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, EditorFriday, May 14, 2010TRY BUYING YOUR WAY INWhen all else fails, you always can try tobuy your way in. That’s the tack nowbeing taken by Canterbury Downs inMinnesota, as the Minneapolis-St. Paultrack lobbyist, Dick Day, has emergedas president of something called RacinoNow. Day is telling legislative leadersand Governor Tim Pawlenty that thetrack will pay the state $100 million fora racino license, a one-time payment thatDay says will help Minnesota solve itsbudget problem. The former state legislatorwent farther when he said, “I’venever seen the state in need of moneymore than now. We have the money rightnow. If House and Senate leaders turndown this offer, we’ll know that the fix isin.” Pretty strong statement, Dick, for aguy who resigned from the legislature tobecome a lobbyist.NYRA GETS NO HELPThe situation may change before the inkis dry on this page, but as of this morningNew York Racing Association officialstold Matt Hegarty of Daily RacingForm that they have been told the legislativeplan to loan NYRA $17 million hasfallen through “because it would violaterestrictions on how the state can loanmoney.” An unidentified state officialsaid, “They are looking at other ways tosecure the money. But there isn’t an obviousway of doing that right now.”Maybe Canterbury can help out.OR PERHAPS THIS GUY...You very possibly have not heard of TerranceWatanabe, but Harrah’s Entertainmentwill tell you all about him. Heis out of Nebraska and identified as “a53-year-old philanthropist who obviouslylikes to gamble.” He lost $189 million atCaesars Palace and the Rio three yearsago, up from an estimate of $112 millionlast November. The $189 million representedsome 6% of all Harrah’s casinorevenue in Las Vegas, and Watanabe’slawyers say he gambled more than $800million at the two hotels in 2007 alone.Bill Thompson, the public administrationprof at the University of Nevada Las Vegas,says, “No one has ever lost this muchmoney in a casino before. It’s just a fantasticamount. He’s the biggest whale ofall time.” Watanabe’s lawyers also saythe reason for the losses was that the hotelcasino operators plied their client withliquor, and that while he had lost $67.29million at Harrah’s casinos by the end ofAugust 2007, “his gambling losses escalatedastronomically in the fall of 2007,just as his level of intoxication was reachingthe most extreme. The Harrah’s entitiesmade these losses possible not onlyby progressively increasing Watanabe’scredit limit and providing him with anonstop supply of alcohol and prescriptionpainkillers, but also by increasinghis table limits beyond other patrons.”Watanabe also faces claims of $14.7million in bad markers.