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, EditorThursday, April 8, 2010REBID FOR AQUEDUCT RACINOTom Precious, the well-placed Albany reporterwho also writes for Blood-Horse, gave the magazinea jump on other sources this morning. Hereported that Gov. David Paterson and legislativeleaders have tentatively agreed to start overon the Aqueduct racino project, allowing newbidders to enter the competition and old ones toform partnerships. It will cost another millionup front to play, and a memorandum of understandingthat can’t be renegotiated, but you’ll getit back if you aren’t the winner. The minimumfranchise fee of $300 million still exists, payablein 10 days after selection, and the bids will bescored by an outside investment bank that willverify financial aspects of the bids and forwardthe scores to Gov. Paterson, who will have to acceptthat bidder as the winner. No add-ons orcommittee of three involved this time around,according to Precious.GLOWING REVIEW AT VERNONThe editorial board of New York’s state’s OneidaDispatch, which has covered developments of thelast decade at Vernon Downs, issued a highly favorableand optimistic report on the track today.“For too many years,” the editorial reads, “thisnewspaper was filled with reports of major problemsat Vernon Downs. The facility was in dangerousdisrepair and its finances under a stringof owners were even worse. The low point camewith bankruptcy in 2004 and in 2005 the harnessracing track never opened. But those dark daysare over. Today, stories about Vernon Downs aregood news. Under the management of AmericanRacing & Entertainment -- and with morethan a little help from its racino -- the track hasbeen spruced up and placed on sound financialfooting. Every year more events are added withthe goal of drawing more people, especiallyfamilies.” It went on in similar vein, atribute to top man Jeff Gural, who wasvilified by horsemen just a few years ago.OTB BAILOUT NEWS IN NYNo one, including Executive News, needed to bea seer when a bailout for HTA associate memberNew York City Off-Track Betting Corporationwas discussed in Albany a few weeks ago.It was clear then where the legislature woulddrop the hammer -- on New York tracks -- anda story today by Paul Post in Saratoga Springs’Saratogian and another in LoHud.com providesconfirmation. Post outlines Albany’s solution, asproposed by John Van Lindt, executive vice presidentand chief operating officer of NYCOTB,who chaired the state Task Force on the Futureof Off Track Betting. His report recommendedthat OTB should not have to make “hold harmless”payments; should not pay a night-timethoroughbred tax for carrying out-of-state thoroughbredraces; and should not have to makedark-day payments for airing out-of-state thoroughbredraces when NYRA and Finger Lakesaren’t running.LoHud.com, which stands for Lower Hudson,its coverage area, spelled out what that wouldmean to two tracks in its circulation area. TheVan Lindt committee plan would create as highas a $28 million loss to Yonkers Raceway, and a$2 million loss at Monticello Raceway, accordingto the news service.Two years ago Albany approved an increase inthe monies harness tracks received from VLTs.Don Groth, the always loquacious president ofCatskill OTB, said, “That was a mistake. It’sOTB’s job to save racing, but no one’s trying tosave OTB.” If the legislature is to act now onthe bailout, it will have to be today. It returnedyesterday from its Easter-Passover recess, workstoday, and will not be in session tomorrow orSaturday. NYCOTB is scheduled to shut downoperations Sunday. Van Lindt says he thinks itwill stay open if it gets assurances of a bailoutdeal likely to be passed next week.