A daily fax and report on racing and gaming developments in North America and beyond. Stanley F. Bergstein, Editor September 1, 2004

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1 Stanley F. Bergstein, Editor September 1, 2004 ANOTHER SALE DISPUTE? TWO And in central New York, the Syracuse Post Standard reports that Vernon Downs horsemen s The bouncing ball that has characterized the sale of Rosecroft Raceway apparently has bounced group is in dispute --- even before he gets the all the way to New Orleans and to Vernon, NY. track bought -- with Eric Spector, the California In New Orleans, the Times-Picayune reports this lawyer trying to buy it who meanwhile has been morning that Churchill Downs, which had named CEO of the track. The horsemen charge dropped out of negotiations to buy the Fair Spector with bad faith negotiating, saying he is Grounds, now is back in play despite McDonald s trying to evict them from the stable area. Spector king Mike Pegram saying he has a signed agreement. Pegram told the paper, I ve heard Bryan meeting this month and next. Joe Faraldo, the says he is trying to get them to agree to a 21-day (Krantz, Fair Grounds owner) has changed his chairman of the USTA and lawyer representing mind. As far as I m concerned, I still have a the Vernon horsemen, says a meeting is scheduled with Spector for tomorrow, but meanwhile signed contract that was submitted in bankruptcy court. It s in the court s hands. Originally Mid-State Racing, the track s parent, reportedly Pegram supposedly bought 86% interest in the has asked a bankruptcy court to void the track s track for $25 million, but today s Times- contract with the horsemen to enable them to deal Picayune s story by Bob Fortus says his offer, with other groups. A hearing on the bankruptcy which documents show exceeds $40 million, is filing itself is scheduled for September 28. contingent on resolution of the track s year-old bankruptcy. Fortus says because the bankruptcy remains active, the door is open for other Ron Pierce, having his greatest driving season PIERCE, WHITE, SAPONARA IN HALL parties to make offers to buy the track, and apparently Churchill, which had offered $45 mil- mounts, has been elected to harness racing s Liv- and leading the nation in money won by his lion earlier, with Krantz, is back with new fillips. ing Hall of Fame by members of the United States Krantz declined to comment, saying the lawyers Harness Writers Association. The 48-year-old would do the talking, and noting that in the last Pierce was leading driver at this year s Meadowlands meeting, and has in recent years driven the two weeks the lawyers meters have been running faster than the electrical meters in my winners of nine Breeders Crown events, two Little house. In addition to $25 million owed to its Brown Jugs, the Hambletonian and Meadowlands Pace, the Kentucky Futurity and Yonkers horsemen, Fair Grounds also owes other creditors some $12 million, according to the Fortus Trot, and the Adios Pace. He is the regular driver story, and owes an undetermined amount -- from of the current top-rated harness horse in North nothing to $5 million, which is a wide spread -- America, the brilliant 3-year-old filly pacer Rainbow Blue, winner of 14 of 15 races. to Video Services, the track s video-poker operator at the track and its OTBs. Churchill reportedly wants the track to fill a winter void in its of Fame is Tom White, veteran Kentucky publi- Elected to the Communicators Corner of the Hall racing network schedule. Pegram told the paper, I don t know what the legality of it all is. and Little Brown Jug. In voting in a special secist who has worked for the Red Mile, the USTA This has been a roller coaster ride, and I m not niors category involving only directors of the ready to get off it yet. The same has writers board, Nick Saponara, a long-retired been true in Maryland, where the sale of Philadelphia writer and handicapper, was Rosecroft now has returned to limbo. named to the Corner.

2 Stanley F. Bergstein, Editor September 2, 2004 DRACONIAN PROPOSAL IN OHIO HOW CHURCHILL WON THE WAR The chairman of the Ohio Racing Commission, Wars are not over until the last shot is fired, as Scott Borgemenke, thinks he knows how to improve racing in the state. His solution: cut the Pegram discovered in New Orleans yesterday. the United States is discovering, and as Mike number of racing days drastically. The Columbus Dispatch reports this morning that in a con- trainers and McDonalds executives, thought he Pegram, more accustomed to dealing with horse ference call yesterday with racing commissioners, track operators and horsemen s groups, but as the track s owner pointed out after sign- had bought 86% control in the Fair Grounds, Borgemenke proposed a plan -- as yet incomplete ing with Churchill Downs instead, Until you get -- that would cut 192 racing days from both the out of bankruptcy, you never know which way harness and thoroughbred schedules in Ohio. If it ll turn. This is the way it turned in New Orleans: Churchill Downs, which had dropped out that plan were adopted, harness tracks would race a total of 335 programs rather the 527 in of play, got back in by making a new proposal a 2003, and the runners would have 264 days of day before a bankruptcy judge agreed to racing rather than 456 a year ago. As discussed, Pegram s bid of $25 million for an 86% share. all seven tracks in Ohio -- Scioto Downs, The court did not approve the Pegram proposal, Northfield Park, Lebanon Raceway and Raceway Park on the harness side and Beulah Park, both Pegram and the Fair Grounds had re- nor did it dismiss the Chapter 11 proceedings, as River Downs and Thistledown in thoroughbred quested. A day later, last Saturday, Churchill racing -- would be affected by the change, racing made its formal offer, sweetening its previous proposal of $45 million by $2 million, agreeing to at different times to avoid competition for horses and revenue. One track operator -- Jack buy out all Fair Grounds shareholders for $47 Hanessian of River Downs -- said he was willing million. Pegram had offered $750,000 in track to go along with the idea. There were no immediate reactions reported from other tracks, but did not insist, as Pegram had, on the deal being improvements, Churchill offered $4 million, and there was immediate reaction from horsemen, as contingent on an agreement with Video Services, the Dispatch predicted. The president of the Ohio which operates the Fair Grounds video poker HBPA, Gus George, was quick to respond, saying Our horsemen are not in favor of cutting the Churchill offer. Krantz will remain a chair- setup. Sunday the Fair Grounds board approved days. Average daily purses have fallen 25% in man of the track for three years -- he says hopefully longer -- and the deal fills in a Thanksgiv- five years at Ohio thoroughbred tracks, and 11% at the harness tracks. The theory behind the ing to March gap in Churchill s simulcasting operations. As a Fair Grounds lawyer noted, how- move is that with fewer live races, tracks could build purse accounts thru simulcast betting, leading to larger purses, but on fewer races. closes. Pegram says the track did not negotiate ever, A deal isn t ever completely done until it Borgemenke reportedly told his telephone conferees that if they didn t support his idea, he watch, because it wouldn t surprise me if those in good faith, adding, I m going to sit back and would use his voting power to reduce races in guys go out and shop Churchill s offer the way Ohio in any event next year. He wants the tracks they shopped mine. That is not likely to happen, for no one other than Pegram and Churchill to try his scheduled circuit for one year on a trial basis, and does not sound as if actively sought to buy the Fair Grounds. he will take no for an answer.

3 Stanley F. Bergstein, Editor September 3, 2004 GAINS ON INTEGRITY FRONT Despite a raging scandal in English thoroughbred racing, there are encouraging signs across North America that the battle to assure integrity is gaining ground. In harness racing, two top trainers with positive tests -- Bill Robinson in Ontario and Bob Belcher in Ohio -- are out of the game, Robinson for two years and Belcher for one. Driver David Hawk faces charges of betting on horses other than his own in 17 races. Racing s medication Consortium continues agressive work on uniform drug testing and standards. And now with the strong endorsement of former famed jockey-turned-executive Chris McCarron, Santa Anita announces it will institute race-day detention barns, and California commissioner Roger Licht says he hopes to have the racing board make them mandatory throughout the state. McCarron said of the barns, I m not only comfortable with it, I encourage it, and trainer Darrell Vienna put it bluntly when he was quoted in Blood-Horse as saying, What s the alternative? Tracks are losing much more (than the cost) in attendance and handle because of perception. If we fix the problem, we don t have to worry about it any more. A recent sharp increase in sodium bicarbonate positives at Del Mar accelerated action on the issue, and work is ongoing on tests that would penalize overages. Drew Couto, executive director of the Thoroughbred Owners of California, joined in the wave of approval, saying, I think everyone should be applauded for getting things done. The former spirit of denial has been replaced with a determination to correct the problem. Couto talked as if California was discovering America on the issue, when in realty testing for milkshaking and rules against it have been an established practice in harness racing for years. It is encouraging to see thoroughbred racing facing up to the issue and taking positive action on it. BIG DOINGS IN NEW ENGLAND New England s two major harness tracks, Plainridge Racecourse and Rockingham Park, have planned big weekends for the Labor Day holiday. Both HTA tracks have special activities. At Plainridge, the track has scheduled a three-day Block Party, with live racing supplemented by charity events including a Miss Summer 2004 Beauty Pageant, Classic Car Cruises with prizes, and an All Request Saturday Night Live with Cruising Bruce Palmer, a local radio personality. Jack Ginnetti s New England chapter of USHWA will honor 28 New England horses that made history during their careers, with Bill Rosenberg s widow Ann providing the plaques. On Sunday in addition to the live card the New England Amateur Drivers Club Championship and a leg of the C.K.G. Billings amateur series will be a feature, along with an exhibition by the Standardbred Pleasure Horse organization and Fun for the Kids, with amusement rides, pony rides, face painting, cotton candy and popcorn. The Labor Day card will feature the $50,000 Bert Beckwith Memorial, a $20,000 trot, and induction of two-time Plainridge driving champion Greg Bowden into Plainridge s Wall of Fame. At Rockingham, the first racing of the $80,000 Joseph Carney Memorial Trot will be the highlight, memorializing the former track president. The field includes the $2.9 million winner Fool s Goal, trained by a New England favorite, Hall of Famer Jim Doherty. On Sunday, Rockingham sets a New England precedent with eight harness races and three thoroughbred races over its turf course. AT HINSDALE, BET FOR A DIME Elsewhere in New England, Hinsdale Greyhound Park in New Hampshire introduces its 10-cent superfecta tonight, with word that Keeneland in Kentucky is studying the possibility of introducing one.

4 Stanley F. Bergstein, Editor September 7, 2004 THE BATTLE GETS UNDERWAY VERNON BLAMES SCOTT The contest for the last harness racing license and Lee Woodard, a Syracuse, NY, bankruptcy lawyer representing Mid-State Raceway, the parent presumably a racino to go with it in Pennsylvania begins tomorrow, when hearings get underway on the applications of Centaur Pennsylva- court papers filed opposing appointment of an of Vernon Downs, lashed out at Shawn Scott in nia and Ambrosia Enterprises for a western Pennsylvania harness track and the racino that will bankruptcy proceedings. A trustee has been re- independent trustee to run the track during its go with it. Centaur will be represented by HTA quested by Vestin Mortgage of Las Vegas, but president Jeff Smith, who will make the pitch for Mid-State says Vestin s motion is riddled with a track to be called Valley View Downs, while falsehoods. Woodard blamed Scott for pushing Carmen Shick whose family owns a 70-year-old Vernon into debt in 2002 and 2003 and then limestone mining and home building company, bringing in Vestin, who he says overcharged will present the case for Ambrosia s proposed Vernon. He says after Mid-State owed Vestin $18 Bedford Downs. Whichever side wins plans to million Scott got another $3 million loan, and build an entertainment complex that will include Vestin charged fees and points as if it had just live racing, simulcasting and a racino assured of issued a $21 million loan. Steve Stern, speaking at least 3,000 slots. Centaur s proposed project for Vestin, said that is standard practice, and that would be built on 200 acres of an abandoned Mid-States board, which at the time was controlled by Scott, agreed to the terms because farm, Shick s on 550 acres west of New Castle, where Ambrosia is located. The three-member that s the way this kind of money is lent. The harness racing commission will visit Shick s site U.S. bankruptcy trustee in Reno, Nevada, meanwhile, said the Nevada bankruptcy filing, which tomorrow, then visit Centaur s on Thursday. The hearings, expected to last three hours each, will forced Mid-State to declare bankruptcy on its be followed by another hearing on Oct. 25 in Harrisburg when the two rivals will have a chance to erates in New York. own, should be dismissed because Mid-State op- square off against one another. A decision on the track license is not expected until February or RACING LOSES IN MICHIGAN March, and the racino license is up to the newly Michigan s three-judge Court of Appeals has appointed Gaming Control Board, and probably ruled that Proposal 1, which was backed by the won t be considered or granted until Six state s casinos and gives future expansion of gaming decisions to the electorate, will remain on the of the seven track racinos are spoken for -- at The Meadows, The Downs at Pocono, Penn National, Philadelphia Park, and tracks still to be than 500,000 voters signed petitions to the Let November ballot. With casino support, more built in Chester and Erie -- and the winner of Voters Decide proposal, which tracks, including Magna Entertainment, opposed. The three this week s competition is odds-on to get the final racino. Shick is contemplating a one mile Detroit casinos and the state lottery will continue, track, Centaur a smaller one given the size of its having received voter approval earlier. proposed enterprise. Both hope to tap the market of racegoers in Ohio, who currently have to POMPANO OK, TO RESUME Pompano Park escaped hurricane Frances with travel to West Virginia to gamble, since only minor wind damage, and reopened for simulcasting today. Racing and poker will Ohio still has no slots and may or may not get them in the near future. resume Friday.

5 Paul J. Estok, Editor September 8, 2004 GUILTY PLEA IN DOPING CASE ing, the Mid-State attorney said that the track Horse trainer Daniel P. Sheddan, 26, of couldn t afford to hire a specialist and that the Bordentown, New Jersey, pleaded guilty Tuesday in Burlington (NJ) County Superior Court You re saying this guy s working for $52,000 a track pays Spector $1,000 a week as CEO. to rigging a publicly exhibited contest and possession of an illegal performance-enhancing drug. that s suspicious. But after hearing arguments year? the judge reportedly asked. In itself, Sheddan faces a maximum of 18 months in prison for 45 minutes, Gerling declined to name a on the rigging charge and five years on the drug trustee. After the decision, the attorney for Vestin possession charge. Sheddan and Bruno Chiodo, Mortgage requested an evidentiary hearing on a groom Sheddan employed at Magical Acres allegations contained in papers that were filed to Farm in New Jersey, were charged in May. The support the call for Spector to step down and for case against Chiodo is pending. State Police officers who visited the farm last February said they ing would be scheduled within 14 days in Utica. a trustee to be appointed. Gerling said a hear- observed the men giving a liquid to a horse scheduled to run later that day at Freehold. The liquid was later determined to be a combination of sodium bicarbonate and Levothyroxine, a prescription drug commonly used to enhance performance. Sheddan and Chiodo have been suspended and fined by the New Jersey Racing Commission. NO TRUSTEE FOR VERNON A federal bankruptcy judge yesterday declined to appoint a trustee to monitor operations at embattled Vernon Downs in upstate New York. Nine lawyers representing parent corporation Mid- State Raceway and Vestin Mortgage of Las Vegas packed a hearing, with Vestin, Mid-State s largest creditor, arguing that U.S. Bankruptcy Judge Stephen Gerling should name a trustee to replace Vernon CEO Eric Spector. For the past several months, Spector has been trying to buy the track. Lee Woodard, the Syracuse lawyer representing Mid-State, outlined the steps Vernon would need to take to become solvent, including regaining its licenses for live and simulcast racing and getting a gaming license to operate VLTs on the grounds. According to the Syracuse Post- Standard, when the judge asked Woodard why the track hadn t hired a turnaround specialist to get the track go- A CHALLENGE FOR WOODBINE A federal court in Ontario has been asked by the Ontario Racing Commission to decide whether Woodbine Entertainment Group s HorsePlayer Interactive account wagering portal is legal. At issue is a rule change made last year that allowed bets on horse races to be placed by any telecommunication device. The racing commission contends that the agriculture minister exceeded his legal authority in approving the change. SLOTS NOMINEE CHALLENGED Pennsylvania Gov. Ed Rendell hit another possible stumbling block on the long road to seeing slot machine gaming come to the Keystone State yesterday when state Attorney General Jerry Pappert filed a lawsuit alleging that the appointment of Jeffrey Coy to the newly created state gambling board violates the state constitutional provision that prohibits lawmakers from being appointed to paid state government jobs during the terms for which they were elected. Coy, an 11-term House member who is not seeking reelection, was appointed to the board one day after resigning his House seat. Pappert is relying on a constitutional provision that says no Representative shall, during the time for which he was elected, be appointed to any civil office...to which a salary...is attached.

6 Paul J. Estok, Editor September 9, 2004 WHEELS OFF AGAIN IN MD. In related news, the family of Peter Angelos, the Only a day after reports of a compromise by the well-connected lawyer and majority owner of the leading actors in the Maryland slots drama surfaced, the wheels came off the cart and the process Rosecroft Raceway. John Davey, an attorney for Baltimore Orioles, resumed negotiations to buy of moving forward with an expanded gaming proposal ground to a noisy halt. So once again, the ued to talk to the Angelos family, even after re- Rosecroft, said the track s owners have contin- finger-pointing begins, but readers will be relieved jecting their most recent offer to know that they don t need to learn a new cast list since the players are all the same, with House MTR BUYS INTO MICHIGAN Speaker Michael Busch continuing his role as the MTR Gaming Group, Inc., owner of HTA s Scioto treacherous villain. It all began with a secret meeting Monday night between Maryland Gov. Robert Downs as well as Mountaineer Race Track in West Virginia, today announced that its new Ehrlich, Speaker Busch, and Senate President Thomas V. Mike Miller in the governor s mansion. wholly owned subsidiary, Jackson Racing, Inc. has signed a definitive agreement to acquire a 90 At the meeting, the governor reportedly agreed to consider a referendum -- an idea he has repeatedly percent interest in Jackson Trotting Association, refused to consider -- if a vote count in the House the Michigan company that operates Jackson showed enough support for a constitutional amendment to legalize slots. The proposed legislation was mately 35 miles from Lansing, 40 miles from Ann Harness Raceway. Jackson is located approxi- to be based upon Ehrlich s previously proposed legislation, which passed the state s senate earlier this Toledo, Ohio. Ted Arneault, president and CEO Arbor, 60 miles from Detroit, and 70 miles from year. But somewhere along the way, the effort of MTR Gaming, said of the acquisition, We broke down. It s done, done, done, done, Ehrlich are enthusiastic about proceeding with this transaction. This racetrack in Jackson, Michigan, fits said, declaring the effort dead during an interview at the Governor s mansion. Democrats said they well with our growth strategy to build and acquire other middle-market pari-mutuel busi- wanted the governor to negotiate on the final form of a bill to face voter approval. But the governor nesses in areas with the potential for expanded has said many times that he doesn t want to haggle gaming legislation... We look forward to working with the track s existing management and over details. Ehrlich said Busch agreed to rally votes among majority Democrats for the governor s employees to take Jackson Harness Raceway to plan. Instead, the governor said, Democrats were the next level. divided, with many wanting to change the Senate plan or push for a radically different House version. Today was pretty much a waste of time, CHENERY RECOVERING Ehrlich said. Senate President Miller also said Penny Chenery, the goodwill ambassador of racing who was best known as the owner of 1973 Busch seemed to change his message over the past two days, and as a result, talk of a special legislative session within the next week to produce a ref- after suffering a heart attack Monday morning Triple Crown winner Secretariat, is recovering erendum was probably over. Lawmakers would and undergoing an angioplasty. Chenery is 83. have to pass a slots measure in a special session by Get well cards and expressions of good wishes next week to meet a deadline for getting the can be mailed to Chenery at P.O. Box 4865, Louisville, KY gambling question on the Nov. 2 ballot

7 Paul J. Estok, Editor September 10, 2004 SEVEN IN FOR MESSENGER The draw for the Messenger, harness racing s second leg of the pacing Triple Crown, was held at Harrington Raceway yesterday, with seven horses entering the $340,950 event scheduled for next Tuesday. The Perfect World Enterprises-owned entry of Timesarechanging and Western Terror drew post positions, two and five, respectively, as each horse continues its quest for the Triple Crown after winning the Cane Pace, first leg of the Crown, in a remarkable dead heat. Trainer Linda Toscano also has two entered, Maltese Artist and Art Director, but the horses will race as separate betting interests since there is no common ownership. The field is rounded out by Metropolitan, Dual Personality and Jacob s Western. The Messenger is scheduled as the 12th race on Harrington s 15-race program. Post time for the first race is 5:30 p.m. GEMSTAR SELLS YOUBET STOCK Youbet.com announced yesterday that ODS Technologies, which does business as TVG Network, a subsidiary of Gemstar-TV Guide International, sold its holdings in Youbet.com. The sale, handled by ThinkEquity, a San Francisco-based investment banking firm, saw TVG liquidate its five million shares in Youbet. Youbet.com CEO Charles Champion said that Gemstar s decision to sell its equity position significantly increased the number of Youbet shares held by long-term institutional investors. He noted that the transaction does not impact the strategic relationship between Youbet and TVG Network for horse racing content. MORE NEWS ON JACKSON As part of its deal to acquire controlling interest in the Jackson Trotting Association, MTR Gaming will reportedly provide about $30 million to build a new track, regardless of whether the State of Michigan approves slot machines at racetracks, according to a report in the Jackson Patriot. We re building a new racetrack, one way or another, said Dan Rakieten, general manager of Jackson Harness Raceway. Both MTR Gaming and Jackson s current ownership believe Jackson Harness Raceway can make money in a new facility even without slot machines. Plans include a year-round restaurant and more live racing dates. It s an opportunity for us to get out of the fairgrounds, Rakieten said. If I am in a new place with a chance to grow our business, we can make money. The location of the new track still is in question. Rakieten hopes to have all the necessary approvals from the Michigan Racing Commission for the MTR deal and property acquisition completed by the end of the year. Jackson s live-racing lease at the county fairgrounds expires in 2006 and Rakieten says he made it pretty clear I want to be out of there by then. CULLEN SUSPENDED IN ONTARIO Trainer/driver Allan Cullen has been suspended by the Ontario Racing Commission until June 30, 2005, as a result of a positive cocaine test in August, according to a report in the Harness Edge. The positive came while Cullen was on probation after being suspended from December of last year to June. The 42-year-old horseman was ordered to undergo drug rehabilitation prior to returning to racing. He will also be on probation for an additional 18 months upon his return. Cullen, who has 4,162 lifetime wins and over $13 million in purses earned during his career, argued that the positive test came as a result of medication and herbal remedies he was taking for injuries sustained in a racing accident, but there was no evidence presented that the medication would produce the cocaine metabolite. ART AUCTION REMINDER It s auction time again, so remember to call HTA for a catalog or visit the online catalog at

8 Stanley F. Bergstein, Editor September 13, 2004 A PUSH TO OUST BUSCH ANOTHER SHOT BY GIULIANO In an unusual move, even for politics, the Republican minority whip of the Maryland House once again to convince officials of Foxborough, Lou Giuliano just won t give up. He is trying has promised to deliver all 43 Republican votes Massachusetts, to approve plans for a harness in the 141-member House to any Democrat who track across busy route 1 from old Foxboro Raceway, where he once ruled with an iron hand be- seeks to replace Michael Busch as Speaker. Anthony J. O Donnell, the Republican whip, told fore Foxboro was evicted by New England Patriots owner Robert Kraft, who replaced the track Democrats, If you are willing to stand up and lead the House of Delegates and do the work of with a parking lot. Giuliano, a former partner the citizens of Maryland, our 43-member caucus of Plainridge Racecourse boss Gary Piontkowski, is willing to work with you. I think his (Busch s) now is promising the town of Foxborough at least leadership is such a failure that it calls for extraordinary measures. Busch, of course, has thing they refused to do at a town meeting in half a million dollars a year to let him build, some- been the stubborn roadblock to slots in Maryland, and the Republican move is designed to March. encourage rumblings within Busch s own party. SENECAS WIN A ROUND IN NY O Donnell said of Busch, In Annapolis, your Also wanting to build, but a high-stakes electronic stock in trade is your credibility, and your word bingo hall in New York state rather than a racino is your bond. This speaker has no bond. And his in Massachusetts, is the Seneca-Cayuga Indian stock in trade is worthless. Busch, in keeping tribe of Oklahoma. A federal judge helped their with today s politics where black is white and vice cause last week when he affirmed their standing versa, said he regarded the Republican move as as a successor of interest to the old New Yorkbased Cayuga Indian Nation, which gave birth a compliment. If the Republican leadership wants to remove me as presiding officer, then I to Cornell University s High Above Cayuga s know I m doing my job. They have to blame Waters. The judge did not rule on their plan to someone for their failure, and I m the most accessible target. The slots controversy has creger Lakes region, but a Cayuga lawyer called the build the state-of-the-art bingo hall in the Finated unlimited bitterness in Maryland, and a decision on the tribe s standing the most important issue of the case. former speaker of the House, Casper R. Taylor Jr., said of the conflict, This level of personal finger-pointing and retribution, on either side of the aisle -- which I have never seen before -- will destroy the public policy-making process. 5 FOR 5 FOR DRIVER OF YEAR HTA s three-time Driver of the Year and current holder of that honor, Dave Palone, keeps adding to his dazzling accomplishments. There were five divisions of the $126,800 Keystone Classic for 2- year-old filly pacers at The Meadows last Friday night, and Palone won all five. The western New York region is proving productive in gambling. A gaming newsletter, Michael Pollock s Gaming Industry Observer, says the seven casinos and racinos in the area will generate gross revenue of $1.2 billion in the next 12 months, and projects the western New York area will rank either sixth or seventh among largest gaming markets in the U.S. In another interesting New York development, a poll in the Middletown Times Herald-Record reports less than half the people in Sullivan county, where Monticello is located, now want more casinos.

9 Stanley F. Bergstein, Editor September 14, 2004 ONE DOWN, TWO TO GO IN THE INTEREST OF JUSTICE Philadelphia Trotters and Pacers, the politically Everyone, including courts, can interpret that line powerful group of investors who had hoped to as they wish. In Washington, DC, where massive fraud was found by the Board of Elections build a harness track at the Philadelphia Naval Shipyard, have withdrawn their racing operation, but still hope to get a license to operate a a court now has ordered the board to clarify its and Ethics in throwing out a plan to legalize slots, slot operation at that site. The group apparently case and do so quickly. The D.C. Court of Appeals, reviewing the matter, said, Although time finally accepted the fact that the legislation passed in Pennsylvania would not permit a racing operation within 20 miles of another track. A Naest of justice will be furthered by the intermedi- has become of the essence in this case, the interval Shipyard track would be 10 miles from ate step we order. Time is of essence because Chester Downs, already licensed but not yet built, the proponents who filed the appeal are running and 19 from Philadelphia Park in the northeast out of it if the issue is to make the November reaches of the city. Two non-racing slot licenses ballot. The backers of the measure, financed from will be available in Philadelphia, and competition is expected to be heavy for them. The city more than 56,000 signatures. When the Board St. Croix in the Virgin Islands, had submitted council and Philadelphia s mayor will create a of Elections finished with its survey of those task force to make recommendations on the recipients and locations. Hearings on two pending valid. Despite that, the court wants more clarifi- names, it wound up with 14,687 it certified as track license applications were heard last week. cation. Maybe Charles Dickens knew something when he wrote, The law is a ass. END OF THE LINE FOR CASE Walter Case, once one of the brightest stars of harness racing and now one of its most tragic figures, pleaded guilty to felonious assault yesterday and faces up to eight years in prison. No sentencing date has been set for his latest brush with the law, punching, kicking and finally stabbing his wife Nadine, 26, who has filed for divorce. Case, who received chance after chance because of his driving brilliance -- he is the sport s second leading race-winning driver with 11,027 victories (only Herve Filion has more) -- was declared unable to afford an attorney by the court, which appointed public defenders to represent him. LATE NEXT YEAR FOR YONKERS Yonkers Raceway president Tim Rooney has announced that the earliest opening of the Empire City racino at the track would be late in Environmental impact studies still are underway. MYSTERY ILLNESS IN BUFFALO The Fairgrounds Gaming and Raceway racino was closed temporarily yesterday, after a number of employees became ill. It is the first time since it opened in March that the racino has shut down, but health officials deemed it wise after some employees complained of headaches and nausea. The Erie county health commissioner, who ordered air quality testing inside the racino, said it was difficult to track down causes without very specific symptoms. LOOKING FOR CREATIVE KIDS The United States Trotting Association is conducting a creativity competition for members under 8. Entries in art, photography, computers. and other forms of creative activities with harness racing as a theme will be awarded with almost $1,000 in prizes. More than 60 kids have joined USTA under a free program put into effect earlier this year.

10 Stanley F. Bergstein, Editor September 15, 2004 ANOTHER BLOW FOR NYRA TVG, meanwhile, announced yesterday it had The harried New York Racing Association, buffeted by blow after blow, received another yes- Comcast Communications, saying some 11 mil- launched on cable television in 14 markets via terday when the Mid-Atlantic Cooperative, the lion subscribers would have access to the network simulcasting purchasing group representing 19 through its new digital carriage deals with tracks including the Meadowlands, announced Comcast. Major markets affected are Albuquerque; Baltimore; Boston; Chicago; Cleveland; it could not reach accord with NYRA and would not carry Belmont Park simulcasts this fall. The Pittsburgh; Portland, OR; Seattle; South Bend; issue triggering Mid-Atlantic action was NYRA s and Tucson. deal with Television Games Network, conveying RENDELL LOSES HIS TOP PICK account wagering rights to its signal in some Mid- Under a blizzard of media exposure of alleged Atlantic states to TVG. Mid-Atlantic s executive friendliness with the Philadelphia mob, Francis director, Martin Lieberman, said the NYRA- P. Friel, governor Ed Rendell s appointee to the TVG deal limited wagering opportunities, and $150,000 job as chairman of the new Pennsylvania Gaming Control Board, has withdrawn from said his members were in agreement that the arrangement was unacceptable and not in the best the job. Rendell had vociferously supported Friel, interest of racing fans in the region. Lieberman and had full autonomy with no review to make said NYRA was effectively attempting to force the appointment. The Philadelphia Inquirer reported today that Rendell s office had received a TVG into states where it has no presence or authority to take bets, and said simulcasting of background check from the state police on Monday, but it was unclear whether the report cre- Belmont races to Mid-Atlantic tracks is worth $10 million in commissions for NYRA. Bill Nader, ated political pressure in Friel s decision to resign. NYRA s senior VP, said Mid-Atlantic tracks earn $50 million a year from simulcasting NYRA races, and that account wagering represented only 1% NO TRIPLE CROWN PACE WIN of the money bet from the region on Belmont There will be no Pacing Triple Crown winner in Park. I never thought they would have reacted Metropolitan s victory in yesterday s the way they did for less than 1% of the entire $340,950 Messenger stake at Harrington Raceway eliminated the possibility, following pie, Nader said. Asked about the the value of its exclusivity agreement with TVG, he declined Timesarechanging and Western Terror s dead to reveal the numbers. Having delegated account heat in the Cane Pace, first leg of the Crown, at wagering control to TVG in return for monies it Freehold 10 days ago. Those two pacers finished needed to settle accounts with horsemen, NYRA second and third last night as the biggest crowd now finds itself in a difficult position, presumably powerless to act on a situation that TVG Harrington s richest race ever. of the season, some 4,500, turned out for now controls. HTA members that are members of the Mid-Atlantic group, in addition to the NO COKES AT MAGNA TRACKS Meadowlands, are The Downs at Pocono, Dover If you are visiting any of Magna Entertainment s Downs, Harrington Raceway, Freehold Raceway 13 tracks, you had better ask for Pepsi, named and Atlantic City at Freehold, Rosecroft Magna s Official Soft Drink in an exclusivity Raceway, Ocean Downs and Rockingham contract that includes Pepsi advertising on Park. Magna s HorseRacing TV.

11 Stanley F. Bergstein, Editor September 16, 2004 BETTER LATE THAN NEVER Chairman Harris, however, told tracks that any In a heartening display of industry unanimity racing association that wants to adopt its own marking the end of years of denial in which program is welcome to do so. Sherwood milkshaking was considered exclusively a harness racing problem, the thoroughbred industry Oak Tree meeting at Santa Anita, said all start- Chillingworth, executive vice president of the in California has acknowledged it is a serious ers in every race would be tested for excessive problem with the runners. After testing by Dr. TCO2 levels during the first week of the meeting Ron Jensen, the California Horse Racing Board s that begins there Sept. 29, with random testing equine medical director, revealed that 10% of of at least three races a day thereafter. thoroughbreds tested at Santa Anita, Hollywood Park, Bay Meadows and Golden Gate Fields WHAT COMES AFTER DEAD? showed high readings of carbon dioxide, the The Baltimore Sun reported today that racing board has taken steps to halt the practice. The executives and other gambling interests made a testing was made possible by financial contributions from commissioner William Bianco and the ting a slots measure on the Nov. 2 ballot in Mary- last-gasp pitch yesterday -- the deadline for get- Oak Tree Racing Association. Commissioner land -- but that lawmakers expressed little interest. The man who has blocked slots, House Roger Licht, who has been an active leader on the milkshaking issue on the coast, wants the administration of alkalizing substances in excessive this? The president of the Senate, Thomas V. speaker Michael Busch, said, Why reinvent amounts to be a Class 3 violation in California, Mike Miller, said I m not going to deal with with automatic forfeiture of purse money and it...i m not going to give it the time of day. And other penalties imposed by the stewards. His the governor, Robert Ehrlich Jr., said the effort colleague, commissioner Jerry Moss, added that no longer was relevant. a second offense by the same trainer should result in a greater penalty, saying, After all, bicarbonate is administered with the intent of While thoroughbred racing was catching up to LOGOS COME TO THE SPORT changing the playing field, so the penalty should harness racing on the milkshake issue, harness be quite severe. Board chairman John Harris, racing was catching up to the runners on logos. responding to a comment from Craig Fravel, executive vice president of Del Mar, that some ju- wear a logo for Youbet.com on his silks next week The sport s leading driver, John Campbell, will risdictions bar horses testing positive from competition for some time, said he liked the idea of races in Delaware, Ohio. when he drives in the Little Brown Jug and other some sanction against the horse. Representatives FAIRGROUNDS BACK IN ACTION of the Thoroughbred Owners of California and HTA member Fairgrounds Gaming and Raceway California Thoroughbred Trainers and various in Hamburg, NY, got clearance yesterday to reopen its racino this morning after being closed racing associations all expressed support for the proposed rule, with the TOC offering to purchase since Monday when five racino employees came expensive testing equipment to facilitate the testing. The proposed rule, which calls for a TCO2 down with mysterious flu-like symptoms including nausea and headaches. The local health department and OSHA officials gave the racino limit of 37 millimoles per liter of serum or plasma or 39 if the horse is on Salix, a clean bill of health after tests showed no was put on 45-day public notice. findings.

12 Stanley F. Bergstein, Editor September 17, 2004 WINDSOR, OHHA IN ACCORD CAL TRACKS TAKE ON GOV Windsor Raceway and its OHHA horsemen have California s five racetracks and 11 card clubs reached agreement, and are petitioning the have committed to a multi-million dollar fight to Ontario Racing Commission for a change of racing schedule for the remainder of the year. The vision and media campaign to get Proposition 68 get slot machines, launching a high-powered tele- track and OHHA agreed, after a lively, open discussion, to race three nights a week instead of vember election. Proposition 68 would require passed and Proposition 70 defeated in the No- four, on a Sunday, Wednesday and Saturday all Indian casinos to pay 25% of slot winnings to schedule starting October 16. Windsor president a fund earmarked for local law enforcement, fire and COO (and HTA director) John Millson said, protection and children s programs. If any tribe The Raceway is working its way out of financial difficulties with the cooperation of its horse- 30,000 slot machines and pay 33% to the same demurred, the tracks and card clubs would split men. We are collectively seeking to develop a programs. Proposition 70 offers unlimited Nevada style gaming for 99 years to any tribe that long term race schedule that addresses the racing opportunity needs of our horsemen, that accommodates our patrons of both simulcast and Governor Arnold Schwarzenegger opposes agrees to pay California an 8.84% corporate tax. live racing, while making overall prudent business sense. Windsor first modifed its racing Hollywood Park president Rick Baedeker, speak- Proposition 68 as an expansion of gambling. schedule in February, going to four days of racing with 16 races each day. That represented an fight now. We don t have a choice. We re in a ing for the tracks, said, We re determined to increase of racing opportunities from 1,623 last position where we have to do everything we can year to 1,858 this year, or 14.5%. Under its new to survive. In addition to the media blitz, the schedule it will card 42 races a week on Sunday and Wednesday and 12 on Saturday, the against the administration and the state, claim- tracks and card clubs yesterday filed a suit same number it offered a year ago in the same ing the pacts the governor made with five tribes period racing four days a week. in June were illegal because the state constitution says urgency clauses, under which the pacts were signed, cannot grant any franchise or special privilege or create any vested right. ESTOK TO SPEAK IN FLORIDA HTA general counsel and corporate secretary Paul Estok will be a speaker at next week s 12th annual TRA-HTA-AQHA international simulcast conference at the Sonesta Beach Resort in Sunny Isles, Florida. Estok will give a presentation on federal laws most relevant to the pari-mutuel industry, and highlight issues of compliance faced by track operators. The first public discussion of the NTRA s Wagering and Task Force report also will be presented at the conference. HTA s executive vice president, meanwhile, will be off to Delaware, Ohio, and the Little Brown Jug to promote the upcoming HTA art auction that supports our college scholarship program. MAGNA BACKS OFF PLAN Frank Stronach s MI Developments has announced it will not proceed with its announced plan to privatize Magna Entertainment. The company said it acted after a joint recommendation from a special committee of independent directors and a senior management team advised against the move. YES OR NO IN MINNESOTA The Minnesota racing commission has announced it will rule on a new harness track near Minneapolis next month.

13 Stanley F. Bergstein, Editor September 20, 2004 CREDITORS DAY AT VERNON Creditors of shuttered Vernon Downs were scheduled to meet with the track s managers today to discuss the monies owed them. The horsemen s colony is owed some $475,605, and Niagara Mohawk, which provides electricity to the track, is owed $143,455. Another hearing, on a demand by Vestin Mortgage, which holds $23 million in paper on the track, has been postponed until Oct. 29. Vestin wants an independent trustee to be appointed to run Vernon, rather than Eric Spector, the California lawyer who is now in charge and hopes to buy the track. At an earlier hearing on the trustee, a bankruptcy judge refused to appoint one, but did grant Vestin s request for a more detailed hearing. TAKING ON THE TERMINATOR The governor of California appears unconcerned by the lawsuit filed against him by California s five racetracks and eleven card clubs, which claim that the pacts he negotiated with five Indian tribes in July are unconstitutional. The tracks and clubs say governor Schwarzenegger made the deals under urgency clauses, and that such clauses cannot grant any vested right or interest. A spokesman for the governor said the argument is flawed because of an amendment to the constitution approved by voters in 2000 that granted exclusive gaming rights to the tribes, and she called the lawsuit a desperate attempt by a failing campaign. ANOTHER SETBACK FOR BOTHE Race announcer John Bothe, battered by the courts at every turn, has suffered another loss. A New York state appeals court last week ruled that Bothe, who paid a radio station $1,000 to let him host a talk show, had to repay $ in unemployment benefits even though he was not paid for the air time. He also lost 104 days of future benefits because of alleged false statements. 24 SIGN IN FOR THE JUG No one has been frightened or intimidated, and no one has been dominant, in the 3-year-old pacing division this year. That was made clear Saturday when 24 colts entered for Thursday s $571,500 Little Brown Jug at the Delaware county fairgrounds in Delaware, Ohio. The bumper crop resulted in three 8-horse eliminations, with the usual Jug formula that if a first elimination winner also wins the second heat, he wins the Jug. Otherwise the four winners to that point return for a $57,150 raceoff. Western Terror, which dead-heated with Timesareachanging in the $334,875 Cane Pace, first jewel of the Triple Crown, at Freehold, is favored in the first division. Timesareachanging is favored in the second after Metropolitan, winner of the $340,950 Messenger stake at Harrington, drew eighth post. Blissed Out, which set an all age mile record of 1:48.4 in winning a $106,718 division of the Simcoe stakes at Mohawk Raceway ten days ago, is favored in the third elimination. STUDENT KILLED BY HORSE An 18-year-old second-year coed in the popular SUNY Morrisville (NY) College horse management program died Saturday afternoon after being kicked in the throat by a horse in a field outside the college equine center. Bridget Publicover of Rochester, NY, was due to graduate from the program in May. The tragedy is a reminder that horses can be unpredictable, and that amateur horse activities at tracks carry risk. ZITO S FILLY WINS AGAIN Centerfold Hall, the 2-year-old trotting filly owned by thoroughbred trainer Nick Zito and his wife Kim in partnership with Alan and Meg Leavitt of Walnut Hall Ltd., won an $80,000 Kentucky Sires Stakes Sunday night for her seventh win in eight starts.

14 Paul J. Estok, Editor September 21, 2004 JAIL FOR FORMER NYRA EXEC Clement Imperato, former vice president of the New York Racing Association s pari-mutuel operations, was sentenced to four months in prison yesterday for his role in the scandal that brought one of North America s biggest racing organizations to the brink of ruin. Imperato, 70, pleaded guilty in May to conspiracy to allow mutuel tellers at NYRA tracks to use money from their cash draws for personal expenses and then deduct the funds as business expenses on their tax returns. U.S. District Court Judge Arthur Spatt could have sentenced Imperato to between 10 and 16 months under federal sentencing guidelines. Instead, Spatt gave him a reduced sentence, citing Imperato s poor health as well as his wife and grandchild. NYRA, which reached a deferred prosecution agreement under which charges against the association would be dropped if it cleans up its operations, continues to operate under the guidance of a court-appointed monitor. BACKING FOR SLOTS IN FLORIDA Saying Florida s public schools need the money, former state education commissioner Jim Horne has suddenly become a promoter of a constitutional amendment that would allow slot machines at seven Florida racetracks and jai alai frontons. You re probably thinking Jim Horne is probably the last person you d see standing here with the gaming industry, said Horne, a former state senator who said he never accepted campaign contributions from gaming interests. Amendment 4 is not about gambling, no matter how many people will want to attempt to mislead voters with negative connotations about this amendment. From this conservative s mouth to your ears, Amendment 4 is about improving schools by building a high-quality education system in every corner of the state. Proponents of Amendment 4 say it would raise at least $438 million for public education in the first year and $2.34 billion over five years. Besides Horne, who is being paid to act as a spokesman, the amendment is also supported by the state teachers union and the Florida Education Association. Gov. Jeb Bush, a gambling opponent who appointed Horne education secretary, said he opposes the amendment. YEAR OVER FOR VERNON Abused and beleaguered Vernon Downs won t resume racing this year, according to Eric Spector, the CEO of the track s parent company, Mid-State Raceway. Spector said it s too late now to get the necessary approvals from the state needed to start racing before winter. It s just not practical, Spector told the Syracuse Post-Standard. You wouldn t be racing until the end of November or early December, and that s not the best time of year. Spector noted that the track would have to reach an agreement with horsemen, then win approvals from both the New York State Racing and Wagering Board and the U.S. Bankruptcy Court in order to regain its racing license. But Joe Faraldo, attorney for Vernon s horsemen, said there s no reason the track can t race in cold weather. Vernon Downs has racing in November and Vernon Downs has even raced in January and February. I don t think Mr. Spector has any intention of having a race meet. SIMULCAST CONFERENCE OPENS The International Simulcast Conference, co-sponsored by HTA, the TRA, the AQHA and AGTOA, opened yesterday with a panel reviewing a recently released report on declining purses and track commission in thoroughbred racing. The meeting, which is being held in Miami, continues today with, among other topics, a report on measuring handle produced by churn. In addition, the annual award for the industry s best simulcast production will be presented at a luncheon sponsored by Magna Entertainment Corp.