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 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.