Sad News

[Tom]

In its infinite wisdom, the NYS Racing and Wagering Board has denied Vernon Downs a racing license!
They cite Vernon's history of losing money as the reason.
So now, here sits Vernon, brand-spankin' new slot casino ready to open, plans for increased racing this spring, and now everytihing in on hold. No racing, no slots.
With the goose that laid the golden egg ready help Vernon make tons of money, pay off old debts, create new jobs, the NYSR&WB pull the plug.
What lunacy.

[PaceAdvantage]

I thought the reason was that the new owner has a checkered past??

[Figman]

PA,
It is far worse than "checkered!" Scott and his "friends" have had serious problems in South Carolina, New Mexico, Nevada, Louisiana, Maine and New York. I attended the Racing Commission meeting in Albany on Friday. There were not enough seats for all the people in attendance. The Commission backed up every charge they had in impressive fashion, especially the audio-visual presentation of where the latest money borrowed was used.

It is not logical that Vernon Downs borrows $23 million in 2003 and had to pay $9 million of that $23 million in fees, loan points, prepaid interest and other borrowing costs, netting $14 million, little of which, about $3 million went into building the as yet unopened VLT facility and a couple of thousand into the racetrack maintenance. The rest went back to associates of the lender and to pay bills outstanding. And how about this? The track lawyer made the statement that the track has a price tag and is worth $45 million. Yet just a couple of months ago Shawn Scott lent his mother about $500,000 and she exercised warrants to gain controlling interest in this publicly traded company known as Mid-State Raceway and is now holding 51% of the stock. Everyone else's holdings were diluted. Scott lent his mother the money and is now holding her stock as collateral for the loan! Does this compute? This is a publicly traded company with over 500 stockholders and according to one who spoke at the NY Commission meeting, Mid-State Raceway has not had a stockholders meeting in many yearsand the stockholders did not empower this current management, Shawn Scott did. Scott incidentally, owns only 4% of the stock yet has placed 7 or 8 people on the board of directors that allows him to have control over that board. Where is the Securities and Exchange Commission in enforcing their rules to protect the investing public? Of course no one protects the horseplayer and now a track that has been financially pillaged and raped is closed!

[Tom]

Originally posted by PaceAdvantage
I thought the reason was that the new owner has a checkered past??

That is probably the real reason.
But tell that to all the people now without jobs.
Frankly, the state of New York has a "checkered present" but that doesn't seem to matter.

[JustRalph]

Doesn't sound like a "publicly traded company" to me.

If it is public.........what's the stock ticker symbol?

[Figman]

http://tinyurl.com/yrpzr

[JustRalph]

Thanks Fig

I bet it is at 3 bucks a share by Wednesday

[Tom]

Heard today Vernon Downs will reopen and the slots facility is a go. No details, but they are saving a Syracuse paper for me withthe article-I'll pick it up Thursday and see what happene dto change things.

[Exactaman]

Originally posted by Tom
Heard today Vernon Downs will reopen and the slots facility is a go. No details, but they are saving a Syracuse paper for me withthe article-I'll pick it up Thursday and see what happene dto change things.

yes, in fact this is s state law, every year vernon cannot get its license renewed until it is denied and until the backroom negotiations are completed.

[Tom]

Originally posted by Exactaman
yes, in fact this is s state law, every year vernon cannot get its license renewed until it is denied and until the backroom negotiations are completed.

Explains why they are late with the state budget every year for the last 19 years!