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, August 30, 2010ANOTHER D-DAY FOR NYCOTBAnother day, another crisis for embattledNew York City OTB. Its new $125,000 amonth turnaround specialist, Greg Rayburn,has set tomorrow as a deadline foracceptance of his bold new plan for savingthe ailing betting giant. Included in theplan are previsions for employees to signup for early retirement to cut costs; retentionand refurbishing of 50 of the city’s 61OTB parlors; possible voiding of unioncontracts, which might be accomplishedunder OTB’s bankruptcy protection if theproposals are not accepted; turning overInternet and phone account betting to aconsortium of New York’s tracks; and reductionof staff by 400 employees. Rayburnsays these moves, if accomplished,would turn New York City OTB into “aviable structure under which it can prosper.”According to Bill Finley’s story inthe New York Times, Rayburn says rejectionof his proposals by creditors, unionofficials or state lawmakers could leadhim to close the corporation or slash wages.He wants to retain the OTB neighborhoodshops which he says “have becomesocial clubs that provide us with a significantpiece of handle,” and predicted thatif the tracks take over account wageringthat $150 million a year business could beprofitable for them, without expenses andother inefficiencies that OTB faces. Debtsto NYRA, Yonkers and others will accountfor $60 million by year’s end,Rayburn said.Finley quoted Rayburn as saying he wasoptimistic about his plan and that the statusquo was not an option. He told Finley,“What I have tried to make clear tothe constituents I have dealt with is thatpeople should not sit back and expect thestate will bail out OTB to keep OTB inbusiness. There might be people out therewho still harbor those thoughts. It is foolishto think that we wouldn’t liquidate ifwe can’t get one of these plans to becomea reality.”AROUND THE TRACKS....Forty-seven applicants are seeking appointmentby Ohio governor Ted Stricklandfor seven $60,000 a year jobs to thenew Ohio Casino Control Commission.By law Strickland must include a lawyer,a certified public accountant, an experiencedlaw enforcement and criminal investigator,and no more than four membersfrom one party. The Cleveland PlainDealer editorial board today urged thegovernor to avoid appointing politicallyactive appointees, saying, “The last thingOhio needs is a politically wired regulatorybody, or -- almost as bad -- one thatappears to be wired”....HTA member RunningAces Harness Park in Minnesotaclosed its season on a high note Saturday,with a crowd of some 4,000 and a new livehandle record....Centaur Gaming, withagreement from its creditors, is askingthe state racing commission for a twoyearextension to sell its Pennsylvanialicense.