HARNESS TRACKS OF AMERICA Executive Newsletter

HARNESS TRACKS OF AMERICAIS ANYONE SURPRISED?The oft-postponed Magna Entertainment Groupauction of Pimlico and Laurel in Maryland,which had been scheduled once again for tomorrow,will not take place. Magna says it could findno satisfactory “stalking” bid to start the auction,and instead will sell it essentially to itself, ormore accurately to its parent, MI Developments.Despite heavy losses, Frank Stronach decided notto give up the two tracks and Pimlico’s proudestpossession, the Preakness. MID vice chairmanDennis Mills said in a press release, “Weare excited about the development opportunitiesrepresented by the land owned by the MarylandJockey Club. The land is comprised of 565 acresin three major properties well-located in theBaltimore-Washington area.” Magna attorneysreportedly said Monday the auction still was on,but at least some of the bidders were notifiedby e-mail yesterday that it had beencalled off.Executive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorWednesday, March 24, 2010NH SENATE SLOT VOTE TODAY One bitter bidder, Jeffrey Seder, managing directorof Blow Horn Equity, called the Magna-In what is predicted to be a close vote, the NewHampshire Senate votes this afternoon on allowingup to 17,000 video slot machines at six locaroomsecret deals” and told the Baltimore SunMID arrangement “another example of backtionsin the state, including HTA member RockinghamPark. The Senate did not plan to wait on tracks) in 35 years.” As part of the announcedthat Magna “hasn’t put in a new ashtray in (thea “quality of life” study, commissioned by Gov. arrangement, MID will pay unsecured creditorsJohn Lynch but not due until May, or for a House $89 million, instead of a previously announcedvote, still to come. The governor has indicated $75 million promised as settlement for a creditors’lawsuit that had claimed Stronach proppedhe will veto any slots bill unless convinced “byoverwhelming evidence” that the state’s quality up Magna with equity infusions disguised as securedloans. MID also will pay Joe DeFrancisof life will not be adversely affected. Rockinghamalready has lost its 2010 live racing season, and his sister Karin and other former owners ofwith no funds for a state racing commission to the tracks $4 million for their future slots rightsregulate the sport. As the bill reads heading for and another $1 million, arranged in recent days,the Senate vote, the first $50 million of revenue because the properties were selling for less thanfrom slots license fees, likely to be from Rockingham,would have to be used to restore health and ment of some $13 million by MID to PNC Bank,$39 million. The transaction also includes a pay-welfare cuts already in place. Any House vote, which holds a lien on Magna’s Maryland racinglike today’s Senate vote, is expected to be close. assets, and another $6 million to pay holders ofunsecured claims against the Maryland JockeyClub. A DeFrancis lawyer said the DeFrancismillion dollar sign-off had been made withThursday’s scheduled auction “a significant partof the consideration and the inducement.”SENATE SLOT ACTION IN KSThe Federal and State Affairs Committee of theKansas Senate passed by a 5-4 vote this morningand sent to the full Senate a bill that would boosttrack revenue from slots at one dog track andthe Woodlands horse and dog track in KansasCity from 40% to 58%. Both tracks currentlyare closed, as is Wichita Greyhound Park.KY’S BILL NAPIER DIES AT 63Bill Napier, longtime executive director of theKentucky Harness Horsemen’s Association, hasdied at 63 after a long fight against pancreaticcancer. Napier, a former Lexington detective,had headed the horsemen’s association formore than 20 years.