundowner-trainer Peter Kleinheins and commentaryby Harness Tracks of Americaessayist Stan Bergstein, the first show willinclude coverage of the $500,000 HoosierCup for pacers from Hoosier Park in Indiana,the $500,000 Upper Canada Cupfor pacers from Georgian Downs in Ontario,and previews of Sunday’s Elitloppfrom Kleinhans in Stockholm, wherehis trotting champion Enough Talk willbe racing in that European classic. Theseries has been made possible by grantsfrom Brittany Farms, Empire Casino atYonkers Raceway, Hanover Shoe Farms,Indiana Breed Development, PerrettiFarms, Tioga Downs and Vernon Downs,and Woodbine Entertainment.THE ENEMY AT THE GATESTwo strong legislative voices for AtlanticCity casinos -- State Senators StephenSweeney and James Whelan, the formermayor of Atlantic City -- have urged anend of the $30 million annual subsidy ofthe New Jersey racing industry byAtlantic City big money casinos.The two, speaking as a daily double at theEast Coast Gaming Congress in AtlanticCity, called for an end to the negotiatedagreements when they expire early nextyear. Sweeney said, “I don’t think casinosshould be spending $30 million onhorseracing. They should be spendingit on promoting the casinos.” Whelan,now chairman of the New Jersey wageringand tourism committee in the Senate,also said he would oppose continuation ofthe agreement. Tom Luchento, presidentof the harness horsemen of New Jersey,called the Senators’ remarks “off-base”and told the Congress that if slots wereallowed at the Meadowlands they couldraise as much as a billion a year for the racingindustry, which he said keeps 13,000people employed in the state. Luchentosaid the horsemen’s legislative efforts toget slots at the tracks would continue,and that he did not think all legislatorsshared the views of Whelan and Sweeney.“What they want to do,” he said, “is totry and stomp out the horse racing business.As soon as we were done for, they’dmove right up there (the Meadowlands).It’s clear that if we weren’t in their way,they would move in.”TIOGA HOLDS SCHOOL RACESStudents from five surrounding area highschools are training with professionalhorsemen at Tioga Downs in preparationfor a Sunday, June 13 race with $7,500 inscholarships to the top five finishers.

HARNESS TRACKS OF AMERICAHOOSIER RAISING PURSESHTA member Hoosier Park Racing &Casino announced a 15 percent purse increaseeffective Sunday, May 30, according to a companyrelease. The increase will remain in effectfor the remainder of the harness racing season,which ends July 11. The increase will apply toall overnight purses. “As we head into the final30 race days of Standardbred racing for 2010,we are pleased to announce a purse increasefor all of our overnight races,” Jeff Smith, generalmanager of racing, said. “Business levelshave exceeded our expectations during the first47 nights of racing, allowing us to reward ourhorsemen.” The Hoosier Park purse structurewas already greatly elevated by added moneyfrom casino operations heading into the 2010meet; with the just announced increase includedtotal purse distribution for the racing seasonnow will average over $142,000 per day. “Thisincrease is a great example of the significantgrowth in our Indiana horse racing industry,”Smith said. “Hoosier Park has worked closelywith the Indiana Standardbred Association andhorsemen throughout this process. We appreciatetheir hard work and support for our racingprogram.”RUNNING ACES OPENS STRONGThe third racing season at HTA member RunningAces Harness Park began with track recordhandle on nine action-packed races. A crowd of2,500 greeted the return of live racing to the Columbus,MN, track.SIX VIE FOR AQUEDUCT VLTSTom Precious, the stalwart Albany bureau chieffor the Buffalo News and New York correspondentfor the Blood-Horse, reports today in anarticle posted on BloodHorse.com thatsix groups have ponied up the $1 millionentry fee to join the re-bidding processExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondPaul J. Estok, EditorWednesday, June 2, 2010to operate VLTs at Aqueduct Racetrack. Prospectivebidders had until yesterday to comeup with the money, which they were required todeposit with the New York Lottery commission.The groups who posted the required bond includePenn National Gaming, SL Green RealtyCorp., Delaware North and partner SaratogaGaming and Raceway, Clairvest Group, EmpireCity Casino (a Yonkers Raceway group, and agroup known as Genting New York, which Precioussays is “tied to a big Asian casino group.”The next steps will include a mandatory bidders’conference on June 8 and the submission of proposalsfrom vendors by June 29. New York officialshave said they expect to make a selectionby August 3 of this year.BULLETPROOF SUES NJ COMMharnessracing.com is reporting that JeffreyBrooks and the Bulletproof racing stable fileda complaint dated May 12, 2010, against FrankZanzuccki, executive director of the New JerseyRacing Commission and its members, both individuallyand in their capacities as officials of theracing commission. The story, by Steve Kallas,quotes the complaint as accusing defendants ofnot allowing Brooks and Bulletproof to race theirhorses in New Jersey by suspending their licensesin February of 2010. Plaintiffs are reportedlyseeking damages of at least $6 million and “aninjunction forever and permanently enjoiningDefendants, acting by and through the Commission,from interfering with Plaintiffs’ completeand unfettered ability to exercise all rights availablein accord with the licenses they have beengranted.” Brooks and Bulletproof appealed theFebruary suspension and while a hearing beforean administrative law judge has not taken place,the judges at Freehold held a hearing in April inwhich the panel sustained the previous suspensions.The lawsuit followed the judges’ findingby a matter of days.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, June 3, 2010TROUBLE IN MASS SENATEHopes for slots at tracks in Massachusetts-- a roller coaster ride -- took a newdip yesterday with the announcement ofa Senate plan to approve three casinosin the state, including one for an Indiantribe, but continue the ban on track slots.The plan means a coming battle in thelegislature, where House Speaker RobertDeLeo immediately announced he willpush forward with his plan for both casinosand 750 slots at each of the state’sfour racetracks. The Senate proposal wasannounced by Democrat Stanley Rosenberg,who said track slots would “glut themarket.” The DeLeo plan, which wouldrequire $500 million in private investmentfrom the resort casinos and $75 millionfrom each of the tracks, passed theHouse decisively, and DeLeo says he willcontinue to support it despite likely oppositionfrom Gov. Deval Patrick, who favorsthe Senate idea but has not said hewould veto the House measure if it prevailed.The opposing views also portend aserious dispute in the economically devastatedcity of Fall River, where one factionwants the immediate action of track slotswhile another favors using land intendedas the site of a massive biotech project forconstruction of a resort casino instead.The biotech idea was well underway, withstate funding and university support andparticipation. The state indicated itwould demand its money back if theidea was abandoned for a casino.NJ BLAMES THE TRACKSThe New Jersey Sports and ExpositionAuthority has lost, or is losing, its professionalsports tenants at the Izod Arenaand Giants Stadium, but the state auditoris blaming the Meadowlands’ and MonmouthPark’s losses as the reasons forneeding a $32.9 million state bailout. TheNBA Nets already are gone, departed forNewark and ultimately Brooklyn when anarena is built there. The Red Bulls soccerteam has moved to Harrison. And the Giantsand Jets will play in a new, privatelyoperated stadium with greatly reducedlease payments of $6.3 million instead of$20 million they previously contributedto the sports authority. The future of AtlanticCity casino subsidies, up this year,also remains in doubt. The Authority hascut its payroll by $1.3 million since lastfall and is working on other operationalcuts.SIX PUT UP MILLION FOR BIG ASix bidders have deposited a million dollarseach with the New York lottery divisionto enter the competition for the franchiserights to a racino at Aqueduct RaceCourse. The six, who have until late thismonth to finalize bids, include a surpriseentrant in Yonkers Raceway and its EmpireCity casino. Others are Penn NationalGaming; Delaware North with its SaratogaGaming and Raceway; Clairvest,the financial arm of the former disgracedwinner AEG; SL Green Realty; andthe Asian gaming giant Genting.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, June 4, 2010ONTARIO REVISES CLAIMINGThe Ontario Racing Commission, “respondingto calls from the industry,” haschanged its claiming rules for harnessracing. The ORC has eliminated a rule,in effect for the last eight years, that aclaimed horse be entered back for a price20% higher than its claimed price for aperiod of 15 days. The commission said acall to act on the rule was received “froma variety of sources” and that while thehealth and welfare of the horse still wasof paramount importance, changes in theindustry since 2002 make the change acceptableand advisable. Those changesinclude greater emphasis on reviewingchange of performance; out of competitiontesting; a requirement to use veterinarianslicensed by the ORC; newrequirements for keeping records of vetwork and medications; more restrictiverules on use of medication and strongerpenalties for violations; and other measuresto ensure the welfare of the horse.Woodbine Entertainment Group and thecentral Ontario horsemen’s associationsupported the change.In another Ontario development, the Universityof Guelph will collect 200 pre-raceand 200 post-race blood samples from agroup of harness horses, thoroughbredsand quarter horses for a major study intohemoglobin levels in horses racing in Ontario.The program has the supportof the commission and the Medicationand Control Advisory Group.HIGH COURT OKS ONLINE BANEurope’s highest court, the EuropeanUnion Court of Justice in Luxembourg,has ruled that European Union countriescan ban online gambling if the intent is tocombat fraud. Reuters calls the decision“a blow to the multi-billion-dollar onlinebetting industry that has been seeking tobreak domestic monopolies.” The decisioncame in a case in which De Lotto, aDutch non-profit foundation that offersgames of chance, asked a Dutch court tostop Dutch residents from using the servicesof British bookmaker Ladbrokes,which is not licensed in the Netherlands.The Dutch Supreme Court earlier ruledfor De Lotto, and asked the Court ofJustice to rule whether its decision conformedwith European law. Betfair alsochallenged the Supreme Court ruling.SINATRA WILL WIN THIS ONEWe hesitate to handicap tomorrow’s Belmontstakes, but predict a public uprisingwill overturn Belmont Park’s decision toreplace Frank’s New York, New York withJay-Z’s Empire State of Mind as the Belmontsong. That’s like running a cheapclaimer against a top handicap horse.NO HAPPY ANNIVERSARYToday, June 4, is June and HTA executivevice president Stan Bergstein’s 60th weddinganniversary. It is hardly a happyone, however, as June lies in a deep comain a Tucson hospice from a devastatingabdominal sepsis infection.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, June 7, 2010NY GOV TAKES OVER NYCOTBWith the resignation of Meyer (Sandy)Frucher as chairman of New York CityOff-Track Betting Corporation, Gov.David A. Paterson has effectively takenover by appointing his top aide, LawrenceSchwartz, who holds the title ofsecretary in the administration, to runNYCOTB. Schwartz, described in theNew York Times as “the office’s disciplinarian,”will continue to serve in his Albanyposition, indicating the decision ofPaterson to keep a close hand on developmentsin New York. The final blow toFrucher’s administration came when thestate budget director, Robert Megna, refusedhis request for almost $300 millionin tax-free municipal bonds to finance hisrestructuring of OTB. Frucher referredto the letter of refusal in his resignationnote to Paterson, saying it had made hisposition untenable. The veteran politicalwriter Tom Precious, writing in Albany,said Frucher had “created a laundry listof foes in the state capitol and within theracing industry over his ideas for salvagingthe nation’s largest off-track bettingenterprise.”OHIO HORSEMEN MEET GOVOhio harness and thoroughbred horsemen,almost 400 strong, met with theirgovernor, Ted Strickland, yesterday andreceived vows of support from him fortheir quest of slots at tracks. Whatthat will mean in the Novemberreferendum vote is uncertain.EAVES NEW WOODBINE CEONick Eaves, president of Woodbine EntertainmentGroup, now has taken overas chief executive officer as well. DavidWillmot, CEO for the last 15 years, saidin turning over the reigns of managementto his chief aide, “It is a luxury for anycompany to be in the position to promotea new CEO from within. The board hasgreat confidence in Nick’s ability to leadour company in the years ahead at a timewhen our industry, like others, is facingsignificant challenges. Nick’s experiencein so many aspects of our company’s operationsand his demonstrated vision andgood judgment will stand this companyand our industry in good stead.” Eaves,in accepting the post, said, “It is a greathonor for me to follow David as CEO ofWoodbine Entertainment Group. He hastransformed the company into the recognizedleader in the North American horseracing industry. I intend to continue thatperformance and lead our talented teamin new ways to confront today’s challenges.”TWO POPULAR FIGURES DIERacing has lost two of its leading citizens.Norm Barron, former member of the OhioRacing Commission and a prominent Cincinnatiattorney and horse breeder, was74. Renee Rosenzweig, wife of AmericanTeletimer president Joel Rosenzweig, diedlast week after a long battle with cancer.HTA extends its sympathies to thefamilies of two of its closest friends.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, June 8, 2010JUNE BERGSTEIN DIES AT 84 Gabriel, California, where he was working at theWestern Harness meeting at Santa Anita. She issurvived by Stan; their son Al, who retired fromMicrosoft after 10 years to found MountainstoneProductions, a video documentary firm, in PortTownsend, Washington; their daughter Lisa,married to Dr. Craig Tremback, president ofAtmet, an international atmospheric and meteorologicalfirm in Lafayette, Colorado; and fourgrandsons. Funeral services will be private. Memorialcontributions may be made to the HTACollege Scholarship Fund and sent to HTA, 4640E. Sunrise Drive, Suite 200, Tucson, AZ 85718.June Carol Bergstein, wife of HTA Executive VicePresident Stan Bergstein, died early this morningat Hospice Family Care in Tucson, four daysafter the couple’s 60th wedding anniversary.A regal and elegant popular model in her youth,June had worked at Mme. Marguerite Pick’sMichigan Avenue salon in Chicago, for GeneralMotors and J. L. Hudson in Detroit, and for thefamed Ford Agency in New York. She studiedopera in Chicago with the renowned sopranoand teacher Rosa Raisa, before hermarriage to Stan on June 4, 1950, in SanNEVER-ENDING PLAY IN NHThe legislative dispute over gaming at tracks inNew Hampshire, which seemingly is a dramawithout end, continues this week with a specialsession of the legislature. Norma Love, whoseAssociated Press story appeared in the NashuaTelegraph, put it best when she wrote, concerningwhether slots would or would not play a role inmeeting the state’s projected $295 million budgetshortfall, that a lantern was needed in the Statehousedome, to indicate by “one lantern if videoslots is in the budget bill or two if it is out...giventhe two chambers’ distrust of one another, anythingcan happen Wednesday,” when the issue isdue to be debated. An “informational session” isscheduled for today. The Senate wants slots; theHouse and governor do not. With HTA memberRockingham Park’s future at stake, even passagecould be vetoed by Gov. John Lynch. Thiswould appear to be the final act in the long-runningmelodrama.ALL CASINOS NOT WINNERSOne that is not is the Majestic Star in Gary, Indiana.The rough, tough steel city says the casinoowes it $21.9 million in property taxes, andthinks the Indiana Gaming Commission shouldnot renew its license. The casino says it hasappealed its assessed value.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, June 9, 2010MILLION GETS YOU ANSWERSThey not have been the answers you werelooking for, but the six bidders for the Aqueductracino license who tossed anotherrefundable million each in the ring yesterdayto play at least got answers fromGordon Medenica, director of the NewYork Lottery, who is chairing the evaluationcommittee that will determine thewinner of the high stakes game. Five ofthe six bidders had questions, with thesixth -- Clairvest, a Canadian partner inthe rejected Aqueduct Investment Groupthat was the winner and then the loser inthe second round of bidding -- remainingsilent. The primary concern expressed bythe others, or at least by Penn Nationaland Delaware North, the latter winner ofthe first round of bidding but unable todeliver the cash, related to the possibilityof Indian gaming competition on LongIsland and taxes on the Aqueduct racino,which Delaware North said could run ashigh as $10 million. The five respondingreflected fears of losing their $300 millionup-front payments if they won andwere unable to sign a contract because ofdifferences over details. Tim Rooney Jr.,counsel for Empire City (Yonkers Raceway)told the Lottery panel Yonkers was“not committed yet until we evaluate therisk.” Medenica made clear the risks werethere, saying bluntly “the prime beneficiaryis the state, not the operator.”The $300 million upfront paymentsare due June 29.PROS AND CONS IN BOSTONA key Senate committee in Massachusettsheld a public hearing on legalized gamblingyesterday, and the voices in supportand in opposition were loud and clear. Adelegation of teamsters, wearing brightorange shirts, made their presence andviews known in support of a Senate billcalling for three casinos and no race trackslots, with two of the casinos awarded bybidding and the third going to one of twocontending branches of the same Indiantribe. One senator demurred, saying theSenate bill without slots at tracks actuallywould cost jobs, not add them, a key issuein the debate. That senator, DemocratMarc Pacheco, said the adoption ofthe Senate proposal would cost 600 to 800jobs at state racetracks “almost immediately.”House Speaker Robert DeLeo,meanwhile, remained adamant that anylegislation include slots at the state’s fourracetracks, a bill the House has passed.DeLeo did say he was “open to discussion”on the issue.ONTARIO COURT OKS US VIEWIn an interesting Canadian decision, theOntario Court of Appeals upheld the rightof the U.S. to enforce Illinois regulationson Canadians who illegally sold lotterytickets to U.S. buyers. The decision overturnedan earlier contention by an Ontariojudge in the eight-year-old case that theCanadians could not get a fair hearing inthe U.S. A U.S. federal judge had approveda $19 million fine.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, June 10, 2010OCEAN CLOSES FOR 2010Another track has ended racing, but thisone happily just for the 2010 season. OceanDowns in Berlin, MD, has announced itwill not be able to conduct its 40-nightsof harness racing because of the demolitionof its grandstand and constructioninvolving a new racino. Chief OperatingOfficer Bill Fasy said conditions were unsafefor viewing, but that Ocean plannedto be back with a new viewing area nextsummer. “We just don’t have all the bellsand whistles for watching races this year.The track is not safe for that.” On thelast four Saturdays in August, OceanDowns will host the Maryland StandardbredStakes, with spectators limited to theclubhouse for daytime racing with no betting.Ocean’s horsemen, without a trackon which to race, have been hoping foran arrangement with Rosecroft Raceway,but no plans have been completed.MD BEGINS BUYING SLOTSAfter years of talk and tangled battling,Maryland has taken its first steps at actuallygetting slots betting underway, andeven that was controversial. The stateBoard of Public Works approved, by a2-1 vote, a $49 million contract with sixdifferent vendors for lease or purchaseof 1,062 slot machines. The units are intendedfor the Penn National operationin Perryville in Cecil County in westernMaryland, and the state boughtthem to provide greater oversight,a decision made three years ago.WOODBINE ON THE MOVENew Woodbine CEO Nick Eaves is losingno time racing forward with plans forthe Toronto giant of racing. The track’sracing products from both Woodbine inToronto and Mohawk in Campbellvillenow are available in racebooks throughoutNevada. With the addition of most ofthe state’s 83 racebooks, including Bellagio,Mandalay Bay, Caesars Palace andMirage on the Las Vegas Strip, Woodbinegreatly increases its image and visibilityin the U.S. Racing from the two Ontariotracks feature some of the biggest purses,best horses and largest fields in NorthAmerica, and the new betting outletscome in time for the richest pacing racein the world, the $1.5 million Pepsi NorthAmerica Cup for 3-year-old colts June26, the $1 million Queen’s Plate for runnersJuly 4, and the $500,000 BudweiserWoodbine Oaks next Sunday. Eaves alsoannounced that he hopes to see Woodbinebecome a sports book when such wageringis approved in Ontario; that Woodbineand its partner, the giant Cordishcorporation out of Baltimore, will breakground on the huge Woodbine Live! entertainmentcomplex on Woodbine’s spaciousgrounds this fall; and that the WEGtracks have entered a promotional dealwith renewal of its long relationship withConnect Equipment corporation, thepurchase of 29 Massey Ferguson tractors,and a night’s outing for 250 employeesof the company at a WEG track.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, June 11, 2010HARRAH’S STOPS NJ BET BILLNew Jersey’s State Assembly RegulatoryOversight and Gaming Committee,which was moving forward with determinationon a bill allowing sports betting,has been stopped cold by objectionsfrom the world’s biggest gambling enterprise,Harrah’s Entertainment. Thebill’s prime mover in the New Jersey legislature,State Senator Raymond Lesniak,expressed surprise and displeasure at thedevelopment involving Assembly Bill 817,which would allow betting on professionalsports, subject to voter approval.“I am really astonished,” Lesniak said,“at Harrah’s that they would continue tofight against New Jersey’s interests in orderto protect their monopoly in Nevadaon sports betting. They have no shape toopenly fight against New Jersey and ourneeds for additional revenues for theirown corporate greed.” Lesniak made nomention of the need for additional revenuesfor racing, to which Harrah’s contributesand participates with its Chesterharness operation. A Harrah’s spokeswomandenied Lesniak’s charges, sayingthe company “is absolutely not delayinga sports betting bill in New Jersey. Theentire New Jersey Casino Association opposesInternet and sports betting.” Shesaid Harrah’s felt that without changingfederal law that prohibits sports bettingeverywhere except four grandfatheredstates, a vote by New Jerseycitizens would be premature.GREAT EXPERIMENT IN JULYPoker, blackjack, roulette and craps willbegin in harness track racinos in Pennsylvaniain July, first with test days on July 6at The Meadows, July 11 at Mohegan Sunat Pocono Downs and July 16 at Harrah’sChester Casino and Racetrack. The tablegames almost certainly will boost pursesat those tracks and will increase employmentsubstantially -- by 500 at Chesterand almost 550 at The Meadows accordingto track officials -- but what they doto betting on racing remains to be seen.OHIO GOV SIGNS, UNHAPPYOhio Governor Ted Strickland has signeda bill that establishes rules for four expectedcasinos in the state, but he did sowith strong reservations. The governoris unhappy over a provision that allowsstate income tax deductions for gamblinglosses. He predicts that measure, whichwill include betting on horse racing, willreduce state budget money by $60 millionto $80 million every two years, starting in2014. Strickland calls the provision “fiscallyirresponsible,” saying it is the firsttime income tax laws have been used tosubsidize gambling losses. He lacks powerto line veto it, but will oppose it.NEW CANTOR DEVICE AT TROPCantor Gaming, which has won the sportsbook contract for the Tropicana in Vegas,will introduce its new mobile device,eDeck, enabling off-floor gambling, thisfall when the book opens.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, June 14, 2010GURAL TO BE NY KEYNOTERMajor harness horse owner and breederand dual track operator Jeff Gural willdeliver the keynote speech at the June 21-22 New York Gaming Summit next weekat Tarrytown, the gateway to upper NewYork state. In printing an advance onGural’s speech, The Saratogian in SaratogaSprings, mentioned that Gural, aprominent New York City real estateowner and manager, is a partner with SLGreen Realty Trust, another real estategiant in New York, and with Hard RockEntertainment, in pursuing the racino tobe built at Aqueduct Race Track. Guralwill hit on several familiar themes in hispresentation, one being that the racingseason is too long and that “all slots havedone at racetracks is increased purses.”He will repeat his belief that stakes shouldbe limited to horses whose sires are fiveyears old or older, which he feels willkeep stallion prospects, stars of the sport,on the race track beyond their 3-year-oldform in order to make their get eligible.Gural also will support the MonmouthPark experiment of shorter seasons withhigher purses. “Every other sport has anopening day and an end,” another favoriteGural theme, will be included in thekeynote address. He says people want tosee stars, citing Zenyatta and Rachel Alexandra,and noting that everyone wantsto see a Lebron James in basketball or thehot new sensation Steven Strasburgin major league baseball.Gural will tell the racing crowd that thedownsizing of New York City OTB is theproper course of action, and that he supportsa bill introduced recently that wouldlegalize full casino gambling at four upstateNew York tracks, including VernonDowns and Tioga Downs, which he operatesand which currently have slots butnot table games. He said, “Now is thetime to do it. New York needs money.YONKERS-BIG M POOL FLYINGThe Metro 6 Shooter, the recently introducedexotic multiple pool combining tworaces from Yonkers and six from the Meadowlands,is producing what some criticsof harness racing have long advocated:big payoffs. A combined bet including the4th, 5th, 6th and 7th race from the Big Mwith the third and seventh from Yonkersacross the Hudson, Saturday night’s BigShooter entire pool of $50,847 was takendown by one astute bettor, who parlayedwinners paying $14.40, $9.00, $18.40 and$24.40 at the Meadowlands with two paying$20.20 and $4.00 at Yonkers. In additionto the one winner who had all sixright, the 6 Shooter also returned $706.20for 24 bets picking five of six. The pool isseeded with $30,000.MERRIMAN HURT BADLYAaron Merriman, the leading harnessdriver in North America with 355 victories,suffered a broken elbow and two brokenwrists in an accident at The MeadowsFriday night when his horse fell.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, June 15, 2010NOW WHAT FOR LONG ISLAND?The U.S. Bureau of Indian Affairs thismorning notified the Shinnecock IndianNation that it has been granted federalrecognition, opening the way for a chanceto offer casino gambling in the rarefiedair of outer Long Island. A federal courtlast fall had ordered the Bureau to issue afinal determination on the matter by June21, and it complied this morning, providing30 days for public comment andobjections to be filed, the latter seemingcertain. Once finalized, the Shinnecockscan legally pursue a casino, and the tribealready has picked one possible site, a95-acre property formerly used for testflights by Grumman aircraft. The tribealso owns 800 acres in fancy Southampton,home of some of New York’s fanciestand most expensive resort homes, and ithas not ruled out the possibility of buildingthere.RI VOTERS GET A CHOICEThe Rhode Island legislature, closing itscurrent session, has provided a choice onexpanded gambling for state residents.Both House and Senate passed bills to allowa referendum on converting the TwinRiver facility in Lincoln and the NewportGrand in Newport into full fledgedcasinos. Both currently offer video slotsand blackjack machines, but would beable to offer table games if the public voteapproves. Twin River once offeredgreyhound racing, but the sportwas banned in RI last year.WHAT’S THIS? OPENING EARLYBuilding projects these days normallyopen late, or rarely on time. It came as ajolt, therefore, to learn that Penn NationalGaming says it will open its new $89 millionHollywood Casino Perryville in CecilCounty in western Maryland on Sept. 30,a month ahead of schedule. The 75,000square-foot facility will house 1,500 videoslots, and will be the first to open in Maryland.Penn National also is scheduled toopen Hollywood Casinos in Kansas Cityand Ohio in 2012.FULL CASINOS BACK AT SPA?If S-8119 picks up traction and getspassed, bringing table games to four upstateNew York locations, it could mark areturn of the good old days for SaratogaSprings. Jeff Gural has been pushing thelegislation, which would put table gamesat his Vernon Downs and Tioga Downs aswell as Saratoga Harness and Monticello,and could restore Saratoga Springs to itsonce-dominant role as a summer gamblingresort and boost the fortunes of theharness tracks, and the state, as well.NO TICKEE, NO LAUNDRY IN ILWinners of major harness racing stakesraces at the Illinois State Fair in Springfieldhave waited a year for their pursechecks. Under those circumstances, theyhave been reluctant to enter this year, andoperators also have been scarce. The possibilityof no racing in Springfield,long a sport stronghold, is likely.

HARNESS TRACKS OF AMERICAROSECROFT QUITS, BITTERROGERS BLAMES RUNNERSRosecroft Raceway, once the pride of Marylandharness racing and a popular destination formajor eastern stables, has called it quits after 61years of racing. A fixture on the eastern racingseaboard since May 26, 1949, when it openedunder the ownership of veteran horseman W.E. Miller and then continued for decades underthe family ownership of his son John andgrandson Bill, the track will close July 1. KelleyRogers, president of Cloverleaf Enterprises,Inc., the horsemen’s association that ownsthe track, informed members of its demise lastnight, lashing out with a bitter attack on thoroughbredhorsemen and the Maryland RacingCommission. Here is the text of Rogers’ letterto his board and members:“It is with regret that I write to you tonight toinform you that Rosecroft Raceway will be unableto apply for an operating license to continuein business at today’s Maryland RacingCommission.“Our long struggle is finally over and we havecome to an end. Unfortunately, despite all ofour best efforts we could not escape the unreasonabledemands of the thoroughbred industry,and they have succeeded in putting us out ofbusiness, their goal finally accomplished. Thereis no doubt the domination of the thoroughbredinterests on the Maryland Racing Commissionhave played a large role in our death. Theirconflicts and behavior are disappointing andbeyond description, but it is how it is.“Many of you have been in this struggle for survivalmuch longer than I have, and to all of youI thank you on behalf of all of our horsemen.Those of us who arrived late in thebattle thank you for your hard work andExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, June 16, 2010want you to know we did the best we could. Ourlawsuits will continue and, hopefully, sometimein the future justice will be done on our behalf –but that is for another day.“All residents of the backstretch will depart asof the 28th and Rosecroft’s last day of operationwill be July 1. I will continue my work asyour president prosecuting lawsuits and workingthrough the Chapter 7 process. We will dothe best we can to keep you updated.“Again, to all of you who have struggled so longto keep Rosecroft alive, I thank you.”HOLLYWOOD CANCELS 2DTIME, SHORT OF HORSESA severe horse shortage has forced HollywoodPark to cancel racing for the second time inits current summer meeting. Only 52 horseswere in the entry box for Thursday, and Hollywoodannounced it would race today but nottomorrow. The track had cancelled its May 26program for the same reason, and is strugglingto fill cards as it moves toward the close of itsmeeting July 18.BLAGO CALLS HIS FORMERCHIEF AIDE A LIARFormer Illinois Governor Rod Blagojevich, ontrial in Chicago for selling favors while runningthe state, listened to his former chief of staff –and roommate in law school -- Lon Monk, testifyunder blistering cross examination today.Blagojevich told reporters it saddened him tohear Lon Monk lying. That was the constantcontention of the prosecution, and Blagojevichsaid Monk’s father must feel shame to hear hisson say things he knew were untrue.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, June 17, 2010POLS WHO KILLED IT NOW SADHouse legislators and other officials inMaryland, who stood by ignoring pleasfor help from Rosecroft Raceway, noware expressing sadness at the demiseof the track. Gov. Mike O’Malley, whostood by during the track’s decliningyears, now says he is “saddened and disappointed”to see the track close, and isasking his secretary of state “to find away forward that can protect the 200 jobsat Rosecroft.” Thomas Cooke, Presidentof the Cloverleaf Standardbred OwnersAssociation, said it is the first time hehas heard O’Malley mention Rosecroftsince he talked about visiting it as a kidduring a Maryland Horse Forum lastyear. State Senator C. Anthony Muse, aDemocrat from Prince George’s Countywhere Rosecroft is located, said -- referringto Maryland legislators in Annapolis-- “They talk about jobs, jobs, jobs, andwhen the Preakness and Pimlico werein trouble, the governor and others randownstairs to save them. Here we have200 jobs on the line and they have doneabsolutely nothing.” Kelley Rogers, presidentof Cloverleaf Enterprises, the horsemen’sgroup that owns the track, said, “Itjust makes me sick. The legislature sat ontheir butt and didn’t do anything to savethese jobs.” With the closure of Rosecroftand cessation of racing at Ocean Downsfor summer construction, Maryland-- a once major racing state -- hasno harness racing this year.RUNNING ACES RUNNING FASTThe first week of the third year of racingat HTA member Running Aces HarnessPark in Columbus, Minnesota, is lookingas bright as the situation in Maryland islooking bleak. With racing opportunitieslimited elsewhere, Director of RacingGregg Keidel has assembled a solid mixof horsemen and average field size is upfrom 7.1 to 8.5 for its Tuesday, Wednesday,Saturday and Sunday schedule of racing.Handle for the first week was up 150%over a year ago, and General ManagerBob Farinella and Mutuel Director BenBlum are seeking new simulcast partnersfor the track’s 7 p.m. weekday and Saturdayschedule and Sunday’s 5 p.m. centralmatinees.RI GOV HAS CASINO CONCERNThe governor of Rhode Island, Don Carcieri,has expressed “major concerns” overa proposed bill that would give state votersan opportunity to decide whether or notRhode Island’s two slot facilities should beallowed to convert into full scale casinos.The governor is meeting with his staff todayto consider the measure’s details, andhe indicated he would make a decisionnext week whether he would sign or vetothe legislation as proposed. Carcieri sayshe is concerned about constitutional issueson city home rule. Lincoln has expressed awillingness to expand its Twin River operationwith table games, but Newport leaders,including state Senate PresidentTeresa Paiva-Weed, have not.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, June 18, 2010650 NEW JOBS IN DELAWAREHTA member Harrington Raceway becameDelaware’s first full racino recently,opening what CEO Patty Key called“everything and anything” in the wayof gambling. Its HTA neighbor, DoverDowns, also is joining full racino status.At Harrington, ten tables, handsomelyoutfitted in black felt with gold detailing,offer poker, and 38 more provide guestswith other table game attractions includingbaccarat and blackjack. Harringtontrained its personnel, with 65% Delawareresidents, and has added 300 new jobs toexpanded food service and security employees.Dover will add 350 new jobs.VERNON BOOSTS PURSES 15%HTA member Vernon Downs will boostits purses some 15% next Thursday, withtop horses to race for $11,000 if seven ormore start.PENN NATL GETS VEGAS OKPenn National Gaming has been grantedapproval by the Nevada Gaming Commissionto acquire 1% control of NevadaSlots & Supplies, a small Nevada-basedslot machine manufacturer, opening theway for the Pennsylvania-based gaminggiant to acquire future status as a casinooperator in Las Vegas or elsewhere in thestate. Rumors have existed for some timethat Penn National was interested in acquiringthe Rio Hotel and Casinofrom Harrah’s Entertainment orThe Mirage from MGM Resorts.In another development, Penn National,which operates 19 tracks and casinos inother areas, and is developing new propertiesin Kansas, Maryland and Ohio,has filed suit against Greenwood Racingof Philadelphia Park, its partner in HTAmember Freehold Raceway. Penn Nationalis suing for Greenwood’s failure tobuild an off-track betting facility on thesite of old Garden State Park in CamdenCounty, NJ. Penn National says Greenwoodhas reneged on its commitment tobuild an OTB site at what now is a largeresidential and retail complex.A LITTLE LATE, GOVERNORNow that Rosecroft Raceway has announcedit is closing down all operations,including its off-track betting facility,July 1, Maryland Governor MartinO’Malley has moved to try to save thetrack. His secretary of state, John Mc-Donough, says he has spoken to representativesof the Maryland thoroughbredindustry about compromises in workingwith Rosecroft, and says they have“an open mind” about working with thegovernor’s office on seeking an arrangement.McDonough, who admitted therunners have strong differing opinions,said it was “a matter of reconciling thoseinterests,” and that, “There’s no guaranteewe could be successful, but we’ll try.”Too bad the effort didn’t come earlier inthe crisis, by intervening with the legislatureand racing commission.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, June 21, 2010MORE ON MLANDS RACINOIn a long, long article on developments ona racino at the Meadowlands, the influentialAsbury Park Press reveals that “agroup of state Senate and Assembly leadersThursday called for a ‘gaming summit’to develop a constitutional amendmentaimed at ensuring the long-termviability of horse racing and the casinos.No specifics were provided on how thatmight be done.” The paper quoted activiststate Senator Ray Lesniak, who ispushing for sports betting in New Jersey,as saying, “Right now, all the interests areat each other’s throats while their respectiveindustries are dying a slow death.They don’t realize, or want to realize,they’re killing each other.” Lesniak saysit’s time for the legislature and governorto do something about it, but he doesn’tmention that most of the killing is beingdone by one side, the casinos. Until thisfact of life is noted and corrected, the politicaltalk will remain just that. On thebattle front, director Karyn Malinowskiof the Rutgers Equine Science Centercontinues to express fears for the futureof racing, and says, “If harness racing leftthe Meadowlands, it would begin the demiseof harness racing around the UnitedStates.” Someone named Sean Maher ofsomething called Economy.com said a racinoat the Meadowlands would be “anotherbig load of straw on the camel’sback for the casinos,” who take intens of millions carrying the load.IN NY, OTHER PROBLEMSIn an editorial titled, “Somebody call acop,” the New York Post said today thatpotential integrity violations by stateDemocratic leader John Sampson callfor law enforcement agents to get to thebottom of reports of his activities. Thoseactivities include leaking information onthe bidding of other suitors to AqueductEntertainment Group, which ultimatelywon the bidding for the Aqueduct racinobut was disqualified, and suppressingnegative testimony about an agencycalled Shining Star Home Care in whichhis sister holds a 20% interest.HOPEFUL SIGNS ON 3 FRONTSWoodbine Entertainment Group reportsmajor audience gains and zooming bettingaccounts for its new Bet Night Livetelevision production, seen in Canada onThe Score network. Tioga Downs reportspositive results with its lowered takeoutrates. And three track records fell onyesterday’s racing card at Running AcesHarness Park in Minnesota, one a 1:54.1mile by Place to Be, driven by former harnessracing journalist Dan Poprawski.UPDATE ON JERSEY DRIVERSDrivers Rich Silverman and Daniel Dube,hurt in a six-horse spill at the Meadowlands,suffered serious injuries. Silvermanhas a concussion and ankle fractures.Dube has fractured vertebrae in his lowerback and in a carpal bone in his righthand. Four others emerged okay.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, June 22, 2010MEADOWS’ SCARY SCENARIOIn a long interview with a reporter for thePittsburgh Tribune-Review, Kim Hankins,executive secretary of the Meadows StandardbredOwners Association, discussedlegislators diverting money intended tobolster racing into Pennsylvania’s generalfund instead. To balance the current budget,legislators diverted 17% of the state’sRace Horse Development Fund, and asa result purses will be reduced by 10%on July 1. Tim Solobay, a Democraticstate representative from The Meadows’nearby neighbor Canonsburg, said thatmembers faced with a budget crisis lastyear were “pulling a little bit from everywhere.”He added that “We’re talkingabout getting back into it this year.”Reporter Mike Wereschagin said Solobaymeant getting the lost money back intothe fund, not getting back into the fundfor more. If you had to make a bet onwhich of those two options is most likely,you might make some easy money. Andthe specter of that plunder hovers overa lot more purse money than just that atThe Meadows. Danger ahead!AND THERE’S MOREWe’re not comfortable being the purveyorof only bad news, but we play the cardswe’re dealt. The Baltimore Sun reportstoday, discussing the closing of RosecroftRaceway, that “Rosecroft is closer to theglue factory than anyone else, andthe (Maryland) Jockey Club andThoroughbred Horsemen’s Associationseem to be counting on the slotsdelay to finish it off.” Referring to therunners cutting off Rosecroft’s simulcastingsignals because the track sought a renegotiationof its 2006 agreement to pay$5.9 million a year for the signals, a debt itcould not handle, to $2 million. It reportedlyhas not paid for two years. Jay Hancockwrote in the Sun, “It’s a stretch forthe thoroughbred crowd to act all properand offended. There are piles of unpaidracing bills. Everybody’s waiting for thedammed-up money from slot machines,which was supposed to save standardbredharness racing and thoroughbred racingalike....Without Rosecroft there to take acut of the slots proceeds earmarked fortrack improvements and racing purseswhen the casinos start opening this year,the Jockey Club’s Pimlico Race Courseand Laurel Park and everybody else couldhave more for themselves.” Tom Cooke,president of the harness horsemen’s CloverleafSOA, said of the signal ban, “Theyknew how to put the chokehold on us. Ittook longer than they expected, but theyknew that cutting the simulcast signalwould be the coup de grace to standardbredracing in Maryland.” Writer Hancocksaid, “Not exactly. Harness racingat Ocean Downs racetrack on the EasternShore, due to get a slots operation, shouldbe fine.” Although Secretary of State JohnMcDonough is talking about “shuttle diplomacy,”it awaits the return of out-oftownattorney Alan Foreman.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, June 23, 2010STRONACH VS. DEREK, ET AL.And other features of a stormy sessionof the California Horse Racing Board.The main bout was irrepressible FrankStronach, leader of MI Developments andowner of Santa Anita Park, telling membersof the board they were responsiblefor everything but the Gulf oil spill, andexperiencing -- for him -- the highly unusualreprimand of being told to shut up.Newswise, the main item was Stronachannouncing he would allow Oak Tree racing,which he had deposed as a tenant atSanta Anita, to race this fall for one meetingonly if they chose (they did quickly)but that he wanted “no tenants in ourhouse” and intended to have none in thefuture. Stronach began his presentationby saying board members had slanderedhim by not understanding his ideas, andthat “I’m very resentful when you trashmy reputation. I need this like a hole inthe head.” His ideas include changingCalifornia racing by proposing to operatehis tracks at Santa Anita and Golden GateFields year-round but on weekends only.He told the board he had invested $250million in his tracks and “haven’t broughtout a cent,” and added that “a businessthat doesn’t make a profit is a burden tosociety.” He said racing was “trapped inlaws, but laws are made and changed bypeople. It’s very urgent. It’s got to befree enterprise,” and said that tracks, notstates, should decide when theywant to run.His brush with Bo Derek came whenthe actress-turned-racing commissioneraccused Stronach of driving away theBreeders’ Cup, and he responded thatthe racing board, not him, had done that.At one point a board member shouted atStronach to be quiet, saying, “Hey, hey,hey, I’m talking now.”OTHER CANDID COMMENTSJohn Johnston, who runs Balmoral Parkin Crete, Illinois, testified in Chicago yesterdayin the corruption trial of formerIllinois governor Rod Blagojevich. Johnston,who allegedly had been asked for butrefused to pay $100,000 to Blagojevich forpassage of a bill that would benefit racing,was questioned about a statement he saidwas made by Alonzo Monk, a former Balmorallobbyist and chief of staff to the governor,in a conversation on Dec. 3, 2008.Johnston said Monk told him, “I spoke tothe governor and he’s concerned that ifhe signs the racing legislation you mightnot be forthcoming with a contribution.”Johnston said he responded negativelyand angrily. “I got agitated, animated...Ishut the conversation down.” He said heunderstood the conversation to mean thatif he paid “they’d cash the check and signthe bill.” Johnston was asked in cross examinationby attorney Sam Adams Jr. ifMonk, Johnston’s former lobbyist, wasthe only person to put any pressure onhim. He answered, “That’s correct...myown lobbyist.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, June 24, 2010QUOTES OF NOTEDan Gerrity, president of HTA memberSaratoga Gaming and Raceway, was oneof 100 New York racing leaders attendingthe gaming symposium at Tarrytown thisweek. Asked if a western Massachusettscasino in Springfield now being discussedin the Massachusetts Senate would impactSaratoga, Gerrity said it “would affect ussome.” Then asked how one proposed byMohegan Sun in Palmer, east of Springfield,would affect his track, he said,“That’s not what we like to hear.” TheSenate is debating the issue; the House alreadyis on record preferring to includeslots at the Bay State’s four tracks, includingHTA member Plainridge Racetrack.Asked about that, Gerrity, who lives inBoston, said, “We all know how New Yorkpoliticians can’t agree on things. Maybeit will be the same in Massachusetts.”Saratoga Gaming and Raceway secretaryand part owner James Featherstonhaughalso attended the conference, andpredicted that New York’s next governorwould order a comprehensive review ofthe state’s entire gaming system, includinga constitutional convention that couldlead to full-scale casinos, according to theThe Saratogian’s account of the meeting.Featherstonhaugh was quoted as saying,“I think there are going to be some majorchanges...Almost everything that hashappened in gaming has been disconnected,individualistic and atodds with other things.”CURRENT HAPPENINGSWith HTA member Dover Downs opening40 tables tomorrow, Delaware becomesan all-racino racing state. HTA memberHarrington Raceway kicked off itstable games operation May 28 and DelawarePark last Friday......Gov. Carcieri ofRhode Island has vetoed legislation thatwould have resulted in a November referendumon converting Twin River andNewport Grand into full blown major casinos.The governor said he strongly supportedthe referenda process, but couldnot support legislation that left division ofthe spoils and other critical financial informationunknown. He said the bill leftthe state with no bargaining power, calledit “a deeply flawed strategy,” and likenedit to a buyer taking possession of a housebefore determining the price. Whetherenough votes are available to override,particularly in the Senate, is uncertain.It would require three-fifths of both theHouse’s 75 members present and voting,and the Senate’s 38 members, and Senatepresident Theresa Paiva Weed opposesa casino in Newport and says she is notplanning to recall the Senate for a specialsession vote.....Both Arlington Park presidentRoy Arnold and Bob Evans chairmanof Arlington’s parent Churchill Downs,cast doubt on the future of a slotless Arlington.Arnold said it was “difficult tosee a bright ending,” and Evans said “it isdifficult to justify racing at a track withoutslots...you can’t run on hope.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, June 25, 2010WELFARE SCAM IN CALIFORNIACalifornia governor Arnold Schwarzeneggerhas been jarred into ordering ATMmachines at casinos reconfigured afterthe Los Angeles Times revealed two daysago that welfare checks intended for subsistenceuse were being used to withdrawtaxpayer cash from a debit card programinitiated eight years ago. The total withdrawalsof cash from last October untillast month amounted to $1.8 million, anaverage of $227,392 a month. The governnor’saction included asking welfarereicipents to promise to use their cardsonly for subsistance purchases; orderinghis Department of Social Services, whichhad failed to spot the payments in sevenyears of supervision, to produce new oversightmeasures to reduce “waste, fraudand abuse; and told the vendor providingATMs to alter them to prohibit use of thewelfare cards at casino machines. Thestate-issued debit cards have been used towithdraw cash at more than half of thetribal casinos and state-licensed pokerrooms in California. Republican lawmakersalso are calling on state investigators totrack down people who misused the cardsand repay the money, the biggest longshotin racing in the state. One columnistcalled Schwarzenegger “naive,” asking,“When you give welfare recipients a debitcard that empowers them to make cashwithdrawals from ATMs..what did youexpect? That they would use themonly for bread, milk and eggs?AND A “BIG A” DISPUTE IN NYThe president of the New York Senate, Sen.John Sampson, a Brooklyn Democrat,is arguing that there was nothing wrongwith him providing bidding informationof five rivals to the now discredited formerwinner, Aqueduct Entertainment Group.He provided the information, without theknowledge of the other bidders and only tothe AEG. in time for AEG to up its bid bymore than $700,000 and win the contract,which was nullified after being foundfraught with irregularities. A Sampsonspokesman said, “We did not and do notbelieve the memo Sen. Sampson sharedwas confidential.” A Baruch universityprofessor, Doug Mazzio, was quoted byveteran NBC newscaster Gabe Pressmanas telling him, “You’ve got a real ethicsproblem in Albany, where there are foolsand knaves. The knaves don’t want thesetup to change.” Pressman said 2010does not look like the year for true ethicsreform, and asked, “We wonder when, ifever, it will come.”164 AMENDMENTS IN BOSTONMassachusetts state senators debatingexpanded gaming in the Bay State haveoffered 164 amendments to the measure.One of them approved yesterday by a 24-15 vote calls for no smoking to be allowedin the casinos. The Senate bill does notprovide for slots for HTA member PlainridgeRacetrack or for Suffolk Downs,as the approved House bill does.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, June 29. 2010GURAL GOES FOR THE GAMESWith the bilateral support of the chairmanof the Senate Racing, Gaming andWagering committee, Democrat Eric Adams,and Republican senator Thomas Libousof Binghamton, track operator JeffGural is moving forward on the tortuousroad to table games at Tioga Downs andVernon Downs. Adams has introduced abill that would amend the state constitutionto add five privately owned casinos attracks, and meet other criteria. The IthacaJournal, reporting the development, saysthe five would be in Tioga, Saratoga andOneida counties, with two in Sullivancounty in the Catskills. Buffalo Racewayand Batavia Downs would not be eligibleunder the bill. Gural says if the legislationpasses, he has plans for an expandedracino at Tioga Downs, construction of ahotel with indoor parking, and additionalrestaurants. Driving the legislation is thepromise of some 200 new jobs to operatethe table games and 100 to staff the hotel.That would double Tioga’s presentstaffing. Tioga currently has 775 videoslots and a major league racing schedule.Gural’s hopes will require diligence andpatience. The bill would have to be approvedin two legislative sessions becauseit calls for a constitutional amendment,and then would have to pass a statewidereferendum. Gural explained that couldtake two years, but said if the bill isnot passed now it would delay thewhole operation for two years.Don Groth, president of Catskill OTB,said he would oppose the legislation “unlessit had a companion provision to discountthe payments OTBs are required tomake to racetracks.”NO REFERENDUM IN MDA circuit court judge in Anne Arundelcounty. Maryland, has ended, for now,the Maryland Jockey Club’s hopes to haltthe giant Cordish corporation’s plans tobuild a casino there. Judge Ronald A.Silkworth ruled on the strength of Marylandlaw that prohibits appropriationsmeasures by public action or referendum.The Maryland Jockey Club says it willappeal, but 23 years ago, when plans wereafoot to put the issue of building baseballstadium Camden Yards to a public vote,the Court of Appeals said that was impermissible.Judge Silkworth wrote in his 47-page decision that the 2008 vote to allowslots “would be delayed and thwarted, ifnot fatally undermined, by a referendum.”It turns out that Magna Entertainment,which owned the Maryland Jockey Clubat the time, probably would have had acasino at Laurel Park if it had not madethe very costly mistake of not making astate-mandated pre-selection deposit.PATERSON BUDGET REJECTEDNew York’s legislature, substituting itsown budget for that of Gov. David Paterson,expands daily hours of operationat state racinos from 16 to 20, a moveexpected to produce $45 million.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, June 30, 2010CASINOS FOR SOME IN NY?The New York state Senate yesterdayapproved, by a 45-16 vote, legislationthat could lead to full casinos at VernonDowns, Tioga Downs, Saratoga Gamingand Raceway, and Monticello Raceway.The reality is distant: there currently isno “same as” bill in the Assembly; evenif approved by both houses in this legislature,it will have to be approved a secondtime by a new legislature, an unknownquantity with the entire current legislatureup for reelection this fall; and then itwould face public approval in Novemberof 2011 or 2012. If it should make it thatfar, the measure would require approvalby the four individual counties involved --Saratoga, Sullivan, Tioga and Oneida --all with populations of less than 500,000,a specification of the bill. As passed bythe Senate, Buffalo Raceway and BataviaDowns would not be beneficiaries andwould not receive full casino status. NewYork state, meanwhile, has reached intothe coffers of present racinos at the harnesstracks, taking an additional 1% ofrevenues for education. The impact washighlighted by Empire City at YonkersRaceway general manager Bob Galterio,who said New York state already takestwo-thirds of that track’s gambling revenue.The state’s answer to that was simple;they now will allow the track racinosto operate 20 hours a day rather than 1 6 ,a boon to the tracks according to thestate, but also to the state itself.DOWN TO 3 BIDDERS AT BIG AYesterday was put up or shut up day forbidders for the Aqueduct Racetrack racinofranchise, with $300 million each on theline. Delaware North disappeared, andnow there are three: Genting New York,whose parent operates the biggest gamingoperation in southeast Asia; SL Green,the largest commercial property landlordin New York City, partnering with HardRock International and Clairvest Group,a publicly traded merchant bank; andPenn National Gaming. Next up, evaluationof the bids by the New York Lottery,with a target date of Aug. 3 for submissionof its recommendations to governorDavid Paterson, legislative leaders andthe state comptroller and attorney general,all of whom get to play a role in the decision.Three previous efforts have failed,and New York being New York this one isno cinch bet, not when legislative leadersare involved.3 ALSO NUMBER IN TEXASThree also was the magic number in Texas,where Scientific Games, GTECH andIntralot submitted their proposals by yesterday’sdeadline to run the Texas lottery,with as much as $100 million a year theprize. The winner most likely will not beannounced before late September. Therewas a squabble here, too, with a consultingfirm the commission hired to helpwith the bid request doing business withGTECH. The solution? The consultantwas fired, contract cancelled.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, July 1, 2010COULD THIS BE NJ’S ANSWER?Here comes Betfair! That seems a realpossibility in New Jersey after the GeneralAssembly unanimously approved exchangebetting. The measure now goesto the state Senate’s Wagering, Tourismand Historic Preservation committee, butthe Senate and Assembly both quit for thesummer after today’s session. Gov. ChrisChristie’s office, meanwhile, extended thedeadline for the much-anticipated reportof the special gaming, racing and sportsadvisory meeting from yesterday to August1. His counsel, Jeffrey Chiesa, gavethe impression of a possible link betweenthe two events when he wrote to advisorycommittee chairman Jon Hanson,telling him that “the emergence of additionalmatters” had in part triggered themandated delay. Hanson announced that“Since there are some real-time issues,”the committee was delaying the filing ofthe report.” The new head of New Jersey’sCasino Association, Mark Juliano,said he did not read the governor’s extensionas meaningful. Betfair has aggressivelyand skilfully pursued a base inthe United States, first buying TVG andusing that as a platform for lobbying asan American industry. It also is sponsoringSaturday’s $750,000 United NationsHandicap at Monmouth Park. If New Jerseybecomes the first state in the nation topermit exchange betting, the fate oflive racing in Jersey becomes evenmore problematical.UGLY DISPUTE IN ALABAMAAlabama Department of Safety personnelwere in effect ejected from the Greenetrackcasino in Greene county yesterday.The Alabama Supreme Court respondedquickly by ordering them allowed back in,saying, “Compliance with an order of thiscourt is not optional.” The track’s presidenttold Col. J. Christopher Murphy, thedirector of the public safety department,that he did not intend to comply with thecourt’s order. Murphy then said he hadordered the Task Force on Illegal Gamblingpersonnel “to re-enter the facilityand re-secure the site. We have been orderedto do that and we intend to do it ascivilly as possible.” Stay tuned.DECISION IN WHELAN VS. WEGA 3-judge panel of the Ontario SuperiorCourt of Justice has ruled, 2-1, thatWoodbine Entertainment Group cannotprevent former horsemen’s leader JimWhelan from racing there “solely on thebasis that Mr. Whelan has not signed thecurrent version of (WEG’s) Access Agreement.”The court made it clear that itsdecision “does not mean that WEG is notentitled to require an Access Agreementby those who use its facilities, and it is entitledto insist on one as part of its privateproperty owner rights.” It also ruledthat WEG could not bar Whelan for notsigning an agreement “containing termsthat purport to give WEG powers beyondwhat it legally possesses.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, July 2, 2010NOW FOR THE BOSTON BATTLEAfter eight days of hassling and hustling,the Massachusetts Senate, locked in whatthe House leader said “was like a hostagesituation,” passed its three-casinobill, setting up a battle with the governorand Senate on one side and House on theother. The Senate passed its bill on a 25to 15 vote shortly before 9 last night. Itprovides for three casinos, with no slotsfor racetracks and no smoking for customers.One senator, Susan Tucker, whoopposed the bill, said, “There are a lot ofvery happy lobbyists.” Whether enoughtime remains for a conference committeeto reconcile the differences in allowingor not allowing track slots will unfoldthis month. The current session ends July31. House Speaker Robert DeLeo, whozoomed his bill for casinos AND slots atstate tracks, told a radio WBUR interviewerhe was optimistic common groundcould be found. “I feel confident only inthe sense that I think the governor is insupport of some form of expanded gaming,I am, and the Senate president is, so Ithink because of that, because the three ofus are in support of the concept, the particulardetails may take a little bit of time,but I think we’ll have something, I wouldexpect, by the end of the term. It’s goingto have to be an awfully quick, speedyconference committee if we expect to getthis to the governor’s desk before w ebreak.” He said tracks be readywith slots in six to nine months.‘BAMA BINGO BATTLE BRIEFThe Greenetrack casino in Alabama,where state police authority was challengedeven after the Alabama SupremeCourt ruled yesterday afternoon thatstate troopers could enter and remove 800electronic bingo machines, was much quietertoday. The entrance was blocked yesterdayafter the court acted, and troopersentered and removed 800 of the machines,which has been declared to be illegal slotmachines by other Alabama courts. Anoisy crowd of some of the 400 employeeslosing their jobs joined 10 black legislatorsand a white candidate for governorin a rally in front of the casino. Sixteenwere arrested and released on signaturebonds of $1,000, and the gubernatorialcandidate said proudly, “We went to jailfor poor folks. We went to jail for justice.”The crowd cheered, but the statepolice were unimpressed.THE OTHER SIDE OF THE AISLEUsing its new condensed purchasing powerto full advantage, Monmouth Parkraised the purse for its upcoming Lady’sSecret stakes from $150,000 to $400,000,but only if Horse of the Year Rachel Alexandrashows up. The President/CEOof the New York Racing Assn., CharlieHayward, thought NYRA had snared thereigning champion for the $250,000 Ruffianat Saratoga, and said, “We are puzzledand disappointed” at owner JessJackson’s switch in plans.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, July 5, 2010BIG NIGHT AT GOSHEN HALLHarness racing’s Museum and Hall ofFame held its usual Fourth of July weekendcelebration last night, welcoming newmembers to the sport’s most significantshrine. Highlight of the ceremony was theinduction of veteran breeder and artificialinsemination pioneer Hal Jones and HarnessTracks of America’s six-time drivingchampion Dave Palone. Enshrined in theCommunicators’ Corner of the Hall wereHanover Shoe Farms public relations chiefMurray Brown and Vernon Downs’ veteranannouncer, race caller and publicitydirector Jim Moran. New Immortals inthe Hall were Dr. Harry M. Zweig, fatherof the New York Sire Stakes program; AldenGoldsmith, owner of the great 19thcentury trotting star Goldsmith Maid;artist Richard Stone Reeves, who paintedsome of the sport’s greatest horses; andrace mare Three Diamonds. Two inducteesin the Living Horse Hall of Fame wereinducted: the brilliant racing filly BunnyLake and, from Italy, the sport’s all-timeleading money winner, Varenne, with$5,636,255 in earnings. Sculptor Bev Lopez,who has done the Hall’s statuettes for50 years, received the Museum’s PinnacleAward. Amateur driver Todd Whitney ofMaine was honored for contributions tothe Museum. Dave Palone, concludinghis remarks, asked all to send wishes tofour drivers currently sidelined byinjuries. We’ll have addresses foryou tomorrow.ROYALTY AT WOODBINEWoodbine celebrated yesterday too, withthe presentation of its revered and oldestthoroughbred race, the Queen’s Plate.This time there was a difference, as QueenElizabeth made an appearance, with herhusband the Duke of Edinburgh, for the151st running of the royal event. An estimatedcrowd of from 25,000 to 35,000-- admission at Woodbine is free -- andthose betting from afar, sent $6.815 millionthru the machines. The overawedjockey, Eurico Rosa da Silva, who alsowon the Queen’s Plate last year, said hetold his winning mount, Big Red Mike, inthe paddock before the race, “My friend,we’re going to do our best. The queen ishere. No pressure.” The horse responded,wire to wire, and the queen, a horseowner and fancier herself, appreciatedthe performance, commenting to jockeyDa Silva that it is not easy to lead all theway. Da Silva twice bowed low as he acceptedhonors from her majesty, who nowheads to New York to address the UnitedNations tomorrow.MASS SENATE OKS CASINOSThe Massachusetts Senate has passed itsthree-casino bill, and the issue now goes toconference reconciliation with the Housebill, which calls for 750 slots at tracksin the state. Under the Senate bill, onecasino would be located in the southeastportion of the state, competing directlywith Connecticut Indian casinos.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, July 6, 2010You are receiving two newsletters today, as we SIGNS OF THE TIMESwere unable to send yesterday’s because of technicaldifficulties. It is being sent today. Our apolo-In this Age of Turbulence, some interestingdevelopments.gies.MASS HOUSE, SENATE CONFERWith the Massachusetts House and Senatenow having their own bills on expandedgaming, the fate of slots at the state’sfour racetracks, including HTA memberPlainridge Racecourse, now moves to thecritical stage: conference committee. Asix-member committee is to be named today,and will meet in private closed sessionto discuss a compromise bill. The Senatebill excludes track slots and provides forthree casinos. The House bill approvestwo casinos and 750 slots at Plainridgeand other tracks. The bill faces scrutiny,and a possible veto, from Gov. Deval Patrick,who favors the Senate version.HAPPENINGS AT THE HALLHanover Shoe Farms president Jim Simpsonand veteran legendary presiding judgeWalter Russell have been nominated forHarness Hall of Fame recognition. Theirelection will require a 75% favorable voteby members of the U.S. Harness WritersAssociation next month. HTA six-timedriving champion Dave Palone, inductedinto the Hall Sunday night, is locked ina see-saw battle with Cat Manzi for secondplace in all-time wins. Manzi edgedahead last night, with one at Yonkers. Henow has 13,796 wins, Palone 13,795.Herve Filion leads with 15,179.Harrah’s Atlantic City resort had to closedown its bars and nightclubs Sundaynight, and cancel another concert scheduledfor yesterday, after an unruly mobwithout tickets tried to crash an appearanceof hip-hop star Sean (Daddy) Combsand boxer Floyd Mayweather. Policeevicted 1,800 in Harrah’s The Pool, madeone arrest, and restored order.Hollywood Park cancelled racing for thethird time this meeting, without enoughhorses to race a Thursday card.Japan’s public broadcasting network hascancelled live coverage of six championshipsumo wrestling tournaments -- thefirst time that has happened in 57 years-- in the face of a growing scandal in thesport that has been front page news andfeatured on television and radio storiesfor weeks.Keeneland has cut its purses for its fallmeeting by a million dollars, including a15% reduction in stakes purses.WOODBINE BANS TWOWoodbine has banned veteran harnessdriver Kevin Wallis after he was suspendedin Michigan, and thoroughbred ownerBruno Schickedanz after his former CanadianHorse of the Year, Wake at Noon,now 13, was euthanized while training,in violation of Woodbine rules.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, July 7, 2010AND NOW THERE IS ONLY ONEThe New York Lottery, which was assignedthe job of evaluating the three finalists forthe Aqueduct racino franchise, bootedtwo and left one standing yesterday. LotteryDirector Gordon Medenica made itclear that the SL Green group and PennNational bids were unacceptable, citing19 failures of SL Green and 8 of PennNational to agree to requirements of theRequest for Proposals issued on May 11.Both disqualified groups failed to meet therequirement for submitting signed copiesof a Memorandum of Understanding.That left the last man standing GentingNew York, the bidder backed by the giantMalaysian gambling, hotel, palm oil andcruise line enterprise that operates casinosin Singapore, the Philippines and theUnited Kingdom from its base in KualaLumpur. That does not mean Genting isthe winner, merely that it was the only applicantthat met all the requirements ofthe Request for Proposals. SL Green andits partners, Hard Rock International andToronto-based Clairvest, and Penn Nationalboth attempted to modify and alterthe requirements of the RFP, and weredisqualified. Both will get their milliondollarentry fees refunded, as did unsuccessfulEmpire City at Yonkers Racewayand Delaware North. The Lottery willcomplete its study of the Genting proposaland if satisfactory will submit it asits recommendation to the governorand legislative leaders by Aug. 3.The full text of the Lottery release on disqualification,itemizing the non conformitiesthat led to the disqualification of SLGreen and Penn National, can be foundon the home page of the HTA Web site.NEW GREENWOOD CEOLeonard DeAngelo, a veteran casino industryexecutive, has been named chiefexecutive officer and president of GreenwoodRacing, a partner in ownership ofFreehold Raceway. DeAngelo replacesBill Hogwood, who moves to deputy chairmanof Greenwood and will concentrateon racing matters. DeAngelo is a formerexecutive VP of operations for Penn NationalGaming, Greenwood’s partner inFreehold, and was president of both theHilton Casino Beach Resort and the SandsHotel and Casino in Atlantic City.MORE ON WALLIS SUSPENSIONharnessracing.com has published detailsfrom the Michigan Gaming Control Boardon the suspension of veteran trainer-driverKevin Wallis, 53, the 12th leading driverin races won with 9,072, and driver ofhorses winning more than $41.3 million.According to the Michigan board, Wallisgave false and misleading statements concerningaccepting money for race fixing,testifying he received no money for hisparticipation, when three drivers in therace testified that he received money andpaid other drivers to participate. Wallisalso has been suspended in Ontario.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, July 8, 2010NEW OTB FUROR IN NEW YORKA new uproar over OTB in New York, withpresident and CEO Ray Casey resigningand being replaced by a $125,000 a monthsuccessor, Greg Rayburn, a corporateturnaround specialist. Gary Pretlow, theAssembly racing committee chairman inAlbany, was incensed, calling the 4-1 OTBboard approval of Rayburn’s $1.5 milliona year salary to run bankrupt NewYork City OTB “ludicrous.” The salarymeans Rayburn will earn as much in sixweeks as Casey was paid in a year, some$180,000. The situation was not eased bya New York Times story outlining millionspaid to consultants by NYCOTB. Thepayments included $384,000 for a financialmodel; $381,000 for a reorganizationplan; $237,000 for signing up betting kiosks,a task for which the lady who gotthe contract charged $225 an hour; and$472,625 for press and public relationsfrom last November until May. A lead executivewith the PR firm, Edelman, whowas paid $300 an hour, said he felt the firm“had been very successful in executingthe strategy outlined by the client, communicatingcomplex concepts to diverseaudiences and helping generate influentialeditorial support.” Given the almostdaily blasts in New York media of OTB, itmight be nice to find out where that editorialsupport appeared. Just imagine whatmight have happened if Edelman hadn’tbeen around. Now Gov. Paterson’saide takes over.While that aide, Paterson’s chief of staffLarry Schwartz, took over NYCOTB aschairman, eight other aides carried hugestacks of some 6,700 veto messages affectingstate budgeting for Paterson to sign.It took the governor seven hours to signall.IN NEW HAMPSHIREJohn Lynch, the governor of New Hampshire,has been accused of flip-flopping byopponents of gaming in the state, after itwas reported he had discussed the possibilityof a single casino, perhaps at RockinghamPark.TABLE GAMES BEGIN IN PAThe Meadows began table games thismorning, opening at 6 a.m., with a formalribbon-cutting ceremony at 11. The trackhas a full contingent of cards, blackjack,craps, and roulette.MASS GOV STILL ANTI-SLOTSThe governor of Massachusetts still thinksslots at tracks would be tantamount toawarding them lucrative contracts withoutbidding, but the Speaker of the House,Robert DeLeo, says he hopes to convinceGov. Patrick “in the days and weeksahead” of the benefits and rewards of earlyopenings of racinos at the state’s fourtracks if approved, as opposed to years ofconstruction for casinos. DeLeo says hehopes to get the issue resolved and legislationcompleted in 10 days.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, July 9, 2010TABLE GAMES BEGIN IN PAAnother chapter in Pennsylvania gamblingbegan yesterday, when western Pennsylvaniaopened its table games at TheMeadows, Rivers Casino in Pittsburgh,and Presque Isle in Erie. Mohegan Sunat Pocono, Penn National and Harrah’sChester operation will open the easterncontinent within 10 days. One analyst,Dennis Farrell of Wells Fargo Securities,told the Philadelphia Inquirer that the 700table games being added to the Pennsylvaniamenu could boost revenues by $350million to $450 million within three years.The Meadows opened yesterday morningat 6 a.m., then held a formal ribboncuttingfive hours later with a contingentof Pittsburgh Steelers Super Bowl playerskicking things off with a mock craps game.The track also opened a 9,800 square footpoker room with 26 tables yesterday andsaid it had added 550 jobs with the tablegame expansion. Between 50 and 75 peoplewere on hand for the 6 a.m. Meadowsopening; the number had increased to 150to 200 by 9 a.m., and by 3 p.m. the Meadowshad no empty seats at its 20 pokertables and 42 other table game locations.A Moody’s Investors senior VP, told theInquirer that unless Atlantic City foundsome way to turn things around, the competitioncould pass the beach resort in size,“if not this year, then in 2011.” Mark Juliano,the new head of the New JerseyCasino association, said his casinoswere studying developments.NY MOHAWKS, EMPIRE SPLITThe romance between the St. Regis Mohawksand Empire Resorts on a joint approachto building a casino at MonticelloRaceway apparently is over. The tribeannounced it had halted its negotiationswith the track owners over certain keyterms of the negotiations, and were movingon. Mohawk chief Mark Garrow issueda release saying, “When we votedto seek a Catskill casino, the Monticellosite appeared to make the most sense tothe tribe, as it had obtained final environmentalapprovals from the federal government.However, discussions with EmpireResorts to reach acceptable terms ofa purchase agreement for the land, whichis necessary to move any land into trustapplication forward, have not been successful.”A tribal spokesman said thetribe “now had the freedom to exploreother options.”In another Catskill development, theMichigan casino development and managementcompany Rotate Black sold itsCatskills gaming subsidiary to CatskillsGaming and Development, a David FlaumCompany, for the assumption of debt and$21 million in net fees over a 7-year periodafter opening the casino.ANNE ARUNDEL TO TOP COURTThe long-playing dispute over a Cordishcompany casino in Anne Arundel Countyin Maryland, opposed by the MarylandJockey Club, goes to the Court ofAppeals, the state’s highest, July 20.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, July 12, 2010AT LEAST WE GOT A MENTIONThe Democratic leadership in the NewJersey legislature announced today that agaming summit would be held next month“to craft solutions for ensuring the longtermviability of New Jersey’s strugglinggaming and entertainment industries.”The story said it was hoped legislationmight be passed by the end of the year,and the headline on the story read, “AsN.J. casinos, racetracks struggle financially,legislators announce ‘gaming summit.’”This is progress in New Jersey, to get mentionedin the same breath as casinos, andan even more hopeful sign was a statementby powerful state Senate PresidentStephen M. Sweeney, who announced thesummit, saying, “Our casinos and racetracks are...major economic drivers thatcannot be allowed to flounder....New Jersey’sgaming industry -- whether it be casinosor racetracks -- is the lifeblood ofmany programs that are vital to our statewideeconomy through the jobs and economicdevelopment it creates.” The newsfrom there is less encouraging, for thestory said Senator Jim Whelan, a formermayor of Atlantic City, would be co-chairof the session. We won’t pre-judge thedeliberations, but the news was accompaniedby a story from the Casino ControlCommission mentioning an 11.1% decreasein casino win in June. Wehope the summit is a broad peakrather than a narrow jag.NYRA FACES INSOLVENCYAn audit report issued today by NewYork’s State Comptroller Thomas P. Di-Napoli says the New York Racing Association,operator of Belmont Park, Aqueductand Saratoga, faces fiscal insolvency nextyear. More details tomorrow.AHC MOVES ON WITHHOLDINGThe American Horse Council has submitteda request to the Department of theTreasury and Internal Revenue Service,at their invitation, to change the definitionof outmoded methods of determiningwithholding and reporting. The requestincludes a white paper that begins, “Unlikeall of its competitors in other gamingindustries, the pari-mutuel industry isburdened by an inequitable tax law thatrequires racetracks and other wageringfacilities to withhold federal taxes on winningsover $5,000 if the proceeds are atlest 300 times the “amount wagered.” Thepaper attributes part of racing’s declinein economic health to current tax laws,and suggests the problem be remedied byredefining “amount wagered” to includethe total amount bet by the recipient intothe pool from which proceeds are paid.Under the proposal, the total costs of thebets, ie. 10 bets on 10 different trifectas,would be included in “amount wagered”for withholding. AHC is seeking industrysupport for the proposal, includingthat of HTA, and if you have commentsor suggestions please forward themto the HTA office.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, July 13, 2010DINAPOLI CREATES HUGE STIRThe press release yesterday of New YorkState Comptroller Thomas P. DiNapolisaying the New York Racing Associationwas “on shaky ground” generated widepress coverage today, which presumablywas its intent. DiNapoli accused NYRAof operating “business as usual” in timeof crisis, and said he was sending stateauditors to begin real time auditing ofNYRA’s books. DiNapoli predicted thatunless New York got moving quickly ona racino at Aqueduct, NYRA would runout of money and go bust by early Juneof next year. He accused it of continuespending more than it was taking in thisyear, instead of restructuring its operation,saying that since emerging frombankruptcy its overall payroll costs increasedby $1.9 million to $69.2 million,and said that seven staff executives makebetween $255,000 and $460,000 a year.He said NYRA spent more than $6 millionon contracts for personal and miscellaneousservices, “without justifying theneed for or price of these contracts,” andhe criticized the expenditure of $900,000to transport horses between tracks, implyingthat it should either charge a fee forthe service or discontinue it. He promisedthat his auditors would be on-site in thenear future, and would “routinely issuereports on NYRA’s real-time fiscal condition.”NYRA, responding, said its expenseswere below those projectedin its bankruptcy reorganization.AEG WANTS ITS RACINO BACKAqueduct Entertainment Group, whichlost its award of the Aqueduct racino in aflurry of charges, countercharges and politicalintrigue, now has sued the state ofNew York, asking a Civil Supreme Courtjudge to halt further bidding and restorethe license to AEG. The group chargedthe state was arbitrary in its decision towithdraw its award and didn’t follow itsown regulations, acting beyond its authority.So, another possible delay in theracino award, hopefully brief.“NO TIME FOR LONGSHOTS”That was the word from Gov. ChrisChristie of New Jersey, who announcedyesterday he would not support the legislature’slawsuit seeking to end the federalprohibition on sports betting in all butfour grandfather states, including neighboringDelaware. The governor’s counselyesterday notified the judge in the case thegovernor thought “state resources wouldbe better utilized by focusing on other issues,”and he called the suit “a legal longshot.”Hopefully the other issues will includerelief for racing.TABLE GAMES AT POCONOHTA member Mohegan Sun at Poconobegan on a new road to profitability thismorning, when it opened its table gamesto the public at 10 a.m. Penn Nationalalso opened its games today, joining TheMeadows where they are already underway.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, July 14, 2010ONE MAN’S MEMORIESThe American press paid homage todayto a man who provided it with constantnews for 40 years. George Steinbrennerwas remembered fondly everywhere,primarily as the owner of the New YorkYankees, but also in the turf press as ahorse enthusiast and owner, of both thoroughbredsand harness horses. He also,of course, was a track owner through hispartnership with Billy Johnston, and hisformer son-in-law Steve Swindal playedan executive role at that track. I haveknown George for almost 60 years, datingback to his visits to my announcing boothat Maywood Park in the early 1950s andextending to brief visits with him at theTattersalls sales in Lexington and at HTAmeetings. The early days were anotherera, when he was an assistant footballcoach at Northwestern. He and his buddyRay Regalis, then center on Northwestern’sbasketball team, used to drop up tothe booth at Maywood, for a better viewand for my program selections. Fifty orso years later, introducing him at an HTAluncheon in Florida, I jokingly said, referringto those handicapping tips, that Ihad made him what he was today. He didnot smile. He did not like others -- jokingor otherwise -- taking credit for his greatsuccesses. Billy Johnson, Dr. Ken Walker,and John Cashman can fill chapters withtheir recollections of the irascible Yankeeleader, but the Maywood days weremy first reminiscence.RACING GETS BLAMED, AGAINDeval Patrick, governor of Massachusetts,told reporters yesterday that racing’s recalcitrancein aggressively pushing forslots at tracks in the state could delay hiswish for three casinos without track slotsuntil next year. Patrick said differencesbetween him and House Speaker RobertDeLeo, leader of the slots-at-tracks movement,could be too great to overcome,and that he may not get to sign legislationthis year. He said, “I think there’s acompromise in here that I could supportthat offers some kind of support for traditionalracing. I don’t exactly know whatthat is.” He mentioned purse increasesbut also said his position on slots had notchanged.LIVE HARNESS ENDS IN MDWith state approval likely, Ocean Downsis seeking permission to cancel its racingdates this summer. If granted, it wouldmean the end of live harness racing inMaryland, doubling the impact of theclosing of Rosecroft Raceway last month.“A DAY OF CELEBRATION”That’s what Bobby Soper, President andCEO of Mohegan Sun at Pocono, calledit yesterday as his track unveiled 62 tablegames adding blackjack, roulette, 3-cardpoker, Let It Ride, craps, along with 16tables of poker in a special poker room.The chairman of the Mohegan TribalCouncil, Bruce “Two Dogs” Bozsum, offereda tribal blessing to the games.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, July 15, 2010YOU SHOULD LIVE SO LONGWe invoke the old Jewish grandmother’swish this morning, hoping you and therest of us live long enough to see slots atAqueduct in New York. That possibilityencountered still another roadblock yesterday,when Barry D. Kramer, a justicein the New York state Supreme Court,issued a restraining order halting thestate lottery division from moving forwardon certifying the Asian gambling giantGenting from receiving the lucrativefranchise. This latest development resultedfrom a lawsuit filed by Aqueduct EntertainmentCompany, the name-changesuccessor of the dishonored AqueductEntertainment Group, which had beennamed the successful bidder and thenwas disqualified when political shenaniganswere disclosed. AEC is contendingthat Sheldon Silver, the powerful stateAssembly speaker, had changed the rulesafter the award was made. The judgeset July 23, opening day at Saratoga, thestate’s showcase meeting, for a hearing onthe matter. The Saratogian, in SaratogaSprings, said the latest setback “threatensto delay naming of a gaming operatorindefinitely, which could spell disasterfor New York Racing Association.” Thestate comptroller, Thomas DiNapoli, saidearlier this week NYRA would go brokeby June of 2011 without resolution of theracino issue. Genting, meanwhile,moved ahead with elaborate plansfor the racino it expects to build.It unveiled plans for racino with a 35,000square-foot meeting center and a 75-foothigh waterfall.BIG BOOST FOR OHIO SLOTSThe decision of LetOhioVote.org not topursue a statewide referendum in viewof the public support for casinos has bolsteredchances of early approval of slots atthe state’s seven tracks. The lottery commissionis preparing regulations and Gov.Ted Strickland, who has strongly backedthe idea, is asking the courts to rule thatslots at tracks are an extension of thestate lottery, and not unconstitutional. Inanother Ohio development, Lakes Entertainment,a 10% partner in Penn National’sColumbus and Toledo casino plans, isopting for a short-term profit, taking $25million and opting out of its investment.NY SCRAPS DETENTION BARNYielding to economic and horsemen’spressure, the New York Racing Assn. announcedit is abandoning its detentionbarn, hailed at its introduction five yearsago as an effective answer to drug use.Thoroughbred horsemen were ecstatic,but the New York Times took a less charitableview, its story carrying the headline,“NYRA Cuts a Deterrent to Cheating.”NYRA’s chairman, Steven Duncker, didnot agree, saying it did not bow to costsor horsemen’s pressure, but had decidedthat advances in drug testing and technologyhad rendered the detention barnobsolete.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, July 16, 2010“EVERYTHING ON THE TABLE”That’s what Gov. David Paterson’s mainman said about New York City OTB, nowbeing pursued by a number of would-beoperators, including unnamed harnesstracks. Larry Schwartz, the organization’snew chairman who also has beenchief of staff for Paterson, said he believes“the only way New York City OTB survivesis if somebody takes it over or wecreate a partnership.” The New YorkRacing Association, owed double-digitmillions by OTB, seems a likely candidate.Schwartz said he was moving “atwarp speed” to reorganize the company,and his $125,000 a month turnaroundspecialist, Greg Rayburn, now presidentof NYCOTB, is on hand and working.Rayburn said cash flow is the answer, callingcash oxygen, and saying he needed tomaximize it to make OTB viable. He alreadyhas terminated some high level execsand plans to close branches with negativecash flow. Noting that the companyis living on borrowed time, Rayburn said,“Before we go out and start negotiatinga plan and a vision, we have to do everythingwe can on the internal things wecan control.” Schwartz agreed, saying,“The corporation is in bankruptcy, andwe’re not going to get out of bankruptcyunless we restructure and reorganize.Part of that is reducing costs, eliminatingthe inefficiencies.” He said at least11 branches would be closed in thenext one to four months.JUDGE AMENDS HIS BIG A TROThe New York Supreme Court judge whoordered a temporary restraining orderbarring further action on the Aqueductracino franchise has amended his order,partially vacating the prohibition of thestate Lottery Commission from continuingits evaluation review of Genting, theAsian gaming power, which is the onlycandidate left after the last two others stillstanding -- Penn National and SL Green-- were disqualified for not meeting Lotteryrequirements.TIMES EDITORIAL BLASTS OTBThe New York Times fired an editorial blastat OTB this morning, concluding thatif the Schwartz -Rayburn team doesn’tcome up with a workable plan quickly,“maybe the best thing the state can dois recognize this is a failing business andshut the city’s OTB parlors for good.”FASTEST MLANDS PACE LIKELYA standout highly competitive field of10 3-year-old pacing colts seems likelyto establish a new speed record tomorrownight in the $1 million MeadowlandsPace. Rock N Roll Heaven, the morningline favorite, won his elimination lastweek in 1:47.3 and One More Laugh wassecond, timed in 1:47.4. Rockin Image issecond choice in the morning line.GOT TO LIVE SOMEPLACESo Steve Wynn has bought a 5,500 squarefootduplex at the Plaza in New Yorkfor a reported $23 million plus.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, July 19, 2010WHAT’S WITH STAR-LEDGER?New Jersey’s largest newspaper, the NewarkStar-Ledger, once again has chosenthe day after one of the Meadowlands’premier attractions to run a depressingstory on racing at the Big M and in thestate, written by a reporter who demonstratedin the lead that he knows nothingabout harness racing. The paper did ita few years ago by trumping Hambletoniancoverage with a scandal story ondrugs, and this time ran its story highlightingthe dismal state of New Jerseyracing the day after one of the Meadowlands’biggest and brightest nights, whena vibrant and youthful crowd packed theramp at the million dollar MeadowlandsPace. The timing of the piece was strange-- or perhaps not so strange -- in that themuch-discussed governor’s commissionis almost ready to release its report andrecommendations on the future of theMeadowlands.The governor, Chris Christie, is not waitingfor the long-delayed report. A spokesmansaid yesterday that Christie will announcea plan “to revitalize Atlantic City”as soon as next week. City officials, casinorepresentatives and state lawmakerswere surprised by the announcement, accordingto the Press of Atlantic City, quotingone local state Assemblyman, JohnAmodeo, as saying, “We’ve been caughtout, kept in the dark a bit. We’renot sure what he plans today.”Besides printing its downer the day afterthe Meadowlands Pace and its bigcrowd, the Star-Ledger stressed on-trackattendance drops and ignored entirely aprimary reason for them: simulcasting.It also relegated to the final paragraphsof the long story one of the brightest developmentsin New Jersey racing, MonmouthPark’s compressed season withmillion dollar a day purses. Attendanceat Monmouth is up almost 13% at 10,572,on-track handle is up almost 43% at$752,718, and total handle is up 118%,averaging $7,672,255 a day. ReporterTed Sherman either was unaware of thesedevelopments or writing a directed verdict,his story belying its headline about“a moribund industry.”GARY GIVES IT TO THEMIn Massachusetts, Gary Piontkowski, theaggressive president and CEO of HTAmember Plainridge Racecourse, scoredwith a major story in the Boston Heraldgiving racing’s side of the battle for slotsin the Bay State. Piontkowski told the paper,“The governor is absolutely wrong”in his claim there are no jobs with racinos,citing data from 12 states showingan average of 2,419 jobs at 45 racinos,generating an average of $202 million intax revenue for each state. The governor,Deval Patrick, has refused to discuss theissue with Piontkowski, sending an e-mailsaying, “The governor’s schedule is fullybooked for the next few months.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, July 20, 2010OHIO TRACK SLOTS PROGRESSThe Ohio Lottery Commission took animportant step yesterday, voting unanimouslyto obtain a declaratory judgmentfrom a state court giving it powerto approve slots at the state’s seven trackswithout further action by voters or thelegislature. Lottery commission leadersalso are working on rules, including24-hour-a-day operation, 7 days a week,year-round, with a minimum age requirementof 21.NO ACCORD YET IN BOSTONTrack slots remain in the news in Massachusetts,where a state Senate and Houseconference committee has been unableto agree after almost two weeks of deliberations.The six-member panel hopes toreach accord before the close of the currentlegislative session at the end of thismonth. The governor and president ofthe Senate still oppose slots at tracks, butHouse Speaker Robert DeLeo adamantlyrefuses to yield on the issue. He toldnewsmen after a meeting yesterday withGov. Deval Patrick, “At least we’re talking.When people stop talking and thedialogue stops, then that’s probably thedeath of legislation.” He was not surethat a compromise can be reached by theJuly 31 deadline, saying, “It remains to beseen.” Senate President Therese Murray,who attended the meeting with DeLeoand addressed the press with him,said merely, “We’re working.”ONLINE BETS BEGIN, CRASHThe long awaited debut of legal onlinegambling got underway in British Columbia,with interesting safeguards in place,and with an enthusiastic initial surge thatquickly overwhelmed the system’s computerservers and forced a temporarycessation of activity. When repairs aremade, the province’s lottery corporationwill be offering legal online betting includingblackjack, roulette, craps, and sportsbetting. Poker is scheduled to be addedin the fall. Social Development MinisterRich Coleman, saying there are currently2,000 unregulated Web sites available inthe province with no accountability to thegovernment, added, “by offering a secureand regulated site we keep some of thoserevenues in British Columbia.” Revenuesfrom online gaming, the first such legaloperation in Canada and, according toCTV News, the first in North America,will be used to fund infrastructure, healthcare and higher education.In the U.S. capital, meanwhile, BarneyFrank’s House Financial Services Committeeis scheduled to meet tomorrow forfurther debate on HR2267, which wouldamend the U.S. code to provide for licensingof internet wagering by the Secretaryof the Treasury.The Paulick Report says the Kentuckyracing commission will pass amendmentstoday allowing instant betting machinesat Kentucky tracks.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, July 21, 2010A DISASTER FOR THE SPORTThe full impact of the announcement yesterdayfrom Gov. Chris Christie’s officethat the Meadowlands will be closed orsold seemingly has not yet hit the sport, atleast if he heeds the recommendations ofJon F. Hanson’s 7-man advisory commissionon sports, gaming and racing. Thatreport advocates closure or privatizationof the Meadowlands, the sport’s signaturetrack in the U.S. The loss of that trackand what it represents here and overseas,plus the effect it would have on not onlyprestige but practical operations everywhereelse, seemingly were of minor concernto the Hanson group, which was farmore concerned about the welfare of AtlanticCity. Blame for non-considerationof slots at the state’s tracks already is beingshifted to the veto power of Senatepresident Stephen Sweeney, a south Jerseycasino supporter who apparently is atleast as powerful as the governor, beingable, according to reports, to unilaterallykill any legislation in that direction.Besides installing state control of the operationaland administrative aspects ofAtlantic City, creating a city within a city,here are the racing proposals as releasedby the governor’s office.• Possible sale or lease of the Meadowlandsto the Standardbred Breedersand Owners Assn. of New Jerseyfor $1, or closure and conversionto an OTB;• A schedule of 70 harness racing datesto be raced at Monmouth Park;• Virtual disbanding of the New JerseySports and Exposition Authority,which more than incidentally JonHanson once headed, and its functionsreduced to the role of landlord;• Conversion to commercial use of oneof the standardbred farms in the statethat has a mile track, and building of a5,000-seat grandstand there “completewith all necessary amenities;”• The end of subsidy payments from AtlanticCity casinos to harness racing.The governor’s office said Christie would“spell out a blueprint for a strong sportand entertainment industry” today. Thecommission report as well as the governor’spress release and a fact sheet on therecommendations are available on theHTA home page at www.harnesstracks.com.IN OTHER NEWS....The Kentucky racing commission approvedOaklawn Park-style instant racingfor the state’s tracks....Mohegan Sunat Pocono is cutting takeout on superfectaand trifecta exotics from 35% to 25%....Cloverleaf Enterprises, owner of Rosecroft,is suing Maryland thoroughbredracing for conspiracy in blocking thoroughbredsignals....Arkansas is consideringinstalling lottery machines in bigbox stores, including Walmart.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, July 22, 2010THE STORM AFTER THE CALMRealizing they have been betrayed, theharness racing community in New Jerseyreacted strongly yesterday to their governor’smessage that Atlantic City had to besaved but harness racing could go under.The Standardbred Breeders and OwnersAssociation, mentioned by the governoras a possible operator of the Meadowlandsfor a $1 a year three-year lease,issued a statement saying its preliminaryreaction to the Hanson report endorsedby Gov. Chris Christie “is that promisesto provide for the future of horse racingand horse farms may have been broken.”They are right, but they and the governorboth know that unless the tracks get slotsthe New Jersey tracks are real estate investments,and the governor also knowsthat his Senate President, Steven Sweeney,has the power to prevent slots from goingthere. Anthony Perretti, son of the state’sbiggest harness horse breeder and ownerof two of the premier standardbred stallionsin America, pacer Rocknroll Hanoverand trotter Muscles Yankee, toldNBC New York that the governor’s planto close the Meadowlands or lease it tothe horsemen would spell the industry’sdeath knell. He said the Perretti breedingoperation “shuts down -- guaranteed,” ifthat happens. Leo McNamara, executiveadministrator of the SBOA, took abrighter view. “I’ll take the bet,” he said,“that we will be racing at the Meadowlandsnext year.”MORE OF THE SAME IN PAAlthough the situation in New Jersey andPennsylvania are vastly different for racing,where the Pennsylvaia tracks nowhave slots and table games in their racinos,harness racing still is being buffetedby politics. John Wozniak, a Democraticstate senator from Johnstown, is proposingto strip harness racing from considerationin Centaur’s Valley View projectnear the Ohio state line, and allow a developerto build it anywhere in the state.This brought a quick negative responsefrom officials in Lawrence County, siteof the proposed track and racino. CountyCommissioner Dan Vogler said 2,000permanent and construction jobs wereat stake, as well as the overall boost toeconomy of the county, if Centaur is ableto obtain financing for the $425 millionproject. Centaur, with racing commissionapproval as the last racino in Pennsylvania,has two months left before itneeds an extension of time from the racingcommission. Centaur says it still “isfully committed to the successful launchof Valley View Downs.” Wozniak says hewill know if Centaur can get the money oran extension by September, and if not heplans to push his proposal in the Senate.Commissioner Vogel says if that happenshe and his two fellow county commissionerswould go to Harrisburg to plead theircase, and would urge their legislators inthe capital to oppose the Wozniak proposal.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, July 23, 2010MONMOUTH IDEA AT BIG M?Without discussing specifics, New JerseySports and Exposition Authority Presidentand CEO Dennis Robinson hinted at a possibleMonmouth Park approach -- fewerdates and higher purses -- for the Meadowlandsharness meeting. Robinson issueda statement that read, “Our managementteam will work with the Advisory Commissionto create a new operating modelfor the Authority and its various lines ofbusiness. The implementation of these keystrategies is in the best long-term interestsof the sports complex, our customers, thestate and our hard working and dedicatedemployees. We have long advocated newsolutions for our core business of racing, animportant state industry....The MonmouthPark experiment this summer shows thatthere is a clear way forward with creativethinking and effective implementation ofnew strategies.” Robinson did not enlargeon that idea, but without slots a shortenedMeadowlands harness meeting with higherpurses -- Monmouth is racing only 50days with a million a day in purses -- is onepossible approach. Another idea, based onan idea floated by Canadian Sportsman editorDave Briggs, would bring slots to theMeadowlands, Monmouth Park and FreeholdRaceway as a cooperative ventureinvolving all 11 Atlantic City casinos asoperators. Gov. Christie, has cast his lotwith the casinos, and has chosen the politicalexpedient of no track slots.LONG ODDS ON INTERNET BILLThis week’s Washington hearing on Rep.Barney Frank’s Internet betting bill, HR2267, again produced much heat but nofire. The sparks flew with hot debate anda few fiery moments, but despite disagreementsources predict a markup and vote isnear. One part of the discussion involveda proposed amendment by John Campbell(the California congressman, not theharness driving champion) that would requirea stop-loss provision against excessiveloss by bettors. How that could beaccomplished with any sort of equity wasnot made clear. The whole bill appears toremain a longshot, but is nearing markupand a vote.ON AND ON AND ON IN ALBANYIf the New York real estate giant SLGreen Realty Trust follows up a letter ofprotest with legal action, you can forgetabout an early decision on the Aqueductracino. The letter, sent to New York lotteryheadquarters, calls the award process“flawed,” and said it was given thechoice of irresponsibly committing to anagreement that was unreasonable or indicatingthat it would commit to an MOUwith amendments that made it viable andoutline what those amendments were. Itsaid it chose the latter option in good faith,but the lottery said it had made clear toall applicants that non-conforming proposalswould be disqualified, and “we’renot talking about a technicality.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, July 26, 2010BASINAIT BEGINS LAST RUNMarty Basinait, who has led HTA memberBatavia Downs to successful operationfor 29 years, starts his final termas president and chief executive officerof the western New York OTB track asit opens its 2010 season tonight. Marty,HTA’s director from Batavia during thatthree-decade span, has announced he willretire at the end of February. Dick Seibert,chairman of the board of WesternOTB, credited Basinait with a long list ofaccomplishments that has left the trackin a strong position as the city of Bataviaundergoes expansion and renewal. Seibertsaid it was Basinait’s determined effortsconvincing Western OTB to buyBatavia Downs and revive harness racingand then championing VLTs at the trackthat led to a bright future for the track, apioneer 70-year-old operation that racedits first meeting on Sept. 20, 1940. HTAwishes Marty well. The meeting that beginstonight runs for five months, with 72racing dates on Mondays, Wednesdays,Fridays and Saturdays until Labor Day,when Mondays will be dropped.LAST SHOT FOR MASS. SLOTSSenate and House delegates are down tosix more days of debate and reconciliationof their versions of slots in Massachusetts.Gov. Deval Patrick, back froma controversial tour of Iraq and Afghanistan,says there still is time fora compromise solution.A DIRECTED VERDICT IN NJ?The more one studies the 29-page reportof Gov. Chris Christie’s advisory commissionon gaming, sports and entertainmentin New Jersey, the more one realizes thatlittle thought was given to harness racingbecause no one on the 7-person commissionknows anything about it. As MonmouthCounty freeholder director LillianG. Burry, a Republican like Gov. Christie,put it, “The report virtually ignores standardbredracing and spells the demise ofthat industry, which is unfortunate becausethis all ties into our farms and openspace and preserved properties.” TomLuchento, president of the New JerseyStandardbred Breeders and Owners Association,which has been offered a $1 ayear, 3-year lease on the Meadowlands bythe governor, noted that “A Meadowlandslease is virtually worthless without slotsgambling at the site. How do you lease orsell the Meadowlands without slots? Youcan’t do it.”LET THEM KNOW THE WHYSThe New York Racing Association has beguna program of communication with itscustomers on stewards’ rulings. At Saratogacurrently, and at Belmont and Aqueductwhen racing returns to those NYRAtracks, the three stewards will provide anexplanation of what happened and thereason for their decisions. The informationwill be carried on NYRA’s TV feedand presumably ontrack as well.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, July 27, 2010COUNTERATTACK IN NJ MESSIn the absence of larger formalized reactionto the recommendations of Gov.Chris Christie of New Jersey to sell orclose the Meadowlands racetrack, grassrootssupport is surfacing. The state’sStandardbred Breeders and Owners Association,headed by Tom Luchento, hasscheduled an open meeting for Thursdayevening in the Big M’s back paddock, atwhich racing executives and others willdiscuss a course of action. The SBOA isat the heart of the issue, being offered a$1 a year, 3-year lease on the property,with the proviso that there will be no slotsor alternative gambling approved there.The state, meanwhile, will spend millionsproviding police and administrative assistancefor the privately owned casinos ofAtlantic City.In localized action, Mayor Nancy Grbeljaof Millstone Township sent a “DearFriend” letter to concerned residents ofthe Freehold area, with copies to state legislators,reminding all about the contributionsof racing and other equine activitiesto the welfare of the state economy. Sheurged recipients to call and e-mail thegovernor and key legislators and expresstheir displeasure and views. The importanceof such a campaign was stressed inits final lines where Ms. Grbelja wrote,“PLEASE call and e-mail for the nextthree days. Only YOU can save thehorse industry.”BROOKS TRIAL NEARING ENDAfter 7 months of testimony from 70 witnesses,the federal trial of David H. Brooks,the founder and former CEO of one of thenation’s largest suppliers of body armorfor the military, is nearing its conclusion.The government’s chief prosecutor presentedhis closing arguments to the jury,and the trial once again commanded frontpage attention in New York newspapersand in others across the country. The NewYork Times recounted the sordid details ofBrooks using millions from the proceedsof his body armor business for personaluse, including “pornographic videos forhis son, plastic surgery for his wife, aburial plot for his mother, prostitutes forhis employees, a million dollar bat mitzvahfor his daughter, and $100,000 jeweledbelt buckle for himself,” along witha Bentley automobile. In one of the mostbizarre developments in this wildly bizarrecase was the argument of defenseattorneys that the hiring of the prostitutesfor employees and board members of hisDHB enterprises represented a legitimatebusiness expense “if Mr. Brooks thoughtsuch services could motivate his employeesand make them more productive.”Brooks, whose Bulletproof Stable led harnessracing last year with more than $12million in winnings, faces as much as 30years in prison if convicted, as well as additionaltrials on charges of contempt ofcourt and tax evasion on hundreds ofmillions in his body armor business.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, July 28, 2010A MASSACHUSETTS “CHASM”Deval Patrick, the governor of Massachusetts,says a chasm remains betweenHouse and Senate negotiators, and he isnot sure they will reach a compromise onslots at tracks before the current legislativesession ends Saturday night. One ofthe top Senate negotiators, Sen. StanleyRosenberg, agreed with Patrick’s assessment,saying, “There are still significantdifferences” in the conference committee.A NEW JERSEY MESSSporadic resistance to Gov. Chris Christie’sproposal to close or sell the Meadowlandshas broken out in various sectionsof New Jersey, with the issue generally dividingalong party and geographic lines.The governor has declared he no longer iswilling to “subsidize failure,” as he put it,while neighboring Pennsylvania has demonstratedthe easy way to end that is to legalizeslots and alternative gaming at statetracks. One northern legislator, State SenatorRay Lesniak, says Jon Hanson, whochaired the governor’s special committeethat drafted the proposals that Christie isnow espousing, “sells the Meadowlandsand Monmouth Park down the drain.”Tom Luchento, who as president of theNew Jersey SBOA is mustering a counterattackon the plan, said horsemen “will beleaving New Jersey in caravans for tracksin other states.” They won’t until the battleis lost, and hopefully a meetingLuchento has called for tomorrownight will produce a plan.BETTING AT SPFD, DUQUOINThe once-great Grand Circuit harnessmeetings at Springfield and DuQuoin, Illinois,fighting for their lives, got a bit ofhelp from the Illinois Racing Board thisweek. The board approved pari-mutuelbetting for six days of racing at Springfieldand for DuQuoin’s three days, Thetracks suffered quality losses when a batteredstate budget still hadn’t paid pursesthis spring that had been won last year.Springfield had only 398 stakes nominationsas opposed to 507 last year.EUROPE ONLINE BETS BOOMEuropean nations, feeling the same economicpressures as North America, areturning to legalized online betting as asolution. France, Denmark and Greeceare among the countries legalizing onlinebetting, and Switzerland, Germany andSpain are considering it. David Trunkfield,a Pricewaterhouse Coopers consultant,was quoted in today’s New YorkTimes as saying, “What’s happened is therealization that you can’t uninvent theInternet. People are gaming online. Youeither try to regulate and tax it, or peopleare going to go to the offshore operators,where you don’t get any revenue.”BROOKS LAWYER: “SHE LIES”A David Brooks’ attorney, wrapping upthe former Bulletproof boss’s federal trialin closing arguments, called the government’skey witness a confirmed liar.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, July 29, 2010D-DAY FOR AQUEDUCT RACINOA state Supreme Court judge inSchenectady, NY, was to rule today on thebid of Aqueduct Entertainment Company,formerly the dishonored Aqueduct EntertainmentGroup, to reinstate its award aswinner in the 9-year-old battle for the racinolicense at Aqueduct Racetrack. Thestate lottery commission has narrowedthe chase down to one applicant, GentingNew York, with all others disapproved.A VICTORY FOR BARNEYWhen his House Financial Services Committeeapproved Barney Frank’s Internetgambling bill yesterday, it marked anotherhurdle cleared by the Massachusettscongressman in his long fight to legalizeonline wagering. The road ahead is steep,with no bill even heard as yet in the Senate,and with full House approval uncertain.Rep. Spencer Bachus of Alabama,the top Republican on Frank’s committee,said he found it hard to believe thatthe committee would pass a bill that“would open casinos in every home andevery bedroom and every dorm room, iPhone,Blackberry and laptop.” Frank’sresponse was that, “Some adults willspend their money foolishly, but it is notthe purpose of the federal government toprevent them legally from doing it. TheFrank bill would require the treasury departmentto license and regulate onlinebetting, and a companion billwould tax such betting.MASSACHUSETTS D-DAY, TOOIt is decision day in Boston, as the conferencecommittee attempting to reconciledifferences between House and Senatebills on slots at tracks faces a tentativedeadline of 8 o’clock tonight. A state senator,Steven Panagiotakos, says, “Giventhe short time frame we have the bill hasto be agreed upon by tonight.” A bill mustbe filed by 8 tomorrow night for a voteSaturday, last day of the current legislativesession.SNAKE VENOM IN NEWS AGAINSnake venom, a quiet issue since it madenews in Kentucky a year or so ago, is backin the news. A Pennsylvania thoroughbredtrainer, Darryl Delahoussaye, whoformerly worked for barred trainer MichaelGill at Penn National near Harrisburg,has been charged with administeringthe venom and the banned substanceEmdash, and tampering with evidence.AN ALL-STAR CAST AT TIOGAAll-Star races are not new, here or in Canada,but if the cast for Tioga Downs’ fourthannual $40,000 Drivers’ Championshipshows up Sunday, it will represent a trulychampionship event. All-time leadingmoney-winner John Campbell is scheduledto make his first appearance, alongwith the seven current money-winners inthe sport: Tim Tetrick, George Brennan,Jason Bartlett, Brian Sears, Ron Pierce,Dave Palone and Yannick Gingras.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, July 30, 2010TODAY’S NEWS FROM BOSTONA compromise was reported in Massachusetts,where House and Senate confereeshave been deadlocked in their attempts toreconcile differences in their bills on casinosand slots at tracks. With 12 hoursleft to pass the legislation, a proposal hassurfaced to allow three resort casinos andtwo slot machine licenses, to be awardedto two of the state’s four racetracks thatmake the highest bids. Were this bill topass, it faces a veto from Gov. Deval Patrick,who has offered his own compromiseby agreeing to one track slots license, opento any bidder and not limited to tracks.The deadline for action is 8 p.m. tonightto provide for a vote tomorrow, the lastday of the current legislative session. Thegovernor wants the measure cleared, andis demanding the legislators also take actiontoday on other pending measures thathave been caught in the pipeline while thetwo legislative bodies argue their respectivepositions on slots at tracks, passed bythe House but rejected by the Senate.AND FROM NEW YORKState Supreme Court judge Barry Krameryesterday threw out the Aqueduct EntertainmentCompany’s bid to be renamedwinner of the Aqueduct racino franchise,worth billions over 30 years. The AEC’slawyer, Daryl Davis, called the decision“absolutely ridiculous,” and said AECwill take the decision to the AppellateDivision in Albany.NEW JERSEY FIGHTS BACKTom Luchento, the president of the StandardbredBreeders and Owners Associationof New Jersey told 150 horsemenmeeting at the Meadowlands last nightthat “We are not going quietly into thenight. We have a battle to fight and boththe thoroughbred horsemen and the standardbredhorsemen are united in thisbattle.” Luchento said, “Notwithstandingthe Governor’s Report prepared byJon Hanson, we are not folding, fading orleaving. Let me dispel the rumors. We arenot done here. We are not close to closingthe doors here at the Meadowlands or atFreehold.” Luchento said the Hanson reportwas no surprise, “given the nature ofthe New Jersey Gaming, Sports and EntertainmentAdvisory Commission (theHanson commission) but it still was a hardpill to swallow. What the Report offersare largely undoable options.” Luchentosaid the appeal to the state would benot only preservation of racing, but alsothe land that is dedicated to horse farms,training centers and the supporting industries.He called the fight “a Green Acresissue in this state,” saying half of the openspace in New Jersey has been developedand more will follow. Luchento called onhorsemen to make their concerns knownto their legislators and attend the upcoming“Gaming Summit” to include sessionsin Atlantic City Aug. 6 and at the Meadowlandsin September. His full remarksare in this week’s Track Topics.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, August 2, 2010MASS GOV DEFIES 73% VOTEThe governor of Massachusetts, DevalPatrick, showed contempt for his legislatureand his dislike for racing yesterday,vowing to overturn the overwhelming73% approval by the legislators of a gamblingexpansion calling for three casinosand two racinos, the latter to be won bybidding from the state’s four tracks. Thelegislature went to the last hours of itscurrent session Saturday, when 116 of the160 members voted in favor of the hardwoncompromise between House and Senatenegotiators. That vote is veto-proof,but two votes short of what is needed bythe Senate to override amendments fromthe governor. The Speaker of the House,who led the fight for racinos, told media,“Make no mistake about it, anything shortof Gov. Patrick signing this bill representsa decision to kill the prospects of 15,000new jobs and bring immediate local aid toour cities and towns.” He made the statement,according to the Boston Globe, with100 lawmakers standing behind him.In an interesting twist to events, however,the President of the Senate, Therese Murray,who fought hard with the governor tooppose the racinos, urged him yesterdayto sign the bill that passed. She suggestedhe do so and declare “a great victory”because she says the legislation as passedstill enables the governor to block trackslots by amendment or executive order.So the stalemate continues.USTA SEEKS MULTIMEDIA $$$The United States Trotting Associationhas issued an “all points bulletin” seekingfinancial support for an elaboratemultimedia project combining networktelevision, online episodes, promotionalexcerpts and sponsorship opportunitiesfor harness racing. USTA president PhilLangley, chairman Ivan Axelrod and executiveVP Mike Tanner call the project“a dynamic opportunity for a nationalTV show with the potential for dramaticimpact on our sport.” The interesting plotof the project calls for five aspiring modelsto seek “Starness,” the name of theshow, in a reality format to be taped withinteractive online possibilities. Televisionwould be on the Versus network, onlineepisodes delivered by Comcast, exposureon Facebook, video teasers for social networking,and live events for select winningparticipants. The five models “willenter the horse and farmland of Kentuckyto compete in a number of downand-dirtyathletic and lifestyle challenges,to ultimately prove which player has themost talent, passion and grit, collectivelyknown as Starness.”WHERE WAS CHRISTIE SUNDAYAlthough press releases indicated Gov.Chris Christie would attend Sunday’sHaskell Invitational “to show support forthe horse racing industry,” the TV trophywas presented by auto racing great MarioAndretti. Did the gov leave early?

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, August 3, 2010MASS. GOV WANTS IT HIS WAYOne might think Deval Patrick, governorof Massachusetts, would change hismind after his legislature recorded a 73%favorable vote on slots at tracks, but nosuch luck. Patrick has challenged hisHouse and Senate, in adjournment aftertheir last minute vote for the measure Saturdaynight, by refiling an amended billeliminating the racinos entirely. He earlierhad agreed to one in a compromise, buttook that off the table and told the legislatureit was his way or the highway. Thereis a gubernatorial election coming up inthe Bay State, and Patrick’s opponentswere quick to respond. The state treasurer,Timothy Cahill, one of the candidates,said if Patrick stands firm “he owns thisrecession; this is his recession,” saying thegovernor’s intransigence on the slots issuewill cost the state 15,000 jobs on topof those already lost. Robert DeLeo, theHouse Speaker who pushed the racino toits successful vote Saturday in that body,disputed Patrick’s charge of a no-bid stepthat would enrich “powerful people,” ie.track owners. DeLeo pointed out that hissolution -- and the legislators -- of threecasinos and two racinos would enable allfour of the state’s tracks to have slots thrupartnerships. Suffolk Downs runnersand Wonderland dog track already haveagreed on a joint venture, and DeLeosaid that left a license for HTA mem- berPlainridge Racecourse and RaynhamPark to share.TRIBUTE TO A GREAT LADYThe Saratogian in Saratoga Springs, NY,paid a long and glowing tribute today toVirginia O’Brien, the community sportswomanwho spent 40 years at SaratogaRaceway and was responsible for the creationof the city’s harness racing museum.Virginia died early Sunday morning at theage of 91, the first and still the only womaninducted into harness racing’s Hall ofFame Communicators’ Corner in Goshen,NY. Saratoga Gaming and Raceway vicepresident Skip Carlson, a close friend ofVirginia’s for 33 years, said, “She is absolutelyone of the sweetest people I evermet in my life. If you were a friend, youwere a friend for life -- just a lovely, lovelylady. She loved everybody associated withthe game -- grooms, driver, trainers, owners.”A great baseball fan and New YorkYankees enthusiast, Virginia watched herheroes beat Tampa Bay Saturday night,and her daughter said, “It was almost likethe fact that after they won the game, shesaid, ‘I can go now.’” The daughter, MaryJo Kowalewski, a former member of theU.S. national speed skating team, said ofher mother, “She loved sports. She hada ball wherever she was. She was quite awoman. What a trend setter. She was alwaysworking three jobs.” Mrs. O’Brienwon Saratoga Raceway’s Horsewoman ofthe Year award in 1989 and the track’sPresident’s Award for outstanding serviceto harness racing in 2000. Carlson said,“She just had a joy of life.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, August 4, 2010TRACK CUTS 157, BLAMES GOVGary Piontkowski, president and CEO ofHTA member Plainridge Racecourse, announcedthe layoff of 57 track employeesand 100 contractors’ employees workingon a slots project yesterday, blaming Massachusettsgovernor Deval Patrick, whohas effectively killed chances for a racinothat the legislature had overwhelminglyapproved.“The governor obviously doesn’t thinkthat the jobs or expansion at the racetracksis worthwhile. He took a positioncontrary to the overwhelming support ofthe Legislature and now families we’veemployed for years are wondering wheretheir next paycheck will come from. Inthis time of recession, there are not lotsof people willing to invest $200 millionand take the risk, but we are.” A spokeswomanfor the governor told the BostonHerald that Patrick’s amended bill, whicheliminates racinos entirely but faces a dubiousfate, “gives special consideration tocasino applicants who agree to hire anyworkers or employees of existing tracks.”TRACK PROBLEMS CLOSE INDYRacing at HTA member Indiana Downshas been halted temporarily as the trackseeks to remedy problems with its racingsurface, which has taken heavy hits fromalmost constant rain this spring and summer.The cancellation followed the deathof a pacer that broke down in a raceMonday night.NY ACTS, PENN NATL OBJECTSThe New York state lottery division hasapproved Genting New York as the winnerof the Aqueduct racino competitionand sent its recommendation to the toptrio that now must concur or demur. Gov.David Paterson earlier said he would approvewhatever the lottery sent him, sothe final decision now rests with Assemblyspeaker Sheldon Silver and Senate majorityconference leader John Sampson.In approving the selection of the Malaysiangaming giant Genting, lottery chiefGordon Medenica told Gov. Paterson thecompany’s proposal “was far superior inconcept, scope, detail and execution ofany we have seen in previous rounds ofevaluation.” He noted that Genting hadproposed opening a first stage, with 1,600slots, within six months of approval, andopening a second phase, with a 2,100-spaceparking garage, a new pedestrian bridgeto the Aqueduct subway station, and anadditional 2,925 machines, within anothersix months after that.Not everyone was happy. Lawyers forPenn National Gaming, which was a finalistin the last round of three left standing,fired off a letter to the lottery divisionsaying the entire selection process wasflawed. They requested that the biddingprocess be reopened to the last three bidderson a “Best Value” basis, and hintedat legal action.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, August 5, 2010LIGHT IN NEW JERSEY TUNNEL?The Newark Star-Ledger, the state’s largestnewspaper, reported this morning thatthe state’s top Democrat, Senate PresidentSteve Sweeney, said he was committedto keep horse racing at the Meadowlandsand Monmouth Park. The story, bythe paper’s Statehouse Bureau reporterMatt Friedman, said Sweeney had accusedthe governor of “abandoning” thestate’s horse racing industry. Sweeneywas quoted as saying, “We have to finda way to keep the tracks open. The governorbasically said if they die, they die.I think that’s too flippant a statement.”The Sweeney pronouncement, while encouraging,does not mean he will supportslots at the tracks or the Atlantic City casinosubsidies. He made that clear, saying,“I think it’s extremely important thatwe find a way to make sure there are nolosers in this.” Sweeney’s co-chairman ofthe summit, State Senator Jim Whelan, aformer longtime mayor of Atlantic City,was less conciliatory. He dismissed thepossible end of horse racing in the stateas “what happens in a capitalist society,”but added, “I don’t want to be hostile tothe racing industry.” The all-Democratgaming summit in Atlantic City tomorrowdrew criticism from Republicans, includingthe governor, who was not pleasedwith Sweeney’s criticism. Meanwhile, itturns out Christie’s special commissionchair Jon Hanson kept no minutesof six months of discussions.GOV DEFIANT ON MASS. SLOTSGovernor Deval Patrick of Massachusettsdropped what may be the final hammer onslots at the state’s tracks, including HTAmember Plainridge Racecourse, when hesaid in a radio interview that “I’m nevergoing to agree to a no-bid contract,” hischaracterization of the overwhelming voteby his legislature in favor of two track racinos.House Speaker Robert DeLeo, whorefused to yield on the issue, told the BostonHerald the governor’s “rigid” stanceon the entire casino bill was likely a fatalblow to the idea.AROUND THE TRACKS.....HTA member Indiana Downs will resumeracing tonight after cancelling twonights for track repairs....PhiladelphiaPark, meanwhile, is closing down liveracing until Aug. 29 for state-of-the-artground penetrating radar reworking toeven out irregularities and unevennessof its track....Reductions in takeout rateshave produced wholesome gains at bothTioga Downs in New York and BalmoralPark in Illinois. Balmoral’s 15% takeouton its Pick 4, has increased from a precut$7,698 a night figure at the start of theseason to $16,357 a card in July, an 84%increase over numbers bet on the pools inJuly of 2009, before the 40% reductionin takeout....A significant track recordfor 2-year-olds at HTA member BataviaDowns, where the Art Major colt FlipperJ won in 1:54.4 over Batavia’s halfmiletrack.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, August 6, 2010NOW THE POLS TAKE OVERThe New York Division of Lottery hasfinished its job, having disqualified twofinalists for the Aqueduct franchise fornot following its rules, and having vettedthe lone remainder, Genting New York,and approving the Malaysian-owned firmwith laudatory comments on its full andcomplete application.One might make the mistake that thegame played for nine years by politiciansin New York was over. Not quite. Thegovernor seems satisfied, but the leadersof the New York legislature, who despisequick action on anything, now are talkingmore delay. New York racing, andthe state itself, urgently needs the upfrontmoney offered by Genting -- $380 million-- but even that is not enough to spur thelegislators, led by Assembly leader SheldonSilver and Senate conference leaderJohn Sampson, to quick action. The twonow say the matter is “under review,”with no indication how long their investigationof Genting will last. And that’sonly the beginning of what’s left. OnceGenting passes legislative muster, if itdoes, the contract moves on to the attorneygeneral for his approval, then to thestate comptroller for his. Genting says assoon as the contract is finally approved itcan have slots operating at Aqueduct insix months. But time stands still inNew York. Six months is but a tickon its legislative clock.OUR SPORT’S DAY IN THE SUNThe $1.5 million Hambletonian for 3-yearoldtrotters, harness racing’s greatestrace, is up for grabs tomorrow, with awide open thriller in prospect starting at3 p.m. eastern time on NBC television.The New York Times, whose coverage ofthe Kentucky Derby includes sneeze-bysneezereporting of every horse for a weekbefore the race, has chosen once againto ignore the race, giving coverage to a$70,000 Saratoga event instead in today’seditions. No one ever said life would beeasy. Cassis, Lucky Chucky, Pilgrim’sTaj, Muscle Massive and Holiday Roadare the top choices. Any one of thosewould be no great surprise. The supportingcard includes the $750,000 HambletonianOaks for 3-year-old trotting fillies, the$500,000 Peter Haughton for 2-year-oldtrotting colts, $437,000 Merrie Annabellefor 2-year-old trotting fillies, $300,000Nat Ray for older trotters, $182,500 U.S.Pacing Championship for older pacers,$275,000 Mistletoe Shalee for 3-year-oldfilly pacers, $248,000 Lady Liberty forpacing mares, two $115,000 divisions ofthe Oliver Wendell Holmes for 3-year-oldcolt pacers, and $100,000 Perretti FarmsMatchmaker for trotting mares. All ofthis will be presented in a carnival-like atmospherewith entertainment for all. Thegovernor of the state of New Jersey andhis political advisers are proposing to tossall of this away by ending harness racingat the Meadowlands.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, August 9, 2010SHORT-CHANGED AGAINIt may simply be editorial judgment andnot a deep dark plot, but harness racing istaking a ferocious beating these days fromthe New York Times. It’s national editionlast Friday ignored the sport’s greatestrace entirely, with no mention of the $1.5million Hambletonian that drew 26,712 tothe Meadowlands. On race day Saturdayit carried one sentence, including a smallheadline that read, “Rich Race, DesperateTrack.” The single sentence read, “TheHambletonian, the richest race in harnessracing, will be run Saturday at the Meadowlands,where the sport’s future is in seriousdoubt.”Sunday, when in the past a photographerand staff writer had covered the classic,eight lines under Sports Briefing, witha headline reading “A Close One at theHambletonian.” In the same edition, an18-paragraph story and three-columnphotograph of Blame beating QualityRoad in the Whitney at Saratoga, wherethe paper’s racing writer, Joe Drape, wasstationed. Two days earlier a sparklingfull page width feature by Bill Finley onLisa’s Booby Trap, a club-footed filly givenaway by her original owner, bought oncredit by a penniless trainer with only astation wagon and dog to his name, andnow undefeated in five starts, includingthe Loudenville stake at Saratoga lastweek. There are similar, but untoldstories, in harness racing.No one expects equal coverage with therunners, but the disparity between coverageof Blame and Muscle Massive, thewinner of a million and a half dollar race,is hard to justify.The danger in all this is third person, notthe Times alone. The paper is journalism’strend setter for newspapers all overAmerica, and beyond. If it appears in theTimes a story has legitimacy; if it doesn’tit gets the same neglect elsewhere.If Jon Hanson, the front man for governorChris Christie on the Meadowlands issuein New Jersey, really wants to do somethingto help the Meadowlands, which ishighly questionable, he should arrange ameeting between Christie and Tom Jolly,sports editor of the Times, for a serioustalk about coverage of the sport.ANOTHER STORY WITH NO ENDThe Aqueduct racino circus, now nineyears in production, is off by itself as a politicalsideshow. It may play to a conclusion,however, before legislators in Massachusettsagree on a three-casino, tworacino format. Where it stands at the moment,two thirds of both houses of the legislaturewill need to reject the governor’samendments, which would bring trackracinos. If a majority buys the amendment,racinos are dead. If they send thebill back to Gov. Deval Patrick, he hasvowed to veto it, ending the matter.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, August 10, 2010ROSECROFT WINS ONE IN MDA district court judge in Maryland hasgiven Rosecroft Raceway a green light toproceed with its lawsuit charging conspiracyand other charges against the state’sthoroughbred industry. The defendantshad asked the judge to drop nine chargesagainst them, but he denied their requestand dismissed only two. Cloverleaf Enterprises,the owner of Rosecroft, allegesthat the runners in the state put them outof business by colluding and asking otherrunning horse tracks to refuse to send simulcastingsignals to Rosecroft. Cloverleaftold the judge the denial was timed tooccur just before the biggest racing day ofthe year, the Kentucky Derby. The judge,Richard D. Bennett, ruled that Cloverleafhas sufficient evidence to move forwardon the seven charges he approved. “Cloverleaf’sallegations are sufficient to statea claim both the Maryland Jockey Cluband the horsemen engaged in concertedactivity with out-of-state racetracks byrequesting that they stop sending theirsimulcasting signals to Rosecroft,” JudgeBennett wrote. “There is no dispute thatby Kentucky Derby day at least 17 outof-statetracks had ceased sending simulcastsignals to Rosecroft,” he found. Thedefendants argued that the tracks ceasedsending signals because Rosecroft wouldnot pay millions due them for signals theyhad sent. Rosecroft wanted the feereduced, but the MJC refused, andRosecroft closed down in July.NJ SENATOR BLASTS REPORTAs a rhetorical civil war between northand south widens in New Jersey, a Democraticactivist senator from northernUnion County is proposing two possiblesolutions to the battle by helping both AtlanticCity casinos and Jersey’s four racetracks.Senator Raymond Lesniak, whoalso has proposed sports betting, whichis illegal under federal law, is suggestingusing intrastate online gaming to fundboth casino restructuring and support forracing, without the casino subsidies thathave existed and been a sore point withthe casinos. Lesniak thinks gross revenuescould reach $210 to $250 million,producing $47 to $55 million for the stateand providing 1,586 to 1,903 new jobs.He proposes using some of the money forpurse supplements and sires stakes, alongwith a sales tax exemption for sire andbroodmare transactions. He blasted theHanson report recommending closing ofthe Meadowlands, saying, “Legislation Ihave introduced, S-490, to authorize internetgaming from servers located in AtlanticCity, needs to get moving now. Itwill produce more revenue for reinvestmentin Atlantic City, much needed revenuefor the state, keep our valuable racingindustry alive, and create thousandsof jobs for our residents.” Lesniak saysthe Hanson report lacks a source of fundsfor needed capital developments. Howabout a consortium of AC casinos runningslots at the Meadowlands?

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, August 11, 2010GENTING GETS SENATE OKJohn Sampson, majority conferenceleader of the New York Senate, put thatbody’s seal of approval on Genting NewYork yesterday to build and run the Aqueductracino. With the governor alreadysigned on to accept the Malaysiangiant gaming company for the 30-yearcontract, the issue falls to one man, AssemblySpeaker Sheldon Silver. If he approvesas expected, and final governmentalapproval details are resolved, Gentingsays it will begin construction and havea temporary racino with 1,600 slots openin six months, paying New York State anupfront fee of $380 million for the privilegeof ultimately running 4,500 machinesat Aqueduct. That would end a nine-yearmarathon since the concept was approvedby the legislature. The final presentationby Genting representatives won overSen. Eric Adams, chairman of the stateracing and gaming committee. He hadgrumbled earlier about only one applicantleft standing, but said after hearingGenting’s presentation that he was “moreexcited than ever,” and called the decision“a win-win for New York.”FIVE CREDITORS GET XANADUFive major lenders have taken controlof the stalled massive mall project calledXanadu near the Meadowlands. The fivegained the project by refusing to extend aloan to Colony Capital LLC, a California-basedcompany with Canadianand other partners.Colony confirmed the turnover yesterday,unhappily, saying the lenders “ignoredour proposed business plan and were unsupportiveof a restructuring. Becausethe lending syndicate would not grant anextension of our loan, they are taking controlof Meadowlands Xanadu as of todayand it will be up to them to determine thefuture of this facility.”MASS SLOTS STILL ALIVEThe determined Speaker of the MassachusettsHouse, Robert DeLeo, who hasbrought the state’s consideration of expandedgambling to a halt by insistingon slots at the state’s four tracks, now isconsidering calling lawmakers back intosession for reconsideration. The movefollows a $665 million federal grant foreducation and Medicaid, which will requirelegislative approval for distributionplanning.ELSEWHERE....ONTARIO’S finance minister, DwightDuncan, announced an 18-month studythat will lead to a launch of Internet bettingin 2012....MTR GAMING says it isconsidering spending as much as $100million building a racino at its SciotoDowns operation if proposed rules aresatisfactory....KENTUCKY RACING OF-FICIALS are discussing rules for out-ofcompetitiondrug testing in state racing,including horses housed off-track andout of state.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, August 12, 2010SILVER SIGNS, GENTING INThe last link in the chain of command inNew York, Assembly Speaker SheldonSilver, said yes yesterday to approval ofMalaysian gaming giant Genting’s bidto build the Aqueduct racino. That sealsthe deal, except for what should be routineapproval of state agencies involvedwith formalizing the 30-year contract, theattorney general and state comptroller.Once those matters are resolved, Gentingcan start building the project, nine yearsin the making, and the company says itwill have a temporary facility, with 1,500of its 4,500 slots, up and running in sixmonths. Estimates are in the $65 millionrange for annual financial gain for the beleagueredNew York Racing Association.New Jersey racing interests can only sitand watch enviously, as its Atlantic Citycasino industry refuses, with backingfrom the state, to relax its grip barringslots at that state’s tracks, including theMeadowlands and Freehold.CENTAUR TO SELL PA. LICENSECentaur, the Indiana owner of HTA memberHoosier Park, has announced it is givingup on its Valley View Downs project inwestern Pennsylvania, and hopes to sell thesite and its harness racing license at auction.Failure in a two-year fight to obtainfinancing for the $450 million track andracino led to the decision, along with aSept. 5 expiration of its license.Centaur is seeking an extension.Centaur obtained the harness licenseafter it had struck a deal with CarmenSchick, who owned the 250-acre site andalso sought a license but was denied oneby the harness racing commission. Beforeit could gain approval of the stategaming and control board for the racino,Centaur lost its $995 million financialbacking from Credit Suisse Bank, and hasnot been able to replace it following thecollapse of the credit markets two yearsago. Pennsylvania racing law reportedlyallows transfer of the harness racing licenseto a new owner should the propertybe sold. Centaur hinted it might hold anequity interest in Valley View Downs afterthe property is sold at auction.SIGNS OF LIFE AT ROSECROFTNBC Washington reports this morningthat Rosecroft Raceway, closed since July1, has stirred interest in several potentialowners, and Cloverleaf Enterprises CEOKelley Rogers is “very optimistic aboutthe things that are happening, about theprogress we’re making, and we’re hopefulwe’ll have a good and favorable resultfor everyone.”AT OTHER HTA TRACKS....Harrington Raceway will offer its first Saturdaynight card in 10 years this week aspart of the USTA’s Back to the Track celebration....FreeholdRaceway, the nation’soldest pari-mutuel track, gets its summerfallmeet underway today, racing Wednesdaythru Saturday afternoons.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, August 13, 2010“BACK TO TRACK” WEEKENDTwenty-one pari-mutuel harness trackswill participate this weekend in theU.S. Trotting Association’s “Back to theTrack” promotion, providing gifts includinga grand prize at each track of an allexpensetrip to the Little Brown Jug inDelaware, Ohio, next month. A $50,000guaranteed interstate Pick 4 on racesfrom the Meadowlands, Northfield Park,Empire City at Yonkers, and Balmoralalso is featured, as is a “Dueling Double”with four races from Tioga Downs andfour from Monticello. Some tracks are offeringfree admission and free programs,rides in the starting gate, visits to the racecaller’s booth, and tickets to area sportsand other entertainment events. IndianaDowns is racing 6 of its 14 races tomorrownight at distances other than a mile,with 12 starters allowed and supplementedpurses, including 3% allocated to outof-the-moneyhorses.MAJOR EXODUS IN ILLINOISIn a long feature story by reporter MarciaMartinez, the State Journal-Registerin Springfield, Illinois, has chronicled asteady outflow of harness racing talentfrom the state, including Ervin Miller, oneof the sport’s top trainers, who relocatedhis family from Sherman near Springfieldto New Jersey. His brother Andy and wifeJulie, a trainer, as well as HTA’s four-timedriving champion Tony Morgan, andtwo-time champion Tim Tetrick areamong others who left.Pat Berry, Brent Holland, Tyler Buterand Brandon Simpson are also namedin the story. Purse money, flowing fromslots, is the primary reason for the moves.Illinois, without slots and strapped formoney, did not pay its 2009 purses fromthe state fair meeting at Springfield untillate this spring. Springfield’s Grand Circuitmeeting, once a shining stop on thecircuit, drew 398 horses this year comparedto 507 a year ago. Miller, who usedto race 45 horses at Springfield, says hewill race only 20 or 25 this year. He saidslots at Balmoral south of Chicago wouldkeep money in Illinois rather than flowingto riverboats and racinos in Indiana.POTPOURRIAttendees at the Illinois state fair nextTuesday can hear Thomas Schwartz, anIllinois state historian from the AbrahamLincoln Presidential Library and Museum,speak on Lincoln’s involvement withhorses....The Harness Racing Museum’sCurrier and Ives exhibit is on display thismonth at the museum....Las Vegas stripgambling revenue fell 7.6% in June, thethird straight month of declines....PennNational Gaming held a ground breakingceremony for its Toledo, Ohio, casino, thefirst of four to get underway in the state.Located on Interstate 75 near downtown,construction starts in two weeks, withcompletion in 2012....No quick specialsession on slots in Massachusetts, andchances dimming for 2010 action.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, August 16, 2010NEW INTEREST IN ROSECROFTIt’s amazing what a difference an electioncan make. The upcoming gubernatorialrace in Maryland has triggered new andsudden interest in the welfare of RosecroftRaceway, where little concern was shownwhen the track began to slide away twoyears ago. Former governor Robert J.Ehrlich, running for the office again, toldformer Rosecroft employees, “If we winthis election, I’ll put my heart and mind,and everything I have, to get this placeup and running again. If I don’t win thisrace, I don’t know. I’m out of politics, butI don’t know what happens to this place.”Ehrlich blamed the state legislature fornot authorizing slots at the site. Cynicismwas the response of Cloverleaf Enterprises,horsemen owners of the track. Theirlobbyist, Gerard Evans, called Ehrlich’sremarks “a political carnival,” and said,“There’s nothing Gov. Ehrlich can do tohelp Rosecroft unless he wants to congratulateGov. O’Malley for stepping upand trying to do so.” Mark Vogel, formerowner of the track and hopeful of returningto that role, told Ehrlich, “It’s obviousyou care more.” Gov. Martin O’Malley,meanwhile, reported that a new buyerwas interested in the property and hopedto resolve the simulcasting boycott imposedby the runners that led to Rosecroftclosing. A bill to allow card games at thetrack passed the Senate but died in theHouse, also contributing to the demiseof the former HTA member.A RACING SMORGASBORDGaming exchange Betfair is preparing tolaunch a trading platform in England laterthis year to compete with the LondonStock Exchange. New York powerhouseGoldman Sachs reportedly has boughta 12.5% stake in the venture. The NewYork Stock Exchange also opened a Londonbranch last month....The NationalFootball League, long opposed to onlinegambling, has changed its position sinceBarney Frank’s 2267 was amended toexclude sports betting....HTA memberThe Red Mile, which opened its summerfallseason yesterday, will feature “Dollar/CollegeNights” on Thursdays, withfree admission and programs for collegeID holders. One dollar draft beers, softdrinks and hot dogs also will be featuredon those nights, and “Sippin’ Sundays”will offer wine and bourbon specials.There also will be a nightly $1 Pick 4....Alengthy Bill Finley feature, with large picture,in the sports section of the nationaledition of the New York Times, highlightingthe Illinois county fair exploits of95-year-old driver Leo Burns and his onehorsestable, the trotter Winsome Wyoming.The two have won 28 of 44 racesand $53,065 at the fairs....Empire Resorts,owner of Monticello Raceway, reports increasedsecond quarterly revenue of 5%but a net loss of $9 million for the period,most of it due to a $7.1 million exit settlementto former chief executive officerJoseph Bernstein.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, August 17, 2010$1.3 BILLION. WHY NOT?A report this morning from Kuala Lumpurin Malaysia, headquarters of Gentinggaming, says the company will spend $1.3billion building the racino at AqueductRacetrack. Why not? Genting gets a 30-year lease, which should give it adequatetime to brush off the $1.3 billion and addbillions more. The company’s shares rose6.2% in Singapore yesterday, but the risewas not attributed to winning the racinoaward. Instead, a release in the StraitsTimes talked of “bullishness about thetourism sector...with visitor arrivals inSingapore hitting record highs in successivemonths since the start of the year.”SPEAK OF WORTHY CAUSES....New Mexico, like many states, has a statelottery, but with a worthy difference. Bylaw, at least 30% of lottery revenues in“The Land of Enchantment” must go to ascholarship program to cover tuition forNew Mexico students who attend statepublic colleges and universities. That30%, in the most recent fiscal year, contributed$43.6 million to the college scholarshipfund. The figure represented anincrease of 6.8% in the 2010 budget yearthat ended in June. Lottery officials saythe jump was accomplished by holdingdown expenses, with lottery salaries frozenand vacant positions not filled. Ticketsales rose for the first time in threeyears, although minutely, up a littleless than 1% at $143.6 million.SILVERMAN, OTHERS BETTERHarness racing’s walking wounded arerecovering, with hopes of returning to actionbefore year’s end. Ellen Harvey ofHarness Racing Communications reportsRichie Silverman, whose first big movetoward fame was winning HTA’s JuniorDriving Championship years ago when hewas a kid, is gaining ground in his battleagainst two broken ankles and a severeconcussion suffered in a multiple driveraccident at the Meadowlands. Here, forthose who might like to send regards tosome of the top men sidelined, are theiraddresses, alphabetically.Clint Galbraith, Rodney Farms, P.O. Box902, Scottsville, NY 14545-0902Marcus Johannson, 66 Mill Run West,Hightstown, NJ 08520Jim Meittinis, 19 Barclay Court, Bordentown,NJ 08505Aaron Merriman, 223 Washington Drive,Northfield, OH 44067Richie Silverman, 9648 Wyeth Court, Wellington,FL 33414MI LOSES, STRONACH FRETSMI Developments, which took over frombankrupt Magna Entertainment this year,lost $6.2 million in the second quarter ofthe year. Boss Frank Stronach has calleda meeting of horsemen at Santa Anita,presumably to discuss his proposal for 140racing “anytime” racing dates, usedwhen most likely to attract fans.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, August 18, 2010MONMOUTH FIGHTS BACKMonmouth County in New Jersey, whichstands to lose scores of green space horsefarms and gain more housing projects ifGov. Chris Christie’s Jon Hanson recommendationsare put into effect, is fightingback. The county’s Board of Chosen Freeholdershas written to Christie, outliningthe impact the Hanson report would have,saying, “If horse racing were to end inNew Jersey and all of these horse breedersmoved out, what do you think would happento the farms? Builders will come inand put up housing developments.” Thearea also includes two racetracks -- MonmouthPark and Freehold Raceway --and a Freeholder from Oceanport, whereMonmouth is located, said the state shouldthink about building a bridge of self-sufficiencyfor racing rather than abandoningit or closing it down. The August 12resolution, as reported in the central NewJersey Examiner serving the harness racinghotbed that includes Allentown, asksChristie to consider the benefits of bothharness and thoroughbred racing “onNew Jersey’s economy and quality of life,particularly in Monmouth County.” OneFreeholder told the governor, “Losinghorse racing would negatively impact ourfarming community and quality of life,”and another noted that “Horse racingsupports other farmers who provide feed,veterinarians and farriers, tack shopowners...and keeps 13,000 New Jerseyansemployed.”WHICH RAISES A NY QUESTIONA story in the Albany Times Union thismorning rhapsodizes over the impactthe Genting deal can have on thoroughbredracing in the state. The piece says,in small part, “The deal’s impact on thestate’s beleaguered horse racing industryand its communities would be tremendousbecause portions of the money bet on theslots would go toward New York RacingAssociation operations at Saratoga RaceCourse, Aqueduct and Belmont Park.”The story goes on to say NYRA would“get 7% of gross gambling revenue fromGenting, and an additional 6.5% wouldbe dedicated to the thoroughbred industryfor race purses at NYRA tracks,” resultingin an additional projection of $29.3million a year. NYRA president CharlesHayward was quoted as saying, “It’s ahuge amount of money.” It is indeed, andthe question arises, would any of it go toharness racing? We are asking New YorkState Senator Eric Adams, chairman ofthe state Racing, Wagering and Gamingcommittee, and will report his response.NEW BATTLE OF GETTYSBURGThis one is not between north and south,but between the good burghers of thetown of Gettysburg where the historicbattleground is considered holy ground.A decision is four months away, but morethan 300 gathered last night to hear MasonDixon Resort and Casino unveil itsplans. Turns out Penn National willoperate the project if it is approved.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, August 19, 2010HARNESS IN JOHNSTOWN, PA?Daryl W. Price, COO of a company calledAmerican Harness Tracks, Inc., has sentout releases of an ambitious letter sent tothe Pennsylvania Harness Racing Commission,outlining plans for a mile harnesstrack and entertainment complex inJohnstown, PA. Price says the company“is committed to making the premier harnesstrack in Pennsylvania,” with plansto construct a one-mile oval and backstretchwith a state of the art equinemedical center, a water park, conventioncenter, and wedding complex. State SenatorJohn Wozniak says the company hasLas Vegas contacts that could be helpful,and he thinks they are for real, but says,“I’m not going to get too worked up. Thereare a lot of moving parts to this. I thinkwe can say we’re hopeful.” Wozniak saysthe company contacted him last April afterseeing his name in the paper, statinghis frustration at the lack of a casino inPhiladelphia and no progress for Centaurin western Pennsylvania. Price says brothersJohn and Bob Biros, identified as “successfulreal estate developers in westernPennsylvania,” are CEO and chairman ofAmerican Harness Tracks, and they planto turn Johnstown, best known for thegreat flood of 1889, into a tourist attractionand vacation destination. Price saysthe company has commitments for trainingand breeding. Johnstown’s populationis 21,000, its metro area 144,319.Pretty big plans for a small area.AROUND THE TRACKS.....President Roy Arnold of Arlington Park inIllinois says he believes there will be legislativeaction on slots at tracks after the Novemberelection, but if not it could markthe end of billion-dollar horse racing inthe state. Rumors have swirled about apossible sale of Arlington, but Liz Harris,a spokesperson for Churchill Downs,which owns Arlington, said “that isn’teven something that’s in consideration.It would be like asking is Churchill forsale?”...Frank Stronach has announcedthat Santa Anita will go back to a dirttrack at the end of this year’s racing. Itwas a decent week for Stronach. A courtin Canada approved Magna International’splan to pay him $863 million in stockand $300 million in cash to give up controlof the company. MI stock is up 30% sinceMay 5, a day before Stronach agreed togive up control....Keeneland in Kentuckyis offering buyouts to some longtime employees,a cost-cutting reaction to declinesin revenues. Keeneland’s horse salesdropped from $815.4 million in 2007 to$600.3 million in 2008 and to $362.2 millionlast year....Sam Houston Race Parkin Houston, Texas, will not request thoroughbreddates for 2011. The track saysit is willing to transfer some $4.8 millionin its purse account to Lone Star Park inDallas so that track can improve its product.Sam Houston may try a shortenedexperimental mixed breed meet featuringquarter horse racing.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, August 20, 2010WONDERLAND ENDS 75 YEARSAfter 75 years as a Boston dog track inthe suburb of Revere, Wonderland GreyhoundPark has announced it has calledit quits. The public outlawing of dog racingtwo years ago foretold the end, andGov. Deval Patrick’s refusal to supporthis legislature’s vote to allow two racinosin Massachusetts sealed it. Wonderland’sclosing announcement said it was ceasingsimulcasting immediately because itno longer could compete “in a drasticallychanged gaming market” with gaming inneighboring states. Suffolk Downs, Boston’sthoroughbred track, had obtainedan option two years ago to buy Wonderlandif Suffolk won a racino license, butwith that not materializing and Suffolkfighting its own battle -- it is cutting pursesby 26% -- that possibility now seemsremote.OAK TREE MOVES AFTER 41The California Horse Racing Board, in asurprising 6-0 decision, denied Oak TreeRacing Association a license to race atSanta Anita this fall, after 41 years of operationthere -- in view of horsemen’s objectionsand Frank Stronach’s announcementthat the racing association wouldnot be welcome after this season. It nowappears Oak Tree will race its fall meetingat Hollywood Park. Both the CaliforniaThoroughbred Trainers and ThoroughbredOwners of California asked theboard to deny Oak Tree racing atSanta Anita, citing track concerns.BOY WHO CRIED BIDDEFORDYou all know the story of the boy whocried wolf. There’s a new one out now, asScarborough Downs again is rattling thesaber about moving out of Scarborough,and Biddeford has begun its bid for thetrack to relocate. Scarborough has votedagainst slots, and now Biddeford’s citycouncil has voted to seek voter approvalof them this November. Sharon Terry, thedetermined lady who inherited ScarboroughDowns from the late Joe Ricci, hasindicated she is serious about picking upher marbles and moving lock, stock andracetrack to another location. Biddefordis putting out the welcome sign.ACTIONS AT NY HTA TRACKSVernon Downs gets underway with $7million in track improvements today, includinga new flexible banquet facility designedto hold small gatherings and banquetsup to 400; a 5,000 square-foot roofterrace; three bars; a new exterior patio;and a simulcasting facility with a 33-footprojection screen....Batavia Downs is takingadvantage of the new state law allowingracino operation until 4 a.m. in returnfor an extra 1% tax on revenues. Thathit will cost Batavia $350,000, accordingto president and CEO Marty Basinait....Oh not, not again! The New York DailyNews raised questions today about rumoredmob ties of Aqueduct racino winnerGenting, invoking the name of PansyHo, daughter of Stanley, longtimeruler of Hong Kong gaming.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, August 23, 201037 SEEK TO RUN OHIO GAMINGGov. Ted Strickland of Ohio hopes to appointthe state’s first Ohio Casino ControlCommission by the middle of September,but one thing is certain. Seven memberswill be appointed, but 30 more will be disappointed.The Columbus Dispatch reportedyesterday that a wildly disparategroup seeks membership on the commission.The paper says the cast of hopefulsincludes a UN appeals tribunal judge, anunemployed landscape architect, severallawyers, naturally, and a couple of cops.Whomever Strickland appoints will havepower to oversee and regulate the operationsof Penn National Gaming, which isbuilding casinos in Columbus and Toledo,and Cleveland Cavaliers majority ownerDan Gilbert’s Rock Ventures, the successfulbidder to build in Cleveland and Cincinnati.Commission members will be paid $60,000a year, but the Dispatch pointed out thatStrickland has strictures on his sevenchoices. The state Senate has approvalpower; there must be at least one lawyerand a certified accountant; one membermust live in one of the four counties hostingthe casinos; the commission can haveno more than four members of the samepolitical party; and no people affiliatedwith either developer may serve. The papersaid Strickland’s choices will reflect“whether he wants to regulate thecasinos with an iron fist, a featherduster, or something in between.”USUAL HOPE AT ROUND TABLEThe customary annual motif of optimismwas in evidence yesterday at the JockeyClub’s round table conference on matterspertaining to racing in Saratoga Springs,complete with happy spins despite acknowledgeddark clouds overhead. StevenDunker, chairman of the New YorkRacing Association for the last sevenyears, said he was never more optimisticthan he is right now, undoubtedly seeingsugar plums as construction nears on theAqueduct racino project, which startedtwo years before Dunker took office. HTAdirector Nick Eaves of Woodbine cited aneed to explore all opportunities, and indicatedWEG’s project with giant Cordishcorporation of Baltimore on an ambitiousoutdoor retail mall and entertainmentcomplex to be called Woodbine Live! onits spacious grounds would be breakingground shortly. Jim Gagliano, COO ofthe Jockey Club, turned a diminishingthoroughbred foal report into good news,saying, “We may have less foals and lessracing, but we expect to have better horsesand better racing.” That commentarysummarized the hopes and aspirations ofall racing for a silver lining to the presentdark clouds. Dennis Robinson, speakingfor the Meadowlands and MonmouthPark, did not dwell on the savage Hansonreport threatening racing, but calledthe Monmouth shortened-season, higherpursesexperiment proof that innovativechange can have positive results.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, August 24, 2010NJ POLL BACKS RACINGA Quinnipiac University poll of 1,190voters shows a majority in favor of NewJersey keeping racing alive. The pollshows 44% in favor of racing being maintainedand supported, 39% opposed, and16% undecided. The narrow margin inthe Aug. 9-17 period indicates a need forsome strong public relations work by racinginterests in the state.NEW BATTLE OF GETTYSBURGForces favoring a Penn National-operatedcasino a half mile from the historicbloodiest battlefield of the Civil Wargained ground and lost some last week.The Gettysburg Battlefield PreservationAssociation announced its support of theproject to be built on the site of an existingconference center half a mile from thebattlefield, but the national commanderof the American Legion opposed it, callingit “a national disgrace.” The head ofthe Legion’s Gettysburg post, RichardBaumgardner, told the Gettysburg Timesthat his post was never consulted, that itremained neutral in the battle, and thatthe national commander, Clarence E. Hill,“has no idea what he’s talking about.”The proposal, one of four being considered,calls for 600 slots and 50 gamingtables in a “resort casino.” Further west,the famed Nemacolin Woodlands Resort,built some 50 miles from Pittsburgh byJoe Hardy, former harness racingowner and owner of 84 Lumber,also is seeking the gaming license.BETFAIR IN CALIFORNIA?Legislation to raise takeout rates, supportedby tracks and horsemen, has been introducedin the state legislature. Althoughwithout much fanfare, the bill -- AB 2414-- also would allow exchange betting inthe state, and naturally has the supportof the giant Betfair. That English-basedbetting exchange already has establisheda strong California presence with its acquisitionof TVG, the all-racing televisionnetwork. The current legislative sessionadjourns at the end of this month, and itis not clear whether the legislation will beconsidered before adjournment.BATTLE FOR EMPIRE, TOOJoseph Bernstein who walked away witha $7 million settlement when ousted asCEO last year, now threatens “a billiondollar class action lawsuit,” indirectly involvingGenting Malaysia, parent of thewinner of the Aqueduct racino contract.Bernstein says two Empire directors, Michael(Mickey) Brown and Au Fook Yew(also known as Colin Au), conspired withKien Huat Realty, a Genting operation, inhelping Genting win the New York franchise.Bernstein wrote to Au, saying theywould bury Empire’s stock through theiractions, and end up with years of classaction lawsuits. His solution? Brownand Au should resign as directors and letBernstein and Louis Capelli, known forhis Concord fiasco, take over Monticelloand become Genting participants atAqueduct.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, August 25, 2010MASS. SLOTS DEAD FOR 2010Philosopher Yogi Berra famously said“It’s not over until it’s over,” and MassachusettsHouse Speaker Robert DeLeomade fairly clear yesterday that it’s overfor this year as far as slots at tracks areconcerned. When protracted debate carriedthe legislature to its closing hours beforepassing a bill calling for three casinosand two racinos, Gov. Deval Patrick tookadvantage of the timing and sent the legislatorsan amended bill killing the racinos.With the legislature shut down forthe session, the slim chance for racinosrested on special sessions. Senate PresidentTherese Murray, who sided with thegovernor, announced that there would beno special session of that body, and yesterdayHouse Speaker DeLeo told the BostonHerald, “I think the Senate’s presidenthas been pretty clear that she’s abouta couple votes short in terms of comingback, so right now I don’t think that isan option for us. So I’m moving aheadaccordingly.” He was asked if chanceswere “pretty low” for any action on slotsat tracks this year -- a special project andinterest of his -- and he responded, “Well,yes.” He also said that action on divvyingup $450 million in federal Medicaid relief,which would require two-thirds approvalin both House and Senate if theywere in session, could be accomplished ininformal session if need be. Like the oldBrooklyn Dodgers, there’s alwaysnext year.A TALE OF TWO CITIESNot the Dickens version. The racing edition,from L.A. and New York. On thewest coast, news that the bill providing foran increase of 2% in takeout on exoticsand exchange betting is progressing in theGeneral Assembly, with a third reading inthe Senate and referral to the Committeeon Rules. A two-thirds vote is requiredfor passage. The state’s thoroughbredhorsemen and Del Mar favor the legislation;Santa Anita and Hollywood Park reportedlydo not.On the east coast, NYRA President andCEO Charles Hayward told CNBC in aninterview that takeout was too high, saying“We’re taking too much out of thecustomer’s pocket, and we’re not returningenough to them after each race is run.It sounds a little counter-intuitive, but themore money we put back in the people’shands the more money they will bet backin, so a reduction in takeout could actuallybe more beneficial for us.”SPEED AT SARATOGA HARNESSThey’re burning up the track with blazingmiles at Saratoga Gaming & Raceway.Tracey Brainard sent out ScorpionMoon to win the $66,000 August Fun in1:54, a world record for older geldings ona half-mile track. The Lou Pena-trainedArts Ragin Jet won the $124,000 final ofthe Joe Gerrity Jr. pace in 1:52.3, andKevin Gee’s pacer Joey the Czar won aNYSS pace in a track record 1:51.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, August 26, 2010THE SPEAKER SAYS “WHOA”The California Racing Board’s wild rushtoward exchange betting, which wouldgive Betfair the first U.S. foothold it haslong sought, was brought up short yesterdayby the Senate President pro tem,Darrell Steinberg. His office announcedthat the confirmation of four members ofthe California Horse Racing Board, includingits chairman, Keith Brackpool,and its much publicized “10” member,Bo Derek, along with members David J.Israel and Richard A. Rosenberg, wouldnot be considered at the moment. Steinberghas been reluctant to approve confirmationsthat would affect a new governorwhen Arnold Schwarzenegger leavesoffice in January. A spokeswoman forSteinberg said merely that “The pro temneeded more time to think about the appointment,”but Capitol Weekly in Sacramentoreported that Brackpool “nowfinds himself in the middle of a bitter fightover AB2414, a bill authored by AssemblySpeaker John Perez, that would makehuge changes in horse race betting in thestate.”Robert Hartman, general manager ofGolden Gate Fields, dropped fuel on thefire when he said a statement of Betfair’sStephen Burn, Betfair’s principal figureheadin America, was not true. Burn hadagreed with racing board Executive DirectorKirk Breed that “All of thestakeholders were involved in theboard’s decision to approve exchange betting.”Hartman said that was not so, thathe was at the board’s August 19 meetingand the idea of putting exchange bettinginto the bill was never raised. He added,“There was never a conversation regardingexchange wagering. In the past therewas some discussion on the topic, but therehas never been any lengthy exchange regardingthe specifics of exchange wagering.”The Los Angeles Times reportedthat “Republicans have a number of otherproblems with the bill, most notably thatit seeks to implement a major policy initiativewith only one week left in the legislativesession. This bill is the antithesis oftransparency and open government.”CONTROVERSY IN KY, TOOThe Kentucky Horse Racing Commissionalso is at the center of controversy,its proposed out-of-competition testingprogram being challenged by horsemen,veterinarians and racing officials as goingtoo far. The commission’s attorney agreedthat some of the proposals need to be addressed,saying, “It’s not our intent to holdanyone responsible who isn’t.” Commissionmember Alan Leavitt argued thatpenalties, which include suspension for upto 10 years, need to have stiff minimumsas well. Leavitt said at a public hearingat Keeneland, “Blood-doping is well onits way to destroying our business,” oneof the strongest statements by a harnessracing leader at any time.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, August 27, 2010JUDGE RULES FOR ROSECROFTGood news for Roscroft Raceway in U.S.District Court in Baltimore. Judge RichardD. Bennett ruled for the track, andagainst the Maryland ThoroughbredHorsemen’s Association and MarylandJockey Club, in the latter’s attempt tohave a Rosecroft antitrust suit dismissed.Kelley Rogers, president of Rosecroft’shorsemen owners, Cloverleaf Enterprises,expressed delight at the developmentand said he was looking forward to thediscovery phase of the case. “The factsare clear and the evidence will be overwhelmingas to their actions,” he said, referringto the Maryland thoroughbredsgetting other tracks to deny simulcastingsignals to Rosecroft, which killed activityat the track, which already had lost liveracing, completely.HERE COMES BETFAIRWhat started out as an innocuous bill toacquire the Breeders’ Cup for Californiabut snowballed into a raise in takeout andwinds up as a doormat for Betfair to winits fight to introduce exchange betting inthe U.S. seemingly is nearing approval inCalifornia. The California Horse RacingBoard, which seemingly specializes inquick draconian decisions, is just now recoveringfrom its hasty mandate of a fewyears ago to build synthetic tracks. Now,without public comment or legislativeresearch, it may approve exchangebetting before it adjourns Tuesday.ELSEWHERE....Jeff Gural, who runs Tioga Downs andVernon Downs, told PressConnects.comthat the 1% increase in VLT revenue tothe state of New York will cost his tracksabout a million dollars a year. The taxwas raised flavored with a sweetener-- longer operating hours -- but Guralsays his average customers are all inbed by 2:00 a.m. Still, he is taking thepeace offer, operating the racinos until2:00 a.m. weekdays and 3:00 a.m.weekends, and offering an early morningbreakfast menu at Tioga’s CoastersSports Bar....Two Kentucky HorseRacing Commission committees haveapproved out-of-competition drug testing,despite opposition from horsemen. Thecommittees agreed on a first-offencefine of $50,000 and a state ban up to 10years for refusal to have a horse testedby either owners or trainers, specified as“the party responsible for the refusal.”Horses testing positive would be barredfor six months from racing in Kentucky....HTA member Prairie Meadows has votedto build a hotel at its Altoona, Iowa trackand racino location. The $29 millionproject is expected to take 14 months tobuild, and is subject to November voterapproval of continued gambling foranother eight years. Voters approved thoseterms in 1994 and 2002....226 speakersare scheduled to debate Tuesday andWednesday on a proposal for a casinonear the Gettysburg battlefield.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, August 30, 2010ANOTHER D-DAY FOR NYCOTBAnother day, another crisis for embattledNew York City OTB. Its new $125,000 amonth turnaround specialist, Greg Rayburn,has set tomorrow as a deadline foracceptance of his bold new plan for savingthe ailing betting giant. Included in theplan are previsions for employees to signup for early retirement to cut costs; retentionand refurbishing of 50 of the city’s 61OTB parlors; possible voiding of unioncontracts, which might be accomplishedunder OTB’s bankruptcy protection if theproposals are not accepted; turning overInternet and phone account betting to aconsortium of New York’s tracks; and reductionof staff by 400 employees. Rayburnsays these moves, if accomplished,would turn New York City OTB into “aviable structure under which it can prosper.”According to Bill Finley’s story inthe New York Times, Rayburn says rejectionof his proposals by creditors, unionofficials or state lawmakers could leadhim to close the corporation or slash wages.He wants to retain the OTB neighborhoodshops which he says “have becomesocial clubs that provide us with a significantpiece of handle,” and predicted thatif the tracks take over account wageringthat $150 million a year business could beprofitable for them, without expenses andother inefficiencies that OTB faces. Debtsto NYRA, Yonkers and others will accountfor $60 million by year’s end,Rayburn said.Finley quoted Rayburn as saying he wasoptimistic about his plan and that the statusquo was not an option. He told Finley,“What I have tried to make clear tothe constituents I have dealt with is thatpeople should not sit back and expect thestate will bail out OTB to keep OTB inbusiness. There might be people out therewho still harbor those thoughts. It is foolishto think that we wouldn’t liquidate ifwe can’t get one of these plans to becomea reality.”AROUND THE TRACKS....Forty-seven applicants are seeking appointmentby Ohio governor Ted Stricklandfor seven $60,000 a year jobs to thenew Ohio Casino Control Commission.By law Strickland must include a lawyer,a certified public accountant, an experiencedlaw enforcement and criminal investigator,and no more than four membersfrom one party. The Cleveland PlainDealer editorial board today urged thegovernor to avoid appointing politicallyactive appointees, saying, “The last thingOhio needs is a politically wired regulatorybody, or -- almost as bad -- one thatappears to be wired”....HTA member RunningAces Harness Park in Minnesotaclosed its season on a high note Saturday,with a crowd of some 4,000 and a new livehandle record....Centaur Gaming, withagreement from its creditors, is askingthe state racing commission for a twoyearextension to sell its Pennsylvanialicense.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, August 31, 2010EXCHANGE BETS ON HOLDThe last minute attempt to rush throughan exchange betting rule in California hasbeen slowed by cooler heads. DemocraticState Senator Ron Calderon reportedlybrokered a deal -- his office emphasized itwas a compromise and not complete consensus-- to postpone until May of 2012the effective date of a bill sponsored byBetfair and pushed by Assembly SpeakerJohn Perez. That gives horse racingin the state 20 months to work on rulesand implementation, and allows the impetuousracing board time to think aboutwhat it enthusiastically endorsed lastweek. In the face of delayed Senate confirmationof his reappointment and thatof three of his board members includingactress Bo Derek, Board ChairmanKeith Brackpool acknowledged the delaywould “give everyone in the industry timeto work through their issues and come upwith regulations.” The weekend barteringwound up with two powerhouses -- Betfairand Magna International Developments-- playing their best political cards.Opposition by California’s thoroughbredtrainers also played a significant role inthe reversal. The bill, which had beenamended in the Assembly under Perez’sleadership, originally proposed takeoutincreases on exotic bets -- still an importantissue in the bill -- and had exchangebetting added in a last-minute bid forquick passage. Chalk one up forMagna and the trainers.STRIFE IN THE EAST, TOOMore than 220 speakers will begin voicingtheir views tonight in the second Battle ofGettysburg, this one being fought overwhether a casino should be allowed toopen close to the sacred hallowed groundwhere thousands died during the CivilWar. Among the views to be expressedare those of 278 historians, who signed aletter objecting to the casino. The proponentof the project, Gettysburg businessmanDavid LeVan, gets an hour to speaktonight. Preservation organizations andlocal politicians get 10 minutes each. Individualsget 3 minutes. Even with thatschedule, it is expected to take at least twosessions, tonight and tomorrow, for everyoneto be heard.The second New Jersey “gaming summit”to discuss plans for the Meadowlands andNew Jersey racing is scheduled for a weekfrom Friday, Sept. 10, in Pegasus at theMeadowlands.The Seneca Indian Nation’s tribal councilhas voted to withhold slot fees to the state.The tribe has paid $707.2 million in suchfees, $58.2 million of that last year andanother $32 million in the first six monthsthis year, but now are rebelling because ofloss of exclusivity in western New York.Action -- or at least heated discussion --today on labor contracts and New YorkCity OTB’s proposal to turn over phoneaccount betting to thoroughbred andharness tracks in the state.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, September 1, 2010TRUSTEE TO ROSECROFT: QUITThe trustee handling Rosecroft Raceway’sbankruptcy says time has run outfor the idled track and it should liquidateits assets and sell the track at auction.Trustee W. Clarkson McDow Jr. says the14 months Rosecroft has had to find asuitable buyer and reorganize is enough,and says the case now should undergoChapter 7 liquidation. McDow said, “Undercurrent management the racecoursehas closed its operation, the exclusivityperiod has ended, no plan has been filedwith the Court to date, and the debtorin-possession’sattempt to sell the assetsof the estate to a favored third party resultedin five days of hearings, exorbitantprofessional fees, and ultimately rejectionby the court.” Rosecroft, saved after closingby simulcasting, lost that crutch whenMaryland’s running horse interests haltedrunning thoroughbred signals; wasdenied both slots and cards; had a buyer,former owner Mark Vogel, who was notapproved as a purchaser and whose optionexpires tomorrow; and now faces themotion to convert to Chapter 7 on Oct. 7.CHICKENS TAKE OVER IN KYDeclining horse sales have produced theultimate indignity for the industry in Kentucky.Poultry has overtaken the horseindustry with chicken and eggs sales totaling$911.6 million last year, down by2% from 2008 but still enough toovertake horses, down 28% in salesfrom $1.8 billion to $780 million.STARS SHINE IN GETTYSBURGWith almost 400 speakers scheduled tospeak, for and against a casino close bythe Gettysburg battlefield, the first day ofhearings was highlighted by the appearanceof Hollywood stars in a video objectingto the plan. Documentary producerKen Burns, whose work included “TheCivil War,” spoke on the video, alongwith author-narrator David McCulloughand actors Sam Waterston and MatthewBroderick. Another actor, RichardCrozier, was there in person, dressed asConfederate general Robert E. Lee, andpleaded, along with the video celebrities,to protect the sanctity of the battlefieldthat produced 50,000 casualties in themost savage battle in American history.OUT OF COMP TESTING IN KYA joint meeting of two committees consideringout-of-competition testing inKentucky racing voted 8-4 yesterday fora five-to-ten year suspension for thosefailing tests or refusing to take them. Thefull commission is expected to vote on theissue next Tuesday.NEW ILLINOIS WAGERING CAPAfter encountering a 47% drop in bettingwith the 5% cap it had imposed on out-ofstatetracks with higher charges for theirsignals, the Illinois Racing Board yesterdayvoted 7-1 to raise the cap to 9%. Thehigher cap goes into effect tomorrow, andshould allow bettors access to signalslike Del Mar and Saratoga.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, September 2, 2010SO MUCH FOR OTB’S PLAN AGreg Rayburn, New York City OTB’schief executive, withdrew his offer ofearly retirements for OTB employeesyesterday after his deadline for unionagreement passed. Rayburn showed hemeans business in either saving or closingthe nation’s biggest betting service,handling more than $750 million a year.Rayburn issued a brief announcement,saying, “Yesterday the NYC OTB boardof directors passed a resolution approvingtargeted early retirement incentivescontingent on management reaching anacceptable agreement with its two largestunions. No such agreement was reachedwith either of the two unions by the deadlineyesterday. As a result, there will beno early retirement incentives availableto NYC OTB employees. Management ofNYC OTB will continue to work with itsunsecured creditors committee to determinethe path forward.” That path forward,as Rayburn characterized it, meantnot only that there would be layoffs ratherthan early retirement for employees ofthe state, which now runs OTB, but thatthe offer of transferring account wageringto New York harness and thoroughbredtracks was now off the table. That is partof Rayburn’s Plan B, and Paul Post, writingin The Saratogian, said that after severingall union contracts, all payroll andbenefits would be significantly reducedand OTB “would also seek reduceddistributions from tracks.”Considering that highly unlikely, wecalled Post, and he agreed, saying thequote had been taken from a governor’soffice report. More on that tomorrow. Healso wrote that Rayburn wants to avoidclosing NYC OTB because of the hugeimpact it would have on racing. He quotedRayburn, “Liquidating the business isa bad outcome for the racing industry inNew York. Massive loss of handle is goingto have some downstream effects.” Postnoted that attempting to sever union contracts“is almost sure to trigger expensiveand lengthy litigation, which could delayan ultimate resolution indefinitely.” MattHegarty, in his Daily Racing Form storyon the issue, explained that the accountwagering takeover would have been in exchange“for forgiveness of $65 million indebt.” Hegarty quoted Morgan Hook, aspokesman for Gov. David Paterson andNYC OTB, saying “Plan A is effectivelynot an option anymore. There was adeadline, and that deadline has passed.”CAL EXPRESS BETS PASSCalifornia’s rush-rush toward expressbetting sailed through the Senate andwent to Gov. Arnold Schwarzenegger’sdesk, where quick approval also is expected.Proponents wanted it effective immediately,but cooler heads prevailed, and itwill not take effect until May of 2012, allowingtime for rules and regulations tobe created.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, September 3, 2010WE’LL GET THE LAW CHANGEDThat was the confident, or perhaps almostarrogant, boast of MI DevelopmentsCEO Dennis Mills in a story by DailyRacing Form’s Matt Hagerty on Mills announcingthat Magna’s Gulfstream Parkwas installing lights, despite the fact thatFlorida law calls for a 7 p.m. cutoff forthoroughbred racing operation. Hegartyquoted Mills as saying, “We’re so confident(the law will be changed) we’re goingto set the lights up. You find me thelegislator who is going to oppose somethingthat creates jobs and sustains anindustry.” We’ll find out how accuratethat statement is when legislators in NewJersey are asked to vote on not sustainingracing at the Meadowlands and thousandsof jobs in racing in the state. Mills wenton to say night racing at Churchill Downsinspired the move toward nights at Gulfstream,which provide direct competitionfor horse players who currently patronizePompano Park racing and racino. As fornight racing at Churchill, Mills said, “It’slike a bar with 35,000 people in it.”WHO’S KIDDING WHOM IN CAL?A spokesman for Gov. Arnold Schwarzeneggertold the Los Angeles Times yesterdaythe governor “has not taken a position”on the higher takeout and exchangebetting bill on his desk. The statementcame after a non-profit group in Sacramentosaid it would send nearly 10,000mailers to church groups and othersseeking a veto of the legislation.VOGEL TO WAIT FOR AUCTIONMark Vogel, the Maryland developerwho once owned Rosecroft Raceway andwould like to own it again, says he nowwill wait for the property to go on auction,and feels confident he will be ableto buy it then. Vogel told the MarylandDaily Record that he holds the first trustmortgage on the track, which he boughtfrom owner Cloverleaf’s largest creditor,PNC bank, last year, and that gives himpriority over all other liens on the property.Vogel thinks the property is worthlessfor anything except a track, given itsnarrow two-lane access road, and says thequestion really is, “Will anybody bid onit?” Cloverleaf President Kelley Rogerssays it is up to the track to find a buyerthe court will approve, which it refusedto do on an earlier Vogel offer. “The bottomline,” Rogers told the paper, “is if wedon’t go in with a new deal that’s signedand ready for the judge to consider, then Ithink it will be converted. It is very muchon us to get a deal. Now we go back tothe drawing board.” Cloverleaf has untilOct. 7, when a hearing on liquidation motionsis scheduled. Both Rogers and Vogelagreed that the property is not likelyto be attractive to real estate developers,but still is viable for racing.FOUNDATION GETS IN KY SUITA Circuit Court judge in Franklin County,KY, has approved a request from theFamily Foundation to intervene in alawsuit challenging instant betting.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, September 7, 2010OVER LABOR DAY WEEKEND....There were some interesting developmentson the racing scene.In Pennsylvania, racing commission chairmanRoy Wilt, voting alone, gave CentaurGaming one month to produce at leastone new bidder for its Lawrence Countyracing license at Valley View Downs. Ifa lone bidder appears, he will be vettedby the commission. If there is more thanone bidder, an auction will be overseen bythe U.S. bankruptcy court in Delaware,where Centaur has filed for bankruptcyprotection from creditors. If no bidderis found, Centaur’s license “shall be automaticallyand immediately terminated,revoked and surrendered to the commission.”A disastrous fire in a private facility adjacentto Charles Town Races in West Virginiakilled 27 thoroughbred horses. Another26 were saved.Some nasty name calling in New York,where the New York Post delighted in reportingit under a headline, “Paterson:Cut the craps, DiNap.” The referencewas to what “a source close to the governor”said was Comptroller Thomas Di-Napoli’s “inept operation” in refusing tosign off on the Genting Aqueduct racinodeal. DiNapoli’s office blamed the delayon Attorney General Andrew Cuomo,who also must approve the 30-year contract.Cuomo’s office says it notified theLottery Division “about a week ago” thatthe AG would approve the contract.In Lexington, Kentucky’s tough out-ofcompetitiontesting rule was due to bevoted on today, with thoroughbred horsemencalling for a delay on grounds that,“Whenever you do something like that,you’re bound to put together somethingthat’s just not going to work.” But StateSenator Damon Thayer, a member of Kentucky’sEquine Drug Research Council,responded by saying he thought it “importantto send the message that we careabout integrity issues in racing in Kentuckyyear-round,” not just for BreedersCup and other special races. The proposalcalls for penalties of from 5 to 10years suspension and a fine of up to$50,000.In Buffalo, NY, a giant in racing journalismdied. Bob Summers, racing writerand handicapper for the Buffalo News,died of a heart attack at 66. He was oneof the few writers today well versed inboth harness and thoroughbred racing,and his death drew regret and sympathy,and praise for his longtime role asThe Happy Handicapper, which he was,from both racing sports around the country.Scarborough Downs in Maine has listedfor sale for $12.2 million 400 acres of itsproperty in the town. The track, seekingslots, hopes to move to Biddeford.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, September 8, 2010KY OKS TESTS ANYWHEREA determined Kentucky Horse RacingCommission yesterday unanimously votedto adopt tough out-of-competition testing,in the face of thoroughbred horsemen’sopposition. As passed, the new rules providefor a 5- to 10-year suspension and a$50,000 fine for first offenders. Breederand commissioner Alan Leavitt voted forthe change, but only after he had arguedfor a minimum 10-year suspension. Whenit was suggested that would amount to a“death sentence,” Leavitt replied, “That’sexactly what it’s intended to be.” Underthe new rule the commission has thepower to do testing on almost any horse,anywhere, at any time. In another movetoward greater industry integrity, thecommission also voted to randomly testat least two horses in any race carrying apurse of $2,500 or more without advancenotice of which two would be tested. Thatrecommendation not only increases precautionarytesting, but also offers an effectiveand cheaper alternative, a moverecommended almost 20 years ago in theMcKinsey report advocating new industryapproaches.LONG OUTS, BIG FINES FOR 3Three well-known Ontario drivers havebeen handed long suspensions and bigfines by the Ontario Racing Commissionafter a six-month joint international investigationby Michigan and Ontariopolicing authorities of racesin both jurisdictions.Kevin Wallis, the best known of the three,was suspended for 12 years and fined$100,000 as the alleged ringleader of a conspiracyto arrange pre-ordained resultsof races at Windsor Raceway and Michigantracks between January 1, 2008 andMarch 31 of this year. Unnamed driverstestified that Wallis, who has won morethan 9,000 races in a 30-year career, hadreceived money and paid other drivers toaffect outcomes of races, a charge he denied.Gene T. Piroski, third in winningdrives at Windsor last year, was suspendedfor 10 years and fined $100,000, andBrad Forward, who represented Canadain last year’s world driving championshipand was leading Ontario this year in winningdrives with 374, received a five-yearsuspension and $5,000 fine for his role inthe case. A fourth driver, Art McIlmurray,who was not licensed in Ontario, did notreceive a fine or suspension but is barred,along with owner Haitham Shamoun,from racing in the province. The Ontariocommission stressed that Windsor Racewaywas not involved, and commendedthe track for its full participation and assistance.5 FANS HIT, HURT BY GATEFive fans at the Windsor, Maine, Fairwere hit by the open wing of a startinggate mounted on a pickup truck Mondaywhen the gate malfunctioned. Threewere taken to Augusta Hospital, but latereports say all five suffered only minorinjuries.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, September 9, 2010A VIEW OF THINGS TO COME?Monmouth Park’s 2010 race meeting,which ended on Labor Day Monday, maybe a precursor of things to come in racing,given some remarkable results and statistics.The traditional summer meeting atthe near-oceanside track was compressedinto 49 days, instead of the 82 days racedlast year, with an announced goal of a milliondollars a day in purses. The figurewasn’t quite reached, but it was enoughto make Monmouth the national leaderin average daily purses with $797,079 aday. Average daily all-source handle,however, went through the roof, up 213%over 2009, from $2.54 million last yearto $7.95 million this year. Total bettingreached $389.6 million, up 87% over totalwagering last year, which was $208.4 million.Monmouth raced only three days aweek this year -- Fridays, Saturdays andSundays -- and average daily attendancewas 10,651, up 47%, with average dailyhandle increasing 79% to $766,506.Those numbers undoubtedly will be discussedtomorrow, when the second ofthree Democratic “Summit on Gaming”sessions is held in Pegasus at the Meadowlands,starting at 10 a.m. and runninginto the afternoon. Tom Luchento, presidentof the SBOA of New Jersey, said itwas imperative that members turn outin “a large, respectful crowd.” Attendeesat the first summit in Atlantic CityAug. 6 were noisy and vocal.KITTELSON GETS HIGH HONORJohn Kittelson, the star woodcarver andartist whose work was a featured highlightof HTA art auctions for years, hasbeen named 2010 Cowboy Artist of theYear by the Academy of Western Artistsbased in Gene Autry, Oklahoma. Retiredin Wyoming with recurring health problems,Kittelson received the honor from ajury of his fellow artists honoring his “excellenceand contribution to the westerncommunity for his exceptional talent inpreserving the cowboy and western genreto the world, not only for today, but forthe future.”TWO GET RTIP SCHOLARSHIPSDavid Allen and Heather Shatz, animalscience majors at the University of Arizona’sRace Track Industry Program,have been awarded the Jockey Club JackGoodman Scholarships for 2010-11, RTIPdirector Doug Reed and Jockey Club executivedirector Matt Juliano have announced.Allen is a senior from Detroit,Shatz a junior from Benson, AZ. TheRTIP program has sent almost 600 alumnito important positions in the Americanracing industry, including HTA executivedirector Paul Estok and former HTA executiveassistant, the late Brody Johnson.PROGRESS, AT A PRICEDaily Racing Form’s Steve Andersen,reporting from Del Mar, says new takeoutincreases could boost Californiapurses 20 to 25%. Big price to pay.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, Sept. 10, 2010PLAY NICE, NOW, IT’S BILLIONSLike angry cats hissing at one another,or playground kids playing “sticks andstones,” the governor of New York and hisstate comptroller have been hammeringone another brutally. The New York Postreports this morning, citing an unnamed“administrative source,” that Gov.David Paterson’s aides “were furious” atcomptroller Thomas DiNapoli’s delay insigning off on the 30-year, mega-billiondollarcontract to Genting Malaysia forthe Aqueduct racino contract, and thatthe state was losing millions thru thedelay. DiNapoli responded quickly, sayinghe would sign off on the bill by Tuesday,while noting that Paterson frittered awaythree years getting the contract signed.The newspaper said Paterson’s office wasconsidering “unprecedented legislation”to appoint an independent auditor toaudit DiNapoli’s office, again quoting itsanonymous source as saying “DiNapoliis supposed to be the fiscal watchdog, butwho is watching the watchdog?” DiNapoli,for his part, said his delay was caused by“taking every step to ensure the taxpayersare safeguarded in this contract.” Anelection is coming up in November andDiNapoli is running in it. You don’t thinkthat might have something to do with thehissing, do you?More politics, incidentally, across thestate line in New Jersey, where theDems’ second “gaming summit” isunderway today.BROWN OUT AT EMPIREMichael (Mickey) Brown is out andEmanuel (Manny) Pearlman is in at EmpireResorts, owner of Monticello Raceway.Brown, who had triple bypass heartsurgery late last month, has resigned, andPearlman, founder of Liberation InvestmentGroup and a director of MultimediaGames, has replaced him.SARATOGA’S OWN ADW OPENSHTA member Saratoga Gaming andRaceway has opened its own advancedeposit wagering system, SaratogaBets.The service enables Saratoga guests theflexibility of betting on tracks around thecountry while at Saratoga, from home, orremotely from wherever they are. The systemis being launched in affiliation witheBet Technologies, a business-to-businessaccount wagering solutions provider.GERMAN MONOPOLIES KO’DThe New York Times reports today that theEuropean Court of Justice in Luxembourg,the highest court in the European Union,has ruled that state-operated gamblingmonopolies are illegal under E.U. laws.The decision is a major victory for privatebetting companies seeking to enter, or alreadyoperating, in Germany. German officialssaid the decision leaves the choice ofoperating the state-owned shops to them,but France and Italy already have liberalizedtheir laws and Goldmedia, a Berlinresearch firm, says offshore operators alreadyhandle $1.28 billion a year onbets in Germany.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, Sept. 13,2010WHAT’S POINT OF 3D SESSION?A crowd estimated at 500 turned out atthe Meadowlands last Friday, intent ondelivering harness racing’s appeal toDemocratic legislators sponsoring thesecond “Racing Summit.” They wereheard, in varying degrees, but also weretold by state senator James Whelan, formermayor of Atlantic City who nowcarries water for the district in the statesenate, that their hopes for slots at theMeadowlands were futile. He said Gov.Chris Christie was unalterably opposed.Legislators representing northern NewJersey were not so sure. Jon Hanson andBob Mulcahy, two former bosses at theMeadowlands, were not present for thesession, but Whelan said Hanson wouldbe at a scheduled third summit scheduledfor next month at Monmouth Park. Ifa governor is not willing to even discusscompromise to save an industry that hascarried the load of the New Jersey Sportsand Exposition Authority for decades, itis a sad commentary on government. RayBateman, another former high executiveof the Authority, meanwhile issued a rational,well-thought out plan in an onlinenews service in central New Jersey. It willbe published in this week’s Track Topics,and offers a sharply different view thanthat expressed by senator Whelan lastFriday. Bateman calls the Christie-Hansonapproach “flat out wrong pub- l i cpolicy,” flying in the face of reasonand history in the state.BATAVIA’S HIGH SCHOOL KIDSHTA member Batavia Downs held aunique race Saturday night, hosting itsfirst scholarship race for five high schoolseniors from Genesee county. With thecooperation of its horsemen, New Yorkbreeders, and Buffalo Raceway, all ofwhich helped arrange and promote therace, Batavia had the five first completeat least five training sessions with trainers,then paired them with their tutors,using double-seated jog carts, in a race for$7,500 in college scholarships. The racedrew new and young faces, according toVP Mike Kane, and was won by KaleyFalkowski of Batavia high school, drivingwith trainer Jim Mulcahy. Her mentorsaid Kaley was afraid of horses when shefirst reported for training, but overcameher fear quickly and learned fast workingaround the barn. She received a $3,000scholarship, with her rivals receivingawards of $2,000, $1,200, $800 and $500.LIFE WITH DAVID BROOKSLawyers for David Brooks, the formerbody armor manufacturer and leadingharness horse owner whose stable won$12 million last year, have asked federalauthorities to lighten up life for their client.They claim Brooks is being held in“inhumane conditions, including solitaryconfinement,” in the federal MetropolitanDetention Center in Brooklyn. Prisonauthorities call Brooks a security risk,saying he has a history of possessingcontraband.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, Sept. 14, 2010GOOD FOR NY, BAD FOR NJAfter nine years of fumbling and fuming,New York has its Aqueduct racinosigned, sealed and almost delivered.With New York state comptroller TomDiNapoli giving his blessing to the 30-year contract for Genting of Malaysiato build and operate the racino, the nextstep is for Genting to deliver its $380 millionup-front payment to the state within10 days. That seemed assured whenK. T. Lim, Genting’s chairman, said,“We are eager to immediately begin investing,creating jobs, sparking economicactivity and bringing New York a one-ofa-kind,iconic entertainment destination.”Under the plan, Genting says it will have1,600 slots operating by next spring, anda 4,525-slot facility including restaurantsoperating within a year. Six months afterthat, a skywalk connecting the racinoto the A-train subway station will beopen, the company says. The go-aheadwas hailed by the New York Racing Association,which now seems assured of adequatefunds to operate with slots-infusedpurses next year. Genting says it expectsto hire 1,500 to 2,000 construction workersto build the facility.While New York celebrates, New Jerseycontemplates the effects the Aqueductracino will have on Atlantic City casinos,and indirectly on the fate of the NewJersey Sports and Exposition Authorityand the Meadowlands.Gov. Chris Christie seems certain to usethe Aqueduct development as fuel for hissupposed restoration of Atlantic City,which leaves the fate of the Meadowlandsin even deeper doubt. Harness racinginterests are hard at work formulatingplans that would provide the self-sufficiencythe governor insists on, but slotsdo not seem realistically a prospect for thetrack in the immediate future, barring aremarkable compromise. The influentialAsbury Park Press, meanwhile, editorializedon the north-south shotless civil warraging in New Jersey, using Lincoln’s linethat “A house divided against itself cannotstand,” and adding, “Nobody, though,seems to have told Democratic lawmakersthat. Last week’s ‘gaming summit,’,which was aimed at finding ways to worktogether to address the challenges facedby the state’s gaming industry, brokedown along the state’s own Mason-Dixonline.... Despite what some lawmakerswould have you believe, the real battlehere should not be between North Jerseyand South Jersey, or even between casinosand racetracks. The true conflict is betweenNew Jersey and the gaming optionsoffered in other states.” The paper notesthat Atlantic City’s days of monopolizinggambling east of the Mississippi River arelong gone, and says New Jersey needs toobjectively compare how much revenuethe state could expect by propping up theAtlantic City casino industry while shuttingdown its racing industry.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, Sept. 15, 2010BROOKS GUILTY ALL COUNTSDavid H. Brooks, whose BulletproofEnterprises stable was the nation’s topmoney-winner last year with more than$12 million won in purses, was foundguilty yesterday by a federal jury on all17 counts of massive stock fraud and insidertrading. Sandra Hatfield, his formerchief operating officer in DHB Industries,was found guilty on 14 of 16 counts.Brooks, 55, was founder and former CEOand chairman of the firm making bodyarmor for the U.S. military. Besides sentencingon the fraud charges, Brooks stillfaces a trial next month, before the samefederal jury, that could require him toforfeit $185 million in tax evasion on illegalsale of stock as an insider, and a thirdtrial for contempt of court. Both Brooksand Hatfield face prison sentences of upto 25 years when sentenced by U.S. judgeJoanna Seybert, who presided over theeight-month trial. Brooks also is underinvestigation for possible jury tampering.Once a high-living big spender, Brookshas spent recent weeks in solitary confinementin a federal prison in Brooklyn. Atone point he was free on $26 million bail,but that was revoked and he was sent backto prison after the government discoveredhe had hid millions in overseas accounts.The New York Times reported Brooks wasaccused of charging more than $6 millionof corporate funds to personal use,including luxury cars, prostitutes,plastic surgery and his stable.BALLY HAPPY ABOUT BIG AThe Las Vegas Review-Journal reportsthat the Vegas-based Bally Technologiesis a major beneficiary of the award of theAqueduct racino after nine years of delay.Bally holds a contract through 2017,the paper says, to provide a major shareof the video slots used by New York trackracinos. The Aqueduct operation, nowapproved for Genting of Malaysia’s NewYork operation, calls for 4,525 machines.Bally, which already has some 6,500 videoslots in New York state, could provide atleast half of the total for the Aqueduct racino,which Genting plans to call ResortsWorld New York.ILLINOIS CHOICE DUE TODAYAfter an $89 million contract with ScientificGames for monitoring VLTs in Illinoiswas cancelled Monday for re-biddingby the Illinois Gaming Board because of“miscalculations,” Gov. Pat Quinn wasto name a winner today to manage thestate’s $2 billion lottery. The competitionwas a true heavyweight brawl, betweenNorthstar Lottery Group, a consortiumled by a partnership of GTECH and ScientificGames, and the Camelot Group,which operates the lottery in the UnitedKingdom.BLACKS A FAKE AUSSIE KINGThe brilliant Australian pacer Blacks AFake has won Australia’s Horse of theYear title for the third time. Detailstomorrow.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, Sept. 16, 2010SHORTER MEET AT M’LANDS?New Jersey gubernatorial adviser JonHanson, the architect of the “close theMeadowlands” furor, has been quotedin an article by writer John Brennan inNorthJersey.com as saying a short meetat the Meadowlands with higher purses,based on the Monmouth Park experimentof this summer, was “a possibility.”Brennan quoted Hanson as saying greatlyreducing the number of harness racingdates in 2011 -- resulting in increases indaily purses -- could lead to larger fieldsand increased betting. Brennan also quotedCarl Goldberg, chairman of the NewJersey Sports and Exposition Authority,that “Monmouth Park is still going tolose money,” despite triple-digit increasesin betting and double-digit growth inweekend attendance. Goldberg said theexperiment “mitigated the loss.” DennisRobinson, president of the Authority, saidincomplete numbers indicated the NJSEAwould “save numerous millions of dollarsto our bottom line.” Robinson told Brennanthat “with Internet betting growing atdouble-digit rates” and a goal of openingmore off-track sites...we’re hopeful thatwe’ll be able to maintain a sustainablemodel.” That was one of the challengesthrown at racing by Gov. Chris Christieand Jon Hanson in the latter’s report,which made it clear that subsidy paymentsfrom Atlantic City and slots atthe Meadowlands were unlikely forthe present.Last Friday’s “racing summit” at theMeadowlands brought sharp questions ofwhy only 3 of 15 authorized off-track bettingsites have been built. Goldberg saidthe Authority needed to be sure enoughsimulcasts were available to justify thekind of money needed. The state-ownedfacility in Woodbridge is the highest volumeOTW facility in the country, handling$90 million in bets a year, but itand track-owned sites at Toms River andVineland are the only three of the fifteenauthorized that are operating. State assemblymanJohn Burzichelli, a Democratfrom Gloucester in the western part ofthe state, has introduced a bill in the Assemblythat would require OTW licensesalready issued be used or put up for bidding.“BIG TWO” WIN IN ILLINOISThe Northstar Lottery Group consortiumof Scientific Games and GTECH, alongwith Chicago’s BBDO advertising agency,have won a 10-year contract to serve asthe first private operators of the Illinoislottery. The partnership will receive $15million a year in management payments,and is expected to increase revenue by$4.8 billion over the first five years, whichwould be a projected $1.1 billion morethan the state would have produced.Camelot, the losing bidder that operatesthe national lottery in Great Britain,protested the “perpetuation of the statusquo.” The selection process has receivedmedia and public criticism.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, Sept. 17, 2010SOLID SIMULCASTING AGENDAThe 18th joint International SimulcastConference, arranged by the ThoroughbredRacing Associations in conjunctionwith HTA, offers an interesting three-dayagenda next week at the Sheraton SandKey resort in Clearwater Beach, Florida.Kicking off the conference Monday afternoonissues of international simulcastingwill be discussed by Terry Spargo of theEmirates Racing Authority, Alex Dadoyanof the Meadowlands, Ramon RiondaJean of Codere America, and NelsonClemmens of AmWest Entertainment.Mark Thurman of California’s CHRIMSalso will discuss a national initiative onindustry settlement and financial issues.Tuesday will find reps of Trackmasterand Equibase talking about new softwaredevelopments, and Wednesday’s sessionswill include Joe McCambley, co-founderof Wonderfactory, discussing that company’siPad applications now being used byTime, Sports Illustrated and The WeatherChannel, among others, along with DailyRacing Form CEO John Hartig, bothtalking about opportunities of electronicdistribution of information. Peter Spoar,senior manager of wagering operationsfor Woodbine Entertainment, will speakWednesday morning on national cabletelecasts building new interest in WECracing. HTA executive director Paul Estokwill be on hand at the conference. A fewrooms still are available at the SandKey Resort.MORE ON BLACKS A FAKEAustralia’s brilliant pacing star Blacks AFake, trained and driven by that nation’sleading woman driver, Natalie Rasmussen,has won Australian Horse of the Yearhonors for the third time. He added totitles won in 2007 and 2008, and includedin his 12 wins in 15 starts this year was hisfourth win in the InterDominion, Australia’sbiggest race. He now shows 61 victoriesin 83 lifetime starts, with winningsof A$4,179,733. New Zealand’s trottingstar Sundon’s Gift was named Australia’strotter of the year.CHURCHILL BUYS CASINOIn a move toward diversification,Churchill Downs is buying the 3-yearoldHarlow’s Casino in Greenville, Mississippi,adjacent to the Mississippi river,for $138 million in cash. Closing is expectedin three to six months. In anothercasino acquisition, Las Vegas-based FullHouse Resorts is paying $43 million forthe Grand Victoria Casino & Resort inRising Sun, Indiana, a property that has37 table games, 1,382 slot machines and a201-room hotel.ARNEAULT GETS PA APPROVALTed Arneault, former president and CEOof MTR Gaming, has been cleared by thePennsylvania Gaming Control Board forrenewal of operating privileges in thatstate, after a 2-year delay. The board hasgranted him a clean bill of health.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, Sept. 20, 2010BUTE RULES TIGHTENED, 12-0In a 12-0 vote, with only Louisiana abstaining,the Model Rules Committee ofthe Association of Racing Commissionershas recommended tightening rules on theuse of phenylbutazone, better known asbute. Thoroughbred horsemen, as expected,argued against the move, but ARCIPresident Ed Martin stood fast, saying thenational HBPA and other opponents didnot present an argument as to why higherdoses of bute closer to race time were necessaryfor the health of horses. “There areclear warnings,” Martin said, “that bute’soveruse can seriously jeopardize equinehealth.” The recommendations go next tothe ARCI board for approval, probablynext month. The new rule cuts acceptablethreshold levels by more than half,down to two micrograms per millimeterof plasma or serum from the present five.Martin argues that horses needing higherlevels of bute for pain relief should not beracing.In another development affecting use ofillegal drugs, the Racing Medication andTesting Consortium is considering financialsupport of testing for two Frenchdrugs reported in use but undetectable underpresent testing. Dr. Larry Soma of theUniversity of Pennsylvania told columnistAndrew Cohen money is needed for “amulti-group” effort that could lead to successfultesting. Soma told Cohen “Itmay be an easy molecule to detect,once a method is developed.”A GOOD PROMOTION RETURNSBelmont Park in New York is bringingback College Day on October 9, offering$10,000 in scholarships in conjunctionwith the Dime Savings Bank. The promotionoffers free admission to all collegestudents with a valid ID. Followingregistration, a $1,000 scholarship will bedrawn after the first eight races, with a$2,000 Dime scholarship given away afterthe day’s final race. Other prizes, and musicalentertainment, will be offered, alongwith a trio of Grade 1 races featuring the$300,000 Champagne for 2-year-olds.GALBRAITH SHOWS UP, OKAYHall of Fame trainer-driver Clint Galbraith,who thrilled the sport nationally30 years ago with the great pacer Niatross,made a public appearance recently, signingautographs at Batavia Downs. Now73 and recovering from a serious head injurysuffered in a barn accident in May,Galbraith talked about a return to action.“I’m just waiting for my doctor’s okay,”he told fans. HTA wishes Clint a continuedsuccessful recovery.FBI SPEAKS UP ON BROOKSIn a long press release on convicted DavidH. Brooks, the FBI summed up itssuccessful prosecution. “This case wasfundamentally about stealing and lying.Brooks and Hatfield lied to shareholders,lied to auditors, lied to regulators. Itwas brazen corporate misconduct.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, Sept. 21, 2010AROUND WORLD IN A SULKYIn Clearwater Beach, Florida, the 18th internationalsimulcasting conference sponsoredby the Thoroughbred Racing Associationsand Harness Tracks of Americagot underway yesterday, with sessionsagain today and tomorrow. We will havereports. Simulcasting settlement policieswas a major agenda item....HTA memberHarrington Raceway’s $354,000 BobbyQuillen Memorial, the richest race inthe track’s 64-year history, produced thetrack’s fastest mile ever last night whenFoiled Again, owned by Burke Racing,Weaver Bruscemi and JJK Stables, wonfor driver Yannick Gingras and trainerRon Burke in 1:50.1......England’s onlinegambling firm Sportingbet has settled itsillegal gambling suit with the U.S. governmentby agreeing to pay $33 millionto avoid prosecution for accepting onlinebets from Americans. The settlementends 3 1/2 years of legal wrangling andfrees Sportingbet to raise funds for futureU.S. operations when and if onlinebetting is legalized federally. When firstcharged, Sportingbet was deriving 65% ofits revenues from U.S. bettors....AnotherBritish-based operation, Betfair, is finalizingits plans to go public on the LondonStock Exchange. The company will floata $1 billion stock offering before the endof October. Betfair currently is owned by14 major investors who hold 75% of itsstock, led by co-founders AndrewBlack and Edward Wray.In Illinois, Inter-Track Partners, a consortiumformed 23 years ago consisting ofHawthorne Race Course, Balmoral andMaywood Park and Sportsman’s Park tohandle off-track betting that was introducedin 1987, has dissolved. Hawthorneand the Johnson-controlled Balmoral andMaywood now will operate as separateOTB entities....In Pennsylvania, DonaldTrump Entertainment lost its second tryat obtaining a license for a Philadelphiacasino. First denied four years ago, it wasturned down again by the PennsylvaniaCommonwealth Court, which ruled thestate Gaming Control Board had broaddiscretion in granting licenses. Trumphad hoped to intervene on the grantingof one of two licenses to Foxwoods, whichstill is tied up in legal and economic hassling.The second winner, SugarHouseCasino, finally is due to open this Thursday....PennNational Gaming has taken onthe Baltimore Sun editorially, arguing ithas every right to oppose a slots parlor atArundel Mills and argue for one at LaurelRace Course....a 51-year-old gambler wholost $5 million Hong Kong dollars playingbaccarat while on a two-day gamblingcruise on Genting’s 13-story high cruiseship SuperStar Aquarius, jumped off theship into the ocean returning to HongKong and was lost at sea. His body wasrecovered after a one-hour search and thesuicide was listed as “man overboard” onthe ship’s records. Genting was notifyingthe man’s next-of-kin.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, Sept. 22, 2010PENN NATIONAL IN TEXASPenn National Racing, ever on the move,now has taken a big position in Texas,forming a joint venture with Sam HoustonRace Park to own and operate the Houstontrack and two others. Penn Nationalalso will own and operate Valley RacePark in Harlingen, Texas, and a proposednew track in Laredo under the joint ventureagreement, all subject to approvalby the Texas Racing Commission. PennNational is 50% partner in the undertaking,which includes 323 acres of land atthe Houston site, 80 acres at Valley Parkand an option on 135 acres in Laredo.Penn National boss Peter Carlino said themove was “another step” in the company’slong-term strategy to diversify andgrow its presence in key markets, with aneye to gaming in Texas. Houston is thefourth largest city in the United States.The Valley Park property, a dog trackand simulcasting facility, opened 20 yearsago and has been owned by Sam Houstonsince 2000.BIG QUEBEC SCORE FOR IGTIn a major gaming equipment development,the province of Quebec has awardedcontracts to International Game Technologyof Las Vegas and Canadian-basedSpielo to replace 12,000 VLTs in Quebec.Spielo also will provide Lotto-Quebecwith a central operating system for thegames. The province will spend$265 million to replace the games,hopefully by 2012.SIRIUS TO DO JUG TOMORROWIn an interesting and forward-lookingdevelopment, the Indiana StandardbredBreed Development program will sponsorcoverage of tomorrow’s Little BrownJug on satellite radio Sirius 126 and XM243, and do it in major league fashion.Veteran racing commentator Dave Johnsonwill host the show, with Peter Kleinhansand Darin Zoccali as analysts. Theshow will be on the air from 5 to 7 easterntime tomorrow, and if there is a raceoffthe air time will be extended to cover it.The Indiana breeders are using the showas a vehicle to promote its yearling saleSaturday, an important event given thenew drawing power and purse structureof Indiana’s slot-fueled racing.The entire Jug day card also will be carriedby Delaware radio station WINF(101.9 FM) which will stream it aroundthe world, according to Jug officials.NY TO PROTECT ITS RACINGA new rule which New York racing boardChairman John D. Sabini calls “preferentialbut not exclusionary” has beenpassed to make sure New York harnessracing guards its regulars against invasionfrom those shipping in to take advantageof slots-infused purses. The rule allowstracks to offer restrictive NY races,as long as it cards at least one equivalentopen race on the same or next race date.Sabini says the board may widen the ruleto apply to NY thoroughbred racingas well.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, Sept. 23, 2010JUG NOT ONLY OHIO WINNERIt’s Little Brown Jug day in Ohio, wheneverything stops but the clocks. The$650,000 Jug will draw its usual hugecrowd to the Delaware county fairgroundsfor one of the classic horse races in thenation, but whoever wins will not be theonly winners of the day. Harness Tracksof America’s Scholarship committee, withmembers from seven states, found an academicgold lode in the Buckeye state, withfour of the five $5,000 winners from Ohioand the fifth attending school there. Thewinners are SHAWNI DEYERMAND, 18,of Jefferson, daughter of trainer LarryDeyErmand and his wife Tricia, majoringin finance at John Carroll University;CHELSEA FAHY, 19, of Washington,PA, daughter of trainers Bill and MoiraFahy, majoring in pre-vet medicine withminors in chemistry and mathematics atOhio’s University of Findlay; STEPHA-NIE HUEBNER, 19, of Plain City, daughterof industrial operations manager StephenHuebner and his teacher wife Kay.Stephanie, a licensed groom, is a straight-A student at Otterbein College majoringin business. She wins the first JuneBergstein memorial scholarship for academicand social excellence; CHELSEAMASSIE, 19, of Sycamore, daughter oftrainer Curt Massie and his wife Jeanne,taking courses in organic chemistry andanimal behavior and reproduction a tthe University of Findlay; and AN-DREW VENIER, 17, of Pemberville,son of owners Daniel and Cheryl Venier, afreshman at Mercy College of NorthwestOhio, who has dedicated his life to helpingothers and is heading toward a degreeand career in nursing.IN OTHER JUG NEWS....JEFF GURAL, owner-breeder and operatorof Tioga and Vernon Downs in NewYork, has been named a director of theLittle Brown Jug Society....Jug generalmanager and director of marketing PHILTERRY was recognized at the annualMayor’s Breakfast as the 2010 inducteeinto the Jug’s Wall of Fame....Terry andJug president W. D. (TOM) THOMSONwere re-elected by the Jug’s board....theJug will be featured on satellite radio todaybetween 5 and 7 (and longer if a raceoff)on Sirius 126 and XM 243, withDave Johnson hosting and Peter Kleinhansand Darin Zoccali as analysts....Yesterday’s$353,400 Jugette for 3-year-oldpacing fillies was won by Western Silk,owned by Casie Coleman of Ontario andTom all of Lancashire, Great Britain,trained by Coleman, and driven by MarkMacDonald.SARATOGA GETS ROULETTEHTA member Saratoga Gaming andRaceway yesterday became the first trackin New York state to introduce electronicroulette machines. Initial reaction to thenew gaming opportunity was immediateand positive.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, Sept. 24, 2010JUG WINNER TO AUSTRALIARock N Roll Heaven, the brilliant RocknrollHanover colt that won yesterday’s$64,100 65th Little Brown Jug yesterdayin two identical world record miles of1:49.2, will stand for stud duty in Australiaduring the 2011-12 breeding season DownUnder. New South Wales’ Pepper TreeFarm, showing international prescience,announced last week the colt would standat the farm. Rob Vandyke, a principalof the farm, told Australia’s Harnesslinkafter the Jug, “Obviously this is icing onthe cake for us, but more importantly itis fantastic news for the Southern Hemispherebreeders as they look forward tothis world class stallion coming to standhere in NSW next season. The HarnessRacing New South Wales board are to becongratulated on the breeding incentivesthey have recently put in place, which inturn has given us the confidence to obtainsuch world class sires.” Other Americanpacing stallions that have served seasonsin Australia in recent years include BeachTowel, Fake Left, Life Sign, Armbro Operative,Blissful Hall and Bettors Delight.Also on Jug Day at Delaware, Ohio, Davidand Misty Miller’s Autumn Escapadeequalled the world record of 1:53.2 fortrotting mares on a half-mile track, beatingBuck I St Pat in the $93,500 AlleridgeFarm Trot sponsored by Jeff Gural. Owner-driverDavid Miller called it “sospecial to beat Buck I St Pat” in his174th winning drive at Delaware.ELSEWHERE....The Washington state Supreme Court hasupheld the constitutionality of the ban oninternet gambling in a unanimous decisionhanded down yesterday. The court ruledthat the Washington state legislature had“balanced public policy concerns anddetermined the interests of Washingtonare best served by banning Internet gambling.”Opponents of the ban, includingformer U.S. Senator Alfonse D’Amato,now representing the Pokers Players Alliance,say they will take the case to federalcourts and pursue it to the U.S. SupremeCourt if possible....The KentuckySupreme Court yesterday sent the caseon outlawing 141 gambling domain namesback to the trial court “until the circuitcourt determines that the domain ownersor registrants establish standing to proceedon a writ action.”....Woodbine EntertainmentGroup has won the TRA-HTAInternational Simulcast Award, honoringthe best simulcast telecast by a racetrack,for the fourth time in the last sevenyears....Two designs of Saratoga Gamingand Raceway’s new electronic roulette machineswill compete for public approval.One, made by IGT, has an actual glassenclosedroulette wheel that spins with aball, with the outcome projected on a largevideo screen, also showing which numbershave produced the best and worstresults in recent spins. The second, madeby Shufflemaster, has a video wheel anda computerized female dealer.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, Sept. 27, 2010SIGNS OF LIFEAs major yearling sales in Kentucky andPennsylvania draw near, there has beentrepidation among breeders as to howthe market will hold. The most hearteningsign to date has been the huge 12-dayKeeneland thoroughbred yearling auctionin Lexington, where total, averageand median prices were up and buybackswere down. The overall sale showed anincrease of 3% from 2009 figures. ThoroughbredTimes reported average priceup 6.7%, median up 13.6%, and buybacks-- yearlings not sold -- down from 27.5%to 26.7%. An American buyer purchasedthe highest priced yearling for $4.2 million,and the Arab sheiks again were active,pouring millions into the sales totalsas the leading buyer in total sales. Keenelandrearranged its sales structure thisyear, offering its top colts and fillies onthe first two nights of the sale, then sellingthe rest by alphabetical order of dams.FIRST MD. CASINO OPENSPenn National Gaming opens Maryland’sfirst casino today, three days ahead ofschedule and four weeks ahead of originalestimates. The $97.4 million casinois located less than half a mile off busyInterstate 95, thirty minutes northeast ofBaltimore, with 1,500 slots bought andowned by the state of Maryland and 350new jobs filled mostly by local residents.Penn National will hold a grandopening with the governor MartinO’Malley on hand Thursday.OHIO ANNOUNCES 2011 DATESBoth harness and thoroughbred racingwill cut their dates next year, with HTA’sNorthfield Park member dominating theracing calendar with 213 programs. Intotal there will be 325 days of thoroughbredracing, down 33 from this year, andharness will cut back to 366 programs,20 less than this year. The Ohio harnessdates awarded by the commission are:Northfield Park, Jan. 1 thru Dec. 30, 213programs;Scioto Downs, May 13 thru Sept. 11, 57programs;Lebanon Harness, March 4-July 11 andSept. 23-Dec. 30, 50 programs; andRaceway Park, April 30-Sept. 18, 46 programs.GOV: GETTYSBURG A BAD IDEAGov. Ed Rendell of Pennsylvania, puttingprincipal ahead of friendship, says he isopposed to the idea of a Gettysburg casino,even though the principal proponentand potential beneficiary is “a good personalfriend.” That was Rendell’s identificationof casino backer David LeVan,but the governor said, “I think the historicarea is of such a value, and the touristeconomy is so important, that it would beinappropriate for it to be there.” Whenthe Gettysburg site, half a mile from thehistoric battlefield, was first proposed-- and defeated -- in 2006, Rendell, thenmayor of Philadelphia, said, “I wouldn’twant a casino two blocks from theLiberty Bell.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, September 28, 2010NY HAS THE MONEY; NOW DIGWhether it was a ceremonial check or thereal thing hardly matters. Genting Malaysiaauthorized its New York affiliate topay its $380 million upfront money for theAqueduct racino yesterday to New YorkState, generating front page stories allover the Empire State and beyond. Nowcomes the hard part: building the racinoquickly enough to open it, as promised,next spring. Either way, the New YorkRacing Association was celebrating, andso was New York City, whose debt to NewYork’s tracks reportedly could be coveredby Genting. Another celebrant was thepresident of Genting, who sold 900,000shares of his stock. Given environmentalstudies that normally take at least amonth, an immediate construction startis not likely, meaning Genting will have toscuffle to meet its spring partial opening.According to Matt Hegarty’s story inDaily Racing Form, Genting plans to reconfigurethe Aqueduct grandstand, witha ticket price of $1.3 billion.EVANS SYMPOSIUM KEYNOTERThe University of Arizona Race TrackIndustry Program’s Symposium on Racingand Gaming, which includes the HarnessTracks of America annual meetingin its Dec. 6-9 format this year, will haveChurchill Downs CEO Robert Evans askeynote speaker. The conference willagain take place at the Westin LaPaloma near HTA’s office.$8 MILLION BIRTHDAY PARTYThat’s the ticket hung on Harrah’s casinoin Atlantic City by a New Jersey judgefor 80,000 holders of birthday certificatesthat neglected to mention they couldn’tbe used until after 8 a.m. of the holder’sbirthday. When one Debra Smerlingtried to cash hers at the casino at 12:30a.m. of her birthday, Harrah’s told hershe would have to wait. Ms. Smerling,impatient, filed a class action suit, and thejudge agreed, ordering Harrah’s to payall of its Total Rewards members who redeemedtheir $15 coupons an extra $100under New Jersey’s Truth in ConsumerContract Warranty and Notice Act. Thecoupons did not disclose they could not becashed until 8 a.m., although they did saythat’s when casino business hours began.Harrah’s will appeal. Myfoxphilly.comsays another 270,000 Total Reward memberswho did not redeem coupons willreceive notices of the class action lawsuitand can join a separate lawsuit againstHarrah’s if they choose.CAMPBELL, PECK SPEAK UPDriver John Campbell and trainer GregPeck, two of the most successful horsemenin the sport, stirred the troops at an educationalsymposium on New Jersey racingyesterday at Perretti Farms in CreamRidge. Campbell called for expansion ofOTB and upgrading of the Meadowlands,and Peck contended a ban on slots at thetrack ran counter to the wishes ofNew Jersey voters and bettors.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, Sept. 29, 2010MORE DISCUSSION IN NJThe long-awaited appearance of JonHanson, New Jersey’s gaming and racingadvisor to Gov. Chris Christie, took placetoday. It drew little from Hanson exceptreiteration of views already known, butsome interesting observations and commentsfrom him. He cited a 1976 openingnight crowd of 42,000 at the Meadowlandsand attendance of 3,000 to 5,000 anight currently, but never mentioned theintroduction of simulcasting. Asked by alegislator about specifics of his commission’srecommendation for creating “acity within a city” administrative planfor Atlantic City, he answered that “thedevil is in the details,” and said he hadno idea of what might be done, indicatingnothing has been done or is about to be.Asked if the public had been interviewedfor his commission report, he said no, andwhen asked if racing interests had beenrepresented, he said breeder and Christiebacker Mike Gulotta had been talked toand was scheduled to be heard later today.When pressed for specific numberson those contacted or interviewed, he saidhe had none, but would ask his associateBob Mulcahy to look into it and providethe legislator who asked the question withan answer. He praised the MonmouthPark experiment on a shorter seasonwith higher purses, but noted that eventhough the experiment was hailed as asuccess Monmouth had lost moneythis year.He agreed that time was running out onsolutions, but did not comment on a legislator’sstatement that the answer lay inmeeting competition from tracks in surroundingstates with racinos by installingthem at the Meadowlands with the AtlanticCity casinos partnering in their operationand profits.A far more balanced report by RichardLee of the Hall Institute on Public Policyin New Jersey has surfaced. Its statedpurpose “is to point out some obviousshortcomings in the Hanson Report andsome of the arguments being made so thatdiscussion and debate can continue andmore robust solutions can be consideredby the legislature and the governor,”The well-written report is an importantdocument, covering 11 pages, and willbe posted in full on the HTA Web site. ATrack Topics this week also will reviewhighlights of the report.Meanwhile, rumors of a proposed solutionto the Meadowlands crisis are circulating,which would provide for continuedracing with a shorter season andhigher purses, following the Monmouthformula. The subject was discussed at athree-hour symposium at Perretti Farmsin Cream Ridge two days ago, with a paneladdressing “A blueprint to create a successfulfuture for the New Jersey equineindustry.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, Sept. 30, 2010PROGRESS IN NJ, WITH REALISMIt appears that racing leaders in New Jerseyare nearing or have reached agreementon a proposal that if accepted wouldallow a Monmouth Park experimentaltype meeting to go forward at the Meadowlandsfor next year...without slots, sincethat appears realistically to be a futuregoal.One thing seems certain. Tom Luchento,president of the Standardbred Breeders& Owners Association, is not about to letthe slots issue die. In presentations Mondaythis week at a symposium for legislatorsand other leaders at Perretti Farmsin Cream Ridge, and again the followingday at the Summit III at Monmouth Park,Luchento made it clear that slots must bethe ultimate goal for racing in the state.On Monday at Perretti, he told the gatheringof 100 or more, “While we all knowwhat the solution is -- and I will addressalternate gaming -- we have been activelypursuing a number of options. In the interim,we need funding to sustain us beforewe can secure the legislation we needto implement to implement such programsas internet gaming, exchange wagering,sports betting and the expansion of offtrackwagering facilities. As the head ofthe standardbred industry in New Jersey,I cannot let down the people who supportus. I have to believe that all optionsare on the table, including slots or acasino at the Meadowlands.“I would be remiss in my position as presidentof the SBOANJ if I did not continueto fight for the biggest piece in the puzzle,essential to securing our future.” Hesaid slots at the Meadowlands could yield$1 billion a year to the state treasury.Luchento said that “If this was put beforethe public, there would be a title wave ofsupport. Yet a minority of decision makersseem to be holding slots hostage forthe benefit of a few corporations who donot seem to put the best interests of NewJersey first.”At the “Summit” at Monmouth, he toldthe audience that equine farms represented20% of the agricultural businessin the state, with 700 farms, 176,000 acresof land and 13,000 jobs at stake. Withoutthose being saved, he predicted “thestate’s greenways would become parkways.”He concluded by saying, “Muchhas been said about the horse industrybeing self-sustaining. In a way, that hasalways been impossible. It requires gamblingto prime the economic engine thatsupports the breeding, training and racingof horses. The only difference now isthat with the addition of lotteries and casinos,those gaming dollars are spread outand not necessarily going into pari-mutueltote machines. But there is no reasonthat the dollars in slot machines cannotnow be part of that economic engine.” Hetold legislators he hoped they would cometo the conclusion “that this is an industryworth saving.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, October 1, 2010BYPASSED IN THE CROWDTime and space limitations have crowdedout some interesting quotes and storiesduring September. Here are a few:The rule covers any horse qualified torace in Ontario or entered to race, andany registered standardbred. That tossesthe net wide enough.At the Perretti symposium on Meadowlandsproblems last week, State Senator JenniferBeck, whose district includes both FreeholdRaceway and Monmouth Park, hadsome comments that need to be heard inTrenton. “I suggest to you that as the negativeis stated about our industry, that wecontinuously remind folks that this industrygenerated a profit right through 2007.It wasn’t until that moment in time, whenPennsylvania opened up its casinos, thatwe saw the decline. Horse racing can beself-sustaining. There is no doubt. Butwe failed to react to the competition onour borders. New Jersey is to blame, notthe horse racing industry.” State AssemblymanJoe Malone, a colleague of AssemblymanRon Dancer, son of Stanley,both from the horse-rich farm country ofcentral New Jersey, added, “If this wasa battle, New Jersey lost. It’s absolutelydisgraceful that New Jersey allowed itselfto be surrounded.”In Ontario, the racing commission amendedits out-of-competition testing rule to includethe words, “acting upon reasonableand probable grounds,” but left standingstable areas, training areas and trailers.The rule covers horses that haveraced in the past 60 days or arewithin 60 days of racing.In Kentucky, a circuit court judge upheldthe racing commission’s four-year suspensionof veterinarian Rodney Stewart forpossession of cobra venom.In New York, Empire Resorts, owner ofMonticello Raceway, has ended its relationshipwith developer Louis Cappelliby severing an agreement on Cappelli’saborted Concord hotel project. Empirecited Cappelli’s inability to obtain financingas cause for ending its deal, which hadincluded a 40-year agreement to managea future harness track at the Concord inreturn for a $2 million a year fee and apercentage of take on a proposed racino.The Times-Herald Record said that Cappelliowes millions to contractors, and$40,000 to the town of Thompson for engineeringfees.In California, outgoing Governor ArnoldSchwarzenegger has signed Senate Bill1072, designed to help racing by raisingthe price of the product in desperateeconomic times. The bill also legalizesexchange betting for the first time in theUnited States, but not until May of 2012,giving the California Horse Racing Boardtime to write rules and regulations governingBetfair’s first U.S. victory.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, October 4, 2010NEW HARNESS RACING DAILYTwo of harness racing’s top journalists --Bill Finley, who writes for the New YorkTimes and ESPN and other publications,and Mike Farrell, the veteran racing writerof New Jersey’s Bergen Record -- are preparingto launch a daily online newslettercovering harness racing exclusively. Theventure, to be launched January 1, willhave special preview editions this comingThursday for the Breeders Crown, andlater ones for the Grand Circuit meetingat the Red Mile and the Kentucky andHarrisburg yearling sales. It will appearroughly 250 times a year, and will be distributedfree to subscribers. Dean Hoffmanand Andrew Cohen will write for thenews update, and Emily Gaskin, daughterof Indiana trainer Ernie Gaskin, willjoin the permanent staff. The service willbe supported financially by advertising.Finley, discussing the project, said, “Mywife is co-owner of the Thoroughbred DailyNews, so I have watched it grow andbecome one of the most successful thoroughbredpublications in the world. I alwaysthought a similar publication wouldwork for the harness racing industry. Weare going to try to fill what I think hasbeen a void in this sport by creating aproduct that gives extensive coverage toall aspects of the sport on what will beclose to a daily basis. Just as importantly,it will deliver the news to the readerwhen they want it, within hours ofthe horses crossing the finish line.”To receive the preview editions Thursdayand later, and the daily service when theventure launches on the first of the year,viewers can subscribe now by contactingharnessracingupdate.com, free of charge.VISIT PARIS WITH HOFFMANSpeaking of Dean Hoffman, Equi Toursagain will offer harness racing enthusiaststhe opportunity to visit the City ofLight with the light-hearted Hoffman asmaster of ceremonies for the famed Prixd’Amerique, one of the world’s greatestharness races, in January. The trip offersthe opportunity to enjoy clubhouse seatsfor the $1.5 million race, great restaurants,an international cocktail party, andchoice of 3-star or 4-star hotel accommodationsin Montmartre, the famed artists’colony. Included is a tour of the famedGrosbois harness training center and thenew French trotting museum. The costis $1,085 a person, double occupancy, forthe 3-star hotel and $1,295 for 4-star accommodations.You handle your own airfare, arriving when you wish and stayingas long as you wish. The tour starts ona Thursday afternoon and ends Mondaymorning. For information contact www.equitours.se and click on the American flagfor further information, or contact DeanHoffman at hoffman.communications@yahoo.com, or by phone at 614-457-8750.The tour offers an excellent opportunityto see trotting in France and meet new internationalfriends.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, October 5, 2010THE BUSINESS BEAT.....In Alabama, in what the BirminghamNews called “one of the biggest investigationsof corruption in the history of theAlabama State House, four state senators,powerful lobbyists, and Alabama’s gamingking Milton McGregor, were arrestedby federal agents. In all, 11 people werecharged with buying and selling votes inthe legislature. Although some of the defendantssaid the arrests were purely politicalin connection with today’s elections,an assistant attorney general in Washington,Lanny Breuer, said of the 19-monthinvestigation, “Vote buying, like the kindalleged in this indictment, corrodes thepublic’s faith in our democratic institutionsand cannot go unpunished.”In New York, Scientific Games announcedcompletion of its sale of its racing and venuemanagement business to Great Britain’sSportech for $33 million in cash now, $10million more in three years, and Sportechstock worth $26 million.Also in New York, a nasty fight developingbetween HTA director and Tioga andVernon Downs boss Jeff Gural and NewYork City OTB over Gural’s pursuit of rescindmentof the 1% increase from trackrevenues and more free-play vouchers. Ananonymous NYCOTB official said defiantlythat the company is not going to allowharness tracks “to take down the entireindustry.” Gural says the exactopposite is true.In West Virginia, the racing commission,hopes to find funds to transfer salaries ofjudges, stewards and investigators nowpaid by tracks to the state, which the commissionsays “will modernize outdatedrules and eliminate the appearance of aconflict of interests.” Three onsite trackvets at Charles Town Races and MountaineerRacetrack also will be included inthe proposed transfer.In New Jersey, the Asbury Park Press, ina strong editorial advocating support ofracing, called the governor’s chief aide onthe issue, Jon F. Hanson, “mule headed inhis insistence that the state should pull theplug on financial support for the horse racingindustry while at the same time pouringmoney into Atlantic City by taking it over.”The paper said, “The governor needs tostop his either-or thinking. The choice isnot between horses and Atlantic City. It’sabout how to make them mutually beneficial.”In Pennsylvania, TVG announced a partnershipwith Harrah’s Chester Casino andRacetrack that will enable TVG to takebets in the commonwealth.In Kentucky, Churchill Downs is offeringdiscounted Breeders’ Cup general admissiontickets and announced it will eliminate64 jobs in a move to reduce redundancywith its purchase of youbet.com.In Las Vegas, signs that the AmericanGaming Association is moving towardendorsement of online betting.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, October 6, 2010VALLEY VIEW AUCTION OCT. 20Centaur Gaming has announced it has“multiple written bids” for its Valley Viewproperty and racing license in Pennsylvania,meeting a harness racing commissiondeadline and setting the stage for anauction October 20. The commission hadmandated on Sept. 3 that a written bidhad to be submitted by 5 p.m. today orthe license would have been terminated,revoked and surrendered to the commission.Centaur did not identify the bidders,saying that “to help ensure that the competitivelandscape of the auction processremains intact, we will refrain from providingadditional specifics at this time.”BILLION DOLLAR NO BRAINERThat’s the assessment of former governorand current state senator Richard J. Codeyof New Jersey, who says that’s what racinosat the Meadowlands represent in anarticle published in today’s Asbury ParkPress. Codey says 26 gaming facilities --horse tracks, racinos and casinos -- aregenerating more than $5 billion a year inthree neighboring states, and “It’s a matterof fairness that we allow New Jerseytracks to compete on a level playing fieldwith out-of-state facilities.” He proposesthat Atlantic City casino interests couldget involved in operating racinos in NewJersey, and says simply giving up on theMeadowlands “is tantamount to throwingaway hundreds of millions -- if not abillion -- dollars a year, a mistakeNew Jersey cannot afford.”15 MINUTES WITH THE DEVILAt last week’s “Racing Summit” at MonmouthPark, Jon Hanson, head of governorChris Christie’s kitchen cabinet onracing and gaming, was asked about theirproposed “city within a city” proposal totake over administrative details of governmentin Atlantic City. He told thecrowd nothing was in place as yet, that“the devil is in the details.” Yesterdaythe devil was dispatched in a 15-minutephone call between Christie and AtlanticCity mayor Lorenzo Langford, with thedevil stealing off with the details and thepublic once again excluded, as it was inpreparation of the now infamous Hansonreport. Langford said a one-page agreementwas signed for the state to provideoversight of the Atlantic City budget andfinances for at least a year. New Jerseywill have a direct hand in developing abudget and tax rate for the city of 40,000,but Langford made clear the proceedingswould be confidential. “It’s advisoryrather than compulsory. We can’t havetoo many eyes looking at the city finances,”he was quoted as saying in a story byDunstan McNichol in Bloomberg.com.NEW FLORIDA TRAINING BASEA new harness racing training center inVero Beach, Florida, will open later thismonth, owned and operated by Swedishtrotting breeder Karl-Erik Bender. With20 paddocks, two training tracks and a900-meter straightaway, the centerwill accommodate 92 horses.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, October 7, 2010GOOD NEWS, BAD NEWSAt Churchill Downs in Louisville, it dependswhich side of the management-stafffence you’re on. If you are CEO Bob Evans,things are wonderful. He was givena six-year contract extension on his basesalary of $550,000 a year, with bonus provisionsof up to 100% of salary. If you are64 employees likely to be laid off by theend of the year, things are dismal. Andif you are Steve Sexton, former presidentof Churchill Downs and president of itsentertainment group, who resigned fromhis $500,000 a year job, apparently in adifference of philosophy with Evans overthe discontinuation of HullabaLOU, thebig music festival at Churchill that lost$5 million last year, things are not tooshiny. Sexton’s salary was $343,111 lastyear, but bonuses and retirement plancontributions boosted his total income tothe half-million mark, according to theLouisville Courier-Journal. Sexton, whohad been with Churchill for nine years,told the paper’s online service it would be“fantastic” if he could stay in Louisville,either in or out of racing. Churchill saidthree other unidentified entertainment divisionemployees would be leaving, as Evanschose to shut down that department.“Sometimes it’s going to work and othertimes it’s not going to work,” he said ofthe division closing. “But I don’t thinkwe can quit taking the chances becausethen we’re pretty much stuckwith what we are today.”PAY UP OR FACE SHUTDOWNThat was the message sent by New YorkGovernor David Paterson to the SenecaIndian Nation, telling them they eitherpaid the state their $214 million bill -- $105million last year and $109 million this year-- for gambling exclusivity or they facedcancelation of their state compact. TheSenecas, who stopped sharing revenueon cigarette sales in August in anothercase still to be decided by courts, say NewYork violated its compact by allowing racinosat HTA members Buffalo Racewayand Batavia Downs and at Finger LakesRace Track. Gov. Paterson’s counsel, PeterKiernan, gave the Senecas 14 days tonegotiate the $214 million debt.PENN NAT’L WINS VS. CORDISHIn a battle between two giants, Penn NationalGaming has won a victory againstthe Cordish Companies over its right tobankroll opposition to the hotly controversialproposed Arundel Mills casino thatCordish wants to operate. Penn Nationalcontends it has the right to spend moneyto protect its new casino in Maryland andits operation in neighboring West Virginia,and Attorney General Doug Ganslerhas agreed. In a 10-page opinion,Gansler said Penn National’s Marylandoperation does not bar it from campaigningagainst another casino’s zoning laws.“Ultimately,” Gansler said in his opinion,“the people will decide the issue at theballot box.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, October 8, 2010WHERE TO FROM HERE?New York City OTB’s new president andCEO Greg Rayburn has taken his first bigstep in reorganization of the company. Henegotiated a deal with its biggest union toprovide $12,000 severance payments tosome 550 of OTB’s 1,300 workers in returnfor them leaving employment withthe company. Part of the package includestransferring NYC OTB’s account wageringoperations to creditor racetracks inthe state, principally Yonkers Racewayand the New York Racing Association.Also part of the plan is for thoroughbredand harness tracks to take a $30 millioncut in annual payments. With the unionapproving by a 271 to 139 vote, the plannow must be approved by the creditors’committee, where it faces harness racingopposition, and the bankruptcy court, aswell as legislative approval for changes instate law on some of the complex provisions.TALK ABOUT SECRET MOVESWhen the CEO of a racetrack has to readabout sale of his track in the local newspaper,one wonders about talk of transparencyin government. That was the situationin Del Mar, where CEO Joe Harperand presumably others read about thereported sale of the seashore track tothe city of Del Mar for a reported bargainbasement price of $120 million. Theproposed sale, which drew immediatecriticism, includes 350 acres ofprime property.The San Diego Union, which broke thestory, said top secret negotiations hadbeen ongoing for months, but surfacedWednesday when a bill was introduced inSacramento and then pulled when it facedfailure to gain the two-thirds majority voteneeded to pass. One member of the SanDiego area legislative group, assemblymanMartin Garrick, said, “Del Mar is atreasure located in an irreplaceable location.This bill was rushed through at thelast moment, without going through thecompetitive bidding process and not seeingdaylight like it needed to.” The mayorof Del Mar, Richard Earnest, said the citycouncil backed the idea unanimously, andwould “like to make it a first-class facilityfor horses and agriculture.” That statementalso must have surprised Joe Harper,along with others who have built DelMar into the Saratoga of the west. Continuingthe deep dark secrecy, the statedid an appraisal but did not share it withthe city. The president of the fair boardthat controls Del Mar said he had heardfigures as high as $800 million to a billionas the value of the property instead of the$120 million now offered. The mayor acknowledgedmuch debate ahead, saying,“Stay tuned. We got a lot to talk about inthe coming weeks.”PENN NATIONAL IN VEGASThe empire rolls west. Penn NationalGaming, which spurned a position in LasVegas earlier this year, is acquiringcontrol of the M Resort there.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, October 11, 2010CROWNS A HUGE SUCCESSArtistically, financially, journalistically,and everyway else, the $6 million 12Breeders Crown championships at MoheganSun at Pocono Downs Saturday nightwere a roaring success. The racing wasspectacular, the crowd big and enthusiastic,and business breaking a 15-year-oldrecord, more than doubling the previousbetting mark set on Kentucky Derby daya decade ago. The $2.25 million wagered,with Australian and New Zealand bettingnot yet recorded, set a Pennsylvania harnessracing record, and was just underthe $2.3 million total bet at Woodbine lastyear.The Wilkes-Barre Times-Leader, MoheganSun’s prime local media outlet, joinedin the accolades. Its story read, in smallpart, “Thousands of people flocked to theracetrack for the 27th annual BreedersCrowns, which featured the best harnessracing horses and drivers in the world.Extra seating, security, parking attendantsand concessions were in place for therichest day in harness racing, with pursesexceeding $6 million.” One attendee toldthe paper’s reporter, “I wouldn’t be hereif it wasn’t for the racing. I think thisnight’s going to bring a lot more peopleto the area, to the track and to MoheganSun. It’s going to be good for business.”The track’s local press carried glowingstories reporting fans’ enthusiastic andexcited reactions to the big night of racing,and the TV production of the proceedingsalso received critical acclaim.Both HRTV and TVG carried the Crowns,the former blemished badly by hosts whoobviously knew little or nothing aboutharness racing, the latter suffering whenTVG opted for a co-host performancerather than letting veteran harness racingannouncer Gary Seibel go it alone.It may have been hypersensitivity, butboth shows downplayed or ignored the$500,000 and $600,000 purses, in one caseshowing a $300,000 purse as $3,000in its graphics. Nothing, however,could dim the success of the night.AT OTHER HTA TRACKS.....BATAVIA DOWNS was forced to cancelits OTB show simulcast in the Buffaloarea because WGRZ/Universal Sports/Buffalo was unable to carry the requirednumber of live racing simulcasts on cable.It continues to be carried on channel 98on Time-Warner’s basic digital packagein the Rochester market....PRAIRIEMEADOWS is working on a new leasewith Polk County in Iowa. Voters are beingasked to approve another eight yearsof gambling at the track in next month’selection. The current lease expires Dec.31 and the county administrator says therevised contract, on which work began inJuly, should be much different than thecurrent agreement under which PrairieMeadows has been operating.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, October 12, 2010MAJOR RACING JOB CHANGESTwo popular and well-known HTA figures,Mark Loewe and Vic Harrison,have moved up to new jobs. Penn NationalGaming announced today that Loewe,who formerly worked at Pompano Parkand Prairie Meadows and for the last twoyears has been general manager of theSanford Orlando Kennel Club in Longwood,Florida, is moving to the flagshipoperation in Grantville, PA, to assumedirect oversight of all pari-mutuel andracing operations at Penn National RaceCourse as vice president of racing at thecompany’s Hollywood Casino there. VicHarrison, who was United Tote’s directorof North American sales for ten years,and has been executive director of the VirginiaRacing Commission for the last twoyears, will take over Loewe’s post as GMof the Sanford greyhound track. Penn National’ssenior vice president for regionaloperations, John V. Finamore, said theappointments reflect the company’s commitmentto optimizing its pari-mutuel operations.“Mark has done a great job in achallenging environment at our Sanfordfacility and his strong racing and operationsbackground will be an excellent additionto our Grantville team. Vic bringsa diverse perspective to our managementteam with deep regulatory experience aswell as a background in customer serviceand industry relations.” HTA wishes bothlongtime good friends all the bestin their new executive roles.ARLINGTON’S ARNOLD RESIGNSIn another major racing executive changeannounced yesterday, Roy Arnold has resignedas president of Arlington Park inIllinois, a post he has held for four years.The announcement caught Chicago racingby surprise. Arlington has beenstruggling, down 38% in betting in thelast three years, with all-source wageringtotals down 27% this year from 2009.Arnold was part of a five-track coalitionteam, along with John Johnston of Balmoraland Maywood Parks, Tim Careyof Hawthorne Race Course, and BrianZander of Fairmount Park, working forslots at Illinois tracks.SLOTS COMMISSION IN OHIOGov. Ted Strickland has named his sevenpersonOhio Gaming Control Board,each member to receive $60,000 for theirpart time jobs of introducing rules andregulations and overseeing track racinosand casinos. All face confirmation bythe state Senate and the results of nextmonth’s gubernatorial election. The sevenare: Charles Saxbe, Columbus attorneyand member of a distinguished legalfamily including a former U.S. AttorneyGeneral, named chairman; attorneyWilliam Kirkham; former Cincinnatipolice captain Michael Bolte; Ohio StateUniversity controller Greta Russell;attorney Vanessa Whiting; former racingcommissioner Jerry Chabler; and JosephRugola, executive director of Ohio’sAssn. of Public School Employees.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, October 13, 2010MORE, TOM, TELL US MORETom Luchento, president of the StandardbredBreeders & Owners Assn. of NewJersey, issued a message intended to reassurehorsemen yesterday, telling them notto worry about the Meadowlands havinga racing meeting in 2011. “No one shoulddoubt that there will be a 2011 meet at theMeadowlands -- anywhere from 100 to141 dates -- and it will feature the highestquality of racing with purses rangingfrom good to industry-leading, dependingon the success of our negotiations,”Luchento said. The last phrase, with ouritalics added, might diminish the enthusiasm,but optimists could only interpretthe release as indicating things were goingwell in Trenton, the state capital, butdetails could not be discussed becausethe negotiations were ongoing. Luchentomade no additional comment on how orwhat or where those negotiations stand,but did say, “We know horsemen needto make their plans and rest assured theMeadowlands will be racing next year.”That had to be reassuring to all. TheMeadowlands, meanwhile, was preparingfor its fall meeting, which begins on Oct.23, a week from Saturday, and will offerracing on Fridays and Saturdays thruDec. 18, with a 7 p.m. post time. New Jerseygovernor Chris Christie, meanwhile,continued his strong support of AtlanticCity casinos, calling his plan for astate takeover of city administration“a new beginning.”NEW PRESSURE ON NJ, DELA new casino in south Philadelphia andMaryland’s first casino at Perryville, onthe Philadelphia-Baltimore expressway,are putting severe pressure on casino andracino operations in Atlantic City andDelaware. Atlantic City gaming revenuedropped another 12% in September, withslot revenue down 9.9% from last year.Table game play was down 16%. In Delaware,the state’s three track racinos askedfor relief from millions in state fees for tablegame licenses, saying the new competitionwas seriously impacting their play, whileincreasing competition for supervisoryhelp was boosting labor costs. Ed Sutor,CEO of Dover Downs, said the combinedfees of $13.5 million and the reduced playwas hurting both Dover and Harrington,with both tracks losing money on theirtable games. Delaware’s governor, JackMarkell, showed little sympathy, sayingthe racinos were aware of the competitiveenvironment when they launched tablegames. Brian Selander, the governor’sspokesman, said, “The racinos were activelyinvolved in negotiating these costsas part of the launch of table games. Theyknew there was competition coming fromnearby states. The taxes support teacherand state police salaries, and the governoris not inclined to push for changes inthis agreement.” Harrington CEO PattiKey said further new competition fromMaryland “would be crushing for Harringtonand Dover.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, October 14, 2010IS HE GOV AND MAYOR NOW?The forces of Governor Chris Christie ofNew Jersey took over broad powers ofadministration in Atlantic City yesterday,including the ability to fire city managers,restructure the city budget, and rejectcontracts with unions, according to thePressofAtlanticCity.com. The agreementoutlines 22 specific provisions of the LocalGovernment Supervision Act that thestate could invoke to overhaul city finances,the news service said. The purpose ofthe state’s move was to save the sinkingcity from a $9.5 million operating deficit.The takeover followed a finding Tuesdayby a Superior Court judge, ValerieArmstrong, that the city had committed“a gross failure” to abide by state budgetlaws. Under the agreement the statecould appoint or dismiss non-unionizedemployees, direct all aspects of tax assessment,and liquidate or restructure citydebt, according to the Press news service.The state characterized the takeover asassistance, and called it “a very positivedevelopment...a very friendly level of assistance.”LAW OK, NOW TO ENFORCE ITThe Ohio Supreme Court, in a unanimousdecision, said this week that the state’slawmakers were within their rights imposinga $10 payout limit three years agoon so-called games of skill that look likeand sound like slot machines. The legislaturesaid at the time it passed the bill thatthere were 50,000 such games in operationaround the state. There is no currentestimate, but the games continued sincethe law was passed and the state attorneygeneral, Richard Cordray, acknowledgedfollowing this week’s court decision thatthe ruling is not likely to eliminate the machines.The court test had been broughtby a Columbus cafe owner who operateddozens of new Sweepstakes machines inhis cafe, which was closed at the end ofJune after legal battles with local authorities,according to the Columbus Dispatch.The State Supreme Court decision reversedthat of an appeals court, and heldthat the prize limit does not violate theequal protection clauses of the federal andstate constitutions. The attorney generalsaid he thought the court ruling correct.That takes care of that problem. As forthe Meadowlands, that issue appears toremain in negotiation in Trenton, but asreported here yesterday the track’s horsemenwere assured by their president, TomLuchento, that there would be a harnessracing meeting of 100 days ormore in 2011.NEW HALL OF FAMERS NAMEDLongtime harness racing official WalterRussell and former trainer-driver JimSimpson, now head of Hanover ShoeFarms, have been named to the sport’sHall of Fame in Goshen. Announcer GarySeibel and the late publicist Joe Hartmannjoin the Communicators list.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, October 15, 2010HARNESS DAILY IMPRESSIVEBill Finley’s and Mike Farrell’s new harnessracing daily online newsletter, harnessracingupdate.com,isn’t due to get underwayuntil January 1, but if two previeweditions -- for the Breeders Crowns andLexington yearling sale -- are indicativeof what is to come, the project is likely tobe well received, particularly since it willbe free to subscribers. The Lexington edition,online shortly after the first night’svery solid sale, contained top priced yearlings,comparative statistics, stories byFinley and writer Emily Gaskin, briefs ontop yearlings coming up, and entries forthe first day of racing, using informationfrom USTA.The highlight of the Lexington editionwas a long column by Finley titled “WhyIt’s Atlantic City That’s Not Worth Saving.”The full transcript will be reprintedin HTA’s Weekly Track Topics. Here aresome of the column’s highlights:Governor Chris Christie wants to save AtlanticCity and he’s so damned determinedto do so that if it means killing off New Jersey’shorse racing industry in the process,so be it....The Hanson Report reads like it was writtenby people who can’t wait to put harnessracing out of what they see as its misery.The report has so many flaws that itwould be laughable if it weren’t sodangerous....The central problem is that it fails to realizethat it’s Atlantic City that probably can’tbe saved, not racing. Atlantic City doesn’twork and it’s not ever going to work again....There are casinos, racinos, and slot machinesin Pennsylvania, New York, Delaware,West Virginia, Connecticut, RhodeIsland and Maryland. It is surrounded byhostile forces, fighting a battle it can neverwin. Even Atlantic City is cannibalizingAtlantic City. Harrah’s owns five casinosin Atlantic City, all of which would be faringa lot better if Harrah’s didn’t have aracino of its own in Chester, PA, a mere 71miles from Atlantic City....The people running casinos in AtlanticCity certainly aren’t dumb. I believe theirreal reason for opposing slots at the tracksis a lot more insidious. They are workingbehind the scenes to put racing, particularlyharness racing, out of business...andin Christie and Hanson they have willingco-conspirators.Horse racing deserves to be saved. It’stoo important and provides too many jobsand too much green space to be allowedto go away....Atlantic City, a world createdin 1979, does not work in 2010. Should itjust die? No, no more than horse racingshould. It should team up with racing andthe state to bring a casino to the Meadowlands,a salvation for all involved.HTA member Western Fair Racewayopens its 50th season of harness racingtonight.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, October 18, 2010IF YOU LIVE LONG ENOUGH....You will see the circle of life make itsrounds. The announcement that SantaAnita has begun tearing up its much heraldedPro-Ride synthetic track and is preparingto return to dirt brought to mindthe similar situation almost half a centuryago, when the Meadows in western Pennsylvaniagave up on its synthetic Tartantrack from 3-M company and ripped itup in a similar failure. It will take heavyequipment three weeks to tear up SantaAnita’s Pro-Ride, and track presidentGeorge Haines says, “We’re still in theprocess of selecting the new material.Our group is gathering more materialright now, and it’s being set out for testing.”A California rock quarry is providingthe dirt, which will be mixed out ofa conglomeration of several types of sandand clay. The million dollar experimentwas mandated by former California racingcommission chairman Richard Shapirothree years ago.AND ANOTHER OLD ARGUMENTIn South Carolina, another case of whatgoes around comes around. The state SupremeCourt will hear arguments tomorrowas to whether Texas Hold’em pokeris a game of skill or chance. The casehas arisen from a lower court’s rulingthat playing the game in private homesdoes not violate South Carolina’s antigamblinglaws. Five people wereconvicted after a home game fouryears ago.WORLD GAMES DREW 507,022The World Equestrian Games, which endedrecently in Lexington, KY, drew morethan half a million people to the Bluegrass,according to the sponsors. Dailyattendance averaged between 25,000 and35,000, and the final Sunday drew 38,683to the various equine events. Total attendanceincluded media, athletes and volunteerswho entered the grounds daily, butnot children under 12 who did not requiretickets for many of the competitions. NBCSports devoted 8.5 hours to the games.Speaking of NBC television, harness horseowner Ken Wood, whose stable races atDover Downs, Chester Downs and HarringtonRaceway and who has gainedworldwide attention for his charity welldrillingin Ghana in west Africa to providedrinking water for natives there, willappear on NBC’s Today show tomorrowmorning. Wood is scheduled to appearat 8:30 a.m. eastern time and again fromnoon to 1 p.m. in an online chat with JanePauley on his African expeditions thathave helped thousands.SEND A KID TO COLLEGEThat’s the new pitch being pushed by theWashington state lottery, which has beendevoting 21 cents of each lottery dollar toa new state fund for student aid for college.A new TV campaign currently istouting the spend-a-buck, help-send-akid-to-collegepromotion.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, October 19, 2010“A RAY OF HOPE” IN NJThat is the view of horsemen’s presidentTom Luchento after leading New JerseyDemocratic legislators expressed viewsthat both Atlantic City and racing in thestate deserve consideration and help. Thelegislators said nothing really new, andsome of their ideas of salvation requirelocal consent by cities and towns to acceptoff-track betting facilities. But SenatePresident Steven M. Sweeney did say,“Because of the thousands of jobs thathang in the balance, failure to act wasnever an option,” an encouraging signthat he and other leaders of his party atleast have heard the case for saving racing.Jobs in this economy are a magicword, and hopefully more politiciansin Trenton will recognize that and wavetheir magic wands. Another way theymight is a hint they might help Xanadu,the giant retail project long stalled at theMeadowlands complex, get jump-startedwith grants and other incentives for theprivately owned project, according to AsburyPark Press writer Bob Jordan.INDY DOWNS, CORDISH DIFFERAccording to the Indianapolis BusinessJournal and Shelbyville News in Indianaand the Baltimore Sun in Maryland, IndianaLive!, the casino at Indiana Downs,and the Cordish Company of Baltimore,which manages the operation, are discussingan early termination of their 10-year management contract, wortha reported $7.2 million last year.The issue is unrelated to Cordish’s effortsto develop the Anne Arundel casinoin Maryland, where it and Penn NationalGaming are spending millions each,Cordish trying to gain approval fromvoters next month and Penn National opposingthe idea. Cordish has the license,and has announced plans to build severalupscale restaurants, well known in theBaltimore-Washington area, at the casinoif it is approved.SLOT TALK AGAIN IN CHICAGOA Senate bill in Illinois -- SB 3146 -- is generatingspeculation and excitement thatits chances of adoption seem possible followingnext month’s election. As it standscurrently, it would allow up to 1,200 slotsat each Illinois racetrack, helping themand helping fund the state’s $31 billioncapital construction projects. It faces oppositionfrom riverboat town legislators.10 DAY HARNESS IN IOWAPrairie Meadows Chief Executive Officerand HTA Director Gary Palmer, meetingwith editors of the Des Moines Register todiscuss a Nov. 2 ballot issue on continuinglegalized casino gaming in Polk County,as required by law every eight years,said the track’s harness meeting this yearprobably would be only 10 days in length.Palmer said plans call for 67 days of thoroughbredracing, 26 of quarter horse racingand only the brief 10 day meetingfor standardbreds.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, October 20, 2010DOES JON KNOW ABOUT THIS?Horse racing in New Jersey found it hada new friend yesterday, when GovernorChris Christie told them so. Christie,campaigning in Philadelphia for thePennsylvania Republican gubernatorialcandidate Tom Corbett, said he wouldlike to save horse racing in New Jersey...aslong as New Jersey doesn’t have to subsidizeit. It was not known if developer JonHanson, author of the death decree forracing that carries his name, knows aboutChristie’s new announcement that “I wanthorse racing to continue in New Jersey...and I’m sure we’ll be able to work it out.”Christie referred to the Democratic proposalMonday that supported racing byintroducing sports betting and intrastateinternet gaming at Atlantic City casinos,but apparently not by installing slots atthe Meadowlands, Monmouth Park orFreehold Raceway.A NEW SPEED RECORD IN OHIOEleven days in office. That was the newmark established in Ohio yesterday whenMichael H. Bolte, a 30-year veteran of theCincinnati police department who was appointedon Oct. 8 by governor Ted Stricklandto the new Ohio Casino Controlcommission, quit. Bolte said he decidedto retire from his new job for unspecifiedpersonal reasons. Another former Cincinnaticop, John L. Wainscott, wasnamed as a new Republican commissionmember replacing Bolte.JOCKEYS ASK COURT HELPThe Jockeys’ Guild has asked a Kentuckyjudge to issue a temporary restraining orderblocking the Kentucky Horse RacingCommission’s emergency rules on safetyvests and advertising on pants. With theBreeders’ Cup coming up at ChurchillDowns Nov. 5-6, the commission requiredthe use of new safety vests and full disclosureof how much jocks would be paidto wear advertisements on their ridingpants. The Guild says enforcing that ruleon full disclosure of sponsorship agreementswould discourage advertisers fromparticipating in the Cups, which offerwide television exposure opportunities.STRONACH’S $10 MILLION BETFrank Stronach’s latest idea to save racingis a $1 Quad Superfecta, which wouldprovide a $10 million payoff for a buck toanyone able to pick four horses in correctorder of finish in four different races on aSaturday afternoon. The Maryland RacingCommission is considering approvingthe bet, and publisher Ray Paulick askedhis newsletter readers what they thoughtabout it. One called it “beyond ignorant,”and another claimed that approximateodds of winning would be 645 trillion to1 in four 10-horse fields, 83 trillion to 1 infour 9-horse fields, or a mere 17 billion to1 in four 6-horse fields. That respondentsaid the bet was so flawed that it appearedno Stronach staffers sat down and did thebasic math. Don’t look at us. Whenit gets past 9 x 8, we back off.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, October 21, 2010NYCOTB, CREDITORS AGREEThe New York City Off-Track BettingCorporation and its creditors havereached what New York Governor DavidPaterson calls “an historic agreement”that will keep the betting organizationafloat. OTB and its creditors’ committeereached an accord under which NewYork tracks will forgive some $65 millionowed to them by OTB and in return willtake over NYCOTB’s advance deposit accountwagering operations, which havebeen growing in an otherwise bleak market.Labor unions will be giving up some550 jobs under the agreement. Gov. Patersoncalled the agreement “a tremendousachievement” that will help maintainmore than 17,000 jobs in New Yorkthat are directly supported by the racingindustry and many thousands more supportedby economic activity generatedby horse racing. New York horsemen’spresident Joe Faraldo was less optimistic.He put the number of people directly employedas a result of racing at 40,000, andhe predicted, “While the governor andNew York City OTB may have reachedagreement with the creditors’ committee,they are going to find it much tougherto convince the people of New York stateand their legislators that this proposalas it now stands makes any kind of longterm sense.” The agreement faces somelegislative changes and approval ofthe federal bankruptcy judge overseeingOTB’s reorganization.HERE AND THERE IN RACINGCentaur’s harness racing license in Pennsylvaniagoes on the auction block today,with results not likely until the middle ofnext week, according to the Beaver CountyTimes. If a sale is approved by the unnamedNew York financial firm handling it, andby the bankruptcy judge overseeing thematter, the winning bidder will have untilthe end of the year to apply for Centaur’slicense. If a sale is not approved, the licensewill revert to the state harness racingcommission, and other firms could applyfor it....In western New York, the SenecaIndian Nation has 30 days to reach accordwith New York state over a disputed $214million in revenue-sharing payments. Atthe end of that time the matter will go tobinding arbitration, and the Senecas saythey have “adequate resources” to reacheither a negotiated settlement or a bindingarbitration decision....In Maryland, PennNational’s Hollywood Casino in Perryville,the state’s first casino under the state’snew gaming laws, generated more than$2 million in revenue during its first fourdays of operation at the end of September,with its 1,500 slots averaging $346 a day.The state had predicted average handleof $210 a day per machine....Genting Malaysia,basking in the glow of its 30 yearcontract to build and operate Aqueduct’sracino in New York, and flush with itsSingapore success, has announced it willbuild a casino in London in time for the2012 Olympic Games there.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, October 22, 2010ONE REALLY BIG STORY IN NYThe story in New York today, commandinghuge media attention throughout thestate, is the report released yesterday byInspector General Joseph Fisch, chargingGovernor David Paterson, SenateDemocratic Conference Leader JohnSampson and Assembly Speaker SheldonSilver with seriously mismanagingthe handling of the failed Aqueduct EntertainmentGroup bid for the racino itwon and then lost. The report seemed togo far beyond pre-election politics in bothits charges and implications. The AlbanyTimes Union headed its editorial, “Governmentat its worst,” saying, “There areindications that the process may havebeen marred by corruption in the stateSenate,” and continued, “Mr. Paterson’soffice goes so far as to portray the governoras some kind of good governmentknight who rode in at the last minute tosave the day.” It also noted the inspectorgeneral’s summary, “...at each turn,our state leaders abdicated their publicduty, failed to impose ethical restraintsand focused on political gain at a cost ofmillions to New Yorkers. Unfortunately,and shamefully, consideration of whatwas in the public’s best interest, ratherthan the political interest of the decisionmakers, was a matter of militant indifferenceto them.” Frederick Dicker, writingin the New York Post, said “the scath- ingreport...could hand control of theSenate back to the Republicansand take down Democratic Senator EricSchneiderman’s front-running campaignfor attorney general, political insiderssaid yesterday.” Blair Horner, legislativedirector of the New York Public InterestResearch Group, was quoted in theNew York Times as saying, “This reportreveals Albany at its most sordid. EveryNew Yorker should be outraged. We urgethe district attorney and U.S. attorney tomove quickly on the I.G.’s finding of possibleviolations of the public officers law.”The Fisch report included an allegationthat John L. Sampson, the Democraticleader from Brooklyn, had urged AEG toadd builder Donald Cogsville to its team.Sampson said he could not recall doing so.Fisch contended that Sampson’s testimonylacked credibility, saying, “I stoppedcounting the number of his ‘I don’t recalls’when I reached 100.” Whether politicallymotivated or not, the Fisch reporthas stirred up a storm 10 days before nextmonth’s election.A BLOW FOR NORTHVILLEHTA member Northville Downs receiveda setback in its long legal battle againstGov. Jennifer Granholm and AttorneyGeneral Michael Cox challenging a 2004vote, backed by Detroit casinos, requiringa statewide as well as local vote for changesin state law that would have paved theway for track slots. The U.S. Court ofAppeals declined to overturn a federaldistrict court ruling. No decision yeton a U.S. Supreme Court appeal.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, October 25, 2010IT’S CLOSE -- VERY CLOSE -- IN MDWith big bucks on the line and a week togo, the battle between Penn National andthe Maryland Jockey Club on one sideand Baltimore’s Cordish Corporation onthe other for gaming rights at the AnneArundel County mall is too close to call.The Baltimore Sun poll on the issue shows47% in favor and 45% opposed to thehuge casino -- Maryland’s biggest by farif approved -- with the undecided voteslikely to decide the outcome. Almost 40%of voters said they thought a racetrackwould be the best location. Eighteen percentdid not want slots at all, and 7% wereundecided. In another poll, conducted bythe Washington Post, Democratic GovernorMartin O’Malley is 14 points aheadof former governor Robert L. Ehrlich,and if that margin holds up it seems likelythat O’Malley’s supporters among theundecided would opt for his view in favorof Anne Arundel slots.In another gambling dispute involving aracino, a group called Citizens Against aBad Deal filed a complaint asking a judgeto prevent the mayor of Biddeford fromcontrolling or interrupting a special townmeeting tonight on the proposed racino.Scarborough Downs is planning to moveits racetrack from Scarborough, whichhas voted against track slots, to nearbyBiddeford if that town approves the idea.The opposition group wants to makecertain the meeting is a “generalmeeting” with both sides heard.MEADOWS, UNHAPPY, REVISESThe Pittsburgh Post-Gazette reports thatThe Meadows, unhappy with its racinoresults, is changing its alignment of offerings.General Manager Sean Sullivantold the paper he was adding four blackjacktables, another roulette wheel andtwo new Let It Ride bonus games in aneffort to boost sagging table games revenues.A leader in slot play, The Meadowsracino underperformed seven of Pennsylvania’snine casinos and racinos in tablegame play in August, and seven of ten lastmonth.BOYD SAYS NO THANKS, MGMBoyd Gaming, after “a careful review,”has decided not to exercise an option tomatch offers MGM Resorts Internationalhas received for a 50%, non-controllingshare in MGM’s Borgata in Atlantic City.Boyd said, “Given other opportunitiesand our current focus on deleveraging ourbalance sheet, the current offer would notprovide sufficient return on investmentfor our shareholders.”CENTAUR SELLS; NOW WHAT?Centaur of Indiana has sold its Pennsylvaniaharness racing license at auction for$5.6 million to a group called AmericanHarness Tracks, LLC, headed by DarylW. Price. Price earlier had talked about atrack near Johnstown, but present plansare unknown and the purchase must beapproved by a bankruptcy judge andstate harness racing commission.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, October 26, 2010GURAL ON OTB AGREEMENTTrack owner, horse owner and breederJeff Gural, saying he was “extremelyconcerned” about Standardbred OwnersAssociation President Joe Faraldo’sobjections to the New York City OTB reorganizationplan, has issued his own versionof events. They are excerpted hereand will be published in full in this week’sTrack Topics. Gural, a member of theCommittee of Unsecured Creditors thatworked out the agreement, says Faraldohas created “a completely false impression”of what transpired in reaching theOTB accord. Gural says he representednot only a client, the owners of the 1501Broadway office building where NYCOTB is headquartered, on the creditorscommittee, but also spoke “as an ownerof a dozen racehorses, over 40 mares,30 weanlings, 20 yearlings, two breedingfarms and two racetracks.” He saidit had become obvious that without majorrestructuring NYC OTB would havebeen forced to close, taking down with itmore than $700 million in wagering annually,which he called “catastrophic to thehorseracing industry.” He said it was notrealistic to expect the state of New York,facing a $7 billion deficit next year, tosubsidize NYC OTB’s losses, and that insteadthe creditors committee tried to finda solution “that would inflict as little painas possible on all of the participants.”He called the agreement “the bestdeal possible for the industry.”JOCKS WEAR THE PANTS HEREFaced with a court battle, the KentuckyHorse Racing Commission pulled up itspants and yielded to the Jockey’s Guildyesterday, agreeing not to enforce its emergencyregulation regarding disclosure ofdeals between the jockeys and potentialadvertisers for advertising on their pants.The issue had taken on the need for immediateaction with the Breeders’ Cup imminentat Churchill Downs. The commissionput a bizarre twist on the agreement,saying it was “pleased the Jockey’s Guildhas agreed to this timely and importantsettlement,” when it clearly was a victoryfor the jocks. Terry Meyocks, managerof the Guild, gave a slightly more realisticassessment, saying the agreement “providesa reasonable short-term solution tothe issue.”LLOYD SHELHAMER DIES AT 87Lloyd Shelhamer, Jr., founder of UnitedTote and active in HTA affairs afterforming that company in 1957, has diedin Billings, Montana at 87. He also operatedSunland Park in New Mexico as ahands-on racing manager. His wife Claudia,a talented sculptress and jewelry designer,exhibited and participated in HTAart auctions during those years. HTA extendsits sympathies to her and their sixchildren. A World War II veteran, Lloydis being buried with military honors inYellowstone Valley Memorial Park, aprivate cemetery in Billings.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, October 27, 2010GENTING: WE WERE UNAWAREThe New York Post, in an exclusive storyby Brendon Scott in Albany and CarlCampanile in New York, said today thatthe Malaysian-based Genting company,winner of the 30-year contract to buildand run the Aqueduct racino, had signeda $300,000 a year contract with a majorlobbyist who represented the dishonoredAEG Entertainment Group. The Postmade clear it considers this just more ofthe same, leading the story with the line,“It’s the same smelly Albany horse manure.”The paper says Genting has hiredJohn Cordo, which it describes as “a onetimestaffer to Senate Republicans andone of six lobbyists who represented AqueductEntertainment Group,” and hisbusiness partner Jennifer Cunningham,“who has longstanding ties to AndrewCuomo,” the heir presumptive to the governorshipof New York, as Genting’s newlobbyists. Cunningham also has representedthe powerful New York hospitalworkers’ union. As for Genting, whichwill hold a ceremonial groundbreakingceremony tomorrow at Aqueduct with allthe bigwigs in attendance, it says it spentits $380 million upfront money and allthat follows without knowing that JohnCordo was connected to AEG. New Yorkinspector general Joseph Fisch knew it,saying Cordo was one of lobbyists who“swarmed like a plague of locusts” forAEG in Albany and had urged afellow lobbyist to advise DemocraticSenate leader John Sampson, nowunder pressure, to “shut down” Republicancalls for committee hearings by callingthe Republican requests “hystericalpolitics.” Whatever they were, it appearswe will have more for the next 30 yearsfrom the unsuspecting Genting, whosedue diligence or straightforwardness appearsto be questioned by the Post report.One unidentified Albany lobbyist told thenewspaper, “Cordo was a chief strategistfor AEG. He was in the middle of a sleazyprocess.”A FREE $25,000 WIN BETThe Breeders’ Cup and Louisville’s ABCaffiliate WHAS-11, which will televisethe Cups, have announced a promotionin which fans at Churchill Downs aweek from Friday can enter a promotionin which the winner will receive a free$25,000 win bet on the $5 million CupClassic the next day, in which undefeatedZenyatta will run. Good promotion.SHADES OF WALTER COXAn 80-year-old tradition is being revivedin Goshen, NY. Historic track is bringingback the Halloween parties for kids thatwere sponsored in the 1930s by the immortaltrainer Walter Cox and his wife.Cox remains the only trainer ever to sendout the first four finishers in the Hambletonian,which he did in the 1929 editionwith Walter Dear, Volomite, Sir GuyMac and Miss Woerner.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, October 28, 2010BATTLE BEGINS IN EARNESTThe gloves are off in New York and it’sback to bare knuckles. Jeff Gural gave hisversion of the New York City OTB reorganizationyesterday, a few days after JoeFaraldo had first given his. Now Faraldois back with a long letter to the New Yorklegislature, opening what is certain to bea stormy session in Albany next month,when Gov. David Paterson is calling thelegislature back for a special session toconsider the reorganization plan workedout by his hand-picked choice to run NYCOTB, Greg Rayburn. In an interestingtwist, Jeff Gural’s view as a breederwas challenged by still another opinion,this one from his fellow breeder ThomasGrossman, owner of Blue Chip Farms, thelargest in New York state. Grossman sayshe views the proposed bailout plan “withdismay and serious concern, believing theproposal provides “countless ‘gives’ totrack owners -- including upstate VLT operatorswith virtually no financial interestin the bankruptcy -- but ‘takes’ from thebreeders, horsemen and multitude of relatedagricultural industries and professions.”Faraldo, in his latest letter, saysGural “does not speak for the horsemen,breeders or countless individuals on theracing side of the discussion.”OTHER RECENT NEWS ITEMSThe Ontario Racing Commission deniedWindsor Raceway’s appealto reduce its racing schedule forthe remainder of the year. CommissionChairman Rod Seiling, Vice ChairmanJames Donnelly and Commissioner DavidGorman ruled that Windsor’s requestfor a mid-season date change needed “amore stringent burden of proof.” Windsorcontended that the commission hadnot requested more, but the commissionsaid “the burden is upon the applicant toprepare its case.” The track sought to reduceits live dates from 111 to 86, but thecommission said that “while the racingprogram may be subject to fluctuationin attendance and mutuel handle, the responseis not to divest racing. The obligationis to provide racing.”One of Canada’s most popular all-time pacers,the Grey Gladiator, Admiral’s Express,is dead. The 14-year-old warrior, whosold as a $3,700 yearling and won $1.6million while pacing 14 winning miles in1:50 or faster, was euthanized earlier thismonth after breaking a leg in a pastureaccident.The board of directors of the Racing Medicationand Testing Consortium has recommended,at the urging of its scientificadvisory committee, new withdrawalguidelines for the bronchodilator glycopyrrolate,the muscle relaxant methocarbomaland four anabolic steroids toprovide horsemen and vets with uniformguidelines for therapeutic use “withoutcompromising the integrity of racing competitionor the welfare of our humanand equine athletes.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, October 29, 2010WHO WAS THERE, WHO WASN’TAs writer David Grening wrote in DailyRacing Form, it took only 3,291 days for itto happen, but Aqueduct got its first ceremonialtaste of a racino yesterday whenK. T. Lim, in from Malaysia in his role aschairman of gaming giant Genting, gavehis blessings to his $1.680 million baby.He was not alone, for Gov. David Patersonof New York, who had given his blessingearlier, stood with him and numerousbusiness, union and political leaders andapplied rubber sledge hammers to somerocks to get things underway. Not on hand,however, were three figures who playedprominent roles in earlier proceedingsthat are now immersed in investigation.Democratic Senate leader John Sampson,Senate President Malcolm Smith andAssembly Speaker Sheldon Silver wereno-shows. There in noisy protest werea hundred or so food and other vendorswho make their living at a big weekly fleamarket held on the Aqueduct parking lot.They wanted to know where they wouldbe moved so they could continue to earntheir keep. Their protests were drownedout by the oratory of the speakers, whocelebrated 2,100 jobs promised by Gentingin constructing the project, expected toopen its first slots by next Memorial Day.Gov. Paterson led that parade, sayingwith yesterday’s groundbreaking “NewYork continues its confident march outof recession and back to prosperityand growth.”He linked the march to revitalization ofracing and as a powerful generator ofstate revenue, money that he said wouldgo toward education. Genting ChairmanLim called yesterday “one of the proudestdays in the history of the Genting organization,”and he promised to deliver“a world class tourism and entertainmentfacility that all New Yorkers canbe proud of.” New York Racing Associationchairman C. Steven Duncker calledGenting “a terrific partner” and saidNYRA “looked forward to working withthem for many years to come.” They hadbetter. Genting’s contract is for 30 years,and Duncker says their Resorts WorldNew York Casino “will help New Yorkracing reach new heights for horsemen,breeders and fans.”HAPPINESS IN IOWA, GEORGIALong-term happiness for Scientific Gamesin Georgia yesterday, as the Iowa LotteryBoard voted 5-0 to give Scientific a 10-year, $50 million contract -- the longestin the lottery’s 25-year history -- to installand run a new lottery computer system at2,500 locations around the state. It willgo online in July, and will enable the IowaLottery to sell Powerball tickets at placeswhere only scratch-offs are availablenow. The CEO of the lottery, Terry Rich,says the new system also will enable thestate to provide faster service to its customers.Scientific won the contract overtwo competitors.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, Nov. 1, 2010YOU CLOSE IT, I’LL BUY ITThat was the threat and counter-threat asvoters in Anne Arundel county in Marylandprepared to head to the ballot boxestomorrow to decide the fate of a casino atthe big Arundel Mills mall. After a yearof indecision and inaction by local governmentalofficials, the matter went toan earlier vote and the Baltimore-basedCordish Companies wound up with a licenseto build at the Mall. That was beforea nasty fight, with millions being spent onboth sides, ensued between Cordish andthe Maryland Jockey Club, which wantsa racino at its Laurel Race Course. LastFriday morning, Maryland Jockey Clubpresident Tom Chuckas, former head ofRosecroft Raceway, announced that ifCordish won tomorrow it would mean“devastation and destruction” for Marylandthoroughbred racing. The state’sharness racing has already been devastatedand destroyed. Chuckas said Bowiewould close, Pimlico would race only 40days a year, and Laurel would be convertedto an OTB, with no live racing. DavidCordish, speaking for his company, saidif that happens Maryland will seize theproperties under eminent domain andCordish will step in to buy and operatethem, along with the Anne Arundel Mallcasino. Tomorrow’s vote is expected to beclose. Penn National Gaming, allied withLaurel, already owns a Maryland casino,and present state law providesfor only one slots license.HERE’S THE LOCAL DIRTLaws are not necessarily made to be evaded,but they can be, easily, with legislativeor administrative accord. That’s thecase in southern California, where racingcommission rules are about to be alteredto enable Santa Anita to avoid the statemandate to race on a synthetic track.First an announcement was made that theStronach-owned operation would scourthe west for suitable sand and gravel torebuild a new dirt track. Now it turnsout they have found it in Corona, California,and will pay more than $3 million forit and the labor to install it. Work alreadyis underway and is expected to be done bymonth’s end, with training scheduled toresume Dec. 6 for the track’s winter meetopening Dec. 26. Global positioning willbe used to ensure uniformity.ONE ACE BACK UP, ONE DOWNOne of harness racing’s greatest driversis back on the U.S. scene. Doug Brown,a Hall of Famer north of the border, hasset up winter headquarters at PompanoPark in Florida and recorded his first victorythere after an absence of 14 years.Brown, returning after severe injury in adriving accident, is planning to move toFlorida and drive there full-time.In the harness racing hotbed of AtlanticCanada, meanwhile, one of the Maritimes’top drivers, Mike Stevenson, hasbeen suspended for five years afterfailing a drug test.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, November 2, 2010WE’RE NOT FOR SALE - LAURELThat was Tom Chuckas’ message thismorning, as the president of the MarylandJockey Club responded to DavidCordish’s vow to buy Pimlico and Laurelif Chuckas made good on his promiseto close the tracks if they lost today’sAnne Arundel casino election. “TheMaryland Jockey Club facilities are notfor sale,” Chuckas said. “As I stated Fridaymorning, if Question A is approved(which would give Cordish the go-aheadto build out the license he already has forthe Arundel Mills Mall) the Bowie TrainingCenter will close, Laurel Park willcease racing activities with live racing inMaryland reduced to 40 days at PimlicoRace Course. These are the facts. LaurelPark will be developed, not sold, accordingto an existing development plan whichincludes mixed use commercial and residential.David Cordish knows that. Thisis just another in a long list of his misrepresentations.”Cordish told the press thatif that happened, he would buy the MJCtracks when the state took them over byeminent domain proceedings.THE BEAUTIFUL AMERICANThat was the scene in Melbourne, Australia,yesterday, as the American-bred,French-owned Americain won the $6 millionMelbourne Cup at Flemington RaceCourse. Sold to French interests last Februaryfor $225,000, he became thefirst French-owned horse to winthe Cup in its 150 years of racing.Trained by Alain de Royer-Dupre to hisfifth straight victory, Americain surgedfrom third in the final furlong to rundown favored So You Think, who faded tothird behind the winner and Maluckydayunder a patient ride by Gerald Mosse.A 12-1 longshot in the 23-horse, 2-mileclassic, Americain was a hugely popularwinner with the Cup crowd of more than110,000.THE MARES WHO NEVER WEREA U.S. bankruptcy court in Lexington,KY, has ruled that it is advisable to havemares on hand when you enter into complicatedlease arrangements for them.Gastar Exploration, a publicly tradedcompany, apparently came up shorton having mares to fulfil what has beenruled a fraudulent leasing program, andhas agreed to a settlement of $21.15 millionto settle that aspect of very involvedlitigation. The total liability appears tobe more than $500 million, with leasesfor thoroughbred mares backed by $40million in purchases of well-bred individualsat the Keeneland auction. Thescheme exploded, or imploded, when theIRS ruled that writeoffs promised investorswho were told they could claim millionsin tax writeoffs for leasing the mareswere fraudulent. ClassicStar farm operatorsDavid Plummer and his son Spencerand two other individuals, Terry Greenand John Parrott, earlier pleaded guiltyto $200 million in tax fraud and eachface up to 5 years in federal prison.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, November 3, 2010CORDISH WINS CASINO VOTEIn a battle of giants in Maryland, the Baltimore-basedCordish Companies emergeda clear winner, as voters in Anne ArundelCounty voted 56 to 44 in favor of 4,750slots at the giant Anne Arundel shoppingmall over locating them at Laurel RaceCourse. It remains to be seen if MJC’sTom Chuckas and his associates carry outtheir threat to close down live racing atLaurel, convert it to an OTB facility, shutdown the Bowie training center and holdonly a 40-day “Preakness meeting” atPimlico. Chuckas said merely, “The citizenshave spoken,” adding that “immediatejobs and revenue took precedence.”The Washington Post, commenting on thevote, said, “Maryland’s horse-racing industry,after decades of pushing legislatorsto allow slot machines, warned theresult could decimate it.”Cordish presumably will move aheadquickly on building its $1 billion slots andentertainment complex at Arundel Mills.Gov. Martin O’Malley defeated RobertEhrlich’s bid to return to power, as hewon reelection 56% to 44%.In Maine, Biddeford voters approved easily,by a 59% majority, a bid to welcomeScarborough Downs to move its harnesstrack and presumably slot machines totheir town. The measure carried 4,636in favor to 3,244 against, A changein state law still is needed for thetrack to become Biddeford Downs.IN IOWA YES, IN OREGON NOHTA member Prairie Meadows Racetrackand Casino in Altoona, Iowa, couldbreathe far more easily today after votersin Polk and 16 other Iowa counties votedto extend casino gambling for eight moreyears. The vote was needed under Iowa’sstate law requiring periodic reaffirmation.Oregon, however, did not approve a proposalthat would have established the onlyprivately-held casino in the state. Oppositionfrom Indian tribes and the Oregonstate lottery carried the day.In Pennsylvania, slot revenue showed anotherhealthy jump. The Sands Casino inthe former Bethlehem steel plant showeda year-to-year increase of 11% in slotsplay, handling $21.7 million in October.The number of slot machines in the staterose to nearly 27,000 in the last year.AUSSIE STAR BRINGS $60 MILIreland’s powerful Coolmore Stud reportedlyis paying Malaysian multimillionaireDato Tan Chin Nam $60 millionfor his beaten Melbourne Cup favoriteSo You Think. The runner, winner of 8of 12 races, finished third in the two-mileCup classic, won by the exported Americanrunner Americain. So You Think haswon $5.7 million and likely will stand asan Irish and Australian stallion shuttlingbetween Coolmore’s Ballydoyle studand stud duty Down Under.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, November 4, 2010DARK DAYS IN MD, MICHIGANIt was a dark day for horse racing inMaryland and Michigan today, as tracksin both states announced they were batteningthe hatches for the winter, and perhapslonger.In Maryland, the Maryland Jockey Clubannounced it was doing what it promisedit would do if it lost its bid to win a racinofor its Laurel Park operation. PresidentTom Chuckas said Anne Arundel Countyvoters sealed the MJC’s fate Tuesdaywhen they voted to approve the CordishCompanies’ bid to build a casino at themall just 10 miles from the Jockey Club’sLaurel Park operation, and that Laurelwould be closed for live racing and usedfor off-track betting only. The MJC alsoplans to close its Bowie training center andrace only an abbreviated 40-day “Preaknessmeeting” at Pimlico, built aroundthe track’s Triple Crown event. RichardHoffberger, president of the MarylandThoroughbred Horsemen’s Association,called the decision “the demise” of racingin the state, saying horsemen could notsurvive operating only 40 days a year. Althoughracing will receive millions fromthe Anne Arundel casino, Chuckas saidit would not be enough to fund purses or“acquire a younger demographic.” TheWashington Post’s famed racing writerAndrew Beyer wrote this morning thatthe development, “once unimaginable,”would change Maryland racingforever.In Michigan, meanwhile, Pinnacle RaceCourse, which opened only two yearsago, on July 18, 2008, announced it wasclosing its simulcast operation and shuttingthe plant down for the winter, withresumption questionable. Pinnacle wasawarded only two days of live racing aweek this year -- Saturdays and Sundays-- by the Michigan Gaming ControlBoard, but ended the live meeting Oct.31 after 42 days. It was awarded 84 daysof live racing for next year, but GeneralManager Mike Mackey told the DetroitFree Press “I don’t know if I’ll be here.”He said he might close his office “for thetime being.” Twenty or so people operatingsimulcasting at the track have beenlaid off, and Mackey said, “There was notenough business to sustain the simulcastoperation.”CAR DEALERS AFTER DEL MARTwo prominent Tucson auto dealers andthoroughbred horse owners, along withwest coast McDonald’s magnate andowner Mike Pegram and others, are reportedlyinterested in buying the Del Marfairgrounds and track north of San Diego.The two Tucsonans are Karl Watsonand Paul Weitman, and Watson called thereport “far out and premature.”FANNING IS QUEEN AGAINMoira Fanning, publicity and operationsdirector of the Hambletonian Society, hasbeen named U.S. Harness Writer ofthe year for the second time.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, November 5, 2010CHRISTIE SHAKES UP A.C.New Jersey’s pepper shaker governor,Chris Christie, was at it again yesterday,as he revealed he was transferring thepowers of the state Casino Control Commission,which has ruled the casinos for32 years since their introduction in 1978,to the Division of Gaming Enforcement.The DGE operates under the executivebranch, giving the governor clearer controlof Atlantic City casino operation.The proposed new legislation will go thrucommittee review in both houses of thelegislature, and will not take effect for sixmonths after passage. One major effect ofthe change will be to remove casino floorsupervision 24 hours a day, and requireonly registration rather than licensing ofnon-key personnel. The Control Commissioncurrently has 269 employees, whichincludes 139 gaming inspectors, of whom60 or so are eligible for retirement. Thechairwoman of the Casino Control Commissionwas vacationing in Austria whenthe 201-page document was announcedlast week, but her chief of staff, DavidScanlan, said, “We are working with thegovernor’s office and the legislature tocraft a regulatory reform proposal to preserveefficiencies and savings, while alsomaintaining the strict integrity of the currentsystem.” Christie’s proposal dealsonly with Atlantic City and its casinos,but the New Jersey racing industrymight brace itself for further announcementsfrom Trenton.A TEMPORARY CASINO IN MD?Baltimore’s Cordish company, empoweredto build its billion dollar casino andentertainment center at Arundel Mills inlast Tuesday’s election, says it may opena temporary slots facility while the mainproject is under construction. AlthoughMaryland Jockey Club President TomChuckas says his company’s propertiesand tracks are not for sale, David Cordishrepeated his offer to buy the tracks, saying,“We’re ready, willing and able to doit.” Chuckas expressed skepticism, saying,“If Laurel loses anywhere from $4to $7 million as a racetrack, why would abusinessman take that on? It’s questionableat best if anyone could make it a go.The other issue is with the gaming facility10 miles up the road, there’s no racetrackin the country that’s been able to competeand survive with that.”H’BURG, LUCHENTO, MORRILLThe giant annual four-day Harrisburgstandardbred auction gets underwayMonday in Pennsylvania....Tom Luchentohas been re-elected president of theStandardbred Breeders and Owners ofNew Jersey....Harnessracing.com reportsthat Kentucky has granted a continuanceto attorney Howard Taylor, representingred-hot driver Jim Morrill, suspended indefinitelyfor allegedly driving in a raceat the Red Mile while drunk. Ontariohas honored the suspension, and Pennsylvaniadid too after Morrill had wonfour races at Pocono Downs.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, Nov. 8, 2010HARRISBURG IS UNDERWAYThe marathon four-day StandardbredHorse Sale at the Pennsylvania FarmShow complex in Harrisburg, PA, gotunderway this morning, and will roll onfor the next three days with 1,150 yearlingpacers and trotters going under thehammer. The Kentucky Select Sale, hammereddown last month, saw 791 colts,fillies and geldings sell, with the averageprice dropping 11%. Breeders and consignorsat Harrisburg are hoping for arepeat of last year’s auction, when pricesrose 6.6%. The first 10 horses sold thismorning averaged $32,950. After 20 headthe average had risen to $46,775, with thehighest priced yearling to that point a DonatoHanover trotting colt from HabitsLady that brought $150,000 on a bid fromJimmy Takter, sold by Peninsula Farmsas agent.An interesting feature at the sale is a 2011calendar featuring the exceptional equinephotography of David Landry and ClausAndersen, the star photographers of theCanadian Sportsman. A new feature thisyear, they sell for $20 in either U.S. or Canadiancurrency, at the magazine’s standat Harrisburg or from the magazine atBox 129 Straffordville, Ontario N0J 1Y0.MACAU SETS FAST PACECasino gambling in Macau, up 67 thisyear, is four times higher than LasVegas, with one, SJM, handlingmore than the entire Vegas strip.Another, Sands China, has seen a 329%rise in profitability in the first six monthsof this year. Britain’s Telegraph sayswith Chinese inflation due to hit 4% thismonth and with bank savings rates only2.5%, more and more high rollers arechoosing to gamble their money ratherthan watch the value of their savings beeaten away. The paper says the negativereturns on Chinese bank savings havehelped create huge bubbles in property,tea, fine wine and jade. In an interestingobservation not well known in NorthAmerica, the Telegraph says that researchshows visitors to Macau from mainlandChina come to gamble to win -- earningmoney is very important to them -- andare serious about it. That is unlike manyplayers from Hong Kong or Macau itself,who gamble more for leisure or entertainment,according to Desmond Lam, a professorat the University of Macau.TYRANNY OF FALSE CHOICESThat’s what Gil Medina, former secretaryof commerce in New Jersey, calls abattle between casinos in south Jerseyand the Meadowlands in the north. Hesays a consensus can be found, and thatthe state must find it. Sounding a note ofoptimism, he says “in spite of the surfaceconflicts that the commission report andlegislative summits may have engendered,I am confident that there is a path forwardthat will substantially address most of theconcerns of most shareholders, andthe state will take that path.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, Nov. 9, 2010GUIDA BACK AS U.S. OWNERLou Guida, one of the most importantand dynamic owners in the Americanharness racing industry before he movedhis stable operation to Italy, returned toU.S. ownership at the Standardbred yearlingHorse Sale at Harrisburg, PA yesterday.Guida bought 100% of number 65,Lancelot Nourrir, a Donato Hanover coltfrom the million dollar winner and 1:53trotter Windylane Hanover, selling in thePeninsula Farms agent consignment for$125,000;50% of number 128, Yankee Bluegenes,a Muscles Yankee colt from the Sir Taurushalf-million dollar winner VernonBlue Chip, sold by Perretti Farms, for$205,000;and 25% of number 149, Watermark Hanover,a Donato Hanover colt from theSupergill mare Water Star, selling in theHanover Shoe Farm consignment, for$140,000.Trainer Greg Peck, who will conditionthe horses, bought them as agent. Tomand Louis Pontone, part owners of 2009Horse of the Year Muscle Hill, and ArthurPronti and Patricia Bolte, ownersof the Four Friends Stable, will partnerwith Guida and Peck in ownership of thehorses. Asked about the selections, Pecktold HTA Executive Newsletter, “No onespends more time studying standardbredpedigrees than Lou Guida. He works onthem four or five hours a day, andknows them far better than most.“As for me, I’m a big believer in videos,and much of my bidding reflects what Isee in them. Not everyone shares thatview, but the game is statistically improbableat best, and studying the videos increasesracing probability and takes someof the speculation out of the game.”FOUR RACING BILLS IN NJThe New Jersey Senate’s State Government,Wagering, Tourism and HistoricPreservation Committee has approvedfour bills intended to keep the state competitivewith competitors. One, introducedby senator and former governor RichardCodey, would allow exchange wagering.Another would make changes in the offtrackand account wagering act; a third,also introduced by Codey, would facilitatesingle pool betting; and the fourth wouldlower the minimum number of live datesat the Meadowlands and Freehold to 100each.BOB ANDERSON DEAD AT 64Bob Anderson, one of Canada’s mostdistinguished thoroughbred and harnesshorse owners and a director of theHambletonian Society, has died of a heartattack at 64. Chairman David S. Willmotof Woodbine Entertainment, a closepersonal friend, said Anderson’s passionfor horseracing “radiated from his soul.”HTA extends its sympathies.KY AG OKS CAR SEARCHESKentucky’s attorney general has approvedvehicle searches at tracks.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, November 10, 2010CONFLICT ON WIDE FRONTSAgreement to disagree, big time, hasbroken out east and west in racing. InMaryland, after the Maryland JockeyClub administrative management said itwould close down Laurel Race Course,major shareholder Frank Stronach saidthe track will race its usual meeting nextyear. Stronach’s announcement broughtsarcastic editorial criticism from the BaltimoreSun, which began with, “Let’shope that by now Maryland horsemenhave learned not to get their hopes upwhen Frank Stronach makes big promises.”Penn National Racing, a partnerin the MJC, says it was not consulted onStronach’s announcement and does notagree with it. The Sun said of this, “PennNational has equal say over big decisionslike this one, so it seems reports of Laurel’sresurrection may have been greatly exaggerated.”Penn National told the paper itlooks forward to a meeting with Stronach“as soon as possible,” and Stronach saidhe plans to visit Maryland soon. PennNational, which unsuccessfully spent millionsfighting the Cordish Companies’ bidto build a huge entertainment complex 10miles from Laurel, now says it will continueto seek state approval to install slots atLaurel and other Maryland tracks, whichwould require a constitutional amendment.Meanwhile, Halsey Minor, the westcoast founder of CNet, reentered thescene, offering $300 million for MIDevelopments’ racing holdings.In the midwest, meanwhile, disagreementbetween new Illinois Governor Pat Quinnand the legislature in Springfield. Quinnwants to raise the individual income taxrate to 4% to help offset a projected $15billion budget deficit. The legislature prefersto do it by expanding gambling, includingallowing slots at six state tracks.Quinn will need 60 votes in the Senate topass an income tax hike. The last timesuch a proposal was considered, the movedrew only 47. Quinn was quoted in theChicagoist as saying, “We have to dealwith hard realities. This is the truth. Thetruth won on Tuesday, and I intend tokeep telling the truth to the legislature.”OTBS WON’T REACH: CODEYSenator Richard Codey told New Jersey’sAsbury Park Press that the Christie-Hansonplan to help racing by adding a dozenOTBs won’t solve the problem, and thatslots at the Meadowlands and Freeholdare the only thing that will. He said NewJerseyans “will flock to Aqueduct” whenits racino slots open next spring.MIGHTY M GETS $35 MILLIONEmpire Resorts, owner of New York’sMonticello Raceway, is getting a $35 millionshort term bridge loan from its largestshareholder, Kien Huat Realty III Ltd.of Malaysia. The money will be used torepay 5.5% convertible senior notes andprovide working capital and other operationalexpenses.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, November 11, 2010PROGRESS & YELLOW LIGHTSPurdue University economist JonathonFurdek says the slots subsidies in Indianahave produced “our own industry of developinghorses and horsemen, and thesenumbers clearly indicate that investmentis paying huge dividends.” Veterinarianand former state senator Bob Jackmanagrees, saying, “The numbers clearly indicatethat the investment is paying hugedividends.” No argument, with racingstables and breeders gravitating towardHoosierland and purses reaching elite statusin the state. The governor of Indiana,Mitch Daniels, has tossed a word of cautioninto the mix, saying the next 2-year budgetwill spare education by avoiding tax hikesand school cuts, meaning, according toIndianapolis TV station wishtv.com, thateveryone else who depends on state fundingshould be nervous. The news servicesays the horse racing industry “leads thepack” preparing for the 2011 General Assemblysession that is seven weeks away,hoping to protect its $60 million industrysubsidies from state riverboat revenue.State Senator Jim Merritt warns that “everyline in the budget will have scrutiny,”and says “state lawmakers will be underpressure to make cuts, and priorities thatcrossed the finish line in the past may benon-starters next year. Everyone that is apart of the budget pie has reason for concern.”Asked if he is worried about thesubsidy, vet Jackman says yes.IN PA, SLOTS “THE LIFELINE”In Pennsylvania, where purses havedoubled with help from slots since theywere introduced, the state’s thoroughbredhorsemen’s association calls them “alifeline,” and says there would be no liveracing in the state without them. Thatassessment was borne out by the PennsylvaniaGaming Control Board, which saysrace betting itself is down 25% in the lastfour years. Of $236 million generated forhorse racing last year thru Pennsylvania’sHorse Development Fund, 80% goesby law to racing purses, 16% to breeding,and 4% for health care benefits and pensionplans. Purses, which totaled $62 millionin 2006, were $134 million last year,with the number of races up from 7,958four years ago to 11,539 last year.The Gaming Control Board also releasedfigures showing a positive increase in slotrevenue on race days, up 8.1% on averagedaily play on days when racing alsowas scheduled. Parx Racing, formerlyPhiladelphia Park, the state’s highestrevenue producer, averaged $1,006,178 aday on slots on racing days, $957,808 ondark days. Penn National slot play averaged$715,748 on racing days, $567,159on dark days. But for big numbers, theSands, whose Venetian and Palazzo LasVegas operations delivered $276.2 millioncombined in the second quarter, saw itsMacau operation take in $1.04 billion.It now will be Sands International.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, November 12, 2010STRONACH SAGA MOVES ONThe chapters keep unfolding in the ongoingsaga of Frank Stronach, as the Canadianfirebrand expands his titles from chiefexecutive officer of MI Developments tochairman as well. His new post was announcedwith the departure of DennisMills from that job, although Mills willremain as vice chairman and a director.With the announcement came news thatMID’s third quarter net income was $8.1million, down from $35 million a year ago.The plunge reflected a $23.2 million lossfrom racing related operations, offset bynet income of $31.3 million in real estatetransactions.Third quarter earnings are not in yetfrom Macau, but the unquestioned leaderthere is the Las Vegas Sands, soon to beSands International or Sands Resorts International.Its figures have helped spurMacau’s growth toward an expected $22billion for this year, compared to the entireU.S. gaming revenue of $15 billionlast year. One company alone -- MelcoCrown Entertainment, a NASDAQ enterprise,could reach $2.8 billion, up $600million from last year on sales increasesof 165.8% at its three Macau facilities accordingto seekingalpha.com. While AtlanticCity revenues are down 8.7% from lastyear, MGM’s Grand Macau operation isup by $40 million from an $8 million 2009loss. China will open a new borderentry in February allowing 500,000Macau visitors a day.Nine of Atlantic City’s 11 casinos showeddeclines in revenues last month, with totalrevenues for 2010 to date down 12.3%from a year ago. Trump EntertainmentResorts, which suffered a 17.8% revenuedrop last month from a year ago, got anew CEO last week with Robert Griffin,former president and CEO of MTRGaming Group, owner of Scioto Downs,taking over from Mark Juliano. Trumpannounced it had laid off 50 managersand that other job holders would followin coming weeks. Gambling revenue wasup 2.8% on the Las Vegas strip in September,the first time in three years thatNevada casinos have shown two straightincreases in monthly revenue.Not everyone is chasing gambling licenses,however. Maryland has failed for a secondtime to attract any takers on a slots siteavailable at Rocky Gap in western Maryland,despite boosting revenue retentionthere to 35.5% while four other sites inthe state get only 33%. A downtown Baltimoresite with 3,750 slots is likely to berebid in the near future, according to theWashington Post.NEW SULKY ON THE SCENEGaylord Boutilier, a Maine inventor withharness racing and computer betting experiencehas obtained a U.S. patent ona new sulky he says will provide greatertracking by the horse without side-tosidesway.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, November 15, 2010DANGER AHEAD ON OHIO PLANThe governor-elect of Ohio, John Kasich,is throwing a monkey wrench in plansfor slots at the state’s racetracks. Kasichsays he has “mixed emotions” about theidea and wants time to study the proposalas it stands, in view of the approval offour Las Vegas style casinos in Cleveland,Cincinnati, Columbus and Toledo. Heoffered no estimate of how long it mighttake for him to make up his mind, but itcould be critical for owners of Buckeyetracks. Opponents, meanwhile, continuetheir pressure, saying the machines areunconstitutional.SPECIAL SESSION IN ILLINOISLegislators return to the Illinois statecapital at Springfield tomorrow for ascheduled six-day special session that willinclude discussion and possible action ona bill that would allow slots a the state’sracetracks. There is increasing legislativesupport for the idea, but governor PatQuinn is not enthusiastic. A spokesmansaid Quinn would work with the GeneralAssembly to examine all revenue raisingactions, but “he is not interested in makingIllinois the Las Vegas of the midwest.”A spokeswoman, Kelly Kraft, did not saythat Quinn would veto slots at tracks ifa bill reached his desk. The principalauthor of the slots bill being considered,state senator Terry Link, a WaukeganDemocrat, said “the mood isthere to pass a big bill.”There is less legislative enthusiasm for anincrease in state income taxes. Sixty votesnormally are needed to pass a bill, but 71are require during a veto session such asthe one this week. House members weretold, however, that the 60-vote requirementwould return for an eight-day sessionin early January to consider previouslyunscheduled bills. Senator Linksaid, “We have not reached the gamblingsaturation point by any means.”KENTUCKY SLOTS ODDS LONGElection results in Kentucky have lengthenedthe odds of a slots-at-tracks bill there.Although Republicans gained votes, horseindustry supporters still hope they canmuster a vote on a constitutional amendmentthat would clear the way for theelectorate to overcome opposition. Thepresident of the Senate, David Williams,a Republican, gave some hope when hesaid the Senate might consider a bill if theDemocratic-controlled House passed one.He did not say the Senate would pass one,but he indicated it would depend largelyon what such a proposal provided.CHANCES DIM IN MASS, TOORe-elected Democratic governor DevalPatrick said on his return to office that acasinos bill “will be up to the legislature,”and House speaker Robert DeLeo’s ardorfor a renewed battle seems diminished.He says he will prioritize health careahead of gambling legislation.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, November 16, 2010DEATH BY DECREE IN NJThe governor of New Jersey, Chris Christie,who told harness racing horsemen inthe state as a campaigner that he understoodtheir problems and would look afterthem, allowed his chief lieutenant on racingmatters, Jon Hanson, to issue a recommendationof death to the sport yesterdayby issuing a supplemental report recommendingclosure of the Meadowlands.Under the proposal, the track wouldcease live racing, become an off-track bettingfacility, and move its racing an hoursouth for an abbreviated 30-day meetingat Monmouth Park next fall, replacing141 days of racing scheduled for theMeadowlands. A six-day meeting at theMeadowlands in August, built around the$1.5 million Hambletonian, would be heldat the track.Reaction was quick from the sport, whichhad been led to believe negotiations werecontinuing to resolve the problem moreconstructively. Horsemen were crushedand dismayed at the possibility of havingto move operations and families out-ofstate.Andrew Perretti, son of Bill Perretti,owner of Perretti fFarms in CreamRidge, home of two of the leading standardbredstallions in the world -- pacerRocknroll Hanover and trotter MusclesYankee -- said they were consideringmoving the huge operation out ofNew Jersey to a more stable andfriendly location.IN OTHER NEWS.....The Meadowlands announced registrationwas open for its National HarnessHandicapping Championship qualifier onSaturday, Dec. 4. A prize pool estimatedat $12,000, depending on actual numberof entries, will be distributed to the top10 players, who will keep all pari-mutuelwinnings. Total cost to enter is $180,$100 non-refundable and the remainingrequired for betting card purchases. Theformat requires players to bet at least 8Meadowlands races, with a $10 minimumand $100 maximum bet per race. Mail inregistrations are due Friday, Dec. 3, walkupentries will be accepted between 5 and6 p.m. on play day Saturday Dec. 4. at theMeadowlands....The late George Steinbrennercould be headed for baseball’sHall of Fame. He is on a 12-man ballot tobe voted on by a 16-man Hall of Fame veteranscommittee, with at least 12 of the 16ballots needed for election. Other nomineesinclude Vida Blue, Dave Conception,Steve Garvey, Pat Gillick, Ron Guidry,Tommy John, Billy Martin, Marvin Miller,Al Oliver, Ted Simmons, and RustyStaub....Cantor Gaming has been namedto build and operate the sports book atthe $3.9 billion Cosmopolitan, to open inLas Vegas early next year. Cantor alsowon contracts for sports books at the MResort, Tropicana and Hard Rock CantorPresident and CEO Lee Amaitis sayshe hopes to replicate Cantor’s financialtechnology successes.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, November 17, 2010HANSON BID “UNACCEPTABLE”Jon Hanson’s latest proposal for harnessracing to be held only six days duringHambletonian week at the Meadowlandsand another 30 at Monmouth Park in2011 has been called “unacceptable” bythe president of the harness horsemen ofNew Jersey. Tom Luchento, respondingto a supplemental recommendation byHanson to his earlier commission report,issued a release of his own, saying, “Suggestingthat we can race 30 days at MonmouthPark is unacceptable. We raced141 days this year. You cannot expect ourdrivers, trainers and breeding industry tosurvive on 30 days of racing. You cannotask us to give up the Meadowlands, thepremier harness track in North America.”Luchento said harness racing was “beingblind sided,” adding that “Jon Hanson isa real estate developer which seems to behis only concern, developing the propertyon which the Meadowlands sits. The planhe issued in July did not pass muster withthe legislators and the public. The peopleof New Jersey support racing and gaming.Instead of finding ways to cut us out,the state should be making it more attractivefor us to stay. Some of our majorbreeding farms are already making plansto move their stallions to states that havepurse money fueled by slots.” Luchentolaid the blame for money losses at theSports Complex on ill-advised ordersreceived from “a succession of governors”that were money losers.He said his SBOANJ has been workingwith legislators to put together a packageof bills that will make it possible for racingto be self-supporting by 2013, and accusedthe Hanson report of ignoring theplans and the efforts of New Jersey legislatorsin both bodies who support them.He said “failing to do so will open a can ofworms including legal action.”NY TO OK CATSKILL CASINO?The New York Times and other newssources reported this morning that Gov.David Paterson plans to approve an Indian-ownedcasino development projectin the Catskill town of Thompson in thenear future. The pending state okay issaid to be with the Stockbridge-Munsees,a Mohican tribe with roots in New Yorkstate that now is based in Wisconsin. Ithas been thought that negotiations wouldfavor the Shinnecock tribe on Long Island,recently granted long-sought federalrecognition. Surprise was registeredbecause of criticism the state had receivedfor its secret dealings in the ultimatelyrejected award of the Aqueduct racinocontract to the Aqueduct EntertainmentGroup. Some officials said in view of thatrepudiation it was expected that the Patersonregime, nearing the end of its run inAlbany, would have avoided a repetitionand opted for transparency. Table games,meanwhile, have been stalled at SaratogaRaceway, and will be in coming months atYonkers Raceway, Vernon and TiogaDowns, and Monticello Raceway.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, Nov. 18, 2010AND 30 YEARS STILL TO GOThe first slot machines still are some sixmonths away at Aqueduct, but GentingNew York, winner of a 30-year contractto build and operate the huge racino atAqueduct Race Course, already is deeplyunhappy. Feeling, along with others inthe business, that they were blindsided byNew York governor David Paterson, whoannounced plans to award a Catskill casinoto a former New York tribe long sentpacking to Wisconsin, Genting fired off astrongly worded objection.The protest, from Genting’s New Yorkspokesman Stefan Friedman, read, “Thisdecision, and the process that accompaniedit, significantly impairs our abilityto deliver tax revenue to the state and itgreatly reduces our ability to move forwardwith a planned $1.3 billion dollarinvestment to build a world class resort.”Similar objections came from New Yorkershigh and low. Assembly SpeakerSheldon Silver, a homeowner in affectedSullivan County in the Catskills, said hedoubted the Stockbridge-Munsee bandof Mohican Indians could obtain a necessaryfederal waiver. That remained to beseen, for federally powerful U.S. SenatorCharles Schumer was to visit MonticelloMonday with Paterson to announce a compactwith the Mohicans. Intertribal displeasurealready was evident, as theSeneca Nation in New York calledthe deal “an affront” to them.Although Paterson said he wanted “allparties to be comfortable with the decisions,”that seemed a forlorn hope asthe Oneidas of central New York alsoexpressed annoyance. HTA members atSaratoga, Vernon and Tioga Downs, andperhaps Mohegan Sun at Pocono, despitethe Mohican connection, have not beenheard from but presumably might haveproblems with the proximity issue to theirown racino operations. The New YorkPost editorially battered the governor’saction, saying, “This deal needs sunshine.A lot of it,” and headlining the editorial,“No dice, Dave.” The piece woundup saying, “The real problem here is theunderhanded way in which this deal wasdone -- which is to say, with an utter disregardfor anything remotely resemblingtransparency. Is that because -- like thesmarmy AEG deal before it -- this schemecan’t survive close scrutiny? Maybe itcan. What’s clear as a bell is that DavidPaterson’s word on such matters simplycan’t be trusted. And he has only himselfto blame.” Paterson will be gone after sixweeks, with Andrew Cuomo taking overas governor with the favorable imageryof his father to help boost public confidence.BIPARTISAN BLASTS IN NJCries of protest from both sides of the politicalaisle -- mostly regional --have eruptedat the “supplemental” Jon Hanson-ChrisChristie plan to race only six days in2011 at the Meadowlands.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, November 22, 2010PATERSON, TRIBE SIGN DEALNew York Governor David Paterson andthe Stockbridge-Munsee community bandof Mohican Indians signed off today on acasino award that hopefully will end thecommunity’s land claim to 23,000 acres inMadison County, NY. Under the agreement,which faces legal challenges, theIndians would drop their legal claims tothe acreage in return for 330 acres in SullivanCounty and state approval to builda casino on that land. The governor’saction this morning in the small town ofWampsville brought an immediate strongresponse from the Oneida Nation in NewYork. It read, “We, and presumably everyother Indian nation, were surprisedto learn that the state of New York wouldinvite an out-of-state tribe into the state toconduct gaming, which means that all ofthe profits will be drained from New Yorkand returned to their home in Wisconsin.It is a backwards economic policy and itis yet another lost opportunity to use theopportunities in the Catskills for the stateto resolve its disputes with New Yorktribes. The idea that the state was settlinga Stockbridge land claim is laughable, asthe claim relates to Oneida Nation homelandsand nobody honestly believes theStockbridge ever had a legitimate claimhere.” The deal would end the ongoinglawsuit in Madison County, but triggeredimmediate opposition from AssemblySpeaker Sheldon Silver, who has ahome in Sullivan County.TLC FOR AC CASINOS TODAYNew Jersey legislators met today to givetheir blessings to their governor’s grandplans for Atlantic City. The Senate was tovote on Chris Christie’s Atlantic City TourismDistrict, the junta he has proposed toadminister the 11 casinos in the beach resort,which is not favorably looked uponby the present city administration.The besieged New Jersey Sports and ExpositionAuthority, which runs the Meadowlands,announced a $123 million increasein total pari-mutuel handle thisyear at Monmouth Park, operating underthe sharp compression of its season, whichresulted, the NJSEA said, in an averagedaily handle of $3,842,848 for its 22-daylate summer/early fall meet as opposed toa daily average of $1,342,884 for the comparable45-day meet held at the Meadowlandslast year. Besides the 213% increasein daily handle, the condensed meeting resultedin a 79% boost in ontrack betting,a 47% increase in attendance, and a 25%increase in field size. Tom LaMarra, writingin The Blood Horse, noted that Gov.Christie said the Monmouth meeting willlose about $6 million this year, but thatChristie “offered no specifics on how thefigure was derived.”On a sad note, Steve Schwartz, the formerpublicity chief of both Monmouth Parkand the Meadowlands and the New YorkRacing Association as well, and presidentof the Turf Publicists of Americafrom 1988 to 1990, died at 64.

HARNESS TRACKS OF AMERICA“The Svengali-like hold that Jon F. Hanson, thestate’s gaming czar, seems to have over Gov.Chris Christie has to be broken. Last weekHanson, a man with no particular experience ingaming, came up with more disastrous ideas todestroy horse racing once and for all.“His latest proposal calls for harness racingat the Meadowlands in East Rutherford to bemoved to Monmouth Park and for a sharp decreasein the number of racing days --from 141to 36 for harness racing and from 141 to 59 forthoroughbred racing.“The governor should reject these latest proposals.If he inexplicably supports them, as he hasHanson’s plans to ‘save’ the casinos by takingcontrol of Atlantic City and refusing to considerthe addition of other gaming opportunities at thetracks, they should die in the legislature.“A shortened racing season only makes sense ifthere are substantial purses to offset fewer racedays. The casinos were subsidizing larger pursesfor the last three years. But they are strugglingnow, and no one expects them to continue to underwritethe purses.“Harness racing, if moved to Monmouth Park in2011, would take place at night. The cost of installinglights at the Oceanport track andother upgrades is estimated at $4.6 million.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, November 23, 2010MAJOR PAPER HITS CHRISTIE “That also would pay for track surface changes,The Asbury Park Press, one of New Jersey’smost important newspapers, hasa new receiving barn and winterizing a portionof the grandstand. Good luck getting all thatdone by next year. In addition, Hanson has ignoredthe impact night racing would have onlashed out at governor Chris Christie,leading an editorial this morning, blasting area neighborhoods and traffic. And there ishim for his determined efforts to kill harnessracing at the Meadowlands. Here is racing fans would be willing to make the trip tono evidence to suggest Meadowlands’ harnessthe full text, which also will appear in this Monmouth Park to follow the trotters.week’s Track Topics.“Hanson’s recommendations are certain tobring expensive court challenges. The length ofthe racing season is mandated by state law andcurrent contract. How does a protracted legalbattle save the state money and lay the groundworkfor eventual privatization?“If you kill racing in the state before it can beprivatized properly, no private investors will bewilling to step in and take over. It’s one thing forthem to take over an ailing company and turn itaround. It is another to ask them to resurrect adead horseracing industry. If the state allows theindustry to collapse, it will have done far moreharm than merely throwing track employees outof work. Incentives to breed racehorses are tiedto racing purses. The less racing, the less opportunityto run a Jersey-bred horse. New Jerseybreeders will simply pull up stakes.“Hanson’s proposals to kill off racing seem counterproductiveat best and incomprehensible atworst. The governor should dismiss these latestwrongheaded ideas. And if he won’t, the legislaturemust.”Not mentioned in the editorial is the hugedrop in purchase prices reflected at therecent Harrisburg yearling auction -- thebiggest in the country -- for two of the beststallions in the world, pacer RocknrollHanover and trotter Muscles Yankee.The Hanson blow already is felt.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, November 24, 2010HANSON POISON AT WORKThe Hanson Doctrine, which seems determinedto destroy harness racing in NewJersey, already is wreaking havoc. RockN Roll Heaven, winner of 10 straight,$2.03 million and almost certain HarnessHorse of the Year honors this year, willnot stand with his brilliant sire RocknrollHanover at Perretti Farms in New Jersey,but at Blue Chip Farms in New York. JoeBellino, son of owner Frank Bellino, toldHarness Racing Update that uncertaintyof events in New Jersey affected theirdecision. Bob Marks, Perretti Farmsspokesman, told the newspaper that earlierthis year Perretti had acquired breedingrights to Rock N Roll Heaven, but heunderstood the Bellino’s decision to placehim at Blue Chip and the farm intendedto breed mares to Rock N Roll Heaven atBlue Chip. “He’s a great colt and we wishhim well. It’s very unfortunate for NewJersey. We just lost the services of whatmay be one of the greatest harness racingsires ever.” Harness Racing Updatequoted Joe Bellino as saying New Jerseywas hurting not just racing, but farmers,feed suppliers, summer interns, grooms,“so many lives.” Rock N Roll Heavenwinds up his racing career Sunday frompost one against five rivals in the $181,913Matron Stakes at Dover Downs in Delaware.USTA notes he has paced a record11 sub-1:50 miles this year, with victoriesin 1:49.2 or faster on half-mile,5/8ths, 7/8ths and mile tracks.CAL-EXPO TRIES NO TAKEOUTStarting Saturday night and continuingfor three Saturdays through Dec. 18, Cal-Expo in Sacramento, in partnership withTwinSpires.com, will eliminate takeouton winning Late Pick 4 bets made at thetrack or on TwinSpires. The experimentwill be accomplished by awarding bonuspayouts of 17.65%, covering the 15%takeout on those bets. Director of racingDavid Elliott says, “We will continue tooffer $10,000 guaranteed pools on both ofour Saturday night Pick-4s. We are tryingto promote our program by offering thisbonus program and hopefully our playerswill find it rewarding.” On a payoff of$100 on a $1 pick 4, the player will be paida bonus of $17.65, negating the takeout.Bonus payouts will be limited to $500 perwinning $1 pick four per player, per day.Bonuses will be paid on track bets at Cal-Expo, and on TwinSpires will have theiraccounts credited with the winnings and17.65 bonus the following Tuesday.ALL NOT HAPPY OVER NY DEALIn fact, almost everyone except governorDavid Paterson and the Stockbridge-MunseeMohicans of Wisconsin seems unhappy.Harness and thoroughbred tracks, existingcasinos and racinos, and New YorkIndian tribes are objecting to the landswap deal in which the Indians are settlingclaims to 23,000 acres of land in MadisonCounty for 330 acres in Sullivan Countyand slots and table games.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, November 26, 2010ILLINOIS SLOTS VOTES NEXT?Illinois state Senator Terry Link, the Democratwho authored the slots-at-trackslegislation currently being discussed incommittee, has told northwest Chicago’sJournal-Topics that he expects the bill --SB 3970 -- to come out of committee nextTuesday and go to a vote of the full Senatethe same day or next Wednesday.The bill as being discussed includes up to1,200 slot machines and video poker devicesfor each of Illinois’ six tracks, andcircumvents local municipalities’ rightsto prohibit them. It also provides for fivecasinos in the state. The Journal-Topicsprovides local news to 13 heavily populatednorthwest suburbs of Chicago, fromArlington Heights to Wheeling.HARRAH’S PUBLIC OFFERINGThe public offering withdrawn by Harrah’slast week failed because of underpricingof value by potential investors,according to bloomberg.com. The newsservice reported that Harrah’s privateequity firms, Apollo Global Managementand TPG Capital, had been told by theirIPO advisers that potential investors valuedHarrah’s at $10 a share, or some $3.37billion, while Apollo and TPG valued itbetween $3.8 billion and $4.36 billion.Given those numbers, Harrah’s cancelledits IPO, becoming the 121st companythis year that planned to raise $46billion but withdrew the offers.A SUPER-SULKY IN NZ?Milton Bloomfield, a cycling engineer inChristchurch, New Zealand, working withan advisory team of prominent trainersand drivers, is close to finishing work ona new sulky design that has generated optimisticexcitement in New Zealand harnessracing, according to that country’sSouthland Times. It reports that the driver-trainerbrother combination of Anthonyand Tim Butt, along with trainerand brother-in-law Cran Dalgety, formerworld driving champion Mark Jones, andtrainer-driver Nigel McGrath have beenworking with Bloomfield on a new racebike that Andrew Butt hopes can be “halfthe cost, half the weight, and hopefullyfaster than an American-type sulky introducedrecently in New Zealand.” Bloomfieldhas designed new racing bicyclesused by New Zealand Olympians.RIVER DOWNS - $45 MILLIONPinnacle Entertainment, anticipating finalapproval of slots at Ohio racetracks,is buying River Downs south of Cincinnatifor $45 million. Pinnacle owns andoperates casinos in four states, and itspresident and CEO, Anthony Sanfilippo,says the latest track purchase “positionsPinnacle to benefit from the possible legalizationof VLTs at Ohio’s racetracksand, with the facility’s metropolitan Cincinnatilocation, we believe River Downsoffers an excellent complement to ournearby Belterra Resort in Indiana.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, November 29, 2010NYCOTB MIGHT CLOSE...AGAINThe New York state legislature meetsin special session today, with governorDavid Paterson pleading with them topass his proposed New York City OTBlegislation in the face of yet another threat-- the third, or is it the fourth or fifth? --to close down. Some legislators, weary ofthe boy-who-cried-wolf appeals, are notin accord, and Joe Faraldo and his NewYork Standardbred Owners Associationare urging them to stand fast in the faceof forgiveness of monies due Yonkersand Monticello in return for a transferof phone betting to a track consortiumcalled the New York Racing Network.The SOA opposes passage fearing loss ofthe horsemen’s share of monies due. Thegovernor’s hand-picked leaders of NYCOTB -- chairman Larry Schwartz, whoalso serves as Paterson’s chief of staff, andpresident Greg Rayburn -- plan to sendout closure notices tomorrow if immediateaction is not taken. They say they will runout of cash by the end of the month unlessthe legislature approves their bankruptcyreorganization plan.Across the Hudson river in New Jerseythings are even worse. There the governoris not even meeting with horsemen leadersand legislators seeking a compromise. Hesays he will not discuss that possibility-- unless and until he is brought a planshowing the industry’s abilityto operate the tracks on a selfsustainingbasis.NY INDIANS ON WARPATH TOOTV viewers watching the Buffalo Billsand Pittsburgh Steelers battle yesterday,or the New York Giants beat the JacksonvilleJaguars, may have been surprisedto find the New York Seneca Indian Nationspending big money on commercialsinvoking their 200-year-old treaty rights.The Senecas went to the airwaves in anotherissue that may show up in the specialsession of the legislature in Albany today.The Senecas made clear their complaintsagainst New York taxing their businesses,including cigarette sales, in their 30-secondTV commercials and on the Internet.They urged viewers and readers to bombardlegislators, reminding them that“In exchange for our land, you agreed torecognize our sovereignty and our rightto live in peace, free from your taxes.”They asked those responding to “tell yourlawmakers in Albany and Washington tostop looking to others to pay their bills.”The commercials closed with, “Changethe future. Keep the promise of the past.”The ads noted Indian contributions to theeconomy and to U.S. war efforts by Indianveterans, and asked readers to let statelawmakers know that the Seneca Nation“is not a welfare office for politicians.”A LOOK AT HORSE HEAVENRock N Roll Heaven sealed Harness Horseof the Year honors Sunday, winning the$181,913 Matron at Dover Downs to bringhis life earnings to $2.78 million,$2.16 of it this year.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, November 30, 2010NYCOTB SAYS FRIDAY THE ENDStop me if you’ve heard this one before,but the New York City Off-Track BettingCorporation says it will close down thiscoming Friday after the New York Senatewalked out of a special session withoutconsidering governor David Paterson’s reorganizationplan. The Assembly is readyto pass the bill, or may have by the timeyou read this, but its action without Senateconcurrence means nothing. SpeakerSheldon Silver says the bill will be signedand ready if the Senate returns, as he expects,later this month, so Friday’s closingdate could be postponed or rescindedif it happens, although that would be anexpensive procedure. Silver says if theSenate does not return and pass the measure,“basically the place just closes.”NYC OTB is out of money, according toits chairman Larry Schwartz and presidentand CEO Greg Rayburn. Both werein Albany yesterday, unsuccessfully tryingto convince senators to pass the reorganizationbill. Gov. Paterson said he doesnot think the measure is a bailout plan.“Everybody takes a haircut in this plan,”he said, “The tracks take it, the unionstake it. Everybody has to reduce theirconsumption to make the plan work.”Everybody didn’t agree, including thehorsemen, whose leader vetoed it. Whatwould happen to OTB telephone betting,which would have gone to the tracksif the plan had passed, has not beenmade clear, but it is in danger too.MORE OF THE SAME IN MDThe possibility that there might not be anyhorse racing in Maryland loomed yesterdayafter the Maryland Racing Commissionrejected both a plan by Penn NationalGaming for a 49% ownership share of theMaryland Jockey Club, and a date proposalsubmitted by those two racing organizations.Simulcasts also are in danger,since by law they require live racingto exist, and the hallowed Preakness alsois on shaky ground. Attorney Alan Foreman,the thoroughbred horsemen’s leaderin the state as chief executive officer ofthe Thoroughbred Horsemen’s Association,told Tom LaMarra of Blood Horse,“There is no racing schedule for 2011 inMaryland. We don’t even know who willhold the license. No application for dateshas been approved. Maryland racing isnow owned by a dysfunctional entity thatcan’t make decisions. We’re not goingto stand for it anymore. The MJC planwas totally unacceptable to horsemen.They understand they may be shut out,but there has never been a greater showof unanimity.” That isn’t quite true withPenn National and the Maryland JockeyClub, who started their hoped for and atleast temporarily aborted partnership insomething less than harmony. In Pennsylvania,meanwhile, Penn National, withhorsemen’s approval, asked the racingcommission to approve 202 programs oflive racing for 2011, with Monday andTuesday’s cards night racing.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, December 1, 2010ILLINOIS SLOTS VOTE TODAY?A vote in the full Senate in Illinois on allowingslots at the state’s six tracks couldcome as early as today, after the SenateExecutive Committee voted yesterday toapprove SB737. The measure also wouldexpand casino gambling. It would require36 of the Senate’s 59 members forpassage, and still would need a 60% majorityvote in the House, and then couldface a veto from Gov. Pat Quinn, who opposesexpanded gambling.THE DEATH WATCHThe clock is ticking, and once again downto final hours before Friday’s closing ofNew York City OTB. The Assembly haspassed the legislation proposed by Gov.David Paterson that could save the batteredorganization, but the Senate, whosevote also is needed, has left the specialsession in Albany. Unless it returns andapproves in the next 48 hours, OTB willclose 44 shops and dismiss between 700and 1,000 current employees, the precisenumber in dispute. Gov. Paterson’s officesays that OTB closing would trigger some$100 million in state liabilities related tobankruptcy claims, more than $500 millionin pension and retiree health benefitcosts, and unemployment for the employees.The governor’s office also said, “Failureto act on this legislation will impactthe entire racing industry. New York CityOTB manages approximately $750million in handle, which would beeliminated upon closure.”The Senate could return in two weeks,and there is a possibility Friday’s closingcould be deferred until then in hope thebody would then approve the governor’slegislation.In Maryland, the legislature, faced withloss of the Preakness at Pimlico with nolive racing scheduled for the state nextyear, is considering possible moves, includingtakeovers by eminent domain.RACING OFFICE HELP NEEDEDWe are asking assistance from HTA directors,program directors and racing secretariesin making certain owners, trainersand grooms know about submitting nominationsfor the HTA-Hanover Shoe FarmsGroom of the Year award. Jen Foley hasdrawn up and distributed various sizedads to tracks. Posting them in race officesand past performance programs will behugely helpful and appreciated. We hopeHTA directors will follow up on this withthe program department and racing secretaries.All that is needed is a letter toHTA telling why the nominator thinks thegroom is worthy of recognition.JOB OPENING AT BUFFALOBuffalo Raceway has an immediate openingfor an assistant racing secretary forits upcoming late December to late Julymeeting. Salary commensurate with experience.Resumes may be sent to RobinBurns, rburns@buffaloraceway.com, orhe can be contacted by phone at 716-649-1280 ext. 228 after 7 p.m. Wed.-Sat.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, December 2, 2010IL SENATE OKS TRACK SLOTSThe Illinois state Senate, by a 31-20 vote,yesterday approved a huge gambling expansionbill including slots at tracks anda casino in Chicago. The champagne wasbeing chilled, but there were no corkspopping just yet, for the House took noaction and the governor is opposed to theidea. The bill also includes five new stateregulatedcasinos and a thousand additionalgame positions, 400 immediatelyand 600 more in 2013, for the nine casinosalready operating in the state. The scaleof the upsizing could work against thebill’s chances, governor Pat Quinn sayinghe had not yet seen it but it “soundedtop-heavy,” and some Republican Housemembers calling it “gigantic, a huge package.”The bill’s sponsor, Democratic SenatorTerry Link, did not deny that, butsaid, “We’ve got a huge deficit...a hugeproblem. You don’t look at little things tofix it. You look at big things.”NYCOTB DOWN TO 24 HOURSThe New York City Off-Track BettingCorporation was at the brink again today,after its board of directors voted unanimouslyyesterday to close down operationstomorrow. The “unless” this timewas unless the state Senate returned to Albanyand voted to approve the governor’soperational plan -- he would not call it abailout -- approved this week by the Assembly.Senators walked out of thespecial session in Albany, and arenot likely to return before Dec. 15.DANCER WANT EXPANDED ADWNew Jersey state Assemblyman Ron Dancer,co-sponsor of a bill to save harness racingin the state, is proposing to open upadvanced deposit wagering in the state toout-of-state residents. Only New Jerseyanscan use ADW currently, but Dancerand co-sponsor John Burzichelli thinkopening it to out-of-staters could raisemillions and help the Sports and ExpositionAuthority that operates the Meadowlandsmove toward self-sufficiency.TRACK EXECS - LEND A HANDHTA’s Jen Foley has prepared and distributedprogram and race office ads invarious sizes for our Groom of the Yearaward. One appears below. Your help ingetting them used would be appreciated.Do you know a groom whodeserves special recognitionfor outstanding work?Nominate him or her for theHarness Tracks of America &Hanover Shoe FarmsGroomof the Year AwardTo nominate a groom all you need to do is write a detailedletter explaining why the groom is deserving of the honorof Groom of the Year. Send with this letter the followinginformation:• Groom’s name, address, phone number,and windbreaker jacket size• Your name, address, and phone numberMail, e-mail or fax all information to:Harness Tracks of America4640 East Sunrise Dr., #200Tucson, AZ 85718E-mail: jen@harnesstracks.comFax: (520) 529-3235All grooms nominated will receive a certificate ofexcellence and the first 50 nominations will also receivean embroidered HTA/Hanover Shoe Farms jacket.Deadline for nominations isDecember 31, 2010

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, December 3, 2010INT. SOUND WINS MESSENGERHarold and David Snyder, the father-sonteam who, through their InternationalSound Corporation and their families,have been the principal supporters ofHarness Tracks of America’s CollegeScholarship Fund, will receive HTA’shighest honor, the Stan Bergstein MessengerAward, at the University of ArizonaRace Track Industry Program’s awardsluncheon in Tucson Dec. 7.The fund has provided worthy youngstudents involved in harness racing with$707,950 in scholarships at colleges anduniversities of their choice since its inception,with the Snyder family and InternationalSound consistently leading theway.“Without them,” Bergstein said, “therewould be no fund. No recipient has beenmore appropriate in the 30 years the Messenger,which honors accomplishment ofnote in the sport, has been in existence.The previous winners read like a Hall ofFame, and the Snyders belong in it.”Past winners have included breeder NormanWoolworth as the first in 1981 andtwo governors, Edward Rendell of Pennsylvanialast year and Jim Edgar of Illinoisin 1992. Many of the greatest horsemenof the sport, including Joe O’Brien,John Campbell, Doug Brown, Stan- leyDancer and Lou Guida, have wonthe Messenger over the years.CAVALRY LATE THIS TIMEThe cavalry didn’t quite make it over thehill this time, and New York City OTBclosed down today, just as the slow-ridingNew York Senate said it would return tospecial session Tuesday to continue “considering”the OTB’s reorganization andrescue plan. The OTB’s chairman, LarrySchwartz, called this ride too late, andsaid City OTB was “dead on arrival.”There was confusion right to the end.News media couldn’t decide whether thenumber of employees laid off was 800 or1,020, a pretty wide spread. And bettorsat Aqueduct yesterday weren’t much better.They allowed the feature race winnerto gallop home a $15.40 winner in theBig A’s feature. His name? Goodbyeandgoodluck.NEVER FEAR, FRANK IS NEARThe governor of Maryland, MartinO’Malley, has called a meeting of racingleaders representing tracks and horsemenfor Monday afternoon. Both PennNational and the Maryland Jockey Club,who may or may not be co-owners of Pimlicoand Laurel, have been asked to attend.And from Austria comes consoling news.Frank Stronach told John Scheinman, reportingfor Thoroughbred Times, that “Iwill come down to Maryland next week,We’ll try to find common ground. It hasto be done quickly.” So does the mess inNew Jersey, where horsemen’s presidentTom Luchento was upbeat.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, December 7, 2010NY SENATE VOTES ON NYCOTBOur fading vision erred last week in thinkingwe saw the troops of the New York Senateriding over the hill to save New YorkCity OTB by signing on Gov. David Paterson’sreorganization bill. It turned outthey were riding away, leaving the battleto the Assembly, which approved it, butabandoning the scene when its help wasneeded to pass the legislation. We havecleaned out glasses, and now see the Senateriders are back, and due to vote today.Whether they have enough votes to passthe issue is a matter of great debate in Albany.We will know later today and passon the word.LET’S TRY BUSSES INSTEADInstead of relying on the cavalry andhorsepower, how about trying a new idea.New York state senator Eric Adams, nowchairman of the Senate Committee onRacing, Gaming and Wagering, said hehad no idea how the various elements ofracing were joined until he took a onehourtour of breeding and racing farms.How about hiring a fleet and taking thewhole Albany crew on a tour. Since itseems likely most are like Adams and hadno idea about the racing industry, it mightchange everything if they learned about it.If it works, go to Trenton and do the samewith the New Jersey gang. We have longbelieved the educational effort couldand should start there. It isn’t goingto start in the press.REID’S ONLINE BET DRAFTThe latest draft of U.S. Senate majorityleader Harry Reid’s bill to legalize onlinepoker was being circulated today. Hereare a few reported highlights.The first license would be issued 15 monthsafter its enactment.Sites would pay 20% of revenue as a licensingfee.Once enacted, current sites offering U.S.citizens the right to play would have 30days to cease operations if they wished toreceive a license.Three key Republican House committeeleaders with jurisdiction over Internetgambling -- Spencer Bachus of FinancialServices, Dave Camp of Ways and Means,and Lamar Smith of Judiciary -- alreadyare reported to be lobbying against consideration.The 111thCongress is nearingits conclusion. You judge Reid’s chances.NOBODY KNOWS NOTHIN’That summarizes results of Marylandmeetings of key legislators and officialsyesterday, except that the state wants tokeep the Preakness.In New York, the Senate returns to voteon salvation for New York City OTB, butreportedly will not consider the versionalready passed by the Assembly. It has itsown version of a new measure that wouldextend the NYC OTB benefits to OTBsthroughout the state, with track sharesreportedly lessened.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, December 8, 2010IT’S ALL OVER FOR NYC OTBNew York state’s Democrat Senate, orwhat portion of it showed up to vote,killed New York City Off-Track Bettingyesterday on a 29-21 vote, with 32 “fors”needed for passage of Gov. David Paterson’sreorganization bill. The OTB chairman,Larry Schwartz, announced followingthe vote, “We are out of money. Weare out of cash. We are out of business,”and closed down City OTB and 50 outletsat midnight last night.An even more far-reaching and dismalview was expressed by the chairman ofthe New York Senate’s Racing, Gamingand Wagering Committee, Eric Adams,who said before the failure, “A ‘no’ voteon this bill lights the wick to a stick ofdynamite that will blow up our racingindustry.” Adams knew that because hetoured the state, saw what the industryinvolved, and was concerned about itand the people in it. The others did not,although one -- Democrat Kevin Parker-- had an excuse for his absence. He wasin a Brooklyn court, where he was foundguilty of assault on a New York Post photographer.Another senator was attendingthe wake of a friend. He could havevoted and attended the wake of New YorkOTB and, if Senator Adams is right, a farbigger wake, for the entire New York racingindustry. The GOP senate minorityleader, Dean Skelos, had the bestone-liner. He called the Democrats“the party of no-tb.”MEANWHILE, IN TUCSONHTA honored Harold and David Snyder’sInternational Sound Corporation with itsMessenger Award at the The University ofArizona Race Track Industry Program’sSymposium on Racing and Gaming. Beforea big luncheon of all attendees, theSnyders, father Harold, wife Marcia, sonDavid and grandson Joe accepted themounted colorful Italian crystal vase fromthe editor and Jen Foley, who chairs theHTA college scholarship fund on whichthe Snyders have lavished thousands, andwhich in reality owes its present existenceto the Snyder family and InternationalSound.CENTAUR’S BIRD IN HANDAccording to the Pittsburgh Post-Gazette,Centaur LLC chose the old maxim of abird in hand worth two in the bush in sellingits Valley View Downs racing licenseto American Harness Tracks Inc. Theauction sale price was reported as $3.5million, but had Centaur chosen to accept,it could have realized $7 million ona deferred payment plan from CarmenShick’s Bedford Development. Shick offered$1.3 million upfront, $4.2 million atclosing, and $1.5 million on the first anniversaryof the opening of a racino there.HTA officials Gary Palmer, president andCEO of Prairie Meadows, and Woodbine’sVP Jane Holmes were to speak today atthe Racing Symposium. Hoosier’sGM Jeff Smith spoke yesterday.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, December 9, 2010SKY FALLEN, SORTING DEBRISWith the fallen ruins of New York CityOTB littering the entire state and beyond,stunned employees, horsemen, and everydaybetting fans were picking thru theshattered shards today, the full realizationof damage far from assessed or realized.Among the developments:A meeting has been called for nextWednesday in Albany by AssemblymanGary Pretlow, chairman of the Assemblycommittee on racing and wagering, todiscuss the possibility of merging the fiveremaining regional OTBs in the state intoone entity.Larry Schwartz, Gov. David Paterson’spoint man on the disaster, said on radiotalk show “Live from the State Capitol”that there was “a definite possibility” thatSaratoga Race Course could shut down.The chairman of the New York Racing andWagering Board, John Sabini, said therecould be less racing, reduced purses, failureof some smaller tracks and cheaperracing stock in New York.The New York Times’ Russ Buettner, ina story reflecting the newspaper’s longdisinterest in horse racing in the state,reported on 1,000 New York employeeslosing their jobs, without mentioning thefate of many thousands of horsemen inthe state. His assessment of the closure:“Another piece of gritty old NewYork gone the way of the Automatand the Times Square peep show.”Sabini, in his role, said New York CityOTB represented “about 45% or so ofhandle in the state. In an industry that’shaving a tough time anyway in a tougheconomy, that’s a huge, huge hit.” Theracing board hoped to switch lost customersto advanced deposit wagering by allowingthem to register online and for liberalizedrules for tracks to attract them.Marc Richards, an attorney representingOTB’s many creditors, pointed out thatif OTB “stays closed for one or two orthree days, forget it, there’s nothing left.It’s a fragile asset to begin with.” He estimatedclosing costs at $19 million, saidtrack owners seemed less likely than everto collect the $67 million owed them, andthe state probably would lose the $11 millionowed it. He said pension and healthbenefits for retirees could exceed $600million.AND IN NEW JERSEYGov. Chris Christie vetoed the 2011 racingdates awarded by his state racing commission,calling it “inappropriate to approvethem.” The commission had awarded thefull 141 dates to both the Meadowlandsand Monmouth Park, leaving the Meadowlandswith 36 dates, six of them a special“Hambletonian week” meeting andthe rest at Monmouth Park. Neither ideais practical, but the Christie-Hanson juggernautto kill racing at the Meadowlandsrolls on with 2011 racing scheduled tobegin in a little over two weeks.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, December 10, 2010SELECTED XMAS GREETINGSFrom Chris Christie, governor of NewJersey, vetoing full racing at the Meadowlandsand Monmouth Park in 2011:“While the recommendation (of the NewJersey Racing Commission) to race a fullschedule at the Meadowlands and MonmouthPark in 2011 is being reviewed, itwould be inappropriate to approve theNJSEA’s request to race 141 thoroughbredrace dates at Monmouth Park and141 standardbred race dates at the MeadowlandsRacetrack, particularly in light ofthe taxpayer subsidies required to sustainsuch a lengthy race calendar. An appropriatesolution for the state-owned racetracks,which does not unduly burden thetaxpayers of this state, must be reachedbefore a 2011 racing schedule can be approved.”From John Sabini, chairman of the NewYork State Racing and Wagering Boardon the closure of New York City OTB:“They say dropping a pebble in watercauses a ripple; this is like dropping aboulder in a pond. If anyone thinks this isnot going to change the framework of thebusiness, they’re kidding themselves.”From Larry Schwartz, chairman of NewYork City OTB and Gov. David Paterson’schief of staff: “This is going to havea tremendous impact on the racing industry.I believe that upstate tracks willclose, horse farms will have to shutdown, breeders will be moving outof state.”Also from Schwartz: “NYC OTB is shutdown, and there is no plan to reopen it.This is not a light switch, you can’t flick iton and off.”Greg Rayburn, CEO of New York CityOTB: “Once you go dark on an ADW,they’re gone, they’re not coming back.”Gov. David Paterson, on reports that SenateGOP leaders were saying negotiationswere continuing. “The reality is we’re notnegotiating. The others (New York state’sfive other regional OTBs) are likely to failas well because they have the same problemsand will probably meet the sameend.”Bob Galterio, general manager of YonkersRaceway, on $20 million owed to itby failed New York City OTB: “We don’tknow how we’re going to be able to recoupany of it, because they don’t haveany money and they have no assets. Sobasically we’ve lost everything that theyowed us.”Jeff Gural, who runs Tioga Downs andVernon Downs, commenting on a releasefrom the Empire State Harness Horsemen’sAlliance that it represented manyof New York’s harness horsemen: “I amproud to say they certainly do not representthe horsemen at Tioga Downs. Asyou know, this group (Empire) vigorouslyopposed legislation that would have keptOTB open. They seem relatively unconcernedwith the fact it is closing.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, December 13, 2010ONE MAN’S MEAT......is another man’s poison, according to anold proverb best remembered by the old.It came to mind with a story in Indystar.com, telling of the impact proposed casinosin Chicago and Ohio could have ontax revenue for Indiana. According to thenews service, downtown casinos in Chicagoand Cincinnati could result in as muchas $154 million a year in lost tax revenueto Indiana. Bill Eadington, Nevada’s academicgaming expert, told the service, “Itcan certainly inflict a wound, and it wouldcut into Indiana’s revenue performance.But the casinos would survive.” A downtownChicago casino, Spectrum GamingGroup, would drain an estimated $72.3million in revenue from heavily populatednorthwest Indiana, but one in Cincinnatiis estimated to take $181 million from casinosalong the Ohio river, with a tax lossof $57.4 million.ONE FRIEND, NICE TO KNOWThe House Republican Caucus has announcedthe powerful committee chairmenfor the 112th Congress that getsunderway next month. These men willcontrol consideration of House bills forthe next two years. One of them -- HalRogers of Kentucky -- was honored bythe American Horse Council 10 years agowith its Rich Rolapp award for service tothe horse industry. Dust off the plaque,Mr. Rogers. Horse racing, harnessand thoroughbred, needs everyfriend it can find these days.Other committee leaders, in case youmight know them, will be Frank Lucas,Oklahoma, Agriculture; Buck McKeon,California, Armed Services; Paul Ryan,Wisconsin, Budget; John Kline, Minnesota,Education and Labor; Fred Upton,Michigan, Energy and Commerce; SpencerBachus, Alabama, Financial Services;Ileana Ros-Lehtinen, Florida, Foreign Affairs;Peter King, New York, HomelandSecurity; Lamar Smith, Texas, Judiciary;Doc Hastings, Washington, Natural Resources;Darrell Issa, California, Oversightand Government Reform; RalphHall, Texas, Science and Technology; SamGraves, Missouri, Small Business; JohnMica, Florida, Transportation and Infrastructure;Jeff Miller, Florida, Veterans;Dave Camp, Michigan, Ways and Means.Our thanks to the AHC for the information.DON’T UNDERESTIMATE REIDYou don’t get to be Senate Majority Leaderwithout knowing your way around theblock, and Senator Harry Reid knows everystep of the way. He has been playinggames with his online poker bill, sayingat one time he was withdrawing it. Nowit turns out the wily Reid decided againstadding his bill to a tax cut package, accordingto the Washington Post, fearingnegative response, and instead may haveit attached to a different package of mustpasslegislation. It isn’t over yet, but forMr. Reid, both shoulders are not yeton the mat.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, December 14, 2010CENTAUR’S FORMER SITE OK’DIt now appears that a harness track andracino that Indiana’s Centaur had hopedto build in western Pennsylvania may bebuilt after all, but not by Centaur. Thecompany had objected to the results of anOct. 20 auction of its harness racing license-- the last available in Pennsylvania -- andso had Carmen Shick’s Bedford DevelopmentManagement, an unsuccessful bidder.It now appears both have withdrawntheir objections with the successful bidder,American Harness Tracks, comingup with a new partner-backer in MeritGaming of Chicago. American Harnesshad originally announced it would movethe proposed track and racino to Johnstownin central Pennsylvania, but legalobstacles seemingly appeared that couldhave nullified such a move because of anas-is, where-is provision in the auctionsale. Centaur and Bedford’s withdrawalof their objections indicates the project ison course for Lawrence County near thePennsylvania-Ohio state line. Still unresolved,and needing approval, is the racinolicense which remains subject to thePennsylvania Gaming Control Board,which had refused to grant further extensionsto Centaur because of its inabilityto obtain financing. If American HarnessTracks can satisfy the control board thatit can get the financing from Merit Gaming,the five-year delay could be over, andconstruction of the track and casinocould finally get underway.MORE SURPRISES IN NYIn the wake of the closure of New YorkCity OTB, more surprises. In a hardto-understandreaction -- was it a spit inthe eye of OTB or a move of defiance? --New York Racing Association presidentCharles Hayward announced his boardof directors, with the exception of clearthinkingracing man Bennett Liebman,had approved 3% salary increases forlower level executives and 5% boosts forthe top brass, including a reported raisefrom $460,000 to $473,800 for Hayward.He said the raises were “long overdue,”the last coming three years ago. Boardmember John Hendrickson, saying hehad voted for the raises reluctantly, added,“You have to pay for talent.” Anotherdirector, Charles V. Wait, who was absentfor the vote, said he approved the movebecause they should be made “irrespectiveof what’s going on with NYC OTB.”The reaction of media was not as understanding.Its questions concerned timingas well as prudence, and was blisteringup and down the line. The New York Postissued a blazing editorial, concluding,“NYRA has to cut costs if it wants to survive,not pump up its perks and pay. Buthold on. Maybe it just doesn’t want tosurvive. Fine by us.” The concern here isnot with pay raises, which may be needed.It is how and why smart racing executivescould, knowing what press and thereforepublic reaction would be, ignore thetiming of the action.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, December 15, 2010PARK CAR, PLACE YOUR BETSIt appears that Maryland’s third casino,which will help fuel racing in the state, willnot get underway until late next year, andthen on the refurbished first floor of a parkinggarage. The president of the CordishCompanies, Joseph Weinberg, told a statepanel that the company planned to startwork on a temporary small version of itsMaryland Live! entertainment projectsoon, with 2,000 slots, as a completely enclosedfacility while it works on the fullproject, which will have 4,750 slots whenit opens in late 2012. Already in operationis Penn National’s Perryville operation,with 1,500 machines, and another800 are due to begin humming in Januaryat Ocean Downs. A downtown Baltimoresite will be rebid before summer, with thestate’s fifth authorized casino, in westernMaryland, drawing no interest from biddersor builders.DELEO TALKS SLOTS, SOFTLYRobert DeLeo, speaker of the House inMassachusetts, has outlined his agendafor 2011, and has toned down his fieryquest for track slots that failed at the endof this year’s last legislative session underheavy opposition from governor DevalPatrick. DeLeo says he still wants slotsat tracks “to keep people who are presentlyemployed employed and to providelocal aid,” and he hopes the matter will bediscussed early in the new session togive time for discussion and debate.So does Plainridge Race Course.CAT HITS 14,000, MOVES ONIndestructible Catello Manzi won his14,000th harness race last night, anddrives on toward Herve Filion’s world recordof 15,180. The Cat scored with BerryBerry Fast at Yonkers Raceway, saying,“I’ve never been a numbers guy. As I wasgetting closer, I was getting e-mail remindersfrom some friends, so it did cross mymind more. I just try to go out there, giveit my best and let those things take care ofthemselves. That doesn’t mean I’m notproud of the wins. I enjoy the competition,and more importantly, I’m healthyenough to stay at it.” Manzi is 60, andplans to drive on. He has driven the winnersof more than $146 million, accordingto USTA statistics.AS OTB LOSES, TABCORP WINSTabcorp Holdings, Australia’s off-trackbetting system, has been awarded an additional500 poker machines and 50 gamingtables for its Queensland Gold Coastand Brisbane operations, and has announcedit will invest $625 million Australianto upgrade the properties in thestate of Queensland. The renovation isthree times what Tabcorp announced inOctober, and comes after an $860 millionrefurbishment of its Star City property inSydney, Australia’s biggest city. Tabcorp,based on its stock price, is valued at $4.7billion. It is reassuring to know that thereare bookie operations that still know howto make money. Wonder what theywould charge to run NYC OTB?

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, December 16, 2010JEFF GURAL COULD BE SANTAThe happiest news of the holiday seasoncould be developing in New Jersey, whereit is reported that Jeff Gural is discussingpossible privatization of the Meadowlandswith representatives of Gov. ChrisChristie. Should discussions now underwaymaterialize, and Gural step in, aloneor with a group, it could spell a happynew year for the entire industry, nationwide,and would cast Jeff, who has scoredtwo significant wins at Vernon and Tioga,as the possible savior of the sport. Keepyour hopes alive. Gural is not just a talker.He is a doer, and if he can pull thisone off he would change doomsday intoa happy Christmas day. He says he isnot interested in Monmouth Park’s thoroughbredracing, because “I’m a harnessracing guy.”Gural’s Tioga and Vernon Downs operationsmanager, Dustin Ross, has announcedthat the track’s parent, AmericanRacing and Entertainment, has providedmore than $76,000 to more than 50 localcharities this year. Fans at the two trackshave donated more than $3,300 to boththe Chloe Mulcahy and Aliesya Abramsbenefit funds, and chairman Jeff Guralhas personally matched the contributionsand the Children’s Starlight Foundationof New York City. Tioga employees contributeddonated more than $8,000to the United Way campaign, withGural tossing in another $5,000.DISAGREEMENT IN ILLINOISTwo days of negotiations between harnesshorsemen and Balmoral and MaywoodParks in Illinois failed to produce a contractfor 2011. The executive director ofthe Illinois Harness Horsemen’s Association,Tony Somone, says the tracks want tosplit recapture money 50-59 rather thanthe 70-30 split for horsemen that has beenin effect. He says this would be $900,000more than at present, with every 10%in recapture money worth $450,000. Ameeting of the horsemen and track managementis scheduled for next Tuesday,Dec. 21 with the Illinois Racing Board toresolve the issue. Somone acknowledgedthe racing board could force the horsemento share recapture monies 50-50, andsaid that if an acceptable agreement is notreached next Tuesday, and if the horsemenhave to share recapture monies 50-50, “Ifthat’s the case,” he said, “and if we have topay 50% in recapture, then the horsemenare going to have to take a few weeks offto build up our purse account. Withoutthat, we’re looking at another substantialpurse account, and the horsemen can’t affordto do that.” If the Illinois legislaturewere to pass a slots-at-tracks bill when itreturns after the holidays, it would solvethe problem, “recapture would be history,”the horsemen’s publicist Kim Rinkersaid, and Illinois could return to the positionof national prominence and leadershipthat it once held as a major harnessracing power.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, December 17, 2010A DAY MAKES A DIFFERENCEMore details became available today concerningJeff Gural’s interest in privatizationof the Meadowlands, and they makechances of any solution there less likely.It turns out Gural told Harness RacingUpdate he had no interest in trying tooperate the Meadowlands in its presentform because “the place is obsolete andfalling apart.” His idea is to build a newgrandstand -- a smaller, state-of-the-artfacility -- on the backstretch, and “marketand make it a fun place,” like his TiogaDowns operation. He says he has nointerest in trying to figure out a way torun the Meadowlands as it is and make aprofit, “because I don’t think you can.”We’ll know more today, which is D-Dayfor governor Chris Christie. Horsemen’spresident Tom Luchento has been seekinga deadline extension past today, whichChristie may not grant. If that happens,what occurs come January is questionableas far as racing at the Big M in 2011.In Ontario, meanwhile, Woodbine isscheduled to begin its 129 days of 2011 racingon New Year’s Day. The track will operatefrom then thru May 26, then end theyear racing from Oct. 3 until New Year’sEve, mostly four days a week. Mohawkwill fill the season, racing 98 programsfor a Woodbine Entertainment overallseason of 227 programs of majorleague harness racing.ON OTHER FRONTS....In Philadelphia, the four-year struggle byFoxwoods and its partners to build a riverfrontcasino seemingly came to an endwhen the Pennsylvania Gaming ControlBoard revoked Foxwoods’ license. Theissue is likely to hang for years in legalmaneuvering starting in Commonwealthcourt. Foxwoods and its partners, includingHarrah’s, which Foxwoods said hadagreed to take over the $275 million project,hoped that move would get the projectrolling, but the gaming control boardruled that plan out as being contingent ontoo many variables.Churchill Downs has closed on its $138million purchase of Harlow’s Casino Resortand Hotel in Greenville, Mississippi.The 841 Harlow slots, 23 table games anda poker room in the 105-room hotel thatsits on 69 acres of property, is the firststand-alone casino for Churchill, whichowns four tracks with two racinos. DailyRacing Form says Churchill, in its thirdquarter financial statements, reported$76.6 million in cash and $124.5 millionin long-term debt as of Sept. 30.Gulfsteam Park in Florida has announcedit will introduce a 50-cent minimum Pick5 in 2011, and reduce its Pick 6 minimumbet from $2 to 10 cents.Horsemen at the Meadows are squabblingover introduction of 12-horse fields.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, December 20, 2010MERRY XMAS! M’LANDS LIVES!The guy in the Santa suit is Jeff Gural,whose knowledge and know-how as one ofNew York City’s biggest real estate magnatesconvinced even Chris Christie, thegovernor of New Jersey, to give the Meadowlandsat least three more months of life.Christie agreed not only to let Gural seethe Sports Authority’s books on the Meadowlands,but also loaned Tom Luchento’sStandardbred Owners and Breeders Association$1.2 million to keep the trackoperating until April 1. If Gural has notput together a leasing group by that time,the game is over, and the horsemen willpay back the $1.2 million with incomefrom simulcasting. Gural has big ideasfor the track, and has breeders Mike Gulottaand George Segal as initial partnersin the venture. If all goes well, he plansto build a new, smaller grandstand on theMeadowlands backstretch and sign a fiveyear,$1-a-year lease on the track. He toldharnessracingupdate.com that he thoughthe could make the deal work, saying, “It’sgoing to require an industry effort. Theindustry is very splintered, but this is anopportunity to bring it together. We needto come up with a model that is going tocreate customers for harness racing. Ifnot, where are we going?” Gural says hewill need to trim operating expenses, butwas able to get a grip on what handle,revenue and operating costs are. “I amvery pleased that their revenue wasso high. It’s roughly $30 million.”WHERE FROM, AND WHERE TO?Folks in New Jersey are accustomed tothe influence of Atlantic City on doings inTrenton and Princeton, but the latest regulatoryreform proposal, scheduled for avote in the Senate today, is puzzling. GingerGibson, writing for NJ.com, says criticsclaim the legislation “could expose thegaming resort to corruption and weaken asystem of oversight that has been used asa model around the globe.” Although Gov.Christie calls the proposed bills “the bestof the state models that we’ve seen,” twomen who fashioned Atlantic City’s oversightlaws 33 years ago decry them. One,former state senator Steven Perskie, saysthe new rules not only risk keeping themob from infiltrating the casino industry,but could politize a system designed to beindependent. “To do what this bill does,”Perskie says, “which is to throw everythingup against the wall, is in my view amistake.” The proposals would eliminatesome levels of oversight and give the casinoseven more liberty in tracking and reportingcash movement. James Wortman,a former director of the office of gamingeducation and research at the Universityof Houston who was a casino executivein the 1980s and 90s, called some ofthe changes “stupid and scary” and said,“Taking away the commission’s ability toreview and license employees, raises therisk of unqualified and unscrupulous peoplecounting the money or overseeing itsmovement, inviting fraud.”

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, December 21, 2010DOWN TO THE WIRE IN MDThe case for racing in Maryland in 2011goes before the Maryland Racing Commissiontoday, with veteran commissionerJohn Franzone saying he does not havehigh hopes for resolution of disputes. Evenas Frank Stronach arrived on the sceneto add his strength to negotiations, horsemenand management, and managementitself, seems divided. Stronach’s MI Developmentsand Penn National Gaming,which jointly own the Maryland JockeyClub, have amended their rejected appealsfor 47 days of racing and now areagreed on a full schedule of 146 days, providedthe horsemen agree to certain caveats.Those include, according to Franzone,horsemen contributing $1.7 milliontoward track operating expenses; givingup certain simulcasting rights; and supportingthe closing of the training centerat Bowie. Attorney Alan Foreman, thehorsemen’s leader, called those demands“posturing,” and said his group will insiston 146 days of live racing. MI Developmentsand Penn National say they are losing$4 million to $7 million on their Laureloperations, and Pimlico surviving onlyon its Preakness profits. The racing commissionturned down the 47-day requestearlier, and today’s meeting is its final ofthe year, with no racing schedule for nextyear as the discussions begin. Foremansays the dispute is more than an industryfight between horsemen andtracks. He says it’s far larger.2011 AGREEMENT IN ILLINOISIn Illinois, the harness horsemen’s associationis reporting agreement on a contractfor 2011, saying they have reached asettlement with Maywood and BalmoralParks to retain the IHHA retention of a70-30 split on recapture monies, obtaineda 5% purse increase and maintained a52-week schedule. The horsemen also saythey gained “significant” downside protectionfrom large declines in purse generation,and that Balmoral has agreed todrop the number of races a week from 36to 33 in an effort to increase field size.REID’S INTERNET POKER DEADThe Internet poker bill introduced bySenate majority leader Harry Reid isdead, after the failure of a tax relief billto which it had been attached in the finalhours of this year’s session. With controlof the House Financial Services Committeelikely passing from Democrat BarneyFrank, who strongly favors Internet gaming,to Republican Spencer Bachus, whovigorously opposes it, in the new Congress,chances of passage in the foreseeablefuture seem dim.WAXMAN(S) LOSE $450,000The Ontario Racing Commission reportedlyis about to order owner Dan Waxmanstripped of $450,000 in purse winnings ofthe pacer Loyal Opposition, ending a sixyearfight. The ORC has claimed Waxman’sfather, Bob, was involved inownership of the horse.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, December 22, 2010JEFF GURAL IS EVERYWHERE!With the darkness lifting everywhere --at the Meadowlands, in Maryland andnow in Syracuse, NY, where plans for anew $100 million harness track were announcedtoday -- Jeff Gural and his teamof Santa trotters and pacers seem to becovering Santa’s footsteps as the man ofthe hour. After opening the door to a possiblefive-year lease of the Meadowlandsand assuring racing there for the first threemonths of the new year, he now pops upas a possible partner with realtor ThomasWilmot in a project to be known as SyracuseRaceway. The idea is to turn thebig track at the state fairgrounds, whereslots are not allowed, into a five-eighthsmile track, and obtain a license for a racinoas a stand-alone separate operationnearby. Gural calls it “a good idea,” sayingrevenue from the racino could subsidizea downtown Westin hotel adjacent tothe Syracuse convention center. The plangot a big official boost yesterday, when theNew York Racing and Wagering Boardissued a certificate of approval, the firststep toward a license. A staff member ofthe racing board called the approval “adoor opener that allows the project to proceed.”A spokeswoman for the Division ofLottery, whose approval would be neededfor a racino, called it “way too early” todiscuss. Gural, asked about competitionwith Vernon Downs if the new track materializes,said he would oppose it “ifwe’re not part of the deal.”Gural pointed out that a Syracuse racinocould provide revenue for the state, whichis not the case with the Indian-operatedTurning Stone casino four miles from hisVernon Downs.2011 MARYLAND RACING OKChristmas also arrived early for thoroughbredracing in Maryland this morning,when Gov. Martin O’Malley brokereda deal for 146 days of racing at Laureland Pimlico, which has unsuccessfullysought 47 dates. Under the agreement,the Maryland Thoroughbred Horsemen’sAssociation agreed to contribute $1.7 millionand the state $3 or $4 million fromits slot machine revenues to help pay forMaryland Jockey Club operating expenses.O’Malley said he was pleasedthat track owners, horsemen and breeders“were able to come together to reach aconsensus that will allow for a full seasonof racing in 2011.”BIG TRADEOFF FOR STRONACHIn a major tradeoff, Frank Stronach hassurrendered control of MI Developmentin return for taking over GulfstreamPark in Florida, Santa Anita in Californiaand Pimlico and Laurel’s share of theMaryland Jockey Club. The deal followsa controversial development earlier thisyear which paid Mr. Stronach $860 millionin cash and stock for his holdingsin Magna Entertainment. The new dealleaves him free to experiment with hismajor tracks.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, December 23, 2010A FEAST OF XMAS RICHESWith holiday suddenness, like a pre-Xmassnowfall, pieces began to fall in place allover the map for a brighter winter in racing.In New Jersey, the Sports & ExpositionAuthority voted president and CEO DennisRobinson power to enter into an agreementwith the Standardbred Breedersand Owners and Jeff Gural concerningleasing the Meadowlands to their rescuegroup if it is created. The agreement spellsout exclusivity. The racing commission,meanwhile, restored a racing schedule of141 dates, split between harness and runners,and SBOA president Tom Luchentosaid he thought there would be about 85days of live harness at the Meadowlandsif all goes according to plan. Newark Star-Ledger harness writer Ray Brienza wrotethat fans will determine the Big M’s futureby their turnouts this winter.In Pennsylvania, Lawrence county officialsreturned from a meeting of thePennsylvania Harness Racing Commission,saying it was “a very good day for usdown in Harrisburg.” County commissionerRichard DeBlasio said, I came outof there feeling positive” about AmericanHarness Tracks meeting a Dec. 31 deadlinefor a preliminary application andobtaining transfer of the Centaur racinglicense at the next meeting of theharness racing commission.In Minnesota, former Republican statesenator Dick Day, identified by ForestLake Times capitol reporter T. W. Budigas “a colorful front man for RacingNow, agroup hoping to place video and slot machinesat Canterbury Park runners andRunning Aces trotting track,” as havinghis best chance in 12 years of trying to getthem approved legislatively. Day said aracino bill could clear the Senate, althoughhe still is 20 votes shy in the House. RunningAces executive VP and GM and HTAdirector Bob Farinella said his track was“in sympathy” with RacingNow’s efforts.Day, who tossed Running Aces out of thedeal late last legislative session, said thatcould happen again because of “flack”from northern gaming tribes and racinoopponents.In Florida, the Division of Pari-MutuelWagering issued a slot license for HialeahPark, and officials said slots could beginthere next fall, in November. That possibleopening date was announced by trackgeneral manager Randy Soth, who saidthe track would build a Las Vegas styleracino in the north portion of its grandstand,currently closed. The south portionof the grandstand is currently in usefor the quarter horse meeting that beganDec. 3 and will continue through Jan. 24.Calder Casino and Race Course is instate court challenging the slots award ongrounds that Hialeah cannot qualify undera state law passed this year.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, December 24, 2010FRANK LEAVES, STOCK SOARSWith the announcement that FrankStronach was trading control of MI Developmentsfor major racing assets includingGulfstream Park, Santa Anita,Golden Gate Fields, Portland Meadows,50% interest in the Maryland JockeyClub, AmTote, XpressBet, half interestin HRTV, and $20 million cash in workingcapital, MID stock soared 45.6% toC$28.12. Volume was low as MID said aspecial committee would review and evaluatethe proposal and give investors moreinformation “in due course.” Shares rose$8.63 to $27.69 at closing Wednesday.In another Stronach family development,Frank’s daughter Belinda announced herresignation from the board of Magna International.NY TRACKS, OTBS TO STREAMNew York tracks and OTBs have beengiven clearance by the state racing andwagering board to videostream races,starting immediately. With the new abilityto see races they are betting on, NewYork players are expected to welcome thedevelopment in telephone and Internetbetting. Daily Racing Form reported thatconsent of all OTBs and tracks broughtapproval, and wagering board presidentJohn Sabini said, “We’re very pleasedthat the major financial stakeholders inNew York racing have come togetheracting in their common best interests.”DON’T SHIP THERE JUST YETIf you were planning on shipping to Syracuse,NY, for a proposed new $100 millionfive-eighth mile harness track, betterhold your horses. For a few years. MajorRochester builder Tom Wilmot Sr., onceowner of Freehold Raceway, told Syracuse.comyesterday that his proposal tobuild a new Westin hotel in downtownSyracuse was tied to his plans for his proposedSyracuse Raceway, and he does notforesee building one without the other.The county executive of Syracuse’s Onondagacounty, Joanie Mahoney, says sheprefers a $60 million renovation of theshuttered old Syracuse hotel by BerkleyAcquisitions to Wilmot’s Westin proposal,indicating delay in the project. She saidif the Berkley group accepts an offer nextweek for $15 million in state grant moneyand $10 million in low cost financing bythe county and Syracuse, with Berkley repayingthe bonds but not the state grant,a refurbished Hotel Syracuse could openby January of 2012. Wilmot also indicateda proposed deal with Jeff Gural forVernon Downs to operate his new track“for a substantial payment” was off, andhe would seek his own license instead.A HEAVY HEART FOR XMASChristmas has been darkened by the deathof Michigan’s greatest harness horseman,Bob Huff, of cancer at 90, More on goodfriend Bob on Monday. Our best wishesto you and yours for a bright andshiny holiday.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorMonday, December 27, 2010MICHIGAN’S #1 MAN DIESThe death of Bob Huff at 90 last weekremoved one of harness racing’s mostknowledgeable leaders from Michiganand the national scene. Bob’s seeminglyrough and gruff exterior shielded a generousgiving heart and a sharp businessmind. Without formal education aftereighth grade, he built his Shiawasee Farminto a 450-acre power in the state, andsent the first Meadowlands Hambletonianwinner, Shiaway Pat, to win that inaugural$838,000 edition of the trotting classic.Founder of the Michigan 4-H programand winner of the Harness Horse YouthFoundation Service to Youth award, Bobalso authored Michigan colt stakes legislation,served on the governor’s HorseRacing Advisory Council, and was a respectedand influential member of theU.S. Trotting Association’s board of directorsfor 32 years.GO NORTH, TO MAINEThat’s the word from Casino GamblingWeb, which says everything could changein 2011 in the state of Maine. The Website says lawmakers there are consideringseveral options, despite conservative opposition,that “could make Maine one ofthe biggest growing gaming states” nextyear. HTA member Hollywood Slots Hoteland Raceway is hoping to gain tablegames, and Scarborough Downs, deniedslots by the city, is hoping to pick upthe tent and move, like the circus,to nearby Biddeford.LET’S SEE WHERE THIS GOESAn interesting pre-Christmas day story,in view of the pressures that threaten toclose the Meadowlands, says the lenderswho control the Meadowlands Xanadudevelopment have reached a non-bindingagreement with the owners of the country’sbiggest mall, the Mall of Americain Minnesota, to complete the huge project.Earlier efforts to find funding failed,and Xanadu sits isolated and incomplete,hard by the track. Three years behindschedule and with another $500 millionneeded to complete it, the latest developmentbrought cheers from chesty ChrisChristie, New Jersey’s governor. He saidhe was confident “that the developerswho created the most visited mall in theworld, due to their vision and innovation,will transform the Meadowlands into NewJersey’s very own Mall of America.”DON’T MESS WITH CHRISTINEBill Christine, whose superb racing coveragegraced the Los Angeles Times sportssection for years, is challenging a $4,000IRS court ruling against him. Bill, whoalways found interesting angles to his featurestories, has found one in the proceedings.He is accusing the judge in the caseof sleeping on the bench during variousstages of the trial. Bill filed the chargesagainst Judge Robert B. Wherry in anappellate brief with the U.S. 9th circuitcourt of appeals in San Francisco. Hesays clerks had to awaken Wherrytwice during the proceedings.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorTuesday, December 28, 2010ILLINOIS AWAITS JANUARY 3That’s when the Jan. 3-11 “lame duck”session of the legislature begins, and theIllinois House will approve or disapproveof the gaming expansion bill alreadypassed by the Senate. That legislation,SB 737, calls for racinos including slots atthe state’s six horse tracks, a land-basedcasino in Chicago, and new riverboat casinosaround the state. Springfield forecasterssay it would take two years for thenew riverboats, but Stu Brubaker of theIllinois Harness Horsemen’s Associationsays racinos could be in operation withinsix months of 737 passing the House andbeing signed by Gov. Pat Quinn, not anenthusiast for the legislation. The primemover of the bill, Senator Terry Link, aDemocrat from Waukegan, north of Chicago,warned against over-optimism of theadded gaming solving all of Illinois’ economicproblems. “We’ve been very clearabout it,” he was quoted in the NorthwestHerald. “We’re not counting on revenuefor this budget year.”CAESARS MOVES INTOCaesars Entertainment, formerly Harrah’s,has announced an agreement withDan Gilbert, the owner of the ClevelandCavaliers and founder of Quicken Loansto build and operate Gilbert’s casinosin Cleveland and Cincinnati. Two otherOhio casinos, in Columbus and Toledo,will be operated by Penn NationalGaming. The Caesars-Gilbert pairwill cost a billion bucks.HOOSIER EXITING CHAPTER 11?Reports from Indianapolis say CentaurLLC, owner and operator of HTA memberHoosier Park, could be emerging frombankruptcy early in the new year. Centaurhas filed a settlement plan with the U.S.Bankruptcy court which, if approved bycreditors by Jan. 3, would be heard bythe court 10 days later. Centaur sold itsharness license in Pennsylvania at auctionand is selling its Fortune Valley casino andhotel near Denver, two transactions thatcould raise $15 million. Bloomberg Newssays Centaur’s creditors’ committee hasreached agreement with secured lendersthat could result in an uncontestedconfirmation hearing as early as January21. Centaur’s HTA member Hoosier Parkhas been insulated from the bankruptcyproceedings and no disruptions in racingoperations are expected, according to aCentaur spokesman.ONEIDAS FATE TO HIGH COURTThe United States Supreme Court hasagreed to hear arguments on foreclosureof Oneida Indian Nation property. Thecase involves non-payment of propertytaxes on Oneida land, which includes theTurning Stone casino near Vernon Downs,and the question of whether the tribeactually exists, or if it was disbanded 173years ago by a treaty agreement signedin 1838. This marks the fourth tribeappearance before the court.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, December 29, 2010A MAN NOT AFRAID OF NJ GOVLorenzo Langford is mayor of AtlanticCity, NJ, and as such is facing the bruisingbrashness of his governor, ChrisChristie, who wants to take over the city’stourism industry. Langford is fightingback, and yesterday issued a bold challengeto Christie. “I will not allow anyperson or entity to come into this townand ride roughshod over us in an attemptto force their agenda down our throat,”he said to media, preparing them for afuller blast to come in a press conferencelater this week. “I have remained consistent,”Langford said, “in my commitmentto work cooperatively with whomever forthe greater good of Atlantic City. However,what the governor originally plannedis not what is being practiced.” Christiefirst proposed a partnership betweenstate and city. Then he backed legislationto reform casino regulations and set up afiefdom with the city to be controlled bythe state. A livid Langford also blasted apredecessor, senator Jim Whelan for notkeeping him and city officials informed ofwhat was going on in Christiedom.ANOTHER MAYOR SPEAKS OUTIn Lexington, KY, mayor-elect Jim Gray,who takes office next Monday, has madeclear he will support slots and gaming atKentucky’s racetracks. “I think we’vegot to do all we can today to support ourhorse industry,” he was quoted bypaulickreport.com. “The struggleand the loss is occurring rapidly.”POLK OKS NEW PRAIRIE LEASEHTA member Prairie Meadows Racetrackand Casino moved closer to extended lifeyesterday when the Polk County boardof supervisors voted unanimously for anew eight-year lease for the track and itsracino. Still ahead, however, is approvalby the track’s board of directors and theIowa Racing and Gaming Commission.Polk County taxpayers own the track,which is run by a non-profit board. Thecurrent lease expires Friday, and it lookslike no interruption in operations and ahappy new year on the Prairie.IN OHIO, HOWEVER, PROBLEMSPenn National Gaming hopes to breakground on its Columbus, Ohio, casinoearly in the new year, but it needs city waterand sewer service, and the city wantsthe casino to agree to annexation. PennNational is resisting, and mayor MichaelColeman says things are stalemated and“the ball is very much in their court.” Anearly agreement is likely.NEXT GOV GETS CALL IN NMEXA meeting scheduled for today by the NewMexico State Fair Commission on a newlease for The Downs of Albuquerque hasbeen cancelled. The commission says itis going to pass, and leave the decision toincoming governor Susana Martinez. Alease the commission has been consideringcalls for 25 years and an increase inthe current $2.2 million a year rental.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, December 30, 2010INSTANT DEAD HORSES IN KYA Franklin County judge in Kentuckyhas ruled, in a 17-page order, that wageringon old races on slot-like machines is aform of legal pari-mutuel wagering, andnot an illegal expansion of betting. JudgeThomas Wingate, as quoted in the LouisvilleCourier-Journal, ruled that “historicalhorse races are horse races,” and heapproved Instant Racing for Kentucky.Wingate, in ruling that such racing ispari-mutuel, said Kentucky law “does notmandate that the wagering may only beconducted on live races.” The governor,Steve Beshear, called the development aboost for horse racing in the state, butopponents, including the Family Foundation,said they still believe “you can’thave live racing with dead horses.” Racingleaders, including those at ChurchillDowns, expressed “reservations” aboutInstant Racing, and since legislators indicatethey are finished with that matterit will remain for the courts to providefurther word in what is likely to be furtherlegal challenges. The Speaker of theKentucky House, Greg Stumbo, indicatedthat slots at tracks will not be on the legislature’sagenda for the new session thatgets underway next week. “Obviously themakeup of the (Republican) Senate hasn’tchanged any,” Stumbo said, “and untilthat changes...I don’t think the GeneralAssembly, or at least the House, is goingto act on anything in that regard.”So that takes care of slots for now.GOV. PATERSON’S FINAL WORDIn 74 pages of carefully chosen words, theoutgoing governor of New York, DavidPaterson, has sent his controversial butsigned deal with the Stockbridge-Munseeband of Wisconsin Mohican Indians tobuild a casino in the Catskills to the U.S.Department of the Interior for approval.The deal involves a land swap. New Yorkgives the tribe New York’s blessings on 333acres for their casino, and the Mohicans inreturn give up their claim to 24,000 acresof land in New York’s Madison Countythat they have contended historically andlegally is theirs. The compact, signed byboth parties, will provide the state witha sliding scale of slot machine revenue,starting at 18% initially and graduatingup to 25% in five years.NYRA BACK ON MAJOR NY TVThe New York Racing Association andcity of New York have reached an agreementthat puts NYRA racing back onTime Warner and Cablevision in the city.The channels will show racing coveragefrom 11 a.m. to 8 p.m., which will coverracing from Santa Anita with the timedifference, as well as NYRA racing live,commentary and handicapping, and simulcastingfrom around the country.FINLEY WINS MAJOR AWARDHTA joins his many friends and admirersin congratulating Bill Finley on his MediaEclipse award for writing.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorFriday, December 31, 2010This is not exactly news, butthe year is ending quietly anduneventfully, for which we areboth pleased and grateful. Ithas been a grim, tough 365personally and for the sport as awhole. Given that, the best wecan do is to wish you a healthy,peaceful and profitableHAPPY NEW YEARWe’ll see you in 2011 for anotherwhirl.