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, EditorMonday, March 29, 20101,300 GOING, EXECS PASS PAYThings are grim on Broadway, where New YorkCity Off-Track Betting corporation went into crisismode, threatening to close its 66 betting shopsin the city. Pink slips went out to more than 1,300employees, and president Ray Casey announcedthat executives and expensive consultants wouldforego pay until New York’s sluggish legislaturetakes some action to help the dire situation. “Inthe days ahead,” Casey said, “over 1,300 hardworkingOTB employees will receive terminationnotices in the mail because there remains noconsensus on the legislation required to keep thisvital economic engine alive. Until a compromiseis forged that saves these jobs, we will suspendour pay.” It seems likely that “the legislation required,”if passed, will not be to the liking of NewYork racetracks. Yonkers Raceway and the NewYork Racing Association already are looking athuge losses as OTB struggles in Chapter 9 bankruptcyand its cash position deteriorates. EvenNew York’s besieged governor, David Paterson,called for the legislature to “stop the cat calls andget to work.” The state Senate was scheduled totake up an emergency budget plan today.KY ANSWER: HIT THE PATRONOn straight party lines, the Kentucky Senatepassed, 21-17, a bill to raise purses by addinga 1.5% tax on advance deposit wagering at thestate’s racetracks. The tally saw all 20 Republicansand 1 Independent vote for the measure andall 17 Democrats oppose it. KEEP, the KentuckyEquine Education Project, issued a statementsaying, “We are astounded that Senate Republicanshave once again ignored the pleas of thehorse industry to help level our competitive playingfield, and have instead chosen to pass a taxincrease on our struggling signature industry.”Former governor Julian Carroll denounced themove. Senator Kathy Stein asked, “Whatare we doing?” and spokesman JohnAsher called it “disappointing.”NYRA MAKES DEEP CUTS, TOOReacting to the demise of Aqueduct EntertainmentGroup as casino operator at Aqueductand financial losses as a result of New York CityOTB’s bankruptcy, the New York Racing Associationhas terminated 12 staffers who were earninga total of $1.4 million a year. NYRA did notrelease names, citing privacy, but reports saidJohn Ryan, a senior VP and chief administrativeofficer, headed the list, losing his $295,000a year job. Others in the purge were Ryan’ssecretary Gina Toner; head of group sales DebbieSolomine; director of purchasing Mary JeanCoscia; and Saratoga operations manager KevinGremillion. NYRA president and CEO CharlesHayward called the firings “a difficult, but unfortunatelynecessary decision that was dictatedby the current economic downturn and NYRA’scurrent challenging financial situation.”NH GOV PLANS TO BLOCK LAWDemocratic Gov. John Lynch of New Hampshire,asked if he planned to veto the slots bill passedlast week by the state Senate, told reporters, “Iwill do what it takes to have it not become law.”The New Hampshire House still has to pass it.NOW FOR SOME GOOD NEWSA glowing story on Mohegan Sun at PoconoDowns boosting the local economy and details ofits big upcoming 12-race Breeders Crown Octoberfestwas featured in yesterday’s Wilkes-BarreTimes Leader WEEKENDER. Writer S. JohnWilkin said the track’s racino had been overshadowingits racing by helping the local areaeconomically, but pointed out that Pocono nowis offering $150,000 a day in purses, giving itmajor league harness stature. Pocono’s directorof racing operations Dale Rapson was shown inthe track’s colorful paddock, with stalls matchingbright saddle pad colors, and quoted on thebig things to come during the summer andparticularly with the Breeders Crowns.