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, 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.