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, EditorFriday, July 16, 2010“EVERYTHING ON THE TABLE”That’s what Gov. David Paterson’s mainman said about New York City OTB, nowbeing pursued by a number of would-beoperators, including unnamed harnesstracks. Larry Schwartz, the organization’snew chairman who also has beenchief of staff for Paterson, said he believes“the only way New York City OTB survivesis if somebody takes it over or wecreate a partnership.” The New YorkRacing Association, owed double-digitmillions by OTB, seems a likely candidate.Schwartz said he was moving “atwarp speed” to reorganize the company,and his $125,000 a month turnaroundspecialist, Greg Rayburn, now presidentof NYCOTB, is on hand and working.Rayburn said cash flow is the answer, callingcash oxygen, and saying he needed tomaximize it to make OTB viable. He alreadyhas terminated some high level execsand plans to close branches with negativecash flow. Noting that the companyis living on borrowed time, Rayburn said,“Before we go out and start negotiatinga plan and a vision, we have to do everythingwe can on the internal things wecan control.” Schwartz agreed, saying,“The corporation is in bankruptcy, andwe’re not going to get out of bankruptcyunless we restructure and reorganize.Part of that is reducing costs, eliminatingthe inefficiencies.” He said at least11 branches would be closed in thenext one to four months.JUDGE AMENDS HIS BIG A TROThe New York Supreme Court judge whoordered a temporary restraining orderbarring further action on the Aqueductracino franchise has amended his order,partially vacating the prohibition of thestate Lottery Commission from continuingits evaluation review of Genting, theAsian gaming power, which is the onlycandidate left after the last two others stillstanding -- Penn National and SL Green-- were disqualified for not meeting Lotteryrequirements.TIMES EDITORIAL BLASTS OTBThe New York Times fired an editorial blastat OTB this morning, concluding thatif the Schwartz -Rayburn team doesn’tcome up with a workable plan quickly,“maybe the best thing the state can dois recognize this is a failing business andshut the city’s OTB parlors for good.”FASTEST MLANDS PACE LIKELYA standout highly competitive field of10 3-year-old pacing colts seems likelyto establish a new speed record tomorrownight in the $1 million MeadowlandsPace. Rock N Roll Heaven, the morningline favorite, won his elimination lastweek in 1:47.3 and One More Laugh wassecond, timed in 1:47.4. Rockin Image issecond choice in the morning line.GOT TO LIVE SOMEPLACESo Steve Wynn has bought a 5,500 squarefootduplex at the Plaza in New Yorkfor a reported $23 million plus.