HARNESS TRACKS OF AMERICA Executive Newsletter

HARNESS TRACKS OF AMERICASCI GAMES SELLS RACING DIV.Scientific Games is selling its racing division toEngland’s Sportech for up to $83 million, puttingthe English firm in the thick of American parimutuelracing. In making the purchase, Sportechis reaching out to Playtech, a gaming softwarefirm, which says it will buy 19.88 million sharesin the new group, giving it a 9.99% stake, and willprovide new products for the venture. ScientificGames will retain a 19.99% stake in the enlargedgroup. Sportech chairman Piers Pottinger toldReuters, “This is a transformational transactionfor Sportech. It catapults the business onto theinternational stage.” Sportech CEO Ian Penrosewas just as enthusiastic, saying, “This transactionwill provide Sportech with a multi-sport,multi-channel gaming business. The combinedentity, which will have global reach and will beone of the leading pari-mutuel product and systemsproviders, will optimize its existing and newtechnologies to capitalize on worldwide growthopportunities.” Scientific Games also will gainneeded financing and executives Lorne Weil andBrooks Pierce will play a role in the new company.Sci Games will pick up some $33 millionin cash, $10 million in deferred cash in 2013, and$32.1 million in stock shares.HIPPIQUES IS BANKRUPTPaul Delean, writing in the Montreal Gazette,started his story today with this: “AttractionsHippiques has been put out of its misery.” Its1,000 or more unsecured creditors, however, stillare miserable, as nothing remained for them ofthe $400,000 in liquidation of equipment andfixtures at the track, formerly known as BlueBonnets, a longtime major player on the NorthAmerican harness racing scene. A proposal toshare any proceeds with creditors from a Hippiqueslawsuit against Loto-Quebec andthe provincial government was doomed,Delean wrote, when the lottery and theracing group SONACC said no.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorThursday, January 28, 2010DeLean said Quebec, currently without horseracing, could get some from owners and horsemenwho have obtained a provincial permit torace this spring. They have asked the CanadianPari-Mutuel Agency to authorize Internet bettingin Quebec in partnership with WoodbineEntertainment Group.DELAWARE TRIES HIGH COURTThe state of Delaware has filed a 106-page appealto the U.S. Supreme Court, contending thata lower court overstepped its authority by limitingsports betting in the state. The Delawarelawyers said the 3d U.S. Circuit Court of Appealshad committed several legal errors whenit said the state could offer no more in sportsbetting than it did in a 1976 experiment. Theycalled the case “a poster child for the propositionthat federal appeals courts should rarely converta preliminary injunction appeal to a merits appeal.”Racinos at HTA members Dover Downsand Harrington Raceway and the one at DelawarePark are paying up to $50,000 each for legalfees covering the state’s filing.ORC FIRST TO ACT ON BROOKSThe Ontario Racing Commission, in its usualpace-setting role, has become the first racing authorityto take action on the Brooks family andits Bulletproof Enterprises and other racing entities.The commission has ordered all tracks inits jurisdiction to immediately report and hold,freeze and maintain all funds, purse accountsand other monies related to Terry, Jeffrey, Andrewand Victoria Brooks and their BulletproofEnterprises, Perfect World Enterprises, VA Enterprises,Goldfinger Enterprises, Seize the DayIndustries and VAE LLC. The actions come afterDavid Brooks, founder of most of those racingentities, went on trial on Long Island on chargesof looting his DHB company of millions and failingto report millions more hidden from thegovernment in England and elsewhere.