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, October 21, 2010NYCOTB, CREDITORS AGREEThe New York City Off-Track BettingCorporation and its creditors havereached what New York Governor DavidPaterson calls “an historic agreement”that will keep the betting organizationafloat. OTB and its creditors’ committeereached an accord under which NewYork tracks will forgive some $65 millionowed to them by OTB and in return willtake over NYCOTB’s advance deposit accountwagering operations, which havebeen growing in an otherwise bleak market.Labor unions will be giving up some550 jobs under the agreement. Gov. Patersoncalled the agreement “a tremendousachievement” that will help maintainmore than 17,000 jobs in New Yorkthat are directly supported by the racingindustry and many thousands more supportedby economic activity generatedby horse racing. New York horsemen’spresident Joe Faraldo was less optimistic.He put the number of people directly employedas a result of racing at 40,000, andhe predicted, “While the governor andNew York City OTB may have reachedagreement with the creditors’ committee,they are going to find it much tougherto convince the people of New York stateand their legislators that this proposalas it now stands makes any kind of longterm sense.” The agreement faces somelegislative changes and approval ofthe federal bankruptcy judge overseeingOTB’s reorganization.HERE AND THERE IN RACINGCentaur’s harness racing license in Pennsylvaniagoes on the auction block today,with results not likely until the middle ofnext week, according to the Beaver CountyTimes. If a sale is approved by the unnamedNew York financial firm handling it, andby the bankruptcy judge overseeing thematter, the winning bidder will have untilthe end of the year to apply for Centaur’slicense. If a sale is not approved, the licensewill revert to the state harness racingcommission, and other firms could applyfor it....In western New York, the SenecaIndian Nation has 30 days to reach accordwith New York state over a disputed $214million in revenue-sharing payments. Atthe end of that time the matter will go tobinding arbitration, and the Senecas saythey have “adequate resources” to reacheither a negotiated settlement or a bindingarbitration decision....In Maryland, PennNational’s Hollywood Casino in Perryville,the state’s first casino under the state’snew gaming laws, generated more than$2 million in revenue during its first fourdays of operation at the end of September,with its 1,500 slots averaging $346 a day.The state had predicted average handleof $210 a day per machine....Genting Malaysia,basking in the glow of its 30 yearcontract to build and operate Aqueduct’sracino in New York, and flush with itsSingapore success, has announced it willbuild a casino in London in time for the2012 Olympic Games there.