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, August 10, 2010ROSECROFT WINS ONE IN MDA district court judge in Maryland hasgiven Rosecroft Raceway a green light toproceed with its lawsuit charging conspiracyand other charges against the state’sthoroughbred industry. The defendantshad asked the judge to drop nine chargesagainst them, but he denied their requestand dismissed only two. Cloverleaf Enterprises,the owner of Rosecroft, allegesthat the runners in the state put them outof business by colluding and asking otherrunning horse tracks to refuse to send simulcastingsignals to Rosecroft. Cloverleaftold the judge the denial was timed tooccur just before the biggest racing day ofthe year, the Kentucky Derby. The judge,Richard D. Bennett, ruled that Cloverleafhas sufficient evidence to move forwardon the seven charges he approved. “Cloverleaf’sallegations are sufficient to statea claim both the Maryland Jockey Cluband the horsemen engaged in concertedactivity with out-of-state racetracks byrequesting that they stop sending theirsimulcasting signals to Rosecroft,” JudgeBennett wrote. “There is no dispute thatby Kentucky Derby day at least 17 outof-statetracks had ceased sending simulcastsignals to Rosecroft,” he found. Thedefendants argued that the tracks ceasedsending signals because Rosecroft wouldnot pay millions due them for signals theyhad sent. Rosecroft wanted the feereduced, but the MJC refused, andRosecroft closed down in July.NJ SENATOR BLASTS REPORTAs a rhetorical civil war between northand south widens in New Jersey, a Democraticactivist senator from northernUnion County is proposing two possiblesolutions to the battle by helping both AtlanticCity casinos and Jersey’s four racetracks.Senator Raymond Lesniak, whoalso has proposed sports betting, whichis illegal under federal law, is suggestingusing intrastate online gaming to fundboth casino restructuring and support forracing, without the casino subsidies thathave existed and been a sore point withthe casinos. Lesniak thinks gross revenuescould reach $210 to $250 million,producing $47 to $55 million for the stateand providing 1,586 to 1,903 new jobs.He proposes using some of the money forpurse supplements and sires stakes, alongwith a sales tax exemption for sire andbroodmare transactions. He blasted theHanson report recommending closing ofthe Meadowlands, saying, “Legislation Ihave introduced, S-490, to authorize internetgaming from servers located in AtlanticCity, needs to get moving now. Itwill produce more revenue for reinvestmentin Atlantic City, much needed revenuefor the state, keep our valuable racingindustry alive, and create thousandsof jobs for our residents.” Lesniak saysthe Hanson report lacks a source of fundsfor needed capital developments. Howabout a consortium of AC casinos runningslots at the Meadowlands?