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, February 9, 2010POWER OF THE PRESSThe relentless pounding by the New York Postand New York Daily News has brought downtheir first victim in the Aqueduct racino scandal.Darryl Greene, who pleaded guilty to misusinghalf a million dollars in public funds 11 yearsago, dropped out of the Aqueduct EntertainmentGroup and took his tainted Darman Groupwith him. Greene was complying with AssemblySpeaker Sheldon Silver’s demand that nokey members of the winning group could havecriminal convictions involving fraud, theft, misappropriationof funds or tax evasion in the last15 years. The fact that Greene’s conviction came11 years ago indicates that Silver’s condition forapproving Gov. David Paterson’s choice of AEGmay have been based on more than chance, andthat Silver may have known of Greene’s background.Greene said in a statement that he didnot want to disturb the award to AEG.The prospect of endangering the huge award ofthe Aqueduct racino project also brought downchances of Senate president Malcolm Smithsharing in the rich returns. AEG announcedthat Smith will never be given a job with AEGor its related companies. AEG partner JeffreyLevine, the CEO of Levine Builders, who willhelp build the racino, announced that “We canunequivocally state that Sen. Smith nor any governmentofficial involved in this process will everbe employed by Aqueduct Entertainment Groupor any of its partners, investors or affiliates.”Paterson, meanwhile, is under savage media attack,with rumors that he was considering resigningthe governor’s job. Paterson vigorouslydenied that, as well as reports of sexual misconduct.He had confessed to earlier extra maritalaffairs when he was elected. New York’sGothamist reported that the governor“was gnashing his teeth” over the reportsand “lashing out at aides.”MAINE GOV NIXES EXPANSIONGovernor John Baldacci of Maine says he willnot approve any expansion of gambling in hisstate. Baldacci spoke after HTA member HollywoodSlots began asking lawmakers to considertable games, a move already on the way in Pennsylvaniaand about to be in Delaware. Baldacci,in announcing he would veto such legislation,said, “What you have now in Bangor was votedon by the people of Bangor and was voted on bythe people of Maine. The percentages, all of this,was part of a referendum. Any changes in theway that it operates, especially in this particulararea, need to be approved by the people.”MORE ON SPORTS BETS IN NJA New Jersey Senate committee has approveda proposed constitutional amendment to allowsports betting at Atlantic City casinos and NewJersey’s three racetracks. A sister proposal wasto be considered in the Assembly, but was postponedafter Atlantic City Rep. Vincent Polistina,carrying water for the beach casinos, announcedhe would propose changes limiting the changes tocasinos but not racetracks. The proposal passedthe Senate State Government, Wagering, Tourismand Historic Preservation Committee 4-0,and sends the bid for a constitutional amendmentto the full Senate for consideration. All ofthis effort, and that in other states, ignores thefact that federal law prohibits such wagering,except in the four states -- Nevada, Delaware,Oregon and Montana -- where sports betting isgrandfathered by U.S. law. Happily, a voice inthe wilderness arose. Assemblywoman CarolineCasagrande, a Mounmount-Mercer Republican,called for any such proposal to include horse racing.She said, “That industry is under the sameintense competition as the casinos.”LAST CHANCE FOR HYATTIf you plan to join us at the joint HTA-TRAmeeting, call Jen Foley at HTA now.