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, EditorWednesday, Sept. 22, 2010PENN NATIONAL IN TEXASPenn National Racing, ever on the move,now has taken a big position in Texas,forming a joint venture with Sam HoustonRace Park to own and operate the Houstontrack and two others. Penn Nationalalso will own and operate Valley RacePark in Harlingen, Texas, and a proposednew track in Laredo under the joint ventureagreement, all subject to approvalby the Texas Racing Commission. PennNational is 50% partner in the undertaking,which includes 323 acres of land atthe Houston site, 80 acres at Valley Parkand an option on 135 acres in Laredo.Penn National boss Peter Carlino said themove was “another step” in the company’slong-term strategy to diversify andgrow its presence in key markets, with aneye to gaming in Texas. Houston is thefourth largest city in the United States.The Valley Park property, a dog trackand simulcasting facility, opened 20 yearsago and has been owned by Sam Houstonsince 2000.BIG QUEBEC SCORE FOR IGTIn a major gaming equipment development,the province of Quebec has awardedcontracts to International Game Technologyof Las Vegas and Canadian-basedSpielo to replace 12,000 VLTs in Quebec.Spielo also will provide Lotto-Quebecwith a central operating system for thegames. The province will spend$265 million to replace the games,hopefully by 2012.SIRIUS TO DO JUG TOMORROWIn an interesting and forward-lookingdevelopment, the Indiana StandardbredBreed Development program will sponsorcoverage of tomorrow’s Little BrownJug on satellite radio Sirius 126 and XM243, and do it in major league fashion.Veteran racing commentator Dave Johnsonwill host the show, with Peter Kleinhansand Darin Zoccali as analysts. Theshow will be on the air from 5 to 7 easterntime tomorrow, and if there is a raceoffthe air time will be extended to cover it.The Indiana breeders are using the showas a vehicle to promote its yearling saleSaturday, an important event given thenew drawing power and purse structureof Indiana’s slot-fueled racing.The entire Jug day card also will be carriedby Delaware radio station WINF(101.9 FM) which will stream it aroundthe world, according to Jug officials.NY TO PROTECT ITS RACINGA new rule which New York racing boardChairman John D. Sabini calls “preferentialbut not exclusionary” has beenpassed to make sure New York harnessracing guards its regulars against invasionfrom those shipping in to take advantageof slots-infused purses. The rule allowstracks to offer restrictive NY races,as long as it cards at least one equivalentopen race on the same or next race date.Sabini says the board may widen the ruleto apply to NY thoroughbred racingas well.