HARNESS TRACKS OF AMERICA Executive Newsletter

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.