2005 - Harness Tracks of America, Inc.

Transcription

HARNESS TRACKS OF AMERICA
Executive Newsletter
A daily fax and e-mail report on racing and gaming developments in North America and beyond
Stanley F. Bergstein, Editor
January 3, 2005
CAN THINGS GET WORSE?
HOW TO HANDLE SUCCESS
At least in Maryland, the answer seems to be yes.
After calling an extraordinary holiday season
special session to consider medical malpractice
reform and engendering the ill well of legislators
with that move, Republican governor Robert
Ehrlich Jr. and the Democrat-controlled General
Assembly were at it again. Ehrlich said he would
veto the legislation produced at the session, and
some lawmakers were saying they would attempt
to override his veto. With the regular 90-day session just two weeks away, a former state senator
who now teaches political science, John N.
Bambacus, told the Baltimore Sun, “Never in the
past three decades have I seen this kind of rancor in the two branches of government. I really
believe the citizens of this state, while they may
in one way admire the governor’s resolve, on the
other hand are saying, ‘Look, folks, we expect
you to act on this issue.’” They also presumably
would like the legislature to act on slots at tracks,
but given the present hard feelings, and the continued objections of House Speaker Michael E.
Busch, odds seem slim there will be agreement
on that issue. The House Democratic leader,
Kumar P. Barve, said of the governor, “He called
us into town at a very inconvenient time, to solve
a genuine problem, and he is not willing to give
an inch. He seems to be almost genetically incapable of compromise, which is astounding.”
Ehrlich saw it differently. “One person’s
dysfunctionality is another person’s healthy
philosophical debate,” he told the Sun. “There’s
a different view of the world here. It’s a view of
the world that is asking people downstairs (in the
Assembly) to do things they don’t want to do.”
The House minority whip, Anthony J. O’Donnell,
agreed, saying media criticism is focused unfairly
on the governor rather than legislative leaders.
“The legislative leadership has demonstrated a continued pattern of obstructionism,” he said.
HTA member Saratoga Gaming and Raceway
has completed a hugely successful year, with
purses tripling from $2.9 million in 2003 to almost $9 million in 2004. Track management does
not intend to sit on its laurels. General manager
Skip Carlson announced that “I don’t think you
can ever take your customers for granted,” so
Saratoga is planning to spend $750,000 to renovate its pleasant dining room, with new design
and an improved menu, and another $30,000 to
upgrade the video camera system to provide split
screen viewing. That move is not designed just
for local consumption. Carlson thinks it will help
Saratoga sell its simulcasting to other tracks and
venues. One pending project on which no immediate action is likely to be taken is increasing
the track size from half-mile to five-eighths, as
has been discussed for several years. The cost of
the project has gone from a projected $2 million
to $4 million, and, successful or not, Carlson says
“You have to think about return on investment.”
In a very positive story on the success and improvements, Paul Post of The Saratogian wrote,
“In 2003, only nine drivers had purse earnings
of $100,000 or more, compared to 19 in 2004.
Leading driver Dan Capello Jr. has seen his
purses increase from $491,397 to $867,383. Only
three trainers had purses of more than $100,000
in 2003, versus 16 in 2004. Leading trainer John
Stark Jr.’s purses went from $165,248 to
$375,721.” Saratoga also increased its race dates
from 129 10-race cards in 2003 to 165 13-race
cards in 2004. “That’s a 30% increase in total
races,” Carlson noted. “No other track can say
that. I really think we’ve delivered on most of
our promises to the horsemen.”
TOM RIDGE COULD RACE IN 05
Tom Ridge, the world’s fastest trotter, has had
disappointing fertility tests and could possibly race again in 2005.
January 4, 2005
WHO’S ON FIRST IN CATSKILLS
ALL’S CLEAR FOR MTR IN ERIE
There’s a tempest in the teepee in the Catskills,
as conflicting signals pour forth from the mountains. The Oneidas, who have the money from
Turning Stone, are supporting and advising the
Cayugas, telling them to keep the so-called Seneca-Cayugas out of New York and back in Oklahoma. The spokesman for the Cayugas, at least
until now, Clint Halftown, made headlines today
by announcing that the tribe was “walking away”
from its deal with Empire Resorts, which owns
Monticello Raceway, and would not renew its
contract with them to build a $500 million casino there. Charles Degliomini, speaking for
Empire, said Halftown didn’t know what he was
talking about, that the Cayugas already had sent
a letter saying they intended to renew their contract, which expired Dec. 31, for another six
months. Halftown is not just some supernumerary. He was the one who arranged the deal to
settle a nearly $258 million land claim in return
for the casino deal, and it appears Ray Halbritter,
the Harvard grad who runs the Oneidas, has his
ear. Degliomini called Halftown’s actions “bizarre” and not to be taken seriously. “We have
every confidence the Cayuga nation is going to
move forward and build a casino at Monticello,”
Degliomini says, noting that a tribal council member, Gary Wheeler, not Halftown, signed the letter of intent to renew. Stay tuned for tomorrow’s
exciting half-hour of “As the Catskills Turn.”
The Pennsylvania Supreme Court has cleared the
way for MTR Gaming to build a thoroughbred
racetrack in Erie, and MTR CEO Ted Arneault
says construction will begin on the track, to be
known as Presque Isle Downs, in April. Arneault
had earlier announced he would not build at the
site of the old International Paper Mill, a 200acre property he bought earlier but abandoned
after the mayor of Erie became involved in a
messy conflict of interest proceeding. MTR may
develop that property into a retail, residential or
light industrial project, but will build its track in
Summit Township along highway I-90, a few
miles south of Erie’s downtown. Arneault is planning a $100 million project, a track, a racino with
1,500 or 2,000 slots, and perhaps a hotel. The
Supreme Court, in rejecting the appeal of Pittsburgh developer Charles Betters in a one sentence decision, ended objections that had been
expressed not only by Betters, who wanted to develop a complex with slots in Pittsburgh, but also
by Magna Racing Pennsylvania, owner of The
Meadows.
SLOTS FOR NEW HAMPSHIRE?
The president of the New Hampshire Senate, Tom
Eaton, says he supports legalizing video poker at
the state’s four racetracks, and that a bill is in the
works to legalize the machines. Eaton and senator Lou D’Allesandro, who is introducing the legislation, think it can raise $200 million a year for
the state. The governor-elect, John Lynch,
faces a $300 million budget shortfall, but
is concerned about slots changing “the
quality of life.”
FRINZI HITS HIGH C IN OPERA
Fra Noi, an Italian newspaper, conducts an annual opera quiz -- a tough one with 40 questions - and no one has ever had a perfect score in answering it. Until now, when the president of Harness Horsemen International, opera buff Dominic
Frinzi, aced the test in winning the competition
for the third time. The operatic score was not
Frinzi’s only recent triumph, however. He also
was presented with the Ray Cannon Justice
Award, presented by the Federal Defender Services of Wisconsin. The award noted Frinzi’s “lifetime dedication to the cause of justice,” and mentioned the qualities that those in harness racing
know so well: fairness, intelligence, forcefulness,
a consensus seeker, and a peacemaker. HTA
concurs, and congratulates its good friend.
OFFERS FOR TRACKS, SORT OF
In New York, Jeff Gural, one of New York City’s
biggest real estate executives and a major player
in harness racing, says he is interested in buying
Vernon Downs, but with a condition that may be
very hard to meet. Gural, who bought abandoned Tioga Park last year and is preparing it
for a harness meeting, is willing to buy Vernon,
as he has tried to do in the past, but only if the
racino proceeds are doubled from 20% to 40%.
Getting that done may be difficult in a legislature that can’t even come up with a state budget
on time. Gural told the Syracuse Post-Standard,
“You can’t possibly make a go of it at 20%. The
only way I’m interested would be if we’re able to
get the legislation changed.” Gural also said he
is talking with another bidder for Vernon,
Casinopartners Management Group, but Eddie
Lynn, the COO of that company, declined to comment on a possible deal with Gural. Lynn was
general manager of Fort Erie Racetrack and Slots
in Ontario for five years. Lee Woodward, bankruptcy lawyer for Mid-State Raceway, which
owns Vernon Downs, confirmed talks with both
potential buyers.
In Windsor, Ontario, columnist Bob Duff of the
Windsor Star quoted seven-time Canadian training champion Bob McIntosh of nearby LaSalle,
as saying a group of Michigan owners have contacted him offering to buy Windsor Raceway.
Windsor currently is closed for racing in a dispute with the Ontario Racing Commission and
Ontario Harness Horse Association over number
of racing dates. McIntosh said he understood
that Tandem Entertainment, part of the Windsorbased Toldo Group of companies, had bought the
track by assuming $36 million of debt last year,
and said the potential Michigan investors -- owners in his stable who wished to remain
anonymous -- were not fazed by that
number. “They’ve got that kind of
money,” McIntosh said of the group.
January 5, 2005
Duff noted in his story that there is no indication, despite the current dates controversy, that
Windsor Raceway is for sale.
In regards to the dates issue, the Ontario Racing
Commission says it has no new application for
dates from Windsor Raceway as of today. The
commission also advises HTA that our report in
this newsletter that the commission had proposed
a 153-date schedule was erroneous, and that at
no time did the commission propose such a schedule for Windsor for 2005.
INDIANA TRACKS GET BOOST
It remains to be seen how far it goes, but a key
Republican lawmaker in Indiana -- Luke Messer
of Shelbyville -- says he will introduce legislation
that calls for 2,500 slots at both HTA tracks in
the state, Hoosier Park and Indiana Downs.
Messer says his bill will not include a casino in
downtown Indianapolis, but acknowledged that
while it limits the expansion of gambling “it won’t
be the last version. In the end, it will likely look
much different,” since he is open to compromise
on a casino in Indianapolis. Messer says the legislation is intended to help keep the Indianapolis
Colts in that city by building a new stadium, a
move proposed by the mayor of Indianapolis,
Bart Peterson, who also wants the stadium paid
for by slots at the state’s two tracks and a casino
in the heart of the city.
HANOVER ACTS ON OWNERS
Hanover Shoe Farms has announced it will sponsor six of the USTA-staffed seminars for new owners. Run by Harness Racing Communications’
Ellen Harvey, the seminars have produced some
140 new owners in the sport, and 60% of them
have bought more than one horse. More than 600
people in 11 states have attended the seminars.
Hanover president Jim Simpson said the farm
wants to help give new owners tools for success in the sport.
FALLOUT IN WINDSOR STRIFE
The impasse between Windsor Raceway and its
horsemen and the Ontario Racing Commission
over number of racing dates for 2005 is resulting
in shock waves beyond the immediate dispute.
With live racing cancelled, 478 holders of Woodbine HorsePlayer Interactive accounts in the
Windsor home-market area have been disenfranchised by the Canadian Pari-Mutuel Association.
The CPMA told Woodbine it could not allow the
Windsor-area bettors to use their accounts until
Windsor has a betting permit. With the track
closed and their Woodbine accounts deactivated,
those bettors have no legal access to live or simulcast betting, according to Standardbred
Canada. SC’s report on the situation concluded
with this: “It is clear that HorsePlayer Interactive customers are frustrated with the inability
to access legally operated track-run betting pools
when offshore and illegal bet providers operate
freely and unregulated.”
CALIFORNIA CUTS OFF GUILD
Saying he doesn’t understand the arrogance of
the Jockeys’ Guild, California racing commissioner Richard Shapiro, leading a committee
looking into the Guild’s finances, announced yesterday that the Guild will not receive its annual
$1 million payment from uncashed tickets in
California until it answers “very specific” questions about its finances. Shapiro convened the
first meeting of his investigating committee this
week, and a committee document will be sent tomorrow to the Guild demanding information
before any further payments are made to it from
the California fund. Chris McCarron, a member of Shapiro’s committee and the man mainly
responsible for the hiring of Gertmenian, said in
a recent radio interview that “things began to
unravel” after Gertmenian refused his
request to provide information to former
Guild members Jerry Bailey and Pat Day.
January 6, 2005
In a story on Bloodhorse.com, Tom LaMarra
wrote that although McCarron had originally
backed Gertmenian -- whom he had known for
10 or 12 years -- for the Guild leadership, his position on Gertmenian’s credentials and background had changed in the last three years. “I
don’t know what he is and what he isn’t, to this
day,” McCarron was quoted. “I think it matters. Earlier on it didn’t matter that much to
me, but now it matters not just to me but to all
the jockeys, and it matters to the strength of the
organization and future of the organization. It
all comes down to credibility and integrity. I hope
and pray he’s able to prove us all wrong.”
SHAWN SCOTT IS BACK
Shawn Scott is back, and in controversy as usual.
He resurfaced from his Virgin Island retreat, startling District of Columbia election officials with
a pre-Christmas invasion of Washington with 75
paid circulators who asked registered voters to
sign petitions in support of a slots initiative Scott
is backing there. The workers were paid as much
as $20 a valid signature, according to the Washington Post. Scott and his associates now have
delivered 6,000 signatures to the election board,
asking that they be added to some 14,700 previously collected and validated during a contentious drive last summer. The election board,
which ruled then that there were not enough valid
signatures to qualify, now must decide whether
DC law allows the 2004 signatures to be transferred to qualify for a vote in 2006. According to
the Post, the December effort surprised not only
election officials but Scott’s local allies in Washington, who quickly distanced themselves from
the effort, the chairman of a PAC formed to support the measure resigning. One of Scott’s lawyers told the paper that even if the board does
not accept the signatures, Scott is prepared to
vigorously renew pursuit of the referendum
process.
Paul J. Estok, Editor
BAD READ ON PLAINRIDGE CASE
Yesterday’s Boston Herald ran a story under the
headline “Ex-partner is back in the race” that purported to report on a Massachusetts appeals court
decision involving litigation between Plainridge
Racecourse President and CEO Gary Piontkowski
and Rhode Island developer and former
horsemen’s association officer Lou Giuliano. But
the story that followed was so full of inaccuracies
that by the end of the day, lawyers for Piontkowski
had sent the Herald a three-page letter detailing
the errors and demanding a retraction and correction. The story stated that “a state Appeals Court
judge has cleared the way for a possible ownership
change at Plainridge Racecourse by confirming that
an original investor cut out of the business is entitled to stock shares.” The article also contained
the statement that “the Appeals Court denied an
appeal by track boss Gary Piontkowski that
claimed Giuliano wasn’t entitled to stock in the
company.” As a final insult, the story ended with a
paragraph saying that “Plainridge has long been
mired in scandal....” As Piontkowski’s lawyers
noted in their letter to the Herald, the story’s author, David Wedge, seems not to have even read
the court’s decision. In fact, as Piontkowski’s attorneys point out, the decision, issued on December 30, 2004, “simply found that the minority shareholders in Plainville Racing Company were not permitted to intervene in an underlying piece of litigation which was tried...last year. A decision in that
underlying litigation has not been rendered. The
Appeals Court decision contains no statement, implicit or otherwise, that Mr. Giuliano is entitled to
purchase anything.... The decision decided no substantive rights of any kind.” All of which would
have been perfectly clear if reporter Wedge had
bothered to read the first three sentences of the decision. As for the reporter’s claim that Plainridge
has been “mired in scandal,” the list of supposed
“scandals” featured an allegation of “wiretapping” that turned out to be a wiring
problem and a “money-room heist tied to a
January 7, 2005
Providence murder,” which involved the track being robbed and the perpetrator being found dead
two years later after an unrelated drug deal. No
word yet on whether the Herald has responded to
Piontkowski’s letter.
NYRA ’04 LOSS WILL TOP $10M
Despite a reported $12 million worth of operating
cost reductions, losses by the New York Racing
Association will top $10 million for 2004. Spending reductions involved everything from payroll
cuts to outsourcing jobs previously done by NYRA
employees. NYRA CFO William Byrne said some
of the aggressive cost-saving measures NYRA has
taken include hiring an all-new fiscal staff, eliminating consultants hired to assist departments such
as human resources, and trimming the payroll by
150-200 people. “Over the years, a certain amount
of waste was built up in all departments,” said
Byrne. “There are still opportunities to reduce
costs. There’s a lot more to go.” A $3 million federal fine and the high cost of paying for a courtappointed monitor offset some of NYRA’s financial gains.
GOOD NEWS AND BAD NEWS
In the good news category comes word that Don
Fuller, who retired from United Tote in 2002, has
been named executive vice president of AmTote
International. In other news, Standardbred
Canada has announced that Armstrong Bros.
Farms of Inglewood, Ontario, is the 2004 winner
of the Cam Fella Award. The award, established
in 1997 in honor of the legendary pacer Cam Fella,
recognizes meritorious service to the Canadian
harness racing industry.
The bad news is the report of the death of Bertram
Sarafan, formerly chairman of the New York Racing and Wagering Board. Sarafan, who spent 40
years as a public servant and who served on the
New York racing board from 1975 to 1976,
died at the age of 91 on December 5.
January 10, 2005
56% FAVOR SLOTS IN MD
JOE NAMATH LEAVES VESTIN
The Baltimore Sun, which doesn’t care for gambling but usually presents a fairly balanced picture of it, reports this morning that 56% of voters
in a Sun poll say they favor expanded gambling to
help deal with the state’s budget shortfall. The
paper says the number is the highest ever in the
state, up from 52% a year ago. The poll surveyed
800 voters last week, and support was highest in
the suburban counties around Baltimore. One interviewee said, “The money is being spent on slot
machines in other states, and why should we send
our money to other states when the state so desperately needs money?” That has been the argument, of course, of governor Robert L. Ehrlich Jr.,
but there is no sign his nemesis, House speaker
Michael E. Busch, has softened his opposition as
Maryland’s new legislative session gets underway.
“I would hate to follow the road map of the last
couple of years,” Ehrlich said, “which is to have a
strong bill come out of the Senate and go nowhere
in the House.” He might hate that map, but that’s
what’s showing on the screen.
Yes, that Joe Namath, and that Vestin Mortage,
Shawn Scott’s mortgage broker pals in Las Vegas. You say you weren’t aware that Namath was
associated with Vestin? Neither were we, until we
read in the Las Vegas Review-Journal that he had
been their spokesman and had decided to return
his 400,000 shares. take $1.6 million for them, and
terminate a warrant to purchase another 200,000
shares. The paper said the agreement ended a
yearlong dispute over Namath’s contract as
spokesman, in which he appeared in several ads
and commercials, and that Shustek Investments,
a company privately owned by Vestin chairman
and CEO Mike Shustek, would loan Vestin the $1.6
million at 8% yearly. It turns out Paul Hornung,
former Notre Dame and Green Bay Packers great,
also did a little commercial work for Vestin, but
no longer is a company spokesman. Two days
after what Vestin’s PR man called “welcome closure” to the Namath matter, the Review-Journal
carried another Vestin story, saying the mortgage
brokerage firm was being formally investigated
by the Securities and Exchange Commission,
which had been conducting an informal inquiry
into its operation for a year.
NO ACTION IN ILLINOIS, EITHER
In a story in today’s Chicago Sun-Times by staffer
Mary Laney, the lead reads, “What’s going on with
the Illinois Gaming Board? What’s happening
with the 10th casino license? What’s with Gov.
Blagojevich?” The story goes on to say that
Blagojevich has done nothing about appointing
new members to the gaming board, which is down
to two members who meet once a week, call a meeting to order, and then adjourn their meeting for
lack of a quorum. The two can’t renew licenses,
so two casinos are operating without them. They
can’t hire investigators. They can’t let the Rock
Island casino expand. They can’t act on the Isle
of Capri, who they selected to receive the final license before that matter got mired down
in politics. In short, the governor has assigned gambling to limbo in Illinois.
U.S. APPEALS WTO DECISION
The United States last week formally appealed a
World Trade Organization ruling against it in
Geneva on barring Internet betting to other countries, and apparently accompanied the appeal with
a veiled threat to change its commitment to the
world organization. Antigua, a little Caribbean
island nation with less than 68,000 residents, won
its WTO case in November, successfully arguing
that U.S. prohibition on using its online betting
services was inconsistent with WTO rules. The
U.S. appeal says the WTO panel decision “is in
error and is based on erroneous findings,” according to Bloomberg News. The WTO has 90 days
to rule on the U.S. appeal.
January 11, 2005
TRACK, OHHA SEEK SOLUTION
SEE IF YOU CAN MATCH THIS
The impasse at HTA member Windsor Raceway
continues, with the track and Ontario Harness
Horse Association seeking possible solutions.
Windsor issued a press release saying Ontario
Racing Commission vice chair Larry Todd had
denied a request for a meeting, saying he did not
feel the proposed forum was appropriate, and the
track had expanded its efforts by seeking meetings with the Ontario Lottery and Gaming corporation, members of the provincial parliament,
Windsor’s mayor, and Susan Whelan, the attorney representing the OHHA. Windsor asked the
lottery corporation to work with it on benchmarks, noting that its racino ranks 14th out of
15 in Ontario. The slot program, Windsor’s release said, “has left the impression that all tracks
benefit equally when they do not. Slot revenue
to the horsepeople and to tracks in the Toronto
area is approximately 800% higher than in
Windsor. Windsor Raceway has requested the
OLGC establish benchmarks on slot revenue
performance which will allow Windsor Raceway
to establish a business model that works for all
stakeholders. If the OLGC improved the performance of Windsor Raceway slots to the provincial average, Windsor Raceway could introduce
a plan to expand live racing and improve the livelihood of OHHA’s members.” Slots at Ontario
tracks are operated by the OLGC, not the tracks.
The OHHA, meanwhile, contacted the racing
commission and requested immediate action to
resume racing at Windsor under its mandate to
govern, control and regulate horse racing.
Whether that mandate includes power to demand
that private enterprises operate remains to be
seen, but the OHHA also says it requested a meeting with Windsor Raceway to try and resolve its
concerns, and also contacted the OLGC concerning its operations at Windsor. The OHHA
will hold a meeting of members Wednesday evening.
We don’t like to make you envious, but last
weekend’s 9th annual Delaware Standardbred
Owners Association awards dinner not only attested to the health of the sport in Delaware but
set an example for the industry. A record crowd
of some 480 turned out, and it included the governor of the state, Ruth Ann Minner; the lieutenant governor, John Carney; the secretary of
agriculture, Michael Scuse; state senators Nancy
Cook, Thurman Adams and Anthony DeLuca;
eight members of the state’s House of Representatives; chairwoman Beth Steele and administrator John Wayne of the racing commission; and
Fred Noe, executive VP of the USTA. The crowd
would have been even bigger, but fire marshals
said enough as the count neared 500. Congratulations to all concerned.
THE LONG SHADOW OF DONALD
Indiana’s new governor, Mitch Daniels, sworn in
yesterday, wasted no time in wielding power. He
vented his displeasure with his Gaming Commission, saying he hoped all seven voting members
would offer to resign. Daniels’ comments came
hours after a Fort Wayne representative, Robert
Alderman, angrily quizzed the outgoing executive director of the commission as to why it licensed Donald Trump’s casino company to operate a casino in French Lick. Alderman called
it “extraordinary” that the state chose the company, given its financial situation. Daniels said
yesterday he wanted to review the deal before a
final contract with the Trump organization was
signed.
In New Mexico, Brett Woods, the director of the
state Gaming Control Board, which has some 60
employees and overseas slot machine gambling
at racetracks, fraternal clubs and non-Indian
casinos, resigned his $85,000 a year job.
January 12, 2005
ROSECROFT SALE GETS OK
GOOD NEWS FOR POMPANO
The Maryland Racing Commission yesterday
unanimously approved the sale of Rosecroft
Raceway to Georgia K. Angelos, wife of Peter G.
Angelos, the majority owner of the Baltimore
Orioles. Mrs. Angelos is expected to close the
sale within 30 to 60 days. The chairman of the
racing commission, Tom McDonough, acknowledging the family tie, said frankly, “We all know
who’s the power behind this. Having Peter
Angelos in the corner of the people trying to get
slots to help racing and breeding is a good thing.
We’ve got to get some help from the legislature.
I think Peter helps in that respect. He gets things
done. With his enthusiasm and hard work, we’re
confident he can bring racing to new heights in
the state of Maryland.” Neither Peter Angelos
nor his wife attended the commission meeting,
but they were represented by Louis F. Angelos,
their son, representing Rosecroft Holdings as its
attorney. He told the commission he pledged to
work with thoroughbred interests as a “supportive society,” not only to pursue slots but to help
resolve long-running disputes in Maryland racing and promote the product. Alan Foreman,
attorney for the Maryland Thoroughbred
Horsemen’s Association and a major player in
thoroughbred racing nationally, told the commission he was absolutely certain thoroughbred interests could work with the Angelos family.
“We’ll be able to deal with them,” he said. “The
Angelos family comes from a thoroughbred background. They understand our issues and concerns.” Rosecroft Holdings will pay $13 million
for the track. It already has advanced $7.2 million to pay off the mortgage held by Dr. Mark
Ricigliano’s Northwind Racing and loaned the
track an additional $500,000 as a deposit, with
the remaining $5.3 million to be paid at closing.
The agreement calls for 150 days of racing with purses of some $43,000 a day, as
compared to 117 days and $41,000 last year.
A circuit judge in Florida yesterday threw out
the lawsuit challenging the validity of the slot
machine referendum, writing that courts can
overturn the results of an election only where
there is evidence of fraud in the election itself,
not in events leading up to the election, such as
petition drives. The judge, Nikki Ann Clark, said
that “to invalidate the amendment after the fact
on the grounds asserted would thwart the will of
the people who voted for it and would improperly inject this court into the political process.”
Floridians voted 51% to 49% in November to
change the state constitution to permit local elections on slots in south Florida. An appeal of the
decision is promised by opponents, but Clark said
in her opinion that “any improper signature gathering which may have occurred on the petitions
was cured by the election in which the voters approved the slot machine amendment.” She also
said the complaint about procedures in verifying
signatures was a matter for the executive branch
of government, not the judicial branch. Negotiations continue between Broward county officials and their counterparts in Miami-Dade
county hoping for special March 8 elections in
both counties on the issue.
WEST VIRGINIA GOV SAYS NO
There will be no special session of the West Virginia legislature to vote on table games at tracks.
Gov. Bob Wise, entering his final week in office,
says he is too busy with other matters, including
flooding, and time has run out.
In New Jersey, despite federal law that says it is
illegal, an Assembly committee ploughed ahead
on a bill to allow sports betting in Atlantic City
casinos. The vote now goes to the full Assembly,
even though the Office of Legislative Services
says a challenge to federal law “most likely”
would fail.
January 13, 2005
ANOTHER CHALLENGE TO U.S.
BREAK IN WINDSOR IMPASSE
Apparently emboldened by the World Trade
Organization’s rebuff to the United States in siding with Antigua on the issue of Internet betting,
the Isle of Man has reversed its policy and announced it will accept bets from American residents. The Isle of Man, located between England
and Ireland, is a so-called Crown Dependency,
able to fashion its own laws separate from Great
Britain. It first welcomed Internet betting sites
four years ago, with prohibitions against accepting American bets, but its Council of Ministers
now has voted to reverse that policy. Tim Craine,
head of e-business for the Isle, said, “There’s a
lot of business looking to relocate to a reputable,
regulated jurisdiction. We’re hoping to capitalize on that business.” The move represents another challenge to American racetracks, given the
Justice Department’s position on the issue.
The Ontario Racing Commission will meet in
emergency session today to consider a revised
date application from Windsor Raceway that
could end the shutdown of racing there that began Jan. 1. Windsor has submitted a new request for 124 days of racing starting January 19,
taking into account seven days lost since Jan. 1,
which would have provided a 131-day calendar.
PROS KNOW A GOOD THING
NHL hockey players in Canada have recognized
harness racing’s potential for enjoyment and
profit for years, and have participated widely in
the sport, from John Ferguson years ago to Tie
Domi and Mats Sundin today. Pros have dabbled
in the sport in this country, Wilt Chamberlain
and Sam Bowie and former Kentucky All-American Cotton Nash being prime examples. Now
baseball and pro football stars are getting involved big time. Curt Schilling of the Red Sox
has his pacer Thunder Storm N in tonight’s 12th
race at the Meadowlands trained by Johnny
Podres Jr., son of Schilling’s former pitching
coach with the Phillies, John Podres Sr., a Brooklyn Dodgers’s ace and MVP in the 1955 World
Series. Sam Bowie is represented tonight too,
with Boo’s Boy in the second race, a Clyde Hirt
event. New York Jets wide receiver Wayne
Chrebet now is an enthusiastic owner,
and of course pitcher Dan Plesac is a serious harness horse trainer in Indiana.
NEW SALES LINEUP IN KY
Tattersalls and the Kentucky Standardbred Sales
Company have announced that the two companies will conduct a joint, merged yearling sale
next fall, to be held in the Fasig-Tipton Sales
Pavilion, where Kentucky Standardbred has sold
for years, during the fall Grand Circuit meeting.
George Segal, speaking for Tattersalls, said, “A
unified sale enables us to meet the demands of
our customers, both buyers and sellers, and at
the same time allows us to more efficiently utilize
the facilities at The Red Mile for racing. Our
desire is to make the Lexington experience convenient and enjoyable for everyone.” The name
of the new venture will be the Lexington Selected
Yearling Sale, presented by Tattersalls and the
Kentucky Standardbred Sales Company. HTA’s
art auction will be held as usual in conjunction
with the sales, on a date to be announced when
the new consolidated yearling sales dates are revealed.
HRTV TO CARRY BIG M REPLAYS
Magna Entertainment’s HorseRacing TV has
expanded its coverage to include replays of Meadowlands racing on its daily “morning after” replay lineup. The Meadowlands replays will kick
off HRTV’s two-hour expanded block of replays
starting at 10 a.m. eastern time, 7 a.m. Pacific,
followed by replays from Golden Gate Fields,
Gulfstream Park, and Santa Anita, all MEC
tracks.
PLENTY OF NEWS..MOSTLY BAD
Racing was in the news today, coast to coast, and
the headlines and stories were not pleasant reading. In New York, a successful thoroughbred
trainer, Greg Martin, and a longtime harness
driver, Rene Poulin, were included in those
charged with milkshaking at Aqueduct in a race
more than a year ago. The front page of the New
York Post read, “Race Fix: Gambler doping scandal shocks Big A, Belmont.” The Daily News covered its entire front page with “Mob Day At The
Races.” Not surprisingly, the assistant U.S. attorney handling the case also made bold type,
saying, “This is not a one-time deal. This is something that was happening regularly.” He also said
the mixture was “impossible to detect in
Aqueduct’s postrace drug tests.” Milkshakes are
successfully tested for all over the nation, and if
they are not tested for at Aqueduct, New York
racing should be ashamed. According to the New
York Daily News Poulin and Martin, the son of
Hall of Fame trainer Frank (Pancho) Martin, face
up to 20 years behind bars on federal gambling,
race-doping and fraud charges.
It has long been predicted here that one of these
days racing figures would wind up behind bars
as a result of the medication mess. This may or
may not be the case that results in that. Either
way, the news arrived on the same day prominent thoroughbred owner Cot Campbell, defending the toothless Code of Ethics on horse auctions presented last month by a committee he
chaired, said in a letter to the Blood-Horse that
“developing a practical, legally feasible organization for accomplishing this is close to
impossible.....Start with an industry that has no
central power for punishing anyone in respect to
criminal issues. Add the legal ramifications arising from matters of libel, and throw in
the complications of 50 states, with each
having its own set of unique laws.” The
January 14, 2005
headline over Campbell’s letter read, “Integrity
No Easy Task.” Of course it’s not. But if it is an
impossible task, we had better all pack our bags
and head out.
As New York headlines were hammering racing,
those in California and elsewhere were indicting
it as well. Jockey Pat Valenzuela, with one of
California’s smartest and best known lawyers,
Neil Papiano, leading the way, was back in racing. Bill Christine, the Los Angeles Times’ awardwinning racing writer, wrote that Papiano
“painted witnesses into a corner and left them
there.” The California racing board, with what
Christine called “little choice” after an administrative law judge’s ruling, relicensed Valenzuela,
who has had 11 drug-related suspensions from
riding since first testing positive for cocaine in
1988. Gary West, the star racing writer of the
Fort Worth Star-Telegram, led his story with,
“After several drug-related suspensions, jockey
Pat Valenzuela is set to resume riding, and horse
racing is set to resume its role as an enabler.”
The headline on West’s story read, “Jockey’s return taking the sport for a ride.”
BAD NEWS IN ONTARIO, TOO
There was bad news in Ontario as well, although
not a scandal. The Ontario Harness Horse Association, with some 200 members meeting in
Windsor, “strongly rejected” Windsor Raceway’s
latest date application offering to race 124 days.
The OHHA is insisting that Windsor be made to
race 153 days. The Ontario Racing Commission
announced it would consider the Windsor application at a meeting in Toronto next Tuesday, Jan.
18, at 4 p.m.
ONE LITTLE RAY OF SUNSHINE
Ohio governor Bob Taft has appointed Norm
Barron as interim chairman of the Ohio
State Racing Commission.
January 17, 2005
GURAL SIGNS TO BUY VERNON
FALLOUT WIDE AND FAR
Jeff Gural, one of New York City’s most important real estate magnates and a major owner and
breeder in harness racing, has signed a deal to
buy Vernon Downs. Gural, who bought Tioga
Park earlier this year, agreed to invest $8.5 million in Vernon and assume its mortgage held by
Vestin of Las Vegas, but he put a large conditional stamp on the purchase. Gural says he will
buy the track only if the state of New York increases the amount racetracks keep from video
gaming machines, and he has helped get a bill
introduced in Albany that would double the
amount that tracks receive, from 20% to 40%.
Paul Noyes, chairman of the board of directors
of Vernon’s parent Mid-State Raceway, called
Gural’s agreement “a new dawn for Vernon
Downs,” saying Gural would give the track instant credibility because he is so well known in
the harness racing industry. Noyes said Gural
would invest $1.2 million into Vernon immediately to get the track up and operating. The sale
has to receive approval from the U.S. Bankruptcy
court, since Mid-State filed for bankruptcy August 11. A Syracuse lawyer representing Vestin
Mortgage said he had not yet seen terms of the
agreement as yet, so he could not comment. Published reports have put the value of that mortgage at $26 million, but a major stockholder of
Mid-State disputes that amount and said Vestin
could be owed half that amount.
Repercussions from the federal indictments in
New York in the Aqueduct milkshaking case and
betting ring surrounding it have been felt across
the country. In Manchester, New Hampshire, two
executives of Lakes Region Greyhound Park -general manager Richard Hart and assistant GM
Jonathan Broome -- were indicted in connection
with the case involving alleged associates of the
Gambino organized crime family. Both were
charged with money laundering and participating in a gambling conspiracy, but Allan Hart, general partner in the operation and uncle of Richard Hart, said both men were “100% legitimate
guys” and tried to distance the track, which has
pursued outside bettors vigorously, from International Players Association, the organization
directly involved, but would not discuss his personal involvement with it. He called the indictments “a totally separate issue” that have nothing to do with Lakes Region Greyhound.
SIMULCAST OF THE PRIX
The Meadowlands and Hippodrome de Montreal
will simulcast Europe’s greatest trotting race, the
Prix d’Amerique from Vincennes in Paris, on
Sunday morning, Jan. 30. Post time for the 84th
renewal of the classic will be 9:40 a.m. eastern
time. For a contract or more information, contact Yvon Giguere, simulcast manager, at
514-739-2741, ext. 2361, fax 514-3402025, email [email protected].
In Fargo, North Dakota, where Susan Bala’s defunct Racing Services was named as part of the
New York betting scheme, and where a trial on
an earlier indictment on running an illegal gambling operation is to start tomorrow, there was a
startling development. Raymundo Diaz Jr., a vice
president of Racing Services and a close confidante of Bala’s and fellow defendant in the 12felony count case, reportedly will change his plea
to guilty on some counts and testify for the government. When asked if his testimony will hurt
the case, Bala told the Associated Press that “the
truth will carry the day.”
In Lexington, KY, the National Thoroughbred
Racing Association urged its member tracks to
cut off rebate betting shops unless they disclose
their ownership and allow review of their wagering data.
January 18, 2005
BALA GOES ON TRIAL TODAY
HONKYTONK WITH MOUNTAINS
Thirteen months after their indictment, Susan
Bala and her chief lieutenant Raymundo Diaz Jr.,
go on trial in Fargo, North Dakota, today, facing
12 federal felony counts. The charges include
running an illegal gambling operation, moneylaundering, illegal wire transmission and conspiracy. Their Racing Services and Global Contact Inc., owned by Diaz, also are on trial. The
weather may be cold in Fargo, but this trial could
be hot, and the fallout from it could be far reaching and include big names before it ends in the
next two weeks or so.
That was what the Concord, NH, Monitor said
would happen to New Hampshire if gambling is
expanded there. “Opening the state to gambling
will permanently change its image from a beautiful place for family vacations to a honky-tonk
with mountains,” the paper editorialized. It
called tracks “dying industries with waning political power,” and said that if the four in New
Hampshire got video slot and poker machines,
“you can bet that some of the state’s resorts and
hotels will too.” Gov. John Lynch yesterday called
for a full investigation of last week’s indictment
of two Lakes Region Greyhound Park officials,
saying if anyone is found to have violated the law,
they should be prosecuted fully. The governor also
says he wants “clear and convincing evidence”
that gaming could be expanded “without harming the state’s quality of life” before he would
approve any such legislation.
BROWARD GOES ON TRIAL TOO
Well, not really on trial. But Broward county
commissioners meet this afternoon to consider
whether to approve a March 8 election that would
put the issue of slots at tracks before Broward
county voters. The commissioners are expected
to approve the election, and Miami-Dade county
commissioners meet Thursday to consider holding an election on the same issue on the same
day. Since the measure won resoundingly in November, it would seem chances are good of it winning again, but state senator Steve Geller, president of the National Council of Legislators from
Gaming States, warned that the real battle may
come not at the polls but in Tallahassee. Legislators will have to consider the rules, including
operating hours, tax rates and the split in revenues, and Geller says anti-gambling Jeb Bush
may “only pass a bill that is so restrictive that
the pari-mutuels will reject it. For example, limiting it to the same hours as the card rooms -only 12 to 12 and only days tracks run live. Or
he’ll ask for a 70% tax rate.” Jim McAlpine of
Magna Entertainment, who spoke at Geller’s
NCLGS meeting last week, said tracks must be
able to operate freely and without burdens
placed upon them by legislators and outdated statutes. Ah, but who bells the cat.
PENNSY DECISION DELAYED
Don’t expect a decision on who gets the last harness racing (and racino) license in Pennsylvania
until the birds chirp and the flowers bloom. The
Pennsylvania Harness Racing Commission, now
at full three-man strength, has postponed a decision until then as a result of Ambrosia Enterprises, one of the two applicants, dropping Isle
of Capri as a financial backer and switching to
Innovation Capital Holdings of El Segundo, California. HTA president Jeff Smith, who represents the second applicant, Centaur Racing, said
of the development, “Once again, we are ready
to proceed and Bedford Downs is not. The lack
of an operator and secure financing are central
matters for Commission consideration.”
THIS COULD HELP
American Airlines has eliminated Saturday night
stay requirements in many markets. Check to
see about Palm Springs or Ontario, California.
ORC OKS WINDSOR DATE
After four hours of discussion, debate and differences, the Ontario Racing Commission unanimously accepted a date application from Windsor
Raceway, with conditions and over the objections
of the Ontario Harness Horse Association, thus
opening the way for a quick resumption of racing at the HTA member track in Windsor,
Ontario. The commission approved Windsor’s
124-day proposal, providing the track will make
up seven missed days, bringing the total racing
schedule to 131 days, and average 15 races a card
over the entire 131 days. The commission gave
Windsor until noon tomorrow to accept the proposal, or it will again reject the entire application.
REBATERS OUT, TESTING IN
In the aftermath of last week’s milkshaking and
betting scandal at Aqueduct, two positive and
overdue steps have been introduced. The New
York Racing Association has ended its relationship with four off-track betting sites with which
it had been doing business -- Euro Off-Track,
operations on the Isle of Man off Great Britain,
the International Racing Group and Elite Turf
Club in Curacao, and the Tonkawa Indian Reservation in Oklahoma. In addition, NYRA announced it was introducing milkshake testing at
its tracks, and was “aggressively” reviewing its
relations with other secondary pari-mutuel organizations (SPMOs) with which it has been doing business. This action has been urged by the
Thoroughbred Racing and Protective Bureau and
Standardbred Investigative Services for years. In
a related move, the Meadowlands announced it
also was cutting off simulcast servicing to the four
sites banned by NYRA. Officials are hoping for
expedited legislation in Albany to permit sodium
bicarbonate testing to begin as soon as
possible, perhaps as early as March.
January 19, 2005
Elsewhere in New York, Gov. George Pataki presented a highly controversial and hotly disputed
budget that includes a provision for eight nontrack VLT casinos throughout the state. Given
New York’s dismal legislative record -- it has not
met an April 1 budget deadline in 20 years -- it is
not likely that there will be any rapid action on
Pataki’s proposals, particularly in the Democratic
Assembly. Included in Pataki’s proposals is a
reorganization plan, passed in the Senate but ignored in the Assembly last year, to abolish the
New York Racing and Wagering Board and
merge its duties into one State Gaming Commission that would control racing, the Capital Investment Fund, and slots in the state. Speculation also arose about the renewal of NYRA’s license, which expires in 2007 after 50 years. A
committee could be appointed by December of
this year to solicit requests for proposals to operate NYRA tracks for 10 years starting in 2008.
ELSEWHERE IN RACING.....
In FARGO, ND, an hour before the trial of Susan Bala and her Racing Services got underway,
Bala’s partner and co-defendant in the proceeding, Raymundo Diaz Jr., pleaded guilty to three
counts and agreed to testify against Bala.....In
BROWARD COUNTY, Florida, county commissioners approved a special election March 8 in
which residents will vote to approve slots at tracks
there. If the referendum passes and legislation
does not amend it too drastically, slots could start
at HTA’s Pompano Park as early as July 1, although hours, number of machines, revenue splits
and taxes still are under discussion......In THE
POCONOS in Pennsylvania, the owner of Pocono
Auto Raceway unveiled a plan for a $300 million
casino complex, which he hopes to build if
awarded one of two resort licenses...At the
MEADOWLANDS, profit from the Presidential
Series Saturday night will go to Red Cross tsunami relief.
January 20, 2005
MINNESOTA OKS HARNESS
NEW MICHIGAN COMMISSIONER
The Minnesota Racing Commission yesterday
voted, 5-3, to approve a combined harness track
and card room that it previously denied. The
approval on reconsideration, after an earlier turndown because of concerns of competition with
Canterbury Downs, apparently clears the way
for the North Metro Initiative, a group headed
by CEO James B. Druck, to move forward with
plans to build its proposed $47 million complex
starting next spring, with racing in 2006. A 7day, 24-hour cardroom could open during the
first full year of racing. The license was granted
after a memo to the commission from the Minnesota HBPA saying it had “a basis for agreement” with Southwest Casino, one of North
Metro’s partners, for a fail-safe provision on thoroughbred and quarter horse purses at Canterbury, to be backed by a percentage of gross card
club revenues against any purse losses at the running track.
Thoroughbred Times.com reported this morning
that Christine C. White, currently director of agriculture policy at the Michigan Department of
Agriculture, was to be announced today as interim Racing Commissioner in Michigan by governor Jennifer Granholm. Ms. White would succeed Robert Geake, whose term expired Dec. 31.
White is a Notre Dame graduate in political science, and a daughter of former Michigan congressman Donald Albosta. The Times story, by
Greg Forde, was unconfirmed at press time, but
rumors of White’s appointment had been heard
in Michigan. The story said no details were
known on how long White will serve.
VERNON SAYS NO TO SCOTT
Vernon Downs parent, Mid-State Raceway, yesterday said “No thanks” to its former “savior,”
Shawn Scott, and his partner Vestin Mortgage
of Las Vegas. Scott and Vestin had offered to
invest another $9 million to get the track up and
running, as opposed to the $8.5 million offered
by harness horse owner and breeder and real estate magnate Jeff Gural, but Vernon said it preferred to deal with Gural, who should have no
problems getting licensed in New York State,
where Scott already has been denied a license.
Gural’s bid is contingent on getting legislation
changed in New York to increase track share from
VLTs, while Scott’s is not, but Scott’s ability to
get licensed was a major consideration, according to Mid-State chairman Paul Noyes.
Vernon is hoping to be able to reopen in
April for live harness racing, and get its
racino open as soon as possible.
WINDSOR ISSUES STATEMENT
HTA member Windsor Raceway resumes racing
Sunday with a 6 p.m. post time, and will race
131 days in 2005 with 1,965 live races. In announcing the schedule, track president John
Millson said the model validation “clearly establishes” the commitment of track owner Tandem
Entertainment to live horse racing through innovation. Millson said he believed the understanding will lead to “a new decision process
whereby race dates can be determined on
benchmarked data and not on unsubstantiated
claims.”
TRACKS SHARE FLORIDA COSTS
It is illegal in Florida for special interests to pay
for an election, but it is perfectly legal to pay for
expenses that may be incurred by the result.
Florida tracks in Broward and Miami-Dade apparently have agreed to pay a total of $6.5 million for expenses such as added security and road
improvements that may be necessary as a result
of the March 8 elections in both counties that
could open the way for slots at tracks in those
counties. State legislation can impact the
outcome regardless of the vote.
January 21, 2005
GOOD NEWS ON MEDICATION
$250 MILLION UP FRONT?
With the approval of model rules of the Racing
Medication and Testing Consortium by seven major racing states, and California moving to legalize milkshake testing, the sky is brightening on
uniform medication policies. Six mid-Atlantic
consortium states -- Delaware, Maryland, New
Jersey, New York, Pennsylvania and Virginia -adopted the RMTC rules yesterday, along with
Ohio, and in California the racing board approved TC02 testing subject to a legislative
change allowing such testing without split
samples. It took California almost a year to get
to this point, according to the board’s vice chairman, but at least they are there. They don’t have
any penalties yet for offenses, other than loss of
purse, but commissioner Richard Shapiro is campaigning for minimum penalties, including exclusion for a second offense. Arkansas, which has
been testing for milkshakes after racing, now is
discussing a change to test for them before racing. The noose is tightening.
That’s the number kicked around this morning
by James Odato, the Capitol bureau correspondent for the Albany Times Union, as the up-front
franchise fee for the New York Racing
Association’s license, which expires Dec. 31, 2007.
Odato says governor George Pataki plans to bid
out the NYRA franchise as early as this year, and
wants bidders to come up with a one-time franchise fee on or before March 31, 2007, with annual payments after that. A Pataki spokesman
said the $250 million is not set, and could be lower
or higher, but any number of that magnitude
could present serious problems for NYRA.
NYRA’s CFO, William Byrne, said, “NYRA as it
exists today certainly doesn’t have $250 million
to write a check to the governor. I can’t come up
with $250 million.”
SPEAKER: NO INDY SLOTS
The Speaker of the Indiana House, Brian Bosma,
announced yesterday that there was no hope for
Indianapolis mayor Bart Peterson’s plan for a
casino in that city to finance a new football stadium for the Indianapolis Colts, and that the
measure was dead on arrival. The House minority leader, Democrat Pat Bauer, said he thought
there might be alternatives, saying, “We have to
find another horse to ride.” Hopefully, the horse
might be stabled at HTA’s Hoosier Park and Indiana Downs, both of which have expressed interest in helping fund a stadium if they were given
pull-tab slots. The proposed stadium, planned
to replace the RCA Dome, the smallest in the
NFL, would seat 63,000, with a retractable roof
and expansion capabilities to 70,000 for
a Super Bowl, and would cost between
$550 and $700 million.
SUSAN SAYS SHE DIDN’T KNOW
The Racing Services federal trial began yesterday in Fargo, ND, and Susan Bala’s defense attorney said Susan didn’t know about problems
with more than $99 million in bets being unreported because none of her employees told her.
“She didn’t see any of this unfold before her,”
her attorney said.
A REALLY TOP MAN AVAILABLE
If you are looking for a really experienced and
skilled general manager or mutuel manager, one
of the very best in the business is available for
work immediately. He has worked at top levels
in both areas, and is an indefatigble worker. For
further information, contact Stan Bergstein at the
HTA office.
RESERVATION DEADLINE NEAR
You have two weeks to make room reservations
for the joint HTA/TRA meeting, after which
it’s open season. Contact Cindy at HTA to
assure a soft bed.
January 24, 2005
TURNING OFF THE FAUCET
WOLF TURNS SNOW TO GOLD
After 10 years of feverish expansion of gambling
in Ontario, the province has decided enough is
enough. Economic Development Minister Joe
Cordiano has said there will be no new installations of slots at tracks, no VLTs in bars and restaurants, no slot machines in bingo halls, and no
provincial involvement in Internet gambling.
Present installations, however, will be upgraded,
and Cordiano did not rule out that some sites
could get more slots. He said the new strategy is
intended to preserve the economic viability of the
gambling industry in Ontario, where 16 tracks
currently have slots and two more -- Picov Downs
in Ajax and Quinte Exhibition and Raceway in
Belleville -- will be permitted to complete plans
already underway. “Our strategy,” Cordiano
said, “will not only keep the industry competitive, it will ensure social responsibility is front
and center in the way we manage Ontario’s gaming industry.” Cordiano acted after a consultant
reported that the gambling market in Ontario is
nearing the saturation point, and that management of current operations and not creation of
new ones was the most prudent course. The study
was commissioned by the Ontario Lottery and
Gaming Corporation, which manages slots at all
tracks in Ontario.
Racing was flattened over the weekend by the
driving blizzard that covered the country from
the midwest to the east coast, but it was grist for
Steve Wolf’s mill in Florida. After sending out
bulletins all day Saturday that it was in the 70s
and Pompano was racing, the innovative Wolf
filed this lead on the track’s Saturday night card:
“Pompano Park was one of the few tracks in
North America that did not have to cancel racing Saturday due to snow. In fact, the closest
thing to snow at the track came in the form of
the pure white gelding Forever Laag ($55.20,
12.00, 6.80) a 26-1 shot that swept four-wide in
the final turn and posted a 1:54.4 three and onequarter length romp in the sixth race pace.”
BLOOMBERG NIXES SLOT IDEA
The governor of New York, George Pataki, wants
casinos all over the state, including five in New York
City, to help raise money for schools, but the mayor
of New York does not like the idea. Mayor Michael
Bloomberg says he has never been a great fan of
gambling and that “the big problem that I have
with it is that it is a very variable income source,
when most of the city’s expenses are fixed and longterm.” Bloomberg has allies in Assembly Speaker
Sheldon Silver, who also dislikes the idea,
and City Council Speaker Gifford Miller,
but the all-powerful Senate Majority
Leader Joe Bruno supports Pataki.
GETTING RACY IN THE AIR
The giant Airbus A380 is still three years from
flying commercially, but it hasn’t slowed down
publicity-wise Richard Branson, part owner of
the quaintly named Virgin Atlantic airline.
Branson was in France preparing for last
Tuesday’s roll-out of the first giant doubledecker,
to seat 555, in Toulouse, and as usual he was in
rare form with the press. He told reporters that
the Virgin form of the huge plane would contain
a gym and casino offering blackjack and roulette
in both economy and business class, and by the
way it would have double beds as well. Never
one to miss an opportunity, Branson said, “Since
you have gaming and you have private double
beds, maybe there are two ways of getting lucky
on a Virgin plane.”
APPLAUSE! APPLAUSE!
Messages from all over the place congratulating
HTA on its naming Dean Hoffman, executive editor of Hoof Beats and the sport’s most prolific
writer, as winner of the 2005 Messenger Award.
The response was the largest of its kind ever
received here on a Messenger recipient.
January 25, 2005
THE VLT NUMBERS IN NY
SHARBAUGH GETS USTA NOD
The Albany Times Union yesterday published
revenue figures for 2004 for New York’s four
racinos, with Saratoga Gaming and Raceway
leading the pack. The track’s racino produced
revenues of $80.65 million from Jan. 28, 2004 to
Jan. 15, 2005. That number will rise to some $83
million by the Jan. 28 anniversary date, a bit
short of the $95.26 million projected three years
ago in studies conducted at the time, but still formidable for a first-year operation that spent time
working out inaugural problems, and is still improving its operation. According to the New York
state Lottery Division, Finger Lakes Gaming and
Race Track was second in revenue production
during that period with $57.9 million, Mighty M
Gaming at Monticello Raceway had $34.2 million, and Fairgrounds Gaming and Raceway near
Buffalo produced $29 million in revenue.
Eric M. Sharbaugh, 47, the son of former Pennsylvania harness racing executive Dick
Sharbaugh and currently vice president and corporate secretary of Info-Matrix corporation,
which specializes in providing custom Web and
Internet solutions to the government, has been
chosen by a USTA selection committee to succeed Fred Noe as executive vice president of
USTA. Sharbaugh has had a lifetime interest in
harness racing, owned horses, and says he funded
much of his college education at Penn State,
where he graduated with honors in 1980, by announcing races on the Pennsylvania fair circuit.
He is expected to be confirmed for the job by the
USTA board when it meets March 19-21.
THE WILD TALE UNFOLDS
As the trial of Racing Services and its principals
Susan Bala and Raymundo Diaz Jr. moves forward in Fargo, ND, the scenario begins to take
on the tone of a movie or television mystery show.
The names of high rollers with code names like
Boomer and Cigar have been invoked, and one
teller told the court that after federal agents had
raided Racing Service’s satellite gaming site in
Fargo, company officials sent her several blocks
away to set up operation with another betting
machine in an office Diaz maintained there. The
teller who testified worked for Global Contact
Inc., another firm owned by Diaz. Yesterday’s
session produced more explosive testimony, when
another former teller said that Gerald Uvari, the
alleged Gambino crime family member and one
of 17 defendants named in the 88-count Aqueduct indictment earlier this month, visited Racing Services and posed with tellers and
owner Susan Bala.
In other industry employment news, president
Joe Costa of HTA’s member Red Mile has announced the appointment of Kevin Mack, currently director of operations and racing at Hoosier Park, as the new general manager of the historic Lexington track. Tom Bannon, who has
been with Hoosier Park since its opening 11 years
ago and has served as vice president of communications since 2000, has been named vice president of operations and communications at the
Anderson, Indiana, HTA member.
TIOGA HOPES FOR JUNE DEBUT
Weather problems in New York state are holding
up work at Tioga Downs, the former quarter
horse track that owner-breeder Jeff Gural bought
last June for some $3 million and is converting to
a harness operation. Mark Phifer, project manager for the facility, said that he hopes to have
the track ready for an opening by Memorial Day.
The track is being resurfaced, the 3,100-seat
grandstand is being completely renovated, barns
are being re-roofed and upgraded, and a buffetstyle restaurant is being installed. Grooms
quarters also are being built.
January 26, 2005
NYRA OUSTS 6 MORE OUTLETS
UNUSUAL TWIST AT VERNON
The fallout from the Aqueduct indictments continues, as the New York Racing Association announced it will terminate sending signals to six
more simulcasting outlets. The six are Racing
and Gaming Services of St. Kitts, West Indies;
Lakes Region Greyhound Park in Belmont, NH;
Capital Sports Limited, Canberra, Australia;
Darwin All Sports Ltd., Darwin, Australia; Coeur
d’Alene Casino, Worley, Idaho; and the Excelsior Casino in Aruba. NYRA’s senior vice president, Bill Nader, said of the suspensions, “We
need to know more about the ownership, clientele and business practices of these simulcast
sites.” Predicting that the action could result in
a $10 million loss to NYRA, Nader said, “Hopefully we can recover some of that handle through
other outlets, which will lessen the economic impact of the decision.” NYRA’s new president and
CEO, Charles Hayward, said that NYRA has
made great strides in improving the transparency
of its operations, and added that it felt “those
who do business with us should be held to these
same high standards.”
In an unusual arrangement in the dispute over
Vernon Downs’ ownership, contending bidders
Jeff Gural and a partnership of Vestin Mortgage
and Shawn Scott have agreed to each put up
$75,000 to tide the track over for a week until
bankruptcy judge Stephen Gerling decides who
will get to invest in the track. Vernon’s parent
Mid-State Raceway accepted an $8.5 million offer from Gural and turned down a $9 million bid
from Vestin. Under the agreement in bankruptcy
court the party that wins Gerling’s decision will
pay the loser’s $75,000 loan. The $150,000 is
needed because Mid-State’s interim CEO, Justice Cheney, told the court Vernon would be completely out of money by the end of this week or
Monday at the latest.
In related developments in the Racing Services
trial in Fargo, ND, the former vice president of
the company, Raymundo Diaz Jr., claimed he did
not know the operation was not properly licensed
until three months after it opened. Diaz said he
learned about it only after his CFO and controller showed him an account statement for a company called Brixcorp that was used to disguise
the Fargo betting site of Racing Services. Diaz,
who said he lived with co-defendant Susan Bala
on two occasions, testified against her after pleading guilty to three counts of operating an illegal
betting operation. He said he and Bala had dinner in New York with Gerald Uvari, one of Racing Services’ big bettors indicted in the
Aqueduct betting ring scandal last week.
Diaz will continue testifying today.
HOOSIER TAB HEARINGS BEGIN
State legislators in Indiana begin hearings today
on proposed bills that could provide 2,500 pulltabs, similar to slot machines, at HTA members
Hoosier Park and Indiana Downs. A Republican sponsor of one bill said putting the slots at
the two tracks would provide enough funding to
enable construction of a new stadium for the Indianapolis Colts. A casino in Indianapolis already
has been ruled out by Indiana’s new governor,
Mitch Daniels, who says that if the legislature
passes a slots bill he prefers awarding the licenses
by competitive bidding among all interested parties.
In Iowa, meanwhile, the Racing and Gaming
Commission yesterday approved a $60 million
expansion of HTA member Prairie Meadows
Racetrack and Casino. The expansion would add
500 slots to the 1,500 already at the racino, and
would double the number of table games to 65.
GM Bob Farinella says the expansion should be
completed by April of 2007 and will boost revenue from $160 million a year to $200 million.
January 27, 2005
SLOT HOPES DIM IN INDIANA
ANOTHER FED TRIAL BEGINS
Chances for slots at Hoosier Park and Indiana
Downs dimmed yesterday, when the chairman
of the House Public Policy Committee said he
won’t allow a vote on the issue unless the proponents and opponents get together on a compromise, which seems unlikely. The chairman, Robert Alderman, said, “This is not my issue. I certainly don’t live or die on this issue. I will drop it
in the trash can before I let it become political, I
can tell you that right now.” Alderman also said
that if he takes the bill off the table, it will not be
revived this session. The issue at the moment
has evolved into one between the Democratic
mayor of Indianapolis, Bart Peterson, and the
new Republican governor, Mitch Daniels, over a
new stadium for the Indianapolis Colts. Peterson
apparently has abandoned his quest for a casino
in downtown Indianapolis, realizing there is no
chance of getting that accomplished, but he still
hopes to raise $46 million a year for 30 years,
which is what he says is needed. In another Indiana development, three of the seven members
of the state gaming commission resigned in response to governor Daniels’ call for them to do
so. So far, 17 members of various state boards
have turned in their resignations, although
Daniels is not expected to accept all of them.
While the Racing Services trial droned on, another federal trial was getting underway in Providence, Rhode Island, where Dan Bucci, former
CEO of Lincoln Park, and Nigel Potter, former
CEO of Lincoln’s owner, Wembly Plc, are facing
federal bribery charges. U.S. district judge Mary
Lisi spent yesterday interviewing jurors, and in
federal court, trials begin immediately after jury
selection, which is expected to be completed this
week. Bucci, Potter and Lincoln Park are under
federal indictment for allegedly attempting to pay
a bribe of millions of dollars to an attorney whose
cousin and law partner was speaker of the House
of Representatives in Rhode Island at the time,
supposedly to stop a Narragansett Indian bid for
a casino and to add slots at Lincoln Park.
MORE DIAZ-BALA TESTIMONY
The romance clearly is over between Raymundo
Diaz Jr. and his former boss and buddy, Susan Bala.
Yesterday, as the Racing Services trial continued
in Fargo,ND, Diaz testified that he had shared concerns with Bala about state taxes not being paid a
month before the outfit was raided, and that she
had told him she would take care of the matter.
The accountant who prepared Bala’s income tax
returns said that as betting increased so did Bala’s
salary, leaping from $120,716 in 2001 to $683,624
in 2002, then dropping back to $122,815 in
2003, after the golden goose was stricken.
DOES THIS SURPRISE YOU?
The governor of West Virginia, looking to privatize the state’s workers’ compensation program,
has decided a good place to help finance it would
be the state’s race tracks. He is proposing to get
at least $20 million of the needed $230 million by
splitting the slots’ contribution to purses between
purses and the state, with the state’s share capped
at $20 million. The tracks received $91.9 million
in purse subsidies from slots in the 2004 fiscal
year that ended June 30.
HAVE A DRINK, WITH SLOTS
The Oregon State Lottery Commission, urged by
governor Ted Kulongoski, voted unanimously
yesterday to allow slot machine-style games in as
many as 2,200 bars and restaurants across the
state. The establishments could have the electronic machines online as early as July 1. Bars
and restaurants have had video poker in Oregon,
but to get the new slots they will have to agree to
a reduction in their share, which produced $164
million in profits on video poker last year.
January 28, 2005
BIG PLANS FOR POCONO
TRACKPOWER JOINS GURAL
Robert Soper, the youthful new president and
CEO of Pocono Downs, lost no time in telling of
the Mohegan Tribal Gaming Authority’s ambitious plans for the track after the group closed
on its $280 million acquisition of the track and
its five OTB parlors from Penn National Gaming. Soper said the Mohegans expect to spend
$175 million on new construction, furnishings and
equipment for the track and its racino, in addition to the $50 million upfront fee on receipt of
the gaming license. Although the designs are not
yet complete, Soper said they will include a racino
for between 1,500 and 3,000 machines initially,
along with some restaurant and retail facilities
and a small entertainment area.
TrackPower, Inc., and its CEO John Simmonds,
partners with Jeff Gural in reopening Tioga
Downs in Nichols, NY, near Binghamton, have
announced that the company will be entering into
a joint venture with Gural in his pursuit of
Vernon Downs. Mid-State Raceway, the parent
of Vernon Downs, accepted an offer two weeks
ago from Gural to contribute $5.4 million on an
interim basis for continuation of operations, and
the TrackPower announcement says that on confirmation of Vernon Downs’ Chapter 11 plan, the
loans will be converted to 80% of the issued publicly traded common stock of the reorganized
debtor. It says that if approved by the Bankruptcy Court, TrackPower and Gural will each
hold one-half of the 80% interest acquired on
confirmation and each will contribute one-half
of the funding required.
In a related and bizarre development,
Pennsylvania’s gaming law provision for challenging the sales price of tracks has been mentioned in press reports. Aside from the dangerous precedent of dictating the sale price of private property, what the Mohegans paid for
Pocono has no relationship to the $47 million that
Penn National paid for the track nine years ago.
Slots were a far-off and far-from-certain dream
at the time, and the present price also has little
or no relationship to the $53 million that Magna
Entertainment paid for The Meadows in 2001,
also long before anyone knew whether Pennsylvania would pass a racino law. In typical press
fashion, the Philadelphia Inquirer appeared to be
making an issue of the price provision, but experts in the field made light of the non-issue. The
Inquirer’s John Sullivan, who wrote the story, did
quote William Thompson, a professor of public
administration at the University of Nevada-Las
Vegas, who said of the pricing question, “There
is no sense to that. It’s rent control. We have a
marketplace that tells us what the value
of something is.” He’s right, and the
gaming commission should make short
work of dismissing the matter.
BALA CATCHES MORE HEAT
Leonard (Lenny) Del Genio, a Las Vegas handicapper who worked for Susan Bala for five years,
testified yesterday at Ms. Bala’s federal trial on
illegal gambling charges that “she knew everything that happened” at Racing Services, saying
“Nothing ever was ordered without Susan’s full
authority and permission.” His testimony contradicted the defense argument that she wasn’t
aware that $99 million in bets were going unreported and untaxed at her Fargo operation.
TIME RUNNING OUT FOR ROOMS
A high-powered agenda for the upcoming HTA/
TRA meeting will be announced early next week,
and if you plan to hear it and take part in it and
have not yet made hotel reservations with Cindy
Knox at the HTA office, you had better do so.
HTA’s room block expires the end of next week
for the March 8-12 meeting at the Hyatt Grand
Champions resort in Indian Wells, California.
NEWS FROM ALL FRONTS
A very busy day in the world of racing.
In New York, the state Racing and Wagering
Board withdrew its approval for state racetracks
to engage in simulcasting with 10 outlets previously singled out by individual tracks, thus barring all tracks in New York state from doing business with them. It also was announced that
NYRA and the New York Thoroughbred
Horsemen’s Association were funding the freezing of urine samples at Dr. George Maylin’s laboratory at Cornell, keeping them on hand for use
as new tests for performance enhancing substances are developed.
At Saratoga Springs, Saratoga Gaming and
Raceway announced it was eliminating its gift
shop as part of an expansion of higher stakes slots
for high rollers. Up to 20 new machines with
bets ranging from $5 to $25 will be installed.
Shawn Scott, suing again, now is seeking to have
five directors who run Vernon Downs disqualified for incompetence. Justice Cheney, one of
the five and the track’s interim CEO, said Scott
was “grasping at straws.”
In Kentucky, the Horse Racing Authority is expected to vote this week to recommend legislation to create a Kentucky Injury Compensation
Fund for licensed jockeys, apprentice jockeys
and exercise riders in the state. The action came
at the request of governor Ernie Fletcher, and
presumably was inspired in part by a blistering
four-part article in the Lexington Herald-Leader
by writer Janet Patton on conditions on backstretches in the state. We presume, although thoroughbred journals might not report it in any
event, that the state fund would cover
harness drivers and grooms as well as
jockeys and thoroughbred employees.
January 31, 2005
In Paris, France, trotting fans have a new national hero after Jag de Bellouet won the world’s
richest trotting race, the Prix d’Amerique, with
roughly $650,000 to the winner, just one week
after winning the $900,000 Prix de Cornulier, the
world’s richest race for trotters under saddle. No
horse had been able to accomplish that double
triumph in 30 years. The Hambletonian, scheduled to go for a purse of $1.5 million this year,
will regain it status as the world’s premier trotting race. Jag de Bellouet’s owner, incidentally,
expressed no interest in racing his champion in
the U.S. this year, at least while basking in the
glory of his double classic victory in France.
In Iowa, Prairie Meadows Racetrack and Casino
was forced to return an unsolicited $10,000 check
to AmericaTab after the state attorney general
ruled it is illegal for Prairie Meadows to take payments from sites that offer Internet or phone betting to Iowa residents. Jack Ketterer, executive
director of the Iowa Racing and Gaming Commission, said the thought was that it “would be
taking fruit from a forbidden tree.”
In Maine, Penn National Gaming is considering
the possibility of building its $75 million racino
at a location other than Bangor Raceway, the
city’s historic downtown harness track. The
state’s slot law allows the racino to be built within
a roughly half-mile radius of the center of the
racetrack. Asked if Penn National was engaged
in negotiations with any particular landowner,
spokesman Eric Schippers said, “That’s probably
too strong a way to put it. We have had some
discussions.”
In Pennsylvania, the director of the Wilkes-Barre/
Scranton airport thinks it should have 100 to 150
slots “to improve our bottom line, big time,” but
legislators from both parties, who fought for a
year over the slots bill, said in essence, “no
dice.”
February 1, 2005
JOCKEYS’ GUILD RELENTS
THE GOVERNOR’S PLEASURE
Under pressure from a California Horse Racing
Board committee chaired by commissioner Richard Shapiro, the Jockeys’ Guild has agreed to
allow the racing board to examine its financial
statements and conduct a limited audit of the organization. The Guild, through its attorney
Barry Broad, assured Shapiro that he would be
able to see anything he wanted to see, with one
caveat. That exception is that the racing board
limit its audit as to how the Guild spent the $1
million a year it has been receiving from California, but not delve into the expenses of Guild officials. Shapiro also was notified by Ron Warren,
a northern California jockey, in a letter endorsed
by 29 northern California riders, that they intended to form a California Jockeys Guild in the
hopes of managing state funds to jockeys. State
law, however, specifies that the monies, from
uncashed tickets, be managed by a group representing a majority of California riders. Some 300
are licensed in the state. A second request to review the books of the Guild, from the Thoroughbred Racing Associations, has gone unanswered.
An interesting situation has arisen in Indiana,
where the new governor, Mitch Daniels, is seeking to gain control of 17 state boards and commissions by requesting the resignation of 120
people working in those departments. In Indiana, members of most state boards and commissions serve fixed terms, and of the 120 who
Daniels asked to quit, only 33 resigned by his
deadline of last Friday. One of those who did
not, Christopher J. Murphy III, who serves on
the Commission for Higher Education, wrote
Daniels, “I do not serve in my capacity representing one political party or another, one educational institution or another, nor one Governor or another. My response is one of principle,
not of confrontation.” Daniels is not seeking to
fire or replace all of those who resign. He simply
wants the freedom to do so. Four of seven members of the state’s Gaming Commission resigned,
and all five members of the Horse Racing Commission did, but Daniels has not announced which
resignations he will accept. If Indiana were to
lose the executive secretary of the commission,
Joe Gorajec, it would lose one of the most knowledgeable and effective racing administrators in
the country.
BALA CASE READY FOR JURY
With the defense of Susan Bala and her Racing
Services winding down, it appears the federal case
may go to the jury as early as tomorrow, or possibly Thursday. Bala’s attorney noted that a
bonus check for $359,444 she received at the end
of 2002 was deposited in the Racing Services account rather than a personal account, but an assistant U.S. attorney made the point that “either
way, personally or through the company, she was
doing pretty well.” A former bookkeeper testified Monday that the pretax amount of Bala’s
2002 bonus check was around $500,000. An accountant testified that it was suggested Bala be
paid the bonus to limit tax liability of
Racing Services.
HOW SARATOGA $$ WERE SPLIT
Saratoga Gaming and Raceway, which celebrated
its first anniversary as a racino last Friday, paid
out more than $900 million to winning bettors.
The state picked up $82 million, of which 61%,
or $50 million, goes to support education in the
state. The track received 29%, or $23.8 million,
to be split on purses, and the Lottery commission got 10%, or $8.2 million, for administrative
costs.
CAMPBELL, YOUBET AGREE
Harness racing’s money-winning champion,
John Campbell, has renewed his contract
as a spokesman for Youbet.com.
February 2, 2005
IT AIN’T MUCH, BUT SUMPTIN
BEATING AROUND THE BUSCH
The word standardbred isn’t heard much in Kentucky, where thoroughbreds hold sway, so it is
encouraging to learn that Gov. Ernie Fletcher’s
new plan for breeders awards, drafted in part by
state senator Damon Thayer, includes harness
racing in a plan to establish a breeders’ award
program from stud fees generated in Kentucky.
Under the proposed plan, monies derived from a
6% tax on stud fees would go not to the state’s
general fund, but to breeders, with thoroughbreds getting 80%, standardbreds 13%, and
other breeds 7%. The 13% to harness horse
breeders would amount to roughly $1.8 million.
The tax law on the sales tax also is to be altered,
providing that out of state residents who buy
yearlings or 2-year-olds in Kentucky and keep
them there no longer would have to pay sales tax.
Currently they have to pay tax if the horse is left
there more than 60 days.
Michael Busch, speaker of the Maryland House
and arch foe of slots at tracks, now is sponsoring
a bill that would legalize them in Maryland, but
only at six locations he favors. Busch says he has
agreed to introduce a bill, with his name at the
top of sponsorship, although he plans to vote
against it. That’s what the man said, according
to NBC.
In another Kentucky development, Democratic
representative Tom Burch of Louisville said he
planned to file two separate gambling bills, one
of which would provide for slots at Kentucky
tracks and the other that would legalize them by
local referendum. Burch says, “The money is
there, people are going to gamble, so why not keep
the money here in Kentucky?”
PENNSYLVANIA WANTS MORE
The first slots at tracks in Pennsylvania still are
many months away, but the Democratic leader
of the House and the House Democratic whip say
they’re going after more revenue before the first
slot jingles. Both House leader H. William
DeWeese and whip Michael R. Veon say they plan
to sponsor legislation that would allow table
games at the 14 slot locations that are now authorized, but do not yet exist. In a joint statement, the two legislators say they see no
difference between playing blackjack and
poker and playing slots.
OH OH, OHHA AT IT AGAIN
The Ontario Harness Horse Association does not
lose easily, or graciously. Still apparently seething over the award of dates to Windsor Raceway, the truculent horsemen now are filing a class
action lawsuit against the track for $10 million
for loss of income while the track was closed and
for supposedly breaching an agreement with
OHHA. John Walzak, the president of OHHA,
called the action “absolutely a watershed moment
for Ontario racing.” The suit claims, among other
things, that Windsor has some $1 million in a trust
fund that belongs to horse people. John Millson,
Windsor Raceway’s president, said he believes
the claims are without merit “and brought tactically to extract concessions from Windsor Raceway with respect to live race dates,” and he called
them an attempt by OHHA to once again litigate
the same race date issues that were before the
Ontario Racing Commission and approved by
that body. Millson said he is “hopeful the courts
will expeditiously recognize this claim for the
negotiating ploy it is.”
PATAKI, MOHAWKS, SETTLE
Governor George Pataki of New York gave the
Mohawk tribe what it wanted yesterday, settling
a land claim involving 12,000 acres in northern
New York. Under the settlement, the Mohawks
get $100 million and the right to add 13,400 acres
to their reservation, but no specific casino compact, although the tribe still hopes to build
one near Monticello.
February 3, 2005
MAJOR EXECUTIVE CHANGES
ELSEWHERE IN RACING
Bruce Garland, a veteran of 14 years of service
at the Meadowlands and the senior executive vice
president of the New Jersey Sports and Exposition Authority, is retiring. Garland, an attorney
who has been an industry leader during his entire tenure at the Meadowlands, served as president of Harness Tracks of America from 1998 to
2000, and played a major role in obtaining an
$86 million purse agreement with Atlantic City
casinos and bringing the Breeders Cup to
Monmouth Park in 2007. Garland has spent
nearly 30 years in public service, and in retiring
he paid tribute to his colleagues, saying, “I’ve
been privileged to work with the professional staff
at the NJSEA; they are the best in racing.”
The Maryland racing industry, turning proactive in its efforts to get slots, has submitted a 15page document to House Speaker Michael Busch,
outlining a total revitalization of the important
Maryland industry if slots legislation were passed.
Busch remained non-committal, but did call the
document “the most substantive thing we’ve received.” Magna Entertainment, which owns
Laurel and Pimlico; William Rickman, the operator of Ocean Downs, and the Maryland State
Fair signed the document, and Rosecroft Raceway will be included in the endorsement and program once its sale to the family of Peter Angelos
is completed. In a related development, a Maryland delegate is filing a bill to close HTA member
Ocean Downs and lay the foundation for William Rickman to open a new track in Pocomoke
City. Rickman is reported to be in favor of the
move.
Dennis Dowd, former chairman of the New Jersey Racing Commission and a veteran executive
who headed Freehold Raceway, Rosecroft Raceway, Ocean Downs and, briefly, Vernon Downs,
will move up from his current post as vice president of off-track wagering to become senior vice
president of racing.
Chris McErlean, who started his racing career
as executive assistant at HTA and has been general manager of the Meadowlands, now takes on
new responsibilities as vice president of racing
operations for both the Meadowlands and
Monmouth Park.
In another executive shift, Mark Loewe, former
Operations and Racing Director at Pompano
Park, is leaving Florida to become Pari-Mutuel
Marketing Manager at Prairie Meadows Racetrack and Casino in Altoona, Iowa.
Vince Donlevie has been named senior vice president and general manager of Harrah’s Chester
Casino and Racetrack, now in development
in Chester, PA, and Annie Allman has
been named vice president of operations
and assistant general manager.
The defense rested in the Racing Services’ case
in Fargo, ND, with defendant Susan Bala essentially telling the court she was unaware of the
events for which the federal government is seeking her conviction. She said that when she found
out wagers at Racing Services were four times
the normal amount, “it was staggering to me.”
In the Dan Bucci trial in Rhode Island, the government produced documents showing that Bucci
had recommended “a $1 million retainer for four
years, without strings,” to the law firm representing the track as “a clear message of gratitude and
a willingness to share its success.”
In Illinois, Ontario trainer Doug McIntosh is vigorously fighting a 180-day suspension levied by
the Illinois Racing Board, saying “the level the
horse tested at would not be a positive in any
other jurisdiction.” McIntosh has not had a positive test in 37 years of racing, and noted that
four recent cocaine tests in horses in Illinois
resulted in $500 fines.
February 4, 2005
NOE GETS HIGH HTA HONOR
ELSEWHERE IN RACING
Fred J. Noe, retiring executive vice president of
the United States Trotting Association, has been
named the 2005 recipient of Harness Tracks of
America’s Distinguished Service Award.
IN KENTUCKY, the turbulent medication issue
continued to boil, with the state’s HBPA resisting adoption of the Racing Medication and Consortium recommendations. The state’s Equine
Drug Research Council meets in Lexington today to consider standards, and Keeneland and
Churchill Downs announced they will test for
milkshakes at their meetings. Nick Nicholson,
president of Keeneland, said that while a track
or private solution was better than doing nothing, he wished the Kentucky Horse Racing Authority would take action of its own as soon as
possible. The Authority had been waiting on
today’s Drug Research Council recommendations.
Noe, whose 12-year stewardship transformed
USTA into a modernized, computerized and
highly efficient service organization, leaves the
stage as he entered. His first public appearance
on assuming his USTA duties in 1993 was a speech
at the HTA meeting held that year at the Arizona Biltmore in Phoenix, and his public farewell will be at this year’s HTA joint meeting with
the Thoroughbred Racing Associations at the
Hyatt Grand Champions in Indian Wells, California, March 11.
Noe’s tenure has been marked by unprecedented
goodwill and close cooperation between USTA
and HTA and resulting progress in the industry.
One of the most involved of all men to serve in
the post, Noe emersed himself in harness racing
after leaving as president and CEO of Stihl Inc.,
where he served for 15 years. He became an avid
amateur driver and visited breeding farms and
racetracks across the country and overseas, and
won international respect for his involvement and
dedication to the sport, and for his accomplishments in bringing USTA into the 21st century as
an industry leader.
FBI’S FABIAN NEW TRPB HEAD
Franklin J. Fabian, a 20-year veteran of the FBI
and most recently assistant section chief in the
bureau’s counter-terrorism division, has been
named successor to Paul Berube, who is retiring
as president of the Thoroughbred Racing Protective Bureau and Standardbred Investigative
Services April 1. Fabian took over investigating
and dismantling terrorist groups after
Sept. 11, 2001, and he also was responsible for oversight of FBI undercover operations.
IN PENNSYLVANIA, the contest between Centaur Inc. and Bedford Downs for the final harness racing license in the state could wind up in
court. Bedford is challenging a hearing
examiner’s decision not to amend or extend its
application time to arrange financing, and either
side can contest in Commonwealth Court the license award from the Pennslvania Harness Racing Commission, expected in two to three weeks.
IN FARGO, ND, a 12-person jury is deciding the
fate of Susan Bala on illegal gambling charges.
The case went to the jury yesterday, after the
assistant U.S. attorney prosecuting the case ridiculed the argument that Bala did not know $99
million in wagers were being processed in a related operation just a few blocks from her Racing Services headquarters.
IN WASHINGTON, a redrafted version of the
American Horse Slaughter Prevention Act was
introduced in the House of Representatives. A
strong supporter is Rep. Ed Whitfield, the Kentucky Republican whose wife Constance is a
member of the Kentucky Racing Authority.
BALA GUILTY ON ALL COUNTS
A federal jury has convicted Susan Bala and her
company, Racing Services, on all 12 counts of illegal gambling against each, after a trial that
began on Jan. 18. The company also was mentioned in a federal indictment in New York involving three alleged members of the Gambino
organized crime family who were running bets
through four rebate shops, including Racing Services. Ms. Bala, smiling as she emerged from the
federal courthouse in Fargo, ND, after the fivewoman, seven-man jury found her guilty after
six hours of deliberation, told reporters “The case
isn’t over.” She faces up to 20 years in prison
and a $500,000 fine for each of the eight convictions on money laundering and one on money
laundering conspiracy, and up to five years and
a $250,000 fine on single counts of illegal gambling and conspiracy to conduct it. The conviction on transmission of wagering information
carries up to two years in prison and a $250,000
fine. No sentencing date was set, but jurors return today to hear evidence in forfeiture allegations against Bala, RSI, and her former boyfriend
Raymundo Diaz Jr. and his company, Global
Contact. As part of a plea agreement, Diaz, who
testified against Bala, agreed to a $100,000 personal money judgment against him. His sentencing is set for April 1.
ELSEWHERE, IN COURT NEWS
The attorney for jockey Jose Santos, who lost a
$48 million libel case against the Miami Herald
in December when a U.S. judge ruled that a federal court in Louisville had no jurisdiction, says
he probably will refile the case in south Florida.
Jose sued the paper and its parent, KnightRidder, after it printed a story and photograph
suggesting he was holding a device of some sort
in his victorious ride of Funny Cide to
victory in the 2003 Kentucky Derby.
February 7, 2005
In federal court in Providence, Rhode Island, the
former CFO of Wembley USA, read from handwritten notes of a company meeting on Jan. 24,
2001, stating that a proposed payment to the law
partner of the then Speaker of the House would
increase from $500,000 to $1 million a year if
Wembley’s Lincoln Park got more slots. Defense
lawyers for former Lincoln GM Daniel Bucci and
former Wembley CEO Nigel Potter asked why
the handwritten comments were not included in
the official typed minutes of the meeting. Brent
said company executives had not decided to include the payment in the company budget, but it
appeared there when he received the budget in a
spreadsheet sent from Wembley’s offices in Great
Britain.
HONORS, HONORS
Members of the Harness Racing Museum and
Hall of Fame have voted Beach Towel and CR
Kay Suzie into the Living Horse Hall of Fame.
In Canada, Luc Ouellette was named Driver of
the Year, the brilliant 3-year-old pacing filly
Rainbow Blue was named Horse of the Year, and
Joe Stutzman was named Trainer of the Year as
Canada’s prestigious O’Brien Awards, named for
the late, great trainer-driver Joe O’Brien, were
announced.
Elsewhere in Canada, in a heated meeting of the
Ontario Harness Horse Association, the membership approved most of the agenda, but voted
down a proposal that would have allowed OHHA
directors to remove fellow directors who twothirds of the board considered disruptive or not
acting in the best interests of the association.
YOUBET REACHES A BILLION
Youbet.com announced a bet on Jan. 31 put it
over the billion dollar mark since it took
its first bet eight years ago.
February 8, 2005
JURY THROWS BOOK AT BALA
RACING CAN’T BEAT BUS(C)HES
The jury that found Susan Bala guilty on 12
counts of illegal gambling in a federal court in
Fargo, ND, threw its final punch yesterday, when
after a 45-minute forfeiture hearing it ordered
Bala to forfeit $19.7 million personally, which it
said was the revenue remaining after $99 million
in illegal bets had been paid to winners. Her company, Racing Services, was ordered to pay the
remainder of the $99 million to the federal government. The Grand Forks Herald said the jury
did not subtract about $12.8 million in rebates
paid to high rollers from Bala’s total forfeiture,
and the Fargo Forum reported that with the forfeiture verdicts in hand, the government now will
further investigate Bala and RSI to see what assets can be recovered. The paper said that could
include RSI’s international subsidiaries in Mexico
and Venezuela.
First it’s Michael Busch in Maryland, fiercely
fighting slots at tracks for the third year in a row.
Now it’s Jeb Bush in Florida, playing cute with
an already passed slots bill for south Florida.
That legislation -- Amendment 4, which allows
residents of Broward and Miami-Dade counties
to vote on slots at tracks -- is being used by the
Miccosukee tribe to argue that they are covered
too, and can operate slots at their casinos. Bush
doesn’t want to get in the middle of this, but he
is. Last week he said he isn’t ready to talk, begging off by saying, “This is very complicated
stuff.” Of course it is, governor. That’s what
governance is all about. Federal law specifies that
Indian tribes can negotiate with a state to operate whatever gambling on their land that is legal
within a state, and that the governor of a state
must negotiate in good faith within 180 days after a tribe requests talks to begin. The
Miccosukees made that request in November, just
three days after Amendment 4 was approved
narrowly statewide, and overwhelmingly in
Broward and Miami-Dade. That gives Bush until
May 5 to get started on negotiations. He clearly
is not ready now, but the issue is not likely to
help what kind of limitations on track slots come
out of Tallahassee. Whatever they decide will be
subject, of course, to a possible veto by Bush.
Senator Steve Geller of Hallandale Beach,
Florida’s foremost legislative authority on gambling, thinks Bush will push for very limited hours
and very high taxes in an attempt to forestall
tracks from installing machines by making them
economically unfeasible.
MASSACHUSETTS CUTS OFF NH
The four horse and dog tracks in Massachusetts
have joined others in the east in cutting off simulcasting signals to Lakes Region Greyhound
Park in northern New Hampshire, where the general and assistant managers were named in the
federal charges in New York involving alleged
members of the Gambino crime family.
BLB BUYING LINCOLN PARK
BLB, the company that had proposed to buy
Wembley USA for $554 million last summer and
then backed out, now is reported to be buying
Wembley and its Lincoln Park in Rhode Island
for $435 million, and says it will spend another
$125 million renovating it. That would be a $560
million package, and the mayor of Providence,
Don Carcieri, says he wants three conditions met
in the sale. He does not want a hotel or convention facilities built there, he wants the
Narragansett Indians cut in on the deal,
and that any growth in machines be dedicated to property tax relief.
YOUBET GIVES RTIP $100,000
Youbet.com, which recently passed the one billion mark in bets, has contributed $100,000 to
help endow a proposed faculty chair in racing
research at the Race Track Industry Program of the University of Arizona.
GENERAL SESSIONS AGENDA
Here are the agendas of the general sessions of
the HTA/TRA joint annual meeting Thursday
and Friday, March 10 and 11. Business sessions
will be held on Wednesday, March 9.
THURSDAY, MARCH 10
8:10-9:10 Women Run the World...and These Help
Run Racing. A Feminine View of Racing Administration
Cheryl Buley, NY Racing & Wagering Board
Ingrid Fermin, California Horse Racing Board
Lynda Tanaka, Ontario Racing Commission
Constance Whitfield, KY Racing Authority
9:10-10 New Approaches to Horse Racing Betting:
Wagering Possibilities & Out-of-Box Thinking
Lee Amaitis, Executive Managing Director, Cantor Fitzgerald and Vice Chairman, eSpeed
February 9, 2005
9:40-10:30 Issues Faced by All Drug Testing Programs Dr. Don Catlin, Director, UCLA Testing
Laboratories and Olympic testing consultant
(depending on testifying schedule in court proceeding in Lausanne, Switzerland)
10:30-11:15 Racing in a Wireless World
William Shanklin, Visiting Professor, University
of Akron
Nick Eaves, Senior VP, Marketing and Gaming,
Woodbine Entertainment
11:15-Noon The Realities of Wireless Transmission: Where It Is, Where It Is Going, and What
Racing Can Expect
Bob Rapp, Group Product Manager, Strategic
Enterprise Planning, Mobile and Embedded Devices, Microsoft Corporation
NEW GROUP IN SACRAMENTO
10-10:45 Tote & other comments & responses
10:45-Noon. The Impact of Negative News
On Legislation: Jay Hickey, President, American
Horse Council
On News Coverage: Bill Christine, Los Angeles
Times
On Marketing: Allen Gutterman, Hollywood
Park
FRIDAY, MARCH 11
8-8:50 Returning Fans to the Racetrack, and Solving Problems That Have Driven Them Away
Richard Shapiro, California Horse Racing Board
Bill Hoge, former California legislator and fulltime handicapper
8:50-9:40 Customer Relation Databases
Atique Shah, VP, CRM & Technology
Solutions, Churchill Downs
David Norton, Senior VP, Relationship
Marketing, Harrah’s Entertainment
A new group will replace Alan Horowitz’s Capitol Racing this fall at the Cal Expo state fairgrounds in Sacramento, California. Sacramento
Harness Association, headed by former California Racing Commission chairman Ralph
Scurfield, will operate the harness meeting starting Sept. 1 as a non-profit corporation, ending
10 years of Capitol Racing tenure at the fairgrounds. Horowitz, who unexpectedly did not
submit a formal bid for renewal, told the Sacramento Bee, “It wasn’t a matter of wanting to leave
Sacramento, but frankly the conditions in the
request for proposals were onerous. The rent was
high and the terms were inflexible. In good faith,
we felt we couldn’t meet those conditions.” Jack
Coffey, another former California racing commissioner involved in the new operation, speaking for himself and his partners in the venture,
said, “We want to plow any profits we may have
made as a private entrepreneur back into the
meet, the facility and the community.”
SLOTS ROUND 3 IN MARYLAND
Legislation providing for the legalization of slot
machines in Maryland was put on a fast track yesterday, and Senate President Thomas “Mike”
Miller predicted that his chamber would pass a
bill within a week. After that, however, the legislation heads over to the House of Delegates, where
similar legislation has died each of the last two
years. Gov. Robert Ehrlich appeared at Miller’s
side at a hearing of the Senate Budget and Taxation Committee and argued that his gaming legislation would not only assist the state’s struggling
racing industry but also generate hundreds of millions of dollars for public school construction and
other educational needs. The governor’s bill would
allow 15,500 slot machines at six locations across
the state, including 3,500 each at Pimlico, Laurel
and Rosecroft racetracks, 1,000 in Allegany
County (where Ocean Downs’ owner William
Rickman plans to build a track), and 4,000 others
to be placed at two additional sites. Legislative
analysts in Maryland predict the machines would
generate more than $1.5 billion a year by 2009,
with about half that amount flowing to the state.
YOUBET BUYS ‘RACING GROUP’
Online account wagering company Youbet.com
announced on Tuesday that it has signed a Letter
of Intent to acquire International Racing Group
(“IRG”), the privately held account wagering company based in Curacao. The purchase of IRG is
contingent upon certain events, including completion of due diligence, execution of definitive transaction documents and the approval of Youbet’s
board of directors. IRG was recently in the news
when it was named as one of four “rebate shops”
through which the individuals indicted in New
York for running an illegal gambling operation
placed bets. Youbet’s release notes that IRG
handled approximately $140 million in 2003
and $210 million in 2004, and that its clientele consists “predominantly” of “highvolume customers.” As a result of the news
February 10, 2005
that it’s attempting to purchase a known off-shore
rebate shop, Youbet announced that it has begun
the formation of an independent committee that
will review Youbet’s current gaming compliance
policies to ensure that it continues to employ “best
practices.” To better facilitate its review, Youbet
has hired Gregg Schatzman, former chief of investigations for the Nevada Gaming Control
Board, “to assist Youbet and the committee in
crafting and implementing any necessary protocols to ensure that, among other items, the protocols and safeguards of acquisition targets are in
line with the rigorous standards Youbet has established for its online and telephonic wagering businesses.” Schatzman will also conduct a review of
IRG’s business operations. Youbet said it expects
to add to the committee “representatives from the
horse racing, U.S. law enforcement and financial
services sectors” in the near future.
MARLENE BROWN DIES
Arrangements have been made for a memorial
service for Marlene Brown, wife of Hanover Shoe
Farms publicity manager Murray Brown. Brown,
who was 59, died Feb. 8 of lung cancer. The service will be held at 2 p.m. on Friday, Feb. 11, at
Temple Beth Israel, 2090 Hollywood Drive, York,
PA 17403. In addition to her husband, Brown is
survived by her son Andrew, two daughters, Jennifer Hodur and Stacey Zitto, and four grandchildren. In lieu of flowers the family suggests donations to the Standardbred Retirement Foundation,
49 East Main Street, P.O. Box 763, Freehold, NJ
07728, or the American Cancer Society, 924 N.
Colonial Avenue, York, PA 17403.
KENTUCKY SLOTS BILL DEFEATED
A bill to allow slot machines in every county in the
State of Kentucky died in a House committee yesterday. The bill would have permitted 11,000 slots
across the state, with local approval needed and
local governments deciding where to put the
machines.
February 11, 2005
HERPES CLOSES NORTHVILLE
SUPPORT FOR INDIANA SLOTS
The fourth case of equine herpes at Northville
Downs has forced cessation of live racing, but not
simulcasting, at the track, at least until Monday
and possibly for the remainder of the live racing
season, scheduled to run until April 2. The Michigan Department of Agriculture placed the track
under quarantine, preventing any horse from
entering or leaving the grounds, after the fourth
horse tested positive at the state’s diagnostic center at Michigan State university in Lansing. State
regulators met with Northville officials yesterday,
and an in-depth investigation is underway with
an epidemiologist from the U.S. Department of
Agriculture Veterinary Services office. In December, a barn at Northville was quarantined after
two horses were found to have equine herpes.
Both were euthanized, and a third horse tested
positive in January. The three horses were
stabled in separate barns, and the second barn
was quarantined until Feb. 4 when all horses were
moved to a different location.
Housekeepers, cooks, servers, limo drivers, bartenders and other hospitality industry members
of the Indianapolis Convention and Visitors’ Association were scheduled to rally at the state capitol today to show legislators their support for
expanded gaming in the state to help build a new
Indianapolis Colts stadium. Two bills currently
in the Indiana legislature would authorize slots
or slot-like pull tabs at HTA’s two Indiana members, Hoosier Park and Indiana Downs.
DEMANDS THREATEN JACKSON
Harness racing at Jackson Raceway in Jackson,
Michigan also is in jeopardy, but for an entirely
different reason. The Jackson County Fair Board
has moved to evict the Raceway, which operates
in exchange for at least $75,000 of its annual revenues from simulcasting. While the disagreement
involves simulcasting, Rakietin said the track,
which employs more than 100 people and produces
substantial tax revenue for the city and state, is
not likely to conduct live racing if the Fair Board
does not relent on its demands for a 30% increase
in rent. The mayor of Jackson called the Fair
Board’s action “shameful,” saying, “Where they
think they can get that much revenue from an old,
dilapidated building is beyond me.” Rakietin said
he will not meet the board’s terms and that
negotiations continue with MTR. Gaming
for purchase of 90% of the track.
BUT HOPES IN TEXAS FADE
A new slots bill has been introduced in the Texas
House of Representatives, but governor Rick
Perry, who supported an earlier bill, says a budget turnaround makes its chances dim. Although
the Houston legislator who introduced the measure said it could generate as much as $1 billion
a year for the state, Perry is distancing himself
from the proposal in view of a projected budget
surplus of some $400 million, telling the Fort
Worth Star-Telegram the budget turnaround has
reduced the need to raise money from slots.
TOP TRAINER TRIPS ON SHAKE
Jeff Mullins, second in wins at Santa Anita and
ninth nationally in purses won, is the first big
name trainer to pay for a high milkshake reading in California. Although the state legislature
has not yet passed legislation exempting
milkshakes from split sample testing, Santa Anita
has a track rule that will require all of Mullins
horses that race there in the next 30 days to do so
out of a 24-hour detention barn. Two other trainers, unnamed, with high positives, are having
their samples reviewed, and according to Dr. Rick
Arthur of the Racing Medication and Testing
Consortium one of them “is not off the hook.”
Mullins said he was being treated fairly, but
was unhappy that his name was the only
one revealed.
February 14, 2005
HUGH MITCHELL LEAVES WEG
VERNON GETS OK FOR $1.2 MIL
Hugh Mitchell, senior vice president of racing at
Woodbine Entertainment for the past seven
years, has resigned to become chief operating
officer of Western Fair Racing in London,
Ontario, where he previously worked for 15 years
in six different positions. Mitchell lives in Delaware, Ontario, nearby, and owns a farm near
London. He said of his move, “I’m coming home.
This is a lifestyle decision -- to be back home with
my family and my roots. Commuting and living
part-time in Oakville...has been fairly difficult.”
Western Fair has changed since Mitchell left it
to join Woodbine. It now has 750 slots, an arena,
a new agricultural facility and $65 million in renovations. Mitchell said he was amazed at how the
property had developed and evolved. As COO,
reporting to general manager Gary McRae,
Mitchell will oversee the daily operations of all
aspects of Western Fair, including its Imax theater, facility rentals, and the fair itself. David
Willmot, chairman and CEO of Woodbine, said
Mitchell had made “enormous contributions” to
WEG, adding, “In addition to his considerable
and valuable management skills, his exceptional
personal standards of integrity and fairness have
left an indelible mark not just on the Woodbine
organization but on racing in general. I will miss
him as a friend and key member of our management team.” Woodbine executive vice president
and COO Jim Ormiston will assume Mitchell’s
operating responsibilities on an interim basis.
A federal bankruptcy judge has given Vernon
Downs approval to borrow $1.2 million from harness breeder and real estate executive Jeff Gural,
presumably enabling the track to open with live
racing in April. The judge’s decision enables
Gural to appoint a new chief executive officer
and two members of the board of Mid-State Raceway, Vernon Downs’ parent. The judge refused,
however, to allow Gural to loan Mid-State another $7 million in return for gaining a controlling share of the company’s stock, saying that long
term the matter will have to go through a separate bankruptcy proceeding. The Syracuse PostStandard reported that decision could open a bidding war for the track, since at least five other
companies have made tentative offers to buy it.
One of those, Shawn Scott, quickly issued a press
release saying he was pleased that his offer had
“forced Mr. Gural to step up to the plate and
make further financial commitments.” Scott,
who holds a large mortgage on Vernon with
Vestin Mortgage of Las Vegas, said he still hopes
“the debtor will ultimately conclude that my offer is better, because it provides more money for
unsecured creditors, the horsemen and the track;
and more certainty of success....If he (Gural) does
not properly fund Vernon Downs, I am afraid we
will find ourselves back to square one in the coming months.”
Woodbine made other news Sunday when its Pick
7 pool was hit and returned $435,235.65, despite
a 44-1 shot winning the opening leg third race.
At the outset of Sunday’s card, the Pick 7
carryover was $259,697, and fans poured another
$175,539 into the pool on the third through ninth
races. The triactor on the third race,
which got things started with the $90
winner, paid $6,582.30.
GOLD IN THEM THAR HILLS
Southwest Casino corporation, which wants to
build a $47.5 million harness track north of Minneapolis-St. Paul, isn’t the only one who thinks
there is potential there. Gordon Graves, a Texas
gaming magnate who made his fortune manufacturing slot machines, announced a $50 million investment in the company that gives him
control. Graves and Jim Druck, CEO of Southwest Casino, said the deal does not change its
harness plans, and Graves said he would
not be involved in management.
February 15, 2005
ANGELOS CANCELS CLOSING
SLOTS DIE IN ROWDY INDY
Rosecroft Raceway was left at the altar this morning when, assembling for a 10 a.m. closing by the
family of Baltimore Orioles owner Peter Angelos,
they were told the deal had been cancelled because of Mr. Angelos’ concern over events in the
state capitol in Annapolis over the legalization of
slots. The development is doubly startling, since
a sophisticated power broker like Mr. Angelos
clearly had to be aware of the continuing impasse
between House speaker Michael Busch and governor Robert Ehrlich Jr. Whether he thought he
could resolve the impasse and discovered otherwise, or for whatever reasons, the decision not to
go forward leaves Rosecroft, which opens tomorrow, faced with its agonizing search for a buyer.
Thomas Chuckas Jr., Rosecroft’s HTA director
and COO, said of the Angelos family backing
away from a commitment, “The sale of the racetrack was never contingent on what may or may
not occur in Annapolis. The Angelos family committed to an absolute closing date of Feb. 15,
based upon the Maryland Racing Commission’s
approval. We are disappointed with these developments but will continue to move forward with
both live racing and simulcasting to move
Rosecroft into the future, starting tomorrow,
February 16th, when we reopen for business.
Cloverleaf Enterprises will be reviewing their
options as appropriate.”
In a raucous session marked by heated debate,
the Public Policy and Veterans Affairs committee of the Indiana legislature killed slot machine
legislation last night, rejecting a bill to authorize
5,000 slots to be split between HTA members
Hoosier Park and Indiana Downs by a vote of 7
to 4. The chairman of the committee said he now
considers the issue dead for the session, “unless
somebody walks up with a revelation that they
made a huge mistake.” Mike Brown, a spokesman for Indiana breeders, said the vote could be
a death blow for Indiana racing.
OHHA CLEARED, BUT FINED
The Ontario Racing Commission has issued the
report of its inquiry and investigation into the
Ontario Harness Horse Association’s management of purse accounts in Ontario. The commission found no evidence of corrupt or illegal
activity by the OHHA board or senior management, no specific rule violations, but a lack of
accountability and transparency within
the organization in the past. OHHA was
ordered to pay $100,000 to the Commission to cover cost of the inquiry.
YOUBET TAKES TRIP TO CHINA
Youbet.com, with an eye toward the 2 billion 300
million people living in China, has announced it
will open a non-betting horse racing entertainment Web site in April, exclusively for access by
customers in Mainland China. The site will feature live feeds from U.S. tracks, including HTA
member The Meadowlands, whose racing is conducted at times that align with daylight time
zones in China. Youbet said construction of its
site will include architecture that will enable
transmission of fully functional Chinese and
Spanish language sites in the United States, and
those will be operational by summer. Charles
Champion, Youbet’s CEO, said, “We’re launching the China site to be in a position to capitalize
on opportunities that could arise if Mainland
Chinese government acts to legalize aspects of
online gaming. Clearly, if gaming laws are liberalized, it will create a large potential market for
horse racing and Youbet.” A $50 million track is
now operating in Beijing and a $180 million complex is on the drawing boards for Hubei province in east central China, where 60 million people
live. The new Youbet site will be accessible only
from the Chinese mainland, will require free
trial memberships, and will not provide for
betting.
February 16, 2005
MORE ON ROSECROFT
WAS GOV. PATAKI JOKING?
The Baltimore Sun reported more details on the
surprising last minute cancellation of the Angelos
family purchase of Rosecroft Raceway. According to the story, track officials were waiting at
the settlement table yesterday morning when an
attorney for the Angelos family arrived to say the
family wanted a penalty-free extension of up to
60 days, which would expire just after the end of
this year’s legislative session. Rosecroft CEO Tom
Chuckas Jr. and his Cloverleaf colleagues took
this to mean that the Angelos group was putting
a condition on the sale contingent on whether a
slot bill passed, a far thing from certain in the
politically charged Maryland fight between the
governor and speaker of the house. According
to the story, the Angelos family will lose a $500,000
deposit, but retain a $7.2 million mortgage it had
purchased.
The governor of New York, George Pataki, has a
sense of humor, and we can only imagine he was
using it when he asked New York legislative leaders -- the same guys who have not met a budget
deadline in what? -- 20 years -- to come up “with
a quick resolution” of the slots delay that is costing New York nearly $3 million a day. Pataki
wants to get going with opening slots at Yonkers
Raceway on the Deegan Expressway and Aqueduct, and he told legislative leaders that he would
like the issue resolved before the state’s fiscal year
begins April 1. The delay in getting started is
costing the state $1 billion a year. A state appeals court last year struck down one key provision of the VLT law. A number of bills have been
introduced to correct the problem, but as usual
they are languishing in Albany. Both Yonkers
and Aqueduct need legislation to enable them to
obtain funding to begin major construction on
their racinos. Pataki wants the opposing parties
to get together, and senate majority leader Joe
Bruno said after the meeting, “I think we can
reconcile those differences in half an hour.”
Time’s up, Joe.
In another development in the matter, a local
Prince Georges county group of African-American investors who lost out to the Angelos family
in bidding for the track announced it remained
interested and was financially prepared to buy
it. Thomas Taylor Jr., a Fort Washington businessman organizing the effort, said his group will
buy Rosecroft irrespective of the slots debate.
“We’re going to buy the racetrack,” he said. “If
slots come, that’ll be an added benefit.”
NORTHVILLE: DOWN TO 3-1
The Michigan Department of Agriculture and
state racing commissioner announced yesterday
that Northville Downs must remain closed until
March 1, not Feb. 22 as previously indicated,
because of the outbreak of equine herpes at the
track. The state quarantine on horses entering
or leaving the track was extended, and all horses
entering any of Michigan’s seven tracks
are required to be vaccinated against
equine herpes immediately.
State controllers in New York, who have been
known to run for higher office, frequently turn
to racing when they want sure fire front page issues. Current controller Alan Hevesi is no exception. He has launched charges against trustees of the Agriculture and Horse Breeding Development Fund, which administers New York’s
Sires Stakes program, claiming inappropriate and
ineffective handling of operation of the fund.
Hevesi issued a bulky audit report with a host of
shortcomings, including lack of written procedures for important financial matters and failing to validate receipts from tracks that support
the program financially. Gov. Pataki has proposed eliminating the fund and the racing
board and placing their duties under one
agriculture department.
February 17, 2005
MD SENATE OK, HOUSE NOT
BALA WANTS VERDICT TOSSED
Rosecroft Raceway’s agonizing fight to get slot
machines took two new turns yesterday, one good
and one bad. The Maryland Senate rejected attempts to strip Prince George’s county, where
Rosecroft is located, out of the slots bill it is expected to pass. But the Prince George’s delegation in the House, where speaker Michael Busch
has been able to kill the bill in the last two sessions, are determined to make sure any slots bill
excludes the county. Senate budget and taxation committee chairman Ulysses Currie, who
strongly supports slots, told the Prince George’s
county Gazette that “the leadership of Prince
George’s county has said quite clearly that they
do not want slots in Prince George’s county,” and
suggested that perhaps “we don’t do Prince
George’s this year and revisit the issue in future
years.” The Senate bill, expected to pass today
or tomorrow, would allow 15,500 slots at four
tracks, including Rosecroft, and three offtrack
locations. The bill as proposed would provide
more than $800 million a year for public schools,
including $150 million for school construction.
The president of the Senate, Mike Miller, said,
“I’m fairly certain we’re going to get something
this year. If you care about kids and you care
about them going to school in quality facilities,
you’re going to vote for this bill.”
Susan Bala, found guilty on 12 counts of illegal
gambling and money laundering charges in federal court, now says the government did not prove
its case and wants the judge to throw out her
conviction. Bala’s attorney filed an appeal, saying Bala should be acquitted on all counts, but
the U.S. attorney who prosecuted the case said,
“These motions come as a matter of course.”
Bala’s appeal said, “The only question that remains is whether Bala should be convicted of a
criminal offense because of the manner of bookkeeping relating to her Racing Service’s parimutuel activities.” The jury ordered Racing Services to forfeit $99 million to the government, including $19.7 million from Bala individually.
Each of the 9 money laundering charges carries
a maximum charge of 20 years in prison, and the
other three counts have a maximum penalty of
12 years. No date has been set for sentencing.
SCOTT GETS LICENSE, FOR NOW
A state Supreme Court judge in New York has
reinstated the racing license of Vernon Downs’
majority owner, Shawn Scott, and has ordered
the New York State Racing and Wagering Board
to show cause at a March 11 hearing why Scott
is unfit to hold such a license. Scott was issued a
temporary license after he bought 52% control
of Vernon in 2002, but it was revoked in December, 2003, when the board said he had lied
on his application. Vernon Downs management recently opted to be bought by
harness breeder Jeff Gural rather than Scott.
CAL CONSIDERS TOUGH STEPS
With three thoroughbred trainers already facing detention barns for their horses as a result of
high milkshake readings, California’s racing
board is considering tougher steps in regulation.
The board’s medication committee, during a
more than three-hour meeting, considered the
illicit use of shock wave therapy; increased inspection of vehicles in the stable area; expanding the retention of frozen blood and/or urine
samples for future testing as more sophisticated
and sensitive tests are established; and clearer
penalty guidelines, one of the prime goals of the
Racing Medication and Testing Consortium.
KY TRACKS BOOST INSURANCE
Turfway Park and Keeneland have purchased
policies from AIG covering jockeys for up to $1
million in medical bills for accidents. Churchill
Downs is expected to follow, up from $100,000
limits at a 40% increase in premiums.
JOHANSSON GROOM OF YEAR
Emma Johansson, the first groom ever to care
for two HTA champions in the same season, has
been named Caretaker of the Year, the annual
honor awarded jointly by Harness Tracks of
America and Hanover Shoe Farms. Ms.
Johansson, a native of Columbia but raised in
Sweden, not only groomed the first Triple Crown
of Trotting winner in 32 years, Windsong’s
Legacy, but also cared for Housethatruthbuilt,
HTA’s champion 3-year-old trotting filly of 2004,
both racing in the remarkable trotting stable of
trainer Trond Smedshammer.
The Caretaker of the Year award is symbolic of
the key role played by all grooms, the unsung
heroes of the sport, in the success of their charges.
It was first suggested in 1982 by the late Delvin
Miller, winner of HTA’s Messenger Award that
year, in his acceptance “State of the Sport” speech
delivered by all Messenger winners, when he
noted that harness racing did nothing to honor
these stars of the backstretch. HTA responded
that year by naming Odell Short, caretaker of
Fan Hanover, which the previous year had become the first and only female pacer to win the
Little Brown Jug. In nominating Ms. Johansson,
Ted Gewertz, co-owner of both Windsong’s
Legacy and Housethatruthbuilt, wrote, “While I
am certain that each of the nominees has displayed the same hard work, dedication, care, attention and affection for the horse or horses in
his or her care that Emma has exhibited, Emma’s
credentials and achievements in 2004 go far beyond those admirable qualities. Neither of her
two champions was in the forefront for divisional
honors at the beginning of the racing season. The
fact that both horses were able to remain sound
and healthy for the entire season and achieve their
remarkable results was due in substantial part to Emma’s efforts…..But her credentials do not end with the success of her
February 18, 2005
charges. As a result of the success of her horses
and the accompanying publicity, Emma has been
placed in the public spotlight. Not only has she
acquitted herself well in that role, but her cheerful demeanor and visible emotions and conduct
have resulted in highly visible favorable publicity for both harness racing in general and the
role of the caretaker in particular.” Ms.
Johansson will receive an oil painting of herself
and her two champions by renowned Pennsylvania artist James Ponter, and the blue and gold
jacket awarded to all nominees by Hanover Shoe
Farms.
BACHRAD WINS DAN PATCH
Marv Bachrad, who for the better part of four
decades has been synonymous with the best in
harness racing publicity, first at Brandywine
Raceway and Garden State Park and for the last
nine years at Dover Downs, has won Harness
Tracks of America’s Dan Patch Award for exceptional media, publicity and public relations contributions to the sport. A former sportswriter
and sportscaster known throughout the Philadelphia and Delaware Valley area, Bachrad currently hosts a daily harness racing news program
telecast to up to 500 off-track and simulcasting
facilities in the United States and Canada. A
member of the Communicators’ Corner of the
Hall of Fame in Goshen and the Pennsylvania
Sports Hall of Fame, he also is a past winner of
the harness writer’s coveted Proximity Award,
the Publicists’ Golden Pen Award, the United
States Trotting Association’s John Hervey award
for writing, and the Harness Horse Youth
Foundation’s Service to Youth Award. He is a
past president of both the U.S. Harness Writers
and North American Harness Publicists’ Associations. Bachrad will receive his Dan Patch
award at HTA’s annual Nova Awards Dinner at
Hyatt Grand Champions in Indian Wells,
California, Friday night, March 11.
NOW FOR THE HARD PART
The Maryland Senate, as expected, passed Gov.
Robert Ehrlich Jr.’s slots bill last Friday, 26-21,
sending it to the House with 15,500 slots to be
allocated at seven locations around the state.
Although the language did not specify the locations, it did say four of the locations had to be at
Maryland racetracks, so Pimlico, Laurel and
Rosecroft are home as far as the Senate is concerned. But not the House. Although delegate
Clarence Davis, who chairs the House subcommittee dealing with the bill, said, “I think we can
come up with something. It’s going to be tightwire, but we’ll craft a bill that can go forward,”
there is opposition from legislators in Prince
George’s county, where HTA member Rosecroft
is located. Anthony J. O’Donnell, the House minority whip from southern Maryland, said, “I
think we’re going to keep an open mind. We’re
willing to work on something that is mutually
agreeable to this body, knowing if we do pass a
bill it will be a matter of intense negotiations with
the Senate.” One legislator said of the House
deliberations, “It’s like the saying, ‘Everybody
wants to go to heaven but nobody wants to die.’”
VERNON GETS NEW CEO
When Vernon Downs accepted Jeff Gural’s offer
of a $1.2 million loan to keep it solvent, one of
the conditions was that Gural, the New York City
real estate magnate and harness horse ownerbreeder, got to appoint the track’s chief executive officer. He has, naming Edward Tracy,
former president and CEO of Trump Hotel Casino Resorts in 1990 and 1991, when Trump filed
bankruptcy on its Taj Mahal. Tracy, commenting on his appointment, pointed that out, saying, “So I know a little bit about bankruptcies.”
Tracy also was president of the consulting company that helped the Oneida Indian Nation launch its Turning Stone casino near
Vernon 12 years ago.
February 21, 2005
In regard to his Tioga Park operation, which he
bought last year, Gural says he will wait for a
change in the VLT law, pending before the New
York legislature, before he moves forward on
completing renovation of the plant. “I’m very
optimistic,” Gural told the Towanda Pennsylvania, Daily and Sunday Review. “I have spent a
million and a half dollars and I’d be very disappointed if it didn’t work out.”
POPULAR COAST TO COAST
A national bench warrant, covering all 50 states,
has been issued for the arrest of trainer Richard
Chansky and his associate, Kevin Goodell, by a
judge in New Jersey. Chansky and Goodell were
indicted by a grand jury in Superior Court in
New Jersey on Dec. 20, 2004, on charges including possession of a controlled dangerous substance, multiple counts of failure to file tax returns, and receiving stolen property. They were
arrested in April of 2001 by New Jersey State
Police and subsequently lost their New Jersey licenses. The national bench warrant was issued
after they failed to appear for a scheduled arraignment and bail hearing in Ocean county, NJ,
Superior Court Feb. 15. Anyone with knowledge
of the whereabouts of either man can call their
local, state, or federal (FBI) law enforcement
authorities or the New Jersey police racetrack
unit at 732-462-3788.
DON’T FORGET NOVA DINNER
If you’re going to attend the annual joint meeting of HTA and TRA at the Hyatt Grand Champions in Indian Wells, CA, March 8-11, plan to
make the Friday night March 11 Nova Awards
dinner as well. HTA honors the owners of its seasonal champions, as selected by our racing secretaries, and nine of them will be on hand in California. Help let them know of HTA’s appreciation of their ownership. It is informal, and
special entertainment is on tap as well.
February 22, 2005
KY BITES THE BULLET TODAY
PLAIN GIRL WITH RICH DADDY
The Kentucky Horse Racing Authority meets this
afternoon, and hopefully its members will act on
the recommendation of the state Equine Drug
Research Council and endorse the national policies of the Racing Medication and Testing Consortium, and ask for state legislation enabling
penalties for milkshake positives with readings
higher than 37 millimoles of carbon dioxide per
liter of blood plasma. If the matter passes and
the legislature concurs, Kentucky could join the
growing number of states adopting the RMTC
rules, moving the sport closer to the goal of uniform medication rules and penalties.
That was the characterization by Tom
Winebrener, president of the Cloverleaf Standardbred Owners’ Association, which owns
Rosecroft Raceway, after losing its third promising suitor in two years. Winebrener was quoted
by David Snyder in the Washington Post as saying, “We’ve had two broken engagements and
we’ve been left at the altar once. We’re starting
to feel like the plain girl with the rich daddy, and
the rich daddy is slots. If Mr. Slots is home, we
have a lot of suitors. When Mr. Slots leaves, we’re
left in the dust.” If all sides in the Maryland political mess cared as much about racing in Maryland as Cloverleaf and Rosecroft do, the state’s
racing industry, once a pride and joy, would be
in far better shape than it is. Being a plain girl in
today’s world -- or a political football -- is no fun.
In another Kentucky development, the Kentucky
House passed, 96-4, a bill that diverts taxes on
stud fees paid in Kentucky from the state’s budget to breeding funds for horses. The bill has the
support of governor Ernie Fletcher, and is expected to pass in the Senate as well. The amount
involved is not insignificant: $14 million was
generated by the sales tax on stud fees last year.
The monies will be divided 80% to thoroughbred
breeders, 13% to harness horse breeders, and 7%
to other breeds.
OHHA TACKLES MEMBER ISSUE
The Ontario Harness Horse Association meets
tonight to discuss its recently passed rule that its
membership be limited to Ontario residents. The
change triggered enough negative response -including one from John Campbell and apparently from Ottawa members -- that the well informed Harness Edge predicts tonight’s meeting
will be “a contentious affair.” According to that
publication, Ottawa horsemen signed a contract
with Rideau Carleton Raceway to stage a winter
meeting, a move not endorsed by OHHA. The
issue led to formation of the National
Capital Region Harness Horse Association, a further fractionalization of racing.
BIG M CONTEST TURNING BIG
The Meadowlands’ National Harness Handicapping Championship, scheduled for April 2, is
turning out to be a big promotion. Five tracks
already have qualified entrants, and 13 more are
scheduled to hold qualifying events this month
and next. The winner will receive a $50,000 guaranteed prize, a Continental airline voucher for
two anywhere in the United States, a guest shot
on Fox Sports New York’s Racing from the Meadowlands, and his or her handicapping picks and
picture on the Meadowlands Web site every Saturday for the remainder of the year. Freehold,
Northfield Park, Mohegan Sun, The Meadows
and WinTicket.com already have qualified finalists. Qualifying contests are scheduled for
Balmoral Park, Buffalo Raceway, Cal-Expo,
Capital OTB, Flamboro Downs, The Harness
Edge, Hazel Park, Maywood Park, the Meadowlands itself, Northville Downs, Saratoga Gaming
and Racing, Woodbine Entertainment,
Youbet.com and Xpressbet.com.
“THRESHOLD DAY” FOR KY
That was how veteran racing lawyer Ned Bonnie,
as close to Kentucky racing as anyone in the country, reacted to yesterday’s Kentucky Racing Authority passage of new medication rules that
bring the commonwealth into conformity with
proposals of the Racing Medication and Testing
Consortium. Bonnie said he felt “an enormous
sense of relief” at Authority endorsement of the
rules, and added, “This is really a threshold event
for Kentucky.” Under the new rules, if they survive legislative oversight, nothing but Salix can
be administered on race day, up to four hours
before posttime; only one of three antiinflammatories -- Butazolidin, ketoprofen or
flunixin -- as “adjuncts” to Salix but only up to
24 hours before the race; no steroids within 24
hours of a race; and milkshake testing for high
carbon dioxide readings. As expected, the Kentucky HBPA opposed the changes and packed
the meeting with members, and some veterinarians spoke against it, but one of the state’s most
prominent trainers, John Ward, told them,
“You’re worried that it’s going to hurt you. It
isn’t going to hurt. It’s going to move you to the
top.”
SCOTT LOSES ANOTHER ROUND
Shawn Scott lost another round in his quest for
control of Vernon Downs yesterday, when a bankruptcy judge refused to grant his request to toss
out Mid-State Raceway’s board of directors after a rancorous 90-minute hearing. One lawyer
called the proceedings “a sideshow” and another
called his opponents “locusts” before Judge
Stephen Gerling said the directors had “acted out
of a sense of urgency and they have acted from a
sense of mistrust, rightly or wrongly, of Mr. Scott.
I don’t think anything they have done rises to
the level of, quote, ‘acting in bad faith or
acting with fraudulent intent.’”
February 23, 2005
Scott’s lawyer urged applicants other than Jeff
Gural to quickly file bids for Vernon Downs, and
Gural proposed bringing the track out of bankruptcy and awarding himself 91% of the track’s
parent, Mid-State. Scott, who holds the mortgage on the track with Vestin Mortgage of Las
Vegas, says he will fight that plan. Gural’s revised plan dropped the caveat that he would buy
the track only if the legislature increased its share
of revenues from slots. His new proposal substituted the 91% control provision instead of the
legislative move. Gural still is sticking to his request for a higher share in connection with his
project of rebuilding and reopening Tioga Park.
Currently racing gets a 25% share of VLT revenues, but state senator William Larkin, chairman of the Senate Racing Committee, has introduced a bill calling for a 32% share of the first
$50 million in revenues, 29% for the next $100
million, and 26% thereafter. Tracks would get
another 8% of the first $50 million for marketing and 5% of those revenues above $50 million.
THE PROF MAKES A POINT
Allen Eberhart is a professor of finance and a
dean’s fellow at the McDonough School of Business at Georgetown University. In an article today in the Baltimore Sun on the slots controversy
in Maryland, he wrote, in part, “It’s open season
again on horse racing....the critics portray racinos
as a last-gasp effort to prop up a dying sport.
But in many ways, horse racing has never been
healthier. More than 100,000 people regularly
attend the Preakness, more than 2 1/2 times the
number who saw Seabiscuit beat War Admiral
at Pimlico in 1938” (although reading the book
you would think half of America was there).
Eberhart goes on to ask, “So why does horse racing need slots?” and answers by saying, “No business can survive in the long run if it’s prohibited
from responding to its competitors.” HTA
has the full Eberhart text.
IN INDY, COLTS, NOT HORSES
A key House committee in Indiana drove another
nail in the coffin of slots at tracks yesterday, passing 17-4 a bill that provides for higher taxes on
casinos and pro players salaries, rather than slots
at Hoosier Park and Indiana Downs, as the way
to finance a new stadium for the Indianapolis
Colts. The bill now goes to the full House for
consideration next week. Casinos tried to detour
the tax, telling legislators that casino corporations
made decisions about which properties to invest
in by looking at states where tax rates are lower
and stable, but the legislators didn’t buy it. The
Louisville Courier-Journal reported, “There was
little sympathy, though, for the plight of the casinos, which last year had $2.3 billion in combined gambling revenue and paid about $742
million in admissions and wagering taxes.” The
casinos had opposed putting slots at Indiana’s
tracks, claiming it would have caused dramatic
cuts in casino business.
SHAPE UP OR SHIP OUT
That was the message sent from Magna Entertainment, which ended greyhound racing in Oregon recently, to that state concerning horse racing there. Magna says that if legislators don’t
provide some relief, horse racing in the state also
will become history. Magna says competition
from the Oregon lottery, tribal casinos and online
betting is forcing the possibility of it closing its
Portland Meadows thoroughbred and quarter
horse operation. Magna has asked Oregon -- and
has gotten a bill introduced -- that would allow it
to capture revenue from simulcasting operations
even when horse races aren’t being run at the
track. Portland Meadows operates from October thru April, and presently state law requires
that tracks must hold live racing when they are
importing simulcast signals from elsewhere. Magna’s decision to close
Multnomah Greyhound Park ended 71
years of dog racing in Oregon.
February 24, 2005
In a separate development, Magna announced it
is slashing costs, including executive pay, after
reporting it lost $95.6 million on annual revenue
of $731.5 million last year. The losses were down
$10 million from 2003, but Jim McAlpine,
Magna’s CEO, said the company no longer can
strain its resources on initiatives that don’t produce significant immediate revenue. Magna cut
its losses in the fourth quarter of 2004 from $103.1
million a year earlier to $40.9 million, and all executives, including McAlpine, took pay cuts in
the stabilization move. McAlpine called Magna
Entertainment a “classic example of a young company with ambitious goals for future growth.”
ANOTHER DROWNS ON SHAKES
A fourth Santa Anita trainer has wound up with
a milkshake positive, and will have to race his
horses out of a detention barn. Adam
Kitchingman has joined Jeff Mullins, Vladimir
Cerin and Julio Canani on the milkshake list at
Santa Anita. Kitchingman, Mullins and Canani
ranked among the top 15 trainers in the country
during the year from Feb. 6, 2004 to the same
date this year, according to Today’s Racing Digest, and each were winning at rates above 21%.
Since racing out of a detention barn on Feb. 9,
Mullins has won only one race in 18 starts.
Kitchingman, responding to his positive, said,
“It’s a competitive business out here.
Everybody’s out there to win. We’re going to
correct it (the milkshake issue) and it won’t happen again.”
BIG PLANS AT PENN NATIONAL
Penn National Gaming, gearing up for slots, is
planning a $240 million expansion at its home
course in Grantville, Pennsylvania, near Harrisburg, including a racino, a clubhouse, valet parking, restaurants, a five-story parking garage and
35 spaces for customers arriving in limousines.
CODEY WANTS BIG M SLOTS
Gov. Richard J. Codey of New Jersey says he will
propose next week allowing video slot machines
at the Meadowlands. Codey will present his budget next Tuesday, and some state officials say
VLTs at the track could generate between $100
million and $150 million for the state in the first
fiscal year, and probably more than $200 million
after that. Atlantic City casinos are certain to
oppose the move, but Assemblywoman Linda
Stender, the Democratic chairwoman of the Assembly Tourism and Gaming Committee, said,
“Since we’re facing a $4 billion deficit, any chance
to provide new revenue will be seriously considered.”
LEAHY GUILTY OF MAIL FRAUD
John J. Leahy, a prominent harness horse owner
and formerly a principal patron of the Joe Anderson stable, was found guilty of mail fraud yesterday by a federal jury in Chicago. The charges
stemmed from an alleged scam involving $100
million in contracts with the city of Chicago held
by the powerful Duff family, whose connections,
according to the Chicago Sun-Times, “stretch
from City Hall to organized crime.” Leahy, president of Leahy and Associates, an insurance brokerage in suburban Westchester, was found guilty
of mail fraud and wire fraud involving defrauding insurance companies of as much as $3 million by inaccurately describing the type of work
being performed by day laborers supplied by
James Duff. The insurance brokers said that the
work was largely clerical, greatly reducing the
premiums Duff had to pay. Mayor Richard
Daley, who severed his ties to the Duffs after the
federal investigation began, defended them yesterday, according to the Sun-Times, which quoted
him as saying, “I know them, sure...they’re hard
working people. It’s an unfortunate incident.” When asked about the Duff’s alleged mob ties, Daley said, “Gee, I don’t
know about that.”
February 25, 2005
With the conviction, Leahy became persona non
grata at all Illinois tracks, and no entries will be
taken on horses owned by him.
FEDEX CRACKDOWN ON DRUGS
How many ads for online drugs appear on your
computer each day? Ten? Twenty? More? According to the Associated Press, the problem of
drug dealers and abusers doing online ordering
from unlicensed Internet pharmacies has become
so pervasive in some areas that legislatures are
beginning to take notice. State legislators in Kentucky are pushing a bill to regulate such online
sales of prescriptions drugs, which the attorney
general has called a cancer. The practice has
become so serious in eastern Kentucky that
FedEx has stopped deliveries from online pharmacies there, saying, “We don’t tolerate the use
of our system for illegal purposes.” One sheriff
in eastern Kentucky said things have gotten so
bad that FedEx and UPS drivers are in danger
of being hijacked, and he called the situation “a
monumental problem.”
EQUINE HERPES GETS SERIOUS
Confirmed cases of equine herpes, which have
closed Northville Downs, are creating problems
elsewhere. Northfield Park now requires proof
of immunization with Pneumabort K vaccine,
and a horse was destroyed at The Meadows after
a positive there, with the barn in which it was
stabled now quarantined for two weeks. Hardest hit of all was Truro Raceway in Nova Scotia,
where nine cases have been discovered at or near
the track.
BEDFORD SELLS 30% SHARE
Bedford Downs, hoping to get the final harness
license in Pennsylvania but scuffling for financing, has agreed to sell a 30% equity interest to
Merit Management Group, which opened
the Empress casino in Joliet, Illinois.
February 28, 2005
‘UNCERTAIN’ OPTIMISTIC VIEW
PROVINCIAL CUP DATE MOVED
Yesterday’s Baltimore Sun ran a headline reading “Slots’ future still uncertain.”
Bloodhorse.com ran one reading, “Despite
Progress, Uncertainty Still Exists Over Maryland
Slots.” Both are optimistic views. Although the
House finally passed a slots bill last Friday, 7166 -- the very bare minimum votes needed to pass
the measure -- it is so far from what the Senate
proposed, and so antithetical to governor Robert Ehrlich’s views, that it seems more than an
uncertainty that reconciliation will be possible.
Racing attorney Alan Foreman, a keen observer
of the Maryland and national scene, was on target as usual when he said, “Any number of issues could mean its downfall. There’s no way
for anybody to feel one way or the other right
now. There’s a long way to go yet.” The longest
way to go still is Michael Busch, who says he will
not tolerate a single change to the House bill,
which would mean Busch-induced doom once
again. If the House were to prevail with its 9,500
slots in four locations, only one racetrack -- Laurel -- would be eligible, with 30% going to the
operator and 3% to a fund for the first five years
to be divided by all tracks in the state for capital
improvements. Under the Senate bill, there
would be 15,500 slots with Laurel, Pimlico,
Rosecroft and a still unbuilt Rickman family
track in western Maryland sharing them.
Windsor Raceway has announced its 40th Provincial Cup, the track’s showpiece pacing feature, has been rescheduled from its May 29 date
to an unannounced date in the fall. Track president John Millson, discussing the move, said, “It
takes time for an operation the size of Windsor
to return to normal after a disruption of operations such as we experienced in January. We want
to make sure that we are back to full steam and
celebrate the 40th anniversary milestone with all
the glamour and success that it deserves.”
NORTHVILLE BACK TOMORROW
HTA member Northville Downs, closed for three
weeks by an outbreak of equine herpes, is scheduled to reopen tomorrow with the lifting of the
quarantine on ship-ins. New procedures will be
in effect for horsemen, who will hear them firsthand at a meeting scheduled for tomorrow by
the office of the racing commissioner. A veterinarian will be on hand to answer questions on the procedures and the disease,
which has threatned other midwest tracks.
The postponement was met with displeasure by
Canada’s most successful trainer, Bob McIntosh,
who has patrons in his stable who want to build
a new track in Windsor. McIntosh complained
that he had nominated seven 3-year-old pacers
to the race for $500 each and had another payment due March 15 without knowing when the
event was going to be raced.
SLOTS FINALISTS NAMED IN PA
There were 10 in the race when it started, but
last week the Pennsylvania Revenue Department,
which is deciding who will provide the state’s
61,000 slot machines, sent 8 home and narrowed
the race to 2. The survivors are, not surprisingly,
Scientific Games Corporation, the favorite off 27
years of partial operation of the Pennsylvania
lottery system, and international giant GTECH
corporation.
STILL TOUGH HURDLES IN FL
Even if voters in Miami and Dade counties approve slots at tracks a week from tomorrow, substantial hurdles lie ahead. The legislature then
would have to pass a law, which would cover tax
rates, numbers of machines, and operating hours.
The tracks are hoping for unrestricted hours
and a tax rate of somewhere around 31 or
32%.
March 1, 2005
ONE MISTAKE TOO MANY
PUBLIC SPEAKS, IS HEARD
It didn’t take long for the national warrant for
Richard Chansky’s arrest to produce results. He
was found and arrested by Union county sheriffs
and local police at his father’s home in Jackson,
Delaware, an address he had put on a license
application some years ago. His accomplice in
the drug cases in New Jersey four years ago,
Kevin Goodell, is still at large.
This corner has been arguing, for years, that
tracks’ best defense against shrinking news coverage is public anger and response. The view has
been vindicated in Cleveland, where dozens of emails and phone calls from irate Northfield Park
patrons at the cutting of entries and reduction of
results in the Cleveland Plain Dealer have brought
a return of entries, and a reconsideration of how
to present results in a mutually satisfactory format.
GEORGE MILLER DIES AT 89
George Miller, who replaced the great Roy Shudt
as track announcer at Saratoga Raceway in 1958
and called races there until his retirement in 1981,
has died in Springfield, MO, at the age of 89.
Miller also called at Vernon Downs from 1955
until taking the Saratoga job, and during that
tenure got to call Adios Harry’s 1:55 world
record, which led to Vernon being named the
Miracle Mile.
DR. SPEARS GETS TRIBUTE
Dr. Paul Spears, the breeder of the Triple Crown
of Trotting winner Windsong’s Legacy, has received a half-page feature in Mercersburg, the
magazine of his prep school alma mater
Mercersburg Academy in Pennsylvania. Dr.
Spears later attended Brown University and then
the University of Pennsylvania, where he received
his degree in gastroenterology, which he practiced until retiring to breed harness horses several years ago. When asked if he had a mid-life
crisis in giving up a lucrative medical career for
horse breeding, Dr. Spears said, with a chuckle,
that he did not consider it such. “To me,” he
said, “a mid-life crisis is running off to Vermont
with a 20-year-old girl to sell costume jewelry at
craft fairs. This is not anything resembling that
kind of personal fiasco.” Dr. Spears, the son
of Hanover Shoe Farms’ Paul Spears and
his wife, started his career in the sport
mowing lawns at Hanover when he was 12.
ON THE SLOTS FRONT
In New Jersey, Gov. Richard J. Codey faces fierce
opposition today, as expected, from Atlantic City
casinos and their legislative supporters after proposing VLTs for the Meadowlands. The state
treasurer, John McCormac, told The Press of
Atlantic City, “I want to stress we’re in continued negotiations with the industry. We believe
we can have a plan that is attractive to them in
terms of revenue.”
In Florida, Gov. Jeb Bush said he will make televised appeals to voters of Dade and Miami counties to reject slot machines at tracks in those counties. If the referendums pass, as expected, he says
he will work with the legislature to spell out the
number of machines allowed in each venue, the
tax rate, and other regulations. It is not good
news for Florida’s tracks.
In Maryland, more Busch, but with a C. Slots
for Rosecroft seem in their death throes. At least
that is the reading of key Democrats in the Senate, who realize the unlikeness of their bill surviving a House conference, and now are suggesting “coming back in 2007 after the election and
starting this effort all over again.” That was the
plan suggested by Sen. Ulysses Currier, the powerful Democratic chairman of the Senate Budget and Taxation Committee, from
Rosecroft’s Prince George’s district.
March 2, 2005
WINDSOR CAN’T CHANGE CUP
THERE’S JOY IN CALIFORNIA
The Ontario Racing Commission and Windsor
Raceway are at odds again. The ORC yesterday
ruled that Windsor, having taken nominations
for its showpiece race for May 29, will have to
race it then, and cannot arbitrarily move it to
the fall. The commission cited its rule 16.14,
which states in part, “The date and place where
early and late-closing events will be raced must
be announced before nominations are taken. The
date and place where stakes and futurities will
be raced must be announced as soon as determined but, in any event, such announcement
must be made no later than March 30th of the
year in which the event is to be raced.” John
Millson told the Windsor Star that is not
Windsor’s read on the regulation, but that the
track was prepared to return all nominating fees
if the date change for the race is approved. The
race carries an estimated purse of $450,000, and
$500 nominations closed Feb. 15, with a sustaining payment of $1,500 due on March 15 and a
declaration fee of $2,500 due at time of entry.
The U.S. equivalents are $400, $1,200 and $2,000,
and supplementary entries are eligible on payment of $17,500 Canadian or $14,000 U.S.
“We’re absolutely thrilled. This truly is a landmark.” That was the response of Kim Hankins,
the old Illinois hand who now is executive director of the California Harness Horsemen’s Association, after the State Fair Board announced it
will request that harness racing dates replace the
traditional thoroughbred program this summer.
Hankins’ elation may be a trifle premature, for
the California Horse Racing Board must approve
the move, which the Sacramento Bee calls “a dramatic attempt to help new operator Sacramento
Harness Association get rolling.” The SHA takes
over from former operator Alan Horowitz in operating harness racing at Cal-Expo in Sacramento. Ben Kenney, president of the California
Harness Horsemen’s Association, has been negotiating the arrangement with Cal-Expo officials and says he is overjoyed at Cal-Expo’s commitment to harness racing. He thinks the move
could provide a potential new audience of one
million fairgoers who will be exposed to harness
racing.
Windsor, meanwhile, made offers to the Ontario
Harness Horse Association, which is suing the
track for $10 million, an issue not popular with
all OHHA members, who questioned $450,000
in legal fees spent by OHHA in recent years.
Windsor offered to pay OHHA dues held on deposit in the Windsor Purse Trust Account, in return for OHHA returning all Windsor Raceway
Purse Trust Account funds held on deposit by
OHHA that it was required to return last year
when its license as purse account manager was
suspended by the Ontario racing commission.
The ORC at the time directed Windsor to
withhold OHHA dues pending a decision,
now made, and Windsor is offering to reconcile and pay the dues owed.
There are, however, complications that need to
be worked out. Horowitz and his group are seeking a harness meeting at Fairplex in Pomona.
Horowitz’s time is up at Cal-Expo July 31, and
Cal-Expo’s fair runs Aug. 12 thru Sept. 5. By
racing its own meeting Cal-Expo can host live
thoroughbred racing throughout its session, with
the live harness raced on a twi-night card starting at 4:30 p.m. Local horsemen have seen purses
cut 30% in the last year, and Cal-Expo racing
director David Elliott said the board had decided
to step in “and try to get this industry back on
its feet.” The racing board dates committee will
meet on the issue next Monday morning, with
final approval up before the full board March
24. If Cal-Expo gets its harness request, it can
lease its thoroughbred dates to another fair
association, without any thoroughbred
dates lost.
March 3, 2005
ANOTHER HILL IN CATSKILLS
AROUND THE CIRCUIT......
Maybe even a mountain. Richard Pombo, the
Republican chairman of the U.S. House Resources Committee, which controls all Indianrelated legislation, is reportedly ready to introduce a bill next week that could be a lethal blow
to Indian casinos planned in the Catskills. The
bill is a reflection of growing concern in Congress
over the proliferation of Indian gaming in the
nation, and the chief of the St. Regis Mohawks
says if the Pombo bill is passed “it would make it
extremely difficult” for any tribe to open a casino in the Catskills.
More hearings today in the Vernon Downs situation, this time to argue whether a judge should
appoint an independent trustee to run Mid-State
Raceway, parent of the track. Shawn Scott and
Vestin Mortgage want a federal bankruptcy
judge to appoint a trustee who would have broad
powers to run the company. Edward Tracy, a
former Trump casino executive who has been
chosen by Jeff Gural as interim chief executive
officer in return for Gural’s investment to keep
the track running, is among those who will testify.
GTECH WINS PENNSYLVANIA
Horses, horses, more horses. Woodbine’s Pepsi
North America Cup has drawn a record 110 3year-old pacing colts for its June renewal, and
The Red Mile’s Moni Maker, for 3-year-old trotting fillies, has drawn 68 for its inaugural racing.
The Pennsylvania Department of Revenue announced yesterday that it has selected GTECH
to run its huge computer system for lotteries, and
planned to sign a five-year contract that will not
exceed $6.3 million. Sixty companies had submitted bids for the contract, and that number
wound up narrowed down to two, GTECH and
Scientific Games.
A FEW ALTERATIONS
On the agenda sent to all directors -- and of interest only to the finance and executive committees -- the dinner meeting scheduled for Tuesday
evening at 5:30 has been cancelled. Instead, the
finance committee (Ormiston, McErlean,
McKeever, Sobkowiak, Register) will meet for
breakfast at 7 a.m. Wednesday morning in Gardenia B, and then again as originally scheduled
with the executive committee at 11 a.m. Wednesday morning in salons F, G and H.
In the Salary Survey sent to all directors, HTA’s
February report, page 3 was omitted by error in
the printed version. It does appear in the email version, and the missing page is being mailed to all original recipients for
inclusion in your report.
Wayne Gertmenian’s Matrix Capital Associates
received $448,000 in 2003 for managing the Jockeys’ Guild, but those fees, which should have been
included in that year’s report to the Department
of Labor, were not and are now nine months past
the reporting date, according to bloodhorse.com.
Robert Kinsey Sr. and Jr., charged with inhumane treatment of a horse in a highly publicized
case last June, pleaded guilty this week and were
sentenced to 90-day suspended jail terms, fined,
ordered to pay court costs, and placed on six
months probation.
That happened in Delaware. What did not happen in Delaware, and was erroneously reported
here as a Delaware event Monday, was the arrest of trainer Richard Chansky. He was arrested
at his father’s home in Jackson, NJ, in Union
county, also in New Jersey. Our apologies to
Delaware, and our congratulations to authorities in New Jersey.
THE SHAWN AND JEFF SHOW
Welcome to the newest act in the drama of Vernon
Downs. The playbill, in the form of a letter from
Shawn Scott’s attorney in Dallas, Deborah
Deitsch-Perez, to Michael Rhodes-Devey, representing Vernon Downs in Albany, is a “Dear
Mike” suggestion that starts, “After seeing another day of unresolved conflict and more than a
dozen lawyers billing on the Mid-State bankruptcy case, Mr. Scott has a proposal for Mr.
Gural that should satisfy all of the warring constituencies in the case. In addition, we believe
that it provides the best potential for there to be
a 2005 racing season at Vernon Downs.”
The letter goes on to propose that Scott and Gural
join forces, instead of battling one another, and
buy the assets of Mid-State for $36 million in cash
and become 50/50 partners. Vestin Mortgage
would be paid $27 million in cash for the paper it
holds, all professionals would be paid in full, and
$3 million would be left to be divided among the
existing shareholders.
Scott says he is confident he will be licensed
shortly in New York, where the Supreme Court
upheld the validity of his temporary license and
the New York Racing and Wagering Board has
to rule on it again. Ms. Deitsch-Perez’s letter says,
“Shawn would be happy to meet with Jeff in New
York to work out how they could best proceed to
restart racing and obtain a VLT license as quickly
as possible in a new debt-free company.”
A bankruptcy court, meanwhile, approved
Gural’s choice as chief executive officer of MidState Raceway, hotel and gaming executive Edward Tracy, formerly president and CEO of
Trump Hotel Casino Resorts. Gural got to appoint Tracy and two Mid-State directors after
signing a deal to loan the track $8.5 million
to remain solvent. Tracy will be paid
$20,000 a month by Gural.
March 4, 2005
As of press time, a call to Jeff Gural for comment
had not been returned, but the Syracuse PostStandard reported that Gural said he had not seen
the proposal when interviewed but was not enthusiastic about what he was told it contained.
ELSEWHERE
In bad news for racing, Gov. Richard Codey of
New Jersey, faced with opposition in his bid to
put VLTs at the Meadowlands, has let it be known
that, while “committed to the VLT proposal...as
with any initiative, he is open to hearing about
alternatives as long as the plan is viable and serious.” One of the alternatives he may consider is
putting keno games in bars across New Jersey if
legislators reject his VLT proposal. Some Atlantic City casino spokesmen say they consider it
less of a threat to their operations than VLTs at
the Meadowlands. New Jersey racing had better solidify quickly on this one.
In Florida, the House Speaker has joined with
governor Jeb Bush in opposing the idea of slots
for Broward and Dade counties, and regardless
of a favorable popular vote there he and Bush
can make sure slots legislation is onerous.
In Kentucky, Churchill Downs has filed a federal suit against the Jockeys’ Guild, seeking injunctions that would prevent a recurrence of last
November’s boycotts at Churchill Downs and its
Hoosier Park operation. Churchill charges that
the Jockeys’ Guild orchestrated both walkouts.
Churchill also has discontinued its voluntary contributions to the Guild.
NO NEWSLETTER NEXT WEEK
HTA’s entire staff, and most of its member track
executives, will be in California next week for our
annual joint meeting with TRA. The Executive
Newsletter will resume on Monday, March 14.
March 14, 2005
MARTIN TO LEAD RCI
C’BURY HAS RACINO PROPOSAL
Frank Zanzuccki, chairman of the Association of
Racing Commissioners International (RCI) has
announced that Edward J. Martin has been named
president and chief executive officer of the association. Of the appointment, Zanzuccki said, “We
are extremely fortunate and pleased to select an
individual of Ed Martin’s stature to serve as our
organization’s next chief executive. He is an experienced regulator who has a grasp of the important issues and possesses the right blend of experience, knowledge and the ability to lead our
organization.” Martin is expected to begin his tenure at RCI around the first of April. He is currently in the process of winding up his duties with
the New York State Racing and Wagering Board,
where he has served as executive director since
1997. Prior to joining the racing board in New
York, Martin managed the New York Department
of Economic Development and served as a member of the New York Casino Gambling Commission. From 1991 through 1996, Martin Served as
CEO of Armadillo Group, Inc., a strategic communications group he founded. Throughout the
1980s, Martin held positions with the Federal
Energy Regulatory Commission, was chief spokesman and advisor to U.S. Senator Alfonse D’Amato
and was director of communications and senior
advisor to the majority leaders and members of
the New York State Senate.
Officials at Canterbury Park in Shakopee, Minnesota, have unveiled a legislative proposal to support a $120 million racino development at its 380acre site. At a state capitol news conference, Canterbury management released an economic analysis that determined a racino would generate at
least $200 million in new tax revenue for the state
during the first two years of full operation. Based
on the conclusions of the economic consulting
group, the proposed 3,000 machines at the racino
would: Generate $180 million in new state gaming tax revenues, including a $100 million up-front
fee; generate at least $200 million in future biennia when the racino is fully operational; create
1,300 full and part-time jobs from racino operations; increase live racing purses by $18 million;
and produce over $9 million per biennium.
In other news from the regulator’s side of the business, Thomas B. Gaines, a Lexington, Kentucky,
horseman and son of the late John Gaines, has
been named to the Kentucky Horse Racing Authority by Gov. Ernie Fletcher. Gaines is a partner in Gaines-Gentry Thoroughbreds and is president of KBC International, an equine supply business based in Lexington. Other Authority members whose terms expire this year are Larry
Telle, Tom Handy, and former HTA president and owner of Castleton Farm John
Cashman.
SEEKING ASST. PROGRAM EDITOR
POKER BILL THREATENED
The U.S. department of justice has told North
Dakota attorney general Wayne Stenehjem it believes a proposal to license Internet poker violates
federal law. The letter, signed by Laura Parsky, a
deputy assistant attorney general in the justice
department’s criminal division, does not specifically address North Dakota’s proposed law, but
repeats the agency’s belief that federal law “prohibits gambling over the Internet, including casino-style gambling.”
An HTA member racetrack is seeking a candidate
to become the track’s permanent Assistant Program Editor. The position is seasonal, beginning
in mid-March and continuing until the end of the
race meet in mid-November. Experience is preferred, but the track would be willing to train a
candidate who shows promise and aptitude. For
more information contact the HTA offices by
phone at 520-529-2525 or by e-mail at
[email protected].
March 15, 2005
SEE AND HEAR THE MEETING
COURT INVITES NEW SUITORS
If you weren’t fortunate enough to make the
HTA/TRA meeting in Indian Wells, California,
and enjoy the charms -- and especially the
weather -- of the Palm Springs area, don’t despair. We can’t deliver the weather, but we can
bring you the sights and sounds and interesting
panels of the Thursday and Friday general sessions, thanks to Todd Roberts and his Roberts
Communications Network of Las Vegas. Todd,
who also annually and generously sponsors our
opening night reception, has again made available video streaming of the entire Thursday and
Friday proceedings. Thursday’s sessions are up
on our HTA Web site, www.harnesstracks.com
and Friday’s will be up in a day or two, and will
remain there. There was a great amount of interesting things discussed on those two days, so
watch and listen if you missed it first time around.
A U.S. bankruptcy court in Utica, NY, has terminated Mid-State Raceway’s exclusive right to
submit a reorganization plan for Vernon Downs,
and said it will accept competing bids after April
4. The ruling opens the door to anyone, but particularly helps Shawn Scott, who is trying to regain control of the track. Scott’s lawyer said
“Everybody in the case, other than the debtor
and Jeff Gural, opposed the extension of exclusivity because they all said in order to the get the
best deal for Mid-State, you need to have a competing bidder. The court gets to decide if the plan
is feasible and if it’s fair and equitable. Everyone has to put up or shut up. You put in a plan
and people pick which one they’re going to vote
for. All of the different groups get to vote on
which one they want.” According to the lawyer,
Deborah Deitsch-Perez, Sc-ott and Gural are setting up a meeting to discuss Scott’s offer to partner 50-50 with Gural, each putting up $18 million to settle all claims against Mid-State. “I think
what the decision does,” she said, “is it encourages Mr. Gural to work with us, because if he
doesn’t, well then we can put in our own offer. I
think if we can’t work something out with Mr.
Gural, it’s very likely that we would.” Justice
Cheney, speaking for Mid-State, said of the court
decision, “If you were a debtor and we owed you
money, why wouldn’t you say, well, let’s wait until
after April 4 and see what Shawn Scott offers or
what somebody else offers? So I don’t know if
this helps us, but it does give us some time.”
MONMOUTH NIGHTS DEAD?
The mayor of Oceanport, New Jersey, Maria
Gatta, has told the Asbury Park Press that she
believes night racing at Monmouth Park -- proposed by acting governor Richard Codey -- is
dead for 2005. Codey’s spokesman, Joseph L.
Fiordaliso, was scheduled to have appeared at a
“town meeting” last week, but was ill and cancelled. The next town meeting is scheduled for
June 1, and Monmouth will be racing by then,
its meeting starting May 14. Mayor Gatto told
the Press, “Do I believe it is off the table for 2005?
Yes, I do. We have constant communication in
which we’re hearing unofficially that night racing will not happen in 2005. Now we’d like the
official answer. We’d like to get something in
writing.” In other New Jersey developments, a
state senate committee approved a bill that would
ban smoking in offices, restaurants, bars and
casinos, and a study commissioned by the
Codey administration said 2,000 slots at
the Meadowlands would have only a
minimal effect on Atlantic City casinos.
In another Scott-related episode, the group that
backed a failed initiative to legalize slots in the
nation’s capital -- reportedly funded by Scott and
associates -- told a hearing of the Washington
D.C. election board that it hired and relied on a
professional firm that collected phony signatures,
and therefore “can’t be held responsible for
circulators they did not hire, pay or control.”
March 16, 2005
XANADU OR XANADONT?
LICENSE AUCTION IN OHIO?
Xanadu at the Meadowlands, a $1.3 billion
project, could begin construction by the end of
this week. Or it could not, winding up instead in
court. Mills Corporation and Mack-Cali, the
companies developing the huge entertainment
and business complex, say they are awaiting only
wetlands-related permits from the U.S. Army
Corps of Engineers, expected today, to start work.
The permits are the last in a long list that have
taken the developers a year to obtain, but two
possible court actions could upset the scheduled
start of construction. Hartz Mountain Industries,
which has battled Mills and Mack-Cali for two
years, still is threatening to exercise “a lot of legal remedies out there,” and the New York Giants are unhappy too and may go to court if construction begins before a dispute over parking,
traffic and other concerns are resolved. Carl
Goldberg, the chairman of the New Jersey Sports
and Exposition Authority, says that construction
and the Giants negotiations on a new $750 million stadium are unrelated, and he says the Giants “do not have the right to approve or not
approve the start of construction.”
Details are hazy, but it appears that state legislators in Ohio are considering auctioning off seven
“traditional gambling” licenses for $50 million
each to “development corporations.” Precisely
what that means is uncertain, but one legislator
defined “traditional gambling” as slot machines
and table games. He did not mention racetracks,
but said under the likely proposal voters would
decide whether or not they wanted “traditional
gambling” in their communities. “The framework rests on the people who vote,” Rep. Chris
Redfern said. “It won’t be going into places it’s
not wanted.”
HOLLYWOOD OR HOLLYWONT?
The rumors are flying again, that Churchill
Downs is planning to sell Hollywood Park to developers and end racing at the Inglewood track.
Matt Hegarty, writing in Daily Racing Form, said
there is “wide speculation among industry officials” that the track’s days may be numbered,
and that Churchill could move its dates either to
Santa Anita or Los Alamitos. Hegarty quoted
Drew Couto, president of the Thoroughbred
Owners of California, as saying “I think everyone understands that Churchill is not going to
be at Hollywood much longer.” Churchill bought
the track and its 240 acres in 1999 for $140
million, and it is estimated to be worth
between $250 million and $300 million
today.
VOTERS GET CALL IN PA, TOO
Legislative proposals in Pennsylvania also would
give voters a voice, not in slots but in slots revenue. The plan is to let voters decide if their
school districts should participate in Act 72, a
state plan to reduce local property taxes. School
districts, under the proposal, could decide to use
slot machine revenues to reduce property taxes.
The school boards have until May 30 to decide
whether to opt in to the plan. A survey of half of
Pennsylvania’s 501 school districts showed a third
in favor of participating, a third opposed, and a
third undecided. The legislator who introduced
the proposed law, state senator Lisa Boscola, says
she thinks once accurate information is publicized, most school boards will opt in.
MAGNA STILL A GO IN DETROIT
The development director of Romulus, Michigan,
says it is his impression after speaking with Magna Entertainment real estate officials that Magna, despite its problems, still wants to break
ground on its $350 million Michigan Downs
project in the spring of 2006. The track would
be a multi-purpose racing and entertainment
complex located near Detroit’s Metropolitan Airport.
March 17, 2005
ROCK’S CALLAHAN WINS AWARD
ANOTHER WYNN L.V. PROJECT
Rockingham Park Vice President and General
Manager Ed Callahan was honored by the Greater
Salem, New Hampshire, community today with
the Chief John P. Ganley Community Service
Award. At the 16th annual St. Patrick’s Day Memorial Award Luncheon, which was attended by
New Hampshire Gov. John Lynch, Callahan was
recognized for “his involvement and leadership in
the community of Salem while providing inspiration to others through his dedication, integrity and
courage.”
With only six weeks to go before unveiling the $2.7
billion Wynn Las Vegas resort and casino, Steve
Wynn is planning another megaresort, this one
with an estimated cost of $1.4 billion, on the former
Desert Inn property, according to a filing made
this week with the Securities and Exchange Commission. The project, referred to as “Encore,” will
include 2,000 luxury suites, restaurants, convention and meeting space, retail space, a spa salon,
and entertainment venues. In an interview with
the Wall Street Journal, Steve Wynn said he is
designing Encore to surpass Bellagio, built by
Wynn in 1998, as the most luxurious hotel on the
Strip. Each Encore suite will be 1,030 square feet,
with 230-square foot bathrooms. Construction is
expected to begin on Encore this summer, with
completion planned for sometime in 2008. Wynn
Las Vegas, the Strip’s first new resort in five years,
will open with 2,716 rooms and suites, 111,000
square feet of casino space, 18 restaurants, about
223,000 square feet of meeting space, and an onsite Ferrari and Maserati dealership.
In other news from the Granite State, once again,
lawmakers are considering a proposal to allow slot
machines in New Hampshire. Calling it an economic recovery bill, Manchester Sen. Lou
D’Allesandro has backed legislation to add video
slot machines at Rockingham Park, at three dog
tracks, and at two other locations. According to
D’Allesandro, if legislators had approved a similar plan several years ago, the machines would
have generated $1.2 billion for the state by now.
D’Allesandro said his bill also would add an estimated 2,100 jobs, raise money for municipalities,
and help sustain the struggling pari-mutuel industry. “The positives outweigh the negatives,”
D’Allesandro told the State Senate’s Ways and
Means Committee on Wednesday. Committee
members apparently agreed, voting the bill out
by a 3-1 margin; the legislation now heads to the
full senate.
DELAY IN DALEY PROCEEDING
Trainer Noel Daley, arrested on March 2 by the
New Jersey State Police and charged with illegal
possession of prescription drugs, has had his day
in court changed. Daley was scheduled to appear
in a Chesterfield Township (NJ) court today, but
the proceeding was postponed until April 6. The
charges against Daley came as a result of
a search of his stable at Magical Acres
Farm in Chesterfield.
AR GOV. TO LET BILL BECOME LAW
A bill that allows a local vote on electronic gambling in two Arkansas counties, Garland and
Crittenden, will become law without Gov. Mike
Huckabee’s signature. The governor said Wednesday, however, that he will encourage residents in
those counties to vote down initiatives to expand
gambling at Oaklawn Park in Hot Springs and
Southland Greyhound Park in West Memphis.
The bill, which becomes law five days after passage, allows either the city or county where the
facility is located to hold the election. The measure would not allow games of pure chance, such
as slot machines, but only games in which some
skill and study is involved. Bill supporters estimate the measure could create an additional $1
billion a year in betting. One thing the bill did
not do was create a regulatory body to oversee the games.
ON THE BEAT, COAST TO COAST
It appears likely that thoroughbred racing on the
west coast could be moving from Hollywood Park
to Los Alamitos. Although Churchill Downs
president Tom Meeker played it coy in discussing the possibility that Churchill may sell the huge
Inglewood track to developers, he did say, “as
with all our assets, we continually evaluate each
asset in light of two overriding objectives: increasing shareholder value and improving the
sport of racing,” and added that an evaluation
on Hollywood Park would be completed
“in the space of a few months.” Major thoroughbred owner Mike Pegram and Los Alamitos Race
Course owner Dr. Edward C. Allred, however,
did not seem to be waiting, announcing a $40
million partnership plan which would convert
Los Alamitos into a mile thoroughbred track with
20 weeks of runners and year-round quarter
horse racing on an inner track. Allred would remain owner of the track and all operations would
be under his control, with Pegram -- who thought
he had bought the Fair Grounds last year but
lost it to Churchill Downs -- heading the thoroughbred meeting there.
Across the country, in New York, the Senate
passed two bills sponsored by Senator Bill Larkin,
chairman of the Racing and Wagering Committee, hoping to get slots at Yonkers and Aqueduct
rolling. One would raise the tracks’ share from
slots from 29% to 32% on the first $50 million of
net winnings, 29% from the next $100 million,
and 26% for all over that. The horsemen’s share
would be roughly 8% from the track’s vendor
fees, subject to negotiation. A second bill would
raise the track’s share to 34%, with a 9%
horsemen’s subsidy and 4% advertising subsidy
coming from the state’s general fund, thus seeking to avoid the constitutionality issue currently a problem in the state. State majority leader Joseph Bruno is urging
quick passage.
March 18, 2005
That support could help the matter past New
York’s glacial legislative ice jam, but in another
New York legislative development, the New York
Racing Association is strongly opposing a proposal to increase takeout on straight and multiple-pool bets. That move, included in a budget
proposal, would raise takeout on win, place and
show bets from 14% to 15.5%, and on two-horse
exotics from 17.5% to 19%. NYRA president
Charles Hayward, who has supported NYRA’s
recent policy of advocating lower takeouts, was
quoted by Thoroughbred Times.com as saying of
the proposal, “These are not takeout increases
we’ve recommended or even discussed with anyone. We do not believe that is a prudent way to
do business, and these are not any adjustments
that we would support.”
HARSH WORDS IN FLORIDA
The battle over how much to tax tracks in
Broward county on potential slots revenue is on
full blast. At a meeting of the Senate Regulated
Industries Committee, state senator Steve Geller
of Hallandale Beach, a strong proponent of slots
to help tracks, bluntly told Broward county school
board member Beverly Gallagher, who proposed
a 50% tax on gross revenues, that she didn’t know
what she was talking about. “It’s clear to me,”
Geller said, “that you have no idea what you’re
speaking about when you’re doing this. I don’t
know why the school board is interjecting itself
into something they clearly know so little about.”
Geller later called Gallagher’s remarks to the
committee “stupid” and warned the school board
was “not making friends by disagreeing with its
local legislative delegation.”
DEEP IN THE HEART OF TEXAS
Track slots may be dead in Maryland and Indiana, but they still are breathing in Texas, where
legislation has been reintroduced seeking to
legalize VLTs at all licensed Texas tracks.
TRIBE HALTS CASINO PLAN
The Lytton Band of Pomo Indians said in a letter
to Gov. Arnold Schwarzenegger dated last Thursday that they have shelved plans to build an expanded casino with 2,500 slot machines in the San
Francisco Bay area after state lawmakers, whose
approval for the facility was needed, said it would
be too big for the community. An agreement
signed last year between the tribe and
Schwarzenegger had envisioned a Las Vegas-style
casino covering four acres that would have provided local and state governments with 25 percent
of profits, an estimated $155 million a year. Instead, the tribe will renovate and install hundreds
of new games -- but not slot machines -- at its existing 70,000-square foot cardroom called Casino
San Pablo, about 20 miles north of San Francisco.
Absent slots, California has no regulatory authority over the facility and the tribe avoids sharing
revenue.
LA. WILL USE PRE-RACE TEST
Matt Hegarty in Daily Racing Form reports that
Louisiana will become the latest state to begin prerace testing for milkshakes on March 24. Louisiana had been testing for alkalizing agents using
blood drawn post-race. The director of the Louisiana State University Medication Surveillance
Laboratory, Steve Barker, told the Form that the
change to pre-race testing, considered a more accurate way of determining whether a milkshake
has been administered, was being instituted due
to concerns that horsemen had changed the way
milkshakes were being administered to horses, in
feed supplements rather than through nasal-gastric tube.
REPORT IS GURAL, SCOTT DEALING
The Oneida Dispatch is reporting that businessman and horse owner Jeff Gural and Shawn Scott
have come together in an attempt to bring
Vernon Downs out of bankruptcy. “We
had some discussions and I’m hopeful we’ll
March 21, 2005
be able to reach an agreement,” Gural told the
paper. “We’re fairly close.” Gural called the
agreement a “four-way settlement” among him,
Scott, Raceway Ventures and Vestin Mortgage,
which holds $26 million of Mid-State’s debt. Under the new plan, Scott would be bought out and
Gural would become the majority shareholder.
Negotiations continue regarding how much Scott
will receive and what percentage of the shares
Gural will hold. Gural hopes to have the new plan
finalized by the end of next week, and he remains
confident the track will re-open in 2005.
NY GAMING IN COURT TODAY
Today New York’s highest court will weigh
whether the law approving gaming expansion in
the state is constitutional. At issue is the 2001 law
that approved three Indian casinos in western New
York, three more in the Catskills, video slot machines at racetracks, and participation in a multistate lottery. An appellate court has already ruled
the expansion legally sound; as part of its holding, the court said slot machines were permissible
for Indian casinos in part because of the Indian
Gaming Regulatory Act, and that the multi-state
lottery passed muster because New York maintains
enough control over the game to cover the requirement that lotteries be “operated by the state.” In
addition, the court said that video lottery terminals at racetracks were legal but that the formula
for distributing the proceeds was not. The appeals
court said that the provision in the law that part
of the revenue from the machines go to track
purses and horse breeding violated a New York
constitutional mandate that the proceeds of any
lottery game go to education. The New York Senate has rewritten the formula in an attempt to comply with the constitution and the Assembly has indicated that it will draft legislation to “fix” the
legal problem. In the meantime, Gov. George
Pataki’s attorneys, as well as those from gaming
interests, will argue the law’s legality before
the high court today.
March 22, 2005
GURAL BUYING OUT SCOTT
HELPFUL DECISION IN KY
Vernon Downs’ control by non-racing outsiders
may be over, as New York realtor and harness
horse owner and breeder Jeff Gural says he has
reached a deal to buy the 52% share in the track
owned by Las Vegas and Virgin Island entrepreneur Shawn Scott. Gural says he has an oral
agreement with Scott and Vestin Mortgage,
which holds a $27 million mortgage on Vernon
and is the track’s biggest creditor. Gural’s deal
would end Scott’s involvement with Vernon,
marred by Scott’s inability to obtain a New York
license to operate the track and its racino. Gural
plans to invest $1.2 million to get Vernon up and
running, and has agreed to provide another $7.3
million to get the racino open. Mid-State is estimating gross revenue of $47 million a year from
the racino. Gural is hopeful that the New York
Assembly will approve a bill passed last week by
the state Senate which would increase revenues
from the VLTs.
In a reversal of long-standing policy by his office, the attorney general of Kentucky, Greg
Stumbo, has ruled that the state constitution does
not have to be amended to allow expanded gambling. While the decision is merely advisory in
nature, it removes one stumbling block to legalization of slots for tracks in the commonwealth,
but formidable opposition still faces such a move.
QUEBEC SELLING ITS TRACKS
HTA member Hippodrome de Montreal and
three other harness tracks in Quebec will be sold
to private operators under a move by the Quebec government. The decision reverses the decision of the province’s former finance minister,
Yves Seguin. In addition to Hippodrome, formerly Blue Bonnets, the tracks to be sold are in
Quebec City, Trois-Rivieres and Gatineau. The
Montreal Gazette said the likely buyer will be either Ontario-based Magna Entertainment or
Remstar, a Quebec company, both of which have
shown interest in acquiring the tracks and have
expressed a willingness to invest some $100 million Canadian dollars.
In another Canadian development, Great Canadian Gaming corporation has completed
its acquisition of Fraser Downs and
Sandown Park in British Columbia.
NEW SECURITY FOR RUNNERS
In two significant thoroughbred security developments, the New York Racing Association has
announced it plans to use a pre-race detention
barn when it opens its 60-day spring-summer
meeting at Belmont Park May 4, and Keeneland
has announced tough new milkshaking penalties.
NYRA began pre-race testing for carbon dioxide
readings in mid-February, and will begin freezing urine samples for use as Cornell University
develops new tests for currently undetectable
substances. The new testing program is being
sponsored jointly by NYRA and the New York
Thoroughbred Horsemen’s Association.
Under new rules at Keeneland, readings of 37
millimoles per liter of blood or higher will draw
penalties that start with the first horse in a
trainer’s care having to be raced out of 24 hours
of detention and observation, to be paid for by
the trainer at $150 a day. A second stable offense
will bar the trainer from entering a horse at the
meet for 10 days from notification of the positive. A third offense will result in banishment
from Keeneland for one year.
Penalties against owners, through banning on
entries of horses testing positive, are being proposed at a meeting today of the Kentucky Horse
Racing Authority.
KENTUCKY TAKES THE LEAD
It’s a headline you may never have expected to
read, but the proposals made yesterday by the
Kentucky Equine Drug Research Council, if
adopted, would put the commonwealth at the
forefront of meaningful penalties for racing infractions, particularly the use of illegal substances. Largely the work of premier harness
breeder Alan Leavitt and co-authored by Council chairwoman Connie Whitfield, the penalties
would include loss of purses and suspensions for
their horses testing positive, putting the owners
in the orbit of responsibility. Here are highlights
of the proposals:
For first offenses on milkshakes with a reading
of 37 millimoles of carbon dioxide per liter of
blood or higher, with no allowances for Salix, loss
of the purse, $1,000 fine and 75-day suspension
for the trainer, and a 30-day suspension of the
horse.
A second offense would bring loss of purse, $2,000
fine and a 150-day suspension for the trainer, and
a 45-day suspension of the horse.
A third offense would result in loss of purse, a
$3,000 fine and 300-day suspension for the
trainer, and a 60-day suspension of the horse.
And a fourth offense would bring loss of purse,
lifetime suspension for the trainer, and a 180-day
suspension of the horse.
In addition, every winner would have to be tested
post-race for milkshakes, along with one other
horse to be selected by the judges; any claim on
a horse with a high milkshake reading would be
automatically voided; during the entire time any
penalty -- not just milkshakes -- was being appealed, all horses raced by the offending trainer
would be required to race out of a 24hour detention barn, with the trainer
bearing the cost.
March 23, 2005
During the term of a suspension, access to the
grounds of any Kentucky racetrack would be
denied both trainer and horse, and there would
be no “split sample” requirement for milkshake
testing.
In a major innovation, possession or use of blood
gas machines, also known as black boxes, would
be limited to authorized state regulatory representatives, and the possession or use of shock
wave therapy machines would be restricted to
licensed veterinarians, and no horse could be
shock waved within six days of a race. The veterinarian using shock wave therapy would have
to file a report listing the horse’s name, tattoo
number, and trainer, and file that report with the
judges within eight hours of administering the
treatment. Currently, in New Jersey, Florida and
elsewhere, trainers are reported using these machines on their farms and/or training centers. In
the case of black boxes, they obviously could permit experimenting with milkshakes right up to
the maximum limit, and shock wave therapy is
not something at this stage of development for
non-veterinarians to use.
The Kentucky proposals, based on work being
done by the national Racing Medication and Testing Consortium, would divide drug offenses into
three classes, with penalties highest for Class A
drugs that have no therapeutic value in a horse.
The penalties for first violations of administration of Class A drugs would carry loss of purse, a
$15,000 fine and 1,095-day suspension of the
trainer, and a 90-day suspension of the horse, and
range upwards to loss of purse, a $50,000 fine
and life suspension for the trainer, and a 360day suspension of the horse for third offenses.
Third offenses for private use of a blood gas machine would result in a $20,000 fine and 360-day
suspension, and for unauthorized shock wave
use in a $10,000 fine and 120-day suspension.
March 24, 2005
BIG WIN FOR PIONTKOWSKI
VICTORY FOR SCURFIELD, TOO
A Massachusetts Superior Court judge yesterday dismissed all claims of Louis Giuliano against
Gary Piontkowski and associates in HTA member Plainridge Racecourse, and ruled that
Piontkowski and the other defendants in the case
were entitled to almost $2 million, plus interest
and attorneys’ fees. According to a release from
David H. Rich, counsel for Ourway Realty, one
of the defendants, the Giuliano liability stemmed
from his fraudulent conduct related to construction of the harness track in Plainville, MA, in
1998-99. The decision, delivered yesterday by
judge Margot Botsford in Suffolk Superior
Court, found that Giuliano’s misappropriation
of funds intended for subcontractors and his conversion of site materials was fraudulent, and that
he had used construction funds for personal purposes including horses, personal mortgage expenses and furniture for his home. Judge
Botsford found the deception to be knowing and
intentional, and awarded double damages and
attorneys’ fees to be assessed at a future hearing.
Giuliano had persistently claimed he was entitled
to an ownership interest in Plainville Racing
Company, the parent of Plainridge. The court
specifically rejected that claim, finding that
Giuliano had fraudulently induced Piontkowski
to sign a stock pledge agreement by defrauding
Piontkowski and his partners into believing that
he, Giuliano, owned the racetrack, when in fact
he did not. The court also rejected Giuliano’s
claim that he had been illegally blocked from exercising an option to purchase the track in 2000.
In rejecting all of Giuliano’s claims, the court
found his testimony in a number of instances “not
to be credible.” Piontkowski said he felt “completely vindicated” by the court’s decision, and
was grateful for it because of Giuliano’s “inflammatory and outrageous accusations
against me and my colleagues.”
Former California Horse Racing Board chairman
Ralph Scurfield and his associates, including
Lloyd Arnold, USTA director Ivan Axelrod,
former racing commissioner Jack Coffey, and
former track operator Christo Bardis, won a
major victory yesterday when the Race Dates
Committee of the California board voted unanimously to recommend that all harness dates in
the state be raced this year at the Cal-Expo in
Sacramento. The former operator of the Capitol
Racing meeting at Cal-Expo, Alan Horowitz, had
been seeking harness dates at Fairplex in Pomona
in southern California, but the race dates committee voted against any overlap of dates because
of an inadequate horse supply to race two meetings simultaneously. Scurfield’s group plans to
operate as the Sacramento Harness Benevolent
Association, and will operate a harness meeting
for the first time during the California State Fair.
The thoroughbred meeting normally held at the
fair will be moved to another fair venue if the full
racing board approves the date committee’s recommendations today.
BETTER HAVE GOOD LAWYERS
The 17 defendants in the doping and illegal sports
betting ring in New York had better have some
very good lawyers, because the federal government is loaded for bear. The feds yesterday filed
5,000 intercepted phone calls, surveillance photos and bank, credit card and betting records in
the case, and the New York Post reported sources
saying that “the physical evidence is so staggering it’s a good bet many defendants will try to
make plea deals rather than go to trial.”
OUR THANKS TO ROBERTS
Thanks to Todd Roberts and his Roberts Communications Network, all sessions of the HTA/
TRA convention now can be seen on video
streaming on the HTA Web site,
www.harnesstracks.com.
MONMOUTH COULD LOSE CUP
Unless the New Jersey Racing Commission and
New Jersey Thoroughbred Horsemen’s Benevolent Association settle their long-simmering grievances in the next two weeks, there is a good
chance that Monmouth Park may lose its chance
to host the Breeders’ Cup in 2007. Cup president D. G. Van Clief says the commitment to
Monmouth is firm at the moment, but unless
there is a resolution to the dispute by April 9 the
commitment will expire. “Barring a resolution
by that date,” Van Clief said, “we will officially
commence the search for an alternate site on that
date.” Van Clief said the Cup “could not take
something that already has inherent risks and
exacerbate that with a long-standing dispute that
is not yet resolved.” The Asbury Park Press, commenting on the dispute between commission and
horsemen, said the two sides “are mad at each
other over stuff that happened so long ago nobody even remembers who threw the first rock.”
The paper headlined its story, “Fighting over
peanuts with steak on the table.”
AH YES, THE JOCKEYS’ GUILD
It is back on the hot seat in California, where the
racing board voted 5-0 to require a forensic audit of the Jockeys’ Guild before it resumes issuing some $1 million a year to the Guild’s jockey
health coverage from uncashed winning tickets.
Commissioner Richard Shapiro, whose motion
the board adopted, said, “There have been allegations that many jockeys have claims that have
not been paid and bills that were sent to collection instead. Until we get satisfaction that the
money is being spent correctly, we will withhold
the funds.” Disabled jockey Ron Warren told
the board he had documented 17 cases where
jocks’ benefit bills that supposedly were covered
by the Guild had been turned over to collection agencies, and he asked the board
to redirect the funds to a new group he
recently helped incorporate.
March 25, 2005
In other California news, the board ended its 50year relationship with Truesdail Laboratories,
which has done its testing, and will switch all testing on July 1 to the Ken Maddy Equine Testing
Laboratory at the University of California at
Davis, which has been doing about a third of the
state’s testing. One of only two laboratories in
North America accredited by the International
Organization for Standardization, the Maddy is
named for the late state senator Ken Maddy, who
was instrumental in supporting virtually all racing legislation in the state during his tenure.
Finally, after almost five years, the racing board
dismissed the 2000 morphine positive of the Bob
Baffert-trained Nautical Look, supporting the
recommendation of an administrative law judge
who ruled that the facts as presented and
Baffert’s “success as a trainer support the conclusion he had nothing to gain and a great deal
to lose by the use of a banned substance on this
horse.”
OHIO SLOTS: STUDY IT MORE
Some sixty important people interested in bringing slots to Ohio met in Columbus yesterday, and
after three hours decided to conduct academic
research on the economic impact of gambling,
along with a statewide poll to see how voters feel
about the issue. Track lobbyist Neil Clark said
after the meeting it marked the first time that
competing groups were willing to work together.
A NEW BUSCH IN FLORIDA
No, not Jeb. This one, a spitting legislative image of Michael Busch of Maryland, is the chairman of the House Business Regulation Committee, Frank Attkisson, and he wants to make
Broward county pay all $438 million that was
promised by Broward and Dade toward education if slots were approved. They were, in
Broward, and Attkisson wants to make the
tracks there pay dearly.
March 28, 2005
HARNESS FIGURES IN NY FRAY
APRIL 1? YOU’RE FOOLING US
Two major harness racing figures -- owners Jeff
Gural and Adam Victor -- are playing important
roles in a current struggle between the New York
Jets, Cablevision and TransGas Energy Systems
for the future of Manhattan’s West Side railroad
yards. Cablevision offered $760 million for the
property, hoping to build apartment towers and
a park; the Jets offered $720 million to build a
stadium along with commercial and residential
towers; and TransGas Energy has offered $1.05
billion for the site. The Metropolitan Transportation Authority, which will decide the issue, is
expected to announce the winner on Thursday.
Victor said he has been called the dark horse,
but he says he believes the dark horse has become the stalking horse and seems confident of
victory, although he says he has no idea what his
company would do with the property if it wins
the bidding war. He called it “grossly premature” to predict what the west side river site might
look like for the next 100 years, and said it makes
no sense for anyone to try to make that decision
in the next three weeks. He said, “We’ll let the
people decide what they want,” if TransGas winds
up with the site. Victor reportedly is more interested in the site of an active fuel depot on the
East River in Brooklyn than in the west side
railyards. He wants to build a natural gas power
plant there that could be connected to New York’s
gas and steam grid. Jeff Gural entered the picture as president of Newmark and Company,
hired by the MTA as a consultant real estate firm
to evaluate bids on the property. Newmark is
urging the MTA to reject the Jets and Cablevision
offers as being far too low. Newmark believes
$300 million has been “left on the table” by the
two sports offers, and that some 6 million square
feet of prime real estate should be worth close to
$200 a square foot, making the total property acreage worth more than $1 billion.
Leaders of both the New York Assembly and Senate have announced they will have a budget for
2005 passed by April 1. Unless you are a New
Yorker, the significance of this may be lost on
you, but meeting that deadline is something that
has not been accomplished in 21 years in the
great Empire state. Things do not move with
the speed of light, or sound, or glacial ice, in the
state that prides itself as being a national leader
in all things except possibly legislation.
Perhaps more important, it seems the legislators
have lost their awe or amorous admiration for
their third term governor, and are at odds with
him on several issues as the deadline approaches.
They are even talking defiantly, both Senate
president Joe Bruno and House speaker Sheldon
Silver standing together and saying they will announce a budget next week on time. Governor
George Pataki took exception to that, saying, “I
have the ability, at the end of the process, to exercise my executive powers, and I intend to do
that.” One contentious issue is Pataki’s plan to
settle land claims with five Indian tribes by allowing them to open casinos in the Catskills. A
bill in draft form in the Assembly would bar tribes
from out of state opening casinos in New York
state, and three of the five tribes dealing with
Pataki are located out of state, although all five
have original roots in New York.
Of paramount interest to racing is the status of
legislation that would make changes in existing
law that has been found unconstitutional. The
changes would enable Yonkers Raceway and
Aqueduct to begin construction of their racinos,
which have been stalled by the present impasse.
Bruno says he thinks the problem has been fixed,
but Pataki says he has questions how the legislators are doing it, and says he has some reservations on the VLT solution.
March 29, 2005
MORE OF THE SAME
WHAT CONSTITUTES ENOUGH?
If the original American colonies had been as preoccupied with local and regional arguments as
American racing is today, we probably still would
be part of the British empire. Racing has little
interest in cosmic views, but a great deal of interest in local fights.
West Virginia’s four racetracks already operate
10,802 slot machines, but they have told the state
legislature they will be in dire peril once neighboring Pennsylvania gets rolling, and the state
Senate, at least, has agreed the tracks are in mortal danger. The Senate approved a bill yesterday
that would allow the tracks to operate table games
as well, as long as voters in the counties in which
they operate agree. In a quaint touch, the Senate amended the bill by attaching two provisions:
regional jails would get additional revenue from
the table games, and each track would have to
pay $125,000 toward local “economic development.” The state would take 23.5% of table game
revenue, with smaller shares going to purses and
racing pensions and other state funds. The Senate approved the table games measure on a 1914 vote, and sent it to the House of Delegates,
where its sponsor called chances of passage “excellent.” One Republican senator put forth an
amendment that a statewide referendum be required, saying, “I don’t think anyone can credibly argue that casino gambling won’t have a
statewide impact,” but his colleagues killed that
idea 22-11. The 5% share for jails, taken from
money that otherwise would go to the general
fund, squeaked through 17-16, jails obviously being a more sensitive subject to senators.
New Jersey and the 2007 Breeders’ Cup is a classic example. The no-holds barred bruising battle
between the New Jersey Racing Commission and
the Thoroughbred Horsemen’s Association, a
power struggle for control, continues to threaten
the Breeders’ Cup, currently scheduled for
Monmouth Park two years from now. Chances
are dimming, as a Cup deadline of April 9 approaches and both Dennis Drazin, counsel for the
horsemen, and Frank Zanzuccki, executive director of the racing commission, are acting like
Gov. Robert Ehrlich Jr. and House Speaker
Michael Busch in Maryland: give no ground.
Some interesting oratory has resulted. Alan Foreman, chief executive officer of the Marylandheadquartered Thoroughbred Horsemen’s Association, said he has remained “on the periphery”
given the circumstances. What constitutes “a
periphery” apparently is highly subjective, for
Foreman ventured pretty close to the fire when
quoted by Bloodhorse.com as saying, “There is
no horsemen’s organization in the country being
harassed and micromanaged by a racing commission like this one is.” He also was quoted as
saying, “Breeders’ Cup shouldn’t go into a venue
where these type of shenanigans are going on.”
That seems a fairly strong endorsement
of`Drazin, whose group has been accused of fiscal mismanagement. Drazin says, “the commission position is wrong, but the commission is unwilling to budge.” Zanzuccki says the matter has
been scheduled for court and will be litigated in October. The Breeders’ Cup
does not intend to wait that long.
NEXT MOVE UP TO PATAKI
It appears that both houses of the New York legislature are in accord with an increase from 29%
to 32% of the first $50 million in “vendor’s fees”
for VLTs, with a boost to 29% for the next $100
million and 26% for everything over that, but
there has been no word from Albany that George
Pataki agrees, or will. Construction of racinos at
both Yonkers Raceway and Aqueduct hinge on
passage of the measure. Whether passage
would fulfill Jeff Gural’s requirements to
buy Vernon Downs is unknown.
BLESSINGS OF A RACING GOV
The state of New Jersey, or at least the racing
interests in it, can be thankful they have a man
who understands and appreciates racing as governor. Richard Codey, urged by the New Jersey
Sports and Exposition Authority, stepped into
the dispute between his racing commission and
thoroughbred horsemen and ended it with a
phone call, apparently securing the Breeders’ Cup
for Monmouth Park in 2007. The racing commission, for its part, will allow the Thoroughbred
Horsemen’s Association to retain three of its nine
board members if they win reelection later this
year, and the parties are scheduled to finalize the
agreement in state Superior court tomorrow. A
spokesman for the Breeders’ Cup called the resolution “good news,” and NJSEA CEO George
Zoffinger said, “Now we can get back to the business of preparing for the Breeders’ Cup.”
STILL A “MAYBE” IN NEW YORK
The Republican Senate and Democratic Assembly may have reached agreement on raising VLT
takeout in New York, but there is no indication
yet that Gov. George Pataki will sign whatever
they send him, and disturbing vibrations that he
will not. A Pataki veto may well be in the offing,
and for harness racing there is an equally big
threat. The “Friends of New York Racing,”
meanwhile, whose proper name should be
“Friends of New York Thoroughbred Racing,”
are still buzzing around the state, building models that are not likely to have much of substance
for harness racing . They now have entered an
agreement with the man who knows most about
New York racing -- Bennett Liebman, director
of the Government Law Center at the Albany
Law School-- for help from him and his students
in preparing a report on the history and development of racing, pari-mutuel and breeding law in the state.
March 30, 2005
No one knows more about those subjects than
Liebman, and hopefully he and his students, and
Woodbine Entertainment and Churchill Downs,
both of which are helping to fund Tim Smith’s
venture and have harness racing interests of their
own, will make sure that whatever emerges does
not lose sight of harness racing as a still important and vital segment of racing in New York.
Without their input harness racing leaders in New
York have cause to worry, whether they realize it
or not.
TOP COURT CURTAILS INDIANS
The United States Supreme Court, in an 8-1 decision, has ruled that Indian tribes cannot expand
their tax-exempt holdings by buying up property
that has been outside its reservation for generations. With Justice Ruth Bader Ginsberg writing the 22-page majority opinion and only Justice John Paul Stevens dissenting, the Court ruled
that “the tribe cannot unilaterally revive its ancient sovereignty, in whole or in part, over the
parcels at issue. The Oneidas long ago relinquished the reins of government and cannot regain them through open-market purchases from
current titleholders.” The decision came in the
dispute between the little city of Sherrill, NY, and
the New York Oneidas over unpaid taxes on a
gas station, convenience store and defunct T-shirt
factory. The Court ruled that too much time had
passed for the Oneidas to now claim tribal sovereignty on individual properties within the city,
and that doing so would create a “disruptive”
patchwork of local and Indian jurisdiction. Justice Stevens, in dissenting, argued that the decision “is at war with at least two bedrock principles of Indian law,” that only Congress can reduce a tribe’s reservation, and that only Congress can change a reservation’s tax status. The
decision overruled two lower court rulings. It
was silent on the fact that the Indians did not
voluntarily relinquish their sovereignty
years ago.
March 31, 2005
HOW GOES IT IN FLORIDA?
THE LADY VS. CAL RACING BD
It could be worse, but it could be better, too. The
fate of slots at Pompano Park and Gulfstream,
already decided by public vote, now rest in the
hands of legislators, who do not always feel obligated to accommodate their constituents. State
senators know the bill was approved by Broward
county voters -- twice -- but they also know they
control how many machines, how long they can
operate, who can play them, and most important
of all, how much tax the state plans to impose on
the tracks who operate them. The latest thinking is reported to be a tax rate between 30 and
35%, no limits on the number of machines but a
limitation on hours of operation, no free booze,
and no one under the age of 21. The House, however, may take a stiffer stand, possibly trying to
limit the machines to VLTs and electronic bingo,
or “class II” games that already exist in Florida’s
Indian casinos. If full slots are approved for the
tracks, the Indians already have served notice
they intend to negotiate for them as well, as provided by federal law.
There is no fury like a woman scorned, and the
California Horse Racing Board is feeling the
wrath of a lady who doesn’t like to be ignored.
Mary Frances Rowe, the former mayor of Sunnyvale in the San Francisco bay area, turned her
attention to horse racing a few years ago and was,
she says, “swindled” by a well known trainer in
a private horse sale. This has been known to
happen, in California and elsewhere, and Ms.
Rowe ultimately got back $30,000 she paid for
the horse. That didn’t end things, however, according to a story by Jack Shinar in
bloodhorse.com. Ms. Rowe heard about the case
of trainer Frank Monteleone, who was accused
in a Nevada court of defrauding two clients in
the acquisition and training of two European
thoroughbreds. A Nevada court issued a $635,000
judgment against Monteleone before a settlement
was negotiated, and Ms. Rowe became incensed
that the former executive director of the California racing board, Roy Wood, allegedly made a
deal with Monteleone, ignoring the fraud case in
return for information on drug violations. The
board denied any such agreement had been
made, but a California deputy attorney general
seemingly confirmed one may have been, writing to Ms. Rowe that, “The requested record is
exempt from disclosure under the Public Records
Act...it being part of an investigatory or security
file compiled by the CHRB for law enforcement
or licensing purposes.” The board now has no
comment, but Ms. Rowe is now fully revved up,
and has filed a lawsuit asking a court to compel
the racing board to comply with the Public
Records Act. She claims her interest is that the
board operates in secret, saying, “They are a
public agency. So why don’t they start acting
like it?” A friend who knows Ms. Rowe told us
she sued trainer Jack Van Berg and won, and
that Ms. Rose is “tenacious” and not easily
deterred. Obviously.
A REAL THREAT IN DELAWARE
Two HTA tracks -- Dover Downs and Harrington
Raceway -- have prospered with slots in Delaware. They face a serious threat now, however,
partly from imminent competition in Pennsylvania but even moreso from a proposal to build a
$300 million casino on the waterfront in
Wilmington. The proposed Diamond Casino
would be built on 50 acres on the Wilmington
Seventh Street Peninsula, with up to 4,000 slots,
a 400-room hotel, and a full scale entertainment
and shopping complex.
10-CENT SUPERFECTAS
Starting Saturday, Hawthorne in Chicago
will begin offering 10-cent superfectas, offering fans the opportunity to play far
more combinations.
April 1, 2005
YOUBET TOSSES THE GANTLET
ELSEWHERE, SLOT TURMOIL
Unannounced to its track partners, Youbet.com
has quietly launched a program offering rebates
of up to 11% to its best customers, according to
Daily Racing Form, and some of the track partners are less than pleased. Youbet president and
CEO Chuck Champion said notification of the
rebate program was sent to 46 current or previous customers who live in the U.S., except for 15
states including California where rebates are prohibited, and live more than 25 miles from any
track. Champion said the move was made “to
increase their interest and wagering into the parimutuel pools in the United States.” Concerning
track partners that are unhappy at not being
notified, Champion told the Form’s Matt Hegarty
that, “A lot of people encouraged us to do this. I
do know that there is some confusion about this
from people who don’t really understand it, and
we look forward to talking to them.” Most track
operators in the U.S. today understand rebates
fairly well, including Charles Hayward, the new
president of NYRA, who found out about the
move secondhand over the weekend, and said he
was “mystified” and called Youbet’s rebates on
NYRA’s three tracks “pretty distressing percentages.” Peter Berube of Tampa Bay Downs also
understands rebates, having addressed the joint
HTA/TRA convention a year ago on the subject,
and he called the move “disturbing” and “a cause
for concern on a day-in or day-out basis.” He
predicted the move would have “some consequences.” Steve Mitchell, vice president of wagering operations for Woodbine Entertainment,
said Woodbine’s contract with Youbet was being
placed in jeopardy because of the rebate program, which calls for 6.5% on straight wagers
and 11% on WEG exotics. Mitchell said Woodbine was not happy about the idea, and said if a
satisfactory answer to Youbet’s motives
was not forthcoming, WEG would review
its wagering agreement with Youbet.
Here are late slot developments around the nation:
In Illinois, Gov. Rod Blagojevich finally got off
the dime and said he would veto plans for a Chicago casino. He also left racing out of his budget
solution, proposing instead to double the number of slot machines and table games at Illinois
casinos from its present 11,000 “positions” at nine
existing casinos, with a 10th still in dispute.
In New Jersey, the chairman of the Assembly
Budget Committee said Governor Codey’s proposal for VLTs at tracks is “going nowhere,” and
his committee is not including VLT revenues in
its projected revenues for 2006. In West Virginia,
a major backer of legislation for table games for
tracks said the bill “is in trouble in the House,”
saying it was being held hostage and some legislators were ready to pull their support. The measure was approved by the Senate but is before
the House Judiciary Committee and will need
House Finance Committee approval and three
readings in the full House before that body adjourns April 9.
In Florida, the first committee to consider
Broward county slots voted to limit games to electronic bingo. The leader of the slots movement
in Broward, Dan Adkins of Hollywood Greyhound Park, said, “No question the voters in
Broward knew what they were voting for. Any
8-year-old on the street knows what a slot machine is.”
In New Hampshire, slots for Rockingham and the
state’s other tracks are still alive. State senator
Lou D’Allesandro, whose bill would allow nearly
4,000 VLTs at the tracks, said, “We have gambling now. The difference is if we pass this bill,
the state makes money.”
In Maryland....gridlock. What else?
April 4, 2005
WEG PLANS TO COMMINGLE
A WEEK LEFT IN MARYLAND
Woodbine Entertainment, planning to take advantage of the elimination of the U.S. 30%
witholding on foreign wagers, is applying to send
bets directly into commingled pools at the Meadowlands in New Jersey and Calder Race Course
in Florida. Woodbine’s chief financial officer,
Steve Mitchell, told Daily Racing Form WEG
hopes to commingle with the Meadowlands by
June, and also will seek commingled pools in
California and New York. He said Canadian
tracks are 100% committed to the project, but
admitted it was a complicated regulatory process. He said Woodbine did not plan to raise its
minimum bet from $1 to $2, saying that was not
considered a viable option by WEG.
The days narrow down to a precious few, as the
song goes, and chances for slots in Maryland now
rest on the usual hurly-burly of last minute dealing. It seems unlikely that there will be any between Gov. Robert L. Ehrlich Jr. and his arch
foe House Speaker Michael Busch, so the legislative session is likely to end without compromise
on the issue. Through heavy lobbying, Ehrlich
got 35 of 43 Republican delegates to support a
House slots bill, but Busch and Senate president
Thomas V. Mike Miller could not or would not
agree, and time is running out.
IT’S NOW ALL UP TO GEORGE
The New York legislature, Senate and Assembly,
has done its job on clearing VLT hurdles that
will enable expansion to Yonkers, Aqueduct and
beyond, but The Boss -- and we don’t mean
Trump -- has not yet signed off on the deal. While
Yonkers and Batavia and Vernon Downs await
the final word, Pataki is expected to negotiate
with Joe Bruno and Sheldon Silver on their plans,
which raise the track’s share to 32% of the first
million in annual revenue, 29% of the next million, and 26% of revenue above $10 million, plus
8% of the first $100 million of slots revenue for
marketing and advertising expenses and 5% of
revenue above $100 million. Charles Hayward,
president and CEO of NYRA, called the legislation “a good bill,” and said that he thought all
parties concerned would still agree it was a good
bill even after expected changes are negotiated.
At Vernon Downs, meanwhile, the track will hold
an open house next week, of both its property
and books, for eight investors it says are
interested in the track and its racino.
UNHAPPINESS IN ILLINOIS
Rod Blagojevich, the governor of Illinois, is having a hard time pleasing anyone on gambling issues in his state. His proposal to raise $300 million by doubling the number of gambling “positions” on the state’s nine existing riverboat casinos would, one would have thought, pleased the
casinos, but they say they have no intention of
buying more equipment without tax relief, currently topped out at 70%. Only two casinos currently pay that rate -- Harrah’s in Joliet and the
Grand Victoria in Elgin -- with all the others except one falling in the 50% bracket for grossing
between $100 million and $250 million a year.
Those in that bracket fear doubling the positions
from the present 1,200 a boat to 2,400 would drive
their gross above $250 million, pushing them from
the 50% tax bracket to 70%.
WAPLES IN TROUBLE, AGAIN
Randy Waples, blessed with an abundance of
driving talent, seemingly is cursed with a shortage of self restraint. After losing months of racing last year for intemperate actions, he now has
been fined $1,000 and suspended for 90 days for
“improper and insulting language and improper conduct to another participant” at
Mohawk Raceway.
April 5, 2005
GEORGIAN DOWNS SOLD
THE GUY SIMPLY WON’T QUIT
Great Canadian Gaming corporation, which recently purchased Hastings Park, Fraser Downs
and Sandown Park in British Columbia, has returned to the marketplace and is acquiring Georgian Downs in Ontario for C$25 million, plus assumption of shareholder loans and other indebtedness of some C$23 million. Georgian Downs is
a harness operation in Innisfil, Ontario, some 45
miles north of Toronto, and has approximately
C$34 million in total assets including buildings,
land and undeveloped property. It also has slot
machines, and Great Canadian Gaming’s president and CEO, Anthony Martin, called it a “total entertainment package.” Georgian Downs is
new, having been built in 2000 and opening a
year later, and races two days a week, 12 months
a year.
Cornelius Murray, the lawyer who brought the
suit that resulted in portions of New York state’s
VLT law being ruled unconstitutional, is at it
again. He now is urging attorney general Eliot
Spitzer to shut down the flourishing and hugely
profitable Turning Stone Casino, near Vernon
Downs. Murray contends Turning Stone has been
operating illegally for 12 years, and in a letter to
Spitzer he wrote, “Your office has earned a justifiable reputation as a vigorous prosecutor and
enforcer of violations...including Internet gambling. I would now expect that you would bring
the same enthusiasm and vigor to bear in this
case.” Murray’s letter followed by just two days
the United States Supreme Court decision that
only 32 acres were actually Oneida’s sovereign
territory, and that 17,000 other acres of the tribe’s
property in central New York is taxable. Murray
wrote Spitzer that “the property is...the sovereign soil of the state of New York and activities
thereon are subject to the laws of the state of New
York.” An Oneida spokesman said the court ruling is about property taxes, not gambling.
Murray won a court ruling last year that said
the Oneida gambling compact issued by former
governor Mario Cuomo was invalid. That decision is under appeal.
In other Canadian racing business news, the
Ontario Racing Commission ruled that HTA
member Windsor Raceway cannot arbitrarily
move its premier stakes event, the $450,000 Provincial Cup, from spring to fall. Windsor had
hoped to race the event late in its meeting, but
the commission, taking into consideration that
entries had been taken and payments made by
owners and trainers, said the race would have to
be raced as originally scheduled on Sunday, May
29, with eliminations, if needed, on Sunday, May
22.
In Aurora, Ontario, the board of Frank
Stronach’s MI Developments urged shareholders to reject a proposal to convert it into a real
estate trust and dump its interest in Magna Entertainment Corporation, its racing arm. The
board, in recommending rejection of a plan submitted by its second largest shareholder,
Greenlight Capital LLC, raised its dividend 67%
to fend off critics. The payout, an increase of 60 cents a share, will cost $28.6
million a quarter.
MEADOWS GETS SURROUNDED
The Meadows, HTA’s longtime member in western Pennsylvania southwest of Pittsburgh, has
since it was built commanded an impressive site
just off Interstate 79. It now appears it will lose
its exclusivity, if plans for a huge, 122-acre factory outlet mall and 210-acre Bass Pro Shops
store, restaurants and hotel materialize. The explosion of long-predicted development near the
track and its adjoining motel has delighted some
Washington county residents and appalled others, who fear overcrowded roads and
strained public services.
April 6, 2005
SENATE BOOST FOR POMPANO
RACING THRU THE COURTS
There was good news in Florida, where a key
Senate leader said Pompano Park, Gulfsteam
Park, Hollywood Greyhound and Dania Jai-Alai
in Broward county should get just what voters
there voted for: slots, and not electronic bingo
machines. Senator Dennis Jones, chairman of the
Regulated Industries Committee, made it clear
he intends to push for slots, saying, “The constitutional amendment clearly says they were voting for slot machines. Nowhere did it say bingo
or video machines. The governor or House just
dreamed that up.” Jones’ committee yesterday
approved, by a 6-2 vote, a bill that would let
Broward county tracks operate slots 16 hours a
day, 7 days a week, with a tax ranging from 30%
to 35%, as opposed to a House bill calling for a
35% to 45% tax based on number of machines,
with a maximum of 3,000 at each facility. The
Senate bill sets no limits on the number of machines a track could have. Jones indicated negotiation will be needed, but he said, “There are
going to be entertainment centers and this bill is
built to help them be successful. If we can’t work
out our differences this year, we’ll work them out
next year.” Dan Adkins, vice president of Hollywood Greyhound who speaks for Broward’s
tracks, called the Senate bill “a very good business plan...and it will allow us to produce what
we promised the people.” The Senate slots bill
passed with no debate, few amendments and only
brief public testimony.
Attendance may be down at tracks, but it is up
in courts across the land, keeping squadrons of
lawyers busy fighting either for or against developments affecting racing.
In Minnesota, Canterbury Park had less luck.
The Senate committee on Agriculture, Gaming
and Veterans Affairs voted 10-4 against allowing
a racino at the track. Canterbury president
Randy Sampson said he was not surprised by the
committee’s vote, and said he fully expected the
gaming debate to continue in both the
Senate and the House this year. The bill
is still alive in the House.
In New Jersey, the New York Giants have sued
the state, seeking to halt construction of the $1.3
billion Xanadu project because of its impact on
parking and “tailgating,” a popular pastime at
Giants Stadium where fans prepare sometimes
lavish pre-game snacks and meals on the stadium
parking lots. The Giants also are trying to force
the New Jersey Sports and Exposition Authority
to spend hundreds of millions of dollars to turn
29-year-old Giants Stadium into a “state-of-theart” facility. On the tailgating issue, Giants executive Steve Tisch rejected the idea of the multilevel parking garage proposed as a parking solution at Xanadu, saying, “Tailgating is a great
fan experience, and I can’t imagine tailgating on
the sixth floor of an eight-floor parking structure.” Also in New Jersey, leading trainer Noel
Daley’s attorney received a second continuance
on charges following Daley’s arrest for possession of prescription drugs without prescriptions
and possession of hypodermic needles and syringes at his Magical Acres training headquarters. A new court date was set for May 4 to allow
for completion of testing on vials found in Daley’s
possession.
In North Dakota, beleaguered Susan Bala, facing sentencing April 29 on charges of operating
an illegal gambling site at her Racing Services
operation, was ordered to return a $50,000 loan
she made from her company to buy a life insurance policy in 1995 and borrow against its cash
value in November, months after Racing Services
declared bankruptcy. A federal bankruptcy judge
also ordered her to turn over $14,000 in furniture she had bought with Racing Services
funds.
SLOTS A LOTS AROUND NATION
Pro and con, good and bad, legislators and others wrestled with slots problems this week.
In Massachusetts, the legislature will take up the
issue of legalizing slots at tracks this session, according to the chairman of the House Joint Committee on Consumer Protection and Professional
Licensure, Vincent Pedone, who has pledged to
address the issue in his committee. The former
Speaker of the House, Thomas Finneran, never
let it come to a vote, but new impetus and
Finneran’s departure may result in a decision.
In neighboring New Hampshire, hopes dimmed
as the two biggest boosters of legalizing slots all
but admitted defeat. The principal sponsor of
the idea, Democratic Senator Lou D’Allesandro,
said he will force an up-or-down vote to permit a
total of 5,700 machines at the state’s four tracks
and three resorts, but he admitted momentum
has turned against his cause, and said some formerly in his corner now aren’t even returning
his phone calls. The Republican senator from
Rockingham Park’s district, Chuck Morse, was
quoted in the Nashua Telegraph as saying, “It’s
going down....for some reason many of the Democrats have decided we don’t need the revenue.
They aren’t looking at what I am looking at.”
Morse said that the failure of Gov. John Lynch
to support the idea, thinking that an increase in
cigarette taxes would be enough to finance the
next state budget, hurt the cause.
In West Virginia, The Intelligencer-Wheeling
News-Register reports that Senate Bill 442, which
would provide table gaming for the state’s slotrich tracks, “Likely won’t even make it out of
the House Judiciary Committee.” Today is the
last day bills can be passed out of committee and still be read three times, providing little chance of passage.
April 7, 2005
In Maryland, Gov. Robert Ehrlich, whistling
bravely in the dark, said he still was optimistic
that slots would be legalized despite the fast approaching end of the legislative session with little
sign that the legislative stalemate can be broken.
Ehrlich said yesterday, “We believe the bill can
and will be passed.” When asked the same question, Senate president Thomas V. Mike Miller
said, “Quite frankly, I don’t. We have a long
way to go and a short time to get there.”
In Maine, a push has started at the state house
to get legislation passed for a Passamaquoddy
Tribe harness track and racino in Washington
county in northern Maine. Sebastian Sinclair,
president of Christiansen Capital Advisors consulting firm, said such a casino would be in a far
more rural area than others in the United States,
and added, “I would be hesitant to be an investor in it.” Some Maine horse racing interests
support the idea, according to MaineToday.com,
as an opportunity to build a racing circuit in
Maine. The state representative from the district said, “There is overwhelming support for
something like this in Calais. I’m surprised by
it.” Maine’s two harness tracks, Scarborough
Downs and Bangor Raceway, reportedly have
taken no stand on the issue, although
Scarborough’s attorney said he thought the state
had enough racing currently. He did add, however, that if purses grow from slots operations at
Bangor Raceway, the state could see an increase
in demand.
In Minnesota, Southwest Casino Corporation,
planning to build a new harness track north of
Minneapolis, announced it had lost its chief investor and his $50 million in backing. Gordon
Graves, who was scheduled to become chairman
of the venture, has withdrawn his investment.
Southwest’s CEO gave no reasons, but said
the company had a backup plan to move
ahead and added. “Everything’s OK.”
TWO RIGHTS AND A BIG WRONG
The United States and Antigua are both claiming victory after a World Trade Organization
appellate board handed down a 146-page decision this week. Both countries may be right in
their reading, but from this vantage point there
is no good news, under any interpretation, for
U.S. racing.
The reason is that in order to comply with the
decision, the U.S. has several courses it could
pursue. One would be to ignore the decision and
face sanctions, since it has little trade with
Antigua. A more draconian approach would be
to leave the World Trade Organization. A third
possibility -- and as long as it exists it is bad news
for racing, with no other interpretation -- is the
possibility that the Interstate Horseracing Act of
1978, the bedrock on which current Internet
wagering rests, where legal, could be challenged
or amended. That possibility was hinted at by
Acting U.S. Trade Representative Peter Allgeier,
who said, “This report essentially says that if we
clarify U.S. gambling restrictions in certain ways,
we’ll be fine.” But he added that federal restrictions on Internet gambling could be maintained
and still meet the WTO’s decision, which denied
a U.S. appeal of an earlier decision that the U.S.
policy contravenes WTO rules and regulations.
Antigua’s case with the WTO contended U.S.
policy interfered with its economic welfare by
preventing U.S. citizens from betting with legal,
licensed and regulated Antigua Internet betting
outlets, and the WTO agreed. Antigua argued
that the Interstate Horseracing Act is inconsistent with U.S. prohibition on Internet gambling,
and its legal counsel, a Texas attorney, says the
decision was “clear cut, and Antigua won on all
major points.” A law professor at the state university of New York in Buffalo said, “If
advising a client, I would urge caution.”
It is good advice for racing.
April 8, 2005
The professor, Joseph Kelly, who is editor of Gaming Law Review, warned that the matter is not
going to be clear cut. “There are going to be further proceedings on both sides,” he said, noting
that while the U.S. might ignore Antigua, with
which it has few trade dealings, it would find it
difficult to ignore other trade partners intent on
expanding Internet betting. “How are you going to stop a British-licensed casino in the United
Kingdom from taking wagers from American citizens?” Kelly asked, and answered the question
himself. “You just can’t.”
YOU WON’T BELIEVE THIS, BUT
After months of diligent lobbying in New York
to get VLT revenues to racing increased, the New
York Thoroughbred Breeders and the New York
Thoroughbred Horsemen’s Association now are
urging Gov. George Pataki to veto the legislation
raising racing’s share. The thoroughbred horsemen are piqued at the New York Racing Association, saying NYRA won’t split the new revenue
according to terms of current law, which provide
for 7.5% to 10% to purses. Pataki doesn’t like
the legislation either, passed over his objections,
and he has until Tuesday to veto the measure.
The horsemen are unhappy because the measure,
as passed, does not mandate how the revenue will
be shared. The horsemen’s execs, Dennis Brida
and Richard Bomze, oppose the legislation even
though it could mean more money for everyone
in racing. If their plan is to bluff the legislature,
which has already decided against Pataki’s plan,
they are playing a very dangerous game, particularly with Pennsylvania gearing up with slots for
next year.
TWO GAMBLING BILLS DEAD
Slots for tracks in New Hampshire and table
games for those in West Virginia died yesterday,
although there could be a last minute resurrection in West Virginia today. The session
ends tomorrow night.
April 11, 2005
WAIT ’TIL NEXT YEAR..OR TWO
HOPES STILL ALIVE IN TEXAS
At the risk of seriously dating ourself, the old
Brooklyn Dodgers used to have a rallying cry,
after losing pennant races, “Wait ’til next year.”
Unless something monumental happens between
now and midnight tonight, that has to be the forlorn hope of Maryland racetracks. Gov. Robert
Ehrlich Jr. gave up Saturday, telling WBAL radio in Baltimore that slots not only were dead for
the session now ending, but “for two more years,”
until after the 2006 elections. Ehrlich added, “It’s
a crying shame. The leadership has told me they
will not allow a slots referendum on the ballot
with my name on the ballot at the same time.”
The Speaker of the House in Texas, Tom
Craddick, has told supporters of casinos, and perhaps racinos, they should make their push in the
next two weeks, although he doubts there are 100
votes in the House to approve such legislation.
Because a constitutional amendment would be
needed, a two-thirds vote would be required for
approval. The Texas state comptroller, Carole
Strayhorn, who has been a longtime supporter
for expansion of gambling, estimates casino gambling in Texas could mean an additional one billion dollars a year in revenue for the state.
SAME STORY IN INDIANA
Even though the legislature didn’t show any, the
governor of New Mexico, Bill Richardson,
showed good judgment in Santa Fe, vetoing a
bill that would have allowed the state gambling
regulatory agency to grant licenses to people or
organizations whose licenses had been revoked
in other jurisdictions. The veto could have ramifications for Ruidoso and Hobbs track owner R.
D. Hubbard, who still is not totally out of the
woods in Indiana, where he voluntarily relinquished his gaming license three years ago after
a scandal involving alleged use of prostitutes at
the Belterra Casino Resort. A new federal lawsuit filed by Pinnacle Entertainment, which
owned Belterra and of which Hubbard was chairman, could result in the Indiana commission imposing further sanctions against Hubbard, according to the freenewmexican.com, the Web site
of The New Mexican. If that were to happen, the
site reported, it could affect Hubbard’s status in
New Mexico. Only one New Mexico senator,
Cisco McSorley, an Albuquerque Democrat,
spoke against the forgiveness bill, and his response when told the governor had vetoed it was
quick and blunt. “Hallelujah,” he said. “The
governor is a man of integrity and balls.”
This is the Wild West, pardner.
Things were no better in Indiana, where HTA
members Hoosier Park and Indiana Downs had
their hopes dashed by Senate Republicans, who
rejected a plan to put 5,000 slot-like machines at
the two tracks. Minority Democrats offered the
proposal, saying it could raise some $180 million
for funding of public schools, but the vote followed party lines and went down, 33-16. Three
weeks remain in the Indiana legislative session,
and a principal supporter of the slots measure,
Democratic senator Tim Lanane of Anderson,
home of Hoosier Park, told that body that the
loss of $75 million annually to riverboat communities could be avoided. “We perhaps could avoid
all of that if we put all of the chips that are available on the table,” he said. “We’ve got to do that.”
Under the amendment proposed, the Hoosier
Lottery Commission would have owned and operated the machines and the state would have
kept 60% of the proceeds, with the rest split
among horsemen and the two tracks. The chairman of the Senate Tax Committee, Republican
Luke Kenley, said the proposal should be heard
in a committee hearing, where the public can testify.
NEW MEXICO COMMON SENSE
April 12, 2005
ANOTHER STORM ON COAST
KEENELAND CUTS OFF FIVE
After a winter of black clouds and rain, California racing has been hit with another storm. This
one surrounds the physical condition, or more
precisely the stable subterfuge in concealing it,
of the standout thoroughbred filly Sweet
Catomine, the soundly beaten favorite in last
Saturday’s Santa Anita Derby. The filly was reported in press conferences as okay and ready to
run, but she had been transported -- under false
identification -- to a veterinary clinic for hypobaric chamber treatment earlier in the week.
A California Horse Racing Board investigator
used strong language following his investigation,
saying assertions made by both owner and trainer
were “deliberately falsified” and misled the public, which made the filly the even money favorite
in the race. The racing board filed complaints
yesterday against both the filly’s owner, Martin
J. Wygod, and Dean Kerkhoff, the driver of the
van who told a stable gate guard the filly was “a
pony” when he hauled her at 3:15 a.m. a week
ago Monday for special treatment, and again
when he returned her to the track the next day.
The case has created yet another press furor for
California racing nationwide.
Keeneland Racecourse has cut off five major rebate shops from receiving signals from its 16-day
spring meeting, now underway. President Nick
Nicholson said concerns about their betting practices led to the discontinuation of signals to Racing and Gaming Services in St. Kitts; Euro OffTrack on the Isle of Man; Capitol Sports in Australia; the Elite Turf Club in Curacao; and the
Tonkawa Indian casino in Oklahoma.
IT’S OFFICIALLY OVER IN MD
The Maryland legislature adjourned last night,
and for the third straight year legislation to legalize slots at tracks died with adjournment. The
governor, Robert L. Ehrlich Jr., put the full blame
on House Speaker Michael E. Busch, and said
no slots legislation could have a chance in the
state until 2007, after next year’s election.
PATAKI DEADLINE TODAY
The fate of VLT legislation in New York state -and probably of Vernon Downs -is due to be
decided today, the deadline for Gov.
George Pataki to sign or veto the pending VLT revenue increases to tracks.
AT WAR ON HORSE SLAUGHTER
A determined trio launched a major effort yesterday against the slaughter of U.S. horses for
foreign food consumption. Award-winning author Bill Heller and U.S. Congressmen Ed
Whitfield of Kentucky and John Sweeney of New
York outlined their case at the National Museum
of Racing in Saratoga Springs, also heralding the
publication of Heller’s new book, “After the Finish Line: The Race To End Horse Slaughter in
America,” now available in bookstores and from
Bow Tie Press. Congressman Whitfield is the
husband of attorney Constance Whitfield, vice
chair of the Kentucky Horse Racing Authority
and chairwoman of the Kentucky Equine Drug
Council. Reps. Whitfield and Sweeney are cosponsors of House bill 503, that would outlaw
commercial horse slaughter in the U.S.
EVICTION AT LES BOIS
The axe fell in the woods of Les Bois in Boise,
Idaho, this week, as county commissioners gave
Lariat Productions, which had been running the
track, 48 hours to hand over the keys. A legal
battle is expected, but with no signed lease order, Capitol Racing, which is leaving Cal-Expo
in California in late summer and had hoped to
operate Les Bois, cannot apply for a license there
for live racing or simulcasting. Financial problems precluded signing of a lease between
the two.
April 13, 2005
PATAKI SIGNS VLT BILL IN NY
LOOKING FOR A GOOD JOB?
New York governor George Pataki has signed the
VLT bill approved by his legislature, and the
move could pave the way finally for slots at Yonkers Raceway and Aqueduct, and the restoration
of racing and introduction of gaming at Vernon
Downs. As passed, the legislation circumvents
the constitutional prohibition of using the monies for purses, by providing the funds to the tracks
and allowing them to strike their own deals on
purses with their horsemen’s associations. The
new law provides tracks with 32% of the first
$50 million in annual VLT revenue, 29% of the
next $100 million, and 26% on anything over that,
along with a marketing and promotional payment
of 8% on the first $100 million in VLT revenue
and 5% over that figure. That fund would be
capped at 4% of all VLT revenue for Yonkers and
Aqueduct. Legislators think the bill will be worth
some $1 billion more a year in revenue for New
York once racinos are up and running.
The Department of Agriculture in Delaware is
looking for an Administrator of Racing to represent the state’s interests at Dover Downs and
Harrington Raceway. The Administrator would
supervise the Delaware Harness Racing Commission staff, including the board of judges, veterinarians, inspectors, investigators and licensing
personnel, and would be the state’s chief liaison
officer between the state and track management.
The job will pay between $60,000 and $75,000 a
year, with a competitive benefits package. The
closing date for applications is May 6. For a full
job description and to submit a resume, contact
the Department of Agriculture, Human Resources, 2320 S. DuPont Highway, Dover, DE,
19901.
WHEN WAS THE LAST TIME?
When was the last time the governor, lieutenant
governor and secretary of agriculture of your
state showed up at your track for a race? This
week, in the case of Dover Downs, where Gov.
Ruth Ann Minner, Lieutenant Governor John
Carney Jr. and Secretary of Agriculture Michael
Scuse all turned out for dinner and the governor
proclaimed Monday “Rainbow Blue Day” in
Delaware. The Rainbow and driver Ron Pierce
did not disappoint, breezing to victory in the
$50,000 race named in her honor.
BIG FINE, BAN, FOR ZERON
Ontario driver Rick Zeron has been fined $35,000
and suspended for 10 weeks and trainer Richard
Moreau has been fined $15,000 and suspended
for 15 days for “acts injurious to racing”
at Mohawk Raceway.
THE TRADER GOES TO EUROPE
“Trader Bud” Hatfield, Ohio’s auto dealer and
amateur driver par excellence, is headed for
Europe....temporarily. He will represent the
United States in a 12-country amateur driving
competition in Austria in late June. Hatfield will
be attempting to improve on the best showing an
American amateur has ever made in the World
Cup Amateur Driving Championships, a third
place finish earned by Bob Krivelin six years ago.
CHURCHILL GOES TO COURT
With the Kentucky Derby looming less than four
weeks away, Churchill Downs has asked a federal judge to make sure the minions of suddenly
silent Wayne Gertmenian don’t rear their contentious heads. Churchill filed in U.S. District
Court last week asking for a hearing to ensure
the Jockeys’ Guild does not direct a Derby walkout. The petititon said the Guild “has contracted
or conspired with jockeys in an illegal effort to
control prices through concerted action,” and it
seeks an injunction againts illegal activities.
A hearing is set for April 27.
April 14, 2005
SECOND CHANCE IN ILLINOIS?
“A MISSION OF THE HEART”
The governor of Illinois says he is interested in
a new proposal, put forth by Chicago Democratic
House member Robert Molaro, that would provide a new approach to riverboat gambling taxation that includes a subsidy for Illinois horse racing. Molaro’s idea is to let existing riverboat
casinos increase their slots and table games
from the present 1,200 limit to 3,000, pay the
state $20,000 for each new space, lower their
top rate tax from the present 70% to 50%, and
provide 3% of each casino’s gross revenue to
the Illinois racing industry. He pointed out that
the government-regulated racing industry creates thousands of jobs and should be protected
from competition created by government action.
A spokeswoman for Gov. Rod Blagojevich said
of the Molaro plan, “It’s certainly something
we are interested in.”
That was the way Steve Ferguson, chairman of
the Cook Group of Bloomington, Indiana, one
of the world’s largest manufacturers of medical
devices, described the $240 million plan of his
company and Lauth Property Group of Indianapolis put forth to pick up the casino license
dropped by Donald Trump to restore the historic
French Lick Springs Resort and Spa. Oh, and
to operate a casino there. Ferguson said he
didn’t know any other way to put the offer, but
he also admitted that while he had said for years
his company wasn’t interested in bankrolling a
casino, “Mother always told me you’d eat every word you say, and she was right.” Right
from the heart, Steve.
THE LADY BUYS IT ALL
Marian Ilitch is 70, the daughter of Macedonian
immigrants who with her husband started a pizza
parlor in suburban Detroit. They called it Little
Caesars, and largely due to her smarts it grew
into one of the biggest national pizza chains. The
Ilitches and their seven children now own the Detroit Red Wings of the National Hockey League,
the Detroit Tigers of Major League Baseball, real
estate all over Detroit, and businesses with combined revenue of more than $1 billion last year.
Yesterday Mrs. Ilitch expanded her holdings, when
the Michigan Gaming Control Board voted 4-0 to
approve her bid to buy out her partners and become sole owner of the MotorCity Casino, currently owned by Mandalay Resort Group, whose
merger with MGM Mirage forces them to sell.
Mrs. Ilitch already owns 25% of MotorCity, and
will pay $525 million for Mandalay’s 53.5% share
and buy 11.5% held by Atwater Entertainment and the remaining 10% owned
by Detroit investor Tom Celani.
NOEL DALEY GETS SIX MONTHS
Trainer Noel Daley has been suspended six
months, fined $2,500, and denied the privileges
of all grounds under the jurisdiction of the New
Jersey Racing Commission during the suspension period for his second violation of
milkshaking rules. The judges also ordered a
full suspension of all horses owned or trained
by Daley. An appeal is certain, but the severity
of the suspension shows that New Jersey has
gotten serious about infractions of its rules.
In other New Jersey news, the New York Giants
and the state have reached an agreement that will
allow the Giants to build a new $750 million stadium at the Meadowlands. The settlement came
after Gov. Richard J. Codey intervened, calling
the move “a good deal for New Jersey taxpayers,” and adding, “We’re going to get a brand new
stadium with one of the best deals in the country.”
Giants Stadium, owned by New Jersey, opened with
the Meadowlands in 1976 and is among the oldest
in the National Football League. Giants’ COO
John K. Mara said the new stadium could be
ready by 2008.
April 15, 2005
A SETBACK FOR THE ISLE
RACING SAYS WHOA TO GAMES
Illinois governor Rod Blagojevich’s new Illinois
Gaming Board, appointed because the governor
was unhappy with the old one and its decisions,
has reopened the Emerald Casino issue. This
dispute has been ongoing for eight years, and appeared resolved last year when Isle of Capri
agreed to pay bankrupt Emerald $518 million for
its license, the 10th and final casino license in
Illinois. The state attorney general, Lisa
Madigan, immediately vowed to undo the old
board’s 4-1 vote to allow Isle of Capri to buy the
casino, claiming mob ties in Rosemont, and has
made good on her vow at least to the extent of
dragging the matter back for review. Illinois,
meanwhile, loses hundreds of millions a year while
the political haggling goes on. The chairman of
the new gaming board, Aaron Jaffe, says the
board will resume a long-suspended disciplinary
hearing aimed at stripping the license from Emerald, and has appointed a respected and reformminded former Chicago federal judge, Abner
Mikva, to preside over the revocation process.
Chicago Business reports that if Emerald’s license is revoked, it could “effectively end efforts
of Mississippi-based Isle of Capri Casinos to buy
the license and open a casino in Northwest suburban Rosemont.” Chairman Jaffe insists he is
not trying to punish Isle of Capri, but Les
McMackin, Isle of Capri’s senior vice president
of marketing and communications, says, “It’s
going to add more time to the process, and once
again impedes the ability for this license to generate anything positive for the state.”
HTA member Plainridge Racecourse and Suffolk
Downs in Massachusetts are deeply upset over
plans of the Massachusetts State Lottery to introduce new virtual horse racing games in the
state. The Lottery announced it was adding the
simulated race games “as just another way to generate random numbers for a game, like keno,”
and Lottery spokesman Joe Sullivan says, “This
is animation. It is not any form of live action. It
is not any form of an actual race. It is not offtrack betting. It is not a simulcast.” The tracks
see it in a totally different light. Plainridge president Gary Piontkowski said, “It is a simulcast,
and the idea of putting these into venues around
Massachusetts is off-track betting. Make no mistake about it. That’s what it is.” His view was
shared by Bob O’Malley, COO of Suffolk Downs,
who said, “I think the new game is going to look
exactly like a simulcast race. The images of the
horses on the video screen will be scaled to look
exactly like what we do.” Perhaps most significant of all, State Senator Michael W. Morrissey,
chairman of the Joint Committee on Consumer
Protection and Professional Licensure, which
oversees the state lottery, said, “It may look a
little cartoonish, but isn’t it just off-track betting?
If it is, shouldn’t we just send live signals to the
bars and restaurants so they can do actual simulcast betting?”
PENN NATIONAL NOT WAITING
Penn National Gaming, not choosing to wait until
it can get Bangor Raceway rebuilt into a racino, is
buying a restaurant overlooking the Bangor waterfront for $3.8 million and hopes to open
a temporary facility with 475 slots by November or December.
TOTAL DETENTION FOR DALEY
All horses trained by Noel Daley or in his care
must race out of detention for the next six months,
starting April 21, and each will be subject to a
$100 fee for the procedure, unless the horse is
part of a race in which all horses are detained.
The penalty is not new. It has been in effect for
high carbon dioxide rulings since November, 2001,
and every horseman signing a stall application
receives a copy of the rules, which also are
on the track’s Web site.
April 18, 2005
BIG NIGHT AT DOVER DOWNS
DANDY GUIDE AT NORTHFIELD
Harness racing fans at Dover Downs get to see the
best of the best tonight, when six Classic Series
bring out the best older horses in the sport, along
with six Hall of Fame drivers who will be guiding
them, plus two $100,000 events for Delaware bred
horses. The highlight of the night, of course, will
be the first meeting between the world’s two best
female pacers, Rainbow Blue and Loyal Opposition. Rainbow Blue won 20 of 21 races last year
and was named Harness Horse of the Year. Loyal
Opposition has won six of eight starts this year,
including her last four in a row, the two most recent being the $100,000 Strada Memorial and the
$122,520 Overbid at the Meadowlands. Glowing
Report, a $1 million winner, and Carolina Sunshine, nearing $1 million in earnings, also are in
the field.
Northfield Park’s 2005 media guide is out, and is
a first rate job. With a full illustrated roster of
track officials, a history of the track from its beginnings, a look at new improvements, detailed
information on simulcasting, statistics, a review of
2004, its featured races, its horsemen, and of
course a plug for its microbrewery, it is a complete
and thorough tool for media or fans.
CATSKILLS HAVE TO WAIT
GURAL TELLS IT AS IT IS
Casinos in the Catskills, long awaited, will have
to wait a little longer. New York governor George
Pataki late last week announced he was withdrawing land claim settlements with four Indian tribes
and would “review and reevaluate them“ in view
of a recent Supreme Court decision declaring that
an Indian tribe could not expand its sovereign territory simply by reacquiring former reservation
lands and declaring them sovereign and tax-exempt. A spokeswoman for one of the tribes affected, the Oneidas of Wisconsin, said, “We’ve
waited 200 years to settle, so another delay is
nothing new.”
A NIGHT MYSTERY MYSTERY
Where is Night Mystery, the horse that got the
Meadowlands’ leading trainer, Noel Daley, suspended? He reportedly was sold on March 15,
after the Feb. 25 race in which he tested positive for a high TC02 reading, but USTA
records indicate he hasn’t raced since
that date. Anyone know his whereabouts? Anyone wonder?
NEW OHIO COMMISSIONER
Ohio has a new racing commissioner. Gov. Bob
Taft has appointed Ted Brown, for the last five
years’s the governor’s labor liaison and chairman
of Taft’s Labor Advisory Council, to replace Scott
Boregemenke, who resigned as chairman of the
racing commission to become chief of staff for Ohio
House Speaker Jon Husted.
Jeff Gural was in Owego,NY, last week, giving local officials a realistic assessment of his plans for
Tioga Downs Racino, the new harness venture he
is building there. “This isn’t like ‘Field of Dreams,”
he told the Tioga County Legislature, “where if
you build it they will come. If you market it and
promote it right it will work.”
A GOOD GUY LEAVES US
Another of racing’s good guys is gone, with the
death last week of Nick Jemas at 86. There has
been no one like him at national racing meetings
since his retirement 19 years ago as national director of the Jockeys’ Guild. A fiery personality
who made his views known with force, vigor, humor and intelligence, he espoused the cause of
jockeys in a style and substance lost since his departure. HTA sends its sympathy to his son James,
vice president of finance for the New Jersey Sports
and Exposition Authority. Contributions may be
made to the St. Thomas Greek Orthodox Home
for the Aged at 615 Mercer Street, Cherry
Hill, NJ. 08002.
SABLE LEAVES FOR CHURCHILL
Sable J. Downs, HTA’s Executive Assistant and
Information Architect for the last five years, has
become the latest in a long procession of executive assistants to move on to higher posts. Sable
has accepted a position as Manager of Customer
Relationship Management Analytics at Churchill
Downs, and leaves HTA this week with our warmest good wishes in her new career. She has administered the HTA Scholarship Fund, compiled
and edited its annual art auction catalogue and the
HTA World Racing Directory, and coordinated
HTA/TRA meeting planning, among many other
duties since joining HTA after being named outstanding senior in the class of 1999 at the Race
Track Industry Program of the University of Arizona.
Joining HTA’s permanent staff are two exceptional
rising young talents and a skilled replacement for
controller Julie Golden.
Assuming Sable’s duties will be Jessica Carner,
former editor of the Bridger Valley Pioneer in
Lyman, Wyoming, city editor of the HumboldtWells Times in her hometown of Wells, Nevada,
and sports editor of the Uinta County Herald in
Evanston, Wyoming, where she covered all sports,
including horse racing at Wyoming Downs. Jessica will serve as HTA’s new Editorial Coordinator. In addition to handling Sable’s editing of all
HTA publications, she will write the weekly Promotions at HTA Tracks and handle association
news releases. An accomplished equestrienne,
Jess has ridden since childhood, started training
with her father when she was 7, and has participated in rodeos and other riding activities since
that time.
Brody Johnson, now in his final semester
at Arizona’s Race Track Industry Program, is joining HTA as Research Analyst.
April 19, 2005
Brody took his first job in racing at 15 and has
served since that time as a chart caller for
Equibase, assistant general manager and racing
secretary at Wyoming Downs, assistant manager
at Wyoming Off-Track Betting, and host of a handicapping show called “Let It Ride.” He has
worked in marketing and promotion and comes
from a family with a rich history of owning, training, breeding and riding. His brother Billy
Peterson was the leading Quarter Horse jockey
in America in 1995 winning nearly $2 million in
purses, and Brody’s family continues breeding
and racing quarter horses and thoroughbreds
across the west.
Also new to HTA’s staff is Libbie Gabriel, who
has taken over for controller Julie Golden. Mrs.
Golden, a 10-year HTA employee, has left because of the growth and increasing demands of
her own accounting firm. Libbie is another graduate of the University of Arizona Race Track Industry Program, receiving her Bachelor of Science degree there in December of 1997 and subsequently working as a simulcast program producer at Monmouth Park and Data Processing
Manager and Project Supervisor for CHRIMS,
the California Horse Racing Information Management Systems in Dublin, California.
A “DREAM” AT NOR
THLANDS
NORTHLANDS
The Edmonton Journal headline read,
“Northlands unveils $150 Million Dream,” as
HTA’s strong member in the far west announced
its plans yesterday to demolish two aging buildings and build a major exposition center as part
of the largest redevelopment in the organization’s
history. “It’s something that we can build our future on,” general manager Ken Knowles said, noting that the organization had a 125-year history
behind it. “With the additional facilities on this
site, we will certainly ensure the future of
Northlands Park.” Construction in the 10year plan gets underway this spring.
April 20, 2005
THE DALEY DIARY
OUELLETTE THERE, OR NEAR
The doings of Noel Daley continue in New Jersey.
The state racing commission yesterday granted
“an extension of time concerning the start date of
his license suspension,” from April 21 to April 27,
running to Oct. 23. While New Jersey granted an
extension, Solvalla Racetrack in Stockholm, Sweden, home of the famed Elitlopp, did not wait
around. It announced that it had withdrawn the
invitation of Mr. Muscleman, trained by Daley and
previously invited to the Elitlopp, given “the turbulence surrounding” Daley, who also faces
charges of possessing hypodermic needles and
unauthorized prescription drugs at his training base
at Magical Acres in New Jersey.
If you live in Canada, where Standardbred Canada
records prevail, Luc Ouellette has become the
fourth driver to guide the winners of more than
$100 million. If you live in the United States, where
USTA rules govern, he still has four million to win
before reaching that milestone. Standardbred
Canada announced Ouellette went over the $100
million mark in winning last night’s fourth race at
Woodbine with Crown Caper, but the USTA records
show him with $95,933,387 as of today. Whether
there or merely close, Luc remains one of the
sport’s great drivers.
In another controversial racing situation, the
not-so-sweet Sweet Catomine mess in California, a suit, that could turn into a class action,
has been filed against Santa Anita, Magna Entertainment, owners Marty and Pam Wygod and
trainer Julio Canani by a bettor who says he lost
money on the filly in the Santa Anita Derby. The
attorney who filed the action said the suit was
filed for one Arthur Mota and “the thousands
that bet on Sweet Catomine in the Santa Anita
Derby without knowledge of the true facts of the
horse’s condition for the race.” Sweet
Catomine, beaten favorite in the race, has been
retired after veterinary “evaluation” and will be
bred.
NEW QUIZ IN WAYNE’S WORLD
U.S. Congressman Ed Whitfield of Kentucky,
chairman of the House of Representatives Subcommittee on Oversight and Investigations and
husband of Connie Whitfield, vice chair of the
Kentucky Horse Racing Authority, has asked
Wayne Gertmenian, president of the Jockeys’
Guild, for information on accounting and
oversight of all Guild funds and documentation on health insurance.
BATAVIA ALMOST READY
At least for VLTs, if not live racing. The track
says it will open its doors for the first time in
two years on May 18, with 580 VLTs ready to
whir. Live harness racing will not return to
Batavia until August 3, and Western OTB, which
owns Batavia, expects it will be operating on a
sound financial basis by then. The track will
race, starting with four nights and then reducing
to three and finally to Fridays and Saturdays,
from August until Nov. 19.
THE FEDS READ ESQUIRE
Guys, and maybe gals too, at the Justice Department apparently read Esquire magazine.
The Department is unhappy over five pages of
ads for offshore online gambling in the April issue of the magazine, and the New York Post says
Esquire “publisher Kevin O’Malley may be getting caught in the crosshairs of a federal investigation into illegal offshore gambling operations.” The ads were supposed to run again in
the June edition, which started printing last Saturday, but there are differing opinions as to
whether they will. One source said Hearst executives may replace the ads with public service
spots, but a Hearst spokeswoman yesterday
said they will run, with $1 million at stake
in the next three issues.
April 21, 2005
SARATOGA REPORT UPBEAT
PEACE SETTLES OVER DERBY
Things may be fuzzy elsewhere in New York State,
but they are crystal clear at HTA member Saratoga
Gaming and Raceway. With a remodeled Fortunes
restaurant -- formerly known as Chariots -- and
an expanded marketing budget, plus the new
changes in revenues from VLTs at its racino,
Saratoga is sailing high on the waves.
Tom and Wayne have kissed and made up at
Churchill Downs, and preparations for the May
7 Kentucky Derby can go forward without concern about a jockeys’ walkout. Churchill announced it had reached an agreement with the
Jockeys’ Guild, through a court approved Joint
Stipulation and Consent Order under which the
Jockeys’ Guild “shall not, directly or indirectly,
through any device, in connection with any effort
to fix, increase, stabilize, or otherwise affect the
level of consideration for jockey services in thoroughbred races, including the level of insurance
for jockeys, enter into, continue, cooperate in,
or carry out any agreement, understanding, plan
or common course of action, either explicit or
implied,” to refuse to ride at any Churchill Downs
tracks, or coerce, encourage, suggest, advise, or
induce any jockey not to provide his services at
Churchill tracks. Churchill still has a suit pending against the Guild, however, concerning walkouts last year at Churchill and its Hoosier Park
operation.
Daily per machine revenue from the 1,324 VLTs
has climbed to $215 in the last two months, and
racino general manager Jamie Hartman is predicting the daily average will reach $225, up from the
first year’s $171. The track’s clubhouse restaurant, charming before, has been revamped, and
under the recently passed and signed law the
track will keep 32% of the first $50 million in
machine revenues, 29% of the second $100 million and 26% of everything over $200 million, plus
8% on the first $100 million for marketing and
promotion. Over $100 million the marketing and
promotion number drops to 5%. The racino currently is drawing approximately 50,000 guests a
week, and Hartman expects that number to rise
with promotions, including boxing in May and a
circus in June.
Elsewhere on the New York scene, Yonkers Raceway general manager Bob Galterio reports a conference call yesterday with Merrill Lynch has
“put things back on track,” and he expects financial arrangements will be completed in four
to five weeks. After that , 10 months of construction will be required to convert the track into a
racino.
In Tioga county, Jeff Gural hopes to open harness operations a year from now, with live harness racing, simulcasts, video lots, a restaurant
and a bar and lounge, under the name Tioga
Downs Racino. He will ask for 54 days
of live racing, from May through early
September. Local approval is pending.
In addition to that no-strike agreement, Churchill
announced it has obtained $1 million accident insurance coverage for jockeys at all of its tracks
except Hollywood Park, where jockeys are covered under workers’ compensation laws.
Churchill plans to pass part of the cost along to
owners, through a $5 a start charge toward the
$25 a mount cost, at least at its Calder Downs
operation. It has not decided how it will handle
the matter at its six other tracks, a spokeswoman
saying, “There’s not going to be a one-size-fitsall approach.” The newly elected president of
the Florida thoroughbred horsemen, Sam Gordon,
said the horsemen’s bookkeeping office, controlled by the horsemen, will not collect money
for Calder. “They’ll have to bill every owner individually for the $5,” he said. “We won’t
help them collect it.”
April 22, 2005
WHAT GIVES IN FLORIDA?
EHRLICH: PREAKNESS MAY GO
The will of the people does not always apply in
Florida, as we all know by now, but disregarding it,
or derailing it, seems to have become a hobby
there. The people of Broward county, not once
but twice, have voted for slots at tracks. The legislators in Tallahassee, however, unable to simply
overturn what voters have voted for, seem determined to deny them by other means. They are
talking about a pari-mutuel tax on slots at tracks
in Broward county of as high as 60%, or at least in
the 50% range, and are blunt about why. The chairman of the Senate Judiciary committee, Dan
Webster, who is expected to ask his committee for
a 50% tax today, said, “I don’t want casinos in the
state. I’ve said that a hundred times.” It apparently makes no difference to Webster, a Republican from Winter Garden, what the people of
Broward county want. He does not think tracks
should have slots at all, and since the people voted
for them he has decided to nullify their vote by
taxing them at a rate that blunts their effect. A
man who strongly disagrees, former state Education Commissioner Jim Horne, points out that,
“There’s a bell curve. You reach an optimum.
When you increase the rate, you can’t generate
the profits to build a first class facility, and fewer
people will come.” But the House, after a hearing of its Fiscal Council this afternoon, could opt
for a tax as high as 60%, at the urging of governor Jeb Bush. And something called Florida Tax
Watch is urging the state to impose a 74% tax
rate, which its “experts” say will produce $770
million for state education, badly needed in
Florida, or twice as much as legislative economists estimate a tax no higher than 35% would
produce. The racing industry, obviously, is of little
concern to anyone in state government except
perhaps Steve Geller and a few other legislators.
The high tax folks hope to either discourage installation of slots or make certain
they don’t fare too well.
He may have lost his battle with the legislature on
slots for Maryland tracks, but Gov. Robert L.
Ehrlich Jr. is not giving up the fight. He spoke to
reporters before giving a speech to the Maryland
Horse Breeders Association last night, and told
them, “The failure to pass slots means, clearly,
the future of the Preakness in Maryland is an open
issue. The state does not own that race.” Magna
Entertainment does, along with Joe DeFrancis, and
while Magna had no early response to Ehrlich’s
warning, its senior vice president of racing, Jim
Gagliano, told the Baltimore Sun, “We’re disappointed with the legislature, and it will be difficult
to confront our competition without electronic gaming, but we’re not for sale.” His response came to
published reports that the company was contemplating sale of Pimlico and Laurel, and that interested buyers who had come forward included Baltimore Orioles owner Peter G. Angelos, who had
started to buy Rosecroft Raceway and then
backed out.
TOUGH NEW RULES AT NYRA
Stung by a milkshaking scandal a few months ago,
the New York Racing Association is putting in place
one of the toughest detention rules in the country.
Quoting NYRA senior vice president Bill Nader,
Daily Racing Form reports that every horse on a
day’s racing program, including also eligibles, will
be required to spend six hours of pre-race detention, with access to the horse restricted to the state
veterinarian except in cases of emergency. The
state vet also will be the one to administer Lasix
to horses running on that medication. The new
requirement will affect horses racing in the
Belmont Stakes, third leg of the Triple Crown, on
June 11.
DUES FORMS NEEDED
If your track has not yet submitted dues
forms to HTA, please do so now.
NEW GIANTS STADIUM ON WAY
Gov. Richard Codey of New Jersey got his way
over the weekend on a deal for the New York Giants to build a new $750 million stadium at the
Meadowlands, when the 15-member board of the
New Jersey Sports and Exposition Authority approved the deal, 11 members voting yes and four - including president and chief executive George
Zoffinger -- abstaining, saying they needed more
information than provided before approving the
idea. Codey, saying the deal is advantageous to
New Jerseyans because the Giants will pay for
the stadium, issued a statement that added, “The
Giants have been a part of the New Jersey experience for the last three decades. With a new stadium now approved, they will continue to be a part
of the fabric of our state for future generations
to come.” Under the deal struck by Codey with
Steve Tisch and John Mara, the Giants will pay
$6.3 million a year for 75 acres of Sports Authority property where they will build a new 80,000seat stadium with their own money, and develop
shops, restaurants and a Giants museum. Technically, the deal will not close until a formal lease
and development agreement is worked out -- expected to take three to six months -- at which
time the Sports Authority board again will take a
vote on the contract. Zoffinger said his opposition “stems from my wife being a social worker
and my seeing the things the state needs to spend
money on rather than football stadiums. We’ve
worked hard over the past three years to accomplish some financial stability and it is going to be
difficult moving forward.”
LIEBMAN HAD IT RIGHT
Last week Bennett Liebman commented, on his
Albany Law School Web site, about the charges
of “actions detrimental to the best interests of racing” against owner Martin Wygod in the
Sweet Catomine events prior to the Santa
Anita Derby. Liebman called the ‘detrimen-
April 25, 2005
tal actions’ rule “typically the last resort of racing
regulators,” and said, “Anytime you resort to this
rule, you are on a very slippery slope.” Over the
weekend the Hollywood Park Board of Stewards
slipped off the slope, and dismissed the California Racing Board’s complaint, deciding “that
all charges against Mr. Wygod are going to be
dismissed in the furtherance of justice.” The
board’s executive director Ingrid Fermin was not
pleased, judging from a release in which she said,
“The California Horse Racing Board has a responsibility to pursue cases where there is probable cause that a violation has occurred. We
are committed to protecting the public interest
and the integrity of horse racing.” Mrs. Fermin
added that she was “surprised, disappointed and,
frankly, concerned that Mr. Wygod was not interviewed personally.” She said that in an effort to improve the process, “I intend to evaluate our investigative procedures from start to
finish. In that way, licensees and the public will
be reassured that cases have been fully investigated and evaluated before any accusations are
filed.”
DALEY ROLLS ON WITH A STAY
The Appellate division of the Superior Court of
New Jersey has stayed the 180-day suspension of
trainer Noel Daley, without setting a date for a
hearing with the Office of Administrative Law. Still
on schedule, unless it also is changed, is a May 4
court date for possession of hypodermic needles
and other charges resulting from a search of his
barn at Magical Acres in Chesterfield, NJ.
ALLRED SAYS NOT INTERESTED
Hollywood Park may be sold or developed, or its
racing moved to Los Alamitos, but in any event Ed
Allred will not be part of the deal. He says he has
“pulled out” of any such development, the second
time big owner Mike Pegram has been left in
the lurch. Pegram also had tried to buy the
Fair Grounds.
April 26, 2005
NO LIGHTS AT MONMOUTH
NO SPEED IN PENNSYLVANIA
At least this year. That’s the word from the New
Jersey Sports and Exposition Authority, which
runs both Monmouth and the Meadowlands, and
which for a time was considering racing them in
competition. James DeBosh, a NJSEA spokesman, said it was his understanding that “we’re
not planning on doing anything about lights at
Monmouth this year, but it may be a subject that
comes up in the future. We’re not saying there
will never be lights there.” Gov. Richard Codey,
before becoming governor, had said he favored
the idea, and a Codey spokesman says the
governor’s office “will be reviewing all our options, looking forward to the input the residents
will provide in June.” That input, to date, has
been concern, on the part of the mayor of
Oceanport, where the track is located, and borough officials who have been seeking an official
confirmation about the status of lights. One resident quoted by Bob Jordan of the Asbury Park
Press said, “We moved into town, and we understood there was a racetrack here. But there is a
big difference to calling a race at 3 o’clock in the
afternoon and calling one at 10 p.m. This is a
residential area. It changes the whole dynamic.”
And that’s not just on the Turnpike or the highways. It permeates the courts and the racing and
gaming commissions as well. The state Supreme
Court heard hearings more than six weeks ago
on a constitutional challenge to the slots-at-tracks
legislation, but no word as yet, so the state Gaming Control Board cannot hire an executive director. The chairman, Tad Decker, says he has
narrowed the search down to two out-of-state candidates, but neither is willing to leave their present
positions while the court issue is pending. The
commission faces thousands of applications for
casino jobs in the next few months, but has hired
only 11 staffers so far, with a goal of having 40 on
board by June. The Pennsylvania Harness Racing Commission, meanwhile, has not decided
which of two candidates will get to build a new
harness track in western Pennsylvania. Both
Centaur Gaming and the Schick family are poised
and ready to start construction, but the decision
still is in limbo.
DEFINITION OF A POWERHOUSE
With yesterday’s completion of the MGM Mirage and Mandalay Resort Group merger, a
world casino giant emerges, with $7 billion in
revenues and 70,000 employees. MGM Mirage now will own 24 hotel-casinos, including
Bellagio, The Mirage, MGM Grand, Treasure
Island, Excalibur, Monte Carlo, Luxor and
Mandalay Bay in Las Vegas alone, giving it
control of a majority of hotel rooms on the Vegas strip and roughly 40% of the slot machines
located there. Terry Lanni, who runs this empire as chairman and CEO, said there
are no immediate plans to sell any of the
Vegas properties and no plans for wholesale layoffs.
WINDSOR HIT WITH $100 G FINE
Troubled Windsor Raceway has been hit with a
$100,000 fine for violation of the Occupational
Health and Safety Act involving serious burns to a
young employee. The incident occurred in December, 2002, when a kitchen employee slipped on hot
oil while changing a deep fryer. The track pleaded
guilty to failing to take proper precautions in the
lifting, carrying, or moving of oil, and the penalty
was levied by an Ontario Court of Justice JP who
also imposed a 25% surcharge provision to assist
victims.
3 MORE DANDY PRESS GUIDES
Big, colorful, handsome, illustrated press guides
clearly are “in.” HTA has received three more
beauties, from the Meadowlands, Prairie Meadows and Hoosier Park. The Prairie photographs,
by track photographer Jack Coady Jr., are
huge, the best we’ve seen.
HT
A TO SELL KITTELSON AR
T
HTA
ART
The Harness Tracks of America College Scholarship Fund has been named worldwide agent
for the woodcarvings of John Kittelson, leading
figure for the last 17 years in the annual HTA
art auction and one of the world’s most renowned
figures in animal woodcarving and classic dioramas.
Kittelson has granted the Scholarship Fund exclusive selling rights, not only of his harness
carvings, but of his infinitely detailed works
on western and African animals, the scaled reproductions of authentic western vehicles, and
the famed Kittelson dioramas in his Cody, Wyoming, museum. The two most spectacular carvings in the collection are the nine-foot long
Budweiser Hitch, with its eight giant Clydesdale horses, and an 8-foot-6-inch masterpiece
of a western stagecoach procession. The
works, including prices, can be seen online at
www.johnkittelsonwoodcarvings.com. They
also are linked thru the HTA Web site,
Kittelson, now nearing the end of his carving
career, is an authentic American cowboy. He
ran away from home at 13, joined cattle drives,
roped calves, participated in rodeos, broke
broncos, and became a saddlemaker.
Along the way he mastered woodcarving, first
specializing in wild animals of the American
west, including mountain lions, bobcats, grizzly
bears and bison. Carved mostly in basswood,
his animals found buyers from South America
to the Orient, and a number of American collectors who began assembling collections of his
work. His dioramas of western scenes are
populated with people, dogs, horses,
cattle and vehicles.
In 1988, after seeing what appeared to
April 27, 2005
be a photograph of the Budweiser hitch and
finding it was in fact a Kittelson woodcarving,
HTA executive vice president Stan Bergstein
contacted Kittelson and asked if he would consider doing some pieces for the HTA art auction. There was no response for six months,
and then six completed pieces arrived, which
sold for $28,000 at that year’s auction. The
sale turned out to be fortunate for both HTA
and Kittelson, for he was seriously injured in
early spring that year in a rodeo accident in
which he almost lost his foot after being thrown
from a racing wagon, and was unable to carve
for the rest of the year.
He has contributed pieces to every HTA art auction since, most of them winding up as sales toppers. What may be his final harness racing works
will be sold at Tattersalls this fall at the annual
HTA auction.
JACOBS MA
Y WANT VERNON
MAY
Jacobs Entertainment of Colorado, a division of
Jacobs Entertainment that sold the Cleveland
Indians and owns Colonial Downs, apparently is
interested in buying Vernon Downs. Although
the lawyer for Shawn Scott, majority owner of
Vernon, says the Jacobs Colorado deal would
be better for shareholders than that offered by
New York real estate magnate Jeff Gural, the
Syracuse Post-Standard says Jacobs Entertainment of Colorado is deeply in debt, quoting federal documents that say its “significant amount
of indebtedness” could hamper its operations
and potential growth. In Maine, meanwhile,
where Scott got slots introduced at Bangor
Raceway and then sold the track to Penn National, a legislative panel is reviewing a proposal
to allow the Passamaquoddy tribe to build a harness track which would include a 3,000-slot
racino “Down East,” in Calais in Maine’s
Washington county.
SLOTS DIMMING IN FLORIDA
With time running out, the president of the Florida
Senate said yesterday he doubts the legislature
will pass bills that would allow slot machines in
Broward county this year, this despite the fact
that residents of Broward have twice voted that
they favored them. Senate president Tom Lee
told the Sun-Sentinel that he thought slots legislation “is less than a 50-50 chance right now.”
The danger of this situation became apparent
last November, when in the euphoria of a successful vote on the issue supporters lost sight
of the fact that it was up to the legislature to
agree on rules and regulations. With the House
and Senate furlongs apart on a tax rate, and less
than two weeks left in the session, Lee said he
could see “nothing happening until there is a new
governor.” He said, “It’s so much easier to kill
a bill in this town (Tallahassee) than to pass one.”
If Lee proves right, the four Broward county
tracks have little option but to go to court. Governor Jeb Bush said yesterday that an agreement was still possible, but according to the SunSentinel “he gave little indication he was willing to change his position to make it happen.”
Pompano Park, meanwhile, called on its patrons
and supporters to make their views known, loud
and clear, to the legislature.
“HAVE A CUP OF COFFEE”
After the Supreme Court ruled recently that too
many years had passed for the Oneida Indians
to claim their reacquired former reservation
lands were again sovereign and tax-exempt, the
town of Verona, where the Oneidas own the
Turning Stone Casino, had the casino and six
other properties owned by the Oneida Nation
appraised. The total appraisal came in at $384
million, and the town supervisor hand delivered
it to the Oneidas yesterday. He said
they didn’t indicate whether they would
pay taxes, but offered him a cup of coffee.
April 28, 2005
HOOSIER GETS TEN STARS
Hoosier Park’s $200,000 Dan Patch this Saturday
night has attracted an exceptional 10-horse field
to HTA’s member in Anderson, Indiana. Although
the morning line maker has installed He Wants It
All as favorite, the field includes Canyon Wind,
coming off three straight wins at the Meadowlands
with David Miller; Maltese Artist, with red hot
Ron Pierce driving; Toronto’s popular 9-year old
“Gray Gladiator,” Admiral’s Express;
Whosurboy; Escape the Wind; Eaton Road Kill;
Casimir Commotion; Life Source and Johnny Be
Cool N. Top field, major attraction.
PEOPLE ON THE MOVE
John G. Cansdale, a Saratoga Springs attorney
who has served previously as director of industry
development with Empire State Development, general counsel to the Olympic Regional Development Authority in Lake Placid, and a negotiator
for other international events, succeeds Ed Martin as executive director of the New York State
Racing and Wagering Board. Martin now is president and CEO of the Association of Racing Commissioners International.......Timothy (Ted)
Connors, chairman of the New Hampshire Racing
Commission and the longest-serving racing commissioner in the country, having first been appointed in 1968, is the new chairman of the commissioners’ organization....... Steve Molnar has
been named Executive Vice President-Strategic
Markets, and Bruce Benedict has been named
Executive Vice President-International Sales, at
United Tote.......Lisa Narotsky, the softball pitching demon daughter of Illinois racing secretary
Eliot (Doc) Narotsky, has won five games -- two of
them complete game shutouts -- at Hinsdale South
high school. Her ERA is 0.42.
JOB OPEN AT ROSECROFT
Rosecroft Raceway is looking for an experienced
Assistant Track Superintendent. Call 877818-9467 for information.
April 29, 2005
NYRA ANNOUNCES DETENTION
BREEDERS’ CUP TO ESPN
The New York Racing Association, in a move to
tighten security, has announced that all horses at
its three tracks -- Belmont Park, Saratoga Race
Course and Aqueduct -- will race out of a six-hour
detention barn starting with the opening of the
Belmont Park meeting May 4. At Belmont, 93
stalls in barns 8 and 23 will be used as a secure
environment, and once horses enter only the
trainer and stable employees -- but no private veterinarians -- will be allowed in the barns. NYRA
vets will administer Salix, pending approval by
the State Board of Veterinary Medical Examiners. Charles E. Hayward, NYRA president and
CEO, said of the new program, “While we appreciate that this will create some short-term inconvenience for trainers, the overwhelming response
has been incredibly supportive as we work
collaboratively to further strengthen the credibility of New York’s racing program.” Trainer
Donald Donk, a strong supporter of the idea, said,
“I am pleased that NYRA is stepping up to the
plate and taking on this initiative. Obviously, I
am for it because this is the future of racing.
Eventually, I think the future is a 24-hour security barn with a camera in every stall. This is for
the betterment of racing and a great day for both
the $2 bettor and the serious gambler.”
First it was NFL football. Now it is the Breeders’
Cup, giving up network coverage of its World Thoroughbred Championships on NBC and switching
to ESPN in 2006. Under the new multi-media
agreement, ESPN and ABC Sports will air five twohour telecasts from June thru October, and ESPN
will provide a live, 7-hour program from noon to 7
p.m. -- two hours longer than the current telecast
of the event -- starting next year. D.G. Van Clief
Jr., president of Breeders’ Cup and NTRA commissioner, called the new arrangement “an extraordinary multi-media agreement highlighted by
unprecedented television coverage for the Breeders’ Cup and Thoroughbred racing for the next
eight years.”
CHURCHILL ON A ROLL
Churchill Downs, basking in rave reviews to the
completion of its $121 million renovation that
includes six completely new floors in the clubhouse, got another boost this morning when
president and CEO Thomas H. Meeker ceremoniously opened the NASDAQ Stock Market in
New York City, celebrating Churchill’s 12th anniversary of trading on the stock market. In
another Churchill development, the track restored signals to several unidentified
offtrack rebate locations that had been
cut off, after the sites provided new information.
FAST START FOR KITTELSON
The HTA College Scholarship Fund, which opened
a new Web site on the woodcarvings of John
Kittelson just two days ago, sold five of Kittelson’s
works for $7,950 on the second day. Kittelson has
granted the HTA Fund worldwide selling rights to
his collection of African and western American
animals, vehicles, and dioramas.
THE END AT ATLANTIC CITY?
The Trentonian of Trenton, NJ, reports today that
officials of Greenwood Racing, which owns Atlantic City Racecourse, is close to selling the
track and its 254-acre site to the Nebraska-based
sporting goods retailer Cabela’s. The Press of
Atlantic City, however, says the track is only one
of several possibilities being considered by
Cabela’s, which plans a 200,000-square-foot
superstore on whatever land it buys. The company says it could invest as much as $40 million
in construction, with employment of as many as
700 people. Cabela’s, a 40-year-old company, is
the nation’s largest direct marketer and retailer
of hunting, fishing and camping equipment.
The track is 39 years old.
THE HARD WAY TO COVERAGE
It is nice, of course, to have horse racing on the
front page of the New York Times, with a picture,
and a huge jump inside. This morning’s Times had
just that, Joe Drape’s feature, five days before
horse racing’s biggest weekend, under the headline “At the Derby, Racing is Facing Its Drug Problem.” Acknowledging that the industry is facing
its problem probably has to be considered a positive story, but it’s a hard way to get coverage. It
is, however, an opportunity for horse racing, regardless of breed, because if the industry does not
strike now, while the iron is hot, and charge full
speed ahead with the work of the Racing Medication and Testing Consortium, it is losing a golden
opportunity. The idea for a per start, per horse
assessment to fund research on drugs and attain
uniform drug testing rules and procedures has
been languishing, and the sport should take advantage of the current recognition and publicity of
the milkshake mess to get moving with it. There
has been enough committee discussion leading
nowhere, and now is the time for action, not talk.
It is not likely that there will be any better time
soon, for horsemen and regulators alike have the
problem clearly in front of them with articles like
today’s big Times spread.
LATE AFTERNOON IN FLORIDA
The sun hasn’t quite set on slots legislation in
Florida, but it is late in the day, and the president of the Florida Senate, Tom Lee, is quoted
as saying, “the slot machine bill has a very unlikely chance of passing. I see an end game, I
just don’t see a very pretty one.” Lee told the
Miami Herald. “I think the chambers are too
far apart, and there’s some deeply held philosophical beliefs that I think are going to make
it difficult to move this legislation unless someone really blinks.” As of press time,
there was no sign of blinking.
Putting aside that Broward county voters
May 2, 2005
twice have expressed a wish for slots, as the
legislators have, they are deadlocked over
whether to allow bingo style machines already
in use at the state’s Indian casinos, or Las Vegas style slots, which the Indians want if the
tracks get them; over how many machines at
each track, the House opting for a 3,000 limit,
the Senate setting none; over taxes, the House
wanting a 55% tax, the Senate 30 to 35%; and
over where the tax would go, the House wanting it for buying computers and other school
needs, the Senate wanting it spent exclusively
on building new schools. With slot hopes dimming and Florida runners prominent in the
Derby picture, Richard Hancock, executive
vice president of the Florida Thoroughbred
Breeders and Owners Association, mused,
“Wouldn’t that be ironic? We win the Derby
and lose the thoroughbred industry.”
NOW ITS LEWIS AND PEGRAM
Ed Allred, owner of Los Alamitos, may have decided he’s too old to mess with buying Hollywood Park, but McDonald’s tycoon and horse
owner Mike Pegram -- who was going to be
Allred’s partner -- has found a new one. He and
major owner Bob Lewis, who made his money in
the beer business, have formed a partnership
and will try to race thoroughbreds at Los
Alamitos if Churchill Downs decides to sell or
develop Hollywood Park. Pegram and Lewis are
talking about leasing Los Al for seven years,
with an option to buy, and adding runners to the
quarter horse menu at the Orange county track.
Lewis said it would cost more than $40 million
to convert the plant to thoroughbred racing, but
called the potential in heavily populated and
prosperous Orange county “limitless.” He said
it would take industry cooperation, but said “everybody realizes that Southern California needs
a shot in the arm and this could be the opportunity to give it that.”
May 3, 2005
TOTAL VICTORY IN NEW YORK
A NEW DAY: DUTROW GETS 120
The Court of Appeals, New York’s highest court,
ruled 5-2 yesterday that VLTs and Indian-owned
casinos are legal and constitutional. The total victory was hailed by all in racing, and by Senate
Majority Leader Joe Bruno, who said, “They got
it right.” The decision overturned that of the Appellate Division, which had ruled last year that the
VLT law violated the New York constitution’s provision that all net proceeds from VLTs should go
to education. Judge Carmen Beauchamp Ciparick,
writing for the majority of the Court of Appeals,
wrote, “These moneys are not a separate deduction, beyond other costs and expenses, from the
amount paid to the racetracks as a vendor’s fee.
Rather, they constitute simply a part of the vendor fee itself -- but a part whose use the state has
decided to regulate.” The decision should eliminate the last obstacles to construction of major
racinos at Yonkers Raceway and Aqueduct, and
increase chances of Vernon Downs being acquired
and reopening. Even Cornelius Murray, the Albany lawyer who has been the prime antagonist in
attempting to overturn the VLT legislation,
acknowleged defeat on that issue. “This is probably the end of the line on VLT and Mega Millions issues,” he told the Associated Press. He
did say, however, that he was considering an appeal to the U.S. Supreme Court on the Indian casino portion of the decision, since they are authorized by federal law. The full New York decision
can be seen on HTA’s Web site home page,
With the awareness of illegal medication problems
in racing spreading, regulators are becoming more
stringent in their use of their power. The latest
example is well-known thoroughbred trainer Dick
Dutrow Jr., who was suspended for 120 days and
fined $5,000 after dropping his appeals on three
charges against him, two for medication violations
and one for an illegal claim. The illegal claim involved owner Sandy Goldfarb, who also owns harness horses. Sixty days of Dutrow’s suspension
will be stayed and discharged if he does not commit any significant violation of board rules, which
would seem difficult if he is not racing horses.
New York Racing and Wagering Board spokesperson Stacy Clifford said of the suspension, “The
board continues to take a firm stance against inappropriate use of equine drugs and believes
strongly about holding people accountable for
their violations.” Well, yes, but if you say 120,
you might mean it. Three violations would seem
enough.
HOPE SPRINGS ETERNAL, ETC.
The Oneida Indian Nation must be one of the most
optimistic groups in America. Although the U.S.
Supreme Court voted 8-1, in a decision on a local
matter that had national implications, the
Oneidas say they will ask the high court
to re-hear the case. Legal experts say
such reconsideration is rare.
NUMBERS PLEASE IN NJ
It took a long while to get connected, but telephone account betting finally got underway in
New Jersey today. Meadowlands senior VP
Dennis O. Dowd said, “Technically, everything
is running smoothly. We’ve already exceeded
3,000 accounts, and we’re projecting handle of
more than $35 million for 2005, which is 20%
beyond our expectations.” Betting is not limited to New Jersey races, but includes all incoming simulcast signals offered by New
Jersey’s three tracks, so the program is ready
for Kentucky Derby weekend, as Dowd had
promised.
JENNA’S CHOICE INJURED
Jenna’s Choice, winner of all three finals leading
up to Saturday’s $225,480 Berry’s Creek at the
Meadowlands, broke a rear pastern in last
week’s prep victory and is out for the year.
NO TICKEE, NO LAUNDRY
That was one of the earliest business slogans the
editor remembers as a kid, and it is the same message that Magna Entertainment sent to Maryland
yesterday. Jim McAlpine, now vice chairman for
corporate development of Magna, let Maryland
know that without slots there is little likelihood of
any further improvements at Laurel and Pimlico.
“We’re weighing very carefully what’s happened in Maryland, and we could, frankly, stop
investing any significant sums at this stage
because we’ve done the most important piece,
which was to get the racing assets of Laurel
fixed up,” McAlpine said in a conference call
discussing Magna’s first quarter results, which
showed a $4.1 million loss. McAlpine said
Magna hopes to build a racino at The Meadows, and in discussing plans he said -- without
mentioning Pimlico or Laurel -- that options for
raising cash included the sale of real estate and
other assets. The Baltimore Sun reported that
one member of the Maryland Racing Commission, Terry Saxon, has said he is part of a group
looking into the feasibility of making an offer
to buy the two tracks. Saxon was quoted as
saying that his group wants to look at the financial data and “perhaps a few weeks after
the Preakness, make an offer.” Magna executive Jim Gagliano said the company has spent
some $38 million since buying controlling interest in the Maryland Jockey Club in 2002,
$20 million of that spent rebuilding the dirt and
turf tracks at Laurel, and the rest spent on improvements at Pimlico including dining room
upgrades, landscaping and a brick column perimeter fence. The Magna announcement yesterday came as no surprise to Gov. Robert
Ehrlich Jr. A spokeswoman said, “It’s saddening news, but not surprising, as this is the result of inaction. The governor has for
years warned of dire consequences and
ramifications of not passing a slots bill,
May 4, 2005
and today those warnings came to fruition.”
One anti-slots legislator, Baltimore Democrat
Curtis S. Anderson, called the Magna announcement an “empty threat.” He may think Magna is
bluffing, but we don’t, and it’s that kind of legislative thinking that has brought racing in a state that
once prided itself of a great racing tradition to the
sad state in which it now finds itself.
PENNSYLVANIA THINKS BIG
While Gov. Ehrlich faces the diminution of the racing industry in his state, Gov. Ed Rendell in neighboring Pennsylvania is talking very big dollars. He
predicts that when slots are fully operational in
the Keystone state, they will produce $1 billion a
year for the commonwealth. His projections, however, are being challenged by academics and others, who point out that no state -- Nevada included
-- reaps that large a bounty on slots. While Nevada casinos made $10.6 billion last year, the state
collected $887 million, and that was the highest
anywhere. Illinois picked up $802 million on $1.7
billion of wagering, by taxing its casinos as high as
70%. There may be skepticism, but it certainly is
not evident in Gov. Rendell’s office. His press
secretary, Kate Phillips, says “We are confident
that we’ll not only reach $1 billion, but that we could
reach more than that.”
JUNE START FOR YONKERS?
With the legal obstacles now cleared away, Yonkers Raceway is finalizing its financing and expects to close on its loans next month, and possibly even start on construction before June is over.
General manager Bob Galterio says racing will be
suspended for five months for construction, and
another five months will be required to complete
construction of the $175 million Empire City racino
at the track. The plan includes 5,500 VLTs, new
restaurants and entertainment facilities. One remaining hurdle is how much the city of Yonkers will get.
May 5, 2005
NO DOUBT AT THE ISLE
NEW MAINE TRACK ON COURSE
There may still be doubt in the Florida legislature
as to the form slots in Broward county will take
when the session closes tomorrow night, but there
is no uncertainty at HTA member Pompano Park.
The track announced today that it will start construction within two weeks on a 157,000 squarefoot building that will hold as many as 2,000 slots,
and a Pompano Beach city building official confirmed that approval of the permit to build it is
near. Approval for the site plan of the $1.6 million Phase I of the project was approved by the
Pompano Beach Planning and Zoning Board last
week. Pompano general manager Dick Feinberg
said the new racino “is going to be gorgeous.”
A legislative committee in Maine yesterday overwhelmingly backed a plan for a new harness track
and racino “Down East” in the state’s Washington county. The Legal and Veterans Affairs committee voted 9-1 to support the Passamaquoddy
Indians’ plan. The bill still faces votes in the House
and Senate, and strong opposition from Maine’s
Casino No! anti-gambling group. Gov. John
Baldacci, who opposes an expansion of gambling,
would not say whether he would veto the bill if it
were to pass. As approved, the Passamaquoddies
would operate the track and share their slot revenues with Maine’s three other tribes.
CAL BOARD BILL APPROVED
On the opposite coast, the California
Assembly’s Committee on Governmental Organization approved, after what the San Diego
Union-Tribune called “heated debate and noisy
opposition,” a bill that would restrict horse
ownership by members of the California Horse
Racing Board. The committee approved, on
an 8-5 vote on strict party lines -- Democrats
for and Republicans against -- a bill that would
provide that no more than four of the board’s
seven members could have any financial stake
in horse racing. There is no current limit, and
five members of the board presently own horses.
Neither side was happy with the result of the
vote, and both agreed to continue negotiating
the content of the bill before it is sent to the
Assembly floor for an up or down vote. The
committee’s chairman, Jerome Horton of
Inglewood, said after the vote, “What a monster.” Speaking of monsters, no word from The
Terminator yet on where he might stand on the
proposal, which might have been inspired as a
payback for remarks by commissioner
and horse owner Richard Shapiro about
the Jockeys’ Guild.
THE SLOW WHEELS OF JUSTICE
Trainer Noel Daley got another extension of
his pre-trial hearing on medication violations
in New Jersey yesterday, when the prosecution
asked for a postponement because a laboratory has not completed its analysis of items
found in Daley’s barn following a search March
2. Prosecutor Mark Tarantino said it could be
another month before the tests were completed.
In North Dakota, three months after a jury convicted Racing Services and it owner, Susan
Bala, the government still has done nothing
about the promised guilty plea of Gary Storm,
the former CFO of the company. An assistant
U.S. attorney, asked why by Fargo’s Inforum
News, said he was “not at liberty to say why
the guilty plea hasn’t been filed at this time for
a number of reasons.” Ms. Bala, meanwhile,
has had her sentencing postponed until July 14
to allow for more pre-sentence investigation,
but the federal judge in the trial denied her
motion for acquittal. Her former partner in
Racing Services, Raymundo Diaz Jr., pled
guilty to three felony counts in return for a
lighter sentence, and is to be sentenced
May 20.
May 6, 2005
THE AMBIVALENT MAYOR
SCIOTO, BILLINGS OPEN TONITE
Martin O’Malley, the mayor of Baltimore, lashed
out Wednesday of this week at the governor of
Maryland’s leadership on juvenile justice issues.
A day later, he lauded Gov. Robert L. Ehrlich Jr.’s
failed efforts to get slots at tracks. Speaking at
an event promoting the May 21 Preakness,
O’Malley said critics had questioned the morality of Ehrlich’s position on slots, but he asked,
“Where’s the morality of doing away with 18,000
racing jobs? The Preakness is Baltimore’s version of the Super Bowl. We need to rise above
partisan politics.” O’Malley is expected to run
for governor next year, and you might think the
governor would have asked, “Where were you
when I needed you?” Ehrich’s response, or at
least that of his spokeswoman Shareese N.
DeLeaver, was far more original. “The mayor
has flip-flopped on this issue, expressing quasiopposition and quasi-support for months, if not
years,” she said. “If Mayor O’Malley truly is a
proponent of slots, then he needs to be a workhorse, not a show pony.”
Scioto Downs opens for its 46th racing season tonight, with a pre-race concert and a meeting that
will run through Sept. 24. Among features planned
for the meeting is a one dollar Pick 7 on races three
thru nine, an innovation for Scioto.
THE AMBITIOUS GOVERNOR
The governor of New Jersey, Richard Codey, is a
racing man from way back. So, using a spokeswoman, as did Gov. Ehrlich, he was quick to take
the offensive yesterday after New York’s Court
of Appeals upheld VLTs there. Kelley Heck of
Codey’s staff said the New York decision made
it “imperative” for the state to take action and
permit 5,000 slots at the Meadowlands. Codey
believes that some $550 million could be raised
if the slots were installed, and state senator Paul
Sarlo, whose district includes the Meadowlands,
has introduced a bill to permit VLTs at the track.
Sarlo hope to get support for the plan when budget negotiations begin next month, but he and
the governor will be facing the Beach
Boys, the casino crowd from Atlantic
City, who bitterly oppose the idea.
At Pompano Park in Florida, one of harness
racing’s great strengths -- amateur driving -- will
be featured as the C.K.G. Billings Amateur Driving Series gets underway. The series, open to all
amateur drivers 18 or older, will continue for seven
months at 49 racetracks in the U.S. and Canada,
culminating with a $45,000 Gold Cup final at the
Meadowlands Nov. 25.
Pompano publicist Steve Wolf captured the spirit
of the series eloquently in the lead of his release
on tonight’s opening. It reads, “What do an embroiderer, two business executives, a doctor, a
car detailer, a salesman, a real estate investor, a
maintenance supervisor, a food distributor and a
venture capitalist all have in common?” These
are the true professions of the ten harness racing drivers who will be competing tonight at Pompano Park in the opening round of the 24th season of the C.K.G. Billings Amateur Driver Trotting Series.” All drivers in the series must not
have taken compensation for driving for the past
10 years, and all donate their 5% driving commission to the Harness Racing Museum and Hall
of Fame in Goshen, NY.
Former Denver Bronco wide receiver Tony
Kimbrough, now driving harness horses professionally, won his first race at Hoosier Park
Wednesday night. Kimbrough drove the pacer
Bark Bark -- his first pari-mutuel horse -- to a
1:54.4 victory. Hoosier, incidentally, had the highest handle in its harness racing history last Saturday, when $1,736,485 was wagered on the 15race card featuring the $200,000 Dan Patch
Pace.
May 9, 2005
HUGE NUMBERS AT DERBY
“AN INSULT TO THE VOTERS”
Whatever other troubles horse racing may have,
the Kentucky Derby is not one of them. Its numbers Saturday were staggering: 156,435 people,
a $102.60 winner, and the biggest handle ever in
North America for a single racing program. That
total came in at $155,133,631, and was up almost
9% from the previous record set just last year. Of
that total, $133,016,465, or 85.7%, was bet offtrack, not too far off the national average.
Churchill bet $22,117,166 on the 12 race card, up
almost 15% from last year. Betting on the Derby
itself from all sources was $103,325,510. Here is
a breakdown of the numbers.
That was how Dan Atkins of Hollywood Greyhound Track characterized the Florida
legislature’s shilly-shallying on promulgating
rules for slots at Broward county’s four tracks.
Voters in Broward twice expressed their desire
to have slots there, but the legislature, which
accomplished little of Gov. Jeb Bush’s agenda,
did heed his expressed opposition to gambling
and let the matter die without a vote in the
House after the Senate passed a bill with a 35%
to 55% sliding scale tax on slots. State senator
Steve Geller, who led the fight for slots at tracks,
said, “At the end of the day, the governor was
the heavyweight in the slot debate. The House
has a history of following the governor’s lead on
issues, and the governor was very outspoken
about slots”. The people were too, but their
governor wasn’t interested in what they were
saying. The tracks have not made a decision on
whether they will go to court seeking relief.
Attendance this year, 156,435, last year 140,054,
up 11.7%.
On-track betting on the Derby, $10,055,508, last
year $9,488,539, up 6%.
On-track betting on the entire card, $22,117,166,
last year $19,246,210, up 14.9%.
Off-track betting on the Derby, $93,270, 002, last
year $89,875,549 this year, up 3.8%.
Off-track betting on the entire card, $133,016,465,
last year $123,602,079, up 7.6%.
Total all-source betting on the Derby,
$103,325,510, last year $99,364,088, up 4%.
Total all-source betting in the entire card,
$155,133,631, last year $142,848,289, up 8.6%.
In addition to those numbers, 111,243 showed up
last Friday for the Kentucky Oaks, breaking the
old record of 106,156 set in 2000. On- track betting rose 9.4%, but all-source betting declined slightly, down 1.3% from all -source
betting on the Oaks card last year.
NO NUKES, SEATRAIN DIE
Two big names in the harness racing equine world
have died. No Nukes, one of a few stallions of
any breed to sire winners of over $100 million,
died yesterday afternoon at Hanover Shoe
Farms in Pennsylvania. His sons and daughters
have won $123.2 million, ranking him third
among all standardbred stallions behind Albatross and Abercrombie. He was 26.
Seatrain, winner of the 1975 Little Brown Jug,
died Saturday night at his retirement home at
the Rockin T Equine Rescue in Maine. He became the first gelding ever to win the Jug, and
was 33.
LAKES REGION SURRENDERS
The owners of Lakes Region Greyhound Park in
New Hampshire, caught up in illegal gambling
charges in January, have surrendered their
license.
May 10, 2005
REGULATORS: FRIEND OR FOE
WHAT FEATURES CAN DO
New York Times columnist Thomas L. Friedman,
in his latest book “The World Is Flat,” makes the
point repeatedly that technology and the
Internet have changed the world, that boundaries
no longer exist with meaning, and that those who
do not learn this lesson will fall irretrievably behind. Racing and its regulators are not exempt.
Regular visitors to this site know the editor’s passion for solid features and what they can accomplish in coverage, and Saturday’s Kentucky
Derby and its bizarre payoffs provided the best
possible examples. Here are a few:
It is imperative that the people who control racing, whether state racing commissions in the
United States or federal regulators in Canada,
come to realize that this is not their fathers’ or
grandfathers’ pari-mutuel world. A case in point
is the current controversy in Canada, where Canadian tracks, hoping to start common pool betting with Hawthorne and Balmoral and Maywood
in the Chicago area, have received approval
from the Illinois Racing Board but have been
rebuffed by the Canadian Pari-Mutuel Agency,
which regulates pari-mutuel wagering in Canada.
Steve Mitchell, Woodbine Entertainment’s senior VP and CFO, alluding to the CPMA’s mandate “to protect the wagering public against
fraudulent practices, thereby helping to maintain a viable racing industry,” says CPMA must
be accountable to the Canadian public. He says
CPMA should “get on with U.S. common pools
using the principle of ‘host tracks rules apply’
or tell the public what fraudulent activity they
need protection from.” Woodbine has taken out
full page ads in Daily Racing Form inviting its
customers to call, fax and e-mail government
officials urging them to give Canadians access
to U.S. pools, and has invited the CPMA to a
‘town hall’ meeting to listen to Woodbine’s customers firsthand. CPMA’s ambiguity is confusing. It allows commission vets to administer
anti-bleeding medication in detention barns without notifying the public which horses are
treated, but it won’t allow common pool
wagering. Who’s protecting whom from
what?
The hard-to-believe story of one of the seven winning $1 tickets on the Derby superfecta, worth
$864,253.50, being lost by a bettor and then found
by a mutuel clerk at Turf Paradise. After the bettor and track employees sifted through all of the
garbage bags in the clubhouse, naturally with no
luck, a mutuel clerk named Brenda Reagan, informed that her machine had produced a
superfecta winner, said she noticed two tickets
lying next to her machine. One was the winner.
The huge coverage in New York and New Jersey
on the two friends handicapping in the Meadowlands parking lot who tossed out the “figs” and
picked by names and hunches, and came up with
one of the $864,254 winners. Meadowlands PR
director Carol Hodes, off on Monday, left word
for the mutuel department to notify her if the winners showed up. They did, and Carol interviewed
them by phone, wrote a release, and the story
exploded all over the place.
Betting volume. It broke records all over the
place, and a good example was HTA associate
Capital OTB in Schenectady, NY, which received
one of its biggest positive stories ever in the Albany Times Union with the its $3 million day, biggest one-day handle in its 33-year history.
And then there was Kentucky. With all of the
grievous problems facing racing, the Kentucky
Racing Authority got coverage by postrace worrying about advertising on jockeys’ pants. If that’s
such an overriding issue (no pun intended) it
seems that it could have been checked out prerace, and offenders ordered to change their
britches, saving the bruhaha.
May 11, 2005
THE COUNTY RISETH UP
FOUR WIN, SIX LOSE IN IOWA
Broward county, Florida, is home to four parimutuel facilities: HTA member Pompano Park;
Gulfstream Park; the Hollywood Greyhound
Track; and Dania Jai Alai. The citizens of
Broward have voted -- twice --that they approve
of those tracks having slot machines. The legislature, ignoring their wishes, disagreed. Now
Broward county commissioners, feeling the legislature abdicated its responsibility to make rules
and regulations for installation and regulation of
slots, is exploring the possibility of seizing the
initiative and doing it on their own. The commissioners asked their attorney yesterday to research their authority to oversee industry slots,
and will consider next week whether to begin
drafting restrictions covering slot payouts, number of slots and hours of operation of the machines. The commissioners expressed concern
that if the tracks and fronton sue the state and a
judge rules in their favor, there could be unregulated gambling. The commissioner who made the
motion, Irene Lieberman, said, “If they (the
tracks) are successful in a lawsuit because the
state did nothing, there will need to be regulations. I don’t want to see it operate unregulated.”
The South Florida Sun-Sentinel’s Scott Wyman
wrote, “While a court could authorize the parimutuels to offer slots, election law experts doubt
whether judges have the authority to spell out
taxes or regulations.” When the tracks and
Broward county met earlier this year to deal with
extra costs of law enforcement and government
services should the racinos be approved, the
tracks agreed to allow the county to regulate slots
if the state did not do so. They still hold to that
position, their lobbyist Ron Book saying, “We’ve
always said we are for responsible regulation.”
The Seminole tribe, which has a stake in all of
this, says it will wait to see what happens
between the pari-mutuel industry and the
state before it makes any moves.
The Iowa Racing Commission met this morning
after months of deliberation and settled the issue of winners and losers on 10 applications for
new riverboat casinos in the state. The four winners were Wild Rose Emmetsburg/Palo Alto
County Gaming Development in Emmetsburg;
Diamond Jo Worth/Worth County Development
Authority in Worth county; IOC Black Hawk
County/Black Hawk County Gaming Association
in Waterloo; and Washington County Casino
Resort/Washington County Riverboat Foundation in Riverside.
Losers were six groups that had hoped to have
gambling boats in Fort Dodge; a second group
looking for a license in Emmetsburg; one in
Franklin county; two other groups in Waterloo;
and one in Ottumwa.
OPEN LETTER FROM WOODBINE
In an open letter to its customers, Woodbine Entertainment outlined its grievances with the Canadian Pari-Mutuel Agency that regulates parimutuel in Canada. The two have been negotiating for six months for approval of common pool
wagering with U.S. tracks, Woodbine seeking the
U.S. formula that “host track rules apply.”
CPMA refuses to accept that position, insisting
that U.S. tracks must remove all teller cancel
delays across their networks before letting Canadians wager into those pools. The CPMA also
wants Canadian tracks and teletheaters to provide up-to-date wagering rules for every common pool jurisdiction for all customers to access
on an immediate basis, and insists U.S. host
tracks advise Canadian tracks, who in turn must
advise their customers, of any change in wagering rules before implementing them. Woodbine
is asking its customers to sign petitions saying they are prepared to accept the “host
track rules apply” idea.
May 12, 2005
WILLMOT, FIRLOTTE TO HALL
POSITIVE DERBY FALLOUT
David Willmot, chairman and CEO of Woodbine
Entertainment and a former president and chairman of HTA, has been named to the Canadian
Horse Racing Hall of Fame, along with veteran
trainer Stew Firlotte. Willmot, a respected leader
in both thoroughbred and harness racing in North
America, has had a huge impact on racing with his
innovative and progressive ideas and his pioneering enterprise in turning Woodbine in Toronto into
one of the premier racetracks and racinos on the
continent. He and his father D. G. Willmot built
their Kinghaven farms into one of Canada’s leading thoroughbred breeding and racing operations,
and David currently owns one of harness racing’s
top pacing fillies, Cabrini Hanover, and also raced
the champion trotting filly Southwind Allaire with
his partner Bob Anderson.
The huge payoffs on last Saturday’s Kentucky
Derby produced positive aftershocks in a number
of harness racing locations. The Meadowlands’
exceptional metropolitan coverage was outlined
yesterday, and nearby Freehold Raceway reported
a spectacularly successful press conference on a
trio of partners who bought one of the seven national winning $864,253 superfecta tickets at the
track last Saturday. Publicity director Don Bielak
called the turnout “huge,” especially in broadcast
coverage, where CBS New York, Fox 5 New York,
News 12 New Jersey and ABC in Philadelphia all
sent TV crews to cover the winners, Mark Madden and his daughter Lisa from Morganville, NJ,
and Lisa’s boyfriend Alex Corrado of Hoboken.
The three gave their handicapping secrets free:
Corrado used Afleet Alex because it was his namesake; he simply liked the sound of Giacomo;
Madden liked Don’t Get Mad because it was part
of his name; Lisa said she just kept hearing a
race call in her head that said, over and over, “And
here comes Closing Argument.” Now you know
how to pick an $864,253 winning ticket.
Stew Firlotte began his racing career as a groom
35 years ago. He opened his own public stable
six years later, in 1976, and over the years has
developed such standardbred standouts as Town
Pro, Historic, His Mattjesty, Brees Brief, Strong
Clan and Rare Review. Also named to the hall
are the outstanding trotting stallion Garland Lobell,
sire of the winners of more than $46 million with
average earnings of $75,770; the trotter Glorys
Comet, first $2 million winner in Canadian harness
racing; and the pacing star and stallion Armbro
Omaha. Also entering the Hall Aug. 25 will be the
thoroughbreds Norcliffe, Cool Reception and
Anita’s Son.
$4.1 MIL FOR LAKES REGION
Three New England businessmen plan on buying
besmirched Lakes Region Greyhound Park in New
Hampshire for $4.1 million. David Johnston, a
developer, and hotel chain owner, Christopher
Gistis and his son Glen -- all without racing experience -- hope to “make the track
profitable and respectable.”
At Pocono Downs’ Hazleton, PA, OTB outlet, a
regular patron bet $24 on a $4 triple box on the
Derby, and won $266,269. “Unlike the lottery,”
he said, “I only had to pick three numbers to win
that amount on the Kentucky Derby.” The numbers were 10-18-12. Two other patrons at The
Downs at Hazleton each had winning $66,567.40
tickets on the Derby, one betting $36 on a 10-all12 and the other betting $342 on a 10-all-all. The
facility had its biggest day, and its manager, Mike
Zullinger, said, “We have a lucky site here and
astute patrons.” John Zimich, Pocono’s publicity
director, agreed, noting that the three lucky bettors took home almost $400,000 and more than
half a million dollars was paid out at Pocono and
its off-track betting facilities. There were 18
winning exactas sold.
KY TAKES BIG STEP ON DRUGS
The Kentucky Equine Drug Council, meeting yesterday, unanimously approved stringent new recommendations on penalties for illegal medication
violations in the state. The recommendations will
be forwarded to the Kentucky Horse Racing Authority Monday for final approval. If they are approved as recommended, Kentucky would leap to
the forefront as a medication leader in the United
States, a far cry from its much maligned former
position as the bastion of permissiveness. Connie
Whitfield, chairwoman of the drug council, acknowledged the change, saying of the new recommendations, “I think Kentucky, around the country, is
being perceived as being the leader that we are
and should be.” The eight members of the drug
council, appointed by Gov. Ernie Fletcher, earlier
recommended rules similar to those of the Racing
Medication and Testing Consortium on limiting
race day medication. The proposed rules make
possible suspension of horses as well as trainers,
thus extending the penalties to owners, but the rules
limit those penalties to protect owners who claim
not knowing their trainers were using illegal substances. Owners are merely alerted for first offenses. The proposals would provide stewards discretion to force trainers to give up care of horses
under their care who test positive for illegal drugs,
rather than allow them to switch their care to associates or family members. Revocation of license
is included in the penalty schedule, and thoroughbred trainer John Ward, a member of both the Kentucky drug council and the Racing Medication and
Testing Consortium, said, “I hope other states
adopt these kinds of rules.” In an indication that
other states are taking medication violations far
more seriously than previously, Delaware has fined
trainer Chris Height $5,000 and suspended him
for five years for illegal medication of a filly in his
care.
Although Height indicated he will appeal,
no stay will be granted pending the appeal.
May 13, 2005
Following commission hearing for the offense at
Harrington Raceway, Height was arrested by animal control officers with the Society for Prevention of Cruelty to Animals (SPCA) and Delaware
State Police, and charged with cruelty to animals
and cruel mistreatment. Two veterinarians testified they doubted the filly would live through the
night involved. She survived, although the owner,
Howard Levine, refused to allow the commission
to have her treated, at which point the state took
custody of the filly and treated her.
YOUBET GETS WASHINGTON OK
Youbet.com, in a unique bargaining arrangement, received approval yesterday from the
Washington Racing Commission to accept
Internet online bets from Washington residents. What made the deal unique was a payment of $400,000 to the state to compensate
it for wagers Washington says Youbet accepted illegally from residents last year. The
chairman of the Washington commission,
Gary Christenson, rejected the notion that
regulators were ignoring, or even rewarding,
illegal activity. “It’s almost the opposite. By
giving Youbet.com a license, we are insuring
that the state of Washington is getting the
money that’s due it.” Ron Crockett, owner
of Auburn Downs, Washington’s only major
racetrack, supported Youbet’s license application, and Youbet’s attorney, Scott Solomon,
indignantly rejected the notion that Youbet
had broken Washington state law. “Any activity that we have or haven’t been doing has
been with the full knowledge of everyone in
that room,” Solomon said, and added that the
racing commission had never told the company to stop taking bets. He said Youbet applied for a license even though it does not
believe Washington has the authority to regulate interstate Internet gambling. TVG
and XpressBet already are licensed in
Washington.
LAST CHANCE MOVES IN MD,FL
Track managements in Maryland and Florida, rebuffed by legislatures in those states, are taking
final shots at changing the outcome and getting
slots.
In Maryland, Dennis Mills, a vice chairman of
Magna Entertainment, met with Gov. Robert L.
Ehrlich Jr. and Senate president Thomas V.
Mike Miller -- both advocates of slots at tracks
-- and appealed to the man who stopped slots,
House Speaker Michael Busch. Busch skipped
the meeting, saying he had a prior commitment,
in effect nullifying Mills’ trip to Maryland. The
Baltimore Sun reported that the governor and
Miller emerged from the session saying they fear
that Magna will pull out of Maryland and take
the Preakness, the state’s biggest racing attraction, with them. Mills denied that his visit was
to make threats, but he did warn the leaders in
Annapolis that Magna shareholders were growing tired of losing money in Maryland. If Mills’
visit was to encourage the governor to call a
special session of the legislature, that seems
unlikely. The governor says he would like to do
so, but won’t unless he, the Speaker and Senate
president can agree on a bill. That possibility
seems remote, since Busch called the Mills’ visit
“a big set-up.” He said the governor and Senate president were trying to blame someone else
for the fact that they didn’t take the bill that the
House had passed, which was unacceptable to
them. Mills said that Magna would have accepted either the House or Senate version.
Mills was not the only supplicant for reconsideration of the slots issue. The Maryland Racing Commission offered to meet with state political leaders to discuss the situation, calling it
“very dire.” Speaker Busch had negative views on this, too, telling the Washington Post he wondered what took the
commission so long to express its opinions.
May 16, 2005
In Florida, the four tracks in Broward county
were preparing to play a longshot: going to
court to force the legislature to act on the slots
issue that voters in the county have twice approved. Constitutional scholars were not supporting their bet. An amendment passed last
November requires the legislature to produce
rules and regulations for slots in Broward by
July 1, but one constitutional law authority, Dexter Douglass, put it about as bluntly as possible:
“The legislature thumbed their nose at the Constitution, which is not unknown to this group.”
Douglass agreed that in light of the default on
the part of the legislature, the only remedy was
for the tracks to go to court and contend that it
should intercede and direct how slots should be
implemented. He added, however, that the court
could say, “We can’t do anything. The Legislature didn’t do its duty, so vote them out of office.” Jon Mills, dean emeritus and professor
at the University of Florida’s Levin School of
Law, said that although the slots amendment
appears to require the legislature to act, “We
all know in a very real sense you can’t necessarily compel such action.” Mills, a former
House speaker in Florida, did add that there is
some precedent for the courts to intervene when
a judge has been convinced that the legislature
failed in its duty, and that courts have ordered
legislatures to act, but not very often.
A THREAT IN MAINE, TOO
The Bangor Daily News in Maine, under a headline reading, “Bid to repeal slot machines worries
Penn,” reports that a movement to repeal the November 2003 vote authorizing slot machines could
delay Penn National Gaming from beginning work
on its permanent racino at Bangor Raceway. The
paper says anti-gambling and church groups are
gathering signatures in an effort to bring the issue
to referendum, most likely in November of 2006,
and that movement could push Penn National
construction back from 2006 to 2007.
May 17, 2005
MAGNA GETS MICHIGAN OK
ISLE OF CAPRI TO SINGAPORE?
Michigan Racing Inc., a fully-owned subsidiary of
Magna Entertainment, has been awarded the one
available racing license in the Detroit Metropolitan
area. Acting racing commissioner Christine C. White,
in awarding the license, said, “After careful and objective review of the applications, I have reached the
conclusion that Michigan Racing Inc. possesses the
most comprehensive plan to bring Thoroughbred racing back to the Detroit area.” Her rationale included:
They’ll be there, running a new integrated resort
casino complex, if a group called Eighth Wonder
wins the competition to build it. The government
of Singapore hasn’t chosen the winner yet, but
Eighth Wonder is one of the finalists and has signed
a management agreement with Isle. Eighth Wonder is a privately held company whose founder is
Mark Advent, who created the New York New York
hotel in Las Vegas, and his partners include
Starwood Hotels and Resorts, whose brands include Sheraton, St. Regis, Westin and W hotels.
Isle president Bernard Goldstein said managing
for the high-powered consortium “validates our
efforts to bring high-quality gaming and hospitality to markets across the world.” Isle of Capri is
the owner of HTA member Pompano Park and
widespread casino holdings in the U.S. and offshore.
n Magna currently owns the property under consideration and its plans were the most detailed
proposal;
n Magna has demonstrated the most public support from residents, government officials and industry representatives;
n Magna has a proven record of racetrack operation, currently operating 14 tracks;
n Magna has the financial wherewithal to build and
operate Michigan Downs;
n Magna has secured all local approvals in order
to apply for a building permit.
Magna plans to commence thoroughbred racing
on the 212-acre site in Romulus, about two miles
from Detroit Metro Airport, by 2009.
GET IN LINE FOR HOLLYPARK
A dozen or so developers have submitted bids to
buy Hollywood Park from Churchill Downs Inc.,
and Churchill’s investment bank, Lazard Freres,
is expected to narrow the field to five top candidates in the next few weeks. One bidder was
quoted by the Los Angeles Business Journal as
saying, “Everybody threw their hat in. How many
times do you get the opportunity to acquire
nearly 240 acres of urban infill in Los Angeles?” Guesses on selling price range
from $200 million up.
FIVE SUSPENDED IN DELAWARE
Delaware Online, a service of the Wilmington
News Journal, reports that five harness racing
drivers have been suspended for drug violations
by presiding judge Allen Cook and the Delaware
Harness Racing Commission in the past two and
one-half months. The paper said the suspensions
were confirmed by John Wayne, executive director of harness and thoroughbred racing. The five
are Andrew (Bobby) Glassmeyer, who received a
$3,000 fine and nine-month suspension for a
milkshake violation; Darrell Lewis, who received
the same penalty for the same offense; Kenny
Mitchell, Dino Episcopo, and John Veazy, all
fined $500 and suspended 90 days and ordered
to complete drug rehabilitation programs after
testing positive for oxycodone, hydrocodone, and
cocaine, respectively. In its most major recent
penalty action, the Delaware commission fined
trainer Chris Height $5,000 and suspended him
for five years, with no stay while any appeal
is pending.
May 18, 2005
STRONACH FRONT PAGE NEWS
LARKIN WANTS INTERNET BETS
Only this time it isn’t Frank. It’s his politician
daughter Belinda. She was all over the front pages
of the Toronto Globe and Mail and all other papers in Canada after announcing, two days before
a critical budget vote that could bring down the
Liberal government, that she was defecting from
the challenging Conservative Party and joining the
Liberals. The Prime Minister of Canada, Paul
Martin, immediately named her to his cabinet, as
Canada’s new Human Resources Development
Minister, but all sources said it was not a quid pro
quo for her switch. The Conservative leader,
Stephen Harper, was quick to acknowledge that
her decision to accept the Prime Minister’s offer
of a cabinet post did not help the Conservative
cause. “Obviously,” he said, “Belinda’s actions
today make the defeat of the government much
less likely.” For her part, Ms. Stronach left a strong
jab, saying her former colleague was insensitive
to the concerns of women, urban Canada, and
Ontario, and that his plan to force an election will
aid Quebec separatists. Prime Minister Martin
said that while he was thrilled to be appearing with
Ms. Stronach, he was a little worried that when it
came to style he was going to suffer by comparison.
New York state senator Bill Larkin, chairman of
the Senate Racing, Gaming and Wagering Committee, was expected to introduce legislation today to permit Internet wagering in New York state.
Larkin said, “Other states are doing it, and we’re
going to lose” without it. Larkin’s counterpart in
the New York Assembly, Gary Pretlow, lent bipartisan support of the idea by saying he agrees on
Internet betting, hoping “to keep dollars in the
state.” Larkin and Pretlow conducted a widely
publicized joint legislative hearing on “The Future
of Horse Racing in New York” yesterday, which
journalist Bill Heller wrote “was pretty much new
players singing the same old song until racing law
expert Bennett Liebman testified.” Liebman, appearing on behalf of the “Friends of New York
Racing,” called sections of New York’s existing
racing
and
wagering
law
“incomprehensible....Nobody knows what takeout
should be...what decisions should be made by the
legislature and what decisions should be made by
the tracks, horsemen and the OTBs.” He said the
creation of an ad-hoc committee to solicit requests
for proposals to operate NYRA’s three tracks if
NYRA’s current franchise is not renewed presented “a unique opportunity” to change New
York’s racing laws.
Our opening sentence, on review, is not quite
accurate. Belinda’s father also was front page
news, but in Detroit, not Canada. He was pictured in the Detroit News smiling broadly after
Magna was awarded the only Detroit area license to operate thoroughbred racing at a new
$100 million complex Stronach plans to build in
Romulus, near Detroit’s Metropolitan Airport.
Stronach told the paper’s R. J. King that he
wasn’t deterred by falling revenue in Michigan’s
racing industry, saying “it has been neglected
over many decades,” and saying he will
press ahead even without slots, but
would be happy “to take them if someone offered.”
SETBACK FOR MN RACINO
Canterbury Downs’ hope for a racino went up in
smoke yesterday -- possibly for the rest of this
year -- when an overnight defection left supporters without enough votes to pass the measure.
Minnesota governor Tim Pawlenty’s office announced, “We lost a couple votes over the last 24
hours and we no longer have enough votes to pass
the bill today.” The bill would have set up a racino
and new tribal casino next door, creating a miniLas Vegas strip with another Indian casino just
down the road, but supporters pulled the bill
rather than lose a vote in the House Taxes
Committee.
May 19, 2005
PROSPERITY 2-EDGED SWORD
CONGRESS TALKS DRUG BANS
Atlantic City’s casinos and their legislative friends
have found another weapon in their fight against
allowing the Meadowlands to have slots. Good
times. South Jersey Assemblyman Jeff Van Drew
says now that the state has solved its budget problem, there is no need for Gov. Codey’s plans for
slots at tracks. “It’s dead, buried and decomposing,” the casino’s good friend said. “This really
kills it.” The “this” he was referring to was
Codey’s announcement last week that state revenues had surged by some $1 billion above previous projections. Gov. Codey, however, did not
agree with Assemblyman Van Drew. His office
says lottery terminals still are part of his budget
proposal. Codey faces opposition not only from
Van Drew but from the Assembly Majority Leader
Joseph Roberts -- another south Jersey lawmaker
-- as well, along with other opponents who contend VLTs are slots and since slots currently are
limited to Atlantic City by the state constitution,
voters would have to approve an amendment to it
to allow VLTs at the Meadowlands. The state’s
position is that VLTs would be an extension of the
New Jersey State Lottery, and therefore exempt
from the constitutional ban.
Professional sports, which have messed around
with a lot of anti-drug talk but not much significant
action, was pulled up short in Washington yesterday. First, the NBA was told its testing policies
were so weak that a bill is being drafted that will
follow Olympic standards and provide for a 2-year
ban for a first offense and a lifetime ban for a second. Then baseball commissioner Bud Selig, testifying that the game had taken “an abrupt aboutface” and that it was up to baseball “to take the
next step and that is to remove any doubt” about
steroid use and needed to do it as soon as possible
“so we can quit talking about.” Selig’s comments
drew comment from Rep. Fred Upton of Michigan
that, “You’ve come a long way,” but Selig was blistered this morning by New York Times writer
George Vecsey, who sarcastically began his column with, “Fightin’ Bud Selig, the People’s Choice,
came out swinging yesterday. He was against steroids. He was against amphetamines. By golly,
he was for what’s right. This new baseball commissioner, this man we’ve never seen before,
vowed that baseball would turn back the forces of
evil, those illegally pumped, bulging-muscled,
revved up players.”
TRACK SLOTS FLOATED IN IL
Professional football, determined to keep its softball touch, also was in Washington yesterday, with
commissioner Paul Tagliabue and NFL Players
Association executive director Gene Upshaw discussing pending federal legislation. Tagliabue told
the House Energy and Commerce subcommittee
conducting a separate inquiry into steroid use and
proposed legislation that he “would respectfully
urge that it not be enacted into law in its present
form.”
Things are not as rosy economically in Illinois as
they are in New Jersey, and the president of the
Senate, Emil Jones of Chicago, thinks 20,000 new
slot machines, including at Illinois tracks, would
help solve the problem. Jones thinks they could
add $580 million to the state treasury, and said
they would not represent gambling expansion, but
rather would provide current gambling facilities
with more betting options. He floated that idea
yesterday in budget discussions. The Senate minority leader, Republican Frank Watson, lent b i partisan support, calling horseracing “a
viable industry in Illinois that needs some
help.”
The hearings and the testimony should convince
racing that its current course toward more severe
penalties is both proper and proactive, and
needs to move forward forcefully and without delay.
May 20, 2005
MAGNA STILL HOPING IN MD
BLACK TIE IS OPTIONAL
Dennis Mills, executive vice president of Magna
Entertainment, is in Baltimore along with a hundred thousand others for tomorrow’s Preakness.
Unlike most of the rest of the throng, he will be
returning Wednesday. Mills has a meeting scheduled with Michael Busch, the killer of slots, to see
if something can be worked out. Busch confirmed
the meeting, but said a special session of the legislature is unlikely. Maryland’s governor, Robert L. Ehrlich Jr., made clear at yesterday’s
Preakness Alibi Breakfast that he still hopes to
get slots done. Speaking of Magna, he said, “I
know that they’re hemorrhaging money in Maryland. I know it’s an uneven playing field, and I
know they will make a decision (on leaving) at some
point. The 112,000 people leaving here Saturday
need to understand the stakes have been ratcheted
up.” Michael Olesker, humorist of the Baltimore
Sun, who last week wrote that “As everybody
knows, the average age of the serious horse-racing fan is 114,” was back at it again for the
Preakness, writing that “The Alibi Breakfast felt
like the Last Supper,” referring to the concerns
that Magna might move Maryland’s premier racing attraction. Magna wasn’t saying that at the
Breakfast, but others were. Chick Lang, the man
who played a large role in making the Preakness
what it is, said, “I see it happening. I think it’s
going to Gulfstream Park.” Olesker, in his column on racing age, said he bumped into two of
his old high school teachers, both approaching 70,
at Pimlico. “Among the thoroughbred
horseracing set,” Olesker wrote, “they have a
name for 70-year-old men. They are called a
youth movement.” It makes funny copy, but
100,000 or more of the 112,000 at the Preakness
will be far under 70. Someone out there likes the
sport. While watching the NBC Preakness telecast, watch for the Derby Superfecta winners who picked their winner on the
Meadowlands parking lot.
If you are in Milwaukee tomorrow evening, or
nearby, plan to stop in the Italian Community Center, where HTA’s longtime good friend Dominic
H. Frinzi will be receiving another high honor
when he is installed as president of the National
Italian Bar Association. Dominic has been a
prominent Wisconsin attorney for more than 50
years, and has served a record five terms as
president of Milwaukee’s Italian Community
Center. He also is a past president of UNICO
National, the UNICO Foundation and its Milwaukee chapter, and is a member of enough organizations to fill the rest of this column. The Justinian Society, an attorneys’ group, honored Frinzi
with its Justinian Man of the Year award six years
ago, and three years ago he was honored with
the Order of Merit from the Republic of Italy.
He has tried cases in every county of Wisconsin, ran for governor in 1964 and 1966, and is a
nationally renowned scholar of opera. He has
served an unprecedented nine three-year terms
as president of Harness Horsemen’s International, and won HTA’s Messenger Award, our
highest honor, in 1993. He also has been enshrined in harness racing’s Hall of Fame in
Goshen, NY, and in the Illinois and Wisconsin
harness Halls of Fame. HTA salutes him on his
latest national honor.
While we’re saluting, a tip of the hat to two of
the sport’s worthiest women. Carol Cramer of
USTA, who has handled the Stakes Guide since
its inception in 1967 and is a steward and secretary of the Grand Circuit, will be the 2005 Lady
Pace honoree at the Little Brown Jug meeting in
Delaware, Ohio, Sunday, Sept. 18. And prolific
harness racing author Marie Hill will receive the
Harness Racing Museum’s Pinnacle Award for
press and public relations accomplishments at
the annual Hall of Fame Day dinner in
Goshen, NY, Sunday, July 3.
May 23, 2005
NYRA ZAPS 59 MUTUEL CLERKS
STRANGLES AT INDY DOWNS
After 89 mutuel clerks called in sick at Belmont
Park on Preakness day, an angry NYRA fired 59
of them for participating in an illegal job action.
Under terms of the relevant collective bargaining
agreement between NYRA and the mutuel clerks,
15 days notice is required for any strike or job
action. None was given Saturday, and Bill Nader,
senior vice president of NYRA, said as late as
Friday night Belmont was told no job action would
be taken. The absence of 89 of the 180 clerks
scheduled to work the Preakness card left the
9,221 on hand at Belmont irate over long lines
and short tempers, and NYRA announced today
it would offer free grandstand admission and reduced clubhouse admission as a good will gesture. NYRA president and CEO Charles Hayward called the absenteeism “a blatant and illegal action to embarrass NYRA on an important
race day,” and said it was both disappointing and
disruptive. The clerks’ union chairman Sal
Zammitto said the union did not sanction any type
of walkout or strike Saturday, and that all of the
clerks who did not show up either called in sick
or went to work the Preakness in Baltimore. The
clerks have been working without a contract since
the end of 2003, operating under provisions of a
prior agreement. Although Zammitto claimed
NYRA backed out of an agreement reached three
weeks ago that he said had been signed by both
parties, Nader denied that. He also said there
were “hundreds” of people in training to be mutuel
clerks and 800 would be working for the Belmont
on June 11.
HTA member Indiana Downs, currently in the
middle of its spring thoroughbred meeting, has
quarantined its receiving barn for the remainder
of the session that runs through June 18 after an
outbreak of the highly contagious respiratory disease strangles. General manager Jon Schuster
said, “Our concern is for our equine athletes. The
horses and their safety have been considered in
every decision that has been made and will continue to be our primary concern.” The track and
the Indiana HBPA have made alternate arrangements for receiving horses.
MAGEE 5TH TO REACH 10,000
Dave Magee, HTA’s Driver of the Year in 1994
and a winner of more than 200 races for 27 consecutive seasons on the Chicago circuit, joined
Herve Filion, Cat Manzi, Walter Case
Jr. and Dave Palone in the exclusive
10,000-win club at Balmoral Saturday
night.
OHIO VOTERS NOW LIKE SLOTS
Ohioans voted down slots in 1990 and 1996, but a
Cleveland Plain Dealer poll now shows that 55%
of voters polled say they favor Cleveland mayor
Jane Campbell’s effort to change the Ohio constitution to let the state’s major cities decide if they
want casino gambling. The telephone poll covered
1,500 voters, and revealed that one third of the
respondents had gone to another state to gamble
in the last year.
MARINO, JEWELS & POMPANO
City and Shore, an up-upscale magazine whose slogan is “Savoring the Good Life in South Florida,”
and is about as posh as publications get, features Dan Marino enjoying the good life on the
cover, pictures of Donald Trump’s new
$41,350,000 home in Palm Beach inside, and,
opposite the inside back cover, a full page feature and great picture of Pompano Park. The
article, by Stuart McIver, tells of Pompano’s history from 1926 to the time Francis and Fred Van
Lennep bought it and rebuilt it in 1964, and shows
the track as it looks today. The article concludes,
“The vote in favor of slot machines in Broward
county will bring big changes again to the
track...and, more than likely, a big crowd
again.”
MORE TROUBLE FROM KYL
Arizona senator Jon Kyl is at it again, proposing legislation that could be disastrous for racing. This time it is called “The Unlawful Internet
Gambling Enforcement Act of 2005, and according to the headlines on this morning’s “Market
Watch” of the Wall Street Journal, there are no
track exemptions in this latest Kyl attack. The
story, written by William Spain, says the draft
legislation was spurred by the World Trade Organization ruling on the dispute between the U.S.
and Antigua. A warning was sounded on these
pages several months ago, when U.S. trade reps
began talking about “minor revisions” in current Internet laws. Kyl apparently saw the dispute as another opportunity to reintroduce his
previously failed measures, but writer Spain
says this one goes farther. “What makes Kyl’s
latest proposal different from previous failed
bills is that it doesn’t carve out an exception for
racing. That has given rise to warnings that the
only part of the parimutuel industry that is growing at all -- account, or remote, wagering -- could
be run right out of business.” Spain said that
through a spokesman, Kyl declined to comment
on the proposal.
The Spain article apparently was triggered by a
long report co-authored by Anthony Cabot, a
partner in the Las Vegas office of Lewis and
Roca LLP, and Eugene Christiansen, chairman
of the gaming consulting firm Christiansen Capital Advisers in New York. HTA has obtained a
copy of the article, which reportedly is scheduled for publication in Gaming Law Review. It
is titled “Why the Future of Horseracing is at
Risk: the WTO Decision and Senator Kyl,” and
it begins, “For the past seven years, Senator
Jon Kyl (R-AZ) and other conservative members of Congress have attempted to pass
legislation that would prohibit all forms
of Internet wagering. In early May, Sena-
May 24, 2005
tor Kyl began circulating proposed legislation
that would again seek to prohibit interactive gaming. Significant changes in the political landscape
in Washington provide an unprecedented opportunity for Senator Kyl to obtain the necessary
votes in both the House and Senate to pass his
“Unlawful Internet Gambling Enforcement Act of
2005 (New Kyl bill). Republicans control both
houses of Congress; they control the White
House; they control the Department of Justice;
they are increasing their control of the Federal
bench; and they owe this control in significant
part to the Christian Right, for whom Internet
gambling is a moral issue, just as, to their
forebearers, Prohibition was a moral issue. If
they want to pass Senator Kyl’s bill, or any version of Senator Kyl’s bill, they can.” Greg Avioli,
executive vice president of the NTRA, who
speaks more and more for the American Horse
Council these days, says, “We are confident that
Mr. Kyl and other members of the Senate do
not want to interfere with legal parimutuel betting (and that) whatever legislation passes will
adequately protect racing.” That’s Greg Avioli
talking, not Jon Kyl. Kyl is my senator, and unfortunately I do not share Avioli’s confidence in
him. Racing had better begin preparing itself
for another major effort with what friends it has
in Congress to kill this legislation soon.
BOB HACKETT DIES AT 80
Robert Alden Hackett, former editor of both Hoof
Beats and Horseman and Fair World, died Saturday in an assisted living home in Hilton Head, SC.
Bob, 80, had been seriously ill for several years.
He moved to South Carolina a year or so ago to
be near his daughters. A Harvard graduate and
cavalry man who moved to Tubac, AZ, after retirement to share old times with his
cavalry buddy Will Rogers Jr., he was one of
the sport’s most popular figures during his
long writing and editing career. He will be
buried in Arlington National Cemetary.
May 25, 2005
MEMBER PERKS FOR HTA,USTA
HTA ADDS TWO NEW MEMBERS
The United States Trotting Association, representing 24,847 owners, breeders, trainers and drivers,
and Harness Tracks of America, representing 35
major harness tracks in North America and their
thousands of employees, have joined the National
Thoroughbred Racing Association’s group purchasing program. Under the plan, USTA and HTA
will be offering Members’ Perks that will provide
significant savings to their individual members.
Western Fair Raceway in London, Ontario, and
Harrah’s Chester Casino and Racetrack in
Chester, PA, now are members of Harness Tracks
of America, bringing the association’s membership
to 35 tracks and racing organizations. Hugh
Mitchell, chief operating officer of Western Fair
Association, will represent Western Fair on HTA’s
board of directors and Anne Allman, who is supervising construction and organization of the new
Harrah’s track in Chester, will be the HTA director for that operation. HTA president Jeff Smith
said the additions “add new strength and vigor to
HTA,” and HTA welcomes both organizations and
their directors to the HTA family of tracks.
Effective immediately, those associated with
USTA and HTA will be able to enjoy sharp discounts on a diverse selection of products including Dodge cars and trucks, John Deere tractors
and other equipment, FedEx delivery service,
Sherwin-Williams Paints, OfficeMax supplies,
NetJets, Presort Services, Daktronics, Lexmark
inkjet and laser printers, and Hallway Feeds.
USTA president Phil Langley and HTA president
Jeff Smith, jointly announcing the affiliation and
partnership, said the agreement has the potential to provide hundreds of thousands of dollars
in savings to those making purchases under the
program. NTRA Purchasing President Joe Morris said the addition of USTA and HTA “will significantly strengthen the collective buying power
of NTRA Purchasing and allow us to generate
even more savings for the horse industry.”
NTRA Purchasing has generated $107 million in
sales and $25 million in savings to the equine industry since its inception in 2002. Last year
alone, its sales figures topped $60 million. The
American Quarter Horse Association and the
United States Equestrian Federation also are
members of the NTRA group purchasing program.
Details of participation in Members’
Perks are being provided to all members
of USTA and HTA.
ELSEWHERE IN THE NEWS
HTA member Pompano Park, along with
Gulfstream Park, Hollywood Greyhound Track
and Dania Jai-Alai, sued the state of Florida yesterday, seeking to have a decision saying they
are authorized to operate slot machines. Opponents also filed a suit, asking for a ruling that
the tracks cannot operate slots until the adjourned legislature issues enabling legislation.
In Maryland, Magna Entertainment executives
met today with House Speaker Michael Busch,
hoping to persuade him to broker a compromise
on slots at tracks in that state.
In New Jersey, the state treasurer told the Assembly Budget Committee that the Codey administration still is counting on its proposal for
VLTs at the Meadowlands. Up or down action is
expected in the next two weeks.
In Massachusetts, the mayor of Boston, Thomas M. Menino, threw his full support behind
slots at state tracks, calling it “a matter of survival” for the tracks and essential for retaining as many as 4,000 jobs.
KEEP AN EYE ON THIS ONE
Youbet.com, which registered huge 75% gains
on Preakness betting over its numbers a year
ago, thinks last week’s U.S. Supreme Court decision in a wine case could enable it to offer its
services in nine states where it is now prohibited. Jeff True, Youbet’s western region general manager, says “We think this decision could
go a long way in allowing us to operate in those
other nine.” Youbet’s hopes, which were reported along with details of the decision by Interactive Gaming News, which keeps a close
watch on the pulse of Internet wagering and gaming, are based on a court decision written by Justice Anthony Kennedy. It argues that if in-state
companies are allowed to partake in a form of commerce among in-state companies, that form of commerce also must be opened to out-of-state companies. The 5-4 decision came in the consolidated
cases of Granhold v. Heald in Michigan and
Swedenberg v. Kelly in New York. The central
issue was whether a state can prohibit the online
sale of wine to its residents from an out-of-state
winery, while allowing in-state wineries to sell their
products as long as they don’t ship those products
across state borders. Justice Kennedy wrote,
“States have broad power to regulate liquor. This
power, however, does not allow states to ban, or
severely limit, the direct shipment of out-of-state
wine while simultaneously authorizing direct shipment by in-state producers. If a state chooses to
allow direct shipments of wine, it must do so on
evenhanded terms.” Kennedy also said that
laws blocking some businesses from a market
while allowing others to access it are in direct
violation of the Commerce Clause. Lawyers who
opposed allowing Internet importation argued
that the 21st amendment, which ended prohibition, overrode the Commerce Clause, but the
Court rejected that argument. Youbet
thinks the decision is applicable to interstate horse race betting.
May 26, 2005
Kennedy was joined in the decision by justices
Antonin Scalia, David Souter, Ruth Bader
Ginsburg and Stephen Breyer, with chief justice
William Rehnquist and justices John Paul Stevens,
Sandra Day O’Connor and Clarence Thomas dissenting.
SLOTS DIE IN TEXAS AT 2 A.M.
Things are different in Texas, as everyone knows,
and they were different as slots at tracks came
down to the wire in the Senate last night. First, in
an unusual legislative development, the Texas Senate voted yesterday, 16-15, to shut off debate on
House Bill 3540, a crucial revenue measure with
about 50 amendments including one that would have
allowed VLTs at tracks. Senator Ken Armbrister,
a Democrat who wanted to sponsor a VLT amendment, was bristling at the parliamentary maneuver, and at 2 a.m. this morning, as the session wound
to a close, he introduced his bill. Or tried to. He
began by saying, “This is a small amendment that
will bring in billions of dollars for the State of
Texas....,” but that was as far as he got. Republican Senator Jane Nelson, an opponent, raised a
point of order that it was after midnight and no
debate could be considered. Armbrister said, “I
believe it’s before midnight...in Vegas,” and
Nelson shot back, “But senator, what happens in
Vegas stays in Vegas. You know that.” After a
parliamentary discussion, Lt.Gov. David Dewhurst,
presiding over the Senate, ruled that time had run
out, and the measure died as the legislature dissolved.
PROBLEMS IN WONDERLAND
Wonderland Park, Boston’s big dog track that has
been closed since May by a serious epidemic of
kennel cough and does not plan on reopening until
June 10, has asked the Massachusetts Racing
Commission to reduce its season by 106 performances, from 256 to 150. The track says it
reached the decision before the siege of sickness decimated the ranks of its dogs.
TWO VERSIONS IN MD; PICK ‘EM BET
Dennis Mills, a vice president of Magna Entertainment, met with racing’s nemesis in Maryland,
House Speaker Michael Busch, this week. So how
did it go?
“I sense a great hope after speaking with the
speaker,” Mills said. “We observed that time is
of the essence. We hope things can be done sooner
rather than later.”
How about it, Mr. Busch?
“The people of Maryland expect us to do our work
in 90 days. They don’t expect us to come down
here in a special session at a cost of $45,000 a day
to help out one industry.”
Mr. Mills: “We talked about the fantastic success of the Preakness. We impressed upon the
speaker the competitive disadvantage the racing
industry is up against.”
Mr. Busch: “They articulated the point of view
that horse racing is at a competitive disadvantage
here. What does it take to make horse racing more
competitive? What does it take to do that without
slots? I think that is an alternative everybody must
consider.”
Mills: “We remain optimistic that all legislators
here will do what needs to be done.”
Busch: “For the members, this isn’t just about
horse racing. It’s a defining vote for them on the
future of Maryland and of their communities.”
Mills: “The bank says, ‘You’ve got slots all around
you.’ Magna needs additional revenues, either
from slots or some other unspecified source, to
satisfy banks.”
Busch: “I would encourage Magna to continue to
come down here working to make horse racing more competitive.”
Any questions?
May 27, 2005
PRESSURE ON TRACKS IN CAL, TOO
With handle down in California by $65 million
through five and one-half months of this year -the runners down $39 million in southern California, or 3.82%, and harness down $18 million, or 22.18%, in northern California -- and
with attendance down 315,000, racing commissioner Richard Shapiro called the numbers “dismal,” and racing board chairman John Harris
said, “We really need to get something going to
turn this around.” Exactly what -- short of less
rain -- was not specified exactly, but the board
did put the onus on the tracks, saying it intends
to place more demands on tighter security, better marketing and advertising, and more financial information. It took steps in those directions yesterday by approving rule amendments
for public notice to incorporate those requirements in the applications for licenses to operate
race meetings. The tracks responded quickly,
with Hollywood Park Rich Baedeker, speaking
for the federation of California tracks, telling
the board the federation does not believe marketing-dollar information should be included in
the licensing process. He told commissioners
that process opened the door for micromanaging
of tracks’ business operations, and offered as
an alternative a willingness -- at least on the part
of Hollywood Park -- to provide such details
“one on one” to any commissioner. The chairman of the racing board and three colleagues
were not impressed. Chairman John Harris said,
“Your marketing efforts affect so many people
in the industry, it really should be public information. If racing was doing well right now, it might not
be so important, but the way things are, I would like
to see more transparency.” Shapiro added, “I understand that you need help, but it is difficult for me
to be an advocate when I don’t really understand
your bottom line. We need to make sure racing
associations are putting forth the effort and
expenditures to justify granting a license.”
May 31, 2005
A SLOTS DEAL IN CALIFORNIA?
DIAZ SENTENCED, BALA NEXT
Bloodhorse.com reports that a revenue-sharing
agreement may be underway in California between
state racetracks and tribal casinos, following the
dropping of a track suit that was aimed at overturning five compacts signed last year by Gov.
Arnold Schwarzenegger. Hollywood Park, Santa
Anita, Bay Meadows, Golden Gate Fields and Los
Alamitos had filed the suit, but dropped it in May
25, and Hollywood president Rick Baedeker and
an attorney representing the tracks said talks have
been ongoing between the Indians and the tracks.
The lawsuit had derailed a $1 billion transportation bond that was to have been financially supported by the tribal casinos in return for slot exclusivity and unlimited machines. The attorney
said the suit was withdrawn in the hope of a compromise settlement with the tribes and the state,
but that it could be reinstated if the negotiations
do not produce results.
Raymundo Diaz Jr., the business and personal
partner of Racing Services’ owner Susan Bala, has
escaped jail for his role in the huge illegal gambling operation in Fargo, North Dakota. Diaz was
sentenced to 90 days in a halfway house, 60 days
of electronic home surveillance, two years of probation, and forfeiture of $100,000 for his role in
the operation. Ms. Bala, who will be sentenced
July 14, stunned Diaz’s lawyer by showing up at
his trial and sitting with his family. “I still can’t
believe she came to this sentencing,” he said, apparently in view of Diaz turning prosecution witness against her. Diaz blamed all guilt on Ms.
Bala, and said he was “very remorseful for everything that has happened and the shame I’ve
brought on my family, my friends and my children.” When asked by reporters if he still had a
personal relationship with Ms. Bala, he said, “No,
I don’t.”
SCHOOLS SAY “NO THANKS”
IN THE NEWS ELSEWHERE
Only 96 of 318 school boards in Pennsylvania have
agreed to accept gambling money from track slots
to fund tax rebates. One supporter of the idea, a
state representative, said, “It’s going down in
flames.” In the Philadelphia area, where 64 suburban school boards are located, only 7 joined the
program, which offers school districts gambling
revenues for property tax rebates and the strings
attached to getting them. The non-acceptance by
school districts statewide refuted the prediction in
April of Gov. Ed Rendell, who said at the time, “In
the coming months, we’ll see school boards across
the commonwealth make history by voting to provide property tax relief to their residents.” In return for the slots revenue, school boards would
have had to enact a 0.1% earned-income tax increase and conduct referendums on school budgets if tax hikes exceeded an annual inflation index. Proponents said the districts
were unwilling to give voters budget veto
powers.
Keith Waples has been named Canada’s greatest
horseman of all time in a poll conducted by The
Canadian Sportsman......Prairie Meadows Racetrack and Casino breaks ground tomorrow on a
$60 million expansion project that includes a
14,000-square foot multipurpose facility that will
seat 800 for banquets and 1,200 for concerts....
Penn National Gaming won a 5-0 vote of confidence when the Maine Harness Racing Commission granted it a license to operate a temporary OTB facility in a restaurant it purchased
for $3.8 million in Bangor while its $75 million
racino is built at Bangor Raceway......Cantor
Fitzgerald has won Nevada Senate approval of
a handheld wireless device that will enable gamblers to play as they wander through Nevada
casinos.....the $2.6 million dollar winning pacer
Red Bow Tie was euthanized Saturday, a victim
of EPM....Gov. John Baldacci of Maine says
he is unlikely to sign enabling legislation
for an Indian harness track if it is passed.
SPECIAL SESSION IN FLORIDA?
Reports from Florida indicate governor Jeb
Bush is concerned that “unelected folks” or the
judiciary may take over the process of deciding
the fate of slots at tracks in Broward county.
Bush, no supporter of the idea, was quoted as
telling reporters, “We need to reach common
ground” to avoid having courts decide the issue
of whether the county can write its own rules
and regulations on slots, which were twice approved by the voter. but then left hanging by the
legislature, which adjourned without acting on
regulation and taxing of the measure. Bush reportedly discussed a special session of the legislature with House Speaker Allan Bense and
Senate President Tom Lee after HTA member
Pompano Park, Gulfstream Park, Hollywood
Greyhound Track and Dania Jai Alai and opponents of the slots plan filed conflicting lawsuits
last week.
PRIVATIZATION IN QUEBEC?
The province of Quebec appears to be moving
closer to privatization of its racinos. A spokesperson for Quebec finance minister Michel Audet said
the plan to privatize the four racing centers in the
province would go to the cabinet soon for a vote,
with private owners giving Quebec a portion of VLT
profits. Audet’s proposal would have private interests -- Magna Entertainment or Remstar being the leading candidates -- operate the racinos
rather than Loto-Quebec, the provincial lottery operator, reversing the policy proposed by Audet’s
predecessor as finance minister, Yves Seguin.
STARRY NIGHT IN TORONTO
The stars will be out in Toronto Saturday night,
the most dazzling array of the year in harness racing to date. Horse of the Year Rainbow Blue
headlines the $85,000 Classic Distaff and
Maltese Artist and Life Source feature the
$85,000 Pacing Classic.
June 1, 2005
Last year’s 3-year-old champion trotting filly
Housethatruthbuilt makes her seasonal debut in a
$60,000 Classic Oaks division that also includes
red hot Mystical Sunshine and Silver Springs, and
Windylane Hanover starts in another division of
that race. The Trotting Classic has the continent’s
number one performer, Mr. Muscleman, along with
JMVan Gogh and Cash Hall in a six-horse field.
In addition to those Classic Series events, there
will be three $100,000 divisions of the Burlington
for 3-year-old pacers.
DISNEYLAND WITHOUT MICKEY
The state of Maryland is planning a 500-acre
horse complex -- sort of Kentucky Horse Park
North -- with a 5,000-seat arena, an outdoor
amphitheater for competitions, some 1,200
stalls, and a museum, and they are referring to
it as “a Disneyland for horses.” There is only
one problem. It would be Disneyland without
the feature attraction, Mickey Mouse, or in this
case without horse racing, for which Maryland
is famous. Unless Michael Busch gets off his
high horse and lets slots pass in the Maryland
House, a Disneyland for horses in Maryland
without a vital, vibrant horse racing industry
would be a hollow gesture, a reminder of what
once was a great racing state. The executive
director of the Maryland Horse Industry Board,
Rob Burk, says, “It won’t be a racetrack, and
it wouldn’t be a slots location or anything like
that.” Michael Busch, not surprisingly, supports
the idea.
DENNIS AND THE DAILY DOUBLE
Tom Luicci, covering the opening of Monmouth
Park for the Newark Star-Ledger, wrote of Dennis
Dowd, “The track’s new senior vice president for
racing has a feel for what bettors want and need
and his impact should be felt immediately. Don’t
just say hello if you see him roaming the grounds.
Ask him who he likes in the double. He will
definitely have an opinion.”
June 2, 2005
“USE A CLUB” IN MARYLAND
JOCKEY CLUB V. HEMINGS
The state controller of Maryland, William Donald
Schaefer, who is former governor, has suggested
the present governor, Robert L. Ehrlich Jr., bring
in House Speaker Michael Busch “and club him
with a club” to get slots at tracks. Busch was quick
to reply, saying that if Ehrlich took Schaefer’s advice, he should train the weapon on Senate president Thomas V. Mike Miller. “If the governor
wants to execute the suggestion to use a club,
he should point it in the direction of the other
Mike, the president of the Senate,” Busch said.
Schaefer, in addition to suggesting the governor club Busch, had a more positive idea. “My
admonition is to ask the business community to
get involved. The Greater Baltimore Committee is sitting on their hands. There’s time yet to
do this.” Schaefer was referring to the threat
of Magna Entertainment to move Maryland’s
greatest race, the Preakness. Schaefer said
business leaders don’t believe the threat, but
obviously he does. Gov. Ehrlich did not agree
with Schaefer on losing the Preakness. “We are
not going to lose the Preakness, but I need a
little cooperation from downstairs to get it done,”
he said, referring to the House and Speaker
Busch.
Every so often racing takes itself so seriously that
it looks ridiculous. Here’s the latest instance: The
Jockey Club, which has approved a few double
entendre names with salacious interpretations in
recent years, has taken great offense that Garrett
Redmond, owner of Ballycapple Farm in Paris,
KY, asked to name a runner Sally Hemings, the
slave who was reportedly the mistress of Thomas Jefferson, and whose descendants surfaced
in the news with fanfare in the last year. The
Jockey Club first had no idea who Sally Hemings
was, telling Redmond he would have to get her
permission to use her name. Redmond wrote
back that “I will gladly get her permission if you
can dig her up.” And he asked, with good cause,
if the Jockey Club had required written permission when it approved Louis Quatorze, the
French king Louis XIV, or Buddha? Chastened
but unbowed, the Jockey Club then decided Sally
Hemings was notorious, or at least famous, and
denied Redmond’s application. Redmond has
now filed a federal lawsuit. If there ever was a
case where we hoped an owner would win, this
is it. Racing has enough problems without absurdity being added to the list.
A LESSON FOR HORSE RACING
Two days ago we reported here that 96 of 318
school districts in Pennsylvania had rebuffed the
governor, Ed Rendell, by rejecting participation
in Act 72, the property tax relief program tied to
slots at Pennsylvania tracks. Our trusted director from The Downs at Pocono, Conrad
Sobkowiak, responded before the ink had dried
on the release that “It’s worse than that. There
are 501 school districts in Pennsylvania, with only
96 voting to take the slots money.” Gov. Ed
Rendell responded, too, but not to us. He told
Associated Press he would “have to look for another vehicle to provide Pennsylvania with
property tax relief.”
Gary Tanaka, the co-founder of Amerindo Investment Advisors and a major figure in thoroughbred
racing, has been charged with fraud and, according to The Blood-Horse, is being held at a federal
detention facility pending bail, with a hearing set
for tomorrow. The Securities and Exchange Commission, meanwhile, has filed a lawsuit in federal
court asking a judge to appoint a temporary receiver for Amerindo. How refreshingly different
from horse racing itself. If this were a rac- i n g
matter, instead of a major fraud case,
Tanaka would still be running Amerindo
on appeal.
CONRAD SETS US STRAIGHT
FARALDO ATTACKS “THEY”
Wearing his hat as lawyer for Vernon Downs’
horsemen, USTA chairman Joe Faraldo leveled a
blistering attack in the Oneida (NY) Daily Dispatch this week on unnamed “theys,” scolding
them for not stepping up and buying the track.
Although Faraldo did not mention major New York
City realtor and owner-breeder Jeff Gural or majority shareholder Shawn Scott by name, the reporter who did the interview with Faraldo -Rachael Protzman -- did, a number of times, making it appear that Gural was Faraldo’s target. This
would be strange, because Faraldo recently was
quoted as lauding Gural for his legislative efforts
in Albany in getting the VLT issue resolved. In
the long story, Protzman identified Faraldo as “attorney for the Harness Horsemen’s Association
of Central New York,” who told her, “They’re saying that they’re doing everything they can to make
sure there is a racing season, but they don’t seem
to be doing what they need to do. It seems to me
that there are people that have an ownership interest in Vernon Downs and they say they are going to create all these wonderful things for the
horsemen. But instead they’re doing all they can
to scare away competitors that are interested in
buying the place, and all that’s doing is setting us
back. I think somebody’s got to step up and buy
Vernon Downs. Until that happens everything else
is, unfortunately, just a waste of everybody’s time.
It’s raising a lot of people’s hopes. They know
what they’re doing. They’ve calculated every
penny and dime. They’ve calculated the risks that
they’re willing to take and not take.” That’s fine
talk for clients, but perhaps a bit of oversimplification, particularly when someone has to figure
out how to handle Vernon’s $26 million or more in
debt. It would seem to an outsider that calculating
the risks is a prudent course when tens of millions
of dollars are involved. Gural told
Protzman, “Everything’s still up in the air
at bankruptcy court.
June 3, 2005
“We intend to submit a revised plan in the next
few days. We’re working on it with attorneys
as we speak. There’s growing concern that the
delay is just costing everybody money. We’re
hoping there will be a racing season. We’re
working on it with Racing and Wagering.”
Faraldo said, “If it was in our hands, we would
do everything that we can. But because of this
maneuver of putting this place in bankruptcy,
because of the maneuvering by potential suitors, the horsemen are caught in the middle.”
That’s true, but talk is cheap. Buying Vernon
Downs is not.
BIG CHANGES ON THE COAST
In what is characterized as one of many changes,
the California Horse Racing Board is not renewing the contracts of three veteran California stewards. Board executive director Ingrid
Fermin, who formerly worked with the three as
a steward, announced that senior steward Pete
Pedersen; former harness racing driver and
steward Jack Williams; and MerlinVolzke,
were being replaced. Petersen, 84, is in his 50th
year as a California steward. Fermin said
changes also were being made to the racing
board investigative staff, including adding new
employees and rotating some present ones from
track to track. Pedersen said “I’ve been lucky
to be on the track this long. It’s not the end of
the world.”
THE STORY IS EVEN BETTER
We recounted here yesterday thoroughbred
breeder Garrett Redmond suing The Jockey
Club for refusing the name Sally Hemings, the
reported slave mistress of Thomas Jefferson.
The Club first requested Redmond to get her permission, then decided she was notorious or famous. We neglected the real jewel of the story,
however. The filly in question is out of
Jefferson’s Secret, who was by Colonial
Affair.
June 6, 2005
MAINE GOV TO VETO RACINO
HANG ON. HELP ON WAY, IN’07
The legislature of Maine gave its approval last
week to a tribal racino and harness track in economically depressed Washington county, but the
state’s governor, John Baldacci, says he will veto
the bill. The House passed the measure, 94-53,
and reaffirmed that vote in another 87-46 vote.
The Senate approved it 19-15, but those votes do
not provide the two-thirds majority needed to override Baldacci’s promised veto. The governor said
gambling would hurt long-term efforts to bring businesses and jobs to Washington county -- a strange
premise -- and said the project was “not sustainable economic development.” The Senate majority leader, Paul Davis, said, “If he vetoes it, it’s all
over.”
Tracks and horsemen in Pennsylvania have been
waiting a long while for slots, but it appears they’ll
have to wait at least another two years. The chairman of the Pennsylvania Gaming Control Board,
Thomas A. Decker, told reporters last week that
he feels confident the state will begin seeing revenue “as soon as 2007.” That is not “as soon as”
racing would like, but the control board is crawling, not running, and a legal challenge on constitutionality isn’t helping. The state Supreme Court
is expected to hear the case this summer.
A VETO IN FLORIDA, TOO
Tracks in Florida, particularly in Broward
county where HTA’s Pompano Park operates,
have been plagued recently with a proliferation
of adult arcades, where four quarters get you a
chance in pizza parlors and arcades to win tickets that can be exchanged for gift certificates
in stores, supermarkets, and restaurants. Although direct cash, alcohol and tobacco prizes
are prohibited under the law, the tickets can
be exchanged in supermarkets and stores for
those items. A Miami Republican, Senator Alex
Villalobos, slipped a provision into a consumer
protection bill that would have allowed the arcades to use dollar bills instead of coins in the
machines. The tracks objected, and for once
Jeb Bush came down on their side. He vetoed
the measure, calling it “an expansion of gambling and inconsistent with my long-standing
anti-gambling philosophy.” It was a nickel and
dime victory -- or maybe more accurately a
four-quarter victory, but at least it gave t h e
tracks something they wanted and gave
the arcades something they didn’t want.
In Florida, that’s progress.
AH YES, THE EMERALD AGAIN
If you like really long-running serials, then Chicago and the Emerald Casino case is the place
for you. The Illinois Gaming Board, recently
reconstituted by the governor, has taken up the
license revocation matter involving the Emerald again. We have lost track of the years this
has been dragging on, but eight is a good guess,
and the revocation proceedings themselves go
back three years. Now attorneys for the bankrupt Emerald are asking a judge to halt the revocation matter, saying it is causing the Emerald group to lose money for lawyers and the state
to lose money because the license remains unused. The attorney general of Illinois, Lisa
Madigan, says there is no emergency that would
cause the judge to grant an injunction to stop
the hearing.
DANICA ASIDE, HERE’S KARYN
Danica Patrick has captured headlines, including
Sports Illustrated’s cover, since her fourth place
finish in the Indy 500. But how about Dr. Karyn
Malinowski, a dean at Rutgers university and director of its Equine Science Center, who finished
first in the $5,000 American Harness Drivers
Spring Final at the Meadowlands. She not only
won, but drove her own pacer Hugme Christi
to a 1:55.4 victory.
June 7, 2005
KEY SLOTS VOTE IN NJ
HARRAH’S BREAKS GROUND
The Senate Tourism and Gaming Committee of
the New Jersey legislature has scheduled a vote
Thursday on a proposal to place 1,500 to 2,000
VLTs at the Meadowlands. Regardless of the
Senate committee vote, Democratic leaders in the
Assembly have vowed to block the measure, which
is vigorously supported by Gov. Richard J. Codey.
Codey believes VLTs at the track could generate
$150 million for the state, noting that New Jersey
already faces slots competition from New York,
but Atlantic City casinos have thrown their money
and clout behind the effort to defeat Codey’s proposal.
HTA’s new member Harrah’s Chester Casino and
Racetrack, broke ground yesterday, and Harrah’s
Entertainment president and CEO Gary Loveman
backed his commitment to Chester with a check
for $500,000 for job training and development in
the economically depressed waterfront city. Calling it “The Harrah’s Chester Challenge,” Loveman
said the community development initiative was
designed to support the acquisition of job skills
and training that will enable Chester residents to
fully benefit from the new jobs that will be created
as a result of Pennsylvania’s gaming legislation.
The check, payable to the Delaware County
Workforce Investment Board, is expected to be
earmarked for not-for-profit and government organizations that are dedicated to helping educate
and train Delaware county residents, including
United Way, the Delaware Office of Employment
and Training, and the Opportunities Industrialization Center.
Loveman said, “Gaming has helped produce dramatic economic turnarounds in communities across
America, and we expect similar results from our
project in Chester.” Pennsylvania governor Ed
Rendell, harness racing commissioner Ed Rogers
Jr., state senators and other dignataries attended
the groundbreaking.
REALITY REPLACES RHETORIC
After some earlier rhetoric castigating potential
investors in Vernon Downs for not putting up
$38 million or so to buy the track, horsemen’s
counsel Joe Faraldo told the horsemen this week
that “there’s very little we can do” and they
would have to resign themselves to waiting for
whatever is going to happen. “Unless we have
$38 million to buy this joint,” he said in a meeting with Vernon’s horsemen, “there’s very little
we can do. This is your reality. This is what
you’re stuck with here. Absent someone coming up with the money to buy this place, I don’t
see this place getting a license. I think you’re
better off knowing the truth. While Shawn Scott
owns 52% in this corporation or even more than
10%, this corporation is not going to get a racing license. It’s not going to get a simulcasting
license. It’s not going to get anything. It’ll take
a removal of Scott’s interest.” Real estate magnate Jeff Gural, meanwhile, says the cost of reopening Vernon has risen from $8 or $9 million
to $15 million, but says he still is interested in
buying the track and its racino. Gural has submitted a plan to bring Vernon out of
bankruptcy, which is to be heard by the
judge handling the case next month.
COULD TEXAS BE OVERRATED?
If nothing else, its legislature could be. Newspapers have blasted the legislature for its do-nothing record in the session recently concluded, and
Ft. Worth Star-Telegram racing writer Gary West,
was one of the voices, saying the legislators quit
“without tossing so much as a crumb toward horse
racing.” Hope springs eternal, however, and Lone
Star Park and TRA president Corey Johnson
thinks the industry had the votes to pass VLTs,
but “ran out of time” according to West’s story.
He quoted Johnson as saying, “I think we
can accomplish this.”
>
>
RACING THRU THE COURTS
In horse racing these days, drivers need helmets
and safety vests and track operators need lawyers. Here are just a few reasons why:
In Michigan, HTA member Northville Downs has
filed an appeal of a license granted to Magna Entertainment to build a huge thoroughbred racing
operation just north of Detroit’s Metropolitan airport. Northville argues that a third track in the
Detroit metropolitan area will oversaturate the
market and force Northville, now in its 61st season, to close. It points out that it is one of its
host city’s 10 largest sources of revenue, contributing more than half a million dollars to
Northville last year. Northville attorney Ed
Draugelis said in the appeal, filed in Wayne
County Circuit Court, that, “With the competition from casinos (in both downtown Detroit and
Windsor across the Detroit river) we think the
area can really only support two tracks.” The
appeal was delivered to the office of the state
racing commissioner, and the state must answer
the appeal within 21 days.
In Yonkers, New York, Yonkers Raceway faces
another challenge in getting underway with its
racino. A city economic development agency met
this week behind closed doors to discuss involving itself in litigation challenging the Division of
Lottery’s review of the $155 million project that
is scheduled to place 5,500 VLTs at Yonkers. The
city of Yonkers has been negotiating with the state
and track for a steady revenue stream from the
racino. The latest action, by the Industrial Development Agency, came in executive session at
the end of an open meeting, and the agency’s lawyer said the Open Meetings Law permits closed
sessions to discuss “proposed, pending or current litigation.” He would not reveal what
was said in the session, but did say no
action was taken.
June 8, 2005
In Nevada, Gov. Kenny Guinn signed a bill sought
by Cantor G & W, an affiliate of Cantor
Fitzgerald, which will enable the company to use
its wireless gambling technology in Vegas hotels
and casinos. The device will permit gamblers to
use the wireless devices from casino bars, pools,
and other hotel and casino facilities. It was approved by the legislature last week and will allow
gamblers to place bets from public areas in casinos with at least 100 slots or other games.
In Chicago, Nick and Sherri Boscarino invoked
Fifth Amendment rights against self-incrimination
in the Emerald Casino license revocation proceedings. Boscarino has been accused of being
“a known associate of organized crime” and a
trust in his wife’s name helped trigger the Illinois
Gaming Board investigation that sank the Emerald. Boscarino currently is out on bond on a 2004
insurance scam conviction.
In California, a third complaint has been filed by
the California Horse Racing Board against Julio
Canani, the trainer of Sweet Catomine, alleging
violations of board rules concerning insuring the
condition of a horse and conduct detrimental to
horse racing. Sweet Catomine was the favorite
in the Santa Anita Derby that was spirited off the
track for treatment during the week preceding
the race.
And this tidbit. While some racing leaders are
trying to reason with Arizona senator Jon Kyl on
his proposed Internet gaming bill that does not
include an exemption for racing, the River City
Group’s I Gaming News reveals that the American Gaming Association is delighted with that
aspect of the bill. It quotes Frank Fahrenkopf,
president of the AGA, as saying his organization would not support any legislation that creates “competitive advantages” for pari-mutuel
wagering operations, and the AGA’s lobbyist
says it will not oppose the Kyl bill as currently proposed.
June 9, 2005
HORSE SLAUGHTER: ONE DOWN
A COMPROMISE IN MAINE?
Despite strong opposition by House Agriculture
Committee chairman Bob Goodlatte, Republican
of Virginia, proponents of ending commercial horse
slaughter in the U.S. won a resounding victory yesterday when Rep. John Sweeney, Republican of
New York, outmaneuvered Goodlatte and the
House passed, 269-158, a bill to strip funding from
inspecting horse meat, effectively barring commercial slaughter, even though the meat is not sold in
the United States.
Maine is not Florida, where legislators and the
governor ignore voters’ wishes and go their own
merry way. The governor in Maine, John Baldacci,
dislikes gambling, like Jeb Bush, but apparently
is willing to let voters make their voices heard.
Baldacci indicates he still plans to veto the measure passed by the legislature to allow a tribal
racino and harness track in depressed Washington county, but after nearly two hours of
talks with tribal leaders he appears willing to
have the people vote on a referendum on the
issue. The tribal leaders were jubilant after
the meeting, which they called “fruitful and
positive,” and said they looked forward “to returning to the table.” Without a veto, the bill - LD1573 -- would require only a local vote before a racetrack casino with as many as 1,500
slots could open in a community. The House
passed the measure 87-46, but the Senate vote
was 19-15, not enough for a veto override.
Baldacci said he would postpone his veto until
later this week as “a reflection of respect.”
Washington county is the poorest in Maine, and
the Passamaquoddy tribe proposes to split any
gaming revenue with other tribes in the state.
One state senator, former Speaker of the House
Libby Mitchell, said, “For the life of me, I can’t
understand why it’s OK to have a racino in Bangor
but not in Washington county and for our tribes.” A
Republican senator from Washington county said
there was “stunned disbelief” that the governor, who
co-sponsored a casino bill 10 years ago as a state
senator, has changed his mind on gambling.
The measure now goes to the Senate, where John
Ensign, the Nevada Republican and a veterinarian, leads the fight to get a similar bill passed.
Sponsors of the House bill, in addition to Sweeney,
included Rep. Ed Whitfield, husband of Connie
Whitfield, vice chair of the Kentucky Racing Authority and chairwoman of the state’s Drug Testing Council; Jack Spratt, Democrat of South
Carolina; and Nick Rahall II, Democrat of West
Virginia. The ban as passed will force a yearlong shutdown of two commercial slaughterhouses in Texas and one in Illinois, where some
65,000 horses a year are slaughtered for the
overseas market. If the Senate approves, the
measure will become effective October 1, the
start of a new fiscal year. That timing is the
result of Sweeney getting the measure attached
as an amendment to a Department of Agriculture spending bill. Sweeney and Whitfield have
been stymied for two and one-half years by
Goodlatte, who again argued -- this time unsuccessfully -- against the measure. The president
of the Humane Society of the United States,
Wayne Pacelle, said of yesterday’s vote, “This
is the beginning of the end of horse slaughter
for human consumption in the United States. We
knew it had tremendous support. It was
always just a question of getting a vote.”
Yesterday Sweeney, Whitfield and their
colleagues got it.
“HANDS OFF INTERNET BETS”
Nearly 30 states, including California, New
York, Kentucky, Michigan and Delaware, are
joining forces to urge the federal government
to keep Internet betting out of international
trade agreements. Their attorneys general
are petitioning to protect states’ rights on
the issue.
Stanley
Paul
J. Estok,
F. Bergstein,
Editor Editor
MAINE GOV. VETOES RACINO
Maine Gov. John Baldacci on Thursday vetoed
the bill that would have allowed a tribal-run harness track with slot machines in the state’s Washington County. Under the legislation, the
Passamaquoddy Tribe would have been permitted
to operate a racetrack with up to 1,500 slot machines. When the legislature approved the bill
last week, neither the House of Representatives
nor the Senate had the two-thirds majority needed
to override a gubernatorial veto. Supporters of
the racino now are pushing for a statewide referendum on the issue.
COURT ORDER ON EMERALD
An Illinois county judge has ruled that the Illinois
Gaming Board must renew the bankrupt Emerald
Casino’s gaming license and allow it to relocate to
Rosemont. Cook County Judge Sophia Hall issued an order that says the Illinois Appellate
Court’s decision in 2003 that gambling regulators
were required to renew Emerald’s license should
be followed. Emerald’s attorney says the ruling
means a hearing aimed at revoking the casino’s
license should stop. But Gaming Board attorneys
contend the ruling does nothing to stop that hearing. The board has been trying to revoke
Emerald’s license since 2001 over concerns that
company officials lied to regulators and some investors allegedly have ties to organized crime.
VLT BILL MOVES TO NJ SENATE
A bill that would allow as many as 5,000 video lottery terminals at the Meadowlands Racetrack
moved to the full state Senate on Thursday. The
Senate Wagering, Tourism and Historic Preservation Committee heard three hours of testimony,
including presentations of contrasting studies that
estimated how many customers would be
drawn away from Atlantic City by slots in
New York, Pennsylvania and at the Meadowlands. Acting Gov. Richard Codey and
June 10, 2005
other northern New Jersey Democrats have led
the push for VLTs at the Meadowlands. So much
so that Codey’s proposed budget for 2005 estimates $150 million in revenue to the state this year
and $300 million next year. A study by Christiansen
Capital Advisors found that VLTs at the Meadowlands would have minimal impact on Atlantic City
compared to the expected damage from slot machines in neighboring states. “It’s a changed market for Atlantic City and nothing can reverse that,”
Eugene Christiansen said. “Meadowlands VLTs
will help prevent the New Jersey population from
crossing the state borders into New York and Pennsylvania.”
A study performed by
PricewatershouseCoopers, commissioned by the
New Jersey Casino Association, found exactly the
opposite. For now, the bill is stuck in the Senate
and facing an uncertain future in the House. The
sponsor of the bill, Paul Sarlo of Bergen County,
believes a compromise could still be reached.
“This budget still relies on $110 million from
VLTs,” Sarlo said. “Where are the alternatives?”
YONKERS TO CLOSE JUNE 25?
According to a report in the New York Daily News,
Yonkers Raceway has filed a request with the New
York State Racing and Wagering Board to end live
racing at the conclusion of the program on June
25 and simulcasting following the last race on June
26. The plan is to stay shut down four months in
order to complete the massive reconstruction necessary for VLTs to be installed. The request will
be presented to the Board as part of its regularly
scheduled monthly meeting on June 16.
MAGNA & ODS SETTLE IN MD.
The Baltimore Sun reports that a lawsuit between
Magna Entertainment and ODS Technologies was
settled out of court this week. The suit stemmed
from Magna’s desire to be released from its contract with TVG. Although terms were not disclosed, current broadcast and wagering practices will continue.
Stanley
Paul
J. Estok,
F. Bergstein,
Editor Editor
June 13, 2005
SPOOR JOINS FLAMBORO
FLA. TRACKS SEEK DISMISSAL
Flamboro Downs announced that effective today,
Gerard Spoor has been appointed president and
general manager of the Dundas, Ontario, racetrack. Spoor brings more than 30 years of experience to his new post. A former vice president and
general manager of the Ontario Jockey Club (now
Woodbine Entertainment Group), Spoor most recently held the positions of Director of Autotote
Netherlands and regional manager of Autotote for
northern Europe. “We welcome Gerard to the
MEC team and we believe his experience will be
a substantial asset to Flamboro Downs, the Ontario
harness racing industry and to MEC,” said Don
Amos, executive vice president and chief operating officer of Magna Entertainment Corp.,
Flamboro’s parent company.
Broward County’s racetracks are preparing to
appear before a Tallahassee judge this month to
ask him to dismiss an anti-gambling group’s lawsuit designed to block them from adding slot machines to their facilities. A hearing is set for June
21 before Leon County Court Judge P. Kevin
Davey. The anti-gambling group No Casinos filed
the lawsuit on May 23 to get a judge to forbid the
tracks from installing slot machines unless the
state legislature passes regulations. The next day,
track operators filed suit in Broward County asking a judge to let them have slots immediately in
spite of the legislature’s inability to pass regulations. Attorneys for the tracks argued that the
anti-gaming group has no standing to weigh in on
whether tracks should get slots now or not, and
that in any case, the matter should be heard in
Broward County, since the case is about slots in
Broward County.
GAGLIANO JOINS JOCKEY CLUB
Jim Gagliano has been named executive vice
president and chief administrative officer for The
Jockey Club, the breed registry for thoroughbred
horses. According to a release from The Jockey
Club, Gagliano will be “responsible for overseeing all administrative activities for The Jockey
Club and its family of companies and will work directly with business unit heads to develop and
implement company-specific business plans.”
Gagliano, who resigned as executive vice president of Maryland racing operations for Magna
Entertainment Corp. (MEC) to accept the position at The Jockey Club, joined Magna in 2002 as
president of MEC OTB and group vice president
of MEC Northern Group, which includes racetracks in Michigan, Oregon, Ohio and Pennsylvania. Prior to joining MEC, Gagliano spent four
years with Greenwood Racing Inc. as executive
vice president and general manager of Philadelphia Park and 10 years with the New Jersey Sports
and Exposition Authority. In his new position, Gagliano will be based at The
Jockey Club’s New York office.
NY GOV. HAS A NEW PLAN
New York Gov. George Pataki, who had proposed
as many as five casinos for the Catskills in his
attempt to settle the Akwesasne Mohawks’ 23year-old land claim against the state, is now planning just one. “At this point we’re only looking at
one casino,” Pataki spokesman Kevin Quinn said.
“We’re continuing negotiations on the other settlements. The agreement with the Mohawks entitles
them to build a casino in Sullivan County, provides
them with more than $100 million and the right to
nearly double the size of their reservation in northern New York. The Mohawk settlement, signed
by Pataki and tribal leaders in February, requires
the approval of the state legislation and Congress.
In other Indian gaming news from New York, the
Oneida Tribe, owners of the Turning Stone Casino
in Verona, New York, released a list of investments
as part of a tax valuation. According to the
tribe, the Oneida’s have spent roughly $343
million over the past decade.
Stanley
Paul
J. Estok,
F. Bergstein,
Editor Editor
KY LEGISLATOR BAILS ON BILL
Expressing frustration that Kentucky’s racing industry could not present a united voice on the details of a casino gaming proposal, House Speaker
Pro Tem Larry Clark, a Louisville Democrat, told
the racing industry that it “can get another jockey,”
according to a story in the Kentucky Post. Just
last week Clark, who has been a proponent of casino gaming, sent a letter to fellow lawmakers urging support for gaming legislation which he now
says he has no plans to introduce. In Clark’s letter, he used figures from the Legislative Research
Commission of the Kentucky Assembly to estimate
that casinos in the Bluegrass State could generate $1.25 million in revenue and $430.5 million in
state taxes annually. But as of Sunday, Clark
emphasized that he has no plans to introduce the
legislation.
REFERENDUM BILL IN MAINE
Following a veto of legislation by the governor of
Maine, the Maine House of Representatives has
indicated they want voters to decide on the issue
of whether slot machines should spin at a racetrack-casino in Washington County. The move is
the first in an effort to push the state toward a fall
referendum on the expansion of legalized wagering. House members voted 97 to 40 Monday to
hold a November referendum on the proposal by
Maine’s Indian tribes to open a harness track with
a 1,500-machine casino. The senate is expected
to vote on a proposed statewide referendum today.
NM GOV WANTS JOINT BOARD
New Mexico Gov. Bill Richardson has proposed
combining the Gaming Control Board and the
Racing Commission, creating a single regulatory
agency. In announcing the proposal,
Richardson said the consolidation would
save money and streamline the regulatory
process without sacrificing oversight of gam-
June 14, 2005
bling. The Gaming Control Board, with a budget
of $5.2 million and more than 50 employees, regulates slot machines at racetracks and at veteran’s
and fraternal organizations. The Racing Commission, with 17 employees and a $1.9 million budget,
regulates pari-mutuel wagering, drug testing and
licensing for live and simulcast racing at the state’s
five racetracks. Richardson has ordered the
boards and staffs of the two agencies to develop a
preliminary plan over the summer. A special advisory committee will then review and revise the
plan, with the goal of being ready to introduce the
legislation required to carry out the merger during the 2006 session.
NO OAKLAND CASINO...FOR NOW
Once again, it appears that an effort by a California Indian tribe to build a casino in an urban area
has failed. The Lower Lake Rancheria Koi
Nation’s proposal to build a huge gaming complex
near the Oakland International Airport has apparently died with the expiration of a sales agreement
between a developer and the tribe. Despite an
offer to pay $30 million per year for 20 years to
mitigate environmental and traffic problems, the
project was opposed by the Oakland, Alameda and
San Leandro city councils. The failure of the proposal follows the abandonment of a similar plan
by the Lytton Band of Pomo Indians, which wanted
to build a huge casino in San Pablo.
HARRAH’S CLOSES MERGER
Harrah’s Entertainment Inc., soon-to-be-built HTA
member Harrah’s Chester Casino & Racetrack,
on Monday closed its $6.8 billion purchase of rival Caesars Entertainment, creating the world’s
largest casino operator. The combined company
has nearly 100,000 employees and $9 billion in
annual revenue from 40 current properties, including riverboats and hotel-casinos in 12 states.
Harrah’s now controls six Las Vegas properties, compared with the number two gambling
company, MGM Mirage.
USTA SAYS NO TO ADVANTEDGE
The United States Trotting Association has withdrawn its approval of the Evolution Racing’s
AdvantEdge Model 6.8 sulkies, as continued collapses and breakdowns of the bike have led to
concern over potential injuries or death. Tom
Harmer, the head of Evolution Racing and a trainer
and driver himself, announced he has issued a recall on all 368 race bikes in use across the country
“in the interest of safety.” Harmer’s action
came after drivers at the Meadowlands voted
not to use the bike and the Indiana Racing Commission banned its use after an accident at Hoosier Park. An AdvantEdge also collapsed at
Pocono Downs. Both arches and shafts have
broken in 13 reported failures. Paul Consol,
speaking for Meadowlands’ horsemen, said,
“We don’t want to see anyone get hurt. There
have been anywhere from 6 to 15 incidents of
them falling apart, not from accidents but just
breaking. We don’t want to wait until someone
is hurt. Even if you’re not driving one, if it
breaks in front of you, it’s still a problem.” John
Brennan, a USTA director, said, “All the drivers like the bike, but it’s a safety question.”
There have been two breakdowns of the bike
in races at the Meadowlands, one on January
14 and another June 1. USTA’s withdrawal of
approval of the AdvantEdge means that it
needs to be retested and reapproved, and the
USTA also is conducting further testing and a
review of the race bikes.
ONEIDAS FACE FORECLOSURE
Oneida county in New York has begun foreclosure proceedings on dozens of properties owned
by the Oneida Indian Nation, trying to recover
more than $5 million in delinquent taxes. The
Oneidas, who own the hugely prosperous
Turning Stone casino and entertainment
complex, also own 284 parcels in the
county, mostly in the town of Verona, and the
June 15, 2005
county mailed notices to 59 of them.
Oneida county also had gone to court in April to
foreclose on 98 parcels owned by the Nation, and
a hearing on that matter is scheduled for July 18.
Both actions in Oneida county, and another in
Madison county involving some $3 million in
taxes, came after the U.S. Supreme Court ruled
in March that the Oneida Nation must pay property taxes in Sherrill, NY. Last Friday, a highranking Department of the Interior official wrote
to the Oneidas, telling them that the high court’s
decision “unmistakably” means the lands are taxable. The Oneidas contend that despite the Supreme Court decision, the land remains part of
their reservation and cannot be taxed. They own
some 17,000 acres in the two counties, and asked
the Department of the Interior to place all of it in
trust, which would remove it from all local control and taxes. Interior declined, saying the land
would not be taken into trust unless the back
taxes, totaling some $8 million, were paid.
A SAD SITUATION IN SWEDEN
After Noel Daley, who trains the top trotter
Mr. Muscleman, was arrested for illegal possession of drugs at his training center, Hans
Lindskog, the racing manager at Solvalla racetrack
in Stockholm, Sweden, withdrew an invitation to the
owners, Adam Victor and his son, to race their trotter in Sweden’s most important race, the Elitlopp.
After Mr. Muscleman clearly established himself
as the best trotter in North America, pressure at
Solvalla built on Lindskog. Last Sunday, at
Charlottenlund Racetrack in Copenhagen, where
the Copenhagen Cup is contested every year following the Elitlopp, Lindskog announced he was
quitting the Solvalla job and probably would return to Swedish television, his former job. Meanwhile, in the charade that is part of North American racing, Mr. Muscleman raced at Woodbine with
Chris Ryder listed as trainer. In an interview
after the race, his owner said on television,
“Noel has done a great job with this horse.”
THE TWO BEST ARE OUT
In a twist of ironic timing, harness racing and thoroughbred racing lost their brightest stars in one
week’s time. After the announcement of
Ghostzapper’s retirement, taking the world’s best
runner from the scene, harness racing lost its 2004
Horse of the Year, the brilliant pacing mare Rainbow Blue, to a tendon tear. Now four, Rainbow
Blue has won 30 of 32 lifetime starts, including
her last 13 races in a row, and is sidelined with
earnings of $1.4 million. She is four for four this
year, and was scheduled to start tomorrow night
at the Meadowlands in the $215,000 Lady Liberty
Pace. Trainer and co-owner George Teague says
he will seek second and third opinions, but at
present it appears the great mare will not race
again this year.
DALEY GETS ‘SUPERVISION’
Trainer Noel Daley, charged by New Jersey state
police with possession of hypodermic needles and
syringes and possession of prescription drugs without a prescription, gets off with an $833 fine and a
year of court supervision. Judge Bonnie L.
Goldman of Chesterfield Township Municipal
Court granted Daley a conditional discharge,
meaning no plea or admission of guilt is entered,
and if no additional offenses are committed during a specified monitoring period, the charges
are dismissed. Daley’s attorney said he had intended to go to trial, but the program accepted
was available, and, “It’s just a lot more cost
effective and we can on with life.” He claimed
the items seized by State Police on March 2 at
Daley’s aptly named Magical Acres were obtained through a veterinarian and administered
by a vet.
In Illinois, meanwhile, the Illinois Racing
Board relicensed Agostino Siciliano, who
had been given a lifetime suspension in
1987 after urine tests on his horses showed
June 16, 2005
21 positives for Etorphine, or elephant juice.
And in Kentucky, in a move not unexpected, the
state HBPA has resorted to an end run to avert
changes proposed by both the state’s Drug Testing Council and the Kentucky Racing Authority.
The horsemen have appealed to their legislative
friends, and according to bloodhorse.com House
Speaker Larry Clark, a member of the Interim
Joint Committee on Licensing and Occupations,
wants the staff to get answers on whether all interested parties have had a chance to be heard, and
whether the national Racing Medication and Testing Consortium’s standards need to be adopted in
total in the Bluegrass. Clark also is inquiring into
the drug council’s budget. Sound familiar?
UGLY TIMES IN NEW YORK
When government agencies issue reports,
confirming or refuting them becomes a task for
the accused, and black headlines pour forth.
They were jet black today after New York state
comptroller Alan G. Hevesi called the New York
Racing Association “the poster child for mismanagement and corruption,” and claimed NYRA
violated state law and its own policies by awarding no-bid contracts during a 2-year audit period covering 2002-2004. Hevesi said NYRA “is
the worst agency of all, in my experience.” One
of his charges was that NYRA awarded a no-bid
contract for $797,913 to a Web services company owned by the daughter and son-in-law of
Barry K. Schwartz, the former NYRA chairman
and CEO, and called for his resignation along
with other directors who served before the appointment of the monitors. Schwartz, responding to the articles, called Hevesi a liar, saying
that contract was bid out and asking, “How does
somebody this dumb get a job in this state?” We
have a question of our own. How does MGM
Mirage, which announced today it would manage a 4,500-unit VLT facility at Aqueduct, get
that lush assignment in New York without
bidding for the contract?
June 17, 2005
GURAL OFFERS VERNON PLAN
SARATOGA MAY BUILD HOTEL
Major New York City realtor and harness horse
owner and breeder Jeff Gural has submitted a new
Vernon Downs plan to federal bankruptcy court.
If accepted by the court and all creditors, Gural
thinks Vernon could be back racing by late July
or early August. Under the plan, Gural and Track
Power of Canada would invest some $15 million
to get the track out of bankruptcy. The pair
would purchase all of the stock of Mid-State
Raceway, Vernon’s parent, and eventually current stockholders would be able to reinvest as
long as they are licensed by the New York State
Racing and Wagering Board. Gural explained
his plan to the Oneida Dispatch, telling the paper, “It basically provides that we would be paying everyone virtually 100 cents on the dollar to
the creditors; however, we would be stretching
out the existing mortgage on the property over
eight years. Also, essentially we are buying all
of the stock of Mid-State Raceway; however,
we are allowing those stockholders who are interested in buying back into the company an
opportunity to acquire a portion of the stock at
a very, very low discount rate, provided that they
can get a license.” For the plan to be accepted
by the bankruptcy court, it must be approved by
a majority of the creditors, who have 30 days to
review the plan. Gural says he has some ideas
about Vernon, but “it’s premature to announce
anything.” The track currently is open for training, and qualifying races are being held, but no
racing has been conducted in the last year. Gural
says if his plan is accepted, it would provide immediate payment to horsemen who received bad
purse checks last July. He already has loaned
the track $1.2 million, and Mid-State accepted
Gural’s offer of $8.5 million to reopen the track,
but the bankruptcy court has not yet accepted
that proposal. A court date of June 21
now will be moved back to allow creditors time to study the proposal.
City officials in Saratoga Springs, NY, announced
today that HTA member Saratoga Gaming and
Raceway is considering building a 144-bed hotel and entertainment facility near the Jefferson
street entrance to the track property. Track
president Daniel Gerrity declined to comment
on the report, but said, “We’re getting close to
knowing what we’re going to do,” adding that
he already had met with architects and could
have an announcement within two weeks.
Saratoga Springs’ mayor Michael Lenz said of
the project, “If it brings more people to our city
and our downtown, we want to see this happen.
It tends to be a natural extension of the activities going on there, but we don’t want it to detract from our downtown.” The city has been
briefed on the plans, which apparently also include an 18,000 square-feet arena with fixed
seating. Gavin Landry, executive director of
the Saratoga Convention and Tourism Bureau,
called that idea “very logical,” adding that it
could be “very appealing, reaching out to niches
that are not being served.” The racino, which
is drawing some 50,000 people a week to its
1,324 VLT terminals, has created 300 jobs, and
another 200 are involved in the track operation.
NOW THIS IS RACE CALLING
As an old track announcer, the editor is qualified
to pass judgment on good calls and quick thinking.
Vic Stauffer, Hollywood Park’s racecaller, deserves
five stars. When an earthquake shook his booth
and the press box yesterday, Stauffer, calling the
second race, said, “We are in the midst of an earthquake. I want you to know that I love you all, and
horse racing was my first love.” He then added,
“I better make this my greatest race call,” and he
did. As Dark Beauty and Pleasant Thunder battled
to the wire, Stauffer said, “These two come to
the wire in the shaker. It’s a photo. I don’t
know who won, nor do I care.”
June 20, 2005
ACCORD ON CANADIAN BETS
The Canadian Pari-Mutuel Agency has relented
in its earlier refusal to allow Canadians to bet into
U.S. pools, agreeing to a compromise with tracks
that will allow commingled pools with warnings to
Canadian bettors of what the agency perceives as
a challenge to the integrity of the pools. The
CPMA previously had refused because of cancel
delay policies at U.S. tracks, which the agency
believes could lead to manipulation of odds. Under the agreement, the agency is drafting a notice
that will advise bettors of risks related to the 3- to
10-second cancel delays in effect at some U.S.
tracks. Ron Nichol, director of coordination and
program standards for the CPMA, told Daily
Racing Form’s Matt Hegarty, “We want to make
sure that the fans know that there are possible
risks inherent in the U.S. pools that are not inherent in the Canadian pools.” The CPMA does
not allow cancel delays at Canadian tracks.
Woodbine Entertainment has been eager to introduce common pool betting on U.S. racing
since Congress removed the mandatory 30%
withholding tax on foreign bets made at U.S.
tracks, but the CPMA’s permission does not
mean immediate implementation. Track, tote
and CPMA officials met last Friday to work out
details, but Nichol would not put a dateJune 21,
2005
MAJOR VICTORY IN FLORIDA
A circuit court judge in Broward county, Florida,
threw out the state’s case in the matter of slots at
tracks today and told the county’s four pari-mutuel
operations that they were free to begin operating
slot machines by July 1 without fear of prosecution from the state’s attorney’s office. The judge
said a constitutional amendment approved by voters last November overrode the state statute prohibiting slots. Obviously annoyed at the
legislature’s dereliction in ignoring voters’
wishes, Judge Leroy Moe said that if the
state or county did not issue regulations on
hours of operations, type of machines and distribution of revenues by that date, he would. He said
the state legislature violated the intent of the
Amendment 4 of the Florida state constitution that
allowed voters in Broward and Miami-Dade counties to decide whether they wanted slots at their
pari-mutuel sites. Pompano Park announced it
would wait until its new racino building is completed
to begin slots operations, but Hollywood Greyhound Track said it would begin offering slots
within a month or two. A Miami Herald photographer was enroute to Pompano to get a picture of
general manager Dick Feinberg celebrating atop
a pile of structural steel resting on the parking lot
awaiting construction. It is doubtful governor Jeb
Bush is celebrating, for the decision is likely to
complicate his federally mandated negotiations
with the Seminole Indian Nation, now clamoring
for slots instead of VLTs. The attorney who is
general counsel for the Florida Prosecuting Attorneys’ Association, representing the state’s attorney, had asked Moe for a dismissal and a postponement because he couldn’t attend the hearing,
but Moe denied both motions. The state can appeal Moe’s decision, but as of press time no word
from either the state’s attorney or the governor
as to that possibility. Meanwhile, exultation understandably is the order of the day in south
Florida.
NEW CAL-EXPO SEEKS HORSES
In an innovative push to lure new horses to California, the new operators-to-be of racing at Sacramento, Cal Expo Harness and the Sacramento
Harness Association, along with the California
Harness Horsemen’s Association, have announced
a bonus incentive plan. When any new horse over
two years of age makes its first start, the owner
will receive a $500 bonus. When it makes its 10th
start, the owner will receive another $500. And
the owner of the horse with the most wins between
Aug. 6 and Dec. 30 will receive a $10,000
bonus, as will the owner of the new horse with
the most money earnings during that period.
BRUNO
FLEXES
HIS
June 21, 2005
MAJOR VICTORY IN FLORIDA
NEW CAL-EXPO SEEKS HORSES
A circuit court judge in Broward county, Florida,
threw out the state’s case in the matter of slots at
tracks today and told the county’s four pari-mutuel
operations that they were free to begin operating
slot machines by July 1 without fear of prosecution from the state’s attorney’s office. The judge
said a constitutional amendment approved by voters last November overrode the state statute prohibiting slots. Obviously annoyed at the
legislature’s dereliction in ignoring voters’ wishes,
Judge Leroy Moe said that if the state or county
did not issue regulations on hours of operations,
type of machines and distribution of revenues by
that date, he would. He said the state legislature
violated the intent of the Amendment 4 of the
Florida state constitution that allowed voters in
Broward and Miami-Dade counties to decide
whether they wanted slots at their pari-mutuel
sites. Pompano Park announced it would wait until its new racino building is completed to begin
slots operations, but Hollywood Greyhound Track
said it would begin offering slots within a month
or two. A Miami Herald photographer was
enroute to Pompano to get a picture of general
manager Dick Feinberg celebrating atop a pile
of structural steel resting on the parking lot
awaiting construction. It is doubtful governor Jeb
Bush is celebrating, for the decision is likely to
complicate his federally mandated negotiations
with the Seminole Indian Nation, now clamoring
for slots instead of VLTs. The attorney who is
general counsel for the Florida Prosecuting Attorneys’ Association, representing the state’s attorney, had asked Moe for a dismissal and a postponement because he couldn’t attend the hearing, but Moe denied both motions. The state can
appeal Moe’s decision, but as of press time no
word from either the state’s attorney or the governor as to that possibility. Meanwhile,
exultation understandably is the order of
the day in south Florida.
In an innovative push to lure new horses to California, the new operators-to-be of racing at Sacramento, Cal Expo Harness and the Sacramento
Harness Association, along with the California
Harness Horsemen’s Association, have announced
a bonus incentive plan. When any new horse over
two years of age makes its first start, the owner
will receive a $500 bonus. When it makes its 10th
start, the owner will receive another $500. And
the owner of the horse with the most wins between
Aug. 6 and Dec. 30 will receive a $10,000 bonus,
as will the owner of the new horse with the most
money earnings during that period.
BRUNO FLEXES HIS MUSCLES
Joe Bruno, The Force in the New York legislature as Senate Majority Leader, announced
yesterday that it will not be one casino in the
Catskills, as proposed by Governor George
Pataki, but three, or nothing. Some lawmakers and lobbyists protested that a three-casino bill would help the Oneidas of Wisconsin,
a tribe that has Bruno’s son Kenneth as a lobbyist on its payroll. Be that as it may the
Ottaway News Service says Bruno’s opposition “puts Pataki’s proposal to settle the St.
Regis Mohawks’ land-claim lawsuit on thin
ice.” The legislature is nearing the end of its
session, and before Bruno made his “threeor-none” announcement, it seemed Pataki’s
wish for one casino would pass. One state
senator, Eric Schneiderman of Manhattan, told
Newsday the usual 11th hour frenzy in the
state capitol had been replaced by a desire to
end the session on a high note with the first
on-time budget in 20 years. “They just seem
to want to get out of town,” Schneiderman said
of his colleagues. “If they stay here any
longer, they’ll get into a fight about something.” His statement was prescient. Joe
Bruno now has given them something to
fight about.
June 22, 2005
GOOD HORSES, GOOD HANDLE
AND VERY BIG NUMBERS
Last Saturday’s North America Cup, carrying a
purse of $1.5 million Canadian and others of
$565,000, $342,100 and $100,000, also produced
big numbers on the business side....in fact, the biggest in the 22-year history of the Pepsi North
America Cup. Total wagering reached
$3,820,598, topping the previous record set in
2002 by almost $400,000. Jamie Martin, vice
president of Standardbred Racing for Woodbine
Entertainment, said, “It’s rewarding for all involved to see our biggest event result in a record
handle and outstanding ontrack attendance.” The
program concluded Woodbine’s spring meeting,
with action now moved to Mohawk Raceway.
During the Jan. 1 - June 18 session, Chris
Christoforou was the leading race winner with 144
victories, topping Luc Ouellette’s 135 and Rick
Zeron’s 131, and also was the leading percentage driver with a .369 slugging average;
Ouellette was the leading money-winner with
$2,933,085 won by his mounts; Joe Stutzman won
99 races to lead all trainers and also topped
money-winnings with $1,815,603 won by his
horses; and Bob McIntosh was the leading percentage trainer with a soaring .507 in-the-money
percentage. Zeron, third in wins and fourth in
money won, will have to give a sizeable piece back
to the government. The Ontario Racing Commission has fined him $25,000, and suspended
him for six weeks, for an unspecified violation of
racing conduct rules at Woodbine March 13.
Trainer Richard Moreau was fined $15,000 earlier, and handed a 15-day suspension with Zeron,
for “Conspiring with another participant to attempt to commit an act injurious to racing, specifically attempting to cause a witness to change
or retract their evidence as it pertains to an incident at Greenhawk Tack Shop.” Moreau did not
appeal. Zeron did, and the commission
reduced his penalties, originally a
$35,000 fine and 10-week suspension.
According to a report from The Canada West
Foundation, government-run gambling in Canada
now is almost a $13 billion business. The report
says the country has some 87,000 gambling machines, 60 permanent casinos, and 33,000 lottery
ticket centers producing revenue for the government. Gambling-related profits of $6.3 billion now
approach what the government receives from taxes
on fuel and liquor, with gambling producing a profit
margin of 49.7%. Slots, anyone?
CASINO DEADLOCK IN NY?
With time running out on the session, legislators
in New York state are still far apart on casinos
in the Catskills, and James Odato, the Capitol
bureau chief of the Albany Times Union, says
the situation “creates the possibility that the session may end without settling Native American
land claims or an expansion of gambling.” As
reported yesterday, governor George Pataki
says he will not sign a bill for multiple casinos in
the mountains, and Senate majority leader Joe
Bruno says he will not allow legislation for just
one to pass. Bruno’s son works for one of the
Wisconsin tribes seeking a casino in return for
land-claim settlement. Another power in New
York, Assembly speaker Sheldon Silver, has
sided with Pataki, saying the case for the Wisconsin tribes still is incomplete. The president
of the New York State Building and Construction Trades Council has joined the Bruno camp,
calling for three casinos and saying, “It’s about
jobs.”
NEW HONORS FOR LAVERNE
HTA director LaVerne Hill, who has not missed
an HTA meeting in more than 40 years, has been
elected as the 21st inductee to the Little Brown
Jug Wall of Fame. Laverne was HTA’s Messenger winner in 2001 and has received a host of
other honors.
BIG NEWS IN PENNSYLVANIA
The Pennsylvania Supreme Court reaffirmed the
constitutionality of Pennsylvania’s slot laws yesterday, saying the legislature followed proper parliamentary processes in enacting it and it is constitutional. The full 51-page decision is on HTA’s
Web site this morning. The court concluded that,
“as a matter of law, there was a single unifying
subject to which most of the provisions of the act
are germane, the regulation of gambling.” The
court did throw out a section of the Gaming Act,
however, that gave the Gaming Control Board
power to override local zoning ordinances as to
where casinos will be located, saying the legislature did not provide adequate standards and
guidelines. It also ruled that a provision for $25
million a year to volunteer fire fighting companies, another for reimbursement to rural counties for forest lands, and allowing casinos to provide free and below-cost alcoholic drinks, were
not germane to the single subject of gambling,
and were prohibited. Although other legal challenges remain, yesterday’s decision removed the
biggest stumbling block in getting sRACING
LEGISLATION IN NY
Changes in racing law in New York are in the works
in Albany today, having already passed the Senate and possibly the House by the time this newsletter appears. The new legislation will:
Legalize the VLT contract between MGM and
NYRA for construction of a racino at Aqueduct,
and place the Lottery Division in control of the
issue instead of the Racing and Wagering Board.
Allow the ad hoc committee scheduled to review
the NYRA franchise, which expires at the end of
2007, to begin its deliberations immediately, instead of on or after Dec. 1 of this year. It
now must begin studying the issue on or
before Dec. 1 of this year. Gov. George
Pataki, Senate president Joe Bruno and
June 23, 2005
Speaker of the House Sheldon Silver each select
three members of the committee.
Create a five-person non-profit racing oversight
board that will monitor NYRA. Pataki gets to appoint three of the members, Bruno one, and Silver
one. This board will assume powers that the division of the budget currently hold in regard to capital expenditures and approval of NYRA’s bidding
process, will prescribe a plan of operation for
NYRA, and will have power to make recommendations on NYRA’s finances, budgets, accounting
systems and governance systems. This board
would succeed the thoroughbred racing capital investment fund.
Gives OTBs a tax credit on increases on in-state
handle over 2004.
Eliminates pari-mutuel taxes collected at Belmont
for the Breeders’ Cup meeting.
Leaves the Racing and Wagering Board intct, with
no new commission created.
ON THE HARNESS FRONT
In New Jersey, Senate Democrats abandoned for
now their quest of VLTs at the Meadowlands, acknowledging they had no chance to get the measure through the Assembly. The Hambletonian
Society, meanwhile, relocated from East Brunswick
to president Tom Charters’ hometown of
Cranbury.
In Ontario, Woodbine Entertainment chairman
and CEO David Willmot announced that Woodbine had found a suitable partner to develop the
huge land areas surrounding its Woodbine track,
and that plans for the undeveloped portion of its
700 acres would be finalized in the next few months.
The focus of construction will be west of the grandstand and is expected to include a hotel, conference center and theater seating several
thousand. The development will fulfill a longtime Willmot goal, and he said of the project,
“we are really excited and ready to proceed.”
June 24, 2005
RACING LEGISLATION IN NY
ON THE HARNESS FRONT
Changes in racing law in New York are in the works
in Albany today, having already passed the Senate and possibly the House by the time this newsletter appears. The new legislation will:
In New Jersey, Senate Democrats abandoned for
now their quest of VLTs at the Meadowlands, acknowledging they had no chance to get the measure through the Assembly. The Hambletonian
Society, meanwhile, relocated from East Brunswick
to president Tom Charters’ hometown of
Cranbury.
Legalize the VLT contract between MGM and
NYRA for construction of a racino at Aqueduct,
and place the Lottery Division in control of the
issue instead of the Racing and Wagering Board.
Allow the ad hoc committee scheduled to review
the NYRA franchise, which expires at the end of
2007, to begin its deliberations immediately, instead of on or after Dec. 1 of this year. It now
must begin studying the issue on or before Dec. 1
of this year. Gov. George Pataki, Senate president Joe Bruno and Speaker of the House Sheldon
Silver each select three members of the committee.
Create a five-person non-profit racing oversight
board that will monitor NYRA. Pataki gets to appoint three of the members, Bruno one, and Silver
one. This board will assume powers that the division of the budget currently hold in regard to capital expenditures and approval of NYRA’s bidding
process, will prescribe a plan of operation for
NYRA, and will have power to make recommendations on NYRA’s finances, budgets, accounting
systems and governance systems. This board
would succeed the thoroughbred racing capital investment fund.
Gives OTBs a tax credit on increases on in-state
handle over 2004.
Eliminates pari-mutuel taxes collected at Belmont
for the Breeders’ Cup meeting.
Leaves the Racing and Wagering Board
intct, with no new commission created.
In Ontario, Woodbine Entertainment chairman
and CEO David Willmot announced that Woodbine had found a suitable partner to develop the
huge land areas surrounding its Woodbine track,
and that plans for the undeveloped portion of its
700 acres would be finalized in the next few months.
The focus of construction will be west of the grandstand and is expected to include a hotel, conference center and theater seating several thousand.
The development will fulfill a longtime Willmot
goal, and he said of the project, “we are really
excited and ready to proceed.”
In New York, Yonkers Raceway announced it was
transferring the $390,000 Yonkers Trot and its
$114,000 companion Hudson Filly Trot to Freehold
Raceway in New Jersey for the second straight
year, as Yonkers undergoes construction for a
racino. The races will be contested Saturday, Aug.
20.
In Indiana, Hoosier Park closes its 61-day meeting tomorrow with the ninth edition of the $500,000
Hoosier Cup as the feature. In post position order, the field consists of Dawn Ofa New Day, Up
Front Jerry, Chevie Cash, Allamerican Inca,
Michael’s Marvel, Up Front Tornado, I Zee, Team
Hutch, Glittering Beaches, Odds On Duane, and
Beretta Hall.
In Ohio, as elsewhere, the dime superfecta is proving a popular bet at Scioto Downs. It’s popularity
is likely to increase after last night’s dime
super paid $3,518.35.
Stanley
Paul
J. Estok,
F. Bergstein,
Editor Editor
‘FRIENDS’ INITIAL REPORT OUT
Friends of New York Racing today released its
initial report, in which it proposes a new structure
for racing under which NYRA’s three tracks would
be run as a public-private partnership. As part of
the new structure, off-track betting corporations
could opt to become part of the enterprise. The
report projects that by replacing NYRA with the
new model, the State of New York would attract
capital investment of $500 million to $1 billion,
would produce more than $6 billion for education
in its first 10 years, and by increasing purses and
breeder awards, assure racing’s future in the state.
The release of the report comes just days after
the state legislature established an oversight board
that will monitor -- and could take over control of
-- operation of the NYRA tracks if NYRA does
not satisfactorily deal with its well-publicized legal problems. Meanwhile, Gov. George Pataki
will appoint a nine-member ad hoc committee to
come up with a process to put the NYRA tracks
up for bid. As an alternative proposal, Friends
offers a privatization model under which the state
would receive a flat rate up front for the right to
operate the tracks.
DECISION IN PA PUT OFF
The Pennsylvania Harness Racing Commission
will decide by October whether Centaur Inc. or
Ambrosia Enterprises will be eligible for the state’s
remaining harness track. The commission’s attorneys need time to investigate the financing of
the competing applicants, according to the Pittsburgh Tribune-Review.
IN MAINE, LOOKING TO 2006
Supporters of a proposed Maine harness track with
slot machines will try to place the idea on a statewide ballot in November 2006, unless the
state legislature beats them to it by scheduling a referendum this year. Backers of
the project outlined the new plan on Friday
June 27, 2005
after Gov. John Baldacci pledged to veto a bill that
called for a referendum this year. Baldacci had
said he would not veto the bill if the House and
Senate passed it by two-thirds votes. The House
met that threshold, but the Senate fell one vote
short.
SCOTT SUES OVER TIOGA
In the latest twist in the neverending saga of Vernon
Downs and majority owner Shawn Scott, All Vernon
Acquisition Company, Scott’s company, is seeking
to derail Tioga Park’s plans for a projected Memorial Day 2006 reopening as a racino. In a filing in
the New York State Supreme Court, All Vernon contends that since Tioga was not licensed as a harness track at the time New York’s VLT law was
enacted, the track is not entitled to a VLT license.
The owners of Tioga are Jeff Gural and TrackPower.
Gural and TrackPower have also become involved
in attempting to buy bankrupt Vernon Downs. For
his part, Scott has indicated he is turning to the
courts for a ruling so he will have a better idea how
to vote on the reorganization plans being floated
for Vernon. In the suit, Scott contends that Vernon
will be unduly devalued at a critical time by what
his filing called the false prospect of competition
with Tioga Downs. Scott also contends that it may
be Gural’s plan to close Vernon because the two
tracks, located approximately 140 miles apart, are
in the same geographic market for horses, horsemen and patrons. “This would have the effect of
thwarting the will of the Legislature, which specifically identified Vernon Downs as a track to be salvaged with the prospect of VLTs, by allowing the
‘tricky efforts’ of a downstate New York landlord to
manipulate the system to seize an opportunity intended to benefit harness racing for the benefit of a
few politically powerful Goliaths,” Scott said in his
filing. “Even if the goal of the Tioga Downs operation is not to shutter Vernon Downs, it is still critical to determine whether or not Tioga Downs is
entitled...to claim an entitlement...created to
benefit established harness tracks.”
Stanley
Paul
J. Estok,
F. Bergstein,
Editor Editor
HORSE IMPACT NEARLY $40 BILL
The horse industry in the United States contributes $39 billion in direct economic impact to the
U.S. economy and supports 1.4 million jobs on a
full-time basis according to a study released today by the American Horse Council. When indirect and induced spending are included in the equation, the industry’s economic impact reaches $102
billion. The study also estimates the horse population in the United States at 9.2 million. Entitled
“The Economic Impact of the Horse Industry in
the United States,” the study is being described
by the Horse Council as “the most comprehensive research document ever compiled on the
American horse industry.” Jay Hickey, president
of the Horse Council, said of the research, “This
study paints a portrait of an industry that operates in every corner of the country and contributes mightily to the American economy and culture.”
PARTYGAMING’S WINNING HAND
Online gaming company PartyGaming exploded
onto the London Stock Exchange on Monday with
a stock offering that shot up 11 percent by the end
of the trading day, giving the company a value of
more than $9 billion dollars. To give that number
a little context, the $9 billion market capitalization makes PartyGaming more valuable than casino giants like Harrah’s Entertainment and Wynn
Resorts, and nearly as valuable as MGM Mirage.
Although online gambling is illegal in the United
States, almost 90 percent of PartyGaming’s revenue and profit came from the U.S. last year.
Internet gambling was legalized in Great Britain
this spring. As a result of the troubled status of
’net gambling in the U.S., America’s large financial institutions, which generally play a large role
in London’s financial markets, were absent from
the offering, fearing possible repercussions
from authorities in the United States.
PartyGaming began with a price of $2.12 per
June 28, 2005
share and closed at $2.35 per share. The stock
offering will make PartyGaming’s founders and
many of its executives rich. Founder Ruth Parasol and her husband are cashing in stakes worth
$370 million each, and the company’s group operations officer, Anurag Dikshit, is selling shares
worth $720 million. The three will retain large
shares of PartyGaming even after selling stock.
BROWARD WILL APPEAL RULING
The Broward County state attorney announced that
he plans to appeal a circuit judge’s ruling ordering
county commissioners to enact regulations for slot
machines because state lawmakers failed to pass
such a measure. In a twist, however, State Attorney Michael Satz hired an outside lawyer to represent the state’s 20 prosecuting attorneys because
Attorney General Charlie Crist refused to get involved in the matter. While Florida’s attorney
general normally handles appeals for state attorneys and state agencies, Crist spokesman Joann
Carrin said that “the state attorney is the appropriate office to be the party in this suit.” As for
what comes next, Dan Adkins, owner of Hollywood
Greyhound Track, told the Palm Beach Post that
he believes the four Broward County pari-mutuel
operations, including HTA member Pompano Park,
will move ahead with slots once a “firm regulatory
structure is in place and the lawsuits settled.”
NOT DONE IN PENN. YET EITHER
Even as the newly formed Penn. Gaming Control
Board accelerates its efforts to get an expected
multibillion-dollar gaming industry off the ground
in the Keystone State in the wake of a state Supreme Court ruling upholding the constitutionality of Pennsylvania’s slot machine law, there is
trouble on the horizon. Developer Charles Betters, who is bidding to operate a thoroughbred
track in the state, intends to go forward with separate legal cases he has filed in federal and state
court challenging the legislation as well as
the legislative process.
Paul J. Estok,
Editor Editor
Stanley
F. Bergstein,
BROWARD TO WAIT ON RULES
For the time being, Broward County commissioners have decided they will not write their own guidelines to oversee expanded gaming at the county’s
four pari-mutuel facilities. On Tuesday, county
commissioners declined to pass emergency rules
for slot machines, saying that for now, a pending
court appeal (see Executive Newsletter of June
28 for details) makes it unnecessary for them to
act. Pari-mutuel operators in Broward welcomed
the decision and made it clear that they are comfortable waiting until there is clear legal authority
for slots and a regulatory structure in place.
INDIAN CLAIM REVERSAL IN NY
In a potentially far-reaching decision, a federal
court in New York has ruled that the Cayuga Indians are not entitled to a $248 million land claim
and judgment awarded them by a lower court. In
a 2-1 decision, the 2nd Circuit Court of Appeals
cited the U.S. Supreme Court’s recent ruling in
the tax case involving the Oneida Indians, owners
of the successful Turning Stone Casino, and the
town of Sherrill, New York, that said too many
years had passed for the Oneidas to claim their
reacquired former reservations lands were again
sovereign and tax exempt. The court in the Oneida
case said some of the considerations that doomed
the case included the passage of so much time;
that most of the tribe moved elsewhere; the tribe’s
long delay in seeking relief; and the longstanding
distinctly non-Indian character of the area and its
inhabitants. As a result, the appeals court reversed
and dismissed the Cayuga’s entire 25-year-old land
claim. “This wasn’t remanded. This was reversed
and dismissed,” said Christine Pritchard, a spokesperson for New York Attorney General Eliot
Spitzer. “This is significant and precedent-setting.
This is the same court that will oversee the rest of
New York’s land claims.” The Cayuga
case is the only Indian land claim in New
York to make it through the courts. The
June 29, 2005
Oneidas, Onondagas, Mohawks and Senecas also
have land claims pending. Gov. George Pataki
had been pushing to get the legislature to pass a
bill for another tribe with a land claim, the St. Regis
Mohawk Tribe, that would have involved a settlement of $100 million plus the right to build a casino in the Catskills. The Assembly passed the
bill, but the Senate, seeking a bill for three land
claim settlements to yield three Catskill casinos,
would not settle for one casino deal. In light of the
appeals court ruling, it remains to be seen if Pataki
will still try to use gaming compacts as currency
to settle land claims. Attorneys for the Cayugas
are considering their appeals options.
YONKERS BREAKS FOR CASINO
Yonkers Raceway now has officially closed its
doors for renovations for four to five months while
work on the track’s $185 million construction
project begins. Over the next 10 to 12 months,
the raceway will add a food court with 300 seats, a
coffee shop as well as a bar and entertainment
lounge. Yonkers will also be adding a 120,000
square foot building that will house as many of the
approved 5,500 slot machines. It will take about a
year before Yonkers will be transformed into a
racino.
PAUL SPEARS HONORED
The Pennsylvania House of Representatives has
honored Paul Spears, chairman of Hanover Shoe
Farms and executive vice president of the Standardbred Horse Sales Company, for lifetime
achievements in representing the equine industry
in the Keystone State. Spears has been instrumental in most equine-related initiatives in Pennsylvania, most recently as a representative of Standardbred interests in the drafting and passage of
the Pennsylvania slot machine legislation. Spears
was introduced to the membership of the house
during today’s legislative session and presented with a special House citation for service to Pennsylvania agriculture.
July 1, 2005
Stanley
Paul
J. Estok,
F. Bergstein,
Editor Editor
McCAIN AIMS AT INDIAN GAMING
PENN NATIONAL TO SELL CASINO
Congress never intended for Indians to build Nevada-style casinos away from their reservations,
and tribes risk a backlash by pursuing the trend,
Sen. John McCain told the Senate Indian Affairs
Committee. The trend of tribes establishing offreservation casinos has surfaced as Indian Gaming has transformed in recent years from a relatively small industry into a huge one, generating
an estimated $18.5 billion in 2004, nearly double
the take from Nevada’s gaming industry. McCain
said after the hearing that he was still deciding
whether to introduce legislation to further restrict
off-reservation gaming.
Penn National Gaming announced this week that
is has agreed to sell the Argosy-Baton Rouge casino for $150 million in cash upon the completion
of its acquisition of Argosy Gaming Co. Penn
National will sell the property to a unit of Columbia Sussex Corp., a Fort Mitchell, Kentucky, hotel and casino operator.
TRUE PROMOTED AT YOUBET
Youbet.com, Inc. has announced that Jeff True has
been named a vice president of the company. True
will continue to serve as Western Region General
Manager for Youbet and will now oversee the promotion and promotion partner development programs.
CHRB BACKS CHIP ID
The California Horse Racing Board instructed
staff on Thursday to develop a detailed plan for a
pilot program to add microchips to the methods
used to identify racehorses in California. Microchips are used widely in 16 other countries and on
a limited basis in some states, but if the CHRB
successfully implements program, California would
become the first state to require microchip technology for the monitoring of racehorses. CHRB
Chairman John Harris said the intent of the Board
would be to require, “at a date certain, that any
horse participating in races in California has a
chip.” Dr. Ron Jensen, the Board’s equine medical director, will be meeting with horse identifiers,
stall superintendents, and others to develop t h e
pilot program, which could be funded by
the California Department of Food and Agriculture.
NYRA MONITOR GETS MORE TIME
A federal judge yesterday extended the time the
New York Racing Association will be under the
watchful eye of a court-appointed monitor. Yesterday, on the eve of the expiration of Getnick &
Getnick’s 18-month oversight, Judge Arthur Spatt
extended the time NYRA will be under the purview of the monitor to July 24, while at the same
time extending the deferred prosecution, which was
also set to expire, until August 23. According to
Jim Odato’s report in the Albany Times Union,
Getnick wrote to Spatt asking to extend the
monitorship until the end of the Belmont meet and
said he would recommend dismissal of charges
brought against NYRA if he determines it has met
the terms of the deferred prosecution agreement.
RED MILE RACING...
Racing action returns to The Red Mile this weekend when the Lexington track opens for two days
of quarter horse racing this Saturday and Sunday.
Last year The Red Mile’s abbreviated quarter
horse meet drew crowds of 10,000-12,000.
NM LAW ALLOWS LONGER HOURS
Beginning today, gamblers will be able to spend
more time in New Mexico’s casinos. A new state
law will now let racetrack casinos stay open 18
hours a day, but it won’t let casinos operate more
than 112 hours a week. Casinos must also spend
at least a quarter of their income from gambling
machines on programs to treat compulsive
gamblers.
CANADA COMMINGLES TONITE
Canadian racing fans get their first chance tonight
to bet directly into an American track’s host
pools. With Illinois and Ohio approving commingled pools, Woodbine Entertainment gives
its patrons the opportunity tonight to bet into
pools at Maywood Park in Maywood, Illinois,
and Balmoral Park in Crete, Illinois, and tomorrow night at Northfield Park near Cleveland. Arlington Park in Arlington Heights, Illinois, is expected to become the first thoroughbred track
to take Canadian bets directly into its pools later
this month. New York and Delaware also are considering the issue, and California, Florida, and
New Jersey are studying it. Steve Mitchell of
Woodbine, who has been handling details for
WEG, thinks Canadians will benefit greatly from
the new system, giving them larger pools and
better payouts. “Once all states permit this,”
Mitchell believes, “payouts on winning bets
should increase by more than $10 million a year.”
Commingling became possible last fall when the
U.S. Congress eliminated the 30% withholding
tax on foreign bets made on a U.S. racetrack.
Following that Woodbine worked out an agreement with the Canadian Pari-Mutuel Agency,
which was concerned about teller delays at U.S.
tracks, but finally conceded as long as warnings
about that process were posted at wagering sites.
John Johnston, president of Balmoral and vice
president of Maywood, says he expects pools
at those tracks will grow by 10% from Canadians betting directly into them.
OUR BOY JOE SCORES BIG
Sandra Day O’Connor may have grabbed the front
page of the New York Times last Saturday with
her retirement announcement, but Joe Asher of
Cantor G and W didn’t do too badly. He grabbed
column 1 on the same front page, and his
handsome visage and story took up 34
inches of the Times page 9.
July 5, 2005
Joe, who started at Brandywine under Hap
Hansen, now is an attorney and managing director of Cantor Gaming and Wagering, which
has developed under its parent Cantor
Fitzgerald, the New York-based financial services company, hand-held devices that will enable casino guests in Las Vegas to play poker,
slots, blackjack or other table games while at
the swimming pool, in a meeting or restaurant,
or in any other public spaces in the hotel. Cantor introduced the devices successfully in England,
and Asher said, “Since we spent a tremendous
amount of money developing the technology, we
were looking for other applications, and so we approached Nevada.” The new machines are not
linked to the Internet, thus circumventing Nevada’s
legal ruling that casinos cannot do online gaming,
and Gov. Kenny Guinn signed them into law last
month. The Nevada Gaming Control Board currently is writing regulations for their use, and they
should be operational by the time HTA, TRA and
USTA meet for the Racing Congress at the Bellagio
starting February 6, 2006.
RO LO SCORES BIG, TOO
Ro Lo, a 3-year-old Quebec-bred trotting colt,
made page 1 of Canada’s largest French newspaper, the Journal de Montreal, over the weekend,
when he was sold for a reported $750,000 to Norwegian interests. Trond Smedshammer will train
the colt for U.S. campaigning. The Journal de
Montreal has a circulation of more than 2 million,
and its headline read, in French, Jackpot for 3
Quebecers.
TOUGH KY RULES ADVANCE
Still facing legislative challenges, the Kentucky
Racing Authority last week unanimously voted
to endorse penalties approved by the Kentucky
Equine Drug Research Council in May. The new
rules include suspension of horses and
greater accountability for owners and veterinarians.
PLAYERS’ POOLS ILLEGAL IN CA
Players’ pools -- where bettors commingle funds
and bet as a group -- have been ruled illegal in
California. The state attorney general ruled
against them, and racing board executive director
Ingrid Fermin announced the decision last week.
AmericaTab, which has conducted such pools, says
it will comply with the ruling, even though it is not
a licensed entity in California and its hub is located in Oregon, where such pools are legal. Todd
Bowker, general manager of AmericaTab, was
quoted in Thoroughbred Times as saying, “As an
account wagering provider, we’re not licensed in
California, but we do business there. We don’t want
to lose the California product. If they prefer we
don’t do pools on the California product, then we
won’t.”
THOSE INTERSECTING LINES
Bones of racetracks lie across the nation, victims
of the intersecting lines of real estate values and
racing business. In harness racing, three of the
grimmest reminders are the shopping centers that
now stand where Roosevelt Raceway on Long Island, Liberty Bell Park in Philadelphia, and
Brandywine Raceway in Wilmington, Delaware,
once stood. Although the track owners who sold
the property prospered, in most cases, racing suffered, and could again if Churchill Downs sells
Hollywood Park for development rather than racing. Churchill almost certainly will do well. It paid
some $140 million for the track and its roughly
240 acres just six years ago, and the Louisville
Courier-Journal quotes Jeffrey Thomison, an analyst at Hilliard Lyons in Louisville, as saying he
thinks, using recent land sales next to Hollywood
Park as an indicator, that Churchill can get as much
as $235 million for the Inglewood track and its adjoining property. Hollywood Park represented 23% of Churchill’s cash flow in
2000, 11% in 2003, and 14% last year.
The paper says Churchill spent $5.9 million
July 6, 2005
last year on efforts to get slots in California and
Florida. Its long-term debt at the end of last year
was some $243 million, according to the CourierJournal, and it could use proceeds from sale of
Hollywood Park to pay down that figure, or make
further acquisitions. Either way, the ominous graph
hangs over all of racing: when the ascending line
of real estate value intersects the descending line
of racing business, some hard decisions must be
made.
O LITTLE TOWN OF BETHLEHEM
The hopes and fears of all the years are met in
thee tonight. And slots are one of them. Plans
are afoot to use the former mighty but now abandoned Bethlehem Steel site in the Pennsylvania Lehigh Valley city as the locale for a $300
million casino project, but some citizens and
councilmen are aghast at the idea. One says, “I
am trying to prevent the town’s character changing from the Christmas city to the Gambling
city.” Signs have appeared reading, “Take the
bet out of Bethlehem.” Another opponent urges,
“Don’t exchange the star of Bethlehem for the
neon lights surrounding slot machines.” Proponents might want to remind fellow citizens that
another line of the famed Christmas carol starts,
“Yet in thy dark streets.....” which are getting
darker without Bethlehem Steel. A stanza of the
carol ends, “The dark night wakes, the glory
breaks, and Christmas comes once more.” For
those who want slots, Christmas could come in
the form of jingle bells in the huge complex that
once belched the smoke of prosperity over
Bethlehem.
In another holy setting, the National Lottery
Corporation of Israel is asking the finance ministry to widen its gambling machine empire
around the country to battle thousands of illegal
video poker machines, blackjack tables and
slots currently operating.
July 7, 2005
SALES AND STORM WARNINGS
GREAT CANADIAN MARCHES ON
Churchill Downs’ sale of Hollywood Park to Bay
Meadows Land Co. for $260 million was today’s
big news in racing, but it is not necessarily good
news. Although the announcement stated that live
racing will continue at the huge Inglewood track
-- one of America’s best known racing venues -for at least three years, and Churchill can reinvest as a majority partner for eight years, the
buyer is a land company. It operates a race track
-- Bay Meadows -- but it also develops property,
and its president, Terrence E. Fancher, while talking about his love for racing, also made clear that
changes must be made so California racing can
better compete with other forms of gaming. “If
changes are not made,” Fancher said in a news
conference, “then it’s simply a reality that this
will not be an economically viable track over the
long term. We don’t know how much more clear
the message could be. A huge track in Northern
California and a huge track in Southern California would be gone.” Los Angeles Times writer
Bill Dwyre, writing about the turn of events, likened the comments of Churchill CEO Tom
Meeker and Fancher to the movie “Network.”
He wrote, “Two men who have spent a lifetime
conducting business with quiet, understated dignity became Howard Beale....they were mad as
hell and they weren’t going to take it any more.”
Dwyre called what happened Wednesday “gutsy,
brilliant and also somewhat desperate.” He said
part of the brilliance was “that it so publicly drops
the hot potato in Sacramento’s lap.” But he
added, “Sacramento, of course, may yawn and
turn its back. It may legitimately have bigger
agendas, much larger blocks of constituents than
60,000 race employees, much bigger losses of
face than two horse tracks folding. But you have
to give California horse racing credit for one thing
after Wednesday’s power play. Some
major players in the sport may eventually go, but they won’t go quietly.”
There was another major development on the west
coast, as Great Canadian Gaming Corporation,
which has been expanding its racing holdings exponentially, announced it was buying Flamboro
Downs from Magna Entertainment for some $63.9
million. The track, 45 miles from Toronto, has 230
acres and offers year-round live harness racing
and daily simulcasting on-track and at four
teletheaters and OTBs. It also has 752 slot machines Great Canadian has in the last year bought
Hastings Park, Fraser Downs, Sandown Park and
Georgian Downs. MEG president/CEO W. Thomas Hodgson said the divestiture “allows MEC
to focus resources on a strategic goal of delivering prime racing content, developing our U.S. gaming potential, and expanding our signal delivery
and wagering capability within North America and
internationally.”
BITTER HERBS, SUGAR IN OHIO
The Ohio State Racing Commission has granted
Thistledown, Cleveland’s thoroughbred track, permission to discontinue sending its signal to
Northfield Park, at the request of the Ohio division of HBPA. On a brighter note, the commission approved the sale of the Sandusky Cedar
Downs OTB -- Ohio’s only remaining OTB -- to
Northfield Park by Argosy Gaming.
DANCER IN BAD SHAPE
Stanley Dancer, perhaps the best known driver in
harness racing history, is hospitalized, in constant
pain and unable to walk. Plagued by the thought
that the harness world has forgotten him, he would
be bolstered by cards and letters. Send them to
1300 S. Ocean Blvd., Apt. 101, Pompano Beach,
FL 33062-6914.
Also send best wishes to Meadowlands chief
Dennis Dowd, recovering from another round
of hip surgery.
July 8, 2005
YOU SHOULD LIVE SO LONG
TOP NY COURT HOLDS FIRM
The old Jewish mothers’ wish is our hope for those
waiting for slots in Pennsylvania. We have a second wish, too: get your kid a job with the Pennsylvania Gaming Control Board. Outside of being a mutuel clerk in California, it’s the best deal
in racing. Moving with glacier-like speed, the
Control Board is operating so slowly in putting
together an operating staff that many of the
horses -- and perhaps their owners and breeders
-- who were expected to benefit from slots in
Pennsylvania will be retired or dead by the time
they finally get regulations argued over, written,
and in place. The latest move was the hiring of
Anne L. Neeb, director of the Louisiana Gaming
Control Board for the last two years, to be executive director of the Pennsylvania board, at a
cool $180,000 a year. She will direct a staff that
eventually will number between 130 and 140. The
control board also hired its top cop yesterday, a
30-year veteran of the FBI named David J. Kwait,
62, who will be paid $140,000 and will answer to
Ms. Neeb. Most recently, he has been chief of
criminal investigations for the Pennsylvania attorney general. Although the board’s chief counsel has not been hired yet, three members of his
or her staff were hired yesterday. They are a
gaming law specialist from an Atlantic City law
firm; the director of the state House Judiciary
committee; and the assistant counsel of the Pennsylvania Judicial Conduct board. The chairman
of the Gaming Control Board, Thomas (Tad)
Decker, said the board will be moving “expeditiously” to implement the law passed a year ago,
now that the Supreme Court has upheld its legality. He also said he still hopes to have the first
seven track racinos licensed by late 2006 or early
2007. The wheels of progress grind slowly in
Pennsylvania, and racing in the state -- which Ms.
Neeb says has an opportunity to be revitalized -- can only wait and hope, that
there’s money left after staffing.
New York’s highest court -- the Court of Appeals- has refused to reopen a case it upheld last month
establishing the legality of VLTs in the state. Without comment, the court denied a motion to rehear
the case, which differentiated VLTs from slots and
permitted revenues from them to be used to benefit the state breeding fund. The decision was another defeat for Joseph Dalton, the president of
the Saratoga County Chamber of Commerce, who
has been trying to upset VLTs in New York.
CASINO TIES UP MINNESOTA
A partial shutdown of state government in Minnesota entered its second week today, with the
governor, Tim Pawlenty, and legislative leaders
deadlocked over the issue of a casino at Canterbury Downs. The governor and his key Republican allies want one. They control the
House, but Democrats control the Senate, and
the stalemate over the casino issue has forced
almost 9,000 state employees off the job since
July 1. Residents can’t get new drivers’ licenses,
highway rest areas are barricaded, and other
services that derive income from state funding
are shut down. A special court master says he
will recommend restoration of the services, but
another judge still must sign off on that. Canterbury has round-the-clock poker, but wants to
add slots and more table games, and is willing
to pay the state $210 million for the next two
years to get them. At the present time in Minnesota, those privileges are reserved for the
state’s many Indian tribes. If the stalemate continues for another week, the 8,900 affected employees will be formally laid off and Minnesota
will have to pay millions in unemployment and
severance costs.
PICK 6 OVER $100,000
The Meadowlands Pick 6, not hit since June
22, now has a $100,067 carryover.
Stanley
Paul
J. Estok,
F. Bergstein,
Editor Editor
July 11, 2005
POSITIVES IGNORED IN KY.
ORE. HOUSES OKAYS MACHINES
Jim Gallagher, the transplanted New Yorker tasked
with helping to straighten out the regulatory environment in the State of Kentucky on Friday outlined how the previous incarnation of Kentucky’s
horse racing regulatory body failed to pursue penalties after horses tested positive for banned substances. In testimony before the Kentucky
legislature’s Interim Joint Committee on Licensing and Occupations, Gallagher, executive director of the Kentucky Horse Racing Authority, said
results from the laboratory that processes postrace samples from the state’s racetracks showed
a number of positives but that none of the positives was ever reported. “More troubling were
findings that should have been vigorously pursued
from an investigative standpoint” but were not,
Gallagher told the committee. As a result of
Gallagher’s testimony, the legislative committee
asked the Racing Authority for documentation to
support Gallagher’s allegations. Kentucky Gov.
Ernie Fletcher abolished the old Kentucky Racing Commission and reconstituted it as the Kentucky Horse Racing Authority after taking office
in January 2004. Gallagher said he came across
the information after discussions with the director
of the Iowa State University Laboratory, the laboratory with the contract to analyze Kentucky’s
post-race testing in 2002. Lu Juana Wilcher,
Kentucky’s Secretary of the Environmental and
Public Protection Cabinet, which oversees the
horse racing authority, told legislators that while
the Authority could have spent much more time
on the matter, they decided rather to attempt to,
“find the problem, fix the problem, and make sure
it doesn’t happen again.” Legislators have asked
for more information about the positives as well
as about the work of the Racing Medication and
Testing Consortium, the industry coalition that has
been working to, among other things, recommend uniform guidelines for medication usage and testing in the racing industry.
In a move supporters say could help save horse
racing in the state, the Oregon House approved a
bill to expand the number of slot and video poker
machines at Portland Meadows. Under the terms
of the bill approved last Wednesday, the track
could have 30 machines, triple the current number. The bill now goes to the Senate, where its
prospects remain uncertain. Portland Meadows
is owned by Magna Entertainment Corp. Last
year, Magna closed its other Oregon racing operation, Multnomah Greyhound Park, because of
financial losses.
NOW THAT’S A POT!
The nine players reaching the final table at the
World Series of Poker main event can no doubt
agree on at least one thing: There’s big money
involved. The total prize pool for the tournament
is $52.8 million, minus the house cut of $3.37 million. According to tournament officials, 560 players will finish in the money, but the best money
will be at that final table, where the first person
knocked off the table, the ninth place finisher, will
receive a cool million bucks. From there it’s eighth
place, $1.15 million; seventh place, $1.3 million;
sixth place, $1.5 million; fifth place, $1.75 million;
fourth place, $2 million; third place, $2.5 million;
and second place will collect $4.25 million. The
final table is scheduled to begin play Friday at
Binion’s Gambling Hall & Hotel in downtown Las
Vegas. The main event began last Thursday at
the Rio hotel-casino with a record 5,619 players,
more than double the 2,576 participants in 2004
and almost seven times the then-record 839 players who entered in 2003.
PLATO TO HBPA
Laura Plato, a former HTA staffer who more recently worked for Overbrook Farm in Lexington,
Ky., has taken a position as executive assistant with the National Horsemen’s Benevolent & Protective Association.
Stanley
Paul
J. Estok,
F. Bergstein,
Editor Editor
MAINE TRIBE TO TRY VOTERS
Proponents of an Indian-operated racetrack casino in Maine, who have twice won legislative backing in recent weeks but have been unable to overcome the objections of Gov. John Baldacci, are
seeking to take the issue before state voters themselves. Tribal leaders submitted an application
with state election officials Monday, aiming to put
the question to voters in November 2006. On June
23, after the Legislature adjourned, Baldacci
vowed to veto a racino bill calling for a statewide
referendum. The governor vetoed a similar bill
without a referendum provision on June 9.
Baldacci had linked acceptance of the referendum
measure to its supporters’ attainment of super
majorities of two-thirds voting approval in the legislature. The senate’s enactment vote was just
short, 21-11. Once cleared for circulation, supporters of a ballot initiative would have to submit
the requisite number of valid voter signatures by
January in order to get their proposal on the November 2006 ballot.
VLTS FAIL IN TEXAS...FOR NOW
A legislative maneuver to legalize video lottery
terminals at racetracks in Texas was rejected early
this morning. The vote by legislators came at 3:15
this morning.
NEW FACES AT ISLE AND SGMS
Isle of Capri Casinos, owner of HTA member Pompano Park, has announced the appointment of
Duncan McKenzie as regional vice president.
McKenzie will be responsible for Isle’s properties
in Mississippi and Missouri.
And Scientific Games Corporation has announced
that, in a move “designed to broaden the
Company’s highly respected management team to
take advantage of future growth opportunities,” Micheal Chambrello has been
appointed president and chief operating of-
July 12, 2005
ficer of the company. Chambrello, previously
served as president of GTECH Corp. and Executive Vice President of GTECH Holdings Corp.
KY. WILL LOOK AT POSITIVES
In light of the revelations made by Kentucky
Horse Racing Authority (KHRA) Executive Director Jim Gallagher with regard to alleged positive drug tests that were never pursued in the Bluegrass State (see Exec. Newsletter of July 11), the
KHRA has asked for an investigation by the inspector general of the Environmental and Public
Protection Cabinet, which oversees the Authority.
TRIBE SETTLES IN NEW MEXICO
The Pojoaque Pueblo Indians in New Mexico have
agreed to pay the State of New Mexico $24 million in back casino payments in order to settle a
lawsuit, the state attorney general announced.
Attorney General Patricia Madrid sued New
Mexico tribes that operate casinos five years ago.
She alleged they were violating a 1997 compact
that required them to pay 16 percent of their net
slot machine revenue to the state in exchange for
limits on competition. All tribes except the
Pojoaque eventually settled and made payments.
Revised compacts approved in 2001 require tribes
to pay no more than eight percent of their slot revenue. Under the terms of the settlement agreement, Pojoaque Pueblo will sign the 2001 gaming
compacts and make its back payments in installments over about 12 years. The agreement still
must be approved by a federal judge in connection with the lawsuit.
OOPS...WHAT THE WINNER GETS
Yesterday’s Executive Newsletter listed the consolation prizes for the World Series of Poker, with
a total prize pool for the tournament of $52.8 million, minus the house cut of $3.37 million. What
wasn’t listed was what the winner’s share of
the pot will be...a whopping $7.5 million.
July 13, 2005
INQUIRY ON POSITIVES IN KY
OHHA ISSUES ULTIMATUM
Jim Gallagher’s charges that the former Kentucky
Racing Commission overlooked drug positives and
that commission policies never went through proper
administrative review have gone to the Office of
Inspector General. Bernie Hettel, who was fired
from his former job as executive director and chief
steward in Kentucky, denies Gallagher’s charges.
Gallagher, for his part, says he “just wants to move
forward...to make sure this sort of thing never happens again.” He followed up on that statement by
telling the new Racing Authority he would like to
update all of Kentucky’s pari-mutuel rules and
regulations and make them applicable to all three
breeds. This would be a welcome change from the
past double standard, where harness horses and
thoroughbreds were subject to different standards,
with full approval of the former commission and
its executive director.
The Ontario Harness Horse Association and an
organization called National Capital Region Harness Horse Association, representing horsemen
in the Ottawa area of Rideau Carleton Raceway,
are tangling over membership. OHHA president
Jim Whelan sent a letter to OHHA members in
District 1, covering that area, telling them they
cannot be members of both organizations, and asking them to make their choice. Whelan explained
that OHHA needed to confirm its membership, and
that only those who chose OHHA as its sole and
exclusive bargaining agent would continue to receive benefits of OHHA membership. His letter
said members of the NCRHHA could not continue
to be members of OHHA and would have to make
their choice.
OK FOR GOOSE, NOT GANDER?
The Indiana legislature refused to approve slots
for the state’s two racetracks, but now the Hoosier Lottery is asking for the same thing. The
lottery’s executive director, Esther Q.
Schneider, has asked the Indiana attorney general for a legal opinion on whether current law
allows the lottery to offer new games, including electronic gambling devices. She added that
new games would be implemented only with legislative approval. Assuming that what is good
for the Indiana goose would be good for the
Indiana gander, it seems a favorable decision
on Ms. Schneider’s request would be the height
of inequity. Lottery profits are expected to fall
about 5% in the budget year that ended June
30, and Ms. Schneider says, “We’re looking at
all the different ways we can increase revenue
and our bottom line.” We’re pretty certain, Ms. Schneider, that’s exactly what
Hoosier Park and Indiana Downs were
hoping to do.
NEW BUSINESS FOR MAGNA
Add a new product to Magna Entertainment’s inventory. The company has announced it has built
a plant in Lumberton, North Carolina, to manufacture a pellet form of straw to be sold for bedding under the brand name STREUfex. The
Lumberton plant will process local straw into pellets that “work almost like kitty litter.” The new
bedding was the only product allowed for stall bedding at Magna’s Palm Meadows training facility
in Florida this year, and the results led to Magna
production of the pellets.
PIERCE NOW OWNS A RUNNER
Harness racing’s hottest driver now is a thoroughbred owner. Ron Pierce, inducted into the
Hall of Fame in Goshen a week ago Sunday, is
sending out a 2-year-old called Blackout O
Three in Monmouth Park’s fourth race tomorrow. Ron bought the Louis Quatorze-Quiet Express by Quiet American colt for $20,000 as a
weanling, after stopping at neighboring farm in
Clarksburg, NJ, when a flight taking him to
Toronto for a race was cancelled by a
blackout.
INDIANS RAKE IN $19.4 BILLION
Indian-owned casinos nationwide won nearly twice
as much from gamblers as all of Nevada’s casinos
last year, according to data released today by the
National Indian Gaming Commission. The nation’s
367 tribal casinos won $19.4 billion, up 15 percent
from 2003. That compares to the roughly $10 billion won by Nevada casinos for the year ended
June 30. Tribal gaming revenue grew 14 percent
in 2003 and 15 percent in 2002. In California,
tribal casinos won $5.8 million, up 23 percent from
2003. The California region also includes Northern Nevada, which is negligible. The commission
doesn’t report state-specific data because in some
states, the figures could reveal too much detail
about tribal revenue, figures closely guarded by
tribes, commission spokesman Shawn Pensoneau
said. The data is based on quarterly financial
statements sent to the commission by tribes. The
statements are required by federal law, which also
allows tribes to keep private their financial data.
MORE CHANGES AT NYRA
After what NYRA President Charles Hayward
termed “careful evaluation,” the Association today announced the firing of two key racing officials and an executive as well as the retirement of
the association steward. Racing secretary Mike
Lakow, chief examining veterinarian Celeste
Kunz, and vice president of human resources and
labor relations Raphael Chetcuti were fired without notice today, while association steward Dave
Hicks was given the option of early retirement.
ANOTHER CHALLENGE IN MICH.
Another challenge has arisen to Magna Entertainment Corp.’s bid to build a new thoroughbred track
in suburban Detroit. Same Danou, a developer
who was an unsuccessful applicant for the track
license granted to Magna, last week filed
an appeal claiming Magna still controls
the license of Great Lakes Downs in west-
July 14, 2005
ern Michigan, although Magna claims to have sold
its interest in that license. Michigan law prohibits
any racetrack entity from holding more than one
racing license. Northville Downs, the suburban
Detroit harness racing facility, has also appealed
the granting of a license to Magna.
MEDIA AWARD FOR CTV
CTV, one of Canada’s best-known and popular
broadcast communications operations, and its
broadcast of last summer’s Nat Christie Memorial Stake in Calgary has been named by an international committee as the best harness racing TV
broadcast in the world during the last 18 months.
The announcement came at the recently concluded
World Trotting Conference in Italy.
POCONO PLANS TO BE OUTLINED
On Thursday, July 21, Robert Soper, president and
CEO of HTA member The Downs at Pocono, will
present the Mohegan tribe’s plans for the development of a gaming facility at the Plains, Pennsylvania racing facility. The name and logo of the
new facility will be unveiled during the press conference, along with details of proposed “gaming
amenities.”
ALICE CARNEY DIES
Alice “Allie” (McCrystal) Carney, wife of
Rockingham Park owner and President Dr. Thomas Carney for 54 years, died suddenly in Winston-Salem, North Carolina, on July 12. Mrs.
Carney is survived by her husband, three sons
(Thomas F. Carney, Jr., Dr. Daniel Carney, and
Peter Carney), nine grandchildren, and many
nieces and nephews. Visitation will be held on
Sunday and Monday at the Lorne & Sons Funeral
Home in Delray Beach, Florida. The funeral will
be held at 1 p.m. on Monday, July 18, at St. Vincent
Ferrer Catholic Church in Delray Beach. HTA
sends deepest condolences for their loss to
the Carney family.
Paul J. F.
Estok,
Editor Editor
Stanley
Bergstein,
BALA SENTENCED TO 27 MOS.
Susan Bala, the founder and owner of North
Dakota’s Racing Services Inc., was sentenced by
a federal judge in Fargo, North Dakota, yesterday to 27 months in prison for her role in what the
Fargo Forum called “the largest illegal gambling
case in North Dakota history.” Bala, for her part,
continues to claim innocence, telling Judge Ralph
Erickson, “I just want you to know, in my heart, I
would never do anything illegal.” The judge chastised Bala for bringing “unsavory characters” to
North Dakota, including an alleged member of the
Gambino crime family now under federal indictment in New York, but also noted that in light of
Bala’s past good deeds, spotless record and low
risk, she deserved a sentence at the low end of
the scale provided by federal sentencing guidelines, which is what she got. Assistant U.S. Attorney Keith Reisenauer asked for 33 months, telling the judge that Bala has not taken responsibility for her actions. “She blames everybody but
herself,” Reisenauer said. Bala, 50, and her company were convicted in February on 12 counts, including conducting an illegal gambling business,
conspiracy to conduct an illegal gambling business,
illegal wire transfer, and nine counts of money
laundering. Raymundo Diaz Jr., the vice president of Racing Services, was sentenced in May to
90 days in a halfway house. He had pleaded guilty
to three felony charges of illegal gambling. Jurors in February also ordered Racing Services to
forfeit about $99 million, and Bala herself was ordered to pay $19.7 million of that. Reisenauer
said he did not know how much of the money would
be collected.
SIMO AWARD DEADLINE AUG. 29
The award to honor the racing industry’s best simulcast production again will be presented at the
13th Annual International Simulcast Conference. The deadline for all entries is
Monday, August 29, 2005. The award honors the best simulcast telecast by a host site
July 15, 2005
and is open to all pari-mutuel breeds. The simulcast entry will be judged on technical merit, quality, and timeliness of racing and wagering information dissemination, as well as overall appeal.
Entries for the award must be no more than 30
minutes in length and contain one complete race
presentation, including pre-race features and
graphics, the race itself, and any post-race replays
or wrap-ups. Entries must have been part of a
normal simulcast program and not a collection of
highlights or features and have aired after August
24, 2004. For the first time, entries will be accepted in DVD format. Six copies of each entry
should be sent to Thoroughbred Racing Associations, 420 Fair Hill Drive, Suite 1, Elkton, MD
21921, along with a letter of entry detailing the
contact name for the entry and the date the program aired.
TUCSON TRACK DEFICIENT
“Serious structural deficiencies” at 63-year-old
Rillito Park Racetrack in sunny Tucson, Arizona,
have prompted Pima County officials to consider
tearing it down and replacing it with athletic
fields. That idea is drawing opposition from the
horse racing community. The track needs $1
million to $1.5 million in repairs to avoid a “catastrophic failure” of the steel-and-wood grandstand, according to a consultants’s report. The
grandstand, built in 1962 and considered an eyesore by many in the Old Pueblo, was “built deficiently [and] never strengthened adequately.”
County Administrator Chuck Huckelberry says
the county doesn’t have the money it would take
to repair the facility, let alone the estimated $5
million to $6 million it would cost to replace the
structure with a new one. That puts the next racing season, slated to begin in January of 2006, in
jeopardy. For now, the facility remains closed,
but as a result of the dire reports and in an effort
to move the issue forward, a county advisory
commission voted unanimously to “seek
short- and long-term solutions.”
July 18, 2005
HTA ART CATALOG NOW ONLINE
Harness Tracks of America’s new art catalog for
its Oct. 1 sale is now online on the HTA Web site.
www.harnesstracks.com, and also can be accessed
at www.elegantequineart.com. All 200 works are
illustrated in full color, and each is enlargeable
for clearer viewing. A print version of the catalog will be available free of charge by Aug. 1, and
the actual work will go on display in the grandstand of the Red Mile in Lexington, KY, Monday, Sept. 26, and remain on display through Friday the 30th, when it will be moved to Tattersalls
following that afternoon’s racing program for auction the following morning.
This year’s auction is divided into four sections.
The first is original harness racing art, numbers 1 thru 85, which will be sold starting at
8:30 a.m. This section includes the largest collection of harness art ever offered by the Polish cavalry officer-turned-artist, Zenon
Aniszewski, HTA’s most popular and successful artist. Included in this section is an original
early work by George Ford Morris, a beautiful
painting of the trotter Baroness done by Morris in 1906.
Section II consists of a superb collection of Currier & Ives trotting prints, numbers 86 thru 124,
selling at 10:30, and including such exceptional
prints as Central Park in Winter, Trustee, Stars
of the Trotting Track, Trotting Cracks on the
Snow, A Brush for the Lead: New York Flyers
on the Snow, and Ready for the Trot. Also being offered, in mint condition, is Salvadore
Dali’s American Trotting Horses #1 and American Trotting Horses #2, hand signed by the
world renowned surrealist artist. A rare Currier, lithographed from a painting by the English master J. F. Herring Sr., also is in
the auction, along with five Currier &
Ives comics and an original pen and ink
drawing by Robert Dickey.
Section III, going under the hammer at 11:30 a.m.,
are truly exceptional equine bronzes by renowned
European masters. Isidore Jules Bonheur, Pierre
Jules Mene, Pierre Lenordez and Arthur Waagen
are represented in the collection.
Starting at noon, HTA offers 70 works catalogued
as The Glory of the Horse, including paintings of
thoroughbreds, western horses, Indian ponies, carriage horses, broncos,and show horses, and some
beautiful prints as well. Work by Zenon
Aniszewski, Helen Hayes, Svetlana Gadjieva,
Henry Stull, Alfred Edgerton Cooper, Richard
Stone Reeves, George Ford Morris, Santos
Barbosa, Mostafa Keyhani, Sherry Blanchard Stuart,
Alyson Champ, David Pavlak, Joan MacIntyre and
other well known equine artists are featured.
All net proceeds of the show, as always, go to the
HTA College Scholarship Fund, a 501 (c) 3 charity.
HTA tracks are invited to participate.
THE END FOR HIALEAH?
Hialeah Park, once one of America’s most beautiful
racetracks, may have reached the end of the line. The
Third District Court of Appeals in Miami affirmed an
order by Florida’s Department of Business Regulation to revoke Hialeah’s racing permit. Track owner
and president John Brunetti says he now will move
ahead with plans to rezone the property for commercial use, and if that happens another American racing
landmark disappears.
THE MEN WHO OPPOSE GURAL
Speculator Shawn Scott and three Florida partners, all
of whom were unable to get New York licenses to run
Vernon Downs and its racino, now have filed a federal
bankruptcy plan to pay off the track’s nearly $30 million in debt and re-sell Vernon’s parent, Mid-State
Racway. The group wants to prevent New York
realtor and horse owner Jeff Gural from buying
and operating the track.
HOW ABOUT ONE ON SHAWN?
With the federal bankruptcy court hearing on
Vernon Downs just a week away, Shawn Scott
has run ads in the New York Post soliciting information on his rival, real estate executive and
harness racing owner-breeder Jeff Gural. The
ad reads, “Have you dealt with Newmark & Co.
or Jeff Gural? If you have experience negotiating with or doing business with either that you
would be willing to share, please contact Holly.”
The 800 number given in the ad, according to
the Syracuse Post-Standard, rings to a voice
mail, where a woman’s voice identifies herself
as Holly Lackey. A Scott associate works for
the Dallas law firm of Lackey Hershman. Gural
might consider running a similar ad asking for
information on Scott. Might as well make this
fight interesting. Scott, still trying to get licensed in New York, reportedly will have another
hearing Friday before the Racing and Wagering
Board.
While this was going on in New York, Scott’s
mother Victoria, a high stakes player herself,
was in the news in Alaska. The Anchorage Daily
News reported that Ms. Scott, who has a residence in Anchorage, is sponsoring an initiative
to bring video poker to Alaska. The story said
she and Shawn have worked together in the past,
including in a company that sponsored the successful effort to bring slots to Bangor Raceway,
but Ms. Scott told the Anchorage paper that this
project is hers alone. Calling Shawn Scott’s
dealings “profitable but checkered,” the Daily
News reported that “Victoria Scott bristled at
the mention of her son, saying she has run several ventures without him, including a chain of
video poker truck stops in Louisiana. ‘These
problems existed for him long before I got my
truck stop licenses,’ she said. ‘I don’t
know why you’re even bringing his name
into this.’” The paper reported that Scott’s
July 19, 2005
original initiative draft was denied certification
earlier this year by Lt. Gov. Loren Leman following an attorney general’s opinion. The AG
ruled the proposal was “not of statewide interest” since it allowed just one licensee to run a
full blown gambling facility through 2008 by designating a specific Anchorage parcel, a 670,824
square-foot lot, roughly 15 acres, on which Ms.
Scott holds an option -- as a “gaming district,”
the only place a video lottery terminal facility
could be located in Alaska. A revised initiative,
now under review, would require the sponsors
to collect enough signatures to place it on the
2006 ballot. The new proposal would allow up
to five video poker machines in bars and pulltab parlors with voter approval of them and the
creation of new gaming districts. Only one in any
borough of more than 30,000 would be allowed.
ACCOUNT BETS IN NV CASINOS
The Las Vegas Sun reports that Nevada gaming
regulators have begun reviewing new regulations
that would permit telephone betting accounts with
Nevada casinos to be opened by out-of-state bettors. The new rules were presented to the State
Gaming Control Board for consideration last week.
Recommendation there would lead to a hearing
before the Nevada Gaming Commission before the
out-of-state telephone accounts could be opened.
FIRST YOUBET, NOW AUTOTOTE
First it was Youbet, buying International Racing
Group in Curacao in February. Now Autotote Enterprises, a division of Scientific Games, has
signed a five-year deal to supply simulcast services at Tote Investments Racing Service simulcast centers on the island of Barbados, at an estimated value of $5 million for the five years.
Autotote president Rick Pullman said he hoped
the deal would “extend the successes we have
enjoyed in our other recent Caribbean
launches in St. Croix and the Bahamas.”
July 20, 2005
BATAVIA DOWNS BACK IN HTA
COMPUTER GLITCHES? C’MON
Batavia Downs, ready to return to live racing
action August 3, this time fortified by 586 VLTs,
also is returning to HTA. The country’s oldest
night time pari-mutuel harness track, which was
first licensed in September of 1940, reopens with
racing Wednesdays through Saturdays and a
7:35 post time and a busy promotional schedule.
HTA welcomes track president Marty
Basinait back to its board of directors, and
wishes him and his Western OTB management
team the best of luck with the revitalized venture.
The NTRA, accused by some players that entrants
had past-posted selections in an online handicapping contest, explained patiently that this was not
true, and that several computer glitches had forced
NTRA to take down its leader board a number of
times to correct computer malfunctions. We know
exactly what NTRA is talking about. One of
Tucson’s famed monsoon lightning storms struck
Monday night, and knocked our office modem
clear into California. We were without Internet
service all day Tuesday and Wednesday morning,
and hopefully by the end of this column a new modem will have been installed. Glitches? You’re
damn right. They happen.
KEY NYRA MAN OUT THE DOOR
The Albany Times-Union reports today that the
New York Racing Association’s $200,000 a year
chief financial officer will be shown the door tomorrow morning. CFO William Byrne would be
the fifth NYRA executive to get the boot in the
last week -- the racing secretary and director of
personnel preceded him -- but the Times-Union
also reported that “a source familiar with NYRA
business affairs” said Byrne had renewed his
contract just last month for another two years.
The dismissals at NYRA come only days before
the Getnick and Getnick law firm is scheduled
to complete its monitoring report on NYRA,
more than 18 months in the making, which will
be provided to a federal judge no later than Monday.
A FUROR OVER CREDIT
The announcement by Maryland governor Robert L. Ehrhlich yesterday that Maryland has gone
from $1 billion in debt to a surplus of more than $1
billion during his regime might be expected to generate joy. Instead, the Democrats lashed out at
the Republican governor, giving credit for the turnaround to everything from the weather to
interest rates and calling Erhlich’s claims
of credit “outrageous and bogus.” Obviously, nothing has changed in Maryland.
THE MEADOWS IS NEXT
Magna Entertainment’s construction war
room, located in its headquarters in Aurora,
Ontario, and called DreamWorks Stronach by
those who work there, is growing nervous as
the next Gulfstream season approaches, according to reports from Tom LaMarra in Thoroughbred Times. Dennis Mills, MEC’s executive VP, told LaMarra the company’s construction guys “will be losing a lot of hair over this
one,” but predicted, “When we make this a
success, others are going to see that the modernization of the racetrack environment into
a multipurpose facility is working, and hopefully others will do the same.” The good news,
from a harness racing point of view, is that
Charlie Thomas, an architect in MEC’s design
department, said that when Gulfstream is complete Magna’s focus then will turn to its HTA
member The Meadows, where the track will
be retrofitted with a racino. Whether the construction crews get Gulfstream finished in time
for racing is not the real issue in Florida.
More important is if the state’s glacially
paced legislators get off their butts and
pass enabling slots regulations.
July 21, 2005
A RENAISSANCE? GREAT NEWS
ROBERTS KNOWS GAMING
When someone reports a renaissance in racing
these days, it is like man bites dog: it is news.
That’s the word out of Prince Edward Island in
Atlantic Canada, once known as the Maritimes,
where new legislation and a newly built racetrack
have rejuvenated the sport. To fully understand
and appreciate this, you have to realize that
Prince Edward Island is one of the hotbeds of
harness racing anywhere, on scale. It is difficult
to drive around the island and not see trotters
and pacers in backyard paddocks, and the people
know the sport intimately. One of the world’s
greatest trainer-drivers, Joe O’Brien, hailed from
there. And things had been looking grim for a
while. Atlantic Lotto tried to revive things once,
then pulled out, and trainer Ron Matheson says,
“It was pretty dismal for a few years.” Then Atlantic Lottery Corporation stepped in, and a
racino is being built at the island’s main racing
venue, Charlottetown Driving Park, scene of a
major racing festival each summer. The physical
racetrack itself was rebuilt, casino subsidies already are in place, and purses are up some 50%
since last year. One of the island’s leading breeders, Brian Andrew of Meridian Farms, says, “The
standardbred industry is a very important aspect
of the agriculture scene on PEI, and if it’s going
ahead, then it only means it’s going to help the
economy as well -- in terms of sales, feed, harness, equipment, it all filters down.” A sign of
the revival is the fact that on a recent card, 107
horses were entered and drew in and another 99
that were entered did not get in. That’s a sign of
renaissance. Just thought that another reminder
of what alternative gaming can do -- not that one
is needed -- might brighten an otherwise dull
Thursday. If you ever get a chance to go to
Charlottetown for the Gold Cup and Saucer classic in summer, make the trip. You’ll find
it entertaining and, who knows, perhaps
educational.
Not sure it makes any difference, but if John Roberts is confirmed as a Supreme Court justice -anybody game enough to bet against that odds-on
choice? -- it will mark an unusual occurrence, a
justice who knows gaming. Roberts, while in private practice, participated in a 1999 case before
the Supreme Court involving gaming, where the
Court ruled unanimously that banning television
and radio advertising for casinos violated the First
Amendment. Roberts, according to the Las Vegas
Review-Journal, did not appear during oral arguments, but prepared a brief and was “counsel of
record” for the American Gaming Association. He
wrote that an advertising ban could not be justified by “the perceived dangers of commercial casino gaming.” The briefs were filed in support of
the Greater New Orleans Broadcasting Association, 26 television and radio stations that won their
case against federal attempts to ban air ads for
casinos in Louisiana and Mississippi. Roberts and
the American Gaming Association’s president
Frank Fahrenkopf both worked for the same Washington law firm, Hogan and Hartson, in 1986.
Fahrenkopf said Roberts would “decide cases
based on the facts and law presented,” but added,
“It’s nice to know there is a member of the court
who at least knows about the industry and its background. He is aware of the real picture of the industry, and not just the myths and superstitions
still in the mind of some of the media. That’s a
positive, but it may not help us.”
INSURANCE NOT SIMPLE, BOYS
Kentucky’s blue ribbon panel on jockey compensation insurance is discovering that, and has
begged off meeting a September 1 deadline to
make recommendations to Gov. Ernie Fletcher,
saying it would be premature without further information. One member said, “A proposal is
great, but if we can’t fund it, it’s not worth a
whole lot.”
July 22, 2005
RECAPITALIZATION AT MAGNA
MOHEGANS ANNOUNCE PLANS
Magna Entertainment announced today that, as
part of its strategic plan, its board has approved
recapitalization that includes two binding term
sheets for loan agreements with a subsidiary of
MI Developments. The first effectively replaces
the existing $77 million construction loan for a
racino at HTA member The Meadows in Pennsylvania with a loan for up to $34.2 million to fund the
development, design and construction of an alternative gaming facility at Remington Park in Oklahoma. It was not clear from the announcement
how the transaction would affect construction at
The Meadows, and a call to Magna executive VP
and CFO Blake Tohana had not been returned at
press time. In addition to that development, certain terms of the existing $115 million Gulfstream
Park loan will be amended, with a second term
sheet for a bridge loan for a non-revolving general credit facility up to $100 million. MI Developments is the controlling shareholder of Magna
Entertainment, owning some 59% of MEC’s equity securities and 96% of the votes attached to its
voting securities. Magna Entertainment president
and CEO Tom Hodgson said he was pleased to advise shareholders “of our continuing progress in
implementing our strategic plan, and our commitment to achieving debt reduction through asset
sales, a possible gaming partnership, and a possible
future equity financing.” The release said the recapitalization plan would include “the sale of certain non-strategic real estate, racetracks and other
assets to generate some $150 million, but did not
specify which racetracks Magna might sell. In
Oklahoma, where Magna Entertainment has been
paying $132,857 a year to lease Remington property owned by the Oklahoma City Zoo, it was announced that the company had agreed to pay at
least $370,000 more a year to lease the Zoo land.
The zoo had demanded an increase in anticipation of slot revenue from 650
planned machines.
As promised, Mohegan Tribal Gaming Authority
president Robert Soper announced the Authority’s
plans for The Downs at Pocono yesterday, saying they would start with a $47 million construction project in September in order to have a temporary slot machine facility ready at the track
by early 2006. A more ambitious project, to build
a 400,000-square-foot casino and entertainment
complex, will start once the state has issued a
conditional license. The entire project will cost
$187 to $207 million, and when up and running
would employ up to 800. In Harrisburg, meanwhile, the Pennsylvania Gaming Control Board
announced it had adopted licensing standards
for the track parlors, and could start accepting
license applications as early as September. No
firm date has been set for the issuance of any
licenses, but Control Board spokesman Nick
Hays said no licenses are expected to be issued
before early 2006.
CAL-EXPO GETS ITS DATES
The California Horse Racing Board has
granted dates for September 23 thru Dec. 30
to the new Sacramento Harness Association,
which will be headed by president Ralph
Scurfield, former chairman of the California
Horse Racing Board. Chris Schick, longtime
Cal-Expo official who built the track’s extensive simulcasting network, will serve as general manager of the new group.
HORSEMEN BETTER THINK
Jeff Gural, who has loaned Vernon Downs $1.5
million in his quest to buy it, says he is “wavering”
in view of a lack of horsemen’s support. Vernon
horsemen and their leaders had better stop playing power games and start thinking.
CONTROLLER JOB OPEN
A major member of HTA is looking for an experienced controller. Call HTA at 529-2525.
SCOTT DENIED LICENSE AGAIN
The New York Racing and Wagering Board on
Friday again denied promoter Shawn Scott a license to operate a race track in New York, citing
“lack of credibility” and misstatements in previous dealings with the board. Scott’s attorney
said he will appeal. In another development affecting Vernon Downs -- and one that makes it
unlikely the track will race this year -- a Bankruptcy Court judge postponed until August a
hearing on the competing bids of Scott and New
York real estate magnate and harness horse
owner-breeder Jeff Gural. The judge delayed
the hearing after a morning of deliberation in
which he decided it would be unfair to allow an
amended Gural plan, offered a night before the
hearing, to be heard on such short notice. The
judge also wants both disclosure statements to
be debated at the same time, to allow creditors
to examine both and vote on one or the other.
The Scott plan provides for a partnership with
Raceway Ventures, in which they would pay $30
million to get the track out of debt, loan it $10
million more to improve it, and then sell it to an
interested buyer. Scott currently owns 52% of
the track’s stock, and his plan would allow all
shareholders to keep their stock.
Under the
Gural proposal put forward by him and
TrackPower, a Canadian partner, Gural would
become sole owner of the track, according to the
Oneida Dispatch, and then allow previous shareholders to buy back a certain percentage, providing they can be licensed in New York. Gural
lawyers were anxious to have the matter resolved,
since Gural’s $1.2 million and $675,000 loans
are running low, and the lawyers say they will be
gone by Aug. 23. The Gural agreement also contains a clause that would allow him to back out of
the offer on Sept. 15 if his plan has not been approved by that date. The judge wants to
know if Gural and TrackPower can pay
creditors the $32 million they are owed.
July 25, 2005
In another Gural development, groundbreaking
ceremonies were held in the town of Nichols, NY,
of the route 17 expressway, for the beginning of
demolition and construction of Gural’s Tioga
Downs, which he hopes to open with as many as
750 video lottery terminals in the spring of 2006.
PURDON ON TRIAL IN NZ
After 14 months of investigation, during which two
of the principals reportedly committed suicide,
leading trainer Mark Purdon is on trial in New
Zealand in the “Blue Magic” case, involving use
of propantheline bromide. The two key figures
who are dead are John Seaton, one of New
Zealand’s most prominent owners, who also was
to have faced charges, and Robert Asquith,
charged with supplying the illegal drug. Australian coroners, who work at their own pace, still have
not confirmed the deaths as suicides. In a sideline
to the matter, assault charges were withdrawn
against Purdon’s mother-in-law, who was accused
of driving her car at a blue magic protester outside of Purdon’ stable last July and then assaulting him as he lay on the road.
FOXWOODS IN DISPUTE
Connecticut state regulators have ordered
Foxwoods Resort Casino to shut down an Internet
promotion, marketing a “Play Away” commercial
for remote play, but the tribe has refused. The state
attorney general says, “This game has to stop.”
We’ll see who wins this one.
WE KNOW YOU, TOM LAMARRA
In an embarrassing error, Executive Newsletter
last week misidentified veteran racing writer Tom
LaMarra as being with Thoroughbred Times. Tom
is, of course, news editor of The Blood-Horse. We
are avid readers of both excellent thoroughbred
publications, but like the New York Times, which
never acknowledges mistakes, we attribute this
to an “editing error.” You can call it a plain
dumb mistake. Sorry.
July 26, 2005
MEADOWS SEEMS SECURE
HEY GOV, HOW ABOUT RACING
Last week, when Magna Entertainment announced it was redirecting construction monies
from The Meadows to Remington Park, HTA inquired of MEC CFO Blake Tohana how the refinancing might affect HTA member The Meadows. Mr. Tohana did not reply, but yesterday
an MEC conference call gave a hint. The
company’s chief executive, Tom Hodgson, identified five key properties as core operations
“with the greatest potential for value creation,”
and The Meadows was not one of them. He did
say, however, that MEC would “aggressively
pursue alternative gaming opportunities” at
Remington Park, The Meadows and Gulfstream
Park, and said results at The Meadows could
jump by between $50 million and $60 million with
the introduction of slots. So while MEC said it
plans to sell at least $150 million worth of assets in the next 12 months to pay down debt,
The Meadows is not likely to be one of those
assets. MEC recently sold Flamboro Downs in
Ontario for $64 million, taking an impairment
charge of some $10 million, which Hodgson said
was “not pleasant, but the right strategic move.”
MEC also owns Thistledown in Ohio, Portland
Meadows in Oregon, and Great Lakes Downs
in Michigan, among other properties, along with
the Horseracing TV cable network and a onethird interest in the Racetrack Television Network.
The governor of Indiana, Mitch Daniels, has logic
of his own, and we apologize if we cannot understand it. The governor now says that since video
gambling machines openly operating in many of
the state’s bars, social clubs and truck stops are
illegal, one way to solve the problem is to legalize them. Daniels says that while he generally
opposes an expansion of gambling, he wouldn’t
consider that approach as an expansion. Okay,
governor, if you say so. But logic would also seem
to dictate that legalizing pull tabs or VLTs or
whatever at Indiana’s two racetracks, which employ hundreds, would not be an extension of gambling either, since people already go there to
gamble.
BETFAIR SEEKS FOOT IN DOOR
Nancy Hanks, world champion trotter from 1892
to 1894, will be reburied, along with 17 other great
horses, at historic Hamburg Place in Kentucky.
Preston and Anita Madden and their son Patrick,
who own the nursery that has been in existence in
the family since 1898, say the new cemetary will
be more accessible to the public. HTA, meanwhile,
will offer a beautiful 1897 chromolithograph of
Nancy Hanks, driven by her famed driver Budd
Doble, in its College Scholarship Art Auction
in Lexington Saturday morning, Oct. 1.
Controversial Betfair, which has circumvented Australian opposition by seeking a license in Tasmania, is seeking to do the same here. It has approached the HBPA, NTRA, Breeders’ Cup and
individual tracks for partnering, but the company
has been involved in another investigation in Australia after stewards found an “unusually
high” amount of money bet on two odds-on
favorites to lose and said the circumstances
warranted further investigation.
17 PAY UP FOR $1.5 MIL HAMBO
Owners of 17 3-year-old trotting colts paid $12,500
each this morning to enter the sport’s richest trotting race, the $1.5 million Hambletonian at the
Meadowlands. Eliminations will be raced Saturday night to determine the field for the classic on
Saturday, August 6. Ken Warkentin and Classic
Photo are the early favorites. The Hambletonian
Oaks, the $750,000 companion feature of the
Hambletonian, drew 27 filly entrants, and three
eliminations will be raced on Saturday night’s
Meadowlands’ card.
NANCY MOVES; WE HAVE HER
July 27, 2005
SUN SHINES IN FLORIDA
DARK HEADLINES DOWN UNDER
The Speaker of the House in Florida, Allan Bense,
now says he could call a special session in October, or possibly November, to write rules for South
Florida slot machines. “I think it’s going to have
to happen,” Bense was reported to have told his
top deputies, a pleasant change from the
legislature’s adjournment last spring without taking any action on the matter. Bense was quoted
by south Florida’s Sun-Sentinel as saying House
and Senate negotiators are inching closer to compromises on the two chief slot issues -- how much
to tax the revenue, and whether to allow Vegasstyle slots or only bingo-style machines.
Chemicals in racing are not solely a North American issue. They are commanding black headlines in New Zealand and Australia as well. Yesterday, one of New Zealand’s best known trainers, Mark Purdon, pleaded guilty in
Christchurch to acting “in a manner detrimental to the interests of harness racing.” Purdon
admitted to administering “a substance” twice
to a pacer in his care, but said he did not know it
was propantheline bromide, or Blue Magic.
Purdon said he was introduced to the supplier of
the stuff, Robert Asquith, by his principal owner,
John Seaton. Both are dead, reportedly suicides,
although the Christchurch coroner has not gotten around yet to officially confirming that much
publicized fact. Purdon faces suspension from
racing and a fine of up to $25,000 when he is
sentenced in two weeks.
BROCK COULD BE BIG PLAYER
When Bob Roberts writes racing in the Cleveland Plain Dealer, people pay attention. It
was news, therefore, when Roberts speculated
in his dispatch this morning about whether
Brock Milstein, the chairman of HTA member
Northfield Park and senior VP of HTA, might
be interested in buying Thistledown if Magna
Entertainment should decide to sell it. That
possibility arose earlier this week when Magna president and CEO Tom Hodgson left
Thistledown out of his list of Magna’s “premier” tracks, and hinted that some lesser Magna lights might be sold. The Meadows near
Pittsburgh also was not named by Hodgson as
a premier asset, although he did say its business could be grown by $50 to $60 million with
the expected advent of slots in Pennsylvania
next year. Roberts went farther in his speculation, asking if Milstein “would be more interested in The Meadows” if it were put up for
sale, and he quoted Northfield’s CEO, Tom
Aldrich, as saying, “That’s a very good question. Brock’s heart is in Cleveland, but slots
are not in Ohio.” Roberts suggested
that if it did, Magna “might be cradling
Thistledown in its arms.”
While this was going on in New Zealand,
Sydney’s leading thoroughbred trainer Gai
Waterhouse was making headlines in Australia.
Her horse Love You Honey turned up positive
for cocaine after a race April 25, and Ms.
Waterhouse now says her daughter reports
Sydney is “awash” with cocaine and the positive could have resulted from stable employees
visiting nightclubs where cocaine use is “epidemic” according to Ms. Waterhouse’s son and
daughter. One groom in the Waterhouse stable
has admitted to being a cocaine user, and Ms.
Waterhouse insists “nobody has given this horse
cocaine.”
BIG MONEY ON THE LINE
Four $250,000 finals in the Classic series for older
horses, and two $100,000 eliminations for next
week’s $1.5 million Hambletonian, will be raced
Saturday night at the Meadowlands. In addition,
there will be $632,000 in purses on Mohawk’
Saturday night card.
July 28, 2005
WOODBINE LIVE! AND HUGE!
TWOGUNS SHOT DOWN
Woodbine Entertainment Group, in partnership
with The Cordish Company, a Baltimore-based
development company, announced today a $310
million project to develop a 25-acre entertainment district on Woodbine’s spacious grounds
near the Toronto airport. To be called Woodbine Live!, the plan is to transform Woodbine
Racetrack into a thriving entertainment destination, including movie theaters, a multi-purpose
live performance hall, restaurants, bars, clubs,
retail shops, and a hotel with pool oasis, all in a
vibrant mainstreet setting. The mayor of
Toronto, David Miller, called the project “remarkable because urban design is such an integral part of the plan. These storefronts, walkways, fountains and so on have the potential to
contribute greatly to the overall beauty of our
city” Woodbine Live! will be located on the
northwest side of the track, accessible off busy
Highway 427 by two main entrance arteries.
Woodbine chair and CEO David Willmot said,
in announcing the project at a press conference
today, “We wanted a tourist and entertainment
development that is synergistic with the energy
and excitement of horse racing, as opposed to a
conventional development that goes dark at 5
p.m.” He said the Cordish company shared that
vision and brings a wealth of experience to creating it. Willmot said some 1,100 jobs will be
created over the two-year construction period,
and 2,300 will be generated permanently when
the complex is completed. Woodbine Live! is
scheduled to open by the end of 2007.
The Bureau of Indian Affairs has rejected an
Indian election that was underwritten in part by
Empire Resorts, the owner of Monticello Raceway. Empire, hoping to build and manage a casino owned by the Cayuga Nation, helped back
an election in which three tribal members replaced the traditional government of the Cayugas, a small New York tribe without a reservation. The three -- Timothy Twoguns, Gary
Wheeler and Michael Wheeler -- were told by
Bureau of Indian Affairs regional director
Franklin Keel that “the level of support for
changing the form of government of the Cayuga
Nation is insufficient,” and that the federal government would not recognize the election.
Twoguns had said Empire Resorts had paid for
expenses of the tribal election, which was
shunned by members who only recognize traditionally appointed chiefs. The traditional sixmember governance of the tribe includes at least
four members who oppose casinos, including
Clint Halftown, who originally signed a deal with
Empire and later announced opposition to the
partnership, according to the Albany Times
Union. The paper quoted Joseph Heath, a lawyer representing some of the traditional tribe
members, as saying the ruling is “a severe blow
for Empire,” which he said “had tried to overthrow the government of the Cayugas.” Assemblyman James Brennan, a Brooklyn Democrat
who took part in the hearings on Indian land
claims in New York state, said, “Empire was
clearly involved in an effort to manipulate the
election and sort of hijack the will of the tribe.”
It was Brennan who wrote the Bureau of Indian
Affairs in late June alerting them that Empire
was trying to influence the Cayuga government
to ensure that it would settle land claims against
New York in return for rights to a casino. An
Empire spokesman declined to discuss the
matter beyond a prepared statement.
POULIN IN DEEPER IN NY
The FBI has revealed that former harness trainerdriver Rene Poulin told them that he milkshaked
horses for thoroughbred trainer Gregory
Martin for five months in 2003, and that
one gambler said after one race, “You
must have had in hi-test today.”
July 29, 2005
TAX LEGISLATION INTRODUCED
OHHA DROPS OUT OF OHRIA
Three U.S. senators have introduced legislation
that could revitalize horse racing ownership if it
passes. Republicans Mitch McConnell and Jim
Bunning of Kentucky and Democrat Blanche Lincoln of Arkansas have introduced the Equine Equity Act, which would put horses on an equal tax
plane with other enterprises. Jay Hickey, president of the Washington, DC-based American
Horse Council, said the legislation was well
named, since “it would eliminate the disparate
treatment that horse owners and breeders receive under several outdated and ill-conceived
federal laws, including the federal tax code.”
Under the proposed legislation, horses would be
made eligible for capital gains treatment after 12
months, similar to other business assets; all race
horses would be placed in a three-year category
for depreciation purposes; and horses would become eligible for federal emergency assistance
under circumstances presently enjoyed by other
livestock and crop producers.
The Ontario Horse Racing Industry Association,
long considered the shining example of effective
cooperation in horse racing, suffered a serious
blow yesterday when the Ontario Harness
Horse Association announced its board had
unanimously approved withdrawing from
OHRIA. The chairman of OHRIA, Tom Deacon, said of the defection, “OHHA has always
been a restless participant in OHRIA. Now
OHRIA is left to redefine itself. At next
Wednesday’s OHRIA meeting we will determine what will happen next. It is my hope that
the remaining participants will wish to continue
with the organization even without their vagabond friend.” OHRIA, under its former director, Jane Holmes -- winner of HTA’s Messenger Award in 2002 for her pioneering work in
helping unite the industry in Ontario -- played
a significant role in working with the Ontario
Lottery Commission to bring slots to Ontario’s
17 tracks. Ms. Holmes now is a key member
of the executive staff at Woodbine.
Under the present tax code, gains from sales by
individuals of property used in a trade or business, including horses, qualify for long-term capital gains and are subject to the maximum capital
gains tax of 15%. But where they are held for
breeding, racing, showing or draft purposes, they
must be held for 24 months to qualify for the 15%
rate, unlike all other business assets, except
cattle, which qualify after being held for 12
months. Passage of the new legislation would end
this discriminatory treatment of horses under the
tax code and allow owners to enjoy the reduced
15% rate after holding a horse for one year, except where it was held specifically for sale.
Horses also would be eligible for the same disaster assistance as other livestock, and senator
McConnell says his new bill will remove
that unfair tax burden “that discourages
investment in the horse industry.”
$90 MILLION TO GO ONLINE
That’s what International Game Technology paid
this week to acquire SanFrancisco-based
WagerWorks, which provides content to Internet
gaming sites including the World Poker Tour’s
online casino and Richard Branson’s Virgin Group
in Great Britain. IGT chairman and CEO T J
Matthews says the purchase will let IGT distribute games across the Internet, wireless phones,
PDAs and interactive television.
HTA, HANOVER HONOR GROOM
HTA chairman Chris McErlean and Hanover Shoe
Farms president Jim Simpson will present HTA’s
Caretaker of the Year Emma Johansson with a Jim
Ponter oil painting of herself with her two champions of 2004, Windsong’s Legacy and
Housethatruthbuilt, during the Meadowlands’ huge racing card tomorrow night.
DOG DAYS FOR GREYHOUNDS
Last week was not a good week for the greyhound industry. In Connecticut, once popular
Plainfield Greyhound Park announced it would
close its doors after its Aug. 12 simulcasting
session. The track had given up live racing three
months ago, but was continuing with simulcasting, but is abandoning even that refuge now after being unable to pay for incoming signals.
Karen Keelan, executive vice president of the
30-year-old track, said live racing could return
next year on a limited basis, but no applications
have been filed with the state. Keelan said,
“With the casinos having racebooks 15 minutes
away, they took the majority of our customers.
We were unable to sustain the financial losses.”
The town of Plainfield, meanwhile, said it will
continue to bill the track some $90,000 in annual property taxes, but has not received the
$50,000 payment due July 1. Plainfield Greyhound opened in 1976 and at its zenith contributed more than $2 million a year to the town’s
economy, and $4.9 million to the state in 1976.
Last year Plainfield got $155,000 and Connecticut $109,394. The track’s viability began to fade
when Foxwoods opened in 1992 and worsened
when the Mohegan Sun began operations in
1996. A local area developer plans to build a
domed auto racetrack and convention center
nearby and incorporate the dog track in it, and
his plans were approved by the city’s planning
and zoning commission, but now are being challenged in court.
In Iowa, meanwhile, the former president of the
National Greyhound Association revealed that
he had been a hidden 50% owner of a kennel at
the Bluffs Run greyhound track in Council Bluffs.
According to the Des Moines Sunday Register,
well-known breeder and owner Herb
(Dutch) Koerner also admitted working
with his partner to have ineligible dogs
falsely certified as Iowa-breds. No charges
August 1, 2005
have been brought against Koerner as yet.
No charges have been brought in Tucson, either,
against a kennel owner who received front page
treatment in local papers after dozens of dogs were
discovered in flea and tick infested quarters. The
Arizona Department of Racing apparently did not
consider the situation serious enough to warrant
penalties, but the Arizona Daily Star found it newsworthy enough to give the sport a black eye in
Arizona’s second largest city.
WISCONSIN GOV PULLS PLUG
Jim Doyle, the governor of Wisconsin, has vetoed
a Republican proposal to extend video gaming and
simulcasting beyond Indian reservation borders.
Doyle said in his veto message that “the expanded
use of video gaming devices for pari-mutuel wagering could raise serious constitutional concerns
by expanding gambling.” Wisconsin’s constitution
allows horse and dog tracks and Indian casinos,
but restricts the tribal casinos to reservations or
tribal trust land.
IN INDIANA, AMBIGUITY
The Ft. Wayne, Indiana, Journal Gazette, confused by mixed signals on video gaming in the
state, is asking Gov. Mitch Daniels to clarify his
administration’s position. The paper noted that
in one corner the Indiana State Excise Police are
writing citations, confiscating money and disabling some of the 20,000 to 25,000 estimated
Cherry Master machines in bars, taverns, fraternal organizations and truck stops across the
state, while the Hoosier Lottery is seeking a legal opinion on whether it has the authority to offer video gaming machines. Daniels declined an
interview, but did say, “I prefer frankly to see us
get to a point where if these machines are going
to be available recreation in Indiana that they are
done above board in a regulated fashion and remove the hypocrisy of the status quo.” Your
two racetracks would be a perfect setting,
governor.
August 2, 2005
BETFAIR AND THE BACK DOOR
LOTTERIES FEELING A PINCH
Betfair, the English betting exchange that is trying desperately to get a foothold in America and
Australia, and is almost universally opposed by
the racing industry, has found a chink in the Australian armor by hustling Tasmania, the island
of 456,000 people that lies directly south of Australia. The premier of Tasmania, Paul Lennon,
wants Betfair, and the harness racing chairman
John Hammond recently gave his personal approval of letting the exchange operate there, although his board has not taken an official position. The thoroughbred industry strongly opposes the idea, and so does racing in Australia,
and Hammond accused the head of thoroughbred racing on the island of pushing the Australian view rather than thinking of Tasmania.
Hammond went farther, suggesting that Harness Racing Victoria and Australia’s other leading harness racing bodies “sit down with the
Betfair people, as he did, and hear what they
had to say.” John Anderson, the chief executive of Harness Racing Victoria, had a quick
answer to that. He said it will never happen.
“We would never even entertain the thought of
meeting and talking to Betfair. Frankly, I am
staggered by John Hammond’s personal view on
the whole issue.”
With lotto sales in what the New York Post calls
“free-fall -- down 22% through July 24 over the
same period last year,” speculation is that the
growing popularity of VLTs are cutting sharply
into Lotto, Mega Millions and keno-like Quick
Draw, all of which are down from last year. Lotto
sales, for example, totaled $157.4 million this
year thru three weeks of July, as opposed to
$201.7 million in the same period last year. The
Post also said experts expect that “huge videogaming parlors planned for Yonkers and Aqueduct” will hurt Lotto and other games even more.
Interestingly, scratch-off instant games have
done well, showing a 10.6% increase this year
over last. And no tears need be shed for the New
York lottery overall, with sales up 5.3% over the
same period last year.
JUDGE CLEARS PA SLOTS
A United States District Judge has dismissed the
lawsuit filed by a disgruntled applicant against
Pennsylvania governor Ed Rendell and other legislators. Pittsburgh developer C. J. Betters, who
wanted to build a thoroughbred track and racino
in Pittsburgh, had filed the suit, but the federal
judge tossed out the action on grounds that the
state and its top officials are immune from liability. The judge also dismissed the Gaming
Control Board from the suit.
Pennsylvania’s Supreme Court upheld the
constitutionality of the slots law last month.
In a related development, Informa Telecoms &
Media’s latest report, Mobile Gambling, projects
that form of gambling as poised to rocket from
current annual revenue levels of $1.2 billion to
$7.6 billion by 2010. The author of the report,
Stuart Dredge, said that to reach that goal, operators and the companies that run mobile gambling services will have to negotiate legislative,
technological and cultural hurdles. The report
says Europe is likely to remain the largest market for mobile gambling, followed by Asia-Pacific,
with North America described as “the great unknown” because of legislative and regulatory issues.
ESTOK, WOLF, FLY HTA COLORS
HTA chief counsel Paul Estok and former HTA
executive assistant Maury Wolf spoke on legal
and rebating issues in racing today at Bennett
Liebman’s Albany Law School symposium in
Saratoga Springs, NY. The two appeared with Ed
Martin of RCI and Greg Avioli of the NTRA,
the panel moderated by New York Racing
Board member Cheryl Buley.
August 3, 2005
SOME SLIGHT DISAGREEMENTS
LEADING TRAINER GROUNDED
Bennett Liebman’s annual Albany Law School
Symposium on racing drew a standing room only
crowd yesterday, and produced some friendly and
a few not-so-friendly jabs from participants with
differing viewpoints. Perhaps most significant
were the glowing remarks of Neil Getnick, the
court-appointed federal monitor of New York Racing Association’s reformation movement. Getnick
said, in telling how NYRA had taken steps to correct deficiencies, “Simply put, NYRA has unequivocally said ‘yes’ to racing integrity.” NYRA
officials obviously were elated at Getnick’s remarks, president Charles Hayward being so
pleased that he joked from the podium, “I think
it might be a good idea for Neil to come up and
give his speech again.” Hayward said “The monitor has been the best thing that NYRA has had in
its recent history.” And NYRA co-chairman Steve
Duncker greeted Getnick after his presentation
by saying, “Absolutely stunning.” Not quite as
enthusiastic or pleased over Getnick’s remarks
was Michael Hoblock, chairman of the New York
Racing and Wagering Board. He said in a written statement he was “surprised, confused and
disappointed over Getnick’s remarks,” adding
that “they were not neutral or impartial as you
would expect from an independent monitor.” Part
of Hoblock’s displeasure came from the fact that
Getnick never met with Hoblock during the past
year and a half of his monitoring of NYRA. Tom
Precious, writing for Blood-Horse, said, “For
months, industry officials have privately criticized
Getnick for being too close to NYRA officials.”
Also sparring were Hayward and Jim McAlpine
of Magna Entertainment. McAlpine said Magna was “very interested in participating in the
bidding process” for the NYRA franchise, but
Hayward took strong exception to some of
McAlpine’s references to NYRA’s past
and counterattacked with pointed questions about Magna.
Sean Campbell, the leading trainer at Saratoga
Gaming and Raceway, has been suspended from
the track pending an investigation of charges of
animal cruelty. All of his horses have been
scratched for the last four days, according to CBS
channel 6 in Albany. The station said the New
York Racing and Wagering Board was following
up on claims by witnesses who said they saw
Campbell beating a horse. Chairman Michael
Hoblock said such claims were the basis of many
investigations, and that it could take three to six
months to resolve the issue. Saratoga’s vice
president of racing, Skip Carlson, told the station the matter was in the hands of the racing
board, and the track would support any decision
it made.
Batavia Downs, meanwhile, announced that as it
resumes live racing after an 18-month hiatus, it
will continue its policy of not allowing family members to compete against one another. Management will not allow brothers or immediate family
members to drive in the same race, a move criticized by some and applauded by others in its driving colony. Michael Kane, vice president of racing and gaming for Batavia Downs, said, “We’re
not casting any aspersions upon anyone. There
is the potential for things to take place that are
not in the best interest of racing and by enforcing
this rule we eliminate that potential.” The rule
carries special significance at Batavia because
brothers Kevin Cummings and John Cummings
Jr. finished first and second in races won at the
Buffalo Raceway meeting just concluded. John
Cummings Jr. called the rule “a great injustice,”
saying he drove the winners of $445,587 and his
brother $480,212 at Buffalo. But trainer-driver
Rob Beback complimented management for thinking of public perception. He added, “If you have
to make a split-second decision of letting a guy
go at the first quarter, you’re not going to
park your brother.”
August 4, 2005
SCOTT’S LAWYER YELLS BIAS
A REALLY FAR OUT TRACK IDEA
Deborah Deitsch-Perez, who carries the legal
briefcase for Shawn Scott, has accused the state
hearing officer who found Shawn Scott “not a
trustworthy person” of making false assumptions
and ignoring evidence. The charges, in the Syracuse Post-Standard, said, “What the hearing officer did was he took the testimony of (racing
board) staff at face value...and then found a reason to dismiss the testimony of witnesses for
Scott.” The hearing officer, Russell H. Baller
Jr., heard 15 days of testimony last winter, in connection with a Scott appeal of the racing board’s
2003 denial of a license to operate racing in New
York. Ms. Deitsch-Perez said, “You might as well
not have had a hearing.” Baller said in his report that Scott lied to state regulators on his license application and then submitted false documents to cover up his lies. He also reported that
Scott had appointed a convicted felon to run the
track and gave testimony that was “not credible.”
Baller concluded that Scott “is not fit to be licensed as a track manager in harness racing.” In
a separate development, the Washington Post
carried an editorial saying “promoters of legalizing slot machines in the nation’s capital were virtually thumbing their noses at D.C. election laws.
Fortunately, the board found that gambling supporters had committed ‘significant and pervasive
irregularities and improprieties of a magnitude
never previously experienced in this jurisdiction’
and it imposed a penalty to match: For the first
time in its history, the board levied fines in the
context of an initiative petition, in the amount of
$622,880.” The paper said offshore gambling entrepreneurs who backed the project spent, according to the board’s counsel, at least $1.7 million. The fines, however, were against a local
citizen’s committee with $3,410 in the bank.
Scott’s name had appeared earlier during the Post’s coverage of Virgin Island
backers of the initiative.
If you haven’t been able to contact William
Coplen, the former general manager of the Red
Mile in Lexington, there is a good reason. He
is now with an organization called Exchange Unlimited LLC, and he has been spending much
of his time in Ulaanbaatar, the capital city of
Mongolia, on the northern border of China.
William was a prime mover in a project undertaken by the Asia-Pacific Equine Investment
company, formed last year in Lexington to establish a world-class venue and racing product.
Founder Joe Flynn heads the group, which includes former Kentucky governor Martha
Layne Collins, horseman Larry Richardson,
architect Cheanault Woodford, and Coplen.
Asia-Pacific Sports Promotion, a subsidiary of
the company, will operate a racing and gaming
operation in cooperation with the Mongolian
company Roaring Hooves, which is comprised
of numerous individuals and existing racing organizations. Horses are big in Mongolia. You
remember the Mongol hordes from your history classes. Flynn got the idea when flying
over a racetrack as his plane approached
Ulaanbaatar, and he made inquiries of the U.S.
Ambassador about racing there. Mongolia was
enthusiastic, and the group hopes to hold a full
race meeting there in 2007.
ENTHUSIASM IN ALBERTA, TOO
There is optimism in the province of Alberta, too,
where councillors in Calgary approved, by a vote
of 8 to 1, to allow land proposed for a major new
racetrack there to be rezoned. Jonathon Huntington, writing in the Calgary Sun, said the United
Horsemen of Alberta still have some regulatory
matters to arrange, including submitting detailed
proposals and obtaining land scraping permits, but
Huntington thinks those issues will be resolved
without difficulty. Dr. David Reid, chairman of
Horse Racing Alberta, called the council approval “a huge day for horse racing.”
August 5, 2005
$1.5 MILLION HAMBLETONIAN
MEADOWS A “HIGH PRIORITY”
Harness racing’s biggest and most important race,
the Hambletonian, takes center stage at the
Meadowlands tomorrow afternoon. CBS will
televise the event, as usual, starting at 2 p.m.
eastern time, with Gary Seibel again emceeing
the show, working with the talented Caton Bredar
and Jay Privman. The presence of the three
knowledgeable racing personalities, and the interesting cast that includes Chicago-area owned
favorite Classic Photo, a winner of $411,801 this
year, with Ron Pierce driving, as the favorite,
assures an exciting afternoon. The colt, an
$87,000 yearling at the Kentucky Standardbred
Sale, enters the classic with four straight victories in races worth $100,000 or more. He is one
of two colts by S. J.’s Photo, is trained by Erv
Miller, and is owned by H. W. Wright of Morton,
IL, Dennis and Kevin Lakomy of Chicago
Heights, IL, racing under the nom de course of
Mystical Marker Farms, and Jack and Peggy
Hood of Valparaiso, IN. Another S. J.’s Photo,
Vivid Photo, owned by trainer-driver Roger Hammer of Bedford, PA and Todd M. Schadel of Gratz,
PA, was a $30,000 yearling at the Harrisburg, PA,
Standardbred Sale and has won five straight and
9 of 11 races this year entering the Hambletonian.
Others in the richest Hambletonian ever, and their
purchase prices as yearlings, are
Gettindownanddirty, $80,000; Mr. Dream Om,
$30,000; Muscle Bound, $175,000; Muscle
Memory, $17,000; Northern Ensign, $40,000 Canadian; Racino, $30,000; Self Professed,
$30,000; and Strong Yankee, $52,000. In an interesting contrast last night at the Meadowlands,
Keystone Savage, a $12,000 yearling, won the
sport’s richest race for 2-year-old trotters, the
$460,000 Peter Haughton Memorial, while the
companion $390,000 Merrie Annabelle for 2-yearold trotting fillies was won by Miss Wisconsin, who cost $150,000 last fall as a
yearling.
Magna Entertainment president and chief executive Thomas Hodgson, in a press conference this
morning, indicated that MEC is looking for a partner to operate The Meadows’ racino when it is
up and running, possibly in 2006, and although
he did not name names industry speculation is
that Boyd Gaming may be the partner. Hodgson
said of The Meadows, “There is no financing in
place (for building the racino) but clearly it’s a
priority.....It’s very high priority for us.” Hodgson
said Magna did not intend to sell Gulfstream or
Santa Anita, but that “the sale of excess real estate is absolutely the critical part of our debt-reduction strategy.” Hodgson revealed that Magna Entertainment lost $26.9 million in the three
months ended June 30, bringing total losses for
2005 to $31 million, and three and one-half year
losses to $215,128,000. “Our financial results
for the three and six months ended June 30 are
disappointing in absolute terms,” he said, “but at
the same time they are in line with our expectations for 2005 and are consistent with our previously stated expectation that Magna Entertainment will continue to incur operating losses
through 2006 but is expected to achieve sustainable operating profitability in 2007 and beyond.”
MI Developments, the parent company of Magna Entertainment, reported earnings of $22.3
million in the three months ended June 30, up
87.3% over the same period last year. Revenues
rose 16.4% for that period, and net income rose
67% and revenues were up 14.7% for the first
six months of the year. In New York, the New
York Racing Association reported drops of
15.17% in attendance and 11.2% in handle at
Belmont’s summer meet, in part reflecting the absence of a Triple Crown bid in the Belmont
Stakes. TVG, meanwhile, passed $100 million in
bets during its second quarter, a first, and
Youbet.com reported record second quarter
net income of $1.3 million.
August 8, 2005
THE SPORT’S GREATEST DAY
TRY THIS FOR HORROR STORY
Harness racing’s greatest day turned out to be just
that on Saturday, with new racing records, unprecedented purses and the largest handle in the
sport’s history -- over $9 million bet at the Meadowlands and off-track. Between its Friday night
and Saturday afternoon programs, the Meadowlands offered eight races with purses of
$300,000 or more, and $3.9 million total purses
on Hambletonian Day. They were topped, of
course, by the $1.5 million Hambletonian and
its “country boy” winner, Roger Hammer, who
outsmarted all of the sport’s top stars in a flawless drive with his ‘county fair trotter’ that he
and his partner bought for $30,000 as a yearling and now has winnings of $846,574. Hammer has been a star at the Pennsylvania fairs
for decades, and a familiar figure at the state’s
pari-mutuel tracks as well. He is cagey, and he
stayed away from last Tuesday’s Hambletonian
press conference, opting to race at the county
fairs which he dominates. Hammer credited Mal
Burroughs, who became the second amateur to
win the Hambletonian when he guided his
Malabar Man to victory in 1997, with helping
him make his decision to drive Vivid Photo himself and not use one of the Meadowlands’ elite
corps of catch drivers. “After I won the elim,”
he told Dave Little of the New York Daily News,
“Mal told me, ‘Drive him yourself. You only get
one chance in a lifetime to have a shot to win
the Hambletonian.” Hammer took it, and no one
could have driven the horse better. He said he
figured everyone thought he would get crazy and
go for the lead, but he said he planned all along
to follow the favorite, Classic Photo, to the head
of the stretch. “I figured I’d give my horse a
breather for a change, and I knew if he carried
me that far my horse could outbrush him. He
never gives it up.” He was right.“I was
like a politician,” Hammer said. “I
fooled everybody and then I won.”
Imagine finding yourself in a courtroom with more
than a dozen lawyers, and a judge asking them all
to agree. That was the scene last Friday in Utica,
NY, where a bankruptcy judge listened to the competing plans for Vernon Downs submitted by Jeff
Gural and Shawn Scott. The startling surprise was
that only one lawyer had any objection, and that
lawyer, representing unsecured credited Dominick
Giambona, made some points that the judge
thought reasonable, and which Gural’s plan already had amended. Gural is offering to raise
purses sixfold at Vernon Downs if his plan is accepted, and offer high purses at his Tioga Downs,
basing them on potential slots revenue at both
tracks and a combined circuit. If Vernon’s horsemen cannot understand the benefit of this after
sitting idle for a year, and if their advisors don’t
council them to support the idea, they may live to
regret it.
BLUMENTHAL’S BANS
The attorney general of Connecticut, Richard
Blumenthal, does not like gambling and never did.
He particularly does not like Internet gambling,
considering it a violation of the 1961 Wire Act. A
month ago the state shut down a Web promotion
by Foxwoods Resort Casino, one of the biggest
gambling operations in America. Earlier it has
blocked the Connecticut Lottery from introducing
a computer-based gambling game. Now it has gone
a step farther, and told Penn National Gaming that
it will not allow Connecticut residents to wager
using eBet USA. Paul Young, executive director
of the Special Revenue Division in the state, said,
“In Connecticut you cannot use the Internet for
online gambling. Period. Telephone gambling is
okay.” In response to the Connecticut stand, Penn
National has posted a notice on its eBet Web site
that reads, “By order of the state of Connecticut
we can no longer accept wagers from Connecticut residents.”
August 9, 2005
BUCCI GUILTY, SERIOUS TIME
FARALDO BACKS SCOTT PLAN
Dan Bucci, former general manager of Lincoln
Downs, was found guilty yesterday of bribery
conspiracy and wire fraud by a federal jury in
Massachusetts, where his trial was moved after
an earlier trial had resulted in a deadlocked jury
in Rhode Island. This federal jury heard two
weeks of testimony and deliberated three days
before it found Bucci and Nigel Potter, the
former chief executive of the British firm
Wembley PLC, and the company itself, guilty.
Bucci was convicted of one bribery conspiracy
charge and four wire fraud counts, Potter was
convicted of the bribery conspiracy and three
wire fraud counts, and the company was deemed
guilty of the bribery charge and two wire fraud
counts. The charges involved plotting in 2000
and 2001 to bribe the law firm of former Rhode
Island House Speaker John Harwood to win legislative support for additional video lottery terminals for their dog racing track in Lincoln,
Rhode Island, and blocking plans of the
Narragansett Indian tribe to build a rival casino.
Defense attorneys claimed the pair were not
planning a bribe, but rather a multi-million dollar “performance bonus” for Dan McKinnon,
Harwood’s law partner who was Lincoln Downs’
legal adviser. No payment was ever made, and
Harwood and McKinnon were not charged with
any wrongdoing. Bucci and Potter are free on
bond until their Oct. 28 sentencing, when Bucci
faces up to 25 years in prison and a $1.25 million
fine. Potter could get up to 20 years and a $1
million fine. The track, since sold, faces $500,000
on each of the three counts on which it was convicted. Lawyers for both Bucci and Potter said
they plan to appeal. The trial had been moved
to Worcester, Massachusetts at the request of
defense attorneys after the first trial in Providence, Rhode Island, produced no verdict. Potter testified this time in his own
defense, but Bucci never took the stand.
The chairman of the United States Trotting Association, who also serves as attorney for the Harness Horsemen’s Association of Central New York,
was quoted today as preferring Shawn Scott’s plan
for purchasing Vernon Downs to one put forth by
harness horse owner-breeder Jeff Gural.
UticaOD.com quoted Joe Faraldo as saying, “If
someone comes in and buys Shawn Scott and
Vestin out, this thing ends tomorrow, plus two
weeks for a new license.” He also said Gural had
failed to meet some promises he made, such as
returning racing by June 1, which seems strange
since a federal bankruptcy court currently is
weighing the competing plans and neither Gural,
Scott or anyone else could have fulfilled such a
promise. Gural told UticaOD.com there was
no way he could have started racing June 1 because the New York Racing and Wagering Board
said it would not grant Vernon a racing license
as long as Scott, who it has twice denied a license, owns 52% of the track. Faraldo also
said Gural had promised to repay money that
had been taken from the horsemen’s purse account to pay track operating expenses, but Gural
says he already has paid about $120,000 to
cover bounced purse checks from last year, as
well as $55,000 owed to the horsemen’s association. Gural says he has lent Vernon $1.5 million, and added that some horsemen appreciate
what he has done and some don’t. The news service quoted trainer Jim Cruise as saying, “Until
Shawn Scott’s out of here, we’re done. I believe
our only hope is Jeff Gural.”
HUGE WEEKEND IN JERSEY
Somebody still loves racing. Last weekend more
than 75,000 turned out at the Meadowlands and
Monmouth Park, and bet more than $21 million.
The Hambletonian drew its biggest crowd in
15 years -- 31,245 --and a record single day
handle of $9,015,019.
August 10, 2005
MEADOWS READY FOR ADIOS
EVERYWHERE BUT HOME
Thirteen 3-year-old pacers dropped in the entry
box for Saturday’s $421,800 Coors Delvin Miller
Adios, feature attraction of Grand Circuit week at
The Meadows. That called for eliminations -- two
$50,000 events -- with last year’s colt champion
Village Jolt and driver Ron Pierce the 7-to-5 favorite in the first and the swift P-Forty Seven,
driven by the Meadows’ perennial champion Dave
Palone, top choice in the second. The top four in
each elimination advance to the final.
The Ohio division of HBPA, which recently talked
Thistledown management into not sending its simulcast signals to Northfield Park, now has approved transmission of thoroughbred signals from
Ohio to TVG, XpressBet and Youbet.com, but has
not yet come to terms with the Ohio-owned
AmericaTAB, which is owned by Beulah Park and
River Downs, both Ohio tracks. The chairman
of the Ohio HBPA’s purses and wagering committee, Bob Reeves, has issued statements that
Ohio harness track operators have called “absolutely false.” Charles Ruma, the president of
Heartland Jockey Club, which owns Beulah Park
in Columbus, wrote to Dan Theno, the executive
director of the Ohio HBPA recently, and called
its termination of simulcast signals “a sad day
for Ohio racing, especially in Cleveland.” He too
called Reeves’ statements erroneous, and said
“the Cleveland racetracks, and mostly Thistledown, receives the major share” of the purse pool
as determined under Ohio racing laws. Ruma told
Theno, “There are four harness tracks in this
state, all of which send their signals to thoroughbred tracks that are open at the same time. The
purses generated from wagering on harness racing ontrack goes directly into purses generated
for the horsemen at that track. I suspect that
Thistledown is taking wagers on Scioto Downs,
and Toledo Raceway, as well as Lebanon,
throughout the whole year. I also suspect they
even take some of Northfield’s races.” Ruma
told Theno he was “dealing with a double-edged
sword,” and said he thought it inappropriate that
Theno and Reeves were “absolutely delighted”
over cutting off Thistledown’s signals to
Northfield. Ruma said they had “dug the grave
another foot deeper as it pertains to Ohio racing... the industry’s inability to deliver fans a consistent, quality product is simply turning them
away from Ohio racing, and maybe from racing in general.”
FREEHOLD OPENS BIG MEET
The New Jersey harness racing scene shifts tomorrow from the Meadowlands to Freehold Raceway, the nation’s oldest pari-mutuel harness
track, where the 2005 meeting marks the renewal
of the sport first conducted there 152 years ago,
in 1853. The new meeting is loaded with rich
stakes, including two Triple Crown events for 3year-olds, the $390,000 Yonkers Trot and
$450,000 Cane Pace. Also on the schedule is the
$275,000 James B. Dancer Memorial, the
$150,000 Shady Daisy, the $150,000 Battle of
Freehold and the $125,000 Molly Pitcher. A host
of stakes for New Jersey-sired horses also will
be featured, on a Tuesday through Saturday
schedule of afternoon racing with a daily post time
of 12:30 p.m. and free admission for the entire
meeting.
GEWERTZ TO HAMBO, MUSEUM
Ted Gewertz, the New York lawyer who is a senior
partner at one of the city’s major law firms -Wachtell, Lipton, Rosen & Katz -- and a part
owner, it seems, of every other top harness horse
that hits the track, has new honors. He was named
Owner of the Year by harness writers last year,
and now has been elected to the board of
the Hambletonian Society and as a trustee
of the Harness Racing Museum and Hall
of Fame in Goshen.
August 11, 2005
GREAT CANADIAN DIVERSIFIES
A LAWYER’S DREAM CLIENT
Although casino business is going straight through
the roof everywhere, one casino operator thinks
the variety and appeal of his company’s properties will both expand the size of the market and
increase his company’s share. That’s the view of
Anthony Martin, president and COO of Great
Canadian Gaming Corporation, which has extended
its business beyond slots and table games in acquiring racetracks, hotels and theaters. Great
Canadian already has purchased Fraser Downs
and Sandown on the Pacific coast, and is buying
Flamboro Downs and Georgian Downs in Ontario.
Great Canadian expects to open a 222-room hotel
and theater expansion at its Rock River Casino
Resort in suburban Vancouver later this year, along
with a second theater and casino there next year.
It also purchased casinos in Halifax and Sydney,
Nova Scotia, in May. The company reported earnings of $10.5 million for the three months ended
June 30, compared to $5.4 million a year ago.
Quarterly revenue rose from $37.5 million to $68.5
million.
She is the busiest lawyer in Scottsdale. Not upscale Scottsdale, Arizona, but Scottsdale as in the
world of Shawn Scott. Her name is Deborah
Deitsch-Perez, and although she is from Dallas,
she shows up everywhere from Utica, NY, to Washington, DC, and beyond. In Utica she accused a
New York Racing and Wagering Board hearing officer of dismissing testimony favorable to Scott in
his two unsuccessful attempts to get licensed in
the state. In Washington she is trying to get an
attorney-client arbitration board to decide whether
Scott suffered monetary damages as a result of
the representation of an attorney who represented
a slots initiative in the nation’s capital involving
a group from the Virgin Islands including Scott.
That group has spent nearly $2.1 million on the
Washington slots campaign, and the attorney who
the Washington Post says “served as the public
face of the slots initiative” now says the Virgin
Island crowd owes him and his law firm $533,118
in fees. The Virgin Island folks, in turn, have
accused the lawyer -- former council member and
four-time mayoral candidate John Ray, of legal
malpractice. The Post story this morning calls a
$622,880 fine levied against the slots campaign
“a tiny fraction of the vast sums Scott and his
friends stood to gain if Ray had successfully navigated the elections board. Had D.C. voters given
their consent, Scott would have won the right to
build a gambling hall with 3,500 slot machines in
Northeast Washington, a project that would have
generated an estimated $765 million a year in
revenue. That plan must have sounded awfully
good when Scott and his associate, Rob Newell,
showed up in Ray’s office in April, 2004.” The
paper said Ray racked up huge legal bills, and
Scott and his associates paid about $340,000
when the checks stopped coming. Ray’s lawyer
said she hopes to resolve things “so that John
Ray doesn’t have to deal with these people
anymore.”
NJ CASINOS SET NEW RECORDS
The headlines were different, but all said the
same thing: “A.C. casinos set new revenue
high,” “Casinos win record $504.8 million during July,” “Casino win sets record in July,” and,
1000 miles away from Atlantic City, in Kansas
City, “July casino revenues go through the roof.”
Atlantic City’s 12 casinos won $504.8 million
from gamblers in July, a 6.5% increase over July
2004. During the month, slot revenue rose
5.3%, to $376.1 million, and table games were
up 10.2%, to $128.7 million. One analyst said
that “when you dive into the numbers a little, it
shows that slots are pretty weak on a year-toyear basis and reflects an overall shift in
strategy to table games.” Either way, it
was the biggest July in 26 years of A.C.
gaming.
GARLAND, MITCHELL HONORED
Bruce Garland, senior VP for racing industry relations for the Meadowlands and Monmouth Park,
and Hugh Mitchell, now COO of Western Fair
Raceway in Ontario after seven years as senior
VP for harness racing at Woodbine Entertainment,
have been honored by the Hambletonian Society.
The pair shared honors as recipients of the 2005
Frederick Van Lennep Memorial Award for “exceptional support of the harness racing industry
in general and specifically their endorsement and
support of classic racing events owned by the Society.” Garland was honored in particular for
his staunch support of the Hambletonian at the
Meadowlands during his tenure as senior VP for
racing of the New Jersey Sports and Exposition
Authority, and Mitchell for his support of the
Breeders Crown championships. In another
Meadowlands development, it was revealed that
nearly $1 million of the more than $9 million
record handle on last Saturday’s Hambletonian
day program came from international betting. The
Nordic Pool consisting of Sweden, Finland, Norway and Denmark bet on five of the Meadowlands’ 15 races, including of course the
Hambletonian, and added $213,876 to the total
pool. Canada contributed another $711,075 on
the full program. Big M vice president for racing operations Chris McErlean said the track
hoped that both Europe and Canada would be
betting directly into Meadowlands pools next
year.
August 12, 2005
Gutterman is not likely to remain idle long, as he
knows and handles publicity and PR as well as anyone in world racing, and horse racing executives - if not Bay Meadows Land Company -- has known
that for years.
IT’S NOT ALL WINE AND ROSES
Yesterday’s Executive Newsletter chronicled the
record new numbers being posted by casinos nationwide, and today Nevada joined the cast, announcing record June winnings of $954.2 million,
up 11.7% from last year. Gambling on the Las
Vegas strip was up 16.4%.
The casino picture was not all pleasant, however.
In Connecticut, the state Division of Special Revenue ruled that the Foxwoods Resort Casino’s new
Internet-based PlayAway game violated state and
federal gambling laws.
In Florida, former Washington bigwig and Tom
DeLay buddy Jack Abramoff was indicted, along
with his business associate Adam Kidan, by a
federal grand jury on five counts of wire fraud
and one count of conspiracy for their purchase
of the SunCruz fleet of gambling boats from
Konstantinos (Gus) Boulis, a multimillionaire
owner of the Miami Subs chain of sandwich
shops. Boulis accused Kidan of connections with
organized crime, according to the Washington
Post, and he later was killed in gangland style
driving home from a business meeting.
A CLASSIC DUMB DECISION
Bay Meadows Land Company may or may not
make it as a racing operation in its new role as
owners of Hollywood Park, but they are off to a
stupid start. As one of its first moves, Bay Meadows Land cut loose one of racing’s all-time top
publicity men, Allen Gutterman, who
served in the same capacity previously at
both the Meadowlands and New York Racing Association.
In Tasmania, the Turf Club says it is confident
it can persuade the Premier not to grant a license to the online betting exchange Betfair,
which is trying to reach the Australian market
through the Tasmanian back door. Officials from
the Australian Racing Board and Racing
Victoria, who bitterly oppose Betfair, met
yesterday with Tasmanian horsemen and
Turf Club members.
August 15, 2005
QUEBEC TO SELL THE STORE
THE BETFAIR THREAT GROWS
The entire store, lock, stock and barrel. SONACC,
the governing body of Quebec racing, in collaboration with the Quebec government, published a
Request for Proposals on Friday, inviting bidders
to begin the process to buy the province’s four
racetracks, 19 Hippo Clubs, or OTBs, and an interest in 1,900 VLTs located at the four tracks.
The full notice is on the HTA Web site,
www.harnesstracks.com, and also in a weekly
Track Topics being mailed today. Requests for
proposals must be accompanied by a $500 nonrefundable payment, sent to Raymond Chabot
Grant Thornton (RCGT) at 140, Grande-Alee
East, Suite 200, Quebec City, Quebec, Canada
G1R 5P7 and then, following an initial review of
the requests for proposals, interested parties must
send by Sept. 2 at 5 p.m. eastern daylight savings
time, a document indicating their interest in participating in the due diligence process and eventually submitting a proposal for the acquisition of
the four tracks and Hippo Clubs. Those proposals must be received in Quebec before Oct. 13 at
5 p.m. Additional information can be obtained from
Mr. Jean Chiasson of RCGT at 418-647-3151, fax
at
418-647-9279,
or
e-mail
at
[email protected].
Betfair, the British betting exchange, moved closer
to getting in the backdoor of the Australian market last week. Although the premier of Tasmania
has not made a decision on licensing the outfit in
that island state, and although Australian tracks
and horsemen strongly oppose the idea, the chief
executive officer of the Australian Racing Board
announced that while he still is opposed to Betfair
operating in Australia, his board will not exclude
Tasmania from interstate betting should Betfair
be licensed there. The CEO, Andrew Harding,
said, “The question is, will there be changes to the
way the industry operates in Australia if a betting
exchange is licensed? The answer to that must be
yes, there will be changes; there will be ripple
effects, but there won’t be ripple effects in the
sense of retaliation or retribution.” interactive
gaming news reported that Harding also said he
would still try to convince Tasmanian premier Paul
Lennon that Betfair shouldn’t be given a license.
The president of the Queensland Racehorse Owners Association, Wayne Milner, had a much stronger statement than Harding concerning the issue.
As quoted by IGN, Milner said, “The fact is that
betting exchanges can’t match the returns TABs
(OTBs) provide to the industry throughout the
land, so if Tasmania goes it alone with this, then
they do so in the knowledge there is a real danger
they may be cutting a large hole in the revenue
available to national prize money. Betfair has been
strongly opposed by the Queensland government
and most other states. A decision by the Tasmanian government to go ahead would be a massive
act of betrayal of the racing industry.”
Interest is expected to be high for the unprecedented package. Magna Entertainment had expressed deep interest earlier, but has been in a
selling rather than buying mood of late. Remstar,
a Montreal conglomerate that produces motion
pictures, owns a hotel and rents refuse containers, has been interested from the start. It is not
unlikely that Great Canadian Gaming, which in the
last year has bought Sandown Park, Fraser Downs,
two casinos in Atlantic Canada, and is in the final
process of acquiring Georgian Downs and
Flamboro Downs, could be interested in
the Quebec package as it expands its holdings in racing and gaming.
NOV. BANGOR SLOTS, SORT OF
Penn National Gaming, which is turning a Bangor
restaurant it bought into a temporary slot facility,
hopes to have the operation open in November.
The gutting and renovation will cost $17 million, its new racino $75 million.
A VICTORY FOR RACING IN KY
In a victory for horse racing everywhere and particularly in Kentucky, the Kentucky Horse Racing Authority yesterday unanimously approved
new drug rules for the state, over the objections
of horsemen. It also was a triumph for common
sense. The Lexington Herald-Leader, in its
Kentucky.com online news, got it right. The service headlined a story by business writer Janet
Patton “Fewer drugs will be at the post.” The
new regulations give Kentucky rules that closely
follow those adopted by the national Racing
Medication and Testing Consortium, and Connie
Whitfield, vice chair of the Racing Authority and
chair of the Kentucky Equine Drug Research
Council, was on target in her assessment of the
significance of the Authority’s action. “These
changes,” she said, “not only advance the integrity of racing in Kentucky, but also protect
the health of the horse and the safety of the
rider.” Racing Authority chairman Bill Street
noted that “these amendments will create the
most comprehensive drug rule in the country and
will help protect the integrity of horse racing in
Kentucky.” Street said he would ask Gov. Ernie
Fletcher, who appointed the new Authority, to
sign emergency regulations that would put the
rules and penalties into immediate effect. Street
said of the Authority action, “I think it’s the right
thing to do for horse racing in this state. The
next challenge for us will be to make sure the
rule is administered as intended. That means
enforcement.” If Authority executive director
Jim Gallagher has his way, there will be no question about that. He said, “The former Kentucky
Racing Commission adopted internal policies in
1998 and again in 2002 which made Kentucky
the most liberal and permissive state in the country for equine medications. Those policies never
went through the proper administrative
review process, were not subject to public review or comment, and were never re-
August 16, 2005
viewed by the appropriate legislative committees. But they were applied as if they had been.”
Gallagher, a disciplinarian with long experience
in New York, is the man to make sure Street’s
mandate is carried out. Toward that goal, he
will work with retired jockey Patti Cooksey, the
new deputy executive director of the Authority,
on enforcement issues. The new rules limit use
of non-steroidal anti-inflammatory drugs to one
of three allowed, and then not later than 24 hours
before a race. Only Salix and either phenylbutazone, banamine or ketoprofen will be allowed
under the new rules. Kentucky had allowed them
to be used as cocktails up to 4 hours before post
time. To no one’s surprise, Marty Maline, the
executive director of the Kentucky HBPA, objects to the rule changes. Our congratulations
to the Kentucky Authority for its firm and progressive action in turning Kentucky from a racing joke on its former permissiveness into a respected leader in medication reform.
A VEXING PROBLEM REMAINS
While Kentucky moved ahead on the medication
issue, it still struggles with the problem of insurance for participants against catastrophic injury
or disability, and how it will be handled. An 11member committee appointed by the governor deliberated for two and one-half hours yesterday,
but came to no definitive agreement on the form
of coverage, who should be included, and how to
pay for it. One two-tier plan suggested would
make jockeys employees of trainers rather than
independent contractors, with workers’ compensation coverage, and with trainers obtaining workers’ comp coverage of their own for exercise riders. The governor asked the panel to finalize its
proposals by September 1, and it adjourned yesterday with another meeting scheduled for that
date to resolve differences, if possible, between
jocks, legislators, horsemen’s organizations
and tracks.
WELCOME TO THE CLUB
Another gaming company has moved to enter the
racing field, following Harrah’s, Mohegan Sun and
Great Canadian Gaming. Millenium Gaming Inc.
and Canner Casino Resorts LLC have purchased
an option to acquire HTA member Rockingham
Park in Salem, NH> Bill Wortman, president of
Millenium Gaming, told the New Hampshire
Union Leader, “We are not purchasing an interest in the track as we speak, but we have within
our agreement the ability to do so.” Wortman
said if the state passes expanded gambling, which
Millenium and Rockingham will pursue,
Millenium most likely would exercise its option
to buy the track. He added, however, that the
option is not dependent on the legalization of expanded gambling. Ed Callahan, Rockingham’s
general manager, said, “We’re working together
to try to educate the people of the state about
this issue and to do some lobbying.” Callahan
said Millenium would make a full-fledged effort
to convince elected state officials of the economic
benefits of expanded gambling, including newspaper space and broadcast time for advertisements. He said the arrangement was “in essence
a working relationship in which they will bring in
their expertise to help design facilities and educate the public and Legislature.” When the Union
Leader’s senior political reporter, John Distaso,
asked Wortman the duration of the option,
Wortman said it was “multi-year” but that he
“couldn’t recall” the duration. Wortman said,
“We want to show the benefits it can create for
jobs and for taxation to the state. We want to
show what Rockingham could be, which is what it
used to be.” The track, which now conducts only
harness racing, would return thoroughbred racing to the scene. Callahan said, as other track
operators have, “Down the road, without slot machines, you have to be looking at other
development here. I think that would be
sad.”
August 17, 2005
That same theme was echoed by Bob Elliston, the
president of Turfway Park in Kentucky. He told
the Cincinnati Enquirer, “We have a 200-acre
asset of tremendous value, but we are not obtaining the most return on that asset as a pure racing
facility. So we’ve got to look at augmenting the
gaming environment with alternative gaming. And
if that doesn’t happen, then we’ve got to start looking at what that asset would be.”
TWO PURSE SPLIT DISPUTES
Track management at two venues are wrestling
with purse distribution problems. At HTA member Prairie Meadows, president and general
manager Bob Farinella is dealing with disgruntled harness and quarter horse representatives who want a larger share of the track’s
2006 purses. Iowa set minimum purses of 11%
of casino revenue last year, and this season
quarter horses and harness horses will get
about 10.7% each of the $16.7 million in purse
money. Both want more, the quarter horsemen
asking for 20% and the harness horsemen
wanting 15.4%. Farinella first offered 75.58%
to thoroughbreds, 13.42% to quarter horses,
and 11% for harness racing. The offer was
refused, and now he is offering 78% to the runners, 12.5% to quarter horses, and 9.5% to
harness racing, answering their protests for
more by saying, “Why didn’t you sign at 11?”
At River Downs in Ohio, the track -- which is a
partner with Beulah Park in AmericaTab -withdrew its signal from that account wagering
site after the state’s thoroughbred horsemen’s
consent to simulcast expired and no agreement
had been reached on purses from the simulcasting, the runners wanting all revenues from thoroughbred signals. Jack Hanessian, River
Downs’ general manager, said, “We’re not interested in getting into a breed war in Ohio,”
and said the track would rescind its approval for TVG to take its signal today.
August 18, 2005
DAN PATCH RETURNS, AS BOOK
MORE GOOD NEWS, TOO
The greatest American sports hero of the first
decade of the 1900s, the unbeatable pacer Dan
Patch, is returning a century after his greatest
triumphs as a Simon and Schuster book. Charles
Leerhsen, executive editor of Sports Illustrated
and author of best selling books on Donald Trump,
famed test pilot Chuck Yeager, and former NBC
president Brandon Tartikoff, is writing the story
of the pre-automobile era hero. Leerhsen’s book
on Trump was number one on the best seller list
for seven weeks.
Richard Shapiro, president of Western Harness
Racing in the early 1980s and a member of the
California Horse Racing Board since last October, has been unanimously confirmed in that
role for a term that expires July 26, 2008.
Shapiro has been an activist on the California
board, sitting on some of its most influential
committees, including those on medication, security and licensing, and the allocation of racing dates. His grandfather, L. K. Shapiro,
founded Western Harness Racing and owned
the outstanding thoroughbred Native Diver, and
Richard’s father, Marvin, was responsible for
legislation that legalized night horse racing in
California. Shapiro was appointed to the racing board by Gov. Arnold Schwarzenegger, and
appreciation for his work on the racing board
was indicated by the 5-0 confirmation vote by
the Senate Rules Committee.
A contemporary book on the great pacing champion is long overdue. Dan Patch’s popularity from
1900 to 1910 was so widespread that washing machines, tobacco products, a railroad and innumerable children were named for him. Leerhsen plans
not only to tell his story and that of the people
who surrounded him, but also plans to place the
horse and harness racing in the context of sports
history, and to discuss the changes that were happening to sports in general during the early years
of the 20th century. Leerhsen is no stranger to
harness racing, and is superbly qualified to tell
the Dan Patch story. A brilliant writer, his first
professional job was working with the editor of
this newsletter at the U.S. Trotting Association
from 1976 to 1982, when he left to work for
Newsweek, where as a senior writer he covered
sports and, later, general news. He left that magazine in 1992 to become the entertainment editor,
and later assistant managing editor, of People.
Six years later he joined Wenner Media, and was
editor of Us magazine. He also has written for
Esquire, the New York Times Magazine, Rolling Stone, TV Guide, and other major magazines.
He expects to complete his book on Dan Patch in
12 to 18 months, and welcomes suggestions, research materials, stories or other materials
on
Dan
Patch
at
[email protected].
AND SOME NOT-SO-GOOD NEWS
In another wife or sweetheart beating -- the third
reported in the sport in recent years -- trainerdriver James R. Pantaleano was arrested by New
Jersey State Police after beating a former lady
friend in Colts Neck, NJ. The victim required 30
stitches in her face to close her injuries.
Pantaleano first was charged with Simple Assault,
with bail set at $1,500, but after the extent of the
victim’s injuries were determined the charge was
amended to Aggravated Assault, and bail raised
to $5,000.
MORE HEAT ON JOCKS’ GUILD
Rep. Ed Whitfield of Kentucky, chairman of the
U.S. House Subcommittee of Oversight and Investigations, has notified Jockeys’ Guild president Wayne Gertmenian that information provided to the committee on Guild operations was
“inadequate,” and threatened a subpoena if better documentation is not provided by Aug.
31.
WHERE’S THE BEEF..AND CASH?
Richard Shapiro, who was confirmed for another
three years as a member of the California Horse
Racing Board earlier this week, has asked the
California deputy attorney general to recommend
the proper recourse in a matter involving now departed Capitol Racing and some $1.5 million in
unpaid purses. Capitol, headed by Alan Horowitz,
operated racing in Sacramento for 10 years before relinquishing its license. The California
board had ordered it to redistribute $1.5 million
in the form of purses to horsemen, as settlement
of a dispute over promotional funds. Capitol apparently ignored the board’s order. A representative of the California Harness Horsemen’s Association had expressed concern that horsemen
could wind up “holding a fistful of tickets they
can’t cash,” but Shapiro said the board still has
$2 million in bonds and letters of credit from Capitol Racing, and he reassured horsemen who raced
there that “there is ample security to pay for any
shortfall.” Horowitz and an associate reportedly
have been exploring a working relationship with
Shawn Scott in seeking to purchase Vernon
Downs.
Shapiro and board member Marie Moretti also
had some questions for Jack Liebau, president
of both Bay Meadows and the newly created Hollywood Park Racing Association. Ms. Moretti
asked, “What assurances do we have that you
are going to be or even want to stay around?”
and Shapiro asked about Bay Meadows’ budget
for marketing, advertising and promotions. He
said he was “uncomfortable” determining that
California would be better served by the Bay
Meadows’ acquisition when he didn’t know what
they planned to do to market horse racing. “I
want to know what you are going to do to improve
things from where they were,” he told
Liebau, who said a $4 or $5 million installation of Polytrack is planned.
August 19, 2005
The board, after hearing Bay Meadows’ plans,
determined that the state would be better served
allowing Bay Meadows to proceed with the purchase of Hollywood Park from Churchill Downs,
thus assuring continuity of operations at Hollypark.
GREEN LIGHT IN MAINE
Across the country, in Augusta, Maine, the racing
commission approved final licensing for Penn National to operate slots at Bangor Raceway, which
it acquired from Shawn Scott. The board voted 50 to approve licensing, and also approved International Gaming Technologies as the slot machine
distributor. Penn National spokesman Eric
Schippers called the events “an exciting and historic day.”
COLONIAL BUYS OUT MAGNA
Colonial Downs, owned by Jacobs Entertainment Inc., is buying out its partner, Magna
Entertainment, paying $7 million in cash and
issuing a $3 million one-year interest-bearing note for the Maryland Jockey Club’s
Maryland-Virginia Racing Circuit, Inc. That
entity was established a decade ago, and
partnered with Colonial in operating harness
and thoroughbred meets at the Virginia track
and its seven OTB facilities. The transaction also calls for pro-rated 2005 management
fees and repayment of some $145,000 plus
accrued interest under an existing promissory note.
JUG OPEN TO CANADIAN BETS
The Ohio Racing Commission has approved common pool betting from Canada on the Little
Brown Jug, using net pool pricing methods under Association of Racing Commissioners’ International model rules. Jug marketing director and HTA director Phil Terry called the move
“another step in the right direction for the
sport of harness racing and the Delaware
County Fair.”
August 22, 2005
DECISION TIME FOR RACING
TO NY HARNESS:
BEWARE
The North American horse racing industry now
faces a monumental choice. The industry finally
has faced the real challenge -- detecting what is
being used on horses and developing tests for
them -- with a world class expert at its head. Dr.
Don Catlin, founder and head of the UCLA Olympic Analytical Laboratory, who will be a featured
speaker at the HTA-TRA-USTA Racing Congress at Bellagio in Las Vegas in February, has
agreed to head a non-profit laboratory to be called
the Equine Drug Research Institute. Secret negotiations -- getting to be a passion in the racing
industry -- have been underway at Keeneland in
Kentucky for two years, and surfaced Sunday with
the announcement that Dr. Catlin was on board.
Catlin told the Jockey Club Round Table in
Saratoga Springs yesterday, “The issues you face
are very similar or identical to the issues I’ve
faced in sport. Your sport offers some unique
opportunities.” With Catlin at the helm, the
project can be far and away the most significant
in racing in years. Catlin, respected worldwide,
has been involved in solving Olympic drugging
problems and was a key player in unraveling the
Balco THG issue. Unlike the Racing and Medication Testing Consortium, which has been concerning itself primarily with developing uniform
rules, the Equine Drug Research Institute will
focus on developing tests for presently hard-todetect drugs, and some yet to be identified. Until
these tests are developed, racing’s frequent selfserving statements that only a minute number of
positives have been found in testing are meaningless, since if there are no tests for substances
being used in racing obviously there will be no
positives for them. The new project will be expensive -- a $3 million price tag was mentioned
for starters yesterday -- but this is one project
racing needs desperately to rally behind
and fund. It is a potential turning point
for the sport.
All the talk in Saratoga Springs yesterday was
thoroughbred -- the Jockey Club Round Table is,
after all, sponsored by the Jockey Club -- but harness racing interests in the state of New York had
better stay focused on what is being kicked around.
NYRA is concerned about NYRA, and the Friends
of New York Racing, whether New Yorkers or not,
are really at this point the Friends of New York
Thoroughbred Racing. There still are six harness
race tracks operating in New York State, with a
huge agriculture breeding industry behind them,
and one of them -- Yonkers Racway, has the best
location in all New York for VLTs, smack on the
Deegan Expressway. It would be folly for the
owners and operators of these tracks to let
Friends (or Enemies) get too far down the road
without keeping them in the loop for their ambitious plans. Tom LaMarra’s coverage of the
Friends’ plans in bloodhorse.com say the group
“proposes formation of an industry advocacy
group to represent all factions in the effort to
develop a new structure for the pari-mutuel industry in the Empire state.” It would be comforting to know what “all factions” embraces.
Hopefully it is just that, all-compassing.
TO ALL RACING: BIG BEWARE
To those who have put the World Trade Organization challenge to U.S. simulcasting on a back
burner, better move it further front. The WTO
has announced an April, 2006, deadline for U.S.
action, and a spokeswoman for the US Trade Representative was quoted in Middle East Times as
saying, “The United States has already announced its intention to comply with WTO findings. In order to implement the findings all we
need to do is clarify one narrow issue concerning
Internet gambling on horseracing.” It may be
“one narrow issue” for US Trade Representatives, but it is one very wide one for American horseracing.
ANOTHER SPLASH IN THE POOL
Everybody in the water! Eric Spector is back seeking to buy Vernon Downs, which he ran briefly during the bankruptcy merry-go-round of the last year.
Spector, now based in San Diego, has backing from
a group called Plainfield Asset Management, and
he joins Jeff Gural and Shawn Scott in the chase
for the prize. Lawyers for Gural and Scott can file
objections to Spector’s proposal by tomorrow if
they wish.
HERE COMES DE JUDGE
Circuit Judge Leroy Moe in Broward county,
Florida, has not changed his mind. In June he ruled
that the wishes of voters in south Florida were being ignored by the legislature, which adjourned
without providing for rules for slots at Broward
county’s tracks. The Broward state attorney argued against that, which triggered an automatic
stay. Yesterday Moe reconfirmed his order, lifting the stay and saying the will of the voters could
not be disregarded. He ruled that the county’s
three tracks, including HTA member Pompano
Park, could install slots before their legal appeals
are finished or the state legislature drafts rules.
Track executives, however, said they still preferred to work with state lawmakers and Broward
county commissioners to draft regulatory guidelines before installing the machines, and they expect governor Jeb Bush will convene a special session this fall to have that done.
KY HORSEMEN WANT TO FIGHT
The governor of Kentucky, Ed Fletcher, has
signed an emergency order putting Kentucky’s
new drug rules into effect, but the Kentucky
HBPA still is unwilling to go along. They still
want to be able to use the former medicine cabinet, and they are threatening to go to court,
arguing this time about whether medication rules warrant emergency legislation.
August 23, 2005
Kentucky’s vets, who administer all of the stuff
previously used, also reportedly are considering
legal action. Kentucky horsemen are arguing the
new rules will create short fields and harm their
horses by depriving them of needed medication.
Amazing how horsemen everywhere but Kentucky
are getting along with versions of the new rules.
NZ’S TOP TRAINER SUSPENDED
Mark Purdon, the leading harness racing
trainer in New Zealand, has been suspended
for four months and fined $15,000 by the Judicial Control Authority for his role in the “Blue
Magic” scandal that has rocked the sport Down
Under. The case was bizarre in a number of
ways. Purdon said his principal owner, the millionaire John Seaton, had introduced him to
Robert Asquith, a manufacturer and supplier
to horsemen of Blue Magic, or propantheline
bromide. Asquith told Purdon the substance
would not test positive, and Purdon bought 10
vials for $1,500 and injected the pacer Light
and Sound six hours before a race on two occasions. The horse won his first race with the
substance, but did not race as well on the second administration, finishing third. The purse
has been redistributed on both races. When
Purdon decided his action was inappropriate after the Blue Magic scandal heated up, he telephoned the general manager of Harness Racing New Zealand and apologized. He also visited his local police and told them what he had
done. Both Asquith and Seaton, who Harness
Racing New Zealand said was involved in the
use of the illegal substance, were later found
dead, Asquith a suicide. Seaton’s death also
was reported to be a suicide, but no coroner’s
report has been issued, more than eight months
later. Harness Racing New Zealand, which had
asked for a year’s suspension of Purdon, said
it would consider appealing the four month
penalty as inadequate.
IT’S AN EMERGENCY, MARTY
The Kentucky Horsemen’s Benevolent and Protective Association filed a lawsuit yesterday to prevent the state of Kentucky from enforcing new
medication rules similar to those being adopted or
in use in most of the rest of North America. The
rules were unanimously approved by the Kentucky
Horse Racing Authority and signed into law by
governor Ernie Fletcher on an emergency basis
last week. Marty Maline, the executive director
of the Kentucky HBPA, says his group does not
think the governor met the necessary criteria to
sign emergency regulation. “We’re not confident that it met those criteria, and furthermore,
why is it an emergency?” The fact that the Kentucky HBPA does not recognize -- or acknowledge
-- that drugging on the backstretches of America
is an emergency for horseracing in this country is
reason enough for the governor’s actions. The
HBPA position itself is an emergency. A hearing
has been set for September 1.
CROWNS IN COURT, TOO
It’s a litigious jungle out there in racing, folks.
While the Kentucky horsemen were trying to
undo what their racing authority and governor
want them to do, the owners of the top flight
pacer Canyon Wind are going to court over a
bitter dispute over the horse’s rejected supplemental entry in the $590,000 Breeders Crown,
upcoming Sept. 3 at Mohawk Raceway. The
horse was entered on time for the event, but the
conditions required the $62,500 supplemental
entry fee to be on hand by noon yesterday. The
owners of the horse, Marty Granoff’s Val d’Or
Farms and Howard Schoor’s School Racing
Stable, say the check arrived at 12:02 p.m. and
the entry was rejected. Granoff and Schoor, both
veterans of decades of ownership, are su- i n g
the Hambletonian Society and its president, Tom Charters, over the denied
entry.
August 24, 2005
The race itself drew 15 entries, and two $45,000
eliminations will be raced this Saturday. Boulder Creek, defeated last week by Canyon Wind,
is the likely favorite. The $800,000 Breeders
Crown Trot drew seven horses, led by $2.4 million winner Mr. Muscleman, so no eliminations
are needed in that event. Nine trotting mares,
led by the brilliant Peaceful Way, undefeated in
six starts this year, will race Sept. 3 in the
$250,000 Crown for their division, and 11 pacing mares will face the starter in the $331,500
Crown for their gait and sex, without eliminations.
Oh, before leaving the litigation department,
Shawn Scott is back, suing again, this time in
Oneida county, New York, in a case that he lost
in his resident Virgin Islands against Paul Noyes
of Mid-State Raceway.
FUROR OVER PURDON PENALTY
There is unhappiness in New Zealand, too -- both
ways -- over the four-month suspension and
$15,000 fine handed the nation’s leading harness
trainer, Mark Purdon, for his involvement in the
Blue Magic scandal there. Harness Racing New
Zealand, which wanted him suspended for a year,
accepted the lesser suspension but will decide
tomorrow whether it wants to appeal the fine.
The maximum for the offense he is charged with
is $25,000. Purdon’s lawyer wanted only a fine,
but the chairman of the Judicial Control Authority, which issued the penalty, said the suspension was needed “to emphasize the seriousness
and foolishness of the defendant’s actions.” A
source close to Purdon called his legal fees
“frightening.”
A REQUEST FOR A RESPONSE
HTA has faxed all track action officers a marketing and exotic betting survey. Please take the
time to complete and return these valuable
survey requests ASAP.
August 25, 2005
WILLMOT TO HALL OF FAME
A TIP FOR YOUR MAITRE’D
David Willmot, chairman and CEO of Woodbine
Entertainment Group and past president and vice
chairman of Harness Tracks of America, will be
inducted into the Canadian Horse Racing Hall of
Fame at the Toronto Congress Center in Toronto
tonight.
Better keep your hand in your pocket, Captain.
Manuel (Manny) Alvarez, who has had his hand
out in New York Racing Association restaurants
for 49 years, most recently as maitre’d at
Saratoga Race Course, has been fired. Manny
accepted one too many tips when he allegedly
accepted $200 from a pair of NYRA security officers posing as customers seeking good seats
for The Terrace or The Porch, Saratoga’s havens
where the elite meet to eat. Alvarez, speaking of
the bust that ended his NYRA career, said, “I
told them I don’t take any money for a table.
They gave me what anybody would give me for a
tip, and I put it in my pocket. They went through
my money and they found marked bills. That’s
what I did. I know I didn’t do anthing wrong.” If
$200 is the going price for a good table at
Saratoga, as Manny indicated with his “They gave
me what anybody would give me for a tip,” I think
I’ll eat across the street at Saratoga Raceway.
The food is probably cheaper, and the tables definitely are. Add to the quotes of the week, incidentally, that of Mike Billows, regional manager
of Centerplate, which caters Saratoga, Belmont
Park, Aqueduct and Yankee Stadium. He said he
was unaware of complaints of track regulars who
say shaking down of customers in exchange for
seating privileges at The Terrace and The Porch
has been a longtime abuse.
Willmot, one of world racing’s most eloquent
speakers and progressive thinkers, also operates
at the top levels of both harness and thoroughbred ownership. His 3-year-old pacing filly Cabrini
Hanover, owned in partnership with Bob Anderson, was the co-champion juvenile of last season,
and will be racing in the upcoming Breeders Crown
at Mohawk Raceway Sept. 3. Willmot’s understanding of racing’s needs and his progressive and
aggressive leadership of Woodbine played a large
role in rescuing its financially troubled Ontario
tracks. David’s father, D. G. Willmot, built
Kinghaven Farms into one of Canada’s premier
thoroughbred breeding and racing stables, and he
was the first Canadian named to the presidency of
HTA. The association, its directors and track owners and operators salute him on the occasion of
his entry in the Canadian Horse Racing Hall of
Fame.
Also being inducted tonight are veteran trainer
Stew Firlotte, trainer of a host of top harness
horses including the pacing Triple Crown winner
Ralph Hanover, the champion filly Town Pro, and
standouts including Historic, His Mattjesty, Brees
Brief, Strong Clan and Rare Review.
The top trotting stallion Garland Lobell and the
$2 million winning trotter Glory’s Comet also are
being honored, along with pacer Armbro Omaha
and thoroughbreds Norcliffe, Canada’s Horse of
the Year in 1976; Cool Reception, second
in the 1967 Belmont Stakes finishing with
a broken foreleg that ended his life, and
Anita’s Son.
A NEW STAR FOR BETHLEHEM?
It took more than four hours of heated debate, but
the city planning commission of Bethlehem (Pennsylvania version) yesterday rejected a proposed
ban on gambling for the 135 acres of the old
Bethlehem Steel works, once the largest steel producer in America. Starting next year, slots instead
of steel could be ringing out there, under a redevelopment plan proposed by Las Vegas Sands
Corporation, owner of the Venetian in Las
Vegas.
August 26, 2005
ORC SAYS NO TO CANYON WIND
KATY’S GONE, POMPANO BACK
Marty Granoff and Howard Schoor got the bad
news this morning: the Ontario Racing Commission denied their appeal to allow Canyon Wind to
race in the $560,000 Breeders Crown for older
pacers. Granoff’s Val d’Or Farms and Schoor’s
Schoor Racing Stable own Canyon Wind, who could
have wound up favored in the Crown. The conditions of the Crown are clear, specifying that entry
and supplementary checks had to accompany the
entry and, in this case, were due by noon Monday.
Trainer Steve Elliott showed up a few minutes late
with the check, and the entry was refused. Granoff
and Schoor appealed, and in turning down their
appeal the Ontario commission chairwoman, attorney Lynda Tanaka, noted that prudent horsemen had the responsibility to keep themselves
informed of conditions and regulations governing
events.
With Hurricane Katrina come and gone, Pompano
Park resumes simulcasting this afternoon at 4:30
p.m. The track, which cancelled simulcasting yesterday, suffered only minor structural damage, but
lots of debris, from Katrina’s visit. Calder Race
Course, also escaping with minor property damage but much debris, cancelled today’s card but
hopes to resume racing tomorrow afternoon.
ADD ANOTHER CASINO TO MIX
Earlier in the week we mused about the new partners in racing, casino interests now involved from
giants like the New York Racing Association’s
racino operation to the latest, little Tioga Downs
near Binghampton, NY. Nevada Gold and Casinos, Inc., headed by president W. Thomas Winn,
has announced his company wants to buy a 50%
interest in Tioga Downs, owned jointly by Jeff
Gural and Trackpower, Inc. Beyond that, Winn
says he wants to partner with the two in their pursuit of Vernon Downs, where proposed financial
plans went under court scrutiny today. Winn said
Nevada Gold and Casinos would invest in Vernon
-- he did not say how much -- if Gural’s bankruptcy
plan is accepted by the court. If not, he said Nevada Gold will proceed with Tioga Downs alone.
“Two would be better,” Winn said. “It would be
good synergy and give us economy of scale.” Eric
Spector of California also is in the chase
for Vernon, along with Shawn Scott and
friends.
A PR PAYOFF AT AMERICATAB
AmericaTab, the Ohio-owned, Oregon-hubbed
betting service, which informed a bettor his
bet was accepted but then refunded it after a
glitch in which the company’s bet processing
system did not connect with Del Mar’s tote,
has decided to pay the bettor the $540 his winning pick four paid. AmericaTab refunded all
bets on the fifth race at Del Mar Monday after the malfunction, but Tom Ranftie, a Syracuse, NY, bettor using AmericaTab, declined
the refund and demanded payment.
AmericaTab said it had no obligation to pay,
but did so, according to Ranftie, “as strictly a
customer-service courtesy.” And, we suspect,
to avert a PR disaster.
TO ALL PUBLICITY DIRECTORS
IMPORTANT NOTICE: HTA is updating and
revising its computerized database, including the
mailing lists for individual HTA track media
sources. If you have a current list of media you
would like to receive Track Topics, HTA news releases, and other materials distributed to media
by this office, please send them ASAP to Jessica
Carner at the HTA office. Also, to aid Jessica in
her compilation of Promotions at HTA Tracks,
please ask your program department to add her
to their mailing list. And if you have a promotion
you would like mentioned or think noteworthy,
let Jess know at jess@ harnesstracks.com,
and send graphics.
TODAY’S MORNING LINE
Have your morning line maker lengthen the odds
on the New York Racing Association keeping its
franchise on New York racing. The two most important men in New York state --- Gov. George
Pataki and Senate Majority Leader Joe Bruno - made clear at a press conference in Saratoga
Springs that they are inclined to convert NYRA
into a for-profit enterprise with professional leadership when its franchise expires in two years.
As each announced their choices for a state-appointed Committee on the Future of Racing, they
made clear they are unhappy with the nearly $40
million in losses at NYRA tracks in the last two
years. Pataki said, “This is a multibillion-dollar
business and it has to be run professionally and
efficiently.” Bruno said, “I hope in January ‘08
you’re going to see an entirely different approach. Bruno’s three appointments to the Committee on the Future of Racing are Jack Knowlton,
best known as the owner of Funny Cide; real
estate investor Edward P. Swyer; and real estate developer John Nigro. Gov. Pataki appointed J. Patrick Barrett, chairman of a private
investment company and former president of
Carrier International and ex-chairman and CEO
of Avis; Bernadette Castro, his parks commissioner and former chief executive of Castro Convertibles; and Fredric Newman, founding partner of the Hoguet Newman and Regal law firm.
State Assembly Speaker Sheldon Silver also has
three choices on the committee, still unnamed.
Have your morning line maker shorten the odds
on slots in Ohio. After release of a study by Strategic Partner Management Consulting which said
casinos in Ohio could generate up to $12 billion
in revenue a year and create 85,000 jobs (and a
43% increase in people with gambling problems)
optimism has risen among what the Cleveland Plain Dealer called “pro casino
heavyweights.”
August 29, 2005
The Plain Dealer story said the study done by
the Michigan firm encouraged the power brokers
to “believe they can craft and win a ballot initiative in November, 2006, to change Ohio’s constitution and allow casinos, most likely at the state’s
seven racetracks and in a handful of big cities,
including Cleveland.” One related story said that
if Lebanon Raceway were to get slots, it would
likely relocate from its longtime Lebanon fairgrounds location to a new site. The story also
referred to Raceway Park in Toledo, recently
purchased by Argosy Gaming. Argosy itself is
being acquired by Penn National Gaming in a $2.1
billion deal, but that transaction was sidetracked
indefinitely when the Illinois Gaming Board last
week delayed approval because of antitrust concerns. Penn National operates a casino in Aurora, west of Chicago, and Argosy operates two
in the state, in Alton and Joliet.
GALLAGHER TO DELAWARE
Hugh Gallagher, with a long career as a state steward and presiding judge in Ohio, Minnesota, Kentucky and at the Meadowlands, and in management at Ocean Downs, has been named Administrator of Racing for the Delaware Harness Racing Commission. He starts Oct. 17.
RED MILE, CANADA COMMINGLE
Starting September 15, Canadian wagering outlets
will begin betting directly into pools at the Red
Mile in Lexington with commingled wagers and
net pool pricing.
SORRY WE’RE LATE WITH THIS
We would have invited you earlier, but we just
learned of today’s press conference in Ulaanbaatar, Mongolia. A Kentucky group that includes
former Red Mile GM William Coplen is opening
a simulcast center in the Bayangol hotel, and also
is having a groundbreaking ceremony for a track
project with a Mongolian group called Roaring Hooves.
August 30, 2005
RTIP GETS $100,000 GIFT
JACK, WE HARDLY KNEW YE
The University of Arizona’s Race Track Industry
Program got a big boost in its quest for endowment of a $1.5 million chair for racing business
research when America Tab, the Ohio-owned, Oregon-based betting service, announced it was contribution $100,000 to the fund. Oak Tree Racing
Association and Youbet.com previously had contributed $100,000 each. Doug Reed, the RTIP’s
director, said, “America Tab’s contribution will help
further our mission of education and service to the
industry. The impact will be felt in the classroom
as well with the addition of a highly qualified educator to our faculty for the express purpose of enhancing graduate level study and research.” Mike
Weiss, America Tab’s executive vice president and
a graduate of the RTIP program, said, “We can all
benefit from the kind of independent and in-depth
study of our issues and opportunities envisioned
by the RTIP.”
Jack Abramoff, friend of the mighty in Washington, pleaded not guilty yesterday -- in absentia -to federal conspiracy and wire fraud charges in
Florida. He was missing because his attorney
convinced the court it would be too hard on Jack
to brave the aftermath of Katrina to get to Miami, which was largely spared from the storm.
Abramoff and his business partner Adam Kidan
were indicted in connection with their $147.5 million acquisition of SunCruz Casinos five years
ago. They face charges of giving lenders a counterfeit $23 million wire transfer to make it look
like they had a financial stake in the deal. Two
banks lent them $60 million to buy the casino
cruise line. Abramoff and Kidan could get five
years on each of six charges, and be ordered to
pay back the $60 million, if they are convicted. A
trial date could be announced today. The Fort
Lauderdale police also have asked to interview
Abramoff concerning the killing of the SunCruz
Casinos, Konstantinos Boulis, who was gunned
down gangland style in 2001 during bitter arguments over the sale of his cruise line. No one
has suggested Abramoff was involved, but the police are interested in what he might know about
Boulis’ murder.
GIVING AWAY THE FARM
Pompano Park, which opens its 42d season of
harness racing Friday night, is joining with
Florida’s Dreamfinder Farms Horse Rescue in
a season-long raffle with a first prize of a million dollar “farmette” in south Florida or
$750,000 in cash. Second prize will be a choice
of a new car, the winner getting his or her pick
of five new 2006 vehicles from King Auto Mall
in Fort Lauderdale, and third prize $2,500 in
cash. Tickets will sell for $100 each, with the
prize drawings held at Pompano Park Saturday
night, March 4, 2006. The “farmette” is in
Davie, Florida, one of two locations of the
Dreamfinder Horse Rescue, which also has a
facility in Ocala. Dreamfinder is a not-for-profit
organization that provides care for horses of
all breeds that have been neglected, abused,
abandoned, or retired and are in danger of being sent to slaughter or
euthanized.
TENANT WANTS THE HOUSE
In an interesting turn of events in Chicago, the
National Jockey Club, which lost Sportsman’s Park
after a hugely expensive conversion from a horse
track to automobile racing, and leased space at
Hawthorne Race Course next door, now is applying for the same racing dates as Hawthorne. Making the deal more bizarre is the fact that the two
families involved -- the Bidwills of Sportsman’s and
the Careys of Hawthorne -- have a long history of
close friendship and association. Patricia Bidwill,
chair of the National Jockey Club, says she
“deeply regrets” the end of the once happy
merger.
THE PRICE OF DISASTER
No one can put a dollar amount on the devastation
and disaster, and certainly not on the human suffering and agony inflicted by Hurricane Katrina, but it
is obvious that the huge gambling industry centered
along the Mississippi-Alabama coastline has taken
a tremendous hit. Churchill Downs has not yet had
any way to determine the damage to its Fairgrounds
in New Orleans, and president Tom Meeker says it
“could take several days or weeks before we have
an accurate assessment.” The track is not scheduled to race until Nov. 24. Other operators along
the Gulf Coast know already of the monstrous damage inflicted on their facilities. At least three of the
floating barge casinos in Biloxi were torn from their
moorings and washed 200 yards from shore. Gary
Loveman, chairman of Harrah’s Entertainment, told
CNBC that its Grand Casino was “probably ruined,”
having washed ashore and landed on the other side
of busy U.S. 90. Loveman said he thought it would
have to be cut to pieces just to be moved away. At
Biloxi’s most lavish casino, Beau Rivage, the first
and second floors were blown out. Bernie
Burkholder, president and CEO of Treasure Bay
Casino in Biloxi, told the Associated Press the casino was “a total loss,” with damage in excess of
$100 million. The first two floors of the Hard Rock
Casino -- due to open Sept. 8 -- were blown out.
Harrah’s Grand Casino Gulfport was swept inland.
The Copa Casino in Gulfport was destroyed. Aside
from the huge property damage, and loss of $400,000
to $500,000 a day to the state of Mississippi, The
gambling industry in Mississippi employs some
30,000 workers, who could be idled for weeks or
months. Loveman said Harrah’s would guarantee
its 8,000 workers at its Grand Casino, Harrah’s New
Orleans and the Grand Casino Gulfport for up to
90 days. Mississippi has 27 state-regulated casinos, which together generate $400 million in tax
revenue each year. With at least 17 of them closed
by the storm, and the others virtually shut
down by the elimination of tourist trade,
the impact is clear, beyond the tragedy itself.
August 31, 2005
In another distant ramification of the Gulf disaster, reflecting possible heavy damage to oil platforms in the Gulf, gasoline prices in Canada were
raised some 20% this morning, rising to $1.20 a
liter in Montreal, Toronto and Vancouver. That
translates to $4.54 for a U.S. gallon, or $5.45 for a
Canadian gallon, which is one liter larger than its
U.S. counterpart. The immediate impact was indicated by an announcement by Jeff Doyle of Doyle
Bloodstock Transportation in Ontario, one of
Canada’s largest horse transporters, who said the
company was discussing a fuel surcharge for hauling horses. With the season’s major yearling sales
ahead in Lexington and Harrisburg, the issue adds
one more economic burden for yearling buyers in
Canada, or Americans shipping horses to race for
Canada’s rich slot-fueled purses.
BETTING ON THE IF COME
“Everybody’s wondering what’s going on,” said
Ted Connors, chairman of the New Hampshire
Pari-Mutuel Commission, about the sudden
rush to invest in New Hampshire racing.
Millenium Gaming has purchased an option on
Rockingham Park, and Mississippi casino mogul Marlin Torguson is about to buy the Lakes
Region Greyhound Park in Belmont. There is
no mystery about “what’s going on,” and a
spokesman for Torguson made it clear: “We’re
planting the seed for the future,” he said, meaning that Torguson expects, as Millenium obviously does, that New Hampshire legislators
eventually will legalize slots, hopefully from
their standpoint sometime soon. They may
know something others don’t. There has been
little action or inclination in the New Hampshire
House for such action, and the most recent proposal in the Senate failed last April, losing 18
to 6. Despite that, hope still apparently springs
eternal among the suitors, who hope to convince the legislature of the error of their
ways.
September 1, 2005
WORLD’S BIGGEST BET TO U.S.
MICHIGAN COMMISSIONER OK’D
Sweden’s V75 -- the most popular bet in the world
on the basis of pool size, according to Scientific
Games -- is coming to the United States in the form
of commingled betting to be offered by Philadelphia Park. In Sweden, V75 accounts for 40% of
total pari-mutuel wagering and has grown at an
annual rate of 10% over the last five years. A
weekly pool, the seven races of V75 are held on
Saturdays in Sweden, with betting beginning on
Wednesdays. The average weekly pool is $11
million, but can grow to $20 million with “Super
Pool” jackpot carryovers. Philadelphia Park will
offer not only V75, but its popular quick-pick companion pool, Harry Boy, which is based on bets
already accumulated in the V75 pool. Scientific
Games CEO Lorne Weil thinks the introduction
of V75 and its potential huge jackpots “will appeal
to both the experienced and the casual race fan.”
Philadelphia Park’s CEO Hal Handel says, “Given
the fact that the base bet is 10 cents and the payoff on July 30 was $290,000 on a 10-cent base
wager, this will be a popular pari-mutuel bet for
our racing customers. In the long term, we expect
the V75 to attract interest from non-racing customers who have an interest in wagering into this
commingled pool with the potential for major payoffs.”
Governor Jennifer Granholm of Michigan yesterday made it official, and announced that Christine
White, who has been acting commissioner since
January, now is the full fledged permanent racing
commissioner in the Wolverine state. Ms. White,
former deputy director of the Michigan Department of Agriculture, will serve until Dec. 31, 2008,
under yesterday’s action.
NEVADA GOING TO PHONE BETS
SIMULCAST CONFAB TO MOVE
You can bet on this one. The state of Nevada’s
Gaming Commission has conducted a public hearing on allowing people in other states to set up
accounts at Nevada books for telephone account
betting. The Nevada Pari-Mutuel Assn. had a
heavy hitter, Las Vegas gambling specialist Tony
Cabot, representing them, and he told the commission Nevada was in “a perfect position” to join
17 other states already accepting phone bets. N o
one offered testimony opposing the proposal, which bars Internet bets...for the
moment.
The joint TRA-HTA-AQHR International Simulcast Conference, scheduled for Oct. 3-5 at the
Hilton Riverside in New Orleans, obviously will
have to be moved. TRA is exploring three alternate sites and will make an announcement in the
next few days.
JESSE TELLS IT AS IT IS..FOR $$
You remember Jesse Ventura, Minnesota’s pro
wrestler turned former governor. He started a
new job yesterday, as pitchman for an offshore
Internet gambling outfit. The site, BetUs.com,
licensed in Canada and Costa Rica, decided the
colorful Ventura could help round up bettors, just
as he rounded up voters in Minnesota a few years
ago. In one of the commercials, Ventura says,
“As governor, Jesse Ventura told it like it is, and
now I’m telling you that BetUs.com is the only
place to bet.” Ventura told the Associated Press
that, “I don’t know why I’m attracted to gambling,
considering I don’t do it myself very often.”
Could it be money, Jesse? He had a different
explanation: “Bob Dole had the pills, Viagra. I
prefer to endorse gambling. To each his
own......it’s entertainment.”
SECURITY DIRECTORS OK
The 8th annual Security Directors Conference
sponsored by SIS will be held Oct. 17-19 at The
Woodlands Resort in the Pennsylvania
Poconos. More details tomorrow.
September 2, 2005
HTA JOINS NTRA RELIEF FUND
SETTLEMENT OF SORTS IN OHIO
Harness Tracks of America will join the Racing
to the Rescue Fund being established by the National Thoroughbred Racing Association as an industry-wide response to the national disaster in
Louisiana. HTA chairman Chris McErlean notified Keith Chamblin, who is organizing the NTRA
fund, that HTA will be part of the effort. Plans
are being formulated for an Oct. 8 special “Racing to the Rescue Day,” with tracks and horsemen participating in a fundraising drive that will
include on-site donation centers where track patrons also may make contributions. HTA track
members that wish to contribute or participate
through the HTA effort should contact the HTA
office, 520-529-2525 and ask for general counsel
Paul Estok or Stan Bergstein. The problems of
racing pale into insignificance in comparison with
the devastation, misery and chaotic anarchy rampant in New Orleans, but the racing industry
needs to join the rest of the nation in attempting
to alleviate the suffering that better national, state
and local planning could have averted to a large
degree with any foresight.
With River Downs’ biggest weekend of racing coming up, members of the Ohio HBPA have struck
an agreement with River Downs and Beulah Park
that will at least allow River Downs to offer its
signal to account wagering services, including
Beulah’s America Tab operation. No details were
available, but Beulah general manager Mike
Weiss minimized the arrangement, telling the
Blood-Horse that “It wasn’t anything that drastic.
We just ended up sitting down and coming to an
agreement.” What impact the temporary fix might
have on Ohio racing in general was not known at
press time.
HEARING TODAY ON KY CRYING
A Kentucky circuit court judge will continue a
hearing today prompted by thoroughbred horsemen and veterinarians in Kentucky who want to
continue to play by their liberal rules rather than
join the rest of the country in uniform medication reform. The hearing began yesterday and
was expected to end around 2 p.m., but attorneys representing several groups were permitted to cross-examine witnesses, dragging out the
proceedings. Circuit Judge Roger Crittenden
of the Franklin County Court called a halt and
said the hearing would continue at 1 p.m. today.
A veiled threat arose about a boycott at Turfway
Park, with HBPA chief Marty Maline
quickly pointing out that his group could
not promote a boycott, but that he was
merely repeating what he had heard.
AND RECOMMENDATION IN KY
The state appointed panel in Kentucky named to
attempt to break the impasse on compensation
insurance for jockeys yesterday unanimously
agreed that a three-way split would be the most
equitable approach. Under the 11-member
panel’s recommendation, tracks, horse owners
and jockeys themselves would share the cost.
Tracks would pay what they are currently contributing toward accident insurance, estimated to
be $400,000 to $450,000 a year. Horse owners
would be assessed $20 for every starter they
owned. First place money paid to jocks would
decrease from 10% to 9%, with the difference
going to the fund. All trainers would have to have
a workers’ comp policy to cover exercise riders,
whether the rider was a salaried employee or independent contractor. The panel, the Louisville
Courier-Journal reports, wants to formalize the
splits rather than dollar amounts, but estimates
that at present premium rates the plan would cost
between $1.25 and $1.5 million. The head of the
Jockeys’ Guild, not surprisingly, did not like the
solution. He said that “to say that the jockeys
need to pay into the system flies in the face of
the definition of workers’ comp. Jockeys
shouldn’t be paying a penny.”
September 6, 2005
JUDGE SAYS NO TO KY HBPA
IN BRITAIN, $4.4 BILLION DROP
A state circuit court judge in Kentucky has refused
to enjoin the state from implementing and enforcing its new medication rules, as requested by the
Kentucky HBPA. Judge Roger Crittenden said
the new rules, which ban horses from receiving
most therapeutic drugs on race day, would not
cause irreparable harm to horsemen in Kentucky.
A few horsemen based at Churchill Downs declined
to enter Wednesday’s opening night program at
Turfway Park, but the track filled its 10-race card
and has a full field in its feature. The threat of a
boycott would have cast a pall over Turfway’s introduction of its new Polytrack surface, the first to
be tested under actual race conditions in the United
States.
Gibraltar-based PartyGaming Plc, the online poker
operator that shook Britain with its most explosive stock offering ever in June, has fallen as much
as 37% below its initial offering price, according
to Bloomberg.com. The report said the stock drop
wiped out some $4.4 billion in U.S. dollars. One
fund manager in London for Barclay’s Private Clients, which manages $45 billion, said, “There were
some clear dangers in relation to the valuation of
this company and our concerns have been realized.” Another analyst, at Seymour Pierce in London, said, “The market has misinterpreted what’s
actually happened in the same way that it misinterpreted that poker was going to the moon ad infinitum initially.” Whatever, it’s a big hit.
ANOTHER SAYS NO TO NIAGARA
THE RIGHT AIMS AT ROMNEY
In Niagara Falls, New York, a state Supreme Court
judge dismissed a suit filed by Niagara county,
seeking 75% of the local share of Niagara Falls’
Seneca Niagara Casino revenue. The judge ruled
that the $11.2 million cut for the locality hasn’t been
allocated as yet by the New York legislature, and
called the county’s suit premature.
Speaking of big gambles, Mitt Romney, governor of Massachusetts and a presidential
hopeful for 2008, has drawn the ire of
midwestern and other conservatives with talk
of slots in the Bay State. Right wing mobilizer
Stacey Cargill, who organized thousands of
voters last year to soundly defeat a slots proposal in Iowa, now says she will seek to join
the Iowa Christian Coalition and Iowa Family
Policy Center against Romney’s hopes in Iowa
caucuses. Cargill was quoted in the Boston
Globe’s Boston.com as saying, “If Mitt Romney is going to engage in incorporating casino
slots as a form of economic development for
the state of Massachusetts, we will spread the
word and ask the state of Iowa to vote for another candidate in the caucuses. It’s that big
an issue.” Although Romney said two years
ago he would support slots if they were auctioned off to the highest bidders and the licenses had limited terms, the matter never
reached his desk, and a Romney spokeswoman now says, “Expanded gaming is not
something Gov. Romney has proposed or
is even considering.”
MORE DARK CLOUDS FOR NYRA
Thoroughbred racing at Saratoga still is the best
and most successful handlewise in the nation, but
the New York Racing Association, which runs it,
continues to catch flak regardless of its successes.
Although this year’s meeting was down in handle
by 5.47% from last year, and attendance was down
3.17%, the meeting still averaged almost $15 million a day. But it no sooner closed than a state
controller’s draft report surfaced that it had failed
to pay the state $40.4 million in franchise fees between 2000 and 2003, a figure NYRA says is not
true. NYRA also caught fire for spending some
$17,000 for a press party the day before the
Travers. A NYRA spokesman argues, with
some logic, that it makes money for the
track in coverage.
September 7, 2005
CLARIFICATION ON N.O. RELIEF
MAGNA PULLS BACK IN MD
In the welter of confusion, from the very top down,
over the New Orleans disaster, a number of tracks
have inquired about HTA’s participation in the
NTRA Racing to the Rescue Fund.
The governor of Maryland, who has been frustrated for more than two years in his efforts to
bring slots to Maryland’s tracks, announced today that Magna Entertainment was cutting its racing days in the state by almost one half. Gov.
Robert L. Ehrlich said, “Magna is pulling back
from Maryland. They are letting legislators and
the general public know it today. They are going
from 200 racing days down to 112. We have 20,000
jobs at risk.” The governor made clear, in his announcement during participation on a Baltimore
radio show, that the Magna decision did not mean
that the Preakness was gone, nor that horse racing was gone, from a state where it once was a
national power. “I’ve been told they don’t want to
leave,” Ehrlich said. “I’ve been told they most
likely will be here next year. I have no guarantee
they will be here in two years, three years.” The
governor said Magna does not want to leave Maryland, but the company is losing money just about
every day of the year except for Preakness day.
There was no early comment from House Speaker
Michael E. Busch, who has almost single handedly
killed slots legislation for tracks in Maryland in
the last two sessions of the legislature.
It is a two-part program. Tax deductible contributions can be made immediately via mail to NTRA
Charities, Inc. - Racing to the Rescue Fund, c/o
Bessemer Trust Company N.A., attention Robert
Elliott, 630 Fifth Avenue, New York, NY 10111.
Wire-transferred funds can be sent to Bessemer
Trust Company N.A., Federal Reserve Symbol
ABA#0260-0875-6, user name Bessemer Trust
NYC-for account NTRA Charities Inc. -Racing to
the Rescue Fund. 100% of all contributions will
be passed through to existing charities established
to aid in recovery efforts.
The second part of the program, in which HTA has
offered to solicit its tracks for participation, is a
Racing to the Rescue Day scheduled for Oct. 8 for
victims of Hurricane Katrina. Tracks can participate in this in whatever fashion they consider appropriate or desire to do. Many HTA tracks already have implemented relief programs of their
own. All are encouraged to contribute, and to encourage drivers, trainers, breeders and owners to
contribute a part of their purse winnings on Racing to the Rescue Day Oct. 8. There is nothing
obligatory about the program, but a concerted national racing effort appears an appropriate industry response to the tragedy. If you schedule special events for fundraising on Oct. 8, the proceeds
can be forwarded as above to the NTRA Charities
- Racing to the Rescue Fund, which is a special
division of the NTRA’s nonprofit 501 (c) (3) subsidiary NTRA Charities. Bessemer Trust has
agreed to establish and administer the fund at no
cost, and all contributions are tax deductible. If you have further questions, contact HTA.
O LITTLE TOWN OF BETHLEHEM
The mayor of Bethlehem, Pennsylvania, former
home of Bethlehem Steel, has problems similar to the governor of Maryland. Bethlehem
mayor John Callahan supports the idea of converting the huge deserted Bethlehem Steel
works into a $300 million entertainment complex, with a casino, as an economic boon the
city. Now a bitter gambling opponent has used
a city council meeting to launch a write-in campaign against the mayor, saying he was “emphatically and categorically opposed to gambling.” The gambling foe, Karl Fluck, says he
will challenge Callahan, who has no Republican opponent this fall.
September 8, 2005
WE LOSE OUR GREATEST NAME
GURAL, SCOTT IN VERNON PACT
Harness racing lost its brightest star today, when
Stanley Dancer died at 78 at his home in Pompano Beach, Florida. The best known harness
horseman of the modern era -- some outsiders
thought he was a horse, but all knew his name,
and many knew nothing else but that about harness racing -- he has suffered in recent years from
the effects of numerous back injuries and surgeries suffered during his spectacular racing career.
He drove the winners of five Hambletonians -Egyptian Candor, Nevele Pride, Super Bowl,
Bonefish and Duenna -- and won harness racing’s
Triple Crown of trotting twice, with Nevele Pride
in 1968 and Super Bowl in 1972. He also won
pacing’s Little Brown Jug four times, with Henry
T. Adios, Lehigh Hanover, Most Happy Fella and
Keystone Ore. To the generation that followed
harness racing in its halcyon years in the 1960s
at Roosevelt Raceway and Yonkers Raceway in
New York, he was the sport. He went to the big
city from his farm home in New Egypt, NJ, in the
1950s and revolutionized the game, breaking the
back of single file racing with his bold aggressiveness. At the height of his career he appeared
on television’s number one program, the Ed
Sullivan Show, with Cardigan Bay, the sport’s first
million dollar winner that he had bought for
$100,000 in New Zealand. He developed Nevele
Pride into a three-time Horse of the Year, and
appeared on the cover of Sports Illustrated with
that horse in the August 25, 1968 issue. He was
a guest of President Lyndon Johnson at the White
House the same year. Dancer won 3,781 races
during his driving career that ended, appropriately, with an 11 1/2-length stakes win with the
trotter Lifelong Victory at Garden State Park in
his native New Jersey on Sept. 21, 1995. HTA
extends its sympathies to his wife Jody, his son
Ron, a legislator in New Jersey, and the
entire Dancer family. The sport was enriched by Stan’s legacy.
The long battle for Vernon Downs may be over,
and the track could reopen as early as November if a court approves an agreement between
New York breeder-owner Jeff Gural and Las Vegas entrepreneur Shawn Scott. Gural, who has
loaned Vernon some $1.5 million and has court
permission to loan another $600,000, told
UticaOD.com, “We have reached a deal. We
are in the final stages of exchanging checks and
signatures.” Deborah Deitsch-Perez, an attorney who has been representing Scott in the negotiations, said, “We think it will resolve virtually all disputes between virtually all parties.”
Although neither side revealed details, Gural did
say that almost all secured creditors will be paid
back between 90% and 100% of their debts, and
he added, “We’re still talking to the non-secured
creditors.” Details of the Gural-Scott agreement will be made public Tuesday, when it is submitted to a Bankruptcy Court judge for approval.
A hearing on the plan is scheduled for Friday,
Sept. 16 before U.S. Bankruptcy Court Judge
Stephen Gerling. At that time Gerling also will
hear a proposal from Eric Spector of California,
who is trying to buy the track and once served
briefly as its chief executive. Joe Faraldo, representing the Harness Horsemen’s Association
of Central New York, said of the deal, “We only
like one thing, and that is getting racing back as
soon as possible. If racing can get back sooner
by Shawn Scott and Jeff Gural making peace,
we can live with that.” The horsemen have another choice, of course: suicide.
SIMULCAST TO SAN DIEGO
The TRA-HTA-AQHR International Simulcast
Conference, originally scheduled for New Orleans,
has been moved to the Hilton LaJolla Torrey Pines
in LaJolla, California. The dates remain the same
-- Oct. 3-5 -- and details are available from
Tony DeMarco at TRA, 410-392-9200.
MD HORSEMEN UNHAPPY
In a burst of wrath that would have been helpful if
directed earlier at House Speaker Michael Busch,
Maryland’s thoroughbred horsemen have lashed
out at Magna for its plans to cut racing dates in
the state. The Maryland Thoroughbred
Horsemen’s Association president Richard
Hoffberger, using strange allegory, said “I’m not
prepared to say everything we’re going to do. Did
Gen. Rommel tell the world his battle plan? Our
options are somewhat limited, but they are severe
and significant.” Hoffberger undoubtedly remembers that Rommel lost the war, not won it, but regardless the Baltimore Sun speculated that
Hoffberger’s “options” included denying simulcasting privileges to Magna’s Maryland Jockey
Club, or withholding entries and racing elsewhere.
The horsemen plan to raise the roof at a Maryland racing commission meeting next Tuesday.
Commission chairman Tom McDonough, told the
Sun, “Magna gave what I thought was significant
justification for the actions they’re taking. But
I’m not sure it’s significant enough, given the
amount of trauma and hardship it’s going to cause
the grooms, the hotwalkers, the trainers.”
Hoffberger, still apparently impressed with
Rommel, said, “Let’s see how the commission responds to this scorched earth policy.” Speaker
Busch and his colleagues in the House are, according to The WBAL Channel.com, “looking at
ways to prop up the state’s horse racing industry
without approving slot machines.”
BIG PLANS IN BETHLEHEM
A group called BethWorksNow, hoping to develop
a $350 million slots parlor and hotel in the deserted
Bethlehem Steel Works in the Lehigh Valley city
of southeast Pennsylvania, is prepared to make
the Bethlehem City Council an offer it can’t refuse
when it meets Sept. 20 to vote on the issue.
BethWorksNow principal Michael Perrucci
September 9, 2005
told Bethlehem businessmen at a meeting yesterday that his offer would “include everything from
preserving the hulking blast furnaces to hiring local labor to building a $200 million mall,” according to mcall.com, the Allentown Morning Call’s
Web site. The service also quoted Perrucci as
saying he was prepared to agree by contract to
doing what he proposes. The offer was formidable
enough that one city councilman who supports a
zoning change to ban gambling from the steel site
called it, “Very impressive, very interesting.” He
said he wasn’t ready to change his view, but “I’m
interested in hearing more.”
DANCER ARRANGEMENTS
Stanley Dancer will return to his roots in New
Jersey next week, when he will be buried in the
Maplewood Cemetary, across the street from
Freehold Raceway. Visitation will be Monday,
Sept. 12, from 5 to 8 p.m., at Freeman’s Funeral Home, 47 Main Street, Freehold, NJ, with
services there on Tuesday morning at 11 a.m.
Following the services the hearse will take Stan
on his final mile, circling the Freehold track
before interment. A special memorial service
will be held at HTA member Pompano Park at
a later date to be announced. In lieu of flowers, donations may be made to the Stanley
Dancer Memorial Museum building fund at the
New Egypt Historical Society, P.O. Box 295,
New Egypt, NJ 08533, the Harness Racing
Museum and Hall of Fame, 240 Main Street,
Goshen, NY 10924, or Hospice Care of Southeast Florida, 309 SW 18th Street, Ft. Lauderdale, FL 33316.
CONFERENCE CALL ON RELIEF
HTA is setting up a conference call for next week
to clarify participation by our member tracks in
the October 8 Racing to the Rescue program of
the NTRA. Day, date and time of the call will
be announced here Monday.
‘SURVIVAL’ IS NEW BUZZ WORD
All of a sudden, survival is on everyone’s mind,
in racing as well as in Louisiana. Maryland is
worrying about the survival of its racing industry, and getting a lot of suggestions from the Baltimore and Washington press, both of whom define horse racing as thoroughbred racing, and
scarcely seem to know there also is a major harness racing industry in Maryland. The Baltimore
Sun, editorializing on this, calls the night racing
exclusivity, designed to separate the days and
nights into their long-established domains, unreasonable. It bemoans the fate of the “Average
Joe,” who generally finds himself working at 1
p.m. on weekdays, as “out of luck.” He can, of
course, go to the harness races at night, but the
Sun does not consider that as “worth saving.”
Magna-bashing has become a popular journalistic sport in Maryland and the District of Columbia, as if this big company has some huge responsibility to Maryland to continue to lose money.
Magna may have made mistakes in what it has
done or not done in Maryland, but destroying one
racing industry to help another is not the answer
to Maryland’s racing problems.
In Iowa, the Racing and Gaming Commission has
rejected a claim by the National Cattle Congress
that it still holds a gaming license issued in the
early 1990s at the now shuttered Waterloo Gaming Park. The NCC called its bid “an act of desperation,” saying that without the license the National Cattle Congress fair in Waterloo, a fixture
since 1910, is doomed.
Elsewhere on the “survival” front, the State
Board of Horse Racing in Montana is discussing
the possible consolidation of Montana’s five minor racing meets into one to help save the sport
in that state. Racing days in Montana
have dropped from 120 to 37, and tracks
from 12 in 1982 to 5 today.
September 12, 2005
In California, where doom is less imminent, controversy thrives. Gov. Arnold Schwarzenegger
announced last Friday that he might allow two
Indian tribes to set up Vegas style casinos in
Barstow, far from their ancestral homes. Barstow
is in favor of getting both casinos for its economy,
but southern California tribes that already have
casinos are not. The chairman of the San Manuel
Band of Mission Indians, which owns a large casino just out of the city limits of San Bernardino,
called Schwarzenegger’s move, “Reservation
shopping at its worst.” The geographic discrepancy involved is interesting. The Los Coyotes,
380 strong, have a 27,000-acre reservation in
Warm Springs in San Diego county, but in rugged
country that is relatively inaccessible. The Big
Lagoon Band, 18 members strong with 20 acres
in Humboldt county in northern California, are
600 miles from Barstow, but the state insisted
they be allowed to have a Barstow casino as a
condition to the Los Coyotes, and both will get
2,250 slots. Barstow is a small city of 23,000, but
is located on U.S. 15, the main highway from Los
Angeles to Las Vegas, and about midway between
the two cities. One estimate, repeated several
times in the Los Angeles Times, estimates that
60 million motorists pass thru every year, a highly
improbable number since it breaks down to almost 165,000 a day. Its gas stations have 25 to
30 pumps each and reportedly are busy all day,
and its McDonald’s franchise is one of the five
largest grossing in the entire chain. In case where
you wonder where two little tribes would get the
money to build $160 million dollar casinos, the
answer is in BigWest Gaming, way out West in
Detroit. BigWest is Marian Ilitch, who made her
money selling pizza, founded the Little Caesars
chain, and now owns much of Detroit, including
the Red Wings, Tigers, Olympia arena, theaters,
and other scattered activities. She also had west
coast power broker Willie Brown as consultant.
September 13, 2005
CONFERENCE CALL TOMORROW
NYRA OFF HOOK, FOR NOW
With the welter of relief efforts for Hurricane
Katrina flowing all over the place, willy-nilly, including some scams, HTA and the NTRA will host
a conference call tomorrow, Wednesday, at 3 p.m.
eastern daylight savings time, to update member
tracks on the NTRA Charities - Racing to the Rescue Day October 8 and attempt to coordinate plans
as far as possible by all tracks participating in the
effort. If you plan to participate -- and we hope
you do -- join the conference call at 3 tomorrow
eastern time, by calling 1-800-486-3317, with a conference ID number of 6814000#.
The New York Racing Association has been
spared prosecution for past sins, after the Acting U.S. Attorney Eric Corngold and state
comptroller Alan Hevesi announced that the
federal government was dismissing the Dec.
4, 2003, indictment against NYRA. The action on the deferred prosecution issue followed
NYRA’s compliance with demands for restructuring senior management, appointment of an
independent monitor, and payment of $3 million in fines. The dismissal followed a favorable report from the court appointed monitor,
the law firm of Getnick and Getnick, which
found reforms and remedial measures by
NYRA warranted the government’s action.
Hevesi, in announcing the dismissal, said,
“The franchise to operate Saratoga, Belmont
aned Aqueduct race tracks will be worth much
more when it is put up for bid if the reforms
achieved at the New York Racing Association
over the last two years are preserved and sustained.”
FIRST STEP TO OBLIVION?
The city planning commission of San Mateo, California, after 15 meetings extending over several
months, has voted to recommend to the city council that 71-year-old Bay Meadows racetrack be
demolished to make room for housing, shopping
and office space. The Bay Meadows Land company, which recently bought Hollywood Park,
wants to redevelop the 83.5-acre San Mateo
track into 1,250 residential units, 1.25 million
square feet of office space, and 150,000 square
feet of retail space, with 15 acres of open space
for aesthetics. Bay Meadows was built in 1934
and its Bay Meadows Handicap was won in 1937
and 1938 by Seabiscuit. Talk of redevelopment
of Bay Meadows has been going on for at least
13 years, and track president Jack Liebau indicated there will be horse racing there for at least
several more, since in addition to city council
approval, design plans and environmental reports are required, and the Land Company itself
must determine that housing and office space are
the best use of the property. Liebau said, “The
market must be there,” and Daily Racing Form
noted that much of the office space built when
the old stable area and training track
were sold in the 1990s remains unoccupied.
$200 MILLION TO STAY PUT
Detroit’s Greektown Casino, which has been talking about moving out of downtown Detroit, has
changed its mind and decided to spend $200 million to upgrade its facility in the heart of the downtown district. Greektown plans to build a 15-story,
400-room hotel with 25,000 square feet of convention space; a 3,500-car parking garage; a 1,500seat theater; and expand its gambling floor from
75,000 square-feet to 100,000.
RENDELL ACTS ON SCHOOLS
After only 111 of Pennsylvania’s 501 school districts
agreed to accept slots money with strings attached,
Gov. Ed Rendell has asked for legislation to override the other 390 and make them take it, so he can
carry through on his property tax reduction law.
The school boards are not happy, one member calling Rendell “a dictator.”
September 14, 2005
AH YES, FLORIDA & MARYLAND
A MILLION FROM RICKMANS
More stormy weather in those two racing states.
The Rickman family, which owns Delaware Park
and Ocean Downs in Maryland, has contributed
$1 million through a newly created Delaware
Good Neighbor Fund, to relief for victims of Hurricane Katrina. Bill Fasy, COO of Delaware Park
and HTA member Ocean Downs, said the
Rickman family approached Gov. Ruth Ann
Minner and helped jump start the Good Neighbor Fund with their donation. Fasy noted that
Bill Rickman Jr. had been a helicopter pilot in
the Army, and had flown over the devastation of
an earlier disaster caused by Hurricane Camille
in 1969 and has seen firsthand what havoc a hurricane can wreak. Fasy said the Rickmans hoped
that if their million dollar donation, at the midsized level of their enterprises, might encourage
other businesses, larger and smaller, to follow
suit. Horsemen at Delaware Park obviously were
encouraged, donating $250,000 of their purse
money to the NTRA Charities, which HTA tracks
will join Oct. 8 in a Racing to the Rescue Day
organized by NTRA.
In Florida, the chairman of the House Business
Regulation Committee, Frank Attkisson, said he
sees no reason “to rush” the issue of slots for
Broward county tracks, although it now is 10
months since voters approved the idea. Attkisson
says he doesn’t want to rush the issue, telling the
Associated Press, “I feel no compulsion to push
this into a special session.” We have a solution
to the problem. Put a track in Kissimmee, near
Orlando and where Attkisson is from, and offer it
slots, and Attkisson would get the matter resolved
tomorrow. Meanwhile, although a judge has told
them they can start offering slots anytime they
want, with or without Frank Attkisson and the legislature, no one in track management in Broward
county has ordered any, preferring to wait for the
legislature’s decision on revenue splits, hours and
type of equipment.
In Maryland, the racing commission listened to
representatives of track management and horsemen, and then punted, postponing until Oct. 6 a
decision on whether or not it will approve Magna
Entertainment’s proposal to cut racing dates in
the state dramatically. Joe DeFrances, president
and CEO of the Magna-owned Maryland Jockey
Club, told the commissioners that if they granted
the cut in dates Pimlico and Laurel could raise
purses to $303,571 a day instead of the $197,877,
enabling them to compete with West Virginia,
Delaware and, in the next year or two, Pennsylvania. Magna lost $95.6 million last year on its
Maryland operations. Alan Foreman, general
counsel for the Maryland thoroughbred horsemen, said Magna was “emboldened by what they
see as a compliant racing commission that will
rubber-stamp whatever they want to do.”
He was not quoted as to whether he
agreed with that view.
MORE ON THE VERNON DEAL
More details have surfaced on the Vernon Downs
purchase deal being proposed by Jeff Gural after
a compromise with Shawn Scott. If approved by
the bankruptcy judge hearing the matter and creditors, Mr. Gural’s new group would take Scott entirely out of track ownership by acquisition of his
shares and repayment of an outstanding $2.8 million loan. Gural and TrackPower each would a
25% share in Vernon, and the other 50% would
be owned by Nevada Gold, which despite its name
is a Texas company that owns gaming facilities
around the country. The bankruptcy judge,
Stephen Gerling, will weigh the Gural proposal
Friday along with one from Eric Spector, the California entrepreneur who briefly was Vernon’s
chief executive after the track declared bankruptcy.
SOMEONE IS MISTAKEN
Angry words in New York and Maryland, as officials issued differing opinions of events.
The widest gap came in New York, where the New
York Racing and Wagering Board and the courtappointed monitor of NYRA, the law firm of
Getnick and Getnick, issued statements that cannot be reconciled. One of the parties must be in
error.
The dispute started Tuesday, when Neil Getnick,
after issuing a report that NYRA had reformed,
lashed out at the racing board, criticizing it for failing to act on pending simulcast contracts and proposed rule changes regarding rebates for NYRA.
Getnick said, “Right now, the regulated is leading
the regulator.”
Yesterday, the board fired back, claiming it never
was contacted by the Getnick firm as it was examining mismanagement charges at NYRA. Dan
Toomey, a spokesman for the racing board, issued
a statement saying, “It’s unfortunate that the independent monitor, in the course of his
monitorship, chose not to consult with us despite
our many requests to fully share the concerns we
had about NYRA’s practices.” That brought an
immediate charge from Getnick that the statement
was not accurate. “We did contact the Racing and
Wagering Board right from the start of the
monitorship and that is referenced in the first report,” which was issued in June of 2004. “We’ve
had numerous meetings with the board including
highly substantive and, frankly, helpful meetings
with the board staff in the early months of our
monitorship and more than a half-dozen meetings
over time where NYRA was also in attendance.”
Either Toomey or Getnick is mistaken. Newsday
reported yesterday that Toomey had no
immediate comment in response to
Getnick’s remarks.
September 15, 2005
In Maryland, another case of disputed testimony.
The chairman of the Maryland Racing Commission, Tom McDonough, contradicted a statement
made at a Tuesday meeting by Maryland Thoroughbred Horsemen’s Association executive secretary Wayne Wright and attorney Alan Foreman
that a preexisting agreement between the MTHA
and track owners required Magna to run five days
of live racing each week through Belmont Stakes
day in June 2006. McDonough said, “Alan
misspoke. The agreement says, up to five days.
As I read it, that means Magna can fulfill its obligation by running as few as one day. It’s a matter
of interpretation. What I think Alan was talking
about was the intent of the parties at the time the
agreement was made.” Foreman in effect agreed
on the intent issue, calling the agreement “very
technical,” but also saying it was an argument over
nothing. It seemed doubtful McDonough would
agree with that, and he cannot be pleased with
Foreman’s statement that, “In the first place, the
chairman shouldn’t be weighing in. He wasn’t in
the room when this document was drawn up. But
every year since it was agreed to, the tracks have
raced five days a week, which speaks to the intent. Tom is arguing Magna’s case, saying they
can run less than five days and be in compliance.
We read it as saying not more than five without
permission.” Foreman also said there could be no
debate that Magna was proposing to stop racing
on Preakness Day, but the agreement said they
must run through Belmont Day 2006, three weeks
later.
QUOTE OF THE WEEK
The Pittsburgh City Council voted unanimously
yesterday to approve having the mayor apply for
a slots license within city limits. One councilman,
William Peduto, questioned the wisdom of the city
running slots. “We have a difficult time running
rodent control,” he said. “I don’t know if it’s
really local government’s job to run casinos.”
September 16, 2005
SECURITY ROOMS DEADLINE
BIG DOINGS SATURDAY NIGHT
Tomorrow, September 17, is the deadline for
room reservations for the 8th annual Harness
Tracks Security Directors Conference at the
Woodlands Inn and Resort in Wilkes-Barre, PA,
hard by the Mohegan Sun at Pocono harness
track. The Woodlands Inn is located on 40 acres
of lush greenery in the heart of the Pocono resort area. To make room reservations, at $85 a
night, single, including breakfast, call 570-8249831 or 1-800-762-2222 and ask for the Standardbred Investigative Services room block.
The Security Conference dates are Oct. 17-19,
and the registration deadline is Monday, Oct. 3.
The registration fee is $35, and registration can
be handled through the SIS office at 410-3922287. The agenda includes slot operations,
medication issues, interaction with Canadian security operations, conducting internal investigations, and terrorism updates, among other subjects. If you are flying to the Wilkes-Barre/
Scranton airport, there is complimentary shuttle
service to the Woodlands by calling their phone
listed above. If you are renting a car, take Interstate 81 south from the airport to the WilkesBarre exit (170B), then get off at exit #1. If driving from Philadelphia, Pittsburgh, New York or
Baltimore contact SIS.
Big money and dramatic racing on the line on
tomorrow night’s harness racing calendar.
‘BOLD INITIATIVE’ BY KEEP
The Kentucky Equine Education Project, or
KEEP, announced its “ bold legislative initiative”
for Kentucky today, but the revelations were
sparse. KEEP, which includes the Red Mile, with
Joe Costa as a director, said earlier that “Kentucky is in dire need of additional revenue to provide services to its people,” and its plan would
raise revenue “without a broad-based tax increase.” That means casinos and slots, but there
was no word about how the monies raised
would be divided, what tracks would get,
or where casinos would be located.
At Saratoga Gaming and Raceway, the track offers its richest night ever, with eight $150,000
New York Sire Stakes Finals on a card billed as
the Night of Champions. Saratoga is offering a
unique betting format on the rich program, with
rolling pick threes, two pick fours and superfecta
wagering on all eight of the championship races.
The evening’s program carries $1.2 million in
purses.
At Mohawk Raceway, a phenomenal card, led
by the $1 million Metro Pace for 2-year-old colts,
with Palone Ranger the 2-1 favorite. The real
highlight of the program, however, is the
$918,500 Maple Leaf Trot, with the world’s best
trotting mare, Peaceful Way, facing the sport’s
best male trotter, Mr. Muscleman. “ In addition, Mohawk’s program includes the $688,200
She’s a Great Lady for 2-year-old pacing fillies;
a $50,000 consolation for that event; a $100,000
Metro consolation; two $40,000 eliminations for
the Canadian Trotting Classic for 3-year-old trotters, including American-National winner and
Hambletonian runner-up Classic Photo; and a
$45,000 open event for pacing mares.
The Saratoga Night of Champions had one dark
cloud thrown over it when Four Starz Dlivery was
scratched from the $150,000 championship final
for 3-year-old pacers after testing positive for
milkshaking at Batavia Downs Sept. 10. Dave
Sabatelli, Four Starzzzz Stable’s regular trainer,
was training Four Starz Dlivery for owners Jeff
Cohen and Mike Sudaley in the Batavia race in
which he turned up positive. Sabatelli also was
trainer of Four Starz Cacti, another CohenSudaley horse that came up with a positive
at Batavia Sept. 8.
CREDITORS GET THEIR SAY
Some 1,000 creditors and stockholders of Vernon
Downs get their say next week, when they will
vote on the proposals of Jeff Gural of New York
and Eric Spector of California as to who gets to
operate the shuttered track. They have until Oct.
31 to express their preference on the plans, and
probably will need most of that time to digest the
300 pages of information that the document they
receive will contain. After the creditors and
shareholders vote, federal bankruptcy judge
Stephen Gerling will rule on the winner at a Dec.
16 hearing. Although Gural has been the driving
force in working for new ownership, it turns out
he will be a minority partner if his group wins,
with a 25% share to the 50% share that would be
held by Nevada Gold, a Texas outfit that operates gambling facilities. The remaining 25%
would be held by TrackPower, a Canadian-owned
company that has dabbled in a number of bids for
racing roles. Although the two proposals are similar in a number of respects, and both were approved to go forward by Gerling, the Gural plan
guarantees creditors at least 90% of their claims,
while the Spector bid does not.
YOU CAN BE DUMB AND DRIVE
It takes skill and courage and timing and coordination to drive harness horses, but it does not necessarily require brains. A case in point is that of
driver Todd M. Kolbe, who walked up to a
parimutuel clerk stationed in the paddock of
Plainridge Racecourse before the seventh race on
Aug. 30 and bet $18 against his own horse, favorite in the race, and then finished fifth. Track president Gary Piontkowski, on hearing of the bets,
marched to the paddock and ejected Kolbe from
the track. The Massachusetts racing commission,
which Piontkowski once headed, was not quite a s
decisive. It suspended Kolbe for 90 days
and fined him $250 for “an unsatisfactory
drive.”
September 19, 2005
Asked by Boston Globe reporter Bob Hohler if
that penalty was severe enough, acting state racing commissioner Jack Magee said doing more
would have been “a little premature” because the
judges hadn’t even signed their decision. Magee
claimed the commission “took this seriously,” but
obviously not seriously enough for Piontkowski,
who said, “Whether the racing commission suspends him for 90 days or 900 days, we threw him
out and we won’t let him come back.”
SARATOGA’S BIGGEST NIGHT
Quality pays handsome dividends in racing, and
if you need to confirm that you can ask Skip
Carlson, who runs Saratoga Gaming and
Raceway’s racing operations. He called
Saturday’s “Night of Champions,” which featured
eight $150,000 New York Sire Stakes, “a fantastic night. The energy and enthusiasm that was
generated was tremendous for the horsemen,
owners and personnel at the track. It shows if
you have great horses and great racing, the fans
will come out.” Carlson said many in the crowd
of more than 4,000 -- Saratoga’s biggest in recent memory -- told him how excited they were to
be back, and Carlson says that excitement validated that the mix between racing and gaming
works well at Saratoga. He said many of the patrons stayed in Saratoga Springs overnight, enjoyed the gaming, and took in what Saratoga has
to offer. Five track records were set or equaled,
and four of the races featured times that were
the fastest in the 16-year history of “Night of
Champions,” which previously were raced at Yonkers Raceway, now being reconfigured as a
racino. Carlson hopes to host the event again.
He thinks the excitement and quality of the night
will inspire new owners to enter the sport, and he
predicts the $9 million in purses for New Yorkbred trotters and pacers will double over the next
two years, when slots at Yonkers should be
underway.
September 20, 2005
TANNER TO RUN CHESTER
NO UNANIMITY IN SAN MATEO
Mike Tanner, director of marketing at Gulfstream
Park, where he has worked for 12 years, has been
named by Harrah’s to run its harness racing operation at Chester Downs. Tanner served for eight
years as assistant director of communications at
Gulfstream under veteran publicist Joe
Tanenbaum. He also took over simulcasting operations at the track four years ago, and served
one year as special assistant to track president
Scott Savin before replacing David Rovine as director of marketing last year. Tanner, 39, says he
loved his time at Gulfstream but called Chester
“an opportunity that I couldn’t pass up.” He is a
native of southern New Jersey and said the new
job allows him “to go back home.” He will start at
Chester next month.
Two hundred people turned out for a public hearing before the San Mateo, California, City Council on the fate of Bay Meadows racetrack last night,
but they left with as much indecisiveness as before the meeting started. Bay Meadows Land
company, which owns the 71-year-old track and now
also owns Hollywood Park, wants to tear Bay
Meadows down and replace it with 1,250 homes,
1.25 million square feet of offices, 15 acres of
parkland and 150,000 square feet of stores and
restaurants on the track’s 83 acres. Supporters
of the plan think it will help stop development of
San Mateo’s hills and provide better access to
transportation and Highway 101, which serves San
Mateo. Opponents say the housing plan would
cause congestion, gridlock and school overcrowding, and that if the track must go, the land should
be put to better use than housing. The San Mateo
Chronicle’s SFGate.com reported this morning
that the proposal to tear down the track and build
the homes “received about as much opposition as
it did support.” If the City Council approves the
move, a group called Save Bay Meadows says it
will launch a referendum drive, with 30 days to
gather the signatures needed to get a referendum
on the ballot next fall.
BIDDING QUESTIONED IN PA
Slots are still a long way off in Pennsylvania, but
the process of getting them started already has
created controversy. A Pittsburgh publication, the
Tribune-Review, reports that the first major gambling-related contract, worth an estimated $6.3
million a year to GTECH, which was awarded the
contract, was let by the state’s Department of
Revenue without normal procurement process, and
that Revenue refuses to identify nine other bidders or reveal how it selected GTECH. The paper quoted Barry Kauffman, executive director of
Pennsylvania Common Cause, the public policy
nonprofit agency, as saying, “It’s clearly not an
appropriate way to conduct the public’s business.
The public can’t evaluate if the government is doing a good job in the selection process if it only
knows the winner.”
The story detailed GTECH’s negative publicity and
problems in recent years, saying the contract
“could put a company embroiled in a federal bribery investigation in charge of the
computer tracking activity at slots casinos.”
NY BOARD MULLS REBATES
Although the court-appointed monitor of the New
York Racing Association strongly recommended
rebates as an aide to racing, the New York Racing
and Wagering Board has no immediate plans to
approve the idea, according to Daily Racing
Form. Dan Toomey, a board spokesman, told the
Form’s Matt Hegarty that “NYRA is only one of
the many entities that the racing and wagering
board regulates,” and the board was still collecting input on the programs from racing interests in
the state. With all the political and business considerations involved in even the smallest decision concerning New York racing, don’t expect quick action on rebates.
September 21, 2005
SENATE ACTS ON SLAUGHTER
TASMANIAN BETFAIR ON HOLD
The U.S. Senate yesterday passed, by a decisive
68-29 vote, an amendment to the Department of
Agriculture Appropriations Bill that could, in effect, end the slaughter of horses in this country
for foreign consumption. Under provisions of the
bill -- a similar version passed the House on June
8 by a 269-158 vote -- funds would be cut off for
inspection of horse meat and would end for one
year, starting Oct. 1, the exportation of horse meat
overseas. The bill has been pushed hard in the
House by Reps. Ed Whitfield of Kentucky, John
Sweeney of New York and John Spratt of South Carolina, and Whitfield, husband of Kentucky racing commissioner Connie Whitfield, called yesterday’s vote
“a great, great victory.” It increases the chances of
passage of H.R. 503, the American Horse Slaughter
Prevention Act, which currently is before the House
Energy and Commerce Committee and would permanently end commercial horse slaughter in the
United States. The Senate amendment was introduced by former veterinarian Sen. John Ensign of
Nevada.
Betfair’s bitter battle to gain a foothold in the
southern hemisphere by gaining approval to open
betting exchanges in Tasmania were delayed
again yesterday, when the issue was put on hold
until Oct. 18. The premier of Tasmania, Paul
Lennon, was expected to endorse Betfair’s bid
yesterday, and says he thinks he has enough support in both houses of Parliament to get it done.
But Tasmania’s racing industry wanted more
time, and the delay for discussions was extended.
If Betfair is approved, Tasmanian racing would
be deleted from the Super TAB, TAB Limited and
UniTAB betting pools in other Australian states
and territories, and could affect the scheduling
of the Inter Dominion, harness racing’s biggest
event Down Under. That racing carnival currently
is scheduled for Tasmania in March. Harness
racing authorities are expected to urge Tasmania to be stripped of the event if Betfair is licensed. Robert Nason, chief executive of Racing Victoria and a strong opponent of Betfair,
thinks Lennon will have a difficult time getting
approval through both houses of Parliament.
“There is a way to go,” he said, “and it will be
months away.” Australian racing opposes the idea
because of the primary concern over Betfair, the
fact that it allows bettors to back a horse to lose
as well as win.
BETHLEHEM OKS SLOTS
Before a standing room only, turnaway crowd, the
City Council of Bethlehem, PA, voted 4-3 yesterday against a plan that would have prohibited gambling at the huge abandoned Bethlehem Steel company plant. The vote came one day after a six and
one-half hour public hearing, and opens the way for
BethWorks Now and the Sands corporation of Las
Vegas to seek a gaming license for their project to
develop 126 acres of the Bethlehem Steel site into
a huge entertainment and recreational area that
would save 23 of 33 buildings on the site and bring
3,000 slots to it. The mayor of Bethlehem, who supported the idea of a casino at the steel site, told the
Council last night, “Gambling is the law of
the land in Pennsylvania, and no action tonight is going to change that.”
MORE TROUBLE AT NYRA?
The New York Post reports that “a group of top
New York Racing Association officials has been
indicted on charges they ‘altered the outcome of
races’ by lying about the weight of jockeys....”The
paper said Mario Sciafani, NYRA’s chief of scales,
and his deputy, Hall of Fame jock Braulio Baezam
were expected to surrender today when a 190-page
indictment is formally unsealed in Albany. The
story says the indictment claims officials failed to
report the accurate weights of jocks and then
lied about the matter afterward.
THE RITA AND BRAULIO SHOW
There is no levity to what is happening in the Gulf
of Mexico, but to read New York sports pages
this morning Hall of Fame jockey Braulio Baeza
gets equal billing with the evil lady Rita who is
rampaging toward Galveston. Baeza, assistant
clerk of scales for NYRA, was fired yesterday,
along with his boss Mario Sclafani, after a 291count indictment charged the two with defrauding bettors, trainers, and other jocks by conspiring with some jockeys to falsify their actual weight
in stakes and other races on 67 occasions. Jockeys Jose Santos, who rode Funny Cide to his
much publicized victories in the 2003 Kentucky
Derby and Preakness, and Robby Albarado,
Heberto Castillo Jr., Ariel Smith and Cornelio
Velasquez were named as co-conspirators in the
suit, but do not face criminal action. They could,
however, face sanctions from the New York Racing and Wagering Board.
Sclafani and Baeza are in much deeper water.
The charges brought by state attorney general
Eliot Spitzer, state comptroller Alan Hevesi and
state police superintendent Wayne Bennett include scheme to defraud, conspiracy, falsifying
business records, tampering with a sports contest and grand larceny. Although Spitzer said the
charges resulted from a yearlong investigation
by the AG’s Organized Crime Task Force, and
Hevesi acknowledged that the new management
of NYRA had brought the matter to light immediately on discovering it, one had to read as far as
13 paragraphs or more into most stories to discover that fact. NYRA itself went farther, and
made its role clear in a press statement, that read
in part: “NYRA initiated the investigation into
these alleged improprieties two years ago and we
have cooperated fully with all government and
law enforcement agencies.” The press
damage to racing integrity, nevertheless,
has been, like Rita’s potential impact in
the Gulf, enormous.
September 22, 2005
The negative publicity involving one of racing’s
greatest former jockeys was not the only press
blow yesterday. Newsday and others jumped on
the story of NYRA trying for a quick sale of 80
acres near Aqueduct, even though state officials
claim NYRA’s assets belong to the state. NYRA
may turn out to be right or wrong in what it is
doing, but you wouldn’t know it from the stories, which imply deep, dark acts of impropriety. One such implication was cast by attorney
Donald Kinsella, representing -- according to
Newsday -- “one of several entities that seek to
replace NYRA when the state franchise expires.” Kinsella, who would not identify his client, which to some journalists would disqualify
any objectivity connected with the story, wrote
a letter to comptroller Hevesi calling NYRA’s
action “remarkable.” Some might think newspapers printing charges by lawyers refusing to
identify their clients also classify as “remarkable,” but they get printed, sell papers, and do
their damage to the accused long before adjudication.
BETTER NEWS ELSEWHERE
There were happier developments yesterday on
other fronts. In Washington, the American Horse
Council revealed that thanks to Senator Mitch
McConnell of Kentucky, language making horses
eligible for federal disaster assistance now is included in the Department of Agriculture 2006 appropriations bill in the wake of Hurricane Katrina.
In Maryland, a very positive story in Gazette.com,
the online newsletter of Maryland Communication
Newspapers, on the strong economic recovery of
Rosecroft Raceway.
And in Pennsylvania, Mohegan Sun president Bob
Soper says he expects Mohegan Sun at Pocono
Downs to be the first track slots operation in the
state. Pocono already is building a temporary
racino, and Soper thinks they will be ready
to roll by spring.
September 23, 2005
THE NET WIDENS IN ONTARIO
PRIORITIES IN FACE OF RITA
The battle against illegal medication took a new
and important turn yesterday in Ontario, when
the trailblazing Ontario Racing Commission notified licensees and participants in horse racing
-- harness and thoroughbred -- that any horses
treated by two veterinarians would be prohibited from racing in the province.
You might think people living on the Gulf coast of
the United States would be concerned most about
survival, whether the economic devastation of the
killer hurricanes can be reversed in the next decade or whether some of the damage to ports and
residential areas are essentially irreversible and
inevitable with global warming, which the federal
government has long ignored.
That undoubtedly is true with the vast majority of
people living there, but Missisippi’s largest religious group -- the Mississippi Baptist Convention
-- apparently has other priorities. It is trying to
make sure that casinos do not use Katrina and
Rita to rebuild on land, rather than over the waters of the Mississippi River or Gulf of Mexico to
which they now are limited. There are 13 of those
casinos, and the Convention’s fear is that “once
the casinos are land-based, attempts to move inward to other locations will follow,” according to
Jimmy Porter, executive director of the
Convention’s Christian Action Commission. The
Convention is not exactly without political power
in Mississippi. One out of every four Mississippians is a Baptist. The Daily Mississippian, commenting editorially on the situation, noted that “immoral or not, the fact is the state needs
money....Granted, some in-state dollars did feed
the casinos; but even more money poured in from
our Southern neighbors, of which approximately
$500,000 a day ended up in Jackson; not in Atlanta, not in Baton Rouge and not in Montgomery, but in Jackson....Too much money and too
much of our tourist appeal will be lost if we don’t
rebuild the casinos. If we’re going to have gambling, and we are, then we should go ahead and
embrace it.”
The commission on Wednesday issued a lifetime
suspension to Dr. Blaine Kennedy, revoking his
license because he “will not act in accordance
with the law, or with integrity, honesty or the
public interest.” The commission said Dr.
Kennedy had “placed the integrity of the horse
racing industry in Ontario in question and, in
particular, the quality and integrity of veterinary
care of horses, and the public interest requires
that the licensee be suspended immediately.”
Dr. Kennedy held Ontario commission licenses
to treat both harness horses and thoroughbreds,
and was found to have purchased and used controlled substances from the late Fred Rogers.
Rogers had been the subject of investigation for
years by Standardbred Investigative Services.
In issuing its ruling, the Ontario Racing Commission notified all Ontario participants in racing that any horse treated by Dr. Kennedy on or
after Saturday would be ineligible to be declared
in any race at any raceway in Ontario, and that
any participant attempting to enter a horse
treated by Dr. Kennedy after Sept. 24 would be
found to be in violation of Ontario rules, regardless of breed.
The same penalties apply to
horses treated by Dr. Martin Ian Levman. Although not an Ontario Racing Commission licensee, horses treated by him also will be ineligible to race in the province and will be
found to be in violation of Ontario’s racing rules.
SEE YOU FROM LEXINGTON
The Daily Executive Newsletter will reach you next
week from Lexington, KY, where the staff will
be operating the HTA art auction. The home
office will be manned.
FUMBLING AROUND IN PA
Racing is working at solving its many problems
these days, and the Pennsylvania Harness Racing Commission has a very big one, whether it
knows it or not. It is communications, or more
accurately the lack of them. The commission issued a suspension order dated last Wednesday for
the nation’s leading money-winning driver, Brian
Sears, saying he would have to undergo six months
of rehabilitation on drug matters and that he was
barred from racing or its premises in the meantime. Sears then drove last Thursday in the halfmillion dollar Little Brown Jug, and on Saturday
at both Freehold in the afternoon and at Mohawk
that night in the Canadian Trotting Classic, worth
$1 million in Canadian dollars. He drove, presumably, under appeal. We say “presumably” because
when we called the Pennsylvania Harness Racing
Commission this morning trying to find out what
the story was, we were given gobbledygook and
the runaround, both inappropriate for a racing commission anywhere, and particularly for a state
about to become a major power when slots kick in.
Anton Leppler, the executive director of the commission, was “too busy with meetings” to talk with
us. The commission’s director of enforcement, Walt
Remmert, took our call and said the commission
was in the process of “sorting things out” and had
no comment, that we should call back later in the
day. Meanwhile, the USTA Web site carried the
suspension, and chat lines all over North America
were buzzing with the story. This involved the
sport’s leading driver, not some minor light. As
this is written, Sears has driven the winners of
$11,508,612, this year, and the racing commission
that issued a suspension notice on him five days
earlier was still sorting things out and has no comment on the situation. We hope they get it
figured out before the Grand Circuit meeting starts tomorrow at the Red Mile in Lexington.
September 26, 2005
AND CHECKING UP IN NY
Still smarting under attacks of inaction by the court
appointed monitor of the New York Racing Association, the New York Racing and Wagering Board
announced over the weekend that it would seek a
meeting with the attorney general’s office “as soon
as possible” to review the licenses of the
unindicted coconspirators in the latest NYRA problem, that of inaccurate jockey weights. A spokesman for the board said it would go over any information attorney general Eliot Spitzer might have
on five jockeys already named, but not charged,
and perhaps four others who the AG’s office reported rode more than five pounds over announced
weights. NYRA issued a statement that “at this
time, it is NYRA’s intention to reserve judgment
on the allegations contained in the indictment concerning the named jockeys until more facts and
information become known through the Racing and
Wagering Board’s investigation. Meanwhile,
NYRA reserves all of its rights in this matter, including the right to deny access to the NYRA racetracks on anyone whose actions or reputations are
deemed to be detrimental to the sport of thoroughbred racing.” NYRA already fired its clerk of
scales, Mario Sclafani, and his assistant, Hall of
Fame jockey Braulio Baeza.
CANDOR IN DELAWARE
The Delaware Harness Racing Commission also
was in the news, in a lengthy interview of chairwoman Beth Steele by the Wilmington NewsJournal’s veteran racing writer Jack Ireland. Asked
about reducing the use of illegal drugs, Ms. Steele - who has been a racing commissioner for 12 years
-- said, “All we get to do is put our finger in the
dike. There is no quick fix, but I think racing is
cleaner and safer in Delaware right now. The horsemen tell us they want things cleaned up, but they
don’t want us coming on the farm to investigate.
We can’t do anything to stop the drug problem
until we can get on the farms and the training
centers.” She is 100% correct.
September 27, 2005
CONVENIENCE PENALTIES
BALA DENIED NEW TRIAL
The Pennsylvania Harness Racing Commission,
which yesterday was “sorting things out” in the
matter of its suspension of the nation’s leading
driver Brian Sears five days earlier for a drug problem, decided at the end of the day that although
Sears will be suspended for six months, his suspension won’t start until Oct. 3. This conveniently
allows him to drive in eight Grand Circuit events,
ranging in purse value from $200,000 to $400,000
including the Kentucky Futurity, at the Red Mile
in Lexington, KY, if he chooses. In that historic
race, the two leading 3-year-old trotters of 2005,
Hambletonian winner Vivid Photo and Canadian
Trotting Classic winner Classic Photo, meet again.
Concerning Sears, there was no public word as to
whether the Oct. 3 date was the result of a plea
bargain, a stay, an appeal or whatever. It seems
strange that if an offense warrants six months suspension, the offender is given the grace of making
substantial amounts of money plying his trade before he pays the price for his misdeeds.
A federal judge has denied granting a new trial to
convicted gaming operator Susan Bala. The
former operator of Racing Services in Fargo,
North Dakota, had claimed “newly discovered evidence” in requesting a new trial last month, and
had submitted 150 documents to U.S. District
Judge Ralph Erickson. He brushed them aside,
saying they did not constitute new evidence, and
let stand the conviction on 12 felony charges returned by a jury last February. Ms. Bala, still very
much a beauty at 51, is scheduled to begin a 27month prison term Friday.
GURFEIN, THOMSON IN HALL
Trainer Ron Gurfein and executive Tom Thomson
have been elected to harness racing’s Hall of
Fame, the United States Harness Writers Association announced yesterday. Gurfein, who has
trained some of the sport’s finest horses, is known
in particular as a master developer of top trotters.
His pupils have included Continental Victory, Victory Dream and Self Possessed, all winners of the
Hambletonian, and the world record holding trotting mare Beat the Wheel. Thomson, president of
the Grand Circuit for 14 years, is the impresario
behind the Little Brown Jug, the sport’s classic
event for 3-year-old pacers, a race created by his
father Hank Thomson and Hank’s associate Joe
Neville. Elected to the Hall of Fame’s Com- municators Corner are photographer Ed
Keys, writer Bill Heller, newspaperman
Jack Ginnetti and innovator Virginia O’Brien.
NO HELP FOR SALLY, EITHER
Another federal judge, this one sitting in Lexington, KY, has ruled for the Jockey Club and Kentucky Horse Racing Authority, and against thoroughbred breeder Garrett Redmond of Paris, KY,
in the case of naming a thoroughbred filly Sally
Hemings. Hemings is known in history as the
slave lover of Thomas Jefferson, and the filly in
question is out of Jefferson’s Secret, by Colonial
Affair. Somehow Alan Marzelli, president of the
Jockey Club, thinks naming the filly would contravene “the right of a private organization to
make and enforce rules for the integrity of racing.” He says solemnly that “the responsibility
falls upon us to enforce those rules,” and the
Jockey Club claims Hemings was a famous or
notorious person, and such names require special approval. The Jockey Club also invokes the
matter of what it considers poor taste, or names
that may be offensive to religious, political or
other groups. We could fill the rest of this column and an entire special edition with names the
Jockey Club has approved that are in poor taste,
including some with strong sexual innuendo approved for a major owner in recent years, but that
also might be in poor taste, and we do not want
to incur the wrath of those who enforce the
integrity of racing. Redmond says he may
appeal.
SEARS GETS EXTENDED STAY
Brian Sears, the nation’s leading harness driver
in money winnings with more than $11 million
earned by his mounts this year, has denied all
charges of drug use and has received an extended,
indefinite stay of his six-month suspension from
the Pennsylvania Harness Racing Commission
pending confirmatory tests, according to his attorney, Howard Taylor. Sears now is in Lexington,
KY, and will drive in the rich Grand Circuit stakes
that will feature the Red Mile racing program now
through Saturday, culminating with the $400,000
Kentucky Futurity Saturday afternoon.
POMPANO PLANS DANCER NITE
Pompano Park is hosting a Stanley Dancer Tribute Night on Saturday, October 15 to honor the
memory of the great Standardbred trainer/driver.
Dancer, who passed away at age 78 on Thursday,
September 8, was a fixture at Pompano Park for
more than 30 years. The tribute evening will feature a special memorial service before the first
race followed by live interviews with family members and friends during the racing program, a special photo page and video clips of races and special events during Dancer’s illustrious career,
many of which have never been seen before by
the general public.
LEGISLATORS DEFY VOTERS
Under our system of government, legislators are
supposed to represent their constituents, not defy
or deny their wishes. In Florida, a move is afoot in
the legislature to attempt to repeal the constitutional amendment passed by voters last year which
permits slots for four pari-mutuel operations in
Broward county. Steve Geller says the Re- publican leadership of the legislature “is treating the constitution and the will of the voters as advisory opinions.”
September 28, 2005
The Sun-Sentinel.com reported on the situation
today, saying, “With hopes dimming for a special
legislative session on slots, there’s a renewed attempt to seek repeal of the constitutional amendment that allowed expanded gambling in Florida.”
The story quoted Russell Schweiss, a spokesman
for Gov. Jeb Bush, as saying, “If the legislators
can’t come to agreement, there is no sense calling
them up here in special session.” The tracks’ lobbyist, Ron Book, said he was not optimistic that
legislators could reach agreement in time for a
special session, but hoped they would in the regular 2006 session that starts in four months. Dan
Adkins, vice president of Hollywood Greyhound
and spokesman for the tracks, was even more optimistic. “The voters addressed the issue and it
passed by a pretty good margin. We’ve been in
discussion with the Legislature. I’m more than
hopeful. I’m confident they intend to implement
the will of the people.” A major opponent of slots,
state senator Randy Johnson, a leader in the fight
for repeal, says, “People do change their minds
with more information.” Perhaps legislators who
oppose slots should too.
BAD NEWS IN MASS, TOO
Although Suffolk Downs gave its employees today off to rally at the Massachusetts legislature,
where a joint House and Senate committee is debating the future of simulcasting in the state, there
will be no discussion of slots at Bay State tracks.
The co-chairman of the joint committee, Rep.
Vincent Pedone, ruled out any action on that issue. “The committee is not going to hear anything having to do with slot machines,” he said.
“People who come up to testify, they are going to
be talking to a committee that cannot deal
with the slot issue.”
ORC SUSPENDS THIRD VET
A third veterinarian has been barred from treating racehorses in Ontario. Dr. John Flanigan joins
Dr. Blaine Kennedy and Dr. Martin Ian Levman
on the suspension list of the Ontario Racing Commission. The ORC issued a ruling that “any participant entering or attempting to enter a horse
for whom Dr. Flanigan provided such services on
or after Sept. 30, 2005 may be found to be in violation of the Rules of Standardbred or Thoroughbred racing, whichever applies.” The three veterinarians have been linked to the purchase of illegal substances supplied by the late Fred Rogers,
long the subject of an investigation by Standardbred Investigative Services. Flanigan, it turns out,
permitted Rogers to use his name and registration number with the College of Veterinarians in
Ontario for the purpose of obtaining pharmaceuticals and veterinary supplies. He admitted he
treated horses with products purchased from
Rogers. In another ORC development, the
commission’s six month suspension of ownertrainer-driver Jean Chretien was upheld for failing to report the deaths of the horses Armbro
Miracle and Don’t Ask Chris, both trained by
Chretien. He also was fined C$5,000, with half
stayed for one year and vacated at that time unless he violated rules on whipping and keeping
both feet in the stirrups.
WHEN THE TROOPS REBEL
It may not be a first, but it’s unique, when state
police sue their state over who gets to conduct
background checks. That’s the situation in Pennsylvania, where the state police union has sued
because the Gaming Control Board is negotiating
no-bid contracts with three private firms to check
as many as 30,000 people who could be subject to
investigation in connection with slots jobs. Governor Ed Rendell’s office does not think it
will result in further delay, but it seems it
might slow down policing other matters
while troopers pour over 30,000 applications.
September 29, 2005
Tad Decker, chairman of the State Gaming Control Board, described the state police lawsuit as
“a power play” with no legal grounds, saying, “This
is more about money and power and control than
it is about the merits of the case.” In politics, Mr.
Chairman? Surely you jest.
A LOCAL BAN IN MARYLAND
In Frederick county, Maryland, a first for the state.
County commissioners there voted 4-0 to amend
the county zoning to bar video slot machines, but
did not get a favorable vote on the issue of slots
within the city of Frederick. As a result, the county
ban would not prohibit HTA director William
Rickman from building a casino on land he owns
near the Frederick Municipal Airport, which is
within the city limits of Frederick. First, however,
the General Assembly will have to approve slots.
We hope Frederick is still there when they get
around to it.
APPEALS COURT OK SLOTS
A state appeals court in Florida yesterday ruled
that there is no reason four pari-mutuel operations
in Broward county cannot operate slots. This is
the second court to rule for the tracks, but they
still say they would like legislative approval before moviog ahead building racinos.
UP AND DOWN IN BEANTOWN
Race track employees and horsemen from HTA
member Plainridge Racecourse and Suffolk
Downs, some 500 strong, paraded outside the State
House in Boston yesterday, carrying placards and
wearing T-shirts emblazoned with “Save Our
Jobs.” The demonstration was intended to influence legislators considering slots at tracks for
Massachusetts, and one legislative supporter of
the idea, state senator Michael Morrissey, said
he thought there probably was a Senate majority in favor of slots, but not overwhelming
support.
September 30, 2005
MORE ONTARIO SUSPENSIONS
MAJOR LEAVITT DISPERSAL
The fallout from the investigation of illegal drug
sales by the late Fred Rogers continues in Ontario
with the suspension for five years of the leading
trainer at Rideau Carleton Raceway, Sherry
Korniski. Her husband, Robert McNamara, also
has been suspended by the Ontario Racing Commission. The commission has made no announcement of details of the case, but before his lawyer
clamped a “no comment” gag on McNamara, he
told Trot Insider on Standardbred Canada’s Web
site that the suspension was linked to dealings with
Rogers. McNamara said he and his wife had
“bought products off a man who was licensed to
sell them,” and claimed they bought only products
that were advertised for sale to everyone.
McNamara says he intends to fight the suspensions in court.
Alan Leavitt, who with his wife Meg Jewett Nichols
operates one of harness racing’s major breeding
farms at Walnut Hall Ltd. near Lexington, announced yesterday that they will be dispersing
their broodmare band and weanling crop at Harrisburg in November and operating only as a stud
operation. Walnut Hall manages stallions standing in Kentucky, New York, Pennsylvania and
Ontario. Leavitt, who broke with other breeders
this fall by selling the 90 Walnut Hall Ltd. yearlings at Tattersalls, while all other consignors
moved to the Fasig-Tipton arena across town,
averaged $32,992 Wednesday night, up almost
18% over a year go, with 17 yearlings failing to
bring reserve prices. The sale topper was Allstar
Hall, a Like a Prayer half-brother to the outstanding Conway Hall, Angus Hall and Andover Hall,
which was purchased for $270,000 by a partnership led by John Erik Magnusson of Sweden, who
operates a farm near Paris, KY.
HAMBO SOCIETY HIT BY SUIT
Daniel Waxman, son of prominent owner Bob
Waxman and owner of the outstanding pacing mare
Loyal Opposition, is suing the Hambletonian Society for withholding the purse money from the
Breeders Crown, won at Mohawk Raceway by
Loyal Opposition. The ownership switch from father to son came while Bob Waxman and the Standardbred Horse Sales Company were battling over
alleged nonpayment by Waxman for horses purchased at the company’s Harrisburg sale. Tom
Charters, president of the Hambletonian Society,
said the purse money has been placed in an escrow account at the request of the Ontario Racing
Commission and will be paid after the commission
concludes its investigation of the ownership change
on Loyal Opposition. The mare is scheduled to
start in the Milton stake at Mohawk tomorrow
night.
In other Ontario news, Woodbine Entertainment has requested 179 racing dates
at Woodbine and 81 at Mohawk for 2006.
CONGRESS CHECKS ON JOCKS
The Congressional subcommittee chaired by Rep.
Ed Whitfield of Kentucky will hold a hearing Oct.
18 that will include investigation into the Jockey’s
Guild, according to bloodhorse.com. The magazine says the Guild inquiry is “part of an ongoing
investigation by the Committee on Energy and
Commerce Subcommittee on Oversight” and that
the hearing will include management practices and
finances of the Guild. The committee is awaiting
information on those items due by Oct. 3 from the
Jockey’s Guild president Wayne Gertmenian.
HTA ART SELLS TOMORROW
Harness Tracks of America’s 28th annual auction
of equine art gets underway tomorrow morning at
8:30 at Tattersalls in Lexington. More than 200
works, featuring 19th century European bronzes
and 40 Currier & Ives prints, along with contemporary art, is being offered.
October 4, 2005
ART AUCTION GROSS $319,525
A WORLD RECORD FOR HTA?
HTA’s 28th College Scholarship Art Auction
grossed $319,525 for 210 paintings, prints, bronzes
and woodcarvings. The $1,521.55 average price
was the highest in the history of the event. Full
results will be published later this week.
The HTA art auction ended Saturday afternoon,
at 2:30, and HTA general counsel Paul Estok and
research analyst Brody Johnson helped sort things
out for the remainder of the day and evening.
Then, at 5 a.m. Sunday morning, they hopped in
Estok’s truck and drove nonstop to San Diego,
California, for the TRA-HTA-AQHR-AGTOA International Simulcast Conference. By noon they
had passed St. Louis, by late afternoon they sailed
past Tulsa, by early Monday morning they were
in Arizona, and they arrived at the simulcast conference around 1 p.m. Monday, in time for the afternoon opening session. There is something
called “above and beyond the call of duty,” and
this qualifies. It is also, until someone proves us
wrong, a world record for a nonstop KentuckyCalifornia crossing. Opening session activities at
the conference, with more than 300 attendees, included gaming and racing authority Gene
Christiansen discussing future trends in racing and
Tim Sullivan of the security firm of Safir-Rosetti
discussing financial integrity and anti-money laundering policies. Appropriately, in view of the
Meadowlands’ request for Choose Six wagering,
Christiansen stressed the need for racing to embrace change, technological and philosophical, to
remain viable. The conference continues today
and tomorrow.
MLANDS ASKS FOR CHOOSE 6
The New Jersey Sports and Exposition Authority has asked the New Jersey Racing Commission for permission to introduce Choose Six and
Group Bet wagering at the Meadowlands, and
at its next meeting at Monmouth Park. Choose
Six is the new wager introduced by Scientific
Games Racing and Cantor Index, in which the
bettor chooses the winner of any six races on
the card. It differs from Pick Six wagering in
that the bettor, not the track, chooses the six
races in their Choose Six, and has the option of
buying back into the pool if they are eliminated,
as long as there are at least six races remaining
on the card. The bet was introduced at Delaware Park in July. The Group Bet offers fans a
one-in-three chance of winning each race by
placing horses into three different categories,
all within the win pool. The morning line favorite remains a separate win bet, while the remainder of the field is placed into either Group A or
Group B. Group A includes “contenders” while
Group B consists of “longshots,” or every other
horse in the race. The bettor does not have to
be concerned which member of his or her Group
wins, as the payout will remain the same. The
Group Bet will debut in April of 2006, but the
Choose Six will be introduced just as soon as it
receives commission approval. Joe Asher, managing director of Cantor Index LLC, and Lorne
Weil, chairman and CEO of Scientific Games,
feel the availability of the new bet types is important to the growth of racing, and
lauded the Sports Authority for its “visionary spirit.”
SLACK, RUBINETTI, DIE
Harness racing has lost two prominent figures. Bill
Slack, the personable and popular former simulcast coordinator and PR spokesman for Hippodrome
de Montreal, and a baseball scout for many years
for a number of major league teams, has died of
cancer.
Owner Frank Rubinetti, who campaigned more than
60 horses over 30 years of racing, including the
1997 3-year-old trotting filly champion No
Nonsense Woman, died at 76.
October 5, 2005
NYRA GOING BROKE: HAYWARD
O CANADA!
The president of the New York Racing Association, Charles Hayward, told a state oversight
panel yesterday that NYRA will be out of money
by the third week of November if it cannot sell
off some 80 parcels of land near its Aqueduct
operation. The land is in dispute, with the state
of New York claiming it is state property, and
NYRA claiming it owns the land because it holds
the deeds and has paid property taxes on the
properties for years. NYRA says it needs between $15 million and $20 million from a sale of
the land to avoid bankruptcy, with Hayward saying “the franchise is in jeopardy.” Things are so
bad that NYRA is considering cutting health care
benefits for employees and retirees and selling
paintings that have been given to it over the years.
Carole Stone, a member of the state oversight
panel recently named by governor George Pataki,
said she believes NYRA must obtain permission
from the oversight panel, the New York Racing
and Wagering board, and the legislature before
it can sell any of the disputed land. Hayward
wants a rebate program, saying, “Money is not
leaking out of New York. Money is pouring out
of New York.” He said purses may have to be
reduced and race dates may have to be curtailed
to prevent NYRA from sinking, and also suggested possible repeal of NYRA policy to allow
employees to retire at 50 fully vested and with
100% of health care costs covered.
Speakers at yesterday’s second session of the
TRA-HTA-AQHR-AGTOA International Simulcast Conference in San Diego verified what both
Canadian and American tracks predicted would
happen with the legalization of common pool wagering between the U.S. and Canada. Arlington
Park’s director of mutuels, Jack Lisowski, reported handle from Canada increased 23%, and
noted that Canadians were betting more in trifecta
and superfecta pools than American bettors. Sean
Pinsonneault, vice president of wagering operations at Woodbine Entertainment Group, said
Arlington’s increase in handle from Canada since
merged pools began translated into a $1.3 million
gain. And Susie Sourwine, vice president of marketing at Emerald Downs in Washington state
showed a 57% increase since the introduction of
common pool betting. J. Curtis Linnell, wagering
analyst for the TRPB, suggested that proposition
bets and fixed odds betting, available in England
and Australia, had proved attractive to bettors with
access to wagering in those countries.
WILLIAM RICKMAN SR. DIES
William Rickman Sr., who rose from a machinist
in a two-car garage to a fortune as a developer
and major figure in American racing, died last Friday at 84. An owner and breeder, his racing holdings included Delaware Park and HTA member
Ocean Downs. HTA extends its deepest sym- p a thy to his son, HTA director William
Rickman Jr., and the entire Rickman family.
GUILD STANCE “TROUBLING”
Kentucky congressman Ed Whitfield, chairman of
the House subcommittee investigating the Jockeys’ Guild, says he is doubtful that the Guild and
Matrix Capital Associates, associated with it
through Guild president L. Wayne Gertmenian,
have produced all records subpoenaed by his committee. Whitfield said Gertmenian’s “continued
lack of cooperation is troubling.” A hearing on
Guild management and finances is set for October 18 in Washington.
YOU CAN’T RIDE THEM, MAL
The guy with the big smile given half a page in
Thoroughbred Times had to be Mal Burroughs,
saying he was going to give the runners a try as an
owner. You can’t win the Kentucky Derby riding
them, Mal.
October 6, 2005
SOMETHING NEW IN INDIANA
IT’S ALL IN THE GENES
Answering the call that something new and different is needed in racing, HTA member Indiana Downs has announced it will hold a one mile
$20,000 Indiana Sires stakes for trotters on the
turf Oct. 29. Racing trotters on grass is not new
in Europe -- turf races are held in Normandy -but it is rare here. Oct. 29 is Breeders’ Cup
day, and Indiana Downs will race Saturday afternoon rather than night that day, with the turf
race scheduled to follow immediately after the
last Cup event. Racing director and racing secretary Jim Ewart thinks the novelty is well worth
the try.
If you ever have wondered where entrepreneur
Shawn Scott got his talent for wheeling and dealing and persistence, the answer is clear. He got
it from his mother. Victoria Scott, undaunted by
two rejections earlier this year, is trying for a
third time to place an initiative on the 2006 ballot to legalize video gaming halls in Alaska. Ms.
Scott’s previous applications were denied because they would have created a video gambling
monopoly in Anchorage for one person -- Victoria
Scott -- and assistant attorney general Sarah
Felix found that a bit inappropriate. The earlier
Scott proposals would have established two
“gaming districts” which could not be within 75
miles of one another, and only in cities with populations over 30,000. That meant Anchorage, and
when the Associated Press looked into the proposal, it discovered that a parcel of land detailed
in the proposed law designated where that district would be. It turned out that Victoria Scott
had an option on the land. The latest Scott proposal eliminates the 75-mile buffer zone between
districts, but still designates Scott’s parcel as
Anchorage’s first gaming district. Voters would
have to approve any additional gaming halls in
Anchorage. Juneau and Fairbanks also could
have halls, with voter approval. An effort is being made to collect the 31,451 signatures needed
for the initiative before the January legislative
session begins, but a Scott co-sponsor says the
time frame is tight.
RACING TO THE RESCUE
Rosecroft Raceway is the latest HTA track to
join the NTRA’s Racing to the Rescue Relief
Fund for victims of Hurricane Katrina. The
event, to be held this Saturday, coincides with
Rosecroft’s Showcase of Champions night, and
all grandstand admissions will be donated to the
fund. Hoosier Park, Northfield Park, and
Pocono Downs/Mohegan Sun also are participating in the charity event. Some tracks are
taking voluntary contributions from patrons,
some are using automatic check-off by owners,
trainers and drivers, others are raffling off prizes
with ticket receipts earmarked for the fund, a
few are matching employee contributions, and
still others are using autograph sessions with
leading drivers and jocks. Dunking booths for
the latter also are being tried.
SENATE VOTES IN BAY STATE
SUSAN IN THE SLAMMER
Susan Bala, president and founder of Racing Services in Fargo, ND, has reported to a minimum
security federal prison in Pekin, IL, to begin serving her 27-month term for taking some $99
million in unlicensed betting between Oct.
2002 and April 2003. She is still appealing to a higher court.
The Massachusetts Senate was to vote on slots at
tracks today, and is expected to pass the measure,
since the Senate president supports the bill and
the votes appear there. That would be only onethird of the way home, because the House is not
likely to follow suit, and the governor, Mitt Romney, has promised to veto the bill if it should
pass.
SCHOLARSHIP ART VICTIMIZED
In the first such incident in the 28-year history of
the HTA College Scholarship art auction, a buyer,
either unable or unwilling to pay for his purchases,
has defaulted, leaving HTA with 28 of its best
works of art to be resold or carried over to next
year’s auction. The unsold works are being listed
as “Available” on the result sheet of the auction,
being released today on the HTA Web site and to
media.
October 7, 2005
When a reporter asked Bruno if ending NYRA’s
franchise early could benefit his son Kenneth, who
is paid $15,000 a month by Magna Entertainment
to represent it in Albany in its quest for the NYRA
franchise, Bruno bristled, calling the question
“dumb.” Magna also retained Patricia Lynch, once
the top aide to House speaker Sheldon Silver, and
former Senator Alfonse D’Amato in pursuit of that
goal.
MORE DELAYS IN MARYLAND
BRUNO DROPS THE HAMMER
In a move ominous for the New York Racing Association, one of its staunchest supporters -- and
New York state’s most powerful legislator, Senate majority leader Joe Bruno -- has announced
he is urging governor George Pataki and House
speaker Sheldon Silver to create legislation to
accelerate bidding for the racing franchise currently held by the New York Racing Association.
Bruno also suggested, however, that the state
consider a bailout for NYRA to help it out of its
current dire financial crisis and allow it to continue operations. Bruno said, “We’re going to
do everything we can through the oversight committee,” recently appointed by Pataki, “to shore
up NYRA short term.” But he added that selling
assets, which NYRA has proposed doing to save
itself from bankruptcy, “is no way to run anything.” Bruno wants New York to award a new
thoroughbred racing franchise within the next six
months, and if his view prevails, as it usually does
in New York state, NYRA could be out of the racing business well before its franchise expires Dec.
31, 2007. Bruno says he expects the legislature
to return for a special session before January and
he hopes it will consider his racing proposal at
that time. NYRA senior VP Bill Nader called that
time frame unrealistic, saying, “To implement these changes that fast would be as
unexpected as Upset beating Man O’War
at Saratoga.
The Maryland Racing Commission yesterday rejected the Maryland Jockey Club’s request to race
four days a week instead of five from January 1
through June 10. Magna Entertainment COO
Don Amos and MJC president Joe DeFrancis told
the commission such a move would provide larger
fields and boost daily purses from $194,000 this
year to $304,000 next year, but the commission
ruled against that proposal after an assistant attorney general said the MJC was contractually
bound to race five days a week for the first five
months of the year. Magna sought to have its 2006
racing dates cut from 200 to 112, then compromised
at 129, but the commission delayed a vote on that
proposal and ordered management to sit down with
horsemen and attempt to resolve their differences
before the next commission meeting in November.
MASS SENATE OKS SLOTS
The Massachusetts Senate yesterday voted, 26-9,
to allow 2,000 slots at each of the state’s four racetracks, including HTA member Plainridge Racecourse, but the battle is far from won. The House
has shown no inclination to take up the bill, and governor Mitt Romney has threatened a veto. The
Senate’s six Republicans rebelled against Romney in yesterday’s vote, and with two of the body’s
members recusing themselves the 26 votes for
slots would be the magic number for a veto if
the bill gets that far.
October 10, 2005
YOU WON’T BELIEVE THIS
PELLING, MORGAN RELOCATE
After stumbling and fumbling for days with the
original announcement of a six-month suspension
of Brian Sears, the nation’s leading harness racing driver, then extending the penalty’s effective
date to Oct. 3, allowing him to drive in and win
major races including the Kentucky Futurity at
the Red Mile in Lexington, the Pennsylvania Harness Racing Commission, without comment, today announced the penalty had been rescinded.
There was no explanation, no clarification, no
rationale, nothing, except the bare bones announcement, which reads: “Ruling No. 050907C
dated September 29th, 2005, issued against
driver Brian Sears, is hereby rescinded.” That’s
it.
U.S. harness racing may have seen the last of
trainer Brett Pelling, or will soon, and Chicago
harness racing may have seen the last of its stormy
star, Tony Morgan. When asked in Lexington
about reports of his move to Australia at the end
of the racing season, Pelling replied brusequely,
“Well, you’ve heard it officially now, from the
source.” Pelling told Canada’s The Harness Edge
that he was disappointed with the lack of leadership in U.S. racing, and that he disagreed with
some racing jurisdiction rules as well as legal action taken against him by a major client. He also
told the magazine that he wanted to educate his
two children in Australia, and that his extensive
stable at White Birch Farm in New Jersey will be
taken over by his assistant, Richard (Nifty)
Norman.
The original suspension ruling, dated Sept. 26,
stated that Sears “must complete a Pennsylvania Department of Health approved drug treatment program” and upon successful completion
of the Substance Abuse Rehabilitation Program
he might be issued a conditional license for five
years, to be reviewed annually. As a condition of
continued license, the ruling stated that Sears will
be additionally required to sign a waiver and release consent authorizing the Pennsylvania Harness Racing Commission to obtain personal information in order to ensure compliance with the
ruling and conditional license. The original suspension also denied him privilege of the grounds
of Pocono Downs and The Meadows, the two harness tracks in Pennsylvania. Presumbly, since
the new notice calls for rescinding and not amending of the original suspension, those terms presumably no longer apply. It is difficult to reconcile -- and to explain to the racing public -- how
an alleged offense serious enough to draw a sixmonth suspension suddenly is rescinded without
comment. One conclusion is that the Pennsylvania Harness Racing Commission
desperately needs a public relations director or counselor.
In Chicago, where he has been a dominant driving figure for years and the forceful de facto
leader of the Illinois Harness Horsemen’s Association, driver Tony Morgan said he is leaving to
relocate his base of operation at Dover Downs
in Delaware. Morgan told the Northwest Indiana Times that “after I saw the dates for 2006,
there was no way I was going to stay in Chicago
and race.” Morgan has fought with track management over the years, and says he has “served
my time....it’s time to let someone else battle.”
He also is troubled by the creation of a new
horsemen’s group, the Illinois Standardbred Association, which represents owners and breeders
primarily, rather than trainers and drivers, and
which Morgan says “has compromised our position terribly.” He predicted that the first of the
year “is going to be a disaster here...with the
horsemen divided into two groups....we just don’t
have the leverage we used to have with the racetracks, the Illinois Racing Board, or the legislature. He said cutting the amount of days raced
would have been the smart thing to do, for
purses and racing.
October 11, 2005
RACING LOSES THREE STARS
SPECIAL SESSION ON NYRA
The death of three stellar figures in the racing
world has left the sport poorer.
Capital News9.com in New York reports that a
special session of the Senate will be called in November or December to discuss an early end of
the franchise of the New York Racing Association
to operate New York’s Aqueduct, Belmont Park
and Saratoga Racecourse, and energy issues in
the state.
Joe Gerrity, chairman of the board of Saratoga
Gaming and Racing and an owner of both harness horses and thoroughbreds for years, has
died at 88. His greatest racing thrill, he once
said, was winning the Breeders Crown 2-yearold pacing classic in 1986 with Sunset Warrior,
a horse he kept and visited daily at his farm in
Loudonville, NY.
Tony Sisti, a sports reporter and harness racing
writer for 40 years for Newsday, died in South
Nassau Communities Hospital in New York at
80. Sisti covered harness racing from its halcyon days at Roosevelt and Yonkers Raceways
until the late 1980s, and was elected to the Writers’ Corner of the Harness Racing Hall of Fame
in 1988.
Richard Stone Reeves, one of the best known
equine painters of the present era, died Oct. 7
in Eastern Long Island Hospital in Greenport,
NY, at the age of 85. Reeves began painting
racehorses after leaving the Navy following
World War II, and became an immediate success, receiving innumerable commissions to
paint the great horses of both thoroughbred and
harness racing. Most of his paintings are owned
by private collectors, with the Aga Khan owning
the largest, and a dozen hanging in the National
Museum of Racing and Hall of Fame.
GOLDSTEIN MOVES UP AT CAPRI
Robert S. Goldstein, son of chairman and chief
executive Bernard Goldstein of Isle of Capri Casinos, has been named to the new role of executive vice chairman of the company. He also
is chairman and CEO of Alter Trading, a
scrap metal recycler.
YOU SHOULD LIVE SO LONG
It is becoming apparent that horses that currently
are yearlings, and human beings of any advanced
age, may not live to see slots in Pennsylvania.
When the pols who inhabit the state’s Gaming
Control Board get done their internal bickering
and backbiting, the current crop of yearlings may
be retired from racing, and the potential bettors
gone to their eternal reward. After hemming and
hawing over almost every administrative issue
before it, the board now is deadlocked over how
to license the companies that will provide the
slots. The chairman of the board, Thomas A.
(Tad) Decker, solemnly announced, “This is a
major problem. I don’t want to kid anybody, because I don’t see any end in sight.” The governor of Pennsylvania, Ed Rendell, is counting on
$1 billion in tax revenue from 14 racinos and casinos that he wants to use to reduce property
taxes by some $340 a household. He is going to
have to wait. The law passed in the state requires
operators to get their games from in-state suppliers, but the board can’t issue casino licenses
until 90 days after it licenses the manufacturers
and suppliers. It hasn’t even begun taking applications, but already is fighting tooth and nail over
how to do it, and to whom. Board chairman
Decker says it will take his investigators months
to complete the necessary background checks on
potential suppliers after applications are accepted, so April now is the earliest any licenses
might be issued. Oh well, there always is
Delaware and New Jersey.
A LOT OF NEWS...MOSTLY BAD
The nation knows by now that very strange things
go on politically in Florida, and it received more
evidence yesterday. The governor, Jeb Bush,
says it is wrong not to make a good-faith effort
to have the slots bill for Broward county implemented, since the voters of Broward voted for
it, but that once it is implemented he will move
to have it repealed. Bush was joined by Senate
president Tom Lee and House Speaker Allan
Bense, who told activists for the Christian Coalition of South Florida they support asking voters in November, 2006, to repeal the citizen initiative that was voted in by constitutional amendment last November and affirmed by Broward
county voters last March. This affront to public
will is one more sign of political arrogance in
Florida, and effectively postpones any chance
of slots at Broward’s four pari-mutuel operations
unless they choose to follow a state appeals court
decision that ruled they could install slots any
time they choose. To go to that expense now, in
the face of Bush’s actions and his legislative support, would seem unlikely as well as unfortunate.
MORE ON JOE GERRITY
Yesterday’s bare-bones obituary notice on Joe
Gerrity, chairman of the board of Saratoga Gaming and Raceway, needs amplification. Gerrity
died Monday at 89, a longtime owner and breeder
of both trotters and pacers and runners. A
Harvard graduate who was involved in horses
even in his college days as manager of the
Harvard polo team, he later earned a license as
a harness driver and drove occasionally at
Saratoga. He owned two Little Farms, one at
Kinderhook, NY, and another at his home in
Loudonville, where he personally cared for his
21-year-old pride and joy, the pacer Sunset Warrior, which gave him his greatest racing
thrill winning the $819,600 Breeders
Crown as a 2-year-old at Garden State
Park in 1986.
October 12, 2005
Still actively involved at the time of his death,
Gerrity had 6 standardbreds at Vernon Downs
and 12 thoroughbreds at Belmont Park and Finger Lakes, including the stakes winner Dave,
which captured the $113,000 West Point handicap at Saratoga Racetrack this year. He was
majority owner of Saratoga Gaming and Raceway, personally helping finance its opening as
the first racino in New York state when legal
challenges to the law made conventional financing difficult, and he was that HTA track’s chairman for the last 18 years. A philanthropist with
business interests including real estate, investments and a car dealership, he loved horse racing with a passion to the day he died. HTA extends its deepest sympathy to his son Daniel,
involved in management of Saratoga, to five
other sons and daughters, and the entire
Gerrity family.
VERNON DEALS CHALLENGED
Carl Greenberg, a minority shareholder in MidState Raceway, has filed objections with the Assistant U.S. Trustee handling the Vernon Downs
sales transactions, complaining that the majority
shareholder, Shawn Scott, is receiving preferential treatment under the purchase plan offered by
Jeff Gural, and alleging that undesirables are involved with the proposal. Greenberg, whose family has owned Vernon Downs stock for 40 years,
says he also is “uncomfortable” with the second
purchase plan under consideration, questioning the
rationale for the proposed $4 a share value offered
for the minority shareholders’ holdings.
MLANDS, BELMONT CANCEL
Heavy rains in the New York area have forced
cancellation of thoroughbred racing at both the
Meadowlands and Belmont Park. The Meadowlands ran only one race Saturday night and three
on Tuesday afternoon before cancelling
today’s card.
PLAINRIDGE GOING TO HOUSE
HTA member Plainridge Racecourse has cancelled
its Tuesday, October 18 card in order to permit
members of the Massachusetts harness racing
community to be heard in the halls of the Bay State
legislature. That day, a state House committee
will conduct a hearing on a measure that would
permit the installation of slot machines at the
state’s four pari-mutuel racetracks. That legislation passed the state senate last week by a 26-9
margin. Next week’s hearing will begin at 9 a.m.
at the State House in Boston. Plainridge will provide transportation free to Boston for all interested
parties. The cancelled race card will be made up
on Saturday, October 22.
BANGOR TO OPEN NOV. 4
Penn National Gaming plans to open its Bangor
Raceway slot machine facility to the public on
November 4, with an invitation-only party to be
held two days earlier, according to a company official. The casino, called Hollywood Slots, will house
up to 475 slot machines, and will open two years to
the day after voters approved a statewide referendum legalizing slot machines at Maine’s commercial harness racing facilities. Still, the facility
is only temporary; Penn National plans to replace
the slots parlor, which is located at the site of a
former restaurant, with a permanent casino with
up to 1,500 gaming machines.
October 13, 2005
Miller); Up Front Jerry (Bradley Hanners); Speed
Demon (Jim Morand); Gryffindor (David Miller);
Beretta Hall (Mike Lachance); and Whelan Mike
(Kevin Sizer). The second division, in post position order, includes: Load the Dice (Mike
Lachance); Weiss Hanover (George Brennan);
Revolutionary Foe (Cat Manzi); Cam’s Fool (Brian
Sears); Secret Weapon (Bradley Hanners); and
Royal Flush Shark (Eric Ledford).
GAMING ATTENDEES WARNED
Public health officials in a number of states are
offering preventative shots to those who attended
the Global Gaming Expo in Las Vegas the week
of Sept. 12, after learning that a worker at the
Schwan’s Food Co. booth who served free ice cream
to attendees had hepatitis-A. Hepatitis-A is a viral infection of the liver that can cause jaundice,
fatigue, abdominal pain, loss of appetite, nausea,
vomiting, diarrhea and fever. The virus most often is spread through fecal-oral contact, such as
touching hand to mouth after using the bathroom
or shaking the hands of infected people who did
not wash properly. Those infected usually develop
symptoms 15 to 50 days after exposure to the virus. Officials in Nevada said that there is no evidence the free ice cream was tainted. “It’s important to make clear that the individual was the exposure, not the product.”
ATTENTION HTA DIRECTORS
TWELVE IN MESSENGER
A total of 12 3-year-old pacing colts are entered
for the third leg of pacing’s Triple Crown, the
Messenger Stakes, to be run on Monday at
Harrington Raceway. Two fields of six will contest $72,825 divisions (to be raced as the 5th and
6th races on the card), with the top four coming
back for a third and final heat for a purse of
$281,475 (to be contested as the 10th
race). The first division includes, in post
position order: Dawn of a New Day (David
Today, along with the press release soliciting nominations for the 2005 Hanover Shoe Farms/HTA
Caretaker of the Year Award, Jessica Carner,
HTA’s editorial coordinator, e-mailed to each member racing association program ads (1/4-page, 1/
2-page, and full-page versions) announcing the
award. HTA asks that whenever and wherever
possible, member associations use these ads in
their programs to promote the caretaker award.
The deadline for nominations for the 2005
award is December 31, 2005.
October 14, 2005
CAL BOARD TAKES OVER TESTS
UNHAPPINESS IN IOWA
Milkshakes in California may cost a bit more starting next Wednesday, when the California Horse
Racing Board takes over high bicarbonate level
testing. Licensees with high bicarbonate readings
now can face fines and suspensions, and purse
money earned in such instances would automatically be forfeited. The board will test all horses
at Santa Anita and Golden Gate Fields and will
test standardbreds at Cal Expo on a random basis. Thoroughbred samples will be collected prerace, standardbred samples post race, and trainers will have the option of having a duplicate
sample collected at the same time the primary is
collected, but tested at a different laboratory than
the Kenneth Maddy lab at the University of California-Davis, which the CHRB uses. A duplicate
sample will cost trainers $165, and must be paid in
advance. If Maddy tests show high levels of carbon dioxide, and are not contradicted by duplicate
tests done elsewhere, a complaint will be filed
against the trainer and other licensees implicated
by the evidence. During processing of the case,
horses from the trainer’s barn will have to race
out of a track detention facility. Either stewards
or an administrative law judge will hear the case,
and potential sanctions include disqualification,
fine, or suspension.
The Iowa Racing and Gaming Commission has
stepped into the dispute between harness horsemen in the state and HTA member Prairie Meadows Racetrack and Casino. The track and horsemen have not been able to agree on a contract,
and the commission has refused to renew casino
and racing licenses for 2006 until they do. The
commission ordered representatives of both sides
to sit down again at the bargaining table, and resolve the issue, and said they would consider licenses next month if the issue is settled. Prairie
has settled with thoroughbred and quarter horse
interests, proposing purses totaling $14.3 million
for thoroughbreds and $2.3 million for quarter
horses, but the Iowa Harness Horsemen’s Assn.
is asking for $2.5 million and 17 days of racing
next year. Commission chairwoman Diane
Hamilton has said of the impasse, “Our interest is
to encourage the working together of the three
horse breeds.” Track president and general manager and HTA director Robert Farinella says Prairie Meadows has negotiated in good faith with the
harness group and is trying to offer a fair and competitive purse structure for all three breeds. The
track has proposed 45 days of thoroughbred racing for next year, 45 days of mixed thoroughbred
and quarter horse racing, and a 12-day harness
meeting Sept. 24 thru Oct. 14. The horsemen’s
association president, Royal Roland, says its goal
“is to get some additional funding to sustain the
increased growth and investment in Iowa’s agricultural economy.”
RAIN, RAIN GO AWAY
New Jersey is underwater, or parts of it, and the
Meadowlands has not been spared. Unrelenting
rain has forced cancellation of Wednesday’s and
Thursday’s night thoroughbred cards at the track,
and tonight’s racing program has been cancelled
as well. The Meadowlands has not raced a complete card since Oct. 7.
DON’T FORGET GROOMS
Directors and action officers: Please ask
your program directors to use the Caretaker of the Year solicitation ads we have
provided.
BERMAN OUT AT MONTICELLO
Robert Berman, who built Empire Resorts, the
owner of Monticello Raceway, and stepped down
as CEO a few months ago, now is leaving the company altogether. Although his 49-year-old brother
died recently, news releases implied Berman’s
controversial and sometimes confrontational
stances also played a role.
A VICTORY FOR GOV. CODEY
A two-judge appeals panel in New Jersey has
spelled out the pecking order of political chess in
the state. It ruled that a governor can capture a
queen, not the other way around, and that a judge
cannot stop him from doing it. Gov. Richard Codey
had attempted to remove Linda Kassekert, the
state’s top casino regulator as chairwoman of the
Casino Control Commission, from the Casino Reinvestment Development Authority board. The
Authority oversees distribution of millions of dollars of casino revenue for development projects in
New Jersey, and a state Superior Court judge issued a temporary injunction preventing Codey
from removing Kassekert. Codey appealed, and
Judge Francine I. Axelrad, writing the decision for
the two-judge appeals panel, sustained his power.
“The trial judge does not have the jurisdiction to
review and enjoin the final decision of the governor,” she wrote. Kassekert had clashed with the
governor over the appointing of a former state
Labor Commissioner, Thomas Carver, to the position of executive director of the Casino Reinvestment Development Authority. Kassekert
turned up a double loser. Carver has been appointed to the position, and she is off the authority
board. She still can appeal to the state Supreme
Court.
GERTMENIAN IN THE GLARE
Out of the shadows and into the light comes L.
Wayne Gertmenian, the president of the Jockeys’
Guild. He is expected to testify tomorrow before
the House Energy and Commerce Subcommittee
on Oversight and Investigations, chaired by Kentucky congressman Ed Whitfield. The Guild, preparing for a public performance by the controversial Gertmenian, took the offensive, issuing a press
release asking, among other things, why
tracks and their lobbyists pretend
Gertmenian is the source of the industry’s
problems.
October 17, 2005
We weren’t aware that they had, but if they did we
can guess at the answer: lack of transparency.
Gertmenian has shrouded the doings of the Guild
in secrecy. People have had enough of that these
days. Maybe tomorrow’s hearing will pull aside
the curtains a bit. But don’t bet on it.
One hundred jocks are scheduled to show up for
the hearing, packing the House to protest what
they call “the one-sided nature of the subcommittee.”
A HEARING IN BOSTON, TOO
A House committee in Massachusetts meets tomorrow in Boston to follow up on the Senate’s decisive approval of slots last week by a 26-9 vote,
and Plainridge Racecourse is taking it seriously.
The track has cancelled its Tuesday racing card
so employees, fans and others can be heard in the
halls of the legislature. The hearing begins at 9
a.m. in the State House, and Plainridge is providing free transportation to Boston for all interested
parties. Buses will leave the track at 6:30 a.m.
That’s interested!! Tomorrow’s cancelled card will
be made up with a special program this coming
Saturday, with a 10 a.m. post time. They get up
early in Massachusetts.
MESSENGER AT HARRINGTON
Harrington Raceway hosts the 49th edition of the
Messenger Stake for the second time tonight, and
the track is pulling out all the stops for the third
leg of pacing’s Triple Crown for 3-year-olds. An
invitational dinner for VIP friends of the raceway
kicks off the event, with a cocktail party starting
at 5 p.m. and a buffet dinner served from 6 to 8 in
a weather-conditioned hospitality tent at the west
end of the grandstand. The track is providing bus
shuttle service from the State Fair carnival parking lot to the hospitality tent. Two well-matched
fields of six race in two $72,825 eliminations as
the 5th and 6th races, and the top eight return
for the $218,745 final in the 10th race.
October 18, 2005
STRONG FEELINGS IN FLORIDA
A FAMILIAR NAME IN THE NEWS
If sentiments expressed in the Sun-Sentinel in
south Florida today are any indication, George
Bush is not the only family member losing public support. His brother Jeb is catching it too,
being called a hypocrite by columnist Michael
Mayo. Writing about Bush’s duality -- the governor said he would like to see a special session
of the legislature to implement slots in Broward
and then an anti-slots amendment to repeal
them, Mayo wrote, “A simple question for the
governor and State Representative Randy
Johnson, a Republican legislator who’s leading
the crusade against slots: Why not push to ban
the state lottery, too? Only a hypocrite could
pick on one without the other.” Broward county
residents were unhappy, too. The paper quoted
one as saying, “Why should we even vote? I’ve
voted straight Republican all my whole life, but
no more.” Mayo quoted Bruce Rogow, an attorney representing Broward county tracks, as saying, “If you or I violated a mandate such as this,
we’d be in jail. It’s a slap in the face to the democratic process. If anything, they ought to repeal the lottery because it’s the worst bet in town.
It targets the poorest and most vulnerable, promotes the notion of striking it rich quick, and
it’s the state that advertises and markets it.”
Mayo wrote, “Funny, Bush doesn’t seem to have
any problems relentlessly growing the lottery,
even though he says he’s opposed to the expansion of gambling in all forms. A hypocrite? Well,
maybe just a little. Jeb Bush’s most recent pronouncement on issues involving gambling was
an admission that it was “inappropriate” for four
Republican legislators to accept a $48,000 trip
to Toronto from Magna Entertainment, which
owns Gulfstream Park. The Republican party
of Florida decided to pick up the tab, “in the
hopes of sparing the four lawmakers a
possible ethics problem” according to
the St. Petersburg Times.
France is cracking down on illegal medication, and
a nine-month undercover operation has resulted
in the indictment of a leading thoroughbred
trainer, Yann-Marie Porzier, and his right hand
man, a Paris pharmacist, and Bernard Sainz,
dubbed “Le Docteur Mabuse” after a bogus doctor portrayed in the 1932 Fritz Lang movie, The
Testament of Dr. Mabuse. Porzier blazed to prominence last year with unexpected victories in both
flat and steeplechase racing. His stable at the
great racing center at Chantilly was raided by
police. A string of arrests and searches also was
made in Normandy at the stable of Jean-Philippe
Dubois, a trainer-driver well known in harness
racing circles in the United States. The prosecutor in the Normandy town of Alencon said numerous substances were seized during the Dubois
searches and are being analyzed. The daily Le
Monde reported, “The racing world is reeling,”
saying horses have died in mysterious circumstances, tests have come back positive, and some
performances have been what the paper called
“surprising.” Sainz, “Dr. Mabuse,” is involved
in the current scandal. He reportedly was jailed
for two months some years ago for practicing
medicine illegally, and for handling performanceenhancing substances. He was released on probation on condition he not leave France, but was
stopped for speeding in Belgium in 2002, and vials of phamaceutical products were found in his
car. He said he was driving to see Belgian cyclist Frank Vandenbroucke, and police then found
EPO, morphine and Clenbuterol at
Vandenbroucke’s home, and Sainz was jailed for
a month for breaching probation.
HAPPY BIRTHDAY, ED
Ed Decker, a longtime HTA director from Lebanon Raceway in years past, celebrated his 95th
birthday yesterday. HTA sends its warmest
good wishes. Go for 100, Ed.
October 19, 2005
“AN ABSOLUTE DISGRACE”
THE END OF AQUEDUCT?
That’s pretty strong language for the usually
decorous members of Congress, but that is how
Texas Republican representative Joe Barton
characterized the conduct of Wayne Gertmenian,
president and CEO of the Jockeys’ Guild, in a
hearing in Washington yesterday. Barton went
farther, questioning Gertmenian’s claims to have
been a shadowy agent of high intrigue during the
Nixon and Ford administrations. Barton asked
Gertmenian if his resume was correct, and after
Gertmenian said it was Barton said, “We think
it’s a complete fabrication. You need to provide
some documentation.” Hall of Fame jockey Chris
McCarron, who was responsible for Gertmenian
being hired to replace John Giovanni -- fired by
fax -- told the House subcommittee checking into
Guild management and finances that he had been
duped by Gertmenian. He called his decision to
bring him into the Guild “the worst mistake I ever
made,” and apologized to Giovanni and other
members of the Guild staff who had been terminated and locked out of their offices. Paralyzed
jockey Gary Birzer and his wife told the subcommittee they were unaware the Guild’s $1 million
catastrophic injury insurance had been terminated, and talked of the callous treatment they
received from Gertmenian and the Guild’s COO
Albert Fiss. The Birzers said repeated phone
calls to the pair were ignored, and that when
Gertmenian and Fiss finally visited Birzer in a
rehabilitation center their conversation was not
about helping Birzer, but on discussing how he
should sue Mountaineer Park, where he was injured in a spill. Mrs. Birzer said Fiss had told
her the Guild wanted to use her husband as a
‘guinea pig’ in the matter, and Fiss admitted, under oath, that he had said that and apologized to
the Birzers. Michigan Democratic Rep. Bart
Stupak said of the investigation, “This
thing is really a hornet’s nest and it’s
starting to unravel.”
A story in today’s Thoroughbred Times.com
quotes New York Racing Association president
Charles Howard as saying he favors an end to
racing at Aqueduct, and instead using the track
purely as a gaming facility. “You don’t need
two tracks,” Hayward said, concerning NYRA
racing at Aqueduct and Belmont Park. Hayward raised the question, however, of whether
MGM Mirage would continue with its agreement to loan NYRA $170 to build its racino and
then run it “if there’s no one at the other end
to pay back the loan.” He said NYRA thought
it could pay the $170 million back in five or six
years once Aqueduct got its 4,500 slots late next
year.
CLASSIC PHOTO FINISHED
The winner of the $1 million Canadian Trotting
Classic, Classic Photo, has been retired after suffering a paddock injury. Vying with Vivid Photo
and Strong Yankee for honors as 3-year-old trotting colt of the year, Classic Photo was hurt in New
Jersey. The colt also won the Goodtimes, American-National, Dancer Memorial, and Review Futurity, and finished second to Vivid Photo in the
Hambletonian. Owned by H. H. Wright, Jorgen
Jahre and the Classic Photo Stable, Classic Photo
will be retired to one of Kentuckian Farms’ stallion facilities with earnings of $1,447,004.
SHAKING THINGS UP IN TEXAS
The Texas Racing Commission is likely to introduce milkshake testing at its next meeting in December. The commission yesterday proposed a
rule, using 38 millimoles of carbon dioxide per liter of plasma -- one millimole higher than most
jurisdictions -- that would carry graded penalties
for first, second and third offenses, with the third
carrying a $5,000 fine and one-year suspension.
In all cases, purse money forfeitures would
be part of the penalty.
October 20, 2005
MAGNA, GCGC IN THE NEWS
OH NO! SHAWN SCOTT AGAIN
Magna Entertainment and Great Canadian Gaming Corporation were in the news yesterday. First
they jointly announced closing of Magna’s sale
of Flamboro Downs to Great Canadian, with
Magna getting $23.6 million in cash and assumption of existing debt by Great Canadian. Magna
also announced it had increased its capital budget for construction at Gulfstream Park to $171.5
million (all numbers in U.S. dollars) much of which
will go to clubhouse construction costs in the huge
rebuilding project. Magna also is borrowing up
to $13.5 million for the clubhouse construction
from BE&K, parent company of the general contractor on the Gulfstream project, and pledging
land owned by Magna in Ocala as security for
the loan. Magna also announced the retirement
of Jim McAlpine, vice chairman of corporate development. McAlpine, former CEO at Magna
Entertainment, had been the company’s longestserving chief executive, serving in that capacity
for four years, as well as being a member of the
company’s policy making executive committee.
Magna said McAlpine will continue to make himself available as a strategic advisor and consultant. On the GCGC front, its completely refurbished Fraser Downs operation was unveiled after $35 million and 22 months of construction.
GCGC’s vice president of racing operations,
Chuck Keeling, said “not one square inch” of the
facility -- which GCGC bought along with
Sandown Park on Vancouver Island for $42.5
million Canadian last March -- hasn’t been
touched by a hammer or screwdriver, from the
grandstand to the far reaches of the parking lot.
Included in the package are more than 400 slots,
which will give Fraser a new lease on life. Great
Canadian president and COO Anthony Martin,
enthused over both developments, called the acquisition of Flamboro “an ideal property
for our continued expansion into central
and eastern Canada.”
The latest in the seemingly never-ending perambulations of Shawn Scott takes place in Maine,
where Scarborough Downs has sued the Las Vegas-Virgin Islands promoter, saying he manipulated
voters, state laws and horsemen to create a monopoly on slot machines in the state. The suit,
according to Scarborough Downs owner Sharon
Terry, is an attempt to ensure that Scott “doesn’t
walk away from this a rich man after doing what
he did.” We’re not sure Ms. Terry can prevent
that, or may be a little late in doing so. Ms. Terry’s
suit says Scott, although professing to help
Scarborough Downs secure slots, always intended
to block the track from getting them. A Scott attorney said the suit had no merit, and that neither
Scott nor his Capital Seven company had done
anything wrong. A judge refused on Oct. 3 to freeze
an upcoming final payment to Scott by Penn National Gaming, which bought Bangor Raceway
from Scott for a reported $50 million after Scott
got slots legalized there.
KEY VOTE AT NORTHLANDS
Members of the board of directors of HTA member Northlands Park are scheduled to make a decision next Wednesday on the fate of a $21 million
expansion project. The decision -- called “historic”
by Dr. David Reid, chairman of Horse Racing
Alberta, involves expanding Northlands’ current
five-eighths mile track to seven furlongs. Reid
says the expansion would make Northlands competitive in selling simulcast signals and promoting
major races. Dr. Reid also said the new $80 million racing facility near the Calgary airport still is
scheduled to open in spring of 2007.
ACTION OFFICERS: PLEASE!
Four new HTA surveys, on revenues v. expenses,
player rewards, handicapping tournaments and
comparative pricing, are in your hands.
Please return ASAP.
October 21, 2005
“THE POLITICS ARE VOLATILE”
CALLING ALL SHAREHOLDERS
No kidding. That was the assessment of
Florida Senate president Tom Lee when asked
about what his august body planned to do about
the will of the voters of Broward county, who
voted twice to have slots at the four pari-mutuel
operations in their county. Lee said, “The politics of this issue are volatile,” not mentioning
the will of the people. Lee, his counterpart
House speaker Allen Bense and governor Jeb
Bush all are in agreement that they have “a
constitutional obligation” to carry out the voters’ wishes, and then negate them by having
the constitutional amendment repealed in November of 2006. The issues will be discussed
at a special session of the legislature likely to
be called in December or January.
Officials of Mid-State Raceway, owners of Vernon
Downs, are scouring the woods for shareholders,
urging those found to vote before an Oct. 31 deadline on whether they want Jeff Gural or Eric
Spector to get their track. Their vote is non-binding, but presumably will be considered by the federal bankruptcy judge who will make the call.
Gural, who according to the Syracuse Post-Standard already has lent some $2 million to Mid-State,
is reported ready to lend another $437,000 to keep
Vernon afloat. The track spends around $200,000
a month to pay its ongoing bills.
HOW TO CHANGE ATTITUDES
Getting legislators to change their minds about
gambling, particularly in Florida, is not easy, but
we have a suggestion. Try the Judd Gregg approach. Gregg, a U.S. senator from New Hampshire, stopped for gas last week and, lured by the
$340 million Powerball jackpot, bought $20 worth
of tickets One was one of 47 with five winners,
worth $853,492.
N’FIELD GETS MORE DATES
HTA member Northfield Park, overflowing with
horses, has struck a compromise with the Ohio
State Racing Commission in its dispute over dates.
The track sued the Commission after it was
awarded 17 dates less than it asked for this year.
It now is filing a motion to dismiss the lawsuit after the commission granted it nine extra dates -Tuesday nights in November and December, normally dark -- to help ease a shortage of racing
opportunities. Northfield spokesman Dave
Bianconi said Northfield had 250 horses
in the box for Monday’s card and could
program only 144 of them.
KEEPING TIME IN ONTARIO
Ontario has become the first Canadian province
to go along with the U.S. decision to extend daylight savings time in 2007. The U.S. will go on that
energy-saving plan on the second Sunday in March
that year and stay on it until the first Sunday in
November, and Ontario said it would agree to coordinate business activity with its largest trading
partner, according to The Harness Edge. The Canadian harness racing monthly reports that Quebec is likely to follow the switch too.
DEFYING WILMA
With hurricane Wilma hesitating in the western
Caribbean about making up her mind, Pompano
Park officials have decided to ignore her and hold
the track’s richest night of racing as scheduled
Saturday night. Pompano will be open for live racing and poker and present its $517,550 Super Night
program, featuring rich Florida Breeders Stakes
finals. In addition to the racing, Pompano will offer free miniature horse rides for kids, free T-shirts,
and free drawings for raffle tickets for Dreamfinder
Farms’ $1 million home giveaway.
In Toronto Saturday night, $2.6 million in purses
will be on the line in Woodbine’s Fall Four classics for 2-year-old trotters and pacers, colts
and fillies.
October 24, 2005
MAGNA’S DREAM MOVES AHEAD
NY ALSO SEEKS CONSENSUS
Frank Stronach has said, from the start, that his
idea for racing’s future included state-of-the-art
communities surrounding racetracks, with high
end condominiums, retails shops, restaurants, entertainment venues and offices. His Magna Entertainment has announced a major step toward
that goal with the development, with Forest City
Enterprises, of “The Village of Gulfstream Park.”
Forest City, Cleveland-based, will build the complex, which will cost $350 million, and if it works
as Stronach expects it will become the prototype
for other major Magna tracks around the country. The Village is stage two of a three-stage
project that began with the rebuilding of
Gulfstream Park and will conclude with a 500room hotel and casino that is expected to cost
around $400 million. The overall completed
project is expected to cost $1 billion, according
to Magna Entertainment vice chairman Dennis
Mills.
Bennett Liebman, coordinator of the Racing and
Gaming Law program at Albany Law School’s Government Law Center, will take a shot at herding
cats in mid-November. Bennett is convening a
conference hoping to bring together a diverse sector of the state’s racing industry in an attempt to
develop consensus on seeking new racing legislation in the state.
CONSORTIUM TO SEEK FUNDS
The Racing Medication and Testing Consortium,
of which HTA is a member, is preparing to launch
its bid for funding for the future through a $5 per
start assessment of owners and horsemen, and
matching funds from tracks based on average
purses per race. The Consortium hopes for 25%
participation in 2006 and 100% by 2009, in its effort to develop uniform national guidelines based
on scientific research as to when trainers and veterinarians should stop administering certain therapeutic drugs to avoid positive tests. The Consortium also is seeking to establish uniform penalties. Both objectives are needed critically in racing, regardless of breed, and HTA’s board and
members will be asked to support the Consortium
effort at the association’s annual meeting scheduled for Bellagio in Las Vegas starting
February 6. Dr. Rick Sams of Ohio State
will be lead scientist in the Consortium
project.
BROWARD NOT WAITING
While governor Jeb Bush and his key legislators
mess around talking about implementing and then
repealing slots in Broward county, the county itself is moving ahead with or without them. County
commissioners have unveiled a 422-page framework for regulating racinos, and the Miami Herald reports that even if the legislature finally gets
around to acting, Broward leaders will continue
discussing, and most likely passing, the regulations that a consultant spent all summer developing. A Broward county circuit court judge earlier
ordered the county commission to develop its own
operating regulations after track owners sued
when the legislature failed to act on rules during
its regular session. He also gave the tracks the
authority to operate without state guidelines, an
order being appealed by the Broward state
attorney’s office. Dan Adkins, speaking for the
pari-mutuel interests in Broward county, said the
tracks were pleased at the county’s action, but
preferred to have the legislature resolve the issue.
HOW LONG IS ETERNITY?
The Pittsburgh Post-Gazette reports that the Pennsylvania Harness Racing Commission has again
put off its decision on whether Centaur Inc. of Indiana or Carmen Schick of Pennsylvania gets the
fourth and final track license in the state. The commission has studied the matter for more than a
year, and now is expected to rule “in a few
weeks.”
October 25, 2005
UH-OH, HERE WE GO AGAIN
WHO WILL BELL THE CAT?
Racing’s resolve to solve its medication problems --and the problems affecting that resolve
--surfaced again yesterday, with the Louisville
Courier-Journal pinpointing the issue with its
headline, “Racing authority may scale back
penalties in medication policy.” It was referring to the Kentucky Horse Racing Authority,
which has begun backsliding from its former determined stance to end permissiveness in medication in Kentucky. The paper reported that,
“The racing authority will take public comment
on the rules through Monday and then is expected to file an amended regulation with the
Legislative Research Commission. From there,
it goes before two legislative committees before
becoming permanent.” The modifications represent a victory for Kentucky’s hardboot thoroughbred horsemen, who have vehemently fought
changes in tougher raceday medication rules
since they first were announced. Jim Gallagher,
the Authority’s executive director, said the proposed penalties will reflect the guidelines for common anti-inflammatory drugs established by the
Racing Medication and Testing Consortium, but
Kentucky thoroughbred horsemen have not
agreed with the raceday provisions of those guidelines, and still object to them.
The Breeders’ Cup, worried about possible further declines in betting this coming Saturday,
is calling for criteria in barring secondary parimutuel operators (SPMOs) from its pools.
Ken Kirchner, senior vice president of product development for the NTRA, was quoted
on Blood-Horse.com as saying, “We agree
wholeheartedly with the need for full disclosure as far as ownership of SPMOs and information regarding their players, and we want
tote security at the highest level possible. Our
complaint has been we’re not seeing a written
policy from the New York State Racing and
Wagering Board on what criteria was used for
disallowing these sites.” New York has a ban
on SPMOs, which reportedly produced some
$7 million in handle on last year’s Breeders’
Cup.
“A STACK OF AMENDMENTS”
It appears there will be changes in Pennsylvania,
too, but on slots instead of medication. State
senators plan to vote tomorrow on “a stack of
amendments” but one omission from the stack
has raised the ire of Pennsylvania’s governor, Ed
Rendell. The issue of multiple slot machine distributors, which offers the opportunity for political patronage payoffs, is red hot, with no resolution in sight. Rendell has grown impatient
with the delay it is causing in getting slots
up and running, and says he is ready to
legislate the issue.
DAMAGE AT POMPANO PARK
Pompano Park, which defied Hurricane Wilma on
Saturday night by presenting its half-million dollar Florida Sire Stakes Super Night card, paid the
penalty for fooling Mother Nature when it was
blasted as Wilma raced across Florida Monday.
Although direct communication apparently has
been cut off, phone calls indicate roof damage at
the track, and Jane Murray, executive director of
the Florida SBOA, told The Horseman’s
harnessracing.com that “we have suffered major
damage on the backstretch.” No injuries to people
or horses have been reported at press time.
YOU HAVE IT WRONG, JOHN
Senator John McCain of Arizona, speaking to nine
main tribes in Oregon at Portland State University, said the Indian Gaming Regulatory Act of 1988
“must be revisited, and we will.” McCain said
gambling had a long history of corruption. Reading the DeLay-Abramoff-Libby reports, we
thought he was referring to Washington.
October 26, 2005
A MICHIGAN TOWN SAYS NO
LIGHTING UP DOVER DOWNS
Dorian Lange is a Michigan entrepreneur and promoter with a dynamic personality and persistence.
Neither was enough, however, to convince the
trustees of Michigan’s Windsor Township, near
Lansing, to let him build a horse park -- with racing and simulcasting and a hotel -- on 200 acres in
the township. Lange has been talking for several
years now of developing the project, and showed
up at the Racing Symposium in Tucson to discuss
it. Yesterday the township trustees took only 30
minutes to shoot down Lange’s proposal, saying
they had enough information after months of controversy to resolve the matter quickly. Lange says
he is not discouraged by the vote. He acknowledged that it will make it difficult for him to have a
racing component, but says he still can have a rodeo and other viable options to continue to push
the project through. Lange says despite the rejection, the door is not fully closed on the idea.
“It’s a great project,” he says. “We have been at
it for a number of years, and we will stay the
course.” Just not a race course.
When Dover Downs opens its 37th season of
harness racing next Monday night, it will be a
brighter place by far. Dover has replaced its
lighting system, installed for its opening in 1969,
with 26 new lighting towers around the racing
property. The installation triggered rumors that
Dover was planning night auto racing on its
“Monster Mile,” as NASCAR fans know it, but
Denis McGlynn, CEO and president of Dover
Motorsports, quickly ended that speculation.
“There is no truth to the rumor that lights will
be added in 2006 at Dover International Speedway.”
SLOTS IN MAINE BEGIN NOV. 4
Two years and $50 million or so after voters approved slot machines at harness tracks in Maine,
Penn National Gaming will open its Hollywood
Slots in Bangor, Maine. The operation will not
be at the harness track in the center of town. It
will be a 475-slot operation in a former restaurant, with Hollywood glitz, a temporary home until Penn National’s permanent racino, with 1,500
slots, gets going in two to three years after renovation of Bangor Raceway. The racino may not
be at the track even then. The law specifies it
has to be within 2,000 feet of the track, so it
could be as much as almost half a mile away.
The president of the Maine Harness
Horsemen’s Assn. asks, “How can you
call it a racino? You can’t even see a
horse.”
SIS PLAYS ROLE IN CUP
Agents from Standardbred Investigative Services
will join their counterparts from the Thoroughbred
Racing Protective Bureau this week in security
operations on the backstretch of Belmont Park,
scene of Saturday’s Breeders’ Cup. The coordinated team effort is part of the “BET” task force
assigned to major racing classics to assist and enhance stable area security. BET was in operation
at both the Hambletonian and Little Brown Jug,
and at the request of the Racing Medication and
Testing Consortium BET investigators are developing a “best practices” manual on track security.
The Consortium will make the manual available
to participating tracks and state racing commissions to assist in development of more effective
and cost efficient track security, and to help provide more uniform security practices from state to
state and track to track. For the first time in 21
years of Breeders’ Cup racing, all horses in all
eight races will race out of six-hour retention barns.
THINGS STILL GRIM IN FLORIDA
An e-mail from Steve Wolf, marketing director at
Pompano Park: “Wolf family ok. Cell no
good. House damaged, track worse. Will call
when able.”
FOUR NEW TRACKS IN HTA
The four harness tracks now owned and operated
by Great Canadian Gaming Corporation -- Fraser
Downs, Sandown Park, Georgian Downs and
Flamboro Raceway -- are joining Harness Tracks
of America, and will officially be welcomed at the
HTA board meeting February 7 during the Racing
Congress at Bellagio in Las Vegas. Chuck Keeling Jr., whose family founded Fraser Downs and
who now is vice president of racing operations of
Great Canadian Gaming, will serve as director on
the HTA board for the four GCGC tracks.
WILMA CLOSES POMPANO
Battered and lashed by the winds of Wilma, Pompano Park announced today that it is going to be
closed “indefinitely,” until the damage can be assessed and repairs get underway. General manger Dick Feinberg reported, “We are happy to
report that all of our horses survived the storm
and are safely housed, and that all of our horsemen and women made it through okay.”
GERTMENIAN ON THE GRIDDLE
After a United States congressman said his subcommittee could not verify the supposed credentials of the Jockeys’ Guild president Wayne
Gertmenian, the Guild has begun its own internal investigation to see if it can. Gertmenian
supposedly held high secret posts during the
Nixon and Ford administrations, but neither the
present House subcommittee nor earlier efforts
have been able to substantiate those claims.
Daily Racing Form’s Matt Hegarty reports
that the Guild’s nine-member executive committee approved the investigation Tuesday
night after a telephone conference call, during
which New York rider John Velazquez urged the
committee to fire Gertmenian. Seven of
the nine members did not support the
suggestion.
October 27, 2005
Velazquez declined comment on whether his reported motion was accurate, saying, “I can’t talk
about that right now. We are having meetings,
and we want an investigation. We want some
questions answered.” Gertmenian has not been
having a good month. His veracity was challenged last week by House member Joe Barton
of Texas, who called his conduct
“an absolute disgrace”; Hall of Fame jockey
Chris McCarron said getting Gertmenian hired
was “my worst mistake”; and this week
Gertmenian was called “a bully who finally met
his match in the halls of Congress” by editor-inchief Ray Paulick in his column in Blood-Horse.
Paulick wrote that Gertmenian “brought what
he thought would be hapless ‘yes’ men and
women onto the board and into leadership positions, then manipulated the membership and its
finances to do as he pleased.” Paulick also came
down hard on McCarron, writing that he was “as
responsible for the current mess as anyone. He
traveled the country with Gertmenian in 2001,
introducing him to jockeys from coast to coast
as the future savior of the Guild.” Paulick said
McCarron was “hoping the mess would go away,
but it hasn’t,” adding that McCarron has the
influence and stature to help right a wrong, and
“It’s time he stood up and did just that.”
EQUINE EQUITY ACT OF 2005
The American Horse Council reports that Representatives Ron Lewis, Hal Rogers, Ed
Whitfield and Geoff Davis, all Republicans of
Kentucky, have introduced the Equine Equity Act
in the House of Representatives. The bill, H.R.
4151, has been referred to the House Agriculture Committee and the Ways and Means Committee. The bill would end disparate tax treatment of the horse industry versus other industries, by making horses eligible for capital gains
treatment after one year, depreciating racehorses over three years, and providing federal emergency assistance for horses.
October 28, 2005
HOUSE VOTES TO KILL CASINOS
GUILD LAWYER HAS ENOUGH
It isn’t going to happen, but the Illinois House
yesterday voted to close the state’s riverboat casinos, 15 years after they opened. The speaker
of the House, Michael Madigan, said the existing casino system has produced huge amounts of
money for a few people, and needs to be overhauled, and House Democrats voted overwhelmingly to support abolition. The president of the
Senate, Emil Jones, had a sharp reaction to the
House action, making it clear the House proposal
was going nowhere in the Senate. “The Senate
is a very responsible body,” he said. “It doesn’t
do irresponsible things. Riverboat gambling provides about $780 million for schools every year.
How is that revenue going to be replaced? I can’t
see a member voting to take money away from
their schoolchildren.” Madigan proposed starting over with new gambling legislation, saying,
“I think we should go back to the drawing board.”
The bill passed the House 67-42, with 7 members
voting “present.” Its sponsor, Rep. John Bradley, said the casinos encourage addiction, lead to
crime and take money away from the people who
can least afford to lose it, and said, “Let’s take
this scourge out of our communities.” The governor of Illinois, Rod Blagojevich, called the
House bill “intriguing,” but would not say whether
he would sign it if it reached his desk. “I just
think if you’re going to do something like having
riverboats and licenses where you can make all
kinds of money, that people have to get their fair
share.” The Republican House minority leader,
Tom Cross, said he thought the move was designed to help downstate Democrats fend off
Republicans in next year’s elections. A suggestion to Rep. Bradley: After you get shot down by
the Senate, why not try to do away with the Illinois Lottery? If you’re concerned with addiction
and taking money from people who can
least afford it, that would be a great place
to start.
A lobbyist and lawyer for the Jockeys’ Guild has
quit, saying he cannot continue to represent the
Guild with the present management team in place.
Daily Racing Form reports that Barry Broad resigned because of concerns raised in the Oct. 18
hearing of the House Subcommittee on Oversight
and Investigations, primarily about the Guild president, Wayne Gertmenian. He draws a yearly salary of $165,000 and the Guild also pays his company, Matrix Capital Associates, $335,000 a year.
Gertmenian is the owner and sole employee of the
company, according to the Form.
SPLIT DECISION FOR TRIBES
Indian tribes on the east and west coast were
not only geographically miles apart yesterday,
but also far apart on results of their negotiations.
In Utica, NY, a federal judge ruled that Madison county cannot seize Oneida Indian Nation
property over unpaid taxes. In the state of Washington, Gov. Christine Gregoire rejected the
Spokane Tribe’s proposed gaming compact.
In the New York matter, U.S. District Judge
David Hurd said that although the Oneidas owed
property taxes to Madison county, the county
“must find an alternate method to satisfy the
Nation’s debt to the county,” because the Oneidas are a sovereign nation. The judge said there
was “a vast difference” between requiring property owned by a sovereign nation to be taxed
and allowing property to be seized from that sovereign nation. Hurd said such seizure should
require, at the very least, a specific act of Congress.
FRANK WHITE DIES
Frank White, former president and CEO of MidState Raceway and Vernon Downs, died last
week in Community Memorial Hospital in
Hamilton, NY.
Oct. 31, 2005
BUCCI GETS 3 YEARS 5 MONTHS
ILL WINDS BLOW SOME GOOD
Dan Bucci, the veteran and well-known former
general manager of Lincoln Downs, or Lincoln Park
as it now is known, was sentenced to three years
and five months in a federal prison Friday for conspiracy involving bribery. In sentencing Bucci and
Nigel Potter, CEO of Wembley PLC, the track’s
former owners, U.S. District Judge Mary Lisi said
it was clear to her “that Mr. Bucci was the instigator of these offenses,” and she gave Potter three
years and fined Wembley PLC $1.5 million. The
crime was conspiring to bribe the speaker of the
Rhode Island House, John Harwood, by funneling
$4 million to him through his law partner Dan
McKinnon, attorney for Lincoln Downs. The bribe
was never paid, and Harwood and McKinnon were
not charged, but a paper trail through faxes in 2000
and 2001 indicated the idea was to bribe Harwood
into blocking a Narragansett Indian Nation bid to
build a competing casino, and at the same time
add 1,000 more slots to Lincoln Downs. Wembley
no longer owns the track, having sold it in July.
That’s if you’re a casino operator on the Gulf coast.
They were devastated, of course, by Katrina, but
it appears they will be bailed out of some of their
agony by being allowed to move onshore in Mississippi and Louisiana. Mississippi already has
set the process in motion by approving 15 acres
on Back Bay Boulevard in Jackson for construction of a new Golden Gulf Casino. The ill wind
turned out to be followed by sunny clouds for one
Christopher A. Ferrara of Baton Rouge, LA, who
owns the property on which Golden Gulf will build,
and he will be the builder as well, with financial
partners. He already has environmental and city
permits to begin construction.
ANOTHER CRIME DOES NOT PAY
In another “crime does not pay” narrative, a
lady named Christina Goodenow discovered
good luck can be obliterated totally by bad judgment. Ms. Goodenow, 38, of White City, Oregon, bought a state scratch-it ticket and won
$1 million. She is not likely to receive the
money, however, and is sitting in jail without
bail on charges of theft, forgery, identify theft,
credit card fraud, possession of methamphetamine, computer crime and a parole violation.
It seems that Ms. Goodenow bought the winning ticket with a stolen credit card -- actually
that of her mother-in-law, who died more than
a year ago -- and police began tracking her last
Wednesday. She picked up a first installment
of $33,500 of the $1 million, and the
cops, who found the meth in her house,
can’t find the money.
CLOSED DOORS IN CONGRESS?
Nah. Couldn’t be. Someone must be mistaken. On the other hand, the charge is being
made by two congressmen, Republicans Ed
Whitfield of Kentucky and John Sweeney of
New York, prime movers in the horse antislaughter bill passed recently in the House at
their instigation. The pair now say a last
minute change in the language, making it ambiguous and confusing, was done behind closed
doors. It appeared that the National
Cattleman’s Beef Association may have been
behind the doors, since their newsletter reports that the new language will allow horse
slaughter plants in Texas and Illinois to pay
Agriculture Department inspectors to check
horse meat for sale. The original bill intended
to cut off horse slaughter by withdrawing funds
for federal inspection, without which it cannot
be sold. Whitfield says, “We had four different lawyers look at this (new) language, and
we’ve come up with four different answers.”
Even Agriculture Department lawyers admitted the provision was vague. Sweeney said,
“Someone made the decision to change 100
years of congressional precedent without
debate.”
VIABLE, DRAMATIC AND DUMB
We do not know Carole Stone, the chairwoman of
the state oversight board in New York created to
help avoid the projected demise of the New York
Racing Association, but we can guess that Ms.
Stone does not know racing. After a closed door
meeting yesterday on NYRA’s desperate financial situation, Ms. Stone said there were “viable,
dramatic measures” that NYRA might take to allow it to operate until spring, when revenues rise.
She did not identify them, but the press did, saying they included raising takeout. Three men who
do know racing -- NYRA co-chairman C. Steven
Duncker, NYRA spokesman Bill Nader, and racing law expert and former racing commissioner
Bennett Liebman, quickly foretold what raising
takeout was likely to do. Duncker said bettors
would take their gambling dollars elsewhere.
Nader said, “If’s it aimed at helping NYRA, it
would do just the opposite.” And Liebman noted
that handle dipped when takeout rose in the past,
and said, “The notion that raising takeout is going
to help NYRA has very little historical basis.” All
three are right.
The argument continues, meanwhile, as to whether
NYRA has the right to sell or otherwise dispose of
the 15 paintings worth $2 million or more and sell
$20 million of property near Aqueduct. One man
who has been noisily saying they don’t is an attorney named Donald Kinsella of Albany. He wrote
Ms. Stone objecting to NYRA selling that property “to pay for costs caused by its misconduct.”
We’re not sure what standing Mr. Kinsella has,
but he says he represents a potential competitor
to NYRA that he won’t identify. If New York and
NYRA need transparency, as very expensive measures taken so far claim, it might be nice either to
identify who people like Kinsella represent or ignore them. Competition is healthy, but
should not be clandestine.
One “viable and dramatic” way Ms. Stone
Nov. 1, 2005
and her colleagues might help racing is to help collect the more than $23 million in taxes that are
owed to New York by the more than 3,000 licensed
lottery machine operators, 350 of whom owe the
state more than $10,000 each. Some of them sell
more than $1 million a year in lottery tickets, and
state comptroller Alan Hevesi needs to crack down
on these people instead of campaigning on the
NYRA issue. One New York City lottery retailer,
according to Hevesi, collected $72,763 in commissions on sales of $1.2 million, and owes New York
$43,504 in taxes. You might solve your problem in
one stroke, Ms. Stone, with a little enforcement in
the state.
TRIALS AND TRIBULATIONS
after more than a year of deliberation, will announce Thursday whether Centaur and Jeff Smith
or Ambrosia and Carmen Shick get the fourth and
final harness track in the state.
New HTA member Fraser Downs will pay up to
$2,000 shipping on horses bought for $8,000 or
more at eastern sales to help owners defray the
expense of shipping them west to British Columbia and encourage purchase of better stock.
Saginaw Harness Raceway in Michigan has closed
for good after 25 years of racing.
A study group has been formed to conduct a fullscale, extensive feasibility study on the future viability of Rockingham Park without slots.
More than 90 members of the Massachusetts
House are reported ready to approve slots, but
face a time bind in this year’s session.
The betting exchange Betfair is expected to get
an Australian foothold this week in Tasmania.
Bay Meadows is planning to move from its San
Mateo home to a location with slots.
AROUND THE TRACKS
POMPANO PARK, still digging out from the fury
of Wilma, may be able to resume simulcasting in
less than two weeks, according to general manager Dick Feinberg. The return of live racing is
more distant, hopefully sometime between
Thanksgiving and Christmas. There is some potential good news, however. The U.S. District
Court of Appeals has ruled that the Division of
Pari-Mutuel Wagering, which serves as a racing
commission in Florida, overstepped its authority
in attempting to limit poker jackpots and special
events. If the decision holds, Pompano will be
able to compete on more equal terms with the
Seminoles and other Indian casinos, which have
held a competitive advantage with their exotic
jackpots and special games.
POCONO DOWNS will join Freehold Raceway
as a major daytime harness track when it opens
April 1. The Pennsylvania mountain resort track
will conduct its entire 143-day meeting with afternoon programs.
SARATOGA GAMING AND RACING is introducing a 10-cent superfecta, on its own supers
and on any simulcast from tracks that also offer
them.
THE ONTARIO HARNESS HORSE ASSN. is
relocating its offices, moving from the offices it
has rented for some $60,000 a year from Standardbred Canada to a new location in
Campbellville. According to The Harness Edge,
the OHHA also is taking back in house administration of its membership duties, which had been
performed for it by Standardbred Canada at a
reported $40,000 a year.
BEDFORD DOWNS or VALLEY VIEW
DOWNS will learn their fate as
Pennsylvania’s final harness track tomorrow.
November 2, 2005
THE NEW YORK RACING ASSOCIATION’S
co-chairman, Peter Karches, has called the proposal to raise takeout to save NYRA “a nonstarter.” Karches says raising takeout won’t work
because it could increase revenues only on bets
made at NYRA tracks, which would bring in only
about $140,000 a month in extra revenues, presuming handle wouldn’t fall as a result. Karches
called the idea “a bad solution” and said, “It
doesn’t solve the problem; it doesn’t generate
money.”
THE MEADOWLANDS and PENNWOOD
RACING handled almost $41.5 million in account
wagering in the first year of operation. Big M
senior vice president for racing Dennis Dowd said
first year operations “far exceeded our expectations” and called account wagering “the good
news in New Jersey horse racing.” The phone
betting produced $475,000 in purses, the monies
going to each track on which the wagers were
made. Hal Handel, CEO at Philadelphia Park,
also expressed delight at the first year results
and said his track was “appreciative of the fine
work the NJSEA has done with the account-wagering system.”
HOOSIER PARK and INDIANA DOWNS are
hopeful that reconsideration of pull-tabs for the
state will result in installation at tracks. The idea
resurfaced after the Indiana Licensed Beverage
Assn. launched a major push to legalize the machines for taverns and bars. One state representative, Scott Reske, raised the question of how
the state would regulate 2,000 taverns, and said
there is growing support among lawmakers to allow alternative gaming at the two HTA tracks.
State senator Tim Lanane suggested the tracks
may have to join forces with the tavern owners to
get legislation passed, but Rick Moore of Hoosier Park said Hoosier prefers a stand-alone bill
that supports the racing industry, which
touches all 92 counties.
November 3, 2005
PA VOTE: NO ONE GETS TRACK
THE TAIL WAGS THE DOG
after more than a year of deliberation, announced
its decision today in the long battle between
Centaur’s Valley View Downs and the Schick
family’s Bedford Downs for the final harness racing license in Pennsylvania. It turned down both
applications and did not award the license, and it
did so without comment or explanation, saying their
rationale would be issued in the next few weeks.
The two applicants have spent tons of money and
three years of effort in their applications to build a
western Pennsylvania track. The racing board said
it would start anew on the licensing process, with
Bedford Downs and Valley View Downs eligible to
re-apply despite the board’s denial today. The
board’s action can be challenged in court, but no
word on that as yet.
When you can’t get in the front door, try going
around to the back. That’s what Betfair did Down
Under, where it was rebuffed by seven state and
territory governments and then wooed the premier
of the eighth, Tasmania, Australia’s smallest state
with 484,000 people. The premier, Paul Lennon,
partnering with the Publishing and Broadcasting
Ltd. of Australia’s richest man and biggest bettor,
Kerry Packer, announced Tasmania would grant
the British betting exchange a license to operate
in the country, despite vehement opposition from
the local racing industry and other racing groups
throughout Australia. The Tasmanian government
issued multiple media releases trying to justify
the move, including defending the integrity of a
system that includes betting on horses to lose. The
chairman of the Australian Racing Board, Andrew
Ramsden, issued a long and blistering response in
which he said, in part, “The Tasmanian Premier’s
decision today doesn’t beat anyone to the punch - it gives a green light to something that every
other State and Territory has already rejected.
That surely tells its own story....The views of the
wider Australian Racing Industry seem to have
been a poor secondary consideration. For the
Australian Racing Board the issue is squarely
about the integrity of racing -- our capacity to run
the sport in a way that the public has confidence in
its integrity. It is an unshakeable fact that the presence of betting exchanges undermines this. The
easy facility to make money out of horses losing
is an undeniable temptation to cheat.”
YOUBET REBATE SHOP GETS OK
Youbet.com broke new ground in U.S. racing yesterday, when the Oregon Racing Commission approved a license for Youbet’s International Racing Group subsidiary, International Racing
Group, an off-shore high volume rebate shop operating out of Curacao. Known as Holiday Beach,
the shop was acquired by Youbet in June. It had
been named but not charged in an 88-count federal indictment earlier this year, and handled $140
million in 2003 and $210 million last year, according to Youbet, whose CEO Charles Champion
called the Oregon action “an important step forward for U.S. racing.” Champion said, “Now there
is a regulated entity in this segment of the horse
racing industry that meets the compliance needs
of tracks and the demands of customers. Clearly,
ORC has once again demonstrated its leadership
and appreciable understanding of issues facing
the racing business and ADW.” IRG currently accepts races on 90 U.S. tracks of
all breeds.
ILLINOIS SENATE SAVES BOATS
Forget the Illinois House and its vote to end
riverboat casinos in the state. The Senate took
care of that matter in short order, when its sponsor of the abolition legislation, John Cullerton of
Chicago, said he had no intention of asking for a
vote on the issue.
HTA MEMBERSHIP UP TO 41
Four more tracks will be welcomed to HTA membership at the annual meeting. Rejoining HTA are
Batavia Downs in New York and Cal-Expo in California. New members are Western Fair Raceway
in Ontario and Harrah’s Casino and Racetrack in
Pennsylvania. Joining HTA’s board of directors
will be Martin Basinait for Batavia, Chris Schick
for Cal-Expo, Hugh Mitchell for Western Fair, and
Anne Allman for Harrah’s. We welcome all four
warmly.
NYRA SLOT SPLIT ANNOUNCED
Slots are still a long way off at Aqueduct Racetrack, but the New York Racing Association and
its thoroughbred horsemen and breeders have
reached a revenue-sharing agreement for when
they do arrive. In the first three years of slots
operation, horsemen will receive 7.5% of gross
gaming revenues. In years 4 and 5, they will
get 7.75%. And in the sixth year and afterwards,
they will get 10%. They will dedicate $3.5 million of their share annually, however, to capital
improvements on the backstretch for as long as
NYRA retains its franchise. The New York
Breeding and Development Fund will get 1.25%
of gross gaming revenue for the first five years,
and 1.5% after that. All parties to the agreement expressed satisfaction with the split, which
will begin when 4,500 slots start operating at Aqueduct.
THE PENNSYLVANIA MYSTERY
How and why the Pennsylvania Harness Racing
Commission operates is a secret shared by the
three commissioners who constitute it, and to the
executive director who runs it, but public relations
seemingly is not one of their concerns. Yesterday,
after agonizing for more than two years
over which of two applicants should receive
the final harness license in Pennsylvania,
November 4, 2005
they stunned everyone concerned by deciding to
give it to neither. That decision, coming on the
heels of the fiasco of a six-month suspension of
the nation’s leading harness driver, and the quick
rescinding of that penalty, would have seemed
enough to make the commission conscious of public relations, but instead the commission made its
announcement with little comment and no explanations. The Pittsburgh Post-Gazette, among others, was mystified, reporting, “Commissioners refused to explain their decision and said their rationale would not be available until next week.” One
might think that if a racing commission had finally
made up its mind on something after two years of
deliberation, it would be able to announce its reasoning when it announced its decision. Not in Pennsylvania.
LIFE & DEATH IN HOLLYWOOD
There are things that are hard to believe in California as well as Pennsylvania. One is Hollywood Park operating without a fall turf stakes
schedule. The once-storied track, now in a threeyear life-and-death cycle that could wind up with
it becoming a housing or business complex under its new owner, the Bay Meadows Land Company, announced it was cutting back live racing
dates from 31 to 27, without turf stakes. It cut
11 of them worth $2.3 million as a result of not
having a raceable turf course. With the cutback,
overnight purses will increase between 12 and
14%. In better news, the California Racing
Board heard from Norm Towne, representing
Cal-Expo, who said that even though handle and
attendance dropped during the summer lead-in
harness meeting to Cal-Expo, that summer harness meeting still was desirable, and the CalExpo board was considering adding a turf course
and 5-furlong dirt track to accommodate runners
and harness horses in afternoon and night racing, in the pattern proved workable by
Woodbine.
BUCCI, POTTER GET 3 YEARS
The scheme to get more slot machines and stifle
competition that was hatched four years ago by
former general manager Dan Bucci of Lincoln
Park in Rhode Island, and Nigel Potter, CEO of
the track’s former owner, Wembley PLC of England, came to a sorry end Friday, when both were
sentenced to a federal penitentiary by U.S. judge
Mary Lisi. Bucci received three years and five
months as the instigator of the conspiracy, and
Potter, the English CEO of the major gaming company in Great Britain, was sentenced to three
years. They are due to report to the court Nov.
25. Faxes between the two men played a key
role in the indictment on 22 counts in September,
and Friday’s sentencing. In addition, Lincoln Park
was fined $1.5 million for allowing the scheme to
take place within the company. According to the
trial testimony, Bucci had suggested -- and Potter had agreed -- to channel $4 million to Rhode
Island’s then speaker of the House, John
Harwood, by disguising the money as merit bonuses to Harwood’s law partner, Daniel
McKinnon, who has been a lawyer for Lincoln
Park for ten years. In return, it was hoped
Harwood would use his political influence to get
Lincoln Park an additional 1,500 slot machines,
and block efforts of the Narragansett Indian Tribe
to build a competing casino. The bribe money
was never paid, and Harwood and McKinnon
were not charged in the matter.
PA COMMISSION UNDER FIRE
Pennsylvania state representative Mike Veon,
one of the architects of Pennsylvania’s racino law,
has urged Gov. Ed Rendell to remove all three
members of the Pennsylvania Harness Racing
Commission. Veon was outraged by the
commission’s decision not to award a license t o
either Centaur Inc.’s Valley View Downs
or the Schick family’s Bedford Downs in
his district.
November 7, 2005
“These applicants have now spent several years
and millions of dollars that has resulted in absolutely nothing for western Pennsylvania,” Veon
told the Pittsburgh Post-Gazette. The commission gave no explanation or rationale for its decision when it was announced last Friday, saying a
written document would be issued in a week or
so.
BUSH CALLS SPECIAL SESSION
Jeb Bush, that is, the other half of the family and
the governor of Florida. He has ordered state legislators to return to Tallahassee next month to
overhaul Florida’s $15 million Medicaid program
and draft rules and regulations for Broward
county’s four racinos. Although track executives
were heartened, there is no reason for celebration
just yet. Bush apparently still plans to call for
November 2006, repeal of the legislation approved
by voters in Florida last November.
NO JOY IN INDIANA, EITHER
The governor of Indiana, Mitch Daniels, has made
it clear again that he remains a stumbling block to
passage of any legislation that would provide for
alternative gaming at the state’s two tracks, HTA
members Hoosier Park and Indiana Downs.
Daniels’ press secretary, Jane Jankowski, says
no proposal to legalize pull tab machines or slots
will be part of Daniels’ agenda at next year’s legislative session.
In southern Indiana, nature’s 2006 assault that
includes hurricanes Katrina and Wilma continued,
when a tornado killed 22 people and skipped across
the Ohio river to kill three horses and do major
damage at Ellis Park in Henderson, KY. An Ellis
trainer, Larry Jones, said, “It’s wiped out a lot of
people’s lives as they know it.”
In Wisconsin, a stable fire killed nine harness horses owned by Carol and Bob Yohn.
November 8, 2005
BAD NEWS IN BOSTON
GOOD NEWS AT GCGC
HTA member Plainridge Racecourse and the three
other tracks in Massachusetts got bad news yesterday. The speaker of the House, Sal DiMasi,
announced that it is likely that body would ignore
slots-for-tracks legislation passed last month by
the state Senate. DiMasi said in a City Hall Plaza
interview that, “I can’t say for sure that I’m going
to say, ‘No,’ for this year, but it doesn’t look likely
-- it looks highly unlikely.” The president of the
Senate, Robert E. Travaglini, a strong supporter
of slots for tracks (he has Wonderland Greyhound
Park and Suffolk Downs in his district) said there
was little he could do to prod the House into action
on the bill. Responding to DiMasi’s statement,
Travaglini said, “The Senate took the action they
felt was responsible and appropriate at the time;
if the House doesn’t concur, that’s totally within
their rights. There are a lot of things that aren’t
going to get done, and tomorrow’s another day.”
Great Canadian Gaming Corporation, owners of
HTA members Georgian Downs, Flamboro Downs,
Fraser Downs and Sandown Park, reported a
nearly 50% increase in quarterly profits yesterday. The Vancouver-area based company said it
earned C$9 million, or 11 cents per diluted share,
for the three months ended Sept. 30, compared
with a profit of C$6.3 million, or 9 cents per diluted share, a year ago. Quarterly revenue rose
from C$51.1 million to C$75.1 million. Ross
McLeod, GCGC’s chairman and CEO, said, “Our
assessment of the Canadian gaming market is
proving accurate and our strategy for developing
that market continues as planned.”
Perhaps, but Wonderland owner Charles Sarkis
said he would likely have to shut down temporarily,
sending 300 employees onto the street, until a simulcast proposal was passed. HTA director Gary
Piontkowski said Plainridge is prepared to let more
than 100 employees go, “We couldn’t last paying
everyone full boat,” he said.
TWO TRACKS REACH THE END
The end has arrived for two more racetracks.
Geneva Lakes dog track wound up operations Sunday with 550 on hand -- a larger than normal crowd
-- and general manager Milt Roth said, “A lot of
people come to see a train wreck.” Simulcasting
will continue temporarily, but Roth said only about
20 of 185 employees will remain on staff. Developers have expressed interest in the property. In
San Mateo, California, the city council unanimously approved a plan for development that spells
doom and demolition for the 71-year-old track.
BAD NEWS AT POMPANO, ELLIS
Damage from hurricane Wilma at Pompano Park
and from a tornado that tore into Ellis Park in
Henderson, KY, has left racing uncertain at the
two tracks. Pompano’s backstretch was badly damaged and still is without power 16 days later, but
Isle of Capri is shipping in generators and service
should be restored in the next 72 hours. The track
hopes to resume live racing early in December if
all goes well with replacing downed light poles. Ellis
Park may not race its 2006 schedule, accord- i n g
to reports from its owner, Churchill Downs.
Power has been restored, but damage assessment continues.
OAKLAWN AWAITS VOTE
Oaklawn Park in Hot Springs will know before
midnight tonight if it is getting slots. Voters are
deciding today whether “electronic games of skill”
can be added to Oaklawn’s menu.
MOHAWKS WANT MONTICELLO
The St. Regis Mohawks have decided they don’t
want to build at famed Kutsher’s resort, but at
Monticello Raceway, and they claim they have
federal approval and just need Gov. George
Pataki to give them the go ahead.
November 9, 2005
MAGNA SELLS THE MEADOWS
A “WHOA” FOR BETFAIR
Magna Entertainment has sold HTA member The
Meadows to Millennium Gaming Inc., which is
partnering in the deal with what The Deal.com
calls a “Los Angeles-based buyout shop,”
Oaktree Capital Management LLC. Under terms
of the agreement, the news source says Magna
Entertainment will continue to manage the track
for at least five years for the new owners. The
sale is conditional on approval by the Pennsylvania Harness Racing Commission and granting of
a Conditional Category 1 slot license. Magna
also, through its Palm Meadows Estates whollyowned subsidiary, has sold 157 acres of its excess real estate in Palm Beach county, Florida,
to Toll Brothers, a Pennsylvania real estate development company for aggregate consideration
of $51 million in cash. Magna announced it had
cut its third quarter loss to $34.5 million, compared to a loss of $50.3 million in the same quarter last year. Revenue during the period fell
12.4% to $83.2 million.
Betfair’s backdoor approach to Australia betting,
through the nation’s smallest state or territory,
Tasmania, hit a bump in the road yesterday. After
the premier, Paul Lennon, had approved the deal,
the House of Assembly tabled the matter after the
Opposition claimed that Lennon had accepted the
hospitality of Kerry Packer’s PBL publishing and
broadcasting empire, calling his behavior “arrogant and inappropriate.” The charges said Lennon
had been entertained in the PBL marquee while at
the races in Melbourne and had stayed in the
Packer-owned Crown Casino. The House outlined
15 points on probity, including a prohibition for
owners to bet any of their horses or greyhounds to
lose, and a $1 million fine and four years in jail for
cheating. The bill is due for debate later this week.
In Maryland, meanwhile, where Magna controls the
Maryland Jockey Club, the racing commission gave
the company, horsemen and breeders until Dec. 1
to resolve expense-sharing issues, and until Dec.
13 to agree on racing dates for next year. MJC
COO Lou Raffetto said he hoped “we can behave
like grown men and make a deal -- or the commission will step in and make one for us.” Alan Foreman, lawyer for the thoroughbred horsemen, said
his group was ready to finalize an agreement on
dates last Wednesday, but that it didn’t happen “only
when Magna introduced expense sharing” as an
issue.
GURAL WINS BIG IN VOTE
It doesn’t assure how the bankruptcy judge will rule,
but more than 99% of Mid-State Raceway’s u n secured creditors voted for a Jeff Gural
takeover of Vernon Downs, with less than
1% favoring the Eric Spector plan.
A WIN AND A BOOST
In the closest of possible photo finishes,
Oaklawn Jockey Club won public approval yesterday to install more “electronic games of
skill” at the track. Of 9,401 votes cast,
Oaklawn won by 89. In West Memphis, voters
approved expanded electronic gaming for
Southland Greyhound Park with a 64% approval vote. What “electronic games of skill”
means will be determined by the Arkansas Racing Commission.
In Kentucky, the lieutenant governor, Steve
Pence, said that state legislators need to consider legalizing casinos and warned that Ellis
Park may not survive its tornado damage without additional gambling. He told the Louisville
Courier-Journal in an interview initiated by
his office that the General Assembly “needs to
be willing to face the consequences that failing
to expand gambling could have on Kentucky’s
horse industry,” adding, “The consequences
may very well be that we don’t have an Ellis
Park, that we don’t have those jobs, and
that we don’t have tourists coming in.”
November 10, 2005
THIS DECISION CANNOT STAND
TOUGH TALK IN BOSTON
That was the pronouncement of Pennsylvania state
representative Mike Veon of Beaver Falls, who
hosted a meeting of legislative officials in western
Pennsylvania to increase pressure on Gov. Ed
Rendell regarding the state harness racing
commission’s decision not to grant either of two
license applications to build a track in the region.
Massachusetts state representative Brian Wallace
has blasted the state’s Catholic Conference for
sending letters to legislators urging them to vote
against slots for tracks. Wallace told the Boston
Herald, “For an organization which raised millions
of dollars through bingo to now say they are against
gambling is hypocritical and shortsighted.”
HTA, meanwhile, has published the full 87-page
commission report denying the two licenses on the
home page of our Web site, for the entertainment
of our readers.
The commission wrote that “neither applicant’s
project will best serve the interests, convenience
and necessity of the public by developing a firstclass gaming facility with integrated harness racing.” It based its decision on the Bedford Downs
application on financing and alleged past associations with undesirables, and the Centaur Valley
View Downs proposal because it was concerned
about the design of the track, a traffic entrance
and topography of the land, as well as “what appears to be ongoing compliance/regulatory problems with Valley View’s parent corporation.” It did
not, however, find evidence “of any improper or
illegal activity.” Centaur said it spent $3.2 million
to buy 217 acres for its proposed five-eighths mile
track. Rep. Veon said the commission operated
“with a double standard and an undeniable bias
toward eastern Pennsylvania when it comes to
awarding licenses.” He noted that the commission had licensed Chester Downs, which sits on 60
acres, a little more than one-fourth the size of the
Centaur property.
CONGRATULATIONS, ERIC
USTA executive vice president Eric M. Sharbaugh
was married Sunday to his longtime love,
Mary Ann McNally. HTA extends its
warmest good wishes.
MORE ON THE MEADOWS SALE
Millenium Gaming, one of the purchasers of
HTA’s member track The Meadows, is a
Lakewood, Colorado-based partnership of Las
Vegas casino executives William Paulos and
William Wortman. Millenium’s partner in the
$225 million purchase from Magna Entertainment is the Los Angeles investment management firm Oaktree Capital Management, and
The Meadows’ five OTB parlors in the Pittsburgh area are included in the sale. Paulos,
who met with horsemen at The Meadows yesterday, said plans are to build a temporary
60,000-square foot slots facility, which would
be timed as closely as possible with the state’s
granting of a temporary license. Don’t grow
old waiting for that, Mr. Paulos. The commission doesn’t work on a very fast schedule, as
Valley View Downs and Bedford Downs can
testify.
TWO JOBS OPEN IN DELAWARE
The Delaware Harness Racing Commission is seeking an experienced presiding judge and associate
judge. Applicants must have previous harness racing experience of not less than 45 days during 3 of
the past 5 years, or 5 years experience as a driver
who has served as a licensed official for more than 1
year, or 10 years as a trainer who has served as an
official for a year. The job carries competitive salary
and benefits. Applications to Hugh Gallagher, Delaware Harness Racing Commission, 2320 S.
Dupont Highway, Dover, DE 19901, to be received by Nov. 25.
AROUND THE CIRCUIT...
In MICHIGAN, all three Detroit casinos reported
increasing revenues, with a total to date in 2005 of
more than $1.025 billion.
In PENNSYLVANIA, in the wake of the harness
racing commission’s denial of track licenses to
Valley View Downs and Bedford Downs and the
subsequent call by legislators and others for the
removal of the members of the racing commission,
Gov. Ed Rendell issued a statement saying that
he and his staff are reviewing the actions of the
commission. In responding to cries that the commission was showing an “eastern Pennsylvania
bias,” Rendell said that he believes “it is in the
best interest of Pennsylvania that this harness license be awarded to a location in western Pennsylvania.” Also in the Keystone State, public hearings on two proposals to establish thoroughbred
tracks in western Pennsylvania are scheduled for
next Tuesday. Commissioners will first hear from
1935 Inc., which proposes to build a one-mile dirt
track in South Versailles, Pennsylvania. The track,
to be named Oak Park, is being proposed by the
Biros family, who envisions a small track with a
grandstand seating 1,800 customers. The second
proposal comes from businessman Charles Betters, who wants to build a racetrack in the Pittsburgh neighborhood of Hays on a bluff overlooking the Monongahela River. Should Betters’ application for Pittsburgh Palisades Park be approved, the track would be run by Churchill Downs.
In one other note from PENNSYLVANIA, the
Pennsylvania Harness Racing Commission reports
that on Thursday, the state’s Secretary of Agriculture, Dennis Wolff, became the “newest of new”
standardbred owners after agreeing to purchase
the Balanced Image broodmare Yankee Dallas for
$22,000. The mare, in foal to 2004 champion Windsong’s Legacy, had been consigned by Hempt Farms to the Standardbred
November 11, 2005
Horse Sale at Pennsylvania’s Farm Show Complex. Paul Spears bought the mare but later sold
her to Wolff.
The National Cattle Congress closed the Waterloo Greyhound Park in 1996 after experiencing financial difficulties. It’s been trying for several
years to get a license to reopen the Waterloo,
IOWA, track. Now the group is suing the Iowa
Racing and Gaming Commission, alleging it should
get a license under expanded gambling measures
in the state. The lawsuit comes a month after the
Commission voted unanimously to deny the group’s
application to reopen.
Darrell Haire, a leading member of the Jockeys’
Guild, called for the immediate resignation of embattled organization president Wayne Gertmenian,
whom Haire had previously supported. The Guild
board also imposed strict financial controls on the
organization’s officers and staff.
FORMER DRF STAFFER DIES
Art Krawitz, a former advertising executive for the
Daily Racing Form, died Wednesday at his home
in Santa Monica, California. The cause of death
was cancer. Krawitz was 53.
HTA DIRECTORS, ACTION OFFICERS
HTA Directors and Action Officers are reminded
that update information for the 2006 HTA World
Racing Directory currently is being collected.
Forms have been sent to HTA members as well as
racing commissions and other organizations; please
make necessary changes and get them back to
HTA as soon as possible.
In addition, registration materials for the 2006
Harness Racing Congress are in the mail. The
deadline for hotel reservations if December 30,
2005, so make your plans now. Fax registrations to HTA at 520-529-3235, or call 520529-2525.
November 14, 2005
POMPANO SETS REOPENING
IT WILL BE BUFFALO OR NADA
Pompano Park, lashed and closed by Hurricane
Wilma, will resume simulcasting Thursday and
expects to present live racing again starting on
Friday night, Dec. 2. Live matinees with purses,
open to the public without charge, will be held this
coming Saturday and a week later, on Nov. 26, to
help ease the financial strain on idle trainers and
owners. General manager Dick Feinberg, announcing the dates, said, “After assessing all of
the repairs that will be needed to reopen the facility from the damage, we are happy that we should
be able to reopen ahead of schedule.” The second, third and fourth floors of the clubhouse and
grandstand, and the poker room, suffered considerable damage. The tote board and paddock suffered direct hits, and more than 10 barns on the
backstretch will have to be replaced. It appears
that the drivers’ room building, which also houses
the racing secretary’s office and security, judges’
and state offices, will have to be demolished, as
will the outdoor bleacher area. Feinberg said Pompano hoped to be able to race a full schedule when
it reopens Dec. 2, racing Mondays, Wednesdays,
Fridays and Saturdays.
The Appelate Division of the New York State Supreme Court has unanimously upheld a lower court
ruling that says if the Seneca Nation of Indians
wants to build a casino in Erie county, it has to
build in the city of Buffalo. The Buffalo suburb of
Cheektowaga, near the airport, appealed a June
2004 ruling to that effect, but the Supreme Court
said it was the legislature’s intent to have the casino build within the city limits of Buffalo. The
Senecas have acquired nine acres along Michigan avenue in downtown Buffalo and are planning
to locate their casino on the second floor of a rail
terminal there. The Supreme Court, despite its
name, is not the highest tribunal in New York, and
Cheektowaga says it will carry its fight to the Court
of Appeals, which is the ultimate arbiter.
STARTING ALL OVER AGAIN
It is difficult to tell how much money -- private
and public -- has been wasted by the decision of
the Pennsylvania Harness Racing Commission
not to license either applicant for the state’s final harness track, but it is in the millions. Neither applicant -- the Shick family or Centaur of
Indiana -- has been daunted, Carmen Shick is
protesting that Bedford was judged “for transactions that occurred 20 years ago and for which
none of the principals had any responsibility,”
and vowing to beef up financial backing, and
Centaur is saying that topography and entrance plans that didn’t please the three
commissioners are “issues that are easily resolved.”
AN AUSSIE BETFAIR INQUIRY
The English betting exchange Betfair still is
not licensed in the state of Victoria in Australia, but that did not prevent one $30,000 bet
on the favorite to lose in a race at Sandown
there Saturday. The horse, Vengo, finished
ninth, as a $31 outsider won. In addition to
the single $30,000 bet, another $40,000 was
bet on the favorite to lose. The chief steward
took the word of the jockey that the horse did
not race well in front, and “hit a brick wall at
the top of the straight (stretch)” as a result.
Because Betfair is not licensed, the stewards
were unable to ascertain the identity of the
Betfair account holder. The jockey said, “All
we can put down to is that the horse is better
off ridden quieter than today.” Okay, if you
say so.
In this country, the Jockeys’ Guild’s Senate
meets tomorrow to discuss ways of amending
its bylaws as a prelude to an attempt to remove its embattled president, L. Wayne
Gertmenian, who vows to fight the move.
November 15, 2005
KY BACKS OFF ON MEDICATION
CHREBET GETS A “Q” LICENSE
It’s better than it was, but not as good as it could
have been. That’s the verdict on Kentucky’s new
medication rules, which -- like the Old Gray Mare -ain’t what they used to be, but unlike Lady Suffolk,
the mare of that song, they are better than they once
were. The Kentucky Horse Racing Authority unanimously approved changes yesterday limiting raceday
medication to furosemide and two of four permitted
“adjunct bleeder medications.” That’s better than
unregulated furosemide and corticosteroids and assorted painkillers, as before. The new rules will allow some anti-ulcer medications, some topical liniments, antiseptics, ointments, leg paints and antibiotics, and 24-hour restrictions on alkalizing substances that could alter serum or plasma and high
bicarbonate readings. The final result is a compromise, the best the new Authority could get, and it
hopefully now will pass legislative muster without
further messing around.
Wayne Chrebet, the New York Jets wide receiver
whose sixth concussion has ended his NFL career, has received a qualifying license from the
United States Trotting Association that will permit him to drive in qualifiers at the Meadowlands
and Freehold Raceway. Chrebet owns Double
Down Stables, with 11 horses trained by his good
friend Kevin McDermott, who says Chrebet enjoys driving as a hobby at the moment “and is
good at it.” The “Q” license is a first step toward acquiring a provisional license after winning
10 races in one year’s time, and that “P” license,
when obtained, would enable him to drive at Freehold. Once he completed 25 satisfactory parimutuel starts, he could apply for an “A” license
and after receiving one could drive at the Meadowlands. That could be the goal for the high
achiever, who lives in Garfield, NJ, not far from
the Big M.
ONE TRACK FOR NJ RUNNERS?
That’s what senior VP for racing Dennis Dowd
told the New York Daily News would be best for
New Jersey racing, and it seems clear he was
talking about Monmouth Park. It also is clear
that the Meadowlands should remain harness
racing’s preeminent track, which it is not in thoroughbred racing. Dowd told the paper he
thought that racing runners at more than one
track in New Jersey was “quite frankly, 1976
thinking,” dating back to the Meadowlands’ first
meeting. “Our costs are escalating and our
handle is going down on the thoroughbred meet,”
Dowd said. “It’s something we’ve obviously
got to look at, but it couldn’t happen before
Monmouth hosts the Breeders’ Cup in 2007.”
It was interesting to read how the Thoroughbred Times handled the story. After reporting
Dowd’s remarks, the magazine said, “The
Meadowlands also conducts harness racing.” They sure do, TT, the biggest and
best in this country.
GERTMENIAN AT RISK TODAY
The senate of the Jockeys’ Guild is meeting today, and could vote to change the Guild’s bylaws to allow it to elect a new board of directors,
which in turn could act on the reign of L. Wayne
Gertmenian, president of the Guild for the last
four years. The tide began to turn against
Gertmenian after a House of Representatives’
subcommittee questioned financial operations of
the Guild, including Gertmenian’s yearly salary
of $165,000 and another $335,000 he received
annually through his Matrix Capital Associates,
which he owns and operates. Business First also
reports that Congressional records indicate the
jockeys themselves were in arrears by more
than $700,000 in premiums paid to the Guild
health plan. Posted on a Congressional Web site,
the information said that of 320 covered jockeys, 251 -- or 78% -- were delinquent in paying
monthly premiums, with 50 owing more
than $5,000.
FORM BUYS SPORTS EYE
In what could be a significant development for
harness racing, Daily Racing Form has acquired
the publishing assets of Sports Eye, the New
York-based publisher of a number of sports publications. Brent Diamond, CEO of the Form,
said of the acquisition, “Sports Eye has done a
tremendous job producing publications for the
casual and new horseplayer, which is an area
that we haven’t focused on with the Daily Racing Form products. We believe there is an opportunity to provide information to the full range
of horseplayers and this will allow us to do so.
We’re very excited about expanding our current
business with these products. This acquisition
also provides us with the opportunity to extend
our franchise into sports publishing, which is
something we planned when we acquired Daily
Racing Form as our platform asset in May,
2004.” Harness racing, in this corner’s opinion,
never gave Sports Eye the support it deserved
from the day it was founded back in 1964. The
original founders appeared at an HTA meeting
in Scottsdale, Arizona that year and outlined
their plans, but fought an uphill battle for support from that time on. Attacks on management
policies weakened the publication’s case under
one editor, but under Daily Racing Form control and with the Form’s plans to expand the
reach of the publication, Sports Eye is likely to
deserve industry support.
AROUND THE CIRCUIT......
L. Wayne Gertmenian is gone from the JOCKEYS’ GUILD. The Guild’s senate changed their
bylaws yesterday, appointed a new board of directors, and fired Gertmenian for alleged mismanagement. Darrell Haire, a guild regional representative for the last six years and a protege oft h e
former national manager, John Giovanni,
was named to head the organization on a
temporary basis.
November 16, 2005
PENN NATIONAL’S Hollywood Slots in Bangor,
Maine, are off to a bangup start. After $1.76 million was bet on opening day, the crowds continued to pour in, and more than $8 million was
pumped into the machines during the week that
ended Sunday. The Maine Gambling Control
Board reported that Penn National’s share from
the first 10 days of operation was $435,000. In
other Penn National news, Richard Schnaars,
general manager of the company’s Penn National
Racetrack, resigned after six years in that role.
BARRY SCHWARTZ, former chairman of the
New York Racing Association, has resigned from
the NYRA board, saying, “My views on racing in
New York are very different from the views of
the current management.” NYRA, meanwhile,
was told by state regulators not to sell $2 million
in racing art at Sotheby’s next month because the
paintings are owned by New York state.
KEEP, the Kentucky Equine Education Project,
has proposed a racino plan that would provide
money to each of the state’s 120 counties based
on population, and would provide thoroughbred
racing with 14.65% of casino revenue and other
breeds, including harness racing, 1%.
QUEBEC’s government has delayed its decision
on racing once again, this time postponing a verdict on which one of five proposals on the
province’s four tracks will be accepted.
DEATHS: Wayne Shumate, former member of
the Kentucky Harness Racing Commission and
a past president of the Association of Racing Commissioners, at 71. Tom Ivers, author of nine books
on training race horses, all espousing interval
training, at 61.
RECOVERING: Race-caller Roger Huston, at
home after suffering a torn esophagus.
November 17, 2005
AN EXCEPTIONAL HTA ‘CLASS’
AROUND THE TRACKS.....
Harness Tracks of America’s 2005-6 scholarship
winners, individually and as a group, represent
some of the strongest academic achievers in the
32-year history of the annual awards. Two of the
winners, Amy Beth Todd and Ryan John O’Mara,
each awarded $10,000 scholarships, are straight
A students in tough academic settings. Ms. Todd
is a senior at Cornell Veterinary College, ranking
third in a class of 85, and Dr. Nena J. Winand,
assistant professor of pathology in the department
of molecular medicine, wrote HTA, “I anticipate
that Amy will be a leader in the field of equine internal medicine. She is poised to make great contributions to the performance horse industry.”
Ryan, injured in a stable accident as a child, was
inspired during his recovery to become a surgeon,
and remains on course, maintaining an all-A record
in pre-med at the University of Florida, aiming for
Harvard Medical School. Ms. Todd is the daughter of trainer Art Giambrone and his wife Mona, a
teacher. O’Mara is the son of Debbie Garofalo,
a respiratory therapist, and trainer Mark
O’Mara.
POMPANO PARK reopened for simulcasting today, its first day of operation after Hurricane
Wilma. Eighteen different signals were being offered as the day’s simulcasting fare, and things
were lively in the racing secretary’s office as well.
Non-betting matinee races with purses were scheduled for Saturday to help idle horsemen, and when
the entry box was opened, slips for 299 horses
spilled out.
Rounding out the $50,000 in scholarships are four
other outstanding students, each receiving $7,500
grants. They are Jennifer Marie Ashby of
Maquoketa, Iowa, an accounting major at the University of Northern Iowa, daughter of trainer Brad
Ashby and his wife Laurie, a pharmacy technician;
John Bradbury, St-Hyacinthe, Quebec, a trainer
and senior in the veterinary school at the University of Montreal; Michael John Latessa of
Amherst, Ohio, member of a longtime Ohio harness racing family, a second-year student at Ohio
State’s Veterinary School; and Jo Ellen Proctor of
Chesapeake Beach, MD, executive assistant to
Cloverleaf Enterprises chief executive Tom
Chuckas at Rosecroft Raceway, pursuing
an associate’s degree in Human Services
at the College of Southern Maryland, with
a perfect 4.0 grade average.
PRAIRIE MEADOWS and its harness horsemen
were meeting today in an effort to close a $700,000
purse gap in negotiations. The horsemen were
expected to ask the racing commission to order
arbitration. Harness racing currently is to get $1.8
million out of a purse pool of $18.4 million.
VERNON DOWNS’ parent, Mid-State Raceway,
wants Eric Spector and his Oneida Entertainment
partner out of the picture, and have asked a federal judge to toss out Spector’s plan to take over
Vernon. No more than 4% of any category of creditor approved Spector’s plan, the rest opting for
that offered by Jeff Gural.
JUDGE: REVOKE THEIR LICENSE
Abner Mikva currently is an administrative law
judge in Chicago, but his resume includes five
terms as a U.S. Congressman, former White
House Counsel, and chief judge of the U.S. Court
of Appeals for the District of Columbia circuit.
Given that background, he used pretty strong language this week when he recommended that the
Illinois Gaming Board revoke the gambling license of the Emerald Casino, saying its leader
Kevin Flynn “flat-out lied and others dissembled”
when it first attempted to move its gambling operation to Rosemont, near O’Hare airport, in the
late 1990s. The gaming board is expected to
vote to revoke the license when it meets in
December.
INTERNET BETS ON 60 MINCBS
turns its “60 Minutes” spotlight on Internet
UTES
betting this Sunday night at 7 p.m. eastern standard time, and the coverage is not likely to be
pretty. Lesley Stahl handles the segment, and you
can get an idea of what it will be like from a pretelecast blurb from CBS, saying, “Legalizing
Internet gambling would bring billions in U.S. tax
dollars, but critics say it cannot be regulated and
can corrupt youth....The federal government says
Internet gambling is 100% illegal, and people who
want to keep it that way believe that the sites -legal in more and more foreign countries -- can
never really be effectively regulated.” If you can’t
catch the show, you can view clips online at
CBS.com.
MORE NON-EXPERT ADVICE
Gov. George Pataki’s racing oversight panel in
New York is telling the financially embattled New
York Racing Association how to dig itself out of
the hole it is in. As might be expected, it does so
without much racing expertise. Chairwoman
Carole Stone’s solution includes raising the cost
of the product, deferring dues to the National Thoroughbred Racing Association for a year, and settling pending lawsuits “in order to achieve a timely
cash settlement.” While all of this is going on, the
state of New York has ordered NYRA not to try to
sell 80 acres of valuable land or 19 pieces of equine
artwork, claiming both are the property of the state
and not NYRA’s to sell.
MEADOWLANDS REOPENS
The Big M, back in harness with its fall meeting,
opens with eliminations tonight and tomorrow night
for next week’s $4.3 million Breeders Crown championships for 2- and 3-year-old trotters and pacers, colts and fillies. The races play a major role
in seasonal championships. The Meadowlands will race from now through the
end of the year.
November 18, 2005
WHAT A SORRY MESS THIS IS
Chris McCarron wasn’t kidding when he told a
congressional committee that hiring Wayne
Gertmenian as president of the Jockeys’ Guild was
“the worst mistake of my life.” Here’s where it
has wound up:
After Gertmenian was fired Tuesday, his temporary replacement, Darrell Haire, and seven riders
including Laffit Pincay Jr., Alex Solis and Kent
Desormeaux, got a locksmith to let them in the
Guild offices in Monrovia, California, to access
the Guild’s books. While there, Gertmenian and
the Guild’s COO, Albert Fiss, showed up, and a
scuffle broke out in which Gertmenian reportedly
pushed Haire to the floor. Monrovia police were
called, and Guild counsel Barry Broad settled the
matter by phone.
Yesterday the Guild reported that while the Guild’s
new board was giving Gertmenian the boot Tuesday, he was writing and cashing checks totaling
$217,000 to himself, his Matrix Capital Associates,
and Fiss. The Guild on Nov. 8 had invoked controls on all checks over $200 unless approved by
treasurer Jeff Johnston, and attorney Broad says,
“It is the view of the Guild that the funds were
stolen and that a crime has occurred.” Monrovia
police are investigating.
In Washington yesterday, the jockeys’ insurance
mess surfaced, and U.S. Representative Ed
Whitfield raised the specter of federal legislation
over racing, or at least that portion of it. “A lot of
interest groups do not want their turf touched,”
Whitfield told Associated Press, “but there are
strong arguments for some uniformity and for some
federal oversight and involvement.” Happily, Rep.
Joe Barton, chairman of the full Energy and Commerce Committee, said he thought voluntary action would be preferable to “last resort” legislation.
November 21, 2005
GUILD SUED FOR $10 MILLION
LESS RACES, HIGHER PURSES
Their woes never seem to end. After having the
exiled Wayne Gertmenian write himself and his
colleague Albert Fiss checks for $217,000 last
week after being fired by the Jockeys’ Guild, the
Guild, Gertmenian and Fiss now are being sued
for $10 million by jockey Gary Birzer, who is paralyzed from the waist down after an accident at
Mountaineer Race Track last year. The 30-yearold disabled jock, who says he was told that he
would be a poster boy in a campaign to get tracks
to pay for jocks’ insurance, is accusing the Guild,
Gertmenian and Fiss of fraud and breach of fiduciary duty. The jocks’ attorney, Barry Broad,
whose phone call to Monrovia, CA, police last week
resolved a brawl involving Gertmenian and his
successor, Darrell Haire, and other jocks including Lafit Pincay Jr., Alex Solis and Kent
Desormeaux, says Birzer’s suit for $10 million is
$10 million more than the Guild has. Daily Racing Form’s Matt Hegarty, writing about a second
hearing in Congress on jocks’ insurance, says it
drew far less interest from legislators than the first
meeting, and Hegarty called the possibility of federal legislation “remote.”
That’s the order of the day in Iowa, where the
Racing and Gaming Commission unanimously
approved reducing racing days at HTA member Prairie Meadows Racetrack and Casino
for all three breeds racing there. The commission cut thoroughbred and quarter horse dates
from 95 to 81, and the abbreviated harness
meeting from 17 days to 14. Purses will go up
$1.3 million over the projected $18.3 million
that Prairie Meadows is required to pay under the 2004 law that fuels purses with a mandated share of casino revenue. The harness
meeting will pay out $630,000 in the two
weeks of racing, with another $1.3 million set
aside for county fair racing in Iowa. Veteran
executive director Jack Ketterer announced
the commission plan after the track and harness horsemen reached an impasse. “We’re
trying to be regulators, not the manager of the
racetrack,” Ketterer said. “I feel like we were
put in a situation where we had to make a decision.”
NO INJUNCTION IN FLORIDA
A federal appeals court in Florida has denied six
dog tracks an immediate injunction to stop the state
from making changes in gaming rules that ended
chances of high stakes poker tournaments for the
moment. The request denial means Florida’s 17
dog and horse tracks will have to wait at least until next month, when an appeals court in Tallahassee is expected to make a final ruling. The tracks
challenged the $45 limit on entry fees for poker
tournaments a year and a half ago. An administrative law judge agreed with the tracks that the
state did not have the authority to set poker tournament rules. The Division of Pari-Mutuel
Wagering appealed and lost in federal
court.
MILLSON LEAVES WINDSOR
John Millson, longtime president of Windsor Raceway, has resigned, effective February 7 of next
year. Patrick M. Soulliere, who has held management positions in accounting and finance at the
raceway, will replace Millson the following day.
ANYONE HAVE SOME ASPIRIN?
If you’re going to make a mistake, you might as
well make it a big one. That’s what the direct marketing vendor for Harrah’s Joliet Casino in Illinois did, when instead of the customary $15 and
$20 betting coupons the casino distributes, the vendor sent out coupons good for $525. How many
went out? Try 11,000. Harrah’s Illinois regional
president, Joe Domenico, said the company will
honor the coupons, after the Illinois Gaming
Board was deluged by coupon holders’ complaints.
November 22, 2005
McERLEAN JOINS USTA BOARD
MORE ABOUT MILLENIUM
At the annual membership meeting of District 12
of the United States Trotting Association, held in
Freehold, NJ, HTA board chairman and former
president Chris McErlean was elected a USTA
director. McErlean fills the spot formerly held by
Bruce Garland.
A few more details about the purchase of The
Meadows from Magna Entertainment for $225
million have surfaced in Las Vegas, including the
not-surprising news that the entire deal is contingent on the new owners getting a slots license.
Those new owners, Bill Paulos and Bill Wortman,
operate as Millenium Gaming, and own the Cannery Casino and operate the Rampart Casino
there. They and private investor Oaktree Capital
Management out of Los Angeles agreed to purchase 100% of Magna’s interest in the track, but
have Magna’s present management team run the
track for five years. When slots come to Pennsylvania -- and that does not appear imminent -- The
Meadows would wind up with 3,000 slots, and
could extend that number to 5,000 under present
state law. The Millenium-Oaktree partnership
hopes to obtain a temporary license and open a
casino as early as the third quarter of 2007, but
it apparently has not dealt with the Pennsylvania Harness Racing Commission, which does not
do things quickly. It is now 16 months since
governor Ed Rendell signed the slots bill in the
state, and that long or longer since the commission began studying two applications for the final harness racing license before deciding that
it liked neither one. Paulos acknowledged as
much when he said, “It’s been a very slow-moving process,” noting that each part of the state
wants to get their fair share. He claimed that
“there are things happening behind the scenes,
and the state is still taking applications.” Paulos
says Millenium won’t close on the deal until it
is licensed, and consequently is not fronting a
lot of money. He called the Pittsburgh area a
major feeder market “with great demographics.” Although Harrah’s already is in Pennsylvania, and the Venetian and Planet Hollywood
are hoping to be with free standing casinos, Boyd
Gaming says it looked at The Meadows and
passed.
AUSSIE STAR SERIOUSLY HURT
Ted Demmler, the first Australasian harness racing driver to win 3,000 races and winner of the 1987
World Driving Championship in Germany, has been
injured seriously in a racing accident at the
Warragul ‘country track’ in Australia. A four-time
Australian champion, he was listed in serious condition with a broken bone in his neck, a punctured
lung and several broken ribs, according to a report in The Harness Edge.
DOGS FACE MUSIC ONCE AGAIN
Greyhound racing in Massachusetts, which survived a 51-49 per cent vote for survival five years
ago, may have to fight another attack next year.
The Humane Society of the United States, the
Massachusetts Society for the Prevention of Cruelty to Animals, the greyhound protection group
GREY2K, and the Animal Rescue League of Boston have joined forces and told the Boston Globe
they have collected almost twice as many signatures as the 65,825 needed to put a measure to
ban the sport on the ballot in November, 2006. The
chairwoman of the ballot committee formed by the
anti-dog racing groups says they have collected
more than 110,000 signatures since Sept. 21, when
the drive started. The petition is due to be submitted to the municipal clerk’s office in Boston tomorrow evening. As the proposal now reads, it
would phase out greyhound racing in Massachusetts entirely by Jan. 1, 2008. Gary
Guccione, executive director of the National Greyhound Assn., called the group’s
claims of cruelty “ludicrous.”
GUESS WE WERE THE LUCKY ONES
We thought we had problems at the HTA art auction, when a wild man showed up bidding until
we discovered Amex disavowed him. Fortunately
he never laid a hand on any of the art, and we
got Humpty Dumpty put back together again.
That pales in comparison with the problems the
New York Racing Association is encountering in
trying to sell its art to stay afloat. The 19 NYRA
works, including old masters, are still scheduled
to be sold a week from tomorrow at Sotheby’s,
but it is questionable if that auction house will
proceed after receiving a copy of a letter sent
by New York Racing and Wagering Board chairman Mike Hoblock to NYRA president Charles
Hayward. Hoblock reportedly told Hayward the
sale was “unauthorized” and threatened legal
action against NYRA and Sotheby’s if the auction was held. New York’s recently appointed
Racing Oversight Board, which speaks for governor George Pataki, followed suit. Sotheby’s
has issued a $50 catalog for the sale, which can
be
viewed
on
their
Web
site
www.Sothebys.com. The price estimates range
from $10,000 to $400,000 for John Frederick
Herring’s painting of The Flying Dutchman, although a lone harness racing piece is estimated
at $5,000 to $7,000. There are nine works by
famed American equine artist Henry Stull, a star
of the late 1890s. If you bid and don’t get any
of these, we’ll be happy to oblige you with HTA
art for far lower prices, and with no court action involved, as it appears it might be in New
York. If HTA track participation in its own art
auctions is any indication, NYRA had better not
count on that source for its hoped-for bailout.
At last report, Sotheby’s still plans on going
ahead with the auction. A spokesman, Matthew Weigman, said, “The sale hasn’t been canceled. There were issues that were
raised. Sotheby’s is waiting for these issues to be resolved.”
November 23, 2005
SOME FUN FOR LIBERTY MEDIA
Liberty Media, John Malone’s huge media empire that includes The Discovery Channel, The
Shopping Network and QVC, has agreed to pay
some $195 million for a 51% share in Fun Technologies, a Toronto-based online game developer.
Fun was developed three years ago by Lorne
Abony and Andrew Rivkin, two co-founders of
CyrptoLogic Inc., a software company. It runs an
interactive television game-show service for the
U.S. cable TV channel GSN, and it now employs
200 people. Fun’s games, unlike online poker and
other interactive games that are the mainstay of
Cryptologic’s business, are not considered online
gambling. One of its biggest hits has been Lingo,
an interactive, real-time online spelling game show.
Abony, Fun’s CEO, says the company is the market leader in two of the fastest growing sectors of
online gaming, skill gaming and fantasy sports.
The Liberty investment gives Fun a market value
of some $480 million.
8 BREEDERS CROWNS AT BIG M
The Meadowlands takes over harness racing’s
spotlight again Saturday night, when it presents
eight Breeders Crown championships for 2- and
3-year-olds of both gaits and sexes. The purses
for the eight races total $4.3 million, and as usual
some season’s champions+hips could be clinched
or lost in the big show. HTA racing secretaries,
incidentally, will be polled early next week for their
choices for their champions, since time is needed
to notify owners in time to obtain room reservations for the Night of Stars Wednesday, Feb.6, at
Bellagio in Las Vegas. The gala awards dinner
will be part of the quadrennial Racing Congress,
and HTA executives are reminded that room reservations at our special convention rate will remain open only through Dec. 31.
The HTA staff is being given a holiday breather.
Happy Thanksgiving. We’ll see you Monday.
November 28, 2005
BETFAIR GETS ITS FOOTHOLD
THE CHIEF VET SPEAKS OUT
It took a marathon session of the Legislative Council -- the upper house of the Tasmanian Parliament
-- to get it done, but the English betting exchange
Betfair, backed by the premier Paul Lennon and
the multi billions of Kerry Packer, Australia’s richest man, won its foothold into Australia last week.
The Council approved Betfair after amendments
to ensure, as far as possible with a program where
you can bet on horses to lose, that the system would
be monitored for its social and economic impact.
Other Australian racing interests were dismayed,
but their pleas to defeat the bill were rejected by
the Legislative Council, and Betfair plans to begin Australia operations by January 1 in a joint
venture in Hobart, the capital of Tasmania, with
Packer’s media giant, Publishing and Broadcasting Ltd.
Using some very strong language, the chief veterinarian in Kentucky, Dr. Gary Wilson, lashed
out at the state’s racing authority last week, calling current conditions “appalling” and saying the
funding and staffing crisis is so severe it puts the
welfare of horses racing in the state at risk. Wilson apparently reached his boiling point after a
thoroughbred died of heat stroke at Turfway Park
in September, when a horse ambulance had no
medication or water to treat the animal. He wrote
a letter asking, “Is the administration and Kentucky Horse Racing Authority committed to developing a program that sets industry standards,
or are they interested in just getting by?”
LaJuana Wilcher, whose Environmental and Public Protection Cabinet oversees racing in Kentucky, and the woman who recommended Wilson
for his job last summer, was not happy. She said
Wilson might not appreciate the complicated process of state government, and called her staff “the
most competent anywhere.” She said Kentucky
employs more regulatory vets than ever. Jim
Gallagher, executive director of the Kentucky
Horse Racing Authority, said of Wilson’s remarks, “A lot of this is being blown a little bit out
of proportion.”
WILL MIKE STAY OR LEAVE?
Nothing happens in racing in New York unless
George Pataki says it will, so the odds are that
Racing and Wagering Board chairman Mike
Hoblock will wind up somewhere else. Gov.
Pataki apparently wants another friend of Senate majority leader Joe Bruno -- businessman
John Simoni, 74 -- to replace Hoblock, but according to the Albany Times-Union’s capitol
bureau writer James M. Odato, Hoblock is not
sure he wants to leave. He may have to, for
in addition to Simoni it appears Pataki would
like Bernadette Castro, now Parks Commissioner, to replace Hoblock as chair of the racing board as well as having Simoni serve.
Racing commissioners in New York receive
$101,600 a year, with the chair receiving
$120,800. Board member Cheryl Buley will
survive the changes, and is expected to be
reappointed to another six-year term.
Hoblock has been chairman for almost
nine years, and his term does not expire until 2008.
VERY BAD NEWS FROM BOSTON
Apparently taking his cue from the parent New York
Times, the sports editor of the Boston Globe, Joe
Sullivan, announced yesterday that the Globe would
no longer publish entries and results from three of
four tracks in Massachusetts -- HTA’s member
Plainridge Racecourse and Raynham and Wonderland dog tracks -- and Rockingham Park in neighboring New Hampshire. Sullivan said, “Interest in
dog racing and harness racing is no longer great
enough to warrant daily entries and results in the
sports pages.” HTA has invited Sullivan to explain
how he measures that interest at the Racing
Congress.
November 29, 2005
SUPREME COURT ENDS NY TRY
POMPANO BACK, BEATS WILMA
The persistent effort of attorney Cornelius Murray
of Albany and Saratoga County Chamber of Commerce executive director Joseph Dalton to have expansion of gambling in New York state declared
unconstitutional ended yesterday, when the United
States Supreme Court refused to hear the challenge.
The high court’s action was a victory for governor
George Pataki and his colleague Senate president
Joe Bruno. The court, by its action, ended the effort to prevent more Indian tribes from opening casinos in the state. Murray, who led the legal challenge, acknowledged defeat, saying, “The Supreme
Court’s refusal to hear this case effectively concludes this aspect of the war against the spread of
commercialized gambling in this state. There’s nowhere else to go.” Shares in Empire Resorts, which
hopes to have a St. Regis Mohawk tribe casino at
its Monticello Raceway, rose 69 cents, or 13.3 percent, to $5.89 in afternoon trading on the Nasdaq
after the Court’s announcement. Empire stock has
traded between $3.25 and $12.21 over the past year,
and is down 47% since the year began.
It may not be nice to fool with Mother Nature, but
Pompano Park has tried it and survived. The track
reopens for live racing Friday, recovered and
cleaned up in the aftermath of Hurricane Wilma
that devastated its stable area and other areas of
the track. The tote system and teletimer infield
board have been repaired, and last minute repairs
are being made on the sound system in the backstretch. Lighting was checked out Monday night
and general manager Dick Feinberg reported tests
worked fine. The Top of the Park restaurant on
the 6th floor will reopen Friday along with the rest
of the track, but the children’s playground area is
closed until new fencing arrives. The 4th floor box
seats and Players’ Room Buffet will not be
ready for the reopening, and the 2nd floor leading to the track apron will be open air temporarily, its glass-etched doors having been destroyed by Wilma. Two 100-stall makeshift
barns also are being constructed until new permanent barns, destroyed in the hurricane, can
be rebuilt.
In another New York development, the Albany Times-Union reports that “the Pataki
adminstration on Monday continued to push
for the nomination of Parks Commissioner
Bernadette Castro as the new chairwoman
of the Racing and Wagering Board, but the
Senate seems to be resisting.” One possible
reason is that Joe Bruno apparently wants
his friend John B. Simoni, 74, to get the
chairmanship. It now appears that Mike
Hoblock may have lost his bid to remain on
the board, and may be leaving soon. If he
does, and either Castro or Simoni gets to
chair the board, it would mean that the chairmanship of the racing board of one of
America’s most important racing
states would have no racing experience at all.
Also in Florida, at the Embassy Suites in
Deerfield Beach, the nation’s harness racing
secretaries begin their three days of deliberations on Thursday. The gathering, held since
1966, is used to set stakes schedules for the
following year and coordinate dates to minimize
conflicts as far as possible.
HOW ABOUT A HELPING HAND?
HTA’s editorial coordinator Jessica Carner is
deep in work compiling our 2006 World Racing
Directory, but could use a little more cooperation from our member tracks. You all have the
forms, so please take a few minutes to fill them
out and return them to Jess. We take great
pride in the Directory, and want to have the
new edition for the Racing Congress, so
your help will be appreciated.
November 30, 2005
ARE YOU SURE NOW, GEORGE?
BRUNO’S SON QUITS LOBBYING
If our reports of the doings of Gov. George
Pataki and his New York Assembly on the issue
of the New York Racing and Wagering Board
have seemed contradictory and confused, take
solace in the fact that Albany itself was hopelessly confused. What Pataki and Senate president Joe Bruno wanted and what they got apparently are two different things, but what they
got made a lot more sense than what they
wanted. Bruno wanted a buddy, John Simoni, to
be put on the board and made chairman, and was
quoted as saying, “We have some confusion” at
the end of a long day of futile hustling. Pataki
wanted Bernadette Castro, who once sold convertible daybeds as her racing qualifications.
Neither, it turns out, was appointed. Present
board member Cheryl Buley, who although a
purely political appointee when she was named
to the board to replace the veteran racing man
Bennett Liebman five years ago, did her homework well, and at least knows which end the hay
goes in and which end it comes out, now switches
jobs with Mike Hoblock, chairman for the last
seven years. Pataki spokesman Saleem
Cheeks, who was left to handle this mess with
the media, reported that “Mr. Hoblock has indicated to us his desire to leave the Board and
we expect him to resign in the very near future.”
That is not what Hoblock had to say about his
demotion, however. He said he had been replaced as chairman but would stay on the board,
calling the situation “circumstances beyond my
control.” Unlike most racing commissioners,
Hoblock does not serve at the pleasure of the
governor, and apparently is not interested in
pleasing Pataki at the moment. Hoblock’s term
does not expire until 2008, and we now will have
to see whether he or Saleem Cheeks is right
about his plans. If he stays, the New
York board will enter 2006 one member
short, as it has been since 2002.
If you want to be a lobbyist when you grow up,
it doesn’t hurt to have your father be the president of the state Senate. That has been the
situation in New York in recent years, where
Kenneth Bruno, son of the legislature’s most
powerful man, has operated as a successful lobbyist. His clients have included Madison
Square Garden and Magna Entertainment, each
of which, according to Associated Press, paid
him $15,000 a month for his services. The
younger Bruno had been district attorney of
Rensselaer county, where he and his father
live. He resigned that job in May of 2003 to
join one of Albany’s most successful lobbying
firms, Wilson, Elser, Moskowitz, Edelman and
Dicker, and he stayed there until March of this
year, when he left to open his own lobbying company, Albany Strategies. That move created
controversy and criticism of the father-son relationship, and Kenneth now says he plans to
return to practicing law.
SHAWN’S MOM LOSES AGAIN
Victoria Scott, mother of the well known promoter Shawn Scott, has lost for a third time in
her bid to open a gambling den in Alaska. The
lieutenant governor of Alaska, Loren Leman,
denied certification for a ballot initiative that
would have created a gambling monopoly for Ms.
Scott in Anchorage. She was the main sponsor
of the bill, and although Leman’s action marks
the third time this year the proposal has been
rejected, backers say they plan to try again
within two months.
C’MON, GIVE JESS A HAND
If you would like your 2006 HTA World Racing
Directory early next year, complete your information forms (they’re somewhere on your desk) and
return them to Jess Carner so she can complete her compilation of the valuable guide.
December 1, 2005
YOUBET BUYING UNITED TOTE
THEY’RE STILL AT IT IN FLORIDA
Youbet.com announced today it was buying United
Tote for $49 million, and expected to close on the
acquisition within the next 60 days. United,
founded in 1959, supplies tote systems that handle
more than $7 billion a year, 90% of that amount in
North America, where its more than 90 customers
include the New York Racing Association and
Churchill Downs. Youbet chairman, president and
CEO Charles Champion called the purchase “an
excellent strategic and financial opportunity for
Youbet,” which earlier this year acquired the
Curacao rebate betting service International Racing Group, and more recently was licensed by the
Oregon Racing Commission to operate a betting
hub through that state.
The Miami Herald reports today that a state representative who was part of a $48,180 Canadian
junket paid by Gulfstream Park in July has been
advised not to cooperate with a Senate investigation. The paper says the representative,
Frank Farkas, who made the trip with three state
senators, including two who sit on the committee that regulates parimutels, is refusing to cooperate with an investigation ordered by the
president of the Senate. His refusal is backed
by the Speaker of the House, Allan Bense, who
said through a spokesman that Farkas “is advised to maintain the integrity of the Legislature and independence of the two chambers.”
Nothing changes under the sun.
TODAY’S TRIVIA QUESTION
Is Philadelphia big enough to hold the egos of both
Donald Trump and Pat Croce? The two announced a partnership yesterday, with local investors, which will seek one of Pennsylvania’s 14
slot licenses in the city of brotherly love. Croce,
former president of the Philadelphia 76ers, was
called “a great guy with great vision” by Trump,
and Croce, for his part of the lovefest, said, “I’m
psyched to work with the Donald and his new executive team.” Croce, a native Philadelphian, has
rounded up restaurateur Pete Ciarrocchi, owner
of the Chickie and Pete’s restaurant chain in
Philadelphia, and three members of the musical
group Boyz II Men, as partners. Slots are still a
year or so away in Pennsylvania, but at least the
Gaming Control Board got seven of them yesterday from suppliers to play with in Harrisburg until the long wait ends. The Allegheny Institute for
Public Policy, meanwhile, says Pennsylvania
should have auctioned off its licenses, rather than
selling them for $50 million each. It said the state
left $2.1 billion on the table, basing its
numbers on the $225 million sale of The
Meadows and the $280 million sale of
Pocono Downs.
In what could be better Florida news, the SunSentinel reports that Gov. Jeb Bush and Republican legislative leaders have decided not to
press their plan to push for repeal of the citizen
initiative that cleared the way for slots at Pompano Park and Broward county’s three other
pari-mutuel operations. Rather than trying to
persuade the legislature during next week’s special session to approve a repeal plan, Republican leaders now think it is better to delay that
debate until spring. The leader of the anti-slot
movement, Rep. Randy Johnson, had introduced
a bill to repeal the slots during the special session, but the Sun-Sentinel says he now acknowledges that without support of the GOP leadership he has no chance of getting that done.
TRY HTA; WE’LL SELL OUR ART
And do it legally, we might add. Sotheby’s announced yesterday that it has withdrawn the 19
paintings the New York Racing Assn. had hoped
to sell after new Racing and Wagering Board chairwoman Cheryl Buley said, “We remain
unconvinced that this is an appropriate way to
address NYRA’s fiscal situation.”
December 2, 2005
POMPANO BACK, POST-WILMA
SCREWING IN A LIGHTBULB
Pompano Park reopens for live racing tonight, six
weeks after being devastated by Hurricane Wilma.
The poker room opened at noon, first post is 7:25,
and admission and general parking are free. The
track will race Wednesdays, Fridays and Saturdays and will be open seven days a week for simulcasting.
How many racing organizations does it take to
screw in a lightbulb? At least three or more, if
you’re talking about lighting up racing security.
There is, of course, the existing combination of
Thoroughbred Racing Protective Bureau and Standardbred Investigative Services. Then there is
the Association of Racing Commissioners, which
would like to get in on the act. And there is the
NTRA, which hopes to finally get around to its
Office of Wagering Integrity, which stumbled when
the redhead first appointed to run it quit in short
order, and Rudy Giuliani stepped in for a million
or so to consult and guide, and recommended
NTRA go forward with that idea. Racing loves
this multiple approach to problems. It has two
separate organizations of racing commissioners,
so why not three security organizations? There is
comfort in numbers.
SPECTOR STILL IN HUNT
A federal judge has ruled, over objections of MidState Raceway, the parent of Vernon Downs, that
Oneida Entertainment can stay in the race for the
beleaguered central New York harness track.
Oneida, which is backed by a Connecticut asset
management company and Eric Spector, who
briefly was the track’s CEO. received only minimal votes in a poll of shareholders, but the judge
said it would be inappropriate to dismiss their reorganization plans before a hearing on Dec. 16.
The judge presumably will choose a winner in the
competition on that date.
In another development involving Jeff Gural and
Tioga Park, which would be tied into Vernon as a
circuit under Gural’s plan, his Southern Tier Acquisition and TrackPower closed on their financing deal with Nevada Gold & Casinos, Inc. to form
American Racing and Entertainment. The two
companies each contributed $1.5 million to American Racing for membership interests in that group,
which nominally will own and operate the track and
racino at Tioga in Nichols, New York. Nevada Gold
will own a 50% interest, Southern Tier Acquisition a 25% share, and TrackPower 25%. Nevada
Gold, under the agreement, will contribute $10
million in new equity to American Racing, and
American Racing is seeking senior note financing
for $70 million to complete the buildout of Tioga
Downs and Vernon Downs. If they don’t
get Vernon, they will continue plans with
Tioga on a reduced scale of financing.
GERTMENIAN THE LANDLORD
In the aftermath of the downfall of Wayne
Gertmenian as leader of the Jockeys’ Guild, it turns
out that under the contract now abrogated the Guild
has been paying $4,000 a month to Gertmenian to
rent their own offices and an adjacent office for
Gertmenian’s one-man company, Matrix Capital
Corporation. The Guild’s lawyer, Barry Broad,
called this “oppressive,” and the Guild has moved
from Monrovia to Duarte, rented a 2,000-square
foot office instead of Gertmenian’s 1,800-square
feet, and costs $1,706 plus utilities instead of
$4,000 a month. See what a PhD can do for you?
SHAPIRO NEW CAL CHAIRMAN
Commissioner Richard Shapiro has been elected
by his colleagues to take over as chairman of the
California Horse Racing Board in 2006. It was
his second vote of confidence in three months. On
Sept. 1, he was confirmed by the California Senate by a 39-0 vote.
December 5, 2005
WILL SUN RISE IN FLORIDA?
DECISION WEEK IN NY, TOO
The Florida legislature reconvenes today in day
one of their five-day special session, and slots in
Broward county will be one of their principal concerns. No one really knows what will happen between today and Friday, and even Allan Solomon,
executive vice president and general counsel of
Isle of Capri Casinos, which owns and operates
HTA member Pompano Park, isn’t certain. He
told the South Florida Sun-Sentinel, “I’m not
sure I can make the best wager on how all this
gets done.” Leaders in the House released a 44page bill last Friday that would allow for Vegasstyle slots, but limits them to no more than 1,000
per venue, with a 55% flat tax, proceeds that
would by law be spent on education by the state.
The Senate is considering a 45% tax rate and
possible sliding scale, which could help tracks by
providing a greater share in the first few years of
operation. The House wants a minimum age of
21, with 16 hours of play a day, year-round, and
85% returned to players. The St. Petersburg
Times is predicting legislative approval. No one
is talking much about the threat of enabling legislation being passed this week and then having
it nullified by a statewide repeal vote next November, something Gov. Jeb Bush and the leader
of both houses support. When Dan Adkins of Hollywood Greyhounds was asked about it, he said,
“The only way I can address that is that I’m in a
race with blinkers on. I’ll deal with the next race
after this one’s resolved.” Bush claims voters in
Florida didn’t know that in voting to allow slots in
Broward county they also were opening the door
to expansion at seven Indian casinos in that
county and four others. The proposed tax rate,
whether House or Senate version or a compromise, would be the highest in the country other
than Rhode Island, which has a 61% rate, according to a Florida legislative staff report, that also says seven states allowing slots average 35% in taxes.
Florida is not the only racing state with much
hanging in the balance this week. In New
York, the New York Racing Association should
know by the end of the week if it will have to
file for Chapter 11 bankruptcy to continue
operating. President Charles Hayward
showed up in the Aqueduct press box Saturday and told writers that if the association did
not get help from the state this week -- something he will appeal for tomorrow before
Carole Stone, chairwoman of the oversight
panel appointed by Gov. George Pataki -- it
was likely NYRA would file for bankruptcy
protection this month. Hayward said filing
would “give us a little room to breathe, and I
think in terms of running the races, it should
just be business as usual.” Breathing time was
not on the mind of Senate majority leader Joe
Bruno, however. He called for the NYRA franchise to be awarded in the next six months,
rather than waiting for it to expire at the end
of 2007. “Let’s do it sooner rather than later,”
he told Tom Precious of Blood-Horse.
AND A DEADLINE IN MD, TOO
Actually, the deadline in Maryland was missed.
The racing commission had given the Maryland
Jockey Club until last Thursday to reach agreement with horsemen, but that date passed without
success. Now the issue hopefully can be resolved
before the commission’s next meeting a week from
tomorrow. Expense-sharing reportedly is the major sticking point, with tracks wanting to be reimbursed for expenses in producing the show.
ARNEAULT, BLACK WANT MTR
Ted Arneault, CEO of MTR Gaming Group, and
executive vice president Robert Blatt have extended a takeover offer of some $258.4 million to
shareholders of MTR Gaming Group. MTR
shares rose $1.84, or 23%, closing at $9.73
on the Nasdaq.
December 6, 2005
IS THIS JUST POSTURING?
OIL AND STEROIDS DON’T MIX
That was the question asked yesterday by Lee
Woodard, bankruptcy lawyer for Mid-State Raceway, the parent of Vernon Downs, after the
horsemen’s lawyer, Joe Faraldo, asked a bankruptcy court judge to have Vernon reimburse them
$9.6 million that Faraldo says the horsemen have
lost since the track closed 16 months ago.
Woodard said he was “shocked and dismayed” by
the move, and added that “I’m hopeful that this is
nothing more than just posturing.” Faraldo said it
was done “to protect the horsemen.” Given the
precarious status of Vernon, and the money Jeff
Gural and his associates have dumped into it in
the hope of reviving the track, a second question
besides Woodard’s might be if the horsemen really want Vernon to return to racing. Certainly
horsemen have lost money by Vernon being closed,
but so has Mid-State Raceway, which is bankrupt.
The track has not been licensed in New York, its
majority shareholder Shawn Scott is not licensed
in New York, and the overwhelming majority of
shareholders voted to have the Gural group take
over. Scott’s principal lawyer, Deborah DeitschPerez, has written a 42-page brief blasting the New
York Racing and Wagering Board for not licensing Scott, but board chairwoman Cheryl Buley said
the board has no selective bias against Scott. “It’s
not the board’s responsibility to make Shawn Scott
licensable. That’s Shawn Scott’s responsibility, and
he failed to meet those standards.” The board’s
hearing officer, Russell Baller, told the board that
Scott had lied on his application and submitted
fraudulent documents. Scott’s lawyer called them
“minor errors.”
The leading trainer in the Emirates Racing Association for the last two seasons has been suspended for four months after four of his seven winners tested positive for the steroid bodenone.
BloodHorse.com reports that Mazin Al Kurdi, who
trains some 120 horses, mostly for top owner
Sheikh Rashid, will miss the remainder of the UAE
racing season, which includes the Dubai International Racing Carnival that starts on Jan. 19. Unless the suspension is reversed on appeal, Kurdi
is down for presenting horses to race with banned
substances in their systems. We are not alone.
55%: FLORIDA HOUSE FIRM
The Florida House is holding firm on its demand
for a 55% tax on Broward county slots. A
frustrated state senator Steve Geller said
of the House stance, “We can’t negotiate
with people who aren’t negotiating.”
WE’RE NOT KIDDING, FOLKS
If you plan to race at the Racing Congress at
Bellagio in February, you had better get your stall
application in now. You have only the rest of December in which to make room reservations with
Cindy Knox in the HTA office. After the beginning of January our special room rate will not apply, and you will be on your own both as to rate
and availability.
Also, we’re again asking our action officers to respond to Jessica Carner’s request for Directory
information. We take great pride in this unique
book, which we consider the most comprehensive
directory in racing, but we need your cooperation
to have it produced in time for the Congress. You
have the forms. Please fill them out and return to
Jess. Or request new ones if you have lost those
sent to you.
RACING SYMPOSIUM BEGINS
The annual University of Arizona Race Track Industry Program symposium gets underway in Tucson today. Harness folks spotted early include
Chris McErlean of the Meadowlands, Ed Ryan of
Scioto Downs, Conrad Sobkowiak of Pocono
Downs, and Eric Sharbaugh, executive vice
president of the USTA. We’ll bring you daily
highlights here.
December 7, 2005
HALLELUJAH! RCI, NAPRA JOIN
DRUGS, THIS TIME IN INDIANA
It took 8 years, but the absurdity of two separate
associations of racing commissioners ended yesterday with the announcement that Racing Commissioners International and the North American
Pari-Mutuel Regulators Association had voted
unanimously to merge. Although the official
merger date is January 1, the two groups said they
have begun working as one immediately. Paul
Bowlinger, executive director of NAPRA, will become executive vice president of RCI. The split
between the two organizations occurred over salary issues and other matters, and has taken this
long to heal. Ed Martin, president of RCI, who
seeks to fold racing security into the organization,
said the merger will help that effort. First, however, RCI will have to figure out how to technologically keep all jurisdictions informed immediately of suspensions and penalties, something it
does not do currently.
Illegal medication has raised its ugly head again
to plague racing, this time in Indiana. A county
prosecutor has said the Indiana Horse Racing
Commission waited for nearly two years to do anything about vials of suspicious drugs that were
seized at HTA member Hoosier Park. The incident involved two women vets, one of whom turned
against another in her employ. The second was
arrested and charged with unregistered dispensing of a controlled substance, Dormosedan, a tranquilizer. The second vet was cleared, according
to her attorney. Commission executive director
Joe Gorajec said some of the medication was
seized at Hoosier in November, 2003, but said
the investigation was still ongoing. Hoosier Park
president and general manager Rick Moore expressed full confidence in the commission, saying he was confident it would take swift action if
the county prosecutor’s allegations proved valid.
Horsemen contacted in Indiana sided with the
second vet, some with uncomplimentary comments on the first.
AND THEN THERE IS FLORIDA
If there was good news on the racing commission
front, there was none to report yet in Florida, where
the House and Senate are toiling in special session to resolve the slots in Broward county issue.
There has been no compromise so far. Here is
how the plans differ:
HOUSE - Tax rate 55%, 1,000 slots at each facility, 16 hours of operation a day.
SENATE - Tax rate a sliding scale, starting at 35%
up to $125 million, 40% between $125 and $250
million, 45% between $250 and $500 million, and
capping at 55% on slots revenue over $500 million, with 2,000 slots at each facility and 16 hours
of operation a day. One senator, Republican Bill
Posey, obviously understands the issue. “If we
limit the number of machines and set too high a
tax,” he said, “all we’ll do is kill what little golden
goose we have, if we overregulate.” Regardless of outcome, slots are nine months
away, according to the Miami Herald.
HELP MAY BE ON WAY IN NY
There may be a softening of position on the part
of the rulers of New York concerning the New York
Racing Association and its financial woes. Following a three-hour meeting yesterday, a spokesman for Gov. George Pataki said the governor has
not ruled out allowing NYRA to sell 80 parcels of
land near Aqueduct, or defer $32 million in tax and
fee payments for the year, which is NYRA’s preferred solution to its cash-flow problems. NYRA
president Charles Hayward said other new and
different options are being pursued, but would not
give details. He called the session between himself, other NYRA representatives and the
governor’s NYRA Oversight Board “productive,
with no conclusions.” He said NYRA either
needed to sell the land or find a “commensurate solution.”
December 8, 2005
A FLORIDA SLOTS DEAL?
SOLUTIONS MAKE PROBLEMS
Progress in Florida, with caution. House and Senate leaders, meeting in a five-day special session,
struck a deal yesterday to bring slots to HTA member Pompano Park and three other Broward
county racing operations. The compromise calls
for a 50% tax rate on net profits and 1,500 machines for each location, down from the 55% the
House wanted on the tax rate and down from the
2,000 machines and sliding tax rate the Senate
proposed. The machines could operate 16 hours
a day, and each track would pay a $3 million license fee for regulation. The House and Senate
are expected to vote today on the matter, and
one opponent of gaming, Rep. Marco Rubio, said,
“I met with the Senate president Wednesday, and
we have an agreement that I think both chambers can support.” And then he added that the
deal could fall apart if too many changes are made
when the House Fiscal Council discusses the
agreement today. “You just never know what
happens overnight,” Rubio said. The Senate’s
lead negotiator, Ken Pruitt, also sounded optimistic, saying, “We’re very close to a product
everybody can sign off on.” What happens next
November, when Gov. Jeb Bush wants to repeal
the whole slots deal, is another matter, but the
Florida tracks are playing things one move at a
time. Their next decision is whether a 50% tax
rate, if that deal holds, is viable.
While Martin deserves loud plaudits for his
merger success, he faces an interesting problem in another major move he announced yesterday in Tucson. In what he called “a dramatic
move to fill a long discussed void and vulnerability for the U.S. racing industry,” he said his
board had voted to partner with technology suppliers for independent monitoring systems to provide a national monitoring service and database
for pari-mutuel wagering. The new entity will
be known as RCI Integrity Services, Inc. and
will be a strategic partnership between RCI, ESI
Integrity Inc. and Monitor Technology. Under
the plan, monitoring services will begin in the
second quarter of 2006 with services to be provided to wagering system operators and regulators. Martin said, “It’s time to stop talking and
start doing. We have the talent, we have the
expertise, and we have a desire to do something
everyone in the racing industry has said needs
to be done and do it right.” That’s a noble sentiment, but not answered is the question if RCI
has the money, or where it will get it.
MARTIN MAN OF THE YEAR?
Ed Martin, who left the New York Racing and
Wagering Board to run Racing Commissioners
International, has put Humpty Dumpty back together again. Martin, working cooperatively with
his North American Pari-Mutuel Regulators Assn.
(NAPRA) colleagues, announced in Tucson this
week that after eight years of dual operation the
two commissioners’ organizations are
merging. In a year without too many scintillating performances, this one deserves
loud applause.
There also is the question of what happens with
the integrity plans of the NTRA, which also has
talked about a national integrity program for several years. One solution might be to merge those
two plans, which could end the NTRA’s search
and provide funding at the same time, but no
mention of that was made in RCI’s release.
GREAT! WHO BELLS THE CAT?
During yesterday’s Symposium sessions Greg
Avioli, exec VP of NTRA, addressing the issue of
the World Trade Organization April 3 deadline for
the U.S. to comply with WTO commitments, said
the best long term solution would be for the U.S.
to authorize and regulate Internet gaming. Obviously the best solution. Now to bell that
damn cat.
December 9, 2005
FLORIDA SLOTS, SORT OF
BAD NEWS FOR THE JOCKS
The Florida House passed Broward county’s slot
bill yesterday, 110-8, and the Senate followed suit,
approving the compromise measure 33-7. Gov.
Jeb Bush says he will sign the bill, reluctantly. “It’s
not going to feel good,” he said. “I just don’t think
this is right for our state....The fact that there’s
going to be a bunch of slot machines in Broward
county doesn’t warm my heart.” In fact, it chills
his heart enough that he still plans to seek repeal
of the voter’s wishes next November, and one
strong supporter of the measure, who knows racing better than all of his colleagues in the Florida
Senate, is alarmed. Senator Steven Geller, founder
and president of the National Council of Legislators from Gaming States, said he is concerned that
the bill contains a tax rate so high -- 50% -- that
“we’re getting something up with the intent of failure.” Jim Horne, lobbyist for HTA member Pompano Park, said, “We’re not jumping for joy over
it, but we’re glad to get a bill. Certainly the rate of
tax, the amount of machines (1,500) has a dramatic
effect on our plans. All four venues are probably
going to have to go back and revisit what their
plans were and see to what extent they have to be
modified to fit this kind of environment.”
L. Wayne Gertmenian is gone, but so, apparently,
are much of the funds of the Jockeys’ Guild following his departure. The Guild released results
of a preliminary financial review yesterday that
said Gertmenin and former COO Albert Fiss appeared to have “inappropriately” used $2.1 million in Guild funds to cover daily operating costs
and pay health insurance premiums, and that
$442,000 earmarked for individual savings accounts apparently had been used to cover operating costs and medical expenses. The review,
according to the Los Angeles Times, “suggested
an apparent pattern of increasing fiscal neglect
extending for at least the past 18 months.” A
health fund account that is supposed to hold
enough money to cover two and one-half months
of claims is nearly depleted, the story said, with
the Oct. 30 balance of $6,029, down from
$860,000 in April of 2004. Some utility bills and
other obligations had not been paid in six
months, and various bank statements had not
been reconciled in several months, according to the
report. Janet Patton, business writer for the Lexington Herald-Leader in Kentucky, reported in her
story that more than $1.1 million that should have
been set aside to cover health claims is missing.
Patton wrote that although the Guild had moved
quickly to stop payment on checks written the day
before Gertmenian and Fiss were ousted, it had not
moved quickly enough. Four checks totaling
$104,000 made out to Gertmenian’s Matrix Capital were stopped, but one made out for $69,000 to
Gertmenian and another for $44,000 to Fiss had
cleared the bank. The FBI now is investigating the
discrepancies.
MORE ON RCI INTEGRITY IDEA
Yesterday, reporting on the announcement of Racing Commissioners International’s formation of
RCI Integrity Services, we asked where the group
would get the money. Later in the day we found
out. Youbet.com and Scientific Games Corp. are
going to foot the bill, at least initially. In lauding
RCI president Ed Martin for merging RCI and
NAPRA, we failed to do justice to NAPRA president Paul Bowlinger, who becomes executive VP
of the new unified RCI. And behind the entire
package and security effort are the major contributions toward reconciliation and rebuilding by former RCI president Lonnie
Powell.
MTR BUYS JACKSON RACEWAY
MTR Gaming, through its Jackson Racing Inc.
subsidiary, has bought 90% of Jackson Raceway from Dan Rakietin and his mother
Nan.
FLORIDA: SIX MONTHS, MAYBE
The Florida Division of Pari-Mutuel Wagering has
six months to produce rules for slots in Broward
county, now that the legislature has finally signed
off on the bill and Gov. Jeb Bush says he will sign
it, reluctantly. But at least one authority on the
subject is skeptical. Florida senator Steve Geller,
founder and president of the National Council of
Legislators from Gaming States, says he expects
Bush to make the rule-making process as difficult as possible for the pari-mutuel operations.
“The governor’s already said he’d try to throw
up all the regulatory roadblocks he can,” Geller
told the South Florida Sun-Sentinel. A spokesman for Bush told the paper that Bush would
not be involved in preparation of the rules. Bush
himself said, “I’d rather be creating jobs in ways
people’s lives are improved, but the voters did
vote for this.” Those voters apparently think
gambling is one of the pleasures of life and does
improve it in a country where grimness has become commonplace. Dan Adkins of Hollywood
Greyhound, who has been speaking for the
Broward tracks through all this mess, is an optimist. “I’m not concerned,” he says. “I think
there will be a good-faith effort.” We hope
you’re right, Doug.
The entire Florida racing bill is online on the
home page of our HTA Web site, for those who
may wish to download and peruse it.
IN MAINE, VINDICATION
It is rare when a newspaper gives gambling the
benefit of the doubt, but the Bangor News did
over the weekend when it acknowledged that
the promises of slots as a possible salvation
for Maine’s harness racing industry and other
social, cultural and educational needs are being fulfilled. The paper said that official figures show that in the first five weeks of
operation, the slots in Bangor have generated $775,000 for the 10 beneficiaries
spelled out in the slots law.
December 12, 2005
Under the Maine formula, Hollywood Slots -- the
name Penn National Gaming gave its operation -pays 1% of total slots wagering to the state. Eightnine percent is returned to players. Of the remaining 10%, 39% goes to the state for distribution
among the 10 beneficiaries, 10% goes to supplement purses, and 3% goes to the Maine Sire
Stakes. The executive director of the Maine Harness Racing Commission, Henry Jackson, says he
expects purses will rise from $1.3 million in 2004
to $2.1 million next year.
FAIL SAFES ARE JUST THAT
Or at least that’s what they are supposed to be.
The New York Times has a big story today on
Yonkers Raceway continuing to receive payments
from New York City OTB even though there is
no live racing at Yonkers. OTB chairman David
Cornstein called it a disgrace. Bob Galterio, Yonkers’ general manager, saw it a bit differently.
“I’m not arguing that it’s right or wrong,” he said.
“I’m just arguing that they have a responsibility
to pay.” The original legislation that created the
situation was a fail safe arrangement under which
OTB was given the right to broadcast fewer races
from Yonkers and Monticello but in return for
bringing in simulcast signals from thoroughbred
tracks around the country, but continue to pay
the tracks the same amount as previously. In a
rare display of courage on the part of a legislature on a gambling matter, state senator Nicholas A. Spano defended his actions against critics.
Spano noted that Yonkers Raceway was one of
the city’s largest employers, and said, “I will continue to work as hard as I can to make sure the
track remains economically viable. I am proud
of the fact that they think I am the protector of
Yonkers Raceway, because in fact I am.” Man
of the Year material.
If you haven’t already sent your room reservations for the Bellagio, or your HTA Directory information, please do so.
December 13, 2005
DAYS OF DECISION AT VERNON
ELECTRONIC PROP BETS
The first of two days of hearings got underway
today on the fate of Vernon Downs, with the second scheduled for Friday. The bankruptcy judge
who has been handling the contentious issue will
listen to more testimony today, then again on Friday, and presumably will announce then who gets
the track, the Jeff Gural group or one fronted by
Eric Spector of California, who ran Vernon for a
short time earlier in the proceedings. The judge
must determine, under federal bankruptcy law,
that the successful applicant meets 13 criteria,
including having creditors support the plan, good
faith intent, and assurances that the plan won’t
lead to another bankruptcy. Gural, who received
heavy creditor support, wants to link Vernon and
his fledgling Tioga Downs meeting as a central
New York racing circuit.
Racing hasn’t adopted much in the way of proposition betting, but Las Vegas is moving forward
with technology geared to that end. The Wall
Street Journal reported last Friday on a system
called Rapid Bet Live, which allows gamblers
to bet on individual plays throughout a game.
As the Journal’s Peter Sanders put it, “Gamblers watching an Indianapolis Colts game in
Vegas may have a hunch that, on the next play,
Peyton Manning will throw a long bomb to receiver Marvin Harrison for a touchdown. But
right now there is nothing they can do about it - casino sports books don’t accept bets on individual plays.” The Palms Hotel and Casino says
it is in final negotiations to test Rapid Bet Live’s
touch screen kiosks which will enable them to
bet on scoring, punts, whatever. A company
called Progressive Gaming International has
developed the system, one more move linking
Vegas with technology.
PR THAT GARNERS SPACE
Luc Ouellette is one of harness racing’s greatest
drivers, but he is far more than that. He consistently has championed charitable causes, working with various groups and on his own. This
week his latest initiative gained exceptionally
positive space for harness racing in the toughto-crack Toronto Star. Ouellette rounded up
Woodbine’s leading drivers, including Chris
Christoforou, Rick Zeron and Paul MacDonnell,
then added Jody Jamieson, Phil Hudon and red
hot Mark MacDonald to the mix, getting them
to donate their driving fees for one night to the
Jim Proudfoot corner of the newspaper’s Santa
Claus Fund, which for 100 years has been providing gift boxes to kids at Christmas. Some
45,000 will be handed out this year. Proudfoot
was a widely read sports columnist for the Star,
and today’s story on contributions to his fund
included not only the Woodbine drivers but a
list of other contributors from the world
of Woodbine Racing. Good stuff, the
best possible kind of PR.
GOODRICH LEAVES ARLINGTON
Cliff Goodrich has announced he is leaving his
presidency of Arlington Park to take it easy and
spend a little happy time with his family.
Goodrich, 62, told Daily Racing Form, “Sometimes, it got to the point where I really felt I had
done as much as I could do. We had a brand new
granddaughter, and I asked, ‘Do I really need to
work this hard?’ He answered no, and ends an
active racing management career that included
19 years at Santa Anita Park as president and
COO and 3 years at Arlington.
D-DAY IN MARYLAND TODAY
The Maryland Racing Commission meets today,
a week after its deadline demand on an agreement
between management and horsemen passed without resolution. Commissioner John Franzone said
the commission could “beat up an industry that
already is in dire straits,” but he preferred
reasoning.
December 14, 2005
MORE FOOT-DRAGGING IN KY
SWEDEN, TEXAS, YOU NAME IT
Kentucky’s thoroughbred horsemen and their veterinarians were still battling reform and progress
yesterday, but thanks to a legislator who recognized their ploy the commonwealth’s new drug rules
were passed by the legislature’s Administrative
Regulation Review Subcommittee and moves on
to House and Senate committees. The horsemen
and vets and their lawyer tried to block passage,
but a motion by Rep. Jim Bruce, a Hopkinsville
Democrat, brought quick passage. Bruce said he
made the motion because he believes the opponents of the regulation are a vocal minority who
wouldn’t accept anything. The horsemen’s and
vets’ attorney called the victory “just round one,”
indicating the fight is not over. In a strange development, the executive director of the Racing Authority, Jim Gallagher, apparently made an offer
to put off consideration of the rule for a month, a
move that happily Rep. Bruce’s successful motion
made moot. Gallagher called the passage “a good
day for Kentucky,” but still looming are three
banamine positives during the fall Grand Circuit
meeting that have drawn no action for 60 days. A
positive sign on the legislation was a statement by
Darrell Haire, interim national manager of the
Jockeys’ Guild, who supported the new rules, saying some pre-race medications can mask physical
problems in horses and jockeys “need to know what
they have beneath them.”
Breaking of rules, or legislation to prevent it, is in
the holiday air. In Texas, the racing commission
has adopted a milkshake rule, setting 38 millimoles
of carbon dioxide per liter of plasma as the cutoff
point. Over that would be a violation which would
bring a $1,000 fine and 30-day suspension for the
first offense, a $2,500 fine and 90-day suspension
for a second, and a $5,000 fine and one-year suspension for a third. All of the penalties include
loss of purse money, with testing random, pre or
post race. The rule will become effective next
month.
ANABOLIC STEROIDS IN NEWS
The American Association of Equine Practitioners’ Task Force on Medication has recommended the banning of anabolic steroids in
horses being sold at public auctions. The recommendation provides that in addition, no stimulants, muscle relaxants or diuretics should be
allowed at any detectable level in sale horses,
with sales companies to be the “principle
enforcers.” More will be heard about
steroids in coming months.
In Sweden, the Swedish Trotting Association confiscated the license of trainer Michael Demmers,
conditioner of the $800,000 winner Vasterbo Daylight, according to The Harness Edge. Demmers
has been fined more than $45,000 for false breeding reports, and a Ms. Kathrin Biderman has been
fined $30,000 for signing false mating certificates.
Demmers plans to appeal, saying he doesn’t think
his training license should be linked to his breeding operations.
COMPROMISE IN MARYLAND
Thoroughbred horsemen and management have
reached an accord in Maryland, with both sides
giving a little in a compromise that headed off
commission action. Magna’s Maryland Jockey
Club will conduct 180 days of racing next year
and keep stable areas open at Pimlico, Laurel
and Bowie for all of 2006. According to the Washington Post, there still is disagreement on how
much horsemen, including breeders, should contribute to the cost of satellite and simulcast operations. Magna has submitted a proposal to the
horsemen’s leadership, and the board of the
Maryland Thoroughbred Horsemen’s Assn. is
expected to review and respond by next week.
With a tentative agreement in place, the commission approved Jan. 1 - April 16 winter
dates for Laurel.
QUEBEC PRIVATIZES TRACKS
The long-expected hammer fell yesterday in Quebec, where the Minister of Finance, Michal Audet,
announced the transfer of management of the
province’s four racetracks to private ownership.
Winner in the competition is Attractions
Hippiques Quebec, owned by Senator Paul
Massicotte, currently attending the World Trade
Organization summit meeting in Hong Kong.
Under the transfer, $100 million will be spent on
relocating Hippodrome de Montreal from its
present in-city location to the northern suburban
ring surrounding Montreal. Purses will receive
$153 million over five years, raising them from
$17 million to $25 million in the first year of the
agreement, and increasing them each year after
that to $35 million in the fifth year. Another $5
million a year will be allocated to promotion and
marketing of the racing industry in the province.
No mention of the fate of SONACC, which has
run racing in the province, was made, but
SONACC’s chairman, Gilles Dubreuil, a member of the independent committee that worked
out the transition plan, said, “Thanks to today’s
decision, the entire horse racing industry, which
employs 3,000 people in Quebec’s regions, will
benefit from the injection of these new investments.” The Minister of Finance added that the
agreement met the government’s objective of
doing everything possible to secure the long-term
viability of the racing industry in Quebec, and the
infusion of purse money could signal a new era
for harness racing in the province. The minister,
Michal Audet, will determine the role of
SONACC in the reorganization. Massicotte, a
member of the Liberal Party of Canada, is in addition to his senatorial duties the president and
CEO of Alexis Nihon Real Estate Investment
Trust and a board member of a number of civic
groups in the Montreal area. An accountant, he was lead director of the Board of
Directors of the Bank of Canada.
December 15, 2005
He also has been a major real estate developer in
Montreal. A rival bidder for the tracks of Quebec, Remstar corporation, filed for the tracks of
Quebec, Remstar corporation, filed for a temporary injunction blocking the government’s announcement, but a Quebec Superior Court judge
denied that request. Andre Marier, a former president of Blue Bonnets, the predecessor of Hippodrome de Montreal, is associated with the Remstar
group.
DISSENT REARS ITS UGLY HEAD
More troubles all over the map:
In Massachusetts, Raynham/Taunton dog track
owner George Carney stormed out of the State
House summit meeting with other track owners, just
weeks before a looming legislative deadline that
threatens Massachusetts racing. Carney wants
expanded simulcasting at his Brockton Fair. The
three other track owners in the state want a roll
over of the current law. Plainridge president and
HTA director Gary Piontkowski said of Carney’s
carnage, “What you have here is a single
person...stopping a billion dollar industry.”
In Illinois, the Illinois Harness Horsemen’s Association and Balmoral and Maywood Park management have been meeting on contract negotiations,
but despite exchange of various proposals an impasse is reported and no compromise has been
reached.
In Utica, New York, a federal bankruptcy judge has
scheduled final hearings tomorrow morning at 9 a.m.
to determine whether Jeff Gural and his Nevada
Gold backers of Vernon Downs Acquisition, or Eric
Spector’s Oneida Entertainment and his Plainfield
Asset Management of Connecticut, get Vernon
Downs. Mid-State Raceway, the track’s parent,
paid $107,000 in county taxes today, forestalling possible foreclosure proceedings.
HTA’S NOVA WINNERS OF 2005
The racing secretaries of Harness Tracks of
America’s 41 members have chosen their 12 divisional champions of 2005, whose owners will
be presented with bronze Novas at Bellagio in
Las Vegas during the Racing Congress on
Wednesday, Feb. 8. The winners are:
2-year-old pacing colt: Jereme’s Jet, winner of
$1,039,376 and 6 of 7 starts, owned by Jolene
Leahy’s Genesis Racing Stable, Plainfield, IL.
2-year-old pacing filly: Darlin’s Delight, winner
of $560,404 and 9 races, and first or second in
all 14 starts, owned by Joseph Parisi’s White
Birch Farm, Allentown, NJ.
3-year-old pacing colt: Rocknroll Hanover, winner of $2,223,257 and 12 races, and first, second or third in all 18 starts, owned by Jeffrey S.
Snyder, New York City; Phyllis Campbell’s
Lothlorien Equestrian Centre, Mississauga,
Ontario; and William J. Perretti, Cream Ridge,
NJ.
3-year-old pacing filly: Cabrini Hanover, winner of $917,440 and 8 races, and first, second or
third in all 18 starts, owned by David S. Willmot,
King City, Ontario, and Bob M. Anderson, St.
Thomas, Ontario.
Older male pacer: Boulder Creek, winner of
$978,645 and first, second or third in 15 of 25
starts, owned by Clifford D. Siegel, Staten Island, NY; Lee S. Wasserman, Brooklyn, NY;
and John A. Fodera, Staten Island, NY.
Pacing mare: Loyal Opposition, winner of
$673,525 and 14 of 20 races, owned by
Daniel Waxman, Ancaster, Ontario.
December 16, 2005
2-year-old trotting colt: Chocolatier, winner of
$508,250 and 8 of 10 races, owned by Doug and
Ada Jean Ackerman’s Doug Ackerman Stables,
LaPorte, IN.
2-year-old trotting filly: Passionate Glide, winner of $638,947 and first or second in 10 of 11
races, owned by George Segal’s Brittany Farms,
Versailles, KY.
3-year-old trotting colt: Vivid Photo, winner of
$1,481,020 and first or second in 21 of 25 races,
owned by Roger R. Hammer, Bedford, PA, and
Todd M. Schadel, Gratz, PA.
3-year-old trotting filly: Blur, winner of $867,453
and 7 of 12 races, owned by Barry Goldstein,
Hewlett, NY.
Older male trotter: Hellava Hush, winner of
$522,720 and first, second or third in 15 of 21
races, owned by Joseph Chnapko, Livingston,
NJ.
Trotting mare: Peaceful Way, winner of
$660,804 and 9 of 10 races, owned by Joseph
and Barbara Myers, Jamesville, VA; Sam A.
Goldband, Toronto, Ontario; Marvin Katz,
Toronto, Ontario; Al Libfeld, Pickering, Ontario;
Linda Ann Worrell, Warrington, PA; David S.
Tingley, Guelph, Ontario; and Angie M. Stiller,
Arva, Ontario.
ARE YOU ON THIS LIST?
Cindy Knox has no room reservations for Bellagio
for the following tracks: Batavia, Buffalo, Cal
Expo, Hippodrome de Montreal, Lebanon, New
York City OTB, Northville, Northville Racing
Corp., Plainridge, Red Mile, Rockingham,
Rosecroft, Saratoga, Suffolk OTB and Western
Fair. Happy New Year, but after Jan. 1 our
special rate expires.
DO THEY KNOW, OR CARE?
The U.S. Harness Writers have announced some
recipients of their Dan Patch awards over the
weekend, and their winners include Mr.
Muscleman, trained by Noel Daley, who is under
six-month suspension for the use of illegal medication. HTA will not honor the horse or its owner
or trainer with its Nova award, pursuant to our association policy of not presenting awards to owners of horses trained by trainers under suspension, or by their second trainers acting as “suspension” trainers. To do so and talk or write about
integrity seems an anomaly.
LAYOFFS IN MASSACHUSETTS?
Internecine warfare in Massachusetts, with one
track operator endangering all others with his refusal to reason or negotiate, has brought threats
of layoffs for hundreds of track employees next
month. In the face of what the Boston Herald
calls “a fierce battle over an extension of lucrative simulcasting laws,” Wonderland Dog Track
and Suffolk Downs are preparing letters, to be
sent out after Christmas, informing employees
of imminent layoffs unless the simulcasting dispute is resolved. It does not appear to be an idle
threat or bluff. HTA’s Plainridge Racecourse is
holding off on letters, but said it would have to
pink slip 130 employees if a simulcast deal cannot be cut. The current law expires Dec. 31, and
its renewal has been stymied by George Carney,
owner of the Raynham/Taunton dog track, who
claims the current simulcasting laws are unfair
to his track. Carney calls his obstinance “a matter of principle” and complains that the other
three track owners “are trying to make it look
like I am the bad guy.” He is able to forestall
renewal of the simulcasting laws because of legislative rules that require unanimous consent for any bill to be passed in “informal session.” The legislature does not
reconvene officially until January.
December 19, 2005
Plainridge, Suffolk Downs and Wonderland called
on the legislature Friday to correct the situation,
calling Carney’s move “special interest legislation” that would unfairly impact their three tracks.
Their letter to legislators noted that their tracks
“already are facing financial difficulties from declining revenues as a result of billions of Massachusetts dollars that are annually flooding over the
border to Connecticut, Rhode Island and now
Maine.” The House Ways and Means Committee endorsed an extension of the current simulcasting legislation Dec. 14, but legislation introduced by Rep. David Flynn on Carney’s behalf
threw a monkey wrench into the proceedings.
President Richard Dalton of Wonderland said,
“It’s outrageous that one man could cavalierly put
thousands of people out of work.”
NO DECISION YET ON VERNON
After a day of tough questioning of prospective
owner Jeff Gural by a lawyer for a rival group, the
hearing on the future of Vernon Downs was continued until after Christmas, resuming Wednesday,
Dec. 28. Gural acknowledged to the lawyer that he
did not have $70 million to reopen Vernon and open
his Tioga Park, and get their racinos operating, but
he pointed out that he did have a commitment for a
$15 million temporary loan that could get Vernon
underway, since some $45 million of Vernon debt
would not come up for a year under his plan. He
told his questioner, “A year from now this casino is
going to be up and running, and I would expect it
won’t be very difficult to get that money. We all
think Vernon Downs is going to be a success. Your
client wouldn’t be here if they didn’t think so.” Gural
says he plans on racing in the spring, and that he
has broken off talks with the current horsemen’s
association after their attorney, Joe Faraldo, filed
a suit demanding $9.5 million reimbursement for
lost purses. “If the horsemen want to keep mediocre racing, if they want to keep Vernon Downs
the way it is, I guess they have to hope I don’t
get Vernon Downs,” Gural said.
December 20, 2005
WOODBINE SAYS NO TO IRG
8 POSITIVES AND YOU’RE OUT
Woodbine Entertainment Group, restating its views
on non-racetrack rebate operations, has denied
International Racing Group access to pools hosted
by Woodbine, the major racing circuit in Canada.
David Willmot, chairman and CEO of WEG, said
of the decision, “We, as an industry, cannot afford
to continue to legitimize these non-racetrack rebate operations. Our long term success depends
on a significant reinvestment in the racing industry which is something that these organizations do
not deliver.” Woodbine’s announcement yesterday
said, “The racing business relies on substantial
contributions from wagering revenues to fund
breeding programs, purses and overall infrastructure. Non-racetrack rebate operators are not contributing enough to achieve these objectives, even
with their claims of generating increased handle.”
The action is not Woodbine’s first attempt to shut
rebaters out of Woodbine pools. WEG stopped
selling to similar operators in early 2004 after track
customers were actively solicited by some rebate
operators. Steve Mitchell, senior VP and chief financial officer of WEG, said the effect on handle
from barring the rebaters “has been inconsequential. We have been able to recoup that lost handle
and more.”
Well, out for half a year, anyway. Illinois turned
up eight positives from winners sent out by trainer
Ken Rucker at Balmoral in October and early
November, and sent Rucker to the sidelines for
180 days. His winners all showed Indomethacin, a
powerful painkiller also known as Indocin. Rucker
is third nationally in wins among trainers, and sixth
in money-earnings. On the thoroughbred front,
the New York Racing and Wagering Board suspended top trainer Todd Pletcher for 45 days and
fined him $3,000, and an appeal was rejected by a
hearing officer. Mepivacaine, a local anesthetic,
was the villain here. Pletcher leads the nation in
money winnings and is a candidate for an Eclipse
award. How about a Rucker-Pletcher-Noel Daley
tri?
HELP FOR A LEGENDARY LOVER
Not Viagra, but a painkiller, and an illegal one -Flunixin -- at that. The Harness Edge reports that
former U.S. trotting star Legendary Lover K, a
$1.75 million winner, tested positive for Flunixin in
Denmark following a race at the Charlottenlund
track in Copenhagen. The positive is the first in
Denmark in several years, and is embarrassing because the trotter’s co-owner is Knud Erik Ravn,
president of the Danish Trotting Association. The
horse was given high doses of Flunixin in September after a much publicized encounter with
a heifer, but none recently, according to his
trainer.
A TOOTHLESS TIGER IN KY?
If you can’t stop them one way, try another. The
staff of Kentucky’s Legislative Research Commission now takes the stance that Kentucky law does
not give the Kentucky Racing Authority the power
to fine violators of its proposed drug rules. The
Authority plans to go to the legislature, which convenes next month and will be in session through
April, and ask for specific language authorizing
fines and penalties. If they don’t get it, they might
as well go home and play golf, and let horsemen
and vets run racing in the Bluegrass.
PERSONNEL CHANGES
Executive vice president Steve Molnar has left
Youbet.com.....Nick Salvi is the new racing secretary at Pompano Park....Art Manuel, former general manager of Pocono Downs, has been named
to the Pennsylvania Harness Racing Commission,
effective immediately. He replaces Ed Rogers,
who resigned after 10 years to race his own harness horses, and will be missed on the
commission....Glenn Cademartori has left the
Meadowlands, where he was director of marketing and development.
BRUNO CALLS FOR BAILOUT
Joe Bruno, majority leader of the New York Senate and a man who usually gets his way, has called
for a $30 million bailout of the economically distressed New York Racing Association. Bruno proposes an immediate $7 million advance to the oversight board appointed by Gov. George Pataki to
help straighten out New York racing, and another
$23 million for subsequent use in revitalizing
NYRA. The money would come from the state
budget and apply only until NYRA gets slots, hopefully by next fall. Bruno, who in the past has called
for quick privatization of NYRA, now says in a
letter to Pataki, “It is urgent that the state act immediately to implement a plan which will ensure
the continuity of world class thoroughbred racing
in the state, secure the livelihood of all individuals
involved with the industry, enhance the economic
benefits derived from thoroughbred racing and
restructure the industry to assure its viability and
competitiveness in future years.” It seems clear
that “racing” to Bruno, whose district includes
Saratoga Racetrack (and Saratoga Gaming and
Raceway) means only thoroughbred racing, and
he rejected the use of “bailout,” although that is
precisely what his proposal is. He said NYRA
would need to repay the money.
“A STAIN ON THE INDUSTRY”
That was the contemptuous appraisal of the Emerald Casino in Chicago of Rosemont yesterday,
as the Illinois Gaming Board voted unanimously,
5 to 0, to revoke its license. The action followed a
ruling by former Judge Abner Mikva saying Emerald did not deserve the license. A board member, Charles Gardner, said, “The record is clear - is it replete with deceit, misdirection, dissembly,
lies and untruths.” It is now eight years since this
battle started, and Emerald indicated it would a p peal to the Court of Appeals. Look for
another two to five years of hassling.
Following yesterday’s revocation, Isle of
December 21, 2005
Capri, which had been awarded the license earlier, had this to say: “Nothing in the Gaming
Board’s finding involves Isle of Capri. We were
invited to participate in a fair and open auction
process and, unfortunately, two years later we find
ourselves caught in the middle of issues that predated our participation in the auction. Isle of
Capri’s financial condition is strong -- just as it was
at the time of the Rosemont application. And Isle
and its officers have one of the best regulatory
records in the gaming industry.” Isle of Capri owns
HTA member Pompano Park in Pompano Beach,
Florida.
PENN NAT’L WANTS VALLEY
Penn National Gaming, which was forced to sell
its Pocono Downs holding to Mohegan Sun a year
ago because Pennsylvania law prohibits an entity
owning two tracks for racino purposes, now wants
a trackless casino outside of Allentown, where
Pocono maintains an OTB site. Penn National can
own up to one third of another gambling location,
and has a potential partner in the Allentown venture in UCH Venture Capital.
TIME RUNNING OUT IN MASS
The simulcasting situation in Massachusetts is
nearing its year-end deadline, with three track
operators held virtual hostage by the fourth,
Raynham/Taunton boss George Carney. No decision as of the moment.
RIGHT CHURCH, WRONG PEW
Yesterday’s newsletter had veteran racing official
Steve Molnar leaving his post as executive VP of
Youbet.com. Steve worked for Youbet four or five
years ago, but the job he has left now is executive
VP at United Tote, soon to be a wholly owned subsidiary of Youbet.com. We had the right church
but the wrong pew, and hope Steve lands in
another high racing job soon.
December 22, 2005
MARYLAND STILL IN MUDDLE
ISLE IN DEAL WITH PENGUINS
Maryland’s war between the states, or at least
between the main parties, continues. The Maryland Thoroughbred Horsemen’s Association rejected the latest compromise from Magna Entertainment, which owns Laurel Park and Pimlico
Race Course, leaving the dates situation in Maryland for 2006 still unresolved. Magna had proposed 180 days of live racing, year-round stabling
and a request for contributions to help cover operating expenses. The horsemen accepted the 180
days, but not the dates. They want local racing in
Maryland during the summer, while Magna prefers to keep its tracks closed then because of prime
seasons at competing tracks in surrounding states.
The horsemen also agreed to contributions to expenses, but not the plan presented by Magna.
Richard Hoffberger, president of the Maryland
horsemen’s association, took an optimistic view,
saying, “We’re not in agreement, but we’re agreeing to continue to talk and that is a good thing.
We did approve the continuation of simulcasting,
which could have been a huge problem for tracks,
the breeders and the horsemen if not approved.
The world isn’t going to blow up on Jan. 2 or 3
because we don’t have a deal. There are difficult
decisions to be made by all parties.” The chairman of the racing commission, John Franzone, also
sounded optimistic, saying, “Let’s focus on a business plan for Magna. There is no burning fire to
get this deal done. Even the racetrack seems to
be taking a ‘let’s see what happens’ approach.”
That attitude was a pleasant change from earlier
commission threats to resolve the issue unilaterally.
Isle of Capri, still stymied in its quest to open a
casino in Chicago, has switched gears and destinations. The company announced today it has
signed a joint development agreement with the
Lemieux Group, owners of the Pittsburgh Penguins
of the National Hockey League, to fund a new
multi-use area and pursue a Pennsylvania gaming license in Pittsburgh. Isle president and CEO
said the proposed arena “will become the best
entertainment venue in the region, and keep the
Penguins in Pittsburgh. If awarded a gaming license,
Isle said it would begin the construction phase in
early 2007. The Pittsburgh Tribune-Review reports that at least four other groups, including Alco
Parking and MTR Gaming, are considering including money for an arena in their slots proposals.
POST XMAS SESSION IN IL
Harness horsemen in Illinois, still wrapped in controversy with the management of Balmoral and
Maywood Parks, have called a meeting of
their Illinois Harness Horsemen’s Association for Dec. 27 to discuss current negotiations.
IT’S XMAS, AND ELLIOTT STAYS
Stewart Elliott, the jockey of Smarty Jones who
faced deportation for a 2001 aggravated assault
charge, has been spared. An immigration judge in
Newark, NJ, provided a waiver yesterday allowing Elliott to stay. The judge said Elliott’s celebrity did not affect his decision. Okay, judge, if you
say so. After all, Elliott only used a beer bottle, a
pool cue and a wooden stool in beating a friend
into senselessness. Elliott was ordered to serve a
year of probation, pay the victim, Alexander
Kovalik, $13,900 in hospital bills and $50,000 to
settle a civil lawsuit. Lucky Kovalik was a friend;
think of what Elliott may have done if he was an
enemy.
AWARDS AND REWARDS
Dr. David Reid, chairman and CEO of progressive Horse Racing Alberta, is the recipient of
Canada’s Cam Fella award for meritorious service
to Canadian harness racing. The Harness Horse
Youth Foundation has recognized Brittany Farms,
which provides off-season homes for its pony racers; Living Color Cabinetry, for providing trunks;
Jim Taylor, for trucking the ponies 14,000 miles
on their youth driving tour; and Ellen Harvey of
Harness Racing Communications, a facilitator for much of HHYF’s needs and efforts.
December 23, 2005
GOOD NEWS FOR GURAL GROUP
CURRIER & IVES TO CONGRESS
Federal bankruptcy judge Steve Gerling ruled yesterday that there was no “ulterior motive” that
would invalidate the agreement between Jeff Gural
and his financial backers, and a Mid-State Raceway lawyer said the decision effectively ends any
chances of Eric Spector’s Oneida Entertainment
group taking over Vernon Downs. “With this decision in place,” it says Oneida Entertainment
can’t do anything further.”
The Harness Racing Museum and Hall of
Fame’s traveling Currier & Ives exhibit will
get an exclusive showing the first week of
April, in the halls of Congress. With persistent and untiring work by Museum curator
Gail Cunard, strong senatorial help from
Senators Hilary Clinton and Lincoln Chaffee,
and the good offices of Jay Hickey’s American Horse Council, the exhibit of Currier &
Ives trotting prints will be shown in the Rotunda of the Russell Senate Office Building
from April 2 through 7. The dates coincide
with the American Horse Council convention
in Washington, offering conventioneers an opportunity to see American sporting history in
a truly historic setting.
Spector disagreed, saying his group thinks there
are a variety of ways it can continue pursuing the
track, and they would do so when the bankruptcy
hearing resumes next Wednesday. Gural’s plan
won overwhelming support from creditors and
stockholders, and the matter hopefully will be concluded this coming week as a belated Christmas
gift for Vernon and its horsemen.
FARALDO ACCUSES YONKERS
Joe Faraldo, busy trying to derail the Vernon
proceedings by asking for $9.5 million in lost
purses from a bankrupt company, now has
turned his attention to Yonkers Raceway, accusing the track of being “intentionally misleading” in its target of an April 1 reopening
date. Yonkers has been dark six months while
construction continues on its racino, and
Faraldo now says of the April 1 date, “I don’t
believe it. And furthermore, I don’t believe
the racetrack was candid with us from the beginning of this entire process.” Bob Galterio,
Yonkers general manager, told Dave Little of
the New York Daily News, “We had lawsuit
issues with the city of Yonkers over what they
thought was a flawed environmental study.
Then we had to close on our $230 million loan
with Merrill Lynch, who then had to syn- d i cate the loan. All of that took a month
and a half. Does that sound unreasonable to you?”
NO MERRY XMAS AT WINDSOR
There is no holiday cheer at Windsor Raceway.
The union representing hotel and restaurant
workers at the track, UNITE HERE, reports
that management will lay off dozens of employees indefinitely by Feb. 12, and 10 more, including five bartenders and five program and admissions staff, will be terminated with no chance of
recall. Calls by the Windsor Star seeking information on the layoffs were not returned. Employees affected by the layoffs will be bartenders, snack food vendors, wait staff and coat
check attendants.
USTA TO HONOR THREE
The United States Trotting Association board of
directors will honor three racing veterans at its
upcoming meeting during the Racing Congress at
Bellagio in Las Vegas Feb. 6-9. Software executive and former USTA activist director Creighton
Britell, longtime successful harness racing owner
Vic Zeinfeld, and Prince Edward Island pioneering owner and breeder Paul A. McKinnon will
receive USTA honors.
THE RACE BEGINS IN PA
More than 20 applicants were scrambling to get
their applications in by tomorrow’s deadline for
lucrative gaming licenses in Pennsylvania. That
doesn’t mean the glacial pace will pick up on deciding who gets the 61,000 slots that will be available at 14 locations around the state. It just
means that an army of state employees will begin to paw over the applications, some of which - like Mohegan Sun’s -- run to as many as 400
pages of information. The tracks will each get a
racino by law, although who will get the sixth harness license still is an open question. Among the
other applicants panting for Pennsylvania are
Donald Trump, who wants to build a glitzy casino
in North Philadelphia; Harrah’s Entertaiment,
which already has Chester Casino and Racetrack
well underway and would like a standalone casino in Station Square in Pittsburgh; Boyd Gaming, partnering with Patrick Rooney Jr. and David
Sweet, a friend of Gov. Ed Rendell, to get a nontrack casino west of Philadelphia; Ted Arneault,
already building a thoroughbred track and racino
in Erie and wanting a standalone on Pittsburgh’s
North Shore; 100% Purses, still seeking a thoroughbred track near Allentown; Charles Betters
and the Biros family, both of which want to cash
in on the Pittsburgh area; the Pittsburgh Penguins, partnering with Isle of Capri, with plans
for a $290 million arena if they get a casino license to go with it; and parking magnate Merrill
Stabile, who wants a license but, unlike Isle of
Capri, is not ready to fully fund a new arena for
the Penguins. In the Poconos, a developer named
Greg Matzel has submitted an application for a
slots license to go with a $1.2 billion, 750-room
hotel and 100,000-square-foot casino he proposes
to replace Pocono Manor, a 104-year-old Pocono
resort he bought “to continue a great tradition,”
not to mention making a few million
bucks.
Ah, for springtime in the Poconos.
December 27, 2005
The New York Times, meanwhile, reported Sunday that “blue-chip investment houses like
Goldman Sachs, Merrill Lynch and Fidelity now
hold hundreds of millions of dollars in shares of
online casinos and betting parlors, which are publicly traded on the London Stock Exchange and
headquartered in places like Costa Rica or
Gibraltar.” The paper says the growing participation by American investors underscores a striking
gap between the federal law-enforcement position
on online gambling and the realities behind what
has emerged as a booming business. It also noted
that the situation “highlights the difficulty of policing cross-border activity in the Internet age at
the same time that electronic commerce and a global economy are creating fast economic partners
across national boundaries.”
TWO INTERESTING IDEAS
A state senator in Maryland has prefiled a bill calling for a non-binding vote next November asking
voters if they would approve of six designated slot
locations in the state, three at racetracks and three
elsewhere. The legislator, Sen. Richard Colburn
of Dorchester, says he doesn’t think the vote would
be close, but that if it were “no” then the issue
needs to be dropped. In Kentucky, a state senator, Tom Burch, says if the commonwealth really
wants to ensure racing is conducted fairly, the logical solution is pre-race testing of all horses before
they compete. “If that is what they actually believe, this is what we should do,” Burch said in
filing his bill.
CONNORS USHWAN OF YEAR
Longtime publicist Jerry Connors, national secretary of the U.S. Harness Writers Assn., has been
named the group’s USHWAN of the year. He will
receive his honor on the Night of Stars in Vegas.
KERRY PACKER DEAD AT 68
Australia’s richest man, media tycoon Kerry
Packer, has died at 68.
THINGS STILL GRIM IN ONTARIO
According to The Harness Edge, live racing will
be halted after Saturday at both Windsor Raceway and HTA member Western Fair. Both
tracks’ contracts with the Ontario Harness
Horse Association expire then, with the last day
of the old year, and neither track has hammered
out a new contract as of press time. According
to The Edge, OHHA members from both areas
overwhelmingly voted not to enter horses until
a new contract is in place, and asked other
OHHA members and horse people to support
their decision.
Western Fair has offered the horsemen 130 racing dates and a 50-50 purse split on the first $3.9
million of all wagering commissions, which
Western Fair COO Hugh Mitchell says is the
equvalent of 2005 revenues on 112 race dates.
The OHHA wants 142 dates, and apparently is
willing to shut down racing rather than yield.
This willingness on the part of horsemen to take
nothing rather than something also is evidenced
at Vernon Downs, where under Joe Faraldo’s legal guidance the horsemen are demanding more
than $9 million in “lost money” and using the
claim to block transfer of the track to Jeff Gural.
Faraldo and Gural do not see eye to eye, and
Faraldo calls the offer of Eric Spector’s “a better deal.” Spector’s group, Oneida Entertainment, filed a new plan after creditors overwhelmingly rejected their first bid, and Faraldo claims
the new Oneida bid came after the horsemen’s
claim. The horsemen are contending their suit
takes precedence over Bankruptcy Court Judge
Stephen D. Gerling’s decision on who gets
Vernon, and Gerling today delayed ruling on the
Central New York Horsemen’s Assn. claim.
DON’T BLOW WHISTLE IN KY
Fair warning to potential whistleblowers in
Kentucky. Don’t. A month ago, on Nov.
28, the Executive Newsletter reported that the
December 28, 2005
commonwealth’s chief veterinarian, Dr. Gary Wilson, had fired off a letter complaining that the state
was operating without adequate veterinary supervision, supplies and equipment. He called the situation “appalling,” and asked, “Is the administration and Kentucky Horse Racing Authority committed to developing a program that sets industry
standards, or are they interested in just getting
by?” Dr. Wilson got a partial answer last week,
telling him that whatever Kentucky did, it would
do it without his services. Mark York, the deputy
secretary of the state’s Environmental and Public
Protection Cabinet, headed by LaJuana Wilcher,
who originally recommended Wilson for the job last
July, sent the pink slip to Wilson, and then refused
to discuss the matter with the press, calling it “a
personal matter.” Personal, we presume, between
Ms. Wilcher and Dr. Wilson, but regardless Dr.
Wilson is out.
FOUR DOES NOT GO INTO TWO
Four entities -- three of them identified and a fourth
shrouded in secrecy -- are vying for two casino
licenses in Philadelphia. The four are:
The SugarHouse Casino, a partnership of Midwest Gaming and Entertainment of Illinois and a
group of local Philly investors.
Philadelphia Entertainment and Development
Partners (your guess is as good as ours who they
might be).
New Jersey Nets owner Lewis Katz and developer Ron Rubin, and -- according to
Phillynews.com -- Harrahs’ as landowner or mortgage holder and some very well placed Philadelphia political figures.
Donald Trump and Pat Croce.
With the Eagles out of it, this should make
an interesting playoff in Philadelphia.
December 29, 2005
A REPRIEVE FOR MASS. TRACKS
BANAMINE BAGS 3 BIG NAMES
The Massachusetts House and Senate agreed
yesterday to extend the state’s current simulcasting bill for another 90 days, averting a
shutdown of the state’s four tracks. The bill
was sent to Gov. Mitt Romney for signature,
and could be signed before the end of the week.
State Rep. Vincent Pedone, the Democrat who
played a key role in pushing the extension, said,
“The foremost thought in people’s minds was
how do we keep people at the racetracks working until we come to some sort of an agreement
on simulcasting legislation.” House speaker
Salvatore DiMasi, a Boston Democrat, said the
simulcasting issue must be resolved before the
issue of slots for Massachusetts tracks can be
debated in the House. The Senate already has
approved a slots bill.
Three top harness racing trainers -- Bob McIntosh, Erv Miller and Casie Coleman -- have had
their horses disqualified and have been fined $250
each for banamine positives during the recent Red
Mile Grand Circuit meeting in Lexington, KY. Dr.
Richard Mather, who administered the Banamine,
has been fined $1,500. Presiding judge Marc
Guilfoyle said a lengthy investigation showed the
presence of the prohibited drug was “not the result of malicious intent.”
NO REPRIEVE AT BAY MEADOWS
Across the country, backers of old Bay Meadows in San Mateo, California, lost their fight to
save the racing landmark when the San Mateo
County Elections Office ruled that there were
too few signatures on a referendum petition, thus
paving the way for the track’s destruction and
redevelopment. The Bay Meadows Land Company, which owns the track, said it was “relieved” by the result of the county’s verification
process. The results would seem to end five
years of meetings and debates over the future
of the track, but diehards still were talking about
legal challenges.
THERE GOES THE ‘HOOD’
Lasix, the root of much evil in racing in America,
has been illegal in Australia. Until now. South
Australia has voted to break the country’s drugfree policy by legalizing it. The Sydney
Herald Sun said the move “is sure to
spark a massive backlash from other
Australian racing officials.
NO RERUN OF MAPLE LEAF
Owner Joseph Chnapko’s appeal to the Ontario
Racing Commission to have the $918,500 Maple
Leaf Trot raced over again has been denied.
Chnapko’s horse, HTA’s older trotting horse of
the year, Hellava Hush, was one of three whose
drivers pulled up their horses after the starter
had first flashed recall lights and then turned
them off, creating confusion at the start of the
rich race. The commission ruled that it was a
driver’s decision to pull up, noting that seven
other drivers did not do so, and said, “There is
no guarantee that the running of a horse race,
from any...perspective, will be free of or unfettered by human error.....Even with appeals and
replays, human error on the part of officials cannot be eradicated as a factor sometimes affecting the outcome of such contests.”
SHE KNOWS MORE THAN WE
Gov. George Pataki still wants Bernadette Castro
to be chairwoman of the New York Racing and Wagering Board, and apparently has told her to sit tight
and she’ll get the job. Ms. Castro was quoted in
ocala.com as saying, “My role is to see that racing
and wagering in New York is the most honest in the
country, that any wager is an honest wager.” Pataki
says he wants her because “she’s a tremendous
public servant who would have that open mind
as she looks to the future of racing.”
December 30, 2005
ANOTHER CHICAGO CLOSURE
THE BAILOUT AND HOBLOCK
Deja-vu all over again in Chicago. Illinois harness horsemen have declined offers from the
Johnstons, owners of Balmoral Park in Crete
and Maywood Park in Maywood, and those
tracks will go dark after the current horsemen’s
contract expires tomorrow night. Balmoral and
Maywood will not race Sunday or Tuesday. No
future negotiations have been scheduled, and the
horsemen’s president, Martin J. Engel, was
quoted as saying, “The industry has been hurting for a long period of time. The horsemen
are hanging on by a thread. They’d rather not
race at all. It’s also a matter of principal.” We
find principal is not legal tender at the groceries and gas stations and department stores we
patronize, but that’s Mr. Engel’s call, and that
of his members. The last horsemen’s strike in
Chicago, in 2003, lasted two and one-half
months. It’s almost impossible to recoup losses
like that, regardless of settlements.
It depends on who you talk to in New York as to
where the bailout of NYRA stands. Senate majority leader Joe Bruno says it is a done deal.
NYRA senior VP Bill Nader says “the dialogue
is continuing” between NYRA and the
governor’s office and Bruno’s office, but said
“We don’t have a final deal yet. We’re cautiously optimistic that a deal will get done. We’re
not there yet.” Reports indicate that NYRA will
receive a $1 million down payment on a piece of
unspecified property at Aqueduct, which could
run as high as $5 million. There also would be a
$5 million loan from the Empire State Development Fund, contingent on NYRA assuring the
state it would race at Aqueduct, Belmont and
Saratoga without interruption next year. Another
$24 million would be voted by the legislature.
Apparently the state would like to dole out the
money as needed, while NYRA would like it in a
lump sum.
The same nothing-is-better-than-something sentiment is being expressed at Western Fair in
Ontario and at Vernon Downs. The Western Fair
situation is likely to be resolved with reasonable negotiation, but the Vernon situation is
turning ridiculous. The horsemen’s demands for
getting blood from a stone yesterday delayed
the bankruptcy proceedings again, this time until January 6, as judge Stephen Gerling did not
rule on either the horsemen’s motion for $9 million in damages or the winner of the contentious
battle for the track and its racino. The court
heard yesterday from Thomas Winn, chairman
and CEO of Nevada Gold, who said his company
is seeking $80 million in financing to help bring
Vernon out of bankruptcy. “There is no shortage of capital out there looking for a home,”
Winn told Gerling. “We just need to convince them that this is a good home.”
Vernon horsemen are not making his job
easy.
Regardless of how the financing takes place, former
Racing and Wagering Board chairman Mike
Hoblock has been treated roughly by Albany in this
poorly handled mess, caught between Pataki’s and
Bruno’s wishes for a new board member. For Mike
Hoblock to be blamed for NYRA’s problems is unfair to a good man. Hoblock has run the Racing
and Wagering Board honorably and diligently during his years at the helm, and he says the people
trying to get him out have been giving the governor
incorrect information. He calls the situation “the
most confusing, disappointing experience I’ve had
in my 35-plus years in public service,” and he says
he won’t quit.
DESPITE ALL THIS.....
the sun is shining brightly in Tucson, and from all
of us at HTA to all of you, wherever you may be,
Happy New Year. We will see you next week,
and next year.

2005 - Harness Tracks of America, Inc.

Transcription

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