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, EditorTuesday, April 20, 2010$600 MILLION OFFER AT BIG MThat’s what a group headed by former Harrah’sAtlantic City chief executive David Hanlonthinks slots at the Meadowlands are worth, andfor another $100 million they’ll take over operationof the track. The offer was sent to Gov.Chris Christie, who turned it over to his pointman, former New Jersey Exposition Authoritychairman Jon Hanson, to evaluate. The bidders,a group called Global Enterprises Meadowlands,is offering the $600 million to install 5,000slots at the track, and according to the BergenRecord, which has a copy of the bid, GEM alsoenvisions a freestanding, 300,000 square foot racinoadjacent to the track to house the machines.Global would pay $500 million by June 30, 2011,the end of the next budget year, if the VLTs wereinstalled by then. The group projects the statewould receive $350 million in the first year fromthe slots from a 40% cut of gross revenue.There are, of course, serious roadblocks, primarilythe powerful Atlantic City casino lobby thatso far has been able to forestall any discussionof slots outside of those at the glittering casinosthat front the grimy beach resort city. Anotheris the boastful challenge of state Senate presidentStephen Sweeney, who has publicly announcedthat no bill expanding gaming anywhere else butAtlantic City will be considered by the Senate aslong as he is president. And a statewide referendummost likely would be needed. The Globalgroup sweeps away those problems by saying thetime is right for slots at the track, and that thestate faces not only a money crunch but figuringout a way to save the racing industry. Sofar Gov. Christie has expressed more concernabout saving the casinos. Global talks about1,000 jobs, a hotel -- although Xanadu developerColony Capital has first nibs on that -- andestablishing two charitable foundations.It says slots could be open 8 months afterapproval.HORSEMEN PUMMEL NYCOTBTwo thoroughbred horsemen’s groups -- theNew York Thoroughbred Breeders and the NewYork Thoroughbred Horsemen’s Association --have accused the New York City Off-Track BettingCorporation of keeping two sets of books,and have asked for the resignation of NYCOTBchairman Sandy Frucher. The horsemen, angeredby Frucher’s promise of “pain” to the industry,have lashed out at what they call “a webof deceit and lies” and say NYCOTB “is engagedin a cynical and we believe illegal strategy.” RayCasey, president of the HTA associate member,responded that NYCOTB has been “completelytransparent,” and David Vermillion, an OTBspokesman, called the charges “a silly diatribefrom racing industry shareholders whose solestated purpose is to put NYCOTB employees outof work and who have refused to come to the tableto negotiate with all stakeholders over a longterm plan for the industry.” An anonymous respondent,replying in a comment to the AlbanyTimes Union story, said in a letter addressed to“You horsey folks,” that Frucher had addressedthe charges in detail on a talk show today, to berebroadcast tonight at 6 p.m. Eastern time on1300 AM and offered “to open his books to anyone,including you, and would welcome the sameoffer from your organizations.”“WHIPS GONE IN 5 YEARS”In an interesting prediction for European racing,with overtones for North America, the influentialFrench racing leader Louis Romanettold a panel on animal welfare that televisionof racing will force the abandonment of whipswithin five years. Romanet said, “It won’t happentomorrow, but the influence of better qualitytelevision on public perception” will force racingregulators to outlaw whips except for correctivesafety purposes. He likened the process togradual education on medication rules.