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, 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.