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, January 6, 2010SORRY: NO SALE THIS WEEKFor those waiting breathlessly for the sale ofLaurel Park and Pimlico in Maryland, longscheduled for this coming Friday, no sale. It nowhas been postponed until Jan. 21, after Marylandlawyers argued in a court filing that Magnahad not complied with an agreement promisingthat all six bidders would have to promise tokeep the Preakness, second leg of thoroughbredracing’s Triple Crown, in Maryland. Magna’slawyers said all six bidders had agreed to that,but Maryland’s lawyers were looking for signedwritten agreements to that effect, which have notyet been received.Yesterday the judge in the case, Mary Walrath,rejected arguments from attorneys representingformer Maryland Jockey Club sibling owners,Joe and Karen DeFrancis, and others, who contendedthey have exclusive rights to slot machinegambling at Laurel Park, under a 2002 agreementin which Magna gained its ownership positionin the two tracks. The DeFrancis team nolonger has a slots license, and lawyers arguedsuccessfully that because it doesn’t that part ofthe 2002 agreement no longer exists. Judge Walrathruled that nothing in which the DeFrancisparties and their LLC can claim an interest isbeing sold at auction, and that Magna thereforecan void the agreement. She said, “I construethe contract to mean that any license or othermeans by which the debtor might be able to operatean alternative gaming facility was to beconveyed to MV LLC. It is clear the debtor doesnot have any such rights currently.” It appearsthat the only way DeFrancis can recapture anyslots rights is if he is the winner in the upcomingauction, now two weeks away.TIME FOR RESERVATIONSIf you have not made your HTA hotel reservations,Jen Foley awaits to oblige.RULINGS IN ONTARIO, TOOThe pace of justice in Canada apparently is nofaster than in the U.S. The Ontario Racing Commission,acting on a 2006 proposed order, hasissued a release dated yesterday, Jan. 5, 2010,dismissing a motion to stay filed by lawyers forDaniel Waxman and Vandalay Racing more thanfour and one-half years ago. The original proposedorder was issued on May 10, 2006, callingfor five years suspension and a fine of $100,000Canadian for violation of the hidden ownershiprule. Waxman and Vandalay appealed nine dayslater, on May 19, 2006. An ORC panel heardthe appeal on January 26, 2009, with subsequenthearings January 27 and 28 and May 4 and 21last year. An attorney for Waxman and Vandalayfiled a motion staying the proceedings for“excessive delay” and failure to make “full andcomplete disclosure” or, as an alternative solution,for further disclosure. Upon hearing evidencefrom seven witnesses, a release was issuedyesterday saying the commission panel had dismissedthe motion to stay filed by Waxman andVandalay.AND ONE MORE, IN NYBloodhorse.com correspondent Tom Precious reportsthat the New York Racing Association hasfiled a lengthy brief in federal court arguing thatthe bankruptcy petition by the New York CityOff-Track Betting Corporation should be tossedout. NYRA is the NYCOTB’s second largestcreditor behind Yonkers Raceway, and NYRA istaking the position that OTB failed to negotiatewith any of its creditors before filing for Chapter9, and that it is using the bankruptcy “as a maneuverto try to get its way on its long-stalled legislativeagenda at the state capitol.” NYCOTB,an HTA associate member, would not commenton the action, but it has consistently charged thatthe current system of payments is archaicand unworkable.