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, EditorFriday, March 5, 2010DOUBLE BLOW FOR MICHIGANHarness racing in Michigan has suffered a disastrousdouble blow. First the Michigan GamingControl Board, now running racing with the departureof the former racing commissioner’s office,announced draconian cuts in the number ofracing days, harness and thoroughbred, in thestate in fiscal 2009-10. Total racing days for theperiod have been cut from 261 to 112, cappinga decline in five years from 548 dates. NorthvilleDowns has been allocated only 11 more racingdates in the current fiscal year ending Oct.31, Hazel Park, which once raced 168 dates, hasbeen cut to 62, and Pinnacle Race Course, thestate’s new thoroughbred track, has been slashedfrom 84 to 31. Michigan horsemen are workingto challenge the cuts and renegotiate the date allocation,ordered because of the Gaming ControlBoard’s budgetary problems.On the heels of the drastic date cuts, the MichiganState Police announced a joint investigation,with the Gaming Control Board and OntarioRacing Commission, into an alleged race fixingoperation involving up to 30 drivers, trainers,owners and gamblers at Hazel Park, NorthvilleDowns and Sports Creek Raceway. The statepolice emphasized that the three tracks werenot involved and “have been working and cooperatingfully with investigators and are not underinvestigation.” Warrants were obtained forsearches yesterday at homes in southeast Michiganas part of the investigation, but the state policewithheld further details for now and askedfor information from anyone with knowledge ofthe alleged plot. Race fixing is a felony, in Michiganand elsewhere.NO EXEC NEWS NEXT WEEKWith HTA’s staff involved in next week’s annualjoint meeting with TRA in Indian Wells,California, publication of Executive Newswill be suspended next week.CAPPELLI SUED, BUT DEFIANTFor a man who has pretty much had his ownway at every step of his grandiose project in NewYork state, builder Louis Cappelli is determinednot to let a little thing like a $162.5 million lawsuitbother him. That is what EntertainmentProperties Trust of Kansas City, a multi-billiondollar company traded on the New York StockExchange, is asking in its suit filed in federalcourt there, saying no payments on a $225 millionloan have been paid since January, 2009.Cappelli personally guaranteed the loan, butsays it is guaranteed fully by the land value ofhis Concord hotel property. He also said he willsettle with two dozen contractors who have filedliens against Cappelli’s companies for work donebut unpaid. Cappelli told the Middletown TimesHerald-Record, “The liens on the project are predominantlyfrom steel and aluminum contractorsthat prefabricated materials prematurelyfor the project and without signed contracts.”He said once the project financing closes, “thereare sources of money to pay all of the vendors anequitable amount of money. There are no foreclosureor bankruptcy proceedings. The onlything for the future is to build the facility that Ihave been trying to do for 10 years.” The wordyou are looking for, folks, is chutzpah.MORE INTERESTING NUMBERSThe former mayor of Birmingham, Alabama,Larry Langford, who was run out of office afterbeing convicted of bribery, won 555 electronicbingo jackpots over three years at hisfriend Milton McGregor’s VictoryLand Casino,reports from Birmingham say. In oneday two years ago, he won 36 jackpots worth$96,000, and his total winnings from 2006to 2008 came to some $1.5 million. Langfordis being sentenced today for his briberyconviction, and told the Birmingham News,“I gamble a lot, everybody knows that.But I don’t remember winning like that.”