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, 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.