Executive Newsletter - Harness Tracks of America, Inc.
Transcription
Executive Newsletter - Harness Tracks of America, Inc.
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 SOME HELP AND MUCH TRAVAIL Help arrived in time for the new year for the New York Racing Association, which got its $30 million loan to keep the ship afloat, but things are not as rosy elsewhere. In Chicago, no new negotiations were reported in the impasse between Balmoral and Maywood Parks and the Illinois Harness Horsemen’s Association over recapture provisions, the amount of money track operators can withhold by law from purses. Horsemen are boycotting the entry box, and Balmoral cancelled its Sunday card and Maywood will not race Tuesday night. In Windsor, Ontario, Windsor Raceway announced it would be unable to conduct live racing on Wednesday or Thursday because there were not enough horses entered to conduct a competitive card. Windsor says it offered a 50-50 split on wagering from all sources, including intertrack betting, but said it found itself “in the middle of a territorial dispute between local horsepeople.” The track said its agreement with the Ontario Racehorse Association was non-restrictive, and that “horsepeople from any and all associations, including the Ontario Harness Horse Association,” were welcome. At Monticello Raceway, horsemen, claiming they are owed $3 or $4 million, on Friday voted not to approve simulcasting from the track. The track reportedly responded by cutting purses 50%. Horsemen claim Monticello withholds mandatory contractual payments due the horsemen’s association for hospitalization and medical insurance. A horsemen’s release said, “The horsemen of Monticello have no intent of allowing management to hold their own money hostage.” The track issued a release saying in effect everything is wonderful for all, and its officers said they were “shocked and surprised” at the simulcasting ban. January 3, 2006 At HTA member Western Fair, talks resumed between the track and the Ontario Harness Horse Association, and the London Free Press reported a settlement was near. John Walzak, chief operating officer of the horsemen’s association, was quoted as saying, “I think we’re close to a deal. We are optimistic we will get it done this week.” The impasse there is an issue of number of racing dates, Western Fair offering 18 more than last year, the OHHA demanding 30 more. If extra dates are added, Western Fair wants to maintain its present 50-50 split of all wagering commissions but only on the first $3.9 million, then shift to a 75-25 split in favor of the track for the 18 additional dates it is offering. INCENTIVE OFFER FROM BIG M The Meadowlands National Harness Handicapping Championship, which drew more than 140 entrants from 17 wagering establishments last year competing for a guaranteed $50,000 first prize, is underway again. To participate, track partners send two players to the final, paying the $600 entry fee and a $400 live bankroll, or $2,000 for their two players plus travel expenses for each. If a track wishes to send more players than two, after holding its own qualifying tournament any time between now and March 22, the Meadowlands is offering a 15% discount for a third player and a 25% reduction for a fourth. HTA members are urged to participate, with or without additional players beyond two, in this unique promotional opportunity. LATER CLASSIC FINAL IN ‘06 The Classic Series for older horses will race a later schedule this fall, with preliminaries in late October and the $250,000 finals at Dover Downs in late November. Nominations will close April 15. Director Nick Salvi also advises owners of open class trotters and pacers that nominations for Pompano Park’s rich Isle of Capri and Mack Lobell series will close January 9. 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 4, 2006 BIG CROWD IN PENNSYLVANIA ON THE BOYCOTT FRONT Twenty-four companies and individuals have applied for casino licenses in Pennsylvania. Here they are, both racing, metropolitan and standalone applicants: Western Fair Raceway and the Ontario Harness Horse Association met again yesterday in their contract negotiations, with no accord reached, but were scheduled to meet again today on the number of racing dates at the HTA track. If the dispute is settled, racing could resume early next week. RACETRACKS: Harrah’s Chester Casino and Racetrack Mohegan Sun at Pocono Downs Penn National at Grantville Philadelphia Park, Bensalem Presque Isle Downs, Erie The Meadows, Meadow Lands PHILADELPHIA: Mashantucket Pequot Tribal Nation Midwest Gaming & Entertainment Pinnacle Entertainment Planet Hollywood Trump Entertainment and Pat Croce PITTSBURGH: Don H. Barden Forest City Ent. and Harrah’s Entertainment Isle of Capri and Pittsburgh Penguins Merrill Stabile STANDALONES, NON-METROPOLITAN Aztar Corporation, Allentown Boyd Gaming, Limerick Township David LeVan and Morgan Stanley & Co. Greg Matzel, Pocono Manor Inn & Golf Jerome Finefrock and James Nettleton Las Vegas Sands Louis A. DeNaples EXISTING RESORTS: Nemacolin Woodlands Resort (Joe Hardy) Seven Springs Mountain Resort Today’s trivia question: How long do you think it will take to sort these out? The president of the Illinois Harness Horsemen’s Association, Martin Engel, responding in a letter to an item here and in Track Topics that “principle” is not accepted as legal tender, says there are no members in their organization that wish to be boycotting the entry box, acknowledging the hardship in doing so, but saying, “we must hold out for an acceptable purse level and not have to mortgage our future with debt.” Mr. Engel concluded that he understands that “when situations like this occur, there are no real winners -- everyone is hurt....but that in order for harness racing to continue in the State of Illinois, we must adhere to the position that we are taking.” The boycott continues at Balmoral and Maywood. Windsor Raceway remains closed for live racing. The track announced last week that it had signed an agreement with a new organization called the Ontario Racehorse Association, but an Ontario Harness Horse Association official says he is unaware of any owners having signed with the new group, and trainer Bob McIntosh said local horsemen remain united and would not enter at Windsor as long an agreement exists with the newly formed group. A Nichols, NY, horseman, trainer-driver Joseph Osmeloski, has announced that a new horsemen’s organization, Southern Tier Harness Horsemen’s Assn., is being formed to provide representation for all horsemen who plan to race at Tioga Downs. 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 5, 2006 ADD WEIRD RACING ACTIONS FLORIDA SLOTS BY LATE JULY? In today’s weird world of how racing penalties are announced, extended, rescinded, or investigated after the fact, add this one: Ken Rucker, suspended 180 days and fined $3,000 for six positives on six different horses for indomethacin, otherwise known as the painkiller Indocin, has had his penalty suspended indefinitely by the Illinois Racing Board. Board projects manager Mickey Ezzo told harnessracing.com yesterday that the extension was “because Rucker had so many positives for the same drug we are looking at contamination. We are testing for contamination of feed and things like that, and testing just hasn’t been done yet. That’s why we’ve extended the stay.” We have no idea how or why the six horses tested positive, but it seems reasonable to expect that contamination would be checked before the barn door was closed, literally. At the moment the extension makes little difference, because Balmoral and Maywood Park remain closed, horsemen having boycotted the entry box. The other Bush, the one who is governor of Florida, signed the enabling legislation for slot machines in Broward county yesterday, reluctantly. He said he did it only because he felt he had “a constitutional duty” despite personal obligation, since the voters of his state approved it more than a year ago. The Miami Herald says the four pari-mutuel operations in Broward county -- HTA member Pompano Park, Gulfstream Park, which reopened yesterday as a rebuilt facility; Hollywood Greyhound Track; and Dania Jai-Alai -- could be operating slots as early as late July. Isle of Capri, which owns Pompano Park, plans to spend some $160 million to build a 150,000-square-foot state-of-theart racino. In other unusual doings, a lawsuit initiated by the Monticello Harness Horsemen’s Association calls for immediate suspension of performance testing for milkshaking, on grounds that it is being conducted improperly. Monticello management, which is involved in a deep dispute with its horsemen -who pulled the plug on out-of-state simulcasting last Friday -- called the suit “a serious blow to the credibility and standards of the sport,” and characterized it as “appalling and shameful action that could seriously undermine the credibility of racing at Monticello Raceway.” Joe Faraldo, who is representing the horsemen, was quoted as saying, “There are drivers escaping who should be caught and people who are being told they are violating the levels and they’re not. We don’t mind them doing testing, but they’re not doing it properly.” 9 OF 10 IN KY WANT SLOT VOTE A survey conducted for KEEP, the Kentucky Equine Education Project, shows that 92% of 801 Kentucky voters surveyed think they should have the opportunity to vote on the issue of slots as a constitutional amendment. Those in favor of a vote included opponents as well as proponents of slots, and only 46.2% of respondents said they would vote yes to slots if slots were limited to tracks without specific earmarking of revenues. When the question was broadened to slots limited to tracks and a guaranteed portion of revenue going to education, health care, environment and local government, 65.2% said they would vote yes and only 32.9% said no. Also in Kentucky, Churchill Downs has initiated a formal succession-planning procedure in anticipation of the retirement of Tom Meeker, Churchill’s president and CEO for 22 years. Meeker’s contract expires in March, 2007, and he has announced he will step down then, or sooner if a satisfactory successor is found, either from internal or external sources. 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 6, 2006 WILLMOT WINS MESSENGER CHICAGO STRIKE IS OVER David S. Willmot, chairman and chief executive officer of Woodbine Entertainment Group, is the winner of HTA’s Stan Bergstein Messenger Award for 2006. Brilliantly articulate and far-seeing, Willmot has built Woodbine Entertainment into a world leader in racing and gaming, and is expanding its horizons with a $310 million multi-purpose entertainment, shopping and sports complex, to be called Woodbine Live!, on 25 acres of Woodbine’s spacious track property near the Toronto International Airport. Owner of major harness horses and thoroughbreds, Willmot and his father, the late D. G. (Bud) Willmot, campaigned five Queen’s Plate winners, and Willmot and his partner Bob Anderson have in five short years as harness horse owners have raced two HTA Nova champions, the Hambletonian Oaks winner Southwind Allaire, which earned $733,534, and the pacing filly Cabrini Hanover, winner of a Nova at both 2 and 3, with $1,294,790 in purse winnings. Willmot will accept the Messenger, and he and Anderson will receive Cabrini Hanover’s Nova, at the Night of Stars awards dinner at Bellagio in Las Vegas Wednesday, Feb. 8. Harness racing will return to Chicago tomorrow at Balmoral Park after a weeklong interruption by a horsemen’s boycott of the entry box. The Illinois Harness Horsemen’s Association and the Johnston family that controls both tracks agreed on a oneyear contract that permits ‘recapture’ of 30%, and deferral of 70%, of the monies the tracks can recoup against benchmarks set by Illinois law. During the last three years, the tracks waived or deferred 80% of recapture monies. Tomorrow’s return of racing features a Balmoral doubleheader, a matinee card with a 1 p.m. post time, and an evening card starting at 7:20. MANZI HTA DRIVER OF YEAR The bankruptcy hearing of Mid-State Raceway resumed in Utica, NY, today, with horsemen led by Joe Faraldo still seeking $9 million in lost monies during the track’s year and a half of idleness. No decision at press time. Catello (Cat) Manzi, who enjoyed the greatest season of his long driving career in 2005, topped off the year by winning the most difficult award in the sport, HTA’s Driver of the Year. To win, a driver must finish in the top 25 in North America in all three major categories -- money won, races won, and percentage standings -- and Manzi was one of only three drivers, of 4,922 who competed in pari-mutuel purse races last year, to accomplish that, scoring 81 points. He was first in races won with 727, fourth in money won by his mounts, $8,653,808, and 17th in percentages with a .336 in-the-money performance. Four-time HTA Driver of Year Dave Palone finished second, and three-time champion Tony Morgan was third. W. FAIR NEARS SETTLEMENT Racing at HTA member Western Fair Raceway could resume as early as Monday, if the Ontario Harness Horse Association membership ratifies an agreement it is receiving at a meeting at 3:30 this afternoon. The issue of number of racing dates has stopped racing at the track since New Year’s Day. VERNON HEARING RESUMES ABBATIELLO ON COMMISSION This corner has long complained that governors could not find, or did lspend much time looking for, racing commissioners who really know racing. New Jersey acting governor Richard Codey has shown what can be done, appointing veteran Hall of Fame trainer-driver Tony Abbatiello to the New Jersey Racing Commission. Our congratulations to Tony and Gov. Codey, who is unique himself in being a governor knowledgeable of racing of both breeds. 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 9, 2006 ANOTHER WEEK’S DELAY BETFAIR BOARD CHANGES They argued all Friday again in Utica, NY, about who gets Vernon Downs, and once again no decision was forthcoming. Lawyers for Eric Spector’s Oneida Entertainment group are trying to regroup creditors, who voted solidly for Jeff Gural’s plan, to win the support of at least one group and stay alive. Gural’s lawyers say that is specifically forbidden. Mid-State Raceway, parent of Vernon Downs, wants an early vote, telling the court it has a viable plan in front of it, and that every class of creditor supported it, but the bankruptcy judge Stephen Gerling extended the hearing to Friday of this week. It’s too early to tell the significance of the changes, but the board of the English betting exchange Betfair also has undergone some major changes. Executive chairman Sir Robert Horton and nonexecutive directors Nick Irens and Justin Dowley resigned, immediately, and former chief technology officer and chief operating officer David Yu now is CEO of Betfair. Tim Bunting becomes chairman of the six-year-old exchange, which recorded an operating profit of $35.1 million on revenues of $191.5 million in its last fiscal year. In one new development, a group of Vernon horsemen have broken away from the Harness Horse Association of Central New York, upset at the delaying tactics in a suit filed by Joe Faraldo asking for $9.6 million in lost monies for horsemen because Vernon went into bankruptcy. One member of the new group, Ken Jacobs, told the Syracuse Post-Standard, “We have someone who is willing to put up $50 million, and the association (HHACNY) is creating all kinds of roadblocks and frivolous lawsuits.” Judy Lanpher, another member of the new group, the Vernon Downs Horsemen’s Association, called the legal action “the straw that broke the camel’s back.” Rick Papa, president of the Harness Horsemen’s Association, said, “The law is on our side and we have done nothing wrong.” Maybe nothing wrong, but nothing very smart, either. OHHA SUES FOR $10 MILLION The Ontario Harness Horse Association has filed a $10 million lawsuit against a new racing group that has entered into an agreement with Windsor Raceway. The suit alleges that the new group, Ontario Racehorse Association, “induced breach of contract” between Windsor and the OHHA. ANOTHER HUGE MAGNA MALL? The county council that serves Laurel Park in Maryland has been asked to change the zoning to allow hotels, restaurants, taverns and retail stores to be built at the track. County executive Janet S. Owens said a bill she has introduced “creates opportunities for entertainment.” It is not a new proposal -- Magna Entertainment presented it to the county two years ago for a series of upscale shops, boutiques, restaurants and hotels, and the president of the Russet Community Association, in the neighborhood where Laurel is located, said he has been told a 1 million squarefoot commercial development is being planned. A 1.2 million square-foot shopping plaza, Arundel Mills, is located just a few miles away. The new zoning proposal does not address slots. The county council will hold a public hearing on the proposal Jan. 17. MAINE GOV VETOES RACINO Gov. John Baldacci of Maine vetoed a bill Friday that would have allowed Maine voters to decide whether to allow the Passamaquoddy Tribe to build a harness track with 1,500 slot machines in Washington county. The legislature, which passed the legislation last year, could override the veto and force a referendum, or voters could authorize one. 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 10, 2006 POP. 31,473; SLOTS $60 MIL GET THE KIDS IN THE ACT Whatever else you think about Shawn Scott, don’t ever sell him short on smarts. When he spotted little Bangor in the Maine woods and recognized it as a potential gold mine, some scoffed. He gained the support of the horsemen who raced there, got the state of Maine to legalize slots there, and then sold the track to Penn National Gaming for $40 million or so. The population of Bangor in the last census was 31,473. The first 475 slot machines went into operation there on Nov. 4, 2005. Between that date and Dec. 31, more than $60 million dollars went through those machines in Bangor. Hollywood Slots, which is what Penn National calls their operation, had income of more than $4.1 million in that period, of which $2 million went to the state of Maine. The law that Scott helped get passed calls for a 1% tax on total wagers and a 39% tax on net income. Now the Maine Gambling Control Board is growing concerned about how to help people who may develop gambling addiction problems, a concern because there are only two chapters of Gamblers Anonymous in Maine, and both are in Portland. Both state agencies and Hollywood Slots are referring problem gamblers to a nationwide toll-free hotline at the National Council on Problem Gambling. The Pennsylvania Gaming Control Board has released the official list of applicants for the state’s 14 coveted slot machine licenses, and it looks like a phone book of VIPs in the state. It turns out that there were 25, not 24 as previously reported, applicants, and the Philadelphia Inquirer reports that “two former governors, two current SEPTA board members, and several unidentified minor children were among the names of applicants for slots parlor licenses.” The list includes a few billionaires -- Donald J. Trump and Neil Bluhm among them -- and former New Jersey governor Jim Florio and former Massachusetts governor Paul Cellucci. The list also has entries like “Minor child 1” and “Minor Child 2.” Might as well get them taken care of early. We can just see it now: some young millionaire 21 years from now, telling a friend, “Dad sure knew what he was doing when he signed me up for a casino license.” The big names include Gary Loveman, CEO of Harrah’s Entertainment; Robert M. Haddock, CEO of Aztar Corporation; Peter M. Carlino, CEO of Penn National Gaming; Sheldon Adelson, CEO of the Venetian in Las Vegas; and William S. Boyd, CEO of Boyd Gaming. An analyst for Susquehanna Financial Group said, “You pretty much have every prominent operator represented with the exception of Steve Wynn and MGM.” ITALIAN OWNERS FOR GTECH Reuters news reports that Italy’s De Agostini, which controls the Italian lottery operator Lottomatica, is buying GTech Holdings Corp. for more than $4 billion. Reuters quoted a financial source as saying, “De Agostini will on its own take control of GTech with a very complex operation unprecedented in Italy.” Lottomatica shares were suspended on the Milan bourse yesterday, pending a statement to be issued today. GTech ist h e world’s largest systems operator, with a market value estimated at around $4.2 billion. NO SMOKING BAN IN NJ The New Jersey legislature yesterday banned smoking in indoor public places -- bars, restaurants, and apparently racetracks -- but exempted Atlantic City’s casinos. That exemption raised a hue and cry in the legislature, but acting governor Richard J. Codey, in one of his final acts, was able to carry the day for the bill, which he supported strongly. Similar bans have affected business materially in some of the 11 states that have bans as broad-based. 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 HAPPINESS AT WESTERN FAIR HTA’s new strong member at Western Fair Raceway is back in operation, with smiles all over London, Ontario. Columnist Jim Kernaghan, writing for Slam Sports, commented, “Not only are the standardbred horsemen back, but they came with kind words for management.” Kernaghan quoted Western Fair Wall of Fame veteran Stan Williams as saying, “They did a good job, both sides, and they deserve a lot of credit.” The impasse lasted a week, and Kernaghan reminded readers that the National Hockey League was dark for a year. Both Kernaghan and the London Free Press reported euphoria at the feeling of security and enthusiasm that the new contract is long term, covering racing through 2009 with an optional year beyond that. Al Cullen, a horsemen whose home track at Windsor has been tied in knots by a nasty contractual dispute, was quoted as saying, “One thing about London, they’re all working for the betterment of racing here.” UNHAPPINESS AT VERNON Far more than unhappiness. Bitterness and downright ugliness. In an another attempt to circumvent Jeff Gural’s bid for Vernon Downs, the rival Eric Spector-led Oneida Entertainment group says it “more or less has a deal” with the Harness Horse Association of Central New York to allow its members to race at Vernon this year, if there is a this year. Jeff Gural earlier stated he would sign on with a different horsemen’s group and would no longer negotiate with the Central association. Now, in response to an item that appeared in [email protected], Gural angrily wrote that if Joe Faraldo claimed Gural was trying to take $384,000 of horsemen’s money he was “a stone cold liar.” Gural said that at no time had he ever stated he was not willing, per his agreement, to put that money back into the horsemen’s purse account. Gural said that at the horsemen’s request, he had kept January 11, 2006 Vernon Downs open as a training center. He said he had done that while the court fight had continued, “at a cost to me personally of over $2,500,000,” and that he had simply asked permission from the horsemen “to allow to put this money up when racing was going to resume rather than put it into an escrow account a year in advance.” Gural said that request was turned down by the horsemen but approved by the judge at the request of the debtor. Concerning his action on keeping the track open for training, Gural wrote, “One would think that someone who has picked up the costs last year for over 750 horses at its peak to train at Vernon at no charge would not be called a liar and a robber baron.” He said he was curious as to the number of trainers who trained horses last year at a training center for free. In his letter, Gural called Faraldo “the single most destructive force in harness racing today,” and wrote that “the sad part is that the real victims of Faraldo’s arrogance and bluster are the horsemen at the tracks he represents who have to suffer and forfeit valuable earning opportunities because of Mr. Faraldo’s less than competent representation.” Gural’s letter followed one in which Faraldo, writing to Vernon’s horsemen, said that Gural’s word was no good and called his effort to create a new horsemen’s association “typical of the robber barons of old.” He accused Gural of using the horsemen to delay the reopening of Vernon Downs, saying, “Bottom line they all want machines and truthfully the hell with us.” Faraldo said Gural wanted “to turn Vernon into a stakes palace for rich guys at the expense of the overnight horsemen” and that he had launched personal attacks against Faraldo and horsemen’s president Rich Papa. Gural said he agreed to work with the current horsemen’s association “as long as its officials and board were democratically elected.” 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 12, 2006 SLOTS HOPES FADE IN INDIANA ENLIGHTENMENT IN NJ There always are hopes and surprises where politics are concerned, but the lights seem to be dimming on the prospect of slots for Indiana. Win Moses of Fort Wayne, a Democratic state representative who has been a supporter of video gaming machines in the Hoosier state, did not file a bill on the issue by Tuesday’s deadline this week, and says he doesn’t think anyone else did, either. Indiana has a relatively short legislative session this time around -- it extends only until March 14 - and Moses says the slots issue is so complex that there isn’t enough time to debate and pass it this year. He says it is unlikely that any slots bill will pass the General Assembly this year. Estimates on illegal machines operating in Indiana vary widely, between 10,000 and 20,000. Harness racing doesn’t get representation on many racing commissions across the country, but it is appropriate that it should have some in New Jersey, home of the sport’s flagship track in the U.S., the Meadowlands. Acting governor Richard Codey, winding down his term this month, has appointed the second harness horseman in two weeks to the New Jersey Racing Commission, both experienced veterans. Hall of Famer Anthony (Tony) Abbatiello was confirmed last month, and the state Senate late Monday confirmed Codey’s choice of Monmouth county attorney James G. Aaron, a harness horse owner for the last 23 years. New Jersey law was changed three years ago to provide that four of the nine seats on the racing commission be allocated to horsepeople, two from harness racing and two from thoroughbred racing, and harness racing now has its spots. Aaron, the latest commissioner, is a well-known municipal attorney and prosecutor in central New Jersey, and was co-owner of the $170,000 winning pacer San Gimignano, among other horses. MARYLAND OKS 10-CENT BETS The Maryland Racing Commission has unanimously approved 10-cent minimum bets, including a 10-cent superfecta, and hopes to have them operational by Kentucky Derby Day in May. Magna Entertainment also has asked the racing commission to let it develop and offer a Quad-Trifecta, in which bettors would have to pick the first three finishers in four separate races, either all at one track or on selected races at different Magna tracks. BALDACCI MAINE VETO HOLDS The Maine House of Representatives has sustained governor John Baldacci’s veto of a bill calling for a statewide referendum on an Indian harness track and racino, falling far short of the necessary two-thirds needed for an override. The vote was 77-63, but the issue is not dead. A petition drive is underway for a referendum in November. The time is short, however, for organizers have only until Jan. 30 to submit at least 50,519 names of voters. A backer says he is confident of 65,000 to 70,000 signatures on the petition. GROWING OLD WITH MAYWOOD If one needs a reminder of his mortality, a good way to get it is to hear that a racetrack is starting its 60th season and realize you were there on opening night. Maywood Park begins its 60th season tonight, and the editor was there, working in the press box, when the track held its inaugural meeting June 4, 1946. No smart remarks, please. SYMPATHY TO TOM ALDRICH Tom Aldrich, former president and chairman of HTA, lost his mother this week after a brief battle with cancer. Mary Aldrich was 78, and funeral services were conducted yesterday. The entire HTA family extends its sympathies to Tom, who began his harness racing career as an HTA executive assistant shortly after college. 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 12, 2006 SLOTS HOPES FADE IN INDIANA ENLIGHTENMENT IN NJ There always are hopes and surprises where politics are concerned, but the lights seem to be dimming on the prospect of slots for Indiana. Win Moses of Fort Wayne, a Democratic state representative who has been a supporter of video gaming machines in the Hoosier state, did not file a bill on the issue by Tuesday’s deadline this week, and says he doesn’t think anyone else did, either. Indiana has a relatively short legislative session this time around -- it extends only until March 14 - and Moses says the slots issue is so complex that there isn’t enough time to debate and pass it this year. He says it is unlikely that any slots bill will pass the General Assembly this year. Estimates on illegal machines operating in Indiana vary widely, between 10,000 and 20,000. Harness racing doesn’t get representation on many racing commissions across the country, but it is appropriate that it should have some in New Jersey, home of the sport’s flagship track in the U.S., the Meadowlands. Acting governor Richard Codey, winding down his term this month, has appointed the second harness horseman in two weeks to the New Jersey Racing Commission, both experienced veterans. Hall of Famer Anthony (Tony) Abbatiello was confirmed last month, and the state Senate late Monday confirmed Codey’s choice of Monmouth county attorney James G. Aaron, a harness horse owner for the last 23 years. New Jersey law was changed three years ago to provide that four of the nine seats on the racing commission be allocated to horsepeople, two from harness racing and two from thoroughbred racing, and harness racing now has its spots. Aaron, the latest commissioner, is a well-known municipal attorney and prosecutor in central New Jersey, and was co-owner of the $170,000 winning pacer San Gimignano, among other horses. MARYLAND OKS 10-CENT BETS The Maryland Racing Commission has unanimously approved 10-cent minimum bets, including a 10-cent superfecta, and hopes to have them operational by Kentucky Derby Day in May. Magna Entertainment also has asked the racing commission to let it develop and offer a Quad-Trifecta, in which bettors would have to pick the first three finishers in four separate races, either all at one track or on selected races at different Magna tracks. BALDACCI MAINE VETO HOLDS The Maine House of Representatives has sustained governor John Baldacci’s veto of a bill calling for a statewide referendum on an Indian harness track and racino, falling far short of the necessary two-thirds needed for an override. The vote was 77-63, but the issue is not dead. A petition drive is underway for a referendum in November. The time is short, however, for organizers have only until Jan. 30 to submit at least 50,519 names of voters. A backer says he is confident of 65,000 to 70,000 signatures on the petition. GROWING OLD WITH MAYWOOD If one needs a reminder of his mortality, a good way to get it is to hear that a racetrack is starting its 60th season and realize you were there on opening night. Maywood Park begins its 60th season tonight, and the editor was there, working in the press box, when the track held its inaugural meeting June 4, 1946. No smart remarks, please. SYMPATHY TO TOM ALDRICH Tom Aldrich, former president and chairman of HTA, lost his mother this week after a brief battle with cancer. Mary Aldrich was 78, and funeral services were conducted yesterday. The entire HTA family extends its sympathies to Tom, who began his harness racing career as an HTA executive assistant shortly after college. 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 13, 2006 HTA ANNOUNCES ITS AWARDS GOOD NEWS IN DELAWARE The Standardbred Retirement Foundation, the New Vocations Racehorse Adoption Program, and the late, great harness racing journalist Evan Shipman are the 2006 recipients of Harness Tracks of America’s Distinguished Service awards and Dan Patch award. The horsemen may love to fight with people trying to help them at Vernon Downs and elsewhere, but Delaware continues to show the way as to what cooperation instead of petty bickering can produce. Gov. Ruth Ann Minner of Delaware has announced legislation that would allow Dover Downs and Harrington Raceway harness tracks, and Delaware Park thoroughbreds, to boost the number of slots at each track from 2,500 to 4,000, and to operate them 24 hours a day. The proposal comes in the face of up to 61,000 slots at future racinos and casinos in neighboring Pennsylvania in 2007, and the likelihood of slots at New York city area tracks by late this year. The bill would allow round-theclock operation except on Sunday mornings, Christmas and Easter, and also would allow free promotional play. It is expected to be introduced this month. The SRF and New Vocations programs, both of which save at-risk horses from destruction, have rehabilitated hundreds of standardbreds, SRF for the last 17 years and New Vocations for 15. Paula Campbell and Judy Bokman, wives of driver John Campbell and Dr. Stephen Bokman, were instrumental in the early success of the SRF, and the New Vocations program was and is the result of the work of Ohio horsewoman Dot Morgan, aunt of driver Tony Morgan. Mrs. Morgan will receive her award personally at the Night of Stars dinner Wednesday night, Feb. 8, at Bellagio in Las Vegas, and the SRF award will be accepted by Hall of Fame trainer Chuck Sylvester and his wife Sharon, both directors of the foundation. Evan Shipman was for many years both a harness racing and thoroughbred columnist for the old Morning Telegraph and Daily Racing Form. He also was an accomplished published poet, author, literary figure and close friend and confidante of Ernest Hemingway. Shipman was second only to the immortal John Hervey as a dual breed authority, widely respected for his knowledge of both sports. His harness racing novel, Free for All, was lauded by Sherwood Anderson and others as a major sporting work. Hemingway dedicated his 1927 novel Men Without Women to Shipman, and the two wrote together, drank together and fought together in the Spanish Civil War. Shipman was official handicapper for Roosevelt Raceway in its early days, and his column “In the Sulky” was a regular feature in the Morning Telegraph. He died in 1957. INDIANA HORSEMEN AT WORK The Indiana Horse Racing and Breeding Coalition is seeking support from members and others in the Hoosier state for HB 1077, which would authorize slots at Hoosier Park and Indiana Downs, the state’s two tracks. The IHRBC is asking for calls and letters to legislators urging them to make sure the bill, and another seeking slots, get a full and fair hearing. DOWN BUT NOT OUT IN MAINE The governor of Maine may have vetoed the legislation for a new harness track and racino for the state, and the House was unable to override it, but backers of the idea now have won assent from the House to take up a new bill. Voting 98-44, the House approved a joint order directing the legislature’s Legal and Veterans Affairs Committee to report out a bill authorizing a referendum on a tribal track with slot machines. 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 16, 2006 WINDSOR, OHHA END BATTLE FINAL AGENDA THIS WEEK Windsor Raceway and the Ontario Harness Horse Association have kissed and made up, and racing will resume at the Detroit-area track on Wednesday. Windsor has agreed to apply for 139 days of racing this year, and split pari-mutuel revenue 5050 for the entire term of the 3-year-agreement, with an optional year as well. For its part, OHHA agreed to dismiss its actions against Windsor Raceway that included claims for lost racing dates. Both the track and OHHA issued statements of delight at the end of the conflict and resumption of racing. A finalized agenda for the fourth Racing Congress will be distributed to all directors and speakers this week. Speakers will be contacted concerning format of the meetings, and committee agendas will be distributed shortly after. In answer to a few questions, there is only one meeting scheduled for Monday Feb. 6, an HTA finance and executive committee meeting in the Bellagio boardroom at 4:30 p.m. Committee meetings occupy all day Tuesday, the welcoming reception is Tuesday evening, and general sessions with speakers will be held Wednesday and Thursday. MGM-Mirage chairman and CEO Terry Lanni is scheduled to speak Wednesday afternoon at 3. There will be luncheons for all attendees on Wednesday and Thursday, and the Night of Stars reception and awards dinner Wednesday night. More committee and board meetings will be held Thursday, but the only event scheduled for Friday the 10th is a USTA board meeting from 8 to 10 a.m. that concludes the Congress. There will be coffee service, but not morning breakfasts. ANOTHER SLOTS PUSH IN OHIO Track owners and developers are banding together in Ohio, seeking a November referendum on slots. According to a story on the Cleveland Plain Dealer’s Cleveland.com, track operators have talked with representatives of Forest City Enterprises, the real estate giant, and developer Jeff Jacobs and his Nautica Entertainment Complex, about a campaign to bring a casino to downtown Cleveland. The Web site said slots supporters would probably have to spend more than $10 million on the campaign, given the broad opposition to the plan in the legislature and by Ohio leaders. It said track operators believe polls that show Ohioans are increasingly receptive to Vegas-style gambling now that the state is about to be surrounded by slots states when Pennsylvania comes online. The story said track interests favor funneling the state’s share of slots profits to scholarships for high-achieving Ohio high school students. It also said that Cleveland mayor Frank Jackson is aware of the proposal and plans to meet with developers and track operators. An interesting sidelight was the role of Penn National Gaming, which has an Indiana riverboat 20 minutes from downtown Cincinnati and could oppose Ohio slots, but also has a track in Toledo that could get them. BLAGOJEVICH AND KENO IN IL Gov. Blagojevich of Illinois has been talking about funding part of his $3 billion borrowing plan by allowing keno games in bars and restaurants around the state. The idea has drawn some cynicism and sarcasm from columnists for major newspapers, including Mark Brown of the Chicago Sun-Times. In a graf titled, “Keno-nomics 101,” Brown quoted a source as saying, “So we’re going to keep busting taverns that have video poker and small-time bookies who take bets on Super Bowl Sunday, but we’re going to promote keno as a fresh and fun pastime?” Blagojevich wants to fund $500 million in school construction with keno, saying he equates it to church bingo. Brown wrote, “If that’s what the governor really thinks, then somebody might want to see what’s in the communion chalice at his church.” 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 17, 2006 STEPHANIE BLACK TOP GROOM TOUGH TALK IN AUSTRALIA Stephanie Black, a caretaker in the Alvin Miller stable that races at Hoosier Park and Indiana Downs in Indiana, has been named Caretaker of the Year by Harness Tracks of America and Hanover Shoe Farms, co-sponsors of the annual competition. The Tasmanian Gaming Commission has issued a license to Betfair, the English betting exchange, and Feb. 7 is set for the opening of operations in Hobart, the Tasmanian capital. While not unexpected, the licensing drew a sharp and angry response from the chairman of the Australian Racing Board, Andrew Ramsden. He wrote, in part, “It comes as no surprise, but it cannot fail to leave a sour taste in the mouth of anyone who genuinely cares about the future of Australian racing. Of the places we would compare ourselves with: Hong Kong, Japan, Singapore, South Africa, France, the US, none of these countries have licensed betting exchanges and their racing authorities reject the betting exchange model of wagering. Within Australia, 7 states and territories have listened carefully to the racing industry’s integrity concerns and given a resounding ‘no’ to betting exchanges. One state has looked at the issue in purely selfish terms. It bears remembering that 99.9% of the intended business of any exchange licensed in Tasmania will be on races that are run in other parts of Australia. In effect, what Tasmania seems to think it can do is ‘come in on the grouter’ -- set itself up to take taxes and fee payments on the back of someone else’s efforts.” Ms. Black grew up in harness racing, and handles the duties of 10 people in a stable that maintains some 60 to 70 horses a year. She participates in the breaking of yearlings and the conditioning process, and the paddocking of the horses on race night. In her letter of nomination of Ms. Black, Tammy Knox wrote, “Stephanie is not in a position to be a high profile groom, but she is the type of groom that this business is built around -- a dedicated, horse-loving professional.” Mrs. Knox wrote that “Stephanie’s horses always look perfect...and it is nothing for her and Alvin to race five or six horses a night with just the two of them taking care of all the work necessary to get the horses raced. An HTA-Hanover committee of present professionals and executives in the sport, all former grooms themselves, chose Ms. Black from this year’s nominees. All nominees will receive handsome silk jackets and certificates of honor, and Ms. Black will receive an oil painting of herself and her favorite horse, painted by HTA’s resident artist James Ponter. SIMULCAST CONFERENCE SET The 2006 International Simulcast Conference, presented annually by Thoroughbred Racing Associations, Harness Tracks of America, American Quarter Horse Racing and the American Greyhound Track Operators Association, will be held Oct. 16-18 at the Sheraton Society Hill Hotel in Philadelphia, near Independence Hall and the Liberty Bell. The event draws more than 350 racing employees each year. Ramsden’s letter was accompanied by notes to editors, pointing out that most Australian states have in place legislation that prohibits advertising by any wagering operator that is not licensed in that state, legislation that was upheld as constitutionally valid by the Federal Court in 2003. Last year Victoria introduced legislation making it a criminal offense to publish Victorian race fields without authorization. And Queensland authorities have announced that its Interactive Gambling Player Protection Act makes it unlawful for residents to use a betting exchange, regardless of where it is licensed. 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 18, 2006 KY WANTS INTERNET HUBS HIGH COST OF FRATRICIDE The Kentucky Racing Authority, hoping to attract betting hubs to the Bluegrass, has drafted regulations that would allow up to four international hubs to operate in the commonwealth. Jim Gallagher, executive director of the Authority, called hubs “the greatest area of growth as far as a revenue stream.” Inspiration for the idea came from Oregon, where handle during the third quarter of 2001 was $23.2 million, and from the third quarter of 2005 had ballooned more than tenfold, to $262.9 million. Bets by Kentuckians through TVG’s Oregon hub accounted for $119.8 million of that third-quarter 2005 number. Under the Authority’s proposals, applicants for a Kentucky hub would pay $200 a day and no more than 1% of bets handled by the hub. Oregon has an application fee that comes to $200 a day, with a tax of 0.25% of handle. Currently, in addition to TVG, Oregon hosts youbet.com, XpressBet Inc. and AmericaTab Ltd., which operates as winticket.com. The Kentucky General Assembly approved up to four hubs two years ago, and the regulations approved yesterday, Gallagher says, hopefully “will create a little bit of buzz.” He said the Authority would work with Kentucky tracks to see whether they could benefit from the hubs. Monticello Raceway, in a nasty battle with its horsemen for a year and a half, is paying for the bullets now. The horsemen, frustrated at what they call a lack of good faith in negotiating, used the Interstate Horse Racing Act to cut off out-of-state simulcasting 18 days ago. Since that time, recordline.com reports, handle has dropped almost $4 million compared with the same period last year. Since the first of the year, when the out-of-state simulcasts were halted, betting dropped from $6.14 million last year to $2.22 million this year. Monticello raised purses last year with VLTs, then cut them in half after the horsemen cut off the distant signals. Negotiations have stalled in the absence of horsemen’s attorney Joe Faraldo, who is taking time off, and the horsemen have withdrawn their lawsuit calling for a halt to milkshake testing. The horsemen, according to recordline.com, agreed to call off the suit after a meeting with track management and the New York Racing and Wagering Board, but no paperwork had been filed as of this morning at the Sullivan County courthouse, according to the Web site. POMPANO MOVES ON RACINO HTA member Pompano Park has taken its first steps on construction of its racino, demolishing the old outdoor bleachers that had been installed 40 years ago and had been severely damaged by Hurricane Wilma. The bleachers, at the east end of the grandstand, were razed and removed, and new electrical, water and sewer lines are being installed. Gov. Jeb Bush still hopes to derail slots next November, but Broward county’s four parimutuel operations, now legally enabled, cannot afford to sit idly by even though that threat exists. DARKNESS DESCENDS ON MD The economic sun is shining in Maryland, where the state is riding high on a $1 billion surplus with more expected this year, but fiscal prosperity casts an eclipse over chances of slots in the state. Gov. Robert J. Ehrlich Jr., who with his Senate president Thomas V. J. Mike Miller has fought long and hard for slots, now acknowledges that the previous “fiscal reality of the time made slots a more attractive option,” and says he still thinks slots will pass but not until after the 2006 elections. Pennsylvania, Ehrlich says, “is going to clean our clock.” An eastern shore Republican leader, Sen. J. Lowell Stoltzfus, says, “With the economy the way it is, politically it’s not going to happen.” 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 19, 2006 NJ TEST FOR EPO ANTIBODIES FARINELLA LEAVING PRAIRIE The New Jersey Racing Commission has joined New York in testing for antibodies for erythropoietin, better known as EPO. The commission approved the test at a meeting yesterday at which it also approved the Meadowlands’ proposal for the Cantor-Index Choose Six and Group Bet, two exotics that add flexibility and simplicity to the betting menu. The Choose Six, an extension of the Pick Six, permits the bettor to choose the six races on which he or she wishes to wager. The Group Bet allows patrons to choose between two groups of horses, “A” and “B”, in a race. If a horse not included in either group wins, the bettor loses. The commission once again ducked the issue of advertising on competitors’ clothing, saying it “required further research on how this is handled in other states.” It would seem that a few phone calls could make that determination, but racing commissions do not work that way. They prefer pondering. Bob Farinella, who built HTA member Prairie Meadows into a major racino and racetrack in 12 years as president and general manager, has resigned and will leave the track on Feb. 17. Farinella, 60, has clashed with board members over expansion of the casino and track, and the board cut $9 million from his proposed plans for a hotel and national restaurant at the track. In a letter to board chairman Jack Bishop, who will take over as acting CEO until a replacement is hired, Farinella wrote, “I have spent almost 12 years, or 20% of my life, dedicated to growing the economic return to this community in the way of jobs, tourism, horse racing, gaming and entertainment. I am proud of my accomplishments which have brought Prairie Meadows to the prestigious and profitable position it currently enjoys. I am proud of the over 1,400 jobs we have created and the tremendously talented people who fill them. I am especially pleased at having been able to eliminate $90 million of original public debt on our facility as we began this venture, and exceedingly pleased at the over $340 million we have been able to return to this community for charities, human services, and public works.” Bob will make a farewell HTA appearance as a panel member on racinos and tracks at Bellagio Feb. 8. HOW BOLD FOR A FRESHMAN! Also in New Jersey, where the state bows to every whim or wish of the Atlantic City casinos, a first-term Assemblyman has had the temerity to challenge the mighty casino kings of the boardwalk. Jim Whelan, a Democrat from Atlantic City, of all places, which makes his courage and convictions all the more impressive, has introduced legislation that would remove the casino exemption from the Smoke-Free Air Act that former governor Richard J. Codey signed Sunday as his final act in office. Whelan says his move “was very simple. You treat everyone the same.” Three state senators introduced similar legislation in that body, and one of them, Sen. Shirley Turner, a Democrat, put the issue bluntly. “It’s a horrible message,” she said, “ to say it’s OK for casino moguls to poison the lungs of their workers with secondhand smoke because they have the political clout to buy a deadly exemption.” NO SLOTS IN KY, MD BUDGETS The governors of Kentucky and Maryland, with both states prosperous at the moment, have not included slots revenue in budget messages released this week. Kentucky governor Ernie Fletcher does not approve of expanded gambling, and Michael Busch, speaker of the House in Maryland who has led the fight against slots for three years, told the Baltimore Sun, “Not only is this an election year, but the fact that you have the unemployment rate that you have and the surplus you have, I don’t know how you make a case for slots.” 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 20, 2006 2D COMMISSION RESIGNATION EHRLICH TRIES AGAIN IN MD The Pennsylvania State Harness Racing Commission has lost a second commissioner to resignation. Richard J. Bolte Sr., who had come under severe fire from state representative Mike Veon, resigned yesterday, leaving chairman Roy Wilt the only member of the original commission whose actions in rejecting new track applications drew Veon’s ire. Commissioner Ed Rogers had resigned earlier, saying he wished to return to racing harness horses. Bolte, also a longtime harness racing owner, was born in Philadelphia and lived the first 35 years of his life there. He currently lives in Moorestown, NJ, across the Delaware River from Philadelphia, and Mr. Veon made that an issue, although Bolte said there is no requirement that a commissioner live in Pennsylvania. Veon became incensed after the former commission of chairman Wilt, Rogers and Bolte declined to license Valley View Downs, a proposed $200 million harness track that Centaur of Indiana wanted to build in Beaver county, part of Mr. Veon’s district. He asked governor Ed Rendell to remove all three commissioners, raising in particular an issue about transfer of ownership in a horse that Bolte made to his wife. Bolte said the transfer was perfectly legal, and that his wife had the right to own horses. Bolte, 71, has been active in harness racing for 40 years. The owner of BDP International, a Philadelphia shipping firm that employs nearly 600 people at four locations in Pennsylvania, he made a point in announcing his resignation that “everything I did as a commissioner was legitimate,” and he said he enjoyed his 13 months as a racing commissioner. He was appointed by governor Rendell in December 2004, and in leaving he gave what could be a valedictory for racing commissioners. “It got too political,” he said. Losing two knowledgeable horse owners like Ed Rogers and Richard J. Bolte Sr. is a blow to harness racing in Pennsylvania. Undaunted by three previously unsuccessful attempts, and courageous in standing behind his beliefs in an election year, Gov. Robert L. Ehrlich Jr. is including a slots proposal for Maryland tracks as part of his 20-point legislative package. Although the Baltimore Sun noted that “another defeat of slot machines, the governor’s solution to school construction needs, could prove a liability in November’s election,” Ehrlich is determined to do what he thinks is right. A spokesman said, “The governor made a commitment to the citizens of Maryland and our horse racing industry to see this through. He’s not naive about the speaker’s (Michael Busch) unwillingness to negotiate or pass a consensus bill, but this is a commitment the governor made and wants to keep.” The governor’s bill would authorize up to 15,500 video lottery terminals at six locations, including HTA member Rosecroft Raceway, Pimlico and Laurel, and a track to be built in Allegany county in western Maryland. Ehrlich says competition from neighboring states, particularly Pennsylvania, will cost Maryland money if slots are not introduced. He is proposing license fees of $3 million for 500 slots, and thinks $91 million could be raised from slots taxes and fees for the state’s Education Trust Fund. NEW SLOTS BOOST IN BOSTON A report commissioned by the state treasurer of Massachusetts -- who is not an advocate of slots -says state citizens are spending more than a billion dollars a year in Connecticut and other gambling venues. State treasurer Tim Cahill released the Christiansen Capital Advisors’ $75,000 report yesterday, and HTA director Gary Piontkowski of Plainridge Racecourse told the Boston Herald, “I read the summary with a big smile. I can’t understate how big a deal it is. This is what we have been looking for, an independent agency such as the lottery doing a study.” 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 23, 2006 SCRATCH SPECTOR AT VERNON MD RUNNERS QUARANTINED That would seem to be the message from Utica, where a federal bankruptcy judge rejected last minute maneuvering by Eric Spector’s lawyers and financial backers to stay in the race for Vernon Downs. The judge, Stephen Gerling, denied a motion by Oneida Entertainment, Spector’s company, that would have enabled it to split one company favorable to its cause from the group of creditors who overwhelmingly voted in favor of the Jeff Gural plan. Oneida by law needed at least one of four groups of creditors to approve its plan, but all four rejected it. Oneida wanted Gerling to consider VIP Structures, a lone company that supported its plan, to be considered a separate group because it had “unique capabilities” to take part in future construction at Vernon. Gerling called that argument “without merit,” saying there was no evidence that VIP is or was the only entity in central New York with the expertise to carry out track construction. An outbreak of equine herpes virus at Pimlico in Maryland has resulted in a quarantine and bans at other tracks. After 11 confirmed cases and two euthanizations, all 535 runners at Pimlico were confined to the track, and the New York Racing Association announced Friday that it will ban all shippers from the state of Maryland until further notice. No reports have mentioned standardbred problems, but Dr. David G. Zipf, the veterinarian for the Maryland Racing Commission, said there has never been a case of cross-species transfer from the virus, but said it could be undergoing DNA changes that make it stronger. “The severity of the occurrences are becoming more prevalent and this is scary,” Dr. Zipf told the Washington Post. HTA member Rosecroft Raceway, in Oxon Hill, Maryland, a suburban of Washington, has had no reported cases, but is taking precautions including a requirement that all horses shipping in for racing have a current veterinary certificate vaccination against the disease, according to director of operations Mary Manney. Gerling chastised Oneida, saying, “The court intends to make it clear that it cannot and will not condone what appears to be continued ‘gamesmanship’ on the part of Oneida, which arguably could go on indefinitely. Thus, the court will look skeptically on any subsequent efforts by Oneida to file another modification of their amended plan in order to gain acceptance.” In another development in the seemingly never-ending Vernon matter, horsemen who disagree with attorney Joe Faraldo’s $9.6 million lawsuit that could prolong the matter further, have gained the ear of media. The Oneida Dispatch, in a long article, quotes members of the newly formed Vernon Downs Harness Horse Association, one of whom --Gaetan (Gates) Brunet, called the Faraldo suit “the straw that broke the camel’s back.” Brunet says there is no way that travel expenses could amount to the $8 million difference between actual lost purses of $1 million and the suit claim. FEDS PLAY HARDBALL ON WEB The United States attorney’s office in the eastern district of Missouri -- John Ashcroft country -- has reached an agreement with The Sporting News, the baseball bible, to settle charges of aiding and promoting illegal gambling. The Paul Allen-owned publication has agreed to pay a $4.2 million fine and complete a three-year public service campaign valued at $3 million. The feds said the newspaper aided Internet betting by publishing and broadcasting advertisements for online casinos overseas. The Missouri U.S. attorney, Catherine L. Hanaway, called such ads “analogous to advertising on behalf of drug dealers and child pornographers.” That gross exaggeration is a very long stretch, even for someone in Missouri. 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 24, 2006 BACK AND FORTH IN POMPANO ANYONE WANT TO BET ON THIS The road to gold is strewn with rocks, as HTA member Pompano Park is discovering. Having cleared the boulders of bureaucratic messing around in the state legislature and governor’s office, the track now is encountering problems with its hometown, Pompano Beach. First the city announced it planned to tax each of Pompano’s 1,500 planned machines $250, a $375,000 hit. After general manager Dick Feinberg met with the city manager and pointed out that the fee for a pinball or arcade machine is $30, the city manager said that the city should slash the proposed fee to $50 “which more accurately reflects the cost of regulating slot machines.” The mayor of Pompano Beach says he is getting two different stories. A county commissioner whose district includes Pompano Beach thought $250 a machine “did not strike me as enormous,” and wants Pompano Park to fund construction of additional lanes on Powerline Road, the main thoroughfare that runs north and south adjacent to the track. Commissioners are to vote on the fee issue tonight. The people who want to take over the New York Racing Association, and NYRA itself, are engaging in a talkfest today in Albany, the first of two scheduled on the subject. Those left out of the discussion, like attorney Neil V. Getnick, who is offended that his law firm was not invited to the confab after serving as federal monitor of NYRA, are complaining. The speakers include NYRA’s president Charles Hayward, potential NYRA owner Frank Stronach, thoroughbred horse leaders, a large delegation from Saratoga Springs, Marylou Whitney, speaking from her home in Florida, and those who expansively call themselves Friends of New York Racing. The word “racing,” when used in New York, refers only to thoroughbred racing. We will wager a bob or two that in the two days of chatter, today and tomorrow in New York City, the words “harness racing,” will not be heard, although the state of New York has six harness tracks, and one under construction. Anyone want to cover that bet? ANOTHER CHALLENGE FOR ISLE Isle of Capri, which owns Pompano Park, has other challenges larger than its slots fee. It is bidding for the sole casino license in Pittsburgh, offering to built a new stadium for the Penguins of the National Hockey League if it gets the license. Yesterday a rival for the license, Harrah’s Entertainment and its partner Forest City Enterprises, launched a bomb, announcing it intended to build a new ‘mini-city’ if it got the casino license. Harrah’s plans a $1 billion makeover of the Station Square neighborhood, including a $512 million casino as big as seven football fields; riverside restaurants and shops; a 1,200-seat event hall, a two-story sports bar overlooking the city; and up to 1,200 condominium units. Charles Hayward, incidentally, is supremely unhappy to find that the bailout legislation passed by the legislature includes a provision to raise takeout 1% to cover the loan. Hayward says, “We will not recommend or increase takeout without approval of the rewards program,” a plan to provide rebates to big bettors to keep them ontrack rather than off. Whether he can keep his word will depend greatly on whether he can get the $20 or $30 million without the raise. The legislation claims the takeout increase is consistent with a deal NYRA shook hands on at the end of last year, and the Albany Times-Union capitol bureau writer James Odato says “the deal indeed shows that provision.” Elsewhere in New York, after the Bureau of Indian Affairs announced it would not take any lands into trust if tax liens were on them, the Oneida Nation offered to pay Madison and Oneida counties $20 million in back taxes. 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 A SETTLEMENT AT VERNON January 25, 2006 The Syracuse Post-Standard reported this morning that an agreement had been reached in U.S. Bankruptcy Court in Utica. Oneida Entertainment, the Eric Spector-promoted suitor for Vernon Downs, has agreed to withdraw its plan to bring the track out of bankruptcy and withdraw its objections to Jeff Gural’s Vernon Downs Acquisition group to buy the track. In return, Oneida Entertainment will become an investor in the Gural group. Lee Woodward, bankruptcy lawyer for Vernon’s parent, Mid-State Raceway, told the Post-Standard, “They get to be a part of ownership. In exchange, they drop everything and become a team player.” That leaves only Joe Faraldo and his $9.6 million claim for the Harness Horse Association of Central New York as an impediment to getting Vernon Downs back on track, literally. Not all horsemen racing at Vernon share enthusiasm for the suit, including members of a second horsemen’s organization founded recently. A Friday hearing is scheduled. broaden this to look at licensing fees.” Stirling also discussed specific dollar issues at the meeting. He said Calder Race Course received $300,000 in host fees from TVG in 2004, but that another provider had paid TVG $600,000 for rights to the exclusive signal. He claimed horsemen got nothing from the $600,000 rights fee. Bloodhorse.com, in reporting the HBPA meeting, quoted Ken Kirchner, senior vice president of product development for the NTRA, as telling the horsemen, “You’re in control of that product (simulcasting) and have legal standing under the Interstate Horseracing Act. We need a decision on how to proceed in the international area. We cannot leave that decision to others,” whoever “others” might be. Ed Martin, president of the Association of Racing Commissioners International, told the horsemen, “If you’re not getting your fair share or don’t think you’re getting your fair share, shame on you. Why did you price the product the way you priced the product?” Now you know why you have an HTA, and why the runners have TRA. AND MORE LEGAL ACTION ROUND 1 A WIN FOR POMPANO The National HBPA is thinking about a class action suit to stop piracy of signals, although it is not clear here who they plan to sue. The HBPA board meets today and is scheduled to discuss a Louisiana resolution, which the HBPA executive committee approved yesterday, under which that state volunteered to take the lead on the issue. Sean Alfortish, the Louisiana HBPA president, said, “The resolution is the first step in stopping piracy. We need to find out how to go about recovering billions of dollars we’ve lost to illegal wagering over the years and continue to lose on a daily basis.” The proposal calls for HBPA lawyers to study legal remedies, with a class action suit or injunctive relief possibilities. Kent Stirling, executive director of the Florida HBPA, told colleagues, “We’re being stolen from within our own country. We need to Commissioners in Pompano Beach yesterday approved a $50 occupational license fee on each slot machine installed at Pompano Park, instead of the $250 proposed two weeks ago by the Pompano Beach city manager, who relented before yesterday’s meeting. The proposal has to pass a second final approval two weeks from now. Pompano Park general manager Dick Feinberg said of yesterday’s vote, “At this time, we’re okay with the commission’s actions.” OPENING LINE FOR A PANEL Frank Stronach provided reporters a line yesterday that should launch the Feb. 8 Racing Congress panel on “Racing’s New Partners” to a lively start. He said of casino operators, “They don’t really care about horse racing. It’s a nuisance to them.” 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 26, 2006 ALL BUT THOSE WHO COUNT DEAL IN DELAWARE NORTH After two days of hearings at which everyone except the barber who cuts George Pataki’s hair had their say, racing moved on bravely in New York today. Yesterday’s New York City hearings produced strong objections to splitting up the tracks, as suggested a day earlier; a demand for legislation to allow rebates; and an interesting suggestion by Craig Fravel, from distant Del Mar, that New York might consider the highly successful Del Mar model, where the track leases the racetrack from a state agency whose board is appointed by the governor, and all proceeds are reinvested in the track. Fravel said the process is “free of political meddling and attracts good employees.” Perhaps the most telling comment on the two-day talkfest was that of James M. Odato, Capitol bureau chief for the Albany Times-Union. He led his story, “A state panel considering the first major overhaul of the thoroughbred racing industry concluded two days of hearings Wednesday without Assembly-delegated members listening to one minute of testimony or asking a single question.” Odato then explained why. Assembly Speaker Sheldon Silver hasn’t got around yet to naming his three appointees to the panel, as required by a law passed overwhelmingly in the Assembly and Senate last year. So as all of the speakers talked Tuesday and yesterday, there were three empty chairs at the panel head table. J. Patrick Barrett, chairman of the Ad Hoc Committee on the Future of Racing, said, “We’re moving ahead,” but declined comment on Silver’s tardiness in making appointees. “I’m not going to speculate on the speaker’s motives,” Barrett said. “I’ve never met the man.” Might be a good idea, Mr. Barrett. He has a lot of clout in New York state, and will play a large role in what happens to your committee’s recommendations. A spokesman for Silver said the appointees will be made “in due time.” This is, after all New York. One previously unannounced development came out of the New York hearings. That was the declaration by Delaware North, the huge Buffalo-based entertainment and food service giant, that it expected to be among the bidders for the New York Racing Association franchise. A Delaware North executive, Christian Riegle, told the Buffalo News, “You’ll definitely see us as part of the pack, either individually or as part of a group.” Riegle, president of Delaware North’s Finger Lakes track, said, in a pointed reference to NYRA’S financial problems, “We’ve owned Finger Lakes racetrack since 1964. We’ve made a profit every single year -and NYRA has been unable to do that, arguably with the three best properties in the biggest market. So we see a lot of opportunity.” Delaware North is equipped financially to make it a formidable player in any bid for NYRA. It owns Mountaineer Park and racino in West Virginia, the Boston Gardens, operates the racinos at HTA members Fairgrounds Gaming and Racing in Hamburg, NY, and Saratoga Gaming and Racing in Saratoga Springs, and food concessions around the world. It has nearly $2 billion in annual revenues and almost 40,000 employees. Riegle, in announcing Delaware North’s candidacy, prophesied, “Whoever ultimately has the franchise for those three racetracks will ultimately be setting the agenda for the next 50 years of racing in New York.” SAY IT AIN’T SO, JOE Horsemen and management at Vernon Downs are hoping for the possibility of an April start for live racing following a deal between Jeff Gural’s group and that of Eric Spector, but a Vernon attorney warned that if Joe Faraldo’s lawsuit claim of $9.5 million is approved by the federal bankruptcy judge, he does not think Vernon will ever open again. Your move, Joe. It’s Vernon Downs or you. 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 27, 2006 KY MOVES ON THE DOUBLE DIP AN OMBUDSWOMAN IN OHIO For years, trainers and other agents in horse racing often have milked the cow at both ends, taking commissions from owners to buy horses and from sellers as well. Rep. Denver Butler, a Louisville Democrat in the Kentucky House, introduced a bill this week to stop the practice. The Butler bill would require bloodstock agents who represent both the buyer and seller in a transaction to disclose that beforehand, and disclose his commissions from both sources. Some strong thoroughbred voices were heard on the subject. Satish Sanan, owner of Padua Stables in Ocala, FL, and one of thoroughbred racing’s major figures, said dual representation has boosted the cost of buying horses for him “many times,” and he said the arrangement “makes you sick.” He says he hopes the Butler bill passes. Sanan formed an Alliance for Industry Reform several years ago, but it relies mainly on self-enforcement. It released an ethics code in 2004 which called dual representation “an infrequent, but abhorrent” practice. We agree totally that it is abhorrent, but we doubt seriously that it is infrequent. The issue gained publicity last year when Jess Jackson, owner of the Kendall-Jackson winery, filed a lawsuit in San Diego alleging that former agents had inflated prices of horses he bought both privately and at public auction, including the sport’s biggest auction at Keeneland in Kentucky. He alleged that when he bought the dam of Eclipse champion Afleet Alex, he paid $750,000, and then learned the bloodstock agent involved had paid the owner $600,000 for the horse. The case has not yet come to trial. Jackson, Robert Clay of Three Chimney Farms, and Bill Casner of WinStar Farm formed a Horse Owners’ Protective Association this month. Bloodhorse.com reports that Jackson met with Kentucky Senate Republicans yesterday to discuss the Butler bill, and has hired a lobbyist to push it. Ohio Racing Commission chairman Norman Barron has appointed an ombudsman, or more accurately an ombudswoman, to the commission’s finance committee to insure that the betting public is given an opportunity to provide input before the committee contemplates any action to rectify a shortfall in revenue that has and will impact commission operations. The lady is Lisa Harris Hollister, an attorney, who will represent the citizens of the state. DON’T MESS WITH THE OWNER That’s our advice to top trainer George Teague, who is training three trotting 2-year-olds and two pacing 2-year-olds for former heavyweight champion George Foreman. Watch that right, Teague. MTR TURNS DOWN THE BOSS A Special Committee of the board of directors of MTR corporation has rejected the proposal of the company’s top management to acquire all the stock of MTR. The committee said the proposal did not sufficiently enhance stockholder value, but it invited president and CEO Ted Arneault to submit an improved offer. Speaking of MTR -- we know, we know -- that it, and not Delaware North, owns Mountaineer Race Track and Gaming Resort in West Virginia. We knew it, but we carelessly attributed ownership of Mountainer to Delaware North in an item yesterday on Delaware North’s announced interest in acquiring the New York Racing Association. Delaware North probably wishes it owned Mountaineer, but Ted Arneault is happy with it, along with Scioto Downs and Jackson Raceway and Binion’s Gambling Hall in Las Vegas and on and on with his holdings. Our apologies to both companies for the error. As the New York Times loves to say, it was an editing error. You can call it a senior moment if you wish. 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 30, 2006 ANOTHER VERNON HEARING A NEW WEAPON LOOMS This can’t go on much longer, now that Jeff Gural and Eric Spector and their groups have worked out their differences, and the Harness Horse Association of Central New York lawsuit seems to be the only obstacle to Vernon Downs reopening. Federal bankruptcy judge Stephen Gerling has called another hearing tomorrow morning at 10 a.m. in U.S. Bankruptcy Court in Utica, and could rule on the horsemen’s suit then. Vernon still is hoping it might be able to resume live racing by late April or May. A U.S. judge in New York, in allowing the prosecution of thoroughbred horse trainer Gregory Martin and former harness trainer Rene Poulin to move forward, may have provided a new and powerful weapon against trainers who administer performance-enhancing drugs to horses. Judge Miriam Goldman Cedarbaum denied a motion to dismiss the indictments in the case, saying that the administration of illegal drugs constituted conspiracy to commit wire fraud, within the meaning of federal statutes. If this allegation of wire fraud by the prosecution is proved at trial, racing might have the weapon it needs to rid itself of those who flaunt its rules. It makes the Poulin case worth watching, and this could be a significant legal breakthrough. A DISGRACE IN FLORIDA The state of Florida, which has no racing commission but something called the Division of PariMutuel Wagering that may or may not know much about racing, caught the full blast of veteran racing writer Dave Joseph today. His column in the widely read Sun Sentinel, on the Divison asking a court to nullify the agreement of Gulfstream and Calder to exchange simulcast signals, was called “mind-boggling” by Joseph, in view of the fact that the agreement not only would bring additional revenue to the state and 90 new jobs to Calder, but also relieved pressure on fans while Gulfstream gets its new plant bug-free and fully operational. Joseph wrote, “These are some of the ways track officials, horsemen and thoroughbred race fans described the Divison of Pari-Mutuel Wagering’s decision: Defying logic....lacking wisdom...cruel...ignorant of the issues.” We concur, in all respects. DELAWARE NORTH GOES GAME The concession giant Delaware North, which last week expressed interest in the NYRA franchise, now makes clear it is ready to go for the whole shooting match. It says it would like to buy not only Belmont and Aqueduct, but Saratoga Racecourse as well. And it has the financial resources to do it. PRAIRIE AWARDS $1.8 MILLION HTA member Prairie Meadows Racetrack and Casino has announced its 2006 awards to 142 nonprofit organizations in its Des Moines, Iowa, area. Recipients of the $10,000 and up grants are chosen by a committee of 18 community people, and since 1995, when Prairie eliminated its debt, the track and its racino has contributed a staggering $285 million to promote education, economic development, agriculture, jobs and tourism in Iowa. The top award this year is a $250,000 grant to the Greater Des Moines Community Foundation. SARATOGA ISN’T OKLAHOMA The state finance director of Oklahoma has drastically reduced revenue expectations from track and Indian gambling, dropping the number from $53 million to $19.7 million. In Saratoga Springs, home of HTA member Saratoga Gaming and Raceway, it was announced that some 50,000 players a week gave the racino there gross earnings of $103.6 million last year, with almost two-thirds going to the state. 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 HORSEMEN’S SUIT IS DENIED Vernon Downs moved a step closer to racing yesterday, when U.S. Bankruptcy Judge Stephen Gerling denied the $9.6 million claim of the Harness Horse Association of Central New York. The track could move even closer today at another hearing in Utica where Gerling could rule on confirmation of the plan submitted by Jeff Gural and his associates. In denying the $9.6 million lawsuit, Gerling ordered Mid-State Raceway to deposit $384,000 in purse money in a purse reserve fund account within 10 days. Mid-State apparently expected that, its attorney having said last week that he considered a claim in that vicinity to be reasonable. Gural said that once the judge confirms his plan, he and his Texas-based backers would be able to close in 30 days, and that Vernon could be back in operation in another two or two and one-half months after closing. That would put a resumption of racing somewhere around early or mid-May. TAKE A LOOK AT THESE $$$$ Saratoga Gaming and Raceway marked its second anniversary this week -- hard to believe -and so are the numbers it is posting. People bet $1.3 billion there during the second year of operation, up 14% over the first year. $1.2 billion, or 90%, was paid out in winnings. Gross gaming revenue was $103 million, with 56%, or $55.2 million, going to New York state education. Thirty-four percent, or some $35 million, went to the track, with 5% of that earmarked for marketing. The New York State Lottery got 10%, or $10.3 million, for administering the machines. The numbers on track handle were interesting and significant. In 2003, before slots, on-track handle was $6.1 million and total handle $31.6 million. Those figures increased to $8.8 million and $39 million during the first year of slots. They slid back to $8.3 million and $37 million last year, still an increase of some 18% over 2003. January 31, 2006 General manager Skip Carlson noted that the track was closed on Mondays and Tuesdays in 2005, but had operated on those days throughout 2004. The racino has 1,324 VLTs, and the executive director of the Saratoga Convention and Tourism Bureau, Gavin Landry, acknowledged what they meant to Saratoga Springs. “You have to respect those numbers,” he said. “It’s a nice year-round entertainment option we have to offer our convention and motorcoach group buyers.” In nearby Connecticut, meanwhile, the Mohegan Tribal Gaming Authority, which owns HTA member Mohegan Sun at Pocono Downs, announced record first quarter gaming revenues of $315.1 million, up 9.5% over the same period a year ago. Figures for Pocono Downs and its five OTBs showed racing revenue of $6.8 million, net revenue of $7.6 million, and a $2 million loss from operations, which included $1.1 million in preopening costs and expenses of its proposed 400,000 square-foot gaming and entertainment facility under construction. Current plans call for 2,000 slot machines, 3 full service restaurants, a 300-seat buffet, a 15,000 square-foot food court, several bars and lounges, an 18,000 square-foot nightclub, a “Kid’s Quest” center, 20,000 square-feet of retail space, new parking facilities and an enhanced employees service area. Estimated cost for the facility is between $140 million and $160 million. DELAY, ABRAMOFF AND RACING Interactive gaming news reports that the shadows of Tom DeLay and Jack Abramoff hang over racing, their involvement with the Internet Gambling Prohibition Act of 2000 causing Republican lawmakers to bring online gaming prohibition bills back front and center. The Washington Post first reported that an aide to DeLay had played a role in defeating anti-online gaming legislation. 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 February 1, 2006 ‘TOOTH AND NAIL’ AT VERNON YONKERS A GROWING GIANT You only thought the Vernon Downs situation was resolved when U.S. bankruptcy judge Stephen Gerling threw Joe Faraldo’s $9.6 million lawsuit on behalf of the Harness Horse Association of Central New York out of court. Now Joe is promising to fight “tooth and nail” if Jeff Gural won’t renew that association’s contract, which expires at the end of this month. Gural says he won’t renew it, favoring instead a new horsemen’s group called the Vernon Downs Harness Horsemen’s Association, which claims it has wooed away 80% of the old group. Faraldo questions those numbers. Ken Jacobs, president of the new organization, says he will work with Gural to get racing resumed as quickly as possible, which Gural thinks could be mid- to late May. “I want to see racing back at Vernon” Jacobs says. “I don’t want to put up a stop or roadblock for anyone who is willing to put up $50 million. Oneida Entertainment, the company formed by Eric Spector that sought the license but yielded in the face of adverse court rulings and decided instead to join Gural as investors, announced it was prepared to contribute $20 million to the reopening and operation of Vernon Downs. Back in its glory days, Yonkers Raceway was known as The Giant of Trotting. It may be again, as its $225 million rebuilding and renovation speeds ahead. Tim Rooney and Bob Galterio hope to open the new facility by Nov. 15, and Galterio says, “No one in the country has opened a facility like this with this many machines. It will be the fourth largest gaming company in terms of numbers of machines.” When fully operational, Yonkers will have 5,500 VLTs, and expects 29,000 a day to visit the track and racino. VOTE ON SPA EXPANSION The Planning Board of Saratoga Springs, NY, votes tonight on allowing expansion plans for Saratoga Gaming and Raceway to move forward for review. The chairman and at least one member favor the idea, but both expressed concerns as to the New York Lottery Division conducting “a legitimate, honest discussion” on the issue. Bob Israel, a member of the Planning Board, said he thought all the Lottery Division wanted was “to make money....they don’t care if the racino is building a little Atlantic City out there.” City officials have acknowledged the positive role of the racino as a Saratoga Springs tourist attraction. A NEW ONE ENTERS LITANY Todd Pletcher, thoroughbred racing’s Trainer of the Year, is battling a drug suspension in New York. Sound familiar? Well, yes, but there is a new twist. Pletcher has retained the New York City law firm of Gibson, Dunn & Crutcher and filed a lawsuit against the New York State Racing and Wagering Board seeking dismissal of his 45-day suspension and $3,000 fine. The drug in the case was mepivacaine, a class 2 painkiller, and the 25-page document offers different scenarios as to how the Pletcher horse could have gotten it. One of them is that a veterinarian in an adjoining stall tapped a syringe to clear air out of the instrument, and the mepivacaine became an aerosol and was inhaled by Pletcher’s horse. No comment. Next case, please. AN OPTION AT VEGAS AIRPORT For those unfamiliar with McCarran Airport in Las Vegas, it has a very long, but fast-moving and efficient cab system. That does, however, require dragging your bags through the winding maze. If you prefer, there are a number of limo services, among them Alan Waxler Group, 702-792-8000; Fox Limousine, 702-597-0400; and CLS, 702-7404545. The cab ride is 10 minutes, the fare $15 or so, depending on traffic (always) on Las Vegas Blvd. 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 February 2, 2006 INTERESTING VERNON NOTE NEW HARNESS IMMORTALS A feature on News10Now, aired in Vernon Downs home area in central New York, carried an interesting note on the formation of the new horsemen’s association there. Madeline Bailey, a 30-year member of the old group, the Harness Horse Association of Central New York and a founder of the new Vernon Downs Harness Horse Association, was quoted on the show. Speaking of the $9.6 million Central lawsuit that was tossed out of court, Bailey said, “We were really disappointed with the lack of communication with the group. We were never told anything and the last thing that really drove me to start it (the new association) was the $9 million lawsuit. I thought that never should have been. Nobody ever asked anyone about it and they went right ahead and did it.” Ms. Bailey said she was confident there would be racing at Vernon, “if we get all the differences resolved with the organizations.” The Hall of Fame in Goshen has announced the latest entries into its Immortals Hall, greats of the sport no longer with us. The newest inductees, to be honored at Goshen July 2, are Canadian trainer John G. Hayes Sr.; William R. (Bill) Hayes, who for many years presented the Hambletonian at DuQuoin, IL; Marty Tananbaum, former owner and operator of Yonkers Raceway; and the pacers Little Brown Jug and Romeo Hanover. GOODBYE, GOODBYE TO ROME Rome, New York, that is. The Friends of New York Racing, that self-annointed group that included many friends from afar, is folding its tent and departing, it’s mission accomplished, according to president Tim Smith. He said, “Friends of New York Racing was not ideally suited to be the permanent entity to do the broad-based industry advocacy long-term.” He also said some members now had “different priorities,” presumably as the NYRA land grab turns into the put-up stage. A FINAL NEW YORK NOTE NYRA’s chief horse, identifier, Jim Zito, this week attributed “dedicated follow-up work and the department’s system of checks and balances” for correcting an ongoing mistake and “preventing its perpetuation.” That depends on your definition of perpetuity. The runner, Fire Dip, actually was a mare named Miss Stella, and had raced under the wrong name in all of her 27 starts. THE YUM YUM KY DERBY Well, not quite. It won’t be called that, but henceforth -- at least for five years -America’s most famous race will be known as The Kentucky Derby, presented by Yum Brands. Yum may not be known to all, at least until now, but it is a very big outfit, with 34,000 restaurants in more than 100 countries and territories. Churchill Downs’ release on the new branding agreement called it an “historic announcement.” I’m not sure “historic” and “yum” go together, but I extend congratulations and best wishes to both parties and wish them happiness and success with the Kentucky Derby, presented by Yum Brands. A WIDER VEGAS LIMO CHOICE Yesterday’s Executive Newsletter offered some limo choices in case you don’t want to stand in the McCarran Airport’s fast-moving cab lines on arrival in Vegas for next week’s Congress. Here is a full list of approved Bellagio limo services. The hotel itself uses CLS, 702-740-4545, but any of the others are okay. They are Bell Trans, 702739-7228; Paramount Destination Services, 702804-8095; Gray Line, 702-384-1234; Star Transit, 702-646-4661; KT Services/Coach USA, 702644-4133; Alax Waxler, 702-792-8000; Fox’s Limos (mini bus, holds 24 max) 702-597-0400; and ODS (On Demand Sedan), 702-8762222. 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 February 3, 2006 IMPORTANT USTA UPDATE DISPUTE IN W. VIRGINIA, TOO The United States Trotting Association is replacing its Race Track Support system, which supplies information for race office functions and production of program race pages, with new technology called e-Track. Executive vice president Eric Sharbaugh will present a brief update of the changes at HTA’s Committee of the Whole Tuesday morning, Feb. 7, at 10:30 a.m., in Bellagio Ballroom 6 at the Racing Congress in Las Vegas, and a more detailed explanation at USTA’s PariMutuel Committee meeting Thursday afternoon, Feb. 9, at 2:30 p.m. in Ballroom 3. All track operators are urged to attend the meetings. Indiana is not the only state where racing bills are creating concern. Two controversial bills affecting racing in West Virginia are up for consideration, one of them banning telephone account wagering, the other authorizing county referendums on gaming expansion at the state’s thoroughbred and dog tracks. The account wagering bill would ban tracks from any transactions that constitute “a financial account or line of credit for the purpose of account wagering,” and would prohibit them from possessing any equipment intended for use in electronic betting. INDIANA BILL PASSES SENATE A highly controversial bill that would require out-of-state tracks, particularly those in Kentucky, to make their simulcasts available to all tracks in Indiana, or none, passed the Indiana Senate yesterday, 32-18, and moves to the House for its consideration. The bill is supported by HTA member Indiana Downs but strongly opposed by HTA member Hoosier Park and its parent, Churchill Downs. Kentucky tracks make their signal available to both tracks and to Hoosier OTB outlets in Indianapolis, Merrillville and Fort Wayne, all good distances from Kentucky tracks, but Kentucky HBPA members exercised their rights under the Interstate Horse Racing Act of 1978 to bar the signals from going to Indiana Downs’ OTBs in Clarksville and Evansville, both near the Kentucky-Indiana state line and within the betting areas of Ellis Park and Churchill Downs. Kentucky horsemen say allowing popular signals from Keeneland and Churchill to go to Clarksville and Evansville will draw more bettors to those sites from Kentucky and In- d i ana, and they get less share of betting from the Indiana operations than from bets made in Kentucky. If the local referendum issue passes, citizens would have the right to end gaming in their areas if they chose. As things stand now in West Virginia, gaming plays too large a role and employs too many people for that action to be likely. SHUBECK MAKES MAGNA MOVE Drew Shubeck, general manager at Magna’s The Meadows and HTA’s director from that track, is moving southwest in a corporate switch to become general manager of Magna’s Lone Star Park in Texas. He will be missed by harness racing, and HTA wishes him well with the runners. PA GAMING HIRES ITS TOP COP Frank T. Donaghue, director of the Pennsylvania attorney general’s bureau of consumer protection, has been named chief counsel of the Pennsylvania Gaming Control Board. His appointment fills the last senior position open on the board. NO NEWSLETTER NEXT WEEK The entire HTA staff takes off this weekend for Las Vegas and the fourth Racing Congress. We’ll see you there, and there will be no Daily Executive Newsletter next week. In emergencies, call the Bellagio, 702-693-7171 and ask for convention registration desk #2. 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 February 13, 2006 HERE WE GO AGAIN DIGGING OUT IN PENNS WOODS We’re back from a highly successful Racing Congress that drew 600 racing executives and officials, and the Internet Boys are back at their desks in Washington conjuring up more stew on Internet betting. Rep. Bob Goodlatte, Republican of Virginia, is planning to introduce a new bill, perhaps as early as this week, that would amend the federal Wire Act and expand it to include cable, satellite, microwave and fixed or mobile facilities. It is hoped, of course, that racing will be exempted, and while the American Horse Council is optimistic, we remain nervous when these folks start messing with legislation in a Congress hostile to, or at least largely unconcerned about, racing. Rep. James Leach, Republican of Iowa, also is back with his Unlawful Internet Gambling Enforcement Act, which includes a prohibition against use of credit cards, wire transfers or any other banking instruments, and Leach is working with another Republican, Arizona’s Jon Kyl, who is still determined to pass his Internet prohibition bill. Fasten your seat belts. Not the snow blanketing Pennsylvania, but the slow moving political logjam of who gets what in distributing slot machines in the state. The seven Gaming Control Board members who will decide this ponderous decision have been unable to decide whether to allow distributors to operate statewide or break Pennsylvania into regions, the better to hand out political plums. A resolution finally is expected today. All those who think the pols will break up the state into regions, raise your hands. AG SPITS ON CONGRESS “The will of Congress” has a nice ring to it, but when bureaucrats are determined to circumvent it they can, and do. The U.S. Department of Agriculture, mindful of -- and scornful of -- Congressional intent on stopping the slaughter of horses for exportation as food, has decided to rewrite Congressional law. Congress effectively stopped commercial horse slaughter by shutting off inspection of the meat, but the Department of Agriculture decided on an end run that will permit the three major slaughterhouses in this country to continue on their merry way. Starting March 10, the slaughterhouses merely need to take over payment of federal inspectors, thus bypassing Congressional action that would have stopped the practice. DEEP IN THE HEART OF TEXAS The Fort Worth Star-Telegram reports that “undaunted by a two-year string of legislative defeats, several organizations representing the gambling industry are poised to renew the fight to bring Las Vegas-style games to Texas when lawmakers are called back to Austin in the spring to overhaul the state’s school finance system.” The usual and logical argument for expansion -- competition -was put forth by Bill Stinson, an Austin lobbyist who represents the Fort Worth Stockyards, one hopeful aspirant, when he said, “We are completely surrounded by states that have casinos, horse racing, you name it. It doesn’t make sense to me why we would drive billions of dollars across state lines when we could keep that money right here in Texas.” 2,100 SEEK JOBS AT TIOGA It may be small, but it’s mighty in the eyes of the job hungry residents of the area around Binghamton, NY. Some 2,100 applicants have applied for the 375 jobs that will need to be filled when the track opens in May. Applications still are rolling in, as many as 30 a day, and state senator Thomas W. Libous, a Binghamton Republican, calls the procession “one of the most exciting job creation initiatives ever in our community.” 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 February 14, 2006 KY POLS STALL DRUG REFORM PUT UP AND MAKE A CHOICE You knew this would happen, so it comes as no surprise. After months of working on badly needed reform of Kentucky’s medication rules and arriving at sensible regulations, the Kentucky Horse Racing Authority and its Equine Drug Research Council saw their work nullified by politicians on the Administrative Regulation Review Committee. Kentucky’s thoroughbred horsemen played their trump card, and the committee shot down the proposals as lacking sufficient guidance on what might constitute a violation for some 50 therapeutic medications. The setback is particularly significant since the Racing Medication and Testing Consortium is headquartered in Lexington, and the legislative committee’s decision not to approve the recommendations by keeping them bottled up in committee is a slap in the face to that national scientific group. Rep. Jimmie Lee, an Elizabethtown Democrat who has echoed the horsemen’s and Kentucky vets arguments, said, “You haven’t given them what the standards are.” So Kentucky continues on its permissive path, and reverts to racing rules that racing officials in the state called “clearly inadequate in terms of providing the Racing Authority with the power and leverage it needs in order to effectively enforce its drug and medication rules.” Politicians, not scientists or regulators, now will handle that job for the horsemen. New York state’s Ad Hoc Committee on the Future of Racing isn’t sure how to proceed on the sale of the New York Racing Association tracks, so it is asking applicants to make the choice themselves. Those who bid on the franchise can either opt to leave the system of racing as it is, change it moderately, or change it radically. Bernadette Castro, the lady-in-waiting for a Racing and Wagering Board job who currently is a member of the Future committee, said applicants can bid on the basis of whichever approach they favor, and also should have the option to include OTBs in their proposals. Assembly Racing and Wagering Committee chairman Gary Pretlow, speaking from his position as a legislator, indicated no radical reform would be welcome, saying, “I wouldn’t count on any sweeping changes in racing law. That doesn’t happen here. My gut feeling is people would rather keep it the way it is rather than change the franchise.” YOUBET CLOSES ON UNITED Youbet.com has closed on its $31.9 million purchase of United Tote, also assuming $14.7 million in United Tote debt. Chuck Champion, Youbet’s chief executive, said United would operate as a “fully independent subsidiary” of Youbet, and that Youbet management would not be directly involved in United operations. United Tote was the only major supplier that declined to participate financially in last week’s Racing Congress. A CHANGING CAST IN RACING The knights are moving in the chess game that is racing. In Pennsylvania, John Marshall has been named vice president and general manager of Pennsylvania racing operations for Magna Entertainment, overseeing The Meadows as he replaces Drew Shubeck, who has moved on to become general manager of Lone Star Park in Texas. In Illinois, Tom Carey III has departed Hawthorne Race Course as president and general manager. His cousin Tim Carey replaces him as president and Ed Duffy steps in as general manager. At Saratoga Gaming and Raceway, Jamie Hartman has been named executive vice president and general manager. In Maryland, Lou Raffetto now is president of the Maryland Jockey Club, while Joe DeFrancis remains as chief executive officer and takes on new duties with the MJC’s owner, Magna Entertainment. 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 GOODLATTE BILL TOMORROW February 15, 2006 U.S. Rep. Bob Goodlatte, the Virginia Republican congressman, will introduce his latest Internet Gambling Prohibition Act tomorrow morning. Goodlatte’s office, in announcing the reintroduction of the measure that was previously introduced in both the 106th and 107th Congresses, blamed it defeat in those sessions to “Jack Abramoff’s campaign of misinformation.” The releases said “Abramoff’s total disregard for the legislative process has allowed Internet gambling to continue thriving and it’s now a $12 billion industry.” The release said passage of the bill was “vital to protect our children and communities from the problems of addiction, crime, bankruptcy, and family difficulties that come from gambling.” It is not known at the moment if the bill exempts racing, as previous versions did. Administrative Regulation Review Subcommittee, which acted after a lawyer hired by the thoroughbred veterinarians presented testimony which may have been inaccurate. The Herald-Leader reported, “The new rules put Kentucky in the lead among states in limiting race-day medications, instead of at the back of the pack where we had been for decades. Enforcing those rules with strict penalties will tell the world we’re serious about clean racing in Kentucky. Unfortunately, because of the delay in the Administrative Regulation Review Subcommittee, there’s a good chance those penalties won’t be in place before the Kentucky Derby, when the world will be watching Kentucky Racing.” Or perhaps anytime after that, if the pols have their way. The Subcommittee apparently is satisfied remaining at the back of the pack. GURAL OPTS FOR NEW GROUP US AG DEPT. CHALLENGED Jeff Gural, moving forward after a federal bankruptcy judge approved his plan for reorganization of Vernon Downs, has informed Ken Jacobs, president of the new horsemen’s group –The Vernon Downs Harness Horse Association – that he plans to sign a contract with them March 1. The group was formed in the wake of displeasure of many Vernon horsemen at the unsuccessful $9.5 million suit filed by the Harness Horse Association of Central New York, which was thrown out of court. Jacobs claims his group now represents the majority of horsemen at Vernon Downs. A group of six animal rights organizations have filed a suit against officials of the U.S. Department of Agriculture, hoping to get the Department to reverse its end-run around the will of Congress. The group is a formidable coalition, consisting of the American Humane Association, the SPCA, the Animal Welfare Institute, the Doris Day Animal League, the Humane Society of the United States, and the Society for Animal Protective Legislation. It acted after Mike Johanns, secretary of the Department of Agriculture, and Food Safety and Inspection Administrator Barbara Masters, gave their approval to a plan in which the nation’s three horse slaughterhouses could pay for inspection services, thereby thwarting the will of Congress which had voted to prohibit tax dollars to be used for the purpose. That measure passed the House 269-158 and the Senate 69-28 before the Ag bureaucrats stepped in and substituted their judgment for that of Congress. HERALD LEADER JOINS FRAY Kentucky’s Lexington Herald-Leader has editorialized about the legislative tabling of new medication rules proposed unanimously by both the Kentucky Horse Racing Authority and its Equine Drug Testing Council. The new rules were blocked by an 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 February 16, 2006 ANOTHER ALLEN TRAGEDY GOODLATTE INTRODUCES BILL The Carl Allen family has encountered another disaster. They lost the patriarch and highly popular father, Carl, in a tractor accident in May of 2004, and now Mike Allen, son of Mae Jean and Carl, is in critical condition in a Gainesville, Florida, hospital after suffering severe head injuries when his motorcycle struck a Lexus SUV. According to USTA reports, Mike, who worked with the breeding stock at the family’s Golden Cross farm near Ocala, was riding his motorcycle near the farm when the SUV pulled in front of him. His bike hit the SUV, catapulting Mike over the vehicle and onto the highway. He was air lifted to the medical center in Gainesville, where it was determined he suffered severe hemorrhaging around the brain stem. He is in intensive care at the hospital, under heavy sedation and on a respirator, according to his brother Martin, a veterinarian. The Allen family’s address is 12662 NW US Highway 27, Ocala, FL, 34482. Rep. Bob Goodlatte of Virginia introduced his Internet Gambling Prohibition Act as promised this morning, and as in the previous versions that fell short of passage, horse racing is excluded from the prohibition as long as its activities comply with the Interstate Horse Racing Act of 1978. Goodlatte attributed previous failures of the bill to Jack Abramoff’s lobbying. Let’s hope the exemption holds. ARBITRATION AT MONTICELLO In hopes of ending the bitter stalemate between Monticello Raceway and its horsemen, both sides now have agreed to allow the New York Racing and Wagering Board to arbitrate the dispute. Where, when and how long that will take is not known, but the agreement will allow racing to resume with higher purses and allow simulcast signals to be received from out-of-state tracks. The horsemen had pulled the plug on those signals when negotiations ground to a halt. The primary issue in the disagreement is the percentage of profits from video slots that will go to horsemen in purses. The Racing and Wagering Board has been issuing dates a month at a time in the absence of a contract, but the likelihood now is that after the arbitration sessions a full season of racing dates will be allocated to the Catskill track. WAR PLANS IN KENTUCKY The Kentucky Horse Racing Authority was “strategizing” today as to their options in the face of the politicalization of drug testing in the state. After a legislative committee undid the work of the Authority and its Equine Drug Testing Council, the Authority is considering whether to ask Gov. Ernie Fletcher to sign another emergency regulation to replace the one that expired yesterday, or to simply revert to the regulations that were in effect before the Authority took action three months ago. Authority executive director Jim Gallagher said he thought the group could get new emergency rules enacted. AROUND AND ABOUT At Buffalo Raceway, former HTA executive assistant and Maryland Jockey Club vice president Jim Mango has shaken things up as the track’s new chief operating officer. Veteran Buffalo News racing writer Bob Summers, in a four-column wide report under a headline, “Mango gets off to a fast start at Buffalo Raceway,” noted Jim’s changes that include a 6:35 p.m. post, 13-race cards, the infusion of new driving talent from the Midwest and east, and increased marketing and promotional activity. At Flamboro Downs, GM Gerard Spoor announced a 5% across-the-board purse hike. In Goshen, NY, Moni Maker and Matt’s Scooter were announced as new inductees into the Living Horse Hall of Fame. 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 February 17, 2006 NOW FOR THE SHOWDOWN THE END OF THE WORLD The federal bankruptcy judge has spoken, the financing is in place. Now comes the showdown as to whether horsemen racing at Vernon Downs want to race or not, whether they want to get back into action or prolong the shutdown of the central New York harness center. New owner Jeff Gural and his backers have signed a contract with the recently formed Vernon Downs Harness Horse Association, whose president Ken Jacobs called the agreement “a very good contract for the horsemen,” and added that his members were “very happy” with the deal. The Harness Horse Association of Central New York, which has represented Vernon horsemen in the past, has announced it will contest the issue, and the New York Racing and Wagering Board almost certainly will have to monitor an election to see which of the two groups has a majority of Vernon horsemen as members. So the long drawn issue will be resolved by the people whose welfare is most at stake, the horsemen. If the new group can muster a majority, Vernon Downs can be back racing by early summer. If it can’t, Gural either will have to cut a deal with the old association, or Vernon could lose another racing year. World Trotting Derby, that is. Horsemen in Illinois are asking Gov. Rod Blagojevich to cancel the million dollar World Trotting Derby at DuQuoin after this year’s racing and reallocate the money to Illinois-bred or owned horses. Tex Moats, a longtime Illinois harness trainer who now is bureau chief of County Fairs and Horse Racing at the Illinois Department of Agriculture, is quoted by Horseman and Fair World’s harnessracing.com as saying, “We’re losing a lot of horses and broodmares and stallions and I just think that million dollars would help us right now. I’m looking for a solution to give Illinois horsemen a shot in the arm.” The World Trotting Derby was instituted after Illinois lost the Hambletonian to the Meadowlands 25 years ago, but entries in the rich race have dropped in recent years, with only six horses starting in both the 2004 and 2005 renewals. MONTICELLO GETS EXTENSION With both sides agreeing to allow the New York Racing and Wagering Board to arbitrate their dispute, the Board has agreed to take on the task of adjudicating the differences between horsemen and management at Monticello Raceway in the Catskills, and has granted the track the right to race through June 30. This war has been waged for two years, with the horsemen claiming the track reneged on the share of VLT proceeds, health benefits and administrative payments. Monticello says horsemen will receive 7.5% of VLT net revenues and reinstated health benefits, and the horsemen have agreed to allow out-ofstate simulcasting on Monti races to resume. SOMEONE CARES IN KY HOUSE The members of the Administrative Regulations Review Subcommittee in Kentucky may not care about the state’s woeful reputation on medication issues, but one member of the House who likes racing obviously is concerned about racing in the state. Rep. Joe Barrows, who represents three central Kentucky counties, has introduced legislation calling for a referendum on whether Kentucky’s eight racetracks can have racinos. The president of the Kentucky Senate, David Williams, a Republican who opposes the idea, said, “The battle has begun about Kentucky’s future.” JOE VACCARO DEAD AT 74 Joseph A. Vaccaro, one of the founders of the New England chapter of the U.S. Harness Writers and that chapters’s secretary-treasurer for 44 years, has died at 74 in Pompano Beach, Florida. 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 IT WOULDN’T BE FIRST TIME With the deadline for an American response to a World Trade Organization ruling on restricting Internet gambling little more than a month away, the government of little Antigua and Barbuda, which won the WTO edict, says the U.S. is making no effort to bring its laws into international line. The lead attorney for the Caribbean country, Mark Mendel, says he suspects the United States’ overall strategy in the case is to do nothing. John Ashe, AntiguaBarbuda’s WTO ambassador, wrote to U.S. trade representative Rob Portman last week, saying, “The apparent lack of movement by the United States to comply with the rulings and recommendations of the DSB (dispute settlement body) leads our government to be extremely concerned with the intentions of the United States.” Since the population of Antigua and Barbuda is only 80,000 and its economy is .007% of the United States, the prospect of that little country imposing reciprocal trade sanctions would mean nothing, so it may well be right that doing nothing is the current U.S. policy. Christin Baker, a spokeswoman for Portman, denies this, saying the US “is exploring a number of different avenues to clarify there is no discrimination -- even outside of legislation. We are in active discussions within the executive branch, with Congress and also with the private sector to determine the best way to move forward.” Better hurry, Christin. April 3, the deadline date for compliance, is just around the corner. GUESS WHO’S AT OLYMPICS Betfair. The English-based betting exchange, which is wheedling its way everywhere it can, minimizes its role, or possible impact, on Olympic sports. After Jacques Rogge, the International Olympic Committee president, expressed concern about sports betting, on the Olympics, Betfair responded. February 20, 2006 It said, “The average run of the mill horse race on a wet weekday in winter will see more than one million pounds matched. An average Premiership football game would see something like five million matched. In comparison, even the highest profile Olympic event would only rarely see one million matched.” The Betfair spokesman, Stephen Burn, also said, “People have been betting on the Olympics since the Games began. The choice the IOC faces is a simple one: it can work with properly regulated, legitimate betting businesses, like our own, or it can turn its back on us and look down on the industry with some outdated air of moral indignation. What it can’t do is stop people punting on its events because there will always be unscrupulous and illegal operators looking to exploit vulnerable, corrupt or greedy athletes and punters.” Which, we assume, is precisely why Jacques Rogge is concerned. BELLING THE OFFSHORE CAT The California Horse Racing Board is considering what options it may have to legally curtail offshore piracy or capture of big bettors. The board chairman, Richard Shapiro, correctly believes that it is “a very serious problem.... that is robbing racing of major revenues and is affecting every aspect of the industry.” Charles (Chuck) Champion, Youbet’s CEO and president, says 1,650 customers a day download information from Youbet.com but do not place bets with the company. He says getting law enforcement interested is difficult, and calls it futile, noting that the justice department has shown no appetite to pursue the issue. Champion’s solution -- he bought offshore International Racing Group last year -- may be a lesson racing is ignoring but will have to embrace. Champion says racing hates the idea of discounting its product by offering rebates, but if we can’t beat rebaters we may have to join them. 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 February 21, 2006 NOW THE FIGHT FOR $384,000 ONLINE USING FOREIGN BANKS Having lost their capricious gambit to get blood from a stone, the Harness Horse Association of Central New York, which vainly sued Mid-State Raceway for $9.5 million, now hopes to get its hands on the $384,000 that bankruptcy judge Stephen Gerling ruled Mid-State must pay to Vernon Downs’ purse account. The issue is which association will represent horsemen, the old HHA or the new Vernon Downs Harness Horse Assocition. The old group’s contract expires this week, and its attorney, Joe Faraldo, says he does not believe it will be renewed. That’s a reasonable assumption, since the new group says it has signed a contract with major shareholder Jeff Gural. Another financial deadline faces Gural and his American Racing and Entertainment group this week, with a $15 million deposit due. Red Herring, a newsletter on technology, quotes a gambling industry researcher this week as predicting new Internet gambling legislation before Congress will “go down in flames.” Christopher Costigan, president of Gambling911.com, thinks that despite the support of 115 members of Congress and “an array of anti-gambling, religious and conservative groups,” the recently proposed law to outlaw online gambling will fail. Costigan told the newsletter, “The law makes it more difficult for banks to accept credit cards for online gambling purposes, but the Patriot Act has already done that. The online gambling firms are using overseas banks for these purposes.” Costigan thinks those supporting the bill, including the Christian Coalition, the National Coalition Against Gambling Expansion, and the Family Research Council, among others, ultimately will torpedo it. Every time they have tried to pass this bill, he says, the religious groups have ended up opposing it because of exemptions the bill picks up along the way. CHANGES AT GREAT CANADIAN Co-founder and chief executive officer Ross McLeod has taken over as president of Great Canadian Gaming Corporation, following the sudden resignation of president Anthony Martin. Martin stepped down after the Vancouver track and casino operator announced a profit warning, saying its earnings before taxes in the fourth quarter would be in the $9 million to $11 million range, as opposed to a forecast by an analyst of $20 million. The warning triggered a 20% drop in Great Canadian shares, and Martin took responsibility for the lackluster results. His resignation was accepted by the board of Great Canadian last Friday. McLeod said he would assume the presidency for the time being, but would not predict other changes before another board meeting is held this coming Saturday. He said the company might have a president for the West and another for the East. Great Canadian, with 5,200 employees, expanded greatly in the l a s t year, adding Flamboro Downs, Georgian Downs, Fraser Downs and Sandown Park to its roster. ORC MOVING TO THE AIRPORT For the record, the Ontario Racing Commission is relocating its offices, moving from downtown Toronto to a spot near the Toronto airport and Woodbine. Effective March 6, the ORC will be located at 10 Carlson Court, Suite 400, Toronto, Ontario M9W 6L2. The phone number will be 416-213-0520. BENEDICT LEAVES UNITED Bruce Benedict, who has traveled the pari-mutuel world as executive VP of International Sales for United Tote, has formed an independent consulting company, Global View Enterprises. Bruce’s new company is located at 57 Alpine Drive in Latham, NY, 12110 and he can be reached at [email protected] or at 518-7861810 or cell 518-334-0918. 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 CONGRESS VIDEO ONLINE Video streaming of all general sessions of the Racing Congress at Bellagio, including Terry Lanni’s presentation, now is available on HTA’s Web site home page, www.harnesstracks.com. We thank Roberts Communications for its generous assistance in this project again this year. Although all sessions currently are online, editorial coordinator Jessica Carner will be providing new and additional textual information, including speaker identifications, and refining the presentations, in the next few days, on receipt of CDs of the entire package from Roberts. Lighting and video and audio remain as produced by Bellagio’s audio-visual department, and we cannot improve on that, but all sessions are available in their entirety, and will remain up indefinitely on our Web site home page. MORE HEAT IN PENNSYLVANIA The Pennsylvania Harness Racing Commission, which lost two of its members after the Brian Sears fiasco last summer, now is defending itself against charges of discrimination after a crowd estimated at between 300 and 600 turned up on one of the coldest days of winter to protest the commission’s turndown of a track application from Bedford Downs. The community rally was organized by the Lawrence county chapter of the NAACP -- the National Association for the Advancement of Colored People -- although no African-Americans are involved in either license application in western Pennsylvania to our knowledge. The NAACP became involved, according to its local chapter president Evelyn Ward, because it believed there had been discrimination against the Carmen Schick family based on its Italian heritage. During the application hearings, the commission raised the issue of loans from people with reputed ties to organized crime to Mr. Schick’s grandfather, Carmen D. Ambrosia. February 22, 2006 Mr. Schick did not deny the loans, but claimed, “My grandfather was conned. He was old. He had a lot of money and he got set up. He was used.” The commission had cited the loans, but had stated they did not think the present Schick family had any ties with organized crime. Despite that, the NAACP felt Mr. Schick’s Italian heritage was a factor in his rejection and objected to what it saw as ethnic bias. Anton Leppler, executive director of the Pennsylvania Harness Racing Commission, said he was “incensed” at the comments, and called the allegation, “ A low water mark in this process of licensing a new harness track.” He noted the commission is holding a job fair today in Chester, PA, where there is a sizeable black population that will be considered for several thousand jobs that will become available at the new Harrah’s casino and harness track will open there soon. And he said, “The commission’s decision on the Bedford Downs application was based on the facts and circumstances derived from evidentiary hearings and not on anyone’s ethnic affiliation or background.” The Pittsburgh Post-Gazette, reporting on the community meeting support for the Schicks and their project, wrote, “The speeches about Carmen Schick sounded premature. Most people only have such nice things said about them at their funeral.” HOW NICE! VOTERS GET INPUT Racing officials in Florida have begun working on rules for slots at Pompano Park and other Broward county tracks, and are going to let the people who voted for them have a say on how to regulate them. Florida Division of Pari-Mutuel Wagering’s David Roberts says voters will have a chance to comment on the rules during two days of a public workshop in Hollywood, Florida, on March 14 and 15. The legislature has given the division until June 1 to establish the rules and procedures for the slots. 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 NJ GETS SPORTS BETTING BILL New Jersey state legislators are challenging federal law again, seeking sports betting for the state’s Atlantic City casinos. A bill --Assembly #1046 -- was introduced today, calling for a referendum next November to allow licensed casinos in Atlantic City to conduct in-person wagering on professional sports events under regulation by the New Jersey Casino Control Commission. As defined in the bill, betting would not include wagering on events on which the participants do not receive compensation for participation, or in which any participant represents a public or private school or institution of higher learning, any amateur or collegiate game or match, any running race or harness horse race, and any professional wrestling match. In order to place a wager on a sports event, the patron would have to be physically located in the sports wagering lounge of the casino. Sports betting would be subject to the existing 8% casino gross revenue tax. Assemblyman Louis Greenwald, one of four sponsors of the bill, denied that the discussion arose because of an indictment earlier this month of an illegal sports betting ring based in New Jersey. “This is something we’ve been working on for four years,” he said. The bill challenges federal law that limits legal sports betting to the states of Delaware, Nevada, Oregon and Montana. New Jersey missed a deadline 12 years ago that grandfathered those states from prohibition of legal sports betting. HTA has copies of the bill introduced today for any interested members. February 23, 2006 KEEP -- an organization of racing industry advocates -- also has a bill, which specifies how the state’s 35% share would be spent. They were told in firm tones yesterday by the speaker pro tem, Larry Clark of Louisville, that no breakdown of spending would be included in any amendment if he had a say. “I will not support it and I’ll work against it,” the speaker said, and went farther. “I’m going to put you on notice,” he told KEEP officials. “If you stay the course, it will be DOA.” That’s clear enough, Larry. KY HOUSE PASSES FRAUD BILL The Kentucky House did take action on another matter yesterday. It passed, 84-14, a measure requiring disclosure of dual agency, where a bloodstock agent represents both buyer and seller and takes commissions from both. The measure requires a written bill of sale with commissions disclosed, and provides for triple damages and costs and attorneys fees for aggrieved parties. Agents could receive a gratuity, fee or compensation up to $500. The measure now goes to the Senate. HERE COMES HILTON The Hilton Group, soon to become Ladbrokes once the multi-billion dollar sale of its hotels business to Hilton Hotels in the U.S. is completed today, plans to review its position of not accepting U.S. customers to its online gambling sites. “We always review our position,” CEO Christopher Bell told reporters. “We’re the biggest online brand that doesn’t take U.S. players, and we’re going to review that even quicker this year.” KENTUCKY CREEPING CLOSER Democratic legislators in Kentucky are working on a compromise casino bill that they hope will pass muster in coming weeks. The plan calls f o r licenses at five Kentucky tracks and four other locations. The proposal calls for separate legislation to determine shares. JEANNOT SAYS LATE 2006 That’s the earliest that Mike Jeannot, vice president of The Meadows near Pittsburgh, sees as a possible date for slots operation in Pennsylvania. And that, Mike says, is if everything goes well. 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 OPTIONS ON VEGAS VIDEOS The streaming video of all panels at the Las Vegas Racing Congress, currently on the home page of our Web site www.harnesstracks.com courtesy of Roberts Communications, provides instantaneous replay. If for any reason you choose to download the panels separately, at an obvious cost in time, you can do so, courtesy of HTA editorial coordinator Jessica Carner. Either way, sit back and enjoy. Printed transcripts of the proceedings will be available at a later date. INTERESTING NOTES IN NJ Yesterday’s discussions and aftermaths of the proposal for sports betting in New Jersey’s Assembly Tourism and Gaming Committee provide some interesting commentary. The bill was discussed for more than three hours, and survived the discussion to move on to the Assembly Appropriations Committee. If approved there, it would go to the Senate for consideration. Senator William L. Gormley, a political power in the state whose district includes Atlantic City, made it abundantly and originally clear as to his views. “This doesn’t have a chance, and I don’t want to see one waiter, one waitress, any individual in that district think there is a chance of something that can’t happen.” Assemblyman Jeff Van Drew, the chairman of the Tourism committee, wasn’t so sure of that. “I don’t believe it’s dead,” he said. “I believe it is a long shot, but I believe it is a real shot, and I’ll tell you why. I believe there are serious flaws in the federal law.” He was referring to federal statutes which prohibit sports betting except in four states where it was grandfathered 12 years ago, New Jersey’s neighbor Delaware being one of them. New governor Jon Corzine tossed water on the idea, saying, “Even if we had it, we wouldn’t be able to do it because of the national legislation.” But he left the door open, saying, “To enhance Atlantic City over a period of time, it’s worthy of consideration.” February 24, 2006 Yesterday’s hearing drew some heated differences of opinion between Senator Gormley and committee chairman Van Drew. Gormley told the chairman that considering the matter was “a cruel hoax,” but some lawyers who testified said they thought the federal law was vulnerable. The New Jersey Sports and Exposition Authority sent a letter saying that if the matter went further it should include the race tracks, and harness racing lobbyist Leon Zimmerman made that point as well. When he told chairman Van Drew -- a strong opponent of slots at tracks -- “If you’re not going to give us slots you should at least give us sports betting,” Van Drew smiled and said, “We are going to look at that.” Thoroughbred interests also were represented at the hearing, and while not advocating sports betting they made the point that if it is approved, the state’s racetracks should share in the revenues. AN OWNER RAISES HELL IN CA In an interesting twist, a thoroughbred owner has enlarged a medication violation flap in California. The incident began Sept. 3 when veterinarian Amy Lee Nevans gave Intercontinental, the Eclipse winner for top female turf horse of last year, a shot of Salix at 12:10 p.m., three hours and 25 minutes before post time, rather than the allowable four hours (or 3 hours and 45 minutes with grace period). It was a stakes race, and Intercontinental breezed as the 3-10 favorite. Six weeks after the incident, Dr. Nevens was fined $750 for falsifying records. She entered a permissible time beforehand, then got tied up with other horses and was late administering Intercontinental’s shot. A surveillance camera recorded the time. Jim Ford, whose Katdogawn finished fourth in the race, wants the $120,000 purse money redistributed. Former associate steward Gina Powell, who quit in protest, says she told racing officials before the race the shot was administered late. Trainer Bobby Frankel brushed it off, saying “it happens all the time.” 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 February 27, 2006 PRICE OF SLOTS JUST WENT UP GERTMENIAN’S PRICE IS DOWN Something called the Maryland Tax Education Foundation, identified by itself as “a non partisan, non profit research institute focusing on tax and budget issues in Maryland,”and by bloodhorse.com as “a conservative research group that has gotten into racing and gambling battles in Maryland, Pennsylvania and Ohio,” now has injected itself in the New York NYRA situation. Although it says in a disclaimer that “Nothing in this paper is to be construed as necessarily reflecting the views of the Maryland Tax Education Foundation, or as an attempt to influence the passage, defeat, approval or disapproval of any legislation or any other matter before the New York State Legislature, the Governor, or any other state or local agency or official,” that’s exactly what it does, and obviously was intended to do. The Executive Summary says “As the State of Maryland faces similar issues regarding VLTs and the future of horseracing, the Maryland Tax Education Foundation has sponsored this study. It was conducted by Jeff Hooke, a Virginia investment banker, and Thomas Firey, managing editor of a publication produced by the libertarian Cato Institute in Washington, and in essence it says the value of New York tracks, VLTs and OTB assets is worth four times the figure assigned to them last year by the late Friends of New York Racing. The interest paid to New York by outside sources is indeed inspiring. According to the Maryland study -- a copy is available online on HTA’s Web site at www.harnesstracks.com or in print form from HTA -- the New York package is worth $2.1 billion. The report concludes VLT licenses at Aqueduct and Yonkers are worth $1.426 billion at auction, the three New York Racing Association tracks (Belmont, Aqueduct and Saratoga) would bring $303 million, and the OTB operations would be worth $400 million. The Jockeys’ Guild, holding its annual meeting near Dallas almost three months late while it sorted out its tattered funds, gave its members the Wayne Gertmenian story today. As reported in The Blood-Horse, the Guild’s legal counsel and longtime lobbyist, Barry Broad, told the jocks that Gertmenian personally netted almost $1.2 million during his three-year tenure as president, and had used another Guild counsel to propose a new employment contract that would give him years of advance salary in the event he was terminated, which he was last November. Broad said Gertmenian had told him in the day he was fired, “We’ve never been in better financial shape than we are today. We have a $3.5 million war chest.” Actually, the Guild was stripped of most of its assets at that time, Broad said, and “on the day Gertmenian, counsel Lloyd Ownbey and vice president Albert Fiss were fired, they emptied the bank accounts and wrote themselves $100,000 checks.” Broad says Gertmenian is the subject of a “very active” FBI investigation, and noted that the Guild plans to sue him to try to recover its money. Broad also indicated some jocks still may believe in Gertmenian, telling the Guild members, “There are still people out there who think the world is flat, and I’m sure somebody believes in the Fairy Godmother. But I hope none of you still believe in him.” SOUND FAMILIAR? In the wake of Katrina, Churchill Downs is facing the issue of getting insurance on its new acquisition of Fair Grounds in New Orleans. The coverage would be under an umbrella policy covering all Churchill tracks, according to Fair Grounds president Randy South in the New Orleans TimesPicayune. Track insurance problems have been handled for 26 years now by Wagering Insurance NorthAmerica (WIN). Keep us in mind as they arise. 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 February 28, 2006 JAPANESE BUY INTO BETFAIR A BAD IDEA IN CALIFORNIA Betfair, the English betting exchange that has been spreading its wings around the world, has extended its reach again. The company has signed an agreement with Softbank, a Japanese telecommunications and software company, under which the Softbank Group will acquire between 18 and 23% of Betfair. The parent of Betfair, Sporting Exchange Limited, meanwhile will facilitate an offer to its shareholders for a minimum of 15% and a maximum of 20% of its fully diluted share capital. The Sporting Exchange then will offer Softbank Group another 3% of primary shares. Betfair chairman Tim Bunting called Softbank “the ideal partner for Betfair’s ambitious expansion plans. It has a hugely successful track record in a number of related areas.” Softbank runs the Yahoo! broadcast service in Japan, and last fall it signed with the Iwate Prefecture Horse Racing Association to become Japan’s first company to offer betting online. Starting in April, Betfair will begin taking Internet bets on races at two tracks in Iwate Prefecture, located some 250 miles north of Tokyo. Softbank is headquartered there, and says if the venture proves successful it will spread the service to other regional tracks. For reasons best known to itself, the California Horse Racing Board is proposing to eliminate rules requiring the coupling of horses as an entry when common ownership is involved. The present rules governing entries say, “Two or more horses shall be coupled as a single wagering interest and as an entry when such horses are owned in whole or part by the same person or persons.” A second rule, involving wagering interests, currently specifies, “A wagering interest may be any one horse in a race, or may be two or more horses coupled as a single wagering interest as an ‘Entry’ or the ‘Field.’ A declaration or withdrawal of one horse from a wagering interest which consists of more than one horse shall have no effect on any wagers made on such wagering interest.” California has been encountering short fields. If that is the justification for the uncoupling of common interest entries, it is a bad idea, and should be opposed during the 45day public notice period that runs from now until April 10. A public hearing then is scheduled for April 27 at the racing board’s annual meeting, where interested parties can speak. GOOD FOR KY; CORNELL OK’D Give another gold star to the Kentucky Racing Authority and its executive director Jim Gallagher. They approved use of the Cornell Collar yesterday, under specified conditions. The collar was developed at Cornell as an alternative to throat surgery to correct displaced palates, which can affect a horse’s air flow and breathing. Under the approval, a trainer must provide a letter from a vet saying the collar is justified, and once in use must be kept in use until a vet says it is no longer appropriate. The collar already has been used in harness racing, and now is ok for runners. A VERY BAD ONE IN DELAWARE Harness horsemen in Delaware are asking the Delaware Harness Racing Commission to allow 2-year-olds to race with phenylbutazone, better known as Bute, in their system on race day. It is a very bad idea, and the commission should reject it out of hand. No horsemen showed up at the commission meeting to advocate it, but Sal DiMario, executive director of the Delaware Standardbred Owners Association, did, saying “six or seven horsemen” asked him for the change. To the credit of racing commissioner Bob Everett, he pushed for a delay to April to consider the matter, saying quite a few horsemen he has spoken to are totally against the idea. We hope they, and not DeMario’s “six or seven,” prevail. 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 March 1, 2006 PINHOOKING PAYS A LITTLE FRAUD IS TOO MUCH At least it did yesterday, when it provided racing with its biggest story in months. Pinhooking, of course, is buying a colt or filly with the intention of reselling it, and yesterday trainer Randy Hartley and his partner Dean De Renzo of Florida, who paid $425,000 for a yearling last July, sold him at the 2-year-old-in-training sale in the paddock of Calder Race Course for $16 million. The buyer was agent Demi O’Byrne, acting as agent for owners John Magnier, Michael Tabor and Derek Smith who operate as Coolmore. O’Byrne locked horns with John Ferguson, who represents Sheikh Mohammed bin Rashid al Maktoum of Dubai, and the agents for the two top buyers in thoroughbred racing battled until Ferguson tossed in the towel. Bidding on the colt as a yearling in July at the Fasig-Tipton sale, Hartley gave up, but just before the hammer fell De Renzo raised his hand, getting the colt for his $425,000 bid. When asked yesterday if he would sell another horse this year, De Renzo told a reporter, “I don’t have to sell another horse in my life. But I’ll stay in the game because I love it. We’ll probably reinvest the money in horses. They’ve done a lot for us.” The colt, a spectacularly handsome Forestry colt bred by Satish Sanan’s Padua Stable, had shown a blazing workout on Feb. 19. Boyd Browning, COO of FasigTipton, said of the colt, “He’s a beautiful horse, and he withstood the scrutiny of all the major buyers all week long. The two major buyers in the world got hooked up in an emotional bidding situation, and sometimes logic doesn’t prevail.” Like yesterday. That was the reaction of Jess Jackson, the thoroughbred owner-breeder whose lawsuit against two agents and a trainer led to legislation currently in the Kentucky Senate. The House passed a bill, 84-14, requiring full disclosure of commissions for agents in selling horses, but the House also added amendments providing that an agent may receive $500 from a third party, instead of an original restriction of $100, and exempting transactions of $10,000 or less for show horses. Jackson was referring to those amendments, and called the legislation “vanilla.” The Senate Licensing and Occupations Committee passed the amended legislation yesterday by unanimous vote. TOP MANAGERS AVAILABLE Two experienced race track managers are available, and HTA has resumes on both. These are consummate professionals, and if you are interested write or call for resumes and additional information. In another bill introduced in the Kentucky legislature, workers’ compensation would be provided for jockeys and exercise riders with creation of a Kentucky Jockey Injury Corporation and Kentucky Jockey Injury Fund purchasing the coverage, with trainers paying for exercise riders and tracks and owners paying into the Injury Fund, expected to require $1.2 million a year to finance. MCCAIN WOULD LIMIT TRIBES Senator John McCain of Arizona said yesterday that he hopes to eliminate a procedure that currently allows Indian tribes to buy land outside their reservations for casino construction. At present, a two-part determination by the Secretary of the Interior permits such purchases and construction if it is deemed in the best interest of the tribe and will not be detrimental to the surrounding community, and the governor of the state where the land is located agrees. McCain says he believes that process often bears no historic relationship to the tribes, given their developer financial backers, and he feels the policy “is fostering opposition to all Indian gaming.” 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 March 2, 2006 GURAL TELLS IT LIKE IT IS POCONO STILL PLANS APRIL 1 Jeff Gural, hoping to take title to Vernon Downs by April 1 and resume racing at the central New York track in June, told the Utica Observer-Dispatch that he has committed about a million dollars to purses with the new Vernon Downs Harness Horsemen’s Association, but that he would not have done so with the old Harness Horse Association of Central New York. “Rick Papa (president of the Central organization) and his group wants to keep Vernon Downs closed longer. It shows why I don’t want to deal with him.” The issue of which horsemen’s group will be accredited now is before the New York Racing and Wagering Board, which says it will make a decision “in a few weeks.” Under the contract Gural signed with the Vernon Downs association, the track will have 90 programs of live racing for the next five years, with a minimum nightly purse distribution of $30,000. Horsemen will get 8 to 8 1/4% of VLT terminal proceeds and will get hospitalization for members, with horsemen paying one-third of the cost and the association paying the remaining two-thirds. To be eligible, horsemen must race once a month and 25 times during the meeting in 2007, or be a groom in good standing. The track will charge $100 a month for stall rent this year and next, then $125 a month for the 2008-9 seasons. With only a month to go and much work remaining, Mohegan Sun at Pocono still is planning on its scheduled April 1 opening. Other than for the track and outside dimensions of the clubhouse, northeast Pennsylvania fans will see a totally new look at Pocono when it reopens. “They’ll know where they are, because we haven’t moved, but I think they’ll be pleasantly surprised,” says track president Robert Soper. The interior of the clubhouse is being completely remodeled, with a state-of-the-art simulcast facility on the lower level -- unused in recent years -- and a new track entrance. The old grandstand roof was removed and a third floor added for offices. An entirely new building, a 400,000square-foot casino and entertainment complex, costing some $140 million, will be built as soon as a slot license is approved for the track. In the course of construction, old buried structures harking back to anthracite mining on the site have been uncovered. Coal, anyone, while waiting for slots? CHESTER TO OPEN SEPT. 10 Harrah’s Chester Casino and Racetrack will open its inaugural season of live harness racing Sunday, Sept. 10 and race 45 afternoons through Monday, Dec. 18, on a Sunday, Monday and Thursday schedule. There will be no racing Thanksgiving Day, but a card will be offered on Breeders’ Crown Day Nov. 4. Simulcasting will be offered daily except for Christmas Day. The new track will reintroduce racing to the Philadelphia area on a 5/8ths mile track, like its predecessors Liberty Bell Park and Brandywine Raceway. SLOTS TALK IN KENTUCKY David Boswell, a state senator involved in the negotiations for a constitutional amendment to allow racinos in Kentucky, said yesterday, after a meeting of the House Licensing and Occupations Committee, “We’re very, very close” to a compromise. The negotiations involve Boswell’s plan, which called for five racinos and four off-site casinos, and a horse industry plan calling for racinos at all eight tracks in the state. The committee chairman said the proposed amendment might die if it doesn’t clear the committee by its meeting next Wednesday. “If next week is not the time,” he said, “then I think it’s probably a moot issue for the session.” TO ALL DIRECTORS Please fill out and return your dues surveys. Baby needs new shoes. 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 March 3, 2006 MAJOR RACE BILL IN ILLINOIS CLOAK & DAGGER CONTROLLER A bill that could have profound effect on horse racing in Illinois passed a key House Executive Committee yesterday, 9-3. Known as the Molaro bill for the representative who introduced it, the bill, with three amendments by Molaro, proposes the following: It may be politically incorrect and bad manners, but we always grow skeptical and concerned over controllers or district attorneys with political ambitions who announce ‘secret’ proceedings. The latest is Alan Hevesi, state controller of New York, who is reported to have a still-secret report about “inappropriate” accounting for franchise fees by the New York Racing Association. Somehow, conveniently, the secret report found its way into the hands of James Odato, the capitol bureau writer for the Albany Times Union, who wrote a story with a lead paragraph reading, “The New York Racing Association shorted the state at least $30 million from 2000 to 2003 -- the same sum New York plans to lend to NYRA -- according to a still-secret report by Controller Alan Hevisi.” Odato noted that “Spokesmen for Hevesi would not say why the audit has not yet been made public,” but he used figures presumably in the report which claim that “at least $37.3 million and as much as $43 million” were misstated by NYRA over the four-year period involved. The story, of course, was enough to allow pols to charge that the state was “throwing good money after bad money” with the loans to NYRA. The man who catches this kind of flak at NYRA, senior VP Bill Nader, said he had not seen the audit, but noted that NYRA and Hevesi’s office have been at odds over how to calculate expense deductions that can lower franchise fee obligations. Whenever the leaked report is released officially, there will be more headlines and more bad press for racing. Illinois riverboats, except for the Rock Island boat that is exempted because of lower betting volume, would pay 3% of their adjusted gross receipts to the Horse Racing Equity Trust Fund, a non-appropriated fund separate from state monies, which is administered by the Illinois Racing Board. 60% of all monies paid to the Fund would go to purses, 57% of the total to thoroughbred purses and 43% to harness purses. 40% of all monies paid into the fund would go to track operators. Every group of horsemen in Illinois, regardless of breed, have endorsed the legislation, along with the operators of Arlington Park, Balmoral Park, Hawthorne and Maywood Park. We will keep you informed of the bill’s progress. CAL INCIDENT TO GET REVIEW The late administration of Salix by a vet at Del Mar, with an inaccurate record of injection time, reported here last week, is not over. Racing board chairman Richard Shapiro has ordered an independent review, with Scott Chaney, a steward, attorney and former assistant horse trainer, in charge. Shapiro says Chaney will have full access to all personnel and will act independently and without direction from the racing board staff or commissioners, and will report to a board committee March 22. TIOGA SIGNS WITH HORSEMEN The Harness Horsemen of Central New York may be fighting to the death (perhaps theirs) with Jeff Gural, but at least he has signed with his horsemen at Tioga Downs in the southern tier near Binghampton. Gural said it was nice to work with people who understood he and his partners’ goal was to attract people back to harness racing. 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 March 6, 2006 PA LICENSE ISSUE TO COURT ILLINOIS HOUSE DELAYS VOTE In an unusual move that indicates the importance of the issue, the Pennsylvania Commonwealth Court has announced all seven judges will sit en banc next month to decide whether the state harness racing commission erred in not granting the last Pennsylvania harness license to either Bedford Downs or Valley View Downs. The court said it will hear the matter April 5, when both applicants’ cases for reconsideration also will be heard. A Valley View spokesman, Rick Kelly, said, “We take the fact that they want to hear it en banc as very encouraging. It’s a signal of the importance that the court is placing on this and we’re very encouraged and optimistic.” Valley View, the name Centaur of Indiana has given its project, argued that the commission’s decision was capricious, that board members misled applicants, and that rules were changed after evidence was presented. Bedford Downs, the hopeful of the Carmen Shick family, based its appeal on grounds that its application was denied not on their own records, but because of an ancestor’s reputed Mafia ties 20 years ago, when Shick’s grandfather apparently loaned money to disreputable borrowers. Both Bedford and Valley View argue that the racing commission’s task was to choose the successful applicant, and that rejecting both was not an option. The governor’s office weighed in, according to the Pittsburgh Post Gazette, which reported that a letter was sent asking that the court require the racing commission to reconsider its decision. If it does, it will be a different racing commission than the one that ducked the issue. Two of the commissioners then sitting resigned since the rejection and have been replaced by the governor. Both applicants plan to build five-eighths mile harness tracks, and both of course would be in line to receive racino licenses under Pennsylvania’s new slots laws. The stakes are high in this one. The Illinois House has delayed consideration of the legislation that would give the state’s racetracks 3% of the gross receipts of nine Illinois casino riverboats. The bill remains eligible for a third reading, but it is uncertain when it might be brought up for a vote. As proposed, the moneys would be deposited in a Horse Racing Equity Trust Fund, with 60% going to purses and 40% to track operators. Thoroughbreds would get 57% of the fund, harness racing 43%. Illinois racing needs help, foal registrations having fallen from 3,529 in 1991 to 1,891 in 13 years through 2004, the last year figures are available. Quality of the product has risen, however, with Illinois-bred horses now competing successfully on a regular basis at the Meadowlands. Ontrack betting in Illinois has dropped almost in half, from $835 million to $482 million in the years indicated. INDIANA OTB BILL MAY BE DEAD The Louisville Courier-Journal reports that Indiana legislation that would have forced Kentucky tracks to sell their thoroughbred simulcasts to all tracks in Indiana, including those in the southern Indiana OTBs that compete with Churchill Downs for bettors, appears dead. A bill addressing the issue failed to get a hearing or a vote before a midnight deadline last Thursday, and no other pending legislation could be used to which a simulcasting amendment might be attached. HTA director Jon Schuster of Indiana Downs, which supported the bill, said he still hopes the General Assembly might resurrect the legislation. That’s technically possible because the language passed one chamber, making it eligible to be inserted into another bill during a conference committee. State senator Bob Jackman, who introduced the bill, says rules require similar subject matter for that to happen, and no such bills exist. 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 March 7, 2006 INDIANA RACING BILLS DEAD TRAINER ARRESTED, CRUELTY The perils of an election year were more than Indiana’s legislators could face, and House bill 1077, which would have given Hoosier’s two tracks 2,500 slot-like machines, died despite bipartisan support when it failed to make the floor. Rick Moore, president and general manager of HTA member Hoosier Park, called the development “very, very disappointing,” and said he was frustrated by the industry’s inability to get a hearing to advance the legislation. Dying with the slots bill was Senate Bill 24, the controversial proposal to force Kentucky tracks to simulcast to all Indiana tracks or none. Larry Smallwood, a bloodstock agent representing the Indiana Horse Racing and Breeding Coalition covering both harness racing and thoroughbred racing, was not a happy camper either. “Our legislators are a bunch of sheep,” he said. “What our leadership wants to do is how the fold goes. I thought we had an excellent deal. Each county (there are 92 in Indiana) was going to get a portion of the money.” Maybe those legislators who survive the election will be braver next year. Sean M. Campbell, a leading trainer at Saratoga Gaming and Raceway last year who was suspended by the New York Racing and Wagering Board in August, has been arrested by police in Saratoga Springs on animal cruelty charges. The arrest came as the result of a month-long investigation of criminal charges after the People for the Ethical Treatment of Animals wrote to the police complaining about lack of action on the matter. A Saratoga Springs police lieutenant, Gary Forward, explaining the delay from August until a month ago, said, “The Racing and Wagering Board has a different set of standards to abide by.” Forward said a witness said Campbell repeatedly beat a chestnut and white horse in his stable -- not a racehorse -- with a lead rod, and a veterinarian who treated the horse said it suffered six wounds on the head and neck, which Forward described as “pretty deep gouges.” Campbell has trained at Saratoga for 15 years and was leading trainer at the time of his suspension in August, with 88 wins and $329,459 in purse earnings. He pled not guilty in City Court last Friday and is due back in court March 14. ANOTHER HURDLE AT VERNON It ain’t over ’til it’s over, and it’s not over yet at Vernon Downs. Now Stephen Gerling, the federal bankruptcy judge handling the Vernon matter, wants proof that the company bringing Vernon out of bankruptcy has enough money to pay the creditors. That company, Vernon Downs Acquisition, told Gerling in a letter that it received $5 million from an investor and has a commitment for another $15 million, but Gerling ordered them to have $15 million on hand by Monday. Jeff Gural, Acquisition’s point man, said he has deposited the necessary funds and would provide Gerling with an affidavit certifying that. Gerling, meanwhile, will hear arguments Thursday on $384,000 he ordered paid to horsemen that they say still has not been paid. BARBARA SAMBERG DIES AT 71 Barbara Provenzano Samberg, a longtime HTA director whose father Pat was a founder of HTA member Batavia Downs in 1941, died at her home in Boca Raton, Florida, last Saturday. She and her sister Donna ran Batavia after Pat’s death in 1977, and Barbara was the USTA’s first woman director when elected in 1988. She was named an honorary member of the U.S. Harness Writers’ Association in 1992, and retired from racing after selling Batavia in 1998. Her son, Michael McDonald, still works at Batavia, and her nephew, Eric Warner, has been racing secretary at Monticello Raceway for years. HTA extends its deepest sympathy to Barbara’s husband Jim, her sister Donna, and her five children. 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 March 8, 2006 NEW VET RULES IN INDIANA FRUSTRATED ON BEACON HILL After a lively all-day discussion Monday, Indiana’s racing commission adopted stringent new rules designed to assure the integrity of the state’s racing. The rules, first proposed by the racing commission’s executive director, Joe Gorajec, include provisions that veterinarians must be accompanied by track security personnel while administering Salix. Jeffrey Edwards, president of the Indiana Standardbred Assn., told the commissioners that Indiana horsemen and horsewomen were foursquare for integrity, but that they believed whatever minor rule modifications were needed should first be instituted by increasing fines and the severity of existing penalties. J. D. Lux, an attorney representing the Indiana HBPA, said the thoroughbred horsemen’s group “disagrees with the pressing need for some of the more expensive measures.” Implementation of the rules, estimated to cost $550,671, will be paid for by earmarking 2% from the allocation of riverboat gambling proceeds to racing in the state. The rules will take effect with the return of harness racing to Hoosier Park on April 1. With not much happening in the slots and simulcasting discussions at the state legislature in Boston, a Massachusetts state representative is threatening to attach the measures to a massive healthcare package. David Flynn, a Democrat whose district includes Raynham-Taunton Greyhound Park, told the Boston Herald, “No one has given me any guarantee that we’re going to have a vote on either simulcasting or slots, and I’m concerned with those 6,000 jobs (at the state’s four racetracks) if we don’t take action.” The Indiana General Assembly, meanwhile, heard from Policy Analytics, a firm hired to assess the social costs and benefits of gambling in the state. The company told legislators the social costs were between $75 million and $100 million, but that the state’s 10 riverboats accounted for $815 million in state revenue. It also suggested that for a million bucks it would do a more extensive study. We have a better idea. Give Hoosier Park and Indiana Downs slots, and save the million for the study and use it for services to problem gamblers. They can tell you about the social costs, and you can reap hundreds of millions to build a new stadium for the Colts, or build schools or hospitals, or whatever you choose to do with the added money. One track executive isn’t waiting for the legislature to pass to take action. Plainridge Racecourse’s president and CEO, Gary Piontkowski, isn’t sitting by waiting for slots. He sent out two of his pacers at Pompano Park Monday night under Peter Blood’s care, and both won with identical 1:57 miles. Who needs the grief of running a racetrack? RACING GETS BAD SHAKE IN KY We don’t know if they are milkshaking horses in Kentucky, but neither does the Kentucky Racing Authority or anyone else running things. Milkshake testing has been suspended because there aren’t enough vets on staff to do the testing. Only three are available, and no replacements have been named since the politically-charged firing of chief vet Gary Wilson after he blew the whistle on a shortage of personnel last year. Authority executive director Jim Gallagher says, “It’s something that we’d like to see addressed, and we’re in the process of doing that.” C’MON, BOYS, FILL THE BLANKS If you haven’t returned your dues formula blanks, please take a few moments and do so. We can’t assess dues for 2006 until we get all forms in, and we don’t want anyone from Bellagio busting our knees. 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 March 9, 2006 PRIX WINNER POSITIVE, DQ’D KY SLOTS HOPES TEETERING Jag de Bellouet, the winner of the Prix d’Amerique, Europe’s greatest trotting race and the equivalent in importance of the Hambletonian in America, has been disqualified after testing positive following his second straight victory in the classic event. The horse was disqualified, with Gigant Neo, trained by Sweden’s Stefan Melander, moved up from second and declared the winner of the Prix’s $500,000 first place money. Melander, when first seen in America, was a track photographer known as Tarzan. He graduated to training, won the Hambletonian in 2001 with Scarlet Knight, and now adds the Prix d’Amerique to his credits. Give me a dozen of that shot, Tarzan. A key Kentucky legislator, Rep. Denver Butler, said yesterday that if a compromise is not reached soon on the issue it will be dead for another year. Butler is chairman of the House Licensing and Occupation Committee that has been considering differing proposals to put a slots bill up to the state’s voters. He said yesterday, “Next week will be the final shot.” If it is does not pass then, he said, it will be a dead issue. “You’ve seen that show Mission Impossible,” he told the Louisville Courier-Journal. “I think the fuse is burning.” MORGAN TERRORIZING DOVER Tony Morgan, Harness Tracks of America’s Driver of the Year in 1996, 1997 and 2002, is off to a flying start in pursuit of a fourth title. He currently is leading the nation in all three categories used in determining the championship: races won, money won and universal driver rating percentage. Morgan, who won 8 races in 11 starts at Dover Tuesday night, leads all drivers in North America with 207 winning drives (HTA’s 2005 champion, Cat Manzi, is second with 158); is tops in money won by his mounts with $1,778,094 (Manzi is fifth with $1,293,752); and, perhaps most amazingly, Morgan leads North America in UDRS percentage standings as well, with a .388 slugging average after 849 starts (Manzi is second with .348). Morgan is on course to break the all-time record set by Walter Case Jr. in 1998, when Case won 1,077 races. At this time that year, Case had 174 victories. Morgan won the HTA title in 2002 with 700 victories, $5.1 million in earnings, and a .325 percentage. He won 788 races enroute to the championship in 1997, and tied with Luc Ouellette in 1996, when he won 853 times. CAL GOES TO DIGITAL LICENSES A newly developed digital photo identification system that stores information on a barcode on photo identification cards should greatly enhance security in California. The racing board is using the technology now, in a process that it says requires half the time of the old manual method with Polaroid pictures and lamination. The barcode on the back of the new photos contains the licensee’s name, license number, license status, and internal racing board processing information. Designed by systems analyst Terry Martin and CIO Mory Atashkar, the system is expandable to more information and applications. YOU GOTTA LOVE THESE GUYS Armando Frallicciardi, who runs a cafe called Pete Lorenzo’s in New Jersey’s capital city of Trenton, has regular politician customers who smoke cigars. “It’s ironic the guys who started smoking cigars here are the ones trying to drive me out of business,” he said in filing a suit to stop the ban they voted on public smoking. Another Jersey bar owner, Eleanora Travia of the Illusions Go-Go Lounge in Florence, asked, “Ever hear of Rosa Parks? I’m not going to the back of the bus and let the casinos sit up front. If they can smoke, I can smoke.” 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 March 10, 2006 SUPPLEMENT CO. APOLOGIZES VERNON OPENING LOOKS GOOD In an interesting twist on a major drug violation case, The Harness Edge reports the French supplement manufacturer Vetoquinol has issued a public apology for “an unfortunate mistake” that led to the disqualification of Jag de Bellouet, winner of Europe’s most prestigious trotting race, the Prix d’Amerique. Vetoquinol said the mistake in a manufacturing process of its Vita C. supplement had led one batch of the product to be contaminated with the anti-inflammatory substance Tolfenamique, barred in French racing. The substance showed up in Jag de Bellouet’s post race sample and the trotter, which won the Prix both last year and this, was disqualified as winner of the $1.2 million race, richest harness race in Europe. Vetoquinol also sent warnings to all trainers in France, advising them not to use the supplement. Vernon Downs’ federal bankruptcy judge, Stephen Gerling, could remove the last major obstacle to Jeff Gural and his Nevada Gold associates taking over the track Monday, when he is expected to sign the confirmation order, which spells out the Gural-Nevada Gold agreement to pay off creditors and bring the track out of bankruptcy. An exuberant Lee Woodard, bankruptcy lawyer for Vernon’s parent MidState Raceway, said late yesterday, “A year and a half and a lot of gray hairs later, it really is a done deal. All the partners have signed off on the order. There will be no more lawyers getting in the way of the order. If the judge wants something changed, we can turn that around in a few minutes.” Gural said he is looking at a March 31 closing, a return to live racing on Memorial Day, and a July 4 opening of Vernon’s racino. Still to be resolved is the matter of which horsemen’s group -- the old Harness Horse Association of Central New York, represented by Joe Faraldo, or the newly formed Vernon Downs Harness Horse Association -- will be certified, but the New York Racing and Wagering Board may issue a temporary license while they make that decision. To receive certification, a horsemen’s association will have to prove it represents at least 51% of horsemen racing at the track. Chat lines have been buzzing that the Central group, led by president Rick Papa, has been soliciting free memberships from horsemen at Buffalo, Batavia and Saratoga in hopes of swelling its numbers. Faraldo still was defending the group, and himself, saying, “I didn’t start this. Mr. Gural started this.” Regardless of who started it, the Racing and Wagering Board can end it, certifying one group or the other after examining the credentials of alleged members of the two, and Vernon could return to the fraternity of tracks by summer. That’s the brightest ray of news from New York in several years. CAL SEEKS TRACK FUNDING The California Horse Racing Board is working with state senator Dean Florez, a Shafter Democrat who is chairman of the Senate Governmental Organization Committee, to develop legislation for funding synthetic tracks, which the board plans to make mandatory for thoroughbred tracks that race more than four weeks a year. All commissioners approved the mandate after trainer Richard Mandella and Del Mar VP Craig Fravel urged the action as a move to save catastrophic breakdown of horses. California also is experience a shortage of entries in overnights. The cost of installing the synthetic tracks is estimated at between $6 million and $9 million a track, and the board chairman, Richard Shapiro, said at the announcement of mandating that “we might require legislation to seek financial assistance.” Let’s all hope it doesn’t involve raising the takeout and having bettors pay for the untested synthetics, a usual solution. Tracks affected are Del Mar, Hollywood Park, Santa Anita, Golden Gate and Bay Meadows. 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 March 13, 2006 IF AG WON’T, KAUFMAN WILL KYL SIDELINED, FOR NOW The Department of Agriculture, ignoring the wishes of Congress, gave equine slaughterhouses in Texas an out by allowing them to pay inspectors. The town of Kaufman in east Texas, where the Dallas Crown horse slaughter plant is located, wasn’t about to yield that easily. It has declared the plant a public nuisance, and its zoning board unanimously has voted to order the plant to close. The attorney representing 15 area residents told the board his clients “have been having to live a very long time with overwhelming noxious odor and dead animal parts being dragged around their yards. People were not even able to leave their homes and go to their back yards for a Sunday afternoon barbecue, it smelled so bad.” There is more than one way to kill a horse, and more than one way, it seems, to stop those who do so commercially for overseas profit. Depending on how you feel about Senator Jon Kyl’s Internet prohibition bill, or about Senator Kyl himself, you can thank or merely attribute to the Dubai port management company the sidetracking of his bill last week. The storm in the Senate over the ports matter disrupted Kyl’s plans to introduce his gambling prohibition amendment by attaching it to S2349, the Lobbying Reform Act. Consideration of that bill was postponed by the ports argument, and although it is expected to be taken up this week, Interactive Gaming News reports that the bipartisan managers of the bill have pledged to disallow any non-germane amendments to the bill as drafted. If they hold to that pledge, it would eliminate the opportunity for Kyl to move his prohibition bill by attaching it to this particular piece of legislation. Either way, he will be back. Persistence is one of his virtues, or is it vices? CALL FOR A TRACK SUPER Harrah’s Chester Casino and Racetrack is looking for a track superintendent for seasonal work from August 1 through Dec. 31. Interested parties should contact Carl Bosworth, Harrah’s Chester director of facilities, by telephone at area code 484-490-1703. If you prefer, you can reach him by e-mail, at [email protected]. CANADA LOSES A RACING MAN The death last week from bone cancer of Roland (Roly) Roberts removes from the Canadian horse racing scene a veteran figure of the racing wars. Roberts was vice president of finance for the old Ontario Jockey Club, now Woodbine Entertainment, for years, retiring in 1990 to run his own consulting company. He was a steward of The Jockey Club of Canada and served as treasurer of that group for 25 years, and was a founding member of both Racetracks of Canada and the Ontario Horse Racing Industry Association, or OHRIA. IN OTHER NEWS..... Dan Patch’s original tack trunk has been uncovered by a carpenter remodeling the great champion’s barn in Oxford, Indiana.....Lawyers for Mid-State Raceway have given the troubled parent of Vernon Downs a bill for $220,000 for representing the track in its bankruptcy woes..... Millenium Gaming Inc., which will become the new owner of The Meadows when it closes on its purchase from Magna Entertainment, will run a non-track casino near Gettysburg if the group seeking that license wins one......Mohegan Sun at Pocono Downs opened its new state-of-theart high tech simulcast facility today......Eileen Cashman, mother of harness racing executive John Cashman Jr., has died in Pompano Beach, FL, at 95. Our condolences to John and the entire Cashman family......53% of respondents in a Boston Globe poll said they favor slots at Massachusetts tracks....Harrahs reportedly wants to buy Suffolk Downs in East Boston. 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 March 14, 2006 THIS TAKES A LOT OF GUTS IN OTHER NEWS TODAY..... When you owe someone $622,880 and then have the chutzpah to ask them to let you make $500 million or more a year, you’re pretty gutsy. But we know that about Shawn Scott, don’t we? The engineer of the sale of Delta Downs, Bangor Raceway and Vernon Downs -- all of which netted him tens of millions of dollars -- is back, this time in Washington, DC, again, seeking to build a gambling hall in what the Washington Post calls “the heart of historic Anacostia” in the nation’s capital. The Post reports this morning that Scott has launched a new attempt to legalize slots in Washington, filing requests yesterday with the D.C. Board of Elections and Ethics to put the issue on the November ballot. Lori Montgomery, the reporter who covered Scott’s earlier failed attempt to do so, which was thwarted by a ruling on illegal signatures on petitions, wrote that Scott still owes the District of Columbia $622,880 in fines for violating local elections laws in that earlier campaign. In his new proposal, he would pay the city of Washington 25% of his earnings and keep the other 75% of an operation estimated to bring in as much as $765 million a year in earlier projections. Scott’s ever-present attorney, Deborah Deitsch-Perez, told Montgomery that “Shawn thinks there’s a possibility this could work and would be a terrific thing. It’s a great opportunity.” Dorothy Brazill, the activist executive director of DCWatch, a government watchdog group, had a slightly different take. “Nothing ceases to me amaze me about this,” she said, “but with all the bad publicity and all the money they’ve already spent, why would they come back so soon?” We can tell you, Dorothy. Shawn Scott, 39 and operating out of St. Croix in the Caribbean, can smell money 10,000 miles away. He’s on the scent, and bad publicity doesn’t deter him. His associates crank out their own, and Washington can gird for another Scott assault. Harness drivers Todd Cummings and Ralph Leogrande were hospitalized last night after a nasty spill at The Meadows. Cummings was taken to the local hospital in Washington, PA, and Leogrande was life-flown to the University of Pittsburgh Medical Center Presbyterian in Pittsburgh.....In a confusing parade of purchases, Pinnacle Entertainment of Las Vegas has announced it is buying Aztar Corporation of Phoenix for $1.45 billion in cash and assumption of $723 million in debt. Pinnacle has been shooting for a casino in Philadelphia and now announces it will pursue one in Allentown, where Aztar had hoped to get a license. It is paying $38 a share for Aztar, 24% over Aztar’s closing price last Friday......The Adminstrative Regulation Review Subcommittee of the Kentucky House, which had held up approval of new medication rules in the state a month ago, approved them yesterday. They include allowing the Kentucky Racing Authority to issue suspensions of more than five years and fines of up to $50,000 for some repeat offenders.......In New York, Senator William Larkin, chairman of the Senate racing committee, has introduced legislation that would raise limits on Racing and Wagering Board fines from $5,000 to $20,000....Kentucky Gov. Ernie Fletcher, meanwhile, asked racing industry officials to settle their differences on legislation involving workers’ compensation coverage for jockeys “as quickly as possible.” In Boston, State Rep. Daniel Bosley, a bitter foe of slots at tracks in Massachusetts. has been seeking the support of powerful committee chairmen in an attempt to defeat the legislation in a vote coming up soon.....At Pompano Park, the 4year-old Yankee Paco trotter You’re Next won his 12th straight race, taking a lifetime mark of 1:55.2. He is owned by nightclub singer Deborah Sassen, who performs under the name Debbie Dunay. She paid $22,000 for him as a yearling. He did not race at two, was gelded by trainer Fred Cohen, and became invincible. 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 March 15, 2006 LEGISLATORS’ FIELD DAY PA HOUSE REWRITES RULES It is not a good week for racing. In Florida, the state’s first draft of regulations for slots reflects Jeb Bush’s determination to cripple the deal Broward county residents voted for last year. Tracks could not have both poker rooms and slots, and an attorney for Gulfstream Park, Marc Dunbar, said the proposed rules requiring the tracks to give up their card room licenses would put them at a “massive disadvantage” because the state’s Indian casinos have no such restrictions. Dunbar says he now feels the issue “will be decided by a judge sometime in the future.” Marc Dunbar, the chief attorney for the Florida Division of Pari-Mutuel Wagering, the closest thing Florida has to a racing commission, said the rule stems from state law that says, “No person licensed to operate a card room may conduct any banking game or any game not specifically authorized by this section.” He called his interpretation “a plain reading,” saying, “I’ve heard people say they don’t like it, but I haven’t heard a legal argument against it.” Dan Adkins, vice president of Hollywood Greyhound and spokesman, official or unofficial, for Broward county’s four pari-mutuel operations, answered “The way you are interpreting this, you couldn’t play Monopoly.” ATMs also would be barred under the proposal, and track operators called this a security disaster, saying it would force gamblers to walk in and out with large amounts of money and “bullseyes on their backs.” Free comps also are barred, and Robert Norton, VP of gaming operations for Isle of Capri, which owns Pompano Park, argued that comps are allowed across the country and are necessary to reward local players. The ban includes any free items that racinos might give to gamblers -ranging from a T-shirt to an expensive car. One irate player at Pompano, Gil Norris, told reporters, “This whole deal stinks. The voters here voted for this...I don’t understand it.” It’s called politics, Gil. The House in Pennsylvania had a wild day yesterday in an orgy of major revision of the state’s slots rules. Among the items they changed -- all of which must meet with Senate approval -- were the sharing of slots revenues among local governments, ethics for state gaming regulators, and a ban on a slots casino near the hallowed ground at Gettysburg, where the union was saved. The House also did a total flip-flop on the issue of slots suppliers in an hour-and-a-half of debate and arm pulling. First it voted to change the 2004 law that eliminated the requirement that Pennsylvania’s casinos must buy their slots only from suppliers. Then, under intense pressure from lobbyists of the suppliers, 90 minutes later it reversed itself and voted to reinstate the mandatory use of suppliers. If the rule is approved by the Senate, all 14 casinos and racinos ultimately licensed in Pennsylvania will have to buy their slots from newly formed companies called suppliers, who will act as middlemen, buying slots from manufacturers and selling them to casinos. That is political patronage at the highest level of the art. This exercise in absurdity was unbelievable. At 5:30 the House voted 102 to 96 to make using suppliers optional, just making the minimum vote of 102 needed in the 203-member house. Then lobbyists for the “suppliers” went into action, collaring legislators in a small room outside the chamber. The House decided to reconsider the vote, and around 7 p.m. it voted 111 to 89 to retain the requirement for suppliers. An apologist for the change, Democratic leader H. William DeWeese, used Washington spin to explain the turnaround. He said the suppliers would be new Pennsylvania companies that would create new jobs in the state, and would promote “diversity” by letting minorities and women take part in the business. The House also boldly forbade elected officials from getting discounted rooms and food and drinks. Wow! What courage! 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 March 16, 2006 PEACE IN SIGHT AT VERNON AND THEN THERE IS THIS ONE Perhaps nowhere else, but after the federal bankruptcy judge approved the Jeff Gural-Nevada Gold proposal to bring the track out of bankruptcy yesterday, and Jeff Gural is scheduled to meet with members of the two competing horsemen’s associations tomorrow, it appears that peace and calm are settling over Vernon Downs, and it is likely to reopen for live racing by Memorial Day. Gural says he plans on closing by the end of the month, and then will turn his full attention to opening the track on May 26 and open Vernon’s racino by the Fourth of July. He also expects to open Tioga Downs for 43 days of live racing on June 9, racing on Sunday afternoons and Monday and Friday nights. As a breeder, Gural is introducing a novel innovation at Tioga. The owner of the winner of Tioga’s Miss Versatility Trot for older mares will receive a free breeding to either Tom Ridge, Revenue, Windsong’s Legacy or Cantab Hall, courtesy of Gural. All finalists in the race will receive complimentary accommodations for the Little Brown Jug and Jugette, courtesy of Delaware’s Phil Terry, who said, “It is nice to have a guy like Jeff Gural, with a passion for the industry, who wants to try different strategies and add fun to the racing industry.” Tioga also will play host to the Grand Circuit and the Tompkins-Geers stakes. Wonder if Shawn Scott would have known what a Tompkins-Geers is? If none of those Chester positions, plus the track superintendent’s job which we wrote about earlier, appeals to you, you might be interested in one at Magna Entertainment: Chief Executive Officer. Boss Frank Stronach is filling it temporarily, but Tom Hodgson is stepping down at the end of the month and Stronach is looking for a CEO “with indepth knowledge and experience in the horseracing and gaming industry who can lead the company in fully exploiting its opportunities in this sector.” Magna Entertainment, of course, is North America’s largest owner and operator of tracks, based on revenue, including its OTB facilities, and also owns and operates XpressBet, the national Internet and telephone account wagering system; Horse Racing TV, the 24-hour racing television network; RaceONTV; and MagnaBet, an international service. WANT NEW OPS? TRY CHESTER If you’re looking for change, or an opportunity at something new, you might want to give Mike Tanner, director of racing operations at HTA’s new member Harrah’s Chester Casino and Racetrack, a quick call. Mike got clearance yesterday to hire a racing secretary, mutuels manager and publicity/simulcast manager. Mike’s direct line is 484-490-1711, his e-mail address is [email protected]. FOR CREDENTIALS, HOW’S THIS All resumes are not created equal. We have one on our desk from a veteran racing writer and publicist who has a B.A. in journalism from Kent State, a master’s degree in government from NYU, a master’s degree in history from Villanova, and a Ph.D in history from Lehigh, obtained, we might add, at age 75. During his career he has been an editorial writer, copy editor, turf writer and handicapper during 36 years of racing coverage for the Miami Herald, Philadelphia Inquirer and New York Daily News, and a steward at Arlington Park, Hawthorne, and Washington Park. He won the Walter Haight award three years ago at 77. He is Russ Harris, of course. If you like experience, he’s your man. In other job news, Jeff True has been named president of United Tote by parent Youbet.com, with Youbet exec Joe Hasson named VP Operations and Joe Tracy moving to research and development. 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 March 17, 2006 ALIVE AND BREATHING IN KY BREATHING HARD IN FLORIDA Barely, perhaps, but breathing nevertheless, as far as slots at Kentucky’s tracks are concerned. The boys in Frankfort had great fun batting it around yesterday. Legislators hoping to get a constitutional amendment before voters next November had their hopes buffeted when House Speaker Jody Richards reassigned a key bill that would have done that to the House Elections, Constitutional Amendments and Intergovernmental Affairs Committee. The Speaker admitted the move didn’t help the measure, saying, “It will have a hard time” reaching the floor, adding, “We’re running out of time.” He said House members don’t want to approve any amendment proposals this session, which has only 10 days to run. Earlier, Rep. Denver Butler had added the proposal, which he had not shown to anyone, to a bill supported by KEEP, the Kentucky Equine Education Project, a horse industry group supporting a plan for slots at the state’s eight tracks. The executive director of KEEP, Jim Navolio, said he hoped some of the proposals in the KEEP proposal might be incorporated in a compromise into Butler’s bill, which calls for nine casinos without specifying locations or how the revenues would be allocated. Navolio said, “I don’t want to close any door.” A Churchill Downs spokesperson confirmed that Navolio spoke for the racing industry in Kentucky. So the issue remains alive, but on life support. Senator David Boswell, who proposed racinos at five tracks and casinos at four other locations, said, “It’s going to have rough sledding, but it’s alive.” One person who disagreed was the Rev. Nancy Jo Kemper, executive director of the Kentucky Council of Churches, who said she believes it is dead for this session. Three-fifths of both the House and Senate would have to approve an amendment before it could go on the November ballot, and Boswell said even if it passed it would have a hard time getting voter approval without spending specifics. There is little different to report from Tallahassee, Florida’s capital, than from Frankfort, where the Kentucky legislators gather. A senator from Hollywood, Ken Gottlieb, has sponsored a bill that would allot the state to collect up to $1,000 for each slot machine in Broward county -- when they finally get there -- and give the money to nearby cities. Some quick multiplication indicates that could cost each of the four pari-mutuel facilities in Broward county, including HTA member Pompano Park, up to $1.5 million a year, since each can have 1,500 machines unless Tallahassee derails that already passed legislation. The Gottleib bill passed its first House committee test yesterday, getting through the traditionally anti-gaming House Business Regulation Committee. It still must move to three more House committees and the Senate, which has looked on gambling with a bit broader view. According to the Miami Herald, some legislators and lobbyists have raised questions about the constitutionality of the proposed impact fees. A lobbyist for Dania Jai Alai, Aaron Scavron, said, “This is unconstitutional. You can’t call a tax a fee and turn it into a fee.” Gottlieb, a lawyer, says his bill has been vetted and is legal. Whether the Gottlieb bill advances or not, the hometown of each of the four betting facilities in Broward county will get 1.7% of the first $250 million of slot revenues. and 2.5% of everything over that.. NO RAINBOWS IN KANSAS After four hours of debate, the Kansas Senate late last night killed proposed legislation that would have given Kansas tracks slots and created a casino in Kansas City. The vice president of the Senate told his colleagues, “By the year 2008 we’re going to be engulfed in hundreds of millions of dollars in red ink. If gambling is not your way to solve that problem, then tell me what your way is.” There was no audible answer. 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 March 20, 2006 UP IN MASS, DOWN IN MD HARRINGTON SLOTS EXPAND Hopes are still high in Massachusetts for slots, and down in Maryland. CBS4 Boston reports a rally at the House on Beacon Hill today, and its Web site headline yesterday read, “Support for Slots at MA Race Tracks Growing.” The Massachusetts Senate passed a slots bill last fall calling for 2,000 slots at HTA member Plainridge Racecourse, Suffolk Downs and two dog tracks, with a $25 million initial license fee, renewable for $25 million every five years. Mayors of some Massachusetts cities - notably Worcester, which would get a projected $5 million a year if slots passed plan to be on hand today. Mayor Tim Murray says that money could provide his city with 50 new teachers, 25 police officers and 25 firefighters, and he wants to see the bill pass. He says, “We’re having thousands of Massachusetts residents on a dayto-day basis going to Connecticut when we could be using this money.” That argument was echoed by George Carney, owner of Raynham-Taunton Greyhound Park, who said, “Fifty percent of the people who to go Lincoln Park (in neighboring Rhode Island) are from Massachusetts, and 75% of them drive by us.” A House vote is expected soon, but Gov. Mitt Romney has promised he will veto the measure if it reaches his desk. Given that, hopes for slots may or may not be realistic, but it is clear there is no reason for optimism in another jurisdiction seeking them, Maryland. The Capital Online in Annapolis ran its lead story today with a first paragraph reading, “For the first time in four years, there’s barely a mention of the word ‘slots’ in Annapolis during this legislative session, as the state has rebounded from nasty financial straits to a $1 billion surplus.” The governor’s office, which has pushed hard for slots in past years, admits it would be a waste of time in an election year, and Terry Gilleland Jr., a slots supporter on the Ways and Means committee, said the same, adding, “Leadership won’t allow it.” Full House Resorts, Inc., whose subsidiary Gaming Entertainment Delaware manages the racino at HTA member Harrington Raceway, has announced details of expansion of the racino, which is owned jointly by Harrington and Full House’s GED. Plans call for an additional 66,630 square feet to be added to the existing 75,128 square feet, with remodeling to a consistent theme. The expansion will include 2,000 new slots, a 300-seat multipurpose room, a remodeled and modernized 50-seat steakhouse, an 80-seat bar, a new 364seat buffet and a 118-seat coffee shop. Outside, an additional 426 parking spaces will be added, with all car parking within 800 feet of the entrance, and parking for 28 buses. Slot win at Harrington increased 5.43% from 2003 to 2004, 6.41% from 2004 to 2005, and is up 30.65% this year over the previous January and February. Full House receives a management fee based on a formula computed from revenues. ROCKING A BOAT FOR AN OAR U.S. Congressman Ed Whitfield of Kentucky and his wife Connie, vice chair of the Kentucky Horse Racing Authority, are friends of racing, but a proposal Mr. Whitfield is considering in the House is ill-advised and would not serve the sport and industry. He told the Lexington Herald-Leader he may propose legislation in Congress to provide funds for workers’ compensation for jockeys by amending the Interstate Horseracing Act of 1978. For anyone -a well-meaning Congressman or anyone else -- to mess with that legislation in these perilous times for horse racing would be a large and sad mistake. We understand his wish to resolve the jockeys issue, which Whitfield understandably considers important, but we agree with Alan Foreman, CEO of the Thoroughbred Horsemen’s Association, that doing so by opening the Interstate Horseracing Act could open a Pandora’s box of issues that could create chaos. 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 March 21, 2006 A CALL FOR HELP IN ILLINOIS SURPRISING TURN IN FLORIDA The Illinois Harness Horsemen’s Association has sent out an SOS to all members, asking them to call their state representatives and urge them to vote for House Bill 1917, but without its amendment seven. The bill itself, introduced by Rep. Bob Molaro, attempts to rectify inequities in a 1999 bill that allowed Illinois riverboats to remain dockside, rather than cruising. Horsemen supported that bill in a deal which called for them to receive 15% of the tenth riverboat license in Illinois, but that license never has been issued. The riverboats, according to the IHHA, have received windfall profits of over $4 billion from the 1999 bill, and the horsemen nothing. The amendment 7 in Molaro’s bill that the horsemen now want removed would decrease moneys received by the horse industry from riverboats by 33%. Molaro has said that if there is enough support for his bill in its present format he would move it without amendment 7, and the IHHA is campaigning hard to make sure support gets there. What’s this? Common sense in Tallahassee? There may be more to this than we can see, but it was heartening yesterday to learn that the Florida Senate Ethics and Elections Committee took a hard swing at the Department of Business and Professional Regulation -- Florida’s nearest thing to a racing commission -- for over-policing racing and exceeding its statutory authority. The senators ire was raised by rigid rule-making by the bureaucrats, including requiring tracks with slots, when they get them, to close their successful card room operations, and prohibiting comps of any kind. The law passed by the legislature barred only free drinks. Senator Bill Posey, a Republican, asked David Roberts, the director of the Department, “Where in the world do you think that you have the authority to even suggest that nothing else is comped? What is not totally crystal clear (to you) that under this law you cannot promulgate rules that exceed your statutory authority, and you have absolutely no statutory authority whatsoever to go beyond any comp for alcoholic beverages?” That’s pretty direct language, and should be understandable to even the Department of Business and Professional Regulation. But don’t bet on it. The inspiration for its actions comes not from the trees but from the Bushes. NOT A TEA PARTY, BUT NOT BAD It wasn’t exactly the Boston Tea Party all over again, but it wasn’t a bad effort. More than a hundred horsemen showed up in front of Boston’s stately State House yesterday, calling for House action on a bill approved by the Senate last fall that would give each of the state’s four racetracks 2,000 slots. The demonstrators waved at cars and held signs asking House Speaker Sal DiMasi to let the House vote on the bill, but DiMasi wants agreement on simulcasting issues before he will allow a vote. The rally included a horse in full harness. We’re not telling folks in Massachusetts how to run their campaign, but we hope they remind House members that Paul Revere rode a Narragansett Pacer on his famous ride announcing the British were coming. It’s high time the favor was returned, and they should let DiMasi know that. In another rebuke of the Department, a threejudge panel of the 1st District Court of Appeal in Tallahassee unanimously ruled that the Department had not shown any danger “to health, safety or welfare” in barring poker tournaments at Florida tracks. The Daytona Beach Kennel Club had filed the action, and it was only hours after the appeals court threw out the Department’s rule that the track resumed its popular tournaments that require a $45 entrance fee. The Department isn’t hitting very well these days, but they’ll undoubtedly keep swinging. 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 HOUSE SETS DATE IN BOSTON House lawmakers in Massachusetts were scheduled to set a date today to formally debate the bill that could give 2,000 slots to each of the state’s four racetracks, including HTA member Plainridge Racecourse. The House members also are expected to approve another extension of the simulcasting law, which would give the tracks more time to work out a final compromise. A debate on the final resolution of this matter is set for April 10. The Senate passed the slots bill last fall, and the governor, Mitt Romney, has said he will veto it if it gets House approval. March 22, 2006 would receive a fee of 5% of total project costs, subject to a $600 million ceiling, to build the casino. Once the casino was opened, another Empire Resorts unit would operate the casino for a management fee equal to 30% of revenue. Empire shares rose 34 cents, or 7.4%, to $4.90 in morning trading on the NASDAQ. Over 52 weeks, the stock has ranged from $3.25 to $9.20 a share. OHIO SLOTS DEAL REPORTED Four amendments were attached to favorable slots legislation in Kentucky yesterday, and the Speaker of the House, Jody Richards, said he doubts the issue will pass. The Louisville Courier-Journal headline on the matter read, “Gambling bill’s future looks bleak.” One amendment of the bill called for racinos at all eight tracks in the state, along with three other casino locations. If that plan were to receive three-fifths approval of the House and Senate and a majority of voters next November, the General Assembly would be required to pass legislation setting up the racinos and casinos. The sponsor of the legislation, Rep. Denver Butler, a Louisville Democrat, opposes the amendments and says that if any get on his bill, he would work to kill the measure, which calls for a November referendum on slots without some of the specifics in the offered amendments. The Cleveland Plain Dealer reports this morning that “A deal may be imminent for a casino initiative on the November ballot,” with owners of Ohio’s seven tracks close to agreement with Forest City Enterprises and developer Jeff Jacobs on a plan that would ask voters to approve racinos at all of the tracks and at two sites in downtown Cleveland and in Cincinnati. Cleveland business and labor leaders and city officials have wanted full fledged casinos including slots and table games, and the debate has gone on for four years. Now, the paper reports, track owners have proposed a compromise, with voters in each county where a track is located getting to decide the fate of table games. Cleveland is in Cuyahoga county and part of Northfield also is located in Cuyahoga county, part in Summit. While these negotiations continue, the Eastern Shawnee tribe of Oklahoma is pressuring the cities of Lima and Massillon to sign deals for casino-resorts, but those proposals are longshots. THE EMPIRE STRIKES BACK EWART RETIRING AT INDIANA Empire Resorts is trying again to get a casino at Monticello Raceway. In a filing yesterday with the SEC, Empire said it had secured an agreement with the St. Regis Mohawks to develop and manage the casino for the tribe. Under the agreement, Monticello Raceway Development, an Empire subsidiary, Veteran racing secretary Jim Ewart, currently at Indiana Downs and formerly at Scioto Downs and other tracks, is retiring from racing after 47 years in the sport. Ewart, now 67, says, “It’s time to get back to the homestead.” Scott Peine, currently at Balmoral Park, will succeed him at Indiana Downs. KENTUCKY OUTLOOK ‘BLEAK’ 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 March 23, 2006 “WE GOT LUCKY THIS TIME” ARE WE MISSING SOMETHING? That from Roger Steger, fire chief of Ocean City, MD, after his firefighters battled a blaze yesterday afternoon at HTA member Ocean Downs. “It was pretty fast work,” Steger said, but even so one horse died in the fire and Chick Givens, a member of the track’s security staff, suffered a broken shoulder leading a horse out of the burning barn. GM Pete Syzmanski praised his efforts. It took more than 100 firefighters two hours to bring the fire under control. Six of the seven horses trained by Lewis DuBrel stabled were led to safety, and fortunately trainers Bobby Cotten and Jim Brittingham had not yet shipped their horses to occupy the other side of the 14-stall wooden barn. Ocean Downs does not begin racing until June 24, but between 200 and 300 horses train there. Without giving our thoughts on having our telephone lines tapped -- we think you might know them by now -- we cringe under the latest monkeying around with citizens’ rights in Florida. The South Florida Sun-Sentinel did not give the name of the senator who proposed this latest outrage, saving him embarrassment by simply identifying him as “a Central Florida senator,” but he filed a proposed constitutional amendment that would prevent voters in Miami-Dade county from deciding if they want slot machines. We grew up believing in the will of the electorate, until Florida began repudiating it, and now this insult. Florida voters approved a statewide constitutional amendment allowing Broward and Miami-Dade voters to decide if they wanted slots in their areas. Central Florida interests, including Disney World, opposed the measure, but citizens of Florida approved it. Broward voters approved it, and Miami-Dade voters rejected it, which is how the game is supposed to be played. It is likely Miami-Dade voters will be asked again next year, so now this clown proposes they not be allowed to make a choice. Feed him to the alligators. LOSING FANS? RAISE THE PRICE When racing is losing customers, as it has been on-track in recent years, what is the logical course of action? In Kentucky, where legislators have their own ideas as to how to help an industry that has brought the state fame and fortune, they think the logical course of action is to raise the price of the product. That’s what the state’s Environmental and Public Protection Cabinet recommends doing to fund a workers’ comp program for jockeys. A committee of the Kentucky Horse Racing Authority had recommended raising $1.2 million a year for that purpose through a one-third assessment from owners, one-third from tracks and one-third from purses. Then the ironically-named Public Protection Cabinet stepped in and said, “Nah, let’s take it from the public. We protect them.” Harvey Wilkenson, a Keeneland VP, said the tracks agreed to boost takeout because the Jockeys would not agree to using purses, since they share in them. They don’t think they should contribute in any way to their own welfare. THE END - AGAIN - IN MARYLAND Only cats and slot bills in Maryland possess multiple lives, and slots lost another of them yesterday when Senate president Thomas V. Mike Miller -- a longtime ally of Gov. Robert Ehrlich Jr. in his slots fight -- gave up for this year and pulled the plug, cancelling a slots hearing in the Senate Budget and Taxation Committee. An election year proved more of an obstacle than either the governor or legislators were willing to test, and the end yesterday marked the fourth consecutive year the legislature has declined to pass a racino bill. If a Democratic governor is elected this year (Ehrlich is a Republican) Miller may renew the fight again. 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 March 24, 2006 PERRITTI HIT BY MAJOR FIRE NY, ANTIGUA & THE INTERNET One of harness racing’s major breeding farms, Perretti Farms in Cream Ridge, NJ, suffered major losses last night when its receiving barn, housing expensive broodmares and their colts and fillies, burned to the ground. Three broodmares that had won more than $300,000 each in their racing careers -- My Starchip, Funny Malentine and Armbro Terrace -- and their foals were lost. Farm manager Bob Marks estimated the total loss at between $1.2 million and $1.5 million, and said it appeared that the horses died from smoke inhalation before farm personnel could lead them from the barn. Early reports do not indicate arson, and a malfunction of an electrical system that keeps water pipes from freezing is suspected, but the exact cause of the fire is not yet known. Two days earlier, a stable fire at Ocean Downs destroyed a training barn, with one horse lost and others in the barn saved. Who, if anyone, gets the New York Racing Association franchise, whether in November 2007 or before, remains an interesting question, almost as interesting as the kaleidoscope of who represents whom and what interests in the state. Turn it one way and you have the now disbanded Friends of New York Racing; turn it another and you have Empire Racing Associates, with part of the same staff as FONYR, and of course somewhere in those views you will find a brightly colored image of Tim Smith, ever present. Yesterday at the first Fan Forum, 50 or 60 folks, some with more impressive credentials than others, showed up at the invitation of still another group, the state-appointed Committee on the Future of Racing in New York. There was much talk about the need for Internet betting, rebates, overhaul of OTBs, and not changing the nature of Saratoga runners. This came from Jeff Perlee, the former director of the New York State Lottery, who now is CEO of Empire Racing Associates. Perlee is keenly aware that Frank Stronach scared Saratogians in late January when he suggested he would turn Saratoga into a year-round entertainment destination if Magna Entertainment was to obtain the NYRA, and his bid was to reassure the burghers that their quiet and peaceful province would remain that way except for its annual chaos in August. LEARN AND EARN WITH SLOTS That’s the rallying cry in Ohio, where backers of slots were to announce today a proposed constitutional amendment to allow slots at the state’s seven tracks and at two separate facilities in Cincinnati and Cleveland. The proposal would allow voters in counties with slots to vote on creating casinos after four years, and would use portions of the state’s share of revenues to fund scholarships for Ohio college students. Just over half of the revenues would be used for the scholarships, economic development programs, higher purses at Ohio tracks, and problem gambling, which would get a 1% share of the moneys. Proponents are using the story that Pennsylvania used, that Massachusetts is using, and that Maryland has tried unsuccessfully to use: that citizens of their states are not going to stop gambling, and that millions of dollars in revenues are being lost as those citizens cross state lines to bet at other racinos. While all of this was going on, the little government of Antigua reminded the United States that it had -- after almost a year of silence -- only until April 3 to reveal what it plans to do about Antigua’s winning argument with the World Trade Organization Dispute Settlement Body about Internet betting prohibitions. Antigua is deeply concerned about recently introduced Internet prohibition legislation, and wants to know if the U.S. government respects the WTO compliance process or not. 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 REPORTS OUT, MORE TO COME HTA’s monthly reports to directors for February and March -- the Comparative Pricing Survey and a Survey of Player Reward Programs at Racetracks -- are posted for password holders, and April’s will be shortly. The schedule of coming reports calls for a Percentage Analysis of Revenue and Expenses in April; Account Wagering: A Look at Account Provider Amenities and A Survey of Account Wagering Holders, in May; Part I and II Transcripts of the 2006 Racing Congress in May and June; and Purse Distribution Analysis 20032005 in July. COMPROMISE IN CLEVELAND? The Cleveland Plain Dealer reports that “Cleveland’s power brokers are trying to squeeze more tuition dollars out of a proposed slots-parlor initiative, even threatening to file a gambling proposal of their own if slots proponents don’t kick the tax rate up a notch.” The item came in the wake of the announcement Friday of the detailed plan of Ohio’s seven tracks and Forest City Enterprises and Jeff Jacobs that calls for slots at all Ohio tracks and two casinos in Cleveland and Cincinnati. Under that proposal, a tax rate of 45% has been proposed, with monies going to college tuition for Ohio high school students. The Cleveland ‘power brokers,’ led by Mayor Frank Jackson of Cleveland, Cuyahoga county commissioners, and something called The Greater Cleveland Partnership, want a 47% tax, with a larger share for them. They point out that Pennsylvania’s rate will be 54% when that state’s slots get underway, hopefully next fall, and they say the 47% would make the proposal easier to sell. Pennsylvania will charge each of its tracks $50 million for a one-time license; there is no such provision in the Ohio bill. Slots proponents say they will not n e gotiate the rate, but a Cuyahoga commissioner, Peter Lawson, sounded conciliatory. March 27, 2006 “We are all reasonable people and will work something out, because there’s too much at stake. We’d prefer to avoid the nuclear option of not supporting it.” Polls show a large majority of Clevelanders support slots and casinos, and their votes will be needed to offset the large anti-gambling vote in the lower half of the state south of Columbus. BIGGER BAIT FOR BIGGER FISH Proponents of slots at the four tracks in Massachusetts are increasing the size of their lures as a critical House vote nears. The tracks are proposing to funnel the state’s take from the slots to Massachusetts municipalities. Worcester’s mayor already is on board, and the State Treasurer’s office thinks the move could generate more than $489 million each year. A state representative from South Boston, Brian Wallace, says, “If someone from Lawrence is on the fence and I say, ‘Lawrence, you are getting $12 million here,’ if you are on the fence you jump off the fence pretty quickly. That opens eyes - that’s real money.” The Boston Herald calls the idea “a bold gambit amid increasingly intense jockeying at the State House over the slot proposal as an April 5 vote looms.” The Senate approved a slots bill last fall, calling for one-third of taxes generated by slots to go to local communities. Now Wallace and a colleague, Robert Coughlin of Dedham, are proposing revising the formula so that all slot revenue goes to local aid. That would mean that Boston would get $40 million a year, rather than the $12 million projected under the Senate bill. Wallace said that alone “could put almost 400 cops on the street.” THE HARD-TO-GET EIGHT It’s not exactly the Final Four, but eight member tracks still have not returned their dues allocation forms. C’mon, guys, you’re holding up the boat, the train and plane. 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 March 28, 2006 LET’S ALL SELF DESTRUCT GURAL TALKS TO HORSEMEN And take the sport with us. This morning’s news brings word that Joe Faraldo, fresh from his unsuccessful $9 million suit at Vernon Downs, which was thrown out of court, is back with another multimillion dollar action, this time against Yonkers Raceway. Joe’s organization, the Standardbred Owners Association of New York, has filed a suit in the Suffolk county Supreme Court seeking an immediate reopening of the track, monetary damages for unpaid purses, and breach of contract. Yonkers, of course, is in the midst of a huge rebuilding program that will give it a racino sitting on one of the busiest highways in America, in the most populous city in America. The promise of that racino, and what it will mean to horsemen who will share in its financial rewards, should be enough for any rational horseman to understand. Lawyers have to work, of course, and with Vernon now resolved Joe has turned to Yonkers. His SOA -he has been president of the organization for what, 25 years? so it clearly is his SOA -- says that the track is holding $2.5 million in purse money but has made no effort to reopen after having promised that the live racing hiatus would not be longer than four months. Anyone who has dealt with construction knows such assurances can at best be based on estimates. In any event, to sue what is likely to be one of the most profitable racino operations in the nation for delays, rather than wait another six months or so for completion of the project and the commencement of racino operation, defies good judgment, and is stunning beyond belief. Horsemen and others love to talk about racetracks’ greed. Is there a mirror in the house? We do not know where this one winds up, but if Fred Martin still is actively practicing law, Yonkers should immediately get him back in action. Over the years he has beaten Faraldo time after time, and there is no reason to believe he can’t do it again. With the Vernon matter now concluded in court, we have received, from a horseman, a memorandum sent to Vernon Downs’ horsemen by Jeffrey Gural, and it is an interesting document. After thanking those who took time to meet with him last Friday to hear his plans for Vernon, he said he would like “to clear up one possible point, since I was asked if we would agree to abide by whatever decision Racing and Wagering makes regarding which association would represent the horsemen.” Gural wrote, “You may recall that I basically stated that I had made a proposal to the Harness Horse Association of Central New York whereby all sides would agree to a final determination by Racing and Wagering and not look to further litigate this matter either in state or federal court. The only conditions I set out were that the existing contract would be honored by either side and the monies left over from the $384,000 that I put into the purse account would be used to pay approximately $90,000 in unpaid purses and any legal fees that the Harness Horse Association of Central New York had with the balance put into the purse account. “It should also be noted that my agreement with the Southern Tier Horsemen’s Association Inc. allows me to take 20% of the VLT revenue from Tioga and transfer it to Vernon. I have a verbal agreement that I would only do this in the event that Ken Jacobs’ group (the new horsemen’s group at Vernon) is certified by Racing and Wagering to represent the horsemen. In the event that they were to choose Rick Papa’s group essentially the purses at Vernon would be approximately $1,000,000 less and the purses at Tioga would be approximately $1,000,000 more. The Tioga horsemen have the option to opt out of this agreement after two years, but hopefully they will recognize the value of doing it this way.” 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 March 29, 2006 NYRA WINS AFTER LONG FIGHT ELSEWHERE ON SLOT FRONT... The New York Racing and Wagering Board yesterday approved rebates for the New York Racing Association and Capital District OTB. Senior vice president Bill Nader called the decision “the best payback for the industry for all stakeholders,” although there were dissenting voices in New York from other OTBs. Although the programs for the two entities differ slightly, both offer eight rebate levels, starting with monthly totals of 2,000 points and graduating upwards to a 500,000 point total, all points offered on a 1 point per $1 wager on NYRA races and one-half point for each dollar bet on other races. The rewards start at 1% of handle for bettors who accumulate 2,000 points a month, and increase proportionately to a high of 7% on exotics for players who accumulate 500,000 points or more a month. The program, to be called NYRA Rewards in NYRA’s case, will include all current customers of NYRA’s account wagering program and will be open to all bettors who enroll. All bets must be made through NYRA’s account wagering telephone center or a self-service terminal to receive point credits. Nader called the plan a “very customer friendly and well thought out program that is going to bring us up to date in the competitive market. We view this as no different than an airline, a hotel, or a restaurant that is trying to stay competitive in a rapidly changing marketplace.” The board’s approval came after a year-long NYRA effort, and year-long opposition by some off-track betting companies. Nader says bettors using the new program “will know that they will be betting through a platform that gives the most back to the racing industry and that should be worth something.” One hopes his optimism proves accurate, but New York City OTB and Suffolk OTB did not request rebates, believing they cannot afford to give rebates under present economic conditions in the pari-mutuel industry. In Kentucky, racinos died a quiet death when the issue of a public referendum on the matter was never called for a vote during the legislative session. KEEP, the organization that spent $1.4 million in an advertising and lobbying push for slots, says it will continue its efforts. KEEP’s executive director, James Navolio, said, “We had a beautifully conceived plan and 92% of the people in the state wanted to vote on the issue and 67% agreed with our side of the issue. When you win the battle for public opinion, you’re obviously disappointed when the legislature doesn’t give them the chance to vote on it.” In New Jersey, the Newark Star-Ledger, editorially supported the idea of slots at the Meadowlands. “Missing from Gov. Jon Corzine’s budget proposal,” the newspaper said, “was any mention of generating more revenue by putting 6,000 video slot machines at the Meadowlands racetrack. It’s a move that painlessly could earn up to $300 million a year for the state.....When Pennsylvania launches its slot parlors this fall, it’s inevitable that Atlantic City will take a hit. But the casino companies won’t. They can more than make up for any losses in New Jersey with their Pennsylvania profits. The Garden State, on the other hand, will just lose. It doesn’t have to be that way. If the deal is structured correctly, Atlantic City casinos could share in the Meadowlands operation and both they and the state would be winners.” In Pennsylvania, state senator Vincent Fumo, a Philadelphia Democrat who played an active role during the slots debate, told the Pennsylvania Press Club he did not think licenses would be awarded until 2007 and casinos would not be up and running until late 2008 or 2009. The Gaming Control Board chairman says the board will award conditional licenses by Labor Day this year. Fumo says Republicans will not allow Gov. Ed Rendell to cut any casino ribbon before the election. HARNESS TRACKS OF AMERICA Executive Newsletter A daily fax and e-mail report on racing and gaming developments in North America and beyond Paul J. Estok, Editor Editor Stanley F. Bergstein, LEGISLATION FAILS IN ILLINOIS Legislators in Illinois yesterday defeated a proposal that would have used a new tax on casinos to help all of Illinois’ horse racetracks. Sponsored by Democratic Rep. John Molaro of Chicago, the bill would have levied a new three percent tax on Illinois’ nine casinos to raise about $54 million per year. That money would have been used to pay for track repairs or expansions and to increase purses in the state. Molaro, who is a supporter of both horse racing and casino gaming, has tried to advance similar proposals before, and he has vowed to make another attempt next year. Molaro contends that Illinois has failed its horse tracks. In 1990, when the state legalized casino gaming, the tracks warned that it would drive them out of business, and the legislature then agreed to help them, he said. After it approved casino gaming, Illinois set up a system whereby its 10 casinos would pay into a fund for racetracks. But only nine casinos have been operating since the Emerald Casino folded in 1997, and its license remains enmeshed in litigation. When another casino uses the Emerald license to open, horse tracks are expected to begin receiving a subsidy, but there is no telling when that might be. ABRAMOFF SENTENCED IN FL Once-powerful Washington lobbyist Jack Abramoff, much of whose work dealt with gaming of all sorts, was sentenced Wednesday to five years and 10 months in prison for his role in the fraudulent purchase of a fleet of casino cruise ships. U.S. District Judge Paul Huck sentenced Abramoff and his partner, Adam Kidan, the shortest possible prison terms under sentencing guidelines, but did so in large part because of their cooperation in ongoing and potentially far-reaching congressional corruption investigations. The Florida case dealt with the pair faking a $23 million wire transfer to fraudulently obtain a $60 million loan for the 2000 purchase of SunCruz March 30, 2006 Casinos. Abramoff and Kidan pleaded guilty to conspiracy and wire fraud. In addition to their prison terms, the judge ordered them to pay $21.7 million in restitution and serve three years’ probation upon their release. CHANGES IN CANADA It’s been reported by The Harness Edge that Gerard Spoor and Domenic Parravano, general managers of Flamboro Downs and Georgian Downs, have been “relieved of their duties” by corporate parent Great Canadian Gaming. The story quotes Chuck Keeling, vice president of racing operations for Great Canadian and an HTA director, as stating that the move is a strategic one and that the company appreciates the efforts of the two executives. Bruce Barbour, a vice president with Great Canadian, has been appointed to manage day-to-day operations at Flamboro. Chris Roberts, formerly with Trot Magazine, has been named director of operations at Georgian, reporting to Barbour. FURTHER ON NEW YORK REBATES As reported in yesterday’s Executive Newsletter, the New York State Racing and Wagering Board approved rebate plans for the New York Racing Association and Capital OTB. What wasn’t reported was how the organizations intend to pay for the new program. As part of the approval, the Board also okayed a one percent takeout increase on straight wagers on NYRA races. While the rebate program doesn’t begin until May, the takeout increase takes effect beginning this Saturday. DOWN TO THE LAST FEW... ...And we need your help. The HTA office is still waiting for a few dues surveys to be returned. Directors of HTA member racing associations that have yet to respond are asked to expedite the completion of this all-important document. 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 March 31, 2006 LIMITS FOR INDIAN GAMING??? HUGE BLOW TO MASS. SLOTS A U.S. Senate panel has voted to broaden government authority on Indian gaming, including limits to prevent tribes from opening casinos on land that is not part of their reservations. If Congress follows through with the measure, it would be the first substantial change to the landmark law that provided the legal foundation for tribes to sponsor legalized gaming for economic development and to enrich their membership. The new legislation, sponsored by Indian Affairs Committee Chairman John McCain, tries to curb the practice of tribes “reservation shopping” for land that could be placed in trust and become eligible for casino development. It repeals a “two-part determination” procedure that has allowed the secretary of Interior to confer trust status on off-reservation property acquired by a tribe for gaming if it is determined that gaming will benefit the Indians and not harm the surrounding community. The issue of off-reservation casinos has flared in Wisconsin, New York, Oregon, Ohio and Michigan among other states. The panel also approved an amendment that would require tribal councils to report gaming revenue to their membership. McCain said he was uncertain when the Senate might take further action on the legislation. He also noted that opponents would no doubt attempt to block the bill. Massachusetts House Speaker Salvatore DiMasi has publicly disputed assertions by supporters that allowing slot machines in the Bay State would boost the economy, and he predicted that the House would defeat pending legislation to bring 8,000 machines to four racetracks. Delivering a major blow to the bill days before the scheduled House vote on April 5, DiMasi said it would be appalling for the state to begin relying on slot machines to generate revenue. “To be perfectly honest with you, it doesn’t appear to me it’s the economic stimulus proposal that people suggest,” DiMasi said. “I don’t think we’ll get the revenues people think we will.” DiMasi’s statements coincided with a 44-page report that a leading slots opponent, Rep. Daniel Bosley, is circulating on Beacon Hill that says that slot machines would not save the state’s struggling racing industry. The report calls racing a “moribund industry.” Until two days ago, DiMasi has been publicly silent on the slot machine bill. Though he said he was not asking members to vote against the bill, other lawmakers and legislative aides reported that he was influencing the behind-the-scenes debate on key votes. A consultant for the state treasurer’s office released a report in January that found slot machines at the state’s racetracks would raise $1.1 billion a year without having any dramatic negative effect on state lottery revenues. NEW PREXY FOR ARLINGTON Roy A. Arnold has been named president of Arlington Park and its network of Trackside off-track betting parlors. Arnold joins Arlington, a Churchill Downs-owned racetrack, following a military career in the United States Marine Corps, where he most recently served as an assistant wing commander. “Roy Arnold has a proven record of developing young talent,” said Andy Skehan, executive vice president and COO of Churchill Downs Inc. “His ability to mentor team members and elicit exceptional performances from support staff will be a valuable asset.” BREAKING NEWS FROM N.J. A report published by harnessracing.com, the Web site of the The Horseman and Fair World magazine, says the New Jersey State Police were at Showplace Farms this morning, where they searched the barn of Seldon Ledford, leading trainer at the Meadowlands with 48 wins from 180 starts. A spokesman for the racing commission confirmed the State Police search but had no details on what prompted the search or what might have been found. 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 “THEY’RE KILLING THE GAME” That, according to the Newark Star-Ledger, was the reaction of one Meadowlands’ regular on hearing of the state police raid on the Seldon Ledford barn at Showplace Farms, and the arrest of Seldon’s son Eric, fourth leading driver at the Big M; veterinarian John R. Witmer, who had quantities of Aranesp, the powerful commercial form of EPO; and two Ledford employees, Ryan Dailey and his wife Ardena, who were charged with possession of drugs after a search of their home. Dr. Witmer’s bank accounts and assets, valued at $1 million by the state police, were frozen after his arrest. Seldon Ledford is based in Illinois and was not arrested. He currently is the leading trainer at the Meadowlands with 48 wins and a 27% win rate. His stable earnings averaged $186,556 a year between 1991 and 2003, then shot to over $3 million last year. The fan quoted by the Star-Ledger, Jose DeJesus, has been playing horses for 35 years, and he told the paper’s reporters, “It’s a shame what they are doing. They are killing the game.” Another Meadowlands patron, Jay Garsman, told the paper, “I don’t think this surprises anybody.” Eric Ledford and vet Witmer face up to 18 months in jail if convicted of conspiring to rig races. The Daileys could get up to 10 years if convicted of charges of rigging a publicly exhibited contest. The New Jersey State Police, who broke the case, said they had “dealt a crushing blow to illegal activity in the sport of harness racing,” but Seldon Ledford is not the only trainer who rose from obscurity to quick success and fame. His case, however, is significant. Major Jim Fallon, commanding officer of the New Jersey Special Investigation Section, said, “By taking down one of the top finishers in the sport, Operation Horsepower will create a ripple effect that will be felt throughout the entire horse racing industry.” April 3, 2006 The Showplace raid came after 18 months of investigation, with the full cooperation of the Meadowlands. Vice president Chris McErlean said the track will continue to do as much as is legally within its means to address security and integrity issues, and he hoped horsemen would do the same. PLAINRIDGE SHUTS DOWN Bickering politicians in Massachusetts have succeeded in shutting down the state’s horse racing. A showdown between the House and Senate, which earlier approved racinos, escalated over simulcasting, and the House adjourned without extending the tracks’ simulcasting rights, which expired at midnight Friday. Plainridge, scheduled to open today, could not do so, since without the simulcasting extension the law reverted to 1970s legislation prohibiting racing before 7 p.m. Plainridge has no lights. The House resumed its activities today, discussing health care, and it is not likely to reconsider the simulcasting issue before Wednesday, when it is expected to defeat slots at tracks after the Speaker, Salvatore DiMasi, lashed out at slots at tracks as poor public policy. His outburst was expected to kill the slots issue, and the House and Senate have been bitterly divided over extending simulcasting legislation. DiMasi blamed the Senate for killing simulcasting temporarily, which resulted in Plainridge, Suffolk Downs and Wonderland Greyhound Park closing shop. Plainridge had full fields ready to race today, private parties were booked, and the track expected an opening day crowd of 4,000. Track president Gary Piontkowski called the House’s non-action “a disaster.” POCONO SAVES THE DAY Mohegan Sun at Pocono opened Saturday afternoon, and will continue daytime racing on Tuesdays thru Saturdays, with Sunday afternoon racing until June 11. HARNESS TRACKS OF AMERICA Executive Newsletter A daily fax and e-mail report on racing and gaming developments in North America and beyond Paul J. Estok, Editor Editor Stanley F. Bergstein, GETTYSBURG VOTES FOR SLOTS The Gettysburg, Pennsylvania, borough council voted Monday to support a proposed slot machine casino near the historic Civil War battlefield in exchange for a $1 million per year revenue guarantee. The prospect of a casino near Gettysburg National Military Park has drawn opposition from preservationists as well as many local area residents. As a result of the vote, the council’s president will testify in favor of the proposed casino on Wednesday at a public hearing, That hearing in Gettysburg will be the first of 18 days of testimony that gaming regulators will hold around the state on nearly two dozen casino proposals. Jeff Enrico, attorney for the Gettysburg casino applicant, Crossroads Gaming Resort and Spa, said the money guarantee is predicated on the borough council’s support of its application for a license. The state’s slot machines law set aside four percent of slots revenue for the host municipality and county. April 4, 2006 its head office to a more cost effective location. These efforts to look for and implement changes to the regulation of the industry will continue.” HARNESSING WASHINGTON The Harness Racing Museum and Hall of Fame’s traveling exhibit of Currier and Ives prints illustrating the history of harness racing has hit the nation’s capital. The exhibit of lithographs opened yesterday in the Russell Rotunda of the U.S. Senate Office Building on C Street in Washington, D.C., and will remain there through April 14. The exhibition’s appearance is due to the assistance of Sen. Hillary Clinton of New York, where the museum is located, and Sen. Lincoln Chafee of Rhode Island, a former standardbred caretaker and farrier. The 32 framed original lithographs, representing a selection from the museum’s large collection, illustrate in an artful way harness racing’s important role in American culture and history. The exhibit is open to the general public from 9 a.m. to 4:30 p.m. daily. REDUCED BUDGET IN ONTARIO Ontario Racing Commission Chairwoman Lynda Tanaka announced that the members of the commission have approved a “significantly reduced budget for its next year of operations,” according to a news release from the agency. The cut comes in response to what is termed “the declining circumstances of the industry,” and makes the commission budget for 2006-2007 $9.8 million, a reduction of more than $2 million over the previous year. Much of the revenue reduction the commission has seen comes from the expiration of a regulatory levy that had been paid by racetracks and horsemen based upon purses. “The Commission has positioned itself to withstand the reductions in funding from the industry,” said Tanaka. “While continuing to fulfill its mandate to regulate horse racing and protect the public interest, the Board has made a number of prudent decisions, such as the decision to move SUSPENSIONS IN JERSEY The New Jersey Racing Commission yesterday issued rulings with regard to three of the individuals implicated in the use of illegal performanceenhancing drugs in the state over the weekend. With regard to Seldon Ledford and Ryan Dailey, the commission ruled that “as a result of the investigative action taken by the New Jersey State Police on March 31, trainers Ryan Dailey and Seldon Ledford are declared ineligible to participate in racing, and all horses under their care are ineligible to compete in New Jersey pending a hearing.” In addition, driver Eric Ledford was declared ineligible to participate in racing pending a stewards. DUES SURVEYS A last call for those who haven’t completed your dues surveys -- please do. 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 April 5, 2006 AT LAST: GOOD NEWS IN MD OTHER RACING NEWS TODAY It appears that peace has broken out in Maryland racing, with Cloverleaf SOA and the Maryland Thoroughbred Horsemen’s Association reaching a tentative agreement that “is designed to unite the industry on all main issues for the next decade and beyond.” The agreement came in a joint announcement by Greg White, a member of the Cloverleaf board, and Alan Foreman, counsel for the thoroughbred horsemen. All parties in Maryland racing -- Cloverleaf, the Maryland Standardbred Breeders, the Maryland Horse Breeders, and the Maryland Jockey Club -- were to vote on the proposal today and tomorrow. Foreman said details would not be discussed until after the agreement is approved and ratified, but that both sides have agreed to say it is an agreement in principle. He said a joint announcement might be made at the Maryland Racing Commission meeting Tuesday. It is expected the agreement will address simulcasting rights and future revenue sharing issues and resolve all differences on those issues. Reports indicate the agreement could cover a 15-year period, but its short term consequences could be extremely significant, since a Maryland House bill providing a $15 million purse supplement is pending in the Senate, which winds up its session next Monday night. Foreman said, “The supplement would be a help, a shot in the arm this year, but going forward, this agreement would mean we will all be speaking with one voice. The hope is with this agreement we will end the bickering for a very long time and move forward. But we’re all walking on eggshells right now.” More bad news for Susan Bala, convicted in federal court last July on 12 counts of illegal gambling, money laundering and unlicensed gambling operation. A federal bankruptcy judge in Fargo, ND, ruled that while Bala’s claim was valid for $110,218 in 11 months rent she said was due from a bankruptcy trustee for administrative expenses during her bankruptcy liquidation, it could not be paid until North Dakota’s claim for $6 million in unpaid taxes and a $99 million federal forfeiture judgment was paid. DID YOU MAKE IT OKAY? We hope you made it past 1 a.m. this morning, when at two minutes and three seconds after that hour, the time and date was 01:02:03:04/ 05/06. That will never happen again in your lifetime. Hanover Shoe Farms vice president Russell Williams has been named vice chairman of the American Horse Council board of trustees. Nick Nicholson, president of Keeneland, was elected chairman. Penn National Gaming is proposing its own version of slots for Ohio, which would limit them to the state’s seven tracks only and not include casinos in Cleveland and Cincinnati. Tom Meeker, starting his last year as CEO of Churchill Downs, says Churchill’s headquarters, but not the racetrack, might move out of Louisville, “if these guys (legislators) keep poking us in the eye.” Meeker calls the refusal of the Kentucky legislature to approve slots one of the greatest regrets of his reign at Churchill, and said of the legislators, “They don’t care about anything other than them.” A search for Meeker’s successor will be narrowed to 6 or 8 by mid-May or early June, with six weeks of interviews following. Woodbine in Toronto, meanwhile, announced that its $383,154.90 Pick 7 was won by a ticket purchased at a teletheater in Kentucky. No news at presstime about House debate on slot legislation in Massachusetts. Plainridge remains dark. 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 April 6, 2006 SLOTS DIE IN MASSACHUSETTS LEDFORD HEARING TODAY The slot issue in Massachusetts died yesterday, when the House of Representatives killed it by a 100-55 vote. The measure had passed the Senate last fall 26-9, but strong opposition from House leaders who hammered away at the legislation resulted in an erosion of some 90 votes in the last two weeks. At that time it appeared racinos had a chance, but then House speaker Salvatore DiMasi resorted to what Rep. David Flynn, the primary sponsor of the measure, called “arm-twisting” and that handiwork, plus Gov. Mitt Romney’s promise of a veto, brought down the bill. The House and Senate did agree to extend simulcasting through Dec. 31 -- after the elections -- and HTA member Plainridge Racecourse was scheduled to resume full scale simulcasting as soon as Romney signed the bill, presumably today. Live racing will begin next Monday. The New Jersey Racing Commission hearing on the Seldon Ledford stable matter was scheduled to resume today, after state police detective Brice Cote told the commission that Ryan Dailey, assistant trainer of the Ledford stable in New Jersey, told him that Seldon Ledford had supplied them with illegal medication for his horses. Dailey and his wife, Ardena, have been charged with an alleged conspiracy to fix racing by administering performance-enhancing medications to the Ledford horses. For whatever reason, it does not appear that any effort was made for a coordinated search of the Ledford training headquarters in Illinois at the same time as the New Jersey search at Showplace Farms, or at least no such effort was announced. The Illinois Racing Board now says it will investigate the matter in that state, but they may find the barn door open and the horses gone. Ledford is being defended by attorney Howard Taylor, who also was the defense attorney for Brian Sears in his problems in Pennsylvania last fall. U.S. WOE AN ENGLISH DELIGHT It’s a little disconcerting to have racing matters being debated by a House subcommittee on Crime, Terrorism and Homeland Security, but that’s Washington these days, so grin and bear it. The debate this week saw the Justice Department reiterating its belief that Internet gambling was illegal despite the Interstate Horseracing Act of 1978, and it was reassuring to hear Rep. Bob Goodlatte of Virginia, whose bill would ban Internet gambling, reassert that, “While my legislation prohibits online, interstate gambling, it does not overturn previous acts of Congress that address gambling. This is a strong anti-gambling bill that also protects the rights of states to determine what is -- and is not - prohibited within their borders.” Justice, on the other hand, feels that the federal criminal concerns override states’ rights on this issue. The debate brought joy in London, where gaming stocks soared, PartyGaming up by more than 13%, eyeing the U.S. market. A GREAT BATTLEFIELD AGAIN That was how Lincoln referred to Gettysburg, and another battle is going on there right now. This one, however, is not about the fate of the nation, but about the fate of slots. An outfit called Chance Enterprises wants to build a casino near the gateway to the battlefield, and citizens who treasure the historic nature of their town are up in arms. One told a hearing this week, “My great-grandfather fought here, bled here and died. I fear those memories are going to be buried under basic human greed.” The town council, however, has its sights on dollars, not destiny. The head of Chance Enterprises has guaranteed the town $1 million a year, and the dollar signs are dancing in their eyes. The president of the council said he and his members would be “derelict in their duty” if they overlooked that windfall. 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 April 7, 2006 AFTER THE POLICE, LAWYERS SCOTT WITHDRAWS, FOR NOW After the Seldon Ledford stable at Showplace Farms was raided last week and four people were arrested, a New Jersey State Police colonel, Rick Fuentes, said, “With these arrests, the New Jersey State Police has dealt a crushing blow to illegal activity in the sport of harness racing.” We hope Col. Fuentes is right, but now the lawyers have entered the picture, and their view is less rosy than the colonel’s. Howard Taylor, representing driver Eric Ledford, says, “There is no evidence my client did anything or conspired with anyone to do anything.” Donald Lomurro, the lawyer for veterinarian John R. Witmer, says, “There is no evidence Dr. Witmer did anything to affect a race.” Timothy Donahue, the lawyer for Seldon Ledford, not charged in New Jersey but now “under investigation” in Illinois after the barn door is closed, says no Ledford horses turned up positive at the Meadowlands and no evidence was presented to indicate that Witmer or the Daileys used banned substances at a licensed facility. “There is no evidence that any outcome of any race was affected,” Donahue says. “I could have any of these things in my house and it would not be a violation of the racing regulations even if I was a licensee.” So we now shall see if Col. Fuentes or the lawyers are right. Still not announced is why, after 18 months of investigation, no synchronized simultaneous raid by Illinois State Police on Seldon Ledford’s headquarters in that state was requested by the New Jersey State Police, or if it was why it wasn’t carried out. Shawn Scott’s latest attempt to open a casino in Washington, DC, was blocked this week, when the general counsel of the District of Columbia’s council said the proposal was “not a proper subject for an initiative.” The lawyer, Charlotte BrookinsHudson, said one reason was that the Scott proposal would permit the District to collect only 25% of slots proceeds in taxes, thus unlawfully capping the amount of revenues that could be collected. Ms. Brookins-Hudson said that may not be done by initiative. Thus chastened, the lawyer for the Scott group said they intend to submit a new plan that will satisfy the council requirements. WE KNOW THE WORD FOR THIS Kenneth Blackwell, Ohio’s secretary of state, has been a consistent opponent of slots in that state. Now it turns out that he owns shares in International Game Technology, a leading maker of slot machines. He has listed his holdings, but is not required by law to say how much of the stock he owns. NEW INSURANCE TWIST IN LA Thoroughbred Times reports an interesting insurance development in Louisiana, where a House committee unanimously approved a bill that would protect state racetracks against liability lawsuits arising from on-track accidents. Sponsored by Rep. Ronnie Jones, the measure would amend a state law that provides liability limitations for other equine activities, including horse shows, riding classes and auctions, to include licensed tracks as well. Under the proposed bill, tracks would have legal protection against “inherent risks of equine activities, including certain hazards such as surface and subsurface conditions.” The measure was introduced because of a number of lawsuits filed against Evangeline Downs’ new track in Opelousas, where several breakdowns occurred last year before the track spent $2.7 million for renovation of the surface and another $500,000 for equipment to maintain it. The resurfaced track has drawn glowing reviews from horsemen. The new legislation, if it passes. will not be retroactive and would not affect the lawsuits already filed. The bill, House Bill 56, moves now to the full House for debate. Peninsula Gaming Corp. owns Evangeline Downs. 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 April 10, 2006 HECTOR VAN LENNEP DEAD NJ, IL, STUDIES LEDFORDS Hector Van Lennep, the congenial former general manager of Pompano Park and son of the track’s founder, Frederick L. Van Lennep, died Sunday at the Hospice House in Vero Beach, Florida. Hector ran Pompano from 1972 until 1985, retired briefly, then returned to Florida and started a new career as a realtor. He is survived by his wife, Kathryn; three sons, Frederick, Hector Jr. and Jonathon; two daughters, Katie and Kathryn; five grandchildren; and his brother John and sister, Fredericka Van Lennep Caldwell. HTA extends its sympathy to Hector’s family. While the New York racing board pondered the Vernon mess, New Jersey’s and Illinois’ racing boards are considering what to do about the Seldon Ledford stable, and the hoard of Aranesp found in and around its training quarters at Showplace Farm. New Jersey is expected to make a decision this week. HOW MUCH CAN JEFF TAKE? Having hurdled bankruptcy hearings and the challenge of a $9.5 million lawsuit that was thrown out of court, Jeff Gural now faces another obstacle in his quest of Vernon Downs. The New York Racing and Wagering Board wants disclosure on everyone with a financial interest in the track, which includes Vestin Mortgage, which hold a $26 million mortgage; Shawn Scott, the former majority shareholder; and Raceway Ventures, which briefly held controlling interest until Scott foreclosed on it two years ago. Dan Toomey, a spokesman for the Board, says once the track and simulcast applications are received -- Gural was scheduled to submit them late last week -- it would take the Board “about a month” to review them and place them on the agenda for a Board meeting. The Board also must consider which horsemen’s group will represent Vernon, the old Harness Horse Association of Central New York or the new Vernon Downs Harness Horse Association. Gural already has a contract with the new group, and says that, “If I’m forced (by the Board) to recognize the old horsemen’s group, then I won’t go forward with my plans.” There are limits, it seems, to how much one man can endure. THE EMPIRE WANTS YOU At least it does if you want to invest between $25,000 and $250,000 in its quest for the New York racing franchise now held by the New York Racing Association. Empire in this case means Empire Racing Associates, headed by folks you never heard of who say they figure it will cost between $500 million and a billion dollars -- that’s billion with a capital B -- to successfully bid on and obtain the franchise. They are trying to raise $630,000 now for lobbying. That’s a long way from the Big B, but they have some ambitious guys working with them. AGREEMENT ON UK DEAL Churchill Downs, Magna Entertainment and Racing UK, which represents 31 British racetracks, have crossed the t’s and dotted the i’s on their agreement which will see Churchill and Magna tracks send their simulcast product to the British Isles, where Racing UK will manage the media rights and distribute the signals. The agreement will give British bettors the opportunity to bet on prime American racing, including product from Arlington Park, Churchill Downs, Hollywood Park, Santa Anita and Gulfstream Park, all among Churchill-Magna holdings. DROP A LINE TO DOMINIC HHI president Dominic Frinzi has a week left in his extended hospitalization recovering from hip surgery following a fall. He should be home next week, at 2825 N. Colonial Drive, Milwaukee, Wisconsin 53222. 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 LEDFORD HERD DISPERSES Thirteen horses owned by a variety of top stables and caught in the web of the Ledford stable investigation have been cleared to go to other trainers, subject to affidavits that the transfers were legitimate, with no agreement to return them to Ledford training. The trainers who received the horses represent an interesting mix. They are Chris Ryder, Richard Banca, Steve Elliott, Chris Marino and Virgil Morgan. The owners of the horses are an equally interesting mix, top names including David Scharf, Sampson Street Stables, Peter Pan Stables, Deena Frost, Jerry Silva, TLP Stables, Matthias Menzinger, Leslie Stark and Topcat Racing Stable. Ledford-trained horses also were grounded in Illinois, where an investigation continues. The Newark Star-Ledger, which reported earlier that the trotting colt Malomar Man was found dead in his stall at Ledford’s barn at Showplace Farms, two weeks after being claimed and sent there, now reports that two horses in the Ledford stable in Chicago also were found dead recently. HARRINGTON CRACKS DOWN Harrington Raceway general manager Jim Boese has told delawareonline, the online service of the Wilmington News-Journal, that two of the track’s top trainers will face restrictions when Harrington’s spring meeting begins next Monday. The trainers, Charlie Tribbett and Bobby Glassmeyer, were fined and suspended by the Delaware Harness Racing Commission for high blood gas readings. They will be allowed to race at Harrington, but their horses will have to be in the track’s quarantine barn by 10 a.m. on the morning of each day they are to race. They also will have to pay the costs of security on duty at the barn. Tribbet trains for well known owner and breeder Fred Hertrich, whose J.D.’s Sweetheart, tested high last October at Harrington. Old Melodies, trained by Glassmeyer, had a high test at Dover Downs April 4, 2005. April 11, 2006 When Harrington opens next week, Scott Egger will be in the stand as presiding judge. He formerly served in that capacity at Raceway Park in Ohio and became presiding judge at Dover Downs in February. In another Delaware official’s development, horseman Brian Manges has completed a judges’ training school at the University of Louisville and will serve on special assignment with Delaware’s harness racing director Hugh Gallagher. MILLENIUM UNVEILS PLANS Bill Paulos, a partner in Millenium Gaming, new owner of The Meadows, presided at a public hearing attended by 75 nearby residents of the western Pennsylvania HTA member last night, outlining Millenium plans for the racino it hopes to operate at the track. The residents were curious and questioning, but not hostile. They learned, among other things, that Millenium plans to operate the racino 24 hours a day, 7 days a week, and that Millenium may start construction on a temporary facility this summer, rather than waiting for the Pennsylvania Gaming Control Board to award licenses. Paulos said he hoped for an opening of the temporary facility six months after the start of construction. A larger and permanent racino would be built in the two years following on the site of the Meadows’ current main building, which will be demolished, and Millenium would pay for road widening of local roads and new traffic signals at the I-79 interchange, less than a mile from the track entrance. A “KNIFE FIGHT” IN OHIO That’s how David Zanotti, president of the Ohio Roundtable that opposes slots bitterly, describes divisions among tracks in Ohio seeking slots. “They’re in chaos,” Zanotti said. “They’re as far from unity as a knife fight. They’re stabbing each other in the back over profits on a proposal that doesn’t have great odds of passage in the first place.” 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 April 12, 2006 MARYLAND PEACE RATIFIED PROGRESS IN KENTUCKY, TOO The flames of war may burn brightly elsewhere, but there is peace on earth in Maryland. The 10year battle between thoroughbred and standardbred interests in the state ended officially yesterday before the Maryland Racing Commission, when representatives of the Cloverleaf Standardbred Owners Association, Cloverleaf Enterprises Maryland Standardbred Breeders, Maryland Jockey Club, and the Maryland Thoroughbred Breeders Association told commissioners all parties had ratified an agreement known as the “Cross-Breed Agreement.” That document addresses simulcasting rights, revenue sharing and OTB parlors. Here are highlights: Senator Damon Thayer, a Georgetown Republican, is chairman of the Horse Farming Subcommittee of the Kentucky Senate. He looks out for the welfare of the industry, and yesterday the state budget approved by the Senate included four industry initiatives by Thayer. One of them abolishes the daily track fees of $1,750 a day for harness racing and $3,500 a day for thoroughbred racing for funding the Kentucky Horse Racing Authority. The measure provides instead for that $1.2 million item to be paid from the state’s General Fund. Based on 43 days of harness racing and 2 of quarter horse racing, the savings to HTA member The Red Mile will be $78,750. √ Cloverleaf will pay the Maryland Jockey Club $5.9 million annually for the right to accept betting at HTA member Rosecroft Raceway on all Pimlico and Laurel races and all out-of-state thoroughbred races, based on those used in 2005. Thayer’s other racing measures provide for funding for the University of Louisville’s Equine Program, development of a North American Racing Academy at Kentucky Horse Park, and $13.5 million in bonds for phase 2 construction of a Livestock Disease and Diagnostic Center at the University of Kentucky. Thayer said the latter project was pushed to successful inclusion in the budget through the work of his colleague, Senator Alice Kerr of Lexington. √ ΙΙn the event the state legislature allocates purse subsidies, they will be split 80-20 between thoroughbred and harness racing. √ Net revenue from the Cracked Claw and North East OTBs will be split 80-20, but from the rebuilt OTB at Colonial Beach the split will be 6040. √ Revenues from any new OTBs built outside a 35-mile radius of each track will be kept by the organization building the betting site. √ The parties agree to present legislation to the 2007 General Assembly to eliminate the 6:15 p.m. law that prevents thoroughbred racing in Maryland from conducting evening or night racing. The agreement represents a $2 million a year savings in simulcast costs for harness racing. HOFFMAN REACHES PINNACLE Dean Hoffman, the United States Trotting Association’s author, editor and raconteur, is the winner of the Harness Racing Museum and Hall of Fame’s 2006 Pinnacle Award. The award recognizes exemplary efforts of writers, broadcasters and public relations practitioners in the promotion of harness racing in general and the Harness Racing Museum in particular. Hoffman has authored four harness racing books, on Hanover Shoe Farms, Castleton Farms, Yankeeland Farms and the Hambletonian, and was the 2005 winner of the Stanley F. Bergstein Messenger Award, HTA’s highest honor. 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 April 13, 2006 NOW FOR THE HARD PART BACK TO THE DRAWING BOARD The hammer fell on the Seldon Ledford stable yesterday, with the New Jersey Racing Commission suspending bossman Seldon and his driver son Eric for 10 1/2 years and fining each $12,000. The Showplace Farms supervisors of the Ledford operation, Ryan Dailey and his wife Ardena, were suspended for 8 years and fined $10,000 each; and the Ledford’s veterinarian, Dr. John R. Witmer, was suspended for 7 years and fined $7,500. Eric, one of the Meadowlands’ perennial driving leaders, was suspended by the Commission’s Board of Judges for being “directly involved with the training, management and other business matters relating to the Ledford Stable at Showplace Farms in Englishtown, NJ.” Eric was charged with having knowledge of violations of the rules of the New Jersey Racing Commission and failing to report them to the judges. Those violations included having illegal equipment and medication and “conspiring with other licensees to engage in corrupt and fraudulent practices related to racing.” There are three groups seeking a slots initiative on next November’s ballots in Ohio, and all three were told yesterday by the state’s attorney general to redraft their proposals. AG Jim Petro rejected the proposal of six of the seven tracks in the state, known as Learn and Earn, that calls for slots at the tracks and casinos in Cleveland and Cincinnati; the proposal of the Greater Cleveland Partnership, which wants the same basic objectives but a $30 million licensing fee at each site; and the standalone bid by Penn National Gaming, which wants slots at tracks only. Petro said all three were rejected because they did not tell gamblers in the summaries of the legislation that the slots would be open 24 hours a day. Petro said that omission overrode local authority. There is a mention of 24-hour operation in the fine print of the proposed amendments, and the three groups now are redrafting their proposals to include mention in the summaries as well. So much for the administrative penalties. Still to come are the criminal charges by the New Jersey State Police, who conducted the raid on the Ledford stables. And of course still to come after that are the appeals and requests for stays. Eric Ledford’s lawyer, Howard Taylor, already has filed with the Appellate division, and the others seem certain to follow. Bottom line, this story, and enactment of penalties if they survive the long appellate process, will remain in the news for months to come. We do not always agree with the Ontario Harness Horse Association, but we applaud that organization for moving forward on new approaches for marketing and branding of harness racing. The OHHA’s Standardbred Revenue Allocation Marketing Committee has drawn up requests for proposals for developing a brand for the sport in the province that will highlight its action and thrills and attempt to enlarge the fan base. Seldon Ledford, not charged in New Jersey, is under investigation in Illinois, and the Illinois Racing Board has sidelined him and the horses he trains until that investigation is complete. It also is likely to honor any final adjudication in the New Jersey case. OHHA PURSUES MARKETING HBPA HEAD TAKES TO THE SEAS John Roark, attorney and president of the national thoroughbred HBPA for the last five years, has resigned and is forming a company with two colleagues to seek offshore simulcasting on U.S. races. Roark plans to have offshore bets commingled with U.S. pools. 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 April 14, 2006 CIVIL WAR IN GETTYSBURG VEGAS STEALS AN HTA IDEA Again. But this time without the 51,000 human and 5,000 equine casualties that marked the decisive battle of the Civil War of 1863. This one is pitting not the Union Army against its Confederate counterpart, but neighbor against neighbor and organization against organization in the small Pennsylvania town. Walter Powell, director of planning and historic preservation for Gettysburg, says, “There’s that undercurrent of concern, frustration, anger, bitterness -- all those tied together.” On one side is the Crossroads Gaming Resort and Spa, which hopes to build a hotel complex and casino a mile from the closest part of the Gettysburg National Military Park. Supporters, including the Gettysburg Borough Council, want it to boost employment and revenue. Opponents, including the nonprofit Gettysburg Civil War Preservation Trust, see it as an intrusion on hallowed ground, and one opponent calls the group that hopes to build it “a sleazy enterprise.” Some lawn signs read, “Casino yes, good jobs,” and a nearby billboard reads, “Don’t gamble with our future.” The town, like the nation 150 years ago, is torn apart. Twenty-six years ago, HTA had a study on creative marketing strategy done for the industry by graduate students at Harvard Business School. It is still available in the member area of HTA’s Web site, for those who would like to see what the students of a quarter of a century ago thought about the issue. Much of it is as applicable now as it was then. Now comes MGM Grand Hotel and Casino in Las Vegas, sending its executive vice president and chief financial officer, John Shigley, to Boston to interview Harvard Business students, and others at Boston College and Boston University, in an attempt to lure them to Vegas to work for MGM. It shouldn’t be too hard to do. Eight years ago Harrah’s Entertainment hired an untenured assistant professor in the Harvard Business School to run their huge enterprise. He is still there, now president, chairman and CEO Gary Loveman. You don’t really need a Harvard degree, however, to figure out what Massachusetts legislators still don’t understand. Connecticut received $36.2 million from Mohegan Sun and Foxwoods in March alone, much of it spent there by Massachusetts residents. Impeach those guys in the House, or get your money back! AND A BATTLE IN BUFFALO The president of the Common Council of Buffalo, NY, calls the situation “a pressure cooker.” The county executive says, “We are going to court to fight on behalf of our citizens, our children, our businesses and for the rule of law. The mayor of Buffalo, who wants a downtown Indian casino, is alarmed because the Seneca Indian Nation now says it will cater to Buffalonians and not reach out for tourists, a policy the mayor is afraid will have negative impact on the local economy. He calls that possibility “a very troubling development.” A Seneca spokesman said a downtown casino would be “part of the puzzle” for Buffalo, but not an end-all or panacea. TWO DANDY MEDIA GUIDES HTA received two exceptional media guides in recent days, one from Hoosier Park and the other from Northfield Park. Both are big, spiral bound, and comprehensive. The Hoosier guide includes a color-coded layout of the track and both harness and thoroughbred facts, figures and high impact full color pictures throughout, fitting for a Churchill Downs production. Northfield’s has handsome full color covers and very solid content. Our congratulations to all who shared in producing these classy guides. They are extremely impressive and convey the image of class. 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 THE LEDFORD FILES To clear the record on what Illinois actually has done to Seldon Ledford, the patriarch of the New Jersey mess, here is the official statement from Illinois Racing Board chairwoman Lorna Propes: “In response to the New Jersey Racing Commission rulings, issued on April 12 for Seldon Ledford, Eric Ledford, and Ryan and Ardena Dailey, the Illinois Racing Board will extend the suspensions to Illinois, pursuant to the reciprocity rules. All racehorses in the Seldon Ledford stable are placed on the stewards list and all transfers to a new trainer must first be approved by the state stewards. In addition, the horses will be required to stable ontrack for an indefinite period of time and must compete in two qualifying races before entering in a pari-mutuel race.” Not as tough as it could be, but a good start. FOR INFORMATION, DIAL 411 Someone somewhere thought they already had information on a pacer named Four One One that raced at the Meadowlands last Thursday night, but it appears they got the wrong number. Two minutes before post time for the second race, a series of win bets totaling $50,000 came in on the pacer, dropping his odds from 8-5 to 1-9. He finished sixth, with the winner, G-String Jenna, going from 7-1 to 19-1 and paying $40. Chris McErlean, the Meadowlands vice president of racing, was on top of the bet in minutes. At first he thought it might have been a teller error, but the Portland, Oregon, hub that transmitted the bets verified them and said they were made through Youbet.com’s International Racing Group. McErlean watches betting patterns and follows up on wagers that seem to be an anomaly, and he said this about the 411 events: April 17, 2006 “The exacta payout ($81) was perceived to be low based on the traditional formula of win price times place price, so we reviewed all the winning exacta combinations. We found nothing out of line nor were there any wagering outlets with an inordinate amount of winning tickets. The cause of the lower exacta price was, in part, due to the artificial win odds created by the heavy wagering on Four One One. We will continue to monitor the outlet, but in this case, we could not find anything out of the ordinary other than the size of the wager.” Meadowlands has asked Standardbred Investigative Services and TRBP to look into the matter. KY SAYS NO TO COMP ISSUE The Kentucky General Assembly adjourned for the year last week, and its Senate did so without even considering the issue of workers’ compensation for jockeys. The representative who guided the measure through the House, Carolyn Belcher, was miffed that the Senate did not take up or consider the legislation. The House had passed the measure 83-12 less than a month ago and sent it to the Senate, where it was first attached and then stripped from a workers’ comp bill for miners. The Senate took into account that jocks are independent contractors, not workers, and decided the jocks could not have it both ways. THIS PROBLEM IS NOT GURAL’S Another problem at Vernon Downs, but this one does not affect Jeff Gural’s pursuit of the track. In 2003 a former town code enforcement officer, who reported that Vernon had corrected all of its code deficiencies, turned out to be on the payroll of the then operators of the track, at $1,000 a week. A state investigator found 78 code violations, including locked circuit breakers and covered sprinklers, both obvious fire hazards. The former inspector, Larry Sarandrea, was found “clearly in conflict” byAGEliot Spitzer’s office, and has agreed to reimburse the town of Vernon $9,000. 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 April 18, 2006 WHOA! HOLD THE CELEBRATION WHOA ON THE RIVERFRONT The table was all set and the celebration about to begin over the legislature of Kentucky transferring the funding of the Kentucky Horse Racing Authority from tracks to the state. It means that the $1.2 million in KHRA assessments to the tracks will end July 1. In the case of HTA member Red Mile alone, it represented a $78,000 saving. Nothing has changed about that legislation, but what the legislature giveth the legislature taketh away, and the General Assembly, before heading home to rest after its arduous work, cut the KHRA budget by 40%. The KHRA has been funded by the $1.2 million paid by tracks, now prohibited by law; $500,000 from the general fund; and $1.3 million from licensing and other fees. Unless the KHRA is to be crippled in administering racing in Kentucky by the budget cut, the state will have to dip further into the general fund to fund it. State senator Damon Thayer, who was instrumental in getting the assessment removed from tracks, met with the KHRA this week and assured it that full funding would be found. The General Assembly in Kentucky does not reconvene until January, when it will hold a 30-day session. Thayer hopes to have the state take up the shortfall. Does anyone in the house think restoration of the track’s assessments will not be considered, even though a lady with the wonderful name of Crit Luallen, who is state auditor, says it is questionable if the KHRA has statutory authority to assess funding fees against the tracks. The governor of Pennsylvania, Ed Rendell, has issued a temporary moratorium on developing state-owned property along the Delaware River in Philadelphia. The governor said it is time for Pennsylvania to step back and decide whether building casinos or condominiums or other developments were in the best interest of the city and state. “With the advent of gaming,” the governor said, “these riverfront properties have a tremendous value. We are just trying to get taxpayers their money’s worth.” A spokesman said the intent of the governor’s decision was not to stop development, but ensure that it is planned well and makes sense. A spokesman for the mayor of Philadelphia, however, looked at the order warily, implying it might raise questions of whether the state is usurping powers that ultimately reside with the city. Joe Grace, a spokesman for Mayor Street, said, “We’re going to take a careful look so we can understand exactly what’s being proposed. We don’t want to see anything happen that would slow the progress that we see happening all along the waterfront.” The KHRA, in an unrelated move, unanimously approved an advisory to horsemen telling them that the painkiller Naproxen, a non-steroidal anti-inflammatory agent better known to humans as Aleve, could accumulate in tissue and lead to positive tests outside of the current 48hour cutoff. The KHRA told horsemen it should not be administered within 120 hours of a race. HTA CHAMPS BATTLING AGAIN Three former HTA Drivers of the Year are battling again for national honors. Tony Morgan, HTA’s champ in 1997 and 2002, is leading the country in both wins and money, with 322 winning drives and $2.8 million in money won by his mounts. Cat Manzi, last year’s HTA winner, is second in wins with 247 and third in money earnings with $2.2 million.. Dave Palone, the HTA Driver of the Year in 1999, 2000, 2003 and 2004, is fourth in races won with 203. The HTA formula, which makes the title one of the most difficult to win in harness racing, also takes Universal Driver Rating Percentages into account, and to win a driver must finish in the top 25 in all three categories. Only 3 drivers in North America -- Manzi, Palone and Morgan -- were able to do that last year. 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 April 19, 2006 WHAT’S WRONG WITH RACING CORZINE SIGNS THE COMPACT Number 12,714: Jeff Gural is about to open his little venture at Tioga Downs, which Jeff says “will be the nicest small track in the country.” As he awaits approval of a temporary racing and simulcast application, filed three weeks ago, from the New York State Racing and Wagering Board, (which says it could be another month before it acts on the application, not giving Gural much time to make his hoped-for Memorial Day opening goal) who shows up but Donald Groth, president and CEO of Catskill OTB. You remember Catskill OTB. That was where -- of all tracks and simulcast locations in the country --- the Pick Six Fix boys chose to start their crooked venture, but it was not the place that uncovered the scam. In any event, Groth now is urging the racing board not to grant Gural the license, saying it would take business away from Catskill OTB’s branch betting centers and hurt Monticello Raceway and Finger Lakes. Groth thinks, “No businessman should be going into the harness racing business just as an admission ticket to get into the VLT business.” Last time we looked, Jeff Gural was an owner and breeder of harness horses, and had announced some very innovative ideas for Tioga Downs even before a harness race has been conducted there. We’re not sure that Don Groth has been any closer to a harness horse than his TV monitors, so talking about motivation for getting into racing is a little strange for a guy who has no connection with it except his betting operation. Gural, a businessman and entrepreneur in one of the toughest markets in the world, has a good old American idea: “Let Catskill OTB compete for the betting public’s dollar,” he says. “This is a free country...people have a choice.” We hope the New York racing board gives Don Groth’s objection all the consideration it deserves: none at all. Now on to reason 12,715 as to what’s wrong with racing. Harness horsemen racing at the Meadowlands and Freehold Raceway now can obtain National Racing Compact licenses good for New Jersey and 10 other racing states, including New York, Florida, Kentucky and California. Governor Jon Corzine has signed enabling legislation, which means owners, trainers and drivers can obtain one multi-jurisdictional license covering all of those states through the National Racing Compact. There are a number of ways to do that. Your local racing commission office, if your state is a member, should have NRC packets with applications. You can download the application from www.racinglicense.com. You can e-mail the Compact [email protected]. at You can contact the National Racing Compact at 2343 Alexandria Drive, Suite 200, Lexington, KY, 40504, telephone 859-224-0584. Ask for Sandy, and tell her HTA sent you. ORC ACTS ON MEDICATION The Ontario Racing Commission, in a white paper titled “Medication Control: Good for the horse, Vital to the Industry,” has informed licensees that medical control means “only using medications or products that have a therapeutic value to the horse. When used prior to a race, they should not mask an underlying health problem, cause a positive test, or undermine the testing process. Indeed, the ORC believes it is unethical to give non-therapeutic drugs to a horse at any time.” The commission also advised all licensees that severe penalties will be imposed on anyone found to have acquired or administered Aranesp, or possessing it. 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 April 20, 2006 LIKE RACING? BE PATIENT NEW BETS INTRODUCED There are no such things as quick decisions in racing today. Racing boards mull and stew over approving licenses; OTB operators like Don Groth try to stop new tracks from opening; politicians battle among themselves, creating delays that cost their states millions of dollars. Three cases in point are Vernon Downs and Tioga Park in New York and The Meadows in Pennsylvania. The Meadowlands introduces its Choose Six bet tomorrow night, replacing the Pick Six on the wagering menu. The Choose Six allows the bettor to select the six races that he or she will bet, rather than a preset imposed schedule. The bet will carry a guaranteed $25,000 minimum pool on Friday and Saturday, and will be available initially only at the Meadowlands and to simulcast players at Monmouth Park and Freehold Raceway, New Jersey’s other two tracks. It will be offered at Monmouth when the Meadowlands’ sister track begins thoroughbred operation May 13. Concerning Vernon, Jeff Gural has had to move his hoped-for Fourth of July opening back. Back how far? At least six weeks from the time the New York Racing and Wagering Board finishes worrying about Shawn Scott, Vestin Mortgage and Raceway Ventures getting paid monies owed them, and six weeks from when the Board decides which horsemen’s group, between the two battling for recognition, will be accredited. That item requires a vote, which doesn’t take longer than a day, but then votes have to be counted, and who knows how many racing board employees are needed to screw in that light bulb, and how long they will ponder the issue before and after counting. At Tioga Park, where Gural still hopes for a Memorial Day opening, the racing board will have to study the protest of Don Groth, the complaining head of Catskill OTB, who opposes licensing Tioga. That deserves a minute’s consideration. In Pennsylvania, KDKA in Pittsburgh reports it is now 10 years since the idea of slots at tracks began being kicked around. They are still being kicked around, only in a different context. The pols in Pennsylvania have made a playground of the issue. Mike Jeannot of The Meadows says of the 10-year battle, “Business has declined every year since then. We’ve lost jobs every year since then. We got this bill passed two years ago, and we’re very anxious to have it implemented.” Be patient, Mike, and stay healthy. These things take time. The New York Racing Association, meanwhile, will introduce its new $1 minimum Grand Slam on May 3. In that pool, bettors’ choices can finish first, second or third in each of the first three races offered, but then must be combined with the winner of the fourth and final leg. WE’RE BUILDING, KEMOSABE The Indians of Arizona are sending that message loud and clear, with three tribes planning hotel resort facilities. Here in HTA’s home base in Tucson, the Tohono O’odham Nation will break ground next Monday on the city’s first casino hotel at their Desert Diamond, on the road to Nogales and Mexico, 60 miles away. Taking a cue from the Phoenix Greyhound track, which was built while an older structure remained operating and then was destroyed when the new track opened, the Tucson-based tribe will build an entire new casino next to its current operating one, adding a hotel and conference center, and then will demolish the older casino, which was built 13 years ago and is not aging gracefully. The Salt River Indian Community is building a 16-story hotel, and the Fort McDowell Yavapais opened a Radisson hotel on their casino site in November. 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 MAJOR DRUG BUST IN CANADA In a coordinated action by five enforcement agencies, a major distributor of erythropoetin and other prohibited substances has been apprehended in Ontario. A sophisticated laboratory was shut down, large quantities of controlled and adulterated drugs were seized, and extensive computer files were discovered. The bust was conducted by combined forces of the Ontario Provincial Police Illegal Gambling Unit, the United States Food and Drug Administration, the Ontario Racing Commission Investigative Unit, HTA’s and USTA’s Standardbred Investigative Services, and the Toronto Police. One man was charged, but considerably more will be heard about this case and its far-reaching ramifications. As in the Ledford case in New Jersey, Aranesp, the potent form of EPO that was blatantly being advertised on the Web site involved, along with strong analgesics, bronchial dilators and other performance enhancers, were found in the raid. HARRAH’S STEPS UP, BIGTIME At the recent Racing Congress in Las Vegas, Harrah’s COO, Tim Wilmott, said he felt racing “needed to pick up the pace a bit...shorten the experience, create a higher level of energy, and a higher level of excitement in the experience than what you traditionally have offered.” Wilmott said in Vegas that Harrah’s was investing some $400 million into its new Chester Casino and Racetrack just south of Philadelphia, and that he was “anxious to get started.” As a sign of that enthusiasm, Harrah’s joined HTA shortly after it broke ground at Chester, and yesterday it demonstrated that it will be a valuable addition to the sport. Harrah’s director of racing operations at Chester, Mike Tanner, revealed that the company was contributing $500,000 to sustain the level of Sire Stakes purses in Pennsylvania. Without the gift, the monies available would have been split four ways April 21, 2006 rather than three, diminishing each purse, since Chester will host a Sire Stake after it opens next fall but could produce no tax revenue to support it since it did not race in 2005. Funding of Pennsylvania Sire Stakes is based on previous year’s handle, and there was none at Chester. Tanner said, “Harrah’s is committed to doing everything we do first class, whether in the casino end or the racing end, and we are glad to help sponsor the Sire Stakes this year and look forward to hosting the events in 2007.”Welcome, good neighbor BANGOR SLOTS BANG LOUDLY Slots at Bangor Raceway date only from November, but already have added $367,744 to purses for Maine harness racing. Slot play at Penn National’s Hollywood Slots has increased each month since the November opening, with March play of almost $46 million up some $7 million from February, and $17.2 million higher than November. Total revenue for five months is more than $12 million. KY MILKSHAKE TESTS RETURN Milkshake testing has resumed in Kentucky, after a cessation because of limited veterinary personnel. The Kentucky Horse Racing Authority has hired Dr. Deidre Huff, a former Kentuckian working most recently in Louisiana, but is not at the moment replacing its chief vet, Dr. Gary Wilson, who was fired after complaining publicly that the welfare of horses in Kentucky was at risk because of veterinary funding limitations. DOUG BROWN BACK HOME Doug Brown, eight-time winner of the O’Brien award as top driver in Canada, has returned home from five days of hospitalization after shattering a heel in a driving accident at Kawartha Downs April 11. Doug’s wife Nancy says doctors say Doug could be out of action for as long as a year. Send cards to 2 Maryleah Ct., Bowmanville, ON L1C 4H4, Canada. 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 THE SUN SHINES IN FLORIDA Reversing its field, the state of Florida has decided to listen to its citizens, and has issued 116 pages of revised rules that may enable Broward county’s four pari-mutuel operations -- including HTA member Pompano Park -- to begin racino operations late this summer. Under the revised rules, which are subject to a final hearing by the parimutuel division of the Florida Department of Business and Professional Regulation, Pompano and its pari-mutuel neighbors would be able to offer slots, poker, and give free meals or t-shirts or whatever the tracks choose to give customers. This represents a 180-degree turn from the rules as originally proposed. Comps are still limited, but only slightly, with the main caveats barring free alcohol and the tracks required to keep records of the value of free gifts and not use them to reduce revenues and evade taxes by doing so. Pompano Park general manager Dick Feinberg said that was fine with him, that all he wants is to be able to compete on equal terms with Florida’s Indian casinos. “Anything that puts us to a level playing field is welcome,” Feinberg said. The hearing on the rule is scheduled for Tallahassee May 23. Objectors would have 10 days to file challenges, which would have to go before a judge within 30 days after that. If no protests are filed, the rules would become official. The state then has 90 days to grant or deny an application. In another Pompano development, the track presented the Bruce and Wally show on Saturday night, an unscheduled special event. Bruce Ranger and Wally Hennessey, the track’s two leading drivers, won 11 of the 15 races offered on the big Saturday card. Ranger won six and Hennessey five, with respectable payoffs as the crowd tried to handicap the two dominant stars. Only one winner was odds-on, with other Ranger-Hennessey win prices ranging from $4 to $9.40. April 24, 2006 Almost forgot. There was additional excitement Friday night, when the track was evacuated briefly at 6:45 because of a roof fire on the third floor over the poker room. Fire rescue units arrived immediately and handled the emergency, patrons were back in the building in less than an hour, the first race went off at 7:40 p.m., only 15 minutes late, and there was a full house in the poker room. PENN NATIONAL GETS OHIO OK The attorney general of Ohio has approved the petition language submitted by Penn National Gaming and its Toledo Raceway Park, seeking a constitutional question for Ohio voters in November. Called Education YES!, the proposal calls for 5,000 slot machines at the state’s racetracks, earmarking proceeds for college scholarships, economic development, and a gambling addiction treatment program. Approval from the AG now permits Penn National to print and circulate petitions in Ohio, with 322,899 valid signatures needed to put the question on the ballot next fall. Two other proposals, one submitted by the other six racetracks in Ohio along with two Ohio real estate developers, and another by a Cleveland business development group, were rejected, as was the original Penn National application, but those groups have not submitted their revised applications to the AG as yet. The track proposal, also tied to education and called “Learn and Earn,” would allow tracks to have slots and also provide for casinos in Cleveland and Cincinnati. The rejections of the three original applications were because they did not inform voters that the slots would operate 24 hours a day. PUBLICISTS: GET THOSE PIX IN HTA needs current color photos of track execs, including publicists, and pix of your tracks, for some important upcoming projects. We thank you in advance. 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 April 25, 2006 SIGNS OF COMPROMISE IN OHIO NJ DENIES ALL EPO STAYS The backers of three different plans for slots in Ohio seem to be drawing together, hoping for a unified approach that voters might support next November. The Learn and Earn group, which includes Northfield Park and HTA president Brock Milstein, filed a revised version of its proposal yesterday to satisfy requirements of the state attorney general, but the revision went beyond the first proposal. That one had proposed slots for eight Ohio tracks and downtown casinos in Cleveland and Cincinnati. The revision calls for slots at seven tracks, including HTA member Lebanon Raceway and the thoroughbred operation at River Downs. In what appears to be a conciliatory move to appease Penn National Gaming, the second petition filed under the banner of the Learn and Earn group removed a casino in Cincinnati from its proposal. Penn National, which owns Toledo’s Raceway Park and the Argosy casino in Lawrenceburg, strongly opposed the idea of a competing operation in downtown Cincinnati. Learn and Earn also now proposes a one-time $60 million license fee, with slots at seven tracks and two locations in downtown Cleveland, each with 3,500 slots. The third proposal, sponsored by a business consortium called Greater Cleveland Partnership, has been asking for $30 million license fees. Although unity would seem to be a highly desirable goal toward voter approval, a spokesman for Penn National says talk of agreement on the terms and conditions is “very premature. Saying that to do otherwise would be “inimical to the integrity of the sport, New Jersey Racing Commission executive director Frank Zanzuccki has denied all stays for the Ledford Five, the father-son team of Seldon and Eric Ledford, their New Jersey stable training team of husband and wife Ryan and Ardena Dailey, and veterinarian John R. Witmer. Under the denial all five now will have to appeal to a court, and all are barred from the Meadowlands, Freehold Raceway and other track or training centers under the commission’s jurisdiction in New Jersey. The Ledford violations and a drug bust in Ontario that turned up quantities of Aranesp and other prohibited race horse performance enhancers and shut down that operation, are encouraging signs of increased vigilance, but very likely only the tip of the iceberg. Judging from horsemen’s mail and calls, EPO is reaching crisis proportions, and HTA plans to offer a plan for curbing the epidemic. In another Buckeye development, the Ohio State Racing Commission will begin milkshake testing on thoroughbreds next week for high levels of total carbon dioxide. Ohio has tested trotters and pacers at its tracks for the last five years. The maximum 37 millimole per liter of blood harness rule now will apply to runners as well. SOLVALLA GETS A NEW BOSS Margareta Wallenius Kleberg, a longtime major breeder in Sweden and a prominent figure in American harness racing as well, has taken over as Chairwoman of the Board at Solvalla Racetrack in Sweden, home of the famed international trotting classic the Elitlopp. Mrs. Kleberg’s father Olaf Wallenius, was president of Swedish trotting there in the late 1960s and early 1970s. Both father and daughter have run the giant worldwide auto shipping line that Mrs. Kleberg still operates. In the new order at Solvalla, CEO Robert Karlsson is resigning, despite management pleas to stay on, saying he is unhappy with his inability to halt sliding on-track attendance. Mrs. Kleberg is an honorary trustee of the U.S. Harness Racing Museum and Hall of Fame and a consistent and valued patron of the annual HTA art auction. 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 April 26, 2006 LEDFORD FIGHTS RECIPROCITY THIS ONE IS INTERESTING Seldon Ledford, suspended for 10 years in New Jersey for rule violations there, now is challenging the Illinois Racing Board’s honoring reciprocity in that state. A hearing is scheduled for today, but a decision may not be forthcoming until the board’s next meeting May 9. According to harnessracing.com, Ledford’s challenge is based on the contention that he has not been given full due process in New Jersey, where quantities of Aranesp and other performance enhancers were found at his stable. Ledford can request a temporary restraining order on Illinois licensing until the May 9 board meeting. The Boston Globe reported today that “Two of the biggest names in the casino business -Foxwoods and MGM Grand -- joined forces to develop gambling ventures around the globe and market a $700 million hotel-casino complex under construction in Connecticut.” We were a bit intrigued because the Associated Press announced the development a bit differently. Its lead read, “MGM Mirage Inc. has agreed to license its name to the Mashantucket Pequot Tribal Nation for a planned $700 million hotel and casino expansion at the Foxwoods Resort Casino.” The discrepancy also caught the eye of Richard Blumenthal, the ever-crusading attorney general of Connecticut, who fired off a quick letter to George Henningsen, chairman of the Foxwoods Tribal Gaming Commission. Mr. Blumenthal was not pleased, telling Mr. Henningsen that “Gaming on the Tribe’s Connecticut reservation is governed by the Mashantucket Pequot/State of Connecticut Gaming Procedures, the federal Indian Gaming Regulatory Act (IGRA) and Regulations of the National Indian Gaming Commission (NIGC). These legal authorities allow and require state oversight of any proposal for the expansion of gaming on the reservation to determine if any planned gaming activity comports with the requirements of law.” Mr. Blumenthal informed Henningsen that “at no time prior to its public announcement” had the tribe informed the Attorney General, the State’s chief legal officer, of its plans.” Blumenthal said, “The nature of the proposed joint venture is unclear from the Tribe’s recent public announcement,” which was precisely our reaction in reading the ambiguous release. Blumenthal told Henningsen that he wanted copies of any agreements between the Tribe and MGM regarding their plans for expansion, and the nature and extent of the Tribe’s relationship with MGM Mirage. CALGARY GETS COUNCIL OK The giant $80 million entertainment complex planned for a location near the Calgary airport, which will include a racetrack that will supplant Stampede Park and offer both harness and thoroughbred racing, has received unanimous approval from the rural Municipal District of Rocky View, where the track will be located. The dual breed track has a 10-year license to guarantee its financial backing, and now can move ahead with plans. The Calgary Sun reports racing is expected to get underway in two years, and the slot-fueled complex, when completed, is scheduled to include hotels, retail outlets, a vet clinic and a satellite college. NEW CEO AT MOHEGAN GAMING William Velardo, CEO of the Mohegan Tribal Gaming Authority, has resigned after 11 years with Mohegan to return to a new job in his native Las Vegas. The new CEO of the Authority, which includes HTA member Mohegan Sun at Pocono Downs, is Mitchell Grossinger Etess, who currently is president and CEOof Mohegan Sun, will take over as CEO of the Tribal Gaming Authority on May 4. 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 April 27, 2006 GOOD NEWS IN ILLINOIS TIOGA GETS ITS LICENSE The harness racing community in Illinois was heartened yesterday when the Illinois House, by a vote of 70-32, passed HB 1918, the Molinaro bill, that had failed twice previously in that chamber earlier this year. The bill could provide horseracing in the state with a $30-$35 million annual windfall, since it echos Indiana legislation that provides racing with revenues from riverboats. In Indiana the money is raised from a tax on admissions; in Illinois as proposed it would give racing 3% of adjusted gross revenues of four riverboats in the Chicago area, while excluding five downstate, a provision that made it more palatable to downstate legislators. The House sent the measure to the Senate, where it could be considered as early as next Tuesday, May 2. If the Senate approves, the measure is almost assured of becoming law, as it has the support of Gov. Rod Blagojevich and heavy-hitting Democrats from the Chicago area. Illinois racing, currently 13th nationally in purses paid, could rise to the top two or three in the U.S. if the measure passes. One Republican legislator from downstate, Rep. Bill Black, raised objections yesterday to the change of sentiment in the House by telling fellow members, “You want to change your vote because you’ve suddenly grown fond of horses, that’s fine. But I don’t think that’s why some of you changed your vote. I like horses, but I don’t like what I smell here.” That drew a quick and angry response from Rep. Molinaro, who fired back, “I’ve never questioned anybody’s motives in this chamber in my life, and I’m not going to let somebody question my motives.” Steve Brown, a spokesman for Illinois House Speaker Michael Madigan, gave short shrift to Black’s comment, saying, “Black’s just becoming kind of a pathetic blowhard.” Black or Brown, Illinois horsemen are being urged to contact their senators immediately and push hard for passage of the bill. The New York State Racing and Wagering Board yesterday issued a temporary, conditional license to Tioga Downs, and gave Jeff Gural and his Nevada Gold colleagues the green light to move forward toward opening the new track and its racino near Binghamton. Technically, the license was awarded to Nevada Gold, which must meet Board standards on tote systems, compliance with plans, show no change in management or beneficial interest, and meet security and bond requirements. The Board also approved new bets and wagering opportunities for bettors, including the Grand Slam for harness tracks only. Showing major understanding of racing’s problems, Board chairwoman Cheryl Buley said, “New bet types may help racetracks compete in an increasingly challenging gaming market. Ultimately it will be the decision of the tracks whether or not to offer these wagers depending on market variables and fan interest.” In the Grand Slam, Buley likened the bet to its baseball connotation, hitting a home run with the bases loaded. A bettor can load the bases by selecting horses that finish first, second or third in three Grand Slam races, and then homer by selecting the winner of the fourth leg of this bet, developed by NYRA. If a selected horse is scratched, the race favorite will be substituted. The Board also approved a proposition bet in which a bettor can wager that one horse, out of two or three designated in a race, will finish ahead of the other two, regardless of where the three finish in race order. Also approved were parlay wagers, linking two or more individual bets, and changes in handling of payouts, including choice of refund or win payoff in cases of interference. New York’s new rules, which will go into effect May 17, can be seen in their entirety on the Racing and Wagering Board’s Web site, www.racing.state.ny.us. 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 April 27, 2006 GOOD NEWS IN ILLINOIS TIOGA GETS ITS LICENSE The harness racing community in Illinois was heartened yesterday when the Illinois House, by a vote of 70-32, passed HB 1918, the Molinaro bill, that had failed twice previously in that chamber earlier this year. The bill could provide horseracing in the state with a $30-$35 million annual windfall, since it echos Indiana legislation that provides racing with revenues from riverboats. In Indiana the money is raised from a tax on admissions; in Illinois as proposed it would give racing 3% of adjusted gross revenues of four riverboats in the Chicago area, while excluding five downstate, a provision that made it more palatable to downstate legislators. The House sent the measure to the Senate, where it could be considered as early as next Tuesday, May 2. If the Senate approves, the measure is almost assured of becoming law, as it has the support of Gov. Rod Blagojevich and heavy-hitting Democrats from the Chicago area. Illinois racing, currently 13th nationally in purses paid, could rise to the top two or three in the U.S. if the measure passes. One Republican legislator from downstate, Rep. Bill Black, raised objections yesterday to the change of sentiment in the House by telling fellow members, “You want to change your vote because you’ve suddenly grown fond of horses, that’s fine. But I don’t think that’s why some of you changed your vote. I like horses, but I don’t like what I smell here.” That drew a quick and angry response from Rep. Molinaro, who fired back, “I’ve never questioned anybody’s motives in this chamber in my life, and I’m not going to let somebody question my motives.” Steve Brown, a spokesman for Illinois House Speaker Michael Madigan, gave short shrift to Black’s comment, saying, “Black’s just becoming kind of a pathetic blowhard.” Black or Brown, Illinois horsemen are being urged to contact their senators immediately and push hard for passage of the bill. The New York State Racing and Wagering Board yesterday issued a temporary, conditional license to Tioga Downs, and gave Jeff Gural and his Nevada Gold colleagues the green light to move forward toward opening the new track and its racino near Binghamton. Technically, the license was awarded to Nevada Gold, which must meet Board standards on tote systems, compliance with plans, show no change in management or beneficial interest, and meet security and bond requirements. The Board also approved new bets and wagering opportunities for bettors, including the Grand Slam for harness tracks only. Showing major understanding of racing’s problems, Board chairwoman Cheryl Buley said, “New bet types may help racetracks compete in an increasingly challenging gaming market. Ultimately it will be the decision of the tracks whether or not to offer these wagers depending on market variables and fan interest.” In the Grand Slam, Buley likened the bet to its baseball connotation, hitting a home run with the bases loaded. A bettor can load the bases by selecting horses that finish first, second or third in three Grand Slam races, and then homer by selecting the winner of the fourth leg of this bet, developed by NYRA. If a selected horse is scratched, the race favorite will be substituted. The Board also approved a proposition bet in which a bettor can wager that one horse, out of two or three designated in a race, will finish ahead of the other two, regardless of where the three finish in race order. Also approved were parlay wagers, linking two or more individual bets, and changes in handling of payouts, including choice of refund or win payoff in cases of interference. New York’s new rules, which will go into effect May 17, can be seen in their entirety on the Racing and Wagering Board’s Web site, www.racing.state.ny.us. 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 CENTER STAGE FOR HOOSIER HTA member Hoosier Park takes the national spotlight tomorrow night, when a field of 10 top older pacers goes postward in the $200,000 Dan Patch at the Anderson, Indiana, track. A twist on this year’s race, and a commentary on the impact of Hoosier Park and Indiana Downs on racing and breeding in Indiana, is the appearance of two Indiana-sired horses in the rich event. Foxy Maneuver, a winner of 41 career victories and $736,000, is a son of the Indiana-based stallion Armbro Maneuver, and Rebelman, an Electric Yankee 5-yearold, won recently in 1:50.3. Hop Sing, the fastest and richest pacer of 2006 to date with a mile mark of 1:48.3 and $253,400 in earnings, is the 5-2 favorite in the race with redhot three-time HTA Driver of the Year Tony Morgan in the bike. Here is the field: 1. Foxy Maneuver Don Eash 5-1 2. Casimir Camotion George Brennan 2-1 3. Rebelman Joe Essig Jr. 12-1 4. Hop Sing Tony Morgan 5-2 5. Tigerama Robert Shepherd 8-1 6. Mypanmar Ricky Macomber Jr.15-1 7. Escape the Wind Roger Mayotte 4-1 8. Primetime Bobcat Jody Jamieson 9-2 9. Spirit of a Shark Walter Haynes Jr6-1 10.Maltese Artist Mike Wilder 10-1 $100,000 BONUS ON COAST In another indication of the rebound of harness racing on the west coast, a $100,000 bonus program has been announced jointly by the California Harness Horsemen’s Association, the California Sires Stakes Committee, and HTA member Sacramento Harness Association. Beginning with this year’s juvenile crop of trotters and pacers, horses that sweep the 2-year-old, championship and the 3-year-old spring and fall championships will share the $100,000 bonus. Details at www.chhaonline.com. April 28, 2006 WILL REAL PAYPAL STAND UP? The Roman god Janus looked both directions at once. He could be the patron saint of PayPal, the online payment service. PayPal, along with eBay, has commended Rep. Bob Goodlatte, the Virginia Republican, and his staff for introducing “commonsense legislation” to combat online gambling. PayPal also told Goodlatte it thinks the government should prosecute citizens who participate in illegal gambling. Shortly before this letter went to Goodlatte’s office, PayPal’s European division began allowing customers of the betting exchange Betfair to deposit and withdraw funds via its service, and last month it announced the same services for Ladbrokes’ customers. Interactive Gaming News, attempting to explain this dichotomy, said a source thought PayPal’s volatile past with New York attorney general Eliot Spitzer may have played a role. “When eBay and PayPal merged,” the source told IGN, “Eliot Spitzer really roughed them up for PayPal’s having processed payments for the Internet gambling industry. They are being contrite.” Or plain hypocritical. HOW TO STOP A MOVING TRAIN Easy. Get a federal commission appointed to study it. That’s the solution the American Gaming Association is taking to stop Congress from banning Internet gambling. The AGA’s board of directors agreed unanimously this week to ask Congress for a one-year study of gambling on the Internet. There was a time, not too long ago, when the Las Vegas casinos were giving AGA president Frank Fahrenkopf a hard time. Terry Lanni was almost a lone voice telling other casino operators that the Internet was the future, and they had better embrace it. The message apparently finally has gotten through. Fahrenkopf says between $12 billion and $15 billion will be bet on the Internet this year, 60% of it from American bettors. 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 May 1, 2006 GREAT WINNER IS SORE LOSER STEPHANIE GETS HER JACKET But not in the usual sense of sore loser. Bruce Ranger, the all-time leading driver at HTA member Pompano Park and 10th leading driver in North America this year in winning drives and second in percentage standings, is literally sore from a harrowing accident Saturday night, when he was thrown in a three-horse spill. Ranger was taken by track ambulance to a nearby hospital Saturday night after his pacer fell over another fallen horse and Ranger was thrown high and hard to the track. He complained of back pains, and says he still is sore, but was x-rayed and examined and discharges from North Ridge hospital yesterday morning. Kevin Wallis and Daryl Bier, the other two drivers involved in the scary accident, walked away and drove in the next race on Pompano’s card. Ranger is going to see how the next two days go, and may return to driving Wednesday night if he feels well enough. None of the horses involved was injured seriously. But not her oil painting, yet. Stephanie Black, HTA’s Caretaker of the Year, was honored on Dan Patch Night Saturday at Hoosier Park, as HTA director and Hoosier president and GM Rick Moore presented her with her handsome blue and gold HTA/Hanover Shoe Farms jacket, emblematic of national honors. All grooms nominated receive one of the jackets, but Stephanie also will get an oil painting of herself with her favorite horse, Hoosier Gazette from the Alvin Miller stable, later in the season. HTA artist Jim Ponter is putting finishing touches on the work, which will be presented either at Hoosier or at Indiana’s other harness track, HTA member Indiana Downs, when the painting is completed. WHOA, OR GIDDYUP, IN KY? For the moment it is whoa, after Gov. Ernie Fletcher vetoed a bill that would have eliminated a daily tax on tracks to pay for operation of the Kentucky Racing Authority. But there still is a chance the tracks may escape the tax, $3,500 a day for thoroughbred tracks and $1,750 a day for harness tracks. The reason is that the legislature passed a two-year budget, replacing the track money in the first year, but not the second, with $1.2 million from the general fund. Fletcher’s office says that may be enough to take care of first year needs for the Authority, which also gets $1.3 million from licensing and other fees and $500,000 from the general fund under normal circumstances. A Fletcher spokeswoman said no decision had been made yet as to whether the first year tax r e lief might stand, so track operators will have to sit a bit before hearing whoa or giddyup. GURAL SHOOTS FOR JUNE 9 With a conditional license from the New York State Racing and Wagering Board now in his pocket, New York City breeder-owner Jeff Gural and his Nevada Gold partners from Texas are hoping to open Tioga Downs near Binghamton June 9. That’s only six weeks away, but Gural thinks he can start live racing by that date and begin slots play a little later, depending on when he and his partners receive their VLT license. He also says they are ready to take title on Vernon Downs just as soon as the Racing and Wagering Board issues a license for that operation. GOODLATTE, LEACH, LOSE ONE It was a tricky try, but it failed. Rep. Bob Goodlatte and Leach tried to slip Leach’s HR 4411 into a House lobbying reform bill as an amendment. House Rules Committee chairman David Dreier, a California Republican, and the House Republican leadership staff quickly shot it down, saying the matter was not germane and already had been referred to the House Judiciary Committee. Washington insiders called the try “unconventional and surprising.” 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 May 2, 2006 GURAL & CO NOW OWN VERNON AROUND HTA TRACKS..... Jeff Gural’s long, costly and persistent battle to own Vernon Downs is over. Gural and his financial partners took possession yesterday, and Gural and Nevada Gold, operating as American Racing and Entertainment, now can turn their attention to licensing from the New York Racing and Wagering Board and the New York Lottery Division, which must issue racing and racino licenses. Gural hopes to have Vernon up and running by July 1 for racing, with slots a month farther down the road. Creditors will be paid out of $6 million that American Racing paid to take over the track, and still ahead is the $24.5 million mortgage owed Vestin Mortgage and some $2.3 to $5 million, depending on racino revenue, due former owner Shawn Scott. Those debts must be paid within a year. Another $2 million must be paid immediately to Raceway Ventures, which was involved along the way but could not get licensed because of integrity issues involving participants. A lawyer for Vestin Mortgage, Jeff Dove, said yesterday, “It was a very long, complicated, hard-fought battle, but at the end of the day everything seems to have worked out and they’ll get the facility up and running.” Saratoga Gaming and Raceway has again been awarded the New York Night of Champions, which it hosted successfully last year. The big event includes eight New York Sire Stakes Finals, carrying total purses of $1.2 million, and will be raced on Saturday, Sept. 16. The track also announced the return of The Lodge restaurant, one of the best in Saratoga Springs, for an 11th season starting on May 3. Initially the restaurant will be open for dinner, starting at 5:30 p.m., and Sunday brunch from 11 to 3, through June and early July. Then, when the runners move to Saratoga, The Lodge will operate nightly from July 19 thru the thoroughbred meeting. Occupying the beautiful home that once was the residence of former Saratoga president Ernest B. Morris, the 75-seat gourmet restaurant is located on the spacious Raceway grounds just across Nelson Avenue from Saratoga Racecourse. RIVALS JOIN HANDS IN OHIO Penn National Gaming, reversing its field, has announced it will support the Learn and Earn group and other Cleveland business interests in seeking slots in Ohio by supporting their plan for slots at the state’s seven racetracks and two casinos in downtown Cleveland. The decision was announced, perhaps unrelated, after a press poll showed Ohio voters unenthusiastic about multiple plans from competing groups. Penn National, which operates the Argosy riverboat casino in Indiana, near Cincinnati, relented after the other unified groups dropped Cincinnati from their plan and concentrated on the tracks and Cleveland. The Meadowlands will again host a major education seminar for veterinarians during Hambletonian week in August. The 7th Annual Continuing Education Seminar for Equine Veterinarians will be held Friday, Aug. 4, from 8:30 to 5 p.m., at the Hilton Hasbrouck Heights near the track, with sessions at the Meadowlands on Thursday. For information and reservations, contact Marie Hagerty, First Choice Marketing, 908-347-1718, or email marie@first choicemarketing.us. Scioto Downs, which opens Friday night, also will host a Night of Champions, this one Super Night of the Ohio Sires Stakes Finals for 2- and 3-year-olds on Saturday, Sept. 9. That extravaganza will include eight $100,000 finals of the Ohio Sires Stakes, along with the 37th edition of the Jug Preview for 3-year-olds, final tuneup for the Little Brown Jug, which will be raced at HTA member Delaware County Fair Thursday, Sept. 21. 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 HERE’S WHAT VESTIN GETS With the takeover of Vernon Downs, Jeff Gural and his partners Nevada Gold inherit some serious bankruptcy obligations. Vestin Mortgage, Inc., announced this week where it stands in the new arrangement. As a result of the bankruptcy plan approved by a federal bankruptcy judge, Vestin received new first trust deed notes from the buyer, Vernon Downs Acquisition, LLC. Vestin Realty Mortgage I, Inc., holds $3.2 million of the new notes and Vestin Realty Mortgage II holds $19.6 million. The new notes reflect a $1.2 million principal reduction payment and a deferred gain of $171,000 for Vestin Realty Mortgage I and $1,030,000 for Vestin Realty Mortgage II. The gain cannot be realized until the notes are paid in full. The new notes earn interest at the rate of 9%, are due in six months, and can be extended for an additional six months by payment of a fee. The notes are secured by a first trust deed on the Vernon Downs properties and carry a personal 100% guarantee by Jeff Gural, who is chairman of Newmark and Company Real Estate, and a 50% guarantee by Nevada Gold and Casinos. The Vestin companies also received prepayment of interest on the new notes of $500,000, delay fees from the date of bankruptcy confirmation until the effective date of $287,000, and payment of past due forbearance fees of $555,000. Vestin said its companies received forbearance payments from the original guarantors of the original loan during the entire bankruptcy period. WHY THE HELL ARE WE IN THIS? That wasn’t Jeff Gural’s question. It was Frank Stronach’s, or at least it was what Stronach told Magna Entertainment shareholders at their annual meeting this week. “People may ask,” Stronach said, “Why the hell are we in this kind of business, losing so much money.” May 3, 2006 He answered by saying, “It’s a huge, huge business, and I’m optimistic that down the road, we could get 10% of all the gambling in the world. It would be a huge, huge number. Stronach’s lead director, Jerry Campbell, told the shareholders 2005 had been a tough year, but he believed MEC “hit bottom in 2005,” and said the company was “optimistic about the future.” Noting that the company showed net income of $2.2 million against a net loss of $4.1 million for the first quarter last year, Campbell said, “We think you’ll be happier with next year’s results.” Stronach added that MEC was “well on our way. I think we have a great opportunity to be the foremost gambling and entertainment company in the world.” He said MEC had spent $400 million in the last few years, but had to do so given the need for infrastructure improvements. “We knew the racetracks were run down and antiquated. If we had left them alone, we could have had a good return, but we felt the old way isn’t good enough.” To reduce debt, Magna Entertainment is selling The Meadows for $225 million, two golf courses, land worth $150 million, and possibly some of its smaller tracks. MEC also plans to issue equity, and Stronach told investors and shareholders that he might put up some of his own money. IN OTHER GAMING NEWS.... Harrah’s Entertainment, putting finishing touches on its $400 million Chester track and racino, announced it will spend $485 million to turn its Hammond Horseshoe Casino in Indiana into a Las Vegas-style entertainment center, doubling the size of the current riverboat casino. The property’s general manager said the finished project “will rival anything in the Las Vegas strip.” Harrah’s announced first quarter revenues up 93.3% to a record $2.4 billion. Penn National had first quarter revenues of $569.2 million, up 96.8% over 2005. 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 May 4, 2006 THE DOUBLE-GAITED MIDAS HAIL ANOTHER HTA SCHOLAR Everything he touches, regardless of gait, turns to gold. He won the Hambletonian driving his own horse, Malabar Man, in 1997, and -- restless as always -- Mal Burroughs is out seeking new worlds to conquer. He’s enroute to Louisville today where his 3-year-old thoroughbred filly, Last Romance, runs tomorrow in one of America’s great filly races, the Kentucky Oaks, companion feature of the Kentucky Derby. Last Romance, claimed for $60,000 at two last year, will have to overcome 13th post position in the Oaks. Trained by Richard Dutrow Jr. and ridden by Rafael Bejarano, she is chancy at 15-1 in the big field headed by the 2-1 morning line favorite Balance. When the roster of 111 young men and women who have won Harness Tracks of America scholarships is studied, the name of Chris McErlean. a winner in both 1987 and 1988, jumps off the page. He now is, of course, vice president of racing operations of the Meadowlands, the sport’s largest track, and past president and past board chairman of HTA. Yesterday another HTA scholarship winner hit the media big time, when Joe Asher was featured in a long story in the New York Times. Asher now is managing director of Cantor G & W, the gaming division of the big financial services company Cantor Fitzgerald. The Times story told of Joe’s success in steering Cantor’s wireless betting devices through months of legal hassling, political maneuvering, and hearings in Nevada, to where they now have been legalized and are ready for use in the major hotels of the Las Vegas strip. Joe, long mentored by HTA treasurer Hap Hansen, won HTA scholarships in 1990 and 1991. We turn out good merchandise. COMING SOON, 2 HARRISBURGS For those who enjoy the frantic, non-stop action of the Standardbred Horse Sale auction in Harrisburg each November, good news and glad tidings. You’ll now be able to visit Pennsylvania’s capital twice a year. Overbooked in November and on the cusp of a Pennsylvania boom with slots at the state’s three harness tracks, the sport’s largest sales company has announced a second yearling sale, to be held the last week in August in the sale’s traditional site, the Pennsylvania Farm Show Building. Given the August date, more good news: the yearlings will be housed in a newly air conditioned stable, and sold in the Farm Building’s air conditioned small arena. A consignment of 200 yearlings is expected, 35 or 45 of them from Hanover Shoe Farms, and most Pennsylvania eligible. INTERNET BILL ADVANCES HR 4777, the Internet Gambling Prohibition Act, better known as the Goodlatte bill, has passed the House Crime Subcommittee and gone to the Judiciary Committee. Racing is protected in the bill. TWO SOLID COURT VICTORIES In a case with significance for racing, the Connecticut Supreme Court has upheld the right of Autotote Enterprises to advertise telephone betting services. The Connecticut Division of Special Revenue had barred the advertising on simulcasts, calling it an expansion of gaming, which was under a moratorium. The high court ruled, 5-0, that the arguments of the state were logically inconsistent. Justice Peter Zarella, writing the decision, said, “On the one hand the division concedes that the operation of the telephone betting system is permissible...on the other hand, it claims coupling advertising with the live broadcasting of races....creates an off-track betting facility for purposes of the moratorium.” In Arkansas, a judge dismissed a lawsuit challenging electronic games at Oaklawn. 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 TIOGA TO OPEN FRIDAY, JUNE Tioga 9 Downs, one half of Jeff Gural’s Daily Double of Tioga and Vernon Downs, will open Friday, June 9, and race Fridays, Saturdays and Sundays until its sister track gets open, hopefully on July 1. When that happens, Tioga will switch to a Friday, Sunday and Monday schedule, with post times at 6:50 p.m. except for Sunday cards, which will be daytime affairs starting at 12:45 p.m. Tioga will feature an open paddock, in close proximity to its five-eighths mile track. The racing program, once Vernon gets underway, will be a coordinated offering between the two tracks. CHALLENGE TO ILLINOIS BILL? Horse racing in Illinois was celebrating today, after passage in both houses of the legislature of the Molaro bill, which gives racing 3% of revenue from the state’s four highest-grossing riverboat casinos. The bill has gone to Gov. Rod Blagojevich’s desk for almost certain signature, and could provide as much as $35 million to Illinois racing for purses and track improvements and marketing efforts. Sixty percent of the money will go to purses. The law has a sunset provision of two short years, which helped appease the casino interests a bit, but possibly not enough to avoid a challenge in the courts. Betting on horseracing in Illinois has fallen 42% in the last 15 years, and the new measure hopefully will allow for enough marketing and promotion to help stem that drop. GREAT CANADIAN CUTS DATES Citing sharp drops in betting at Flamboro Downs and Georgian Downs in the last nine months, Great Canadian Gaming has announced it will cut racing dates at both tracks. Flamboro will race five days a week this year, four next year, and three i n 2008. Georgian Downs will reduce its schedule from 120 racing dates to 104 next year. May 5, 2006 HAWTHORNE OPENS SATURDAY The Chicago harness racing scene moves to Hawthorne Race Course tomorrow night for a 37program Suburban Downs meeting lasting through June 17. The track has taken over title as Chicago’s In-Town track, with its longtime next door neighbor Sportsman’s Park gone from the scene. Hawthorne will present 15 $50,000 races during that time and two $100,000 events - the Erwin Dygert Memorial for the sport’s top trotters and Robert Carey Memorial for the best pacers -- both to be raced on closing night, Saturday, June 17. The Grand Circuit also will stop in Chicago again this year, with eight $50,000 events featured between June 14 and 17 in what Hawthorne cleverly is calling the World Series. SCIOTO DOWNS OPENS TONITE Scioto Downs, Ohio’s “Showplace of Racing,” kicks off its long spring and summer stand tonight, the Columbus HTA member racing four nights a week -- Tuesdays, Thursdays, Fridays and Saturdays -- through Sept. 16. The big night of the meeting will come on Sept. 9, Ohio Super Night, when eight $100,000 Ohio Sire Stakes finals and the Jug Preview for Little Brown Jug hopefuls will be raced. YOUBET.COM ON A ROLL Youbet.com, the online betting company, reports a 31% increase in net income for the first quarter of 2006. The quarter includes operating results from International Racing Group, the offshore adjunct that Youbet bought last June, and United Tote, which Youbet.com acquired in February. Chuck Champion, Youbet’s CEO, said same-track handle growth was up 26%, and its total revenue for the quarter of $27.8 million showed a 50% increase from the $18.5 million of a year ago. Champion said online advance deposit wagering increases represented “strong momentum” for Youbet. 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 May 7, 2006 JIM MORRILL HURT AT BUFFALO ORC TO GREAT CANADIAN: NO Jim Morrill, the 41-year-old driving star who moved from the Delaware Valley circuit to Batavia and Buffalo and became an immediate dominant figure at those tracks, was injured last night in a racing spill, the third major driver to be sidelined in the sport in recent weeks. First reports on Morrill’s injury talked of concussion, broken ribs, and shoulder and wrist damages, but at press time reports were that he had been released from the hospital and was resting at home. Driver Kevin Cummings, whose horse Moaner Lisa A fell in front of Morrill’s mount, Pennywise, also suffered hand injuries, but appeared to escape more serious injuries. Both horses were reported as escaping without harm. One of the first elements of Great Canadian Gaming Company’s “Stop the Bleeding: Build the Business” plan announced last week for Flamboro Downs and Georgian Downs was shot down quickly by the Ontario Racing Commission Friday. Commission executive director John L. Blakney ordered “immediate suspension” of GCGC’s decision to close its backstretch stabling and apartment facilities at Flamboro July 31. Blakney’s order said he had determined that the closure “may be prejudicial to the best interests of racing,” and ordered an investigation, to be paid for by Great Canadian Gaming. The company says in its 24page white paper on future plans that its long term goal is to move to circuit racing between Flamboro and Georgian, and it proposes cutting live racing dates at both facilities sharply in the next two years. ILLINOIS CASINOS UNHAPPY There is no joy on the riverboats in Illinois right now, after the legislature passed and sent to governor Rod Blagojevich a bill that provides 3% of the revenues from the state’s four top-grossing casinos to support the state’s horseracing industry, of both breeds. The bill came about because a 1999 law that gave racing 15% of revenues from the bitterly disputed Rosemont that did not materialize because the casino never was built. Racing would have gotten as much as $70 million a year from that deal, as opposed to the roughly half of that figure it stands to gain from the new law, which the governor is expected to sign. The casinos also are expected to sue, on constitutional grounds. If the law holds, Hawthorne could receive $4 million and Balmoral and Maywood Park roughly the same, with horsemen getting their share in purses. The bill as passed has a sunset provision of two years. Horse racing is a major agricultural industry in Illinois, north and south, and the riverboats are not. The 1999 legis- l a tion allowed riverboats to remain docked, a perk estimated to have saved them $4.1 billion. “WHAT’S HOLDING UP OTB?” That was one of the questions asked today in Trenton, the capital of New Jersey, as members of the Assembly met to discuss off-track betting in the state. The Meadowlands, through its parent New Jersey Sports and Exposition Authority, has approval to operate 13 of 15 OTB sites in the state, but has announced only two sites, one in Vineland and another in either Cape May or Atlantic counties. Assemblyman Jeff Van Drew and Assemblywoman Linda Stender were talking today about opening off-track betting licenses to competition if the Meadowlands does not speed up the process. NJSEA spokesman Bernard Spigner said the Authority “understands the frustration felt by members of the legislature with regard to opening OTWs, and that the Authority “had hoped and expected to be further along than we are now, but the process for establishing these facilities is quite involved.” He said opening the licenses to competition “would weaken and potentially destroy the racing industry.” 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 May 9, 2006 UH, OH, OHIO PLAINRIDGE UPSCALES TOO The brief quiet of harmony and unity was shattered in Ohio yesterday, when Cincinnati, upset at being dealt out of the slots sweepstakes in the state, said they will pursue their own plan for a casino. Cleveland area interests and Penn National Gaming had reached a compromise of sorts in their plans, realizing separate proposals would split a public vote next November if their proposal gets that far. The compromise was to drop Cincinnati from plans for a downtown casino, to appease Penn National with its Argosy riverboat in nearby Indiana, and go with slots at seven tracks and two casinos in downtown Cleveland. They apparently didn’t ask Cincinnati about it, for now a group of Cincinnati civic and business leaders have come up with their own plan for a downtown site called Broadway Commons. So the stage is set for a battle between Ohio’s two biggest cities, and the Cincinnati City Council is expected to support a resolution tomorrow and campaign against any initiative that doesn’t include the Queen City. HTA member Plainridge Racecourse took advantage of a big Kentucky Derby day crowd to unveil its latest physical improvements. A new second level simulcast theater was unveiled, with oversized screens, 200 betting carrells, new television screens and a much-needed cafe. The upgrades were warmly received, and Plainridge made a day of it by offering a free breakfast buffet starting at 9:30 Saturday morning and a 10 a.m. live harness racing card. Seven charities benefitted from the day’s activities, and members of the New England Amateur Drivers Club, now in its fourth year of operation, got to drive in two of the races on the Plainridge card. BIG PLANS FOR ISLE OF CAPRI Isle of Capri, owner of HTA member Pompano Park Harness Track in Florida, has announced it is moving ahead with plans for a $140 million development at the track. The plans call for a racino with 1,500 slots, a poker room and four restaurants, and featuring a multi-story bar offering a high-tech sports bar and wagering area overlooking the track. The restaurants will include an Isle of Capri’s branded Farraddays’ steakhouse, a signature tropical-themed buffet, a full service New York-style delicatessen, and another eatery still not named. Isle of Capri says the plans are contingent on receiving all necessary licenses, and other unspecified “conditions” which presumably include a winning battle in the legislature, where gaming is likely to be challenged once again. LONG BRENNAN CASE OVER It took nine years, but when a New Jersey federal bankruptcy judge signed the final decree yesterday, the case of Robert Brennan, Debtor, came to an end. If you lived or raced in New Jersey, the memory of Robert Brennan won’t fade, now or ever. His handsome blonde figure, emerging from his helicopter and hustling his First Jersey Securities, his chain of restaurants and Garden State Park and International Horse Racing and Due Process Stable occupied the news relentlessly, until the uproar of 11,000 angry investors who had poured $55 million into Brennan’s penny stock operations resulted in a lawsuit brought by the Securities and Exchange Commission brought him down. He is still serving a 12-year sentence in the Fort Dix federal prison in New Jersey. EILEEN O’BRIEN DIES AT 79 Eileen O’Brien, widow of Hall of Fame trainerdriver Joe O’Brien, died yesterday in a convalescent center near her home in Shafter, CA, where she spent three years suffering from Alzheimer’s disease. Mrs. O’Brien is survived by her sons Chad, a teacher in Shafter, and Stanley, an Indiana-based trainer-driver. 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 May 11, 2006 RACING HAS TO STOP THIS MEADOWS MAKES NEWS Congressman Ed Whitfield of Kentucky gets a lot of ideas, some of them good. Right now he has a very bad one, and racing needs to oppose it as strongly as it can. Whitfield, who campaigned vigorously to shut down equine slaughterhouses in this country, now wants to amend the Interstate Horseracing Act of 1978 to provide for health coverage for jockeys. He and another congressman, Bart Stupak of Michigan, are holding hearings of the House Subcommittee on Oversight and Investigation, of which Whitfield is chairman, and racing leaders have been quick to see the danger of messing with a federal statute that has served the industry well for 28 years. Chris Scherf, executive vice president of the Thoroughbred Racing Associations, said that giving riders veto rights over simulcasts would “wreak havoc” on the industry’s current practices, and he is correct. So are the national Horsemen’s Benevolent and Protective Association (HBPA) and the Thoroughbred Owners and Breeders Association (TOBA) which have announced opposition to the Whitfield move. Scherf said “Everyone’s losing money, and they’re talking about fundamentally changing the business structure for 88 percent of our revenues.” Remi Bellocq, executive director of the HBPA, said yesterday that the proposed legislation would “threaten a bedrock of the industry.” Are all these racing veterans wrong and Whitfield right? We doubt that, and racing needs to do what it can to make sure this proposal goes nowhere. Meddling with the Interstate Horseracing Act is a very bad idea. The Meadows hasn’t officially been sold yet for $225 million by Magna Entertainment to Las Vegas based Millennium Gaming, but a Millennium executive got the track a lot of positive news coverage in the pages of the Pittsburgh Post Gazette and regional newspapers yesterday at a meeting of the Pennsylvania Gaming Control Board. Bill Paulos, a partner in Millennium. outlined plans for a $450 million refurbishing, which will include a tiered buffet for 700 people overlooking the track, a wine bar and steak house, a theater and teleconference center, and of course a racino. The entertainment complex will encompass 250,000 square feet, and Paulos said daily attendance could grow 10 times once it is opened. Millennium and its partner, Oaktree Capital Management, are awaiting only Gambling Board approval before beginning construction on a temporary facility for 1,500 slot machines, hoping for Labor Day approval for the slots. Ultimately the racino will have 3,000 slots, and Millennium expects 4,200 people a day to be at the track once they are installed. SLOTS HOPES END IN KANSAS It’s all over for slots at horse and dog tracks in Kansas. The House, before ending the legislative session, said “No” by a 72-44 vote against a last minute try by slots supporters as Kansas economic forecasts brightened. FREEBIE AT VERNON DOWNS Shareholders of Vernon Downs’ former parent company, Mid-State Raceway, have until tomorrow to get in on the new management, free. Under the bankruptcy agreement, former track owner Shawn Scott has agreed to pay “buy-in” fees for the former stockholders, for whom a 10% share of the new company has been set aside. The most Scott would have to pay is $5,000, and it is not clear how many Mid-State shareholders will sign up for the new stock by tomorrow’s deadline. Scott also paid for a full page ad in the Utica ObserverDispatch reminding shareholders of their chance to get in on the new company. Each who joins Vernon Downs Acquisition will receive at least the same percentage share in the 10% set-aside as he or she owned of Mid-State. 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 RUCKER LATEST EPO CASE The state of New Jersey has its first EPO positive since it began testing in March, and that dubious honor falls to trainer Ken Rucker. Unfortunately and incredibly, New Jersey has no rules in place that would call for Rucker to be penalized, other than suspension of the horse for racing until its high EPO level returns to normal. The state does those tests only in 21-day increments, and at the owner’s expense, which presumably means the horse will be out of action for three weeks. The pacer, Highland Pride A, did not win a race last year but has won 9 of 17 this year. The 10-year-old Australian import was claimed from trainer Robin Schadt for $10,000 last October by the Rucker and Engel Stables, the latter owned by Martin Engel, president of the Illinois Harness Horsemen’s Association. The horse tested positive for EPO after taking a new record of 1:52.2 at the Meadowlands last Sunday in a $20,000 to $25,000 claiming handicap. New Jersey Racing Commission executive director Frank Zanzuccki said that while there are no penalties in the regulations that the trainer would be subject to, the safety and health of the horses came first and Highland Pride A “had an extremely high level of EPO for a normal horse.” Zanzuccki said when the reading came down to an acceptable level the horse would be able to compete. Rucker was hit with eight positives for indomethacin (Indocin) in Illinois last fall and was fined $3,000 ($500 each on six of them) and suspended for 180 days. The Illinois Racing Board then stayed his suspension indefinitely, according to a statement issued January 4 by projects manager Mickey Ezzo, “because he had so many positives for the same drug we are looking at contamination. We are testing for contamination of feed and things like that, and testing just hasn’t been done yet. That’s why we’ve extended the stay.” We heard of no further action since then. May 12, 2006 Ironically, a test for antibodies to EPO was developed partly in New Jersey by Dr. Ken McKeever of Rutgers University, working with Dr. George Maylin of Cornell University in New York, but apparently the state has not yet committed to using it, or at least not confident enough to fine or suspend trainers whose horses turn up positive for EPO. INTERNET BILL TO JUDICIARY Congressman Bob Goodlatte’s Internet Gambling Prohibition Act (H.R. 4777), which first surfaced five years ago on our radar, is expected to reach the full House Judiciary Committee shortly, perhaps as early as next Wednesday, May 17. The American Horse Council supports the bill because it includes provisions to protect horse racing’s ability to continue to offer interstate wagering over the Internet and other electronic media, where legal in those states. It does this through the Interstate Horse Racing Act of 1978, as amended in 2000. That provision will be a focal point of debate when Judiciary considers it next week. If you are a constituent of any Judiciary Committee members, please contact them and ask them to oppose any efforts to eliminate racing’s exemption. Here are the members from harness racing states with HTA members: CALIFORNIA: Elton Gallegly, Dan Lundgren, Darrell Issa, Howard Berman, Zoe Lofgren, Maxine Waters, Howard Schiff, Linda Sanchez. FLORIDA: Ric Keller, Tom Feeney, Bob Wexler, Debbie Schultz. ILLINOIS: Henry Hyde. INDIANA: John Hosteltler, Mike Pence. IOWA: Steve King. MARYLAND: Chris Van Hollen. MASSACHUSETTS: Marty Meehan, William Delahunt. MICHIGAN: John Conyers. NEW YORK: Jerrold Nadler, Anthony Weiner. OHIO: Steve Chabot. 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 May 15, 2006 HTA INTROS INTERNET SHOW OHIO POLS PILE ON SLOTS Harness Tracks of America, now with 43 members in the U.S. and Canada, is introducing a new weekly Internet harness racing talk show this week, featuring interviews with newsmakers in racing and gaming worldwide. The heavy hitters of Ohio politics, led by U.S. Senator George Voinovich, fired their heavy artillery yesterday, blasting away at the consortiums attempting to get slots at tracks approved in a November referendum. The show, to be hosted by HTA executive vice president Stan Bergstein, will be called The World in Harness, and will be produced in a stateof-the-art studio built in HTA’s Tucson headquarters. It will appear on HTA’s Web site www.harnesstracks.com each Wednesday, and each edition will remain online for a week, with updates inserted as major newsbreaks occur. Brock Milstein of Northfield Park, HTA’s president, said in announcing the production, “It became apparent, listening to the panel of media greats assembled at the Racing Congress in Las Vegas, that the Internet is a major part of racing’s future. We lost one generation to television half a century ago, and we don’t propose losing another now. Stan’s daily views of racing and gaming, distributed each morning to HTA directors in the association’s Executive Newsletter, deserve wider distribution, and the Internet provides a perfect platform to reach those in the sport and the general public.” Voinovich was joined by the state’s attorney general, Jim Petro, and auditor Betty D. Montgomery, now the Republican candidate for Petro’s job. They spoke at a news conference with David Zanotti, president of the American Policy Roundtable, which opposes gambling. In addition, both candidates for governor in Ohio, Republican J. Kenneth Blackwell and Democrat Ted Strickland, oppose the November ballot idea. In an interesting aside, Zanotti admitted his group sought support from Democrat Strickland but not Republican Blackwell, because the latter, Ohio’s secretary of state, previously held stock in International Game Technology, the slot manufacturer. Zanotti said his group, to be headed by Ms. Montgomery, will be reaching out for Blackwell, because “he is the nominee for governor and he claims that he’s against the expansion of gambling.” Strickland, while opposing the slots idea, did take campaign funds of more than $50,000 from those with racing and gaming interests, including MTR Gaming, which owns HTA member Scioto Downs. Strickland also held fundraisers at West Virginia racetracks, which not surprisingly oppose the idea of slots in Ohio. The new studio, constructed by audio engineer Brian Bynes, whose Desertcompusulting company services HTA’s computer technology, incorporates the latest in wireless audio technology for high fidelity transmission and reception. Commentary will be interspersed with interviews with the newsmakers themselves. Bergstein, who co-hosted Racing from Roosevelt and Yonkers from 1974 until 1986 on nationwide TV emanating from clear-channel WOR-TV in New York, has compiled a list of harness features, with newsbreaks that occur during the week edited into that week’s presentation. STORM WARNINGS IN NJ? Legislative committee meetings on racing in New Jersey last week revealed cracks in the dike of support between racing and Atlantic City casinos. An $86 million purse subsidy arrangement which casinos agreed to in an effort to keep slots from tracks expires in October, 2007, and a casino spokesman said he did not think the casinos would be amenable to extending the agreement. 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 May 16, 2006 TWO JOLTS FOR OUR SPORT MR. BECK WANTS IN...BAD Harness racing reeled today from two heavy blows. Louis Beck is a Cincinnati banker and hotelier, and he wants to build a casino and hotel in downtown Cincinnati’s Broadway Commons. He wants to do it so badly, or so goodly, that he is willing to put up $2 million to pay all expenses related to getting an initiative on the November ballot that would include Cincinnati. The city was voted out by the Learn and Earn group that decided, in deference to Penn National Gaming, which operates the Argosy casino in Lawrenceburg, Indiana, not far distant from Cincinnati. Beck says he was sitting in the room when the Learn and Earn group voted to include Cincinnati out, and he called Penn National “the 800-pound gorilla in the room.” Beck said he felt “like I was voted off the island,” and he said that any ballot initiative that does not include Cincinnati will fail. “They can’t win without southwest Ohio,” Beck told the Cincinnati Enquirer. “There is no chance of it.” At HTA member Harrington Raceway in Delaware, 51-year-old veteran driver Harold (Hal) Belote was killed in the first race Monday night when his horse stumbled after half a mile and fell, and two horses trailing him crashed into and ran over Belote. Belote, a popular driver with an exemplary record, had 1,986 career wins and almost $11 million in purse earnings. He began his driving career at Harrington 29 years ago, and was regarded as a solid horseman of high integrity. Two other drivers, Brandon Givens and Steve Warrington, drivers of the horses that fell over Belote and his horse, both were injured and hospitalized, Warrington with rib and leg injuries and Givens with a compound fracture of a leg. The racing card was cancelled immediately following the accident. In another downer for the sport, Charles Keller III announced that one of the most prominent breeding operations in the sport -- Yankeeland Farm -- was closing its doors. Founded in 1955 by New York Yankee slugger Charlie (King Kong) Keller, Yankeeland has sent out some of the sport’s most successful horses, including the trotter Fresh Yankee, Hambletonian winners Muscles Yankee and Yankee Paco, the current hot trotting sire Yankee Glide, and the million dollar winner Yankee Cruiser. The farm’s yearlings will be sold, as usual, at the Kentucky Select Yearling sale in October, the primary broodmare band will be dispersed at public auction in November and other farm horses will be sold next year. In a third piece of bad news, owner-breeder-trainer and USTA director Walter (Boots) Dunn suffered compound fractures of both legs in a construction accident at the Meadville, PA, fairgrounds. SYNTHETIC OR YOU’RE OUT That was the word for California thoroughbred tracks yesterday from the state Senate, which voted to make synthetic racing surfaces mandatory for licensing after 2007. Five tracks -- Santa Anita, Hollywood Park, Golden Gate Fields, Bay Meadows and Del Mar, will be affected if the California Assembly agrees with the Senate. MAKE THAT THURSDAY, PLEASE “Technical difficulties,” as they love to say in the broadcasting business, will delay introduction of HTA’s new Internet racing interview and commentary show for 24 hours. The World in Harness, scheduled to debut tomorrow, will make its bow Thursday instead. The show, once posted, will be available 24 hours a day, 7 days a week, by simply clicking on it on the HTA Web site, www.harnesstracks.com. It is audio, not video, and can be accessed any time. 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 ADVICE FROM STANFORD PROF Lawrence Lessig is a law professor at Stanford University, and an author on legal aspects of cyberspace. He gave the keynote speech yesterday at the Global Interactive Gaming Summit and Expo in Montreal, and he gave racing leaders something to think about. “My argument,” Lessig said, “is that it’s a mistake to bet the industry on the capacity to escape the government’s ability to regulate.” Lessig said that new technologies being developed by Microsoft and other software giants will soon make it possible to authenticate the identity of a computer user anywhere in the world. When that happens, he said, governments worldwide could cooperate on a global approach to cyberspace regulation, including betting on horse races. Lessig said such technology would enable governments to impose controls currently beyond their reach. He cited Utah as an example, saying the government will be able to compel companies facilitating online betting to ensure their customers are not betting from that state, where it is illegal. Lessig said racing had better start preparing now to deal with government regulation, and should stop resorting to tactics aimed at evading it. AND A CLEAR EXPLANATION No one has explained the dilemma facing racing better than Dave Perkins, sports columnist for the Toronto Star, in today’s issues of that newspaper. In a succinct and simple explanation of what signal piracy is costing racing, Perkins told of plummeting figures on Canadian harness racing and slots revenues in Ontario, then asked the question, “Where is all the money going?” He answered it, writing, “Most of it to Belize and a dozen other hot spots over the Internet, that’s where.” Perkins made a critical point overlooked by less knowledgeable journalists who keep writing about “racing’s decline.” May 17, 2006 “People aren’t betting less,” Perkins wrote. “They’re gambling more than ever -- encouraged by the biggest bookmaker of all, our government(s). The sooner our leaders wake up and smell the coffee on this one, the better for everyone. It’s time we legalize all forms of gambling, regulate it, keep underage kids from participating and keep hundreds of millions -- soon to be billions -- of Canadian dollars in Canada.” YOUBET, HARRAH’S ONLINE Youbet.com and Harrahs’s Louisiana Downs Racetrack and Casino are joining forces to help build the online segment of the track’s pari-mutuel wagering business. The multi-million dollar partnership breaks new ground for both companies, with a major track using an independent online wagering source to proactively and aggressively build a broader following for its racing content. Mark Midland, vice president of racing operations for Harrah’s Louisiana Downs, said of the arrangement, “Youbet is where the largest share of the online market is congregating to watch and wager on horse racing. So it makes a lot of sense for us to use their channel to target handle growth from new, young and active racing fans all over the country.” HTA’S INTERNET SHOW DEBUTS It won’t carry happy tidings, but the inaugural edition of HTA’s new Internet talk show, The World in Harness, should be on the HTA Web site by late tomorrow. The first show will play until next Wednesday, when a new edition will air. Guests on the first show include Hugh Gallagher, executive director of the Delaware Racing Commission, discussing the fatal accident at Harrington; drivers Doug Brown and Bruce Ranger, both hospitalized by spills; Charley Keller, discussing the closing of Yankeeland Farm; and Jay Hickey, president of the American Horse Council, talking about Washington legislation affecting racing. 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 May 19, 2006 BIG EXPANSION AT SARATOGA WORLD IN HARNESS ONLINE HTA member Saratoga Gaming and Raceway has announced plans for a $12 million plus expansion that will include 400 new video lottery terminals, a buffet restaurant seating 300, and a two-story nightclub that will accommodate 200. Rita Cox, vice president of sales and marketing, told the Saratoga County Chamber of Commerce the track originally planned to build a hotel and event center, but “we took that off the table because it was pretty clear it was unwelcome.” She said the idea may resurface down the road, but the plan was scrapped for now. The racino expansion will be a 45,000 square-foot addition to house 400 new machines, needed to accommodate the 50,000 patrons a week that jam into the present facility. One customer, quoted in the Albany Times-Union, said, “You come down here on a weekend, you can’t find a seat.” Her husband added, “I’m waiting for them to pull the wall down.” If regulatory approval for the plans is granted, the expansion would bring Saratoga’s slot total to 1,724. The nightclub would replace a tent currently used for outdoor concerts in summer months, and for host parties and special sporting events, including watching major racing classics and professional sports. Three state agencies -- the state Lottery Division, the Racing and Wagering Board, and the Department of Environmental Conservation, must approve the plans. Saratoga expects the expansion would take four months after approval. HTA’s new Internet racing show, The World in Harness, is up and running. The first edition includes newsmaker interviews with Delaware Racing Commission executive director Hugh Gallagher, discussing the accident involving driver Hal Belote, who lost his life, and Steve Warrington and Brandon Givens, both hospitalized; Doug Brown and Bruce Ranger, two of the sport’s best drivers, both also injured in serious accidents; Charley Keller III, discussing the closing of one of the sport’s most important breeding operations, Yankeeland Farm; and American Horse Council president Jay Hickey. CHURCHILL MAKES BIG CUTS Ed Callahan, HTA director for Rockingham Park, says it is not likely that runners will return to the Rock this summer. Callahan, who was honored yesterday by the New England Harness Writers Association, said he did not want to take horses from nearby Suffolk Downs, which is having trouble filling races. Sunday afternoon cards had been discussed, but Callahan says he needs to talk to the New England HBPA about turf races. Churchill Downs president Tom Meeker yesterday announced layoffs and consolidation of departments “to proactively address changes within our industry that have left horseracing at a competitive disadvantage.” Among the departed are director of investor relations Mike Ogburn and VP of customer relationship management and technical solutions Atique Shah. The show will remain on the HTA Web site, www.harnesstracks.com, until next Wednesday, when a new edition will appear. That show will include interviews on racino and track expansion plans with Jeff Gural of Tioga Downs and Vernon Downs; Mike Tanner of Harrah’s Chester Casino and Racetrack; Bob Soper of Mohegan Sun at Pocono Downs; Mike Jeannot of The Meadows; and Bob Galterio of Yonkers Raceway. HTA staffers Brody Johnson and Jessica Carner, assisted by HTA computer consultant Brian Bynes, did an exceptional and outstanding job of studio setup and computer composition of the new show within a week after it was announced. RUNNERS AT ROCK UNLIKELY 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 MAJOR NEW STEP IN ONTARIO May 22, 2006 The trendsetting Ontario Racing Commission has taken another major step toward control of illegal medication. The ORC has issued a directive that all owners or trainers must make their horses available for a blood test to be taken at any time the Commission requests, without prior notice. The Commission is committed to expanding the medication control program beyond existing pre-race, post-race testing and retention requirements. As promulgated, the new directive provides that failure of any owner and/or trainer to make the horses available for drawing of blood on demand can result in the horse being scratched, the trainer being refused the right to enter a horse in future races at Ontario tracks, and/or owners being refused the right to race in Ontario. Although the directive and release announcing it did not mention either possibility, the drawing of blood could lead to freezing of samples for future reference as new testing procedures become more sophisticated, or could be used to develop a baseline measurement for normal parameters of horses in competition. In another show of determination, the Ontario Racing Commission reaffirmed the suspension of veterinarian Dr. Martin Ian Levman and the barring of all horses treated by him after Sept. 24, 2005, but shortened his suspension from that date until Sept. 24, 2009. Dr. Levman admitted buying prohibited drugs from the late Fred Rogers, whose offices were searched in 2004 and turned up large amounts of various drugs and substances and invoice documents tying Dr. Levman to purchases of them. Levman appealed the ruling and was granted a hearing. if new tax rules deviate from its understanding of state gaming laws when it bought Pocono Downs. Some interpretations of tax rules by lawmakers and other officials in Erie could raise the effective tax rate on Mohegan slots to as high as 63.4%, according to Mohegan Sun lawyers. The company said it “cannot absorb an additional tax obligation of this magnitude and maintain a plan for its gaming and harness racing business that provides for adequate recovery of, and return on, investment.”The Scranton Times-Tribune quotes Mohegan officials as saying that “absent a reasonable, acceptable and timely resolution of this local share obligation issue...Mohegan will be forced to reconsider their plan to own and operate a slot machine facility and other operations in this Commonwealth.” The 2004 legislation legalizing slots in Pennsylvania set a tax rate of 55% of gross slot revenue, 34% to the state for property tax relief, 5% for tourism and economic development, 12% to horseracing, and 4% split between host community and host county. Proposed changes could boost the track’s tax obligation from $2.2 million, which Mohegan expected, to $10 million If that were to happen, Mohegan says, it would not operate the track or the slots. Some legislators are reported backing legislation to require a $10 million minimum for local and county taxes, but Stephen Menn, the solicitor in Plains Township, where Pocono is located, told the Times-Tribune, “I can safely say the township has never anticipated receiving $10 million on an annual basis,” but rather that Mohegan’s share would be limited to $2.2 million, 50% of the township budget. MOHEGAN COULD BACK OFF HARRAH’S Concern over ambiguity in proposed rules for collection and distribution of local taxes on slots h a s led Mohegan Sun at Pocono to tell the Pennsylvania Department of Revenue that it may not be able to do business in the state Harrah’s Chester Casino & Racetrack has named veteran Rick Kane racing secretary, Barry Brown, formerly of Freehold Raceway, publicity/simulcast manager, and Steve Smith mutuels manager. APPOINTMENTS 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 May 23, 2006 CRUNCH TIME AGAIN WELL, IT’S HERE, FOLKS The full House Judiciary Committee meets in Washington Thursday, and will mark up two Internet wagering bills. Rep. Bob Goodlatte’s Internet Gambling Prohibition Act, HR 4777, and Rep. James Leach’s Unlawful Internet Gambling Enforcement Act of 2006, HR 4411. Both contain exemptions at present for horse racing, allowing Internet betting in states where it is legal. Interactive Gaming News reports that the markups of the two Internet gambling-related bills are necessary because the committee’s sequential referral of the Leach bill will expire May 26. The chairman of the Judiciary Committee, James Sensenbrenner, requested an extension of time to consider the legislation, but the House Republican leadership denied his request. Rep. Goodlatte, IGN says, is expected to submit a revised version of his bill that seeks to clarify remote betting exemptions in racing, an issue discussed in subcommittee deliberations last month. The American Horse Council is hopefully optimistic that racing’s exemptions will hold. The matter is being resolved in Washington, where uncertainty is the only certainty. Let us pray. The world’s first race between clones, only it’s not between trotters or pacers or runners. Bloodhorse.com reports it will be between identical 3-year-old “miracle mules,” cloned in 2003 and “a perfect picture of health since birth” according to Dr. Gordon Woods of the University of Utah, the man who made them what they are today. The clones -- Idaho Gem and his carbon copy, Idaho Star, will race in Winnemucca, Nevada, June 3-4 during time trials for the upcoming summer fair season. Then they move on to the San Joaquin County Fair in Stockton, California, for the start of California fair circuit in late June. In Stockton they will race against each other and other mules, and long asked questions will start to be answered. Both mules were created from fetal skin cells from what would have been a full brother to Taz, the famed racing mule whose battles with Black Ruby are part of California racing lore. A third identical brother in the triplet cloning, Utah Pioneer, will miss the glamour of the track and will be used as a pack mule. The clones were part of Project Idaho, a joint project between the University of Idaho and Utah State University. The mules sire was a Spanish donkey and their dam a quarterhorse. Get ready for horses next. The profs at Idaho and Utah call them “thousand-pound mice, the right model for research.” May 24, 2006 IT AIN’T OVER ‘TIL IT’S OVER And apparently it ain’t over yet at Vernon Downs. A spokesman for the New York Racing and Wagering Board said yesterday that the track’s license application is not complete and will not appear on the agenda of tomorrow’s May board meeting. That presumably means it won’t be acted on until the next regularly scheduled meeting of the Board, which is set for June 22. This is hard to believe, but the two horsemen’s groups at Vernon refuse to consider a merger, which could resolve the problem, and no vote has yet been taken. Joe Faraldo, lawyer for the Harness Horse Association of Central New York, and Ken Jacobs, president of the new Vernon Downs Harness Horse Association, both rejected an idea put forth by Jeff Gural for $1 million to be paid into the Vernon purse account if they DOGS IN DANGER, EAST & WEST Two greyhound tracks, one in Massachusetts and the other in HTA’s home digs of Tucson, are in trouble. Wonderland, a longtime fixture in Revere, a suburb of Boston, is on the brink of closing, according to the Boston Herald. In Tucson, where Tucson Greyhound Park has operated for more than 60 years, a measure given preliminary approval by the Arizona House would end the track’s OTB exclusivity and allow out-of-town tracks to open OTBs here. 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 May 24, 2006 IT AIN’T OVER ‘TIL IT’S OVER 2D INTERNET SHOW IS ONLINE And apparently it ain’t over yet at Vernon Downs. A spokesman for the New York Racing and Wagering Board said yesterday that the track’s license application is not complete and will not appear on the agenda of tomorrow’s May board meeting. That presumably means it won’t be acted on until the next regularly scheduled meeting of the Board, which is set for June 22. This is hard to believe, but the two horsemen’s groups at Vernon refuse to consider a merger, which could resolve the problem, and no vote has yet been taken. Joe Faraldo, lawyer for the Harness Horse Association of Central New York, and Ken Jacobs, president of the new Vernon Downs Harness Horse Association, both rejected an idea put forth by Jeff Gural for $1 million to be paid into the Vernon purse account if they would settle their differences. He said on HTA’s The World in Harness this week that he cannot understand the horsemen’s opposition at Vernon and thinks it reflects the views of a minority of them, but his million dollar offer was turned down, presumably because it reportedly carries 6% interest on the loan. Faraldo said that if slots could raise Vernon purses from $2 million a year to $7 million a year, “Someone has to tell me why I have to borrow a million from him and pay him back interest.” Ken Jacobs, president of the new horsemen’s group, told the Oneida Dispatch, “It’s meaningless as far as I am concerned. If we (the two groups) are not going to come to an agreement, you could put in $50 million, we are not going to race.” He believes that if the Racing and Wagering Board chooses his group, “We get it for nothing. We don’t have to pay any interest and we don’t have to pay it back.” That’s the first thing the two horsemen’s groups ever have agreed on, to our knowledge. Jacobs also issued a threat that he may or may not be able to enforce: “We are either going to win it (board approval) or we’re not racing, period.” The second edition of HTA’s new Internet talk show, The World in Harness, is posted and available at www.harnesstracks.com. This week’s show features interviews on racino plans and operations with Bob Soper of Mohegan Sun at Pocono; Mike Tanner of Harrah’s Chester Casino and Racetrack; Mike Jeannot of The Meadows; Bob Galterio of the new Empire City at Yonkers Raceway; and Jeff Gural of Tioga and Vernon Downs. Future editions of the show will be posted each week on Tuesday afternoons, with the possible exception of next week because of the Memorial Day holiday Monday. If the show is not up Tuesday afternoon, it will be online Wednesday. SIX IN CANADIAN HALL OF FAME Six harness racing greats -- two humans and four horses -- have been elected to the Canadian Horse Racing Hall of Fame. Doug Brown, currently sidelined by injuries suffered in a recent racing accident, and Jacques Hebert, a long time leader of Quebec harness racing, will be joined by the connections of pacers Armbro Emerson, Armbro Feather, As Promised and Run the Table. The six will be honored at ceremonies on August 24. USE IT BEFORE IT RUSTS Florida’s Division of Pari-Mutuel Wagering held its final public hearing on regulation of slots yesterday, and unless they are contested within the next 10 days they will become official and take effect 21 days later. Pompano Park jumped into action, with GM Dick Feinberg saying steel could start going up by the end of next week for its 157,000 square-foot racino. “The stuff has been sitting there since May of last year,” Feinberg said, “and we decided to have a little fun.” He had signs erected that read, “Future Site of the World’s Largest Lego Building,” and “Racino Construction Coming Soon.” 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 May 25, 2006 RACING EXEMPTIONS HOLD REGULATING, NOT BANNING In a major victory for horse racing, the House Judiciary Committee this morning favorably reported, 25-11, the Internet Gambling Prohibition Act, with racing’s exemptions intact. A number of amendments that would have stripped the exemptions from the bill were defeated, as were others adding dog racing, which has no interstate act as does horse racing, and other interests. So account wagering holds, with thanks to the American Horse Council and the National Thoroughbred Racing Association for yeoman service. Full details on the vote and the bill as passed in tomorrow’s Executive Newsletter. Frank Catania is the former director of the New Jersey Division of Gaming Enforcement and a former assistant attorney general and deputy Speaker of the New Jersey General Assembly. In an op-ed letter today in The Hill, a newspaper for and about the U.S. Congress, Catania gives his views on Internet gambling. Here is an excerpt: “To date, the debate has focused on prohibition of Internet gambling, with little consideration of regulation. Short of completely banning the Internet, online gambling will always be available to U.S. players. And as more and more countries move toward regulation -- at last count, more than 70 countries and jurisdictions regulate Internet gambling and Britain is set to pass legislation early in 2007 -- the United States could be the last to cross the finish line, losing out on the economic benefits of a $15 billion industry. I understand that regulation is not simple, but I believe that strict regulation is the only effective means for controlling players and the environment in which they play. Regulation of land-based casinos helps prevent underage gambling and offer a way to guide problem gamblers to seek help. Regulation of Internet gambling could do the same. Furthermore, regulation allows all transactions to be tracked, audited and taxed, relieving concerns over financial impropriety, while adding much needed revenues to our public treasuries. NEW TWIST TO THE WORLD Greatly expanding the interactivity of HTA’s new Internet show, The World in Harness, a section called Yea and Neigh has been added. Listeners will be able to post questions, responses or comments on the site, and selected topics will be chosen for discussion on the show and the callers interviewed. Listeners should send their comments or questions to [email protected]. IS THE WORLD REALLY ROUND? In what a California professor of integrative biology calls “one of the classic mistakes in the history of science,” the idea that the buildup of lactic acid causes fatigue is being challenged. Dr. George A. Brooks says conventional thinking, on lactic acid, dating back to the studies of Nobel laureate Otto Meyerhof in the early 1900s, is wrong. He says lactic acid is a fuel, a source of energy, and that thinking among exercise physiologists is beginning to change. One of them, L. Bruce Gladden of Auburn University, says it is simplistic to say that lactic acid is a bad thing and causes fatigue, or even muscle soreness. The mechanics of that phenomenon, Gladden says, is a mystery that has not been solved. “The bottom line is that an American who logs on to an online horse racing site deserves the same consumer protection as someone who walks up to a window at Belmont Park, and someone who plays online poker should be treated the same as someone who bets on horse racing over the Internet. It’s time Congress developed a consistent and sensible policy for Internet gambling.” Whether that view can be sold to Congress remains to be seen. 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 May 26, 2006 JUDICIARY SPEAKS, LOUDLY FORD GUILTY OF SLANDER Efforts to delete horse racing’s exemption from the Goodlatte bill were beaten back yesterday in the House Judiciary Committee, and Judiciary approved the legislation by a 25-11 vote. A proposed amendment by Rep. Robert Wexler, Democrat of Florida, to include an exemption for dog tracks and jai alai was defeated 21-15. Neither sport has any legislation comparable to the Interstate Horse Racing Act to support exemption. A Wexler attempt to strip horse racing from the Goodlatte bill was defeated by a voice vote. An attempt by Rep. Bobby Scott, Democrat of Virginia, to provide for fines and imprisonment for those illegally gambling online was defeated 306, with Goodlatte saying, “We do not get involved in what has always historically been the province of the state.” The bill now goes to conference for reconciliation with the Leach bill, passed by the House Financial Services Committee on March 15, also with racing’s exemptions intact. Reconciliation may not be easy, since Leach and Goodlatte have not been working together on the issues, and reportedly have had little communication. When and if the full House will consider the measures also is problematic, and the Senate has not taken any action on Internet gambling. Rep. Goodlatte made changes himself, to ease concerns of the Department of Justice Department and some members of the Judiciary Committee. He moved the horse racing provision to its own section and added a section clarifying that the bill was not intended to change the relationship between the Interstate Horseracing Act and other statutes, including the Wire Act. With those changes, Justice supported the racing provision. Attorneys and others familiar with simulcasting, interstate account wagering, the Interstate Horseracing Act and the Wire Act, vetted the Goodlatte bill as passed and feel confident racing can continue on its present course under it. Harness trainer and United States Trotting Association director Mark Ford was found liable for slander in a jury trial in Harrisburg, PA, this week. The suit was brought by Dean Hoffman, USTA’s Director of Strategic Planning, and the jury voted 11-1 for Hoffman, with an award of $15,000 in compensatory damages and $75,000 in punitive damages. Witnesses testified that Ford made scurrilous remarks about Hoffman at the Standardbred Horse Sale in Harrisburg. Ford can appeal. NOVELTY ON BOTH COASTS Unique happenings in harness racing east and west. At the Meadowlands, where Mondays are dark for harness, thoroughbreds will take over in cards of turf only racing on three Mondays in June. First post for the programs of June 5, 12 and 19 will be 1:10 p.m. Admission will be free. This coming Sunday The Big M will offer a special morning attraction in one of Europe’s greatest trotting races, the Elitlopp from Solvalla in Stockholm, Sweden. At Sacramento Harness Association on the west coast, the California Harness Horsemen’s Assn. is opening its doors to harness horsemen from Wisconsin, Iowa and Minnesota in a Diamond Harness Alliance. Under the agreement, horses from those states will be eligible to race in special California-sired events currently closed to non-California sired horses. The races will be in a series leading to $25,000 finals for 3-year-olds. MAL BURROUGHS LOSES SON HTA extends its deepest sympathy to 1997 Hambletonian winner Mal Burroughs, whose son, Gary Joseph Burroughs, died last week in Morristown, NJ, at the age of 44. 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 ILLINOIS RACING GETS HELP There was good news for horse racing in Illinois over the holiday weekend. Gov. Rod Blagojevich on Friday signed an amendment to the Illinois Horse Racing Act of 1975, requiring the four largest riverboat casinos in the state to pay 3% of their adjusted gross receipts into a trust fund for racing. The legislation is expected to provide racing with $37.5 million for purses and track improvements, but it carries a sunset clause that limits its present life to two years and will require extension at that time to remain in effect. Sixty percent of the money will go to racing, with thoroughbred racing getting 57% of that 60% and harness racing receiving 43%. It is estimated that $9.7 million will be available for harness purses and $5.1 million for track improvements. The arrangement was negotiated and approved by the legislature to replace an earlier commitment to support racing with proceeds from the ill-fated Emerald casino in Chicago’s western suburb of Rosemont, adjacent to O’Hare International Airport. That project disappeared in a welter of lawsuits, and Rosemont recently gave up on the idea and turned to other activities. Gov. Blagojevich, in signing the new law, said it “will help protect the jobs of thousands of hardworking people who depend on the horse racing industry for their livelihood and will create a more level playing field that will allow the horse racing industry to remain competitive in Illinois.” The governor also gave the press and politicians in Illinois a tantalizing tidbit to think about, suggesting the possibility of selling the Illinois State Lottery to private operators to help fund school problems in Illinois. DIME SUPER OK IN NJ Acting governor Joseph Roberts has signed New Jersey legislation lowering wagering minimums to 10 cents, and VP Chris McErlean says the Meadowlands and Monmouth may implement them. May 30, 2006 The legislation, which Roberts signed while Gov. Jon Corzine is on a tour of East Asia and former state senate president and governor Richard Codey was out of state, also allows for future wagers on the Hambletonian and Haskell at Monmouth Park; divides uncashed ticket revenue 50-50 between tracks and horsemen’s purse accounts; permits simulcast wagering on races that start after tracks and simulcast parlors have closed; and permits paying bettors who have lost winning tickets, providing they can prove through account wagering or player-tracking systems that they made the wager. NO SPECIFICS, AND NO VERNON Another racing season is slipping away, but the New York Racing and Wagering Board seems in no hurry to license Vernon Downs and allow hundreds of horsemen to make a living at the track. Board spokesman Dan Toomey revealed shortly before the meeting that the Vernon application was pulled from the agenda. Following the meeting, he said, “I can’t really get into specifics other than to say that the Vernon Downs application was not complete and was not ready for board action and isn’t ready for board action for this month.” The next board meeting is scheduled for June 22, and no special meeting has been announced. The board also has not moved to conduct a vote to determine which of the two competing horsemen’s groups -- the old Harness Horsemen’s Association of Central New York or the new Vernon Downs Harness Horse Association -- would represent Vernon. That election presumably could be held at any time. A furious Jeff Gural bitterly accused the HHACNY of preventing Vernon Downs from getting back to racing as early as last year. HHACNY’s lawyer, Joe Faraldo, brushed that off, saying Gural did not own the track last year. Whoever is helping kill racing at Vernon Downs is doing a good job of it. 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 May 31, 2006 SURPRISE! SUBSIDY IS FOUGHT TWO STRIKES ON CINCINNATI Well, not really a surprise. The riverboat casinos in northern Illinois -- those doing over $200 million a year in business -- are not happy about the latest changes in the state’s Horse Racing Equity Trust Fund. Those changes require that the four casinos meeting that betting standard must pay 3% of their adjusted gross receipts to keep Illinois tracks on a level playing field. Indiana has similar legislation, but the Empress Casino and Harrah’s Joliet Casino and Hotel have filed suit claiming the new law is unconstitutional. It would cost the four riverboat casinos an estimated $36 million to $37.5 million a year. It didn’t take long for the casinos to sue, just four days after passage of the measure. The blurring of the line between casinos and racing, and the conflicts that presents, make an interesting scenario in Illinois. Penn National Gaming, which owns the Empress and thus is party to the suit, is of course a major racetrack operator as well, with racinos in West Virginia and Maine. Penn National’s spokesman, Eric Schippers, said the legislative history of the tax “clearly reflects that votes were to be garnered (for the new legislation) by excluding the five other casinos” in Illinois. He says when they were included earlier, the vote failed. A similar subsidy in 1999, involving the Emerald Casino that was to have been built in Rosemont, never materialized when the casino died in a legal firestorm. The casinos now contend the new law violates the Takings Clause of the Illinois Constitution by compelling the casinos to subsidize a less successful competitor’s operations; that assessing only four of the state’s nine riverboats violates the Uniformity Clause of the constitution that covers equal protection rights; and that it amounts to special legislation. A spokeswoman for the governor said, “We feel that the revenue sharing law is legal,” and is critical to racing, which employs 40,000 people in Illinois. Cincinnati’s bid to be included in potential slots legislation in Ohio was only one strike away from being called out today, after it was rejected for the second time in two weeks by the Ohio Attorney General’s office. Banker Louis Beck’s petition to have a summary of proposed ballot language approved failed when it fell 83 valid signatures short of the required 1,000 valid signatures, even though but said 1,900 were collected. Its earlier attempt was 107 short. A spokesman for Beck’s Queen City group immediately called the signature gathering foul, saying the company doing the collection -- National Voter Outreach of Ludington, Michigan -- may have sabotaged the signature effort because it might be working for the competing Ohio Learn and Earn Committee. A National Voter Outreach spokesman denied that, but said he did not know if the company was talking with Learn and Earn. Beck’s group will try for a hit on a third pitch, with its own volunteers gathering the petition signatures. STEVE, THERE ARE TROTTERS The National Council of Legislators from Gaming States meets in Boston this weekend, to discuss “Regulating Racing: What is the Ideal Model?” The Council and its founder and only president, Florida senator Steve Geller, will hear the views of thoroughbred racing, the University of Arizona’s Race Track Industry Program, the National HBPA, greyhound racing, and the Association of Racing Commissioners, but no one from harness racing. Look up, Steve. That big building a few miles north of your office, where a lot of your constituents go, is Pompano Park. They might have some ideas. HTA’S THIRD SHOW ONLINE The third edition of The World in Harness is online. Dr. Rick Arthur, Lester McKeever, Mike Ezzo and Judy Davis-Wilson are this week’s guest interviews. 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 June 1, 2006 EXTENSIONS EVERYWHERE MOHEGAN CANCELS JOB FAIR Delays and extensions all over the place. At Vernon Downs, Jeff Gural sent a letter to horsemen telling them that code requirements and improvements of the plant, including a new wiring system for United Tote and flat screen TVs, a new roof for the grandstand, and removal of asbestos would require further delay in reopening the track once the New York Racing and Wagering Board issues a license. Gural says that “rather than gamble with the work half done it seems prudent to delay the opening of racing until Thursday evening, August 3.” He feels confident Vernon can meet that deadline, and to ameliorate the loss to horsemen he has decided to race four days a week, rather than three, at Tioga Downs. Tioga will operate Friday, Saturday and Monday evenings and Sunday afternoons. Mohegan Sun at Pocono Downs has cancelled an upcoming series of job fairs for local residents, apparently part of Mohegan’s rethinking its plans for the track until local slot tax rates are clarified. Mohegan planned to fill 400 to 500 jobs after interviews in Wilkes-Barre and Scranton, but cancelled them until it hears from the Department of Revenue. Pocono president and CEO Bob Soper says the company “does not think it’s appropriate to move forward with career fairs unless and until the issue is resolved.” Mohegan understood there would be a tax rate of 55% and nothing more, and Soper says if the issue is not resolved “in a manner consistent with what he believe the law states...we’ll be forced to reevaluate our situation and reconsider our plans to operate a slot facility here.” Mohegan’s October, 2004, purchase agreement with Penn National, former owner of the track, called for $280 million in payment, but can require Penn National to repurchase the track if certain events take place, or fail to take place. A failure of Pennsylvania to issue a slots license by July 1 is one of those conditions. INCLUDING NOEL DALEY In New Jersey, the suspension of trainer Noel Daley has been extended until July 7 as a result of a 270-day suspension for possession of drugs and drug instruments at his training quarters in March of 2005. Daley negotiated a settlement agreement with the New Jersey Racing Commission under which that penalty ran concurrently with the 180-day suspension he received for a postrace high carbon dioxide reading, which ended April 8. Daley also was fined $20,000 and agreed to reimburse the Racing Commission an additional $20,000 for associated investigative and laboratory costs. During the period of suspension, Daley is denied access to all grounds under the jurisdiction of the Racing Commission. BOYD BUYS DANIA JAI ALAI Boyd Gaming of Las Vegas is buying the Dania Beach Jai Alai fronton for $152 million and plans to build a restaurant and gaming facility with 1,500 slots. BUT ITS YOUTH CAMP OKAY The Harness Racing Youth League Camps, started originally by HTA with the Harness Horse Youth Foundation after owner-trainer-driver Mal Burroughs suggested the idea, have stopped off at Pocono since their inception. The track is now accepting applications for this year’s camp, in which boys and girls ages 11 thru 13 learn how to care for and drive harness horses. The “horses” in the camps are miniature trotting-bred ponies. Each applicant must write an essay of no more than 250 words that answers the question, “The Wind in My Helmet: Why I Want to Feel the Thrill of Driving a Horse.” Pocono will narrow the field of entries to 12 to enroll and compete in its Fair. 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 OH NO! NOW IT’S MONTREAL After watching the agonies of Vernon Downs for more than a year, with bickering between horsemen and interminable investigations but no action by the New York Racing and Wagering Board, we thought we had all we could digest. Now comes more, this time in Montreal, where SONACC, the provincial horse racing agency, and Attractions Hippiques, the new company formed by powerful politican and successful businessman Paul Massicotte, are apparently at sword’s point in disagreement. Attractions Hippique issued a press release yesterday contending that what is on the table is what was agreed to by SONACC, LotoQuebec and itself in December. SONACC was expected to respond with its own press release today. BIG DAY AT ROCK, HAWTHORNE Rockingham Park celebrates its 100th anniversary tomorrow -- a few weeks early of its actual June 28, 1906, debut -- but with the $120,000 New Hampshire Sweepstakes, featuring a meeting between new world recordholder Primetime Bobcat and Dan Patch winner Hop Sing. At Hawthorne in Chicago, a second annual Night of Champions, with a card of seven races worth right at $50,000, the cast including Loyal Opposition and the red hot 3-yearold Hot N’Sporty. PITTSBURGH WINNER: NO ONE A news release yesterday announced that the Pittsburgh Gaming Task Force would release a report today on the city’s three slots applicants, and forward it to the Pennsylvania Gaming Control Board. Today the report was issued and -- perhaps taking a cue from New York -- the Task Force called all three proposals “incomplete,” saying they were inadequate in key areas such as casino design and mitigating potential traffic and social problems caused by gambling. June 2, 2006 “In light of these factors,” the report said, “the Pittsburgh Gaming Task Force would abrogate its responsibility to the city and the region if it were to recommend a candidate at this time.” The three candidates still in the running are: Cleveland’s Forest City Enterprises and Harrah’s Entertainment. The Pittsburgh Penguins, Nationwide Realty Investors of Columbus, Ohio, and Isle of Capri Casinos. Detroit businessman Don Barden and his associates. The Task Force called the proposals submitted by all three in a five-hour closed session May 25, nothing more than “best case scenarios,” and told the three to provide written guarantees -- with bonds to back them up -- as assurances that they would follow through with what they were proposing to build or provide for the community. The Task Force did rate Isle of Capri as best in terms of site, traffic and commitment, with its pledge to provide $290 million to replace the Mellon Arena, the Penguins’ home and the oldest facility in the National Hockey League. The Task Force said, “As appointed watchdogs to the community, we have to question how much the gaming license is worth -- obviously a great deal -- and if the other two operators are willing to match this commitment. And if not, why?” Even though it rated Isle of Capri the best proposal, it raised concerns that it was too close to Duquesne University. The Task Force was concerned about temporary facilities, saying it wanted to avoid “a cheap ‘Butler’ building, a pre-fab, big box metal structure sans details, which falls well below the standard we expect in a permanent facility.” So where does that leave Pittsburgh slots? You got it right. Nowhere. 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 June 5, 2006 THE SHADOW OF ABRAMOFF VERNON GETS ITS LICENSE Disgraced lobbyist Jack Abramoff is showing up everywhere, and made an appearance in absentia last Thursday in the battle between two Democratic aspirants for governor of Maryland. One of them, Montgomery county executive Douglas M. Duncan, made it clear that if he is nominated and elected there will be no slot machines at tracks in Maryland. “If I’m elected governor, the debate over slot machines and casino gambling ends the day I enter office,” he told an audience in Silver Spring. As he spoke near a downtown shopping center, a supporter of his opponent in the Democratic primary, Martin O’Malley, showed up on a restaurant terrace above him holding a cardboard cutout of Abramoff, glaring down with his fedora and trench coat and holding a sign that read, “I (heart) Duncan and Gambling.” O’Malley has said his position is clear: he supports a limited number of slots at tracks to save horse racing jobs and make Maryland racing competitive again with surrounding states. With conditions. The New York Racing and Wagering Board issued a conditional license to Nevada Gold/Vernon Downs today, and recognized the incumbent Harness Horse Association of Central New York as the official horsemen’s association for 2006. The conditions call for demonstration that all facility construction has been completed in accordance with Board specifications; that no change in management or beneficial interest or debt or equity has been made; that all employees are properly licensed; that security and vendors’ plans are submitted; and justification as to why the number of race dates requested does not appear to satisfy the minimum number required by the racing law. On the issue of horsemen’s representations, the Board said the new Vernon Downs Horsemen’s Association was unable to prove that it represented a majority of horsemen who will race at Vernon this year. It can reapply, however, and if it can prove it represents 51% of qualified horsemen the Board could still recognize it as the qualified group. MAY NOT MERRY FOR MARK The month just ended was not a good one for trainer Mark Ford. A jury found against him in a slander trial brought by Dean Hoffman of the USTA, awarding Hoffman $95,000 in punitive and compensatory damages. The Pennsylvania Harness Racing Commission fined him $8,000 and suspended him for 10 days for altering a Coggins test certificate on the pacer Daylon Trooper at Mohegan Sun at Pocono Downs. An appeal is likely. NOR FOR SEN. VOINOVICH After hearing a passionate anti-gambling plea from U.S. Senator and former Ohio governor George Voinovich, a group of Cleveland business leaders, voted overwhelmingly to support a bid for slots at tracks in Ohio. DON’T BOTHER CLONING..YET There was no reason to think they would win, but the cloned mule brothers, Idaho Gem and Idaho Star, might have been expected to heat in their racing debut. Winnemucca, Nevada, went wild -a thousand turned out to see the identical brothers -- and the clones did win their qualifying heats, but Gem fell two and a half lengths short of the winner of the final, and his clone finished seventh in the eight-mule field. Gordon Woods, the University of Idaho scientist who created them, said the most important race lay ahead: finding cures for human health, including cancer research. The national president of the Humane Society, Wayne Pacelle, was not happy about cloning, however. He said, “There’s no legitimate purpose for this exercise.” 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 June 6, 2006 THE SUN ALSO RISES..UP ONLY HIS BARBER KNOWS Mohegan Sun at Pocono Downs, HTA’s member track in northeast Pennsylvania, has risen up and is fighting back at proposed increases in local tax levels. Bob Soper, Mohegan’s top man at Pocono, went to the state capital at Harrisburg yesterday and spoke to state legislators, telling them what Mohegan will and will not do on the local tax issue. Soper, an attorney, told the lawmakers that host municipalities are entitled, under Pennsylvania’s slots law, to 2% of gross slot machine gaming revenue, up to a number that is 50% of their 2003-04 budgets, with a maximum of $10 million. He said Mohegan Sun believes the gaming statute “is very clear and consistent with Mohegan’s interpretation, and Pocono was prepared to honor that provision in the law. In its case that would amount to $2.2 million for host Plains Township. Jane Earil, a state senator from Erie in far northwestern Pennsylvania, differs with that view, contending that the intent of the law is to collect $10 million a year, regardless of local budget, with any excess beyond 50% of the 2003-4 figure going to the host county. Soper has said, and repeated, that if that tax structure were to prevail, Mohegan Sun might abandon it’s project at Pocono Downs. After his Harrisburg visit, Soper said, “We’re optimistic that we’ll be able to resolve the issue, but there’s still a ways to go.” The Pennsylvania Department of Revenue is to issue final regulations on tax revenue policies by July 1, but Senator Earil says she will introduce legislation that would impose the $10 million guarantee, and thinks she has enough votes to pass it. You may remember the old Clairol commercial that said, “Only her hairdresser knows for sure,”referring to the model’s blonde hair. We have a hunch that only Bill Nader’s barber knows for sure about Bill’s ink black hair, and why it isn’t gray. Bill, one of the most able management men in racing in his role as senior vice president of the New York Racing Association, has had enough grief in the last two or three years to turn hard coal gray, but his hair still is black. Yesterday another blow, when an arbitrator ruled against NYRA and for 89 pari-mutuel clerks it fired for absence or suspended for lateness, for their conduct on Preakness Day last year. The arbitrator ruled that the clerks who were fired should be reinstated with retroactive pay, and those suspended for a week should get a week’s pay. It is estimated the decision will cost NYRA more than $2 million, but president Charles Hayward was reported to have said NYRA would abide by the arbitrator’s decision and not appeal. PLAY AT YOUR OWN RISK If you live in the state of Washington, or plan to visit, be careful. As of tomorrow, playing poker online in Washington is a class C felony, and you may not get out of Washington for five years, after paying up to $10,000. VERNON OK..WELL, NOT QUITE Vernon Downs got a temporary, conditional license to race and simulcast yesterday, but the announcement was no sooner made than the president of the losing horsemen’s association said he doubted that would happen anytime soon. Ken Jacob, president of the Vernon Downs Harness Horse Association, said, “If everything went smooth there will be 90 days before racing could start, and I don’t think it’s going to go smooth.” He said the new group might sue the New York Racing and Wagering Board. This nonsense has gone far enough. If Jacobs has enough horsemen willing to sign on to give his group 51%, his group should be licensed. If he doesn’t, he should accept that fact and help get Vernon racing. This is not rocket science. Counting is not that difficult, and the board knows how to count. This is black or white, not gray. 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 June 7, 2006 RUCKER LOSES BIG M APPEAL VERNON...MAYBE NEXT YEAR Trainer Ken Rucker may race his horses in Illinois or somewhere this year, but it won’t be at the Meadowlands. A decision in the Superior Court of New Jersey’s Appellate Division made that clear yesterday, when Judge Joseph Yannotti issued a denial of Rucker’s application for a stay of his ejection. The Meadowlands, in its brief to the court, noted that horses trained by Rucker had tested positive numerous times during the last 20 years, and on no less than 10 occasions in different states in the last year, including violations at Rockingham Park in New Hampshire and Balmoral Park in Crete, Illinois. Between Nov. 5 and 13 last year, six horses trained by Rucker tested positive for indomethacin at Balmoral, following two positives for that pain killer in September at Balmoral. Rucker had signed an agreement with the Meadowlands that if further positive tests were found on his horses, he would leave, and entries would not be accepted. On April 30 of this year, a pacer named Highland Pride A, which had been winless in 23 starts last year but had won 9 of 17 races this year, won at the Meadowlands and tested positive for elevated titers of anti-recombinant human EPO, or Epogen. The court found the Meadowlands’ agreement valid and enforceable, and denied Rucker’s appeal. Chris McErlean, the Meadowlands’ vice president of racing operations, expressed his pleasure at the outcome. “We are grateful that the Appellate Court ruled in our favor,” he said. “While Mr. Rucker is afforded additional avenues in order to pursue a stay, it will now be a longer process. As we indicated before, we feel we have a valid agreement in place and will continue to defend that position.” Since the Meadowlands’ action was a track ruling and not a New Jersey commission action, Illinois, where Rucker is based, could not use reciprocity. He has a hearing coming up there. If Vernon Downs horsemen put their own pride and inability to compromise ahead of making a living, so be it. They can train for another year, but not likely for free at Vernon Downs, and race their 2-year-olds as 3-year-olds and their 3-yearolds as older horses. Jeff Gural, commenting on the New York Racing and Wagering Board’s decision to grant Vernon’s new ownership a temporary racing and simulcasting license, told the Oneida Dispatch, “I’m extremely pleased that they gave us a temporary license so that we can move forward with the VLTs. I’m extremely disappointed that they found that the existing horsemen’s association should remain in place, which I found to be a bizarre decision because I don’t think they represent 51% of the horsemen.” Neither does the new Vernon Downs Harness Horse Association, which now threatens to sue the commission, claiming the majority of horsemen who will be racing at Vernon belong to its group. No formal election apparently was held, the board relying on “documentation proving that its group represents 51% of qualified horsemen.” Board spokesman Dan Toomey said the new group “failed to prove their challenge, as they were unable to show that they represented 51% of the track’s horsemen,” but their challenge was denied without prejudice, meaning they are free to challenge again. Toomey did not say if the old Harness Horse Association of Central New York had proved it represents 51% of horsemen, or if the Board acted on other considerations. Board chairwoman Cheryl Buley told HTA’s The World in Harness prior to the announcement of the Board’s decision that the Board was concerned that there might not be enough horses to conduct a competitive meeting if one group were chosen over another. Gural said he now does not know when Vernon Downs may reopen, and said it is possible that it will not open this year. 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 June 8, 2006 ISOBA LOSES OFFICE TO FIRE COUNT YOUR BLESSINGS A fire of unknown origin destroyed the office of the Illinois Standardbred Owners and Breeders Association yesterday, and the group’s executive secretary, trainer and USTA director John Cisna says the entire building and all of its contents are a complete loss. The office was located on the Illinois State Fairgrounds in Springfield, and a temporary office has been opened on the backstretch of the big mile Grand Circuit track. You think you have problems? After fighting off court challenges that ended on Tuesday of this week when the Minnesota Court of Appeals rejected opponents’ claims that the Minnesota Racing Commission had improperly approved a new harness track in Anoka county, Minnesota, north of Minneapolis, the developers have encountered another challenge. This one is several thousand years old. Early excavation work for the track turned up the remains of a prehistoric Indian village, and the site now has become an archaeological work station. The dig at present consists of unearthing some 50 plots of a square meter each, about half a meter deep, looking for shards of pottery and seeds and fish bones and other artifacts that may reveal how ancient Indians lived. Minnesota has no laws requiring preservation of such sites, but the Army Corps of Engineers, examining the wetlands where the track is being built, forwarded its permits for review by the State Historic Preservation Office as part of the federal Historic Preservation Act. An official there remembered remains of an old Indian village nearby, and recommended a survey. A track spokeman told the Pioneer Press.”It isn’t much of a story. It was a disposal area...It’s just some remnants of cooking ware that were left there.” Maybe. Prehistoric houses take precedence over 2-minute horses, and if the diggers find one, or a village, post time could be seriously delayed. THE COUNT IS 0 AND 2 IN CINCY With two strikes on the scoreboard, Queen City Gaming is taking another swing at getting approval to circulate statewide petitions to legalize slots in Cincinnati and other Ohio locations, including tracks. Cincinnati was left out in the proposal already filed by Live and Earn, a Cleveland-based group, and the Queen City backers, whose petitions fell short in two previous attempts, expect to get approval on this swing. JAKE HOWARD DIES AT 81 J.F. (Jake) Howard, chairman of what is now Woodbine Entertainment when it was the Ontario Jockey Club, has died at 81 of cancer. Howard, a thoroughbred owner and breeder, was chairman of the OJC from 1999 to 2001 and honorary chairman since that time of the OJC and its successor WEG. An affable horseman who accepted the standardbreds with understanding, appreciation and interest, Howard was a close personal friend of WEG president and CEO David Willmot. TWO APPEALS IN PA Trainer Mark Ford has appealed his 10-day suspension and $8,000 fine for allegedly altering Coggins certificates at Pocono Downs. Trainerdriver George Napolitano, Jr., hit with $4,500 in fines and three consecutive 90day suspensions for positive tests at Pocono, also has appealed. A FRANK ASSESSMENT U.S. Congressman Barney Frank is no stranger to controversy, and speaks his mind plainly. When a reporter for PocketFives.com asked him about Internet legislation proposed by Rep. Bob Goodlatte and Senator Jon Kyl, Frank called it “a great infringement on liberty.” He said, “I am skeptical of people who want to protect people from themselves.” 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 June 9, 2006 HORSEMEN GO OFFSHORE TIOGA DOWNS OPENS TONIGHT Bloodhorse.com reports today that an organization calling itself The International Horsemen’s Wagering Assurance Group, formed by former National HBPA president John Roark and former Minnesota HBPA president Tom Metzen and his son Tom Jr., has officially opened an offshore betting operation with Las Vegas Dissemination acting as its hub and a call center in Curacao. Metzen Jr. was quoted saying wagering through the system would begin when it has more contracts signed with racetracks for product. “Technically,” he said, “we’re operational right now. We’re in the process of accumulating signal contracts. We want to offer a full plate of content before we start. We’re receiving contracts from racetracks on a daily basis.” The group has not announced as yet whether it will offer rebates to high-volume players. The idea, Metzen Jr. told Blood-Horse writer Tom LaMarra, is to operate “on a razor-thin margin and turn funds over to the industry, but we’re going to make a buck, because there are a lot of expenses invested in this project. But the lion’s share of takeout should go to the source,” which he identified as horsemen, jockeys and racetracks. Although the national HBPA supports the project, according to Metzen, an official endorsement of the new SPMO is not expected before next month’s summer convention in Minnesota. Metzen also told LaMarra that IHWAG also is talking with representatives of legal offshore bookmaking operations to bring handle into U.S. pools, and said, “From all indications, the bookmakers seem willing to do it.” LaMarra reported that IHWAG has hired a private investigation firm to check out the background of customers, and has no exclusive contracts, so that “one company may provide the phonewagering component and another the soon-to-be-introduced Internet component.” Harness racing’s newest track -- Tioga Downs -opens tonight, to rave reviews of its innovative design and racing surface, but without slots for the moment. Principal Jeff Gural and his associates have poured money into the project, determined to make it a first class facility, but admittedly face the problem of whether the population base available can support the track. “We are gambling that we can get people to come to the track,” Gural told Dave Little of the New York Daily News,” No one has been able to do it, so we are in uncharted waters.” When 750 VLTs are licensed and operational -- Gural hopes by June 28 -- the population issue will be determined. Prairie Meadows in Altoona, Iowa, close to Des Moines, faced a similar problem when it opened as a racetrack alone in 1989, but when slots were introduced five years later it became an instant success, drawing from far beyond Des Moines with its 400,000 population at the time. An ambitious purse schedule has been announced at Tioga, and the frustrations of licensing have been wearing on Gural. One of New York City’s most successful real estate operators, he told Little, “This is the hardest thing I’ve ever tackled. There are a lot of regulations and state agencies to deal with. There hasn’t been a new track licensed in New York in 30 or 40 years, so there is no standard way to do it.” Horsemen have praised the track and the plant, and Meadowlands’ regulars Mike Lachance, Cat Manzi, David Miller, Ron Pierce and Jeff Gregory have told Gural they will be up Sunday to help give Tioga a major league start. Sunday’s feature will be a $63,000 Inaugural Trot for mares. In other action this weekend, Northfield Park presents the Battle of Lake Erie for 3-year-old pacers, Mohegan Sun at Pocono has the sport’s best 3year-old pacing fillies in Jim Lynch eliminations, and Woodbine has three elimination fields of North America Cup hopefuls. 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 June 12, 2006 QUEBEC DISCORD CONTINUES WHEN WAS THE LAST TIME? The dispute over privatization of harness racing in Quebec continues, and according to Paul Delean of Montreal’s Gazette, has worsened. Under a headline reading, “Quebec introduces law to rein in its horse-racing agency,” Delean wrote in Saturday’s edition, “The Quebec government took a first step yesterday toward reining in its defiant horse-racing agency, introducing legislation that would allow it to replace the board of directors and dissolve the agency at its discretion.” Delean’s story said the law could be passed as early as the end of the parliamentary session this week, or it could be deferred until fall. SONACC, which runs racing in Quebec, has refused to sign an agreement in principle that was reached last December by the government and Senator Paul Massicotte’s Attractions Hippiques to take over the province’s four tracks, build a new Hippodrome de Montreal, and refurbish tracks in Quebec City, Trois Rivieres and Aylmer. Quebec’s finance minister, Michel Audet, warned SONACC to “respect its word” and approve the deal or risk government intervention. That intervention would take the form of having the finance minister name all five members of the board on an interim basis to allow transition to private operation by Attractions Hippiques. In his strongly worded warning, Audet said, “Our government intends to focus on essential missions, and managing horse races isn’t on that list. Even if SONACC signs the agreement, the government intends to establish a separate racing body that will assume those responsibilities not transferred to the private operator, according to Delean. SONACC responded to the Audet warning with a letter on its Web site, saying it would call for a parliamentary commission to take up the agreement issue if the government continued to use “threats.” What seemed like a bright future has become a cloudy sky in Quebec. When was the last time you saw a packed, full grandstand at a pari-mutuel track? When was the last time you heard the public telling newspapermen how great the facility was, how proud they were to have it close at hand in their area, how they planned to come back and come back even more after it gets slots, hopefully later this month? When was the last time you heard drivers almost unanimously calling the facility one of the best they’ve ever visited, and the racing surface itself one of the best in the sport? All of that happened as Tioga Downs opened last Friday, and according to reports drew 6,000 that night and 15,000 for its first three racing programs. There were skeptics everywhere when Jeff Gural first announced his plans to rebuild failed Tioga Park into Tioga Downs, out in the boonies with Binghamton, population 47,380, the biggest town, 30 miles away. The track sits off a busy major New York highway, however, and last Friday the track’s parking lot overflowed with cars, some parking on access roads. Handle alone cannot sustain a purse schedule that features $6,000 overnights and a $63,000 trotting feature on Sunday, with drivers Ron Pierce, Mike Lachance, Cat Manzi and David Miller on hand, but slots can. Gural’s idea of a Tioga-Vernon Downs circuit may prove viable, if New York horsemen realize they are gambling with their future and stop fighting among themselves. They have a horseman running things now, and no other salvation in sight. Gural wrote another letter to the horsemen last week before Tioga opened, saying, “For those of you who have supported Mr. Faraldo and Mr. Papa (president of the Harness Horse Association of Central New York), you might be more comfortable going to Monticello to see the kind of program they are advocating.” Tioga’s pretty new plant is not likely to help things at Monticello. 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 June 13, 2006 RUCKER LOSES APPEAL IN NJ TIOGA’S GETS FULL DATES OK In a resounding victory for the Meadowlands, the New Jersey Supreme Court yesterday denied trainer Ken Rucker’s request for a stay pending appeal of the track’s refusal to accept his entries. The action followed by a week a denial issued by New Jersey’s Appellate Division. Both denials in effect validated the agreement the Meadowlands required of Rucker when granting him stalls, which said that if any of Rucker’s horses tested positive the track could refuse his entries. The agreement also provided that Rucker has the option to submit a request to the Meadowlands to transfer horses he owns to other trainers, subject to the Meadowlands consideration and approval. Apparently impressed by the turnout for the first weekend of racing at Tioga Downs, and the facility itself, the New York Racing and Wagering Board yesterday approved the remainder of Tioga Downs’ dates, clearing the way for the track to operate its full 46 days thru Sept. 15. As expected, per capita betting was low with newcomers and sightseers on hand, but the turnout of more than 15,000 for the first three days indicated the regional population turned out with interest to see the only facility of its kind in their area. Opening night saw 6,127 on hand, 5,341 turned out Saturday night, and another 4,513 showed up for Sunday afternoon’s program. Handle from all sources averaged $132,984, with Friday producing $111,633, Saturday $151,751 and Sunday $135,569. Long lines at mutuel and food facilities were the only complaint heard -both correctible -- and fan response as reported in local area newspapers was overwhelmingly favorable. QUEBEC DROPS THE HAMMER They weren’t bluffing. The government of Quebec, using closure, passed a law at 2:30 a.m. this morning in the waning hours of the current parliamentary session, giving the provincial government the right to replace the board of SONACC and dissolve the racing group at its discretion. SONACC, which has operated HTA member Hippodrome de Montreal and Quebec’s three other tracks, had refused to sign an agreement, reached last December, for the privatization of Hippodrome de Montreal and the harness tracks in Quebec City, Aylmer and Trois Rivieres. SONACC claims the deal had been altered. The new owner of the province’s tracks, Paul Massicotte, along with Quebec’s finance minister Michel Audet and the head of the independent selection committee that chose Massicotte, Luc Chabot, all denied that, saying that the agreement is fundamentally unchanged and that only a few details beneficial to the racing indus- t r y had been made. SONACC told the government to desist from making threats, but Liberals in the parliament invoked closure to pass the bill early this morning. DIME GOES FAR AT HAWTHORNE If you only have a dime to spend, HTA member Hawthorne Race Course is the place for you. A single dime winning Superfecta last week paid $11,731.41, with the four winners in the 4-6-9-1 combination scoring at 5-1, 19-1, 19-1 and 17-1. This week Hawthorne presents its first ever Grand Circuit racing, starting with two World Series events for 2-year-olds tomorrow. MAN BITES DOG AT PLAINRIDGE Racing writers normally report news at tracks, not make it. But Saturday afternoon at HTA member Plainridge Racecourse, Bob Lieberman, former president of the New England chapter of the U.S. Harness Writers Association, lit up the tote board in a race for amateur drivers, guiding Fritz to victory with a $2 win payoff of $101.80. 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 June 14, 2006 ZWEIG TO TIOGA DOWNS ANTIGUA WON’T GO AWAY The Harness Horse Breeders of New York State have moved the Zweig Memorial, named for the late New York veterinarian and political shaker Harry M. Zweig, from the Syracuse mile track to Tioga Downs. Dr. Zweig, a very active USTA director 30 years ago, was instrumental in getting the New York Sire Stakes funded and established. The date of the open and filly division of the stake for 3-year-old trotters remains as originally scheduled, August 12, and will be raced over Tioga’s fast five-eighths mile track on an afternoon card. The United States has taken the policy of ignoring the Caribbean island state of Antigua and Barbuda, and the World Trade Organization as well, but Antigua and Barbuda is not about to disappear. It now has taken a first step toward a World Trade Organization compliance directive by requesting consultations with Washington. If no solution is reached within 15 days, a WTO panel would report on U.S. compliance within 90 days. That decision could be appealed by either side. Antigua and Barbuda claims the Wire Act, the Travel Act and the Illegal Gaming Business Act -- which the U.S. relies on in its contention that Internet gambling is illegal -- should be amended to bring the U.S. into conformity with WTO rules. It also says that since the Interstate Horseracing Act allows remote gambling on horse races while banning remote gambling services from overseas suppliers, it is discriminatory. If Antigua and Barbuda were to win in the WTO, its recourse would be to ask the WTO for permission to retaliate for unfair business practices. Just how a country of 68,000 might do that against the U.S. is unanswered, and even Antigua and Barbuda’s legal adviser, American lawyer Mark Mendel, admits the problem. “Obviously,” he says, “we’re going to have to be a bit creative in order to come up with something to motivate the Americans.” YOUBET LANDS 3 BIG ONES Youbet.com, which has been aggressive in promoting harness racing consistently since its earliest beginnings, has stepped up the pace. The online service that provides live audio/video, upto-the-minute information, real-time wagering information and a host of other handicapping and wagering aids, has signed John Campbell, Cat Manzi and David Miller as exclusive spokespersons. The trio will be featured as “Team Youbet” in programs and publications promoting harness racing to Youbet’s nationwide audience of advanced deposit wagering customers. Charles (Chuck) Champion, Youbet.com’s president, in announcing the signing, said, “Our online network has experienced a substantial increase in harness wagering over the past two years. Our mission is to bring excitement and valueadded information and perspective to our customers, and these drivers do it on the track with their racing skills and off the track with their passion for the sport.” The three will wear Youbet logos on their driving silks and at personal appearances, will appear in online promotions at the company’s wagering Web site, and will offer comments in Youbet’s Harness Racing Insider online magazine. The promotion is a significant first for the sport. QUIZ: DEFINE REPUTABLE Ken Rucker, banned from the Meadowlands, has a new lawyer, who says, “This is not a dirty guy. This is a hardworking, reputable trainer.” The lawyer acknowledged that Rucker has faced license suspension four times in four years in Illinois, and that his license was suspended there again last year after eight -- count ‘em, eight -- positive tests. He got a stay and is awaiting a hearing. We’ll wait to hear whether he is reputable in Illinois. 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 June 15, 2006 HEY FOLKS! SHAWN IS BACK DOVER PLANS HIT A SNAG The resilient and resourceful Shawn Scott, a winner of tens of millions with his buy-and-sell deals at Delta Downs in Louisiana, at Vernon Downs in New York, and at Bangor Raceway in Maine, is back in the running for more millions in the nation’s capital. The District of Columbia Board of Elections has approved a petition from Scott’s Virgin Island-based group to get a slots initiative on the November ballot in the district. Scott’s group tried two years ago and lost when signatures were disqualified as bogus and officials found the slots supporters had committed fraud and forgery. The last we heard Scott still owed the District more than $600,000, but that didn’t deter him -- not much does -- and he now hopes to open a slots parlor with up to 3,500 machines in a gambling hall in the southwest section of Washington. The city opposes the idea, but don’t bet against Scott winning. An expansion of gaming in the state of Delaware that would have included HTA member Dover Downs but also would have created two competitive casinos in Wilmington was voted down yesterday, when members of the House Gaming and Pari-Mutuels Committee put on hold a constitutional amendment that would have authorized the changes. Yesterday was the last day for regularly scheduled committee meetings in the legislature, so the turndown could mean the end of the legislation for this year. THE SPA LOSES A ROUND The state of New York and not the city of Saratoga Springs will serve as lead agency in considering the major expansion proposed for HTA member Saratoga Gaming and Raceway. Denise Sheehan, commissioner of the Department of Environmental Conservation, made the call, but Saratoga Springs may try to require the casino to apply for a site plan review. The track wants to build at 41,000 square-foot addition to its facility on Nelson Avenue, across from Saratoga Racetrack, and add 400 new VLTs, a 300-seat buffet and a two-story nightclub. Another 4,500 square-feet would provide for administrative offices. The chairman of the city planning board recused himself from the voting. He is one of 500 employees at the casino at the track. Rita Cox, a Saratoga vice president, said, “We’re going to follow what our lead agency instructs us to do so we can get up and running quickly.” She said 200 new jobs would be created by the expansion. GOODLATTE “CLARIFIES” Republican congressman Bob Goodlatte of Virginia, whose legislation before Congress would ban Internet gaming but exempt horse racing, which has won it approval of the American Horse Council, appeared as a guest of Neil Cavuto on Fox News.com this week. Goodlatte told Cavuto that his legislation “only goes after the illegal, unregulated offshore sites...the federal government’s involvement is only in trying to assist the states in enforcing their laws. That is historically how it has always been. And that is what our law does as well.....We are going after the offshore sites and making it more difficult to send money to those sites and not have it come out of our economy to benefit these fly-by-night operations around the world.” Goodlatte told Cavuto that his legislation does not apply to individual bettors, but rather to betting services. He said, “If you are an individual bettor, that is covered by your own state laws in the state that you reside in.” DAVID WILLMOT ON “WORLD” This week’s World in Harness Internet show on www.harnesstracks.com is a wide-ranging conversation with David Willmot, chairman, president and CEO of Woodbine Entertainment Group. 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 June 16, 2006 HELPLESS AND HAPLESS IN PA INJUNCTION IN ILLINOIS The commonwealth of Pennsylvania, lost in the fog of bureaucratic bungling and legislative indecision, now says it may not issue racetrack slots licenses until fall of 2007, which would mean no slots until 2008 and no state revenue until 2009. The hapless handling of slots in the state is a disgrace. The unhappy news came from gaming control board chairman Tad Decker, who announced the delays. “I have some doubts about when approving the licenses is going to get done. It keeps sliding and sliding.” His announcement came after the board once again failed to approve licenses for slot machine distributors, a political mechanism in Pennsylvania where the law provides that middlemen will buy slot machines from manufacturers and resell them to casinos. Illinois’ four northern riverboat casinos, trying to stave off a 3% of adjusted gross revenue subsidy to state racetracks, have obtained an injunction in the Circuit court of their home county, west of Chicago. The TRO blocks implementation, for now, of the establishment of the Horse Racing Equity Trust Fund approved by the state legislature and signed last month by Gov. Rod Blagojevich. The action in effect is a double cross, since Illinois tracks supported legislation seven years ago calling for a tradeoff, letting the riverboats stay docked rather than cruise, a move that has provided them with an estimated $4.1 billion in added revenue. The riverboats at the time agreed to have 15% of adjusted gross revenue from a tenth casino, the ill-fated Emerald, go to tracks, but the Emerald never was completed, the license was abrogated, and the riverboats now have reneged on the clear intent of that agreement. Why would any state do that? Easy answer. Add up the patronage and payoffs. The gaming control board next meets June 28, and could -- but not necessarily will -- approve licenses for up to 22 slot machine suppliers. If that happens, it is conceivable that the board could still approve racetrack/casino licenses by Sept. 30 or early October of this year, Decker says. But he warns that a serious new hurdle has arisen. A separate state regulatory agency is about to enter the picture, and it could take months to put its seal of approval on gaming regulations. The Pittsburgh Post Gazette, reporting this development, says Decker indicated that if that happens his board would not be able to approve slots supplier licenses -- and thus racetrack licenses -- anytime soon. The gaming control commission, when it was formed, had been given a two-year reprieve from being subject to the review commission, but the reprieve ends July 1. Two years, in Pennsylvania, is the flick of an eyelash, and even Decker now has doubts. “I wonder,” he said, “whether applicants will really stay the course, waiting another year, tying up their money, spending more for options on land. This is a serious issue.” CHANGES AT POMPANO Isle of Capri Casinos has replaced a racing man with a casino man as it prepares for a racino at HTA member Pompano Park. The new boss is Douglas Shipley, with more than 26 years of gaming experience, most recently as corporate vice president of gaming with Delaware North. Pompano general manager and HTA director Dick Feinberg, commenting on the change, said, “We have had a pari-mutuel ‘parting of the ways.’ I wish for nothing but success for the Isle of Capri as Pompano Park enters the racino era.” HOPE YOU HAD THIS ONE A pacing mare named Rhiannon O Rhye won the seventh race at HTA member Buffalo Raceway last night. Nothing newsworthy about that, except -- and it’s a big except -- she paid $221 to win. Hope you were there, or thereabouts, and had Rhiannon covered. 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 SHICK IN, CENTAUR OUT, NOW Pennsylvania’s Commonwealth Court, acting on appeals of Centaur Inc.’s Valley View Downs and Carmen Shick’s Bedford Downs, has ordered the Pennsylvania Harness Racing Commission to grant a new hearing to the Shick group, but turned down Centaur, effectively eliminating them from building a western Pennsylvania track with a racino. Shick wants to build a one mile harness track and racino along state route 422 west of New Castle, near the Ohio line. The harness racing commission last November denied his license application claiming his grandfather, Carmen Ambrosia, may have had ties to organized crime in the Youngstown, Ohio, area years ago. The Commonwealth Court, however, ruled that did not represent sufficient grounds for denial of the license and ordered the commission to hold another hearing on the Shick application. It rejected, however, the appeal of Valley View Downs to build a track near route 60 in Beaver county, upholding in effect the original decision of the racing commission, which denied the application on grounds of track size, layout of the facility, and topography of the ground. Valley View had hoped to build a fiveeighths mile track on its site. Only one of the applications could have been granted, since the commission has only one license left to grant. The Commonwealth Court did not require the commission to grant Bedford Downs a license -- merely to reconsider its application -- and if the commission were to again deny the Shick application it would open the race to another applicant. The decision of the Commonwealth Court is posted in the proprietary section of HTA’s Web site for reference for HTA legal counsel and executives. CINCY GIVES UP THE FIGHT Queen City Gaming Entertainment, preempted at every turn by the Ohio tracks’ Learn & Earn petition, has abandoned its quest for a casino for downtown Cincinnati. June 19, 2006 “DUE TO AN EDITING ERROR” The New York Times never admits to making a mistake. It makes them frequently, but covers them in its “Corrections” column with the phrase “Due to an editing error...” If it’s good enough for the Times, it’s good enough for us. So, due to an editing error, last Thursday’s story in Executive Newsletter on “Dover Plans Hit a Snag” gave the wrong impression about events in Delaware. Although the bill that died in the House Gaming and Pari-Mutuels Committee did contain some benefits in expanded gaming for Delaware’s three tracks, all of them -- HTA members Dover Downs and Harrington Raceway and Delaware Park -- vigorously opposed the bill, which would have created casinos on the Delaware River in Wilmington. GRANDMAS HAD IT RIGHT After hearing Pennsylvania Gaming Control Board chairman Tad Decker say last week that it might be 2009 before Pennsylvania tracks have slots, we thought about Jewish grandmothers, many if not most who probably would have thought PariMutuel was the name of a new movie star. They had an expression that fit the Pennsylvania Gaming Control Board and Pennsylvania legislators and their foot-dragging antics perfectly: “You should live so long!” CAREER EVENT FOR KIDS The United States Trotting Association is sponsoring a career education event on Thursday, July 6 for high school students. The event, which is free, will be held in central New Jersey and start at the stables of trainer/driver Jacqueline Ingrassia, who will talk about her career path and advice she would give to students considering a “hands on” career with horses. It also will include a trip to the New Jersey Equine clinic to meet famed equine surgeon Dr. Patricia Hogan, who did the surgery that saved Kentucky Derby winner Smarty Jones. Call 732-780-3700. 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 ANOTHER FIRST FOR TIOGA Jeff Gural, intent on making his new Tioga Downs a leader in harness racing, in innovation if not in size, scored another victory last Saturday. While others talk of security, Gural acted, and his security force, around 6 p.m. Saturday, saw a horseman, Larry Futter of Vernon, NY, park his trailer at a rest stop along State Route 17, about five miles east of Tioga Downs. The security personnel watched Futter enter his horse trailer with several syringes in hand, accompanied by another Vernon horseman, Joseph Sansone. Futter exited the trailer several minutes later and discarded the syringes in a nearby garbage can. Tioga Downs Security retrieved the syringes and notified Tioga security director Dave Brenner, who stopped Futter and Sansone at the stable gate and searched their vehicle. Futter admitted using three syringes to inject a homeopathic breather medication, lactanase and ACTH, and said he had purchased the drugs easily through Internet websites. He also said Sansone did not play a role in administering the medication. Futter has been barred from participating at both Tioga Downs and at Vernon Downs when that track begins racing, and Sansone’s status is being evaluated. Futter’s statements and the evidence were turned over to the New York State Racing and Wagering Board. Jeff Gural issued a statement as chairman of Tioga Downs, saying the “unfortunate events and successful conclusion are what I envision not just for Tioga Downs and Vernon Downs but for all horse racing.” He also said, “It is nice to have former New York state steward and presiding judge Art Gray serving as a consultant to me, as he has established program and is educating the security division at both Tioga Downs and Vernon Downs to maximize the level of integrity on the racetrack.” Gray has in recent years been promoting the use of new safety lines in the sport. June 20, 2006 SHICK ASKS FOR QUICK ACTION Carmen Shick, principal owner of Bedford Downs, the western Pennsylvania hopeful harness track applying for Pennsylania’s last harness license, says he hopes the Pennsylvania Harness Racing Commission can expedite licensing now that the state’s Commonwealth Court ruled the racing commission erred when it denied Bedford Downs’ earlier application. The Court ordered, 6-1, that the racing commission must reconsider the Bedford Downs application, but did not follow suit for the application of Valley View Downs, perhaps ending the hopes of Centaur of Indianapolis to gain the final license. Centaur can appeal, but the action of the Court on Bedford was fairly emphatic. “It is absurd,” Judge Rochelle S. Friedman said, writing for the majority, “to believe that the ground upon which the racing facility is built will induce Bedford to violate the racing laws.” An earlier Pennsylvania Harness Commission had based its Bedford refusal on allegations that the present owner’s grandfather, Carmen D. Ambrosia, had ties to Lenny Strollo, a former mob boss in Youngstown, Ohio. Carmen Shick said his grandfather “was an old man with a lot of money that got conned, and I’ve been fighting in state, federal and local courts now to try to recover those funds.” In asking the racing board to act quickly on the Court’s decision, Shick said, “I just know that it’s taken forever — or half of that. So I would hope things would be expedited.” NOVA WINNERS ARE TOUGH For those who doubted HTA’s racing secretaries when they named Darlin’s Delight our Nova Award champion as the top 2-year-old pacing filly of last season, a note. She set a new world record Saturday afternoon at Mohegan Sun at Pocono, pacing in 1:50.1, the fastest mile every by a 3-year-old filly on a five-eighths mile track. 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 MORE MIXED SIGNALS IN PA The slots situation in Pennsylvania is turning from a mess to a nightmare. No one, including Gov. Ed Rendell, seems to sense the urgency of stopping the political bickering and getting on with applications and implementation of the state’s gaming law. Rendell says Gaming Control board members “are working to try to reach a compromise (about slots suppliers) and I believe they will. I’m optimistic that the people who are working on this will get it done.” What triggers his optimism is a mystery. The chairman of the Gaming Control Board, Tad Decker, warned last week that it is conceivable there will be no slots at tracks in Pennsylvania until 2009. Then the Board announced it will have hearings on six applications for track licenses in Harrisburg Aug. 7-9, and that licensing decisions would be made in September. There are other roadblocks, however. Competing proposals as to how to set up supplier territories in the state have created political stress, and temporary regulations expire July 5. Bobby Soper, president of Mohegan Sun at Pocono Downs, points out that if the temporary regs expire without resolution, it could prolong the licensing process substantially. The Gaming Control Board meets June 28 to consider the issue. Mohegan Sun also has announced that if tax proposals of state senator Jane Earl of Erie are adopted, Mohegan Sun will reconsider its entire operation of Pocono. Earl contends the legislation that enabled gambling requires a $10 million tax share, regardless of host municipality size. Soper says Mohegan Sun agreed to a 2% of municipal budgets of 2003-4, with a $10 million maximum, which would come to between $2 and $3 million in the case of Plains Township, Pocono’s home territory. If all went well, Soper says Mohegan Sun could be operating 1,000 slots before the year is out. June 21, 2006 In western Pennsylvania, The Meadows vice president Mike Jeannot says, “For the last 10 years we’ve been getting hurt by competition from West Virginia tracks. We’ve been waiting two years since the Pennsylvania slots law was passed. If it takes another year or more to approve slot licenses, it would be a devastating blow for The Meadows. We need to have slots approved as quickly as possible. We are planning to use those revenues to save the horse racing industry. If there’s a 12- or 18-month delay in getting the slots up, it truly could be a matter of life and death . We will be devastated, we really will.” Chester Downs, due to begin racing Sept. 10, also says it is needs slots quickly. Joe Lashinger, a principal in the project, says, “It’s extremely important for us to get a slots license this fall. It will cause us pain if we don’t. We have hundreds of millions of dollars in the ground now.” Lashinger told the Pittsburgh Post-Gazette that the estimated cost of the project, which will be operated by Harrah’s Entertainment, will be $430 million for the racetrack and more for the racino that will hold 2,750 slots. Bob Green of Philadelphia Park said, “In this business we have to make certain assumptions and take certain risks. If the board can resolve the suppliers issue on June 28, the 90-day clock will start running for issuing track licenses by the end of September. If the Gaming Control Board cannot resolve the issue of middlemen slots suppliers, who will buy slots from manufacturers and sell them to tracks at its June 28 meeting, and the present temporary regulations expire, it means that no action could be taken on Pennsylvania track slot license for 90 days from whenever the control board gets around to doing it. Lets hope for all concerned — the state treasury and horsemen as well — that Gov. Rendell’s optimism is justified. 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 CA TRACKS WANT MACHINES California racetracks launched another attempt to in some way compete with the ever-expanding Indian gaming industry in the Golden State yesterday by proposing legislation to authorize nearly 13,000 “instant racing” machines throughout the state. The instant racing machines look similar to slot machines, but they are designed for betting that is pari-mutuel, and therefore are not explicitly prohibited by state law. Las Vegas- style slot machines are legal in California only on Indian reservations. With the instant racing machines, bettors wager on the outcome of races taken from a library of races run in the past. Players are offered certain information about the race, such as the number of runners in the field and the odds at the time of the race. They wager and watch the running of the race on the machine, and win or lose based on their wagers. The legislation seeks to specify how revenue generated by the machines would be split. “We think we have found a potential solution to our problems,” Rick Baedeker, senior vice president for governmental affairs for Hollywood Park and Bay Meadows told the Los Angeles Times. Baedeker estimated that the machines could generate $300 million a year in profits for racing. “This is about saving an industry,” said Assemblyman Leland Yee of San Francisco, who introduced the bill, AB 2409. Yee’s bill would authorize up to 1,850 machines at seven tracks, including the Los Angeles County Fair, Santa Anita, Hollywood Park, Los Alamitos and Del Mar, and at two tracks in Northern California, probably Golden Gate Fields and Bay Meadows. The bill would earmark 30 percent of revenue for purses. The remaining 70 percent would be split between county fairs statewide, cities in which tracks are located, jockeys and other racetrack workers. Needless to say, the California Tribal Business Alliance, representing six of the states ribes with casinos, announced June 22, 2006 its opposition to the proposed legislation. Neither California’s senate president, assembly speaker nor Gov. Arnold Schwarzenegger had voiced a position on the legislation as of late Wednesday. CLERKS STRIKE AT WOODBINE Just scant days before Woodbine’s prestigious Queen’s Plate Day of thoroughbred racing, mutuel clerks at the Toronto track have gone on strike. The strike by the 600-member Canadian Racetrack Workers Union follows a vote against the latest contract proposal from Woodbine Entertainment Group. Jane Holmes, WEG’s vice president of corporate affairs, termed the Woodbine offer “very fair.” In spite of the possibility of picket lines, Holmes said that it will be business as usual at the track for Woodbine’s big weekend, with as little customer inconvenience as possible. A BREAK IN PENN. LOGJAM The Pennsylvania State Senate will consider legislation that would abolish the requirement that slot machine manufacturers sell equipment to Pennsylvania casinos only through in-state middlemen. The Senate State Government Committee on Wednesday approved the legislation, which is aimed at alleviating the delay in bringing slot machines to the Keystone State. The committee also rejected a play to permit the Pennsylvania Gaming Control Board to make decisions by a majority vote by removing a requirement in the 2004 slots law that gives each of the board’s four legislative appointees veto power. For a year, a dispute between two members of the board, one appointed by a Republican legislator and one appointed by a Democratic legislator, have held up regulations concerning slot machine distributors. By law, those distributors must be licensed before racinos or casinos can be licensed. 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 HOOSIER CUP ON TAP Sixteen 3-year-old colts and geldings will vie for a $500,000 jackpot in the Hoosier Cup this Saturday. The evening of racing, featuring purses in excess of $1,000,000, will close out the 2006 harness racing season at the Anderson, Indiana track. Heading the field for the Hoosier Cup is Total Truth, who comes to Hoosier fresh off a victory in the North America Cup on June 17. Eliminations for the Hoosier Cup will be held as races seven and eight on the program. The top five finishers from each elimination will return for the final, slated as race 11 on the card. CENTAUR TO APPEAL IN PA. Centaur Corp., backer of the proposed Valley View Downs in Pennsylvania, will appeal a court ruling upholding the racing commission’s denial of its license application for the last available harness racing license in the Keystone State. “This was a divided court, and we believe that the Supreme Court will agree that our petition for reconsideration should be granted,” said Centaur’s Jeff Smith in announcing the appeal. TROUBLE AT THE ELITLOPP At a press conference yesterday in Stockholm, Sweden, it was announced that Jag de Bellouet, winner of the 2006 Elitlopp, and Lets Go, who finished second in the race, have been disqualified due to positive drug tests following that race. The official winner of the Elitlopp is the Swedish horse Conny Nobell. “This is a tragedy for the Elitlopp, that both the winner and the second horse tested positive, and although we now have a Swedish winner of the race, I feel a deep sorrow,” said Ulf Hornberg, general secretary of the Swedish Trotting Association. This marks the second time this year that French champion Jag de Bellouet lost an important race due to a positive post-race test. In January the horse won France’s biggest race, the Prix d’Amerique, June 23, 2006 only to subsequently be disqualified after testing positive for Tolfenanique, a prohibited substance. This time Jag de Bellouet tested positive for Diclofenac, a nonsteroidal anti-inflammatory drug used to treat arthritis. The Italian-based Lets Go tested positive for Etacryn acid, a drug normally used to treat heart and blood pressure ailments. BUT THERE’S GOOD NEWS, TOO Marvin Goldberg, who did business selling equine drugs through a Web site and through fax solicitation, has been convicted of wire fraud, mail fraud, possession with intent to distribute a controlled substance, introduction of misbranded drugs into interstate commerce, and misbranding drugs. The 40-count indictment, handed down in March of 2005 in federal court in Philadelphia charged that Goldberg represented himself as a veterinarian to obtain and sell drugs such as Adequan, Ketofen, Acepromazone, Clenbuterol, Dexamethasone, and many others. Sentencing has been set for October 11. GREYHOUND EXEC DIES Fred Havenick, who was president of the company that owned Flagler Greyhound Track, Naples-Fort Myers Greyhound Track, and the greyhound track in Corpus Christi, Texas, died Wednesday in Florida at the age of 62. Havenick is credited with helping to start the campaign to bring slots to Florida racetracks. The measure eventually passed in Broward county but failed in Miami-Dade county, leaving Havenick’s Flagler track out of the slots equation. A REFERENDUM IN MASS.? After losing with a legislative approach in Massachusetts, Gary Piontkowski, president and CEO of Plainridge Racecourse said he has begun researching a statewide referendum to give the state’s tracks slot machines. HARNESS TRACKS OF AMERICA Executive Newsletter A daily fax and e-mail report on racing and gaming developments in North America and beyond Paul J. Estok, Editor June 26, 2006 VERNON EVICTION UNDERWAY PRIVACY VS. HONESTY Vernon Downs began its eviction of some 200 horses over the weekend, in line with Jeff Gural’s letter to horsemen of June 16 in which he wrote that “anyone who owes us money or has been a pain in the ass for the past 19 months can expect to be asked to leave.” The eviction duties fell to track spokesman Doug Tudman, who initially linked the cutback to environmental requirements of the Department of Environmental Conservation, but a spokesman for that agency said there was no such demand, and that a 425-horse limit, mentioned by Tudman, was not in the law that covers manure disposal, water runoff and other issues covered by CAFO. Beth Steele, chairwoman of the Delaware Harness Racing Commission, and Hugh Gallagher, Delaware Harness Racing Administrator, are frustrated with restrictions on searches of farms and training centers in Delaware. Gallagher, an official for 28 years, says, “They gave away $631,000 in purses last week at Harrington, yet we can’t get guys who hit horses with illegal substances as close as 50 feet away,” referring to a training center located next to the track. Bill Oberle, speaker pro tem of the Delaware legislature and a harness harness owner and breeder, says the commission needs to take a proactive stance in bringing the issue to the legislature. In a remarkable statement that implies horsemen’s privacy supercedes honest racing, Salvatore DiMario, executive director of the Delaware Standardbred Owners Association, said giving the harness commission power to search facilities where horses are kept could invade horsemen’s rights to privacy. Horsemen either want honesty in the game or they don’t, and they should stop talking out of both sides of their mouths. While turbulence continued at Vernon, it also was rampant in Albany, where Gov. George Pataki announced he was replacing Cheryl Buley as chair of the Racing and Wagering Board with Daniel Hogan, who has been commissioner of the Office of General Services and a former executive assistant to board member Mike Hoblock when Hoblock was Albany County Executive and also when he was a state senator. John Simoni, a former harness horse owner and friend of Senate majority leader Joe Bruno, also was named to the board. Pataki originally wanted Bernadette Castro on the board, but Bruno would not approve her confirmation by the Senate. Pataki announced last week that two women, Ellen Paprocki and Lisa Wright, were being sent to the Senate for possible confirmation, but the governor then withdrew their names from consideration without explanation. LIKE FLORIDA? READ THIS Tired of snow and cold winters? Pompano Park is looking for a racing secretary, with a racino and good times ahead. Email resumes to [email protected] ASAP. No phone calls please. ANOTHER HONOR FOR HTA HTA executive vice president Stan Bergstein has been named the 2006 winner of the Pfizer Equine Vision Award, presented by American Horse Publications, the association of some 400 racing publications in the U.S. and Canada with a combined readership of 4.5 million. The late thoroughbred and harness breeder John Gaines won the award last year. Dean Hoffman of USTA was named new president of the association. WE LOSE LEW BARASCH Lew Barasch, one of the last of the old school of great publicity and PR men, who worked for both Roosevelt and Yonkers Raceways, died last night. We have no details as of press time, but send heartfelt sympathy to his beloved Bunny. 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 POMPANO GEARS UP, BIG With the way now clear legally for Pompano Park to file its formal application for slots, the Isle of Capri track is shifting gears. Douglas Shipley, a gaming veteran who worked at Saratoga Gaming and Raceway and Finger Lakes, has taken over as vice president of racino operations, and the first phase of Pompano’s revitalization will see a 157,000 square-foot building that will house 1,500 slots, 34 poker tables, 4 restaurants, and a sports bar open in early 2007. After that, if all goes well, Isle plans a 450-room luxury hotel, a 250-room budget hotel, a 2-acre swimming pool and a miniature golf course on its spacious property, and perhaps a Tri-Rail station connecting the track with mass transit. If all of this appeals to you, as either a racing secretary or an assistant track superintendent, now is the time to make your move. Both jobs are open. To apply for the racing secretary’s post, email your resume to [email protected]. If you are interested in the assistant track superintendent’s job, your resume should be emailed to [email protected]. Do not phone in connection with either job. UGLY HEAD IN PENNSYLVANIA The ugly head of politics has reared itself once again in the besmirched path to racing salvation in Pennsylvania. This time it is a move by House Minority Whip Mike Veon, whose district happens to take in Beaver county, where Centaur had hoped to build a harness track until it was knocked out of the box -- at least temporarily -- by the Pennsylvania Commonwealth Court. The court ordered the harness racing commission to reconsider a rejected application from Centaur’s rival, Bedford Downs, for the last harness license, and racino, in the state, but not Centaur’s Valley View Downs. Mr. Veon is not happy. He now is thinking about introducing legislation to amend the gaming law passed two June 27, 2006 years ago, to separate the slots license that normally would go with a racing license, thus possibly shutting out Bedford Downs from obtaining a racino. Bedford Downs would be built in Lawrence county, and that county’s commissioner, Dan Vogler, also was unhappy, about Veon’s threat. “I am disturbed by this blatantly political maneuver,” Vogler said, adding, “Having lost according to the rule of law, he now wants to change the rules for his benefit. If Mr. Veon is truly interested in helping western Pennsylvania prosper, he would throw his support behind the Bedford Downs project, which will benefit both Lawrence and Beaver counties by creating over 2,000 jobs....” You’re in the Pennsylvania jungle, Mr. Vogler, where the animals eat one another. PEACE AND HARMONY AT SPA In a refreshing display of cooperative common sense, the New York Racing Association has announced a first-of-its-kind deal with its next door neighbor, Saratoga Gaming and Raceway. In return for use of a 50-stall barn at the Raceway for its overflow supply of horses, Saratoga Race Course will allow the Raceway to simulcast its premier product during its 36-day classic summer meeting. NYRA’s progressive senior vice president, Bill Nader, said the agreement will not impact Capital OTB in Albany, saying he doubted people were leaving the raceway to drive to an OTB parlor in Albany to make bets. HTA member Saratoga Gaming and Raceway will race nights, Wednesday through Saturdays, in July, and Tuesdays through Saturdays in August. A HOLD-UP IN CALIFORNIA Not the stickem’ up kind, but a legislative impasse. The chairman of the governmental organization committee, scheduled to hear a bill for 13,000 VLTs at tracks, has put off a hearing until August at earliest. 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 SENATE BOOTS PA MIDDLEMEN The House still must concur, which is not always a given in Pennsylvania, but the state Senate yesterday voted, 29-21, to get rid of the middlemen whose political sponsors were muddying up the slots licensing process in the state. That issue has held up any possibility of slots licenses because it deadlocked the Gaming Control Board. If the House does concur and the governor should sign the bill — which is complicated even further because of a controversial amendment by powerful Philadelphia Democratic senator Vince Fumo that would cut operators’ gross slots revenue from some 48% to 44% — it could speed up the process. “Could” in this usage is not a given. QUEBEC MOVING, SLOWLY The Harness Edge reports that it will be at least the end of August before the harness racing community of Quebec sees resolution of the muddled situation there. Rick Karper, president of the horsemen’s group, ATAQ, was quoted as saying, “The matter is getting resolved, but because of bureaucracy, technicalities and individuals’ holidays it is taking longer than it should. It is going to happen, but things are moving slower than we would like.” As it threatened to do, the Quebec provincial government appointed five new directors to SONACC, which runs racing in Quebec. That group had refused to sign an agreement reached last November with Paul Masicotte, the new owner of Quebec’s four tracks, saying changes had been made in the agreement by Massicotte’s Attractions Hippiques. When all of this worked out, purses in Quebec should rise by 40%, from $17 million two years ago to $40 million. Although it is hoped that overnight purses will be increased with resolution of the issue, stakes events will not be affected this season because of the delays. Massicotte plans to build a new Hippodrome de Montreal and refurbish his three other tracks. June 28, 2006 THIS MOVES FAST: BILL OBERLE OTBs and slots and racinos may not move fast, but Bill Oberle still does. It did not take long for Rep. Oberle, the man who got slots for Delaware tracks, to get mandatory legislation for flak vests after his friend, harness driver Hal Belote, was killed in an accident at Harrington Raceway May 15. The House of Representatives approved the measure June 22, and both drivers and jockeys in Delaware now will have to wear safety vests and helmets for training and racing. SPEAKING DELAYS, A FLOOD The little black cloud following Jeff Gural around perched over his head again today. His Tioga Downs operation was to open with slots, but the raging West River ended that and shut Tioga after Tioga County was declared in a state of emergency. Tioga has rescheduled the Grand Opening of its racino for Saturday, July 1. NEW OTBS IN OHIO, JERSEY You probably have noticed by now that things do not move at warp speed in racing, but they do move. The New Jersey Sports and Exposition now has two sites tabbed for OTBs, one in Vineland in the south and another in Woodbridge in the north, off busy U.S. route 1, in a former A&P supermarket. The township council involved passed a resolution of interest at its June 20 meeting and was impressed by a tour of facilities in Philadelphia. In Ohio, Madison township trustees this week unanimously approved an OTB facility for an American Legion post there. The Ohio Racing Commission must approve the plan, hopefully at its July 14 meeting, and it is presumed that Thistledown would manage and operate the facility. 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 PROGRESS IN PENNSYLVANIA The Pennsylvania Gaming Control Board, after a nine-month standoff, resolved the dispute yesterday and awarded licenses to 12 slot machine distributors, a move that should pave the way for racetracks in the state to get their casinos licensed by September. In what was certainly the understatement of the day, Gaming Board Chairman Tad Decker said that awarding the licenses is “a major step forward for gaming in Pennsylvania.” The board action should permit approval of casino licenses by Sept. 26. By law, the slot machines manufacturers and suppliers must be licensed 90 days before casinos. The board intends to award the racetrack licenses first, then deal with the state’s stand-alone casinos after that. Based on that schedule, racetracks could have slot machines up and running by the beginning of 2007. Board member Jeffrey Coy broke the deadlock over how to implement the distributor system. Coy dropped a demand that the board create two regions for suppliers. He had argued that regions would force slot machine manufacturers to hire suppliers in eastern and western Pennsylvania, creating more local jobs. But Coy relented in the face of a July 5 deadline that would have triggered another bureaucratic process that would have delayed licensing by six months or more. “I was optimistic today, but until the board passed (the supplier licenses) there was always reason to be concerned,” said Mike Jeannot, vice president of operations for Magna Entertainment Corp., which owns HTA member The Meadows near Pittsburgh. HOOSIER HARNESS MEET ENDS HTA member Hoosier Park concluded its 13th season of harness racing on Saturday. The meet offered 60 days of live racing. Average daily handle for the meet increased more than 10 percent from 2005. Average daily attendance was up slightly over last year. “Our Standardbred racing program continues to grab cus- June 29, 2006 tomers’ attention in simulcasting venues around the country, thanks to our affiliation with the Churchill Downs Simulcast Network,” said Hoosier Park President and General Manager Rick Moore. “Horseplayers have come to expect full fields from Hoosier Park, something we again offered this season.” In a related story, Churchill Downs, Inc. announced the promotions of two members of its corporate team to the position of vice president. Ted Gay, director of corporate development, has been promoted to vice president of business development, and Julie Koenig Loignon, director of communications, has been named vice president of communications. VERNON NEEDS REPAIRS While assuring horsemen, regulators and the public that he is committed to opening Vernon Downs as soon as possible, Vernon principal Jeff Gural also said that it will take time and money to bring the track up to a condition that will permit it to lure visitors. Gural made his comments at a press conference he held at the track to respond to comments made last week by a lawyer for one of two rival groups of horse owners, trainers and drivers. He said he is investing $4 million to remodel the track and hopes to open later this summer. Gural said Vernon’s buildings are in worse condition than he realized when he and a group of partners brought the track out of bankruptcy earlier this year. “We can’t just reopen Vernon and pull the switch,” Gural said. “It’s been poorly maintained. When you walk into a bathroom there were lights out, toilets that needed to be fixed, all the things that make you feel you didn’t want to be there. We’re not going to open Vernon Downs like that.” Gural also said that he has put on hold plans to evict up to 200 horses from the grounds. He said two state agencies are discussing how the track will comply with environmental laws. HARNESS TRACKS OF AMERICA Executive Newsletter A daily fax and e-mail report on racing and gaming developments in North America and beyond Paul J. Estok, Editor June 30, 2006 WOLF PROMOTED AT POMPANO IN OTHER NEWS FROM PENN. Management of HTA member Pompano Park yesterday announced that Steve Wolf has been promoted to the position of senior director of racing operations. Wolf, who has spent nearly three decades in the harness industry, has been director of marketing at Pompano since 2000. His new duties will include overseeing day-to-day operations at the Florida racetrack. Wolf also will continue to serve as director of marketing at Pompano. The Pennsylvania Governor’s office has appealed to the Pennsylvania Supreme Court a lower court decision involving the fate of two proposed harness racetracks in Western Pennsylvania, according to a report in the Pittsburgh Post-Gazette. Earlier this month, a Commonwealth Court ruled that the state harness racing commission should reconsider its rejection of Bedford Downs, the planned one-mile harness track that was proposed for a location west of New Castle near the border with Ohio. But the court said the commission didn’t have to afford the same reconsideration to Valley View Downs, the Centaur Corp.-proposed Beaver County racetrack. On Tuesday, the state appealed to the state Supreme Court. Though the decision technically is being appealed by the racing commission, it is executive branch (governor’s office) attorneys whose names are on the appeal petition. The petition asks the Supreme Court to rule that the Commonwealth Court wrongly overruled the harness racing commission’s “expertise and judgment.” HELP FROM MOHEGAN AT POCONO Ten Mohegan Sun at Pocono Downs employees volunteered their services on Wednesday and helped prepare some 800 meals for Wyoming Valley residents who were forced to evacuate because of the swollen Susquehanna River. The threat of a major flood in the Wyoming Valley and vicinity forced the mandatory evacuation of 200,000 residents on Wednesday, sending hundreds to shelters in Wilkes-Barre and the surrounding communities. Upon hearing that the Salvation Army needed volunteers to assist in preparing meals for those forced to leave their homes, Mohegan Sun at Pocono Downs asked for employee volunteers who were not affected by the evacuation order. Answering the call were Robert (Bobby) Soper, president and CEO of the track; Jim Wise, vice president of marketing; Rebecca Norton, group party coordinator; Mike Bean, vice president of administration; Kawel LauBach, director of human resources; Lynn Segars, director of customer service, and her husband, Vince Esposito; Mindy Weiss, Maria Zangardi, and Ann Crawford, vendor licensing specialists; and Leslie Martin, employee communication and event specialist. “This is the type of volunteerism that reflects what our organization is all about,” said Soper. A large tent also was erected in the parking lot of the racetrack to serve as a receiving center for displaced pets, since pets were not permitted at human shelters. TOURS OF NYRA UNDERWAY Several prospective bidders for the NYRA’s racing franchise spent this week touring Aqueduct, Belmont Park and Saratoga Racecourse. This week officials from Magna Entertainment, Empire Racing Associates, and the Delaware North Companies gave the places a look-see. Interested parties have until today to indicate their intent to bid, as well as who their bidding partners are, with bids due by August 15. An article reporting the tours in The Saratogian, while noting that Delaware North “took the tour independently,” did make mention of the fact that a member of Empire Racing Associate’s board of directors, Tom Newkirk, is also a shareholder in Saratoga Gaming and Raceway, where Delaware North built and now runs the very successful VLT parlor. 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 NEWS FROM A BUSY WEEKEND The Fourth of July weekend was not short on news. Here is a capsulated report: MEADOWLANDS,CASINOS CLOSED The Meadowlands has cancelled racing tonight, and Atlantic City casinos have shut down, as the budget impasse continues in New Jersey. Chris McErlean, VP for Racing Operations, said, “Given the hour-to-hour nature of the negotiations (in the legislature) we will take each program day-by-day. We are moving forward with the expectations of offering live racing on Thursday night and will make a decision early Thursday afternoon.” In Atlantic City, all 12 casinos were under state orders to lock up, the first closure in the 28-year-history of the casinos. Gov. Jon Corzine called the legislature back to a holiday special session as his fight with legislators over a new budget continued. July 5, 2006 As expected, Churchill Downs, Magna Entertainment, MGM Grand, TVG and NYRA itself announced intentions of bidding, and partnerships are almost certain to be announced before bids are submitted because of the amount of money needed. Big names involved include Steve Wynn, Donald Trump, George Steinbrenner, Frank Stronach, Tom Meeker and a cast of thousands. NECROPSY ON RUCKER HORSE A pacing filly owned by the Ken Rucker Stable and Illinois Harness Horsemen’s Association president Martin Engel and his wife dropped dead in a race at Balmoral Park last week, and the Illinois Racing Board has ordered a necropsy and pathology tests. Rucker, barred from the Meadowlands, is racing in Illinois under terms of a temporary restraining order pending a hearing. HUGE INCENTIVES AT CAL-EXPO McErlean also announced that the New Jersey Sports and Exposition Authority is seeking an exclusive partner for account wagering business outside of New Jersey. A request for proposal was sent to every major account wagering company with national broadcasting capabilities, including TVG, Youbet.com, AmericaTab, HRTV, Philadelphia Park and New York City OTB. The winner of the competition will get exclusive rights to signals from The Meadowlands and Monmouth Park, which produced $150 million in bets last year. McErlean said the deal could involve an upfront fee, a percentage of handle, or a combination of both, depending on how the bidders structured their proposal. 16 BID FOR NYRA FRANCHISE Sixteen bidders, including incumbent NYRA, have indicated they are interested in grabbing NYRA’s franchise for Aqueduct, Belmont and Saratoga. HTA member Sacramento Harness Assn. and the California Harness Horsemen’s Assn., hoping to generate larger fields and competitive product, have announced that every new horse making its first start at Cal-Expo between Aug. 2 and Marc 31, 2007, will receive a $2,000 bonus, and a $500 win bonus every time it wins. Ben Kenney, president of the CHHA, called initial reaction to the plan “unbelievably positive.” Average nightly handle is up 15% and purses up 20% at SHA. FLOODS RECEDE, SLOTS PROCEED With flood waters in its area receding, Tioga Downs finally got to hold the grand opening of its slots operation today. The track distributed bottled water and cleaning supplies to residents affected by the flood in its home area, and served complimentary buffet meals to public safety personnel including law enforcement officers, firefighters, National Guard and other public safety personnel. 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 NJ STILL CLOSED AT POST TIME As the newsletter goes to press, the Meadowlands, New Jersey casinos and state agencies still are closed. The battle between Gov. Jon Corzine and speaker of the Assembly Joseph Roberts Jr. continues, with no resolution and some very bitter and unusual barroom language flying back and forth in the General Assembly in Trenton. The New York Times, entering the fray editorially, said this morning that “it is time for Joseph Roberts Jr., speaker of the New Jersey Assembly, to fold his cards. He and his colleagues thought they could bluff their way through a confrontation with Gov. Jon Corzine over the governor’s proposed sales tax increase. But the bluff has been called.” One legislator, state Senator Ellen Karcher, a Democrat like Corzine, said, “This is less about policy than about people’s personalities.” The Times characterized the dispute as geographic, noting that Corzine and former governor and Senate president Richard Codey are from “north of the Raritan River, the Garden State’s equivalent of the Mason-Dixon line,” and Mr. Roberts and many of his supporters represent south Jersey. The Meadowlands cancelled live racing and simulcasting for today and vice president Chris McErlean said plans for both the Meadowlands and Monmouth Park would depend on resolution of the budget issue. BIG BUCKS ON LINE AT POCONO The New Jersey budget dispute is costing the state tens of millions of dollars, but hundreds of millions are on the line at Mohegan Sun at Pocono Downs. Finalized regulations of the Pennsylvania Department of Revenue could boost tax rates on slots at Pocono as high as 63%, far above the 55% on which Mohegan Sun made its decision to buy the track for $280 million from Penn National two years ago. Under the purchase agreement, Penn National could be required to buy back the track. July 6, 2006 The purchase agreement reportedly included that stipulation if the Pennsylvania Gaming Control Board did not issue any gaming licenses by July 1 of this year, which it did not. Pennsylvania almost went the way of New Jersey, after Philadelphia Senator Vincent Fumo held up a budget vote in his chamber over gaming issues after the House had passed it 130-68. Fumo relented a few hours later, and the Senate passed the $26.1 billion state budget at 12:45 a.m. Sunday morning by a 28-21 vote. ELSEWHERE.... SHAWN SCOTT, or at least some of his money, returned to Washington, DC this week. Scottpaid canvassers from as far distant as California were being paid $2 a valid signature to collect some 19,000 signatures, or 5% of registered voters in at least 5 of Washington’s 8 wards, for a slots initiative that would put up to 3,500 slots near Martin Luther King Ave. and Good Hope Road SE. The Scott troops were under scrutiny because of an aborted attempt two years ago, but were confident they would get enough legal signatures this time to get the petition on the ballot next November. HTA member WOODBINE ENTERTAINMENT GROUP cut purses by 5% this week as a result of reduced pari-mutuel harness wagering. Betting through the end of the Woodbine meet was down 6.5% from 2005, and down 9.5% on live racing. In Alberta in western Canada, despite the city of Edmonton going bananas over their Oilers rush to the Stanley Cup finals and the team capturing all media attention, live and simulcast betting increased by $4.3 million over 2005 figures at HTA member Northlands Park. Chief racing executive Les Butler said he “was amazed” at the numbers in the face of the preoccupation with the Oilers. 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 July 7, 2006 BIG M PLANS FOR SATURDAY GOODLATTE, LEACH MERGE Although a budget agreement was reached late yesterday in Trenton, the Meadowlands must wait for official passage and signing, which means the nation’s largest harness track will miss another Friday night of racing. VP Chris McErlean said, “The timetable of activities in Trenton for the passage of the budget bill in both houses precludes our opening tonight. We are asking horsemen and fans to check our Web site and phone lines for the most recent updates on Saturday. A huge card is in prospect tomorrow night, with two eliminations for next week’s $1 million Meadowlands Pace for 3-year-olds; eliminations for next week’s $650,000 William Haughton for older pacers; the $200,000 Titan Cup for older trotters; and three eliminations for the $375,000 Stanley Dancer Memorial for 3-year-old trotting colts and $375,000 Delvin Miller Memorial for 3-year-old trotting fillies, those to be raced as nonbetting events at 5 p.m. The budget shutdown cost horsemen $821,500 in lost purses as of today. The sport’s best horses -- trotters and pacers -- will be in action on tomorrow night’s card, which ushers in the heart of the summer racing season. Representatives Bob Goodlatte and Jim Leach, Republicans of Virginia and Iowa, respectively, have merged their Internet gambling prohibition acts into a single bill, the Gambling Prohibition and Enforcement Act, which would ban Internet and telephone gambling. It is expected the bill will be debated in the House as early as Wednesday of next week, and as presently written it would exempt betting on horse racing. Even if it passes, its fate in the Senate is uncertain. Let us pray. TIOGA OPENS SLOTS...BIG! It really was Independence Day for Tioga Downs, as the nation’s newest harness track opened its racino on the Fourth of July with 10,000 on hand and its 750 VLTs achieving $343 per unit of play. John Arnesen, president and CEO of Nevada Gold & Casinos, Inc., said of the opening, “Tioga Downs gaming opened beyond our expectations. We received great reviews by the customers and we anticipate a robust summer as we introduce our gaming product to the marketplace. We believe gaming makes the facility a complete e n tertainment experience with harness racing, live entertainment, great food and now gaming. VICTORIA STUNS, OKS BETFAIR In a development that stunned and angered other states in Australia, the ruling body of betting in Victoria, where Melbourne is located, approved operations by Betfair, the British betting exchange. Peter V’Landys, the chief racing executive in New South Wales, home of the country’s biggest city, Sydney, was shocked and unhappy. “This is not a backflip by Racing Victoria Ltd.,” he said. “It is a triple somersault.” V’Landys said the move came without consultation with any other jurisdiction in Australia. The approval was another indication of the bit-by-bit approach of Betfair, which earlier this year gained a foothold in Tasmania. James Packer’s Publishing and Broadcasting Ltd. is a 50% partner in Betfair’s Australian operation, and approval is another indication of Packer’s power. PICK-6 TO RETURN AT BATAVIA Mike Kane, VP of gaming and racing at Batavia Downs, has announced that the popular Pick-6 Progressive will return to the track Aug. 9. The pool, on races 4 thru 9, requires picking winners in all six races, with the pool increasing each week until hit. On closing night of the meeting, Nov. 29, the pool will be distributed to the person or persons selecting most winners that night. The pool is open to Players Club members, with no charge to belong. 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 July 10, 2006 TIOGA, VERNON DOWNS IN HTA WOODBINE STRIKE ENDS Tioga Downs and its sister track, Vernon Downs, have applied for membership in Harness Tracks of America. Their acceptance will bring HTA membership to 43 harness racing organizations. Jeff Gural will serve as HTA director for both tracks, with Jason Settlemoir as alternate. HTA president Brock Milstein, in announcing the applications, said, “The innovative spirit and creative design shown by Jeff Gural and his Nevada Gold associates in establishing Tioga Downs, and their determined efforts to benefit harness racing and central New York horsemen in acquiring and working toward the reopening of Vernon Downs, is heartening. We warmly welcome both to the HTA family of tracks.” A 16-day strike at Woodbine Entertainment Group by members of the Canadian Racetrack Workers Union ended Friday when the mutuel tellers voted overwhelmingly to accept a Memorandum of Settlement. Pickets were removed and normal operations resumed at Woodbine and Mohawk Raceway on Saturday. Staff personnel manned the mutuel windows during the strike, and customers were trained and encouraged to use self-activated machines during the strike, with surprisingly good results. Many enjoyed the experience and indicated they would continue using the machines, a variation of the “try it, you might like it” doctrine. Woodbine Entertainment chairman and CEO David Willmot said of the mutuel settlement, “We are pleased to have resolved this dispute through the bargaining process with good faith being demonstrated on both sides, and we are going forward with a renewed commitment to customer service.” PLAYING TOUGH ON INTEGRITY It may be small, but it isn’t timid. If its first two actions on security are an example, Tioga Downs is setting an example for others to follow. First its security caught two horsemen tubing horses at a highway rest stop enroute to the track, and banned both. Now it has uncovered an alleged shadow trainer, and barred her. The trainer, Ellen Engler of Middletown, NY, has been listed as trainer of record for horses owned by Sidney Korn, Alvin Jacobs, David Schneider and the VIP Internet Stable. Doing a background check on Ms. Engler, Tioga security personnel noted that she shared the same address as trainer Tim Case, the former trainer of the horses who was denied racing privileges at Tioga. Jeff Gural issued a statement, saying, “Every effort will be taken to prevent the practice of allowing suspended or excluded trainers and owners to simply use another’s name to circumvent rulings and policies implemented to uphold the integrity of racing. For years this practice has been a major contributor to a negative public perception of horse racing. Our security division has several other possible violations of this policy under review.” EXCITING TIMES IN CANADA There is an air of excitement in Canadian racing as the Canadian Pari-Mutuel Agency undertakes a massive review of rules and regulations of the sport. CPMA executive director Tim Pettipas leads the effort to bring regulations into modern times. When current regulations were drafted, the sport was a different enterprise entirely than it is today, and many regulations are seriously outdated or even illogical in the context of present day racing and technology. DELAWARE PENALTY UPDATE The Delaware Harness Racing Commission is moving toward revising its penalties for milkshaking. Current rules provide for a 9month suspension and $3,000 fine for a first offense, but the commission feels a maximum 30day suspension and fine of up to $3,000 is more realistic and workable. 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 July 11, 2006 STRANGLE IT UNTIL DEAD HOUSE OKS INTERNET BILL That seems to be the idea in Pennsylvania, where money flows down the drain, or out of state, as slots that were legalized two years ago languish. The latest blow, which could delay the debut even longer, is the state Department of Revenue’s announcement that it plans to enforce a $10 million minimum tax on gambling revenue that tracks and other slot licensees would owe to local municipalities. Mike Jeannot, vice president of Magna Entertainment’s subsidiary that owns The Meadows, points out “This isn’t just an issue of concern for the racetracks. This will be become an issue of concern for all licensees down the road.” Nothing will happen on construction there until the “issue of concern” is resolved. And racing’s exemption holds. The House of Representatives passed the Internet Gambling Prohibition and Enforcement Act (HR 4477) today, by a vote of 317 to 93. Despite opposition by casino and Indian interests, an amendment offered by representatives Berkley of Nevada, Wexler of Florida and Conyers of Michigan -all Democrats -- to strip the amendments from the bill was defeated 297 to 114. The language in the merged Goodlatte-Leach bill, which was what was approved today, includes a pari-mutuel horse racing exemption, and what is legal in states on the Internet issue is preserved. Today’s vote is a significant victory for the American Horse Council, which fought hard to keep the exemption alive. It already is an issue of concern for Mohegan Sun at Pocono Downs, which has put all racino construction on hold until the tax issue is resolved. And Ted Arneault, CEO of MTR Gaming Group, building the new Presque Island Downs near Erie, is hoping that if Revenue’s decision can’t be reversed, some of the $10 million might be used to subsidize marketing or construction costs. A reversal is unlikely, because legislators are contending the $10 million was clear in the original legislation, was intended to help local communities, and will not be changed. The track operators of The Meadows, Pocono and Erie see it differently, saying they understood the law to mandate a 2% municipal tax on slots revenue, with a maximum of 50% of the municipality’s budget. Anything over that would have to go to a county’s budget or municipal or economic development grants, depending on the county, according to Associated Press. AP also said Philadelphia Park, Penn National Race Course, and Harrah’s Chester Casino and Racetrack, now nearing completion, had planned to pay the $10 million. Whatever ensues, slots still are a distant dream in Pennsylvania. A SHAWN SCOTT STUMBLE? The team pushing Shawn Scott’s bid for slots in Washington has decided to wait until the next election. The initiative they were preparing will not be presented for consideration in November, although the backers claim they collected the 19,000 signatures to place it there. Jeffrey D. Robinson, an attorney representing the group, told the Washington Post that the group had collected 20,000 signatures by yesterday’s deadline, but rather than engage in a prolonged fight with such a slim margin, they would continue to collect signatures, turn them in, and wait for the next election. You can be sure Scott will be back. A PUBLISHING FIRST Canadian Sportsman launched its new Web site today, and with it a complete digital edition, a first for our industry. The magazine is offering subscribers the choice of receiving either its high quality print edition, the new digital edition, or both. For American readers, the innovation promises to sharply cut delivery time, offering instantaneous service. 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 July 12, 2006 DUCHOSSOIS BUYS NJC LOAN TRUMP BUYING UP PHILLY Duchossois Industries, the operating base of Arlington Park chairman Richard L. Duchossois, is buying out a $20 million loan held by Chicago’s Harris Bank on the National Jockey Club, which owned Sportsman’s Park and now races as a tenant at adjacent Hawthorne Race Course. Exactly what the move means for Chicago racing is not clear, but Duchossois told the Daily Herald, “We’re exploring every angle and throwing everything into the hopper to see what works. I think we should have a schedule that is economically sound for everyone. We have to sit down and work together and find out what’s best for the industry.” The Daily Herald’s Mike Spellman speculated, writing, “Does DI call in the loan, all but putting an end to the Bidwill family’s decades of involvement in the Chicago horse racing business? Will the two sides agree on a schedule beneficial to both and continue in a business-as-usual fashion? If NJC ceases to exist, does Arlington Park push for a longer season for itself and a later start in the spring and fall for Hawthorne?” Asked if dissolution of the NJC would mean the end of the line for the Bidwill family’s involvement in the sport, and particularly patriarch Stormy Bidwill’s association with horse racing, Duchossois told reporter Spellman, “I never want to see anyone struggle financially.” Ed Duffy, general manager of the National Jockey Club, was taken by surprise by the announcement of Duchossois Industries buying out the loan, and answered the Bidwill question by saying, “The Bidwills will always have a strong legacy. As is typical with Stormy, whatever does happen, he’ll handle with class.” Hawthorne Race Course is not involved or imperiled by the move, and Duchossois said, “I think there always has to be some sort of competition.” When asked if he thought the move was good for thoroughbred racing, Duchossois said, “We think it is, or we wouldn’t have done it.” Well, not all of it. Just another big hunk to go along with one already bought, in anticipation that he and buddy Pat Croce, former president of the Philadelphia 76ers, will wind up with a 5,000-slot casino when Pennsylvania’s legislators, courts and commissions get around to giving out licenses. Trump and Croce already have an option on 18 acres of the former Budd Industries factory park, and yesterday they added another 12 acres, or roughly a third of the site. The New York Post says that will give Trump enough room to add a hotel and second parking garage to their plans if business warrants it. The option price is $14.4 million, chump change on the Trump range. THE PROS & CONS OF LUNCH Some 200 business leaders and others gathered for lunch yesterday in Cleveland, and heard a spirited debate on the pros and cons of Earn and Learn, the proposal that would place 31,500 slot machines in play in Ohio with some $900 million slated to go to cover college tuition costs through scholarships for Ohio high school graduates. An additional $200 million is projected to go to economic development. Ohio’s seven tracks are helping back the petition drive to get the issue on the November ballot, but not everyone was enthusiastic about that in yesterday’s debate. Despite the worthiness of the primary beneficiary, education, Brent Larkin, editorial page director of the Cleveland Plain Dealer, said he was troubled that Learn and Earn “was built to save the racetrack industry.” Proponents already have collected 117,000 of the 322,000 valid signatures needed to get Learn and Earn on the ballot. Those signatures will have to be validated by Ohio’s Secretary of State, Ken Blackwell, who is the Republican candidate for governor. He is not friendly to the Learn and Earn cause, being strongly opposed to additional gambling. 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 ARE THERE TWO RAMSDENS? The editor doesn’t speak Australian, but he reads it, and is totally confused. Early this week one Andrew Ramsden, chairman of the Australian Racing Board, launched a strong and logical attack on Betfair, the British betting exchange that gained a foothold in Australia in recent days when Racing Victoria Limited approved operations by Betfair in Victoria. Ramsden said, among other things, “Today’s decision to allow a betting exchange to use Victorian race fields is an immensely disappointing outcome for racing. The integrity issue that is at stake here is clear -- allowing unlicensed persons to lay horses is a guaranteed recipe for undermining public confidence in racing.” After commending the Victorian authority for imposing integrity conditions of ‘some merit,’ Ramsden damned them with faint praise, saying, “Unfortunately, however, I believe these measures can at best be ameliorating influences. The basic problem remains that betting exchanges encourage people to make money out of horses losing races, and that, of itself, is fundamentally incompatible with racing’s integrity.” Hurrah for that Andrew Ramsden. The other one, also named Andrew Ramsden and holding the same job, was back a day later, saying, “Betting operators that use racing’s intellectual property without making a fair contribution to the sport have been the bane of the racing industry for many years now. The legislative protection of race fields that has just been invoked in Victoria is truly a watershed development. The Government and Racing Victoria Limited have confronted the problem head on and show that there is a workable solution...Accordingly, July 2006 marks an enormously important turning point...RVL has been able to say to corporate bookmakers that if they use racing’s intellectual property then the industry must be properly compensated. July 13, 2006 “This development is a world first and everyone involved with making it happen should be very proud. It is a defining moment that augurs well for racing’s future prosperity.” How about it’s future integrity with those guys betting on horses to lose, Mr. Ramsden? A day or two seems like a very brief concern about integrity as long as Betfair pays to play. LAWRENCE LEAVES LOUISVILLE Bob Lawrence, the racing economist who founded the Equine Industry Program at the University of Louisville in 1987 and has run it ever since, is retiring as director and chairman as of August 1. Lawrence says he has enjoyed the challenges and opportunities of the job immensely, “but it’s time for a change, for me and the program.” Lawrence developed the curriculum that leads to a Bachelor of Science degree in Business Administration, and his research has long been sought and respected in the racing industry. STRANGE PAYOFF AT POMPANO HTA member Pompano Park is investigating betting details of a July 5 race in which a 3-1 second choice won and a 130-1 pacer beaten a total of 41 3/4 lengths in three starts and never finishing better than sixth finished second, and formed a $25.80 exacta. A $600 3-horse exacta box was bet using the longshot, and newly appointed senior director of racing operations Steve Wolf asked the Department of Business Regulation for assistance in the investigation. BABY NEEDS NEW SHOES Dues invoices have been mailed to all member organizations of HTA. If you get a minute in your busy summer schedule, please take action and respond. That cactus jelly gets to be a tiresome diet. 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 July 14, 2006 BROOKS’ WORLD NOT PERFECT COMMISSION PLAYS HARDBALL Owner David Brooks, who operates the Perfect World Enterprise stable in harness racing, is discovering it’s not a perfect world after all. Currently under investigation for rigged trading by his company, according to the New York Post, Brooks has agreed to pay back investors as much as $22 million of the nearly $900 million the paper says was wiped out from shares of his former high-flying DHB Industries and its Point Blank Body Armor. The payback would end class action lawsuits, but not a probe of what the newspaper calls “a pump-and-dump scheme involving management, cooked books and insider trading.” Brooks was accused in lawsuits of dumping $186 million of his own shares in DHB when he learned his bullet-proof vests were going to be recalled for failing to stop bullets. The Post says Brooks “made a fortune peddling his body armor to the U.S. military and cops around the country,” and noted that the Marine Corps had recalled more than 15,000 vests from its troops in Afghanistan, Iraq and Africa following reports they didn’t stop bullets. The Pennsylvania Harness Racing Commission, ordered by the Commonwealth Court to reconsider Bedford Downs’ application for a harness license, which it denied earlier, has instead chosen to appeal that order in the state Supreme Court. Bedford Downs’ officials showed up at a commission meeting yesterday, but the Beaver County Times Web site reported commission members “ignored the elephant in the room, as well as attendees.” Commissioner Dan Vogler of Lawrence county, where Bedford Downs hopes to build, said, “a number of attorneys have told me that the Supreme Court most often chooses not to hear appeals.” SARATOGA PLANS GET REVIEW HTA member Saratoga Gaming and Raceway’s plan to build a two-story nightclub, 300-seat restaurant, and additional office space, and add 400 new VLTs to its racino, faces a public hearing on environmental impact next Tuesday evening. The hearing was called by Saratoga Springs mayor Valerie Keehn, who said she did so “since the Planning Board has been taken out of the picture with regard to the racino expansion, and I thought it was really important for the community to talk about the environmental impacts of that big expansion.” The New York State Division of the Lottery ruled some time ago that the state and not the city have review authority over the racino. The track plans to attend the hearing but has not been invited to make a presentation of its plans. A GREAT MAN LEAVES US The world today is not a friendly haven for idealists, but one who swam against that tide died this week. With the death of Dr. Joe O’Dea at 85, just 11 days after the death of his wife, racing lost a leading exponent of purity. O’Dea was a hay, oats and water man, a rarity in these turbulent times. Dr. O’Dea was a 20-year veterinary member of the U.S. Equestrian Team, a veterinarian for the Madison Square Garden National Horse Show, and a longtime New York state thoroughbred breeder. A bitter foe of illegal medication, Dr. O’Dea will be missed by the sport he served so well and so long. BIG NIGHT AT THE BIG M The 31st edition of the million dollar Meadowlands Pace for 3-year-olds features the Saturday card at the Meadowlands, but it is hardly the only feature of the evening. Also on tap are the $375,000 Del Miller Memorial for 3-year-old trotting fillies; the $375,000 Stanley Dancer for 3-year-old trotting colts; and the $650,000 William Haughton Memorial for older horses, being raced on the 20th anniversary of his death in a racing accident at Yonkers. 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 July 17, 2006 ACCORD ON SLOTS REVENUE A DOG’S LIFE IN BOSTON Magna Entertainment and its horsemen have agreed on the split of slots revenue that will accrue after the first 500 machines are installed at Gulfstream in October. Horsemen will receive 7.5% of earnings, with the share dropping to 6.75% when the maximum 1,500 machines is reached. Those numbers apply to revenue less than $200 million. Over that amount horsemen will get 12.6% of revenues. Dog lovers in Massachusetts have been trying for years to ban dog racing, and thought they were well on their way with a spot on the ballot this coming November. The commonwealth’s highest court, however, decided last week that they were barking up the wrong tree, and ruled that the proposal will not appear as an iniative in the election next fall. The court sided with RaynhamTaunton Greyhound Park owner George Carney, who had challenged the ballot question for mixing in unrelated issues. Carney’s lawyer called it “a significant opinion because it will apply in the future to all initiatives.” Supporters of the ban yelped, saying the questions on the initiative were similar because they all related to animal cruelty, and the chairwoman of the Committee to Protect Dogs said the decision defied precedent and called it “a sad day for dogs in the Commonwealth.” Every dog has his day, sad or glad, and we suppose it depends whether you’re a dog or a dog track owner as to what kind of a day this one was for you. TIOGA, VERNON EXPECTATIONS Nevada Gold’s CEO H. Thomas Winn told analysts in New York last week that he expects Tioga Downs and Vernon Downs to produce operating earnings “in the mid-teens” a year after they begin operations. He said Tioga’s first week “win per unit” was $193 a day. IN OTHER NEWS..... Veteran California horseman and racing official Bob Gordon has died after a long illness. Services will be held Wednesday at the Lombard Funeral Home, 1550 Fulton Avenue, Sacramento, with memorial services following in the Cal-Expo clubhouse. The national HBPA has endorsed a licensing agreement for offshore gaming with hubs in Curacao and North Dakota, to be operated for horsemen, despite warnings from its counsel that the action could be “fraught with danger.” The Wisconsin Supreme Court unanimously ruled that Indian tribes in the state can continue to offer casino gaming on tribal lands. Sue Schneider has sold her River City Group of gambling publications to Clarion Events, but will continue operating the publications and interactive gaming conventions and events. GREAT THINGS ABOUT RACING Jay Cronley, writing for ESPN.com, recently listed “49 great things about racing.” We don’t have room for his entire list, but some were so choice that we’re running our top selections here. Lawyers usually lose at the windows Surprisingly few people keel over dead at the track Losers pay the winners Bets you’re shut out on seldom win Big time jockeys’ wives are usually something statuesque At the small tracks, everybody knows the crooks Some long shots make no sense to anybody besides you, and win No kids, No dogs And our favorite: Expert handicappers on TV couldn’t hit their backsides with a jockey’s whip 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 FEDS ARREST INTERNET EXEC Federal legislation may or may not pass the Senate, but the FBI is not waiting to find out. Justice Department agents over the weekend arrested David Carruthers, the chief executive of Great Britain’s BetOnSports, and Gary Stephen Kaplan, the former New York bookie who founded that company, and 9 others on charges of conspiracy, racketeering and fraud for taking online bets from U.S. residents. Carruthers was changing planes at the Dallas-Ft. Worth airport enroute to Costa Rica, where BetOnSports has operations. Kaplan, who was arrested on gambling charges in his former home base of New York in 1993, now lives in Costa Rica. Carruthers was being held in Fort Worth, and was led into court yesterday in handcuffs. Kevin Smith, a BetOnSports spokesperson said, “Certainly had they told us, we would have been more than willing to negotiate with them and work on whatever the charges are.” You don’t negotiate with federal agents, Kevin. The other nine who were arrested were in various locations around the U.S. One of them, Neil Scott Kaplan, Gary Kaplan’s brother and BetOnSports’ purchasing agent, was arrested in Fort Pierce, Florida. Kaplan’s sister also was indicted. Others were arrested in Miami and Philadelphia. Three companies that handled promotional activities for BetOnSports and are based in Florida also were indicted. To give you some idea of the magnitude of Kaplan’s operation, he was charged in the indictment with failing to pay federal excise taxes on more than $3.3 billion — with a B — in United States bets. In England, trading in shares of BetOnSports, which is listed on the London Stock Exchange, fell 24%, then recovered to $2.24 a share, before trading was suspended. Sue Schneider, publisher of Interactive Gaming News, said, “I imagine the number of executives coming through the U.S. on connecting flights will come to a screeching halt.” July 18, 2006 In other Internet news in Great Britain, regulars announced that casinos, betting shops and gambling Web sites will be allowed to advertise on British television and radio late next year, eversing rules passed 40 years ago. Here, although Senate majority leader Bill Frist’s office said his goal is to consider the House bill that passed recently, others close to the scene doubt that the matter will be addressed before the August recess. One policy analyst said, “Gambling doesn’t have the same red-meat alue that abortion or flag burning has. I can’t see banning Internet gambling as the difference etween Republicans keeping or losing the Congress.” An attorney who specializes in gaming issues said, “There doesn’t seem to be the energy behind it as there was in the House.” But Ohio’s senator George Voinovich said he is ready to fight for an Internet gambling ban in that chamber, blaming a whole catalog of social ills on gambling. AND THEN THERE ARE PANTS While all of this Internet sound and fury was in the air, and with the Mideast in flames, the entucky Horse Racing Authority showed that it was on top of things by approving 15-day suspensions for jockeys Kent Desormeaux and Jeremy Rose for violating rules by wearing commercial patches on their riding pants in the 2005 Derby. DOWD RECOVERING AT HOME Dennis Dowd, senior executive vice president of racing at the Meadowlands, is recovering at home from emergency surgery. HTA wishes Dennis a speedy recovery, and cards and letters can be sent to him at The Meadowlands. O’BRIEN THIS WEEK’S STAR Virginia O’Brien, the 87-year-old dynamo who recently became the first woman inducted into the Communicators’ Corner of the Hall of Fame, is this week’s guest on The World in Harness. 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 THE INTERNET INDICTMENTS HTA has copies of the June indictments of BetOnSports and its top management figures. A federal grand jury in the eastern district of Missouri returned the 22-count indictment, charging 11 individuals and 4 corporations on various charges of racketeering, conspiracy and fraud. Gary Stephen Kaplan, founder of BetOnSports, was charged with 20 felony violations of federal laws. His brother and sister also were indicted, along with one Norman Steinberg, who owns and operates Millennium Sportsbook, Gibralter Sportsbook and North American Sports Association with Kaplan; David Carruthers, CEO of BetOnSports; Peter Wilson, the company’s media director; and one Tim Brown. In addition to Costa Rica-based BetOnSports, three Florida companies affiliated with BetOnSports -- Direct Mail Expertise, Inc., DME Global Marketing and Fulfillment; and Mobile Promotions -- were charged. Prosecution will take place in St. Louis, where undercover federal agents placed bets with BetOnSports. While the company is attempting to work out agreements with the Department of Justice that will allow it to resume operations, those operations will be without the 11 indicted parties, including Kaplan, Steinberg and Carruthers, who face up to 20 years in prison if found guilty on all counts. The indictment says the Kaplan gambling empire targeted customers in the United States, and allegedly spent millions of dollars in this country advertising its Internet Web sites and telephone services in magazines, sports publications, on sports radio, and on television. The indictment says that under RICO provisions, the defendants will owe, if found guilty, at least $4 billion in forfeiture of property to the government. Perhaps the most startling part of the indictment and TRO obtained by the government is a list of some 550 domain names that the defendants cannot transfer or convert. July 19, 2006 EVANS SUCCEEDS TOM MEEKER Robert L. Evans, a thoroughbred breeder and successful business executive, has been named president and chief executive officer of Churchill Downs Inc. Evans succeeds Tom Meeker, who for 22 years has led Churchill to new horizons in expansion and accomplishment. Evans has held senior executive positions at Caterpillar Inc., Mazda Motor of America, and Accenture, and leadership roles in international technology and private equity capital companies. He will assume his duties Aug. 14, when Meeker will step down, but Tom will continue in an advisory role until his contract expires in March, 2007. YOU SHOULD LIVE SO LONG The deputy director for marketing of the West Virginia lottery, Libby White, says that when Pennsylvania gets underway with its slots (you should live so long) it will cost West Virginia $100 million a year. Legislators in Pennsylvania have not yet figured out that the $100 million is Pennsylvania money, and that all those people betting it are champing at the bit to keep it at home. A POLYTRACK ‘ENHANCEMENT’ The rush to Polytrack racing surfaces has been a masterful selling job in North America, with California mandating them and others rushing to spend the millions necessary to install them. We wish them well. We cannot help noting, however, that Turfway Park, one of the first to convert, will “modify” its Polytrack before its next live meeting begins Sept. 6. Turfway president Bob Elliston says Polytrack “actually seems to get better in the hot weather,” but added that the surface lost some combining properties in the cold, dry weather of last winter. He still thinks it is better than any surface out there, “but it could be improved. It’s probably a good thing to add some material,,” he said. As a guy who remembers 3-M’s Tartan track, we wish all good luck long term. 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 July 20, 2006 IHHA CUTS OFF TIOGA SIGNAL ILLINOIS LOSES A VETERAN The Illinois Harness Horsemen’s Association, for reasons it chooses not to disclose, has barred exportation of Chicago signals to HTA member Tioga Downs from Balmoral and Maywood Parks. When asked why, IHHA executive director Jack Kelly said he could not discuss the matter. Given that, a curious man might speculate that it had something to do with Joe Faraldo’s battle with Jeff Gural over nonrecognition of the Harness Horse Association of Central New York at Vernon Downs, or perhaps IHHA president Martin Engel’s association with the disgraced Ken Rucker stable, barred in New Jersey but still operating in Illinois. Or both. Or neither. One of the early figures of Illinois pari-mutuel harness racing has died. Jack Hankins, 80, died Monday after a long battle with Parkinson’s disease. The father of well known racing official Kim Hankins, Jack and his wife, Joyce Burright Hankins, were popular figures for years on the Chicago circuit. They met on the opening night of pari-mutuel harness racing in Illinois in June of 1946, after Jack returned from World War II where he served as a tail gunner on a B-17, winning a Bronze Star and earning a Purple Heart. Joyce, a trainer and daughter of the colorful Maywood driving personality Neva (Grandma) Burright, died in 1994. Hankins was a founding director of the Illinois Harness Horsemen’s Association and was elected to the Illinois Harness Hall of Fame in 1989. Gov. Jim Edgar, a horse owner, proclaimed barn 41 at the Illinois State Fairgrounds “the Hankins barn” in 1995, after the Illinois legislature voted that honor. LIEBMAN’S QUESTION: WHY? An outpouring of cash from Kentucky racing interests for New York’s attorney general Eliot Spitzer, who would be governor of New York state, has led racing guru Bennett Liebman to ask a question: Why? Liebman asked the question in a bloodhorse.com story listing Bluegrass contributions to Spitzer’s campaign. They included $50,000 from WinStar farm co-owner Bill Casner, chairman of the Thoroughbred Owners and Breeders Assn. and a board member of NTRA; $50,000 from breeder-banker Tracy W. Farmer; $50,000 from Angela Beck, wife of the president of Gainesway Farm; and $50,000 from B. Wayne Hughes, owner of Spendthrift Farm. Former Kentucky governor Brereton Jones, owner of Airdrie Stud, gave $10,000, as did both track owner (in New Mexico) R.D Hubbard and his wife. Racing socialite Marylou Whitney and her husband chipped in $10,000 each; George Steinbrenner, part of a group chasing the NYRA franchise, was good for $15,000. That made political sense. Liebman, pondering the Bluegrass beneficence, said, “It’s unbelievable. Kentucky for Spitzer.” MEADOWS GEARING UP Preparing for the future (whenever that might be) HTA member The Meadows has hired a contractor out of Buffalo, NY, to manage construction of its $450 million Meadows Racetrack and Casino project. LPCiminelli, which managed construction and renovation of the facility at Wheeling, West Virginia, and is working on Saratoga in New York, will oversee work on a temporary casino as well as the permanent, 250,000-square foot, two story facility that will hold 3,000 slot machines, whenever the commonwealth untangles the knots and gives the blessing. LATEST PURSE REPORT ONLINE Brody Johnson’s latest purse distribution report of HTA member tracks is online in the proprietary section of the HTA Web site. Use your password to access it. 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 July 21, 2006 FRIST WANTS INTERNET BILL NO HELP IN PENNSYLVANIA The fate of the House-approved Internet gambling ban in the Senate is problematic, but at least one key figure thinks he can get it passed. Senate majority leader Bill Frist’s office seemed to be offering two different views -- one aide said it was doubtful the Senate would get to consider it before its upcoming month-long vacation and another said they were trying to get something done before the recess begins August 4 -- but it is clear that the voice to be heeded was that of Frist’s chief of staff, Eric Ueland. He made it clear that Frist wanted the bill voted on in the next two weeks, spurred by the arrest of David Carruthers, chief executive of BetOnSports, when he touched down from London at the Dallas-Fort Worth airport. Carruthers was to have a hearing today to see if he must remain in jail until his trial. While passage in the Senate is uncertain, the danger for racing is the possible loss of exemption now in the House version. It is becoming increasingly obvious that there will be no relief from the $10 million minimum host municipality tax on slots winnings in Pennsylvania. Gov. Ed Rendell’s spokesman has said the governor does not plan to address the issue unless the legislature acts to change the formula, and powerful legislators have made it clear they have no intention of doing that. HTA member Mohegan Sun at Pocono, which thought it had resolved the issue of paying roughly $2 million to its local municipality, now faces a requirement that will force it to pay $10 million because of a 2% or $10 million clause, whichever is greater, in the slots law. Track president Bobby Soper says that will drive the tax rate from 55% to 62% or 63%, and Soper says Mohegan is weighing its options. BIG M REGAINS TWO DAYS The New Jersey Racing Commission has approved a makeup of two lost days for the Meadowlands, and the track will feature free admission and drawings for $5,000 in betting vouchers to celebrate recouping the days. The add-on to the regular season was to ameliorate the losses from the government shutdown during Gov. Jon Corzine’s battle with his colleagues in the legislature, and the Meadowlands will take them on the Friday and Saturday nights following the Hambletonian, which was the scheduled closing day. In addition to the other inducements, fans on Hambletonian Day, Saturday, August 5, will receive a bounce-back coupon good for August 12 only and a free grandstand admission pass good for the rest of 2006. Day/night discounts alsow i l l be offered, with a small coffee, tea, a 16ounce Pepsi or a pretzel reduced to $1 each, and hot dogs to $1.75. Across the state, Centaur’s Valley View Downs waited until the final day of an appeal deadline to petition the state Supreme Court to order the Pennsylvania Harness Racing Commission to award it a license to build a harness track in south Beaver township. Valley View contends the Commonwealth Court erred when it ordered the commission to reconsider Bedford Downs application but not Valley View Downs. It says the commission’s actions were “a compelling illustration of abuse of administratieve power by a commonwealth agency.” The commission, for its part, is challenging the Commonwealth Court’s court’s Bedford order. DEFRANCIS A MAGNA DIRECTOR Joe DeFrancis, executive vice president of Magna Entertainment, CEO of the Maryland Jockey Club, and principal advisor to Magna boss Frank Stronach, has been named a director of Magna Entertainment. Stronach said DeFrancis’ “vast knowledge of Magna and racing” made him a perfect fit for the job. 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 July 24, 2006 HOW FAR TO ST. LOUIS? CHAIRMAN SHAPIRO UNHAPPY When the FBI wants to make it tough on someone, it is expert, and when the subject has few redeeming qualities, the feds can be truly creative. With a Senate vote on Internet wagering coming up, their arrest at the Dallas-Fort Worth airport of BetOnSports chairman, David Carruthers of Great Britain, was the stuff of moviedom. They knew Carruthers’ itinerary, and nabbed him in a waiting lounge where he was relaxing between his flight from London and one to Costa Rica, where BetOnSports is headquartered, and its fugitive founder Gary Kaplan, Carruthers’ boss, hangs out. Now comes an even more fascinating scenario. Carruthers, indicted with 10 others on 22 counts including racketeering, conspiracy and fraud, is being moved from Dallas to St. Louis, where the sting operation was conducted that netted him for accepting bets from Americans on his online Internet site, self-proclaimed as the largest in the world. Richard Shapiro, the ultra activist chairman of the California Horse Racing Board, is a man who likes to see things done. He and his board did not wait on artificial track surfaces, mandating them for thoroughbred tracks in California as a safety measure. He does not like to wait for progress, and he fires from the hip. At a board hearing at Del Mar last week, he announced, “I think there can be no argument that we are asking our customers to wager using obsolete equipment.” Shapiro wants racing to update its tote operations with present day technology so as to create a fan friendly environment, and his ire fell on Scientific Games Racing, which provides tote service to California tracks. He was agitated about a lack of progress in a year since the matter was discussed “in this same room.” Terry McWilliams of Scientific Games said hardware problems take time to solve, and told Shapiro that SG is ready to update California equipment in the near future. Craig Fravel of Del Mar reported that an industry working group he chairs is developing an RFP -- a request for proposal -- on the state’s totalisator contract. It is 660 miles from Dallas-Fort Worth to St. Louis, which would take perhaps 12 hours of serious driving time, or an hour and a half flight. In Carruthers’ case “legal experts” said it could take from a week to a month. The U.S. Marshal Service, which is holding Carruthers, sometimes ships inmates in transit to a federal hub in Oklahoma before they are sent to their final destination. Dates for Carruthers’ arraignment and a new bail hearing have not been set. We’ll let you know when David arrives as soon as we find out. His lawyer told reporters, “We are very optimistic that the court in St. Louis can fashion some reasonable conditions for his release.” Perhaps. But the FBI, most likely, will not make it easy if they can. They have made their point forcefully with the arrest, with estimates indicating that the FBI message has cost European online betting services a billion in one day. THIS IS NOT EASY TO DO It takes ingenuity and creativity to lose money with a racino, but the one in Charlottetown, Prince Edward Island, in Atlantic Canada, has mastered the trick. In its first eight months of operation, the Charlottetown racino operation lost $2.5 million, according to the Atlantic Lottery Corporation, which runs it. Provincial treasurer Mitch Murphy is optimistic, saying that for the first quarter of 2006 the racino has moved to 96% of revenue projections. Three weeks ago VLTs were replaced with slots, and harness racing has enjoyed a resurgence. The racino has added $2 million to purses, and breeding and ownership are up in Prince Edward Island, where the sport is very popular. HARNESS TRACKS OF AMERICA Executive Newsletter A daily fax and e-mail report on racing and gaming developments in North America and beyond July 25, 2006 Stanley F. Bergstein, Editor PARTY GAMING DEFIES US We’re not sure if Gary Kaplan’s BetOnSports or Party Gaming, funded with pornography money, is the world’s largest online gaming operator. Both claim the title, and we couldn’t care less. But we don’t like the idea of Party Gaming thumbing its nose at our government, and saying it does not intend to be driven out of the lucrative American market. The Party Gaming CEO, Mitch Garber, says the arrest of his rival David Carruthers in the Dallas-Fort Worth airport will not deter him from “legally marketing in the US” through the Internet, television, radio, newspapers and sponsorship deals. We have an idea. Have him fly to Dallas to discuss his plans. PENNWOOD PICKING CHERRIES Pennwood Racing Group, the partnership of Penn National Gaming and Greenwood Racing, has filed a formal site plan seeking to build a 32,795-square-foot betting parlor and nightclub called The Favorites at the site of Garden State Park in Cherry Hill, NJ. The township involved wants the design to reflect the former track at the site, now a major residential and commercial development. It also wants Pennwood to preserve the old track gatehouse, and Pennwood has agreed, and now is offering a betting site complete with steeples. Pennwood has pledged $1 million to the project, plus maintenance and repair costs. The new community, incidentally and appropriately, is called Garden State Park. DUCHOSSOIS WANTS INTERNET Arlington Park chairman Dick Duchossois may be 84, but he isn’t out of date. He told state regulators in Illinois yesterday that “if we don’t get up with technology, we aren’t going to exist anymore.” He told the Illinois Racing Board, at a hearing on revitalizing the industry, that Internet betting is essential. Noting that bettors currently are wagering some $50 million on largely illegal Web sites in Illinois, Duchossois said, “We either join this third party or eliminate it.” And he added that the answer “is not all slot machines.” NOW ABOUT GAMES SCIENTIFIC The Executive Newsletter yesterday ran a story on California Horse Racing Board chairman Richard Shapiro lashing out at what he called “obsolete” tote technology, later amended to “archaic.” Shapiro was angry over what he considered a year of inaction on the tote front. Our story was interesting, but also incomplete, inaccurate, incoherent, and poorly written. Other than that, it was fine. It neglected to fully report that Terry McWilliams, vice president for sales of Scientific Games, had taken strong exception to Shapiro’s remarks, pointing out that hardware problems had been solved, saying SG’s equipment was supremely state-of-theart, and that SG was working with other vendors on developing the type of wagering devices Shapiro wants. Most important, the story failed to mention that Craig Fravel, executive VP of Del Mar, reported that such new technology was at Del Mar and ready for testing, and would be in use at the current meeting. SG’s Opera Glass device already is installed and in use, and waiting to be introduced is HandStan, my namesake, a wireless personal PDA wagering tool; Walkabout terminals with wireless teller operation; and Color Tiny Tims, selfservice, Windows-based wireless communication devices for carrel-type environments. That said, a respectful suggestion to Scientific Games. Next time you schedule a “Racing Users Forum” try not to schedule it on the day of the Little Brown Jug, a leg of pacing’s Triple Crown. We doubt you would schedule one on Kentucky Derby, Preakness or Belmont Day. “Racing Users” include harness racing executives, many of them your customers. 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 July 26, 2006 AN END-AROUND RUN IN PA? GOLIATH ROUGHS UP DAVID Either that or a runaround. As Pennsylvania’s slots fiasco drones on, new developments. It turns out that the Gaming Control Board, which hasn’t done much controlling of gaming so far, is going broke. It may have to lay off employees or even close down. This, of course, would be fine with slots opponents, including former pro football star and now NFL commentator Lynn Swann, who is running for governor on the Republican ticket. The Associated Press is reporting the matter could become an election issue. The present governor of Pennsylvania, Ed Rendell, would like to transfer $10.4 million to the Control Board to let it get on with getting slots in place, so that his tax relief plan, on which the slots legislation was based, can get underway. Rendell expects slots to reduce property tax bills by an average of 17%, a big cut in an election year, or any year. One state official, treasurer Bob Casey, had the audacity to express concern about why the Gaming Control Board had run out of funds, and that additional scrutiny of the board’s finances might be appropriate. How dare he suggest such a thing? Stripped of his slingshot by the FBI, online gambling executive David Carruthers stands defenseless, and an easy target for Goliath, also known simply as “G,” Carruthers’ boss Gary Kaplan. Kaplan, founder and president of BetOnSports, which hired Carruthers for business savvy and respectability, fired him yesterday, terminating his contract and removing him as a director while he remains in the embrace of the Federal Bureau of Investigation and Department of Justice. One might think a company for which Carruthers sacrificed his career and freedom might try to save him -- lawyer’s fees, perhaps? -- but BetOnSports, itself under indictment on 22 counts of racketeering, conspiracy and fraud, announced instead, “Clearly, while he (Carruthers) remains in the custody of the U.S. government, he is unable to perform his duties.” So much for mob loyalty. As for BetOnSports itself, the government says it fraudulently and illegally took bets from U.S. residents by phone and the Internet, and failed to pay excise taxes as well. In another Pennsylvania slots development that the Pittsburgh Tribune-Review headlined “Slots sleaze,” and a state senator gaming critic called “slots for tots,” it turns out a lobbyist who can’t hold a direct financial interest in gaming and still make political contributions has set up a trust fund for his children. They, not he, will have an interest in a company awarded a distributor license for slots in the state. ONE BUSINESS IS BRISK In New York, meanwhile, another of the periodic reports that New York City OTB is going broke. Controller Bill Thompson says OTB has to hand over so much money to the state and racing industry that come fiscal 2008, which starts July 1, 2007, the OTB cupboard will be bare. Indian casinos -- there are 408 nationwide, operated by 223 tribes in 28 states -- handled twice as much as Las Vegas casinos last year. The National Indian Gaming Association reports that revenue was up 15%, $22.8 billion in 2005 against $19.6 billion in 2004. Tribal gaming, it says, has recorded double-digit growth every year since Congress created the legal framework for it in 1988. STEVE WOLF STAN’S MAN Steve Wolf, recently named senior director of racing operations at Pompano Park, is the newsmaker guest on this week’s World in Harness. To hear Stan’s conversation with Steve, go to www.harnesstracks.com. HARNESS TRACKS OF AMERICA Executive Newsletter A daily fax and e-mail report on racing and gaming developments in North America and beyond July 27, 2006 Stanley F. Bergstein, Editor THE INS AND OUTS OF RACING WOODBINE A lot of personnel changes in the game this week. RACE Here are some of them: OUT - Jim Gallagher, resigning as executive director of the Kentucky Horse Racing Authority, effective Oct. 1. The former director of racing for the New York Racing and Wagering board and vice president of regulatory compliance and pari-mutuel operations for the New York Racing Association. as well as medication expert for the NTRA, said family issues led to his leaving the Kentucky job. KHRA chairman William Street said Gallagher had done an outstanding job as executive director of the Authority, and that Jim’s industry experience had been of great value to the regulatory body.: OUT - Kevin DeSanctis, president and chief operating officer of Penn National Gaming, leaving the company by the end of the year. Penn National has retained an executive search firm to replace him. IN - Leo C. McNamara, a third generation horseman from one of harness racing’s most famous families, has been selected as the new executive administrator of the Standardbred Breeders and Owners Association of New Jersey. McNamara is the grandson of Leo McNamara, whose Two Gaits Farms in Carmel, Indiana, had a huge impact on pacing in America through its premier stallion, Hal Dale, sire of the great Adios and a family founder in the breed. This Leo has been a member of the New Jersey SBOA board for seven years, serving as chairman three years. OUT and IN - Michael Izzo, leaving the New Jersey SBOA executive administrator’s job to become chief financial officer of the Pennsylvania Harness Horsemen’s Association. JOINS THE NY Woodbine Entertainment Group has joined the chase for the franchise of the New York Racing Association, as a member of the Empire Racing team. David Willmot, Woodbine’s chairman and CEO, said of the move, “We’re delighted to assist Empire Racing as they develop their plan for the future of New York racing.” Willmot said Woodbine considered Empire “well suited to operate New York racing for the benefit of New Yorkers and as an integral part of the entire North American racing industry.” Empire chairman Jeffrey Tucker, noting that Woodbine offered “a world class racing experience,” said its achievements present “a tremendous model” for New York racing. Woodbine will not have representation on the Empire board, but will assist Delaware North, already committed to Empire, in developing New York operational plans. WHICH STATE WAS THAT AGAIN We know Eliot Spitzer is running for governor, but we’re not quite sure which state he’s running in. We thought it was New York, but we’re having trouble making sure because of the $265,000 he has received already in recent weeks from Kentucky horse breeding interests, according to a report yesterday by James Odato, the capitol bureau writer for the Albany Times-Union. Much of the money, Odato wrote, was pledged after a fundraiser hosted by Tracy Farmer and his wife Carol at their Shadow Lawn Farm in Midway, KY. Some 75 people attended that event, including Spitzer. Farmer was chairman of the Kentucky Democratic party in the early 1990s, and explained the campaign by saying, “We’re trying to get him elected as governor. Any decisions he makes as governor would be helpful to the horse industry in general.” We can hear it now at Churchill Downs: tens of thousands singing Sidewalks of the Bluegrass: “East side, west side, all around the farm.” 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 July 28, 2006 HISTORIC MOMENT AT THE SPA TO COURT, WITH GOOD REASON HTA member Saratoga Gaming and Raceway held its first-ever simulcast of thoroughbred action from across the street with the opening of historic Saratoga Race Course, and was pleased with the result. It marked a milestone in ecumenical cooperation, and some 500 showed up for the event. Vice president Skip Carlson said, “We are happy with the crowd, and when it’s really, really hot, we’ll do better.” Skip could not have hoped for a better press report than the lead written by Margarita Raycheva in The Saratogian. She began her story this way: “For the first time in more than 30 years, Terry Scriven, 61, spent opening day of Saratoga Race Course without being squashed by crowds, worried about parking or bothered by heat. At Saratoga Gaming and Racing, where he watched the races this year, he had air-conditioning, a sturdy chair to sit on and free parking. Scriven’s partner, Louise Trottier, 56, also was happy -she got to play the slot machines before the first race. ‘I’m more comfortable here,’ said Scriven, a lifelong racing fan. ‘It’s cooler, the parking is not a problem. For us, it’s just more convenient.’” Carlson negotiated the arrangement with Bill Nader, NYRA’s senior vice president, after years of discussion. NYRA agreed to allow the simulcasts in exchange for the right to use one of Saratoga Raceway’s barns, just across Nelson avenue from the racecourse, free of charge. Carlson said the idea is to serve long-term racing fans who don’t go to the track for the atmosphere, but rather to place quick bets. “We want to get the in-and-out crowd. We don’t want to take people away from the track. It’s all about comfort and convenience.” The simulcasts will continue through the thoroughbred summer season in Saratoga. On dark days, patrons still will be able to watch simulcasts from other tracks around the country in the comfort of the Raceway. The recently-formed Vernon Downs Harness Horsemen’s Association, ignored by the New York Racing and Wagering Board in its bid for recognition, is seeking to reverse the Board’s decision. It is asking a judge to name it the official representative of owners and trainers at Vernon Downs. The racing board ignored the opportunity to factually resolve the issue at Vernon between the new group and the long-established Harness Horse Association of Central New York. It could have taken the logical step of ordering an election. Instead, it said membership information provided by both groups did not prove who represented the majority of horsemen and never made an effort to find out the facts itself. The new horsemen’s group contended it had 360 members; the old Central New York group said it represented 285. Despite that, and without holding an election to determine the truth, the board relied on what the new organization claims was “irrelevant, outdated and insufficient information.” It called the board’s decision “arbitrary and capricious, an error of law and violation of due process rights.” SEE YOUR FRIENDLY BANKER That’s what Youbet.com has done, closing a new $19 million, 4-year “credit facility” with Wells Fargo Foothill. The $15 million loan and $4 million revolving credit replaces United Tote’s existing bank credit with Manufacturers and Traders Trust, which Youbet guaranteed when it bought United. Gulfstream Park, meanwhile, agreed to borrow $25.75 million from a financing arm of its parent Magna Entertainment, to build its racino. And Magna announced it has closed on its sale of The Meadows , cutting the sale price from $225 million to $200 million, with a $25 million holdback, reportedly because of tax issues involving local municipalities. 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 EVERYONE STAND And raise your right hand. Everywhere you look, hearings or inquiries or revelations. In St. Louis, two hearings today, one on the temporary restraining order by the U.S. government on BetOnSports operations in the U.S., and another on former BetOnSports’ president David Carruthers’ arraignment. In Washington, an array of amendments to the horse slaughter bill, which could kill it. The House Agricultural Committee voted 37-3 to send the bill to the House floor with an unfavorable recommendation. Another amendment grandfathers the three existing slaughter plants, in Texas and Illinois, the only ones in the country, thus making the bill meaningless. Texas Rep. Charles Stenholm, lobbying on behalf of the Texas slaughter plants, says stopping the bill still is “an uphill fight.” The House rules committee will decide if the bill goes to a vote in September with the changes, or if opponents of the ban will have to amend the bill on the floor. At least 269 of the 433 members of the House, a majority, have voted in support of a ban previously. In New York, two big stories concerning the NYRA franchise and $$$$$$. In one, Senate Majority Leader Joe Bruno is accused of having air flights paid for by a key figure in the Empire Racing Associates group seeking the NYRA franchise. In another, the New York Daily News says gubernatorial candidate and crime-buster Eliot Spitzer accepted more than $200,000 from companies bidding for the NYRA franchise. In Illinois, a fuss about Arlington Park track consultant Greg Coon writing an independent report on Arlington’s much-discussed track problems, then discussing recommendations and talking to Arlington officials without informing the Illinois Racing Board. One commissioner thought this “serious.” July 31, 2006 And then -- are you ready for this -- there is Guam, where the latest sighting of Shawn Scott, or his loyal crew, is reported. A Guam radio commentator has given all the gory details, complete with reports that Scott, his mother Victoria, his Washington, DC, crony Robert L. Newell, and -- you’ll love this -- his old Vernon Downs buddy and excon Hoolae Paoa -- are trying to get slots on the island. ON THE WHOLESOME SIDE Speaking of Vernon Downs, the Breeders Crown committee of the Hambletonian Society has selected real estate mogul and Vernon co-owner Jeff Gural as its winner of the 2006 Frederic L. VanLennep Achievement Award. The award, honoring the memory of the visionary breeder and track owner, singles out Gural for his role in bringing VLT legislation to New York state and for his efforts in turning old Tioga Park into Tioga Downs and preparing to return racing to Vernon Downs. In an update correction, Pennsylvania’s harness tracks will get their slots hearings on Sept. 11 in Harrisburg, with Mohegan Sun at Pocono and Harrah’s Chester Casino and Racetrack also having hearings that day. Gaming Control Board chairman Tad Decker said he expects the board to issue six track licenses for racinos at a meeting Sept. 27. Harrah’s chairman and CEO, Gary Loveman, had less wholesome news for racing. He said after extensive talks with New Jersey governor Jon Corzine on the issue of slots at tracks, “I’m not too worried about it.” Corzine earlier had said on a radio talk show that he would consider slots at tracks as an option. WAPLES SUFFERS INJURIES Ontario driving star Randy Waples, injured in a three-horse spill last night, has two broken wrists and two broken elbows. 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 August 1, 2006 DON’T BET ON SPORTS NO SPECIAL SESSION IN PA Former BetOnSports CEO David Carruthers remains in St. Louis today, rather than Costa Rica, still in custody of federal agents on charges of mail and wire fraud and racketeering. The 48-year-old natty executive, now dressed in prison orange, entered a not guilty plea yesterday, along with seven other BetOnSport employees, including Neil Kaplan and Lori Kaplan Multz, the brother and sister of BetOnSports founder and mastermind Gary Kaplan. The former New York bookie remains secure in Costa Rica, and no one appeared at yesterday’s hearing representing BetOnSports. U.S. attorney Catherine Hanaway said that was just one more step along the path of not respecting the law. Paul D’Agrosa, an attorney for DME Global Marketing, which did business with BetOnSports and was named in the indictments, said those who did not show up were perhaps “thumbing their nose at the government. We do not think much of this case either.” Carruthers’ attorneys were trying to arrange bond, but prosecutors objected, saying he was a flight risk. The governor of Pennsylvania, Edward G. Rendell, politely rebuffed three state senators trying to amend provisions of slots gaming in the commonwealth yesterday. Rendell sent a letter to the three -- Jane Orie, Bob Regola and John C. Rafferty Jr., telling them he would not accede to their request for a special session of the legislature to consider changes in Act 71, the Pennsylvania Race Horse Development and Gaming Control Act. Rendell said he shared their interest and has assured safeguards, but would not support changes “that would slow implementation of Act 71 and delay providing $1 billion in property tax relief to the people of Pennsylvania.” Rendell told the senators that he remained ready to discuss changes, but did not see the need to call the General Assembly into Special Session. He said that instead “the General Assembly can convene in regular session at the convenience of the members to consider and enact legislation” that could implement changes he proposed in the legislation, including one that would preclude any public official and their immediate families from owning any interest in any entity regulated by the act. WAPLES’ INJURIES SERIOUS Ontario driving star Randy Waples, injured along with Jack Moiseyev and Keith Oliver in a threehorse spill at Mohawk Raceway Sunday night, remains hospitalized. Both of his arms and hands are in casts, the result of two broken wrists, two broken elbows, and broken carpal bones in his hands. Doctors also suspect possible soft tissue damage in his neck. Moiseyev suffered severe lacerations of a forearm, requiring 15 staples, and Oliver, whose horse started the chain reaction when it fell in the final turn, has a broken collarbone. Moiseyev and Waples, trailing Oliver’s horse, were unable to avoid the fallen pacer. Waples will remain in Milton, Ontario, hospital until tomorrow, and will be sidelined and out of action for at least 8 weeks. ESTOK MODERATOR AT THE SPA HTA Chief Counsel and Secretary Paul Estok served as a panel moderator today in Saratoga Springs, NY, at Bennett Liebman’s annual Racing Law conference of the Albany Law School. BERRY TO HEAD POMPANO PR Veteran harness racing writer John Berry has been named Public Relations Manager for Racing for Pompano Park. New Senior Director of Racing Operations Steve Wolf announced that Berry, former national president of the U.S. Harness Writers and current president of the Florida chapter, “has played just about every instrument in the public relations orchestra.” 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 August 2, 2006 WAIT ‘TIL THEY’RE WARMEDUP NOT EXACTLY SPEED OF LIGHT Charlie Hayward of NYRA and Tim Smith of wherever he happens to be traded punches yesterday at the Racing Symposium in Saratoga Springs, NY. Smith was on a panel discussing the bidding process for NYRA, and in the question-and-answer session that followed the formal presentations Hayward rose in the audience and asked Smith to explain his role with Empire Racing Association, one of the bidders for the NYRA franchise. Smith replied that he did not think the symposium was an appropriate place to discuss the matter, but also revealed that he is an investor in Empire, a fact criticized by Hayward, who said Smith had not disclosed before appearing on the panel that he held an equity interest in Empire. Smith told Daily Racing Form “it was better to have this whispering campaign, that I know (NYRA officials) have been conducting, out in the open, and have a chance to respond to it.” He was not, however, the one who brought it out into the open. One thing appears certain in these early sparring rounds. The fight is likely to get dirty. Money is flowing like wine, with “The People’s Lawyer,” New York attorney general Eliot Spitzer, reportedly getting most of it, including $200,000 from Kentucky thoroughbred horse breeders and others interested in who gets the NYRA franchise. A Spitzer spokeswoman said the attorney general is not moved or influenced by campaign contributions. Senate president Joe Bruno has been accused of accepting free airplane rides all over the place. At yesterday’s conference, NYRA’s chairman, Steven Duncker, a panelist at the conference, presented numbers he said show 7 of the top 10 tracks in average purse distribution in America are not-forprofit operations, including of course NYRA’s three in New York. One thing in short supply yesterday was oratorical skill, with the presenters, including jockey Jerry Bailey, less than eloquent. Excelsior officials would not comment on Bailey’s compensation deal. The California Horse Racing Board revealed yesterday that positive morphine test results against trainer Bobby Frankel had been dismissed. The charges did not stem from positives last week, or last month, or last year. They concerned charges filed six years ago, in June of 2000, when a Frankel runner named Mohave Moon finished third in the Californian Stake and flunked his test. Mike Marten, speaking for board executive director Ingrid Fermin, said the deliberations were not quite as long as they seemed. Martin said an agreement to dismiss actually was reached near the end of 2004 by then executive director Roy Wood, then chairman Roger Licht, and super lawyer Neil Papiano. The agreement, however, was “never culminated,” which we presume means announced, but now, six years and two months after the infraction, Frankel is home free. The announcement was part of a clearing of backlog cases left over from the previous administration, Martin said, calling that task “a priority” of the present board. HEAD BUTT FOR AZ RACING We all know what a splendid sport soccer is, providing wholesome examples for kids like head butts that flatten opponents. Yesterday Tucson lost its only pari-mutuel horse track when Pima county supervisors unanimously agreed to move Rillito Racetrack to nearby Marana, and convert Rillito’s central Tucson location into 18 lighted soccer fields. The track’s death notice does not take place until 2010, but its stable area will be torn down after the 2007 season. To stay alive until 2010, Rillito would have to build another 300 stalls to accompany the 250 that will be left after another 150 are torn down. “They’re so antsy to get us out of here,” the president of the Pima County Horsemen’s Association, Tim Kelly, said, “they’re tearing down barns already.” 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 August 3, 2006 HTA ART CATALOG NOW ONLINE In determining which horsemen’s group would repHarness Tracks of America’s 2006 art catalog, resent horsemen, it took the existing group’s word containing 283 works of equine art in full color, is for membership numbers and rejected the comnow online on the home page of the HTA Web site, peting group’s claims. Now, as an opening date www.harnesstracks.com. Each of the paintings, nears, it suddenly announces sub-par conditions bronzes and woodcarvings is enlargeable with the in various areas and says in effect it doubts they click of a mouse, and all will be offered for sale in can be corrected this year. a two-day auction Friday and Saturday mornings, Oct. 6 and 7, in the Tattersalls Sales Arena in Lex- PLAIN TALK, LOUD AND CLEAR ington, KY. The auction is part of Grand Circuit One of American horse racing’s really straight talkactivities at HTA’s member Red Mile, and as usual ers and writers is Steven Crist, publisher of Daily all net proceeds of the sale go to the HTA College Racing Form. He fires from the hip, takes no prisScholarship Fund. Track operators, as always, are oners, and is not intimidated by high office or fiurged to avail themselves of the art for major race nancial fortunes. trophies, office or dining room or other area decoration at their tracks, or personal use. Live tele- Speaking of the babble at the Albany Law School’s phone bidding can be arranged through the HTA annual racing law symposium Tuesday in Saratoga office, and no buyers’ premium is charged at the Springs about who gets the NYRA franchise, Crist auction. called it just what it was, a “rehearsal” that will WHO DO YOU BELIEVE? The owners and operators of Vernon Downs announced this week that they would begin racing at the track -- dark in dispute for almost two years - on August 26. The ink no sooner was dry on their release than officials of the New York Racing and Wagering Board, who control racing in New York state, said it was not likely that racing would return to Vernon Downs this year. They said state officials had inspected the track last month and decided it did not meet the standard requirements for racing. They said improvements were needed in the paddock area, grandstand, judges’ booth, stables and veterinarians’ offices, and on the racing strip itself, and that the track must show all employees are properly licensed. Vernon officials said they still hoped to have all problems corrected by the end of the month. Some strange things have been going on with the Racing and Wagering Board in arriving at its decisions on Vernon Downs. mean little when a new governor and legislature are in place next year. He also called the bad oratory “a complete waste of time.” It has been noted by many observers that the bidders for NYRA’s franchise are, as Crist put it, motivated only by the fact that Aqueduct is going to have a massive VLT casino, and Belmont could get one down the road. The now folded “Friends of New York Racing” -- most of them far removed from New York - portrayed themselves otherwise, as deeply interested in the welfare of racing in that state. Even now, a curious mix of contributors has poured money into the coffers of the likely next governor of New York, Attorney General Eliot Spitzer. Another influential racing journalist, Ray Paulick, editor-in-chief of The Blood-Horse, called the franchise bidders “contenders and pretenders.” Much of the pretending was their avowed deep concern for New York state horse racing. None mentioned harness racing. It would be interesting to know their views on that subject in New York state, but we can guess. 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 10 YEARS, $100,000 FINE That was the proposed penalty announced yesterday by the Ontario Racing Commission against Todd Gray, trainer of the $1.3 million winning pacer Rair Earth. Gray’s license was suspended immediately after tests confirmed the presence of erythropoietin/darbopoietin, better known as EPO, in three of his horses, including Rair Earth. Gray, out of Dundas, Ontario, is 34. In 2004 his stable won $110,000. Last year it won $939,795 and 56 races. This year, with a third of the season still to come, his stable has won $944,773 and 52 races. In announcing the ORC’s executive director, John Blakney, said, “Simply stated, medication control means only using medications or products that have a therapeutic value to the horse. Such control measures are essential in order to maintain the health and well-being of the horse, the integrity of the industry, and the public confidence.” “COMING FROM EVERYWHERE” That is how the Pittsburgh Post-Gazette describes the changes being proposed by legislators of both parties to Act 71, the slots-enabling legislation in Pennsylvania. One state senator, Jane Orie, is renewing her efforts to do away with the provision calling for middleman companies known as slots suppliers/distributors, who in an orgy of patronage would buy slots from manufacturers and resell them to racinos and casinos. That change was passed by the Senate in June, but was not acted upon in the House. Another proposed change is in the way the seven-member Gaming Control board votes. Currently at least five members, including all four named by the General Assembly, must approve an applicant. Any one of those four can now block the application with a veto. Senator Jeffrey Piccola wants that arrangement changed so that a majority vote of four of the seven members will prevail. August 4, 2006 Both Senator Orie and Senator Piccola want to remove a provision that permits elected public officials to own up to 1% of a casino company, and give the state attorney general greater power than county district attorneys in conducting investigations, which is not now the case. On Wednesday, three other senators proposed changes, one banning lobbyists from making political contributions to public officials, currently allowed. Lobbyists for IGT, the biggest slots manufacturer in the world, have given $58,000 to Pennsylvania politicians. Another casino lobbyist, Stephen Wodjak, had two minor children listed as investors in Keystone Gaming, another slots supplier. How these proposed changes fare will not be known before Sept. 19, when the legislature is expected to return from its current recess. CHURCHILL, MAGNA IN NY BID Churchill Downs Inc. and Magna Entertainment Corporation announced today that they have entered into an agreement “to cooperate” in the bidding process for the New York Racing Association franchise, up for grabs. The announcement said CDI and MEC “look to join other New York racing and business entities interested in forming a larger group to bid on the NYRA franchise,” but did not specify which or any groups. MEC boss Frank Stronach told a teleconference that “it is not the goal of either MEC or CDI to control New York racing. Our intention is to provide our companies’ collective expertise to a bid group comprised of prominent New York enterprises and others.” $1.5 MIL HAMBO SATURDAY A supercharged $3.8 million Meadowlands card, featuring the $1.5 million Hambletonian and the $750,000 Hambletonian Oaks, is on tap tomorrow. The Hambletonian will be televised nationally (CBS) 2 to 3 p.m. EDT. 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 August 7, 2006 VERNON GETS TEMP SLOTS OK THE BATTLE FOR OHIO Nevada Gold & Casinos, which owns 40% of American Racing and Entertainment, which owns 90% of Vernon Downs (still with us?) announced over the weekend that it has received a temporary license to operate VLTs at Vernon. Exactly what that means in the context of Vernon as an operating entity is uncertain, because the New York Racing and Wagering Board says certain structural improvements still must be made before it will allow the track to open. We presume this covers the racino. Nevada Gold can take some consolation in the press coverage it is receiving on its Tioga Downs operation. Newspapers in Binghamton, Wilkes-Barre, PA and other area sites have been generous in both coverage and praise of the operation, and the latest very solid story appeared in yesterday’s Syracuse Post-Standard. Under a headline that read, “Tioga Downs serves as a model for Vernon,” the newspaper’s Glenn Coin, who has covered the Vernon story from its start, wrote that Jeff Gural has brought Tioga out of bankruptcy and “transformed it into a familyfriendly race track and casino,” and says Gural’s group plans to do the same at Vernon Downs. Coin says Tioga “has seen big crowds on weekends, has provided entertainment for senior citizens and families, and has boosted sales at local businesses.” One local businessman told him sales had increased 10 to 15% since Tioga Downs opened. Coin wrote about the themed decor of Tioga, “from brightly painted murals to the carousel hoses that flank the entrance to the gaming floor. Beeping video slot machines surround the Carousel Bar, and one area of the gaming floor is called the Funhouse. Wall-sized murals depict horse races, and midways with rides and games.” Gural and his associates can be proud of Jason Settlemoir, the former USTA employee who has done an enthusiastic and highly effective job with publicity for Tioga Downs. A battle rages in Ohio between slots supporters and opponents. The tracks and their associates trying to get the issue on the November ballot are doing extremely well, having collected some 625,000 names. Only 322,000 valid signatures are needed for a proposed constitutional amendment, and the names were delivered to Secretary of State Ken Blackwell, a slots opponent, in 187 boxes in August 1. Under the track-supported plan, the slots platform, called Learn and Earn, would use some $800 million a year from VLTs to finance scholarships for Ohio students at Ohio universities and colleges. Charlie Ruma, Beulah Park’s boss and chairman of the Learn and Earn Committee, thinks Ohioans can see the benefit of slots for this purpose. The Ohio Counsel of Churches and the Ohio United Methodist Anti-Gambling Task Force is contending many of the signers were intentionally misled by workers collecting signatures. It would appear Ohio voters are intelligent enough to understand what $800 million a year means to the education of their children. The Cleveland Plain Dealer, noting that “chances are good that every voter will have a chance to weigh in on the issue,” says editorially that “the question now is how many of those votes will be truly informed ones.” About as many, we would guess, as those casting ballots in a federal election, given the information provided by Washington. The federal government, of course, would not mislead anyone. SCOTT ON THE HIGH SEAS We reported here last week that the peripatetic Shawn Scott was in Guam, seeking to install slots there. Turns out he sailed there from the Northern Mariana Islands, where he told officials, “We are very excited about coming to Saipan and launching our Asian financial business from here.” In the spirit of international comity, God bless the Marianas. 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 A MAJOR DRUG BREAKTHRU In one of the major developments of the year in racing, the Pennsylvania Equine Toxology and Research Laboratory, a Pennsylvania Department of Agriculture operation in West Chester, working in close collaboration with the New Bolton Center of the University of Pennsylvania vet school, has developed a test for EPO, until now undetectable. Dr. Larry Soma, the veteran and highly regarded equine research director at New Bolton, reported the success of the research, and the Ontario Racing Commission, a leader in racing, quickly used it to break a case, suspend a trainer, and recommend that he receive a 10-year suspension and $100,000 fine. The trainer, Todd Gray, rose to some prominence in the last two years with the pacer Rair Earth, a winner of $1.3 million. That horse and two others trained by Gray tested positive to the new test. Dr. Soma and laboratory director Dr. Cornelius Uboh worked on the revolutionary test, starting two or three years ago with oxyglobin, a simpler substance than EPO but also protein-based. Their ultimate goal, now reached, was to isolate the EPO protein. “We first were able to extract the protein from plasma,” Dr. Soma said, “through the work of a team led by Dr. Eric Birks. Then Dr. Fuyu Guan, who works closely with Dr. Uboh, was able to develop a brand new method of breaking apart the protein of the human EPO molecules into small fractions called peptides, thus allowing positive identification of EPO itself, using very sensitive liquid chromatographic tandem mass spectrometry technology. Dr. Guan has been working on EPO and Darbepotetin-Alfa and conducting experiments with research horses that have been administered EPO, and he was able to use that informa- tion as a model. August 8, 2006 “We have optimized the method, and today we are able to make the positive EPO/Darbepoetin-Alfa identification, not just the presence of antibodies that may be produced in the horse by the administration of human EPO in horses.” Both Dr. Uboh and Dr. Soma are confident about the ability of the tests to stand up under legal or other scrutiny. When asked about that, Dr. Uboh without hesitation replied, “They can send these tests anywhere in the world for verification.” So the scientists have caught up with the crooks, at least on EPO, and the discovery should greatly temper use of the illegal medication. The willingness of the Ontario Racing Commission and its laboratory to send samples to a laboratory outside their normal testing protocol, and to bear the considerable price of the sophisticated new testing, is indicative of how racing as an industry can deal with drugs that are expensive and difficult to find. Harness and thoroughbred horsemen in Pennsylvania both contribute to the Toxolgy and Research Laboratory, as do both racing commissions in Pennsylvania. 21 IN THE MEADOWS’ ADIOS Braved by the absence of the dominant 3-year-old pacer Artistic Fella, 21 colts and geldings dropped in the entry box for the 40th edition of the late Delvin Miller’s pride and joy: the Adios. The classic for 3-year-old pacers, one of the few left contested in heats, will feature Saturday’s card, with three $50,000 eliminations and a $300,000 final. Artistic Fella was not nominated to the race, which has no supplementary payments, so virtually all of the other top 3-year-old pacers in the sport are taking a shot at the Race for the Orchids. Post positions were to be drawn tonight. 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 VOTERS REBUFFED AGAIN IN FL It is not the first time, of course, that Florida voters have been told they don’t count. Or can’t count. But yesterday, by a vote of 2-1, the First District Court of Appeals in Tallahassee dealt what the Miami Herald called “a major blow” to slots in Broward county, reinstating a challenge to the state constitutional amendment voted two years ago. The court sent the case back to Circuit Judge Nikki Ann Clark, who had ruled that the election had cured any improper signature gathering, as charged by the Humane Society of the U.S. and GREY2K USA. The appeals court majority said, “It is clear that a favorable popular vote cannot cure deception.” The appeals court ruled that a trial is necessary to determine whether Floridians for a Level Playing Field, of which Isle of Capri is a member, obtained the required number of signatures to place the constitutional amendment on the ballot in November, 2004. The appeals court decision, the Herald pointed out, “could affect not only the Broward parimutuels but also the three cities hoping to share in the good times from the parimutuels; public schools, which were supposed to get tens of millions of dollars in new slots money; and the agreement that the state is negotiating with Indian tribes seeking the same Las Vegas-style slot machines.” Isle of Capri immediately announced that the reversal of the lower court decision would be challenged, perhaps by a petition for rehearing by the appeals court en banc, or by filing a motion for certification to the Florida Supreme Court. Isle also said it is proceeding with the development of its racino at Pompano Park and does not anticipate that yesterday’s court decision will impact the opening of the racino in early 2007. August 9, 2006 “CLEANEST GAME IN TOWN” In one of the most pleasant and surprising stories of the year, ESPN.com today carries a long story by Bill Finley, who writes for that news outlet and The New York Times, in which he lauds harness racing’s security efforts through the use of detention barns and concludes, “Harness racing may not be for everyone. But it is the cleanest game in town.” Finley, who writes thoroughbred racing for the Times, also wrote, “Harness racing, and the Meadowlands in particular, is trying a lot harder than the thoroughbred game to clean up the scourge that is illegal drugs. Our sport could learn a lot from their sport.” Bill quoted Chris McErlean, vice president of racing operations at the Meadowlands, liberally and favorably on the Meadowlands’ detention barn policy, including McErlean’s observation that “as far as short-term effects on a horse, something has to be given 6-8 hours out, so this certainly cuts down tremendously on the problem....I wish testing procedures were a lot better and more conclusive. I’d love to get rid of the detention barns and have a testing system where there would at least be some fear. I wish there were a system where the testing was better and if you got caught you know you are going to get penalized. Right now, that’s not something I would say we have a full degree of confidence in.” The new test for EPO, announced last weekend, can provide much of what McErlean is looking for. POCONO GETS $30 MIL REFUND The Mohegan Tribal Gaming Authority has released details of the $30 million refund it will receive from Penn National Gaming as an amendment of its original purchase agreement of Pocono Downs from Penn National. Mohegan Sun will receive five installments -- two of $7 million, one of $6.5 million, one of $6 million, and one of $3.5 million -- on five anniversaries of the opening of slots at Pocono. 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 August 10, 2006 FED ARANESP BUST IN KY MOHEGAN HAPPY, STAYS IN PA Another alleged drug smuggler has bit the dust. It’s a hard way to get rid of rats, but if you have to do it one at a time it’s worth the wait and patience. This time federal agents, reportedly assisted by Standardbred Investigative Service agents, arrested one Joey William McMahon, and obtained an indictment in United States District Court for the eastern district of Kentucky, charging McMahon with intentionally distributing oxycodone, a Schedule II controlled substance, and Aranesp, a drug that had been misbranded. These are violations of 18 U.S.C. § 1952 (a)(3), 21 U.S.C.§§ 231 and 333(a)(2) of the federal code. Happy, or at least satisfied, with a $30 million rebate from Penn National in the sale price of Pocono Downs, the Mohegan Tribal Gaming Authority has announced it will not encamp in Pennsylvania. Instead, it will move forward with its huge $200 million commitment to renovate the racetrack and build a 400,000-square-foot racino at Pocono. The Downs’ president and CEO, Bobby Soper, said the track has rescheduled a two-day job fair for midSeptember, an event that had been canceled two months ago when an issue over local taxes arose. The settlement with Penn National also eliminates a buyback provision in the original sale, and Penn National announced the amended agreement finalizes that sale. In addition, Luzerne county officials said yesterday they would help Pocono Downs prepare applications for up to $3 million in state economic development grants to offset any initial losses. Luzerne county commission chairman Gregory A. Skrepenak said of the move, “We think this show of good faith in Mohegan Sun will pay off one thousand fold for the people of Luzerne county in the years to come.” He called the project the largest in Luzerne county history. Count 1 of the federal indictment carries a penalty of not more than 20 years imprisonment, not more than $1 million fine, and a term of supervised release of at least 3 years. If a prior drug penalty is found, the penalty increases to not more than 30 years imprisonment, a $2 million fine, and a term of supervised release of at least 6 years. Count 2 carries not more than 20 years imprisonment, not more than a $500,000 fine or twice the value of the property involved in the transaction, whichever is greater, and a term of supervised release of not more than 3 years. Counts 3 and 4 carry not more than 3 years imprisonment, not more than a $10,000 fine, and a term of supervised release of not more than 3 years, plus mandatory special assessment of $100 per felony offense. That should be enough to keep Mr. McMahon off the streets awhile. We will keep you apprised of SIS participa-tion, if involved, when and if we hear about it officially. A HARNESS OPPORTUNITY Two of the best known racing personalities in the country -- Bill Finley of the New York Times and ESPN, and Dave Johnson, also with ESPN and one of the game’s best known racecallers -- will host a racing show called Down the Stretch on Sirius satellite radio channel 125 starting this Saturday. The first half hour of the show will cover harness racing, and the sport should give serious consideration to pitching in and helping the project financially with sponsorship money. If we don’t help underwrite projects like this that pay heed to harness racing, we lose opportunities that are rare and far between. Contact Stan for details. 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 August 11, 2006 SCI GAMES IN WITH EMPIRE DOINGS OF THE WEEKEND In the wild scrambling to join sides with bidders for the New York Racing Association franchise, Scientific Games has landed in the camp of Empire Racing. The company says it will lend its expertise to Empire in that company’s bid for the NYRA jewels. Scientific Games currently is a major supplier of lottery products to the New York State Lottery. The Meadows celebrates its biggest day tomorrow, with the $450,000 Coors Delvin Miller Adios. Twenty-one declared in, requiring three eliminations and a final. TWO VIEWS ON MILKSHAKES With EPO the cocktail of choice these days, California is still trying to catch up on milkshakes. Dr. Rick Arthur, who is leaving his highly successful private practice and taking over as equine medical director for the California Horse Racing Board next month, told commissioners Richard Shapiro and John Harris and executive director Ingrid Fermin, “We had a disproportionate number of samples over 36 (millimoles per liter of blood) but less than 37. We had nine over 36 during the Hollywood Park meet, and two trainers were responsible for six of them.” Arthur said, “it is encouraging that we have had none during the last six racing days, since we started a new policy of sending out warning letters two weeks ago. We’re dedicated to modifying the program to everyone’s benefit to prevent bicarbonate loading. We have convinced the slow learners that we are serious about it.” Trainer Jenine Sahadi, however, had a much different view of the results. She told the panel, “They’re not slow learners; they’re geniuses. Two years, and they’ve suffered no consequences. You’ve send them letters, but they have never been identified.” Executive director Fermin said the board would release names as soon as it adjudicates pending cases. Shapiro said, “We wantt o make it as transparent as possible.” Still ahead in California: the EPO issue. At Rockingham Park, memories of days past. The track will present ‘Past Champions Reunion Day’ Sunday, with former Rock greats returning to do battle. Among the stars competing are Bruce Ranger, Jim Doherty, Peter Blood, John Hogan, and Paul Battis, all former standouts at Rockingham. Buddy Gilmour, Ted Wing and Gary Kamal also have been invited. At Tioga Downs, the transplanted Dr. Harry M. Zweig Memorial, formerly raced at the Syracuse State Fair. The 32nd renewal of the race named for the veterinarian largely responsible for the New York Sire Stakes carries a total purse of $296,000, with two $120,000 divisions for colts and a $56,600 filly division. Three Hambletonian starters -Algiers Hall, Global Glide and Race Fan -- are among those entered. DOWN THE STRETCH DEBUTS A new racing show, Down the Stretch, makes its debut tomorrow on Sirious satellite radio, channel 125, at 10 a.m. eastern time. Racing writer Bill Finley and announcer Dave Johnson will host the show, and HTA’s Stan Bergstein and Meadowlands announcer Sam McKee will be guests. ELLIOTT ON HTA’S ‘WORLD’ Trainer Steve Elliott, enjoying his greatest year with the 3-year-old pacing king Artistic Fella, the $2.5 million winning pacing mare Burning Point, and the undefeated 3-year-old trotting colt Donato Hanover, is Stan Bergstein’s guest on HTA’s World in Harness. Access the show from the HTA Web site home page. The Elliott interview will remain up thru Wednesday. 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 SCORE BIG ONE FOR THE FEDS The Great Waiting Room Caper worked. The bust of David Carruthers, chief executive of BetOnSports, the English online bookie, while Carruthers was changing planes at the Dallas-Ft. Worth airport, turned out to be game of falling dominos. BetOnSports, loyal as outfits like that can be, fired Carruthers, who did nothing but show bad judgment in flying through the United States. Shares of BetOnSports were suspended on the London Stock Exchange, and now the company has thrown in the towel, and fired 800 employees in Antigua and its headquarters in Costa Rica. It is moving to the less restrictive and furiously gambling grounds of Asia, announcing that “after thoroughly reviewing possible alternative business plans, we no longer consider the U.S-facing operations of the company....to be viable.” The directors of the company said they want to refund all customers’ monies, but said that would be “difficult” and would “depend on the company’s ability to persuade banks and cash processors to release the funds.” BetOnSports had been taking 70 to 80% of its bets from U.S. residents. If you are one of them, good luck! BetOnSports went public in July of 2004, raising $101 million, and ended the day with a first day market capitalization of $209 million. When trading was halted last month on the 17th of July, the shares were worth about $234 million. In its first quarter of this year, ending May 6, BetOnSports had taken in bets totaling $735 million and had 50,000 active players. Some of its largest institutional shareholders are funds controlled by a few people you know, or rather whose names you know: Goldman Sachs, Merrill Lynch and Morgan Stanley. I. Nelson Rose, the west coast gambling law guru who spoke at the HTA/TRA Congress in March, says that if the offshore operations are truly illegal and are racketeering, the people who finance them could be criminally liable. Federal prosecutors, savoring their victory, August 14, 2006 say they will continue prosecuting BetOnSports even though it has shut down its operations taking bets from U.S. residents. David Carruthers’ lawyer says the U.S. attorney in St. Louis, Catherine Hanaway, has approved conditions for release of the fall guy. Nelson Rose says BetOnSports closing down won’t hinder the government’s prosecution. “It’s like robbing a bank and on the way out changing your mind. You can’t give the money back,”Rose said. $1 MILLION VOUCHER WINNER A 56-year-old hospital laundery worker has won a $1 million grand prize in the NTRA’s “Mystery Mutuel Voucher. The winner, Fred Holland of Mounds View, MN, redeemed his voucher at Canterbury Park, where he does his betting. He is the first million dollar winner in 12 promotions dating back over six years. HARNESS LOSES A GIANT Don Fleming, one of Canada’s great harness racing writers with the Edmonton Journal and more recently a beloved employee at HTA member Northlands Park, has died at 86. HTA director Les Butler, writing an eloquent tribute to Fleming, had this to say, in part: “In the last few years he had battled serious health issues and, when he wasn’t at work his office sat empty and dark with the door closed. It was never suggested that we could or should replace him; or even that someone could fill in for him. When I was in the Race Office and he was there it was comfortable and joyous to see him; all was right with racing. It’s past and present were connected and you could retrieve any historical informaton simply by saying, “Hey Don, when was....? When his office was empty and dark, as it is today, you knew then, as we know today, that someone very precious and irreplaceable was missing. “ 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 $100,000 PLEDGE TO RMTC In the most significant acknowledgment by far from harness racing, the board of directors of the Hambletonian Society, individually and collectively, have pledged $100,000 to the Racing Medication and Testing Consortium. Hambletonian Society president and CEO Tom Charters has been a regular attendee at RMTC meeting, and obviously played the lead role in getting his organization to promise meaningful support to the research and standardization group. Dr. Scot Waterman, executive director of the RMTC, said of the gift, “The Hambletonian Society’s board’s leadership in helping the RMTC establish a permanent funding stream will allow us to continue our progress toward uniform medication rules and to continue funding scientific research that solves the industry’s problems.” USTA and HTA have been contributing smaller amounts to the RMTC, but USTA president Phil Langley, commending the Hambletonian Society, said USTA would be meeting shortly with Dr. Waterman and Frank Fabian of Standardbred Investigative Services to discuss funding mechanisms and where the money could best be used. “At our fall Executive and Finance Committee meetings this will be a priority on the agendas,” Langley said. VERNON QUALIFIERS, BUT...... They scheduled 11 qualifiers for 90 horses at Vernon Downs this morning, the first held at the track since more than a year go, but a meeting in Schenectady, a lot of furlongs away, will have much more to do with when the track opens for live racing. The New York State Racing and Wagering Board, which under its old persona arbitrarily decided the Harness Horse Association of Central New York represented a majority of horses at Vernon, finally decided to step in and try to r e solve the issue. It was mediating today’s meeting. August 15, 2006 Hopefully the board can end the rancor and bitterness between the HHACNY’s attorney Joe Faraldo and Vernon’s Jeff Gural, or at least modify it to get a contract signed. If that is done, only some construction renovations remain in the way of the racing board issuing a license, and getting harness racing reestablished in central New York. DID SOMEONE SAY “ELECTION”? There must be one close at hand, because New York’s state comptroller Alan G. Hevesi is issuing proclamations and recommendations again. As usual, the New York press printed every word he spoke, even though some of them were revealed as flawed by the man he wrote to, and his objections seem not to have been overlooked by the subject of his ire. Hevesi wrote to J. Patrick Barrett, chairman of the Ad Hoc Committee on the Future of Racing in New York, alleging that the Request for Proposal issued by the committee “fails to adequately address the recommendations of Getnick and Getnick (remember them) the high paid law firm hired to oversee earlier violations of rules by NYRA. Hevesi wants a supplement issued to the RFP to make sure all tracks provide safe, healthy and humane working environments for employees. No argument with that. He also wants assurances that rebate shops that get signals provide full disclosure, that drug testing should be in place, that all thoroughbred tracks should have monitoring barns, and on and on. A Barrett spokesman, Scott Reif, noting that the committee held four public meetings statewide earlier this year, commented, “Sadly, Mr. Hevesi couldn’t find the time to attend a single hearing or even submit written testimony.” There wasn’t an election pending then, Scott. Bennett Liebman of Albany Law School, commenting on the committee report, said, “It’s hard to say they weren’t factoring ethics in their report, given it’s 20% of the overall scoring.” 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 RCI, GLI FORM TEST ALLIANCE Racing Commissioners International president Ed Martin announced today that RCI had formed an alliance with the nation’s largest independent testing lab for gaming systems -- Gaming Laboratories International of Lakewood, NJ -- to offer independent testing of pari-mutuel wagering systems to certify that they are secure and operating as required. GLI services much of the Las Vegas gaming industry, and its president and co-founder, James R. Maida, said the company looked forward to working with racing to identify weaknesses in the pari-mutuel system and recommend ways to address them. Martin said, “Racing has never been held to the integrity standard other forms of gambling have been held to, and it has paid a hefty price in terms of horrible publicity and suppressed growth as a result. We believe we can help the industry minimize its vulnerability to fraud by those who would compromise the wagering system and satisfy the needs of the wagering public, regulators and track operators. Rather than fight the problem after it happens, would it not be better to prevent if from happening in the first place?” Asked if he envisioned the program as mandatory or voluntary, in view of veiled licensing threats when discussing security issues last winter, Martin said RCI and GLI “would work with anyone who is interesting in having the work done.” He said his first preference would be to see all components of the industry participate in the program, but that he realized it would play out differently in different jurisdictions. August 16, 2006 Carruthers did not have a dedicated line, and the Feds would not let him loose until he got one, so they could monitor his movements. He got the phone Monday, but it had some extras, like callwaiting, and the Feds said that would interfere with their tracking efforts. By yesterday, the phone company had removed only half the extra services. They are expected to complete the job today, and Carruthers is expected to make bail. See you in St. Louie, David, or will call you on your dedicated line. OUT WITH THE MIDDLEMEN! That’s suddenly the cry in Pennsylvania, and the governor, Ed Rendell, says he’ll sign a bill getting rid of the them if the legislature sends him one. With conditions. There was no reason in the first place, other than patronage or kickbacks, to have middlemen buy slot machines from manufacturers and sell them to tracks for their racinos. Rendell agrees, but wants four other changes if he is to sign the middlemen ouster. They are: Public officials and their immediate families to be “completely precluded” from owning up to 1% of gambling operations, as they can now. Violations of the gambling act to be subject to provisions of the state’s RICO rules. The state Gaming Control Board to have exclusive power to regulate and control gaming, without local governments having veto power. Rendell is willing to give “due consideration” to the concerns of local communities. FREEDOM A PHONE CALL AWAY Ready to make $1 million bail and settle in St. Louis with his wife while awaiting trial, former BetOnSports chairman David Carruthers discovered that the phone company stood in the way. Banning immediate families of casino owners and top officials, as well as the owners themselves, from making contributions to state politicians. Approve those, Rendell says, and the middlemen will be out. 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 August 17, 2006 VERNON GETS A DEADLINE SPA WAITS, SHOVEL IN HAND It’s a little strange when an attorney for one side in a dispute makes announcements for a racing board, but strange things happen in New York. The Utica Dispatch, reporting on a mediation session held in Schenectady on a horseman’s contract at Vernon Downs, reported that “a representative from the state Racing and Wagering Board could not be reached Wednesday,” so they turned to Joe Faraldo and printed his report of the meeting. Joe said the meeting ended about 5:30 p.m. Tuesday without an agreement, and then said that if there is no agreement on a contract by 5 p.m. next Wednesday Vernon Downs may not be allowed to resume live racing this year. Vernon’s general manager, Eric Persson, said, “We think we’re going to get it done. We’re anticipating an Aug. 30 start date. We are optimistic.” The racing board meets Thursday, Aug. 26. Voice mail only there today, so we’ll check with Joe to see what happens next week. That’s Saratoga Gaming and Raceway, waiting not only with shovel in hand, ready to break ground, but with $12 to $15 million in the bank, waiting for approval to expand its gaming and racing facility on Nelson Avenue in Saratoga Springs, NY. The city planning board is tentatively scheduled to meet with the state Lottery Division next week to discuss the plans. The state has completed its environmental review, and if approved the project will increase the racino’s VLTs to 1,724, add a 45,000square-foot addition to the racino with a two-story, 5,000-square-foot nightclub, and install a 300-seat buffet restaurant. The city has been trying for months to convince the Division of the Lottery that Saratoga Springs has a vested interest, and that issue apparently has delayed the Office of General Services from issuing permits. FREEHOLD PLANS A PALACE Freehold Raceway has asked the New Jersey Racing Commission to approve a plush 759-seat off-track betting facility in an empty supermarket in Dover Township. Called “The Favorites at Toms River,” the facility would be upscale, according to Freehold Raceway president Don Codey, who told the board, “It will be done in a first-class manner,” Codey said. “The interior will have granite, marble, fine woods, rugs.” A number of prominent New Jersey figures, including Assemblyman Ronald S. Dancer, Assemblywoman Virginia E. (Ginny) Haines, state Senator Andrew R. Ciesia, former Dover police chief Richard Clement, and New Jersey SBOA representative Leon Zimmerman, spoke in favor of the Freehold plans. The facility is projected to generate $40 million in handle annually, with $2 million going to purses at Freehold, Monmouth Park and The Meadowlands. NEW GM AT PRAIRIE MEADOWS The board of directors of Prairie Meadows, in a 10-to-2 vote, has chosen Gary Palmer as the new general manager of the track and racino. Palmer, a veteran Prairie official who was second-in-command to Bob Farinella, won the job over four other candidates from out-of-state with casino experience. Palmer is a former small business owner from Altoona, where the track and racino are located, and was first hired at the track in 1998 after serving a term as a board member. OTB TESTS GET OK IN ILLINOIS The Illinois Racing Board has approved antibody EPO tests, with any horses testing positive to be placed on the steward’s list and excluded from racing until a clean test shows no presence of antibodies. The board also approved, at the request of Hawthorne, Maywood and Balmoral Parks, licensing and regulation of off-track stabling facilities for harness horses. The runners already were covered by a rule. 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 IT’S A GO FOR HIPPIQUES Paul Massicotte’s Attractions Hippiques is set to roll in the province of Quebec, where Massicotte has promised a new day for harness racing. Attractions Hippique and the Societe nationale du cheval de course, better known as SONACC, signed an agreement yesterday for sale of Quebec’s four tracks to Massicotte’s company. With the agreement signed, the way is clear, once racing licenses and permits are issued, for construction of a new Hippodrome de Montreal, once known as Blue Bonnets to the harness racing fraternity, north of Montreal, and renovations and upgrading of harness tracks in Quebec City, TroisRivieres and Aylmer, all purchased, with their OTB Hippo Clubs, by Massicotte. Purses will be increased as soon as the licenses are granted, and Massicotte, reasserting his belief in the future of harness racing in Quebec, says he and his highly professional team “will design high quality entertainment centers to complement horseracing activities, which will appeal to the general public.” Florent Gagne, president of SONACC, said the agreement signed yesterday covers not only transfer of assets, but also major commitments on purses and other racing issues. DEEP TROUBLE IN XANADU The governor of New Jersey, Jon Corzine, is no stranger to high finance. He formerly was chairman of the Goldman Sachs investment banking firm, so when he says he is “deeply troubled” by the shaky status of the Mills Corporation, developer of the huge Xanadu entertainment and shopping complex at the Meadowlands, he commands attention. Corzine spoke after the newsletter of a financial analyst triggered a 20% plunge in Mills stock yesterday, coming on the heels of a 30% drop a week ago. The analyst, David Fick of Stifel Nicolaus, is a former executive of Mills, and he wrote to investors that Mills would be “throwing money down a hole” if it goes forward with Xanadu. August 18, 2006 Adding insult to injury, he wrote that “We now believe that hole is deeper and wider than we anticipated.” Mills claims it has “the capability of obtaining the requisite debt and equity financing,” but the Securities and Exchange Commission, in a recent filing, said Mills acknowledged that it was uncertain if it could obtain additional construction loans because of a lack of signed leases to use as collateral. Gov. Corzine said, “I am deeply troubled, not by what I read in the newspapers, but by what I understand about the financial picture of the Mills Corporation. We are deeply involved in this and will continue to be.” He said he believes in the overall concept, but his predecessor, former governor and state senate president Richard Codey, does not. He said he thought it might be time “to take this project off the respirator.” BOARD SAYS NO IN CALIFORNIA The California Horse Racing Board yesterday said no to tracks that had asked for uncoupled entries as a solution to short fields. The board voted, 5-0, against uncoupling entries of horses with common ownership, and went a step farther by saying it questions whether horses with the same trainer should be allowed to run as separate wagering interests. Hollywood Park and Bay Meadows reported increases of 13 to 26% in an experiment allowed by the board on uncoupled entries, but board chairman Richard Shapiro said he was troubled by public perception of the practice. “I feel personally that it borders too close on the integrity of the game. If we did not have a shortage of horses, I don’t think we would be having this discussion. While no problem seems to have surfaced at this point, I’m troubled that we could be playing with the integrity of horseracing. One problem in the public’s mind is one too many.” New board member John Amerman said he saw no compelling reason to change. 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 August 21, 2006 FIRST THINGS FIRST? MAYBE NOW HEAR THIS, MARYLAND We weren’t able to make the Jockey Club Round Table this year, but reports this morning on yesterday’s Round Table indicate that concerns about the future of racing in New York took precedence over those of national interest. Of the stories we have seen, only Matt Hegarty’s in Daily Racing Form even mentioned the Equine Drug Research Institute in any depth, and some did not mention it at all. The Institute, reported as now up and running, has famed Dr. Don Catlin in some leadership role, but that role and funding of the Institute itself has been conducted in near secrecy in the year since the idea was announced at last year’s Round Table. Yesterday’s report on it, which was presented by Rogers Beasley, the director of racing for the Keeneland Association, did little to clarify the picture other than to say the $3 million startup goal had almost been reached. Keeneland led the financing effort, presumably with strong support from Ogden Phipps, a longtime proponent of better testing. Beasley reported that the Institute is working with baseball, a pharmaceutical company, and others on projects. While the Institute may have reached its financial goals, the Racing Medication and Testing Consortium, of which HTA and USTA are members, has not. Executive Director Dr. Scot Waterman told the Round Table that financial support generated to date is not enough to sustain the Consortium’s budget for 2007. The news reports of the Round Table dwelt mainly on other matters, including the political slugfest for the New York Racing Association franchise, synthetic tracks, and an agreement between the Thoroughbred Racing Protective Bureau and InCompass Solutions, a Jockey Club subsidiary that will provide “information technology services” to the TRPB. Despite the lack of coverage, Rogers Beasley had it right, saying of drug testing, “There is simply no more important issue in racing.” Governor Robert L. Ehrlich Jr. of Maryland, who has fought a long and hard but unsuccessful battle for slots at tracks in Maryland, says they will be legalized next year if he is reelected. Speaking at the Maryland Association of Counties annual convention, Ehrlich predicted that a school construction budget “that will create 21st century places of learning with the resources to reach every student in the state and a funding source that will pay for it (slots) will pass next year.” His nemesis and bitter foe on slots, House Speaker Michael Busch, was in the audience, and was quoted by the Baltimore Sun as saying, “Why do you need slots if you have a $2.3 billion surplus?” HASTINGS BATTLE WINS A SLOT While Maryland is talking of future events, Hastings Park seemingly has won its battle to get 600 slots. The British Columbia Supreme Court has ruled that the rezoning of Hastings Park is legal, a decision that will allow for the slots. A determined opposition group, The Hastings Park Conservancy, claiming the parks board has jurisdiction over Hastings, says it will appeal the decision. The city of Hastings argues that Hastings Park is not a permanent park and is under city jurisdiction. WITH FRIENDS LIKE THIS..... The Newark Star-Ledger, with the Meadowlands at its back door and New Jersey’s racing industry and state green space ignored, yesterday gave graciously generous space to a long harangue claiming arguments for slots at the Meadowlands are based “on assumptions that are incorrect.” The long opinion letter sounds like an editorial, until one gets to the last line, giving readers an idea who authored the piece. It was written by Joseph A. Corbo Jr., president of the Casino Assocation of New Jersey. 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 August 22, 2006 BETTING PROTOCOLRELEASED ONE DOWN, ONE UP, SORT OF Eight of the most powerful racing organizations in North America announced today the release of Version 1.0 of their new Wagering Transmission Protocol, which is expected to transform communication of transactional detail betting information and establish a “host in control” wagering environment. The new protocol is owned jointly by Churchill Downs; Magna Entertainment; the New Jersey Sports and Exposition Authority; the New York Racing Association; the Jockey Club; the National Thoroughbred Racing Association; the Thoroughbred Racing Associations (TRA) on behalf of its 43 members; and Woodbine Entertainment Group. The Wagering Transmission Protocol will be licensed for non-exclusive use at no charge in perpetuity for all companies participating in legal parimutuel wagering. The ownership group, along with all North American-based totalizator companies, collaborated on the creation and documentation of WTP. Harness Tracks of America will be involved in the continued development and implementation of WTP, along with North American racing commissions through the Association of Racing Commissioners International, and the Thoroughbred Racing Protective Bureau. Today’s announcement included a request for comments and suggestions of Version 1.0 during the next five weeks. Tracks wishing to do so should submit their input in electronic text, with supporting documentation, to Wagering@ TRPB.com no later than Sept. 30, for consideration at a WTP working session scheduled for mid-October. The WTP document can be located online at http://www.traonline.com under “Important Links” on the right side of the page. Two interesting developments on the penalty front. The sport’s hottest trotting trainer, Trond Smedshammer, has been suspended for 30 days for a driving infraction in the Hambletonian. Smedshammer, driving Here Comes Herbie, was set down for bearing out and allowing another trotter trained by him, Blue Mac Lad, “to needlessly pass on the inside, which constitutes what is properly known as helping.” The suspension notice also included a note that Smedshammer “failed to maintain reasonable control” of his horse at the top of the stretch, driving in a careless manner.” The penalty notice said in the judges’ opinion Smedshammer’s actions affected the outcome of the finish of the Hambletonian. His suspension comes while the Meadowlands is dark and ends as the Grand Circuit meeting at the Red Mile gets underway in late September. He could, of course, be grounded elsewhere during the penalty period by reciprocal action. HTA CATALOGUES MAILED HTA’s 40-page full color art catalogues have been mailed to all member tracks. Additional copies are available from HTA. Ken Rucker was back in the news, as his horse Highland Pride A, which got him barred at the Meadowlands with elevated titers of EPO antibodies, passed retesting and was removed from the stewards’ list in New Jersey. That action does not affect the ban on Rucker racing at the Meadowlands, which still stands while Illinois decides what it plans to do about positive tests on Rucker horses there. ALL YOU WANTED TO KNOW.... About who stands to become a millionaire in Pennsylvania when slots licenses are granted. The state’s Gaming Control Board released the names of the 1,200 companies and individuals bidding for licenses, including the shareholders in the 22 companies in the hunt. A revealing list, including some big names who will become bigger if they are winners. 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 August 23, 2006 A MIRACLE IN XANADU A GOOD IDEA, 28 YEARS LATE What a difference a week makes. Last week the governor of New Jersey, Jon Corzine, and officials at the New Jersey Sports and Exposition Authority, were looking at disaster, with the Mills Corporation, developer of the huge Xanadu project at the Meadowlands, in financial trouble. There is a Santa Claus, Virginia, and he slid down the chimney with $500 million to keep the project on track, no pun intended. The savior is Thomas J. Barrack Jr., a 59-year-old former international finance lawyer who turned to real estate development and has established a worldwide reputation as a daring and savvy investor, a specialist in extremely complex real estate deals. Two years ago he and his company, Colony Capital, stepped in and saved the Fukuoka Dome, referred to as the Yankee Stadium of Japan, when it was in serious trouble. Now he is bailing out Mills on Xanadu, and there is a bright glow around the entire ambitious project once again. Barry Vinocur, the editor of an online real estate newsletter called REIT Wrap, wrote, “Governor Corzine must be feeling like somebody just delivered a huge Excedrin pill to his office. Last week, you couldn’t imagine how the project could go forward.” Carl Goldberg, chairman of the NJSEA, said, “This creates a new sense of excitement for prospective tenants who now know, without ambiguity, that the project will be completed. Colony is an extraordinarily capable real estate investor.” Morningstar financial analyst Ryan Dobratz concurred, saying, “It seems likely more retailers will flock to this location now that this seems quite viable.” Under the arrangement, Mills becomes a minority partner in the project. At least one New Jersey power, former governor and now Senator Richard J. Codey, a longtime Mills critic, has a want list for Colony. Codey says he would like an indoor ski slope, a Formula One racing attraction, and a minor league park at Xanadu. In another example that patience is a virtue, and that good things come to those who wait, ESPN has adopted an idea first put forth 28 years ago by the super promoter Bill King of Louisville, the father of Louisville Downs and the discoverer of Cassius Clay, better known after leaving Louisville as Muhammad Ali. In 1978 King, who had strong contacts with CBS television, gave them the idea that a horse race was a perfect sports vehicle for halftime of a football game. He just happened to have a race for them, the Kentucky Pacing Derby, at the time the richest race in the sport for 2-year-old pacers. The deal was struck, but by the time the race came around a series of events, including one of the longest last 2-minutes of a first half ever, and a change of command at CBS, resulted in just the race call, with no time for commentary. Now ESPN has announced it likes the idea, and will enable viewers of the 2007 Breeders Cup Stakes to switch from ESPN’s Monday Night Football game to ESPN2 to watch the race from the Meadowlands at halftime. You were way ahead of your time, Bill King. HERVE WHO? Many in today’s generation of harness racing fans are too young to remember the glory days of Herve Filion, who has won more harness races -- 15,154 - than any North American driver. He was the John Campbell of his heyday, a spectacular driver. He is not, however, the world’s leader in victories. Germany’s Heinz Wewering, who won his first race in 1965, won his 16,000th race Tuesday at Tor di Valle near Rome. Wewering has abandoned Germany for the abundantly richer purses of Italy. 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 August 24, 2006 VERNON SIGNS, GETS DATES DECKER SAYS NO TO SOLONS Vernon Downs and the Harness Horse Association of Central New York reached an agreement on a horsemen’s contract last night, and the New York Racing and Wagering Board reportedly approved a 30-day license this morning, enabling the track to resume live racing starting Aug. 31. The horsemen’s contract reportedly is a three-year package that includes a percentage agreement on earnings from VLTs at Vernon’s racino. The Utica Dispatch, reporting on negotiations yesterday, said a representative of the Racing and Wagering Board was not available. An official racing board release on licensing conditions, promised three hours ago, had not been received at press time. Tad Decker, chairman of the Pennsylvania Gaming Control Board, has taken some heat in the past for foot-dragging on getting slots underway in the Keystone state. Whether stung by the criticism or simply deciding this game had gone on long enough, he now has denied legislators’ requests for further delay in issuing slots licenses, and said they would be issued on Sept. 27, as scheduled, for racinos, and on Dec. 20 for non-track and resort hotel casinos. Several Republican legislators had asked Decker not to issue any license until Oct. 30 at the earliest, so that the legislature would have time to amend the slot law, now two years old, when it returns to work in late September. Decker and fellow Gaming Control Board member Jeffrey Coy told a news conference yesterday that homeowners and horse owners have waited long enough for financial benefits from the slots, and said the legislature “still has ample time” to amend the law this fall. The Sept. 27 licenses will be conditional, or temporary, for only 18 months, but Decker plans to make them permanent for racetracks on Dec. 20. Hearings on the track racino licenses will be held in Harrisburg Sept. 1112, with applicants questioned on character, financial and operational capabilities, positive and negative impact on their communities, minority and female hiring plans, and addiction-help programs. OHIO TO USE NEW EPO TEST The Ohio Racing Commission, following closely on the path blazed by the Ontario Racing Commission, announced yesterday it will send suspicious EPO samples to the Pennsylvania Equine Toxicology and Research Laboratory in West Chester, PA, which recently developed a new test that confirms actual presence of EPO, rather than antibodies to the drug. To our knowledge Ohio is the first U.S. jurisdiction to utilize the new test. In addition, the commission approved the purchase of seven blood gas radiometers to allow for prerace milkshake testing, rather than post race, thus enabling the scratching of horses with high readings before they race, rather than after. The new equipment will allow pre-race testing for amplified total carbon dioxide levels at all Ohio tracks, four harness and three thoroughbred. Commission deputy director John Izzo said of that development, “Now if a horse exceeds the 37 millimoles of TCO2 per liter of blood, he can be removed from the race, as opposed to discovering the problem after the race has been run. The board wants protect the integrity of Ohio racing.” NEW CHALLENGE TO OHIO PLAN Ohio’s secretary of state, Ken Blackwell, is determined to throw roadblocks in the way of the Learn and Earn slot initiative. Blackwell now says “miscounts” in the group’s gathering and submission of 624,625 signatures endorsing the idea could threaten having the issue on the November ballot. A number of county election boards are challenging the validity of the signatures, with Summit and Cuyahoga counties reporting as low as 4 of 10 valid. 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 August 25, 2006 THE DEAL AT VERNON DOWNS PATTI HOGAN GOES BIGTIME Here are details of the terms and conditions under which HTA member Vernon Downs will reopen next Thursday, August 31, after signing a contract with the Harness Horse Association of Central New York. Dr. Patricia Hogan, known to the thoroughbred world as the brilliant equine surgeon who saved Smarty Jones and Afleet Alex, but better known in the standardbred world as the beauteous wife of harness trainer Eddie Lohmeyer, is moving to lofty new heights. Currently chief surgeon at the New Jersey Equine Clinic in Clarksburg, she will be co-owner and chief surgeon at a new, 11,700square-foot, $7 million equine clinic near Belmont Park and Aqueduct in New York. Oddly, despite their prominence in the thoroughbred world, the New York Racing Association tracks have had no nearby major equine clinics, the closest being the University of Pennsylvania’s New Bolton Center, the Rood and Riddle Equine Hospital in Lexington, KY, and a clinic at Cornell University in Ithaca, NY. The new facility, which will include bone scans, treadmills and a surgical suite with state-of-theart technology for diagnostic treatment of most conditions affecting racehorses, including of course trotters and pacers, will be built on property purchased in the last year by IEAH Holdings, founded by Michael Iavaroane and operated by Richard Schiavo. IEAH became affiliated with top veterinarian Dr. James Hunt, who will manage the facility, be its head veterinarian, and will co-own it with Dr. Hogan. Hunt, widely respected in New York, said of the project, “As long as my management abilities are up to it, and Dr. Hogan’s hands stay as good as they are now, we’ll be able to provide really top notch diagnostic and surgical services. In true ecumenical spirit, harness racing is happy to share Dr. Hogan with the runners. The track will conduct a 30-day live meeting. It will conduct meetings of at least 90 days in 2007 and 2008 with live racing three days a week. It will give horsemen 8.25% of video lottery terminal revenue in purses on the first $50 million earned and 7.5% of the next $100 million each year. All purse money will be maintained in a secure, segregated purse account, with an accounting provided every two weeks. There will be a purse account of approximately $1.2 million this year. Improvements will be made in the stable area. A race accident insurance policy covering up to $100,000 a person will be provided. Eric Persson, Vernon’s new general manager, called the reopening announcement “the real deal,” and Vernon’s 800 slots are expected to open by the end of October. He expects the track will hire some 50 new employees. The owner of the Coachway Motel in Vernon, Scott Bellinger, said of that development, “People are going to be able to play and drink, and they can’t do that at Turning Stone,” the Indian casino just five miles from Vernon, where alcohol is not allowed. In another impending opening, Harrah’s Chester Casino and Racetrack will host its first equine performer Monday when the pacer Bobnoxious gives Chester’s new 5/8ths mile track its first harness workout. BROWN, HEBERT IN CAN. HALL Trainer-drivers Doug Brown and Jacques Hebert and pacers Armbro Emerson, Armbro Feather, As Promised and Run the Table were inducted into the Canadian Horse Racing Hall of Fame last night. 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 SCORE 1 FOR THE GOOD GUYS In a well-written, well-reasoned and well-timed response to an Aug. 20 anti-racing piece in the Newark Star-Ledger by the president of the Casino Association of New Jersey, legislative lobbyist and PR consultant Leon Zimmerman stated harness racing’s case logically, succinctly and successfully today. The Star-Ledger, New Jersey’s largest newspaper, gave Zimmerman’s piece exceptional play, spreading it — with an excellent harness racing action picture — across five columns. The earlier casino letter had warned that placing 5,000 video slots at the Meadowlands would threaten the future of Atlantic City and its casino. Zimmerman, a newspaperman for 17 years before taking his present job with the Standardbred Breeders and Owners of New Jersey, destroyed the specious casino argument, pointing out that “It is mind-boggling, if not disingenuous, for the casino industry to oppose slots at the Meadowlands as more of a threat to its development in Atlantic City than the slot machines at a new racetrack in Chester, PA, on the Delaware River, just outside of Philadelphia, or in Yonkers, NY, 12 minutes from the George Washington Bridge.” He acknowledged state subsidy support for racing, which expires next year, and noted that “every discussion (of slots at the Meadowlands) by the horse racing industry has always called for a partnership with the Atlantic City casinos so that they would realize a profit, not face competition.” Zimmerman quoted state Agricultural Department figures showing that New Jersey has more than 15,000 racehorses valued at more than $365 million, and some 81,000 equine acres valued at $2.5 billion with labor earning $111 million a year. He noted millions of dollars in tax revenue from the purchase of supplies, equipment, feed, and farm construction, and the preservation of thousands of acres of green space. A superb model for others, now on HTA’s Web site. August 28, 2006 HARNESS LOSS IN LEX CRASH Lyle Anderson, 55-year-old owner of Blue Ridge Farm of Ottawa, Ontario, who campaigned the trotting filly Ally Hall, a $384,000 Ontario stakes winner, and the $626,000 winning trotter Beardmore, was among the 49 victims of the Delta plane crash in Lexington, KY, Sunday morning. The Harness Edge reported that Anderson was heading home after watching his 2-year-old trotting filly Queen Charlotte race in a Kentucky Sires Stake at the Red Mile last Thursday. Also killed in the crash was Christina Anderson, 39, the estranged wife of wellknown owner and breeder David Anderson, and daughter-in-law of major owner Bob Anderson. Ms. Anderson leaves two daughters, 3 and 4 years old. Two thoroughbred breeders, Dan Mallory and George Brunacini, and thoroughbred trainer Jeff Williams, also died in the crash. The plane crashed near the Versailles Road farm home of Joe Morris, president of purchasing for the National Thoroughbred Racing Association, who handles the HTA-USTA Member Perks program. Morris said he was awakened Sunday morning by a noise and accompanying tremor that shook the house. He was quoted in the Louisville Courier- Journal as saying, “At first I thought it was thunder. Then I thought it might have been an earthquake.” Joe travels constantly in his NTRA duties, and said he had flown Comair’s flight 5191 perhaps 50 times heading to Atlanta. RAVES FOR WEG POLYTRACK Woodbine Entertainment Group raised the curtain on its new synthetic thoroughbred track yesterday morning, to rave reviews. Hundreds of runners walked, jogged and galloped over the surface, and trainers were unanimous in their praise. The track’s leading rider, Emma-Jayne Wilson, called it “phenomenal and amazingly consistent.” Trainer Kevin Attard said he thought it would help older horses in particular. 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 August 29, 2006 NO SIMULCAST FOR ERNESTO LOU PENA PITCHES A WINNER HTA member Pompano Park, again in the path of a tropical storm, is closed for simulcasting and will remain closed tomorrow. Senior director of racing operations Steve Wolf expects to reopen at noon Thursday for simulcasting, with hopes that Ernie will be gone for the opening of the new session of live racing scheduled for Friday. Lou Pena, a perennial driving leader at HTA member Cal-Expo, scores one for the good guys tonight in Sacramento, but not at the track. Lou will toss the ceremonial first pitch in Sacramento’s Raley Field as the Sacramento River Cats, a Pacific Coast League AAA affiliate of the Oakland Athletics, take on the Tucson Sidewinders, an AAA affiliate of the Arizona Diamondbacks. Pena, however, will not make the usual walk from the centerfield bullpen to the mound. He will drive there, in a sulky behind his trotter Phipps, a $118,000 winner he owns with Wade Miller. The horse suffers from EPM — equine protozoal myeloencephalitis, a form of equine epilepsy, and Pena and Miller have pledged to donate his race earnings during the California State Fair meeting to the Bronte Epilepsy Research Foundation based at UC Davis. After circling the field, Phipps will get to rest until tomorrow night, when he races in the seventh race at Cal-Expo. Farther north, heavy rain was expected for today’s public “sneak preview” of the newly refurbished track, Vernon Downs. Doug Tudman, regional director of marketing for Vernon Downs and its sister track Tioga Downs, invited the public to “come on by and bring your umbrella.” Vernon was scheduled to hold full scale qualifiers today, with an announcer, and will host its first racing card in more than two years Thursday, with a 6:50 post time. The track’s racino is scheduled to open in October. In Chester, PA, just south of Philadelphia, former Pennsylvania harness racing commissioner (and trainer and owner) Ed Rogers, became the first to jog a horse over Chester’s brand new track, with its $11 million clubhouse turn. Rogers ogged the $593,175 winner Corporate Rrraider, USTA director and trainer Sam Beegle, who sent both Corporate Rrraider and the $768,813 winner Bobnoxious over the five-eighths mile track, praised the strip, along with Tim Curtin, who drove Bobnoxious. Chester opens Sept. 18. HARRINGTON PURSES UP 10% HTA member Harrington Raceway will boost its purses by 10% across the board, starting Sunday. The increase is expected to kick Harrington’s daily purse distribution — roughly $10,000 a program in its pre-slots days — to $145,000. Harrington is in the third week of its meeting, and will continue racing with the new purse distribution for another two months. DIRT-Y DIFFERENCES IN IOWA QUIZ: HOW MUCH DO THEY GET HTA member Prairie Meadows Racetrack and Casino and its harness horsemen are in a dispute over the track’s racing surface. The track wants to compress the thoroughbred dirt rather than remove it down to its limestone base. Prairie s e nior VP says the track can save $300,000. Horsemen’s president Ronald Grinell calls compaction “totally unacceptable.” Betfair, the British betting exchange, is paying Horse Racing Ireland 10% of its profits on Irish horse racing, guaranteeing the Irish at least $1.28 million annually. It also will pay an undisclosed retroactive amount covering 2003 to 2006 racing. Given this, would anyone like to guess what Betfair’s take is for the year in question? 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 August 30, 2006 NYRA RACE DOWN TO FOUR BAL-CAL MARCHES ON The frantic race for the hundreds of millions or billions that will go with a NYRA franchise with slots in New York narrowed to four yesterday, with some heavyweights dropping out and the four remaining mustering the strongest political allies they can find. The Bal-Cal Pick 4 Challenge, combining two races from HTA member Cal-Expo and two from Balmoral Park in Illinois, with a $25,000 guaranteed pool, continues as an interesting betting proposition. The $1 bet has produced $19,000 and $18,000 payoffs in the last seven weeks. Last week’s winning combination, combining a $68 winner and odds-on favorite at Balmoral with a $7.20 and $8.60 pair at Cal-Expo, was worth $3,231, well above a $1 parlay on the four. Gone from the chase are MGM Grand of Las Vegas; five New York regional OTBs; Monticello Raceway Management; TVG as ODS Technologies; LRW Development of Las Vegas; and WNY Gaming Associates. Remaining, and drawing up heavy guns and battle lines, are: Empire Racing Associates, which includes Churchill Downs, Delaware North, Magna Entertainment, Scientific Games, Woodbine Entertainment, and SL Green Realty corporation, along with an exclusive endorsement from the New York Thoroughbred Horsemen’s Association. Excelsior Racing, with George Steinbrenner’s sonin-law Steve Swindal at the helm, and Billy Johnston; former Donald Trump associate Richard Fields; and Tishman Speyer Properties involved. Capital Play Pty Limited, an Australian bookmaking company. The New York Racing Association itself, current holder of the franchise and the only one of the four interested in running the $2.7 billion annual operation as a non-profit venture. As they used to say in the Roman Coliseum -- and I remember it well -- “Let the games begin.” In Australia, meanwhile, more experimentation with new bets. Customers at Victoria’s TAB (OTB) outlets have experimented with wagering experiments called Flex Betting, First 4 and a new “mystery bet” known as 3up, all offered on telephone account betting, the Internet and on-course. In Flex Betting, you decide how much you wish to invest. Whatever the amount, that is the total cost of the bet. After the bet is processed, the TAB calculates the percentage of the bet that was wagered, basing that percentage on what the same bet would have cost regularly. A $15 five-horse box trifecta, normally a $60 bet on a $1 basis, that paid $200 would return you 25% of that amount, or $50. The First 4, as the name implies, requires you to select the first four finishers in exact order. It will jackpot if not won, adding up to major payouts. The 3up offers a Win, Exacta and Trifecta for one $3 bet. The computer selects three numbers and bets $1 on the win of one runner, a $1 exacta on the first selected runner and one other, and a $1 trifecta with the first two selections and one other runner. You can win once, twice or three times with this unique bet. 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 WE MADE IT! VERNON REOPENS There were a number of times, in the last two years, when secret and overt HTA office pools were being conducted as to whether the editor would live long enough to see HTA member Vernon Downs racing again. If we make it another 8 hours the answer will be yes, and those voting or wishing otherwise will be disappointed losers. Persistence on the part of Jeff Gural and his associates, against an array of obstructionists and illwishers, pays off at long last. The track has been resurfaced, interior refurbishing and improvements made, and purses expected to rocket upwards after VLTs are installed and become operational in late October or early November. The track’s schedule for this inaugural new season calls for 11 nights of racing in September, 10 in October, and 8 in November, with a Nov. 25 closing of live racing but optimism reigning for next year. IN OHIO, 10 DAYS, 8,716 NAMES Ohio’s Secretary of State, Kenneth Blackwell, who would just as soon see no slots in the state, has announced that the Learn and Earn initiative is 8,716 valid signatures short of getting its constitutional amendment on the November ballot, and has only 10 calendar days to remedy the shortfall. Although Learn and Earn had submitted 624,625 signatures to meet the required 322,899, enough were invalidated to create the shortfall. It did meet the requirement for counties. Linda Siefkas, a spokeswoman for Learn and Earn, said the group expects to have at least 50,000 new signatures for consideration by the deadline, and added, “We’re 100% sure that Learn and Earn will be on the ballot this fall.” The track-backed initiative is tied to college scholarship support for high ranking Ohio high school students. August 31, 2006 19K TRIBAL SLOTS, NO TRACKS The Terminator has flexed his muscles again, and a number of California’s Indian tribes are swooning. Gov. Arnold Schwarzenegger has reached agreement with four tribes that could provide them with an additional 19,500 slots, more than doubling their present 2,000 each. The increases will range from 3,000 to 5,500 a tribe, and the tribes in turn will pay a larger share of their profits to the state. California tribes do not have to disclose profits, but the Los Angeles Times estimates they total some $6 billion a year. Arnold’s agreement still must be ratified by the state legislature. Somewhere in its files are proposals for 13,000 slots at tracks, but no one in Sacramento, except the operators of HTA member Cal-Expo, seem inclined to do anything about such bills. THEN THERE IS KENNY T. This story is still bubbling without full details, but the Washington Post’s Paul Farhi, writing about Karl Rove’s buddy Kenneth Y. Tomlinson and his alleged improper hiring, paying and collecting, wound up his story with this: “The most sensational complaint against Tomlinson might be that he used government resources to support his stable of thoroughbred racehorses, potentially violating federal embezzlement laws.” Tomlinson raises thoroughbreds at his Springbrook Farm, near Middleburg, VA. We’re waiting for his commendation, along the lines of “You’re doing a heckuva job, Kenny.” TWO VERY CLASSY GUIDES Two handsome media guides from HTA tracks have crossed our desk in recent days. Prairie Meadows has produced a spectacularly striking full color book, a stunning 74-page winner, covering both its running and harness meetings. The Little Brown Jug has an ultra comprehensive guide on that classic, with 108 pages of photos, statistics and information. 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 September 1, 2006 BIG RACING WEEKEND AHEAD MAGNA NOW OWNS AMTOTE Labor Day weekend signals the end of summer, the beginning of fall, back to school, and, in harness racing, big doings. Here are a few at HTA member tracks: AmTote International now is a wholly owned subsidiary of Magna Entertainment Maryland. Magna had acquired a 30% interest in AmTote in August of 2003 for $3.8 million, and paid $13.6 million for the remaining 70%, with a 10% holdback to be released on a satisfactory audited balance sheet. Magna chairman Frank Stronach called the acquisition “a unique opportunity” and Joe DeFrancis, executive vice president of MEC, said Magna feels AmTote is at a key point in its history and can contribute to the racing industry’s future potential. Steve Keech has been named president of AmTote under the new regime, with CEO John C. Corckran Jr. and his family bowing out of the picture after the transition. The company headquarters will remain in Hunt Valley, MD. AmTote began in 1930 when founder Harry Straus installed part of his new system at Pimlico. He installed the first complete system three years later at Arlington Park, and today AmTote services more than 70 North American racetracks and other betting entities. At Mohawk Raceway, they are giving away the Canadian mint this weekend. The Metro pace, richest race in the sport for 2-year-old pacers, carries a purse of almost $905,000 U.S. dollars, and a $90,000 consolation. The $682,000 She’s a Great Lady for 2-year-old pacing fillies will be raced. There are two $50,000 eliminations for next week’s $800,000 Maple Leaf Trot for the best trotters in North America. On Sunday there are two $115,000 Simcoes for 3-year-old pacing fillies, three $95,000 Champlains for 2-year-old trotters, a $118,000 Ontario Sire Stakes for 3year-old colt pacers, and three more Champlains Monday. At Freehold Raceway, on Labor Day, the $301,587 Cane Pace, first leg of the Triple Crown for 3-year-olds; the $126,000 Battle of Freehold for 2-year-old colts; and two $79,000 divisions of the Shady Daisy for pacing fillies. At Hippodrome de Montreal, four $90,000 Coupe de l’Avenirs for 2-year-olds and four $118,000 for 3-year-olds. At The Meadows, a bevy of $100,000 Pennsylvania Sire Stakes. At Georgian Downs, a $118,000 Ontario Sire Stakes Gold final for 3-year-old colt trotters. Northfield Park, Indiana Downs, the Red Mile, Flamboro and Rockingham all have features of $50,000 or more, and in far southern Illinois non-member Duquoin offers the $530,000 two-heat World Trotting Derby and a $200,000 filly division tomorrow afternoon. INDIANS LOSE A CAL BATTLE In what came as a surprise to some who understand the huge influence and clout of native Indian tribes in California, the state’s legislature yesterday, in another rebuff to Gov. Arnold Schwarzenegger, refused to approve his deal to increase slots at five powerful tribal casinos. The legislature voted on only one of the five proposals, which would have paid California more than $22 billion over the next 25 years, and then adjourned without considering the others. Schwarzenegger had negotiated the contracts personally, offering the five tribes an additional 22,500 slots in return for the increased payments to the state, but the legislature refused to go along. Assembly speaker Fabian Nunez, who led the opposition, said Democrats were “pretty irritated” that the compacts were submitted so late in the session. 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 WOW! TALK ABOUT COVERAGE If this is any indication of coverage to come, Harrah’s Chester Casino and Racetrack is in very good shape. The Delaware County Daily Times sports section devoted three full pages, lavishly illustrated, to the impending opening of the new track and racino. And that’s two weeks before opening. The full front page showed a pacer in action, with the headline “Here They Come.” The second full page, with a picture of a horse entering the track and a bylined article by Millard S. Beatty III, was headed, “A new game in town for harness fans.” And the third entire page, with Beatty’s story continued and another three column picture of a horse in crossties, rounded out the score. Now for the Inquirer. SLOTS DEAD IN CAL, FOR NOW The California legislature ended its 2006 session last week, without action on a bill introduced by the Assembly Speaker Pro Tem Leland Yee for slots at tracks. The Senate had earlier pulled it from consideration, and the Assembly backed away when the Indian gaming issue heated up and the legislature refused to endorse Gov. Arnold Schwarzenegger’s compacts with five tribes. Yee is from San Francisco, and had hoped to block destruction of Bay Meadows in San Mateo. STEM CELLS FOR HORSES? An interesting experiment in Alberta, where a veterinarian at the Alberta Equine Hospital south of Calgary is conducting research in stem cell treatment of horses’ injuries. No embryos are involved. The vet, Dr. Andy Guccione, harvests stem cells from a horse’s rump fat, near the tail, then sends them to Vet-Stem Inc. in San Diego, California. That company distills the cells, sending them back to Guccione, who injects the material into the injured horse. The turnaround process must be completed within two days. September 5, 2006 Guccione then injects the material in the injured part. If a knee tendon is injured, the stem cells are injected there. Guccione says it will be a month before he will see any conclusive regenerative results and know if the treatment works, according to the Toronto Globe and Mail. MAKE RESERVATIONS NOW! Two events of compelling interest to all member tracks coming up shortly. The 14th annual TRA-HTA-AQHR International Simulcasting Conference is scheduled for Oct. 16-18 at the Sheraton Society Hill in Philadelphia. The conference gets underway Monday morning, Oct. 16, with the popular Simulcasting 101 scheduled from 10:30 to noon, following a 2020 committee meeting. The afternoon session begins at 2 p.m. Tuesday sessions will run from 9 a.m. to 5 p.m., Wednesday’s from 9 to 11:30 a.m. Simulcast award entries must be received in DVD preferred format by this Friday, Sept. 8, with six copies submitted to Simulcast Award Entry, TRA, 420 Fair Hill Drive, Suite 1, Elkton, MD 21921-2573. Hotel reservations should be made directly to the Sheraton, $159 single or double. Call 215-238-6000 and ask for the International Simulcast Block. Cab fare from the airport is $20, USA limos $8 a person each way, at 1-800-872-6070. HTA’s 9th annual Security Directors Conference will be held Oct. 18-20 at Saratoga Gaming and Raceway and the Holiday Inn in Saratoga Springs, NY. The special room rate is $95.95 a night, single or double, for Wednesday and Thursday evenings, with reservations to be made through the Standardbred Investigative Service offices by Oct. 2. The phone number is 410-3922287, fax 410-398-1499, e-mail sisinfo@ trpb.com. A $40 fee per attendee must accompany registration, which includes receptions and two meals on Thursday. 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 September 6, 2006 MORE ON INDIANA PENALTIES DUCHOSSOIS PULLS TRIGGER More details on the hammer dropped on three trainers and an owner whose horses turned up positive at Hoosier Park’s spring meeting for dexamethasone, a potent, quick-acting corticosteroid. In each case, Indiana’s testing laboratory, Truesdail, said the concentration level of the drug with blood indicated in the horses’ blood indicated that it had been administered within 24 hours of racing. Indiana’s racing rules prohibit the presence of any foreign substance, other than furosemide, during that time. The balance of power in Chicago thoroughbred racing took a wide swing yesterday, when Arlington Park owner Dick Duchossois fired a second - and perhaps fatal -- salvo at the Bidwill family’s National Jockey Club. The first blast came in July when Duchossois bought a reported $28 million NJC loan from the Harris Bank. Yesterday he called it in, demanding payment from his competitor, which lost Sportsman’s Park and now races its meetings at Hawthorne. With date allocation hearings of the Illinois Racing Board just two weeks away, National Jockey Club president Charles Bidwill III is in a very precarious position. Duchossois confirmed to Chicago newspapers that he was demanding payment, telling the Sun-Times, “The note is due and payable and there’s no visible means of paying it, and if this thing keeps going they’re not going to have any money for a meet. The only way that can be stopped is if we call the note. We’re saying we want our payment.” Charles Bidwill said, “I’m not done yet. I’m speaking with my lawyers. That’s why there are the courts.” If the NJC does not get the Feb. 23-May 4 dates it is seeking, Hawthorne’s Tim Carey presumably would like them. Neil Milbert, the Chicago Tribune’s racing writer, speculated that it was “unlikely Duchossois will make a pitch to add the February through April dates to Arlington’s May 4September 30 date request. Instead, he is expected to ask the board to shorten the Chicago thoroughbred schedule and give Arlington more down-time revenue from simulcasts of out-ofstate races so that he can increase purses significantly at his meeting and thereby upgrade the quality of racing.” Indiana’s rules also specify a maximum penalty of $1,000 and suspension for two months by its judges, but the commission, through its executive director, can assess greater fines and penalties, up to $5,000 for each separate violation. One of the horsemen -- owner-trainer-driver Mark P’Pool -- had 10 horses test positive for dexamethsone on 11 occasions during Hoosier’s meeting, and executive director Joe Gorajec threw the book at him. He ordered P’Pool to be suspended for six years, and fined $30,000. In the case of trainer Leo Banks, who had three dexamethasone violations in May, Gorajec ordered a two-year suspension and $10,000 fine, and gave the same penalty to the owner of the three horses involved, who also participated in their training. The fourth trainer, Craig Conrachione, also had three horses test positive, and he received the same $10,000 fine and twoyear suspension as Banks and Bush. Gorajec, a graduate of the Race Track Industry Program of the University of Arizona, has been executive director of the Indiana commission for 16 years, and has been a consistent and determined foe of illegal medication. He wrote stiff new security rules for the state last winter. LEARN & EARN TRIES AGAIN Ohio’s tracks have submitted another 43,879 signatures for a November referendum on slots, hoping to pick up the 8,176 valid names it needs to get on the ballot. 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 September 7, 2006 NO SLAUGHTER BILL PASSES ANOTHER HOMELAND THREAT The House of Representatives, at 3:01 this afternoon, passed H.R. 503, the bill to ban the slaughter of horses for human consumption that could close three slaughter houses in the United States. We do not have a vote tally or details at press time, but the bill survived a setback that arose yesterday when the U.S. Department of Agriculture announced its opposition. The USDA’s Mike Johanns said he felt there was a significant chance that the bill, if passed, “could result in a reduction in the humane treatment of horses.” The Senate has not taken action on the issue as yet. Forbes.com reports that the English betting company Sportingbet PLC said that Peter Dicks, the company’s non-executive chairman “was detained in the early hours of this morning whilst visiting the US on non-Sportingbet business.” A statement from the company said a hearing for Dicks was scheduled for today and that “pending clarification of the situation the Board has sought immediate temporary suspension of Sportingbet’s shares.” MORE DISSENTION IN ILLINOIS If you like sure things, and who doesn’t, just keep betting that Illinois will be the last state to have peace and harmony in racing. The latest dispute has the Illinois Thoroughbred Horsemen’s Association pulling the Arlington Park signal from TVG, hoping to get the upcoming Hawthorne running meet on Youbet.com. The issue is complex. As reported by BloodHorse.com, the thoroughbred horsemen denied the Arlington signal in an attempt to force negotiations between TVG, with whom Hawthorne has an exclusive agreement, and Youbet.com, which must pay TVG a licensing fee to carry the signal. Youbet.com does not plan to carry the fall meet from Hawthorne. Joseph Kasperski, president of the Illinois THA, told Blood-Horse, “This is happening because of a dispute TVG is having with Youbet. This will impact our thoroughbred purse account at Hawthorne. There is litigation ongoing concerning Hawthorne signing the exclusivity contract with TVG without our consent. We allowed the signal to go to TVG during the spring meet, but we haven’t any simulcast contracts for the fall meet, and based on what we know, we would not give them exclusivity for the signal.” On and on. SEMANTICS REAR UGLY HEAD There was some interesting banter in the Legislative Council’s Rules and Regulations Committee in Arkansas yesterday, as the members debated the issue of allowing “electronic games of skill” at the state’s two pari-mutuel tracks, Oaklawn Park and Southland Park, a greyhound track. The state racing commission on Aug. 1 approved the rules for the two tracks to have up to 1,000 of the games, and the legislative committee was voting on the matter. A state senator, Kim Hendren, asked racing commission manager Shelby McCook if the new rules would allow him to play a slot machine. According to the Arkansas Democrat Gazette, this dialogue followed: McCook said, “They are not called slot machines. They are called games of skill.” Hendren asked, “What’s the difference?” McCook answered, “A game of skill requires you to make some judgment or some physical motion that does not leave the outcome up to chance alone.” Hendren replied, “I don’t know much about this. I always thought that it is how hard you pulled the handle,” and he asked McCook if that was part of the skill. “No, sir” McCook answered, and the committee voted to clear the “games of chance.” A circuit court ruled against lawsuits filed by opponents, but they have appealed to the Arkansas Supreme Court, which will pull the final handle. 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 HOUSE OK; NOW FOR SENATE The House of Representatives moved to stop commercial horse slaughter for foreign food consumption yesterday, 263-146, but it seems unlikely the measure will gain Senate approval in the 14 legislative days left in that body. Yesterday’s vote generated hours of heated and passionate debate, with actress Bo Derek on hand campaigning hard for the bill. Clint Eastwood and Willie Nelson and Paul McCartney previously had deplored the three U.S. slaughterhouses, two in Texas and one in Illinois. Opponents of the measure included the American Horse Council, the American Veterinary Medical Association, and the Department of Agriculture, all claiming the ban will produce more rather than less inhumane killing of unwanted horses. The House floor produced a lot of eloquent oratory yesterday, and some nonsense as well. Rep. David Drier of California, the Rules Committee chairman who helped move the bill, said, “When you’ve got Bo Derek twisting your arm, what can you say?” Rep. Jim Moran of Virginia chipped in with, “Look at the monument in front of the Capitol -- it’s a horse!” Rep. Zoe Lofgren of California said, profoundly, “I’m for the horsies too; I’ll vote for it.” Rep. John Sweeney of New York and Rep. Ed Whitfield of Kentucky, prime movers of the bill, were elated, but Rep. John Dingell of Michigan was not. He said of the bill, “It’s a triumph of emotion over common sense. We have before us a solution, a poor one, to a nonexistent problem.” The press was scornful of the four-hour debate. Time magazine headlined its story, “Horse Slaughtering: The New Terrorism,” and its lead read, “With all the other problems piling up -- soaring energy costs, the war in Iraq, tens of millions of Americans with no health-care insurance, skyrocketing federal debt -- Republicans were bound to get a kick in the rear when the only bill they considered this September 8, 2006 week was one to look out for the welfare of horses.” Time quoted House Minority Whip Steny Hoyer of Maryland as saying, “I’m concerned about horses, but I’m much more concerned about the American people.” The Washington Post’s Dean Milbank echoed the same sentiments, asking, “What are House Republicans thinking?” He added, for emphasis while stressing the same major issues facing the nation as Time, that yesterday’s legislative action also included H.R. 2808, the Abraham Lincoln Commemorative Coin Act. He wrote there was nothing inherently offensive about minting coins to commemorate the bicentennial of Lincoln’s birth, but that the House of Representatives might take a look at some of the dire problems facing the nation and its future. MORE TROUBLE FOR DETROIT International borders can present problems, and because American and Canadian governments see issues differently, Detroit area racetracks face new competition. Windsor, across the Detroit River, opens a multimillion sports betting operation today -- a 170-seat facility called Legends Sports Lounge -- which will offer wagering on professional football, hockey, and baseball, and on college football and basketball. Only four states in the U.S. are grandfathered to do that, and Windsor is so optimistic about the results that it has rehired 25 laid-off workers and will have 41 employees manning the new facility, which will have 36 high definition TV sets, a 119foot long sports ticker, point spreads, over-under wagers, and proposition bets. JAMIESON ON HTA INTERNET Jody Jamieson, who drove the winners of both the $754,000 She’s a Great Lady and the $1 million Metro pace at Mohawk Raceway, is the interview guest on the current edition of HTA’s The World in Harness, accessible from www.harnesstracks.com. 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 THEY’RE OFF AT CHESTER! If the press coverage and public reaction is an indication, Harrah’s Chester Casino and Racetrack is off to a thunderous start. Right now it is just Harrah’s Chester Racetrack, the Casino part coming sometime after the first of the year. The public praised the “up-close” design of the grandstand, forgave the unfinished amenities such as six restaurants, and liked the free admission and free parking in the six-story parking garage. Horsemen were unanimous in praise of the fiveeighth mile racing surface. It is four years since former HTA director Joe Lashinger Jr. announced his dream, and yesterday he and his two original partners saw it fulfilled. HTA is proud to have the sport’s newest track as a member. THEY’RE OFF IN HARRISBURG After more than two years of hassling, arguing, debating, pondering, and negotiating, the Pennsylvania Gaming Control Board met today in Harrisburg to hear two-hour racino presentations from Pocono Downs, Chester Downs, Presque Isle Downs in Erie, and Penn National and Philadelphia Park. Despite continued grumblings in the state Senate about further amendments to Act 71, the enabling legislation for slots, Gaming Control Board chairman Tad Decker says enough time has passed and he plans to award racino licenses by the 27th of this month. If he does, racinos could be in operation in temporary facilities shortly after the first of the year. SPORTING BOSS SPRUNG IN NY Peter Dicks, chairman of Britain’s big bookie Sportingbet, who was arrested on arrival from England in New York Friday on a fugitive warrant, has been stripped of his passport and released on $50,000 bail. It turns out a routine customs check showed he is wanted in Louisiana for gambling by computer, and that state wants him extradited. September 11, 2006 LINCOLN CONVICTIONS HOLD A federal appeals court in Boston has upheld the convictions of Daniel Bucci and Nigel Potter, the principals in a conspiracy trial that charged them with paying up to $4 million to a law firm of former Rhode Island House Speaker John Harwood. The two were accused of trying to win support for additional slots for Lincoln Park. Bucci, who was general manager of the track, was sentenced last October to 41 months in prison. Potter, who was the chief executive of Wembley PLC, which owned the track at the time, was sentenced to three years. Both men claimed the money was intended as a performance bonus or retainer fee for Harwood’s law partner, Daniel McKinnon, who did legal work for Lincoln Park, but the 1st U.S. Court of Appeals in Boston rejected that argument, saying the evidence was clear that the money was intended for Harwood and that Bucci and Potter had used coded language to conceal their intent. HARDBALL AT HARD ROCK A great lead by the Associated Press today about doings at the Seminole Hard Rock Hotel and Casino near Pompano Park. The story began with “The name of the game is the Swipe and Win progressive jackpot, but to Freddy Howard it feels more like the win and swipe.” It seems Howard won, or thought he won, a jackpot worth nearly $260,000, and AP says he was paraded around the casino and presented with a giant cardboard check. Fifteen hours later, the Hard Rock called Howard and said, according to him, “You know the jackpot that you won? We’re not going to pay it.” The casino acknowledges the mistake, but says a verification process showed that Howard did not actually win after swiping his Players Club card. The casino is part of the Seminole reservation, and not governed by state or federal laws. The tribe is investigating, and Howard has hired a lawyer. Good luck, Freddy. 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 IT AIN’T OVER TILL IT’S OVER If anyone thought yesterday’s hearings for racino licenses in Pennsylvania would be bland and pro forma, they learned differently in a hurry. Bill Paulos, co-owner of Las Vegas-based Millenium Gaming, which now owns The Meadows, went toe-to-toe with the Gaming Control Board on projections for revenue from the proposed operation. The board had a report that it had prepared estimated that revenue would be between $115 million and $173 million lower than the track’s projections. The state’s projections were between $100 million and $123 million. Millenium’s numbers were between $215 million to $296 million. Paulos told control board chairman Tad Decker quickly and bluntly that if state revenue projections are right, “you should not put a casino at The Meadows. You’re talking about $100 million. It doesn’t pencil. You couldn’t do it. We wouldn’t do it” He pointed out that he had to pay a $50 million license fee to the state, handle a total tax burden for state, county and host town of 54%, and pay labor costs, debt on loans and other operating costs. Paulos said Millenium’s financial consultants -Christiansen Capital Advisors, Innovation Group, Bank of America and Merrrill Lynch Capital Markets -- made him feel certain a racino at The Meadows would produce a minimum of $215 million a year “in gross gaming revenue,” the amount remaining for the racino operator after slots winnings were paid. Chairman Decker said, “We have to go back and study this. The spread is huge. Somebody has to prove that it’s likely this racino will be financially viable. We are looking for some comfort that this project will work.” Decker said the board has three choices. “We could approve, deny, or defer.” Paulos said if the board approves on Sept. 27, Millenium would tear down the Meadows clubhouse and build a $40 million temporary racino adjacent to the site. September 12, 2006 Next year it would start building a $135 million casino on the site of the demolished clubhouse, which he estimated would take 14 months to complete. If the Control Board defers approval, it will delay slots in western Pennsylvania for an indefinite period. Decker refused to release the board’s report, calling it confidential, which set off a second dispute from close observers as to whether that was accurate or not. An attorney for Senator Vincent Fumo of Philadelphia, who played a key role in passage of Act 71, the enabling legislation, said any financial document used by a public agency in making a licensing decision would be considered public information under Pennsylvania’s Right to Know law. Political expediency was cited by others as a reason for withholding the report. Paulos said Millenium had received only a page from the report, and that the faxed copy was so bad “we couldn’t read it.” So much for transparency in Pennsylvania. Other applications went smoother, and Mohegan Sun at Pocono Downs and Philadelphia Park both announced recruiting fairs to hire personnel to run their racinos. Pocono CEO Bobby Soper told the board that his track was ordering only 2,000 slots, rather than 3,000 it could use by law if it gets its racino, until it has “a better understanding of the market.” Its racino is being built with flexibility to utilize the full amount. MAGNA ON HOLD IN MICHIGAN Things are moving even slower in Michigan than in Pennsylvania. Sixteen months after the racing commission awarded a license to Magna Entertainment to build a $100 million track and entertainment complex called Michigan Downs on a 212-acre site near Detroit’s Metro airport, a legal challenge by an unsuccessful applicant is holding up all work. A thousand jobs hang in the balance. 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 ORC: BILL ELLIOTT IS OUT The Ontario Racing Commission, following a hearing this morning, confirmed the decision of Woodbine Entertainment Group not to allow four of trainer Bill Elliott’s horses to start in major stakes this weekend at Mohawk Racetrack. A horse in Elliott’s stable returned an elevated TCO2 reading, a milkshaking violation, and Woodbine notified Elliott that it was refusing all entries from his stable. That included Here Comes Herbie, a Hambletonian starter that had been transferred recently to the Elliott barn from the Trond Smedshammer stable and was entered in an elimination this Saturday for the Canadian Trotting Classic, and three 2-year-olds -- Laughing Art, Running Book and Mr. Market -- entered in the Nassagaweya stakes. The ban caused the draw for those races -- originally scheduled for those races -- to be postponed until the Commission acted today. That action, and the scratching of two horses at Tioga Downs from the stable of owner-trainerdriver Alessandro Spano and a ban of a trainer at Mohegan Sun at Pocono Downs, indicates a general tightening of rules and a strong proactive approach to violations at HTA tracks. THOUSANDS JAM POCONO FAIR Mohegan Sun’s two-day job fair, held at Wachovia Arena at Casey Plaza in Wilkes-Barre Township yesterday and today, drew an estimated 10,000 seeking 430 positions advertised for the first phase of Mohegan’s racino operation. The jobs include 25 people for the Information Technology Department, and hundreds of other positions that are expected to pay around $14 an hour. Anyone hired will have to pass a state background check. Disco music played at the job fair, and cocktail waitresses handed out water and soda to potential employees. September 13, 2006 NEW TRACKING AT WOODBINE Woodbine Entertainment Group is introducing a new wireless tracking system at its thoroughbred meeting in Toronto, and if all goes well it will be used for harness racing as well when the trotters and pacers return to Woodbine Oct. 9. The system, developed by Boston-based Trakus, will use trackside antennae, combined with lightweight radio transponders mounted in the saddlepads, to track position and speed of every horse in every race, and ultimately create reenactments of the races. The technology is similar to that used by Autochart, which has a wireless tracking system in operation at Freehold. THAT CHICAGO SITUATION The soup got thicker in the Chicago simulcast mess today, with the announcement that Churchill Downs had cut off Youbet.com and AmericaTab and its affiliates, including Brisbet, from Arlington Park’s signals before the track ended its meeting yesterday. The dispute involves Chicago’s thoroughbred horsemen, TVG and Youbet. The horsemen, trying to force negotiations between TVG and Youbet over a user fee Youbet must pay for the upcoming Hawthorne signal, which prompted Youbet to drop Hawthorne. That blackout, the horsemen’s association says, could cost thoroughbred horsemen half a million dollars in purse money. Churchill said that when horsemen revoked their permission to send the Arlington signal to TVG, it enabled Churchill, under terms Arlington’s TVG contract, to revoke authorization to send the Arlington signal to TVG sub-licensees, including Youbet.com and AmericaTab. LEARN & EARN IN CINCINNATI The Learn & Earn group seeking slots at tracks in Ohio now says it will share proceeds with the city of Cincinnati, which had been shut out of participation. 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 September 14, 2006 DON’T MESS WITH THE PRESS A HASTERT MISCALCULATION The chairman of the Pennsylvania Gaming Control Board, Tad Decker, who is not enthused about transparency, earlier this week refused to release the board’s commissioned report on projections of revenue for slots at The Meadows. It was naive to think he could keep the report secret, and the Pittsburgh Tribune-Review quickly obtained a 23-page portion of the study, which was done by Pricewaterhouse Coopers. It predicts $108 per machine per day, or $118.8 million a year, against the $236.6 million projected by consultants hired by Millennium Gaming, the new owners of The Meadows. The figure also is less than half the $229 a machine produced by slots at tracks in neighboring West Virginia. A number of Pennsylvania legislators are not happy with the secrecy of the gaming board. Paul Clymer of Bucks county near Philadelphia asked, “Why are they keeping this report in the dark. All it does is make you wonder what they are keeping secret.” Rep. Tom Tangreti of Greensburg in western Pennsylvania said, “All of this ought to be transparent. They ought to do it voluntarily. Absent that, we ought to amend the act to make sure that information is available to the public.” At last report, chairman Decker still was calling it “confidential,” and said a request filed under the Pennsylvania “rightto-know” law might yield “a few pages.” It doesn’t pay to fool Mother Nature, state legislators or newspapermen. David Atkinson, executive assistant to Senate president pro tempore Robert Jubelirer, a slots opponent, said, “This whole enterprise is supposed to be built on public confidence. It should be released, whether they have a legalistic interpretation of how this fits into the open records law or not.” Melissa Melewsky, media law counsel of the state newspaper association, also called for release, saying since a page had been released it cannot be considered confidential. It isn’t often that the Speaker of the House in Washington miscounts votes, but Dennis Hastert apparently did yesterday, when he tried to pass a bill limiting Indian casino expansion in California under suspension of the rules, and fell short of the two-thirds vote needed in that procedure. Hastert and his Republican colleagues grew overconfident after a 27-9 vote in the Resources Committee in July on the measure, which was co-sponsored by the committee’s ranking Democrat, Nick Rahall of West Virginia. Rahall’s fellow Democrats did not agree, and 154 of the 171 votes against the measure yesterday were cast by Democrats. Only 16 were Republicans. The bill has been in work for two years, but tribal lobbyists put on a strong show to defeat it. The issue involved two dozen California tribes building casinos outside their current reservation lines. Also in Washington, Jon Kyl is back again with his anti-Internet gambling bill, this time with support of Senate Majority leader Bill Frist. This version has overtones of the original Leach legislation, and Frist hopes to attach it to a defense appropriations bill. In its present format horseracing’s exemptions would hold, protecting Internet wagering on horses in states where it is legal Good news -- always good when a friend wins -in Rhode Island, where Lincoln Chaffee, who once in the dim past shod trotters and pacers, won his Republican primary battle for reelection. Good men are hard to find, and Chaffee is a very good one. ERIC SPECTOR GETS A TRACK Eric Spector, who tried mightily to buy Vernon Downs, finally has acquired a racetrack. The California entrepreneur has purchased Wyoming Downs in Evanston. 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 September 15, 2006 MINN. TRACK MAY BE DELAYED WILKE NAMED AT LOUISVILLE The owners of the harness racetrack being built in Anoka County, Minnesota, say they might not wrap up financing for the track soon enough to make a late fall 2007 opening possible, according to a report in the Minneapolis Star Tribune. “We have to get final construction bids, get building permits, finalize plans,” said Jim Druck, CEO of Southwest Hotel and Casino Corp., the track’s primary investor. “There’s still a chance. We’re 90 percent done.” Druck noted that if ground isn’t broken for the track by early next month, the track stands no chance of opening in time to offer the 50 days of live racing needed to make 2007 profitable. If construction doesn’t begin in October, the groundbreaking will most likely occur next spring, with the track opening in 2008. The Minnesota Racing Commission is putting pressure on the track’s owners to open next year, said Dick Kreuger, the commission’s executive director. The track’s other primary investor is Mountaineer Racetrack and Gaming Resort. Richard “Rich” Wilke has been appointed director of the Equine Industry Program at the University of Louisville. Wilke has been on the faculty of the program since 1995. He succeeds Bob Lawrence, who retired at the end of August after 18 years as head of the EIP. Wilke’s previous experience includes stints as executive director of the Maryland Million and executive vice president of the Maryland Horse Breeders Association. APPOINTMENTS IN ILLINOIS Illinois Governor Rod Blagojevich made two recent appointments to the state racing board. In late August, he appointed Angelo “Sam” Ciambrone, replacing longtime commissioner John Simon. Ciambrone, a former mayor of the City of Chicago Heights, was nominated to a six-year term effective August 28, 2006. In another move, this one for a six-year term effective September 11, 2006, Blagojevich appointed Joseph Sinopoli to the racing board. Sinopoli served as the racing board’s deputy director and legal counsel from 1986 through 1990, and as executive director from 1991 until 1998. An independent floor trader since 1998, Sinopoli is the owner of an IOM seat at the Chicago Mercantile Exchange and IDEM seat at the Chicago Board of Trade. “SOPRANOS” TO TIOGA Three actors from HBO’s Emmy Award-winning superhit “The Sopranos” will visit the racino at Tioga Downs tomorrow night. Steven Schirripa, who plays Bobby Bacala on the show, Michael Imperioli, who plays Christopher Moltisanti, and Vice Curatola, who plays embattled New York mob boss Johnny “Sack” Sacramoni, will have dinner with 80 lucky casino patrons at a special “Meet, Greet and Eat” event and then will sit down to an hour-long autograph session later in the day. The successful first live racing meet ends at the Nichols, New York, oval today. NJC NOT SEEKING 2007 DATES The financially troubled National Jockey Club, which has been licensed to hold race meets in the Chicago area for 75 years, told state regulators on Thursday that it was withdrawing its request for 2007 race dates. “NJC appreciates that it is not in the best interest of the industry, the Illinois Racing Board or the State of Illinois to complicate the upcoming dates hearing,” NJC President Charles Bidwill III wrote in a letter to the racing board. The announcement comes on the heels of Dick Duchossois demanding payment on a $20 million loan the NJC owes Duchossois Industries, which bought the loan in July from Harris Bank. NJC hopes to “fix” its finances and resume racing in 2008. 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 September 18, 2006 NEW JERSEY “SYMPOSIUM” MOHAWK MEET EXPANDING Racing officials and pleasure horse interests in New Jersey are hoping to highlight the importance of the equine industry to the state by participating in the first “New Jersey Horse Industry Symposium” on Wednesday, September 20 at Monmouth Park in Oceanport, New Jersey. More than 200 people are expected to attend the invitation-only event sponsored by the Standardbred Breeders and Owners Association of NJ, the NJ Thoroughbred Horsemen’s Association, the Thoroughbred Breeders’ Association of NJ, the Rutgers University Equine Science Center, and various pleasure horse groups. Dennis Dowd, senior vice president for racing for the New Jersey Sports and Exposition Authority and an HTA director, will be among the featured speakers. Topics for the Symposium will include “The Importance of Working Together”; “The Economic Impact of Racing on New Jersey’s Horse Industry, Traditional Agriculture, Commerce and Tourism”; and “The Importance of Being Involved in the Legislative Process.” For more information or to secure an invitation to the Symposium contact SBOANJ Lobbyist/Publicist Leon Zimmerman at 609-394-8303. The 2007 Pepsi North America Cup will be hosted at Mohawk Racetrack in Campbellville, Ontario, according to a release by Woodbine Entertainment Group. WEG has been using the race as the finale of the Woodbine harness meet. Two years ago, WEG changed its focus by creating the Mohawk summer meet. Positive customer response to the “Summer Nights” racing concept at Mohawk prompted the decision to extend the meet in 2007 to include the North America Cup. “The objective was to create a very customer friendly atmosphere at Mohawk during the summer months and we’re quite pleased with the response to the first two years,” said Jaime Martin, WEG vice president of standardbred racing. “Mohawk has enjoyed great success hosting the Breeders Crown in the past and we anticipate beginning the Victoria Day weekend next year will only add to the momentum heading towards the North America Cup and into the summer.” Pending approval of the Ontario Racing Commission, the Mohawk summer meet will increase next year to 105 dates, from 80 dates, while the overall number of WEG harness race dates will remain at 260. Harness racing will begin at Mohawk on May 17 and run through October 8, at which time harness racing will return to Woodbine Racetrack. MAGNA HAS PLANS FOR LAUREL Magna Entertainment has unveiled plans for developing land next to Laurel Racetrack in Laurel Park, Maryland. To help energize the racing facility, Magna is planning to put seven retail buildings totaling more than 750,000 square feet, two parking garages and a 350-room hotel on the site. OHIO REP. NEY PLEADS GUILTY Rep. Bob Ney, a Republican congressman from Ohio, pleaded guilty on Friday to making false statements, conspiracy to commit fraud and violating post-employment restrictions for former congressional aides. The plea comes as the latest event in the saga of disgraced gaming lobbyist Jack Abramhoff. MGM MIRAGE READY, WAITING MGM Mirage has assured officials in New York that it is ready and willing to begin construction of a VLT casino at Aqueduct Racetrack, just as soon as it is given the go-ahead by the state lottery division. In a letter to the NY Non-Profit Racing Association Oversight Board, MGM expressed its desire to move forward “expeditiously,” when the lottery approves the contract between MGM Mirage and NYRA. The contract, submitted last June, also will be binding on whoever holds the New York racing franchise, according to counsel for MGM. 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 September 19, 2006 POLITICS IN RACING. C’MON THE SHADOW OF ABRAMOFF Surely you jest. Alan Hevesi, the state comptroller of New York, today accused the New York Lottery Division of playing politics in not approving VLTs for the New York Racing Association. Blood-Horse, reporting the story from Tom Precious, called Hevesi’s letter “scathing,” which it should be. “It is not in the best interests of the state’s taxpayers or the future of Thoroughbred racing in New York, Hevesi wrote, “to create the appearance that the state is deliberately forcing the current franchise to fail.” It is doing exactly that, however, and doing a good job of it. At issue is the long-stalled contract permitting MGM Mirage to proceed with construction of a racino at Aqueduct. MGM understandably will not go forward until it gets the official nod from the Lottery Division. With a racino, NYRA could survive and thrive. Without it, it will go down, and probably will not have its franchise renewed. Hevesi, in his letter, spelled this out: “Delay in establishing this facility creates a substantial risk to the state’s financial plan, potentially exacerbating the gaps to be faced by a new executive, which my office already estimates could exceed $13 billion.” He warned that the state’s financial plan includes the assumption that a racino would be open by October of next year, and that 5,000 VLTs would produce $300 million in revenue in the first year of operation, and up to $600 million when fully operational. Hevesi urged the Lottery Division to avoid “bureaucratic delay” of wavering, and he called on it to “work expeditiously” to jointly arrange a mutually satisfactory contract with NYRA and MGM if there were problems with the present plan. MGM has made it clear that any contract it signs would extend beyond 2007 to whomever might wind up with Aqueduct. Albany will decide all of this, with outgoing Gov. Pataki’s carefully appointed board making the decision. Sort of. I’ll vote for Hevesi for any job. Politics is an issue of the day in Ohio as well as New York. Learn and Earn has been certified for the ballot in November, and it will be up to the voters whether Ohio tracks get slots. The voters also apparently may have to put up with Bob Ney a little longer, as Jack Abramoff’s friend — who pleaded guilt to federal corruption charges — sees no reason that corruption should force him to leave office. Another sign of the times. THREE BLIND MICE IN WVA Charles Town Races in West Virginia has fired three placing judges — three — who called the wrong order of finish in a race on Sept. 9. All three admitted they posted the wrong winner in the race. The chief state steward was planning penalties against the trio, when Penn National, which owns Charles Town, saved him the trouble and booted them. Three current employees have replaced the placing judges, who call the order of finish and post running positions on simulcast feeds. Fortunately that job is being taken over, but not fast enough, by technological automation. GOOD HORSE, GOOD BUSINESS That old maxim was borne out once again at Saratoga Gaming and Raceway last Saturday night, when eight New York Sire Stakes championship finals produced an all-time handle record for the track. On-track handle was up 6.3% over last year’s Night of Champions, but off-track business soared more than 73%, up from $239,983 to $415,980. Vice president of racing Skip Carlson credited simulcast director Mike Sardella with adding significant new outlets, including the signal for two races in the middle of the card that went to California for the first time. YOU HEARD THIS BEFORE And you’ll hear it again. The HTA art auction is Oct. 6-7. Be part of it. 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 September 20, 2006 A CRIME TO LET PUBLIC KNOW LEARN, EARN AND FIGHT HARD Tad Decker, the chairman of the Pennsylvania Gaming Control Board, has his own ideas of where the public fits into the scheme of things in government. He told the House Republican Policy Committee yesterday that the public has no right to see the details of a state-commissioned study predicting how much racino slots would return. Decker’s reasoning is that the study done by PricewaterhouseCoopers contains proprietary information, and he says it could be a crime to make it public. Pennsylvania taxpayers, presumably, paid for the study, which would seem to entitle them to some idea of what they got for their money. Decker, not agreeing, got into what the Pittsburgh Tribune-Review called “a heated exchange with reporters,” telling the newsmen, “You can make all the damn arguments you want. You’re not getting it. It’s proprietary. File your lawsuit. File your Rights-to-Know Law request.” Decker said that the public, in its ignorance of what the report says, should not “jump to a conclusion” that the dispute over who is right -PricewaterhouseCoopers or Millennium Gaming’s consultants -- as to how much slots at The Meadows will produce. He said to conclude that the state won’t receive the money it expects because of Meadows’ numbers would be “a gross exaggeration.” The governor of Pennsylvania, Ed Rendell, and legislators of both parties have said the Control Board should release the study, and several have suggested they might put forward legislation demanding release, or at least insisting on receiving it before they make any changes in the slots legislation that the Control Board is requesting. Decker says the Board may release raw numbers from the study next week, when it is scheduled to award the first slot licenses, but it will offer “no explanation” of the numbers. He says no court or regulatory body would allow the Board to release the study. Now that they are on the November ballot, with the public to make the decision, Ohio’s racetracks can concentrate on convincing Ohioans that education in the state will be hugely aided by the 31,500 slots the iniative will provide. The tracks, faced with a shortage of more than 8,000 votes on petitions, went back to the drawing board (and the bank) and collected 26,081 more valid signatures for the proposal, which will be known as Issue 3 in November. Proponents of the measure, which will provide scholarships and grants for worthy Ohio students, say the slots can prevent a “brain drain” from the state. As the Secretary of State announced the issue had made the ballot, opponents announced they hope to raise $3 million for an antislots campaign. NEW ALLIANCE PACTS SIGNED HTA member Sacramento Harness Association, which operates the Cal-Expo meeting, has reached an agreement with the Nevada Pari-Mutuel Association to send its signal to Nevada, where it will be offered by 86 race and sports books. John Avello, the Race and Sports Book director of the Wynn Resort and Casino, said the Bal-Cal (Balmoral and Cal-Expo) guaranteed pools have sparked interest from their harness customers, and he thought it would be “a great later evening fit” for the members of the Pari-Mutuel association, of which he is a director. Chris Schick, Sacramento’s GM, said he thought his northern and southern California fans who make frequent trips to Las Vegas, Reno and Lake Tahoe would be pleased. In another pact, AmTote International and Cantor Index have signed an agreement for AmTote to implement on its tote system the Choose Six and Group Bet, proprietary pari-mutuel wagers developed by Cantor. Cantor’s Joe Asher called it “a significant step in bringing the bets to the mass market.” 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 September 21, 2006 NJ RACING COALITION MEETS YONKERS SLOTS DELAYED A good idea is worth duplicating, and New Jersey racing interests have formed their version of OHRIA, the Ontario Horse Racing Industry Association that scored notable successes under its former director Jane Holmes. The New Jersey group, called the New Jersey Horse Industry Alliance, is a coalition representing all segments of the state’s equine interests. It kicked off its activities yesterday with a symposium at Monmouth Park that drew 250 representatives of horsedom in the Garden State. Eight of 12 legislators on hand took advantage of the gathering to address the group, and all pledged support for the racing industry. Possible extension of the supplement agreement with Atlantic City casinos, which resulted in record purses at New Jersey tracks since its inception, was discussed. The agreement expires at the end of next year. An encouraging note was recognition by Assembly Speaker Joe Roberts of the need for New Jersey to maintain high purses in the face of new slots competition from Pennsylvania, and Roberts told the group that Gov. Jon Corzine is fully aware of that need. He also made it clear, however, that the legislature was mindful of the economic impact of Atlantic City’s casinos, which wield huge power in the state. The Alliance founding members were the Standardbred Breeders and Owners Association of New Jersey, the New Jersey Thoroughbred Horsemen’s Association, the Thoroughbred Breeders of New Jersey, and the Rutgers University Equine Science Center. Other groups represented at yesterday’s symposium included the New Jersey Equine Advisory Board, the New Jersey Horse Council, the Association of Equine Practitioners, Breeders Cup, and the U.S. Equestrian Foundation. Dennis Downs, senior VP of racing for the Sports and Exposition Authority, said it was uncertain if the Meadowlands would race runners after 2007. Slots fans in the New York City metropolitan area have waited five years now for the opening of the Delight on the Deegan, the racino that one of these days will offer slots at Yonkers Raceway on the Deegan Expressway, one of the busiest highways in America. Those fanciers will have to wait a bit longer. Yonkers announced yesterday that the planned opening of the play-for-pay palace has been delayed again, to an unannounced future date. If waiting makes the prospect more delightful, Yonkers should knock them silly when it finally gets to unveil its $240 million racino. POCONO DOWNS UPS PURSES Pennsylvania, where slots players have waited for action -- along with the state’s racetracks -- for only two years, is preparing to allocate licenses next week. Mohegan Sun at Pocono Downs is not waiting, however, to let the blessings flow down to horsemen. Pocono GM Conrad Sobkowiak and Pennsylvania Harness Horsemen’s Association president Earl Beal Jr. announced yesterday that purses at the Wilkes-Barre area track will be boosted 15 to 20% for the remainder of the 2006 season, which runs until Nov. 11. Pocono’s open pace will rise from $12,000 to $15,000, open class fillies and mares will race for $12,000 rather than the current $9,500, and the lowest class non-winners of a pari-mutuel race will get an increase from $3,400 to $4,000. Beal said horsemen are happy with Mohegan Sun’s commitment to racing, demonstrated by purse increases of some 40% over the last year. Track management announced that preference will be given to horsemen who have raced all season at Pocono, and to those with at least five starts at the track. The new purse schedule goes into effect with the Sept. 29 card. What happens after Pocono gets slots makes for pleasant speculation. 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 KEEP YOUR LEFT UP, BOYS There is danger ahead in Washington, where they are messing around with our livelihood. Two current threats have surfaced, both cloaked with danger for racing. When legislators start fooling around with a subject they don’t really understand, it gets downright scary, and this is one of those cases. Make that two of those cases. U.S. Representative Ed Whitfield, who along with his Kentucky racing commissioner wife loves horses, yesterday introduced something in the House called the Jockeys Insurance Fairness Act. It may be that for jockeys, but it wouuld send owners reeling out of the sport in droves if it ever passed. Whitfield and his co-sponsor, Bart Stupak, a Michigan Democrat, have the endorsement of the Jockeys’ Guild, naturally, but when owners learn of what Whitfield is proposing -- if early reports on the bill are accurate -- they will go ballistic. The Louisville Courier-Journal says the bill “would require that at least 50% of owners’ and trainers’ revenues from simulcast racing agreements be given to state racing authorities, who then would be required to use the money to offer insurance coverage to jockeys.” Whitfield has discovered that racing is a very dangerous sport, which all participants know full well. Like race drivers or test pilots or crocodile taunters they accept the risks inherent in their professions. We do not know all of the details, not having seen the bill yet, and we do not know what Stupak knows about racing, but we challenge his statement that “there is plenty of industry money to cover such a plan. The bill goes farther, and would ban entering any horse that has been administered anabolic steroids of any kind. Anabolic steroids are being researched by the Racing Medication and Testing Consortium, and chemists and veterinarians -- not politicians - should weigh the dangers and impact of such substances. September 22, 2006 Whitfield and Stupak would do all they propose by amending the Interstate Horse Racing Act of 1978 to require insurance funding for jockeys. This is an absurdity on its face, and a danger that racing cannot afford to tolerate. Opening federal legislation that was a work of intense industry cooperative negotiation and has worked well for racing for 28 years to insert bleeding heart mandates on horsemen’s money is inexcusable. I never thought I would find myself agreeing with Marty Maline, the executive director of the Kentucky HBPA, on anything, but I am in total accord with his alarm on this measure. He says the proposed legislation “would be the death knell to racing.” DANGER IN THE SENATE, TOO Majority leader Bill Frist and Arizona’s Jon Kyl are working in the Senate to find a compromise that will work on the ban on Internet gaming. We’re all for compromise, and hope the result is something closely akin to the Leach bill or House bill, both of which have built-in safeguards for racing where Internet gaming is legal in both sending and receiving states. The danger here is not with what they are attempting to do, but what might result from things they are not attempting to do. Attempts are being made to attach the Internet compromise, whatever it turns out to be, to defense legislation and must-pass spending bills. Reuters notes that John Warner, Senate Armed Services committee chairman, has a reputation for not allowing non-germane measures to be attached to defense legislation. We’ll breathe easier when the deal-making ends and our interstate exemptions remain intact. SPITZER, FASO AGREE New York’s candidates for governor, Eliot Spitzer and John Faso, agreed yesterday that the New York lottery should approve NYRA’ MGM contract, and also that the state, not NYRA, owns the three NYRA tracks. 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 September 25, 2006 NO ONE LIKES WHITMAN BILL A MISSED DEADLINE IN NY If early returns are any indication, no one except Representatives Ed Whitfield of Kentucky and Bart Stupak of Michigan, co-sponsors of the Jockeys’ Insurance Fairness Act, like their proposed legislation. The bill calls for not less than 50% of all monies going to horsemen’s groups to be paid back to their racing commissions for use in providing insurance for jockeys, exercise riders, trainers and backstretch personnel. Alan Foreman, CEO of the Thoroughbred Horsemen’s Association, called the bill “absolutely absurd.” Greg Avioli, CEO of the Breeders’ Cup and NTRA, said the NTRA “strongly opposes this effort to amend the Interstate Horseracing Act.” Marty Maline, head of the Kentucky HBPA, called it “the death knell of racing.” D. G. Van Clief, when he heard of the proposed legislation while still commissioner of the NTRA, wrote to Whitfield telling him, “To open the IHA for amendment is fraught with peril, as opponents of gaming and horseracing in general will use that opportunity to offer amendments which could literally decimate the largest agri-business in your home state. More specifically, mandating health insurance by hijacking revenue from carefully constructed simulcast agreements would upset numerous economic balances in our industry...” Chris Scherf, executive vice president of Thoroughbred Racing Associations, who had not seen the bill when contacted by The Blood-Horse, said if the proposal was talking about purse money, “the first people who are going to raise holy hell will be the jockeys, because they will be getting a massive pay cut. Purses will decline dramatically. If they are talking about the minuscule percentage that goes to fund horsemen’s groups, that’s not going to fund much of an insurance program. The bill is either destructive or inadequate.” Scherf thinks the legislation stemmed from a “misunderstanding” of racing in Congress. Gov. George Pataki’s select Ad Hoc Committee on the Future of Racing has decided to defer its non-binding choice for ownership of the New York Racing Association to sometime in that future. The chairman of the committee, J. Patrick Barrett, announced after a meeting last Friday that after spending several weeks evaluating the materials from the four bidders who submitted proposals for the state’s racing franchise, his committee agreed unanimously that a thorough and reasoned deliberation could not occur by the committee’s selfimposed Sept. 29 deadline. No date was set for when a choice might be forwarded to the governor. A PROFILE IN COURAGE It takes guts for a highly successful veterinarian now running integrity issues for California to tell the world that he plans to hold veterinarians accountable when their clients are found in violation of medication rules, but that is what Dr. Rick Arthur did addressing a thoroughbred breeders’ seminar last weekend. Jack Shinar, reporting for Blood-Horse, quoted Dr. Arthur as saying, “I think we got that backwards” after recounting an incident in which a trainer receiving a 30-day suspension and his vet who administered the prohibited medication was fined $300. Arthur thinks vets will be more inclined to stay within legal limits if they know they will be held responsible. NJ RACING GETS A BIG BOOST One of New Jersey’s most influential newspapers, the Asbury Park Press, gave strong editorial support to slots for New Jersey tracks in its Saturday edition. The seven-paragraph endorsement ended by saying, “Legislative leaders must impress upon casino advocates...that the financial health of both the casino and horse industries is vital to the state’s economy.” For casinos, the competition will hardly matter. 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 September 26, 2006 14TH SIMULCAST AGENDA NEW COO AT GREAT CANADIAN The 14th TRA/HTA/AQHR simulcast conference, set for Philadelphia Oct. 16-18, will use the Internet for its theme platform. Changing consumer standards, the impact of the Internet, simulcast signal quality, media rights, tote technology and attracting and keeping simulcast bettors will be discussed by panels during the three-day gathering that annually draws 400 track and supplier attendees. Deadline for hotel reservations at the Society Hill Sheraton is Sept. 29, and for registration with TRA Oct. 6. Additional information is available on the TRA Web site, www.tra-online.com, or by contacting Tony DeMarco at 410-392-9200, email [email protected]. Vincent Trudel, a 25-year veteran of casino and lottery management in Canada and Europe, has been named Chief Operating Officer of Great Canadian Gaming Corporation. Trudel will take over the COO duties from Great Canadian’s chairman and CEO Ross J. McLeod, who has also held the COO post during a transitional period since February. McLeod said, in announcing Trudel’s addition to his management team, that Trudel’s casino management experience includes a strong record of transforming new development projects into successful operations. Trudel will begin his duties Nov. 1 and will oversee management and operation of Great Canadian’s 17 Canadian and Washington state gaming properties, including current and future expansion and development projects. Great Canadian’s four harness tracks -Georgian Downs and Flamboro Downs in Ontario and Fraser Downs and Sandown Park in British Columbia -all are members of HTA. Also coming up is the 9th annual Security Directors Conference, to be held Oct. 18-20 at Saratoga Gaming and Raceway and the Holiday Inn in Saratoga Springs, NY. A special room rate of $95.95 a night, single or double, for Wednesday and Thursday evenings is available through Standardbred Investigative Services, 410-392-2287, fax 410-398-1499, email [email protected], with an Oct. 2 deadline for reservations. A $40 per attendee fee, which includes receptions and two meals on Thursday, must accompany registration for the conference. GREG DEFRANK TO POMPANO Greg DeFrank, son of Hall of Famer Joe DeFrank but a star in his own right, has been named as the new racing secretary at Pompano Park. Greg has worked at six HTA tracks in his career -- Northfield Park, The Meadowlands, Scioto Downs, Indiana Downs, Vernon Downs and most recently at Tioga Downs, where he was VP and Director of Racing. DeFrank said it was a difficult decision to leave Tioga, where he was treated royally, but the prospects at Pompano and chance to return to Florida were deciding factors. BALLY GETS POCONO RACINO Bally Technologies says it has signed a contract to provide a complete casino management system to Mohegan Sun at Pocono Downs, including an initial battery of 1,100 iVIEW touch-screen displays for all slot machines planned for the racino’s opening later this year. Bally also will provide an advanced suite of Power Bonusing products and more than 20% of the initial slot mix, including some of its premium titles. Bobby Soper, Pocono’s president, said Mohegan Sun had chosen Bally “because of its long-term demonstrated commitment to gaming system technology, product enhancements and customer service.” Pocono currently is undergoing a major expansion that will allow for the eventual installation of 2,000 machines. The track plans to place a high level of emphasis on player tracking and player marketing. 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 September 27, 2006 HALLELUJAH! SLOTS IN PA POMPANO ‘CHRISTENS’ BARNS It took more than two years, but the Pennsylvania Gaming Control Board this morning unanimously approved conditional licenses that bring slot machines to the state’s existing five racetracks. HTA members Harrah’s Chester Casino & Racetrack, Mohegan Sun at Pocono Downs, and Millennium Gaming’s The Meadows now can move as fast as possible in starting or finishing construction of their racinos. The gaming board will decide on permanent licenses in December. Magna Entertainment, which sold The Meadows to Millennium and Oaktree Capital Management, says it expects payment of its first note on the sale, $175 million, to be made around Nov. 3, subject to approval of Millennium-Oaktree’s lenders. The $25 million second note will remain intact, but MEC has agreed to release the security requirement for the holdback amount and defer receipt of holdback payments until the opening of the permanent racino at The Meadows, in exchange for MillenniumOaktree providing an additional $25 million of equity support for the track. Magna said the first note payment “will enable MEC to significantly reduce its outstanding debt and strengthen its balance sheet.” When creative Steve Wolf starts thinking about innovative ways to announce developments at Pompano Park, sparks fly. This week it was the “christening” of three new barns on the track’s backstretch. The ceremony took place at 11 a.m., and the track’s leading trainer-driver, Bruce Ranger, duly showed up with his pacer Eleven A.M. for the ribbon cutting. Ranger was quoted as saying, “This is, indeed, a momentous occasion in bringing a state of the art environment to horses and horsemen.” That pronouncement had a Wolfian ring to it, but we’ll take Steve’s word that Ranger said it. One undisputed statement was that of Vice President of Racino Operations Doug Shipley, who said, “No doubt, it’s a proud day and yet another step in our quest to make Pompano Park simply the best in so many ways.” Pompano spent $1.7 million on the three new barns -- about $10,000 a stall for the 170 horses that will occupy them. The track has spent millions more since Hurricane Wilma last October, repairing and rebuilding the race paddock, racing office, drivers’ lounge, signage and the main building housing both grandstand/clubhouse. Officials at Harrah’s said that the conditional approval keeps Harrah’s on course for a fully operational racino by January, 2007. Given permanent licensing in December, Harrah’s will open a 100,000 square-foot casino floor featuring 2,750 slot machines, 6 new restaurants, 3 lounges, an 11,000 square-feet of banquet space. When fully operational, the $430 million project is scheduled to employ 800 to 900 people, and Harrah’s says it expects to draw close to 10,000 visitors a day, which would make it one of Pennsylvania’s most popular tourist destinations. Senior VP and GM Vince Donlevie says the community “seems excited about what’s to come.” BATTLE OVER, WAR GOES ON The battle by Ohio racetracks to get on the November ballot with their slots-funded Learn and Earn scholarship program is won, but a fight still remains as opponents marshall their strength to defeat the idea two months from now. The projection of $2.8 billion in annual revenue, with $850 million going to the scholarship fund, has been challenged, but the tracks think the numbers are realistic. A total of 31,500 slots in nine locations would have to bring in $247 a day, but that number seems reasonable with neighboring Indiana’s slots producing $322 a day. Learn and Earn’s director of operations called the Indiana numbers “a third party validator.” 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 SMOKE GETS IN YOUR EYES Smoking -- or more accurately non-smoking -- is taking on new significance in racing and gaming. Those tracks already impacted by non-smoking bans understand the effect the bans can have, and others are finding out. Profits at Casino Windsor in Ontario are expected to plunge 75% over a three-year period, and the casino and local officials are laying the blame on the provincial government, calling the drop “a spin-off of the nonsmoking legislation.” The chief executive of the Ontario Lottery and Gaming Commission, Duncan Brown, called the ban “one factor” in his projections that profits would fall from $101.1 million to $25.2 million in 2008. He blamed the precipitous drop on the smoking ban, increased U.S. competition, the stronger dollar and a drop in cross-border visits. Casino Windsor is not the only Canadian venue hit. Brown said the two Ontario casinos in Niagara Falls will see profits drop from $136.2 million in 2005 to $32.8 million in 2008. The Windsor casino, incidentally -- or perhaps not incidentally -- is in the midst of a $400 million expansion, which includes a 400-room hotel and a 100,000 square-foot convention center that will house a 5,000-seat entertainment facility. A Michigan-based analyst, Robert Russell, said Casino Windsor management “has done a remarkable job navigating extremely unpredictable waters.” That’s analyst talk, folks, for making all forecasts error-proof. A smoking ban created an instantaneous stir in the Pittsburgh, PA, area yesterday, when Allegheny county officials who passed anti-smoking legislation Tuesday discovered Wednesday that they were “blindsided” by a state Senate bill passed yesterday that exempts Pennsylvania casinos and racinos from local anti-smoking legislation. The state senator who sponsored the legislation, Jane Orie, said, “I’m not a soothsayer. I can’t see that the day we passed this September 28, 2006 out of committee the county passes legislation to ban smoking.” County officials said their concern was that small businesses like bars and restaurants would face a competitive disadvantage if smoking was permitted in casinos but nowhere else. A smoking ban approved in Philadelphia last week also exempted casinos. An aide to powerful state senator Vince Fumo of Philadelphia said the amendment to the gambling bill was intended primarily to protect Philadelphia casinos from losing revenue to out-of-state casinos that permit smoking. The Senate casino exemption now goes to the House, which could approve it, amend it, or reject it. West Virginia legislators, now facing the reality of early Pennsylvania slots competition, began an immediate acceleration to their campaign for table games at track racinos as an antidote. One delegate said that without table games West Virginia could lose up to $50 million in revenue when the Pennsylvania slots begin operation. In Ohio, Bob Roberts, the Cleveland Plain Dealer’s veteran racing writer, editorialized that if Ohio tracks are to remain competitive, voters had better support the slots bill that will appear on the November ballot. He pointed out the disparity in purses between Pennsylvania and Ohio tracks even before slots arrive in Pennsylvania, and he blasted “the hypocritical party line of Sen. George Voinovich and Gov. Bob Taft,” who oppose an expansion of gaming in Ohio. Roberts suggested that his readers ask those officials how may lottery games were added to the schedule in Ohio during their administration. In Australia, much merriment and serious questions about South Australia’s betting agency accepting a bet on a horse that died two weeks earlier. Red faces are plentiful and refunds are being issued. 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 September 29, 2006 WHAT’S UP AT OHIO STATE? NEW COMMISSIONER IN PA We hope that none of our four track members in the state of Ohio will mind, but the editor will root as hard as he can against Ohio State for the remainder of the racing season. That seems only fair given the university’s strange reasoning on the Learn and Earn proposal to be voted on by Ohio citizens in November. Ohio State’s board of trustees yesterday issued a statement urging voters to defeat the ballot amendment, saying, “While it promises to provide additional funds for college scholarships, it does not fully address how we make higher education more affordable or more available to more Ohio students.” It came as a surprise to him, and he wasn’t quite sure how he came to be nominated, but Thomas Stanko, a retired English professor at Edinboro University, is a new member of the Pennsylvania Harness Racing Commission. Active in civic affairs and the Washington county Democratic committee, Stanko, 75, had casually mentioned to a friend, former state Rep. Brian Clark, that he would like to serve the state in some public capacity. Clark had been a nominee for the harness racing commission himself, but his nomination by Gov. Ed Rendell was withdrawn after he failed to get support from the Republican-controlled Senate, which must confirm all nominees. The first Stanko knew about his nomination by Rendell was a phone call from a longtime friend, state senator J. Barry Stout, and another from Rep. Tim Solobay, both Democrats. Stout said Stanko was “a person of good character, good standing.” Solobay is from Stanko’s home town of Canonsburg, near The Meadows. Stanko, who taught at Edinboro for 34 years, has owned thoroughbreds, but not harness horses. If confirmed, he will help decide who gets Pennsylvania’s final harness racing license, and racino. The Pennsylvania House is expected to debate a bill shortly, already passed by the Senate, that calls for 31 amendments to the slots bill passed two years ago. The amendments include giving the state legislature sole authority to decide whether smoking will be allowed or banned in the 14 casinos and racinos in the state, and making middlemen slot suppliers and distributors optional. That statement is stupid, and would be if it came from junior high school students rather than trustees of a university that prides itself as a major center of learning (and football). Linda Siefkas, a spokeswoman for the Learn and Earn initiative supported by our tracks, pointed out the stupidity when she told the Cleveland Plain Dealer, “I think it is ludicrous to say that it doesn’t address the affordability issue when we are talking about making a full tuition available to every child in Ohio. If that is not making college affordable and accessible, I would love to know what is.” So would we. The amendment promises to set aside 30% of gaming proceeds each year for tuition payments. We share the skepticism of Cuyahoga (Cleveland) county commissioner Timothy Hagan who asked if the Ohio State board, appointed by Gov. Bob Taft, was pressured by the governor to take the position. A spokesman for the governor did not deny that possibility, but merely said, “The governor didn’t have to direct the board on issue 3. There are no shrinking violets on the board. They know bad policy when they see it.” We know political pressure when we see it, and this is an academic disgrace. Go Iowa! Go Michigan State! Go Michigan! Go anyone! WEG TERMINATES EVANS Chris Evans, vice president of thoroughbred racing at Woodbine Entertainment, has been fired, following suspension of his license for three years by the Ontario Racing Commission for involvement in an extramarital affair with a married commission steward he had endorsed for the job. 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 INTERNET BILL ANALYSIS What follows is analysis and comment on the Unlawful Internet Gambling Enforcement Act of 2006, which passed Congress in the last minutes before the election period recess, without some senators even seeing the final version of the legislation, according to them. I. Nelson Rose, the noted authority on gambling law, said it “was rammed through Congress by the Republican leadership, as title VIII of a completely unrelated bill, the Safe Port Act, HR 4954, based on the Leach and Goodlatte bills, HR 4411 and 4777, but with some important differences. October 2, 2006 illegal under the Wire Act. The DOJ insisted that any Internet prohibition passed by Congress not expressly authorize Internet betting on Horseracing. The DOJ believes this will allow it to continue to argue that the Interstate HorseRacing Act does not do exactly what it says it does, legalize interstate horseracing. This new statute requires that Internet gambling be ‘unlawful.’ But it would be difficult to find a federal, state or tribal court that clearly made a specific Internet bet illegal. With permission of Professor Rose, we are providing some pertinent excerpts of his analysis of the bill as passed. The material is copyrighted and is a registered trademark of Prof. Rose as Gambling and the Law, and passages are chosen at random and not in consecutive order. “It is interesting that Congress decreed that states can decide for themselves if they want to have athome betting on horseracing, but not on dogracing. (Editor’s note: there is no Interstate Dog racing Act). Congress also decreed that tribes can operate games that link reservations, even across state lines, but not the states themselves; state lotteries are not exempt. “The Act begins with Congress’s findings and purpose. These include a recommendation from the discredited National Gambling Impact Study Commission, whose chair was the right-wing Republican incompetent Kay Coles James. Findings include the doubtful assertion that Internet gambling is a growing problem for banks and credit card companies. It correctly states that ‘new mechanisms for enforcing gambling laws on the Internet are necessary,’ especially cross-border betting. “The great unknown is how far into the Internet commerce stream federal regulators are willing to go. The Act requires institutions like the Bank of America and Neteller to i.d. and block transactions to unlawful gambling sites, wherever they are. But, while the Bank of America will comply, Neteller might not, because it is not subject to U.S. regulations.” The full text of Professor Rose’s interesting analysis is being reproduced on HTA’s Web site www.harnesstracks. com. “The Act contains a standard clause that it does not change any other law or Indian compact. It repeats this many times, to make sure that no one can use the Act as a defense to another crime, or to expand existing gambling. Jay Hickey, president of the American Horse Council, which fought hard and successfully for racing’s exemption, said “After nearly a decade of consideration, Congress finally passed Internet gambling legislation. The bill includes the racing provisions that were in the bill passed by the House this summer and protects racing’s interstate wagering activities by maintaining the status-quo with respect to such activities under the Interstate Horseracing Act. The President is expected to sign the bill shortly.” “Most importantly, the Department of Justice is arguing before the World Trade Organization, in the dispute between the U.S. and Antigua, that all interstate gambling is 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 IMMEDIATE INTERNET IMPACT The passage of the Unlawful Internet Gambling Enforcement Act had immediate consequences in Great Britain, as Internet gambling stocks there fell sharply yesterday and some major bookmaking companies announced they would no longer accept bets from the U.S. The outlawing of the use of credit cards, checks and electronic funds for online wagers in the new law created drops as deep as 67% in some gambling shares. PartyGaming, the biggest of all the online operators, said it would discontinue its U.S. business, and Sportingbet, which had two officers arrested in the U.S. in recent weeks, saw its stock value cut almost 70% overnight. 888 Holdings, which took a 48% bath, said it was suspending its U.S. operations. Gaming Law author Nelson Rose, whose copyrighted analysis of the bill appears on HTA’s Web site, noted that “the new bill says you can’t transfer money directly to gambling operations. But that doesn’t stop consumers from paying through online payment services such as NoTeller, as they have before.” THE RACINO WHIRL Busy doings in the rush to slots. HTA member VERNON DOWNS announced that it expects to begin slots operations in its racino Oct. 28, with 777 machines. A study done last year forecasts as much as $9 million profit, with half of the money generated going to the state lottery for education under the New York law. HTA member SARATOGA GAMING AND RACEWAY broke ground yesterday for a $15 million addition to its racino, which when completed will increase VLT terminals by 400, to 1,724 from 1,324. The expansion, a 45,000 square-foot twostory structure, will include a 5,000 squarefoot nightclub and a 300-seat buffet restaurant, and will result in the addition of 115 employees to the present force of 450. October 3, 2006 In Florida, the state granted its first license for slots to Mardi Gras Racetrack and Gaming Center, formerly Hollywood Greyhound track. The licensing came almost two years since Florida voters approved slots for Broward and Miami-Dade counties. Miami-Dade rejected the idea, but Broward could get underway by the second week in October. HTA member POMPANO PARK reportedly has not completed its paperwork as yet, according to the Division of Pari-Mutuel Wagering, but is moving forward on construction of its racino. Pompano still hopes to be operational with slots by early next year. FLAMBORO SEEKS LESS DATES In Ontario, HTA member FLAMBORO DOWNS seeks to reduce its 2007 racing schedule by 52 days. Great Canadian Gaming’s vice president of racing operations and HTA director Chuck Keeling said, in explaining the request to the Ontario Racing Commission, “Simply put, if we use common retail theory, we are flooding the marketplace with product and not getting the favorable response desired. When that happens can you blame anyone for changing the way they do business?” Keeling said the change is not about the profitability of Great Canadian. He said the status quo is just not working, with the track suffering “a relentless decline” in betting, and he intends to attempt to decrease quantity and increase quality of its racing. “We’ve listened to our customers,” Keeling says, “and they want more quality. There is also an issue of horse population during the summer months, which is why we have elected to go to three days from April through September and not compete for horses with the small tracks that open up for that period.” STILL TIME TO BUY ART If you would like to buy beautiful racing art for trophies or decor, call Stan at 520-241-7145 for exclusive personal shopping. 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 October 4, 2006 BETTER OFFER? MOVE TRACK PEOPLE IN THE NEWS That’s what Windsor Raceway has announced it plans to do. Standardbred Canada reports that the Ontario track across the river from Detroit has decided to accept an offer from the town of Tecumseh to move out of Windsor and build a $50 million Ice Track complex, with a 6,500 seat arena with three ice pads, a Wayne Gretzky’s restaurant, a museum, and -- of course -- a slots parlor. The report says Windsor’s decision “stunned” Windsor city officials, which had delayed acting on investing $15 million into the project, while Tecumseh’s council unanimously agreed to the idea. Windsor officials immediately “expressed outrage” that Ice Track would negotiate with two municipalities at the same time, but they also drew criticism that they had dragged their feet on the issue of a new civic ice arena. The Ontario Lottery Gaming Association announced that it would not interfere with Windsor’s move as long as its interests were protected. Ontario Harness Horse Association executive vice president Brian Tropea said the new facility would “drive a renaissance in harness racing in southwestern Ontario.” Lisa Underwood, named yesterday by Gov. Ernie Fletcher as the new executive director of the Kentucky Horse Racing Authority, succeeding Jim Gallagher. Ms. Underwood, who has been acting general counsel for the Authority, also has been deputy commissioner for the Department of Public Protection, working with 10 state agencies. She is a graduate of the University of the South and the University of Kentucky law school. ARTSPLACE IN TROUBLE Harnessracing.com, the Web site of Horseman and Fair World magazine, reports that the outstanding sire Artsplace is at the University of Pennsylvania’s famed New Bolton Center being treated for laminitis, a life-threatening foot disease. The 18-year-old stallion joins another famous New Bolton patient, the thoroughbred runner Barbaro, at New Bolton. He was moved to the facility from Southwind Farm in Pennington, NJ. Owned by a syndicate, Artsplace has been managed by George Segal’s Brittany Farms Stallion management. A brilliant star on the racetrack, Artsplace carried that greatness to the breed- i n g shed, where he sired 14 pacers that each earned more than $1 million in their racing careers. David Siegel, president of Equibase’s Trackmaster system, became harness racing’s fastest amateur driver at HTA member Sacramento Harness Racing at Cal-Expo when he drove the pacer My Roomie to a 1:52 2/5 mile victory. Siegel, a graduate of Stanford, reported a carefully planned intellectual approach to his record performance, having calculated the likely moves of other leading contenders in the race and executing his strategy and tactics perfectly. A driver for only two years, Siegel gave Sacramento GM Chris Schick credit for strongly supporting amateur racing at the track, noting that it was “something special that only harness racing can provide.” Joe Morris, president of HTA/USTA Member Perks, announced that UPS has become an official partner, and will be offering its broad range of products and services at significant discounts. $15 BILLION, NICE BIG NUMBER That’s the figure that Harrah’s Entertainment says Apollo Management and the Texas Pacific Group has offered to acquire Harrah’s, the largest casino operator in the world, its holdings including HTA member Harrah’s Chester Casino and Racetrack. Its shares rose 14%, but analysts speculate that competing offers could emerge. 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 BACK FROM ANOTHER ART AUCTION Greetings. We’re back from another HTA art auction, this one grossing just over $300,000 for the two days of selling woodcarvings, oils, watercolors and sculptures. It was, as usual, a horrendously expensive project, involving logistics of staffing, advertising, transportation, housing and all the rest, and we will provide the Scholarship Committee with net results as soon as the huge undertaking can be reconciled. The sale topper was a set of 10 oil paintings of famous American trotters, done in the late 1890s and early 1900s by the noted American equine artist Gean Smith, which brought $15,500. A magnificent large Zenon Aniszewski oil of a field of charging trotters brought $10,000, as did a 1929 George Ford Morris polo oil; a superb John Kittelson woodcarving that won best of show sold for $7,500; a 1910 oil painting of Home to Thanksgiving brought $6,500 (the Currier & Ives lithograph of the original 1857 painting now is selling for $32,000 in New York); a harness racing oil by famed Hungarian artist Pal Fried sold for $6,000; an exceptional large oil by David Pavlak brought $5,500; a small 1902 George Ford Morris of a saddlebred went for $5,200; another Aniszewski sold for $5,000; and an oil of the Ascot Gold Cup by Alfred Egerton Cooper went for $4,700. Full results of the auction can be seen on the home page of the HTA Web site, www.harnesstracks.com. A POL WITH SOME PASSION No, not Mark Foley. We’re talking about a passion for humankind, and the former governor of Massachusetts Paul Cellucci. Governor from 1997 to 2001, and then an executive for Magna Entertainment and Ambassador to Canada, Cellucci closed out his political campaign account, worth around half a million dollars, giving the money to charitable causes like the Boys and Girls Clubs of Massachusetts, afterschool programs, and a 4-H foundation. October 9, 2006 ONLINE BAN GENERATES NEWS Whatever results it may create, the federal ban on Internet gaming is providing grist for the news mills of the world. In England, the British government is trying to lure its gambling companies home from places like Gibraltar and the Isle of Man by providing them safe haven and tax breaks. Although one company, Empire Online, said it is planning to diversify its investments, others are waiting to see how much zeal the Justice Department will use in pursuing and prosecuting. Party Gaming, the world’s biggest online operator, and 888 Holdings said they plan to stop accepting bets from U.S. customers if President Bush signs the bill, as expected. PartyGaming derives 76% of its revenue from the U.S., and 888 says more than 50% of its business comes from here. In American news sources on the issue, millions of words of speculation already have been written, and more are certain to come. Alan Feldman, who speaks for giant MGM Mirage, said that “Trying to stop Internet gambling is akin to holding a wave on the sand and trying to stop the ocean from sending any more.” Frank Fahrenkopf, president of the American Gaming Association, says there are between 2,500 and 3,000 offshore sites, and only a hundred of them are public corporations listed on European exchanges. He told the Wall Street Journal that while there might be a temporary halt in online gambling activity, “new companies will pop up. The money will find its way there.” An interesting view was expressed to the Journal by Steve Verdier, director of congressional relations for the Independent Community Bankers of America, which represents almost 5,000 U.S. banks. He said that if the Federal Reserve and U.S. Treasury, who will write the regs, “find that the banks just don’t have the technology to track and block these transactions, then we don’t have to. The Fed and Treasury are not supposed to ask us to do the impossible.” 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 October 10, 2006 POCONO SETS ITS SLOT DATE DON’T WANT IT? TURN IT DOWN It isn’t clanging yet, but a massive Powerball slot machine was unveiled at the track yesterday by Mohegan Sun at Pocono CEO Robert Soper, who said that if all required approval is in place, the Powerball and hundreds of others like it will start operating at the northeast Pennsylvania track Nov. 14. “Casinos are happening,” Soper told attendees at a slots ceremony yesterday. “It’s for real. I think there’s a feeling not only of relief but excitement that we’re able to move forward, and we have an actual opening date that is not too far off. The bulk of our new customers will be slot players who currently do not wager on horse racing. We plan to try to market horse racing to these new customers in hopes that some of them enjoy it.” Soper said he expects most of his gamblers to be from northeastern Pennsylvania, but he also expects some from New York and New Jersey. Soper has hired 400 new employees, from thousands who applied for the jobs, to staff the $70 million racino, with its 40,000 square-foot slots parlor, two gambling floors, and 1,083 machines. Five hundred of them will be reel games, 450 video and video poker in denominations up to $100 a pull for high rollers. The machines were delivered from WMS Gaming Inc. of Waukegan, IL. Pending approval, the machines will receive private invitation tests on Nov. 10 and 12, and if successful the public will get its first chance at slot machines in Pennsylvania on the 14th. The racino that is opening is located in the present track building, but construction will begin next year on a separate racino, on a former track parking lot, which will hold as many as 2,000 slots, a food court and three full-service restaurants, an 18,000 square-foot nightclub, retail shops and a ‘Kids Quest’ child care center. When Pocono introduces the slots age to Pennsylvania, the Keystone state will become the 12th in America with legal slots. Soper says he is proud to set the precedent. The world is changing hourly, but bureaucracies stay the same. The Office of Budget and Management in Ohio, instead of welcoming a huge influx of money for education in the state, is bickering over how much that influx will be. Backers of the Learn and Earn amendment predict $853 million a year will be available for scholarships for worthy Ohio college students. The OBM scoffs at that number, saying slots would generate only about $324 million a year for scholarships. It says Ohio can support only 10,035 machines, rather than the 31,500 the backers of the amendment are projecting. We are impressed by both numbers, and instead of trying to impress voters with their number-crunching prowess -- if in fact it is prowess -the OBM should concentrate on getting State Issue 3, the Learn and Earn program, passed. If they aren’t happy with $324 million -- their number -- fine; let them turn it down. A spokesperson for Learn and Earn said, “The (OBM) report is so appalling and so ridiculous that we’ve asked a group of third graders to review it, because the math is so bad.” Only time will tell who is right, but if the measure passes next month it will be interesting to see the figures next year. TWO WELL-KNOWN FIGURES DIE The sport has lost two popular participants in the game. WARREN J. DICKEY, close associate and administrative assistant to harness horse owner Joe Hardy, owner of the giant 84 Lumber company, died at 83 in his native Indiana. Dickey, a close friend of Delvin Miller, was a genial and popular figure in the sport for years. HERMAN HYLKEMA, who came from Holland and served as an assistant trainer to Joe O’Brien, Leon Boring, John Patterson and Howard Beissinger before campaigning his own stable, mostly at The Meadows, died in his native Holland at 76. Beissinger called him “one of the hardestworking men I ever knew.” HARNESS TRACKS OF AMERICA Executive Newsletter A daily fax and e-mail report on racing and gaming developments in North America and beyond Paul J. Estok, Editor October 11, 2006 YONKERS OPENS CASINO BID FOR HARRAH’S RAISED The long-awaited video lottery casino at Yonkers Raceway opened its doors at 10 a.m. this morning, and people jammed the shuttle buses carrying them from the parking lot to the casino. Empire City Gaming at Yonkers Raceway, as the reborn facility is called, initially will operate on a limited basis. Only the first floor of the track’s renovated clubhouse, with approximately 1,800 video lottery terminals, is open for business. The upper floors of the clubhouse and an adjacent building, where most of the racino’s 5,500 total planned VLTs will reside, are still under construction. Racing at the 107-year-old track will not resume for another week to 10 days, according to Timothy Rooney Jr., the track’s general counsel and son of owner Timothy Rooney. Under an agreement ending a lawsuit brought by the track’s horsemen earlier this year, the track will make up the missed racing dates. Empire City at Yonkers Raceway is the closest casino gaming available to New York City, and is projected to reap millions per week for the state in addition to big purse money for horsemen. The track is planning a more formal grand opening once the project’s first phase is completed, sometime before the end of the year. Two private equity firms, the Apollo Management Group and the Texas Pacific Group, have sweetened their bid to take over Harrah’s Entertainment, the world’s largest casino operator, according to a report in The New York Times. The new offer, said to be more than $15.5 billion, came after the company’s board of directors rejected the group’s original offer of $15.05 billion in cash, or $81 per share. ISRAELIS HEAD TO THE RACES After 10 years in the works, the city of Afula was scheduled to be the venue for Israel’s first-ever modern thoroughbred and Arabian race meet today in the new Gilboa Racetrack. Racing at the track may be short-lived, as controversy has surrounded the project. Although no official betting was to be permitted at today’s inaugural race meet, questions have arisen regarding what the Jersusalem Post called “horse racing’s tendency to promote a culture of gambling and crime.” The multi-year development plan put together by various horse lovers and entrepreneurs calls for building a grandstand (there currently is none), a shopping mall and a hotel. NEWS FROM CANADA Alexis Nihon Real Estate Investment Trust is hunting for a new chief executive officer after Senator Paul Massicotte announced that he plans to step down in early 2007. “Now, having led the company through strong growth and its reorganization into a REIT, I would like to focus on other interests,” Senator Massicotte said. He cited his duties as a member of the Senate and his ownership of Attractions Hippiques Quebec Inc., which will soon own and manage four horse racing tracks in Quebec, including HTA member Hippodrome de Montreal. Senator Massicotte said he will continue to serve on Alexis Nihon’s board of trustees. DIXON PROJECT IN STRETCH The Dixon, California, City Council began final discussion and deliberation on Magna Entertainment’s proposed Dixon Downs on Tuesday evening, and could vote either up or down on the project as early as next Friday night. The deliberations come after six public meetings on the proposed $250 million track. The city planning commission also held seven public meetings in the proposal in September. At Monday’s meeting, more than 100 union members from the local building trades showed up wearing t-shirts showing support for Dixon Downs. The approval comes six years after Magna Entertainment Corp. proposed building a casino and racetrack on the 260-acre site. 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 SANTAYANA WAS RIGHT More than 100 years ago, the Spanish-born American author George Santayana wrote that “those who cannot remember the past are condemned to repeat it.” Others over the years have paraphrased that truism into “those who cannot remember history are forced to relive it.” For those who can recall the birth of Harness Tracks of America 52 years ago, when pari-mutuel tracks rebelled at what then was breeder-control of the USTA, the reason for HTA’s existence became clear again yesterday. Yonkers Raceway, with the introduction of slots, opened what can be a new era for harness racing and harness horsemen in New York. The chairman of the USTA, which represents tracks as well as horsemen, was on hand, protesting the opening and suing Yonkers. Joe Faraldo slipped off his USTA hat and slipped on his Standardbed Owners Association hat for the performance, of course, but he cannot separate himself from his USTA responsibilities by changing hats. Faraldo launched a blistering attack on Yonkers, saying its opening of the racino before resuming live racing “is in total disregard of the horse industry.” Faraldo’s SOA filed a lawsuit in State Supreme Court and sought an order to show cause, and he told his members, “We may ask the Division of the Lottery to take over the operation of the machines until the Rooneys open for racing....” Faraldo apparently was sorely upset by a ribbon cutting ceremony “to which we were not invited.” He says the SOA “will continue to move on all fronts, some of which I really can’t discuss here.” He also stressed his chumminess with the New York Racing and Wagering Board, saying “from my walk-through at the track with the Racing Board staff I have been told that because the track has not complied with things like installing race cameras; TV monitors for the patrons and judges; repaired a paddock left in shambles; installed an area to bet.......” leaving the sentence unfinished. October 12, 2006 The next sentence read, “Is it hard to figure why Racing and Wagering won’t give them an OK?” It seems from this distance that Faraldo outlined the precise reasons Yonkers is not yet ready to open for racing. Tim Rooney made it even clearer, saying he would not open until construction -- presumably including the matters Faraldo outlined -was completed. Tim Rooney Jr., now Yonkers’ general counsel, pointed out that a portion of the money generated by the racino will still go toward racing purses. “It’s beneficial to all of us -- the state, the raceway and the horsemen -- to get open as quickly as possible with the video gaming site.” Personal pique and sensitivity should play no role in this dispute. What good could possibly accrue from delaying a soft opening of Yonkers’ racino simply because it was ready for business before racing? Actions like these from the chairman of the USTA -- but certainly not from the USTA itself --recall the history of HTA’s beginnings. That’s exactly why there is a vital HTA today, and why it is an organization that is needed by pari-mutuel track operators everywhere, including Yonkers. MORE PROBLEMS IN OHIO In a setback for Ohio tracks hoping for public approval of slots next month, the Cleveland NAACP is urging its 9,000 members to vote against the Learn and Earn proposal, Issue 3 on the November ballot. That constitutional amendment would permit slots at nine sites in Ohio, with 30% of revenues going to college grants and scholarships for worthy Ohio students. The NAACP told its Cleveland members that, “Gambling clearly provides a great deal of revenue and some segments of the community clearly benefit. Unfortunately, the great majority does not.” Top Cleveland business leaders, the mayor of Cleveland, U.S. Rep. Stephanie Tubbs Jones and county commissioners are supporting Issue 3. 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 October 13, 2006 INTERNET BAN NOW LAW A MIXED BAG AT YONKERS As expected, President Bush this morning signed the Safe Port Act, which passed with an Internet gambling ban called “The Unlawful Internet Gambling Enforcement Act” tacked on, making Internet gambling illegal in the U.S. Happily, horse racing’s exemption under the Interstate Horseracing Act of 1978 remains intact. Although some are skeptical as to its effect, the bill already has had a dramatic effect overseas, with Sportingbet selling its U.S. business line for $1 and Betcorp closing its U.S. operations. Betcorp issued a statement saying that once Bush signed the bill, “the Group will no longer be able to accept funds transfers from customers resident in the United States. Given that a substantial proportion of the Group’s customers are located in the United States, this will have a very material adverse impact on the Group.” In Antigua, government regulators are urging the 44 licensees in that country to divert their business to Asia. Antigua, which won a World Trade Organization ruling last year in a trade dispute with the U.S. involving Internet betting, now is amending its complaint to the WTO to include the new law as signed today. The WTO, in its earlier decision in favor of Antigua, said the U.S. has inconsistently applied gaming law so as to prejudice foreign countries, a violation of GATS, the General Agreement on Trade in Services. Both Antigua and the U.S. are members of GATS. Interactive Gaming News, which covers Internet gambling, carried interesting comments on the new law. Martin Owens, an attorney specializing in online gambling problems, wrote, “The very people the Department of Justice and the Republicans claim to be fighting -- the pirates, the wise guys, the fly-by-night brigade -- these residents of the shady side feel no responsibility toward the public. They’re there for the money, period. And Bill Frist has just handed them a new lease on life.” As indicated yesterday, Empire City at Yonkers Raceway, the new racino operation smack on the Deegan Expressway, one of the world’s busiest stretches of urban highway, got underway with a “soft opening.” Horsemen protested because racing did not begin simultaneously, although they reportedly will receive $60,000 a day for their purse account from slots operations. Then, facing charges that it discharged raw human and animal waste into the Bronx River, Yonkers settled with the state by paying a $9 million fine. Under the agreement with attorney general Eliot Spitzer and the state Department of Environmental Conservation, the raceway agreed to stop the ongoing pollution and take remedial steps to help clean up the river. Part of the problem was horse manure that routinely flushed into storm sewers that flow into the river. A spokesman for Spitzer, who is expected to be the next governor of New York, said the attorney general held off announcing the penalty until after the racino’s opening ceremony. “From our perspective,” a Spitzer spokesman said, “it really didn’t make a difference. We’re more concerned with the result.” Yonkers said that although it “strongly disagreed” with the factual findings in the settlement, it believed it was in the best interest of all parties, “particularly the children of New York who are the biggest beneficiary (of the VLT program) to promptly resolve this matter to ensure the environmental protection of the Bronx River and the generation of funds for education in New York.” Under the agreement, Yonkers will pay $6 million toward storm water pollution reduction projects, $2 million in penalties to the state, and $1 million to an environmental education center in Yonkers. The Bronx Zoo and Bronx Botanical Gardens also were cited by Spitzer, and completed remediation measures mandated by the state. The City of Yonkers was fined $1 million for slow action. 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 A TALE OF TWO CITIES An irony in the slots situation in Yonkers, NY, and Chester, PA. At Empire City at Yonkers, where the racino is now open but racing is still dark, 3,000 Empire City Players’ Club cards were issued the first day, and lottery officials say the machines are netting more than $400,000 a day despite the “soft” opening with only 1,879 machines in operation. Some 5,500 are expected to be online by the end of the year, and 7,500 ultimately will be in operation when Yonkers’ construction is completed. That construction work has resulted in a delay in starting live racing, a situation SOA president Joe Faraldo calls “disgraceful.” The public’s response has been different, with enthused gamblers hailing the convenience of the location and a number telling reporters they no longer plan to go to Atlantic City. In Chester, there is racing but no racino yet, as Pennsylvania closes in on introducing slots. Track officials are pleased with the response to racing, and anxious to get rolling with the 2,750 machines they expect to come online in January. Response to the physical plant and restaurant food and facilities has been highly favorable to date. THE BATTLE DRAWN IN OHIO If you live in Cleveland and read the Plain Dealer, chances are you’ll vote for slots next month. If you live in Columbus and read the Dispatch, chances are a little more iffy. The Columbus paper has been waging war on the idea of slots, the latest salvo claiming that each of the 340,262 signatures that were obtained to get the issue on the ballot cost $11.76, based on what the paper says was $4 million spent in collecting the signatures. The Plain Dealer, in a Sunday editorial, said, “Learn and Earn: Yes” and said it was time f o r Ohio to join the majority of states that profit from slots. October 16, 2006 The paper said Issue 3, the slots proposal, “would entail some social costs, and it falls far short of perfection as a constitutional amendment, but its benefits still outweigh the negatives.” It noted that it will create 5,300 permanent jobs in downtown Cleveland alone, eventually would help finance a new convention center and major medical-merchandise mart, and of course provide somewhere between the $324 million projected by the state and the $853 million predicted by the tracks for college grants and scholarships for Ohio students, that money coming from 38% of proceeds from the 31,500 machines allowed under the proposal. SAME DAYS, FEWER RACES That’s what the California Horse Racing Board’s Strategic Alliance Planning Committee has proposed for the Golden State. The president of the Thoroughbred Owners association, Drew Couto, agrees, saying, “It’s better to eliminate races rather than race days.” Jack Liebau, president of Hollywood Park, was a strong dissenter, saying, “Decisions like this will just cause the earlier demise of Hollywood Park.” California Horse Racing Board chairman Richard Shapiro, commenting on this, said, “While we respect Hollywood Park’s investment, we have to look at the deeds that have been done; look at the marketing and advertising over the years and a long-term commitment we can count upon.” RACING INFO CHALLENGED Errors in program information at Woodbine tracks are being investigated by the Canadian PariMutuel Agency after a racing fan filed complaints of inaccurate information. The complaint focuses on chart lines, where the fan has compared race video to the charts and found what he claims are serious charting mistakes. Woodbine is introducing electronic charting to eliminate chance of human error. 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 October 17, 2006 THE OLD 12TH HOUR CHANGES IF YOU’RE IN NY, PAY HEED The Pennsylvania House was expected to discuss and adopt a package of 31 amendments to the state’s gaming law today, but there were no assurances it would take action. If it does not, the Senate, which approved the amendments in September, may not have time to do much about it tomorrow, the final day of the session before the Nov. 7 election. The Senate wants, among other things, middlemen suppliers of slots equipment to be optional rather than mandatory; elected officials to be barred from owning up to 1% of a racino or casino; the state attorney general to have more investigatory powers; children to be barred from being licensed as investors; and the state, instead of cities or counties, to have sole power over regulation of smoking in slots facilities. One key senator, Republican Jane Orie, said she is “cautiously optimistic” that the House will act on the bill today and give the Senate time to take final action tomorrow. If that doesn’t happen, it may not happen at all. The Senate has only two more days in 2006 scheduled, after the elections, and the current session ends Nov. 30. After that, new legislators won’t convene until January. He isn’t governor yet, but it is likely he will be after Nov. 7, and the New York Sun says he already has picked his administrative team. Like Spitzer, most are lawyers and graduates of prestigious eastern law schools. They include Lloyd Constantine, a powerful antitrust lawyer; Paul Francis, a Yale and NYU law graduate who was a managing director of Merrill Lynch Capital Partners, CFO of Ann Taylor Stores, and founding CFO of Priceline; Michele Hirshman, a Yale Law graduate and former federal prosecutor who runs Spitzer’s office; David Nocenti, a Princeton and Columbia Law graduate who is Spitzer’s in-house attorney; Spitzer’s wife, Silda Wall, a Harvard Law graduate formerly with the huge Skadden, Arps law firm; and William Mulrow, another Yale man who is an investor in Excelsior Racing, a bidder for the NYRA franchise. VICTOR, DALEY, SUE IN INDIANA Adam Victor and Son, who campaign a powerful harness stable, and their trainer, Noel Daley, have sued the Indiana Racing Commission and its executive director, Joe Gorajec, for scratching three stakes fillies and another horse at Indiana Downs in August. Daley had served a six-month illegal medication suspension in New Jersey last winter, but was not under suspension at the time of the scratching of the horses. The Victors and Daley claim a violation of their constitutional due process rights, and seek damages. Gorajec calls the suit “without merit,” and says it will be “vig- orously defended.” A ‘LAW SCHOOL’ FOR TRAINERS The Pennsylvania Harness Racing Commission, mindful of its role of “maintaining and protecting the integrity of the sport,” is inaugurating a pilot Trainers’ Responsibility Integrity Program that will provide free testing of member trainers and their employees and could provide mitigation of fines and suspensions issued under the trainer’s responsibility rule. All trainers in the state will be required to sign a document saying whether they will join the program, called TRIP, and doing so is optional. BETONSPORTS AGREEMENT? Bloomberg News reports that Antigua-based bookmaker Betonsports, under a federal indictment, has reached an accord with the U.S. government to end litigation. A federal judge gave the company and the government a week to complete the agreement to resolve the feds’ civil suit against Betonsports. An assistant attorney general says he believes there are no substantive disagreements remaining. 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 SENATE HAS SLOT CHANGES The Pennsylvania House passed more than 40 changes to the state’s slots bill yesterday, and the state Senate has until tonight to accept or reject them before the election recess, and only two days after the election to consider them if it doesn’t act today. The changes approved by the House that were approved earlier by the Senate include preemption of local zoning authority and allowing a Gettysburg casino developer to apply for a slots license, over the objections of Civil War buffs at putting a casino near the historic battlefield site. The House also approved prohibiting public officials from owning up to 1% of a casino or gaming company, and gives the state attorney general more authority to investigate wrongdoing at casinos. The House did not accept the Senate rejection of middlemen suppliers of slots equipment entirely, modifying it to make middlemen suppliers mandatory for one year, or until their licenses expire in 2007, and then making the use of suppliers optional. It remains to be seen what the Senate will do about that House change. END OF LATE ODDS CHANGES? A full report on the TRA-HTA-AQHA International Simulcast Conference in Philadelphia and the Florida Gaming Summit in Fort Lauderdale will be sent shortly to all HTA directors and key member track personnel. In one highlight of the Philadelphia conference, J. Curtis Linnell, director of wagering analysis for the TRPB, said that starting January 1, “Pari-mutuel associations will be able to institute a ten-second forced win odds cycle that will report at least 95% of the pool, which almost guarantees approximate final win odds. This is a huge development from where we were two years ago. Tracks have told us that they did not want dramatic odds shift 30-40 seconds after the start of the race. That came from fans.” October 18, 2006 GOOD WORK & A GOOD SCORE Congratulations to HTA member THE MEADOWS for its special 8-page insert in the Washington Observer-Reporter, its local newspaper. Nice features, color pix, and a message from general manager John Marshall. A fine example of what you can do with money from THE MOUNTAINEER RACE TRACK AND GAMING RESORT, one of Ted Arneault’s track holdings that also include HTA member Scioto Downs, Presque Isle Downs and Jackson Raceway. The track’s Media Guide is one of the classiest publications in racing, and everyone who had a hand in its production, from executive editor Tamara Cronin down, including design and production by Vance Wright Adams and Associates of Pittsburgh, photographers Chuck Saus and Ethel Riser, researcher Bill Mooney, contributors Debbie Howells and Joe Narcavage, and printer Knepper Press of Oakdale, PA, deserve credit for a superb, slick and exceptionally professional publication. We have a hunch that Director of Racing and Corporate Secretary Rose Mary Williams had a big hand in this production, and President and CEO Arneault and his associates can be proud of this big and glossy beauty of a press guide. A big score for HTA member BUFFALO RACEWAY in the important 20-page “First Sunday” section of The Buffalo News. Sharing the full color front page with two lovely models was driver Jim Morrill, and inside was a smashing spread, with a giant page and three-quarter color photo of Jim, in a feature called “Born to Drive” by News feature writer Charity Vogel. The story dealt with Morrill’s decision to give up a lucrative spot as a top Meadowlands-class driver “for a life of simplicity, family and freedom” at Buffalo Raceway. Well written and illustrated, it was a powerful plus for Buffalo. 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 October 19, 2006 A WORLDWIDE SICKNESS ON AND ON, AND ON AND ON Two positive tests, a world apart, on two of the most important horses in their sports, highlight the sickness that has infected horseracing. One of these days it will end, but for now the issue of slot legislation in the state of Pennsylvania flows on, like Niagara Falls. If you don’t see it today, try tomorrow, or the next day. The Senate, running out of time to consider the 40 amendments to the racing bill passed by the House on the next to last day of the legislative session, said they would need more time to study the proposals and resolve differences between the House and Senate versions. The legislators have gone home to campaign for Nov. 7, leaving their staffs and negotiators to work out the details. The House was scheduled to be back in Harrisburg next week, and the Senate added Monday as a working day, so stand by. We should have news by Tuesday, but if not there are always Tuesdays after election day, or next year, or sometime. In Chicago, the Illinois Racing Board announced the disqualification of the world’s fastest harness racehorse, the pacer Holborn Hanover, as winner of the $203,000 American-National for older pacers, contested at Balmoral Park August 26. Owned by John Fielding and Canamerica Capital Corporation, trained by Brett Robinson, and driven by George Brennan, the winner of more than $1.8 million returned a positive sample of pyrilamine, an antihistamine not allowed in Illinois racing. The state has a zero tolerance rule, and as a result of the test Holborn Hanover was disqualified, trainer Robinson fined $2,500, and Lis Mara, who finished second, declared the winner. TWO LOSSES FOR RACING In Japan, where much of the nation takes horseracing to its heart, shock waves reverberated with the announcement that the country’s equine hero, Deep Impact, which finished third in France’s most important thoroughbred race, the Prix de l’Arc de Triomphe at Longchamp on Oct. 1, returned a positive for Ipratropium, legal in Japan but banned in France. Some 5,000 Japanese racing fans had traveled to France for the Prix, and French officials acknowledged that in announcing the positive, France Galop’ Henri Pouret saying, “There was a real craze for this horse and this incident is regrettable.” Pouret said Deep Impact could face suspension, but called that possibility remote, saying, it would be “extremely rare and not on the agenda.” It was the third bitter blow for French racing this year, the country’s best trotter, Jag de Boullet, being disqualified from both of France’s most important trotting classics, the Prix d’Amerique and Prix de France. Harness and thoroughbred racing are losing a good friend and top notch reporter in Cleveland, where veteran racing writer Bob Roberts, one of the few true double-gaited writers left on the scene, is taking a voluntary buyout from The Plain Dealer. Roberts is one of 64 of the newspaper’s employees to accept an offer of voluntary departure in return for a severance package, and there is a good possibility that the paper will not replace him. The Plain Dealer made the offer to all of its 1,450 workers, and its president and publisher, Terrance C. Z. Egger, said he felt “very good” about the outcome of the buyout. Those with 20 years of service who chose to leave get two and one-half years salary and health care benefits. Roberts is one of them, and hopes to remain writing. Racetracks could do themselves a favor to consider hiring him. In Canada, Mac Cuddy, once one of the most important owners in the sport, died just short of his 87th birthday, after a long battle with multiple sclerosis. 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 IT AIN’T OVER TIL IT’S OVER Everyone in racing knows full well that where politics are involved, you had better hold your tickets until the official sign goes up. This lesson was taught again yesterday in Pennsylvania, where it turns out the House now is toying with the idea of taking the fourth harness racing license --- which the former racing commission bollixed up by not awarding it to either applicant -- and converting it to a stand-alone casino that could be built anywhere in the state. This is the license that Bedford Downs and Centaur of Indiana battled over to a no-decision verdict, after which Bedford Downs, but not Centaur, was allowed to resubmit an amended application. Now harness racing could lose the last racing license to be awarded in Pennsylvania, and breeders and others in the game are up in arms. So, hopefully, the Senate will be as well, when it meets next Monday for a last day of deliberation before the election recess. Some state senators, including Democrats Robert Mellow of Scranton and powerful Vincent Fumo of Philadelphia, say they will oppose the House proposal and work to undo it next Monday. Paul Spears, executive director of Pennsylvania’s Standardbred Breeders Association, was reported to be “livid” over the House action, saying, “The loss of the fourth harness track would be a mortal blow to our progress in promoting the state’s harness racing.” THE LIP DEAD WRONG ON THIS It was Leo (the Lip) Durocher of the old Brooklyn Dodgers who said, “Nice guys finish last.” Give him an error on that one, as yesterday’s announcement from Woodbine Entertainment proves. Two of the good guys, Bruce Murray and Jamie Martin, were promoted by WEG, Martin moving up from Vice President, Standardbred Racing, to Senior Vice President, Racing, overseeing both harness and thoroughbred racing at WEG tracks. October 20, 2006 Murray, who first handled publicity duties for harness racing and then became Director of Events and Marketing, now becomes Vice President, Standardbred Racing, reporting to Martin. Our congratulations to both, and to Woodbine for its good judgment in naming them to their new high posts. A TALE OF TWO (OR 3) CITIES The owners of world recordholder Holborn Hanover -- John Fielding and Doug Hyatt and Albert Imbrogno, racing as Canamerica Capital Corporation -- are appealing the Illinois Racing Board’s disqualification of their pacer as winner of the $203,000 American-National for older pacers at Balmoral Park. The horse tested positive for pyrilamine, a class 3 non-performance enhancing anti-histamine, and the trace amount makes no difference, large or small, since Illinois has a zero tolerance rule which includes the substance. Top vets say the drug can have significant side effects on both horses and humans, which led to its being banned. Trainer Brett Robinson vehemently denies using illegal medication on the horse. In Stockholm, meanwhile, the first announced penalties in the disqualification of both Jag de Bellouet, the disqualified French winner of this year’s Elitlopp classic at Solvalla in Stockholm, and the second place finisher, Let’s Go. The latter tested positive for Etacryn, a heart and blood pressure medicine for humans, which is not registered in Sweden, and Jag de Bellouet tested positive for Diclofenac, an anti-inflammatory. He also was disqualified as winner of France’s most prestigious trotting race, the Prix d’Amerique, which he won at Vincennes in late January. The case of the French horse still is pending, but Holger Ehlert, trainer of Let’s Go, has been fined $27,500, according to harnessracing.com. 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 SURGERY FOR JOHN CAMPBELL October 23, 2006 John Campbell, who suffered a badly fractured left leg in a racing accident at Woodbine Saturday night, was operated on yesterday in Ebitocoke General Hospital, near the track. The surgery was to stabilize the grossly swollen leg, and doctors said Campbell will need further surgery on the fractured leg after it has been stabilized. Campbell won four Breeders’ Crown eliminations -- with Adelaide Hall, Olay Olay, Little Miss Dragon and Glidemaster -- Friday and Saturday nights before the accident. South Florida harness owners shared in a jackpot of their own Saturday night, when two 2-year-olds owned by them shared a $100,000 bonus by winning the finals of the Florida Breeders Stakes. Ace Mactavish, a 2-year-old pacer that has won 11 of 13 starts this year under Michile Lorenzo’s training, earned the $50,000 bonus for owners Rod Lorenzo and Souren Hovsepian of Deerfield Beach. The colt trotter Blake Island won his $62,338 final by 16 1/2 lengths for owner John Campagnuolo of Loxahatchee. New Hall of Fame driver Wally Hennessey drove both winners, and three other finals on the track’s Super Night card. OK FOR GUYS, BAD FOR DOGS I’LL HAVE WHAT SHE’S HAVING Twelve men and one woman have been charged with drugging dogs with male sexual enhancement medication at Mobile Greyhound Park, and collecting $67,000 on the slowed-down racers. Three track employees and two trainers were among those accused of feeding the dogs pills designed to boost men’s sexual performance, and the others charged made bets on longshots in the races involved. The Mobile county district attorney prosecuting the case said the pills’ ingredients increased the greyhounds’ heart rates, leading to early exhaustion. Gary Guccione, executive director of the National Greyhound Association, called the scheme the worst he has encountered in 27 years in the industry. BIG BILLBOARDS FOR POMPANO HTA member Pompano Park, gearing up for the introduction of slots after the first of the year, plans to promote them with what Steve Wolf calls “a very, very ambitious billboard campaign, starting Dec. 1. Gulfstream Park, which plans to open its racino in mid-November, will be the first south Florida track to operate slots, with Mardi Gras, formerly the Hollywood Greyhound Track set to open in December. Each of the Broward county tracks will have 1,500 machines. That line, spoken by a woman watching Meg Ryan faking sexual ecstasy in the movie “When Harry Met Sally,” applies this week to Vernon Downs, hoping to emulate Batavia Downs performance with VLTs. Vernon opens its racino Thursday night with 777 machines, and if it does as well as Batavia it will be on the road to immediate recovery. Batavia, with 580 machines, has been bringing in nearly half a million dollars in gross revenues a week, and a total of more than $17 million this year. Purses have more than doubled, and local merchants are beaming at extra business in Batavia. Mike Kane, Batavia’s general manager, told the Syracuse Post-Standard, “We would not have reopened had it not been for video gaming.” Jeff Gural, responsible for Vernon’s rebirth, echoed the sentiment, saying, “We wouldn’t have spent $60 million on Vernon Downs without them.” NYRA BANKRUPT THIS WEEK? The Albany Times Union reports that the New York Racing Association plans to seek protection from creditors in the U.S. Bankruptcy court this Thursday. Capitol bureau writer James M. Odato says NYRA infuriated Gov. Pataki with a letter blaming his administration for its financial problems. 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 October 24, 2006 THIS ONE WORTH WAITING FOR MAGNA GETS ITS CAL TRACK Empire City at Yonkers Raceway, its racino construction still underway and only 1,870 of its 5,500 VLTs in action, has outdistanced all slots operations in New York by almost two-thirds in its first week of operation, and netted $3.8 million in the week ended Oct. 21. By comparison, Saratoga Gaming & Raceway netted $2.3 million, with 1,331 machines, during the same week. Yonkers has netted $6.1 million since its opening Oct. 11. Some $3.3 million of that total goes to the state lottery’s fund for education in New York state. Yonkers’ weekly share of some $2 million also will produce major purse supplements for the live racing that Yonkers now plans to resume Friday, Nov. 3. After six years of discussion and debate, the City Council of Dixon, California, last night approved, by a 4-1 vote, allowing Magna Entertainment to build a racetrack in the city. The decision was not without further debate, but after long discussion the mayor, vice mayor and two council members voted in favor of the project. The lone dissenter said that while he was pro-business, he was not convinced that Dixon Downs would create quality jobs or draw people downtown. One councilman said that while he was concerned that the track “would threaten Dixon’s small-town charm,” he voted in favor of the track because “while this is going to cause change, no doubt, I think it might be a risk worth taking.” Opponents of the track said they would launch an immediate referendum campaign, hoping to get 700 signatures necessary to force a special election on the issue next March. Trade union members favor the project. The Magna proposal calls for a $250 million development on 260 acres near Interstate 80, with a mile and an eighth track, a grandstand pavilion to hold 6,800 for racing and as many as 15,000 for concerts, and a stable area for up to 1,440 horses. A large hotel and conference center and 950,000 square feet of retail space also could be included in the project. Under the best of circumstances, it will take between a year and a year and a half for site planning, bidding and obtaining necessary permits, so construction is not likely for another 18 to 24 months. A Magna spokesman said it is not likely that racing would begin before 2010. SENATE PROTECTS 4TH TRACK The Pennsylvania Senate, meeting last night and into this morning, voted 50-0 to approve a package of 30 amendments to the 2004 slots law, but deleted from their bill a House provision that could have endangered the fourth Pennsylvania harness track license. The House Republicans are in caucus today at press time, and hopefully they will approve the changes as passed by the Senate and send the amended bill to Gov. Ed Rendell for his signature. HTA will present a summarized version of final events late tomorrow with resumption of The World in Harness, our Internet radio interview show. Mike Jeannot of The Meadows will be the guest. LATEST PURSE REPORT ONLINE HTA’s latest purse distribution report now is online on the proprietary section of our Web site. The October report, the Simulcast Procedures Manual, also is online. The August and September monthly reports, a comprehensive analysis of 2003 purses at HTA member tracks, has been delayed by acquisition of data, and will be ready next month. NJSEA GUARDS AGAINST VIRUS The New Jersey Sports and Exposition Authority has issued a ban on ship-ins to Monmouth Park, and limited access to the Meadowlands, following an unconfirmed case of equine herpesvirus at Monmouth. A barn of recent ship-ins there has been quarantined. 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 October 25, 2006 TO AND FRO IN PENNSYLVANIA VERNON SLOTS TOMORROW We had hoped to tell you today that the slots bill in Pennsylvania was on its way to Gov. Ed Rendell’s desk, but the political ping pong between the House and Senate continued yesterday, and there is further delay. The House contends the Senate made numerous “drafting errors” and “clerical mistakes” in the bill, and declined to act on them without having the errors corrected. If you like watching tennis, you’ll love watching the Pennsylvania legislature in action, right to left, left to right, back and forth. Rep. Paul Clymer, a Bucks county Republican, said, “We aren’t trying to kill the slots amendments. We are trying to make them better.” Rep. Robert Freeman, a Democrat from Northampton, said, “Shame on the Senate if they don’t pass the corrected version of the slots bill that we send them.” The House majority leader, Sam Smith, a Punxsutawney Republican, warned his colleagues that upsetting the Senate might make it impossible to pass final amendments before the current legislative session adjourns Nov. 30. A major negotiator who worked with senators on the amendment, Smith said, “You are changing the dynamics in a way that I can’t be responsible for.” Mike Jeannot, vice president of The Meadows, interviewed on this week’s World in Harness, HTA’s Internet radio show, said he doubted the amendments to the bill, and their final reconciliation, will have much effect on the implementation of slots in the state, and said he expects The Meadows temporary racino to be ready for operation sometime in the spring of 2007. While Pennsylvania’s wait for slots goes on, the waiting ends for Vernon Downs tomorrow, when it opens its racino between Syracuse and Utica. Seven hundred seventy-seven VLTs will start clanging, and hopefully will end the long financial drought at the central New York track. They arrive just in time. Earnings releases from TrackPower, 20% partner in Vernon and Tioga Downs, indicate in the three months ended Aug. 31, TrackPower reported a $963,000 loss on its position in the Tioga-Vernon enterprise with American Racing, and that partner lost $4.8 million in those three months. TrackPower said that under terms of the partnering agreement, it and other principals in the two tracks are responsible for funding shortfalls, and it might have to issue additional common stock and debt securities with an equity conversion option to help fund its share. Those moves could reduce the ownership share that TrackPower holds in the joint venture. To hear The World in Harness, which resumes today after the HTA art auction break, go to the home page of our Web site, www.harnesstracks.com, and click on that designation. The Jeannot show will be online late this afternoon. 3D SURGERY FOR CAMPBELL John Campbell, harness racing’s Mr. Everything, faces a third surgical procedure later this week as specialists at Etobicoke General Hospital near Toronto seek to stabilize his shattered left leg. Campbell tried to brace himself by hitting the ground feet-first when he was catapaulted out of the sulky Saturday night at Woodbine when unable to avoid a fallen horse, and the shock shattered his tibia and jammed up leg bones surrounding his left knee. He will remain at Etobicoke until doctors permit him to be flown home to New Jersey by private charter. IT ISN’T JUST US, FOLKS The runners have problems with illegal substances, just as we do. Thoroughbred racing’s leading trainer, Scott Lake, has been suspended 30 days and fined $1,000 for a clenbuterol positive in Delaware. 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 October 26, 2006 SLOTS NOW, STARS SATURDAY BROCK GETS A BOOST After two years of agony, Vernon Downs enjoys ecstasy today, with the opening of its 777 electronic touch VLTs. The central New York HTA track opened its racino at 10 a.m. this morning, and track spokesman Doug Tudman said it was the beginning of a “12-month-a-year- entertainment venue.” Tudman said the video gaming “will help to make this facility a success.” Tudman said Vernon expects to do slightly better than its sister track, Tioga Downs, which drew about 3,000 people a day to its racino operation. As a benchmark, UticaOD.com published revenue from other racinos in New York for the week ending Oct. 21. They were: Batavia Downs $415,598 Fairgrounds at Buffalo $805,853 Tioga Downs $820,910 Monticello $1,408,407 Finger Lakes $1,734,818 Saratoga $2,256,343 Empire City Yonkers $3,770,378 HTA president Brock Milstein, deeply engaged in an expensive election campaign that could bring slots to Ohio’s tracks in November, got help yesterday when William A. Burga, president of the Ohio AFL-CIO, endorsed Issue 3, the Learn and Earn program supported by the state’s racetracks. Burga’s letter of endorsement to the Columbus Dispatch read, in part, “The Ohio Learn and Earn proposal is designed to create thousands of construction jobs and new permanent jobs statewide with health benefits,” and added that passage of the measure would benefit local governments and provide worthy Ohio high school students with funds for college. Milstein announced that if Issue 3 passes, he plans extensive improvements for Northfield Park, including a 150-room hotel and casino with a spa and fitness center and 5,000-seat arena, restaurant and shopping areas that would create “new construction and development that hasn’t taken place in decades.” He said he was talking about an expenditure of between $200 million and $300 million to develop Northfield’s 120 acres into a major entertainment center. “We’re not just opening a gaming facility,” Milstein said. “Passage of Issue 3 will be a catalyst for bigger and better things.” Vernon will follow up its racino opening with an on-track attraction of major national interest Saturday night, when two of the world’s best trotters, Mr. Muscleman and Vivid Photo, square off in a $20,000 handicap. Mr. Muscleman, last year’s king recently returned to action from lameness, showed at Woodbine that he was back in form with a mile in 1:52.2. Vivid Photo, which equaled the world record of 1:50.2 at Colonial Downs, is predicted to be the world’s best next year by his coowner and trainer-driver Roger Hammer. Now 4, Vivid Photo has been assigned seventh post and Mr. Muscleman the outside eighth post position for Saturday’s matchup. In Ontario, meanwhile, the colts and fillies for the Breeders Crown finals for 2- and 3-year-olds were taking final workouts at Woodbine in preparation for Saturday’s huge card, with seasonal championships on the line. TVG AND TOC SPAR IN WEST Television Games Network and California’s Thoroughbred Owners Association take their battle over TVG’s hub rates to the California Horse Racing Board today, but the general manager of TVG thinks resolution of the matter rests with the state legislature and not the racing commission. A solution does not seem close at hand, and there is a possibility that the racing board, which threatened to impose lower rates at its September 21 meeting, may tire of the dispute and do so now. Racing board chairman Richard Shapiro urged both sides to find a solution of face action. HARNESS TRACKS OF AMERICA Executive Newsletter A daily fax and e-mail report on racing and gaming developments in North America and beyond Paul J. Estok, Editor October 27, 2006 IT’S DOWN TO 3 BIDDERS IN NY MANZI HITS 12,000 Only three bidders remain in the running for the franchise to operate the biggest of New York’s thoroughbred racetracks. On Thursday, the Ad Hoc Committee on the Future of Racing in New York unanimously voted to disqualify Australian bidder Capital Play Pty Ltd. from the process for failing to submit a complete bid. According to Scott Reif, spokesman for the Ad Hoc Committee, Capital Play was removed because its bid did not include a $1 million bond to protect the committee from lawsuits, as required by the franchise RFP. The three remaining bidders are Empire Racing Associates, Excelsior Racing and the New York Racing Association. Hall of Fame driver Cat Manzi registered career victory number 12,000 at Freehold Raceway on Thursday, winning the second race with Crimson Dynamo. Only Herve Filion, with more than 15,000 career victories, has more wins than the 56-year-old Manzi. Manzi, who in 2005 was the oldest driver to lead North America in winning drives, was the 2005 HTA Driver of the Year. ANOTHER PA LICENSE ISSUED State gaming regulators awarded a slot machine license to Presque Isle Downs, allowing the track’s owners to build and open a casino alongside the racetrack being built near Erie, Penn. The conditional license was the sixth awarded by the Pennsylvania Gaming Control Board, and it comes one month after the board approved conditional licenses for five other racetracks. After the board’s vote Wednesday, Ted Arneault, the president and CEO of Presque Isle owner MTR Gaming Group Inc., said a slots parlor with 2,000 machines will open at the track in mid-February, followed by live racing in September 2007. The $250 million dollar facility will feature five bars, a buffet and a restaurant overlooking the track. CAMPBELL FLOWN TO JERSEY John Campbell, harness racing’s all-time leading money-winning driver who suffered a broken leg in a racing accident last weekend, was flown by air ambulance to New Jersey on Thursday. The 51year-old Campbell was expected to be admitted to a hospital closer to his New Jersey home. Reports indicate he is in need of further surgery on the broken leg. OHIO COMMISSIONERS FOR ISSUE 3 Three of Ohio’s racing commissioners are on record as supporting Issue 3, the ballot measure to permit slots at the Buckeye State’s seven parimutuel racetracks. Highlights of the commissioners’ comments were reported in The Plain Dealer by veteran racing writer Bob Roberts, who wrote that racing commission Chairman Norm Barron, along with commission members Charlie Luken and John Meeks, offered their opinions on Issue 3 when asked by Kent State University students who attended a commission meeting as part of a government class. Barron told the students, “In Ohio over the last 10 years, we have been subjected to an ongoing assault from neighboring states that have ancillary support for their racing industry. Indiana has riverboats, West Virginia has slot machines. Pennsylvania is getting them, and Illinois has casinos.... I say the horse racing industry desperately needs this.” CALLING HTA PUBLICISTS!!! HTA is issuing the call to all member organization publicists, marketing personnel and promotions or group events staffs. Please put HTA on your list of recipients for information such as press releases, newsletters and marketing and promotions materials to HTA. Add HTA to your list and distribute materials to [email protected], or to our fax at 520-529-3235, or by mail to HTA at 4640 East Sunrise Drive, Suite 200, Tucson, AZ 85718. 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 October 30, 2006 RENDELL GETS PA SLOTS BILL LIKE MONEY? LIKE WARMTH? And all this time you thought it wouldn’t happen. You’re excused for good cause, but the Pennsylvania Senate passed the final version of the slots legislation-- at least for now -- and the measure now is on Gov. Ed Rendell’s desk and should be signed this week. HTA tracks in Pennsylvania -Mohegan Sun at Pocono Downs, Harrah’s Chester Casino and Racetrack and The Meadows -- expect to be up and running as soon as possible, the first two in winter, the third in spring. Among the happy amendments made to the bill by House and Senate was the removal of the middlemen, who would have had the plum pudding of buying the slots and reselling them to tracks. When we say the measure is finalized “for now,” we are mindful of the warning of state Senator Tommy Tomlinson, a Republican of Bucks county. “This legislation is a moving target,” he said. “We’ll be visiting the gaming bill again, and again, and again.” Fair warning, folks. If you do and are a track superintendent on the way up, you should contact senior director of racing operations Steve Wolf at Pompano Park. That HTA track in Pompano Beach, Florida, needs a good man right now, and is offering top salary and health benefits for a qualified racetrack superintendent who can start immediately. Steve suggests you “come work and have some fun in the sun at a track that will have casino gaming this winter.” Sounds like a pretty sweet deal. Contact Steve at [email protected] if you are interested. THE GREAT ARTSPLACE DEAD Artsplace, one of the most dominant pacing sires of the modern era of harness racing, is dead at 18. The superb racehorse and stallion was euthanized at the University of Pennsylvania’s New Bolton Center to save him from the irreversible ravages of severe laminitis, a disease of the hooves that causes extreme pain in horses. Artsplace serviced 182 mares this year, standing at Southwind Farm in New Jersey, and his sons and daughters have won $114,996,479 to date. Fifteen of them are millionaires. As a racehorse, Artsplace was undefeated in 16 races as a 2-year-old, trained by Gene Riegle and driven mostly by John Campbell, and when he closed his career under Bob McIntosh’s training at 4 for owners George Segal and the late Brian Monieson, he had won 37 of 49 career starts and $3,085,083. PIERCE SUSPENDED 10 DAYS Ron Pierce, harness racing’s leading money-winning driver this year with $11,895,450 won by his mounts, has been suspended for 10 days by the Ontario Racing Commission. The penalty was assessed as a result of the pacer Total Truth, which Pierce was driving, bearing in near the finish of a Breeders Crown elimination Oct. 21 at Woodbine Racetrack, causing an accident in which John Campbell, the sport’s all time money winner, suffered a badly broken left leg. Campbell has been flown home to New Jersey, where he is hospitalized while the orthopaedic surgeon who repaired his broken elbow two years ago attempts to repair the shattered leg. TRACKPOWER REDUCES SHARE TrackPower, which has held a 20% overall interest in American Racing and Entertainment, the entity controlling Tioga Downs and Vernon Downs, has sold half of that interest to Southern Tier Acquisition and Oneida Entertainment for $2.3 million in cash. With the sale concluded, TrackPower’s ownership continues to receive a monthly management fee and a preferred dividend of $2.5 million out of the first $5 million in profits. One million of the sales proceeds were used to pay off senior debt. 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 Oct. 31, 2006 NYRA SAYS NO TO THE MONEY TESTING PICTURE BRIGHTENS It isn’t often that someone says no to $19 million, but the New York Racing Association did yesterday when the state Non-Profit Racing Association Oversight Board gave its approval for release of the funds by the Division of the Lottery, but with conditions that were unacceptable to NYRA. The board said it wanted NYRA to agree not to file for bankruptcy for six months, and offered a threetiered release of the $19 million, $7 million tomorrow, $6 million Dec. 1, and the remaining $6 million Jan. 1, 2007. NYRA’s senior vice president Bill Nader said that was unacceptable, and that an understanding reached last week to have the entire $19 million released this week was being ignored. Nader said in response to questions that he felt the changed proposal brought NYRA “one step closer” to filing for bankruptcy protection. The board, for its part, merely said it was “uncomfortable” releasing the entire $19 million, which is part of a $30 million bailout package negotiated last year. An oversight spokesman said the board felt its offer was “reasonable” in performing its function. After all, what would these guys do if they weren’t overseeing? William Cunningham, a former adviser to New York City mayor Michael Bloomberg and not a spokesman for NYRA, called the oversight board’s proposal “another in the long line of promises that have been made but not fulfilled by the state.” Good news in California, where Dr. Rick Arthur is tightening the screws on testing procedures. The state now has introduced random testing, with Arthur announcing, “We’re just going to show up. It’s going to be unpredictable, and that’s a real key to this. If you know I’m going to be coming around and testing on the 15th of every month, you’re going to find some way to get around it.” In Maryland, Alan Foreman, chairman of the Thoroughbred Horsemen’s Association, urged caution, calling out-of-competition testing, which California is now using, “a very tricky area.” Foreman asked, somewhat surprisingly, “If a horse is just walking around the grounds with a drug in its system, what difference does it make? The purpose of this testing is not to have the racing police sticking horses at all hours of the day.” Arthur, answering this, says, “It lets people know it’s a new era, and that we’re going to be paying attention to this. If we never have a positive, I would be happy. But we want people to know that what they see in the Racing Form is what they’re going to get.” Trainer Mike Mitchell told the Los Angeles Times that he thought California is “going way too far,” but Hall of Fame trainer Jack Van Berg said, “It ain’t who the best trainers are, it’s who the best chemists are,” adding, “If you’re not a horseman, you don’t belong on the racetrack.” Significant was the view of Nick Zito, one of thoroughbred racing’s best and most respected trainers. “Only a fool -- only a moron -- could think nothing’s going on,” Zito said. “Is every baseball player on steroids? I hope not. Is every football player on something. I hope not. I’ll give the same answer about EPO in horse racing. I hope they’re all not on this.” “ON TRACK” IN MINNESOTA Thomas Fox, president and CFO of Southwest Casino and Hotel Corp, which is planning a new harness track in the Minneapolis-St. Paul area with MTR Gaming, operators of Scioto Downs, has told the Minnesota Racing Commission that financing of the $50 million project is “nearly complete,” and only one environmental approval was needed before construction got underway, this year or next. In other hopeful developments, Illinois is asking for out-of-competition and off-track testing, as is Delaware. 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 November 1, 2006 SEILING NOMINATED FOR ORC MUD GETS IN YOUR EYES Rod Seiling, a former National Hockey League player with a long and strong background in harness racing, has been nominated to succeed Lynda Tanaka as chair of the Ontario Racing Commission. Mrs. Tanaka’s term expires at the end of the year, and the Standing Committee on Government Agencies has tapped Seiling for her job. Most recently president and chief executive officer of the Greater Toronto Hotel Association, Seiling, if the appointment is approved as expected, will return to a sport in which he was long active as an owner and breeder. He and his family raced horses with trainer Keith Waples for many years, and Ontario’s Minister of Government Services, Gerry Phillips, told The Harness Edge, “Mr. Seiling has an excellent professional record and is very familiar with ORC’s operations and procedures, having served as a member of the Commission and as a former licensee. This nomination supports the government’s commitment to fulfill its responsibilities ensuring the honesty and integrity of horseracing by regulating the industry in the public interest.” Seiling at one time was a vice president of the Ontario Jockey Club, now known as Woodbine Entertainment Group; was executive director of Racetracks of Canada; and served as general manager at Elmira Raceway. One could wish that all racing commissioners had as extensive a background in racing, and HTA wishes the chairman nominee all the best and hopes he is confirmed. Elections are near at hand, which means that in the stress of homestretch campaigning, worried parties are slinging mud. It is happening in Ohio, where it is touch and go whether slots get approved next Tuesday, and it also is happening in New York, where Jeff Gural is attempting to unseat Joe Faraldo as a USTA director. In Ohio, the Toledo Blade reported that a “series of commercials is designed to portray backers of Issue 3 as untrustworthy, with background music that one would usually expect to accompany TV villains. The newspaper said opponents of Issue 3, the Learn and Earn amendment that would pour money into a scholarship fund for Ohio college students, have committed to a $1.4 million media buy compared to “anticipated spending of about $20 million” by supporters of the measure. In New York, Faraldo, with a straight face, said Gural’s running as a membership director presented “potential conflicts too great, and it is simply not possible to sit on both sides of the negotiating table.” Joe should know. As for schools and education, Ohio is not alone in that pursuit. In Pennsylvania, officials in Harrisburg announced that the Philadelphia School District alone will receive $5 million a year to upgrade classrooms under the newly revised slots bill. The city is expected to receive some $24 million a year, or 4% of gross receipts of two casinos there. In more good news for a racing commission -but a loss for Rosecroft Raceway--Rosecroft’s director of operations and veteran of 13 years service at Rosecroft, Mary Manney, is leaving the Maryland track for her native Minnesota, where she will become Deputy Executive Director of the Minnesota Racing Commission. Here in Arizona, Indian casinos sent a record $26.3 million to the state in revenue sharing for the quarter ending Sept. 30. That is up 15.4% over the record same quarter last year. Indian casinos of Arizona have contributed $235.5 million to the state in the three-plus years since a measure called Proposition 202 passed and permitted tribes to add blackjack and more slot machines to their gambling menu. In return, the tribes agreed to share between 1% and 8% of gaming winnings with the state and open their books to state auditors. 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 November 2, 2006 SAD ENDING TO A SAD STORY RENDELL SIGNS SLOTS BILL A civil suit in Windsor, Ontario, with an out-oftown judge presiding, is revealing sad details of the plight of the late Tom Joy, whose ownership of Windsor Raceway apparently brought him to financial ruin. The case involves events nine years old, when, according to testimony reported by the Windsor Star, Joy’s Arizona bank discovered he had been kiting checks for months -- as many as three a day for $50,000, $60,000, $70,000 -- in a futile effort to keep Windsor Raceway afloat. John Millson, Joy’s confidante and president of the track at the time, testified that Joy, who died in 2001 of bone cancer, was devastated and panic stricken, believing he was going to jail when the Arizona bank refused to honor the checks being sent from Windsor to Arizona. Those checks were intended to cover checks going back to Windsor to keep the raceway alive. Millson said Joy called his friend and lawyer, one Doug Lawson, and begged him, “Please, please, please” to find him $2 million. Lawson did -- $1 million from him and $500,000 each from two prominent Windsor businessmen -- but with conditions. The loan provided for compensation for Lawson and the other two, at terms beyond the norm, according to the suit now in court, which seeks reimbursement of $3.7 million. The original $2 million was repaid by 1999, at 8% interest, a year after Windsor got slots. But there was another provision in the loan. The three lenders would become consultants, splitting 1% of slots revenue in perpetuity. The two businessmen were bought out of their consulting contracts for $971,080 each in 1999, according to The Star, and Lawson’s fees were cut off in 2003. The plaintiffs in the current suit contend the consulting fee was in reality interest, and when added to the original 8% far exceeds Ontario’s legal limits. The track now is owned by Tony Toldo Jr., son of a prominent Windsor philanthropist. Pennsylvania governor Ed Rendell signed the state’s newly revised slots bill yesterday, providing greater transparency to the issue, but no sooner had done so than a Philadelphia coalition of community groups, gaming opponents, and businesses filed a suit challenging the law. It was not the first attempt. The state Supreme Court upheld the constitutionality of the original slots law last year, but the new suit questions the legality of the appointed Gaming Control Board to grant licenses. It contends only elected officials should have that right. A NEW HIGH. OR RATHER LOW Speaking of litigation, which we’re forced to do frequently these days, try this one for audacity. A thoroughbred owner-trainer has sued Calder and its owner, Churchill Downs, alleging one of his horses was the victim of “intentional acts of foul play” that resulted in its death. The plaintiff, one Dennis Fisher, says the tracks had a vendetta against him, “based on information or belief concerning (Fisher’s) knowledge concerning possible corruption at the tracks.” Fisher contends the tracks’ misconduct, including defaming him with allegations he drugged his horses, dates back two years. AN AUDIT IN KENTUCKY Daily Racing Form reports today that an audit of the Kentucky Thoroughbred Development Fund “has uncovered serious problems in the owners’ awards program that will likely result in the revamping of the program.” Lisa Underwood, now executive director of the Kentucky Horse Racing Authority, declined to discuss details, but said, “For a long, long time people have not been properly watching over the fund. We decided we needed to resolve the issue now.” The fund has been receiving .75% of on-track and 2% of all in-state betting at intertrack sites. 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 November 3, 2006 NYRA FILES FOR BANKRUPTCY BULLETS IN BUFFALO, TOO The major racing news of today centers around two Big B’s: the filing for bankruptcy protection by the New York Racing Association, and the Big Test in the Breeders’ Cup Saturday for Bernardini, thoroughbred racing’s newest and brightest star. The 3-year-old will be meeting the best older horses in thoroughbred racing. In New York, NYRA, victim of political ploys in Albany, filed for bankruptcy after failing to get $19 million from the state, part of a $30 million loan that was approved by the legislature last year. Normally, legislative approval would suffice, but in New York the Pataki administration exercised executive privilege by detouring the procedure. The State Lottery Division refused to give final clearance to NYRA to get its Aqueduct racino underway, a move that NYRA’s chairman, C. Steven Duncker, called “unfortunate and frankly inexplicable.” Interestingly, one rival trying to get NYRA’s license is Empire Racing, whose CEO is Jeff Perlee, a former director of the Lottery Division under Pataki. The final blow leading to bankruptcy came this week, when a state oversight board approved distribution of the $19 million still unpaid on NYRA’s $30 million loan, but added strings unacceptable to NYRA, which turned down the offer. Pataki’s Budget Division spokesman, Scott Reif, said, “It goes without saying that the state did everything possible to assist NYRA,” a view that NYRA understandably does not share. In its filing for bankruptcy, NYRA said it suffered a net loss of $3.2 million in the first eight months of this year, with operating revenue of more than $200 million. It reported assets of some $153 million and liabilities of almost $310 million. One key issue that will affect the NYRA franchise is who owns the tracks, NYRA or the state of New York. If a federal bankruptcy judge were to rule for NYRA, it could have authority to sell its tracks or borrow against them. Elsewhere in New York, another battle for control. The Seneca Nation prepared to break ground for the foundation of a planned casino near downtown Buffalo, even as a federal judge heard legal arguments from a group seeking to stop the project. Opponents charge that the U.S. Secretary of the Interior erred in allowing the project to go forward, and seek a review. They say the site does not meet statutory requirements to be on Indian land. Federal attorneys say everything concerning the project followed the law, and that the Senecas are able to game on the site. A CHECK FOR $50 MILLION With the signing of the amended slots bill in Pennsylvania, Mohegan Sun at Pocono Downs president and CEO Bob Soper lost no time in reaching into the cookie jar. He came up with a check for $50 million, and presented a symbolic version to Pennsylvania governor Ed Rendell in Wilkes-Barre today, making Pocono the first operation in the state to pay the fee for a gaming license. Rendell’s promise of tax reform thus gets its first actual boost, and Mohegan Sun, with approval of the Pennsylvania Gaming Control Board, will open the state’s first racino with flair on Tuesday, Nov. 14. Celebrants will have a choice of 500 reel games, 450 video machines, and video poker, in denominations from 1-cent to $25. A non-smoking section of the racino will offer 300 games. ALLEN WOULD BE PROUD For all his clowning around, the late and inimitable Allen J. Finkelson of Pompano Park would be proud of the scholarships being offered to Florida residents by the Florida chapter of the U.S. Harness Writers Association. Applicants can get details from the Scholarship Committee, USHWA, 1800 SE Third Street, Pompano Beach, FL 33069, phone 954-972-5400. 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 November 6, 2006 NYRA GETS $8 MILLION BOOST A CATSKILL MYSTERY It isn’t the $19 million they have coming which New York state has tied up, but the New York Racing Association has picked up $8 million to keep it afloat while it reorganizes under Chapter 11 bankruptcy protection. That loan was released in a separate action in bankruptcy court when the state comptroller’s office agreed to release the money, at 4% annual interest. NYRA senior VP Bill Nader said the money “will keep us going,” and Richard Violette, vice president of the New York Thoroughbred Horsemen’s Association, took an optimistic view. “Delta Airlines went bankrupt,” he said, “and they didn’t miss one flight. So we’re hoping it’s the same thing with NYRA.” A key question is when the New York Lottery Division, slower than the slowest horse at NYRA, will approve a NYRA management contract with MGM Grand to get the Aqueduct racino underway. The Division, which has approved arrangements with all other New York tracks, says its review “is under way.” One has to wonder if the delay has anything to do with aspirants for the NYRA franchise, but New York state meanwhile loses millions, with the Lottery Division fiddling like Nero while NYRA burns. Ever since the Legend of Sleepy Hollow and its Headless Horsemen, the dark Catskills have provide mystery and drama. Last week another mystery: who knew what about Empire Resorts to make its stock suddenly fluctuate sharply? Management professed to know nothing, but something or someone was moving the price of Empire shares. They fell 76 cents, or 9.1%, to $7.63 in afternoon trading on the Nasdaq last Thursday, with volume exceeding 2.3 million shares as opposed to the daily average of around 179,000. Empire and its partners, the St. Regis Mohawks, have been waiting for issuance of a finding of no significant impact from the Bureau of Indian Affairs in connection with St. Regis participation in a casino at Monticello, and Empire says it knows of no change in the proceedings. MORE SURGERY FOR CAMPBELL John Campbell, world harness racing’s leading money winning driver, has undergone another round of surgery on his fractured left leg, shattered in a racing accident at Woodbine Oct. 21. Now back in New Jersey, surgeons had waited for swelling to subside in the leg, and operated last Thursday. Campbell had been reported to be in severe pain, but doctors told his wife Paula that they are optimistic over chances of full recovery following the last surgery. Whether Campbell, 51, returns to racing undoubtedly depends on the extent of that recovery. He had returned from a fractured elbow and was enjoying another superb year. VOTE HERE AND GET RICH We like Arizona for a number of reasons -- it’s in the 80s and balmy today for one of them -- but we might make a huge leap forward tomorrow. One of 20 propositions on tomorrow’s ballot in this state would establish a random drawing every two years for all voters who participated in the primary or general elections. All those woould be eligible for the first prize, a cool $1 million. Proponents think it would increase voting by thousands. Another proposition would do away with polling places and have ballots mailed to all eligible voters, to be returned by mail. And then there is an initiative, which might well carry in the anti-immigrant atmosphere of today, which would make English Arizona’s official language. We read that one very, very carefully, to make sure it didn’t impact us, or our staff. Have a great election day -- particulary if you live in Ohio -- and be sure to vote. We’re heading out to push that million dollar lottery idea. Our dentist is pressing us heavily. 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 November 7, 2006 THEY’RE HAPPY, WE’RE HAPPY MESSENGER TO JEFF GURAL The boys at the Breeders Cup have to be happy about the record betting on this year’s eight races -- it should total $134 million when all returns are in -- up 14% over a year ago, with the Classic match with Bernardini and Invasor up 44%, $8.1 million over a year ago. We’re happy for them. HTA’s highest honor, the Stan Bergstein Messenger Award, goes this year to Jeff Gural, who returned Vernon Downs to life and opened a model small track at Tioga Downs during 2006. Beset by problems and obstacles thrown repeatedly in his way, Gural persevered for more than two years and saw both of his objectives accomplished, at huge personal cost. The Messenger, named for the English thoroughbred that founded the harness breed in America, goes annually to an individual or organization for exceptionally outstanding and meritorious service to the sport. Gural fulfills all of the qualities sought by HTA. He overcame every roadblock thrown in his way, and they were frequent, plentiful and some purely mean and spiteful. He succeeded in both projects by persistence and by expending a very large sum of his personal fortune in restoring Vernon to live racing and opening a refreshing new track in Tioga. Construction of that track, which has won wide acclaim for creative design and customer service, exemplifies Gural’s belief that harness racing must create a fan base catering to young, new fans. A longtime owner and breeder in the sport, Gural is chairman of Newmark Knight Frank, a full service commercial and industrial real estate management firm that manages some 150 buildings in the New York metropolitan area, and has ownership interest in 41 of them. He is chairman of a host of charitable organizations, including the New York chapter of The Starlight Starbright Children’s Foundation, and a board member of more than 15 other philanthropic groups. The Messenger bronze will be presented to Gural at the HTA Awards Banquet at the Diplomat Country Club in Hollywood, Florida, Sunday night, March 13. Gural also is being honored by the U.S. Harness Writers at their annual dinner in February in Atlantic City, New Jersey. They can’t be too happy about the six hours on ESPN, which drew an overnight rating of .9, the lowest ever for the Breeders Cup in its debut on ESPN, down 47% from last year’s 1.7. An executive VP at ESPN, John Skipper, tried to paint a bright picture, calling the telecast a success, in part because of increased exposure on other ESPN properties. The show was very well done, with good talent and direction, and it should make the Hambletonian Society and others in harness racing happy. With all of its huge buildup and publicity on ESPN and ABC, its 0.9 rating, or 770,000 homes, was only 39,000 homes higher than this year’s Hambletonian, which drew a .7 rating, equivalent to 731,000 homes. YEAR ALREADY? YOU JEST We’re painfully aware of the calendar spinning faster, but it’s hard to believe Hollywood Slots at Bangor, Penn National’s Maine operation, has been open a year. Hollywood’s GM, Jon Johnson, calls the first year “a great success, by any measure you would choose.” Bangor has become a tourist center for the state, the racino has had almost 800,000 visits, and the 475 slots have generated a gross handle of more than $520 million. Under Maine’s law, the state had collected more than $22.5 million in taxes, the city of Bangor more than $1.3 million, and purses have gone from $520,000 to $1.2 million. Penn National now plans to open a $90 million complex, with 1,500 spaces for cars and a new hotel, in mid2008. 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 DOUBLE TROUBLE IN OHIO There is thick gloom in post-election Ohio today, and with good cause. The state’s seven racetracks, which had looked for an equalizer with slots now in neighboring Pennsylvania, suffered a stinging setback with the resounding defeat of Issue 3, the Learn and Earn bill that would have given the tracks slots with which to compete. Ohio voters, for the third time, refused to approve slots, even though this measure was tied to education, with 30% of gross revenues from the slots earmarked for college scholarships for Ohio students. A crushing blow to the vote came in the final days of campaigning, when Senator George Voinovich made a personal robotic phone call to Republican households urging them to vote against the bill, saying it would increase crime, cause economic distress and “enrich nine men,” presumably referring to track operators, of which there are only seven in Ohio, and two others who would have run stand-alone casinos. Several Ohio trainers were quoted as saying they would sell their homes and move their operations to slots states, but whether or not that materializes, another heavy blow fell on the Ohio tracks with the passage of Issue 5 and defeat of Issue 4. Issue 4, a constitutional amendment backed by R. J. Reynolds tobacco company, would have exempted some organizations from the smoking ban; Issue 5, not a constitutional amendment but now a law, backed by public health groups including the American Cancer Society, provides for no exemptions for facilities like tracks, a move that has negatively impacted racing in other states with similar laws. The tracks, which spent a reported $20 million in Ohio to get the slots issue on the ballot and passed, now will have to seek other relief, and Ohio will have to find other means of providing monies for education. The state is in the same position as a young Akron voter, one Carlisa Brinson, 24, who told the Akron Beacon Journal she had voted against November 8, 2006 Issue 3 because “There are lots of other ways to raise college tuition,” adding, “What they are, I don’t know.” In other election results, gambling expansion in Rhode Island, through a Narragansett Indian casino to be operated by Harrah’s, was trounced, as was a proposal to expand keno in Nebraska. Arkansas voters, by more than 2 to 1, approved expansion of gambling by authorizing bingo and raffles for charities. Clark county in far southern Indiana, near Louisville, approved gambling after twice previously rejecting it, leading to speculation that a Cincinnati-based casino might choose to move there. South Dakota voters spoke decisively, 2-to-1, against repealing the state lottery, and in Arizona a proposal to make voters eligible for a lottery with a million dollar first prize, with the money coming from unclaimed Arizona state lottery tickets, was trounced by almost 2-to-1, despite the strong efforts of the editor to get it passed in the hope of covering dental bills. $200 MILLION FOR ZIA PARK Zia Park, built and opened a year ago in rural southeastern New Mexico, but near the Texas oil cities of Midland, Odessa and Lubbock, is being sold to Penn National Gaming for $200 million. Zia has 746 slot machines, a mile track, 1,500 stalls and 320 acres. It was built at a cost of $45 million to $50 million by former Hollywood Park president R. D. Hubbard and associates, and reported $69.7 million in revenue, and $24.5 million in EBITDA, in the year ending Sept. 30. MAKE THAT FOR JOURNALISTS The Florida chapter of U.S. Harness Writers scholarships, referred to here last week, have conditions. They are for journalism and communications students who reside in Florida. 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 NJSEA CUTTING 40 JOBS In an attempt to reduce employee costs by $3 million a year, New Jersey Sports and Exposition Authority president George Zoffinger has announced the Authority’s 220 employees -- down from 300 in 2002 -- will be offered a buyout Jan. 5. If that tactic doesn’t provide adequate savings, Zoffinger says layoffs will follow. “The reality is that we’re not different than any other well-run company in America,” Zoffinger said yesterday at a monthly board meeting. “The stadium is going away, and the way people gamble nowadays is different. They gamble by the Internet, they gamble by phone, and they gamble at casinos. The demographic of people at the racetrack is -- well, dying.” The track, unfortunately, has been carrying a good deal of the burden of the rest of the complex. Continental Arena is projected to lose $3.4 million this year, and perhaps half of that next year, largely because of millions of dollars in payments to the NHL’s Devils. Zoffinger thinks that will improve in 2008, doubting that the Devils can build a new arena for $365 million, as announced. He pointed out that an Orlando project is scheduled for $480 million, and a proposed arena in Sacramento is expected to cost $500 million. While track profits have declined substantially, Zoffinger complimented Dennis Dowd, Chris McErlean and others running the horse racing operation. “Our guys have done the job there,” he said. “The problem is the revenue numbers.” COAST LOOKS FOR HELP, TOO Tightening financial control is not an eastern phenomenon. The California Horse Racing Board yesterday announced that Richard (Bon) Smith, a specialist in oversight and control of financial planning with a strong background in finance, has been named assistant executive director of the board, and will coordinate and assist in budgeting and operations. November 9, 2006 BIG M WARY OF EQUINE HERPES The Meadowlands, where harness racing returns for the track’s fall meeting a week from tomorrow, Nov. 17, is taking precautionary steps to address the recent outbreak of equine herpes virus in thoroughbred racing in New Jersey. Vice president of racing operations Chris McErlean announced, “We fully understand the ramifications of this disease and how it spreads, and how it can devastate a racing program. We want to make sure our horsemen know we are proactive in this case, and they should have no concerns coming in to stable or race at the Meadowlands.” Toward that end, barns 3, 4 and 5 and the New Jersey Racing Commission testing barn are being stripped, thoroughly power washed and disinfected -- twice -- before incoming horses are permitted into those areas. Incoming horses will be required to have a current negative Coggins test, a 48-hour health certificate with each horse’s temperature will be required, proof of an EHV-1 vaccination no less than 7 days and no more than 90 days prior to arrival will be necessary, and no exceptions to those requirements will be made. McErlean said he realizes those requirements may seem an inconvenience to horsemen, but “we want to ensure the health and safety of all participants at the Meadowlands.” PRAIRIE DISPUTE UP TODAY The Iowa Racing and Gaming Commission hopes to resolve the dispute between HTA member Prairie Meadows and horsemen over 2007 dates today. Neither harness racing, thoroughbred racing nor quarter horse groups have signed contracts with the track, the harness horsemen’s association calling the track’s wish to stop paying $1.3 million for races on the county fair circuit “devastating.” This is the second year the commission has been asked to step in and intervene in scheduling at the tracks. It set the 2006 racing season this year. 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 AROUND THE TRACKS.... YONKERS RACEWAY will reopen with live racing Friday, Nov. 17. The New York Racing and Wagering Board issued a conditional track and simulcast license to the new Empire City at Yonkers today, calling for a five-day a week racing schedule. Board chairman Daniel D. Hogan said, in announcing the license, “Yonkers Raceway has been hard at work upgrading their facility to ensure its compliance of the racing laws, and, most importantly, assuring a safe and secure environment for all of the returning race fans. The Board recognizes that a few issues are still left outstanding, but remains confident Yonkers will meet those items before the betting windows will be allowed to open.” PRAIRIE MEADOWS has agreed to pay $1 million -- a cut of $300,000 -- to support county fair racing in Iowa. GM Gary Palmer says the HTA track still wants to phase out the county fair contributions, but agreed to the 2007 payments as part of a settlement yesterday in which the track was licensed by the Iowa commission after offering $19.68 million in thoroughbred, harness racing and quarter horse purses. Prairie increased its harness racing meeting from 14 to 18 days, and upped purses for that meeting from $642,000 this year to $800,000 for 2007. THE ONTARIO RACING COMMISSION was ordered to pay starter Tom O’Dwyer $50,000 to cover pay he lost as starter and patrol judge at Rideau Carleton Raceway when the commission refused to renew his license. The order was issued by a Superior Court of Justice judge, after the commission explained it was investigating O’Dwyer for possible violations of hidden ownership rules involving his step daughter. The commission could not substantiate the charges, and the judge levied the maximum penalty allowed under Ontario law. November 10, 2006 THE NEW JERSEY DEPARTMENT OF AGRICULTURE partially lifted a quarantine of the Monmouth Park backstretch yesterday. The order allows some 1,000 runners to leave Monmouth, with some 100 that were directly exposed to four horses that tested positive still impounded in isolation. The entire horse population had been quarantined since Oct. 26. HARRAH’S CHESTER CASINO AND RACETRACK, an HTA member, has taken delivery of its first 467 slot machines, the forerunners of 2,750 the racino will offer when it is fully stocked. JACOBS ENTERTAINMENT has purchased 3.6 million shares -- a 13% interest -- in MTR Gaming, and owner Jeffrey Jacobs has suggested that a vacancy on the board of directors be filled by Ian M. Stewart, a longtime executive officer of Jacobs Entertainment with expertise in financial, accounting and business matters. Jacobs Entertainment owns, among many other properties, Colonial Downs in Virginia. NEW YORK STATE plans to ask a U.S. Bankruptcy Court not to allow the Chapter 11 application filed by the New York Racing Association, claiming it has no right to be shielded from creditors owed $309 million. The state oversight board says it has “significant questions” as to whether NYRA should be allowed bankruptcy protection. THE U.S. GOVERNMENT has reached a settlement with BetOnSports, the English bookmaking outfit, permanently barring it from accepting bets in the U.S. Criminal charges remain pending against BetOnSports CEO David Carruthers, still under house arrest in a St. Louis suburb, facing 22 fraud and racketeering counts. KIKIKATIE, sold to an unannounced buyer for $500,000 at Harrisburg, becomes the highest priced pacing broodmare ever. 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 November 13, 2006 WELCOME BACK, BOB CHURCHILL FORMS TECH TEAM Bob Farinella, a former HTA director from Prairie Meadows, has been named Senior Vice President and General Manager of Tioga Downs and Vernon Downs in New York. John Arnesen, president and COO of Nevada Gold and Casinos, announced Farinella would replace Eric Persson, who is leaving general manager posts at both tracks to return to Las Vegas. Farinella, who holds degrees in commerce from the University of Maryland and an MBA from the University of Utah, has wide gaming experience and was president and general manager of Prairie Meadows Casino and Racetrack for 10 years. HTA welcomes him back to the fold. Hoping to bring cutting edge technology to racing, new Churchill Downs president and CEO Robert L. Evans is dispatching a six- or eight-person team to SiliconValley in California. “We’ll benefit from the perspective of those outside the traditional racing business,” Evans said, adding that “I think we have a pretty aggressive plan.” He declined to give specifics, saying, “I don’t want to tip off everybody else what we’re doing for a while.” More likely he still is working on the idea, since he said he would provide specifics early next year. GOV-ELECT FOR SLOTS IN MD Martin O’Malley, the governor-elect of Maryland, has called on the Maryland General Assembly to legalize slot machines at tracks. O’Malley said the state’s racing industry could collapse if the lawmakers did not find common ground, and he said that after watching futile efforts by his predecessor Robert L. Ehrlich for three legislative sessions he was “sick of this issue.” State Senate president Thomas V. Mike Miller, a Democrat like O’Malley, said he is optimistic a tracks-only slots bill will be passed early in O’Malley’s term, and predicted that if it were not he expected to see “racing just give up and go to other states and the Preakness move on.” Not everyone in Maryland government agreed, however. Peter Franchot, a Democrat who was elected comptroller last week, said he hoped O’Malley would not press the “divisive issue,” saying he thought the bill would fail again even with O’Malley’s backing. “I personally think it’s a loser of an issue,” Franchot said. “Voters threw out the No. 1 cheerleader for slots, Bob Ehrlich.” O’Malley’s aides said the new governor probably would not introduce a slots bill, but hoped legislators would do so. THE HAIRGROVES LEAVE US Not everyone in the present generation of track operators will remember Dick Hairgrove, but those who do will recall him fondly. He was a key representative for Autotote for years, and he and his wife Shirley never missed an HTA meeting during his association with the tote company. Early in the morning of October 28, Dick and Shirley’s home in Newark, Delaware caught fire, and Shirley perished in the blaze. Dick, badly burned, was hospitalized in a burn center, but was released Nov. 7 to attend Shirley’s funeral. At 4 a.m. the following morning, Dick died. HTA extends its condolences to the son and daughter and grandchildren of Dick and Shirley, longtime friends of this association. CHARLEY RUSSO DEAD IN NY Charles F. Russo, a longtime harness racing breeder and one of the founders of the New York Sires Stakes, died Nov. 5 at his home in Spa Circle, NY. Russo was executive director of the Harness Horse Breeders of New York from the group’s inception in 1957 until his retirement in 1985. He won the U.S. Harness Writers’ Proximity Award for major contributions to the harness racing industry in 1988. 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 THE SUN RISES AT POCONO Mohegan Sun at Pocono ushered in a new era for Pennsylvania today, becoming the first track in the state to open a racino. Pocono had almost 1,100 slots in play for the debut, and all were occupied within half an hour of the 10 a.m. opening as a line of eager patrons waiting in the rain poured into the building. With all machines occupied, a long line waited to get player cards. Conrad Sobkowiak, Pocono’s vice president of racetrack operations, said the opening “went very smoothly, with parking and traffic well under control. It was a drizzly day, but we had 1,000 people waiting to come in at 10 a.m.” Pennsylvania’s lieutenant governor, Catherine Baker, was on hand, along with Bruce (Two Dogs) Bozsum, chairman of the Mohegan Tribal Council, which owns all Mohegan Sun Properties. Bazsum gave an opening ceremonial prayer. The present temporary racino is 90,000 squarefeet, part of a $70 million renovation of the track, with a second phase scheduled for next year that will see construction of a 400,000 square-foot racino that will open with 2,000 machines. Mohegan Sun paid $240 million for Pocono to Penn National Gaming, which had to divest itself of the track under Pennsylvania’s one-venue law, and then paid the state $50 million for the slots license. Mohegan Sun expects the machines, when all 2,000 are on line, to gross $230 each a day, which would provide total annual revenues of $167.9 million. While the first guests arrived at Pocono today, hoping for slots winnings, the first of five applicants hopeful of obtaining one of two stand-alone casinos in Philadelphia testified yesterday before the Pennsylvania Gaming Control Board in Harrisburg. Seven days of hearings are scheduled over four weeks, with the Philly hearings to take five days. November 14, 2006 The first to testify today was billionaire Chicago developer Neil Bluhm, who said during his two hours of testimony that it was not in the state’s best interest to have Atlantic City casino owners - Donald Trump and Pinnacle Entertainment -operate Philadelphia casinos, since they are better off keeping their customers in New Jersey, which has more favorable casino tax rates. He said he had no Atlantic City holdings, and would fight to keep customers in Pennsylvania. Bluhm also defended his intention of building a riverfront hotel, saying Philadelphia is not oversupplied with hotel rooms. Planet Hollywood, as might be expected, tried glitz, showing videotaped messages of support from Bruce Willis and Sylvester Stallone and promising community development. The Gaming and Control Board, for its part, continued its mode of secrecy, releasing little information in the way of maps or basic fact sheets or even site plans or architectural renderings, saying (are you ready for this?) that to do so would reveal the location of security cameras. GLIDEMASTER AT YONKERS Given their choice, harness racing trainers prefer bigger tracks, and spurn half milers, despite the fact that the sport’s most successful years came over the half-mile tracks at Yonkers and Roosevelt Raceways. Their objections melt away, of course, in the face of dollar signs and special laurels, and now trainer Blair Burgess, who conditions Glidemaster, winner of the Hambletonian and Kentucky Futurity -- the first two jewels in the Triple Crown of trotting -- has decided to ante up $60,000 to supplement his colt for the upcoming Yonkers Trot, third leg of the Crown. Glidemaster has won 7 races and has been second 7 times in 14 starts this year, without ever racing on a track smaller than seven-eighths of a mile. 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 CAMPBELL ON HTA WEB SITE John Campbell, resting at home in New Jersey following surgery on his shattered left leg, took time for an interview for Harness Tracks of America’s World in Harness Internet show, and the interesting result can be found on the home page of HTA’s Web site, www.harnesstracks.com. Campbell discusses his accident, the impact of racinos at Yonkers and in Pennsylvania on racing at his home base, the Meadowlands, illegal medication, and his thoughts on security. John’s mounts have won $240,638,270, first among all world harness racing drivers and fifth among drivers and American thoroughbred jockeys. Only Pat Day, Jerry Bailey, Chris McCarron and Laffit Pincay Jr. have earned more with their mounts, and Campbell leads Gary Stevens, Alex Solis, Eddie Delahoussaye, Kent Desormeaux, Jose Santos and Edgar Prado, who are closest behind him on the all-time money-winning list. HENSLEY PROMOTED AT DOVER John Hensley has been named Senior Director of Harness Racing at HTA member Dover Downs. John started at the Delaware track six years ago as assistant race secretary, and worked briefly after the harness season in Dover’s Motorsports Marketing. He then was named Manager of Harness Racing, and more recently has been Director of Harness Racing, where he has been responsible for significant improvements in both live and simulcasting products. In his new job, he also will supervise Dover Downs’ mutuels department. YONKERS BACK ON TRACK Dark for 17 months, Yonkers Raceway resumes live racing Friday, with a nine-race program and 7:40 p.m. post time. The track has been idled by $240 million in racino and other construction, and returns with a Friday thru Tuesday racing schedule. November 15, 2006 Sunday programs will start at 5 p.m. This Saturday’s card will feature eliminations for the $750,000 Yonkers Trot, final jewel in the Triple Crown of Trotting, and $750,000 Messenger, final jewel in the Triple Crown of Pacing. The track, now known as Empire City at Yonkers, underwent a state inspection yesterday to clear the way for reopening, and general counsel Tim Rooney Jr. said some final corrections were made during the inspection, with a report not yet received. The track racino currently has 2,370 VLTs in operation. Since opening Oct. 11, Empire City has netted $18.2 million, with $9.9 million going to education in New York state. Purses, which were $45,000 a night when Yonkers closed in June of 2005, will average $100,000 a night next week, and could rise to $200,000 once additional VLTs become operational. OHIO TRACKS NOT GIVING UP Ohio tracks, including four HTA members in Northfield Park, Scioto Downs, Lebanon Raceway and the Delaware County Fair, are not giving up in the wake of last week’s decisive turndown by voters on slots and racinos. An “Instant Racing” bill is under consideration in the General Assembly, using an electronic format of past races, and River Downs general manager Jack Hanessian told Blood-Horse that tracks may draft another slots proposal more appealing to voters and try for approval on a state ballot. In Maryland, Maryland Jockey Club president and CEO Lou Raffetto Jr. told Blood-Horse that “We can hold our own through 2007, but I can make no assurances about racing past that. The clock is ticking.” Raffetto said, after a Maryland commission meeting, that he hopes a 15-year revenue sharing agreement hammered out earlier this year between harness and thoroughbred groups might spill over into the political arena. 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 POCONO: $7 MILLION FIRST DAY It may have been dark and dreary and raining outside, but the sun (the Mohegan Sun) was shining brightly inside the racino at Pocono Downs on opening day. In the first 14 hours of operation, gamblers pushed almost $7 million through the 1,093 slots that were operating during the day. Pocono said 16,000 patrons passed through the racino on Tuesday, and between the opening at 10 a.m. and midnight they pushed $6,708,000 through the machines. The casino’s win averaged $632 for each of the machines that operated at least part of the day which was almost three times higher than the Mohegan Tribal Gaming Authority projected in its Pennsylvania application. The state’s regulators thought that projection was unrealistic, and said they thought $180 a machine was a more likely expectation. Track president and HTA director Bob Soper, while elated with the results of opening day, tempered his elation with realism, saying, “It’s still way too early to make any determination about the robustness of the market,” noting that pentup anticipation and being the first racino in Pennsylvania certainly affected the results. The largest jackpot Tuesday was $16,000, and Soper said daily win can be affected by jackpot returns. Soper said Mohegan Sun now has 465 people working around the clock, but might hire more if business continues to exceed projections. Of the total $6.8 million put through the machines on opening day, Pocono received $690,915, but $380,003, or 55% of that total, went to the state in taxes. Gulfstream Park also opened its racino, with an initial 516 machines and spectacular decor, although a reporter for the Miami Herald wrote that the walls could have been institutional gray illuminated with naked light bulbs dangling from extension cords, as far as the throng of players was concerned. November 16, 2006 The writer, Fred Grimm, might have been a bit put off by the response he received from one “properlooking grandma” he tried to interview. He asked her what she thought of the racino’s $140 million under-the-sea theme, including a 13,000gallon cylindrical aquarium and ceiling fixtures like blue and white bubbles. He said she barely looked up, and “waved me away like I was an unctuous waiter,” keeping her eyes fixed on the electronic face of a machine named Enchanted Unicorn. “I don’t need anything, honey,” she told the reporter, ignoring his question and dismissing him summarily. All in all, it was a big day for Magna Entertainment. It and its partner, Forest City, received final approval from the city of Hallandale Beach, for the development of The Village at Gulfstream Park, a 60-acre, master-planned “lifestyle destination,” whatever that may be. Magna also closed on its sale of The Meadows to Cannery Casino Resorts, owned by Millennium Gaming, for $200 million, and received a second and final vote of approval from the Dixon, California, city council to move forward with its plans for a track in that city. A citizens’ group continues efforts to block the track through a referendum. USTA PROPOSES BIG BOOSTS The Executive and Finance Committees of the United States Trotting Association, at a semi-annual meeting in Columbus, has proposed boosting the organization’s contribution to the Racing Medication and Testing Consortium from $15,000 to at least $100,000. The committees also approved raising its funding of Standardbred Investigative Services, the sport’s security arm. Increasing visibility of the sport through print media ads featuring high profile individuals as spokesmen also was approved. 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 AROUND THE TRACKS...... THE MEADOWLANDS reopens for its fall meeting tonight, a session that will extend through the end of the year and will feature fall championship events for older horses and juveniles. The first stage of a two-part, $10.5 million renovation of the track’s paddock will be unveiled tonight, with the second stage, including a 27,000-square-foot addition, will be completed near the end of next year’s summer meeting. The improvements include new lighting, heating and cooling, new rest rooms and changing rooms, and accommodations for 12 races rather than the present six. The paddock’s backstretch kitchen has been renovated and will include a cooking grill, and both interior and exterior of the existing paddock have been repainted and the front area repaved. The paddock has been in use since the track opened 30 years ago. ATTRACTIONS HIPPIQUES, Paul J. Massicotte’s ambitious privatization of Quebec harness racing, has announced its first step in a major project to revitalize the sport in the province. Trois Rivieres is the first of the Massicotte tracks to receive attention, with a $15 million expenditure for land, construction, equipment and indoor renovations. Massicotte says his organization will provide “new branding, infra structures adapted to an integrated offering that includes horse racing, and marketing that uses cutting-edge technology.” Rather than focusing strictly on youth, Massicotte hopes to attract a new, affluent clientele of people 35 and older “who are looking for entertainment conducive to socializing.” NORTHLANDS PARK opens a fall-winter meeting tonight that will be highlighted by 16 days of racing through Dec. 16, featuring the $50,000 Snowshoe on November 25 and the $50,000 Prairie Magic on December 2. November 17, 2006 SANDOWN PARK, HTA’s far west member in British Columbia may have raced its final live harness race. Sandown is owned by Great Canadian Gaming Corporation, and that company’s Scott Sinclair confirmed yesterday that the track will not host harness racing this summer. Located on Vancouver Island, where horse racing has existed for 150 years, Sandown’s demise ends an era. Great Canadian thought it could save Sandown with slots, but the North Saanich council, the body which governs where the track is located, turned down Great Canadian’s rezoning application for slots on Sept. 18. Howard Blank vice president of Great Canadian, said he informed the council that without slots the track is not viable. Blank says he has no animosity toward the council, and hasn’t closed the door on working with its members to revitalize the track and bring back live racing. The mayor of North Saanich appeared to leave the door open, saying he was “no champion of slots, but I was a champion of Sandown, and if it took slots to do it, so be it.” But the town and Great Canadian could not agree on terms. Great Canadian HTA director Chuck Keeling, whose grandfather Jim Keeling Sr. opened Sandown in 1978, said he had a personal attachment to the track, where he started working as an eight-year-old, but “if we can’t make a business case to redevelop, then it makes sense to me to support the decision.” Simulcasting will continue at Sandown. YONKERS RACEWAY holds its first live race since June 25, 2005, tonight, following completion of the $240 million construction of its racino, Empire City at Yonkers. PEOPLE: Top drivers Mike Lachance and Ron Pierce will race and sightsee in Italy, with their wives, for a week or so in mid-December. Trainer Doug Ackerman is moving his winter training base, long established at Del Mar in California, to Pinehurst in North Carolina. 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 November 20, 2006 DELAWARE LEADS THE WAY THE CHASE, COAST TO COAST While others talk and ponder, the little state of Delaware has taken the lead in imposing meaningful penalties for illegal drug infractions. In a trailblazing move, the Delaware Harness Racing Commission has passed rules that provide $10,000 fines and 10-year suspensions for the possession or use of blood doping agents, including EPO, DPO, Oxyglobin, Hemopure or any other substance that abnormally enhances the oxygenation of equine body tissue. The rule covers any horse entered to race; any horse that was entered or raced within 60 days of entry and racing; any horse showing the presence of EPO, DPO and similar antibodies; any horse in the care, custody and control of a trainer having a horse that has tested positive for EPO, DPO and similar substances through a screening test; any horse that dies, consistent with commission rules. The new rules provide for secondary samples at the request of owners or trainers whose horses test positive. The penalties provide for a MINIMUM penalty of $10,000 and/or a 10-year suspension, forfeiture of purse money, and assessment for cost of drug testing. The full text of the new Delaware rules will appear on the HTA Web site, www.harnesstracks.com, and in this week’s edition of Track Topics. Hugh Gallagher, administrator of racing in Delaware, said of the tough new rules, believed to be the first in the nation for possession of blood enhancers as well as use of them, “We will be ramping up our testing on this and other substances, and will go after offenders with both hands.” Racing interests east and west are fighting pitched battles for ground. Here is a brief up-to-date report. POSITIVE TEST CONFIRMED The positive test on Holborn Hanover, winner of the $203,000 American-National at Balmoral Park Aug. 26, has been confirmed by the testing lab at Louisiana State, according to www.harnessracing.com, and the purse redistributed, with Lis Mara now the official winner. IN PENNSYLVANIA, despite the election defeat of Rep. Mike Veon, a supporter of Beaver county’s bid for a harness track, the county commission chairman said, “We have no intention of walking away” from supporting Centaur of Indiana’s plans for a track in the county. Jeff Smith of Centaur was due to meet with county officials this week. IN NEW JERSEY, the state attorney general has 14 days, starting today, to decide whether to approve, deny, or make no decision on an off-track betting parlor to be operated by Freehold Raceway co-owners Greenwood Racing and Penn National. The state racing commission approved the site last week. The mayor of Toms River, where the OTB will be located in a former supermarket, said he thought the AG would approve it, adding, “He has no reason not to approve it.” IN MASSACHUSETTS, the Boston Herald editorially outlined why the state needs to legalize slots at tracks to pay for governor-elect Deval Patrick’s ambitious plans for schools and 1,000 new police. “Hey,” the paper said, “if it’ll finance all-day kindergarten, it ought to be considered.” The Herald pointed out that “Deval may do all the ‘homework’ he’s promised and still decide the revenue from expanded gambling isn’t worth it. But without that annual revenue (in the hundreds of millions, by many accounts) we await word on how he’ll pay for those big ideas.” The headline on BostonHerald.com read, “Under Gov. Patrick, let’s get in the game.” The sentiments expressed are valid elsewhere, particularly in Ohio. 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 November 21, 2006 DISCORD IN DIXON LOOKS LIKE A VERY GOOD BET A group of residents in Dixon, California, opposed to Magna Entertainment’s plans to build a $250 million track and entertainment complex there, gathered 1,400 signatures -- 700 more than needed -- to force a referendum on the issue. It took the group three weeks to gather the signatures, and now they have to do it all over again. The city council of Dixon had passed both resolutions and ordinances covering building of the track, and the city attorney said that required the citizens’ group to gather at least 700 valid signatures again and present their petition once more. They have 30 days to do so, with the deadline Dec. 14. If the citizens’ group meets it, the Dixon city council would be required to set a special election as early as March, 2007. Magna said it will wait to see if the citizens gather the required signatures before it launches a campaign for the track. Dixon is located on Interstate 80 between San Francisco and Sacramento, closer to Sacramento where HTA member Cal-Expo operates its year-round meeting. Magna plans to build a mile and an eighth thoroughbred track, with a capacity of 15,000, and a hotel and conference center on 260 acres, and opponents are concerned that it would erode the small town charm of Dixon. Barring a bad break, which is unlikely although it is his first race on a half-mile track, Glidemaster should become the sport’s eighth trotter to win the Triple Crown Saturday night. Blair Burgess, who trains the 3-year-old for his wife, his father, Marsha Cohen and George Segal’s Brittany Farm, is betting $60,000 -- the supplemental entry fee for the $728,930 Yonkers Trot -- that the colt will win the race, the Triple Crown and clinch 3-year-old honors over Majestic Son, who has beaten him in all three meetings this year but is not eligible to the race and was not supplemented. Glidemaster, already winner of the Hambletonian and Kentucky Futurity, lays over the field on paper, and is likely to send his earnings for 2006 over $1.7 million Saturday. George Brennan replaces the injured John Campbell in the sulky. JACKSON TO KY AUTHORITY Ken Jackson, who operates Kentuckiana Farm with his father-in-law Tom Crouch, has been appointed to the Kentucky Horse Racing Authority by Gov. Ernie Fletcher. Jackson, a lawyer in Lexington, replaces John Cashman as the only harness racing representative on the Authority. His term will run through January 6, 2008. Two thoroughbred horsemen, Frank King from northern Kentucky and Dr. Jerry Yon, a Lexington doctor, also were added to the board. Members Connie Whitfield and Dell Hancock remain on the Authority. A LITTLE WIRELESS POKER? You will be able to play if you wish, along with baccarat, blackjack, slots and other games, under a new agreement between Cantor Gaming and Aristocrat Technologies. Aristocrat will provide its game content via Cantor’s mobile gaming system to wireless, handheld devices in casinos worldwide. Cantor Gaming managing director Joe Asher called Aristocrat’s content “innovative and popular” and said the partnership would enhance Cantor’s reputation as a leader in mobile gaming. LEO PINCKNEY DEAD AT 89 Leo Pinckney, former president of the Vernon Downs chapter of the U.S. Harness Writers Association, died yesterday, one day after his 89th birthday. Leo, sports editor of the Auburn, NY Citizen for 37 years, also had been an Associated Press correspondent for 30 years and was an enthusiastic booster of harness racing throughout his career. 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 November 22, 2006 EXCELSIOR GETS THE NOD NOT BAD FOR OPENERS In a battle of big names, George Steinbrenner proved he still is a force to be reckoned with, as his Excelsior Racing Associates won the recommendation of New York state’s Committee on the Future of Racing in New York to take over the franchise of the New York Racing Association. Steinbrenner’s son-in-law, Steve Swindal, is the figurehead of Associates, but looming large to racing people is the father-son team of Billy and John Johnston. The Johnstons control harness racing in Chicago and have been dominant in Illinois for years, and now move east as minority partners in Excelsior. Steinbrenner and Swindal are partners of the Johnstons in Balmoral Park in Chicago, and it seems certain Billy and John will play a major role in racing strategy if the Excelsior recommendation holds under New York’s new governor and legislature. John Johnston told the Chicago SunTimes that Excelsior’s plans for New York tracks include development of real estate owned by the tracks, VLTs (perhaps at Belmont as well as Aqueduct) and “revitalization” of racing. Guests at Mohegan Sun at Pocono poured $39.3 million through Pennsylvania’s first racino in its inaugural week, but a cautious and conservative president Bob Soper said he “still doesn’t know what to expect.” Of the total play, gamblers got back $35.3 million. The remaining $4.08 million produced $1.4 million for property tax relief, the cause on which Gov. Ed Rendell pitched slots. Local government picked up $163,000 in the first week, economic development and tourism got $204,000, and the state’s racing industry some $490,000. The racino picked up $1.83 million, less operating expenses, during the week, when machines were occupied steadily until nearly 3 a.m. Pocono currently has 1,100 machines operating, with another 900 to come. With no competition at the moment, the machines were averaging from a low of $313 each on a Monday to a high of $734 each on Saturday, Nov. 18. Still to come is Philadelphia Park’s racino in late December, Harrah’s Chester Casino and Racetrack in January, and The Meadows in the spring. While the committee recommendation does not guarantee that Excelsior will be the ultimate winner, its other members include the politically powerful casino developer Richard Fields, a close friend and financial backer of Spitzer. Fields contributed $200,000 to Spitzer’s campaign through various organizations he controls, and loaned his private plane to the new governor during his campaign. This would indicate that Excelsior’s two rivals, Empire Racing and NYRA itself, have a very tough battle for the crown, since Spitzer and the new legislature will have the final word on who gets the franchise. The award of the committee surprised some, given that Churchill Downs, Woodbine, Magna Entertainment and Delaware North were allied with Empire, and former New York governor Hugh Carey recently joined its team. GEORGIAN IRATE AT OHHA Chris Roberts, director of operations for HTA member Georgian Downs, is unhappy with the Ontario Harness Horse Association. Roberts told The Harness Edge, “We thought we had struck a deal that was great for all involved. Our management team met with the OHHA leadership on Nov. 3 and left thinking we had a deal. The rejection of that deal certainly sends a message to us that OHHA’s negotiating team isn’t interested in working with track management.” The Nov. 3 discussion included OHHA president Jim Whelan, COO John Walzak, and three district directors, who agreed to a seven-week extension of the track’s present contract. Roberts says he was shocked to learn that members had rejected the offer, particularly that only 10 members showed up to vote in a district consisting of hundreds. 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 A TRACK MERGER IN OHIO? HTA president and Northfield Park chairman Brock Milstein says he is open to exploring possibilities of a merger of Northfield with Magna Entertainment’s thoroughbred track Thistledown, only a few miles up Ohio’s Route 8 from Northfield. Milstein, commenting on the recent voter turndown of slots in Ohio, said formal discussions have not been held, but “one or the other of us, or both, owning both tracks probably makes the most sense.” Milstein said “a very basic conversation has been held discussing a way to work better together.” There was conciliatory talk in Massachusetts, too, where slots at tracks still are only a dream. Charles Sarkis, owner of Wonderland dog track in Boston’s close-in suburb of Revere, has been a severe and savage critic of Mohegan Sun in neighboring Connecticut, where it and Foxwoods have drawn Massachusetts customers by the thousands. Now, with slots seemingly no closer, Sarkis reportedly is floating talk of having Mohegan Sun take a position in Wonderland. So far Mohegan has evinced no interest in the idea, drawing Boston gamblers to its own operation. LAW IS A GOOD PROFESSION Because there is horse racing, that’s why. The latest boom for lawyers is a dispute between the New York Racing Association (as if it doesn’t have enough other troubles) and the New York City OffTrack Betting Corporation. NYCOTB owes NYRA $9.1 million in simulcast fees, and NYRA is considering withholding its signals if that money is not paid. NYRA could withhold its signal to New York homes after a 45-day notification period, but could not pull the signal from OTB parlors in the city because state law required it to give all OTB branches in the state its signal, or none at all. November 27, 2006 NYCOTB president and HTA director Ray Casey said, “I can’t believe they’d even contemplate that. We can’t hold the fans hostage again.” Casey said cash flow was a problem, and payments due in 30 days were moved back to 90 because of a lack of funds. NYRA’s Bill Nader said discussdion on a payment schedule was expected today. In Kentucky, Churchill Downs is suing its domestic account wagering partner, TVG, for breach of contract. Churchill says TVG did not seek its approval for foreign broadcasts in planning to simulcast races from its U.S. partners to the United Kingdom though a subscription service. TVG says it will challenge the suit. In Ontario, HTA member Flamboro Downs has offered the Ontario Harness Horse Association (OHHA) a deal to run backstretch stabling and apartments at the track, with a $1 a year lease. Ron Bosanac, Flamboro’s director of operations, says the track, owned and operated by Great Canadian Gaming, will give up control of all operations and maintenance for the stable area under the lease, and would work with OHHA during a transition period. He said Flamboro would offer OHHA support during the due diligence process. In Washington, DC, the district Court of Appeals has blocked a Shawn Scott plan for slots for the nation’s capital. The court unanimously reversed a Washington Superior Court judge, saying only the United States Congress can authorize gambling in Washington. The lower court had upheld a Board of Elections and Ethics ruling for Scott, but three community activists challenged the Board’s action and won. A three-man Court of Appeals panel ruled that a referendum on the issue “would exceed the legislative powers granted to the District and its citizens by the Home Rule Act.” 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 November 28, 2006 HTA PURSE ANALYSIS ONLINE JOE JOYCE DIES AT 77 A monumental purse analysis report for 2003, consisting of 304 pages in two sections and covering all HTA member tracks, is now online in the proprietary section of the HTA Web site, accessible by password. A second report, for 2004, is near completion and will be distributed in similar fashion shortly. Each individual track’s statistics are accessible easily by clicking on the track’s listing in the index. Brody Johnson of our staff compiled the report with major work done by Pam White and David Carr of USTA. Joe Joyce, one of harness and thoroughbred racing’s best known executives, has died in Palm Springs, California, after a six-month illness. Joe was an active HTA director during his years as chairman of Roosevelt Raceway, and later became a part owner of Arlington Park in Chicago, where he launched the Arlington Million in 1981, the first million dollar thoroughbred race in the U.S., a year after the Meadowlands presented its first million dollar Meadowlands Pace. Joe took charge of Arlington in 1976 as president, later moved on briefly to Amtote, returned to Arlington as a part owner, and was bought out in 1987 by Dick Duchossois. Joe had started his racing career as general counsel for New York City OTB in 1971, and ended it 27 years later as owner of Wyoming Downs in Evanston, Wyoming, which he bought in 1990 and sold in 1998. Although it was small, Joe’s son Eugene said it provided Joe with the most fun he had in racing, and Joe soon appeared in cowboy hat and boots, full regalia for his role. A graduate of Holy Cross and Fordham law school, Joe served as a marine in Korea and received a Purple Heart in that campaign. His son Eugene is president and general manager of Turf Paradise in Phoenix, and another son, Michael, is an on-air analyst at TVG. HTA extends its deepest sympathy to Elizabeth, Joe’s wife for 52 years, and to their 13 children. A GREAT IDEA FROM BIG M The annual competition for Caretaker of the Year, co-sponsored by HTA and Hanover Shoe Farms, is underway. All that is required is a letter of nomination, which gets each nominee a beautiful satin jacket indicating he or she was a nominee for the title. A committee of present harness racing executives, most of whom were caretakers themselves early in their careers, judges the letters and selects the caretaker who they feel is symbolic of the contributions of all. The winner receives an oil painting of himself or herself with their favorite horse, done by nationally known artist James Ponter. Last year’s entry was disappointing in numbers, and to help boost response this year the Meadowlands’ Chris McErlean has had a large HTA announcement of the competition printed daily on the back of the track’s overnights. Similar treatment, or an ad in your past performance program, would be appreciated greatly. If you have not received camera ready copy of various announcements, in various sizes, let Cindy or Jen at HTA know and they will fire them off to you. To all HTA racing secretaries, please return your ballots for Nova award winners ASAP. You can wait until after this weekend’s Meadowlands juvenile championships to return them. NO MINNESOTA TRACK TIL ‘08 Southwest Casino and Hotel corporation, which planned to open a new harness track near Minneapolis next year, has been forced to push back the opening until 2008. The Army Corps of Engineers is trying to figure out how to preserve artifacts from an early Indian village at the proposed site, and until it either succeeds or signs off, construction cannot begin. Tom Fox, CFO and president of Southwest, had hoped to open the track next fall. 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 November 29, 2006 HARRAH’S IN PLAY? STAFF CHANGES IN MONTREAL The New York Times reports this morning that Penn National Gaming, currently the third largest gaming company in the United States, and hedge fund D. E. Shaw, are considering making a cash and stock offer for Harrah’s Entertainment, with financing and equity interest by Lehman Brothers and Wachovia Corporation. That effort will require big numbers, since the private equity groups Apollo Management and Texas Pacific reportedly have offered to buy Harrah’s for $15 billion, and have since raised their offer by another $500 million to $15.5 billion. On paper, the deal would be the shark eating the whale, since Penn National’s market capitalization is $3.3 billion and Harrah’s $14.2 billion. Harrah’s had no comment on today’s report, other than to say its committee of non-management directors is reviewing the earlier ApolloTexas Pacific bid. Penn National shares were down 58 cents, or 1.5%, at $38.16, while Harrah’s were up $1.91, or 2.5%, at $78.46. Four new vice presidents have been named at Attractions Hippiques, formerly Hippodrome de Montreal and before that Blue Bonnets. The four are Jean Bourdeau, CP of services; Antoine Beauvais, in charge of marketing and sales; Christiane Labelle, finance; and Gerard Landry, racing. All four will report to president Paul Massicotte. Out in the shakeup are Richard Castonguay, manager of Hippodrome de Montreal since 2003, and Claude Grise, former director of programming and briefly manager of Hippodrome d’Aylmer, one of Massicotte’s four tracks. Along with the announcement came persistent published rumors that Chris McErlean was leaving the Meadowlands to take charge of racing operations at Penn National. Chris, who started his meteoric career as executive assistant at Harness Tracks of America following graduation from Scranton University, picked up an MBA at Fairleigh-Dickinson in New Jersey while working for HTA, then was hired by the Meadowlands and rose quickly to his present post of vice president of racing operations. WE THOUGHT IT WAS COLD It was breezy in Tucson this morning, and we grudgingly put on sweaters. Then we heard that HTA director Les Butler had called off racing at Northlands Park tonight, because of forecasts of 20 below zero Fahrenheit. We feel warmer already. ORC TO WINDSOR: START OVER The Ontario Racing Commission has turned down Windsor Raceway’s application for 2007 dates, and ordered the southern Ontario track to submit a new application. Windsor had requested a racing schedule of 101 days of live racing, down from 138 allocated (but 10 or so less actually raced because of a shortage of horses) this year. Windsor is moving to a new track in Tecumseh, Ontario, but the commission said it shared Ontario Harness Horse Association concerns about lack of sufficient efforts in track maintenance and the racing product. The commission also disallowed the application of HTA member Flamboro Downs to reduce its number of live racing dates for next year. Great Canadian Gaming owns Flamboro, and it sought to reduce the live racing schedule from 258 dates to 208. Departing ORC chairwoman Lynda Tanaka said that request “was not in the public interest or in the best interests of horse racing,” constituting as it did a reduction of more than 20% of the live racing schedule. She suggested that if Flamboro wished to avoid racing at the same time as Woodbine, “there are dates available that are not an issue.” 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 GOV SAYS NO TABLE GAMES State representative H. William DeWeese, who is expected to be named Speaker of the Pennsylvania House in January, has drafted legislation that would legalize table games at racinos and casinos in the state. On hearing the news, Gov. Ed Rendell sent clear signals to DeWeese not to waste his time, saying he would veto any such legislation. DeWeese’s rationale was that “there is no practical difference between putting $20 in a slot machine and $20 on a blackjack table.” Rendell’s response was that it was far too soon to consider such a move. “We have to make sure that over time, the expansion of gambling is successful, it works well, and whatever negative sides there are to it, that we control them. And until we’ve had a significant test period to see that in operation, I don’t think any of these bills should be considered and I wouldn’t sign them.” The Pennsylvania Senate’s new Republican leader, Dominic Pileggi, issued a similar view. “I think it’s a reasonable position,” he said, “to see how the introduction of expanded slots across Pennsylvania works in practice, what sort of revenues it generates, what sort of problems it creates.” Pileggi’s home district includes Harrah’s Chester Casino and Racetrack. Only one state -- Iowa -- currently allows table games at its racinos. West Virginia would like to become the second, and may get it done with a new session of its legislature. The outgoing House Speaker, Bob Kiss, has been reluctant to bring the issue to the floor, but his two most likely successors, delegates Rick Thompson and Scott Varner, both have expressed support for the idea. Iowa passed its table games legislation without a referendum of voters and without much opposition, but does require a referendum every eight years asking voters if they wish to keep or eliminate gaming. The most recent vote, in 2002, produced a smashing 74% vote in favor of retaining the games. November 30, 2006 WANT A SHOT AT THE BIG TIME? The New Jersey Racing Commission is seeking candidates to interview for the post of Presiding Judge at The Meadowlands. If interested, you must have graduated from an accredited college or university with a Bachelor’s degree; have three years of overall general administration, of which two years shall have included experience as an official presiding over horse racing related activities; have a valid license to officiate harness horse races as an official, accredited by a school for horse racing officiating recognized by the New Jersey Racing Commission. The job carries a full range of medical, dental, prescription drug and pension benefits, and the salary will be based on education and experience. If you are interested, forward your resume to Frank Zanzuccki, Executive Director, New Jersey Racing Commission, P.O. Box 088, Trenton, NJ 08625, phone number 609-292-0613. NOW FRANCE BARS FALLON Kieran Fallon, champion jockey of Great Britain six times, is setting new records. Barred in Britain and in Hong Kong, he now has been given a six-month suspension in France for testing positive to minimal trace amounts of prohibited substances in a drug test in July at Chantilly. It is expected that the new ban will be accepted reciprocally worldwide. Fallon was suspended in England pending a trial into charges of conspiracy to defraud bettors. He has until midnight tomorrow to appeal the new charges. THAT BUZZING IS CELL PHONES Nokia, which should know, says there will be 3 billion cellphones in use next year, a full year ahead of predictions. It says the 4 billion mark will be reached in 2010. 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 HTA SCHOLARSHIP WINNERS Harness Tracks of America has announced the winners of its $50,000 in college scholarships for 2006. The six winners were chosen by HTA’s Scholarship Committee from 54 applicants. They are: ERIC WILLIAM MCCARTHY, 18, a $10,000 scholarship winner from Newberry, FL, a prevet freshman at the University of Florida. He is the son of the late trainer-blacksmith Ivan Amos and Janet McCarthy, a lifetime horsewoman who worked for Delvin Miller and Jimmy Takter, among others, and then formed their own Scandia Stable, sending out the top notch Merrie Annabelle winner Cayster and Dygert Memorial winner Work Force among others. Eric graduated in the top 3% of his high school class of 300. BRITTANY SCHWARTZ, 19, of Strasburg, PA, a $10,000 scholarship winner who is a freshman majoring in equine studies and business at Delaware Valley College in Doylestown, PA. A daughter of Paul and Priscilla Schwartz, Brittany has worked as a highly regarded groom in the Jim Groff training stable for three years. During her senior year at Lancaster Christian high school in Lancaster, PA, she enrolled as a dual student at Harrisburg Community College in Lancaster and attained high 90s averages at both schools. Class president for three years, she was captain of the cross-country team and a National Honor Society scholar. ESSIE LYNN HENNESSY, 20, of Grand Blanc, MI, a $7,500 winner and junior majoring in applied biology and pre-vet studies at Ferris State University in Big Rapids, MI. She worked as a veterinarian’s assistant and groomed for her parents, Ed and Sandra Hennessy, both trainers. An honors student, youth soccer coach and gymnast, she was class treasurer her junior and senior year. J December 1, 2006 NATHAN ERIC WILCOX STEIN, 18, a $7,500 scholarship winner from Rochester, NY. A straight “A” student at Greece Odyssey Academy, he is pursuing courses in engineering, physics, political science and history at the University of Rochester to determine his future choice of a profession. His family has been involved in harness racing for more than 50 years, through his grandfather Dick Wilcox, who raced at Batavia Downs, and his mother’s cousin Hugh Beatty Jr., who races at Scioto Downs. The son of Mark and Mary Lou Stein of Rochester, Nathan has been active in varsity baseball and basketball, jazz band, the National Honor Society and Natural Helpers. MICHAEL JOHN LATESSA, 25, of Columbus, Ohio, a junior at Ohio State University College of Veterinary Medicine and a $7,500 winner. A third generation harness horseman, Michael plans on specializing in equine surgery after graduation. His father and grandfather competed on the New York Sires Stakes circuit for years, campaigning the successful pacer Sly Attorney among others. His grandfather’s brother, Don Latessa, was formerly presiding judge at The Meadowlands. Michael’s mother Paula and father Gerald, a former trainer-driver, now an air traffic controller, live in Columbus. LISA KATHRYN NAROTSKY, 18, of Willowbrook, IL, a $7,500 winner and freshman at Illinois Wesleyan University. An outstanding student in mathematics, she was a tutor in that subject and in Spanish at Hinsdale South High School. One of Illinois’ outstanding scholastic athletes, she was pitcher and captain of the twotime All Conference Hinsdale South fast-pitch softball team and was the winner of the U.S. Army Reserves’ all-area scholar-athlete award. Lisa is the daughter of Eliot (Doc) Narotsky, Mayood Park racing secretary, and his wife Jean, a financial manager. 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 NYC: MERGE OTB, NYRA The city of New York, acknowledging a financial crisis for both the New York Racing Association and the New York City Off-Track Betting Corporation, has asked the legislature to consider a merger of the two entities. Daniel L. Doctoroff, deputy mayor for economic development and rebuilding, has sent a long letter to legislators, saying, in part, “The combination of these two forces -- marketing failures and the heightened competition for the wagering dollar -- calls for immediate action from the New York racing incumbents to rescue the industry from its current unsustainable situation, one that puts at risk thousands of jobs and significant revenues to the state and city.” Doctoroff says a merger of NYCOTB and NYRA, “working together to create a more entertaining consumer experience, with better awareness and simpler products that can be accessed through a wider variety of channels,” would be an ideal solution. He says the city believes that four key actions must be taken to accomplish this vision: 1. Broaden the entertainment focus by delivering new gaming technologies at upgraded, inviting facilities; 2. Invest in the strategic marketing and presentation of the New York racing product; 3. Better align the relationships and economic interests of the New York tracks and the OTBs through a statutorily authorized merger. Alternatively, this could be done by enacting a legislative change that would fix the current revenue distribution scheme and provide financial incentives to improve the racing product; 4. Allow New York tracks to seize the opportunity presented by the new VLTs to create major entertainment destinations. December 4, 2006 Doctoroff then elaborated on each of the four points, and in regard to “fixing the current revenue distribution scheme” he had this to say: “The current legislative scheme for statutory distribution of wagering revenues puts NYCOTB and NYRA in a cycle of perpetual conflict over how best to share revenues. The structure leaves little, if any, incentive for NYCOTB and NYRA to cooperate in critical areas such as marketing and product innovation. The counterproductive effect of this misalignment is that the racing entities are distracted from jointly addressing the need for revival of consumer interest in racing and are instead required to focus narrowly on their individual financial survival in an ongoing competition for wagering dollars from New Yorkers.” It is interesting to note that since the days of Roosevelt Raceway and Yonkers battling and showing no interest in mutually unified advertising, HTA has consistently espoused the idea for thoroughbred and harness racing, since the two in most cases offer their racing products in noncompetitive time frames, afternoon and night. It is heartening to see the city of New York, 35 years after the introduction of off-track betting, embracing and endorsing the idea of selling racing as racing, rather than a single track product. STEROIDS OUT OF THE CLOSET A discussion of anabolic steroids, and a recommendation by the Racing Medication and Testing Consortium that they be regulated in American racing as they are overseas, will be part of the presentations at the University of Arizona’s Racing Symposium that gets underway with registration today in Tucson. How regulators, who have been slow to address the issue of steroids, will respond is questionable, and although Drs. Rick Arthur and Scot Waterman of the Consortium think the time has come for action, another Consortium member, attorney Alan Foreman, thinks little will be accomplished this week other than dialogue. 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 December 5, 2006 SYMPOSIUM TIME IN TUCSON OHIO LOSES, FLORIDA WINS More than 900 toilers in the racing vineyard — harness, thoroughbred, quarter horse, greyhound —assemble this morning for the opening session of the University of Arizona’s Race Track Industry Program’s annual Racing Symposium. They meet in glossy new quarters — the Westin La Paloma, a few miles west of HTA’s offices on Sunrise Drive, and although this year’s outsourced program promises innovation, the usual roster of unchanging racing problems will be revisited during the next three days, including wagering integrity, Internet gambling, modern and future tote issues, marketing and medication. One twist is a keynote speech by a “noted futurist,” John Petersen, who will address today’s luncheon session on “high impact surprises — wild cards — and the process of surprise anticipation.” That should be helpful for all in racing. HTA will be represented by a larger than usual list of our member track directors, led by president Brock Milstein of Northfield Park, and including on the early registration list Jim Boese and Patti Key of Harrington Raceway, Tim Carey of Hawthorne and Suburban Downs, Don Codey and Lennon Register of Freehold Raceway, Chuck Keeling of Great Canadian’s four member tracks; Mark Lowe and Darron Heldt of Prairie Meadows, Jon Schuster of Indiana Downs, Phil Terry of the Delaware County Fair and its Little Brown Jug; John Van Lindt of New York City OTB, and Steve Wolf of Pompano Park, who is speaking on a panel on Marketing to Ethnic Players at Racinos. Other familiar HTA faces and friends on the program include former executive assistant Maury Wolff, SIS president Frank Fabian, American Horse Council president Jay Hickey, Ontario Harness Horse Assn. COO John Walzak, Delaware North president Ron Sultemeier, former Yonkers and Meadowlands publicity director Allen Gutterman. We will keep you informed of newsworthy developments. No, not the national championship of collegiate football, but Dr. Richard A. Sams, Ph.D, one of the leading analytical toxicologists working in the field of illegal medication in racing today. Dr. Sams, a professor and director of Ohio State University’s College of Veterinary Medicine’s Analytical Toxicology Laboratory for 28 years, and the school where he earned his Ph.D in pharmaceutics and pharmacokinetics, is taking over as director of the University of Florida College of Veterinary Medicine Racing Laboratory, which handles testing of all racehorse and greyhound samples in the state. Sams also serves as chairman of the Pharmacologist committee of the Association of Racing Commissioners. THE COST OF PA SLOTS RISES The only nickels that have dropped in Pennsylvania slots so far are those at Mohegan Sun at Pocono — a lot of them — but the state’s Gaming Control Board, concerned about regulating the new industry, yesterday approved a 29% increase in its budget, calling for $34.1 million for the fiscal year starting July 1. The board currently has a staff of 275 jobs authorized, but plans to add another 67, bringing the total to 342 by mid-2008. Philadelphia Park is scheduled to open its racino Dec. 21, Harrah’s Chester Casino and Racetrack in mid-January, and Presque Isle Downs in Erie in February. The Meadows hopes to open its racino in May, and Penn National will join the club late next year. All slots in Pennsylvania will be controlled by one central computer. NEED A TRACTOR OPERATOR? You might check with Flamboro Downs, where one drove onto the track in the path of an onrushing field of horses in Sunday night’s fifth race. All cleared the tractor, but one horse had to change direction sharply to avoid it and all money wagered on him was refunded for interference. 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 INTERESTING DAY IN TUCSON A long and interesting day in Tucson yesterday, at the Racing Symposium. Integrity was discussed, of course, but mostly in the frame of reference of wagering security and not medication. On that issue, the news was made 2,000 miles away, in Ontario, where Woodbine Entertainment announced that its leading trainer this year, Cassie Coleman, will have to race her stable from the track’s retention barn henceforth. Two horses from her stable have died in recent weeks, but results of the necropsies -- mandatory in Ontario when a horse dies at the track -- have not been announced as yet. Woodbine said the deaths did not play a role in the directive, which starts with tomorrow night’s racing program. Back in Tucson, another Canadian, Ron Nichol, director of the Canadian Pari-Mutuel Agency, said in moderating a panel called Wagering Integrity, Who Cares?, “There’s very little disagreement on the direction the industry should be taking, which is ironic since it hasn’t taken it yet.” That’s only partially true, since progress has and is being made on wagering security and uniformity. Paul Bowlinger, executive vice president of the Association of Racing Commissioners, said, “If we do not maintain integrity, then we will run head first into a wall....I believe we’ve already lost bettors because they don’t trust the system.” And he said regulators and customers both care. Another member of the panel, Frank Fabian, was listed in the Symposium program as president of the Thoroughbred Racing Protective Bureau, but not as president of Standardbred Investigative Services, and he took that cue and talked as a TRPB man only. How harness racing is regarded by the Symposium was not hard to perceive. Of 75 speakers on the program, 2 were from harness racing: Steve Wolf of Pompano Park, and John Walzak of Ontario’s OHHA, a former instructor at the RTIP. December 6, 2006 If you count Fabian as a half, that makes 2 1/2 representatives, but that half was not visible yesterday. In his copious introductions and comments on the RTIP at the start of the Symposium, Doug Reed made no mention of the close cooperation between HTA and RTIP’s students, a number of whom work on projects for credit and for publication by HTA, working with HTA’s executive assistant Brody Johnson, an RTIP graduate. Admittedly it is a two-way street, and HTA values the relationship greatly. Other than integrity, yesterday’s issues included keeping horses -- thoroughbreds, naturally -- in training, and another RTIP grad, leading trainer Todd Pletcher, discussed the economics of racing. Had there been a harness man on the panel, the other side of equine economics might have been mentioned, and germane: the vastly better odds of return on investment in harness racing, when comparing thoroughbred yearling prices against earning possibilities. The best case in point came last Saturday night at the Meadowlands, in the four fall championships for 2-yearolds of both gaits and sexes. Ogham, winner of the $437,700 Valley Victory for trotting colts, sold last year as a yearling for $34,000; Falls for You, winner of the $410,000 Goldsmith Maid for trotting fillies, was a $35,000 yearling; Isabella Blue Chip, winner of the $439,000 Three Diamonds, brought $40,000 last October; and Sutter Hanover, winner of the $450,000 Governor’s Cup, was a $20,000 yearling. Discussing how casinos could help racing market its product, Mark Midland of Harrah’s Louisiana Downs suggested racing withhold one quarter of one percent from handle for national jackpots, saying total U.S. handle could provide $750,000 a week to provide “life-changing” opportunities for patrons. 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 WOLF DOES HARNESS PROUD Harness racing got only one shot at this year’s Racing Symposium, but Steve Wolf, Pompano Park’s Senior Director of Racing Operations, made the most of it. Steve did a sterling job in what was billed as Marketing to Ethnic Players at Racinos. Steve told the audience that Hispanic and Asian populations in the U.S. will double by 2025, and that their discretionary income will double in the decade between 2000 and 2010. He discussed Pompano’s promotions targeted at specific groups, including St. Patrick’s Day, Cinco de Mayo, and Martin Luther King Jr. Day, on which Pompano features a race with all black drivers. He noted South Florida demographics, with 5.5 million residents within 30 miles of Pompano, and 1.2 million tourists within 20 miles, 70% of whom are white, 27% African-Americans, only 2% Asian, and 1% other. He expressed his belief that focus groups are expensive but important, and he feels the high cost $5,000+, is well worth the results. “Do it correctly,” he told the audience, “and it will pay for itself, providing knowledge for years to come.” He said Isle of Capri, which owns Pompano, believes not only in filling seats, but in establishing itself in its community as a leader and supporter of ethnic groups. And he urged track executives to utilize their parking lots, track aprons and grandstands for festival events. Good job by a top publicist now in an executive role. 16 DAYS, $1.7 MIL FOR SCHOOLS Gulfstream Park, off and running with slots in Florida, generated $1.7 million for Florida’s schools in the first 16 days of slot operations. That represented one-half of the $3.43 million in slots revenue, derived from $35.56 million sent through the machines. One Ohioan at the Racing Symposium opined that had the ballot propositionin Ohio read, “To produce college funds for 33,000 students,” December 7, 2006 instead of “To provide 33,000 slot machines in Ohio,” the ballot result might have been more hospitably received by voters. However, the language was provided by the secretary of state, a bitter foe of slots. DANGER SIGNS IN INDIANA It took two years to get it, but the Indiana General Assembly now has an efficiency report it ordered in 2004, and its recommendations should stir concern in Indiana horse racing circles. The report includes, among its more than 150 recommendations, one to review the riverboat subsidy that supports both harness racing and thoroughbred racing in the state. That subsidy amounted to $27 million last year, with 40%, or $10.8 million, going to purses, 40% to tracks, and 20%, or $5.4 million, to the state breeding fund. Legislators have considered cutting those monies -which HTA director Rick Moore of Hoosier Park calls “economic drivers,” not a subsidy -- but have bowed to industry and public protests. Moore says “the state has really received a return on its investment. There are racehorse breeding operations and training operations in all 92 counties in the state of Indiana. If that inducement goes away, that economic development is in a very precarious position.” We hope Indiana legislators will consider that economic fact of life, and the agricultural and business activity it simulates, rather than listening to riverboat casino interests in the state. If it wants to do away with the subsidy or economic drivers, let it replace it with slots at the state’s two dual breed tracks. JACKPOTS IN SPOT AGAIN Swedish, Australian and French racing officials told attendees at the Racing Symposium yesterday of successes with jackpot bets. Sweden’s V75, Australia’s First Four, and France’s Quinte are the biggest pool generators in those countries. 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 HTA ANNOUNCES CHAMPIONS Racing secretaries of Harness Tracks of America’s 43 members have selected their season’s champions of 2006. Owners of the 12 divisional champions will receive HTA’s prized bronze Nova awards at the Westin Diplomat Country Club in Hollywood, Florida, Sunday night, March 11, 2007. The winners are: December 8, 2006 2-year-old pacing filly: Luck of Michelle, winner of 9 races and $615,091 in 2006, owned by Karen E. Carroll, Shedden, Ontario, and Natalie R. Pentland, Dorchester, Ontario. 2-year-old pacing colt: Artzina, winner of 7 races and $486,229 this year, owed by Kalman Saul Liebowitz, New York City, and Marc Rubach, West New York, NJ. 2-year-old trotting filly: Pampered Princess, winner of 10 of 12 races and $626,244 in 2006, owned by Bob Anderson of St. Thomas, Ontario, and his son David, of Hillsburgh, Ontario. 3-year-old pacing filly: Darlin’s Delight, winner of 10 races and $940,352 this year, owned by Joseph S. Parisi’s White Birch Farm, Allentown, NJ. 2-year-old trotting colt: Donato Hanover, winner of 8 of 9 races and $662,587 this year, owned by David B. Scharf, New York City; Paul Bornogna’s Golden Touch Stable, Fair Lawn, NJ: and Steven Arnold, Purchase, NY. 3-year-old pacing colt: Total Truth, winner of 8 races and $1,494,222 in 2006, owned by J. Patrick and Marianne P. Callahan’s Only Money Inc., Hartly, Delaware, and George and Brenda Teague’s Teague Inc., Houston, Delaware. 3-year-old trotting filly: Passionate Glide, winner of 13 of 15 races and $1,087,900 this year, owned by George Segal’s Brittany Farms, Versailles, KY. Older male pacer: Lis Mara, winner of 10 races and $967,485 this year, owned by Michael Gulotta, James Hess, John Jarka and Otis Ray’s MJG Stable of Annandale, NJ, and Louis A. Willinger, Louisville, KY. 3-year-old trotting colt: Glidemaster, winner of 8 races and $1,918,701 this year, owned by Robert B. Burgess, Campbellville, Ontario; Karin Olsson Burgess, Milton, Ontario; Marsha A. Cohen, Asbury, NJ; and Brittany Farms, Versailles, KY. Older male trotter: Sand Vic, winner of 10 of 18 races and $1,130,380 in 2006, owned by August Fredrik Miedel, Pompano Beach, FL. Trotting mare: Peaceful Way, winner of 5 races and $709,763 this year, owned by Marvin Katz, Al Libfeld and Sam Goldband of Toronto, Ontario; David S. Tingley, Guelph, Ontario; Angie M. Stiller, Arva, Ontario; and Barbara and Joe Myers and Linda Ann Worrell’s Goin My Way Stable, Holland, PA. Pacing mare: Glowing Report, winner of 9 races and $569,268 in 2006, owned by Marvin J. Rounick, Narberth, PA. HTA ONLINE ART GALLERY Harness Tracks of America has opened an online art gallery, offering harness racing paintings, bronzes, woodcarvings, and rare-out-of print books on horses and horse racing. Photographs and descriptions of all works can be found on the HTA Web site, www.harnesstracks.com, by clicking on the HTA Art Gallery. Net proceeds of all sales go to the HTA College Scholarship Fund, which has helped send 123 students to college through grants totaling $612,950. 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 December 11, 2006 TVG GETS BIG M EXCLUSIVE GOOD NEWS FROM THE GOV The New Jersey Sports and Exposition Authority has cast its television lot with Television Games Network, granting TVG exclusive distribution and account wagering rights to both the Meadowlands and Monmouth Park. TVG obtained the rights after competitive bidding, and it sends the number of TVG exclusive contracts with U.S. tracks to 26, with agreements with venues in the United Kingdom, Ireland and Japan adding an additional 55 tracks in those countries. David Nathanson, general manager of TVG, said, the network was pleased that the NJSEA chose TVG “from a field of strong bidders to showcase their world class racing products.” It marks the first time Meadowlands and Monmouth Park racing will be shown on TVG, which serves nearly 20 million homes in the U.S. and will reach 11 million overseas shortly. The governor of Indiana, Mitch Daniels, said Friday that reviewing the subsidy to horse racing in the state “is just not a priority of mine at this time.” The suggestion was one of some 150 submitted to the General Assembly in a government efficiency report ordered by the legislature two years ago. As reported here Friday, challenging the subsidy, which Rick Moore of Hoosier Park prefers to call “an economic driver” because of its widespread impact in all 92 counties of the state, generated concern among horsemen and management of Indiana’s two dual breed tracks, Hoosier Park and Indiana Downs, both members of HTA. Michael Brown, speaking for the Indiana Horse Racing and Breeding Coalition, said that an American Horse Council study showed that horse racing generated $294 million in annual economic impact. That translates to an $11 return on every $1 the state provided for horse racing, a number that Brown called “a pretty good investment” on the $27 million paid to tracks. WORST KEPT SECRET IS OUT No, not Troy Smith winning the Heisman, but Chris McErlean leaving the Meadowlands. Both the Big M and Penn National confirmed it last week, and all of us at HTA wish Chris new horizons at Penn National. It all started here, and we’re mighty proud about it. JEFF GURAL WINS PROXIMITY Jeff Gural, Harness Tracks of America’s Messenger 2007 award winner, has added another major industry honor to his laurels. Gural is the winner of the U.S. Harness Writers’ Proximity award for achievement. In other USHWA awards, George Segal’s Brittany Farms’ sensational year of successes earned it the Owner of the Year award; Mickey Burke was named trainer of the year; John Campbell will be honored as driver of the year; Ontario’s Jody Jamieson gets the Rising Star award; and Jason Settlemoir of Tioga Downs and Vernon Downs has been named winner of USHWA’s Breakthrough award. THESE GUYS RUNNING WILD Driving stars are putting up some remarkable numbers in the sport. Rick Zeron won five races at Woodbine Saturday night, Wally Hennsessey won four at Pompano, Ron Pierce won five at the Meadowlands, and Tim Tetrick, out of control at Dover Downs, won eight races on the Saturday night card. Tetrick also won the featured pace at Harrash’s Chester. If these super performances keep up, someone will start calling for tests on the drivers as well as the horses. BAYSTATE SLOTS STILL IN PLAY Two new slots bills were introduced in the Massachusetts House today, their sponsor, Rep. David Flynn, saying, “We must compete with Connecticut and Rhode Island.” 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 $16 BILLION BID FOR HARRAH’S The bidding for Harrah’s Entertainment has widened, but there is no clear sign that the huge gaming giant will be sold. Penn National has signified it would like to buy Harrah’s, and so has the hedge fund D. E. Shaw. Now the Wall Street Journal reports that Apollo Management and Texas Pacific Group intend to raise their bid to $87 a share, which would put valuation of Harrah’s around $16 billion. Ain’t slots wonderful? In West Virginia, where the tracks have slots and want more gaming, the governor seems ready to make a deal. Gov. Joe Manchin says he will support allowing local county option elections on table games at the state’s four tracks as long as part of the money is earmarked for senior programs. His position is a clear compromise, since the track’s owners know they can win four county elections much easier than they can win a statewide election, which has been the route of action in the past. LIFE IN THE LAND OF PLENTY Ever since John Steinbeck’s Grapes of Wrath, those looking for better times have headed west to California. Horsemen have too, knowing penalties there have been few and far between, and mild when imposed. Now, in the glare of national publicity, with the Associated Press and USA Today leveling their big guns on west coast laxity, things may change. The Orange County Register reported that only 14% of all California drug violations since 2000 resulted in disqualification, and found that California horses tested positive more than four times as often as horses in New York, and seven times as often as horses in New Jersey, and that “tens of thousands of urine and blood samples collected in California have never been tested. “Racing commission chairman Richard December 12, 2006 Shapiro was quoted as saying, “I’m as frustrated as everybody else. I do believe the punitive measures that are enacted need to be higher.” The board will consider tougher sanctions next month. IT’S XMAS, TIME FOR GIFTS And if others don’t give them, give them to yourself. In Las Vegas, where money is counted differently than in the rest of the country, the big top executives at MGM Mirage decided to get some holiday dough to buy their Christmas gifts. To make sure they had enough, they exercised stock options and then sold them. Terry Lanni, chairman and CEO, exercised 440,000 options at $12.74 each and sold them from $44.57 to $45.65, a $ 14,294,400 return; Jim Murren, president and CFO, exercised 100,000 options at $6.66 a share and sold them for $45, a $3,834,000 pickup; Gary Jacobs, executive vice president, excercised 100,000 options at $16.66 a share and sold them for $45, good for $2,734,000. Lesser lights cashed in from vice president Alan Feldman’s $653,004 down to vice president Putnam Mathur’s puny $43,040. No joy or toys in the Mathur household this Christmas. DEATH TAKES NO HOLIDAY Sadness at holiday time in harness racing, as in life everywhere. Gone are Dorothy Rose, the Indiana dynamo known as the Hoosier Historian, who spent a lifetime promoting the immortal pacer Single G. A columnist and avid harness racing fan and breeder, she died at 78. Also gone is Quinton Patterson, the first employee Delvin Miller hired when he opened The Meadows in 1962. Quint was part of the track, the hardest worker in the sport, and loved by all who knew him. In Ontario, former HTA director and president of the Canadian Trotting Assn. Ed Bradley, a member of the Canadian Horse Racing Hall of Fame, has died. 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 SONACC ACCUSED IN QUEBEC In a savage attack not in the spirit of the holiday season, the auditor general of Quebec fired a blast at SONACC, the former administrative body of Quebec racing, saying he had “never encountered this degree of mismanagement in any Crown corporation. The report, issued yesterday, said SONACC had spent more than a million dollars on employee meals and issued millions of dollars of improper salary raises, bonuses and car expenses during a period that the province of Quebec was paying emergency funds to help SONACC weather a tough financial period. It said the provincial government had invested some $260 million in SONACC before the agency was privatized last year, when Paul Massicotte’s Attractions Hippiques took over as owner of Quebec’s four racetracks. The auditor general, Renaud Lachance, said, “There are pages and pages about some questionable and unacceptable practices.” In addition to free meals for employees and managers of Hippodrome de Montreal worth $1.1 million before the Massicotte takeover, Lachance said 14 SONACC managers and executives claimed $740,000 in expenses, half of which Lachance claims were unjustifiable; $20,000 in annual car allowances for five executives; and an $82,500 signing bonus for one executive later hired by SONACC as a consultant and paid twice, for a total of $300,000. Lachance is asking the government and the authorities to be repaid some amounts that were improperly paid to SONACC directors and officers. He said he had no plans to turn his report over to police, but expects authorities to assist the province of Quebec in recouping the money. The alleged irregularities occurred while Parti Quebecois, now out of power, was in control of the provincial government, but a financial critic noted the auditor’s report did not allude to any political interference in SONACC’s spending, and said police and government should do their jobs. December 13, 2006 CENTAUR NOW OWNS HOOSIER Centaur today purchased Churchill Downs’ 62% share in Hoosier Park, adding it to its own 38% to give it sole ownership of the Indiana dual breed track, a member of HTA, and its three Indiana off-track betting parlors in Indianapolis, Merrillville and Fort Wayne. Centaur will assume management responsibilities for Hoosier Park and its OTBs, while the Churchill Downs Simulcast Network will continue to distribute Hoosier’s simulcast signal. The purchase agreement is subject to approval by the Indiana Racing Commission, which meets January 7, and by the city of Anderson Department of Parks and Recreation, and is expected to close during the first quarter of 2007. Centaur president (and former HTA president) Jeff Smith said his company was “excited to take full ownership of Hoosier Park,” and looked forward to working with Hoosier Park president and HTA director Rick Moore and his staff. MINNESOTA BACK ON TRACK Southwest Casino and Hotel Corporation, which has been held up in building its planned harness track in Minnesota by an Army Corps of Engineers review of Indian artifacts, now has received Army clearance. Thomas Fox, president and CFO of Southwest, says the company plans to break ground January 18, and could open the new track as early as February, 2008. Southwest is partnering with Mountaineer Racetrack and Gaming Resort of West Virginia, and will ask for legislative approval to simulcast thoroughbred racing as well as conduct live harness racing. The executive director of the Minnesota Racing Commission, Dick Krueger, said he thought that a reasonable request, since it amounted to $56 million for Canterbury Park last year, but noted that the new track will be obligated to race 50 live harness dates first, regardless of legislative approval. 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 ORC: 10 YEARS, $100,000 FINE The Ontario Racing Commission, still leading the way in North America on meaningful penalties, has suspended owner-trainer-driver Brian Scott for 10 years for use, possession and acquisition of drugs, and fined him $100,000 for distribution of drugs, the penalties to be carried out consecutively, putting Mr. Scott out of action in racing for 20 years. The commission also has ordered the immediate suspension of thoroughbred owner-trainer Kenneth Parsley for possession and acquisition of drugs. Parlsey has filed a notice of appeal. The commission executive director, John L. Blakney, also announced that with the support of the Equine Medication Control Advisory Group, the ORC is committed to a program of out-of-competition testing for a range of non-therapeutic drugs. These tests may be prompted by reasonable cause or any abnormal or unexplainable change in a horse’s performance. Blakney said new advancements in testing technology have made the process efficient and accurate. The Ontario Commission, with its latest actions in both harness and thoroughbred racing, has made clear that the acquisition, possession and administration of illegal and non-therapeutic drugs will not be tolerated in Ontario’s horse racing industry. COAST OKS COMMINGLING Santa Anita and Golden Gate will allow Canadian bettors to commingle wagers into their pool, starting between Christmas and New Years. Canadians will bet directly into Santa Anita’s pools starting Thursday, Dec. 28, the second day of Santa Anita’s winter meeting, and common pools with Golden Gate will start the same day. A $2 Canadian bet on the coast Pick 6 pools will be accepted, as will the Place Pick All in some Canadian jurisdictions. That bet awards those selecting the most first or second place finishers in all races on a card. December 14, 2006 BARRON BACKS A WINNER Andrew Cohen is chief legal analyst for CBS News. He also owns harness horses, and he helped the sport immensely this week with an article that Barron’s Online titled “Picking Up the Pace.” In it, Cohen told of the lower cost and substantial earning power of trotters and pacers in comparison with runners, saying the standardbreds are “cheaper to purchase, easier to train and keep, race more frequently and compete for purses that are fairly rich and getting richer.” Cohen’s father owned harness horses in Montreal back in the 1970s, and he took the plunge himself last year. He bought his first horse in February, and now is part owner of three. He wrote that although he is still in the red, he is having the time of his life. “What other investment,” he asks, “allows your kid to spend Sunday morning delightedly riding behind a horse or prompts friends to ask if they can join you to watch a race?” He quotes statistics on average purchase price and earnings, and then says, “But the whole point of investing in a harness horse is to put this intriguing math aside and appreciate that this is also a lifestyle choice: an opportunity to experience raw anticipation and excitement each week that is nearly impossible to describe.” But he describes it when he concludes his article, “Take it from me, there is nothing like passing through a crowd of race fans as you make your way into the winners’ circle. It’s a feeling of satisfaction and a pure and unrefined joy. That’s what makes the investment a delightful hybrid of a reasonable financial wager and emotional fulfillment. It’s not for everyone. But these days, it is for anyone.” IHHA LOOKS FOR EXECUTIVE The Illinois Harness Horsemen’s Assn. is seeking an executive director. Send resumes to Sam Lilly, Search Chairman, IHHA, 15 Spinning Wheel Rd, Suite 432, Hinsdale, IL 60521, before Jan. 12. 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 DRIVER INJURED AT N’LANDS Driver Warren Grant is in stable condition and awaiting surgery following an accident in the final race at Northlands Park on Wednesday. The 53year-old Grant was driving Red Star Alvin when the horse collided with Im All Shook Up. Grant was thrown from his sulky and hit the rail, according to reports. Paramedics at the track reached the injured driver quickly, stabilized him and transported him to the Royal Alexandria hospital. Grant suffered a broken jaw, broken sternum and four broken ribs. Today’s surgery is to repair the broken jaw. The driver of Im All Shook Up was unhurt in the accident, but the horse had to be destroyed. Grant’s horse was unharmed in the accident. December 15, 2006 Apollo Management Group and Texas Pacific Group to take the company private for more than $15.5 billion. Another option being considered was a plan to recapitalize the company by borrowing money to give the shareholders a large dividend or to repurchase shares to boost shareholder value, a source close to the matter told the Associated Press. In the meantime, published reports indicate that Penn National Gaming has made a much-anticipated cash bid for Harrah’s. Sources told the Las Vegas Review Journal that Penn National was offering $88.50 per share for Harrah’s, putting that deal’s value at $16.5 billion. Shares of Harrah’s closed Thursday at $79.10 on the New York Stock Exchange. IN PA, THE MONEY ROLLS IN SENTENCES IN DALY MURDER Three of the men who were guilty of the murder of Matthew Daly, son of harness owner Matthew Daly Sr., were sentenced to life in prison this week. The three Hamilton, Ontario, men were convicted of second degree murder. A fourth man was found guilty of manslaughter in the case. Daly was beaten after leaving a party with his girlfriend in May of 2001 and died 12 hours after the attack. The senior Daly is best known as one of the owners, along with his brothers Pat and Dan, of 1997 Triple Crown winner Western Dreamer. Pennsylvania’s first racino, HTA member Mohegan Sun at Pocono Downs, continues to post stunning numbers, attracting total slot machine revenue of $85 million from its opening on November 14 until the end of November. Of that amount, players won back a total of $76.3 million, or about 90 cents on every dollar. The share to breeders and owners, 12 percent of the gross terminal revenue -- calculated as the difference between the amount wagered and the amount paid to winners - totaled more that half a million dollars for the abbreviated month. Pocono officials called the numbers “an excellent start.” HARRAH’S MUM BUT PENN BIDS A special board committee of casino giant Harrah’s Entertainment, owner of HTA member Chester Downs, ended a meeting on Thursday without announcing a decision on whether it will back a multibillion dollar buyout offer. The special committee, comprised of all 11 members of the board except chairman and chief executive Gary Loveman, had been meeting in New York since Wednesday to weigh any offers it received by the end of Tuesday. Among the offers was one, reported on earlier, from private equity firms CALLING HTA PUBLICISTS!!! HTA is issuing another call to all member organization publicists, marketing personnel and promotions or group events staffs. Please put HTA on your list of recipients for information such as press releases, newsletters and marketing and promotions materials. Add HTA to your list and distribute materials to [email protected], or to our fax at 520-529-3235, or by mail to HTA at 4640 East Sunrise Drive, Suite 200, Tucson, AZ 85718. 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 TURBULENCE EVERYWHERE In New York state, where three groups are battling viciously for control of the New York Racing Association, the present franchise holder filed a 155-count suit against the state of New York and several government officials. NYRA renewed its long-held contention that it, and not New York state, owns the three racetracks it operates, but it went much farther. It accused the Pataki administration, now ending its rule in New York, and Gov. George Pataki himself, of systematically forcing NYRA into bankruptcy. The suit charges the Pataki regime of withholding final approval of the Aqueduct VLT project with MGM “at least in part to make the franchise...more attractive to prospective for-profit bidders.” It claimed Pataki himself and a senior member of his staff had confirmed this by telling the chairman of NYRA’s board of trustees that they would not permit final approval of slots at Aqueduct “because that would interfere with the request-for-proposal process.” Steven Crist, writing in Daily Racing Form, said, “If true, NYRA’s allegations are a far more serious case of corruption and violation of public trust than anything the beleaguered racing association has itself been accused of amid five years of federal and state investigations. If the slots had begun spinning at Aqueduct two years ago as initially envisioned, state coffers would be bulging, New York’s racing would be by far the nation’s richest, and the NYRA tracks would be showcases with badly needed safety improvements and customer amenities.” In New Jersey, Howard M. Schoor, owner of Showplace Farm, was indicted on federal charges of bribery, involving payments to a former mayor and Sewerage Authority chairman The charges apparently resulted from an FBI sting called Operation Big Red that resulted with the arrest of 11 county officials last year. December 18, 2006 In Pennsylvania, the Pittsburgh Tribune-Review reported that the Pennsylvania Gaming Control Board, with some of the highest salaries in the state, had spent $25 million preparing for slots during the last two and one-half years, including leasing new cars for board members. Five of the board’s seven members received new cars, with Pennsylvania paying up to $650 a month on the leases, and four members spent a total of more than $12,000 traveling to the U.S. and Canadian west. The paper singled out one member of the board, Jeffrey Coy, whose $47,315 Cadillac is twothirds paid for by taxpayers. It reported that Coy, who lives in Shippensburg, less than 45 miles from Harrisburg, spent at least 27 nights at the Harrisburg Hilton at a total cost of $3,633.37. The Control Board also paid for members’ trips to Las Vegas, Phoenix and Vancouver, British Columbia. A board spokesman said the trips were to gather information on regulations of Pennsylvania slots. The Control Board’s executive director, Anne Neeb, earns $180,011, more than Gov. Ed Rendell, and the board’s investigator, David Kwait, makes $144,216 a year, more than Pennsylvania’s attorney general, Tom Corbett. Board members are paid $145,000 a year, more than public gambling regulators in New York, New Jersey, or Nevada, the newspaper reported. A PALACE REVOLT AT BATAVIA? The board of directors of New York’s Western Regional Off-Track Betting Corporation will meet Friday morning to discuss the future of the OTB, including its ownership of Batavia Downs. The board is split on management and direction issues, and Batavia Downs could be put in play, with both Nevada Gold, controlling owners of Vernon Downs and Tioga Downs, and Delaware North reported to be interested in the HTA track, where debt has been reduced sharply, from $4 million two years ago to $100,000 in 2006. 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 HARRAH’S SAID TO OK OFFER The Associated Press has reported that Harrah’s Entertainment’s board has approved a $16.7 billion offer from two private equity groups, and that an announcement is due momentarily. Neither Harrah’s, nor Apollo Management Group and Texas Pacific Group, the reported winners in bidding for Harrah’s, had any comment. The deal would value Harrah’s at $90 a share, a 36% premium over the company’s share price on Sept. 29, the last trading day before the proposed buyout, when the two groups offered $81 a share. Apollo Management and Texas Pacific also would assume $10.7 billion in debt. Penn National Gaming, which reportedly had offered $87 a share, mostly in cash, apparently was eliminated from the bidding. Harrah’s shares rose yesterday 3.4%, or $2.68, to close at $81.18 on the New York Stock Exchange. Harrah’s Chester casino, meanwhile, ended its first 45-day harness racing meeting with an average daily purse distribution, without slots, of $70,000 a night. That figure is expected to rise to $160,000 when harness racing returns to Chester for 95 programs from July 9 through December 20, 2007, with slots fully in place. Cat Manzi, this year’s leading driver, closed out the session by winning six races on the final card. Saratoga Gaming and Raceway brought its live meeting to a close Saturday night. Saratoga resumes live racing February 2. Philadelphia Park became Pennsylvania’s second racino today, opening with 2,200 slots in place, a bar, and a buffet. In Massachusetts, a state senator friendly to Raynham-Taunton dog track blocked legislation that would extend the state’s simulcast law beyond Dec. 31. December 19, 2006 That leaves tracks and their employees in limbo for the second year in a row. Robert Creedon, the senator who blocked extension of the simulcasting agreement, said he was doing so to push the tracks to compromise on the simulcasting issue to allow dog tracks to take signals from around the country. Raynham-Taunton is in Creedon’s district. Senator Scott Brown, whose district includes HTA member Plainridge Racecourse, said, “If this (extension) isn’t done by the end of the year, it will put a lot of people out of work.” Massachusetts’ four tracks were closed briefly last year by the same dispute, and lawmakers, who could not reach a compromise themselves, are pessimistic about concessions this time around. GET PAID FOR LOSING The Ontario Harness Horse Association has announced terms of proposed agreements with little Dresden and Woodstock Raceways, with a new wrinkle. The OHHA says the agreement will provide $100 to every owner who starts a horse and finishes out of the purse money, the subsidy to be paid from the purse pool “to help offset the increasing costs of maintaining racehorses.” MCERLEAN ON HTA’S “WORLD” Chris McErlean, who joined HTA as executive assistant in 1989 after graduating with a degree in economics and finance from Scranton University, went on to become vice president of racing operations at the Meadowlands, and now is leaving the Big M to take the same position with Penn National Racing, is the guest on this week’s “World in Harness.” You can find the interview on the home page of our Web site, www.harnesstracks.com, and enjoy McErlean’s recounting of his meteoric career and his views on racing, not only in New Jersey or Pennsylvania but nationally. HTA wishes Chris all the best in his new venture. 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 December 20, 2006 FULL UP IN PHILADELPHIA SOBKOWIAK LEAVING POCONO Philadelphia became the nation’s largest city with slot machines today, when the Pennsylvania Racing Control Board awarded gaming licenses to Foxwoods Casino Philadelphia and Sugarhouse Casino to build along the Delaware river waterfront in Benjamin Franklin’s adopted hometown. In Pittsburgh, the winner was Detroitbased casino developer Don Barden, and Mohegan Sun at Pocono got competition for its slots operation when the board also awarded a license to Louis DeNaples for a Pocono mountain resort and to Las Vegas Sands Corp. to build a casino in Bethlehem. In Philadelphia, Foxwoods of Connecticut will partner with ComcastSpectacolor chairman Ed Snider, 76ers president Billy King, and Quincy Jones, among others to build a casino, 2,000-seat entertainment complex and restaurants and shops in a $560 million complex on 30 acres in south Philadelphia. Sugarhouse Casino is a $550 million project to be built on 22.6 acres of the city’s central waterfront, which will be anchored on both north and south ends by the projects. Sugarhouse is a consortium including widely known auto dealer Robert Potamkin, Chicago developer Neil Bluhm, attorney Richard Sprague, developer Dan Keating, and former state Supreme Court justice William Lamb. The commission, continuing its secretive ways, gave no explanation of the awards, saying a written rationale will be issued later. Losers in the quest were New York’s Donald Trump, campaigning as Keystone Redevelopment; Las Vegas-based Pinnacle Entertainment; and Riverwalk Casino LP, consisting of Planet Hollywood CEO Robert Earl, New York hedge fund manager Douglas Teitelbaum, and several minority investors. In Pittsburgh, Isle of Capri made a strong bid for the franchise, linking with the Pittsburgh Penguins, whose franchise had expected to be sold this week, before the deal fell apart. Conrad Sobkowiak, Mohegan Sun at Pocono Downs’ vice president of racing operations and longtime HTA director, is leaving the Pennsylvania track as of the end of the year. Conrad said he felt that with Pocono solidly on its way to racing and gaming success under Mohegan Tribal Gaming Authority leadership, he felt it was an appropriate time to move on and pursue new opportunities. A University of Arizona Race Track Industry Program graduate, Conrad is a veteran of 27 years in pari-mutuel racing, having worked at NYRA, Delaware Park, Atlantic City, Tampa Bay Downs and the TRA before switching to harness racing. FLAMBORO GETS 225 DAYS The difference of opinion between Great Canadian Gaming, operator of Flamboro Downs, and the Ontario Harness Horse Association over 2007 dates has been resolved by the Ontario racing commission. Great Canadian originally wanted to reduce live race dates from 258 to 208. The Ontario Harness Horse Association wanted Flamboro to be required to race 258 days, as this year. Flamboro then requested 220 days. Faced with those conflicts, the ORC, “after carefully considering all matters provided to it,” resolved the dispute by awarding Flamboro 225 days of live racing and 364 of simulcasting, as recommended by staff, noting that even with the reduction Flamboro Downs will race more days of harness racing than any other track in Ontario. SOLVE THE MIDDLE EAST MESS With the announcement that Leon Black, founder of the Apollo Group, has completed three days of deals totaling $37 billion in acquiring Harrah’s Entertainment, Coldwell Banker, Century 21 and Sotheby’s Realty, a solution to the Middle East crisis. Have Black buy Iraq and run it. Next case, please. 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 December 21, 2006 JUST IN TIME FOR CHRISTMAS THERE IS SOME GOOD NEWS harnessracing.com, the Web site of Horseman and Fair World magazine, reports today that Mickey Burke, leading race-winning trainer in harness racing this year and second leading in money won by his trainees with $5.6 million in purse earnings, has been hit with a positive test for Lidocaine, a class 2 drug. Burke has been notified that the pacer Doggone Incredible returned the positive after a second-place finish at the Meadowlands on Dec. 9. He has asked for a test of the split sample. Class 2 positives carry suspensions and fines, and if Burke is set down it would mean that the leading standardbred and thoroughbred trainers in North America this year both are sidelined for drug positives. Thoroughbred trainer Todd Pletcher recently lost an appeal in New York of a 45-day illegal medication suspension and $3,000 fine for mepivicaine found in one of his runners at Saratoga two years ago. Slots play at Mohegan Sun at Pocono Downs, Pennsylvania’s first racino operation, already is having a dramatic impact on purses at the track. Horsemen will see a 60% increase in purses when the 2007 meeting opens March 31. Purses will jump from $60,000 a day to approximately $100,000 a day, which will mark the fourth purse increase in purses since Mohegan Sun bought the track. Pocono director of racing Saul Needle said two of the track’s features that honor famed figures in the sport -- the Max C. Hempt Memorial Pace for 3-year-old colts and the James M. Lynch Memorial Pace for 3-year-old fillies will get major boosts. The Hempt will be raced for an estimated purse of $300,000, and the Lynch for $250,000, representing a 70% increase for the colts and 75% raise for the filly event. The W. N. Reynolds will go from $100,000 to $200,000. Open paces will go from $15,000 to $20,000. When the season begins in March, Pocono will operate Monday, Tuesday, Friday and Saturday afternoons, with a new post time of 2 p.m. Burke recently was named Trainer of the Year by members of the U.S. Harness Writers Association. harnessracing.com says there is no word whether he will retain the title. There is a precedent. Trainer Joe Anderson was named Trainer of the Year a few years back, but was stripped of the title after a positive test. In other glad holiday tidings, Scott Lake, the nation’s leading thoroughbred trainer in number of wins, has dropped an appeal of a 30-day suspension for a clenbuterol positive on one of his horses; seven jockeys have been kicked out of Tampa Bay Downs, and two banned at Calder Race Course, possibly in connection with a bad race at Great Lakes Downs in Michigan in August; and a greyhound hauler has been handed a life suspension and fined $140,000 for hauling 140 missing greyhounds from Tucson Greyhound Park and being unable to tell authorities where they are or what happened to them. Guess. SIX YEARS AND COUNTING It is now six years since off-track betting was legalized in New Jersey, and you don’t have much longer to wait. The first OTB is scheduled to open in mid-February, at Vineland in southern New Jersey, operated by Greenwood Racing. A second, in Toms River in central New Jersey, and a third, in Woodridge Township, are due for completion in mid- and late-2007. The Woodridge facility will be operated by the New Jersey Sports and Exposition Authority, parent of the Meadowlands, just off busy Route 1. CHECK OUT DEC. HTA REPORT HTA’s December report, An Update of Racino Legislation in the United States 2004-2006, is now on our proprietary Web site. Use your password for access. 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 WE’RE NOT KIDDING, FOLKS It’s Christmas, with New Year’s Day looming just ahead, and the HTA/TRA annual meeting just two months away when the calendar turns. Hotel reservations for the Westin Diplomat in Hollywood, Florida, are to be made through Cindy in the HTA office, NOT the hotel, and you have the month of January to do that, with cutoff in early February. MORE IMPORTANT, air travel during our dates, March 9-13, is tight, so we strongly suggest you not wait to make your air reservations. YOU SHOULD PLAN ON ARRIVING AT THE DIPLOMAT FRIDAY, MARCH 9, (THURSDAY, MARCH 8 FOR EXECUTIVE AND FINANCE COMMITTEE MEMBERS) OR BEFORE, AND LEAVE TUESDAY, MARCH 13, OR WHENEVER YOU CHOOSE. We will be providing rough agendas of meeting and social schedules next week, with detailed ones to follow with specific topics and speakers. We are concerned about air travel only because it is spring break time for many colleges in the U.S. and for Canada, and we don’t want you to have to walk or drive unless you wish to do so. HARRAH’S:BUSINESS AS USUAL The $17.1 billion is not in the bank just yet, nor the assumption of $10.7 billion in debt, but Harrah’s expects both Apollo Management and Texas Pacific Group will take care of those details. Meanwhile, unless Harrah’s finds a better offer in the next three weeks, CEO and president Gary Loveman says customers should see no real changes in Harrah’s facilities. “It is a change of ownership,” Loveman says, “but it’s really not a change in direction at all. I don’t think our customers or the vast majority of our employees will see any difference in what we’ve been working on to ensure great service for our guests and great careers and great experiences for our employees.” The sale is expected to take a year to close. December 22, 2006 MORE AND MORE AND MORE The investigation of an apparently bad race by HTA member Sacramento Harness, racing at Cal-Expo, and the subsequent seven-month investigation that followed, has led to what deputy state attorney general Maggy Krell calls “a groundbreaking case.” It resulted in the conviction on a felony bribery charge of Raymond Burt, a Sacramento driver who has pleaded guilty to accepting a bribe not to use his best effort. He also faces charges of conspiracy to commit grand theft as well as aiding and abetting grand theft. Krell says, “This is the first case in California where we’ve actually prosecuted.” The investigation continues, and more arrests could come within a month, Krell says. “You can’t have your own conspiracy,” she says. “Someone else must be involved.” Three other drivers were implicated in a trifecta in a race last May 5, the brothers Jason and Danny Maier and veteran trainer-driver Todd Ratchford. The three were suspended by Sacramento Harness a week after the race. Danny Meier did not drive in the race in question, and now is reportedly driving at Monticello Raceway in New York. Sacramento Harness general manager and HTA director Chris Schick said, “We thought there were suspicious actions during the race, and we took all the information we developed to the racing board.” In the east, a 10th jockey has been denied access following a TRPB investigation, this one at Philadelphia Park, and the Ontario Racing Commission is proposing a third $100,000 fine and 10-year suspension in the last two weeks, this one against owner-trainer Dennis Moffat. In New Jersey, we misidentified the location of an imminent OTB. It is in thriving Woodbridge, not little Woodridge, and on that note we wish you a very Merry Xmas. See you Tuesday. 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 December 26, 2006 SLOTS FOR BIG M IN 2007? SOME HOPE FOR ROCK, TOO? Nothing has happened yet, but a story out of Trenton should bring a bit of holiday cheer to the Meadowlands, and its parent the New Jersey Sports and Exposition Authority. Gov. Jon S. Corzine, an opponent of slots at the Meadowlands during his race for governor, now says he is no longer firm in that opposition. “I’m still against them,” he said in an interview with Pete McAleer of pressofatlanticcity.com, “but I’m a little less adamant about it. I’m not wavering. I want to see the facts. If we see day traffic erode sharply in Atlantic City, should we just do nothing?” Northern New Jersey legislators, led by former governor and now senate president Richard J. Codey, continue to ask Corzine to approve VLTs. The governor acknowledged that “It’s attractive in concept as a way to raise revenues for the state without raising taxes,” and he added, “I think we’re surrounded with VLTs everywhere else, so we’re going to take the hit without seeing any of the potential benefits. The market’s going to show, one of these days, whether this is something that needs responding to.” Atlantic City casinos agreed in 2003 to support New Jersey horse racing with $86 million over four years in return for a promise that track slots would not be approved. That agreement expires next October. Corzine said, “I would like to see that support continue,, but that’s tied up in this VLT issue too.” The Atlantic City casinos contend that slots at the Meadowlands would hurt, not help, Atlantic City compete against emerging slots jurisdictions, but the casinos conveniently ignore the impact of racing on the economy in New Jersey. Corzine does not. He says New Jersey should not base its decision on just the casino industry’s bottom line, but rather “on what it does to our competitive position with regard to gaming broadly as a state and the overall economic opportunities.” HTA member Rockingham Park, like the Meadowlands, needs slots too, and its chances seem brighter since the November election. The political landscape in New Hampshire has changed, with Democrats now in control of the legislature, and the new House speaker, Tene N. Norelli, says a study committee already is examining various revenue options, including some gambling ideas. An opponent of the idea, Jim Rubens, executive committee chairman of the Granite State Coalition Against Expanded Gambling, acknowledges that the odds have changed. “This is the toughest year yet,” he says. “The pincers have grown tighter.” His allies in opposition to slots include the state’s Lodging and Restaurant Association, the New Hampshire Chiefs of Police, and the New Hampshire Council of Churches. Rockingham and Seabrook Greyhound Park both currently host Texas Hold’em poker tournaments, which they can do under state law if the games are organized to benefit a charitable organization. Rockingham’s have included the Boys and Girls Club and Kiwanis. The law requires that at least 35% of gross revenues go to charity, less any prizes paid out. The tracks’ poker operations typically return up to 75% of entry fees to the players. The executive director of the New Hampshire PariMutuel Commission, Paul Kelley, says Texas Hold’em in New Hampshire is a $100 million a year industry. Pamela Lynch, a spokeswoman for governor John Lynch, a Democrat, says the governor would have to see evidence that expanded gaming would not hurt New Hampshire’s quality of life or its economy before he would support slots legislation. Rep. Anthony DiFruscia, a Republican who is authoring a bill to establish a state owned casino, said he thinks the popularity of poker at the tracks and the fact that thousands of Granite Staters leave the state to gamble elsewhere, has increased slots’ chances. HARNESS TRACKS OF AMERICA Executive Newsletter A daily fax and e-mail report on racing and gaming developments in North America and beyond Paul J. Estok, Editor December 27, 2006 WALDROP NEW NTRA CEO ELIZABETH ERVIN DIES AT 99 Alex Waldrop, former president of Churchill Downs, was appointed president and chief executive officer of the National Thoroughbred Racing Association (NTRA) at a special meeting of that organization’s board of directors today. Waldrop, a partner in the law firm of Wyatt, Tarrant and Combs, will assume his new duties on January 15. Of his appointment, Waldrop said, “The NTRA will succeed in moving the industry forward by concentrating on issues of paramount importance to its members -- racing and wagering integrity, advocacy in Washington and a heightened industry profile.... Issue management, including exploring ways to improve account wagering economics, also will be a priority.” Prior to his recent work in private law practice, Waldrop spent more than 12 years with Churchill Downs, first as its general counsel, then as president of the racetrack, and most recently as senior vice president of public affairs for Churchill Downs Inc. Waldrop replaces current NTRA interim CEO Greg Avioli, who will continue to serve as interim CEO of Breeders’ Cup Limited. Elizabeth Griffith Ervin, widow of the late Hall of Fame trainer Frank Ervin, died early this morning at her home in Orlando, Florida. Ervin was 99 and had been in declining health. A funeral service will be held at Cox-Parker Funeral Home in Orlando. The time and date have not yet been announced. Ervin will be buried with her husband in Sedalia, Missouri. She is survived by nieces Marjorie Farrar, Nadine Peake, Betty Schlobaum, Carol Sue Powell, nephew Jim Hollaway, and greatnephew Jay Farrar. Ervin was a supporter of the Harness Racing Museum and Hall of Fame, and memorial donations in her name are requested to the museum at P.O. Box 590, Goshen, NY 10924. In addition to the appointment of Waldrop, the NTRA board made Turfway Park President Bob Elliston its executive chairman. Craig Fravel, an NTRA board member who served as chairman this year, said of Elliston’s new position, “The appointment of an executive chairman is becoming more and more commonplace as companies and organizations seek a clear delineation between board and management responsibilities. Bob brings to the NTRA a wealth of expertise from within and outside the industry. He will serve as a direct conduit between management and the full board and be available to support management whenever called upon to move the industry forward. “Before joining Turfway, Elliston worked for U.S. Bank N.A. and the Kentucky Chamber of Commerce. SLOTS OFF FAST AT PHILLY PARK Just as everyone expected, slot machine gaming at Philadelphia Park will bring much-needed revenue to the track, horsemen and state and local governments. On Tuesday, Wednesday and Thursday last week, Philly Park took in about $1.75 million in gross terminal revenue -- which is wagers minus the machine payouts -- according to the Pennsylvania Gaming Control Board. Last Tuesday, its “soft opening day,” the racino attracted about 10,000 customers and paid out $100,000 in jackpots of $1,200 or more. Overall attendance at the slots palace has averaged 7,000 per day. POSITIVE FOR JEREME’S JET Officials at the Illinois Racing Board are reporting that Jereme’s Jet, winner of the 2005 Nova Award for 2-year-old pacing colt or gelding, tested positive for pyrilamine, a prohibited substance, after winning the $250,000 Windy City Pace in early November at Maywood Park. The racing board has ordered the purse money to be redistributed and trainer Tom Harmer has been fined $2,500. Harmer and owner Jolene Leahy have appealed the disqualification and purse redistribution. 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 December 28, 2006 THE EMPIRE STRIKES BACK TIM TRANSFORMED BY SLOTS Empire Racing Associates, struggling to gain the New York Racing Association franchise despite not being chosen by the selection committee appointed by outgoing governor George Pataki, has cut its ties with Jared Abbruzzese. Saying the announcement “is the culmination of a process that began in October when Mr. Abbruzzese decided to leave the Empire Racing board, citing a distraction created by inquires into activities unrelated to the company,” Empire said it had reached a mutual agreement to buy Abbruzzese’s shares, a 6% stake in Empire. The “distraction” mentioned was the FBI investigation into business dealings between Evident Technologies, a private nanotechnology firm in Senator Joe Bruno’s district, and Bruno, the powerful leader of the New York Senate. Abbruzzese is a former member of the Evident board, and initial funding for the company came from an investment firm run by Abbruzzese. The Associated Press reported earlier this month that Bruno had directed $500,000 in state grants to Evident over the past two years. Tim Rooney, like his father, is a charmer. He is warm and personable with his friends. New York horsemen, however, have been hard on Tim, castigating him and calling him names when slots came to Yonkers before trotters and pacers returned. Never mind that the plant wasn’t ready. He was vilified by the Standardbred Owners Association, whose leader Joe Faraldo sued him for daring to open Yonkers Empire City slots before returning live racing to the former Giant of Trotting. THE AUSSIES STILL WANT IN Although Steve Swindal’s Excelsior Racing Associates, with Billy and John Johnston prominently involved, have the rail in the race for the NYRA franchise, the Australians who want it are not giving up. They have offered $1.8 billion to New York and its racing industry for the franchise, saying they would introduce the “Australian model” that makes going to the track a social event Down Under. Australian racing, according to its trade journals, is in no better shape than its American cousin, social standing or no. The hats at the Kentucky Derby are the same, or close, to those at the Melbourne Cup, and the same pressures weigh on Australian racing as impact the U.S. and Canadian versions of the sport. Now, in a remarkable reversal, Harness Horsemen International has announced Tim is their Man of the Year, and will be officially installed at their annual awards dinner in Florida March 7. HTA offers its sincere congratulations. We revere Tim, with or without slots. POWER STRUGGLE AT THE TOP Gaming Today of Las Vegas reports this week on an interesting behind-the-scenes power struggle won by Harrah’s Entertainment chairman Gary Loveman against a group of directors led by Steve Bollenbach, co-chairman of Hilton Hotels. One source called the contest “a gutsy move by Gary, very high stakes poker,” saying he put his job on the line when he persuaded Harrah’s board of directors to approve the sale for $27 billion. Bollenbach wanted the deal to provide him the right to fire any member of senior management up until the deal closes, a move the newspaper says was aimed at Loveman, who apparently incurred Bollenbach’s wrath by urging approval of the buyout proposal when it first was offered at $81 a share. Apollo and Texas Pacific stood firm in their refusal to meet Bollenbach’s firing provision, reportedly saying they were “buying management.” Hilton’s co-chairman, Barron Hilton, wound up with $450 million for his 5 million shares of Harrah’s. 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 DESPERATE SITUATION...AGAIN December 29, 2006 A HOLIDAY FOR PENN NATIONAL Massachusetts’ four racetracks, including HTA member Plainridge Racecourse, are preparing to close down operations next Tuesday, Jan. 2, after they failed to reach an agreement on simulcasting and the House killed an extension bill that had been approved by the Senate. Penn National Gaming closed yesterday on its purchase of the 121-room Holiday Inn on Main Street in Bangor, Maine, and the Bangor Daily News reported that all the company needs to begin construction of its $90 million gaming complex is a wrecking ball.” Demolition is scheduled to begin in February, and the racino -- the track is across the street -- is scheduled to open in mid2008. Another hotel, the Main Street Inn, was razed in June and Penn National plans to build on the site of the two, across from Bangor Raceway. The two were among the few commercially-zoned properties large enough to accommodate the 116,000-square-foot planned facility and still meet state law that requires the building to be within a 2,000-foot radius of the track. When completed, the casino-racino will house 1,500 slots, a fourstory, 1,500 space parking garage, a restaurant and retail space. Penn National currently is operating out of a temporary facility, Hollywood Slots, which opened in a former restaurant on Main Street a year ago. Following two sessions of late night maneuvering, including a compromise yesterday that Senate members thought resolved the crisis by extending the present simulcasting agreement until November, the Senate president called key legislators and told them the deal was falling apart. By last night, it was off. Senator Michael Morrissey put it bluntly: “It is the Raynham-Taunton folks,” he said, referring to George Carney’s RaynhamTaunton dog track. “Three tracks have agreed and one hasn’t (Raynham-Taunton) and it seems every year that we are back here for the same reason by the same people pushing it, and I don’t get it.” Thousands of workers face layoffs. Louis Cairlone, who represents union workers at Suffolk Downs, laid the blame directly on Rep. David Flynn, who has been carrying the battle for Raynham-Taunton. “No matter how he tries to spin this, he is the culprit in putting people out of work,” Cairlone said. It was Flynn who blocked the bill in the House with an objection, calling the Senate bill “worthless.” Rep. Daniel Bosley, outgoing House chairman of the Committee on Economic Development and Emerging Technologies and governor-elect Deval Patrick’s appointee as a special economic development adviser, was asked by a reporter about the incoming administration’s view of the situation. He replied curtly, “We’re not in yet. Talk to the new administration.” Although it didn’t make clear how it would happen, the Boston Channel ended its report of the House killing the bill with, “A deal could still be reached before the new year.” A MILLION $$ YONKERS TROT Elsewhere on the slots front, Yonkers Raceway has asked the New York Racing and Wagering Board to approve a Thursday night program and allow it to switch Tuesday nights to afternoon racing, in the wake of the success of its slots. Publicity director Frank Drucker says Empire City at Yonkers is planning ultimately to turn the Yonkers Trot into a million dollar race. FAREWELL TO ELIZ. ERVIN A memorial service for Elizabeth Ervin, trainer Frank Ervin’s widow who died this week at 99, will be held Tuesday from 4 to 7 p.m. in the Cox-Parker Funeral Home in Winter Park, FL. Memorial contributions may be made to the Harness Racing Museum in Goshen, NY. That’s it for 2006. See you next year.