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, EditorTuesday, November 2, 2010WE’RE NOT FOR SALE - LAURELThat was Tom Chuckas’ message thismorning, as the president of the MarylandJockey Club responded to DavidCordish’s vow to buy Pimlico and Laurelif Chuckas made good on his promiseto close the tracks if they lost today’sAnne Arundel casino election. “TheMaryland Jockey Club facilities are notfor sale,” Chuckas said. “As I stated Fridaymorning, if Question A is approved(which would give Cordish the go-aheadto build out the license he already has forthe Arundel Mills Mall) the Bowie TrainingCenter will close, Laurel Park willcease racing activities with live racing inMaryland reduced to 40 days at PimlicoRace Course. These are the facts. LaurelPark will be developed, not sold, accordingto an existing development plan whichincludes mixed use commercial and residential.David Cordish knows that. Thisis just another in a long list of his misrepresentations.”Cordish told the press thatif that happened, he would buy the MJCtracks when the state took them over byeminent domain proceedings.THE BEAUTIFUL AMERICANThat was the scene in Melbourne, Australia,yesterday, as the American-bred,French-owned Americain won the $6 millionMelbourne Cup at Flemington RaceCourse. Sold to French interests last Februaryfor $225,000, he became thefirst French-owned horse to winthe Cup in its 150 years of racing.Trained by Alain de Royer-Dupre to hisfifth straight victory, Americain surgedfrom third in the final furlong to rundown favored So You Think, who faded tothird behind the winner and Maluckydayunder a patient ride by Gerald Mosse.A 12-1 longshot in the 23-horse, 2-mileclassic, Americain was a hugely popularwinner with the Cup crowd of more than110,000.THE MARES WHO NEVER WEREA U.S. bankruptcy court in Lexington,KY, has ruled that it is advisable to havemares on hand when you enter into complicatedlease arrangements for them.Gastar Exploration, a publicly tradedcompany, apparently came up shorton having mares to fulfil what has beenruled a fraudulent leasing program, andhas agreed to a settlement of $21.15 millionto settle that aspect of very involvedlitigation. The total liability appears tobe more than $500 million, with leasesfor thoroughbred mares backed by $40million in purchases of well-bred individualsat the Keeneland auction. Thescheme exploded, or imploded, when theIRS ruled that writeoffs promised investorswho were told they could claim millionsin tax writeoffs for leasing the mareswere fraudulent. ClassicStar farm operatorsDavid Plummer and his son Spencerand two other individuals, Terry Greenand John Parrott, earlier pleaded guiltyto $200 million in tax fraud and eachface up to 5 years in federal prison.