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, EditorThursday, August 26, 2010THE SPEAKER SAYS “WHOA”The California Racing Board’s wild rushtoward exchange betting, which wouldgive Betfair the first U.S. foothold it haslong sought, was brought up short yesterdayby the Senate President pro tem,Darrell Steinberg. His office announcedthat the confirmation of four members ofthe California Horse Racing Board, includingits chairman, Keith Brackpool,and its much publicized “10” member,Bo Derek, along with members David J.Israel and Richard A. Rosenberg, wouldnot be considered at the moment. Steinberghas been reluctant to approve confirmationsthat would affect a new governorwhen Arnold Schwarzenegger leavesoffice in January. A spokeswoman forSteinberg said merely that “The pro temneeded more time to think about the appointment,”but Capitol Weekly in Sacramentoreported that Brackpool “nowfinds himself in the middle of a bitter fightover AB2414, a bill authored by AssemblySpeaker John Perez, that would makehuge changes in horse race betting in thestate.”Robert Hartman, general manager ofGolden Gate Fields, dropped fuel on thefire when he said a statement of Betfair’sStephen Burn, Betfair’s principal figureheadin America, was not true. Burn hadagreed with racing board Executive DirectorKirk Breed that “All of thestakeholders were involved in theboard’s decision to approve exchange betting.”Hartman said that was not so, thathe was at the board’s August 19 meetingand the idea of putting exchange bettinginto the bill was never raised. He added,“There was never a conversation regardingexchange wagering. In the past therewas some discussion on the topic, but therehas never been any lengthy exchange regardingthe specifics of exchange wagering.”The Los Angeles Times reportedthat “Republicans have a number of otherproblems with the bill, most notably thatit seeks to implement a major policy initiativewith only one week left in the legislativesession. This bill is the antithesis oftransparency and open government.”CONTROVERSY IN KY, TOOThe Kentucky Horse Racing Commissionalso is at the center of controversy,its proposed out-of-competition testingprogram being challenged by horsemen,veterinarians and racing officials as goingtoo far. The commission’s attorney agreedthat some of the proposals need to be addressed,saying, “It’s not our intent to holdanyone responsible who isn’t.” Commissionmember Alan Leavitt argued thatpenalties, which include suspension for upto 10 years, need to have stiff minimumsas well. Leavitt said at a public hearingat Keeneland, “Blood-doping is well onits way to destroying our business,” oneof the strongest statements by a harnessracing leader at any time.