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, April 19, 2010NYCOTB AND “MARKET RATES”Sandy Frucher, the man who cried wolf, hassaved his flock once again. He announced overthe weekend that Albany had agreed to an “interimplan” which would enable him to keep NewYork City OTB open and alive for another yearafter twice announcing its closure. He says NYCOTB will be smaller, trimmer, and “paying marketrates to tracks for their races.” He didn’t announcewhat market rates were, saying, “I can’tquantify at this point the amount of pain we’llbe inflicting on the racing industry. There willbe pain.” Frucher said NYC OTB would be halfthe size it was within a year, with half of its 1,300workforce laid off and dozens of its betting shopsclosed. Reports from Albany said the proposed15% cuts in payments to tracks would not bepart of the solution, but as to monies NYC OTBowes to tracks nationwide, including millionsto Yonkers and NYRA in New York, prospectswere dim. “You can’t pay what you don’t have,”Frucher said. He reportedly will close up to 40of OTB’s 60 or so betting shops, replacing themwith some 1,500 “KwikBet” Internet wageringterminals in sports bars, following a model alreadyin use in Capital, Suffolk and Nassau OTBoperations. Frucher announced his new planson Saturday, when his board voted to continueoperations for a year after a three-way agreementwas reported from Albany involving Senateand Assembly leaders and Gov. David Paterson.That agreement had not been officially voted onin the legislature as of this morning, but seemssure of passage. The Derby, Belmont Stakes andSaratoga meetings lie ahead, three events thatare among the most profitable for OTBs. Fruchersaid closure would have a “profound negativeeffect” on racing. Gov. Paterson’s office said he“supports Sandy Frucher’s efforts to keep NewYork City OTB open and will continue towork with him to come up with a longtermsolution to this problem.”NH GOV: “I’LL VETO SLOTS”If the New Hampshire House votes to agree witha Senate bill to allow video slots at six sites in thestate, Gov. John Lynch says he will veto the measure.Lynch said he would kill the legislaturewhether it offered six sites or five, as the Housesuggests. There still is hope for HTA memberRockingham, however, for Lynch says he wantsto review a report, due next month, of a gamblingcommission he appointed last year. Beyondthat, negotiations lie ahead on how to closea $220 million budget gap, an issue that needsaction by July, and the issue of video gamblingcould be revived.In nearby Rhode Island, meanwhile, the ProvidenceJournal reports that House Speaker GordonFox has put an upcoming Senate vote ontrack slots and two casinos in neighboring Massachusetts“high on his priority list.” The MassachusettsHouse gave quick approval there toboth. A Rhode Island House bill already hasbeen introduced that would allow voters to decideon allowing casino gambling at Rhode Island’stwo slots parlors.AROUND AND ABOUT......Despite rain, HTA member VERNON DOWNSopened its 57th year of racing Friday night with3,200 on hand, a good crowd for the Jeff Guraloperatedtrack in upstate New York....WOOD-BINE ENTERTAINMENT has added videofeatures and on-demand videos to its Web siteinventory, with Trevor Ritchie, Paul MacDonelland Mario Baillargeon among the early interviewees....PopularYVON GIGUERE has departedMontreal and now is mutuel manager at GrandRiver Raceway in Elora, Ontario.... harnessracing.comreports that Point Blank Solutions, theformer DAVID BROOKS company that madebody armor for the US army, has filed for bankruptcyin the face of monthly legal fees of$600,000 in Brooks’ fraud case.