New York Franchise Award Recommendation May Come Nov. 21 [Archive] - Page 6 - Horse Racing Forum - PaceAdvantage.Com

Indulto

01-02-2009, 02:36 AM

Ron is the poster who started this thread several years ago.

http://www.nyra.com/aqueduct/stories/Jan012009.shtml (http://www.nyra.com/aqueduct/stories/Jan012009.shtml)
New York State Racing Board Mandates New Ticket Cashing Policy
By John Lee January 1, 2009… The New York Racing Association strongly opposed this new rule when it was circulated for industry comments and continues to oppose the rule as fundamentally bad public policy, because it will not remedy any material harm that can be articulated and it will therefore needlessly damage the business of the state's pari-mutuel facilities.

“The New York Racing Association is the industry leader in integrity based on its anti-money laundering policies, its race day security barns, and its refusal to do business with unregulated off-shore rebate shops,” said NYRA President and CEO Charles Hayward. “However, this rule is not about integrity; it is further inconveniencing the customer who is fortunate enough to have placed a winning wager. No other state in the country punishes its customers for holding on to a winning ticket for more than 10 days. Given the current state of the industry and the economy in general, this new ruling could not have come at a worse time.”http://www.nydailynews.com/sports/more_sports/2008/12/31/2008-12-31_the_day_at_the_races.html (http://www.nydailynews.com/sports/more_sports/2008/12/31/2008-12-31_the_day_at_the_races.html)
The Day at the Races
By Jerry Bossert… "This rule is designed to protect the wagering public," said NYSRWB spokesman Joe Mahoney "We believe the vast majority of pari-mutuel workers are very trustworthy individuals. Having this rule will create a new barrier for unscrupulous activity, reduce the temptation for harvesting uncashed tickets and keep honest workers honest."

… Plus, what is the state going to do with all the information collected from people. They say the winnings aren't going to be reported to the IRS unless it is a legit tax ticket. Protecting your social security number is a top priority nowadays with identity theft, and the last thing anybody wants to do is give it out unnecessarily.

… I'm sure the state thought it was doing a better job of protecting the sport, but it clearly has overreacted.

Give reasons for people to wager on racing, not keep them away.http://www.thoroughbredtimes.com/national-news/2008/December/31/NYRA-opposes-new-rule-on-cashing-winning-tickets.aspx (http://www.thoroughbredtimes.com/national-news/2008/December/31/NYRA-opposes-new-rule-on-cashing-winning-tickets.aspx)
NYRA opposes new rule on cashing winning tickets
by Frank Angst December 31, 2008 … The rule will allow such tickets to be cashed by mail as long as the required information is provided and the pari-mutuel outlet maintains such a service.

The rule also calls for the pari-mutuel manager to provide, upon request by the racing and wagering board, a list of the outstanding pari-mutuel tickets cashed the previous day, each outstanding ticket or a photocopy of that ticket, and the required player information. http://cristblog.drf.com/crist/2009/01/first-foolish-rule-of-2009.html (http://cristblog.drf.com/crist/2009/01/first-foolish-rule-of-2009.html)
First Foolish Rule of 2009
by Steven Crist Jan 1, 2009Click here –
Download 9 NYCRR section 5100 19 (http://cristblog.drf.com/files/9-nycrr-section-5100-19.pdf)
-- for the new rule released on New Year's Eve by the New York State Racing and Wagering Board, mandating that if you wait more than 10 days to cash a parimutuel ticket worth $300 or more, you have to cough up your name, address, date of birth and Social Security number to get your money.

The rule is intended to address the theoretical possibility that unscrupulous insiders could validate uncashed tickets. This is not known to be an actual problem, and the remedy imposes an unreasonable burden on a customer who places a bet on his way out of the track and comes back two weeks later expecting to cash it. Something like 90 days and $5,000 would have been more appropriate threshholds if such a measure were needed at all.

Indulto

01-02-2009, 03:58 PM

http://paulmoranattheraces.blogspot.com/2009/01/belmont-neighbors-say-no-to-vlts.html (http://paulmoranattheraces.blogspot.com/2009/01/belmont-neighbors-say-no-to-vlts.html)
Belmont neighbors: Say no to VLTs
The Locustwood/ Gotham Civic Association Friday, January 2, 2009… Government should not be in a practice of promoting the sale of cigarettes to promote revenue, as they should not be doing that with VLTs, especially to minors as has been done in the past. More kids today gamble than are involved with drugs, smoking or drinking, according to Jeff Derevensky, a psychology professor at McGill University in Montreal. One reason: They are growing up with a message that wagering is acceptable. "Today's 10-year-old will spend their entire life in a world in which gambling is sanctioned and owned by the government," he says.

We can thank some of our state representatives for that. While New York State may receive some financial benefit because of expanding gambling, the social and economic burden will fall on the community. Counties that have gambling facilities have bankruptcy rates go up by over 18%. Small business around casinos often close due to financial loses, and there is a degradation of quality of jobs, and the local work force and their opportunities for self-growth.

Ultimately, the result to the local community is another mandated cost. Social costs are staggering after a few years a VLT operator opens. The cost to the local community is $13,000 to $22,000 for each problem gambler. Taken into account the average of problem gamblers generated by VLTS across the nation, it will cost the hamlet of Elmont $14.43 million to $57.72 million a year, to cover the social costs of VLTs alone.

… Horse racing as a sport, in order for its long term survival cannot rely on a band-aid, but rather an extensive remodeling of its product design. …

Indulto

01-05-2009, 11:43 AM

… Yes, Indulto, suggesting that NYRA somehow let down horseplayers because the NYS Racing and Wagering board passed this mindboggling rule can only be one of two things....either blind hatred of NYRA or stupidity. Sorry....but it is what it is. But, the fact, yeah it's a fact, that you specifically left out NYRA's position from the press release is glaringly obvious.Yes, tlg, I did leave out NYRA’s position which was to distance itself from the decision rather than explain who speciifically articulated NYRA's position to which State representatives, the reason they were overruled and who specifically overruled them. Until such information could be obtained, I concentrated on the end result. Did I initially not take your concerns about that seriously? No, because for some reason you pounced like a wolverine on a molehill in order to make a mountain of it.Here's the thing, you started this thread,No, that was Ron.and continued it, to provide information on the Franchise battle. And, as has been said repeatedly, you did a tremendous job. However, one would think in doing so it was an attempt to allow people the opportunity to try to somehow find some truth among the many half-truths that were bandied about during this episode.Thank you, tlg, for that accurate assessment of my intentions, and for your own contributions toward that objective.However, unfortunately, now that it's over, you somehow seem to have lost your way. You now ignore the facts about the relationship between OTB and NY State politicians and the manner that the NYS Racing and Wagering board operates. Instead, you somehow blame NYRA for their decisions while it is obvious that many of these are beyond NYRA's control, as is specifically evidenced by this recent episode. They also opposed the takeout increase publically. These are facts.Once again, NYRA tried to distance themselves from a decision without identifying who on their staff presented what arguments to whom from the State and why those arguments were rejected.Are you now suggesting they have said one thing publically and another behind the scenes?No, the problem is we don’t know what is going on behind the scenes; only that the result is undesirable. If not, then how are you determining that they have a hand in these decisions which could be deemed detrimental to a struggling industry?Old NYRA would repeat the “our hands are tied” mantra and then continue down a path to disaster they accurately predicted. New NYRA’s lyrics are the same. Aren't you the slightest bit concerned the result might be the same? How did Barry Schwartz get takeout lowered? What were his arguments that were heeded at the time? What is they position of each NYRA board member on this issue, particularly the new ones? If NYRA is serious about presenting themselves as a friend of the customer, they have to become more transparent.The internet is a funny place, as it allows people to behave in manners that they most likely would not in face to face situations, and I see this on a daily basis.DoesIs your own cyber-behavior always always serve as an acceptable model for others?I spend my days at Aqueduct, where much of my time is spent talking to our customers, and the contrasts between those interactions and the kinds I find on the internet are more than a little interesting.Do you think your on-track customers would respond well to your on-line persona?I am very glad that I have chosen to work in this industry that I love, and I am grateful to have the opportunity, as regardless of my board credit here,Indeed you are fortunate to have access to the inner workings of the industry so many of us are curious about in a job you enjoy.I am very comfortable that having even the opportunity to make it better is vastly more important than any pettiness here.Making it better will require you to be just as critical in the assessment of your employer’s performance as you are of posters here. You have the benefit of knowing how others view your employer and should be able to help make then aware of their deficiencies as well as their strengths. This is no time to be a corporate “yes man”

Since we both appear to have a common goal of somehow influencing NYRA to provide a higher level of customer service than it has in the past, then perhaps this thread can continue to be of use. I’ve noticed that there are sometimes more than 300 views between consecutive posts which I think demonstrates unusual interest in NYRA’s relationship with State politics and agencies. There is no reason it can’t convey positive developments as well as negative ones, if you are so inclined.

Indulto

01-07-2009, 06:59 PM

Hey tlg,
I just noticed that since my last post, at least another 300 viewers are awaiting your reply to it. I hope the following quote extraction meets with your approval:

http://www.thoroughbredtimes.com/national-news/2009/January/07/New-York-governor-reviewing-economic-development-report.aspx (http://www.thoroughbredtimes.com/national-news/2009/January/07/New-York-governor-reviewing-economic-development-report.aspx)

N.Y. governor reviews economic report
by Paul Post January 07, 2009A report on Belmont Park’s economic development potential has been forwarded to New York Governor David Paterson, who is reviewing the study’s recommendations.

… The Belmont task force was co-chaired by New York State Racing and Wagering Board Chairman John Sabini and Marisa Lago, president and chief executive officer of Empire State Development Corporation.

“The reason I was involved was to ensure that racing’s interests are protected,” Sabini said.

The report was delivered to Paterson in late December, Sabini said.

… New Senate Majority Leader Malcolm Smith (D-Queens), who was sworn in on Wednesday, also supports the idea but Assembly Speaker Sheldon Silver (D-Manhattan) has strongly opposed Belmont gaming.

Democrats control the state's executive branch and both legislative houses for the first time in more than 40 years. …

Indulto

01-08-2009, 12:38 AM

http://www.drf.com/news/article/100917.html
OTB says $15M payment would break bank
By Matt Hegarty 1/7/2009A recent court ruling that requires New York City Off Track Betting Corp. to make $15 million in payments to two state harness tracks is threatening the solvency of the state-owned company, officials of the OTB corporation said Wednesday

… New York City OTB has, by far, the biggest liability of the OTBs, with $15 million owed to harness tracks in Monticello and Yonkers. But officials of New York City OTB said on Wednesday that they have not determined how they will make the court-ordered payments to the racetracks and horsemen.

… Block said that the only recourse for New York City OTB may be to go to the legislature to seek an amendment to the racing law that would reduce the obligations of the OTB companies to the harness industry. New York City OTB, the single largest bet-taker in the country, was taken over by the state in 2008 after New York City Mayor Michael Bloomberg threatened to shutter the operation unless the company received financial help from the state.

… Legal representatives of the harness tracks and harness horsemen have already sent letters to the New York State Racing and Wagering Board asking the agency to force the OTBs to make the payments. The board has not yet responded, according to the officials.

Joe Mahoney, a spokesman for the board, said he could not comment on the matter except to say that the board members are "reviewing our options."

… If the board does not issue an enforcement order, Faraldo said the horsemen are prepared to go to court to seek a declaratory judgment that would force New York City OTB into bankruptcy if it continues to contend that it cannot make the payments.If the state had made those changes earlier, they might not have had to take over NYCOTB.

On the other hand, bankruptcy court protection allowed NYRA to retain their franchise.

Indulto

01-09-2009, 12:15 PM

238 more views in under 24 hours and the little yes guy is still a “Noshow Man.” Surely, tlg, you can see the demand for your presence is overwhelming.

With apologies to the Beatles:

He’s a real Little Guy
Sitting with his Racing Form
Helping NYRA weather the storm
Of criticism

Always has a point of view
Always more correct than you
Little Guy, are you ever wrong
At all

Little Guy, please listen
You need to stop all this pissin
This board is not at your command

He’s as blind to NYRA’s faults
Dancing in step to Albany’s waltz
Little Guy, can you see the folly in this
At all

Won’t upset the applecart
Won’t disturb the status quo
Listens only to players willing to go
To Aqueduct

Little Guy, please worry
If things don’t change in a hurry
There’ll be nobody left to scurry
To the betting windows

He’s a real Little Guy
Ready to get right in your face
If you say NYRA’s out of place
On anything

OTM Al

01-09-2009, 12:45 PM

I don't think this is really called for. We all know what he does and mocking is not a productive form of discussion.

Indulto

01-09-2009, 12:54 PM

I don't think this is really called for. We all know what he does and mocking is not a productive form of discussion.OA,
You are right.

toetoe

01-09-2009, 03:13 PM

Decent essay at verse, as slapdash efforts go, and based on a musical mediocrity.

Maybe just an original batch of poesy would be better. :) .

Indulto

01-09-2009, 03:46 PM

Decent essay at verse, as slapdash efforts go, and based on a musical mediocrity.

Maybe just an original batch of poesy would be better. :) .tt,
It's true that my career as a lyricist will never reach the heights of our own Falconrige and Betchatoo. Nor will the verse in question stimulate the hilarity of a toetoe tapdance or a visual smackeral from the large mackeral. But to refer to any Beatles' creation as mediocore is sufficient provocation for me to go back and compose another response to your uncalled for mockery of musicdom's most magnificent mopheads. Indeed, Sir, I will not rest until your smile is larger than your slur.

toetoe

01-09-2009, 06:16 PM

Wow, betchatoo, eh ? I'll look for him on Robin Leach's new rattletrap of a Polish travelogue period piece vehicle, Danzig With the Tsars.

You say slur, I say diphthong --- let's call it toff. :)

Mr. Moonlight ? I'm fine with it. Something and Come Together ? That's bad stuff. I'm talking UB-40-, Steve Miller-, Lynyrd Skinhead-bad. BAAAAD. :eek: . :) .

tribecaagent

01-09-2009, 08:25 PM

Indulto

01-09-2009, 11:59 PM

Indulto,

Do you not have anything better to do? Your obsession with TLG is obvious. This is trash and I think you need to get a life.Thank you for your review. If you thought so little of it, however, why did you quote it in its entirety; thereby further exposing it to anyone who has placed me on ignore. Your efforts are much appreciated.Go to nyra.com and click on "talking horses". TLG's selections are there every day.

I suppose that I just knocked future prices down a few pegs....:DI hadn't noticed you before, so I didn't realize that you were a beneficiary of tlg's selection prowess. I also admire your hero's ability to pick winners, just not his tendency to pick fights on-line.

But none of us is perfect. ;)

toetoe

01-10-2009, 01:15 PM

Indulto

01-10-2009, 08:27 PM

My old pal Indulto
Used verse as a tool to
Parade, indeed bandy
Harsh words for Li'l Andy.

While far be it from me
('Twould ruin my tummy)
To make an obsession
Of Indy's aggression,

I still pray he'll see fit
(When I see, I'll believe it ;) )
To hold off from bomb'n 'im
With volleys ad hom'nem.

So now, with this outing
All o'er but the shouting,
I advise wise Indulto:
"You're still muito culto."Wow, toe, you sure know how to take the wind out of a blowhard's sails. If you're prepared to go from bad to verse, I must reverse.;)

I was able to determine that "muito culto" is Portugese, but my inexperienced use of the Google translator yielded "serial killer." Was that your intent, or just a happy coincidence in finding the elusive rhyme to Indulto? :D

toetoe

01-11-2009, 01:19 PM

Highly dosed with culchah, Sir, connoting a state of dignified wellroundedness heretofore unseen, with the possible exception of Juliana Paes's bunda. :jump: .

Indulto

01-11-2009, 05:47 PM

Highly dosed with culchah, Sir, connoting a state of dignified wellroundedness heretofore unseen, with the possible exception of Juliana Paes's bunda. :jump: .Uncovering Ms. Paes's wellroundness revealed a voice as appealing as her appearance. While I couldn't understand a word of her culture, had a governor whose last name also started with "Pa" sounded like that, our election results might have been reversed as well. ;)

It wouldn't require a high dose of Frankensense to detect the agenda of any potential Senate suitor who would seat her bunda in the rotunda.:lol:

toetoe

01-11-2009, 07:22 PM

Can you imagine the cloture ? :jump:

Yer makin' much frankin' sense, Padre. I have half a mind to de-myrrh.

Speaking of which ... in a pinch, some of our boardmates could help out at Benediction. Ya know --- as censers. ;) .

PaceAdvantage

01-11-2009, 11:09 PM

What's that sound? Oh right...it's the air being sucked right out of this monster thread...oh well...Indulto gave it life....I suppose Indulto has the right to kill it in Indulto's own little way.

Indulto

01-12-2009, 02:26 AM

What's that sound? Oh right...it's the air being sucked right out of this monster thread...oh well...Indulto gave it life....I suppose Indulto has the right to kill it in Indulto's own little way.PA,
This thread isn’t dead unless you decide to make it so. We are currently enjoying a temporary diversion in support of creative expression following a rejection of tlgs’ role as self-appointed moderator in which he determines what content is appropriate, poster intelligence, and whether discussions he participates in should disappear without explanation.

I’m prepared to re-introduce content related to the political aspect of the New York racing franchise as soon as it becomes available. Hopefully tlg will also continue to do so. This thread has survived previous clashes of our personalities and egos, and continued on with a wider audience. I expect that phenomenon to continue, particularly as tlg seems to be lionized if not idolized in some other threads as a result of unsympathetic treatment of his cyber-eccentricities here.

Indeed, his popularity seems to increase with my own eccentric contributions to his legend.:D

PaceAdvantage

01-12-2009, 05:30 PM

toetoe

01-12-2009, 05:52 PM

Sirs,

Despite my ignorance, nay, nescience of matters N.Y.R.A., I have endeavored to step up to the plate and take the bull by the horns ... literally, man. Moreover, I have intended to put my best key forward, all the while predacting, dacting, redacting ... hell, even pterodacting my output.

Apologies in advance, should I forget to remember to hit <DELETE.>

Indulto

01-13-2009, 04:30 AM

You're beingselective. TLG has gotten his share of crap over the years on this board (believe it or not, from people other than you).

To his credit, he's mostly resisted the temptation to wrestle in the mud with those folks who have an axe to grind with people who are fortunate enough to get into the racing public eye.

I'm not closing this thread, but I believe you are doing a disservice by continuing down this non-productive path.I applaud your decision to not close this thread.

I don't understand what you mean by selective.

I don't know if you are including me in the bolded category above, but I want to make it clear that no-one else who is "fortunate enough to get into the racing public eye" that I have had the pleasure of interacting with on this board, has responded with such arrogance and hostility; and repeatedly so in this thread, from which the previous recent encounter of a similar nature was removed.

My own responses in this thread have been based only on the content supplied by my opposition in this thread. I respect your opinion that things are not progressing as objectively as in the past, but I believe I would be doing a greater disservice by either ignoring -- or submitting to -- what I regard as a pattern of intimidation and discrediting.

I don't deny that my methods for dealing with such opposition are unorthodox, but that's what picking one's own winners is all about.

Indulto

01-13-2009, 08:47 AM

http://www.troyrecord.com/articles/2009/01/12/sports/horseracing/doc496c276033436357883087.txt (http://www.troyrecord.com/articles/2009/01/12/sports/horseracing/doc496c276033436357883087.txt)
It's on us
By Nick Kling January 13, 2009… Horseplayers are scratching their collective heads about a recent New York State Racing and Wagering Board (NYSRWB) rule which forces them to surrender sensitive personal information, including their social security number, when cashing a mutuel ticker worth $300 or more and over ten days old. A Texas rule regarding these so-called outstanding tickers requires nothing more than the wagering facility provide a list of such tickets cashed each day, and a photocopy to be made if the ticket is cashed by a mutuel clerk.

… Capital Off-Track Betting will soon remove handicapping charts from the walls of many branches. Should bettors have their own past performances, or should OTB be expected to provide them?

Now, your first reaction might be, why haven't regulators changed these rules, and why haven't racetracks and OTBs pressed them for change. It must be their fault, right?

Wrong. The blame lies with us -- you and I.

When Tom Amello and I asked Trackfacts viewers to send the NYSRWB letters regarding issues horseplayers want addressed, we requested the writer send us a copy. We received exactly one. Apparently other players didn't provide us with a copy, or failed to act. I'd bet money -- and give odds -- it was the latter.

… one thing I know for sure is nothing will happen if we don't try. Nor will a lone voice or two like mine have much impact. Government and racetrack officials care far more about a well-constructed opinion from a private citizen than anything from the racing media.

If you want change, are unhappy with the status quo, or have a strong feeling on any subject related to Thoroughbred racing, it's on you. Let someone know how you feel. Demand they send you a reply.

… As fans and customers, we have a right to pari-mutuel life, the liberty to make the wagers we want, on the races we want, and the pursuit of horseplaying happiness. We won't get any of those without effort.

If you contact someone in racing, please send me a copy at …

PaceAdvantage

01-13-2009, 06:45 PM

I don't understand what you mean by selective.Certainly I mean as applied to this line of yours:

"tlg seems to be lionized if not idolized"

Indulto

01-21-2009, 02:19 AM

http://www.troyrecord.com/articles/2009/01/19/sports/horseracing/doc4975620491259522270108.txt
NYRA? Cool?
By Nick Kling January 20, 2009The New York Racing Association (NYRA) has been in existence for more than five decades. For most of that period, it has been the embodiment of conservatism, reflecting the nature of Thoroughbred racing.

… Recently, however, NYRA has begun to exhibit signs it is trying to connect with younger people, as well as its core clientèle.

If you go to its internet home page, www.nyra.com (http://www.nyra.com/), you will discover a pantheon of banners promoting a variety of web pages and links.

The place to start is with NYRA's Youtube channel (www.youtube.com/nyravideo (http://www.youtube.com/nyravideo)). ...
… Other series on NYRA's Youtube channel are Trips and Traps, NYRA Jockey Video Cards, and a collection of NYRA stakes races.

The stakes segment includes several of recent vintage, as well as some from the classic era of New York racing.

Trips and Traps is a weekly program hosted by NYRA morning linemaker Eric Donovan and handicapper Andy Serling. Each week's edition is divided into two segments, apparently a requirement of uploading video to Youtube.

Donovan and Serling provide fans with visual analysis of horses who might come back to run well at a price, and others who could be overbet off trouble more illusory than real. Whether you agree with their assessments or not, it is an interesting show.

… So, if NYRA is hooking up with the in-crowd, what's next — President Charley Hayward donning a muscle shirt to show off his tatts?Perhaps some interviews with willing Pick Six winners would generate additional enthusiasm.

Indulto

01-21-2009, 03:03 AM

http://gregcalabrese.blogspot.com/2009/01/customer-service-improvements-at.html (http://gregcalabrese.blogspot.com/2009/01/customer-service-improvements-at.html)
Customer Service Improvements At Aqueduct
By Power Cap 20 January 2009… It looks like NYRA is on the right track with the introduction of the new VIP club for players that bet a modest amount. After years of disconnect between management and the patrons, slowly a relation is building between NYRA and its patrons.

… Opening a VIP club at a New York race track is not as easy as it looks. NYRA had proposed this VIP club within the track years ago but the NYSRWB blocked it over and over again (http://www.dailygazette.com/news/2008/sep/30/0930_nyra_proposals/) to protect the government interests at OTB. Now that the club has finally been approved it is a step in the right direction for racetrack customer service. This shows that NYRA cares about customer service and is willing to fight against government corruption to ensure that it is taking care of their customers.

… The modest improvements NYRA has made to the room is a new floor, new decor, a free continental breakfast buffet and dozens of workstations where the players have their own dedicated monitor/wagering terminal. With just modest improvements and a host controlling access NYRA has created the best place to play horses in the area. It is comfortable, you can drink all the coffee you can handle and there is a TV in front of you that allows bets up to when the latch pops on any race in the country.

… Most people that become a member of the NYRA VIP room will be inclined to become dedicated NYRA rewards horseplayers. This is the edge that the brick and mortar joints should exploit. Internet ADW's can not set up a VIP room in their patrons homes. A racetrack can do a physical stroking while the ADW is a distant entity far away. There are lights at the end of the racing tunnel.

Indulto

01-23-2009, 02:42 AM

http://www.drf.com/news/article/101220.html (http://www.drf.com/news/article/101220.html)
NYRA sees handle decline on year
By David Grening1/22/2009… According to numbers provided by NYRA, all-sources handle on NYRA races dropped 2.1 percent in 2008 to $2,489,276,587. The all-sources daily average wagering on NYRA races fell 3.7 percent from 2007 to $9,997,095. There were 249 racing days in 2008 compared with 245 in 2007.

Total ontrack handle on NYRA races in 2008 dropped 3.4 percent to $299,704,487. The daily average of $1,203,632 was down 5.1 percent from the 2007 average.

… "However, despite the decline in handle, NYRA outperformed the industry as a whole in 2008.''

… According to Equibase, nationwide wagering on Thoroughbred racing fell 7.2 percent in 2008.http://www.drf.com/news/article/101183.html (http://www.drf.com/news/article/101183.html)
Financial chief leaves NYRA
By David Grening1/21/2009The chief financial officer for the New York Racing Association, Irene Posio, has left that position, NYRA confirmed Wednesday. The circumstances of her departure were unclear, and no replacement has been named.

… Posio was named NYRA's controller in April 2004. In August 2005, she was promoted to the combined post of vice president, treasurer, and controller and then in October 2005 to CFO, …New NYRA Board decision?

OTM Al

01-23-2009, 07:01 PM

Joe Bruno has been indicted on federal corruption charges of using his office to defraud New Yorkers for 10 years....my only thought was "Only 10?"

Indulto

01-24-2009, 12:37 AM

http://timesunion.com/AspStories/story.asp?storyID=762888 (http://timesunion.com/AspStories/story.asp?storyID=762888)
Bruno indicted
Grand jurors accuse Bruno of trading power for money
By BRENDAN J. LYONS AND JAMES M. ODATO January 23, 2009A federal grand jury today indicted former state Senate Majority Leader Joseph L. Bruno on felony charges alleging he used his elected position to extract $3.2 million in private consulting fees from clients who sought to use his influence.

A defiant Bruno, who is the sole person charged in the 8-count indictment, criticized the U.S. Attorney's office and an ''overzealous'' FBI for conducting what Bruno characterized as a ''politicized'' criminal investigation of his business dealings. During a brief news conference following his appearance in front of a federal magistrate, Bruno vowed to go to trial and fight the charges as he accused federal authorities of conducting ''a three-year fishing expedition that . . . stinks.''

… A gauntlet of federal law enforcement officials from the Department of Justice, Internal Revenue Service and the Department of Labor explained their work following Bruno's brief court appearance, saying they joined forces three years ago and unearthed a series of questionable deals dating back 15 years in which the former senator enriched himself at the expense of state taxpayers.

Acting U.S. Attorney Andrew T. Baxter and FBI Special Agent-in-charge John Pikus said New York's ''byzantine'' legislative structure made the investigation difficult because so many political decisions, including bills and spending measures, are made behind closed doors.

The indictment outlines a series of deals and business arrangements dating back to 1993 in which Bruno made money from companies or individuals who had an interest in state government, or profited as a ''consultant'' for steering labor unions, which rely heavily on state government contracts, to invest in companies that were paying Bruno hundreds of thousands of dollars. The charges also delve into Bruno's penchant for race horses and several shadowy financial deals tied to the thoroughbred industry.

But it was Bruno's relationship with a Connecticut investment firm and his efforts to steer New York labor union leaders to invest their pension funds there that brought him the most private wealth, more than $2 million, according to the charges.

… the indictment alleges Bruno improperly exploited his official position and concealed conflicts of interest, contrary to state ethics and reporting laws, with respect to his private 'consulting' business,'' Baxter said. …Much more in the article including actual indictment counts.

http://www.nytimes.com/2009/01/24/nyregion/24bruno.html?ref=nyregion (http://www.nytimes.com/2009/01/24/nyregion/24bruno.html?ref=nyregion)
Ex-Senate Leader Bruno Is Indicted for Corruption
By MIKE MCINTIRE and JEREMY W. PETERS January 23, 2009… In an eight-count indictment, federal prosecutors accused Mr. Bruno of collecting more than $3 million over a 13-year period, beginning in 1993, from a handful of companies seeking contracts and grants with the state, as well as contracts to manage pension fund investments for at least 16 labor unions. In addition to receiving cash payments disguised as consulting fees, he also had undisclosed interests in a race horse partnership and in a computer software firm that had contracts with state agencies, according to the indictment.

… It was an inglorious turn for a politician who had fashioned himself as a champion of ordinary taxpayers and was for 14 years one of the three most powerful men in state government, able to foil governors, kill legislation, influence state contracts, direct state grants and open doors for lobbyists.

… “After being hounded for three years, I am being indicted on a prosecutor’s sleight of hand,” Mr. Bruno, a former boxer, said, his voice growing louder. “I’ve been a fighter. And I don’t plan on changing now.”

… “There is a frightening message to all elected officials who are not wealthy and who have to work to make a living,” Mr. Bruno said Friday. “You, too, can become target practice with a statute that can infer, insinuate and imply because they can’t find the facts to make a criminal case.” …http://www.nydailynews.com/blogs/dailypolitics/2009/01/a-bruno-naysayer-vindicated.html (http://www.nydailynews.com/blogs/dailypolitics/2009/01/a-bruno-naysayer-vindicated.html)
A Bruno Naysayer Vindicated
By Elizabeth Benjamin January 23, 2009Sen. John Bonacic, the only Republican to call for Joe Bruno to give up his leadership post after he revealed he was the target of an FBI investigation, says the former senate majority leader's indictment on public corruption charges is more proof (as if more was really needed) that the top-down power structure in Albany needs reform.

… The indictment and alleged behavior of Senator Bruno was only possible, however because of the near dictatorial power enjoyed by Legislative Leaders in New York State,” Bonacic said.

“Under the Rules, which the Senate and Assembly operate, the Speaker and Majority Leader can take untold sums of money from special interests under the guise of providing legitimate services. …

… "It simply shouldn’t take an indictment and trial to know what else the people who control the Senate and Assembly do for a living.”

“… Senator Bruno’s indictment serves as a clarion call to open up the process, eliminate the questions, and empower rank and file members to more ably serve our constituents regardless of political party or challenge to the leadership.”

Indulto

02-08-2009, 03:20 PM

http://www.buffalonews.com/cityregion/story/571076.html (http://www.buffalonews.com/cityregion/story/571076.html)
Delaware North racetrack deal still not closed
Buffalo firm, state lagging on Aqueduct
By Tom Precious 02/06/09… Four months after being selected to run a massive casino at a New York City racetrack, Delaware North of Buffalo has still not closed the deal with the state, leaving some state officials worried that delays could derail the project.

… Delaware North and the Paterson administration said the issues are being resolved, albeit slowly. But each day the casino is not open, the state is losing an estimated $1 million in revenue-sharing payments, officials estimate.

… But Delaware North officials said Thursday that there are several issues still to be resolved with the state and that because of the nation’s financial crisis, the company has to “restructure” its $370 million financing deal for the project.

… Delaware North officials said they are not prepared to sign a memorandum of understanding with the Paterson administration — a measure required before the $370 million can flow to Albany and ground can be broken on the project — until several issues are resolved.

“There’s 2 and one half pages of outstanding items that need to be checked off,” Bissett said. “We’re working as fast as we can with the governor’s office and the agencies involved to get there.”

… Other hurdles left to be resolved, according to Bissett, include obtaining state and local environmental and transportation clearances for the project, and working with the New York Racing Association, which runs the track, on leasing language for the casino, which would feature 4,500 slot machines.

… Pheffer said that there are concerns in her community that the project is in trouble. She noted that a previous casino deal at Aqueduct, with MGM Mirage, fell apart. And now, she said, the timeline for a final deal with Delaware North appears off-track.

She complained that neither the governor’s office nor Delaware North is being specific about the issues. “I’ve been asking and asking,” she said. “I’m not getting any answers.”http://www.bloodhorse.com/horse-racing/articles/49104/issues-delaying-vlt-casino-at-aqueduct (http://www.bloodhorse.com/horse-racing/articles/49104/issues-delaying-vlt-casino-at-aqueduct)
Issues Delaying VLT Casino at Aqueduct
By Tom Precious February 7, 2009… The delay is causing some angst within the New York Racing Association, among horsemen, the Queens neighborhood around the track, and mostly the deficit-ridden state, which is relying on Delaware North’s $370-million winning bid for the casino. The money will not come until a memorandum of understanding is signed, and several key matters are outstanding.

Bissett .. said there are also environmental reviews not yet completed, and talks are under way with the state to provide some “market protection" for Delaware North in the event, as Gov. David Paterson is proposing, the state moves to permit a casino at nearby Belmont Park. And the state, which owns the land at Aqueduct, has still not finalized a $250-million bond to finance the casino’s construction.

“That needs to be adopted so we have some comfort," Bissett said of the higher vendor fees Delaware North wants if Belmont brings new competition.

.. state officials Feb. 6 disputed Delaware North's claims that any borrowing delay for the construction is holding up the project. Jeffrey Gordon, a spokesman for Paterson's budget division, said $250 million in cash already is set aside for the project.

"It can be used now," Gordon said. "We don't have to borrow money to do this."

The state anticipates providing the cash for the construction, then borrowing to reimburse the state for the cash expense. But Gordon noted that transaction is down the road and has no impact on Delaware North's ability to proceed with construction. …http://www.timesunion.com/AspStories/story.asp?storyID=765957&category=REGION (http://www.timesunion.com/AspStories/story.asp?storyID=765957&category=REGION)
'Gift' horse proves valuable to Bruno
By JAMES M. ODATO February 2, 2009… For his part, Bruno is fighting the indictment with gusto. He called the probe unfair, and sent out a memo to employees at his new company, CMA Consulting in Latham, that said in part, "If there was ever a time to be righteously indignant, that time is now."

Bruno joined the firm, which is flush with state contracts, in July after leaving the Senate. One of his first orders of business as CMA's CEO was to negotiate a lease for a jet, a person familiar with the firm's operations said. …

Indulto

02-10-2009, 03:17 PM

http://timesunion.com/AspStories/story.asp?storyID=768533
Not exactly tall in the saddle
Horse farm owned by investor damaged in scandal to go on sale
By DENNIS YUSKO February 10, 2009… One of the most prestigious horse farms in New York could hit the selling block in the coming months, sources said Monday, after the farm's hedge fund owner lost billions in Bernard Madoff's alleged investment scheme.

Jeffrey Tucker, founding partner of the Connecticut investment firm the Fairfield Greenwich Group, is shopping for a real estate agent in the Saratoga Springs area to unload his 188-acre Stonebridge Farm in Schuylerville and a 230-acre satellite farm in Gansevoort, according to a local broker.

… In December, Dennis Brida, manager at Stonebridge, confirmed that Tucker had ceased all construction on the farms and would sell his two dozen horses stabled there.

… Tucker is a prominent horseman and chairman of the horse racing group Empire Racing. He built an indoor arena, the first track in New York with a synthetic racing surface and multiple homes on Stonebridge Farm.

Its sale would come as several Fairfield Greenwich clients threaten to sue the company for allegedly failing to watch after their investments that were "fed" to Madoff.

Fairfield Greenwich has reported that it invested approximately $7.5 billion of its $14.1 billion in assets with Bernard L. Madoff Investment Securities. It made money by charging clients a 1 percent management fee plus 20 percent of the fund's profit, according to reports. Brida is Executive VP of Racing Operations and Industry Relations of Empire Racing Assoc., former executive director of New York Thoroughbred Breeders, and former president of the New York Thoroughbred Horsemen's Association.

Indulto

02-15-2009, 05:18 AM

http://leftatthegate.blogspot.com/2009/02/cut-crap.html (http://leftatthegate.blogspot.com/2009/02/cut-crap.html)
Thursday, February 12, 2009
Cut the Crap… As you may recall, Skelos originally objected to the selection of Delaware North back when he, still the Majority Leader, had a chance to actually do something about it. You may recall that Democrats accused him of costing the state $1 million a day, and even posted a calculator. Skelos instead quickly gave in, allowing ex-State Senator Serph Maltese to take credit for getting a better deal for the community in a failed attempt to boost his campaign hopes.

Governor Paterson said of the failure thus far to finalize an MOU:

“We knew and pointed out that the MOU process would be about six months.....We’re right on time.”

… But that statement is a load of crap ...

… The opening paragraph of the press release issued by the governor's office announcing the deal asserted that Delaware North "will look to break ground on the new facility in Queens by early 2009." There was never even a mention of an MOU at that point; and if it was going to take six months to agree on one, then breaking ground wouldn't occur until the spring at the earliest. So we are not "right on time" Mr. Governor.

… Sadly, there have been a number of occasions on which Paterson's truthfulness has been questioned. So his credibility in this matter is shaky. By claiming that the project is "right on time," his respect for our intelligence is non-existent.… Comments:

Anonymous said... … It is easy to betroth enormous non-viable upfront payments, to glossy eyed pollies, if you never intend to forfil the financial obligation, thus, among other murky reasons, you eliminate opposing bidders, then move the goal posts, in re-negotiating Terms & Conditions in this case, the State of NY..

If DN did lie, then its lies have cost over 4 months of delays, at a sumly cost, of over $1.0 million lost revenue, per day.

In my money, this amounts of over $120 million and counting, so far !!

Will Governor Paterson and Attorney General Andrew Cuomo, now seek legal re-course against DN, for the loss of this money to the State, of which the NY racing sector and Queens community, must also receive a goodly share? … 7:26 AMAnonymous said... When an agreement can't be closed with a vendor like Dealware North, do what the private business world would do and discard that group, then go to the list of underbidders to find a solution. …

… Are we being held hostage in Queens because of "things" totally unrelated to the Aqueduct transaction, something of utmost importance to the community and the state's horse industry?

Delaware North's time is up. Please take the lead Governor David Paterson, reselect a gaming operator based purely on ability to get the job done, not some quid pro quo bargain struck inside the bowels of Albany's mysterious capitol building. 9:28 AMAnonymous said... … "Delaware North is a New York company, and I am delighted that we could help enusre that they stay here for a long time to come. This development is about sound investment in our State, which is critical at a time when our economy is reeling," said Governor Paterson. "Delaware North employs thousands of New Yorkers, from Buffalo, across Upstate and in New York City. Smart Investment is when we put faith in those that have put their faith in New York State."

Read between the lines to understand why Paterson is having a hard time throwing DelNorth out the door. The bid was meant to be what's best for Aqueduct, not to guarantee DelNorth's NY tenancy. 11:57 AMAnonymous said... … "I was ready to make the decision in July 2008, Paterson said this week. "Had I done so in July, in concert with the Assembly speaker, who was ready, and the Senate majority leader, who was not--which is probably why he is now the former majority leader--we would already be done at this point." MEOW Governor and way to change the subject away from DelNorth's unresolved issues.

Compare Paterson's recent rheotoric to remarks made in early May 2008 "that an Aqueduct Racetrack gaming operator should be named within two weeks," followed up by comments made by former Senate Majority leader Joseph L. Bruno's team on May 2, 2008: "Working with the governor and the Assembly, we expect to be able to make a selection by Tuesday May 6," said Scott Reif, a spokesman for Bruno.

What happened to the May 2008 deal, as based on what you read, the parties were ready to decide back then? 3:44 PM

Spendabuck85

02-23-2009, 07:25 PM

http://timesunion.com/AspStories/story.asp?storyID=772988
A state panel is recommending a racino and hotel be built at Belmont Park race track in Nassau County as a means of job development and revenue generation for the state.

The plan would come with repercussions, and is far from a done deal. State Assembly Speaker Sheldon Silver and many members of his conference are unsupportive of allowing Belmont to compete with Aqueduct for video lottery terminal customers. Also, the operators of the proposed Aqueduct VLT racino in Queens must be granted a greater share of VLT revenues if Belmont gets a racino. Under the deal in which Delaware North agreed to build the racino at Aqueduct, the Buffalo-based gaming company was assured a greater fee if Belmont gets a racino, too.

Indulto

02-25-2009, 05:32 AM

http://www.empire.state.ny.us/Belmont/default.asp (http://www.empire.state.ny.us/Belmont/default.asp)

Belmont Park Redevelopment Study

Study final report - December 2008* (this large document has been divided into subsections for easier downloading)

Part 1 (http://www.empire.state.ny.us/pdf/Belmont/BELMONT0-12.pdf)
Part 2 (http://www.empire.state.ny.us/pdf/Belmont/BELMONT13-18.pdf)
Part 3 (http://www.empire.state.ny.us/pdf/Belmont/BELMONT19-24.pdf)

Part 4 (http://www.empire.state.ny.us/pdf/Belmont/BELMONT25-38.pdf)
Part 5 (http://www.empire.state.ny.us/pdf/Belmont/BELMONT39-43.pdf)
Part 6 (http://www.empire.state.ny.us/pdf/Belmont/BELMONT44-55.pdf)

Bruddah

02-25-2009, 06:42 AM

OTM Al

02-25-2009, 10:01 AM

I have read this thread from front to back and it looks like New York racing is being kidnapped by several crooks. All fighting over who gets the ransom. It's a GAWD awful mess. Political greed has absolutely ruined this country, not to mention what used to be the best racing in the country.

I think we need to throw out all those in power now and start over from scratch. We sure as hell couldn't screw things up any worse than they are now. (JMHO) Sad state of affairs. :(

So at long last you have figured out what New York residents have known for some time, that New York politicians are not only some of the most corrupt in the US but probably are the most unabashed about it. I commented to the wife the first time I was in Albany that it didn't smell nearly as bad as I expected it to. Racing is just another golden goose for them and as such politicos will do, they are doing their best to kill it.

Indulto

02-26-2009, 03:21 PM

http://www.newsday.com/news/opinion/ny-vpbel266049400feb26,0,7198527.story (http://www.newsday.com/news/opinion/ny-vpbel266049400feb26,0,7198527.story)
Can LI win this race?
Stakes high for Belmont development
EDITORIAL February 26, 2009New York State keeps going around and around the track trying to make a winner of Belmont Park, but it never quite gets to the finish line. A new development study for this prime real estate is on the right course, but the only safe bet in this race is for Albany to approve gambling there.

Restoring the grandeur of Belmont Park and revitalizing the surrounding Elmont community can't happen without a new business model. Horse racing can't do it alone. The state's new analysis notes that the track's grandstand is longer in length than the Empire State Building is tall, but it is only filled once a year, for the Belmont Stakes.

… Our view is that the eight acres adjacent to the grandstand should be used for the racino and a hotel, and the 28-acre parcel that sits across from Hempstead Avenue should be complementary retail development. The state, which acquired clear title to the land just last year, should resist the temptation to sell off the larger parcel just to get some quick money to plug budget holes.

… Could it be the need to protect patronage jobs for Queens Democrats at Aqueduct, where Silver did permit a racino? Could the fear of VLTs at Belmont be the reason why the winning bidder for the Aqueduct racino still hasn't closed on its deal? ...OK, the state owns the land, but shouldn’t anything constructed on that land be generating revenue to maintain the racing operation?

OTM Al

02-26-2009, 05:04 PM

I'm not sure they care about the racing per se. They just as always want a piece of whatever they can get. I expect the fact that they now own the land to be used as a hammer over the heads of management whenever they please.

Indulto

03-01-2009, 02:27 AM

http://leftatthegate.blogspot.com/2009/02/shakeup-good-for-gov-bad-for-horsemen.html (http://leftatthegate.blogspot.com/2009/02/shakeup-good-for-gov-bad-for-horsemen.html)
Friday, February 27, 2009
Shakeup Good For Gov, Bad For Horsemen… Paterson's position is, first of all, overly simplistic in its assumption that two racinos necessarily equals twice the revenue. Worse for the industry, if I'm understanding him correctly, the governor is basically fixing the amount of revenue that horsemen "need" in his view. That would be a dangerous precedent, one which would no doubt be applied in the event that racino gaming ever expands to table games. Would he, or his successor, then claim that the percentages could be cut even further because the horsemen don't "need" the extra revenue that such games would presumably generate? And how about Delaware North....why do they "need" the extra money as opposed to the horsemen?http://www.antonnews.com/floralparkdispatch/2009/02/27/news/ (http://www.antonnews.com/floralparkdispatch/2009/02/27/news/)
Empty Parking Lots at Belmont Could See Improvements
VLTs, Hotel, Retail Space All Part of Transformation
By Carisa GiardinoFebruary 27, 2009… Floral Park Mayor Phil Guarnieri believes the 54-page report is a good first step in a lengthy process. "While my views on the inadvisability of government promoting gambling remain unchanged, and although I am bemused that at a time when households need to build up savings and banks are starving for deposits, that we would encourage a habit of personal profligacy over husbandry, I am nonetheless gratified by some real positives regarding this development," he said.

… "We are also pleased that our elected officials have recognized the need to have dialogue with the neighboring communities and have been attentive to the safety and security issues that were outlined in the Floral Park Statement of Principles," Mayor Guarnieri added.

… Assemblyman Tom Alfano echoed the mayor's remarks, calling the proposal a turning point for Elmont and Floral Park that will mean "jobs, jobs, jobs" and a "sure fire way" to cut property taxes for homeowners.

… The assemblyman said he does not support the senior housing component included in Option 3 for Site B. "We have enough senior housing in the area. What I want to focus all of our efforts on is creating jobs and lowering taxes on homeowners," he said.

… Senator Craig Johnson, who equates the redevelopment study to the "first leg of a new race for Belmont," said the redevelopment options are a "good first step" in an effort to transform Belmont into an economic engine for its neighbors.

… He remains cautious, however. "Let's be clear: This is only a first step toward making Belmont the first-class destination that it could be. This process should move as quickly as possible, but it has to be done correctly - and the affected communities need to be involved every step of the way," Senator Johnson added.

… Senate Majority Leader Malcolm Smith, who is working with Senator Johnson to maximize the project's economic benefits through the creation of a local community advisory board, added, "As we rebuild our state's economy, it is great news that a redevelopment project for Belmont Park is under way because the immediate result is the creation of new jobs and the stabilizing of our tax base. However, the long-term benefits are the best news, as this development attracts thousands of new visitors every year who contribute to the state and local economy."

… Senator Dean Skelos, a vocal proponent of VLTs at Belmont, said time is of the essence. "We have to move now on these proposals and we can't allow this process to get bogged down like Aqueduct. Time is of the essence. Let's get to work."

Home of the third jewel in racing's Triple Crown, Belmont Park has been a successful horseracing venue for more than a century. "But, its full development potential has never been realized," New York State Racing and Wagering Board (RWB) Chairman John Sabini said. "With this study of development options, we are reawakening this sleeping giant of a state, and community, asset. …

Indulto

03-06-2009, 07:21 PM

http://www.antonnews.com/floralparkdispatch/2009/03/06/opinion/ (http://www.antonnews.com/floralparkdispatch/2009/03/06/opinion/)
Belmont, Hempstead Turnpike Are Separate Projects
By Assemblyman Tom Alfano… Over the past year, I have been very involved with the issues surrounding redevelopment of Belmont and the lands that are part of the track. …

… I was the first state leader to go to Belmont with a delegation of community leaders to assess the opportunities Belmont had for Elmont, South Floral Park and Floral Park. Those community leaders were: CCC President Joyce Stowe, Parkhurst Civic Association President Cheryl Lee, CCC Executive Board Member Chet Collins, Elmont East End Civic Association President Patrick Nicolosi and NYS Assembly Racing and Wagering ranking member Assemblyman Bob Barra.

During that tour, I discussed some of the options that I believed were available for the track and the research process I thought was necessary to make an informed decision on how to make our dreams reality. It was at this time when the idea of development, a hotel, video lottery terminals (VLTs) and retail shopping were discussed with NYRA President Charles Heyward. It was at that meeting where all concerned were enthusiastic about the prospects of transforming that area and exploring all viable options. Our focus was to create jobs, promote economic development and cut property taxes for homeowners.

What is important to realize is that the redevelopment of Belmont is separate and apart from the Elmont Coalition for Sustainable Development's efforts on Hempstead Turnpike. The Belmont plan is not part of the coalition's charge and was not part of the visioning plan. Belmont is state land and development at the site must go through a request for proposal (RFP) process as well as environmental and feasibility studies.

The Belmont plan does not address Hempstead Turnpike and will not address Hempstead Turnpike in its plan. Hempstead Turnpike's plan is under the umbrella of the coalition led by community leaders working with the Town of Hempstead. …http://www.troyrecord.com/articles/2009/03/05/news/doc49b01b6fad018946490958.txt (http://www.troyrecord.com/articles/2009/03/05/news/doc49b01b6fad018946490958.txt)
Lawyers for Bruno group annouced
By James V. Franco March 5, 2009… Co-Chairman of the coalition, Stephen Coffey said, “After three years of rigorous pursuit by a platoon of federal investigators, the best the prosecutors can conjure against Joseph Bruno is presumption of a legal nuance, theft of honest services. We find this charge puzzling. This prosecution is unwise, unwarranted and untimely unwinnable. We can only describe this indictment as a curious construct that compels a far closer examination.”

Co-Chairman E. Stewart Jones, Jr. stated, “There has been much head scratching throughout the legal community in the wake of this indictment. Senator Bruno called it a legal nuance wrapped in a perception. We think he was being very kind. ‘Theft of honest service’ is the most porous use of language ever crafted. Based on its free fall application, even prosecutors across America who casually withhold evidence would be charged with this violation. No wonder legal scholars are looking at this disturbing abuse of the law.” …Sounds as if the first attorney is more an alliterator than a litigator. ;)

http://www.bloodhorse.com/horse-racing/articles/49477/ny-lawmakers-trying-to-halt-takeout-rise?id=49477 (http://www.bloodhorse.com/horse-racing/articles/49477/ny-lawmakers-trying-to-halt-takeout-rise?id=49477)
NY Lawmakers Trying to Halt Takeout Rise
By Tom Precious March 4, 2009New York lawmakers are rushing to halt a 1% takeout increase on out-of-state pari-mutuel wagers before a law kicks in next week authorizing the higher levels.

… Officials say it could create chaos for the OTBs and tracks with the out-of-state venues, upsetting existing simulcast contracts and possibly setting off retaliation against New York races simulcast in other states.

The Assembly passed the measure March 2 to keep the takeout levels at their current levels and the legislation has now moved through two Senate committees and is heading to the floor for a full vote.

… "The proposal to increase the takeout was part of a package of suggested actions constructed to prevent New York City OTB from closing down. The package was not enacted. Accordingly, these provisions are no longer necessary,’’ states a memo by the bill’s sponsor, Assembly Racing Committee Chairman Gary Pretlow, accompanying the Assembly bill.Wonder what Pretlow’s role was in implementing the increase in the first place?

Indulto

03-11-2009, 09:21 PM

http://cityroom.blogs.nytimes.com/2009/03/10/aqueduct-casino-deal-collapses/ (http://cityroom.blogs.nytimes.com/2009/03/10/aqueduct-casino-deal-collapses/)
Aqueduct Casino Deal Collapses
By Danny HakimMarch 10, 2009… Scratch those plans for the first casino on a subway line. Plans to build a casino at the Aqueduct racetrack have collapsed, the latest victim of the financial turmoil that has stilled the credit markets. Delaware North, the Buffalo Company that was contracted to build and operate the casino, has not been able to get the financing to raise $370 million it was due to pay the state.

That leaves the state with yet another hole to plug in its ever leakier budget.“Since our bid was submitted in October 2007, there has been a deterioration of the credit and equity financial markets in this recession economy which has caused Aqueduct Gaming L.L.C. to restructure the timing for its financial offer,” said William J. Bissett, president of Delaware North.

The company had said it could come up with the money, but not on the timetable that had been agreed upon. The state is expected to re-bid the contract. …http://www.thoroughbredtimes.com/national-news/2009/March/10/Delaware-North-backs-out-of-Aqueduct-racino-deal.aspx (http://www.thoroughbredtimes.com/national-news/2009/March/10/Delaware-North-backs-out-of-Aqueduct-racino-deal.aspx)
Delaware North backs out of Aqueduct racino deal
by Paul Post March 10, 2009… New York Racing Association is currently operating with the $30-million it received last September, when it was awarded a new 25-year franchise. That was supposed to keep Aqueduct, Belmont Park, and Saratoga Race Course running until the VLTs are operational.

Now, it is highly doubtful that a racino will even get started this year.

"NYRA can't exist without VLTs," said Edward Bogdan III, a lobbyist for Saratoga Springs-based New York Thoroughbred Breeders Inc. "They're going to have to come back to the state [for more money]."

But with a projected $14-billion deficit, the state does not have anything left to give.

… In addition to financial problems, Delaware North was also upset by Paterson's recent call for VLTs at Belmont, in addition to Aqueduct. The firm said it wanted a higher share of Aqueduct gaming revenues, because of the threat of competition from Belmont.

Now, it would be almost impossible to expect racino construction at either track to begin this year. …http://www.bloodhorse.com/horse-racing/articles/49590/ny-breeders-expedite-aqueduct-vlt-plan?id=49590&source=rss
NY Breeders: Expedite Aqueduct VLT Plan
By Tom LaMarra March 11, 2009The New York Thoroughbred Breeders, disturbed by a delay in a plan for thousands of video lottery terminals at Aqueduct, called the situation “inexplicable” and said Gov. David Paterson should put the project on “war footing.”

On March 10, Delaware North, which won the bid for the Aqueduct gaming facility, said it couldn’t meet the deadline for a $370-million franchise fee. A Paterson spokesman said the governor could ask the state legislature to seek a new operator.

“Nearly eight years ago, state government approved legislation that would allow video gaming at Aqueduct with the appreciation that it would generate a million dollars a day for the state treasury,” NYTB executive director Jeffrey Cannizzo said in a March 11 statement. “During the eight years of protracted negotiation, New York taxpayers have lost more than $2.5 billion dollars in potential revenue. Now, with Wall Street in meltdown, sales tax revenue at historic lows, and a state deficit of staggering proportions, the continued delay in installing VLT is unfathomable.”

… The NYTB cited reports from economists who say the horse racing and breeding industry in New York has an annual impact of $4.8 billion, with related goods and services valued at $2.4 billion.

… The three New York Racing Association tracks--Aqueduct, Belmont Park, and Saratoga--are the only tracks in the state without VLTs.http://www.drf.com/news/article/102168.html (http://www.drf.com/news/article/102168.html)
Aqueduct casino stalled
By David Grening3/11/2009It's back to square one for the Aqueduct racino.

… The governor's office has said that it now must reopen the bidding for the project, but did not give a timetable for when that process would begin.

"In cooperation with the legislature, we will commence a new process for selection of the operator for the Video Lottery Terminal facility at Aqueduct Racetrack," the governor said in a press release.

Charles Hayward, president and CEO of the New York Racing Association, which operates Aqueduct, said he was "disappointed" with the latest developments, but added "I'm optimistic the governor's office has good people on the case and that something will get done sooner rather than later." …http://www.timesunion.com/AspStories/story.asp?storyID=778561&category=REGION (http://www.timesunion.com/AspStories/story.asp?storyID=778561&category=REGION)
Losing bet on Queens racino
Bidder can't produce $370M cash; back to square one for Aqueduct
By JAMES M. ODATO March 11, 2009… The Delaware North announcement, later confirmed by Paterson's press office, left the governor trying to figure out where the state would get $370 million expected by March 31 and who will develop the Queens track. The governor planned to rebid the contract.

… Paterson's press office said the state remains committed to building a racino at Aqueduct. Despite winning the bid in October, Delaware North had been unable to complete the deal. It had maintained that the financing was secured, but needed other approvals. Paterson's aides had said the delays were the result of the deal's complexity.

One competitor, Karl O'Farrell, of Capital Play, said his group still wants to bid and can meet its bid terms — $100 million up front and $400 million to build the facility.http://www.drf.com/news/article/102188.html (http://www.drf.com/news/article/102188.html)
NYRA calm about VLT delay
By David Grening 3/11/2009Despite yet another delay in the anxiously awaited Aqueduct video-lottery terminal project, New York Racing Association officials say the lack of revenue from that facility won't affect its ability to conduct live racing for at least the next 18 months.

… "I think we'll be fine through the third quarter of next year," Charles Hayward, NYRA's president and chief executive officer, said in a phone interview on Wednesday. "We expect to be cash-flow positive by end of the year even in a down market. I don't think there is any risk for New York racing."

Hayward said the only impact the slots delay could have on NYRA is that some capital improvement projects may have to be deferred or postponed. Hayward said NYRA has $26 million of the $30 million it was given by the state as part of the new franchise agreement that went into effect last fall.

… Delaware North officials say they plan to be part of the new bidding process.

"While we disagree with their conclusion that a re-bid is necessary, we nonetheless remain interested in developing Aqueduct and look forward to continue [to] work with [the] administration to achieve that goal," Bissett said.

… Representatives from both SL Green and Mohegan Sun on Wednesday expressed interest in getting involved in the new bidding process.

"We felt strongly that our original Aqueduct proposal was superior to the others, and we were very surprised that the project was not awarded to us," a spokesman for SL Green said in a press release. "We are still interested in developing the Aqueduct project and we look forward to seeing what the state has in mind if the project is to be rebid."

Jeff Hartmann, the chief operating officer for Mohegan Sun, said in a press release, "We are confident that a Mohegan Sun managed facility will create much needed jobs and revenue for the Queens community, and we can develop Aqueduct as a world-class entertainment destination, generating millions of tax dollars for the State of New York."

Hayward said that NYRA would not look to partner with another company to build the casino. …

Indulto

03-12-2009, 03:10 PM

http://www.bloodhorse.com/horse-racing/articles/49600/ny-officials-scramble-for-aqueduct-bids (http://www.bloodhorse.com/horse-racing/articles/49600/ny-officials-scramble-for-aqueduct-bids)
NY Officials Scramble for Aqueduct Bids
By Tom Precious March 12, 2009… Gov. David Paterson said he expects to move quickly to resolve the situation – made worse by the fact that the developments blow a new $370 million hole in the state’s already shaky finances from the franchise fee payment that Delaware North will not be making by what had been a March 31 deadline.

“I think that because the other deals were ready to go … that it won’t take long for us to create another process and reach another carrier,’’ Paterson said.

… The deal was made last October with Paterson, but the sides were still negotiating a memorandum of understanding. The Buffalo company blamed the recession and current credit and equity market problems for its inability to raise the cash. It offered to keep the same payments on the table, but asked the state to delay the terms. Paterson, fearing litigation, balked and said he will re-bid the entire project.

… Senate Majority Leader Malcolm Smith, a Queens Democrat who would have to approve any deal, along with Paterson and the head of the Assembly, said he wants to see a “swift process’’ to get the long-awaited casino open. The track was first approved for a casino in 2001.

“I would like to see the governor issue an RFP (request for proposal) or go back to the former bidders and see if they are willing to come back and revisit their numbers, because obviously the numbers have changed over time, but I am hopeful that we can move that quickly,’’ he said.

Some state officials fear that the government, in re-bidding the project, will get far less attractive offers than submitted a year ago by bidders – in part because the current economic slide has changed the financial dynamics of any casino project such as Aqueduct’s. Atlantic City casinos, for instance, on the same day Delaware North’s project ended reported a major drop in business in 2008 over the previous year.

… “We’re disappointed by this development, but given this economy we do understand Delaware North’s position. Right now we’re reaching out to the governor’s office to learn more about the situation. We remain optimistic that progress will be made on this important project,’’ Hayward added.http://leftatthegate.blogspot.com/2009/03/now-what.html (http://leftatthegate.blogspot.com/2009/03/now-what.html)
Thursday, March 12, 2009
Now What?... All three of the original bidders for the Aqueduct racino expressed interest in the project in the wake of the collapse of the Delaware North deal. But chances are that they will be more restrained in their enthu$iasm at this point in time. Delware North tersely warned that the state had made a mistake.

… In a press release, SL Green, one of the losing bidders, said:

"We were fully capitalized and, if we had been given the go-ahead when originally scheduled, the VLT facility would already be up and running today and delivering revenue to the state."

That would mean that the racino would have been completed within five months; a highly dubious assertion which casts doubt on the veracity of the statement, including the 'we were fully capitalized' claim. Doesn't mean they would be now even if they were. Though the company said that their original proposal was "superior to the others," they plainly declined to commit to the same.

… Governor Paterson said that he wanted to make the decision last July, but political squabbles delayed that. But taking a look at my archives for that month, as late as July 21, Paterson said: "We now started to discuss a process by which we pick a winner." On July 24, a Paterson spokesman said "I wouldn't put a timetable on it." So this seems to me like another case of the governor not being forthcoming on this particular issue. …Comments:
... Steve Zorn said...… could you expect the barons of Albany to give the contract to a combination of Injuns and furriners?

How much of a no-brainer could this be? $1 million a day for the state once the machine are up and running. Maybe there'd even be enough in there to subsidize the LIRR train to Belmont?

Meanwhile, most trainers are broke, backstretch workers are getting paid less as a result of the ill-informed State Labor Department investigation, and NY breeders are going out of business. Thanks, Albany.http://www.zwire.com/site/news.cfm?newsid=20278892&BRD=2731&PAG=461&dept_id=574908&rfi=6 (http://www.zwire.com/site/news.cfm?newsid=20278892&BRD=2731&PAG=461&dept_id=574908&rfi=6)
Plans to create a ‘racino’ at Aqueduct collapse
by Lee Landor, Editor 03/12/2009… After questioning last month by Assemblywoman Audrey Pheffer (D-Ozone Park) about the delayed start date for the project, Delaware North claimed that once paperwork with the state was finalized, construction would begin.

Pheffer remained concerned and worried that rumors regarding the company’s inability to raise the funds were true. The Assemblywoman watched for seven years as plan after plan to renovate Aqueduct failed to come to fruition.

Although she feared another collapse this time around, she and the community, remained hopeful that the deal would finally put an end to the nearly decade-long battle they fought to fix up the track.

“Delaware North was never our first choice,” Pheffer said in a statement Wednesday. “There were others that not only had a better working relationship with our community, but also had a more fiscally viable project. Delaware North was chosen for their promise to pay $370 million up front, and they have lost the deal because of their inability to live up to that commitment.”

… In a phone interview, Pheffer said she hopes Paterson will reconsider the state’s decision to re-bid, and instead review the proposals of the two other companies that were originally considered for the franchise, SL Green Realty Corp. and Capital Play Limited.

... “I look forward to immediately beginning the process to find a new developer and will work to ensure that community concerns and inputs are included in the process,” state Sen. Joseph Addabbo Jr. said.

Indulto

03-13-2009, 01:40 PM

http://www.troyrecord.com/articles/2009/03/13/sports/horseracing/doc49b9ed2ea9498530813292.txt (http://www.troyrecord.com/articles/2009/03/13/sports/horseracing/doc49b9ed2ea9498530813292.txt)
Eight is not enough
By Nick Kling March 13, 2009… The failure to complete the project is not solely the fault of Delaware North, Paterson, or any other single entity. Since the 2001 legislation was passed authorizing VLTs at Aqueduct, New York has had three Governors, three State Senate Majority Leaders, one Assembly Speaker, dozens of State Senators and Assembly representatives, several different combinations of New York Racing Association NYRA) officers and Trustees, and a variety of other influential racing stake holders.

… Remember — eight other New York racetracks were approved for VLTs, completed construction, and have been operating for several years. The inability of our so-called leadership to land the biggest financial prizes of all, Aqueduct and New York City, is a reflection on the worst elements of the New York political system. Time and again during the eight-year process, dysfunction delayed the VLT project.

… Albany insiders claimed Pataki held a deep enmity for NYRA and did not want the association to profit from the expected revenue bonanza.

Spitzer replaced Pataki as Governor in 2007 and awarded NYRA the franchise to continue racing in New York. However, that decision ran into stern opposition from then Senate Majority Leader Joseph Bruno. Racing franchise negotiations dragged on for months and the VLT Racino was held hostage.

Later, the Racino was uncoupled from the racing franchise, then awarded to Delaware North by Paterson after he replaced Spitzer, who was disgraced by scandal. Along the way, several other politicians, NYRA officials, and business leaders, had their fingers in the now-contaminated pie.

… Even if NYRA and New York horsemen avoid purse declines caused by dropping wagering handle at in-state tracks, the industry will still be negatively affected.

… I am more pessimistic than Hayward. Running a VLT operation is practically a license to print money. Only Magna Entertainment, the one entity to rival New York's political process for the title of most dysfunctional operation in the nation, has not done well with the machines.

The fact that Delaware North, with a track record of VLT operation, was unable to complete financing for the Aqueduct project, begs a question. Why is any other group more likely to succeed? …COMMENTS
SaratogaJim wrote… What does that say about the confidence level of investors when it comes to doing business with this state? It's not like there isn't money out there, because there is. It just isn't being thrown around without caution any more.

Wouldn't it have been a hoot if Magna had gotten the franchise? I forget who was Frank Stronach's bag man locally - some SOP (son of politician) or some Speaker's aide from the past - I lose track of all the sleazy players after a while - but that would have been the only worse scenario than what we have now.

This all wears on you, or at least it does me. The constant need to defend this sport from the mismanagement, corruption and indictments, the track surfaces, the breakdowns and the medication controversies sometimes seems more than it's worth, and it's times like this when I start to believe that it might be better in the long run to step back and let the sport just die so we can pick up the pieces and start again fresh. …http://www.saratogian.com/articles/2009/03/12/sports/doc49b88950a7e27118787566.txt (http://www.saratogian.com/articles/2009/03/12/sports/doc49b88950a7e27118787566.txt)
New York politicians drop the ball — again
By MICHAEL VEITCHMarch 12, 2009The fallout from the New York state screw-up on alternative gaming at New York Racing Association tracks is going to hit Saratoga Springs hard.

Albany politicians have stonewalled the Aqueduct VLT project for seven years, motivated by a small-minded dislike of thoroughbred racing rooted in institutional ignorance.

This attitude was on display during the recent franchise review process, a fraudulent exercise that revealed the arrogance of elected officials when it came to NYRA’s former ownership of Aqueduct, Belmont and Saratoga racetracks.

New York state now owns the crown jewel of Saratoga Springs, the oldest extant thoroughbred track in the United States.

Makes you feel good, doesn’t it? Hey, the state is paying its property taxes on time, right? What’s that you say? They’re not? Heavens, who would have thought such a thing?

As this is being written, farm owners in Saratoga County are considering reducing their expenditures in breeding and racing, or getting out altogether with this latest — and perhaps most devastating — shelving of potential revenue from VLTs at Aqueduct.

… What bothers me most about this development is that insiders knew this was coming a long time ago.

The up-front payment of $370 million from Delaware North, required to get the project going, was known to be in trouble several months ago as the national economy began to slide.

New York Gov. David Paterson selected Delaware North to run the Aqueduct VLT project last October.

Just a couple months later, Gov. Paterson quietly removed that figure from his budget, signaling to insiders that trouble was brewing.

Wouldn’t you think that elected officials would scramble to come up with an alternative

plan? How about a temporary VLT floor at Aqueduct, one that would get up and running within weeks and provide some sort of assessment as to whether or nor there would in fact be a solid revenue stream?

Such a move would at least show that the state was interested in keeping the project afloat, and send a notice to those with investments in breeding and racing that someone in government cares.

… I might add that, unlike projects that take several years to yield a return to the state, VLT’s begin producing revenue in rapid order.

Delaware North’s work at Saratoga Gaming and Raceway is proof. …http://www.saratogian.com/articles/2009/03/12/news/doc49b872d1202de801944041.txt (http://www.saratogian.com/articles/2009/03/12/news/doc49b872d1202de801944041.txt)
Groups push for speedy selection process
By PAUL POST March 12, 2009… "The light at the end of the tunnel just went dark," said Rick Violette, a prominent trainer and New York Thoroughbred Horsemen’s Association president. "The impact is catastrophic for us. I’m sure it’s going to affect purses at Belmont and Saratoga.

"We’re in crisis stage here."

During the past year, only four new stallions have come to New York compared to 20 in Pennsylvania, where slots are already up and running. The thoroughbred industry has a $5 billion impact on the state’s economy with thousands of jobs at stake in addition to numerous farms and green space.

Aqueduct’s video lottery terminals would have boosted purses at all three New York Racing Association tracks — Saratoga, Belmont and Aqueduct. The purse structure determines how much owners and trainers are paid.

Violette said there’s already a $100 million gap between what it costs New York trainers to conduct business and the amount of purse money available.

"To once again have this carrot disappear, which had been dangling in front of us, is extremely frustrating," he said. …http://www.saratogian.com/articles/2009/03/12/news/doc49b86c7a8dbf6910861593.txt (http://www.saratogian.com/articles/2009/03/12/news/doc49b86c7a8dbf6910861593.txt)
Collapse of Aqueduct deal heightens financial worries
By PAUL POST March 12, 2009… "VLTs are going to be antiquated by the time we get them," said Gary Contessa, a leading New York thoroughbred trainer. "This doesn’t only affect horsemen. It affects a lot of people. This is money that school children in the state of New York have been beaten out of with all this nonsense. I can’t believe we’re back to square one.

"It’s unbelievably depressing."

… "They can’t take another three years," Contessa said. "We’ve got to get it done."

Hall of Fame trainer Nick Zito concisely echoed that statement: "Whatever it takes."

… "The racino is clearly an assumption underlying the franchise agreement," spokesman John Lee said. "The splits of the revenue derived from the VLTs were delineated in the agreement and were a significant element of the franchise negotiations." …Comments
… Horseman wrote" WHY on earth are 10% of the proceeds of the Aqueduct VLT slated to pay lottery costs?? Let the lottery pay for itself! The lottery pulls in enough money to pay for itself!! Use that 10% to reduce owner/trainer costs and fees and maybe it will encouraged bled-dry owners and trainers to keep investing in this sport! "

Indulto

03-20-2009, 06:43 PM

http://www.zwire.com/site/news.cfm?newsid=20283318&BRD=2731&PAG=461&dept_id=574905&rfi=6 (http://www.zwire.com/site/news.cfm?newsid=20283318&BRD=2731&PAG=461&dept_id=574905&rfi=6)
Belmont now eyed for redevelopment, gaming
by Willow Belden 03/19/2009Aqueduct isn’t the only racetrack that’s in the running for a facelift.

… Nothing is definite yet; the study simply lays out plans that would be feasible for 63 acres of what is considered underutilized space in Belmont Park. “We looked at the properties available and we outlined what could be uses for sites that weren’t required for the continuing operation of the racetrack,” said John Sabini, chairman of the Racing and Wagering Board.

… New York’s Franchise Oversight Board, which monitors the New York Racing Association, is expected to issue a Request for Proposals from potential developers this fall, and the state Legislature will consider a request to allow video lottery terminals at Belmont.

Sabini said the redevelopment at Belmont would not affect renovation plans for Aqueduct, even though the two racetracks are within 10 miles of each other.

… Some Ozone Park residents are worried that Belmont may steal Aqueduct’s thunder because there may not be enough demand for two racinos in such close proximity, and area officials want to see the track in Queens upgraded first.

“I believe there could be gaming at both [racetracks] if both are vastly different,” said state Senator Joe Addabbo Jr. (D-Howard Beach). “But to some extent, revenue will be lost from either if they’re both gaming sites. One has to exist first before they can both coexist. ... Let Aqueduct thrive first.”

Elizabeth Braton, chairwoman of Community Board 10, … said she doesn’t want the state to approve VLTs at Belmont “until after Aqueduct is up and running for enough of a time period to get a feeling for what the revenue to the state would be and the effect on the community would be.”

… State Assemblywoman Audrey Pheffer (D-Ozone Park), who has been pushing for the Aqueduct renovations, said there’s no need to get paranoid about the video lottery issue. In order for a racino to be opened at Belmont, the Assembly would have to pass a law allowing VLTs there, and Pheffer said that isn’t likely to happen.

Sabini said he is confident the New York market could handle two VLT sites if the Assembly did approve them for Belmont, … “The community, particularly in Elmont, was very focused on this before we even got there,” Sabini said. “They had a visioning plan for what they wanted to see; we used this as a jumping off point.

… But some people who live near Belmont — on both the Queens and Nassau County sides of the border — aren’t so excited about the plans, according to Richard Hellenbrecht, the chairman of Community Board 13. “Many of the people are resistant to that kind of development because it will significantly increase the traffic and change the use of the property,” Hellenbrecht said. …http://leftatthegate.blogspot.com/2009/03/aqueduct-first.html
Friday, March 20, 2009
Aqueduct First… we'll likely see inner track racing throughout March every year until NYRA is able to fix the main track, which needs a new base. And that won't happen until and if the slots start running. No developments of course as the governor and … Sheldon Silver and Malcolm Smith concentrate on not getting anything done about the budget behind closed doors.

… I certainly agree that slots at Belmont would doom our beloved track in Ozone Park. I've always argued that a racino location at Belmont makes more sense in a lot of ways. And in the event that, in what I agree with Ms. Pheffer is a highly unlikely scenario, Belmont would get built first, the Long Island Railroad would start ferrying patrons from Manhattan, and it would become plainly clear that there would be no need for a second racino, in Queens.

… meanwhile, Governor Paterson and Smith show little in the way of leadership, unable to deliver the "majority" they worked so hard to achieve.http://www.saratogian.com/articles/2009/03/18/news/doc49c0577d9cb85190883727.txt (http://www.saratogian.com/articles/2009/03/18/news/doc49c0577d9cb85190883727.txt)
Mayor urges state action on VLT revenue
By ANDREW J. BERNSTEIN March 18, 2009… no one disputes that thoroughbred racing is a huge economic engine in upstate.

But the engine is now in need of a tune-up that only Albany can provide — and Mayor Scott Johnson and other area leaders are calling for action now.

… "With the overlay of the economic downturn, is it any wonder things have now fallen apart and the New York racing industry may be faced with going back to square one, to re-bid the entire process at this late date?" Johnson asked.

He also said he planned to seek support from eight other counties that are effected by the racing franchise: Albany, Columbia, Greene, Montgomery, Rensselaer, Schenectady, Warren and Washington.

"All (told), the economic impact annually to our region is calculated to be between $186 million and $213 million, with additional impact to roughly 3,000 jobs created here and expansion in the local breeding industry. Therefore, the stakes of endangering racing cannot be overstated," Johnson said.

Arthur Johnson, chairman of the Saratoga County Board of Supervisors, added that the county would join the city government in lobbying the state.

… Charlie Hayward, CEO and President of NYRA, said that time is of the essence.

"The state’s interest and NYRA’s are clearly aligned as we both need the funds from the VLT operations ASAP," he said, adding that he had no comment on what next steps he thought the state should take.

State Sen. Roy McDonald, of Saratoga, said the legislature had been blindsided by Delaware North’s announcement last week.

… He said he hoped to work with the legislature to resolve the VLT issue quickly.

"We don’t have to reinvent the wheel. Whether we’re going to restructure or re-bid, let’s just get it done," McDonald said. "I’m glad that the City Council and mayor are pushing for this, and I hope to see the Board of Supervisors do the same."Comments
… wallace wrote" Last week Hayward said the NYRA has enough money to get through the 3rd quarter of 2010. This week, the NYRA needs the VLT funds "a.s.a.p." so what is the truth concerning the racing operator and why the doublespeak? "… No More POTSHOTS wrote" The mess with the VLT franchise rests with the NYS legislature and those New York City politicians who control it not with our local politicians.

… They treat upstate as a backward frontier at which they throw a few crumbs from time to time to help the area tread water, and now they can't even do that! The fact of the matter is the revenue anticipated from the vlt operation was removed from the proposed state budget a few months ago. So the question is why wasn't local government informed sooner that this was done. Don't blame it all on DElaware north either...they wanted to make payment in installments to the state..in the light of the economic down turn, what was wrong with that? Now that NYS got what it wanted, ownership of prime realestate the deal is off the table. NYRA made a big mistake knuckling under to the bullying by the thugs who run the legislature by surrendering title to the tracks.Now local taxpayers can hold their breath over whether the state will pay the city and the school district property taxes. This mess has both local and regional economic consequences and rather than indulge in petty political potshots everyone needs to work together lobbying Albany to protect racing which is truly the basis for the economic success of Saratoga Springs.
for those self indulged ignorami we almost lost EXCLUSIVE racing here back in the 60's and it was the Mayor who lobbied successfully to protect those dates. "… luke wrote" I agree with those commentors that suggest the NYRA is using its Saratoga influence to try and push the legislature to act immediately, regardless of the long term benefits to racing, breeding and the state of NY. Based on the closeness of the NYRA to Delaware North, I wouldn't be surprised if the "push" is to get DelNorth moving on the project tomorrow, while worrying about the up-front payment as an administrative detail later. Clearly good for racing short term, but just as obvious a bad shortsighted decision down the road. It has taken this long so far, so why the big rush to judgment? "All the comments at the link are interesting. I limited comment quotes to those mentioning NYRA.

OTM Al

03-20-2009, 09:43 PM

Considering the fact that they gave up running the slots but were guaranteed part of the proceeds as part of the deal in turning over the track deeds, this could get very ugly if it appears that the state has reneged on their part of the deal. "wallace" clearly has no idea about how business works not understanding how the two statements can't both be true, or I guess he thinks a business can run efficiently by running down all the capital it has.

Indulto

03-27-2009, 06:49 PM

http://www.bloodhorse.com/horse-racing/articles/49872/lawmaker-let-nyra-develop-vlt-casino?id=49872&source=rss
Lawmaker: Let NYRA Develop VLT Casino
By Tom Precious March 27, 2009The state of New York should abandon efforts to find new bidders to develop a video lottery terminal casino at Aqueduct and instead tap the New York Racing Association to run the long-delayed facility, a leading state lawmaker believes.

“They have the plans. They have the place. Everything is all set up," said Assemblyman Gary Pretlow, a Democrat who chairs the Assembly Racing and Wagering Committee.

Pretlow said NYRA should be eligible to receive funding under the recently approved federal stimulus package, which state officials will be distributing, because the site qualifies as a “shovel-ready” project.

… Pretlow said NYRA could piggyback onto the work already done earlier during the MGM Mirage effort, including using existing architectural reviews and already-approved environmental studies. He said the idea would be to develop just a VLT casino at the track, leaving other ventures, such as hotel and retail space, for the future.

The federal stimulus package money can be used for a variety of infrastructure and other projects in New York. The key, however, is that they be shovel-ready in order to get projects, and jobs, moving quickly.

“They could start construction tomorrow," Pretlow said of NYRA.

The lawmaker said NYRA could run the project itself, or retain a manager to oversee the operations, as is done at a handful of other racetrack casinos in New York. Officials said state law prohibits NYRA from being directly involved in the casino operation.

“If it is (banned), we can change that because to waste another year with developers who are just basically greedy that want the most for themselves, I don’t think is worth it," Pretlow said.

Pretlow said the state could make far more money under his proposal because it would not have to share as much of the casino revenue with NYRA, a not-for-profit entity, as it would with a for-profit corporation. Also, he said getting the casino open sooner will lessen the chance that the state has to again bail out NYRA.

The lawmaker said he has gotten a warm reception to the idea inside the Assembly and also from NYRA. “I think they like the idea," he said.

Pretlow said he plans on presenting the idea to the Paterson administration soon. “I want to see something happen. We’ve been wasting years," Pretlow said.

PaceAdvantage

03-27-2009, 07:49 PM

Pretlow...a NY politician who actually makes sense? Wow...who woulda thunk it?

Indulto

03-27-2009, 08:28 PM

Pretlow...a NY politician who actually makes sense? Wow...who woulda thunk it?He was on the Franchise Selection Committee that recommended Excelsior over NYRA and Empire during Pataki's administration before that group unravelled.

PaceAdvantage

03-28-2009, 02:14 AM

He was on the Franchise Selection Committee that recommended Excelsior over NYRA and Empire during Pataki's administration before that group unravelled.Everyone makes mistakes.

Indulto

04-08-2009, 05:43 AM

http://leftatthegate.blogspot.com/2009/04/odds-and-ends.html (http://leftatthegate.blogspot.com/2009/04/odds-and-ends.html)
Monday, April 06, 2009
Odds and Ends

Comments
Anonymous said... … there is some "buzz" coming out of Aqueduct concerning the VLT project. Apparently the NYRA chiefs invited Audrey Pheffer, Senator Addabbo, Community Board 10, NYSRWB Chairman Sabini, Franchise Oversight Board members, Sylvia Hamer from Governor Paterson's office and some others to a meetting/presentation on Wood Memorial Day. The NYRA wanted to show this group how simple it would be for them to install some machines with the help of a former MGM gaming guy and have the machines up and running in no time. If the NYRA, with some help from the state's NYC Off Track Betting, Corp, could act as "managers" then the state's cut or percentage could be greatly increased because a real gaming operator fee would not need to be paid. I guess Gary Pretlow might have known this session was on the books as he made the comment about NYRA running the VLT's over a week ago. …Can any posters here close to NYRA confirm this?

Indulto

04-09-2009, 03:46 AM

http://leftatthegate.blogspot.com/2009/04/odds-and-ends_08.html
Wednesday, April 08, 2009
Odds and EndsOf the 8700 layoffs of state employees announced by Governor Paterson, six are from the Racing and Wagering Board. So if New York is serious about stepping up its efforts to clean up the game, it will have to do so with less manpower. …http://www.nydailynews.com/money/2009/04/08/2009-04-08_city_otb_still_perfecta_mess_nagging_los.html (http://www.nydailynews.com/money/2009/04/08/2009-04-08_city_otb_still_perfecta_mess_nagging_los.html)
City OTB still perfecta mess: Nagging losses piling up despite state takeover
BY Kenneth Lovett April 8th 2009The state takeover of the financially beleaguered New York City OTB has failed to stop the hemorrhaging, the Daily News has learned.

"New York City OTB experienced significant fiscal challenges prior to the state takeover, and many of these challenges are continuing," said state budget division spokesman Jeffrey Gordon.

NYC (http://www.nydailynews.com/topics/New+York+City) OTB reported a whopping $76.5 million operating loss in its audited financial statement for fiscal year 2008, the last year the city ran the operation.

Gordon couldn't say exactly how much NYC off-track betting lost in its first year of state control pending an independent audit.

But a 10% [drop?] in the betting handle, coupled with rising costs, has darkened the outlook.

… Administration officials say there has been no talk of shutting down the city OTB.

… "The administration is reviewing the entire OTB system and through this analysis, future steps to address OTB's financial stability will be determined and implemented."

The cash-strapped state last June took over the city OTB operation after Mayor Bloomberg threatened to shut it down because of losses to the city.

Despite handling more than $1.1 billion in bets every year before the recession hit, city OTB lost millions because of required payouts of the gross handle to the state and racing industry.

Most of the mandated payouts remain, keeping the operation from making money.

Some changes in the law transferring ownership to the state were meant to help NYC OTB keep more of its revenue.

… "We really need to reexamine it," said Sen. Eric Adams (D-Brooklyn), chairman of the Racing & Wagering Committee. "Is it they're not making money or are we overtaxing them?"

OTM Al

04-09-2009, 09:09 AM

The state owns the OTB, yet the OTB is still putting payments to the state on its expenses. Expenses also include moneys paid to NYRA, who also in turn has to send money to the state. So one figures the OTB is still making the state plenty of money, just not as much as they would like it to.

Indulto

04-17-2009, 05:54 PM

http://www.drf.com/news/article/103049.html (http://www.drf.com/news/article/103049.html)
New bid plan for Aqueduct casino
By Matt Hegarty4/17/2009New York state will provide $250 million in financing to a developer willing to build and operate a casino at Aqueduct racetrack in Queens under a new set of bidding procedures announced on Friday.

… The new procedures require any company interested in the casino contract to submit a bid by May 8. The winning bidder would be selected by New York Gov. David Paterson, Senate Majority Leader Malcolm A. Smith, and Assembly Speaker Sheldon Silver, the state's three top political officials.

… According to a memorandum of understanding that the state released on Friday for potential bidders, the state would issue $250 million in income-tax bonds to fund construction costs for the casino. Although a winning company would be required to pay the state back, the credit line could prove critical to companies that are having difficulty raising funds for large capital projects during the recession. …http://www.bloodhorse.com/horse-racing/articles/50272/bid-process-reopened-for-new-york-vlts?id=50272&source=rss (http://www.bloodhorse.com/horse-racing/articles/50272/bid-process-reopened-for-new-york-vlts?id=50272&source=rss)
Bid Process Reopened for New York VLTs
April 17, 2009… “It is essential to the long-term successful operation of New York’s racing industry that we find the most qualified vendor to operate VLTs at Aqueduct,” Silver said. “Though the economic recession has delayed the course of selecting a vendor, the state remains committed to ensuring the best option is selected for the State and the community to create a quality destination and entertainment venue at Aqueduct.”

… An updated version of the State’s Memorandum of Understanding released April 17 outlines a potential framework for terms related to the operation and development of a VLT facility at Aqueduct, and includes the following components:

--The winning bidder would pay the full amount of their proposed upfront franchise fee no later than ten business days following the execution of the MOU.
--The state would issue personal income tax bonds through the Empire State Development Corporation in the amount of $250 million to finance eligible VLT project costs. The net amount borrowed would be advanced to the selected bidder to be used for project capital costs incurred in the construction of a VLT facility at Aqueduct.
--The VLT facility would be constructed by the VLT Vendor, which will be responsible for its design and construction subject to the terms of the MOU and applicable laws and regulations. Neither ESDC nor the State will be responsible for construction or cost overruns.
--The state would enter into an agreement with the winning bidder for a fixed period of 30-years, with a possible 10-year extension based on the attainment of reasonable benchmarks that ensure satisfactory performance.

… Assemblyman J. Gary Pretlow, chair of the Racing and Wagering Committee, said: “Aqueduct is one of the reasons that New York is a national thoroughbred racing industry leader. The installation of VLTs at the facility has been a top priority in our goal of attracting tourists and stimulating economic development in the region. It was essential that New York reopen its bidding process to move forward with this important project.”

PaceAdvantage

04-19-2009, 06:45 PM

Indulto

04-20-2009, 04:31 AM

http://www.saratogian.com/articles/2009/04/19/news/doc49ea9529e6b43998731449.txt (http://www.saratogian.com/articles/2009/04/19/news/doc49ea9529e6b43998731449.txt)
OTBs see $28M decline in wagering
By PAUL POST April 19, 2009… Officials blamed the negative figures on everything from the economy to legislation they say puts OTB at a disadvantage with out-of-state betting entities.

... NYRA gets the largest share of OTB money. Casey said he believes New York’s seven harness tracks get an unfair percentage of OTB revenue under a “hold harmless” provision that he says creates an artificial mandatory level of funding.

“There’s a minimum that must be paid harness tracks,” he said.

OTB shouldn’t have to do this, he said, because every harness track already has video lottery terminals and gets a share of that money. NYRA, in contrast, gets no VLT revenue because a racino still hasn’t been built at Aqueduct Racetrack in Queens.

Each harness track also gets a percentage of VLT money for marketing purposes. However, Catskill OTB President Donald Groth said he believes most of that money is used for promoting VLTs and not harness racing.

Groth said New York’s OTBs have been hurt by January 2008 legislation that allows New York residents to place bets with out-of-state, online wagering entities such as TVG and Youbet. Out-of-state residents are prohibited from establishing accounts with New York’s OTBs, but New Yorkers may now place bets with out-of-state wagering platforms that offer rewards and incentives.

“This is the biggest attack on business here,” he said. “We’re seeking a change in the law to prohibit this. We need to level the playing field.”

PaceAdvantage

04-20-2009, 01:52 PM

These people are so clueless. New Yorkers have been wagering with online wagering outlets such as YOUBET for over TEN YEARS. At least I know I have been....

OTM Al

04-20-2009, 02:26 PM

NYRA's online betting also gives rebates, so are they suggesting that that be banned also? Its the OTBs that are already preventing video on that platform. These things need to be done away with and merged with the tracks in some meaningful way. Players and tracks would be better off for it. The OTB system is simply a middle man that current technology has made obsolete. Give 3 districts to NYRA (Capitol, NYC and Long Island) and split the rest up among Finger Lakes and the Harness tracks if need be. They have become a drain rather than a benefit on everyone. Do this and they would also be able to get rid of the 6% surcharge at the locations.

slewis

04-20-2009, 02:57 PM

Further proof that America needs to purge all of its politicians, at every level, and start over again.

HOW LONG has NY been trying to build slots at AQU now? Holy unbelievable shite...anyone ever remotely connected with this mess politically deserves to be thrown immediately out of office....except for the guy recently who had the common sense idea of allowing NYRA to run the show...whatever happened to him and his idea?

Really?

Well when someone poses a legitimate arguement as to why 10cents of slots money should go to the racetrack industry, Ill cast my vote against those politicians who are stalling (thank god) this NYRA robbery.

The state is broke yet NYRA wants to bump purses at Saratoga to what?? $75,000 mdspwt??. After letting go a large percentage of their staff, the same people they hustled onto busses to "protest" in Albany to "save our jobs".... only to let them go 3 mo later......
Then announce they are raising purses at Saratoga for the upcoming meet.
I love the people on the "new" NYRA bd who are supposed to be there for oversight representing the interests of the taxpayers of the state. :lol:

Like those gazillionaires are going to run to Monmouth, or Delaware to race their well bred 2 yr olds, and bypass the SPA.. cause the purses are too small.:lol:

Im not a big fan of Silver or Bloomberg, but I hope they live to be 100 and keep fighting against this slot crap.

PaceAdvantage

04-20-2009, 03:21 PM

Well when someone poses a legitimate arguement as to why 10cents of slots money should go to the racetrack industry, Ill cast my vote against those politicians who are stalling (thank god) this NYRA robbery.Here's one...NYRA gave up the claim to land ownership in exchange for a percentage of the slot revenue.

I eagerly await your vote casting.

Indulto

04-20-2009, 03:25 PM

... After letting go a large percentage of their staff, the same people they hustled onto busses to "protest" in Albany to "save our jobs".... only to let them go 3 mo later......So that's how they were able to beat out TVG for tlg's services!:lol:... Im not a big fan of Silver or Bloomberg, but I hope they live to be 100 and keep fighting against this slot crap.Slewis,
There's always been an assumption that there would have been no serious contention for the NY racing franchise if slots hadn't been part of the equation. Do you agree with that?

Also, how should NYRA adjust to the loss of slot revenue? Would they have to close Aqueduct?

slewis

04-20-2009, 03:51 PM

Here's one...NYRA gave up the claim to land ownership in exchange for a percentage of the slot revenue.

I eagerly await your vote casting.

See the case in Maryland.... in that situation... Magna is a publicly owned for profit organization with a FINANCIAL (not power and control) FINANCIAL stake...So they would have an arguement for fair settlement.

In tha case of NYRA, they were not interested in a finacial settlement, just the POWER and CONTROL to run racing in NY. Any judge with a brain in the real world would find these terms unacceptable.... and NYRA would be sent there merry way. The state runs racing in NY. They control licenses and gaming rights. Any entitiy that puts a gun to the citizens of the state for POWER AND CONTROL of such should have those powers stripped.
If NYRA wanted financial compensation for the land, minus the unpaid taxes and liens, ok, the state will write a check to... the state, because that's basically who NYRA was....prior to the hiring of their clever attorneys.

Now, if you want to speak to me realistically about this, ok lets do that PA.
Who contributes to whose party, how much, how "corrupt" I mean, lobbyied for favors and influence and make sure it never gets into court.....
If that's how this played out as opposed to eminient domain...

Now we're talking business.....

If you'd like to debate this, ok, as long as we both call a spade a spade.

One more question PA... why did NYRA stop at 25 yrs??? Why not 250???

After all, THEY OWN THE LAND. They have the gun to the head of the NYS gov..... They hold all the cards....right?
You know why, because it's not about the good of the game, or whats best for NY racing.... it's about power and control... and Phipps and friends will be in the ground by the time this gig is expired and everyone gets their yearly payoff envelope, ooops, I mean political contribution.

It's the way things go down in the new America, and racing's not immune.

PaceAdvantage

04-20-2009, 03:56 PM

In tha case of NYRA, they were not interested in a finacial settlement, just the POWER and CONTROL to run racing in NY. Any judge with a brain in the real world would find these terms unacceptable.... and NYRA would be sent there merry way. The state runs racing in NY. They control licenses and gaming rights. Any entitiy that puts a gun to the citizens of the state for POWER AND CONTROL of such should have those powers stripped.
If NYRA wanted financial compensation for the land, minus the unpaid taxes and liens, ok, the state will write a check to... the state, because that's basically who NYRA was....prior to the hiring of their clever attorneys.Uncharacteristically, you present a fabulously WEAK argument here. Very unlike you.

You blame this all on "clever attorneys?" Come on man...your case has to be stronger than this...I KNOW you're better than this.

So, since it's true NYRA exchanged it's land claim for a percentage of slot revenue (along with with everything else the state conceded), I trust I have your vote?

slewis

04-20-2009, 04:13 PM

So that's how they were able to beat out TVG for tlg's services!:lol:Slewis,
There's always been an assumption that there would have been no serious contention for the NY racing franchise if slots hadn't been part of the equation. Do you agree with that?

Also, how should NYRA adjust to the loss of slot revenue? Would they have to close Aqueduct?

Ive stated before that they should be completely separate....and NEVER privatized, and ALWAYS FRANCHISED.

What's in question here are the TERMS of any agreement. Since racing is a giant industry in the state. It's in the states best interest to keep it solvent. That also means to be there for it (racing) financially if need be (like they did by forgiving the enormous UNPAID property tax burden NYRA had.)
BUT, the state (ALL STATES) are foolish to privatize ANY forms of gambling.
They need to control it and fine tune it according to the tax needs of society.
Those tax needs change from times of good properity, to recessive....

Good controlled franchises are the way to go, with short term performance incentives (not 25 year deals) Fund them through muni bonds.....and bring in groups to micro-manage them.
This is not rocket science. Problem today is that pols dont work for the people, they get to office and the corruption starts.... (see and google Hazel Dukes).
But that does NOT mean it cant be successfully done, and SLOTS should have NOTHING to do with RACING.

Indulto

04-22-2009, 11:40 AM

http://www.buffalonews.com/258/story/646499.html (http://www.buffalonews.com/258/story/646499.html)
Delaware North sued by former partner over racetrack casino bid
By Tom Precious 04/21/09… Delaware North took confidential information and used it against former partners in its bid to develop a major casino at a downstate racetrack, its former partner alleges in a new lawsuit.

… The suit in state Supreme Court in Manhattan was filed by SL Green Realty Corp., a major real estate development firm that once partnered with Delaware North in a group called Empire Racing Associates.

SL Green said Delaware North "turned on its partners" and used confidential information involving development plans and financing to then submit its own separate bid for the casino deal. The suit says Delaware North's participation in Empire Racing was "vital" to its chances for success.

… "Based on what we have read in press reports, it appears to be a desperate attempt by SL Green to try to enhance their standing in the rebid process. We would hope the lawsuit does not complicate or delay the process further," William J. Bissett, president of Delaware North, said this afternoon.

… The suit alleges Delaware North "actively dissuaded" Empire Racing from submitting a separate bid to run just the Aqueduct casino. After NYRA was awarded another franchise to run the tracks, Delaware North then bowed out of Empire Racing -- even though it had assured Empire Racing officials that during the summer of 2007 rumors were false that it was discussing with state officials the possibility of submitting its own bid apart from the Empire group, the suit alleges. In October 2007, it formed a new partnership with the owners of a Saratoga harness track to go for the Aqueduct casino project.

By February of 2008, SL Green said new partnership talks were under way between the Manhattan real estate firm and Delaware North. It said it shared information with the Buffalo company, including confidential financial details. It said Delaware North then used that information to submit its own separate bid.

… Delaware North "sabotaged the efforts" of Empire and SL Green, the suit alleges.

"Had [Delaware North] lived up to its contractual and fiduciary responsibilities to Empire and SL Green, enormous costs to Empire, SL Green and, ultimately, the people of New York State could have been avoided," the suit claims. …http://www.bloodhorse.com/horse-racing/articles/50330/suit-filed-over-aqueduct-casino-bid (http://www.bloodhorse.com/horse-racing/articles/50330/suit-filed-over-aqueduct-casino-bid)
Suit Filed Over Aqueduct Casino Bid
By Tom Precious April 22, 2009 … William J. Bissett, president of Delaware North Cos. Gaming & Entertainment, said the company has not yet been served the lawsuit's legal papers. "Based on what we have read in the press reports, it appears to be a desperate attempt by SL Green to try to enhance their standing in the re-bid process. We would hope the lawsuit does not complicate or delay the process further,'' he said in a written statement.

The company did not address any of the specific allegations contained in the lawsuit. Delaware North has said the economic climate made it difficult to secure the $370 million in financing for the Aqueduct project. Still, it said it continued to offer the $370 million amount to the state but on a delayed timetable.

"It has been widely reported that we withdrew from the project. Nothing could be further from the truth. Our issue was solely based on timing and changing conditions as we finalized the legal operating agreements. In fact, even with the changes, our proposal would have had the VLTs up and running faster than any of the other bidders. We remain further along because of the investments we have made during the initial project work and the finalization of the MOU. Again, we have already made a significant investment in the project and remain enthusiastic about its value to the community and the State of New York,'' Bissett said.

Spendabuck85

05-08-2009, 08:36 PM

From DRF.com:

Seven companies submitted bids on Friday to the state of New York to build and operate a casino at Aqueduct racetrack, according to New York Gov. David Paterson, in the second go-round of a process that has been plagued by stops and starts for more than seven years.

The companies are Aqueduct Entertainment Group, Delaware North Cos., Mohegan Sun, Peebes Developments Group, Penn National Gaming, SL Green Realty Corporation, and Development Associates, a subsidiary of Wynn Resorts Limited, the casino operator.

Full article at:
http://www.drf.com/news/article/103642.html

Indulto

05-09-2009, 04:12 AM

http://www.bloodhorse.com/horse-racing/articles/50694/seven-bids-submitted-for-aqueduct-casino (http://www.bloodhorse.com/horse-racing/articles/50694/seven-bids-submitted-for-aqueduct-casino)
Seven Bids Submitted For Aqueduct Casino
By Tom Precious
Friday, May 8, 2009… The list of entities interested in running the casino in one way or the other include a who’s who of gambling interests, including Las Vegas casino mogul Steve Wynn, Penn National Gaming, Delaware North, Mohegan Sun, and others.

… A source, who spoke on condition of anonymity, said Mohegan Sun did not submit a formal bid, but offered a proposal to the state that included no up-front money for Albany and a proposal to let the state build the facility and Mohegan Sun would run it.

Penn National Gaming is also jumping into the Aqueduct bidding wars. Joseph Jaffoni, a spokesman for the company, declined comment.

A group called Development Associates, identified by the Paterson administration as a subsidiary of Wynn Resorts Ltd., also submitted a plan to run a casino at the track.

Besides Delaware North, Aqueduct Gaming includes Saratoga Gaming and Raceway; the Peebles Corp., the nation’s largest African-American real estate development company, and McKissack & McKissack, billed as the country’s oldest African-American, women-owned design and construction firm.

Adding to the confusion Friday night, though, is word from the Paterson administration that Peeples put in a separate bid beyond the one with Delaware North to run the casino. It is not known if the company has partnered with any other entities.

… Finally, a mystery entity called Aqueduct Entertainment Group, submitted a bid.

… The new memorandum of understanding is less forgiving than the last round: the winning bidder must pay the full amount of their franchise fee payment within 10 days of the MOU’s approval by the parties. The state would float bonds up to $250 million to help finance the casino, which would be paid back by the winning bidder.

The state has made clear in the MOU that it wants no part in constructing a casino, which would seem to leave Mohegan Sun out of the running.

Indulto

05-12-2009, 04:37 AM

http://www.drf.com/news/article/103682.html
Big A casino bid's details are sketchy
By Matt Hegarty5/11/2009The state of New York will not provide any details about the seven bids that were submitted on Friday to build and operate a casino at Aqueduct, a spokesman for Gov. David Paterson said on Monday.

The refusal to provide details is creating some confusion about which companies bid on the project. The list of bidders distributed by the state includes a reference to a company that was formed by unknown principals, lists a company that is also part of a bid submitted by another company, and names another bidder that said late Friday that it is not a bidder.

"I've seen a lot of conflicting information," said Charles Hayward, the chief executive of the New York Racing Association, which holds the racing franchise for Aqueduct, Belmont, and Saratoga. "We're as in the dark as anyone else."

Hayward said NYRA is not involved in any group seeking the franchise.

… Also listed was a company called Aqueduct Entertainment Group, which was presumably formed in order to bid on the contract. Morgan Hook, a spokesman for Gov. Paterson, said the state would not release details about the principals in Aqueduct Entertainment, and efforts to determine the principals have been unsuccessful. …http://www.bloodhorse.com/horse-racing/articles/50723/info-on-aqueduct-casino-bidders-revealed (http://www.bloodhorse.com/horse-racing/articles/50723/info-on-aqueduct-casino-bidders-revealed)
Info On Aqueduct Casino Bidders Revealed
By Tom Precious May 11, 2009… The members of one mystery group--Aqueduct Entertainment Group--was revealed May 11, at least partly, anyway.

The group’s partners include Navegante Group, a Las Vegas casino management company, and Green Star Services, which is serving as the developer of the proposed project, sources briefed on the proposal said. Green Star is a component of WDF Inc., a New York City construction contracting firm whose projects have included the Time Warner building, Lincoln Center and Yankee Stadium.

Larry J. Woolf, chairman of Navegante Group, declined comment, saying the various players in the bidding group were preparing for a conference call to devise a strategy for public relations and other efforts. Navegante Gaming’s projects include the Casino Fandango in Carson City, Nev., and the Plaza Hotel & Casino in Las Vegas. Woolf’s four decades in the casino industry includes a stint as chairman of MGM Grand Hotel and Casino.

One source said Rev. Floyd Flake, who is the political mentor and current pastor of Senate Majority Leader Malcolm Smith, a Queens Democrat, is also somehow involved with the bidding group, as is Empowerment Development Corp.

Another involved, according to the governor’s office, is Siemans, though Paterson spokesmen could not say if it was the German conglomerate that industry sources say has had a small part of its business engaged in hotel and gaming financing. A source close to the bidders said the German company is involved in the bid.

Another company listed as an “affiliate’’ of the Aqueduct Entertainment Group is The Darman Group, which lists offices in Queens and Brooklyn. It has been involved as consultants in several high-profile real estate dealings in New York City.

… The governor’s office also lists an entity known as PS&S, though it would provide no information on the group. A source close to the bidders said PS&S is an architectural and engineering company that has done work in Atlantic City and New York City. A Paterson official said Richard Mays is listed as chairman of the Aqueduct Entertainment Group. …http://leftatthegate.blogspot.com/2009/05/two-reporters-better-than-one.html (http://leftatthegate.blogspot.com/2009/05/two-reporters-better-than-one.html)
Monday, May 11, 2009
Two Reporters Better Than One… The players may have changed - remember Richard Fields and Eliot Spitzer; Jared Abbruzese and Joe Bruno - but the game remains the same. It seems a good bet that there are acquaintances of Paterson and Silver sprinkled amongst all the other parties that we don't yet know about in the six (or seven) groups bidding for the prize. No wonder they want to keep it all behind closed doors.

Indulto

05-14-2009, 05:47 PM

http://www.bloodhorse.com/horse-racing/articles/50771/mgm-mirage-back-in-big-a-casino-hunt (http://www.bloodhorse.com/horse-racing/articles/50771/mgm-mirage-back-in-big-a-casino-hunt)
MGM Mirage Back in Big A Casino Hunt
By Tom Precious May 14, 2009 … The return of MGM – it dropped out of a casino project two years ago because of various delays by the state and New York Racing Association – heats up the already intense bidding to run the long-stalled racetrack casino.

Word of MGM involvement came from R. Donahue Peebles, a Florida-based developer who said the bid his company submitted last week to the state of New York includes the Las Vegas casino company and Harbinger Capital Partners, a Manhattan investment company.

… All eyes were watching Peebles because he was also identified last week by Delaware North as one of its partners in a new bid for the casino project. But Peebles, the largest African-American real estate developer in the nation, also struck out on his own with his own set of partners.

No details were provided by Peebles about what may have been offered to the state. Delaware North last year won a contract for the casino with a $370 million offer, an amount it recently was unable to pay by the end of March when Paterson was looking to close the state’s books for the 2008 fiscal year. Paterson then put the project out for bidding again.

In a statement, Peebles said a “compelling bid’’ was offered. If successful in the bidding, the project would be called MGM Grand at Aqueduct.

… “MGM Mirage is ready to quickly resume our prior efforts and deliver on the still unrealized dream of Aqueduct. Our knowledge of and history with Aqueduct is comprehensive and dates back to the first stages of the project, and no one knows Aqueduct better than we do. Working with Peebles and Harbinger, we are confident that MGM Grand at Aqueduct will be a vibrant, first-class destination and make the residents of Queens and the state extremely proud,’’ said Ken Rosevear, president of MGM Mirage Development. …

miesque

05-14-2009, 06:09 PM

Its somewhat important to note that MGM Mirage is currently trying to pare down its pretty substantial debt of around $14 Billion (they just completed a stock offering) and with the economic downturn and Las Vegas in a severe slump, I don't see their fiscal conditioning dramatically improving, at least in the near future. That said, I don't know the fiscal health of the other parties who submitted a bid so its possible they all are in the same boat.

Indulto

05-17-2009, 08:34 PM

http://www.bloodhorse.com/horse-racing/articles/50828/ny-panel-to-otbs-hold-off-on-long-term-deals?id=50828&source=rss (http://www.bloodhorse.com/horse-racing/articles/50828/ny-panel-to-otbs-hold-off-on-long-term-deals?id=50828&source=rss)
NY Panel to OTBs: Hold Off on Long-Term Deals
By Tom Precious May 17, 2009 A New York government panel studying whether to alter the current structure of the state’s off-track betting system has asked the OTBs to hold off on signing any long-term deals – a move that suggests the panel could have sweeping changes in mind.

The Task Force on the Future of Off-Track Betting held its first organizational meeting of its board May 14 – 11 months after the panel was created and more than two months after it was to have, by law, issued a final report to reform the long-maligned OTB system that has pitting the quasi-government entities against racetracks.

The four-member panel – it is missing one member because Assembly Speaker Sheldon Silver has yet to name his selection to the task force – made no decisions or provided any signals what kind of changes might be in store. Many in the racing community have called for some sort of joint ventures or mergers between the state’s six OTBs and tracks to end the decades’ old fight for a share of the dwindling pari-mutuel gambling dollars.

… “Once they come up with a reform agenda they would prefer not to have any obstacles in the way,” Mahoney said when asked the reason for the request.

… The task force was created last June when Paterson and the Legislature bailed out New York City by taking over the financially ailing New York City Off-Track Betting Corp. …

… The takeover, though, required a task force to be created to study whether changes can be made to make the off-track betting system and racetracks work better together. The law required the task force to report its recommendations by March 1 – theoretically enough time to possibly still take some action before the Legislature ended its 2009 legislative session in June. Now, with less than a month to go before the end of the session, there is little prospect for any major changes to the system that all sides say is not working.

Still, the task force is set to meet again later this month and its members called on the various industry stakeholders to immediately send in ideas to improve the current system -- suggesting possibly some of its members believe there still could be time to act in the coming month. …How does Silver benefit from not appointing a board member?

Indulto

05-23-2009, 03:58 AM

http://www.saratogian.com/articles/2009/05/21/news/doc4a14b4b43ebbe938930766.txt
OTB calls for off track gaming
By PAUL POST May 21, 2009… OTB leaders say strategically located gaming centers would keep New York residents from traveling to out-of-state casinos, while attracting people to New York as well.

… Each of the state’s six regional OTBs should be allowed to have a main video lottery terminal facility, he said. The Capital Region, for example, could have from 750 to 1,500 VLTs at its Central Avenue teletheater in Albany.

… "If you’re serious about raising money, you’ve got to be serious about their placement," said Donald Groth, Catskill Region OTB’s president and CEO. "VLTs have to be nearer population centers."

A facility near the Garden State Parkway would keep people from going to New Jersey, and draw people to New York from the Garden State, he said. Gaming centers could also be placed near the Connecticut and Pennsylvania borders. Pocono Downs in Pennsylvania is a popular regional attraction that gets many New York patrons.

… Collectively, New York OTBs need a new revenue-generating product and can’t rely on horse racing alone any longer, because of decreased interest in the sport, he said.

OTB leaders are also critical of 2008 legislation that gives harness tracks a greater share of VLT revenue. …http://www.bloodhorse.com/horse-racing/articles/50891/sabini-to-lead-ny-thoroughbred-breeders-panel?id=50891&source=rss
Sabini to Lead NY Thoroughbred Breeders Panel
By Tom Precious May 21, 2009… New York’s top racing regulator has been tapped to head a quasi-government panel that distributes over $60 million a year in various Thoroughbred breeding and other awards.

… The fund was created in 1973 to help bolster the Thoroughbred industry in the state. It distributes breeder, stallion and owner awards as well as purse money for New York-bred horses.

Its board members include other state agency heads as well as breeder and owner representatives, including Dr. William Wilmot, Edward Kelly, Joseph McMahon and Philip Trowbridge.

… Sabini … has become known for his outspoken ways, such as critical remarks last year aimed at the New York Racing Association for not doing enough to promote racing in the state. Sabini said he also wants to push tracks harder to improve backstretch facilities.

Sabini has been serving since last year as a member of the breeding and development fund. As racing regulator and board member of the fund, he pushed for the panel to halt the distribution of awards to Ernest Paragallo after horses were found to be mistreated at his Greene County farm in upstate New York. Paragallo is due in court May 22 before a town judge.

“The appointment is good news for the racing industry. Chairman Sabini is both an innovator and reformer. He’s a strong believer in transparency, accountability and doing the job in an efficient manner,’’ said racing board spokesman Joseph Mahoney.Has anyone read anything about Sabini’s position with regard to the harness tracks’ continued drain on the OTBs despite those tracks having slots?

Indulto

05-28-2009, 11:43 PM

Apparently this thread had 435 views since the previous post which I think is an all-time high. It's gratifying to know that interest in this subject is actually expanding.

http://www.thoroughbredtimes.com/national-news/2009/May/28/Naming-of-Aqueduct-racino-operator-pushed-back.aspx
Naming of Aqueduct racino operator pushed back
by Paul Post May 28, 2009… "Nothing’s going to happen before the end of the legislative session on June 22," said Gary Pretlow (D-Yonkers), chairman of the Assembly Racing, Wagering, and Gaming Committee.

Pretlow made the prediction based on "history; experience with the way things go around here."

… The decision requires three-way approval by the governor, Senate Majority Leader Malcolm Smith (D-Queens), and Assembly Speaker Sheldon Silver (D-Manhattan). Pretlow said he expects Smith and Silver to confer with legislative members before making a decision.

"It’s going to be difficult to figure out which one is the best deal for the state," he said. "I hope they just don’t pick the one that offers the most money to the state. I have not seen any of the proposals yet."

Some parties, such as the group International Racing Management, want bidders to publicly present plans.

"Everyone deserves to hear what these companies would do to attract people back to racing," IRM President Pam Stokes Donehower said.

But Assembly member Audrey Pheffer (D-Queens) said bidders should first prove they have solid financial backing before getting the public excited with extravagant plans.

"The governor’s been burned already," she said. ...Once again Post plugs IRM/Donehower out of nowhere with no explanation as to the extent of her involvement or influence which in the past has been writing letters to State government officials.

Indulto

06-08-2009, 11:47 AM

PA,
When I added to this thread the count was 1331 replies and 63,134 view. The previous post was 1330/62,606. Does that mean there were 528 accesses of the thread from unique URLs or does it represent something else? What triggers that counter?

http://www.timesunion.com/AspStories/story.asp?storyID=807959&category=ODATO&BCCode=&newsdate=6/7/2009 (http://www.timesunion.com/AspStories/story.asp?storyID=807959&category=ODATO&BCCode=&newsdate=6/7/2009)
NYRA tries same old bets
By JAMES M. ODATO June 8, 2009… The new NYRA … said it would cooperate with a franchise oversight board.

Instead, it's taking the franchise board to court. NYRA is suing the state, the oversight board and Laura Anglin, the board's chairperson and the director of the budget, because Anglin planned to honor the Times Union's Freedom of Information Law request for NYRA's 2009 operating budget. (In the interests of full disclosure: I filed the request before Christmas last year.)

The suit is costing the state. Filed in state Supreme Court in Manhattan, it's being defended by Attorney General Andrew Cuomo, who has sought a venue change to Albany. NYRA seeks to block the release of the documents and calls for the state to pick up its legal bill.

NYRA attorney Pasquale Viscusi says the Times Union shouldn't receive the material because NYRA has won court cases previously to protect the content of its contracts and its financial records. NYRA would face a competitive disadvantage if details came out, Viscusi said.

… Anglin last December called for fuller details in the operating plan. Almost seven months later, the franchise board still hasn't approved the plan. Further, NYRA agreed to provide audited financial reports of its operations by March 31. It has failed to do so. It's excuse: Its auditing firm hasn't been approved by the franchise board, whose members question the bidding process used by NYRA.

Anglin is being sued for siding with records access lawyer Kathy Bennett, who said NYRA should not expect to operate as it has in the past. "Given the level of state oversight and fiscal involvement, the public has a legitimate interest in NYRA's operations," Bennett wrote. "Any court decisions that were rendered during the period of NYRA's previous franchise would not be relevant, given the new arrangement under with NYRA now operates."http://www.nypost.com/seven/06052009/sports/horseracing/through_the_binocs_172684.htm (http://www.nypost.com/seven/06052009/sports/horseracing/through_the_binocs_172684.htm)
THROUGH THE BINOCS
By ED FOUNTAINEJune 5, 2009The newly-formed state Task Force on the Future of Off Track Betting is soliciting comments from the betting public as it prepares to conduct an analysis of the state's OTB corporations.

"Horseplayers are not shy about expressing ideas and opinions," said Tom Casaregola, a member of the panel who works for the State Racing and Wagering Board. "Our hope is that horseplayers, casual fans, and industry participants alike will write to us with their feedback on issues with their OTBs, their comments about their experiences at off-track betting parlors, and their ideas on things they would like to see happen."

The e-mail address is nysotbtaskforce@gmail.com (nysotbtaskforce@gmail.com)
http://blogs.timesunion.com/localpolitics/3715/hoblocks-lobbies-for-catskill-otb
Hoblock lobbies for Catskill OTB
by Jordan Carleo-Evangelist May 26, 2009… Michael Hoblock’s career as a commissioner with the state Racing and Wagering Board ended in August 2008, so he’s under a two-year ban from lobbying the board. But he’s also permanently prohibited from lobbying on issues he personally participated in, ethics officials say. He is registered as a lobbyist for Catskill OTB Corp. The $25,000 contract started in November 2008 and expires this coming November.

Hoblock said his reading of the law allows him to lobby the Legislature about OTB matters. But he did not seek guidance from the Commission on Public Integrity, which offers an Ethics Commission opinion the lifetime ban applies to agencies and the Legislature. …

PaceAdvantage

06-08-2009, 05:42 PM

I do not believe it is counting uniques...

Indulto

06-09-2009, 03:22 AM

http://www.timesunion.com/AspStories/story.asp?storyID=808223&category=REGION (http://www.timesunion.com/AspStories/story.asp?storyID=808223&category=REGION)
Republicans flip Senate
GOP regains control of chamber with aid of 2 Democrats
By JAMES M. ODATO , RICK KARLIN AND IRENE JAY LIU Tuesday, June 9, 2009
In a political coup for the history books, two dissident Democrats joined with all 30 Senate Republicans on Monday to rip control of the chamber from the Democratic Party and throw the legislative session into chaos.

And the whole posse was backed by billionaire Thomas Golisano, who has been conspiring with a small cadre of lawmakers to accomplish the overthrow.

The stunning power play restored GOP control of the chamber they led for the last four decades but lost after voters gave Democrats a Senate majority last fall.

After a dramatic and aggressive push by Sen. Thomas Libous, R-Binghamton, Republican Dean Skelos, who had been the Senate minority leader, was named Senate majority leader, even though Democrats outnumber Republicans 32-30. Sen. Pedro Espada Jr., D-Bronx, was voted in as temporary president, meaning he would be first in succession should Gov. David Paterson become unable to serve.

… "I am a Democrat and I am in charge," said Espada, saying he is leading the "reform Democrats."

… Espada's defection amounted to a brazen power play -- and one that he along with Diaz and Kruger had threatened to pull off last year, until Smith brokered a deal. A Democrat with knowledge of the situation noted that Espada's timing for the coup came after seeing his allotment of pork for this year. …

… Smith disciplined Espada recently, ordering him to file overdue campaign finance reports and pay throusands of dollars in fines for his failure to do so.

Smith has been less harsh with Monserrate, who was arrested for allegedly slashing his girlfriend with a broken bottle. The newly minted senator faces a maximum of 7 years in prison on assault charges. He is free on $5,000 bail.

… Espada said the session could run through the summer, if necessary. "I don't see that June 22 is the end of anything," he said.

… Golisano was effusive in his praise for Libous and those who pulled off the change. The former gubernatorial candidate said the Democrats showed bad form by turning off the lights: "The thing took them by surprise." …

http://weblogs.newsday.com/news/local/longisland/politics/blog/2009/06/belmont_casino_foes_can_rely_o.html

Belmont casino foes have ally in a veteran Senator… state Sen. Frank Padavan, … , whose own Web site calls him "the Legislature's leading opponent of casino gambling and the state lottery."

Padavan's coiled response to the new prospects for a Shinnecock casino nearby -- or elsewhere in the region for that matter -- reflects that.

… "Obviously, with a racino for Aqueduct on the front burner, and the Shinnecocks looking at a full-fledged casino at Belmont, and Yonkers going full blast as a racino, the state is now promoting more and more gambling addiction than ever before."

New York leads the states in per-capita gambling, he says, but Padavan … calls it economic depletion, not development. Casino customers tend to be local, he notes. "Look at the demographic of people who live around Belmont and Aqueduct and what have you got? Low-income and middle-income people -- who can't afford it," he says.

… He began crusading against compulsive gambling in the 1970s as a committee chairman for mental health issues. …

aaron

06-09-2009, 10:39 AM

Indulto

06-11-2009, 05:49 PM

Indulto
I received a reply from the NY State and Wagering Board, regarding comments I made about lowering take out and putting all the OTB's under one leadership in conjunction with NYRA.

I don't think it means much that I got a reply, But maybe if they get enough comments it will have some effect.I wonder how many PA members and lurkers are from New York, and of those, how many bet with OTB?

http://www.drf.com/news/article/104559.html (http://www.drf.com/news/article/104559.html)
Nassau OTB sues NYRA over blocked signal
By Matt Hegarty6/11/2009Nassau Regional Off-Track Betting Corp. in New York filed a lawsuit on Thursday that seeks to require the New York Racing Association to restore in-home broadcasts of its races to cable subscribers in Nassau County, the company said.

… Though NYRA's signal is still being provided to Nassau's offtrack betting sites, the association has continued to deny Nassau the ability to broadcast the races to in-home customers.

"NYRA's actions have hurt tens of thousands of loyal racing fans in Nassau County," said Dino Amoroso, the president of Nassau OTB, in a release.

… In addition to seeking the restoration of the signal, the suit also seeks $15 million in damages, according to Nassau. The suit was filed in Nassau County State Supreme Court.http://www.nytimes.com/2009/06/10/opinion/10wed1.html (http://www.nytimes.com/2009/06/10/opinion/10wed1.html)
Albany’s Madhouse
EDITORIAL: June 9, 2009… In a display of chutzpah that startled even old political hands, the Senate Republicans and two of the least-reputable Democrats in a deeply disreputable place brazenly declared themselves to be a reform coalition and staged a palace coup against the Democratic majority.

… But make no mistake: Reform and bipartisanship had nothing to do with it. …

… It is worth noting that the befuddled Democratic majority was nothing to wave the flag about. In many ways, it turned out to be almost as bad as the Republicans who ran the Senate for more than 40 years until January. …

… even the better parts of their [Repulican] reform are eclipsed by one slimy act: appointing State Senator Pedro Espada Jr., a Bronx Democrat, as Senate president. If that appointment stands, Mr. Espada would become governor of New York if Mr. Paterson is out of state or incapacitated.

This is the same Mr. Espada who once tried to direct more than $700,000 of state money to his own nonprofit clinic — a grant that was eventually canceled as an embarrassment by state leaders. That is the same Mr. Espada who asked for $2 million in state funds this year — a request stalled by Senate Democrats because the money appeared to be going to front groups for the health care organization that he founded.

Add to all that Mr. Espada’s repeated failure to reveal his campaign donors and the thousands of dollars in unpaid fines for campaign violations that he still faces. Mr. Paterson has done the right thing — to say the least — by promising not to go out of state for a while.

The other Democrat that Republicans appear to have enticed into their tent is Senator Hiram Monserrate of Queens, who is facing charges that he assaulted his girlfriend by slashing her in the face with a broken glass. New York Republicans have certainly come a long way since Teddy Roosevelt and Nelson Rockefeller. …http://www.nytimes.com/2009/06/10/nyregion/10albany.html?hp (http://www.nytimes.com/2009/06/10/nyregion/10albany.html?hp)
Feelin Slighted, Rich Patron Led Albany Revolt
By DANNY HAKIM and NICHOLAS CONFESSORE June 9, 2009 … Mr. Golisano, asked by reporters about the legal troubles of Pedro Espada Jr. and Hiram Monserrate, the two Democrats who had joined with the Republicans to oust Mr. Smith, said: “Don’t talk to me about ethical background in Albany,” adding, “We have a governor who stood on a podium on national television and said he had extramarital affairs and used cocaine.”

… Along with Mr. Golisano, a key figure who helped pull off the plan to overthrow Mr. Smith was Steve Pigeon, who is not only Mr. Golisano’s top political adviser but also a longtime friend of Mr. Espada’s.

… Mr. Pigeon soon set to wooing Mr. Espada, a Bronx Democrat who had once caucused with the Republicans. Mr. Pigeon and Mr. Espada had a long relationship, going back to Mr. Pigeon’s days as a counsel to the Senate Democrats. Mr. Espada drafted Mr. Monserrate, one of his close friends in the Senate, to join him in his defection.

… After he agreed earlier this year to back Mr. Smith, Mr. Espada requested perks that he believed should accompany his title as vice president of the Senate for urban policy. He asked for the use of the Capitol office adjoining his, close to $100,000 for rent for his district office — more than twice the amount allotted to other senators from New York City — and a dozen extra staff members. Mr. Aponte denied the requests.

… In the weeks leading up to Monday’s revolt, Mr. Espada and the Republicans he planned with kept their plans remarkably quiet, especially for leak-prone Albany.

… Mr. Pigeon kept Mr. Golisano, who recently moved his primary residence to Florida, apprised of the progress, and Mr. Pigeon told him last Thursday the deal “was real solid,” Mr. Golisano said. …

Indulto

06-12-2009, 01:12 AM

http://www.buffalonews.com/home/story/699639.html (http://www.buffalonews.com/home/story/699639.html)
State Senate meets briefly before rogue Democrat walks out
Renegade Democrat insists on more time
By Tom Precious 06/11/09… Sen. Hiram Monserrate, a Queens Democrat who is considered the weakest link in the uprising, walked out of the session — which left not enough members to have a quorum to take up any business. He said he needed more Democrats to join the takeover effort to make it a true coalition Senate.

"This chamber must not remain divided, so I'm going to excuse myself from this chamber," he said.

… "You can't have a coalition government with two Democrats and 30 Republicans," Monserrate told reporters after leaving the session.

… Later Wednesday night, Senate Democrats met in an Albany restaurant to plot strategy and to consider their own coup against Malcolm Smith, the Queens Democrat who served as majority leader for six months.

… Monserrate urged Skelos and Espada to hold off on conducting the session because he was convinced Smith was going to be dethroned. The power play for Smith’s job between two New York City Democrats would leave some other Democrats disgruntled, he told them, making opportunities for more to join the Senate overthrow.

The coup leaders are hoping to add more Democrats, in part, to weaken the argument that 30 Republicans and two party-bending Democrats make a coalition.

… Skelos, in a hallway interview Wednesday, insisted the coup is not unraveling and said an extra day was given to give on-the-fence Democrats time to think through their decision.

… Paterson, meanwhile, sent a mixed message.

Though condemning the coup as “an insult to government,” he offered no specific backing to Smith and said he would be willing to meet with Espada and Skelos, who had been majority leader until earlier this year when the Democrats took over.

He also suggested a working coalition could lead to some of the plans he wants — such as a property tax cap — that have so far been blocked.

Though he is the leader of the Democratic Party, Paterson said he is not twisting any arms to keep the Democratic peace in the Senate.

“I’m not going to interfere in what goes on in the legislative branch,” he said.

Later, in Clarence, Paterson said he believes the fight should be resolved on the Senate floor and not in a courtroom.

“Then we can get back to government,“ he said. “Whoever wins, wins. Whoever loses, loses.” … http://www.nydailynews.com/blogs/dailypolitics/2009/06/as-promised-smith-goes-to-cour.html (http://www.nydailynews.com/blogs/dailypolitics/2009/06/as-promised-smith-goes-to-cour.html)
As Promised, Smith Goes To Court (Updated)
By Elizabeth Benjamin June 11, 2009… Attorneys representing the apparently deposed majority leader are right now in court in Troy, according to Smith spokesman Austin Shafran with whom I spoke very briefly this morning.

It's not clear to me what they're doing across the river from the Capitol (although it's kind of ironic, given that Rensselaer County is the home of former Majority Leader Joe Bruno, and Troy was once a political stronghold for him).

… All this was supposed to happen yesterday, but since Dean Skelos, Espada, Monserrate et al didn't follow through on their plans to hold a session (despite Espada's never-proved claim that he had obtained the key to the chamber doors that Angelo Aponte is refusing to open), it was sort of moot.

UPDATE: Apparently, what the Democrats are seeking is for a judge to declare that Smith is still the majority leader, which could be tricky given the whole separation of powers thing that generally makes the courts leery of interfering in legislative power struggles. …

Indulto

06-19-2009, 02:21 PM

From Equidaily:
http://www.harnesstracks.com/2009DRF/drfjune162009.htm (http://www.harnesstracks.com/2009DRF/drfjune162009.htm)
Racing a victim of political infighting
By Stan Bergstein June 16, 2009…As widely reported, a Rochester multimillionaire named Tom Golisano hatched the plan, and executed it by getting two Democratic state senators to switch party allegiance to the Republicans, who had lost the New York Senate last November in a close race after controlling it for 40 years.

Why would the two state senators, Pedro Espada Jr. and Hiram Monserrate, both New York City Democrats, do that? You have to understand the New York Senate is a carefully chosen group. Monserrate is facing charges of allegedly slashing his girlfriend with a broken bottle. Espada was under pressure to pay thousands of dollars in fines for failing to file overdue campaign finance reports. Despite those minor aberrations, both were welcomed in the coup, and Espada, for his part, was named temporary president of the Senate. A furious governor, David Paterson, had it right when he said of the uprising, "Once again, Albany's dysfunction raised its ugly head."

Which is where racing enters this shoddy affair.

The temporary president of the New York Senate, it so happens, stands second in the state in line of succession to the governor. His other duties are not merely ceremonial, either. He gets to vote on who will build the racino at Aqueduct, and he gets to appoint two members to the board of directors of the New York Racing Association.

The New York legislature is scheduled to adjourn June 22, but Espada, flexing his new muscles, was quoted as saying that he saw no reason for that date "to be the end of anything," saying the session could run through the summer, if necessary.

One thing seems certain. With Espada now getting to vote on the Aqueduct issue along with Gov. Paterson and Assembly Speaker Sheldon Silver, who is the real reigning political power in New York state, a resolution in choosing the builder and/or operator of the Aqueduct racino seems likely to fade once again into the mists of Queens. It is eight years now since racinos were legalized in New York state, which reportedly is losing a million dollars a day without the Aqueduct version up and running. Purses suffer, too. And blatant disregard for the urgency and niceties of compromise continues to roil the waters in Albany.

… What depressingly desperate days these are for racing. …http://libn.com/blog/2009/06/18/lack-of-lottery-terminals-has-horse-breeders-running-for-the-hills/
Lack of lottery terminals has horse breeders running for the hills
by Michael H. Samuels June 18, 2009Eight years after New York approved video lottery terminals for Aqueduct Racetrack, proponents such as thoroughbred horse breeders are still waiting for them to be installed.

And if they aren’t put in soon, many of the more than 900 horse breeders statewide, including 24 in Suffolk County, could be joining colleagues who have already left New York for greener pastures in Pennsylvania, Delaware, Virginia and Kentucky.

… “It’s got to help,” said Lois Engel, owner of the Pucker Ridge Farm in Lattingtown. “Those of us who have stuck it out, we would anticipate that the horses just being born now will be racing just about when these VLTs come online. We’re hoping the increases in breeder awards will help defray a lot of the debt we’ve taken on over the years to get things going.”

… Engel said that means she’s had to cut down on the number of horses at her farm. She’s down about 50 percent from the farm’s peak, when she had about 60 to 65 horses. She also has decreased the number of employees at her farm from eight to five.

“Over the last couple of years I have gone from being full and turning clients away to now I virtually have no clients left,” Engel said. “There is not an incentive for people to stay in New York because of all the other expenses associated with being in New York. This is not a low-cost state by any means. Without [the VLTs], people are going elsewhere.”

… The problem is that the franchise agreement needs approval from the governor, the speaker of the Assembly and the Senate majority leader to move forward. The recent standstill in the Senate has caused even more delays to a project that breeders say should’ve been up and running a long time ago.

“It’s typical Albany,” said Charles Bedard, owner of White Horse Properties in Central Islip. “They just can’t get their act together. Everybody just wants a little piece of the pie.” … http://www.bloodhorse.com/horse-racing/articles/51292/sandy-frucher-to-head-new-york-city-otb?id=51292&source=rss
Sandy Frucher to Head New York City OTB
By Tom Precious June 17, 2009… David Cornstein will remain with the NYCOTB’s board, but the chairman's job is going to Meyer “Sandy” Frucher, a onetime advisor to former Gov. Mario Cuomo.

“Sandy Frucher’s expertise and experience in both the public and private sectors should give New Yorkers the confidence to know that he will make prudent decisions for the New York City Off-Track Betting Corporation,” Gov. David Paterson said. “NYCOTB customers and employees alike will be well served by his leadership and I welcome him to this new role.”

The NYCOTB is now owned by the state after it took over the operations in 2008 from New York City, which threatened to sell the money-losing firm. …

Indulto

06-23-2009, 11:19 PM

http://paulmoranattheraces.blogspot.com/2009/06/bad-and-cold-blooded-call-at-nyra.html (http://paulmoranattheraces.blogspot.com/2009/06/bad-and-cold-blooded-call-at-nyra.html)
A bad (and cold-blooded) call at NYRA
BY Paul Moran Monday, June 22, 2009Fran La Belle, who literally grew up on the backstretches of racetracks from Saratoga to Hialeah Park and spent the last 12 years working for the New York Racing Association in its press office, was dismissed without notice on Friday, a move that sent waves of shock, anger and disbelief well beyond Belmont Park.

Officially, NYRA does not comment on personnel decisions. La Belle, who is a longtime friend of many in every area of racing, has been a loyal and dedicated employee at NYRA and prior to that the Daily Racing Form and newspapers in Florida. …

… This is neither the first nor last bad decision at NYRA but as cold-blooded as any we can recall. La Belle reacted with dignity and has begun preparation to return to his native Saratoga Springs. – PM… COMMENTS

… Paul Moran said...Neglected to mention the ludicrous severance package offered La Belle that was contingent upon his singning a document that stipulated that he would not speak or write critically about his former employer. To Fran's credit, he refused to sign the multi-page agreement.It will be interesting to hear the other side of this story, but so far, I haven't been able to find any.

http://www.dailygazette.com/news/2009/jun/22/622_printnt/ (http://www.dailygazette.com/news/2009/jun/22/622_printnt/)
NYRA takes state's money, but not its scrutiny
Editorial June 22, 2009… when it comes to openness and stubbornness, it now looks like the same old NYRA. We refer to the pains the association is taking to keep its 2009 operating budget secret, to the point of even suing the state and the oversight board it had agreed to cooperate with as part of the franchise agreement.

The suit is over a Freedom of Information Law request from the Times Union last December seeking a copy of the budget. NYRA is suing the franchise oversight board and its chairperson, Laura Anglin, who had planned to honor the newspaper’s request. It is trying to block the release of the document and have the state pay its legal bill.

As a justification for secrecy, NYRA says that releasing contractual and financial records would put it at a competitive disadvantage, and that courts have allowed it to withhold such information in the past. ...

... In addition to this suit, NYRA is resisting stricter scrutiny in other ways, such as dragging its feet in providing the oversight board with details about its operating plan and audited financial reports of its operations. The state, and the courts, should make it live up to its commitments.

Indulto

06-26-2009, 01:56 PM

http://www.nydailynews.com/sports/more_sports/2009/06/25/2009-06-25_the_day_at_the_races.html (http://www.nydailynews.com/sports/more_sports/2009/06/25/2009-06-25_the_day_at_the_races.html)
The Day at the Races
BY Jerry Bossert June 25th 2009The dog ate my homework.

That was the sad response New York City Off Track Betting lobbyist Dan Wray gave the Task Force on the Future of OTB Wednesday in Albany.

All six OTB regions in the state - Capital, Catskill, Nassau, NYC, Suffolk and Western, were supposed to answer a questionnaire given to them seven weeks ago by the Task Force, and while the other five did comply, NYCOTB came up empty again.

"The task force members were rather disappointed that they did not receive any comment whatsoever from NYCOTB," New York State Racing and Wagering Board spokesman Joe Mahoney said. "They were the only OTB that didn't provide a comment."

What came out of the meeting is that there are a total of 20 Presidents and Vice Presidents of the six OTB regions in the state who make a combined yearly salary of almost $3 million dollars.

Only Catskill OTB has one President, Don Groth , the same man who thought the 2002 Fix Six scandal ticket purchased over his telephone wagering system by Chris Harn and his friends was legitimate.

Capital OTB, which handled $190,544,474 in 2008, has a combined five presidents and vice presidents, while NYCOTB has seven, but handled almost five times as much as Capital handled at $940,218,360.

The task force is supposed to make a series of recommendations to the Governor and legislators to make the system more efficient and more profitable for the state of New York.

Three-quarters of all the handle on racing in this state comes through OTBs. Let's hope this task force accomplishes its goals. …

Indulto

07-10-2009, 10:09 PM

http://www.thoroughbredtimes.com/national-news/2009/July/10/New-York-Senate-moves-toward-naming-Aqueduct-VLT-operator.aspx (http://www.thoroughbredtimes.com/national-news/2009/July/10/New-York-Senate-moves-toward-naming-Aqueduct-VLT-operator.aspx)
N.Y. Senate moves toward naming Aqueduct VLT operator
by Paul Post July 10, 2009The New York Senate, paralyzed by a 31-day power struggle, is back in business, paving the way for the long overdue naming of an Aqueduct racino operator.

The decision requires three-party approval by Governor David Paterson, Assembly Speaker Sheldon Silver (D-Manhattan), and the Senate president.

On June 8, Republicans and two rogue Democrats, including Bronx Sen. Pedro Espada, tried to wrest control of the upper house. The result was a 31-31 deadlock between Democrats and the Republican-led coalition. For more than a month, both sides battled for control, bringing state government to a standstill.

On Thursday, however, Espada returned to the Democratic conference and took the title of majority leader. Sen. Malcolm Smith (D-Queens), however, who had held the post, retains the position of Senate president—the one charged with choosing Aqueduct’s gaming operator. ...

… Six groups have submitted bids for the contract to run Aqueduct’s racino with 4,500 video lottery terminals. The state Division of Lottery says it will allow electronic table games as well.

… The New York Racing Association and MGM previously had a contract in place for Aqueduct, but the state would not approve it for reasons that never have been fully disclosed.

NYRA President Charles Hayward said that deal was better than any the state is now considering because the state would not have had to pay anything.

"That’s water over the dam," he said. "The main thing is to move forward and get Aqueduct up and running as quickly as possible." …

OTM Al

07-11-2009, 10:07 AM

Indulto

07-11-2009, 08:46 PM

Espada got where his by the most amazingly audacious backstabbing and lying that I believe I have ever seen. He doesn't even live in his own district, but that hasn't stopped him yet. His hand will be out big time if the casino thing ever gets resolved.Who's going to trust him to keep his word under any circumstances, especially for a payoff? I'm sure Republican billionaire, Galisano, expected his politicians to stay bought.

The twice-turned Espado will be watched carefully by all sides now for an opportunity to bring him down. I assume he'll remain under investigation regarding his residency conflict and his health care firm's dealings.

Indulto

07-22-2009, 05:04 AM

http://paulmoranattheraces.blogspot.com/2009/07/nycotb-racings-longest-bad-joke.html
NYCOTB: Racing's longest bad joke
By Paul Moran July 21, 2009For the New York City Off-Track Betting Corp., the most direct route from disaster to doom has been a change in ownership from a merely inept city government to the state, the government of which is the poster child for dysfunctional gridlock.

According to published reports, the state-owned NYCOTB, dubbed Owe-TB in a New York Post headline, is between $30 and $50 million in debt …

… Anyone who believes that that the state legislature is inclined to provide funds to pay these debts has not been paying attention to what has transpired in Albany during the last six weeks, which amounts to nothing aside from dereliction of duty.

The time is at hand and the state’s OTB system – the blueprint for what not to do when establishing such an enterprise – is long overdue for radical overhaul …

… Catskill Regional Off-Track Betting President Donald Groth

– the man who claimed that there was nothing amiss when a group of criminals used his facilities in an attempt to steal the Breeders’ Cup pick-six in 2002 -- in a letter to John Van Lindt, chairman of the state task force on the future of OTB ...

... writes: “The problems of OTB are not with its management nor its regional design. The problem with the New York State OTB model is to be found in the amended statutes that have diverted too much important revenue to the support of failed/failing racetracks/raceways in New York.

“Requests for your task force to endorse a takeover of the off-track betting corporations by NYRA or a consortium of the New York harness tracks or a consolidation of the corporations under some single state agency are each and all ill advised.”

Groth is an idiot, but we’ve known that since the fall of 2002.http://www.thoroughbredtimes.com/national-news/2009/July/18/New-York-OTB-
New York OTB leaders against merger
By Paul PostJuly 18, 2009… The task force is expected to file a report with state leaders later this year. Groth said the panel should call for repeal of a 2008 statute that allows out-of-state account deposit wagering operators to take bets from New York residents, costing off-track betting sites tens of millions of dollars.

“There is a tremendous amount of duplicative infrastructure between the OTB operations and NYRA,” NYRA President Charles Hayward said on Saturday. “For example, every harness track, Thoroughbred track, and OTB has a separate tote contract. There should be one consolidated tote vendor for the state. Currently, the OTBs and NYRA conduct their own phone account wagering, so there is a tremendous amount of duplication of services. Three OTBs and NYRA have built or purchased Internet wagering platforms when there should be one account wagering platform statewide.

“… We need one statewide television strategy, marketing program, and a statewide account wagering platform so that no matter where the customer is—Saratoga Race Course, Saratoga Raceway, an OTB parlor in Albany, or New York City—the customer can wager with the same account wagering card. …

Indulto

07-24-2009, 04:59 AM

http://leftatthegate.blogspot.com/2009/07/noive-or-if-i-only-had-brain.html (http://leftatthegate.blogspot.com/2009/07/noive-or-if-i-only-had-brain.html)
Thursday, July 23, 2009
The Noive (Or, If I Only Had A Brain)
… Donald Groth, the … Catskill OTB President, who, it seems, has been fighting against the idea of NYRA being involved in off-track betting for nearly 20 years at least. …

… It's not the fault of empty suits like this guy that it was the advent of OTB, structured as it is in this state as bloodsucker of the tracks, which precipitated the decline of horse racing in New York at the turnstiles and, in turn, financially. They were just fortunate enough to know and/or contribute to those who doled out the high-paying jobs. But certainly, even Groth has to be well aware of role that OTB played in NYRA's bankruptcy and the precipitous decline of New York's harness tracks. And for Groth to not only not acknowledge that, but to twist the story completely around so as to actually credit OTB for the very existence of what's left of the industry is the height of arrogance and hypocrisy, a particularly pernicious combination. "Remittances from OTB?" How about pittances from OTB? …http://www.nypost.com/seven/07232009/news/regionalnews/out_of_the_money_180822.htm (http://www.nypost.com/seven/07232009/news/regionalnews/out_of_the_money_180822.htm)
OUT OF THE MONEY
OTB SADDLES UP FOR POSSIBLE BANKRUPTCY
By DAVID SEIFMAN July 23, 2009Saddled with debts of $46 million and facing mounting losses each day, the beleaguered Off-Track Betting Corp. is considering the unthinkable -- bankruptcy, The Post has learned.

Sources said that was one of the options discussed in a hastily called meeting of OTB's board of directors on Tuesday.

… OTB officials have been desperately juggling payments to keep the city's only legal bookie afloat through the summer.

"Right now they're robbing Peter to pay Paul," said one official.

… As The Post reported on Sunday, OTB is operating with a negative cash flow of $600,000 to $800,000 a month on a betting handle of $900 million a year, largely because of a revenue-sharing formula dictated by Albany that forces it to pay out more than it takes in after operating expenses.

Some insiders questioned whether the bankruptcy threat was a ploy to induce the Legislature to address OTB's woes.

… A source said that even though OTB is a public-benefit corporation created by the state, there are "very limited circumstances" under which it might seek bankruptcy protection while continuing the betting operation.

The fallout could have far-reaching consequences for OTB's creditors and its unionized work force. …http://www.nydailynews.com/money/2009/07/23/2009-07-23_off_to_races_on_aqueduct_redo_plans.html (http://www.nydailynews.com/money/2009/07/23/2009-07-23_off_to_races_on_aqueduct_redo_plans.html)
Off to races on Aqueduct redo plans
BY Kenneth Lovett July 23rd 2009… Two of seven companies bidding on the project released dramatic proposals on Wednesday.

Aqueduct Entertainment Group imagines a "racino" with seven sections designed to mirror city neighborhoods.

Each would have 650 video slot machines, a bar and theme restaurants, like a Jewish deli for the lower East Side.

… Some 1,200 video slots could be open by April. All 4,550 machines would be running by November 2010, officials said.

A 300-room hotel, garage, racing museum, shops, restaurants and 2,500-seat entertainment center would be done in 2012.

The group's plan would give the state $101 million upfront.

SL Green Realty Corp. partnered with Hard Rock to draft a rival plan that includes a 425-seat buffet and eight-station food court.

… There would be a Hard Rock memorabilia bar, a club for VIP players and retail stores.

… 2,000 machines would be up in six to eight months.

… The project is expected to cost up to $400 million, with the state putting up $250 million toward construction.

The state estimates it will make $1 million a day from a racino when it's fully operational. …

Indulto

07-24-2009, 07:18 PM

http://www.nypost.com/seven/07242009/sports/horseracing/nassau_otb__nyra_continue_their_feud_181060.htm (http://www.nypost.com/seven/07242009/sports/horseracing/nassau_otb__nyra_continue_their_feud_181060.htm)
NASSAU OTB, NYRA CONTINUE THEIR FEUD
By ANTHONY AFFRUNTIJuly 24, 2009... "We didn't ask for an apology. We asked how long did they know, and if in fact they knew," NYRA President and CEO Charles Hayward said. "It's relevant. Video streaming is an intellectual property. You can't take it for free. This went on for 2½ months.

"Capitol OTB also streamed races without our consent and we told them we wanted a letter stating they were wrong. They sent it in four days. They don't want to cooperate. I wish we could get this resolved before Saratoga."

NROTB President Dino Amoroso denies it pirated the signal knowingly.

"It's untrue. Let's set the record straight," Amoroso said. "I sent three letters to Mr. Hayward stating that both Scientific Games and Roberts Communications acknowledged that they put the signal over the internet. We did not. Both admitted in affidavits that they made the mistakes.

"Mr Hayward is a liar and a thief. He wants me to lie. We stopped it immediately when we found out in April. Capitol OTB admits they took the signal intentionally. They were never cut."

NROTB has filed a $30 million lawsuit against NYRA in Nassau County Supreme Court claiming damages on background and defamation. It could be a long time before racing fans in Nassau County can watch racing on NYRA's channel.Exactly what does Mr. Amoroso claim is a lie? Exactly how will NYRA use the document they are seeking? Will it somehow help them get control of the OTBs or make in-home Nassau OTB customers convert to NYRA1 accounts?

If NYRA should finally get control over all OTB on-line ADW functions that it formerly received a mere “pittance” for, wouldn’t that be the time to start offering all merged account holders rebates to compete with the offshore ADWs that service whales? Minus OTB overhead, wouldn’t local governments and NYRA both receive larger shares of those wagered dollars? Which OTB parlors/theaters would still be viable?

Indulto

07-26-2009, 01:25 AM

http://www.nydailynews.com/sports/more_sports/2009/07/25/2009-07-25_the_day_at_the_races.html (http://www.nydailynews.com/sports/more_sports/2009/07/25/2009-07-25_the_day_at_the_races.html)
The Day at the Races
BY Jerry Bossert July 25th 2009A task force was created earlier this year to focus on the future of Off-Track Betting in this state.

The panel doesn't need to look any further than the current crisis between the New York Racing Association and Nassa Regional Off-Track Betting to see why the current archaic OTB system must come to an end.

… Over the last two days, the two sides argued publicly on Mike Francesa's show on WFAN, drawing more attention to the unnecessary feud but appearing to get nowhere.

The New York State Racing and Wagering Board tried to get involved in settling this dispute, but got nowhere as well.

"We pleaded with both parties to allow us to mediate the dispute," said Joe Mahoney, a spokesman for the NYSRWB. "Instead, Nassau OTB decided it would take NYRA to court. It's very unfortunate this dispute is having negative consequences for fans, especially at a time when the exciting Saratoga meet is about to open."

… Race tracks, whether NYRA trio or the state's harness tracks, should be in charge of their product. Not a politically produced machine, such as the current OTB system with its six regions - NYC, Nassau, Suffolk, Western, Capital and Catskill, whose 20 presidents and vice presidents make close to $3 million a year.

If the tracks were in charge, there would be no dispute.

Instead, there would be one system that works statewide, allowing video streaming throughout the state, with one phone wagering system and one tote system that would allow a customer to purchase a ticket in Buffalo and be able to cash it at Belmont.

It should be clear to the task force that the system is broken, and right now it is unfortunate that the residents of Nassau County will be without Saratoga starting on Wednesday.

Enough is enough. …Hayward on WFAN audio:
http://www.wfan.com/topic/play_window.php?audioType=Episode&audioId=3898552 (http://www.wfan.com/topic/play_window.php?audioType=Episode&audioId=3898552)
Mike Francesa
Charles Hayward
Thursday July 23rd - NYRA President Charles Hayward talks about their dispute with Nassau County OTB

Nassau spokesman and Hayward on WFAN audio:
http://www.wfan.com/topic/play_window.php?audioType=Episode&audioId=3901482 (http://www.wfan.com/topic/play_window.php?audioType=Episode&audioId=3901482)
Mike Francesa
NYRA Dispute
Friday July 24th - Charles Hayward and Robert Zimmerman discuss the dispute regarding the New York Racing Association removing its televised signal of Belmont Park races from the in-home distribution network of Nassau Regional Off-Track Betting Corp.

aaron

07-26-2009, 12:41 PM

I live in Nassau County and listened to both interviews. As a citizen, I found it embarrassing that Hayward and Zimmerman were representing these organizations. The executives at Nassau OTB didn't know they were stealing the signal and NYRA didn't know who they spoke to when verifying that the signal was being stolen. After hearing the frustration in Mike Francessa's voice, you can only imagine the feelings of the day to day bettors. You can't make this stuff up.

PaceAdvantage

07-26-2009, 09:57 PM

I'm surprised this has dragged on as long as it has....kudos to Francesa for trying to broker some sort of peace treaty between these two organizations.

It's a crying shame that Saratoga won't be on the in-home simulcasting for Nassau County...such a petty issue...it boggles the mind that a resolution has NOT come about in the past few months...

How in the world is there still a standoff on such an easily fixable situation?

Instead, what we have is that residents of Nassau County (ie. RACING FANS) are going to get SCREWED out of enjoying the Saratoga live meet, and, incredibly, at the same time, NASSAU OTB and NYRA will be SCREWING THEMSELVES out of the extra handle generated by those potential Nassau County customers who would be betting on the races they would be WATCHING LIVE.

Unreal.

tribecaagent

07-26-2009, 10:22 PM

I wouldn't feel too sorry for Long Island punters.....they still have TVG.

Indulto

07-26-2009, 11:36 PM

It seems to me that NYRA wasted a perfect opportunity to come out ahead in that confrontation. Instead of sending Hayward to do battlle with attack-dog, Zimmerman, they should have substituted their own media-savvy wolverine, tlg. ;)

aaron

07-27-2009, 10:40 AM

What doesn't make any sense to me is that NYRA and OTB in Nassau seem to have no idea what is going on. First if NYRA is using this dispute as a way of being able to stream their signal on their website then it makes sense. NYRA should be able to stream their signal. Nassau OTB said that the streaming was only available to Nassau residents. I had an account during the time in question and never knew they were streaming. I was watching the races on cable, so I don't understand the benefit of receiving the signal on the computer in Nassau County. I would guess almost everyone playing at home was watching on cable.Who did having the races streamed in Nassau County benefit ?

PaceAdvantage

07-27-2009, 04:32 PM

Who did having the races streamed in Nassau County benefit ?Folks sitting in their offices at work perhaps? That's for starters...

aaron

07-27-2009, 05:18 PM

Folks sitting in their offices at work perhaps? That's for starters...
If that was the case{and I'm not saying it wasn't} then Nassau OTB and NYRA probably benefitted from having the signal out there by getting additional handle.

Indulto

07-29-2009, 04:50 AM

http://www.saratogian.com/articles/2009/07/28/news/doc4a6e6b1e5c64f957805159.txt (http://www.saratogian.com/articles/2009/07/28/news/doc4a6e6b1e5c64f957805159.txt)
NYRA: There's money in an OTB overhaul
By PAUL POST July 28, 2009… New York Racing Association could make money with or without new gaming revenue if Off Track Betting was overhauled, NYRA officials said Monday.

But deep-seated political patronage could stand in the way of serious change, NYRA President Charles Hayward, Chairman Steve Duncker and Vice President-General Counsel Patrick Kehoe said during a meeting with The Saratogian.

… “Racing in New York could be profitable if we just solved the OTB problem,” Hayward said. “They really have become places where good local politicians are sent to max out their pensions. They really are.”

“Unless you’re (Rudy) Giuliani’s cousin,” Duncker said. “Then you get there a lot earlier.”

New York City OTB President Raymond Casey is former New York Mayor Rudolph Giuliani’s cousin. Casey could not immediately be reached for comment.

… “New York City OTB is on the verge of blowing up, which is ironically going to be useful,” Hayward said.

Duncker added, “Things got a lot easier for us when the state took over (NYC) OTB. Now we deal with the governor’s office.”

Last month, Gov. David Paterson replaced former NYC OTB Chairman David Cornstein with Sandy Frucher, an ex-NASDAQ vice chairman and former adviser to Gov. Mario Cuomo. “He’s taking a fresh look at it,” said Hayward, who also praised Capital and Catskill regional OTBs for “running things like a business.”

On another front, however, NYRA is at loggerheads with Nassau Regional OTB, which it’s accused of pirating NYRA races and illegally showing them to customers at home for 75 days, from late January to mid-April. NYRA has demanded that Nassau OTB admit that it knowingly allowed videostreaming. NYRA hasn’t allowed Nassau OTB to show its signal for the past 30 days, and barring a sudden breakthrough, thousands of Nassau County residents won’t be able to watch racing from Saratoga at home when the meet starts Wednesday. …http://www.timesunion.com/AspStories/story.asp?storyID=824994&category=STATE (http://www.timesunion.com/AspStories/story.asp?storyID=824994&category=STATE)
Breeders decry lack of VLT cash
Racing folk say state has been lax in securing vendor for Aqueduct
By RICK KARLIN July 28, 2009…It's been eight years since New York passed a law allowing the slot machine-like VLTs, but leaders have yet to settle on a vendor to install and operate 4,500 devices at Aqueduct.

While New York's lawmakers have been unable to choose an operator, several neighboring or nearby states such as Pennsylvania and West Virginia have set up their own VLT programs. As a result, those tracks are starting to draw horses from New York.

… "The purses are going down and unfortunately the horses are starting to leave," said H. James Bond of Song Hill Thoroughbreds in Stillwater. "It doesn't seem like the state government cares."

… "There's no reason that this couldn't be done," McMahon said of the finalization of Aqueduct's VLTs. "The political climate in New York, the ability of the politicians to work together and do the peoples' business, it doesn't seem to happen anymore. They all have their own agendas."

… Starting Monday, seven companies seeking the VLT rights were scheduled to start making closed-door presentations to the Paterson administration and legislative leaders, plus state budget and lottery officials. …

slewis

07-29-2009, 09:00 AM

If that was the case{and I'm not saying it wasn't} then Nassau OTB and NYRA probably benefitted from having the signal out there by getting additional handle.

Aaron,

You've always made solid posts that are logical and interesting.

In this case you dont get it.

Actually, I think you do but you need me to come out and say it.

These guys could care less about the fans..... I listened to the Francessa interview and in 10 seconds any judge would be able to see what the truth is.

1) OTB knew exactly what they were doing.

2) Haywood and NYRA are 100% wrong by punishing THEIR lifeblood.

3) Plus Haywood is a babbling fool for not getting the name of the "customer rep" he spoke to at OTB when he allegedly called and inquired about streaming video.

Reagardless, considering the fact that the tax payers of this state (and those in Nassau county carry a HUGE burden of that) bailed NYRA out (and folks, dont shower me with the BS that NYRA owned the land), A judge should IMMEDIATELY order the signal on.

This is what I keep saying about NYRA..... to the press they say the fan comes first..... behind closed doors they laugh at the betting public.

Now imagine that if some day a group like HANA were powerful enough to say
"Mr. Haywood, you have 24 hours to get the signal back to the fans in Nassau. Litigate your differences with OTB in the courts, we are all for that.
If not, watch your handle drop 40% per day at Saratoga."

Then you'll REALLY see tubby babble.

miesque

07-29-2009, 09:24 AM

What amazes me about the NYRA/Nassau OTB dispute is I assumed it was a pretty basic business principle that its never a good idea to needlessly piss off your customer base and as well purposely cutting off a revenue stream (after perpetually whining about how you are going to run out of money if you don't get a subsidy quick). This all gets back to the basic issue of what is wrong with racing and that is racing does not think the laws of economics apply to it and and then has the audacity to wonder why the industry is such a shitty state.

aaron

07-29-2009, 09:52 AM

Aaron,

You've always made solid posts that are logical and interesting.

In this case you dont get it.

Actually, I think you do but you need me to come out and say it.

These guys could care less about the fans..... I listened to the Francessa interview and in 10 seconds any judge would be able to see what the truth is.

1) OTB knew exactly what they were doing.

2) Haywood and NYRA are 100% wrong by punishing THEIR lifeblood.

3) Plus Haywood is a babbling fool for not getting the name of the "customer rep" he spoke to at OTB when he allegedly called and inquired about streaming video.

Reagardless, considering the fact that the tax payers of this state (and those in Nassau county carry a HUGE burden of that) bailed NYRA out (and folks, dont shower me with the BS that NYRA owned the land), A judge should IMMEDIATELY order the signal on.

This is what I keep saying about NYRA..... to the press they say the fan comes first..... behind closed doors they laugh at the betting public.

Now imagine that if some day a group like HANA were powerful enough to say
"Mr. Haywood, you have 24 hours to get the signal back to the fans in Nassau. Litigate your differences with OTB in the courts, we are all for that.
If not, watch your handle drop 40% per day at Saratoga."

Then you'll REALLY see tubby babble.
Slewis,
I agree with everything you say about both NYRA and OTB. When I sit in the grandstand at Belmont,not a day goes by that one of the guys mutters "they really don't want us here,we're nothing but a nuisance to NYRA."As I stated before listening to Zimmerman and Haywood was beyond belief. To me both NYRA and OTB,are just organizations for political patronage. If these were real jobs based on merit we would have competent people in charge,not these clowns.

ghostyapper

07-29-2009, 11:51 AM

Looks like the signal's back for nassau

http://drf.com/news/article/105894.html

Java Gold@TFT

07-30-2009, 07:24 AM

VLT presentations go on this week. Steve Wynn was the biggie yesterday. He wants a Las Vegas style entertainment center and not another Yonkers.

http://www.timesunion.com/AspStories/story.asp?storyID=825987

Knowing NY politics the way I do, I can't believe theey will make it before Labor Day.

slewis

07-30-2009, 10:20 AM

Steve Wynn..:lol: :lol: :lol: :lol:

This would of course mean a change of the law. The only reason VLT's are legal is because they are a form of the lottery.

Now Wynn preaches a REAL type casino.

Yeah, Silver and Bloomberg will christen the new place by rolling the dice at the craps table too:lol: :lol:

And after they take 70% of Atlantic City's business away NYRA purses will increase 230%:lol: :lol:

NYS bred maiden Sp weight purses are $120,000.:lol: :lol:

Sure glad I bred all those mares this yr... State breds will be going for $300k and up!!!!!

Java Gold@TFT

07-30-2009, 10:34 AM

slewis

07-30-2009, 10:56 AM

Bloomberg has no say at all so don't worry about him. Silver is a political hack who will make his decision based on whoever greases the palm the best. Three downstate Dems get to make the decision so I'm not sure why NYCOTB didn't put in a bid to get the contract. They could have had it sewn up long before Bloomberg shot them down. :confused:

I said it 3 yrs after 9/11 that if you dont see them up in the next yr... you wont see them at all......

I'll say it again..... You wont see them..... and I think Bloomberg has A LOT more power than you think.

When I see the place open, I'll come back on this forum and apologize... until then I'll keep saying....

You wont see them
You wont see them
You wont see them

Java Gold@TFT

07-31-2009, 07:19 AM

From The Albany Times Union:

Aqueduct franchise fee pegged at $145 millionJuly 30, 2009 at 2:01 pm by James M. Odato
Robert Megna, the director of the state Division of the Budget, today said the DOB is estimating a franchise fee of $145 million will be collected from the operator of an Aqueduct video lottery terminal facility. That “franchise payment” is booked as coming in between April 1, 2010 and March 31, 2011, he said, but added that a selection of a bidder should happen this summer.

Unless that figure is a guess, it could eliminate several bidders that have not proposed giving the state that much in franchise fees.

Aqueduct Entertainment, a group which includes the builders of Casino Niagara (Ontario) has bid $151 million, including $101 up front and $50 million when the facility is up and running; and MGM/Don Peebles has bid $150 million, according to bidding sources. SL Green has proposed a conditional bid of $250 million, including $100 million guaranteed. Others were below those levels in terms of up-front dollars: Wynn put in a bid of $75 million (he said he is willing to up that ante); Penn National bid $5 million; Delaware North bid $100 million, according to sources. Details of the bids have not been made public and some proposed additional payments in stages of a the project. Some bidders say they can open sooner than others: SL Green is promising speedy operation as is Aqueduct Entertainment.

Megna said the state must weigh every penny going forward, particularly on the spending side, but said he didn’t think there would be a need to change the plan to improve the VLT revenues that Louis Cappelli can keep if he builds a $600 million resort, track and racino at the Concord site in Sullivan County. A special bill dealing with Cappelli’s project just passed this session and was supported by Gov. David Paterson.

Looks like a follow the money situation. Didn't Delaware North get the original bid? Now they can't come up with the money.

Indulto

07-31-2009, 12:55 PM

http://www.saratogian.com/articles/2009/07/30/news/doc4a70fc350c535663961896.txt (http://www.saratogian.com/articles/2009/07/30/news/doc4a70fc350c535663961896.txt)
OTB says hands off Off Track
By PAUL POST 07/30/2009… Allowing racetracks to run Off Track Betting would shift millions of dollars away from state and local government, officials said Wednesday.

… "Using OTBs as the reason the entire racing industry is in crisis is just ridiculous," said Jeffrey Casale, president and CEO of Suffolk Regional OTB. "What you’ve got to do is solve the problem of a declining industry. There is a decline in racing interest nationally."

… Capital Region OTB President and CEO John Signor said three main steps would improve OTB significantly. They are:

ä Eliminate or reduce hold-harmless payments to harness tracks. …

… "In the past six years we’ve paid Saratoga Harness $24 million and generated $6 million from their races," Signor said.

ä Regulate out-of-state wagering platforms. Last year, the state allowed non-New York account wagering firms to start taking bets from New York residents. Such firms, however, don’t have to pay the same regulatory fees as OTB, so they can afford to offer customers betting incentives and rewards, drawing business away from OTB. Casale said this is costing New York’s OTBs tens of millions of dollars.

This, along with the economy, has resulted in a major downturn in OTB wagering. …

ä Shared services. The OTBs and racetracks could save money by having the same tote contract, marketing programs and Internet and telephone wagering systems. …http://www.saratogian.com/articles/2009/07/31/news/doc4a7242de49957075258098.txt (http://www.saratogian.com/articles/2009/07/31/news/doc4a7242de49957075258098.txt)
Where are the bettors?
By PAUL POST 07/31/2009… Bettors spent $11.5 billion at New York’s eight video gaming centers last year, nearly five times more than they wagered on racing — $2.4 billion.

Widespread gambling opportunity is the main culprit behind a decline in racing handle among New York residents that’s far outpacing the rest of the nation, officials said Thursday.

Industrywide, racing wagering is down 10.5 percent for the first six months of 2009. In New York, the rate of decline is reportedly 50 percent greater.

… In 1970, the OTB system was founded on a widespread network of betting shops. Today, however, telephone and Internet account wagering is a fast-growth area that some OTBs aren’t taking advantage of because they don’t have the money for such investments, New York Racing Association President and CEO Charles Hayward said.

Last year, the state took over financially-troubled New York City OTB, which might be headed for bankruptcy. The firm may owe NYRA $12 million when the Saratoga meet ends, Hayward said.

"NYRA can ill afford to carry a debt of this magnitude," he said. "We’ve got to get New York City OTB fixed first."

The task force is considering a wide variety of options such as having OTBs consolidate into one entity, letting NYRA run them, privatization, or having a confederation of cooperating OTBs that share services such as tote contract, wagering platforms and marketing programs. The panel is expected to hold two more meetings, in August and September, at undetermined sites.

Van Lindt said he expects Suffolk, Nassau and New York City OTBs to take a hit when Aqueduct Race Track’s racino opens with 4,500 video lottery terminals. "That’s what happened to the Bronx branches when Yonkers commenced their operation," he said.

… "The racing fans, the bettors are what drive this industry," Van Lindt said. "Nothing else." …Talk is cheap.

Java Gold@TFT

07-31-2009, 02:08 PM

Duh, OTB's in NY have lost their business to out of state because they are so dysfunctional. When they first opened in the 70's it was the only way to bet off track and you sufferred the 5% "commission" as a right to bet. Now there are just too many other places to bet without the hassle. At least locally, the phone lines were slow, the website wasn't always accurate and easy to use and I am better off using an out of state source. Even though every one of them says they need to get together on a centralized system, none of them are willing to work with each other to do it. Until they are tied directly into NYRA there will never be any cohesiveness to the problems and that's not happening any time soon.

Indulto

08-01-2009, 03:48 AM

I thought this was the most informative piece on the OTB future committee:

http://www.dailygazette.com/news/2009/jul/31/0731_otb/
Officials call for changes in off-track betting laws
By Justin Mason July 31, 2009… Consolidation could help the state’s faltering off-track betting operations, but any real improvement will require a change in the antiquated way the state’s wagering parlors are governed, industry officials said Thursday

The presidents of four regional OTB corporations and the New York Racing Association all indicated that legislative action would be necessary to cope with dwindling betting handles. But many of the problems facing the state’s race tracks and off-track betting parlors stem from the changes under way in the gambling industry, the group of leaders told the Committee on the Future of Off-Track Betting on Thursday.

… It is also an industry that can’t compete with the explosion of Internet wagering. NYRA President Charles Hayward said the state’s off-track operations appear to be hamstrung by a host of outdated laws that haven’t really adapted since they were enacted nearly four decades ago.

“Statutorily, they’re put in a very difficult position,” he said. “They basically have 1970 parlor-based geographic strategies, when the wagering world has turned to the Internet, which crosses all geographic strategies.”

John Signor, president and CEO of the Capital District Regional Off-Track Betting Corporation, said Internet gambling has drastically changed the amount of wagering at local teletheaters. He said that wagering on one site regulated outside of New York pulled in more than $50 million from state residents who likely would have bet at local OTB outlets or at the tracks themselves.

… New York’s six OTB corporations took in roughly $1.8 billion in wagers last year yet operated at a loss of more than $75 million. Wagering at state race tracks amounted to about $603 million and resulted in a net loss of $45 million, including $34 million for NYRA, which operates Saratoga Race Course.

These operational figures are in stark contrast with the betting at the state’s video lottery terminal outlets, which saw $11.5 billion in wagering. VLTs earned $447 million for the state education system and $360 million for the host tracks.

… Since forming, the committee has discussed a number of changes aimed at consolidation, including establishing a statewide OTB television network and streaming their video operations. Other discussions include allowing NYRA to run the state’s OTB operations, privatizing them or creating franchises.

… “When everybody started taking bigger pieces of the pie, there was a decline,” committee Chairman John Van Lindt said.

… Van Lindt cautioned that the committee hasn’t made any final decisions yet. He said those conclusions that are reached will be based in sound economic reasoning rather than personal politics.

“We’re interested in the numbers end of the game, not the personality end of the game,” he said. “We’re going to try to fashion our report based on the logic that the numbers dictate. No other conclusion serves the people of the state.”

Indulto

08-03-2009, 04:28 PM

Unlike the Schenectady Gazette article in my previous posr, the following editorial from the same source is directly accessible only by subscribers. The excerpts were obtained through google news using a variety of keywords. If anyone has access to the full article and is willing to post a more substantive quote representative of the piece, it would be appreciated.

http://www.dailygazette.com/news/2009/aug/02/0802_edit1/ (http://www.dailygazette.com/news/2009/aug/02/0802_edit1/)
Editorial: Restructure NY's archaic horse racing industry
Schenectady Gazette - ‎Aug 2, 2009‎“The fact that both on- and off-track operations have been consistently losing money, with handle down at both, spells big trouble for the horse racing ...”“All six of the regional off-track betting corporations have seen their business decline in recent years; they lost a collective $75 million last year. ...”“Meanwhile, racetracks across the state lost $45 million last year, with New York Racing Association tracks responsible for $34 million of that. ...”“A single, statewide OTB operation makes the most sense. And why not have OTB managed by the tracks, rather than in competition with them? It is, after all, ...”“It makes more sense for NYRA and other racetrack operators to be responsible for off-track betting. These changes may not solve the fundamental problem that faces the horse racing industry: competititon from lotteries, casinos, Internet gambling, ...”“Paterson is currently studying how to make the state's off-track betting system more efficient and profitable, with recommendations due later this year. ...”http://www.nypost.com/seven/07312009/news/regionalnews/deal_a_good_bet_for_damato_182229.htm (http://www.nypost.com/seven/07312009/news/regionalnews/deal_a_good_bet_for_damato_182229.htm)
DEAL A GOOD BET FOR D'AMATO
By FREDRIC U. DICKERJuly 31, 2009… Former Sen. Alfonse D'Amato obtained one of three no-bid contracts from cash-strapped New York City OTB that came under criticism in a still-secret audit from the state comptroller, The Post has learned.

D'Amato's one-year contract, for $144,000, was among the contracts criticized for being awarded with "no written justification showing the need for the contracts and no indication officials had determined whether in-house staff could provide the services instead of consultants."

… D'Amato received his contract in June 2007 on a vote of an OTB board then headed by Chairman David Cornstein, a jewelry magnate and longtime D'Amato friend.

D'Amato insisted he had performed extensive services under the contract, which ended in June 2008.

"We tried to negotiate better terms for OTB with the New York Racing Association, we talked about expanding the availability of slots, video lottery terminals, in the [OTB tele] theaters . . . we talked about merging them," said D'Amato. …

Indulto

08-05-2009, 08:25 AM

http://www.drf.com/news/article/106089.html (http://www.drf.com/news/article/106089.html)
New York OTB to seek overhaul
By Matt Hegarty 8/4/2009… New York City Off-Track Betting Corporation will submit a plan to … significantly overhaul the company in an attempt to restore it to financial stability, the new chairman of the company said on Tuesday.

Meyer "Sandy" Frucher, who was installed as chairman of the state-owned company in June, said the plan would seek to swiftly address the company's deteriorating financial condition. He said he believed that New York's largest racetrack operator, the New York Racing Association, would likely play a significant role in offtrack betting operations.

"There are no opportunities for us that can be presented incrementally or by repackaging the company with baling wire," Frucher said. The plan "has to deal with past obligations that can't be met. It has to deal with structural issues that have to be fixed. And it has to deal with recapitalization of a model that is decades old. You simply can't fix this incrementally."

As for the role of NYRA in the plan, Frucher said, "It's safe to say we will be working together."

… Patrick Kehoe, the legal counsel for the NYRA, said ... that the state was facing the likelihood of having to subsidize the company to keep it afloat.

"It does take a crisis, and I think we have a crisis teed up here," Kehoe said. "So we're working in that direction. Something is going to have to be done here. The fiscal health of New York City OTB is important to all the players, to NYRA, to the other OTB's, and to the sport in the state."

… Frucher, a former member advisor to Gov. Mario Cuomo, said that his ultimate goal was to create a "leaner, meaner OTB."http://www.nytimes.com/2009/08/04/opinion/04tue3.html (http://www.nytimes.com/2009/08/04/opinion/04tue3.html)
The Off-Track Betting Mess
Editorial August 3, 2009… Attorney General Andrew Cuomo — or somebody with subpoena power — needs to investigate how operations that should be able to help keep the state afloat manage to lose so much money instead.

Investigating OTB operations in New York State will be like digging into a toxic swamp, but here’s the place to start: politicians have used these betting parlors for years to house friends and family who needed jobs. They are patronage nests. And the extra layers particularly infuriate those in the horse-racing business in New York State because they siphon off profit that is supposed to go to the Saratoga, Belmont and Aqueduct racetracks, which really need it.

… Gambling is destructive enough in the way it cleans out the pockets of too many people who need every dollar. When these parlors don’t make enough money to pay for themselves — much less help the state’s horse-racing industry — they are a drag on everybody. Mayor Michael Bloomberg wisely stopped New York City from subsidizing these dreary establishments. Governor Paterson must also make sure not a single taxpayer dollar is going to keep New York City’s gambling dens alive.http://www.saratogian.com/articles/2009/08/05/news/doc4a78faeb6d290672614011.txt (http://www.saratogian.com/articles/2009/08/05/news/doc4a78faeb6d290672614011.txt)
NYRA to sue Nassau OTB
By PAUL POST August 5, 2009… New York Racing Association plans to counter-sue Nassau Regional Off Track Betting for its alleged unauthorized video streaming of NYRA’s racing signal.

… OTB denies the charge, saying two other firms have accepted responsibility. It filed a $30 million lawsuit against NYRA and its president and CEO, Charles Hayward. In part, the suit charges Hayward with defamation of character for making public comments that allegedly characterize OTB officials as liars and cheats.

“It will play out in the courts,” Hayward said Tuesday of the two suits. “It’ll cost a lot of money and waste a lot of time, but that’s what’s going to happen.”

He said NYRA would welcome some type of out-of-court settlement, but isn’t optimistic it will happen.

“We tried to settle numerous times, including the last day before the (Saratoga) meet,” Hayward said. “All the facts will come out in a court of law. We are going to seek some damages.”

… NYRA’s position is that OTB got free use of its signal for 2-1/2 months — 45 actual race days — when other firms had to pay for such a service. “If we let them get it for free, the other firms would say, ‘Hey, we want the same thing,’ ” Hayward said.

In June, after OTB refused to acknowledge any wrongdoing, NYRA pulled its signal from thousands of Nassau County homes. Fans could no longer watch racing from Belmont Park on Cablevision’s racing channel. OTB is suing NYRA for discontinuing the service.

... NYRA was going to continue the ban during the Saratoga meet, but relented at the request of New York State Racing and Wagering Board Chairman John Sabini.

“Even if we’re right, people would think we were the bad guys by not showing the signal,” Hayward said.

Despite the two suits, Amoroso said he admits OTB should pay NYRA for the 45 days of free service it got.

“Let’s figure out what it was,” he said.http://www.troyrecord.com/articles/2009/08/05/news/doc4a790240b9d10117583398.txt (http://www.troyrecord.com/articles/2009/08/05/news/doc4a790240b9d10117583398.txt)
Horseman assails OTBs
By Paul Post August 5, 2009… “It has to start with New York City OTB,” said Rick Violette, New York Thoroughbred Horsemen’s Association president. “That’s the most reasonable goal.”

He said there’s a $100 million gap between what it costs to keep horses and the purse levels offered at New York’s thoroughbred tracks. Video gaming at Aqueduct Race Track will help, but isn’t enough to solve the problem alone, he said.

“We need OTB to work,” he said. “To keep going with what hasn’t worked for 25 years isn’t adequate.”

Violette said the six regional OTB corporations should be merged into one entity.

“Absolutely,” he said. “Absent the fiefdoms of leadership, the rank and file would still keep their jobs.”

At the very least, the tracks and OTBs should have shared services such as one tote contract, marketing program and account wagering platform, he said. …

Indulto

08-06-2009, 01:43 PM

http://www.timesunion.com/AspStories/story.asp?storyID=828084&category=STATE (http://www.timesunion.com/AspStories/story.asp?storyID=828084&category=STATE)
A bad bet in race for dollars
OTB-NYRA feud over future bubbles up at Saratoga conference on industry
By JAMES M. ODATO August 5, 2009...NYRA President Charles Hayward apologized for his unflattering comments about off-track betting operations, and took a hit from Sandy Frucher, Gov. David Paterson's point man for the state's biggest OTB.

Hayward called for a restructuring of the off-track betting competitors, but said he should have chosen his words more carefully in an interview with the Saratogian. "Racing in New York could be profitable if we just solved the OTB problem," Hayward said in the interview. "They really have become places where good local politicians are sent to max out their pensions. They really are."

Before lawyers, lobbyists and racing and wagering professionals at the annual conference -- conducted by Albany Law School during the Saratoga racing meet -- Hayward said, "I'd like to take back that comment."

… During the question-and-answer session at the Gideon Putnam Hotel, New York City OTB head Frucher criticized Hayward. "The best publicity you get in years is when you attack New York City OTB," Frucher said."Congratulations on the new strategy."

Hayward offered an apology for "personalizing" his OTB criticism.

NYRA Chairman Steve Duncker, who joined Hayward in last week's meeting with the Saratogian editorial board, had followed up Hayward's comments by noting that some patronage comes if you are Mayor Rudolph Giuliani's cousin -- a less-than-subtle reference to NYC OTB President Raymond Casey, the former mayor's cousin.

At the conference, Casey asked a reporter if he could see a knife sticking from his back as Frucher discussed Hayward's comments. …http://www.nydailynews.com/opinions/2009/08/03/2009-08-03_take_the_blinders_off.html (http://www.nydailynews.com/opinions/2009/08/03/2009-08-03_take_the_blinders_off.html)
Take the blinders off: Aqueduct deal must be made in public
EDITORIAL August 3rd 2009Gov. Paterson and legislative leaders are barreling ahead with an ill-conceived plan to bring casino-style gambling to Aqueduct Racetrack in what's shaping up as one of the worst closed-door deals of all time.

… What each offers is unknown because Paterson, Assembly Speaker Sheldon Silver and Senate Temporary President Malcolm Smith refuse to make the proposals public. Nor have the officials explained the grounds on which they plan to choose one bidder over the others.

The secrecy is unacceptable. Opening New York City to legalized gambling would be a momentous step, one that must not be taken in the dark. The demand for openness is only heightened by the millions of dollars that will be at stake every year.

Well before they make a decision, Paterson, Silver and Smith owe the public a look at the pretty pictures and pretty numbers that are being thrown about in presentations by lobbyists galore.

To our way of thinking, making a gambling mecca of Aqueduct is a bad idea. The 210-acre property in Ozone Park, vacant most of the year, would be far better used as a site for affordable housing or other economically beneficial purposes. Meanwhile, the track's share of horse racing could easily be shifted to Belmont, just eight miles away. … http://www.timesunion.com/AspStories/story.asp?storyID=825987&category=STATE (http://www.timesunion.com/AspStories/story.asp?storyID=825987&category=STATE)
'Big A' hunter makes a six-star pitch
By JAMES M. ODATO July 30, 2009Casino impresario Steve Wynn … stopped in Albany on Wednesday to give state officials an hour-long presentation about his vision for a video lottery terminal facility at Aqueduct Race Track.

In an interview with the Times Union, Wynn pledged to change the model from what he characterized as the "awful" VLT racinos now found in New York state.

… Wynn said his "Big A" property would be a high-end, Wynn-branded facility that would make the state proud, and not be just a warehouse for gambling.

… "We know it's a racino. Racinos are grandstands with slot machines that are awful. I'm talking about entertainment and a place that's fun -- not Yonkers," he said, referring to the kind of VLT parlor currently operating at Yonkers Race Track and seven other tracks.

… The mogul also revealed that he sweetened his promised up-front payment to the state from $75 million to $100 million during Wednesday's meeting with representatives of Gov. David Paterson and majority legislative leaders, who will have to unanimously agree on a bidder.

… Woolf's Aqueduct Entertainment group is up against Wynn as well as other bidders with name brands, including Hard Rock, Delaware North and MGM. Like Wynn, Woolf's group would build an entertainment venue, but not one as grandiose as in Wynn's plan.

"This place doesn't need to have Vegas," said Woolf. "He would have a hard time not being over the top. He's never done four-star; he does five- and six-star. We're going to have Corona Italian ice and hotdog vendors like a New York City neighborhood, but not a six-star facility like Wynn proposes." …

Indulto

08-15-2009, 01:58 AM

http://www.drf.com/news/article/106357.html
New York City OTB is broke, audit says
By Matt Hegarty8/14/2009… the state-owned agency that has a monopoly on taking offtrack parimutuel bets from residents of New York's five boroughs, has an operating deficit of $38 million, an accumulated deficit of $228 million, and will be insolvent soon without legislative help or the implementation of drastic cost-cutting measures, according to an audit conducted by New York State Comptroller Thomas P. DiNapoli released on Friday.

The audit, which analyzed the operations of the state-owned company over the past four fiscal years, concludes that OTB's financial problems are largely related to its obligations to the racing industry and state and local governments. However, the auditors stressed that conclusion only after OTB officials repeatedly pointed out that an independent consulting group and its own accountants had concluded over the past several years that no amount of cost-cutting could restore the company to solvency.

… If the goal is to keep OTB viable, serious consideration must be given to changing the mandated state formulas and restructuring operations to coordinate different aspects of the racing industry."

DiNapoli's office conducted the audit at the direction of Gov. David Paterson, who last year negotiated the takeover of New York City OTB from the city of New York after Mayor Michael Bloomberg threatened to close the operation. The audit covered New York City OTB's operations from July 2004 through October 2008.

… The auditors take issue with OTB's calculation of the total of mandatory distributions, however, contending that approximately $24 million of the $128.6 million total is not mandatory but is instead paid to out-of-state racetracks and the New York Racing Association because of simulcasting contracts. In a response, OTB contended that 32 percent of the payments could be considered mandatory because of a contract negotiated by NYRA, "which the corporation does not get to negotiate."

… Frucher has also said that OTB could benefit from a closer relationship with NYRA, which has been pressing for a consolidation among OTBs and racing interests for years.

If OTB and NYRA agree on a new relationship, it is likely the two organizations will go to the legislature jointly to ask for relief, according to officials.http://www.thoroughbredtimes.com/national-news/2009/August/14/New-York-OTB-model-to-get-serious-overhaul.aspx (http://www.thoroughbredtimes.com/national-news/2009/August/14/New-York-OTB-model-to-get-serious-overhaul.aspx)
New York OTB model to get serious overhaul
by Paul Post August 14, 2009… “I don’t consider a crisis a bad thing,” said Frucher, who was appointed chairman by Paterson last month. “It forces a serious reality check. It’s going to take extraordinary action, but I don’t think it’s an insolvable issue.”

Last year, despite losses ranging from $600,000 to $800,000 per month, New York OTB still distributed $100-million to New York’s racing industry. Currently, however, it owes the New York Racing Association $12-million.

While stopping short of specifics, Frucher described the organization as overly labor intensive. Also, he said OTB needs to develop telephone and Internet account wagering instead of relying on its original 1970s-era system of betting shops.

… In addition to its failed business model, debts have continued to mount because of declines in racing handle.

“The entire racing industry is challenged,” Frucher said. “That’s our underlying product.”

… “However, it was set up in such a way that it’s been competing with racing as opposed to working in partnership with it,” Frucher said. “It’s time for us to take an across-the-board kind of look at this.” …

Indulto

08-15-2009, 07:11 AM

http://www.nytimes.com/2009/08/13/opinion/13thu3.html?_r=1 (http://www.nytimes.com/2009/08/13/opinion/13thu3.html?_r=1)
Rotten in Ozone Park
Editorial August 12, 2009Dreams of reviving the Aqueduct racetrack in Ozone Park, Queens, with a 4,500-slot-machine casino have been stumbling along since 2001 when the Legislature passed laws allowing a major expansion in New York’s gambling industry. Racing would continue in the winter, and the year-round casino would occupy what is now a crumbling and disused part of the grandstand.

… Of course, the public has no sure way of knowing how the developers plan to make this happen since the selection process — the lobbying and deal making — is going on in secret. Even more regrettable is the idea that the only way to revive the Aqueduct is to turn it into a casino. Whatever benefits the new grandstand brings would not cover the price in addiction and broken lives that comes along with those 4,500 video gambling terminals.

The Aqueduct obviously needs a makeover. Go there on the A train, and you will see. Up in the grandstand, all is darkness and decay. …

… Aqueduct was a vibrant place back in the ’50s and ’60s. Now it is suffering along with the sport of horse racing, which has declined in popularity among a younger generation. Winter racing also requires a particularly hardy breed of horse player. ...http://www.crainsnewyork.com/article/20090814/INS/908139977/1006 (http://www.crainsnewyork.com/article/20090814/INS/908139977/1006)
Sampson gaining in Senate struggleWho’s in charge of the state Senate? Weeks after the Democrats regained their majority and ended the June power struggle, the leadership issue remains unresolved. The titles are known—Malcolm Smith is president, John Sampson is conference leader, Pedro Espada Jr. is majority leader—but the identity of the ultimate decision-maker remains a mystery.

… Lobbyists, taking no chances, are reaching out to multiple sources to advance their clients’ interests. “Until we know for sure, we’re trying to cover all the bases: Sampson, Malcolm, Eric Adams, Pedro,” says a source in the lobbying community. Why Adams? “Adams seems to be an up-and-coming player and a rising star in that conference,” the source says.

On a side note, Adams doesn't mention Smith when asked who will determine the chamber’s pick for the Aqueduct racino project. “The decision comes through my committee,” the Racing, Gaming and Wagering chairman reports by e-mail. “I will give my recommendation to Sampson who will make the final decision with me.” The Assembly and the governor must agree, he notes.

PaceAdvantage

08-15-2009, 07:03 PM

"The Aqueduct?" :lol:

I'm reminded of this when I hear that:

Qc7HmhrgTuQ

Indulto

08-16-2009, 03:35 PM

http://www.osc.state.ny.us/press/releases/aug09/081409.htm (http://www.osc.state.ny.us/press/releases/aug09/081409.htm)
DiNapoli: NYC OTB Facing Mounting Losses, Insolvency Looms
PRESS RELEASE August 14, 2009… The review of the NYC OTB’s finances found:

Financial condition deteriorated: From fiscal years 2004-05 to 2007-08, NYC OTB collected about $1 billion a year in wagers, but accumulated growing operating deficits, totaling about $38 million. In fiscal year ended June 30, 2008, NYC OTB took in a total of $998.2 million in wagers. The winning bettors received approximately $760.9 million, and statutory distributions, totaling $128.6 million, were made to the horse racing industry ($93.2 million), New York City and local governments ($20.2 million) and New York State ($15.2 million). NYC OTB was left with $116.1 million to cover its operating expenses, which were $133.9 million, leaving it with an operating deficit for the year of $17.8 million.
Distribution formula changes not enough: The NYC OTB’s statutory distributions are a significant financial outlay. By far the most significant of these distributions are to the horse racing industry. Over a four-year period, distributions to the industry totaled $386 million and accounted for more than 72 percent of the NYC OTB’s total $533.5 million in statutory distributions. Legislative changes in June 2008 to allow the NYC OTB to retain more of its revenue have not had a significant impact on the organization because wagers are down and are expected to remain down due to economic conditions.
No comprehensive assessment of operating expenses: While management has taken action to address operating deficits, it has not performed a detailed assessment of its operations or developed a plan for achieving cost reductions by specific dates.
To achieve potential cost savings, DiNapoli recommends that NYC OTB:

Conduct a formal evaluation of executive, management and branch staffing.
Examine the wide variations in operation expenses for branch offices. For instance, when comparing operating expenses as a percentage of handle, some offices have operating expenses of 6 percent while others are as high as 27 percent.
Review consultant contracts to determine if they can be reduced or eliminated. Auditors examined three of the largest consultant contracts and found no written justification for the contracts, none had been selected through a competitive process and no evaluation was done as to whether these services could be performed in-house.
Determine if the organization needs 87 vehicles, including the 22 vehicles assigned to executive and management staff. Auditors were unable to find any written justification governing the assignment of vehicles. In addition, vehicle logs were not properly maintained and did not include information on who was going where and for what purpose. Each vehicle costs about $6,700 a year to maintain.
… Click here (http://www.osc.state.ny.us/audits/allaudits/093009/08s147.pdf) for a copy of the audit. …

Java Gold@TFT

08-18-2009, 06:23 AM

Indulto, today's new VLT flavor of the day:

http://www.timesunion.com/AspStories/story.asp?storyID=832181

Gov. David Paterson's administration has been taking bids on a facility that would offer 4,500 video lottery terminals, already a very large gaming facility. Bidders had until last Friday to amend financial aspects of their proposals, and have until Wednesday to make nonfinancial adjustments.

But Aqueduct Entertainment Group, one of six bidders seeking to build and operate the track racino, also has proposed a facility with up to 10,000 VLTs. It promises $151 million up front for the 4,500-slot facility, but would add another $100 million if the state authorizes 7,650 video slots and another $50 million on top of that if the state allows 10,000 machines.

AEG includes former MGM chief executive Larry Woolf, as well as the Rev. Floyd Flake, the former congressman from Queens whose congregation includes Democratic state Sen. Malcolm Smith, the chamber's temporary president.

The group asserts that it can build and open a facility faster than the competition. It has been has been among the most aggressive bidders, even airing ads in New York City that question the high-end facility envisioned by a competitor, Las Vegas casino creator Steve Wynn.

I still doubr a Labor Day decision. They haven't made one of theri deadlines yet in 8 years.

Indulto

08-29-2009, 08:30 PM

http://www.drf.com/news/article/106765.html
Computer betting may be 10% of national handle
By Matt Hegarty8/28/2009Sophisticated computer programs that often send huge, payoff-changing wagers only seconds before the close of betting are now accounting for approximately 10 percent of the national wagering handle …

… An estimated $1.5 billion in computer-generated wagers - a number that is disputed by some racing officials - is being bet by six or seven teams of mathematicians and programmers that benefit from some of the most lucrative rebates in the industry. The teams bet through either Elite Turf Club or Racing and Gaming Services, both based in the Caribbean.

… Since several large racing operations, including the New York Racing Association, prohibit the programs from betting into their pools, the computer teams almost certainly account for far more than 10 percent of the handle on some races at certain tracks.

… "Our position remains that they have unfair advantages," said Hal Handel, the chief operating officer of NYRA. "It's been documented. Just look at the negative settlements. Look at the effect they have on your players, the impact on payouts, churn. They are not good for New York racing, and they are not good for the fans of New York racing."

… the teams may have scaled back their wagering from an estimated high of $2 billion because of a sizable decline in overall handle. Betting by the teams is limited by the amount of money in the pools according to the law of diminishing returns, a principle that applies to any big bettor in parimutuel wagering.

… An official who works closely with a computer wagering team contended this week that the $1.5 billion estimate was too high, although the official also said that the teams would bet at least $1 billion this year, or 8 percent of the national handle.

… Racing officials, including supporters of the programs, agree that the computers are unprofitable without rebates that can go as high as 15 percent of handle on certain bets - a circumstance that suggests that rebates tilt playing fields in a betting system that, theoretically and by definition, is supposed to treat all players equally. Although the question of whether rebates are appropriate in parimutuel betting appears to have been settled, there is still some controversy regarding the computer programs' ability to peer into the bet-processing system and make bets at a speed and volume that a human cannot match. ...This certainly explains why NY Pick Six pools are so much smaller than those in CA despite NY’s offering lower takeout on non-carryover days. Who besides NY doesn’t accept wagers from the above offshore rebate shops, and is the restriction on all pools for every track with this policy? If such data is not already in HANA’s track table, perhaps it should be.

Does this mean the non-professional player has a friend in NYRA?

Spendabuck85

08-31-2009, 03:34 PM

From Las Vegas Review Journal:
The bidding for a casino at New York's Aqueduct racetrack has turned into an old-fashioned Wild West shootout.
The stakes are high for gaming's biggest players.
The bidding process has drawn proposals from six groups, each with its own gaming company component. The list includes MGM Mirage, Wynn Resorts Ltd., Penn National Gaming, Hard Rock Entertainment, Larry Woolf's Navegante Group, and Harrah's Entertainment, which joined a Buffalo, N.Y.-based consortium last week.
Paterson could make the selection by Labor Day. But the governor also faces scrutiny. The Daily News reported one of his legal advisors once represented the Buffalo-based bidder that partnered with Harrah's.

Full article at:
http://www.lvrj.com/business/56171807.html

Indulto

09-02-2009, 05:42 AM

http://www.bloodhorse.com/horse-racing/articles/52367/paterson-authorizes-nycotb-reorganization?source=rss (http://www.bloodhorse.com/horse-racing/articles/52367/paterson-authorizes-nycotb-reorganization?source=rss)
Paterson Authorizes NYCOTB Reorganization
(Edited press release) September 1, 2009… Paterson has directed the NYCOTB board of directors, led by Chairman Meyer “Sandy” Frucher, to provide the governor’s office with a restructuring plan within two months, which likely will include a Chapter 9 filing for NYCOTB.

… After a year of study and intense effort at reorganization, we have determined that Chairman Frucher and the NYCOTB board need the tool of a Chapter 9 restructuring to keep NYCOTB in operation.”

… Declining wagering revenues, an outdated business model. and an unfavorable statutory funding formula are contributing factors to NYCOTB’s insolvency.

… Frucher’s findings are supported by an audit produced by the New York State Comptroller’s Office, which recognized NYCOTB as a critical component of the horse racing industry that it called “too important to fail.” The comptroller’s report added that “inaction will mean insolvency.”

At Paterson’s direction, the NYCOTB Board’s restructuring plan will focus on reducing NYCOTB’s expenses, and will include recommendations to modernize the operational model to meet the demands of a changing wagering demographic.

… NYCOTB handles almost half of the total amount of money wagered on horse racing annually in New York State.

New York Racing Association president and CEO Charles Hayward said: “NYRA applauds the bold initiatives that Gov. Paterson and Chairman Frucher are undertaking to reorganize NYCOTB, which plays a critical role in the horse racing industry and the economy of New York State. We pledge to work with them in advancing the interests of racing industry stakeholders and the citizens of New York.”http://www.nytimes.com/2009/09/02/nyregion/02otb.html?hp (http://www.nytimes.com/2009/09/02/nyregion/02otb.html?hp)
OTB Is in Financial Trouble, but It’s Ready to Roll
By RUSS BUETTNER September 1, 2009 … On Tuesday, Gov. David A. Paterson issued an executive order authorizing OTB to file for bankruptcy protection, saying the operation had hemorrhaged money because it lacked accountability. The bankruptcy, under Chapter 9 of the federal bankruptcy code, could allow OTB to ease its debt burden and cut costs by renegotiating union contracts and closing some parlors, the governor’s office said.

… During the audit, OTB officials displayed a knack for numbers unbecoming of a bookmaker. They reported that the director of software development put fewer than 100 miles a year on his car. They said OTB’s general counsel had logged nearly 1 million miles on his 2002 Impala.

… Letting officials take the cars home at night saves OTB the cost of expensive overnight parking near its headquarters in Times Square, where about 250 employees are based, said the organization’s executive director, Raymond V. Casey.

Cutting back on the use of vehicles is unlikely to solve OTB’s larger financial problems. Mr. Casey said OTB is hobbled because it is required to pay the horse racing industry and the state before covering its own expenses. In 2008, those payments amounted to more than half of the $245 million that OTB brought in after paying winning bettors.

… Mr. DiNapoli has his job in part because of a scandal involving official vehicles. His predecessor, Alan G. Hevesi, left office after admitting he had allowed his ailing wife to use a state car and driver for private matters.

Part of OTB’s payroll reads more Nascar than Triple Crown. It has employed three automotive mechanics, seven drivers and a motor vehicle supervisor, who, combined, earned $500,000 a year. In addition to those salaries, the state comptroller found that gas, insurance and outside repairs cost $585,000 a year.

Though much of its fleet has aged, OTB bought four new Ford Explorers in 2007. One went to its in-house lobbyist. That came as OTB hired Park Strategies, a lobbying firm founded by former Senator Alfonse M. D’Amato, under a no-bid contract for $12,000 a month, a move also criticized by the comptroller.

There is no magic formula to determine an appropriate fleet size for an operation like OTB. But consider that the State Department of Taxation and Finance, with 89 vehicles, has a similar fleet but a much more sweeping mission, including inspecting retail businesses and cigarette sellers across the state. Of its fleet, 82 cars are available to investigators, and none are assigned to executives, said Thomas Bergin, a tax department spokesman.

The city’s subway system — used occasionally by the mayor and almost exclusively by city workers involved in questions as urgent as child welfare — does not appear to have been a popular choice for travel for OTB executives. …

Indulto

09-03-2009, 07:28 AM

http://www.drf.com/news/article/106904.html (http://www.drf.com/news/article/106904.html)
N.Y. OTB plans to seek major concessions
By Matt Hegarty 9/2/2009… The changes, which will almost certainly include modifications to the statutes that determine how much of the company's revenue goes to the racing industry, will be presented to the legislature in early 2010, according to Sandy Frucher, the chairman of the corporation. By that time, Frucher said, New York City OTB hopes to have convinced a federal bankruptcy judge that the company will be able to reorganize itself as a viable, solvent organization as long as the legislature votes to approve the package of changes.

"It will be presented as an up or down situation," said Frucher, in reference to the legislature's vote. "If the legislature's rejects it, someone will have to come up with $250 million."

… Frucher said that the company will likely press for a change in how its distributions are calculated. Currently, the distributions are calculated from the company's gross revenue, but the company is prepared to push for a distribution based on net revenue, or the amount left after expenses are subtracted from the gross.

Any change to the distribution formulas would almost certainly have a negative impact on Thoroughbred and harness tracks, which could present formidable hurdles to approval. Charles Hayward, the chief executive of the New York Racing Association, said that he believed the formulas could be tweaked to eliminate subsidies to the harness industry, but he also said that he believed NYRA deserved the share it received.

"We need to carefully protect our interests," Hayward said. "As long as we're being fairly compensated, we will support it."

It is unclear, so far, if the changes contemplated by New York City OTB will also apply to the state's five other OTB companies. ...

... In addition to changes to its distribution formulas, Frucher said that OTB would also seek to close a number of its 60 branches and negotiate new leases on existing facilities. The company will seek to renegotiate labor agreements with the unions representing the majority of its workers, who account for $500 million in unfunded obligations on the OTB's balance sheet.

Frucher stressed that New York City OTB would honor all of its existing obligations to its workers, and he said that the company was seeking only to reorganize while using Chapter 9 as a shield against its creditors. Chapter 9 bankruptcy was created in 1975 by federal law to protect municipalities facing bankruptcy - at the time, New York City was nearly insolvent - and since then, fewer than 200 municipalities or government-owned agencies have used the code. …http://www.thoroughbredtimes.com/national-news/2009/September/02/Aqueduct-gaming-operator-to-be-named-after-Labor-Day.aspx (http://www.thoroughbredtimes.com/national-news/2009/September/02/Aqueduct-gaming-operator-to-be-named-after-Labor-Day.aspx)
Aqueduct gaming operator to be named after Labor Day
by Paul Post September 02, 2009New York Gov. David Paterson promised Tuesday that an Aqueduct gaming operator would be named shortly after Labor Day.

... Paterson said private consultants have advised him which group would make the best choice. However, the decision also requires approval from the state’s legislative leaders, Assembly Speaker Sheldon Silver (D-Manhattan), and Senate president Malcolm Smith (D-Queens).

“What is troubling about this process is that three people have to agree,” Paterson said. “Right after Labor Day I’m going to meet with the two other leaders and see how they reached their decisions and who they prefer.”

“This time we’re going to get this done quickly,” he pledged.

... Organizations are believed to be offering the state upfront payments ranging from $100-million to $300-million. However, officials also will be looking closely at the amount they believe each firm can generate for the state over the life of the contract.

"I don’t think either NYRA or the breeders have a strong preference," said New York Racing Association board member Barry Ostrager about the gaming operator’s selection. "The main thing is to get it up quickly and have a firm with experience and integrity. That’s what we’re looking for."

Indulto

09-15-2009, 05:40 AM

http://www.horseraceinsider.com/blog.php/Zasts-TrackWords/comments/2009-09-14the-cost-of-procrastination/#comments (http://www.horseraceinsider.com/blog.php/Zasts-TrackWords/comments/2009-09-14the-cost-of-procrastination/#comments)
The Cost of Procrastination
By Vic Zast September 14, 2009 …The Aqueduct racino, with its life-giving revenues, will become operative in spring 2011, long after the New York Racing Association has run out of money again. Consistent with the speed by which money is currently spent, the Thoroughbred sport in the Empire State can expect to face financial crisis toward the end of next year.

… Unfortunately, the bloom on the rose has faded. There's still money to be made, but not as much. According to the New York Times, casinos and lotteries throughout the United States are reporting a drop in revenues for the first time. …

… Whichever group is granted the license to proceed with the Aqueduct racino will be sailing into a headwind. Kentucky, too, will be facing a similar disadvantage once legislators in the Commonwealth wake up to the reality of losing its Thoroughbred business. …

… the closing of racetracks in New York is foreseeable, at least on a short-term basis. Churchill Downs cut back on racing to make ends meet in the spring. Del Mar, operating one day shy of its allocation, saw daily handle and attendance rise to levels that enabled it run more profitably than budgeted. Off-track wagering on winter racing is what enables NYRA to pay bills throughout the year. But when the payables become more than the revenues can handle, there are problems. …

... It’s been a long spell since the popularity of the sport, when conducted under normal circumstances, can uphold its presentation without outside assistance. Purists decry the presence of unthinking gamblers in their midst, the glare of garish neon that beckons them there and the embarrassment of the State-granted hand-out that comes with the sell-out. Yet, like it or not, horse racing is on welfare.

... The game’s tentacles range wide. Fasig-Tipton’s recent auction of New York-bred horses showed declines of 40 percent in the median price paid and nearly 25 percent for the average. The breeders must get on top of the situation now, instead of waiting on fate. So, too, do the farmers, feed companies, off-track betting satellites, and fans. Next time around, the sugar daddy might be broke. …

Spendabuck85

09-25-2009, 08:24 AM

http://www.saratogian.com/articles/2009/09/24/news/doc4abae40d7d19d211790499.txt

By PAUL POST, The Saratogian

Previously, Paterson said a gaming operator would be named by Aug. 1. However, that deadline was missed because of an unprecedented Senate coup that paralyzed state government. Later, it was expected that a decision might be made by Labor Day, or mid-September.

Now those dates have faded into history and the state marches closer toward the precipice of fiscal disaster.

“Everybody in the horse racing industry is extremely frustrated,” said Jack Knowlton, managing general partner of Sackatoga Stable. “We continue to be told a decision is coming, and no decision is made. The horse racing industry, the breeding industry and the state are hurting. We just don’t seem to have anyone in the state who thinks this is a priority, including the governor, who has primary responsibility for getting us out of the budget mess we’re in.”

aaron

09-25-2009, 08:31 AM

In all the articles,the one faction of racing omitted is the horseplayer.

Indulto

09-26-2009, 12:38 PM

http://www.bloodhorse.com/horse-racing/articles/52698/bidding-for-aqueduct-vlt-project-tightens?source=rss (http://www.bloodhorse.com/horse-racing/articles/52698/bidding-for-aqueduct-vlt-project-tightens?source=rss)
Bidding for Aqueduct VLT Project Tightens
By Tom Precious September 26, 2009Negotiators in New York have tentatively narrowed down the bidding list to three entities to run the long-delayed video lottery terminal casino at Aqueduct, and a final decision could come as early as the week of Sept. 28.

Gov. David Paterson told legislative leaders in a closed-door meeting Sept. 24 he believes the selection should be among bidding groups led by Manhattan real estate developer SL Green, Las Vegas casino executive Steve Wynn, and Buffalo, N.Y.-based Delaware North, according to sources with knowledge of the session.

… Two people involved in the talks cautioned that the situation is still fluid, especially with the unknown fallout since word surfaced the past week that President Barack Obama has lost confidence in Paterson and his ability to get elected in 2010 to a full term.

… In one of the more unusual bidding processes, groups vying for the VLT deal have been able to change their offers to the state months after they supposedly submitted their final bids.

… While there was no resolution at the meeting, sources involved in the discussion said state lottery officials raised some doubts about two bidding entities: a group led by MGM Mirage and another called Aqueduct Entertainment Group, which includes a Las Vegas casino firm, a construction company, and a group connected to a politically influential minister in Queens.

… Despite the downturn in the gambling industry, it is considered a major prize because of its location in New York City, where it would be the only legally operated casino in the five boroughs. The project, whenever it opens, is expected to generate millions for the New York Racing Association, as well as for purses and breeding programs.

Java Gold@TFT

09-26-2009, 04:55 PM

Indulto

09-26-2009, 06:27 PM

Indulto, Thanks for following this for us as diligently as you do. I just wish every story wasn't the same - "After 8 years of waiting the governor still can't decide who will be allowed to run VLT's at Aqueduct even though they have been in place at multiple harness tracks and the state claims they are losing $1M each day they don't act." It's the same thing every time, it's just the excuse tha chnages.

Anyway, I couldn't find what I was looking for and wondered if you could help. I am 99% positive that I read a story in the Albany TU during Travers week that Paterson was having a 2010 election campaign fundraiser in Saratoga either on the Thursday or Friday night before the Travers. The sponsor of the fundraiser was Delaware North. I know I read it and am not imagining it. I never saw any kind of blowup of the inappropriateness of such an event. Do you remember seeing this? Thanks.JG,
I googled "paterson fundraiser Saratoga" and got many hits including this one:

http://www.crainsnewyork.com/article/20090902/INS/909019951 (http://www.crainsnewyork.com/article/20090902/INS/909019951)
Crain’s Insider 09/02/2009 Paterson fundraiser draws scrutiny

Gov. Paterson is facing criticism for attending a fundraiser for his campaign that was hosted by an Albany lobbying firm whose principal is involved in one of the Aqueduct bids—just as the selection process for the lucrative contract to build a slot parlor there nears a conclusion.

Paterson attended the event held last Friday in Saratoga Springs by Featherstonhaugh Wiley & Clyne. James Featherstonhaugh owns a stake in Saratoga Racing and Gaming, a partner in the Aqueduct Gaming bid led by Delaware North.

... Paterson attended the fundraiser although he is the author of legislation, lauded by good-government groups, that he hopes will reform the state’s campaign finance system.

“A number of the groups that were involved [in the bidding] have contributed to all of the conferences and the candidates,” the governor says. “In the type of campaign finance legislation I would like to pass, that wouldn’t be permissible anymore. But for now, the amount these groups are giving is minuscule.”

Paterson adds that if the right bidder is not selected, “the political damage of making that mistake would be far greater than any couple of dollars you’d get from a fundraiser.”

... an insider close to one of the Aqueduct bids says that holding such a fundraiser at a time when a decision is looming corrupts the process. “There’s an expectation that you get an edge when you do a fundraiser,” the insider remarks.

Java Gold@TFT

09-26-2009, 06:50 PM

Thanks, I knew I saw it and I was reminded when I saw that Delaware North was in the final 3. Of course this idiot we have would say that a little thing like this doesn't matter and funds raised were miniscule. He probably doesn't even remember how he got to be governor (hint: the last one was prosecuting prostitution rings while using them himself.)

Indulto

10-06-2009, 06:45 PM

http://www.saratogian.com/articles/2009/10/06/news/doc4acabfcd05438644567894.txt (http://www.saratogian.com/articles/2009/10/06/news/doc4acabfcd05438644567894.txt)
New York City OTB taking steps toward bankruptcy
By PAUL POST October 6, 2009… “Chapter 9 seems like a very real option,” New York City OTB Chairman Meyer “Sandy” Frucher said Monday. “There’s a high probability that we’re going to do it. First of all, it would give you time. Under Chapter 9 you don’t have to make various payments. You have an ability to eliminate debt, terminate leases and sever contracts.

… However, members of a state task force blasted NYC OTB officials for not participating in a series of hearings designed to consider ways to improve the OTB system. The Task Force on the Future of Off Track Betting held the latest of five meetings on Monday at Yonkers Raceway. The panel is slated to submit a preliminary report to state leaders within 30 to 45 days. One more final hearing is expected before a final report is prepared.

“It’s frustrating that they don’t see this process as part of the solution,” said John Crotty, a task force member.

The state created the task force, after taking over NYC OTB in June 2008, in order to hear from industry leaders what direction the business should take. Of the state’s six regional OTB corporations and nine racetrack operators, NYC OTB is the only entity that didn’t provide input, in person or written, to the task force.

“Somebody should have shown up,” task force Chairman John Van Lindt said. “That they didn’t comment speaks for itself.”

... But Frucher said NYC OTB has an immediate fiscal crisis to deal with and can’t get involved with such philosophical questions about OTB’s future. New York City handles nearly $1 billion in wagers annually, the same as the five other OTB corporations combined.

“Nobody can solve the broader issues unless we solve the immediate crisis here,” he said. “The goal is to come out of this in relatively short order with our debt essentially repaired, our future operations secured and the company reorganized so it can be a profitable company moving forward.”

However, Frucher declined comment about reorganization specifics such as possible layoffs and shop closings.

… “You have a lot of valid arguments that have to be taken into consideration before you come up with solutions,” Van Lindt said. “It’s a balancing act. It’s a serious one because you’ve got a lot of people’s livelihoods at stake.”

Indulto

10-15-2009, 08:01 AM

http://www.thoroughbredtimes.com/national-news/2009/October/14/NYRA-says-SL-Green-best-prepared-for-Aqueduct-racino.aspx (http://www.thoroughbredtimes.com/national-news/2009/October/14/NYRA-says-SL-Green-best-prepared-for-Aqueduct-racino.aspx)
NYRA says SL Green best prepared
for Aqueduct racino
by Paul Post October 14, 2009While stopping short of a formal endorsement, New York Racing Association says SL Green Realty is the best prepared to open Aqueduct’s racino of any of the firms bidding on the 30-year gaming contract.

“We know exactly what they want to do and we support their plan,” NYRA President Charles Hayward said Tuesday. “They’ve worked very closely with us, made numerous site visits with architects and engineers, and gone over their marketing plans. We know how they would use the building, how racing and gaming would be integrated. All that’s been discussed in high-level detail. We really haven’t had those discussions with anybody else.”

“We’re not endorsing anybody, but we feel a high level of comfort with them,” he said.

SL Green, New York City’s largest commercial property landlord, is partnered with Hard Rock Entertainment and high-profile New York developer Jeff Gural in seeking the Aqueduct contract. Gural owns Tioga and Vernon Downs, two upstate New York harness tracks with racinos.

… The New York Post reported Monday that Paterson might be favoring Aqueduct Entertainment Group. Other firms seeking the contract are Penn National Gaming and The Peebles Corp., partnered with MGM Mirage.

Java Gold@TFT

10-15-2009, 05:07 PM

Just saw a local news story on the next budget. Included is $200M from VLT's at Aqueduct. Guv, basic math 101 - you want $1M per day, it's late October, no chosen proprietor can get anyhting in place before June, the upfront is pro-rated and still yet, somehow you won't take your thumb out of your butt and decide which PAC will be the best use to your failed campaign to run for Guv next year.

Java Gold@TFT

11-04-2009, 06:29 AM

And the governor wonders why he has an approval rating of 20%

http://www.bloodhorse.com/horse-racing/articles/53249/aqueduct-bidders-asked-again-for-final-offers

No slots in sight, losing $1M in potential revenue a day and he wants "FINAL" bids that will show how the state can get $200M up front. I hope this moron runs again in 2010 so he can be humiliated.

Indulto

11-23-2009, 08:24 AM

http://www.timesunion.com/AspStories/story.asp?storyID=869282&category=ODATO&BCCode=&newsdate=11/22/2009
Bruno's tangled horse ties
By JAMES M. ODATO November 23, 2009… Facts emerging from Bruno's federal corruption trial revealed Bruno had a secretive co-ownership of thoroughbred horses with Jared Abbruzzese who was a founding investor of one of the bidding teams, Empire Racing, and Jerry Bilinski, who was a principal of a competing bidder, Excelsior Racing. Plus, Bruno had been paid $632,000 from 1993 to 2005 for introducing union business to the brokerage firm of Timothy McGinn, a trustee with the New York Racing Association, the third bidder in the competition.

Bruno did not disclose his horse partnership with Abbruzzese and Bilinski on his annual financial disclosure forms for 2005 and 2006, his former ethics counsel said, because they could be considered a "joint venture." The partnership was dissolved in 2006. Bruno's appointees on the bid selection panel, John Nigro, Jack Knowlton and Ed Swyer, were never told about Bruno's relationships, according to interviews.

Excelsior Racing was chosen by the panel to replace NYRA as the franchise holder when the association's contract expired in December 2007. However, Gov. Eliot Spitzer called for a rebid and NYRA ended up getting a new long-term contract.

While Swyer said the record speaks for itself, Nigro and Knowlton said Bruno and the Senate majority's office stayed out of the process. Asked if he knew Bruno's business dealings with bidding team members Knowlton said: "I guess he spread himself out. The good thing ... is there was never any effort once the appointments were made to feed us any information or ask us what we were thinking and why; no contact. It was as much on the up and up as anything could be."

… Abbruzzese was cut by Empire Racing before the winning bidder, Excelsior, was chosen. At the time, he was in the news the for being investigated by the state lobbying commission for allegedly giving Bruno rides on his airplane and being an unregistered lobbyist. …
http://www.nydailynews.com/opinions/2009/11/23/2009-11-23_wheres_joes_law.html (http://www.nydailynews.com/opinions/2009/11/23/2009-11-23_wheres_joes_law.html)
Where's Joe's Law?: Gross corruption shown at Bruno trial cries out for ethics reform
Editorial November 23rd 2009… Each day of testimony produces more evidence that the former Senate GOP leader - one of the most powerful men in state government - flagrantly and continuously abused his office.

Yet not one former colleague, Democrat or Republican, has stood up to express shock, disgust, revulsion, betrayal, remorse - or much of any reaction at all.

Nor have lawmakers rushed to stop future Brunos from fleecing taxpayers. They haven't even been motivated enough to unstall a better-than-nothing ethics proposal that would improve disclosure of lawmakers' outside income while boosting enforcement against violators.

The pols' silent acquiesence is yet another reason why New Yorkers must throw the bums out next fall.

… In fact, the trial has made clear that Bruno treated his government digs, and his aides, as appendages of private enterprises.

… What more evidence does anyone need that "Albany ethics" is a contradiction in terms?

Bruno didn't just skirt the laws barring profiteering from his public office and abuse of government resources. He apparently blew right through them. And the small army of enablers surrounding him knew exactly what was going on but held their tongues.

And now virtually every member of the Assembly and Senate have joined in the silence.

Where are the outraged press conferences to denounce gross abuses of the public trust?

Where is the rush of proposals to ban private business from government offices, to require full disclosure of legislators' outside incomes, to finally create a truly tough, truly independent ethics watchdog in Albany? …

PaceAdvantage

11-23-2009, 09:34 PM

The reason for the mass silence is probably because they're almost ALL guilty of something similar (although likely on a lesser scale). :lol:

Tom

11-23-2009, 10:07 PM

HAPPY THIRD ANNIVERSARY

+ 2 DAYS for this thread!!!!

Indulto

11-27-2009, 03:11 PM

http://www.thoroughbredtimes.com/national-news/2009/November/25/Bill-would-merge-New-York-City-area-OTBs.ASPX
Bill would merge New York City-area OTBs
by Paul Post November 25, 2009… “[More than] 2,000 people are employed through these two entities. It is estimated that 70% of that workforce will lose their jobs if the NYC OTB proceeds to bankruptcy,” said a memorandum, explaining the bill’s purpose.

… Senate Republicans who represent Nassau County, including Minority Leader Dean Skelos (R-Rockville Centre), are against the legislation.

“By introducing this misguided legislation, the New York City-dominated Senate Democrat conference is asking Nassau County taxpayers to again subsidize a New York City operation with their hard-earned tax dollars,” Skelos said. “We oppose any move that targets Nassau County OTB, the most profitable OTB in the state, and the taxpayers who live here.”

New York City OTB is $220-million in debt and owes the New York Racing Association more than $13-million. New York City OTB Chairman Sandy “Meyer” Frucher” declined to comment on the bill until he had time to review it.

“I’m not sure what the underlying thinking is,” he said.

… The timing of the bill surprised some because the Task Force on the Future of Off-Track Betting still plans to release its report early next year after conducting a series of five hearings this year. … http://www.newsday.com/long-island/nassau/senate-bill-would-merge-nassau-nyc-otbs-1.1620825 (http://www.newsday.com/long-island/nassau/senate-bill-would-merge-nassau-nyc-otbs-1.1620825)
Senate bill wouldmerge Nassau, NYC OTBs
By CELESTE HADRICK November 24, 2009A bill to merge Nassau's profitable off-track betting corporation with the city's failing counterpart - seen as a way to save Democratic patronage jobs in the county - was filed this week by the head of the State Senate Racing and Wagering Committee, prompting Republican outrage.

… Currently, the Nassau Legislature appoints the county OTB's governing board, which means the party that controls the Legislature controls OTB patronage jobs.

Soon after it became clear on election night that Democrats had lost control of the Legislature, effective Jan. 1, political insiders whispered that Jay Jacobs, Nassau and state Democratic chairman, would try to merge the city and county OTBs to save dozens of Democratic jobs.

For example, the county party's executive director, Mike Santeramo Jr., works at Nassau OTB with a $125,000 annual salary, as does former Glen Cove Mayor Mary Ann Holzkamp, who earns $98,811, and former Nassau Democratic Legis. Patrick Williams, convicted of mortgage fraud, who is paid $101,183. Santeramo is vice president of administration at the OTB, Holzkamp is treasurer and Williams is personnel administrator.

… A spokesman for [Eric] Adams did not return a call for comment on why the senator filed the bill. So far, no companion Assembly bill has been submitted. …

Indulto

12-03-2009, 07:06 PM

http://www.drf.com/news/article/109312.html (http://www.drf.com/news/article/109312.html)
New York City OTB to file bankruptcy
By Matt HegartyPosted 12/3/2009New York City Off-Track Betting Corporation will file for Chapter 9 bankruptcy protection on Thursday afternoon and seek to cut the amount of money it pays to the racing industry as part of its restructuring, officials of the state-owned company said on Thursday.

… The company estimates that it will have a $40 million deficit by the end of this year, Frucher said, and will run out of cash in March.

Frucher stressed that the company's day-to-day operations would not be affected during the restructuring, but he also acknowledged that OTB would seek wide job cuts among its 1,400 employees. In addition, the company is expected to shutter dozens of its OTB parlors in New York City's five boroughs, according to officials.http://cityroom.blogs.nytimes.com/2009/12/03/new-york-city-otb-to-declare-bankruptcy/ (http://cityroom.blogs.nytimes.com/2009/12/03/new-york-city-otb-to-declare-bankruptcy/)
OTB Enters Bankruptcy Protection
By A. G. SULZBERGERDecember 3, 2009There will be no come-from-behind sprint into solvency for the New York City Off-Track Betting Corporation, which announced on Thursday that it will go into bankruptcy protection.

… Leonard Allen, president of the DC 37 Local 2021, which represents most of the OTB employees in the city, said that he expected about half of the 1,050 workers to be laid off. “It seems that it was the only option,” he said. “They’re running out of money.”

In conjunction, OTB is pushing for the State Legislature to change a mandate that much of its revenue from approximately $1 billion in annual wagers be handed over to the racing industry, the city and the state before it can pay its own costs, Mr. Frucher said.

Such a move would be necessary for OTB to seek the $250 million in private financing it needs to avoid a taxpayer bailout, he said. If OTB were to shut down, about $600 million in future pension and benefit obligations would transfer to the city and state, Mr. Frucher said.http://www.thoroughbredtimes.com/national-news/2009/December/03/New-York-City-OTB-to-file-for-chapter-nine-bankruptcy-protection.aspx
New York City OTB to file for bankruptcy
by Jeff Lowe December 03, 2009… “We’re going to be asking for some paradigm changes in order to accomplish what we think is a reasonable reorganization,” Frucher said. “We want to pay all existing debts. These are obligations that people have expected to receive, and in a lot of cases, would cause irreparable damage if they weren’t paid. Currently we don’t have the cash to do it. We believe through the process we will.”

Frucher said New York City OTB’s handle is currently distributed with “no regard” to the company’s operating costs.

“It’s easy for people to say, ‘I can’t see how a booking operation can lose money,’” Frucher said. “The answer is, it doesn’t. The operating side is insolvent because the distributions that are made take out too much. … We have to rationalize some of this process, but we also have to be mindful of not taking the industry down.”

… Frucher said New York City OTB would not pay its November bills as the restructuring begins, with a plan to be submitted to the U.S. Bankruptcy Court for the Southern District of New York within 60 days. Day-to-day operations will continue, but the company will seek to reduce its work force of around 1,400 employees.

The New York Racing Association, operator of Aqueduct, Belmont Park, and Saratoga Race Course, said it expects to be one of New York City OTB’s largest creditors.

“[T]herefore it would not be prudent for NYRA to comment on the filing outside of the court proceedings,” NYRA said in a statement.

Indulto

12-07-2009, 01:33 AM

http://www.saratogian.com/articles/2009/12/06/opinion/doc4b1b1e8a1d7ae042960020.txt (http://www.saratogian.com/articles/2009/12/06/opinion/doc4b1b1e8a1d7ae042960020.txt)
Editorial: OTB system is fatally flawed
Published: Sunday, December 6, 2009… In August, the head of the Standardbred Owners Association of New York called OTBs parasites. That’s not nice, but it’s not inaccurate. OTB is the middleman, taking bets on racing and doling out percentages of the take to state and local government and horse breeders.

… The rules OTBs must follow for distributing their income don’t make it easy for them to stay afloat. The Legislature must look at the system and fix it. However, the goal shouldn’t be to keep OTBs afloat, but rather to look at the most efficient way to collect gambling revenue to be distributed to states and counties.

The New York Racing Association has volunteered to take on the duties of OTB. That consolidation makes sense on its face. But since NYRA is a private entity, the public interest could be better safeguarded by an entity whose books are open for public inspection.http://www.saratogian.com/articles/2009/12/04/news/doc4b187dd423f90365632071.txt (http://www.saratogian.com/articles/2009/12/04/news/doc4b187dd423f90365632071.txt)
Bankrupt NYC OTB says it will pay creditors, NYRA
By PAUL POST December 4, 2009… New York City Off Track Betting says it will pay creditors, including New York Racing Association, all the money they’re owed under a Chapter 9 bankruptcy plan.

… While in bankruptcy, the firm won’t have to make statutory payments, giving it money to keep operating until a new business model, requiring approval by the state Legislature, is worked out. Frucher said OTB is not seeking any money from the state in the form of a subsidy or bailout.

"But moving forward, we’re changing the game because if we don’t, there won’t be any game," he said.

… In the future, the firm wants distributions to be made on its net income.

... Of the money NYRA gets from OTB, about 60 percent goes to purses and 40 percent to NYRA racing operations. To date and even with the Chapter 9 filing, NYRA has not reduced any payments to purses. However, OTB’s failure to make payments puts a financial strain on NYRA.

... New York City OTB also owes considerable money to the New York Breeding and Development Fund, which distributes breeders’ awards.

… Frucher said the unions have agreed in principle to a 50 percent reduction in OTB’s workforce of 1,400 people. However, he declined to say exactly how many jobs and OTB branches will be closed.

"We’re going to cut expenses by 50 percent," Frucher said.

… All branches are still operating and accepting wagers. The accounts of individual bettors are protected."

bigmack

12-07-2009, 01:59 AM

Frucher said the unions have agreed in principle to a 50 percent reduction in OTB’s workforce of 1,400 people.

Dynamite.

Gather employees, line 'em up & have 'em count off. Fire anyone who had an even or odd number based on a coin toss of heads/even, tails/odd.

Release a statement to allay the fears of 'individual bettors' & contact Induto to further this telethon of a thread.

All seems intact.

Indulto

12-07-2009, 03:07 AM

Dynamite.

Gather employees, line 'em up & have 'em count off. Fire anyone who had an even or odd number based on a coin toss of heads/even, tails/odd.

Release a statement to allay the fears of 'individual bettors' & contact Induto to further this telethon of a thread.

All seems intact.BgM,
Perhaps the unions agreed because they expect better treatment by the State's OTB task force under Chairman John Van Lindt.

Do you object to the thread's extension? Some posts in this thread have attracted over 300 views because the thread title has gained recognition over time. I assume that level of interest is to PA's advantage.

bigmack

12-07-2009, 03:22 AM

Do you object to the thread's extension? Some posts in this thread have attracted over 300 views because the thread title has gained recognition over time. I assume that level of interest is to PA's advantage.
Far be it from me to question the coda of one the most undying threads of all time. I was amused to dial into the date of its dawn...Nov 21 '06. :eek:

The dusk is nowhere in sight.

I chuckle at the longevity of bosh.

Indulto

12-07-2009, 07:00 AM

Far be it from me to question the coda of one the most undying threads of all time. I was amused to dial into the date of its dawn...Nov 21 '06. :eek:

The dusk is nowhere in sight.

I chuckle at the longevity of bosh.This thread is about tracking New York State government's unjustifiably negative impact on thoroughbred racing. It's continuing failure to resolve the OTB and VLT issues (which adversely affects the racing franchise holder) in any more timely or satisfactorily a fashion than it did the racing franchise renewal, suggests more than incompetence has been at work. Under scrutiny, the roles of the politicians most involved have often suggested, and sometimes demonstrated, corruption and law-breaking.

Sadly, this situation is not confined to New York, but the media there shines a brighter light on its politicians which makes continuing this exercise possible. It's not difficult to imagine that the prospect of slots at California tracks would generate similar shenanigans in that state and render the synthetic surface issues there tame in comparison.

twindouble

12-07-2009, 03:39 PM

Far be it from me to question the coda of one the most undying threads of all time. I was amused to dial into the date of its dawn...Nov 21 '06. :eek:

The dusk is nowhere in sight.

I chuckle at the longevity of bosh.

If the criteria for threads here was not to be "bosh", PA would have to delete many of them. At least this thread has substance that includes supportive documentation that brings to the surface a respectable level of truth. Players have a better understanding of how difficult it is to "change" racing because of the blatant elitist special interests and political corruption that exists through out the industry. Not only that, if PA thought this thread was worthless he would have closed it a long time ago. He's very good at that.

T.D.

Indulto

12-07-2009, 07:20 PM

http://www.horseraceinsider.com/blog.php/Zasts-TrackWords/2009-12-06full-moon/
Full Moon
By Vic Zast December 07, 2009… whenever there’s something to make fun at, it is caused by a disbelief that someone continues to act in character, not that they’ve behaved oddly. In at least two of the week’s news items, this indeed is what happened.

In the first instance, John J. Brunetti, Jr. wrote letters to Calder and Gulfstream asking them for permission to compete.

… Concurrent thoroughbred meets at Florida racecourses that are 15 miles apart didn’t work in the past and won’t work in the future. In which months does Hialeah plan to race thoroughbreds exclusively once Brunetti gets a license? To my knowledge, it hasn’t been stated. Horse racing’s a means to an end for Brunetti and that end’s a casino. It was only a year ago that the end was a shopping mall, remember?

Gaming horse racing to achieve a goal isn’t new, by any means. The sport's been a source for countless opportunists to profit. But Brunetti’s crass actions seem exceptionally brutal because they create false hope in fans who remember a time when the track was a palace and wish it would become that again. When you want something bad enough, creating a charade seems a tiny transgression. Yet, in truth, only the dastardly doings of elected officials in New York State supersede Hialeah's effrontery. If Brunetti's a fraud, what's to be made of our lawmakers?

In the most recent act of an ongoing circus, New York City OTB filed for Chapter Nine bankruptcy protection. Officials have 60 days to provide a re-organization plan.

… With 90 percent of gambling revenues generated off-track, the racetracks should operate the off-track facilities that generate them. But there’s been little apparent change in how NYRA has fared economically since it came out of its own bankruptcy two years ago. Granting a chronically irresponsible business with more business would be the same as asking a man with heart disease to eat bacon. Consequently, I’m afraid that the State will vest the OTB franchise with a re-organization that entails much the same operators and all the same problems.

By the way, at its current rate of losses, NYRA will run out of operating funds by the time Saratoga opens. Its 2010 budget depends on revenues from an Aqueduct racino. But, the appointment of an operator is still hung up in politics. One could easily surmise that New York State, which is running a $9 billion deficit, would cooperate. But it hasn’t. …

Indulto

12-09-2009, 05:58 AM

http://blog.timesunion.com/bruno/bruno-guilty/2177/ (http://blog.timesunion.com/bruno/bruno-guilty/2177/)
Bruno guilty: Jury finds former Senate leader exploited his office; Bruno says he’s ‘disappointed’
by Brendan J. Lyons December 8, 2009... The conviction of Bruno follows an aggressive FBI investigation that dogged the rags-to-riches political figure in his final years at the helm of the state Senate he controlled from 1995 until his abrupt resignation last year.

The trial was a tedious examination of the oft-shadowy state Legislature, which has exempted itself from the state’s Freedom of Information Law and set its own rules allowing the public only limited or no access to its ethics opinions and financial disclosure forms.

… Still, the panel concluded Bruno did not nothing in return for $200,000 Abbruzzese paid him through his companies, Communication Techology Advisors and Capital & Technology Advisers. The money was being paid to Bruno as he authorized a $250,000 state grant to a technology firm bankrolled by Abbruzzese.

The payments also came before Abbruzzese’s business partner, Wayne Barr, was appointed by Bruno to the New York Racing Association board of trustees. Abbruzzese, who at that time was seeking control of the franchise that runs New York’s top three horse racing tracks, had turned down Bruno’s offer to fill the seat.

The second conviction stemmed from Bruno’s dealings in an undisclosed horse-breeding partnership with Abbruzzese and Jerry Bilinski, a Columbia County veterinarian. Abbruzzese conceded on the witness stand that he had agreed to pay Bruno $80,000 for a horse the government characterized as “virtually worthless.”

The payment, Abbruzzese said, was intended as his “global solution” to the fact a telecommunications company once controlled by Abbruzzese, TerreStar Networks, had terminated a $20,000-a-month consulting contract with Bruno after executives questioned what he was doing to earn the money. The early termination cost Bruno $80,000. Abbruzzese admitted he bought the overpriced horse to make up the difference, and at a time when he was seeking the state’s NYRA franchise.

The horse was later given away for free to a child in Florida.It looks as if the jury took exception to his horseplay with people pursuing the racing franchise.

http://www.bloodhorse.com/horse-racing/articles/54320/former-ny-senate-leader-guilty-of-2-counts?source=rss (http://www.bloodhorse.com/horse-racing/articles/54320/former-ny-senate-leader-guilty-of-2-counts?source=rss)
Former NY Senate Leader Guilty of 2 Counts
By The Associated Press
December 7, 2009A jury convicted former New York Senate leader Joseph Bruno of two corruption counts Monday, determining that he illegally traded on his position as one of the state’s most powerful politicians to enrich his personal fortune.

… Bruno was a state senator from Rensselaer County for 32 years, the last 13 as leader of the Senate’s Republican majority, until retiring in 2008. As majority leader, he was one of Albany’s oft-criticized "three men in a room," a potent trio that includes the governor and Assembly speaker. The three control patronage hiring, the allocation of hundreds of millions of dollars and all legislation.

… Many of New York’s 212 lawmakers, who make at least $79,500 in their part-time jobs, have outside employment. Bruno and his attorneys argued that the federal court was the wrong place to put on trial that entire system, where conflicts of interest are inevitable. They said Bruno did not put his own interests before the public’s and that any conflicts or perceived conflicts were insignificant.

… Prosecutors have said they want restitution but haven’t yet calculated the precise amount, or the potential prison term. Authorities initially said he could face up to 20 years in prison and a $250,000 fine on each count. …http://www.nytimes.com/aponline/2009/12/07/us/AP-US-Political-Corruption-Trial.html (http://www.nytimes.com/aponline/2009/12/07/us/AP-US-Political-Corruption-Trial.html)
NY Jury Convicts ex-Senate Leader on 2 Charges
By THE ASSOCIATED PRESS December 7, 2009 … Bruno, once one of the state's most powerful politicians, was accused of denying New Yorkers his honest services while enriching himself in the amount of $3.2 million by using his state influence.

The trial exposed Albany's practice of influence-peddling by lawmakers. Bruno consulted for three businessmen and solicited union pension investments from labor unions on behalf of two companies.

Prosecutors argued that Bruno was required to publicly disclose his business interests and associates. http://www.nytimes.com/2009/12/08/nyregion/08bruno.html (http://www.nytimes.com/2009/12/08/nyregion/08bruno.html)
Bruno, Former Albany Leader, Convicted of Corruption
By NICHOLAS CONFESSORE and DANNY HAKIM December 7, 2009… Joseph L. Bruno, the former Senate majority leader and a towering figure in state politics, was found guilty on Monday afternoon of failing to disclose hundreds of thousands of dollars worth of gifts disguised as consulting fees from a businessman who sought grants and other help from the Legislature.

After seven days of deliberating, the jury in Mr. Bruno’s federal corruption trial handed down a guilty verdict on two felony counts. They found Mr. Bruno not guilty on five counts and could not reach a verdict on another count.

Mr. Bruno, 80, who was once the top Republican in New York and one of the state’s most powerful politicians, faces up to 20 years and a $250,000 fine on each felony count. He is sure to appeal, and the Supreme Court is preparing to review the controversial “theft of honest services” statute underlying his case.

… The verdict capped a month-long trial that captivated the state political establishment and laid bare the unseemly side of New York’s Legislature, where most lawmakers hold down second jobs in the private sector but are required to disclose very little about what they are paid to do.

Prosecutors contended that Mr. Bruno had failed to disclose conflicts between his private business dealings and his official business as Senate majority leader, the powerful post that he held for almost 14 years before retiring in 2008 amid a federal investigation. They also say he used a sham consulting business as a way to conceal the true nature of his business interests.

Prosecutors brought forward more than 70 witnesses and a trove of over 200 e-mail messages as well as handwritten notes, calendar entries and memoranda, many culled from the historically secretive State Senate, which Republicans controlled under Mr. Bruno but lost control of last fall.

… Prosecutors also contended that Mr. Bruno used his Senate power to benefit an array of other businesses, including an Albany-area technology company that paid him hundreds of thousands of dollars in fees and a contracting company owned by an old friend, who employed him as a management consultant.

… The official benefits Mr. Bruno delivered for those who did business with his clients, Mr. Bruno’s lawyers argued, was indistinguishable from the legislative action and earmarks he sought for all his constituents, driven by a sincere desire to create jobs and help working people.

Indulto

12-11-2009, 07:57 AM

http://www.zwire.com/site/news.cfm?newsid=20394751&BRD=2731&PAG=461&dept_id=574905&rfi=6 (http://www.zwire.com/site/news.cfm?newsid=20394751&BRD=2731&PAG=461&dept_id=574905&rfi=6)
Paterson speaks at St. Albans town hall
by AnnMarie Costella, Chronicle Reporter 12/10/2009… Attendees were also curious to know when Paterson would chose a developer for the proposed racino at Aqueduct race track. The decision must be made by the governor along with Senate Conference Leader John Sampson and Assembly Speaker Sheldon Silver.

“I am willing to take what ever choice that the other two can arrive at because we need the money and we need to start generating work and opportunity right here in southeast Queens,” he said. …http://www.thoroughbredtimes.com/national-news/2009/December/10/NY-state-senator-criticizes-governor-over-Aqueduct-racino.aspx
N.Y. state senator criticizes governor over racino
by Paul Post December 10, 2009New York state Senator Joseph P. Addabbo Jr. (D-Queens), whose district includes Aqueduct, blasted Gov. David Paterson and other state leaders for failing to name a gaming operator for the Jamaica New York track.

… “I’ve already met with each of the bidders two times,” Addabbo said. “We know all the information we’re going to know. A decision should have been made. There’s just no reason for the delay.”

Last week the legislature approved a $3.2-billion Deficit Reduction Plan that contemplates a $200-million upfront payment from whichever organization gets the 30-year gaming contract. A decision has yet to be been made.

Once an operator is selected, it will take 60 days to work out a memorandum of understanding and another 30 days to transfer cash to the state, Addabbo said. “We risk not realizing the $200 million this fiscal year if a decision isn’t made soon,” he said.

… “We can’t realize these benefits if a decision isn’t made,” Addabbo said. “We’re all questioning why one hasn’t been made. There is no reason. That’s the most frustrating part. I’m comfortable working with anyone that’s chosen.”

Addabbo said he plans to contact Paterson’s office again this week.

“Aqueduct is an icon,” he said. “We’d like to keep it a racetrack. How do you keep it a racetrack? VLTs. Let’s just make a decision.”

OTM Al

12-11-2009, 01:25 PM

Well, the problem is obvious to me now. The track in Jamaica ran its last race in 1955. Aqueduct is in Ozone Park. No wonder they can't figure out how to get slots in Jamaica since it doesn't exist anymore......

Sorry, my sarcasm is at an all time high level today.

Indulto

12-16-2009, 11:55 PM

http://www.nytimes.com/2009/12/16/nyregion/16tribe.html?_r=2&ref=nyregion
U.S. Eases Way to Recognition for Shinnecock
By DANNY HAKIM December 15, 2009The Obama administration said Tuesday that the Shinnecock Indians on Long Island meet the criteria for federal recognition, signaling the end of a 30-year court battle and clearing a path for the tribe to pursue its plans for a casino in New York City or its suburbs.

The announcement all but assures that the 1,066-member Shinnecock Indian Nation will receive formal federal recognition, though a public-comment period of up to six months must be held before the final order is issued.

… Once it is federally recognized, the tribe would be entitled to build a “Class II” casino on its land that could have thousands of video slot machines but no table games. That has worried some local officials because of the implications that such a casino would have for traffic and tourism in the wealthy resort areas.

Tribal leaders have said they would prefer to negotiate with the state and federal government to build a or Class III casino on land elsewhere that would have table games and could be more lucrative both for the state and the tribe.

Tribal officials have expressed interest in a variety of sites for a casino, including other locations on Long Island or at Aqueduct racetrack in Queens or Belmont, in Nassau.

The state would get none of the proceeds from a Class II casino built on the tribe’s reservation, but would almost certainly insist on a percentage of any proceeds if it permitted construction elsewhere of a bigger casino — which could generate billions of dollars in revenue.

Gov. David A. Paterson had supported the tribe’s bid and urged the Obama administration to recognize it.

“As Governor Paterson has said, federal acknowledgment of the Shinnecock Indian Nation was long overdue,” said Morgan Hook, a spokesman for the governor. “This is a proud day for the Shinnecock. Governor Paterson looks forward to continued government-to-government relations with the Nation, and will continue to support their efforts to achieve full federal recognition.” …

tzipi

12-17-2009, 12:13 AM

Seriously WHO CARES! Gee,another indian casino...WOW! Ok even if Aqueduct gets a casino,it will not save horse racing or help out racing in NY. Racinos took over because they know most tracks are a losing buisness and it opens up the door for their casino and down the line the land that the track is on. YEAH,racinos are boosting attendance and handle everywhere! In fact all races in 2010 will be on national television because they've made it so popular now! :rolleyes: Racinos will be what killed racing in a lot of states.

PaceAdvantage

12-17-2009, 06:49 AM

Seriously WHO CARES! Gee,another indian casino...WOW! Ok even if Aqueduct gets a casino,it will not save horse racing or help out racing in NY. Your new name is Mr. Optimistic

tzipi

12-17-2009, 11:54 AM

Your new name is Mr. Optimistic

Hey I love racing and have said on here that I would love for it to get better but seriosuly,racinos are bad for racing and they are not there to help the sport. I am very optimistic in life,just not on a sport who has already thrown in the towel and thrown up their sport to casinos who want nothing to do with racing and their dwindling numbers. The casinos make the money. The racing part is just on large valuable land and they knew that and wanted that from the beginning.
"Optimistic"? Didn't they promised slots like a decade ago like other tracks and say now,"hey we are getting it done!" Yeah they are on top of things :D

Indulto

12-25-2009, 05:58 AM

http://www.saratogian.com/articles/2009/12/24/sports/doc4b3199ff3abe9884571873.txt (http://www.saratogian.com/articles/2009/12/24/sports/doc4b3199ff3abe9884571873.txt)
Where do we go from here?
By MICHAEL VEITCH December 23, 2009… It is sad to think the organization that once stood atop North American racing is now on the verge of coming to a halt because it does not have a VLT operation.

The years of political mishandling of the issue bring no comfort by way of explanation.

But we have now arrived at that place.

State leaders will either get this thing going — and soon — or “America’s Summer Place” could be in for a rough time.

… Saratoga has not escaped the downward trends.

… Last year’s total attendance of 854,400 was the lowest since 826,994 in 1997, and represents a drop of 18 percent since the 1,040,668 attendees in 2004.

The oldest track in the United States is way overdue for an infusion of capital improvements, all tied to revenue from VLT’s.

… And how ironic it is that in the worst case scenario, NYRA might not be able to conduct the only profitable meeting on its schedule. …http://www.timesunion.com/AspStories/story.asp?storyID=880820&category=REGION (http://www.timesunion.com/AspStories/story.asp?storyID=880820&category=REGION)
NYRA chief: VLT delay imperils Spa
Hayward says failure to make Aqueduct deal could mean no spring or summer racing
By JAMES M. ODATO December 22, 2009 … The president of the New York Racing Association says the state's failure to make a deal on casino-like gambling at the state's winter horse track at Aqueduct in Queens could imperil the spring meet at Belmont, and even the highly profitable summer meet at Saratoga.

NYRA President Charles Hayward said Monday he told his staff and board that the private, nonprofit association may run out of cash before spring and can't guarantee a Belmont meet, which is supposed to start in April.

He said a decision to cancel the Belmont or Saratoga meets depends on whether the Paterson administration selects a bidder in the competition to build a giant racino at Aqueduct. That decision, he said, needs to be made in January to give the state time to negotiate a final contract that would include revenue for NYRA.

… The problem, he said, is that the association just can't wait much longer. Horse owners planning to race in the Belmont meet must plan soon to ship for April, Hayward said.

He said NYRA should have cash through June 1. "If we can make it to Saratoga -- obviously Saratoga is very cash-flow positive, which will take us to the fall," Hayward said. "There's a long time between now and June, but our cash flow problems ... are real."

A spokesman for Gov. David Paterson said that negotiations on a winning bidder for Aqueduct's VLT palace are ongoing, but added that NYRA has yet to provide the state with its 2010 budget. "This is a critical decision for the state and requires careful consideration," said Morgan Hook. "We will ... work closely with NYRA to navigate any potential fiscal difficulties." …http://www.bloodhorse.com/horse-racing/articles/54504/nyra-to-hold-belmont-but-money-will-run-out?source=rss (http://www.bloodhorse.com/horse-racing/articles/54504/nyra-to-hold-belmont-but-money-will-run-out?source=rss)
NYRA to Hold Belmont, But Money Will Run Out
By Tom Precious December 21, 2009… Charles Hayward, NYRA’s president, would like it to be known that the racing entity risks running out of money by next June — and that the Belmont Stakes is set for June 5.

“There’s not a threat there," Hayward said Dec. 21. Still, if his ratcheting up of talk about NYRA having to shut down forces state leaders to end the stalemate over a VLT operator at Aqueduct, Hayward is not objecting.

“Sometimes you need to be a little more direct to help people understand what the circumstances are," Hayward said in an interview.

… Hayward said NYRA planned on ending the year with $15 million on hand, but — with NYCOTB holding back $4 million in payments — will finish out 2009 with about $11 million. But that black ink will turn red by next June at the latest, Hayward estimated — all of which would have been avoided had the state selected a VLT operator.

“It’s not our fault there’s no VLT operator," Hayward said.

The NYRA boss chose not to blame any current state leaders, but said much blame can be pointed to former Gov. George Pataki. Hayward said the Pataki administration’s dislike for NYRA scuttled a deal NYRA had with MGM Mirage that would have, in the end, brought far more money to NYRA and the state than any deal the state might end up with from the current bids on the table.

Hayward said the “day has passed" when NYRA would jump back in and ask the state to let NYRA handle the VLT process. “It seems to me that the political leaders understand that this has to get done," Hayward said.

… Hayward said NYRA has no favorite among the bidders. “We have some significant reservation about Aqueduct Entertainment Group, but we won’t comment further on that," Hayward said of the entity whose major partners include Navegante Group of Las Vegas.

How serious is NYRA about no Belmont Stakes next year? Hayward said there have been no contingency plans to deal with possibly canceling the race. Asked if any ideas have been floated to hold the event at another location if it had to be scuttled, Hayward said: “I don’t think we’d undertake that. I don’t know how we’d do that to be honest. …

aaron

12-25-2009, 08:55 AM

When you have "The Blind Leading The Blind",this is to be expected.
After all is said and done,how many years old is this thread ?

Indulto

12-28-2009, 05:34 PM

http://www.nydailynews.com/ny_local/2009/12/28/2009-12-28_nyra_says_neigh_to_audit_controller_vows_to_rid e_herd_on_agency_and_subpoena_boo.html
New York Racing Association will receive subpoena to turn over books to auditors in Belmont crisis
by Barbara Ross December 28th 2009… State Controller Thomas DiNapoli plans to hand out subpoenas Monday to force the New York Racing Association to turn over its books, sources say.

… Last week, NYRA boss Charles Hayward said the agency was running out of cash and may be forced to cancel the storied Belmont Stakes set for June 5.

DiNapoli is skeptical and wants to know what happened to the millions of taxpayer dollars the financially ailing group got while waiting to open video lottery terminals at Aqueduct.

… NYRA gave the state ownership of $1 billion worth of land under the tracks, and agreed to stricter oversight, including controller audits.

… The state's highest court decided to classify charter schools as exempt from audits because they are not political subdivisions of the state. NYRA insists that as a private nonprofit group, it, too, is exempt.

… For years, state controllers have charged that NYRA has shortchanged New York on franchise fees based on its profits by improperly using federal tax rules to reduce its "profit" on paper.

Two years ago, DiNapoli said NYRA had used this maneuver to dodge $54 million in franchise fees between 2000 and 2005. In some of those years, NYRA paid the state nothing.

NYRA hoped to balance its budget next year from revenue from video lottery machines. The governor and legislative leaders have been unable to agree on one of the five companies that have bid to run the racino.http://www.bloodhorse.com/horse-racing/articles/54567/ny-official-issues-subpoena-for-nyra-records (http://www.bloodhorse.com/horse-racing/articles/54567/ny-official-issues-subpoena-for-nyra-records)
NY Official Issues Subpoena for NYRA Records
By Tom Precious December 28, 2009… "Less than six months ago, NYRA said it was financially stable,’’ the Democratic comptroller said in a written statement Dec. 28. "Now, NYRA says without VLT money it may not be able to stay in operation until the Belmont Stakes. In the meantime, it’s been trying to hide its books from my auditors.’’

… DiNapoli said the 2008 law that gave NYRA a new 25-year exclusive franchise to operate Aqueduct, Belmont and Saratoga racetracks also included provisions to permit its operations to be examined by state auditors. DiNapoli said he wants to get a look at what has happened to the millions of dollars the state has provided NYRA in previous bailouts, while also looking at NYRA’s claims about other entities owing it money.

… "NYRA operates for the benefit of New York. Taxpayers have a right to know what’s going on, and we’re going to audit NYRA and find out,’’ DiNapoli said.

In a statement later in the day, NYRA said it is willing to go to court to keep the comptroller from looking at its books. NYRA said that at the time of its 2008 franchise extension, it made it clear to the Legislature that the renewal law "prohibits'' the state comptroller from auditing the not-for-profit association. It cited a court ruling by the Court of Appeals, the state's highest court, as ammunition.

"The law is clear. If NYRA and the comptroller cannot agree amicably on the clear meaning of the Court of Appeals decision, we should agree to immediately seek a declaratory judgment from the judiciary to quickly resolve this matter,'' the NYRA statement said.

NYRA also bristled at suggestions that the state bailed out its finances. It said money it obtained from Albany in 2008 was in return for NYRA giving up its land claims to the three tracks -- real estate, it said, that is worth more than $1 billion.

"NYRA operates without a single penny of taxpayer subsidy,'' the statement said. It also said the state has failed to live up to an agreement to get the Aqueduct casino up and running by last April -- which would have supplied a steady stream of funds to NYRA in the form of VLT revenue sharing proceeds.

… NYRA added that it is already one of the most "pervasively'' regulated private companies in New York, with its operations under the eye of agencies from the state racing board to the attorney general. And NYRA said it already cooperates on oversight matters with government agencies "that have actual legal authority to regulate and audit its operations.'' It added that the state already appoints 11 of NYRA's 25 board members, and that a state entity has budget oversight authority over NYRA.

"Any suggestion that the taxpayers are placed at risk by the constitutional prohibition on comptroller's audits of NYRA is misleading,'' NYRA said.

tzipi

12-28-2009, 09:19 PM

If it was in the writing that NYRA had to show its books,then just open them. Why is NYRA hiding books,when they are just asking what happened to the millions they got??

PaceAdvantage

12-29-2009, 01:48 AM

If it was in the writing that NYRA had to show its books,then just open them. Why is NYRA hiding books,when they are just asking what happened to the millions they got??You heard them, didn't you?

It said money it obtained from Albany in 2008 was in return for NYRA giving up its land claims to the three tracks -- real estate, it said, that is worth more than $1 billion.

Note to self: this ought to bring slewis out of hiding...:lol:

tzipi

12-29-2009, 01:51 AM

You heard them, didn't you?

What's your point there Pace?? I heard them?

tzipi

12-29-2009, 02:38 AM

I wish I heard their answers to alot of things over the years Pace :)

PaceAdvantage

12-29-2009, 03:01 AM

What's your point there Pace?? I heard them?My point was the NYRA already addressed why they don't feel the need to share their books with the state:

It said money it obtained from Albany in 2008 was in return for NYRA giving up its land claims to the three tracks -- real estate, it said, that is worth more than $1 billion.Not saying NYRA is right or wrong, just pointing out why they think the way they do.

You asked:

Why is NYRA hiding books,when they are just asking what happened to the millions they got??Well, you heard them...there is your answer...NYRA doesn't feel they "got" millions...they feel they "traded" their land rights for the money...sort of even steven...thus they feel they aren't beholden to the state and won't simply roll over when asked.

Note to self: If this doesn't bring slewis out of the shadows, nothing will...

tzipi

12-29-2009, 07:16 AM

My point was the NYRA already addressed why they don't feel the need to share their books with the state:

Not saying NYRA is right or wrong, just pointing out why they think the way they do.

You asked:

Well, you heard them...there is your answer...NYRA doesn't feel they "got" millions...they feel they "traded" their land rights for the money...sort of even steven...thus they feel they aren't beholden to the state and won't simply roll over when asked.

Note to self: If this doesn't bring slewis out of the shadows, nothing will...

Ok,I understand but I just feel like if there's no problem and they see no problem where the moneys from or where money went,etc,then just open the books for them? Why piss eachother off now? I could be totally wrong though Pace.
Ok,well onto todays cards. It's good Aqueduct isn't running today. 40+ MPH winds out there. I almost blew over getting the form :D

Indulto

12-29-2009, 11:13 PM

http://www.paulickreport.com/blog/nyras-financial-records-subpoenaed-by-ny-comptroller/ (http://www.paulickreport.com/blog/nyras-financial-records-subpoenaed-by-ny-comptroller/)
Responses to “NYRA’S FINANCIAL RECORDS SUBPOENAED BY NY COMPTROLLER”
Steve Zorn Says:
December 28th, 2009 at 7:25 pmThe arrogance of NYRA’s leadership and trustees is astonishing, ...

... If you take the King’s (or the state’s) shilling (or $200 million), then you’re obliged to serve the King. NYRA has never cooperated in making its books available to anyone, including the NY Thoroughbred Horsemen’s Association. Today’s claim that they don’t have to open the books to the state is of a piece with that general “my way or the highway” attitude.

And before we start blaming the money shortage on purses, which have already been reduced for the forthcoming 2010 Aqueduct meet, it might be worth casting an eye on how much NYRA spends on administration. Perhaps that was part of what Comptroller DiNapoli had in mind.http://businessofracing.blogspot.com/2009/12/there-they-go-again-nyra-takes-on-ny.html (http://businessofracing.blogspot.com/2009/12/there-they-go-again-nyra-takes-on-ny.html)
Monday, December 28, 2009
There They Go Again - NYRA Takes on NY State
Posted by Steve Zorn 8:25 PM… As NYRA points out in its press release, hurried onto its website late this afternoon, the Comptroller's apparent surprise that NYRA is now running out of money is a little disingenuous. The original bankruptcy rescue plan anticipated that slot machines -- approved by the NY Legislature back sometime in the Jurassic (well, actually, it was 2001) -- would be up and running at Aqueduct by April of 2009. …

… NYRA CEO Charlie Hayward may well be correct when he says that NYRA will run out of money sometime this Spring; the Belmont spring meet always loses money, because of the expensive stakes schedule that makes the meet such an artistic success. Over the years, NYRA's big money-making meets have been Saratoga and, somewhat surprisingly, the Aqueduct winter meet, the latter probably because purses are low, and the meet has an excellent off-track following, at OTBs and across the country at other tracks and ADWs. …

… But if that's so, then why can't Charlie Hayward and Steve Duncker (NYRA Chairman), just open up the books to the state comptroller and show the reality? The state has been a very good friend to NYRA, and it seems, to say the least, a bit ungrateful not to cooperate with a perfectly reasonable request to take a look at the books and see what happened to the state's money since NYRA emerged from bankruptcy.

… First, the land. In the bankruptcy proceedings, NYRA always claimed that it owned the land. The state, through its lawyers, originally took the position that, thanks to prior bailouts, NYRA was already, in effect, a state agency, so that the land already belonged to the state. That issue was never decided by any court. In the end, NYRA agreed to turn over the real estate deeds to the state, and the state agreed to pump lots of money into NYRA. That's all. How each side characterized the transaction doesn't mean that's the legal reality of it. At best, NYRA's claim here is unproven.

Next, what about the claim that NYRA is already regulated enough? The simple answer is, so what? In its press release, NYRA notes that it's subject to oversight and regulation by the NY State Department of Taxation and Finance, by the State Racing and Wagering Board, and by a mostly comatose organization called the State Franchise Oversight Board. …

… Presumably NYRA does have financial records, and presumably they show that it's been conducting its business in a reasonable fashion. If not, then the $125,000 a month that NYRA has reportedly been paying its "integrity monitors." the law firm of Getnick and Getnick, would represent a colossal waste of money. Saying no to the Comptroller just makes you look guilty; if NYRA has nothing to hide, why not just open the books?

Third, NYRA relies on a recent decision by the NY Court of Appeals, the state's highest court, that said the Comptroller did not have the authority to audit the operations of not-for-profit charter schools, even though those schools were receiving public money. That may well be correct, as a matter of law. As a matter of politics, it's among the stupidest positions NYRA has ever taken, perhaps rivaled only by the decision in the 1970s not to operate off-track betting. …

… Cooperating with the Comptroller will, if I'm right about NYRA's finances, show conclusively that NYRA does need more money -- a situation attributable entirely to the state's own delay in getting the slot machines started. I can't imagine why NYRA would not want to do that. Unless, of course, there's something to hide. …

… Charlie and Steve: you guys have got to stop listening to the lawyers. Just do the right thing.http://leftatthegate.blogspot.com/2009/12/nyra-vs-comptroller.html (http://leftatthegate.blogspot.com/2009/12/nyra-vs-comptroller.html)
Monday, December 28, 2009
NYRA Vs. The Comptroller
Posted by alan at 9:31 PM… Regardless of what NYRA may or may not have said, you and I know of course that the state has been well aware that NYRA's solvency was on a timeline, and that it would not be financially stable until slots were up and running. Why else would the state have promised to provide funding to NYRA for its operational needs if a casino at Aqueduct was not up and running by the end March 2009. [DRF] In March, following the collapse of the Delaware North deal, Hayward said that NYRA would be fine though the third quarter of 2010. The latest warning comes a little earlier than that, but so has business continued to lag, not to mention the $14 million owed to it by NYCOTB.

To me, this reeks of an effort by the state to take the focus off of its pathetically shameful failure to name an operator at the Big A. And while Steve Zorn thinks that NYRA is mistaken to take on DiNapoli in his fine analysis of the situation, I don't blame the association for telling the Comptrller to take a hike. DiNapoli, remember, is just a politician who was strongarmed into the position over far more qualified candidates by an Assembly flexing its muscle against a crassly domineering new governor. And when a politician starts spewing recycled meaningless crap like "It's the same old NYRA in new sheep's clothing," then he or she is probably up to something. Financial records can be subject to misinterpretation by politicians who know nothing about the industry or how it operates, especially one with an agenda, which certainly seems to be the case here.http://www.nypost.com/p/news/local/pol_to_nyra_cut_manure_0fQ9fVdhyXyLoI25FEab2H (http://www.nypost.com/p/news/local/pol_to_nyra_cut_manure_0fQ9fVdhyXyLoI25FEab2H)
Pol to NYRA: Cut 'manure'
By BRENDAN SCOTT
December 29, 2009… The head of the Assembly's gaming committee dismissed as "horse manure" yesterday the New York Racing Association's claims of poverty and called on the group to immediately open its books.

Racing and Wagering Chairman J. Gary Pretlow (D-Westchester) said he believed NYRA President Charlie Hayward was bluffing when he said a cash crisis would force the group to cancel the Belmont Stakes.

"I think that's just BS," Pretlow said. "That's just talk. That's horse manure. They would do anything humanly possible to save the Belmont Stakes."

Pretlow said Hayward was likely trying to force a resolution on Aqueduct with his threat to cancel the track's biggest race of the year.

"I know what he's trying to do is get somebody off of the ball to make a decision to get this thing moving, and he's using whatever is in his power to . . . get it moving," Pretlow said. …

Spendabuck85

12-30-2009, 02:56 PM

The New York Racing Association has reversed its initial refusal to cooperate with Comptroller Thomas DiNapoli and will provide financial data to auditors, according to two officials familiar with NYRA's change of heart.

Read more: http://www.timesunion.com/AspStories/story.asp?storyID=883280#ixzz0bCgudUEp

Also today, state Sen. John Bonacic (R,I,C-Mt. Hope), the ranking GOP member of the Committee on Racing, Wagering & Gaming, said in a news release that he wants the committee to discuss placing NYRA into receivership, an action that he believes could result in the association being managed by a state agent -- such as DiNapoli. "When an entity holds a public license as NYRA does, they also hold a public trust," Bonacic said. " ... NYRA's arrogant refusal to be transparent, when combined with their threat to cancel the Belmont, makes clear that they are disregarding their public trust."

Read more: http://www.timesunion.com/AspStories/story.asp?storyID=883280#ixzz0bCgudUEp

Indulto

12-30-2009, 05:52 PM

Thanks, S5. I wonder how much longer Hayward will be around. The following is not about him, but is written by perhaps his most outspoken critic:

http://sports.espn.go.com/sports/horse/columns/story?columnist=moran_paul&id=4781698
2009 not so good for business
By Paul Moran December 30, 2009… In the waning days of 2009, betting handle is on pace to drop 10 percent year over year to about $12.3 billion, the second straight year in which handle has declined by more than $1 billion. Purses are on pace to decline about 5.8 percent to $1.09 billion, a figure comparable with 2005.

… The New York Racing Association, having once emerged from bankruptcy, is again at the verge of insolvency. Why? After eight years of astounding incompetence by what is arguably the nation's most corrupt and dysfunctional state government, the Empire State's solons remain incapable of or unwilling to choose one from among several applicants, organizations that would finance and operate a video lottery terminal casino at Aqueduct that has the potential for enormous profit.

Governor David Paterson, whose approval ratings are behind Swine Flu's, and state legislative leaders, a term employed here in the most obtuse sense, remain at unexplained gridlock over which of five bidding groups will operate the 4,500-maching Aqueduct VLT casino, first approved in 2001. …

… But racing's economic suffering at the hands of dysfunctional government is certainly not unique to New York. Pick a state.

… Optimists suggest that the market for horses may be improving with a revival of the general economy. For realists: Not so much.

The market is in contraction. Projected foal numbers for 2010 are the lowest since 1979 and the commodity least in demand during the second half of 2009 was the less-than-proven-stakes producing broodmare, especially those owned by small-scale breeders forced out of a bearish bloodstock market. The equine victims are countless.

… No progress was made during 2009 in the areas that have become festering issues plaguing a hopelessly fragmented industry: Uniform medication rules, standards and penalties; absence of central leadership, accountability and transparency. Public perception that all in racing is not entirely above board persists. …

… The sport's once-robust profile in the mainstream media has never been lower and shows no sign of regained life.

… Fewer thoroughbreds will be born in 2010. Quite likely, when old enough they will race for less money at fewer racetracks. The year just past may well be the beginning or the steepening of a downward spiral the end of which we cannot yet see and hesitate to imagine. This is not entirely the fault of those involved even at the thing and crumbling upper crust of what passes as leadership. The larger global economy is a factor but so is the arrogant abdication of responsibility on the part of those who occupy elected office.

Unlike other sports and businesses, racing -- because of an unhealthy dependence upon state regulation and the self-interested political local influences at work in almost every jurisdiction -- there is no guarantee that the industry will follow the larger economy out of recession into a more robust business cycle. While horses provided one of those years that has been nothing short of memorable, these are far from the best of times in the racing game. http://www.timesunion.com/AspStories/story.asp?storyID=880165
Bruno jurors slam state
Those who served on panel speak out about how the experience shaped view of how our government works
By JAMES M. ODATO December 20, 2009 … If they could, the jurors who convicted Joseph L. Bruno of fraud charges also would indict the state Legislature for negligence. Lawmakers, they said, should be ashamed of themselves for allowing such porous disclosure and ethics laws to remain on the books.

In interviews in recent days, eight members of the jury that heard the case against the former state Senate majority leader said they learned a lot about New York's political and governmental structure. And they came away not liking what they heard during three weeks of testimony from ethics lawyers, Senate staffers, senators and assorted business partners of Bruno. The jurors also offered clues about how they arrived at their verdicts.

"Something's got to change,' said Hugo David Renz of Altamont, a retired chief financial officer for a private company. "This is crazy; there's no financial disclosure, there's no ethics law at all."

… Some jurors said the Legislative Ethics Commission should be taking a much greater role in examining financial disclosure forms from the Legislature and that lawmakers should get opinions from the commission of all outside business.

… Like other jurors, Renz described the trial testimony as a real education.

"What I saw was absolutely pathetic. There's not disclosure there; it's concealment and deception. I never saw anything like it," he said. "Those disclosure forms don't tell you anything."

… Some of the jurors discussed their deliberations. Several credited Judge Gary L. Sharpe for "excellent" officiating and said a key witness was Gluchowski, whose testimony helped them arrive at guilty verdicts on two counts. They remarked upon his disclosure that he kept, what he called "a CYA file," a file containing a memo to himself explaining the advice he offered Bruno.

Jurors also noted Bruno business associate Jared Abbruzzese's testimony strengthened the prosecution case; both counts on which they found Bruno guilty involved Abbruzzese. And they credited Senate lawyer Ed Bartholomew for not cooperating when he was asked to support Bruno's private work soliciting union pension business.

Jurors said the evidence wasn't strong enough for convictions on all eight counts. They acquitted Bruno on five counts and couldn't reach a verdict on one, in addition to the two guilty verdicts. The charges that particularly didn't stick, they noted, involved instances in which ethics lawyers advised Bruno on his activities.

As for the conviction on count No. 4, that Bruno failed to disclose his $20,000-per-month payments from Abbruzzese as a consultant, the jurors had an easier time, partly because Gluchowski had advised Bruno to document what he was doing for such a large sum of money, which Bruno failed to do.

"If he had checked with the lawyers on count No. 8, I think we would have gone with not guilty," Gardner said.

On that charge, Bruno was found guilty of not disclosing his horse business arrangements, including accepting $80,000 from Abbruzzese for a filly whose value was a fraction of that figure. Bruno should have disclosed the payment as a gift, she said.

… She said witnesses, particularly former Senate lawyers, who answered with "I don't recall" hurt their credibility.

Walker said the verdict could easily have been "four guilties and four not guilties" because four of the charges were related to consulting fees from Abbruzzese. He said he had to point out that the burden of proof was on the prosecution. …Some here are not enthralled by NYRA, but the Abbruzzese-Bruno shenanigans really make you wonder what the FONYR/Empire folks would be doing at this point.

Indulto

12-30-2009, 11:34 PM

http://www.thoroughbredtimes.com/national-news/2009/December/30/N-Y-lawmaker-calls-for-NYRA-to-be-managed-by-state.aspx
N.Y. lawmaker calls for NYRA to be managed by state
by Paul Post December 30, 2009… “When an entity holds a public license, as NYRA does, they also hold a public trust,” said John Bonacic (R-Mt. Hope), the ranking Republican on the Senate Racing, Wagering and Gaming Committee. “NYRA’s arrogant refusal to be transparent, when combined with their threat to cancel the Belmont [Stakes (G1)], makes clear that they are disregarding their public trust.”

Last week, NYRA said it might be forced to shut down before the Belmont Stakes unless the state moves quickly to name an Aqueduct gaming operator, giving NYRA a fresh supply of cash. In September 2008, the state gave NYRA $30-million to keep operating until Aqueduct’s racino opens. NYRA has said that money is almost gone. State Comptroller Thomas DiNapoli wants to know where it went, but NYRA has refused to comply with his request for an audit.

… Bonacic has asked committee Chairman Eric Adams (D-Brooklyn) to invite legal scholars to testify about putting NYRA into a receivership. The practice is commonplace, he said. For example, if a hospital is deemed incapable of operating, the state Health Department might take over its management.

… Both the New York Daily News and New York Post ran strong editorials condemning NYRA’s position on Wednesday.

“Gov. [David] Paterson and the legislature cannot succumb to such extortion tactics,” the Daily News editorial said. “They should tell NYRA to get lost. If that means the end of the Belmont Stakes, a 105-year tradition, so be it.”

Bonacic also questioned why NYRA is accepting money for season tickets for Saratoga when at the same time saying the 2010 summer meet is in jeopardy.

“I hope to hear from NYRA that they are escrowing those funds to be repaid if NYRA either goes bankrupt or does not run this year,” he said.http://www.nydailynews.com/opinions/2009/12/30/2009-12-30_nyras_horse_hockey.html
NYRA's horse hockey: Racing association must not extort new bailout from taxpayers
Editorial December 30th 2009)… Claiming to be broke, the New York Racing Association wants to shake down taxpayers for a second huge bailout in two years.

Either the state forks over $30 million by June, President Charles Hayward recently told the Daily News, or NYRA will cancel the Belmont Stakes, third leg of the Triple Crown.

Meanwhile, these same arm-twisters are brazenly stonewalling an audit by Controller Tom DiNapoli - who's understandably curious about what happened to the $105 million NYRA glommed from the state Treasury last year.

… NYRA's claim to be immune from state scrutiny under some court decision is pure horse manure. Chairman Steven Duncker signed a contract just last year clearly stating that the controller and other state officials "shall have access" to NYRA's financial records. Evidently, Duncker is not a man of his word.

Legalities aside, though, NYRA is morally bound to open its books - having long since morphed from a private outfit to a ward of the state and leech on the public fisc.

Until NYRA cooperates with DiNapoli - and fully accounts for every dime of government money already received - it should forfeit all rights under last year's deal, including its cut of future revenues from video slots to be installed at Aqueduct. …http://www.paulickreport.com/blog/reversal-for-nyra-seeks-truce-with-comptroller/
Responses to “REVERSAL FOR NYRA? SEEKS TRUCE WITH COMPTROLLER”
Steve Zorn Says:
December 30th, 2009 at 3:51 pmToo little, too late. You’d think these folks would have learned something about being sensitive to public and political opinion.

An aside: the Times-Union story quotes an attorney named John Henry. The only one I can find who fits the description is a partner in an Albany law firm. Why, exactly, does NYRA feel the need to spend taxpayer money on outside counsel to defend an indefensible position? Perhaps that’s what NYRA is worried about: an audit that shows how much they’re paying for lawyers and consultants, instead of for parking lot attendants, ushers and mutuel clerks.

PaceAdvantage

12-31-2009, 02:05 AM

Why is the NY Daily News not running scathing editorials concerning the $14 million or so that NYCOTB owes NYRA? That $14M would go a long way to alleviating whatever real or perceived money woes exist.

And technically, NYRA was not bailed out...they sold their land rights to the state uncontested in exchange for cash and a 25 year commitment. Not really a bailout, is it?

And as someone so rightly wrote me in a recent private message (which I've tidied up a bit for prime time): Who are these people that believe the State in this latest battle with NYRA? Like, suddenly, politicians are credible?

Exactly.

Indulto

12-31-2009, 05:11 AM

PA,
The Post has always been anti-NYRA and the News is an equal opportunity basher of anything it can. The press generally has a field day with politicos and wannabes whenever they do something foolish.

It looks to me like Hayward tried to play politics with the big boys and got burned. Going up against the governor (even one less imposing than Spitzer or Pataki) and the (Bruno-less) legislature isn't like going up against the head of one of the OTBs (and that radio show appearance hardly prepared him for prime-time).

Hayward’s and Handel's back-to-back belittling of Del Mar at a Saratoga press conference hardly seemed appropriate for either high-level racing executives or track operators wanting to host a Breeders' Cup. Have I missed something positive that either of these gentlemen has done for horseplayers or New Yorkers since assuming their current roles at NYRA?

Maybe its time for Nader's triumphant return from Honk Kong with a fresh perspective and an image upgrade for his previous employer who didn't think he was ready for prime time on their dime.

Indulto

12-31-2009, 07:28 AM

And the Times-Union makes three [editorials].

http://www.timesunion.com/AspStories/story.asp?storyID=883529&category=OPINION
Photo finish for NYRA
EDITORIAL December 31, 2009The New York Racing Association is showing troubling signs of running away from what was supposed to be a new and more responsible outfit. …

… fortunately. NYRA's decision Wednesday to turn over financial records subpoenaed by Comptroller Thomas DiNapoli is the wisest thing it's done in weeks.

… Slot machines, among other things, are at the core of this dispute. Yes, the same 4,500 or so slot machines, more euphemistically known as video lottery terminals, planned for Aqueduct that have been held out as the salvation of New York racing for at least several years now. NYRA says it needs its share of the slot machine revenue if racing is to be a sure thing this year.

That franchise hasn't even been awarded yet, in what is a typical example of state government's tardiness in doing just about anything. It's not unreasonable to ask if NYRA's sudden claim of being all but broke could have been a ploy to get that process moving.

Mr. DiNapoli, though, is skeptical about NYRA's claim. And he should be.

NYRA surely knew when it renegotiated its contract to run the Saratoga, Belmont and Aqueduct racetracks last year how much horse racing had changed in the more than 50 years it's held that franchise.

The betting handle might no longer be enough to keep the tracks going. Money from slot machines probably is necessary, if not crucial. What had been an average daily handle at the state's racetracks 15 years ago of $2.6 million was down to just $1.7 million last year.

The new NYRA, with the criminal indictment of 2003 behind it, understood, or so we thought, how racing had changed. That was the premise under which it accepted some $105 million to pay off creditors and cover operating expenses -- and had some $200 million in debts and tax liens erased. Meantime, questions persist about whether NYRA has been forthcoming in the payment of its franchise fees. …

… Someone needs to get to the bottom of it. Mr. DiNapoli, in effect, gets to play racing steward. …http://www.timesunion.com/AspStories/story.asp?storyID=883280 (http://www.timesunion.com/AspStories/story.asp?storyID=883280)
NYRA set to yield records for audit
Comptroller expected to get material outlining expenditures, revenues
By JAMES M. ODATO December 31, 2009… The York Racing Association was busily preparing on Wednesday to hand over thousands of business records demanded by Comptroller Thomas DiNapoli, a reversal of its position to block state auditors from its books, according to two officials familiar with NYRA's change of heart.

… One person told of NYRA's decision said the not-for-profit corporation's top officers struggled with what to do after Hayward refused to allow auditors in this fall and turned them down again more recently, resulting in DiNapoli issuing subpoenas Monday to Hayward seeking financial data. The determination was to honor the demand for information, the source said, which would result in turning over voluminous documents involving 2008 and 2009 expenditures, revenues and fees.

NYRA attorney John J. Henry urged DiNapoli to drop the subpoenas. He suggested the comptroller try to "avoid unnecessary judicial intervention."

As an alternative to litigation, DiNapoli has been seeking access to NYRA's books by Jan. 12.

DiNapoli spokeswoman Jennifer Freeman said DiNapoli had not been advised of NYRA's decision to turn over records. …http://www.saratogian.com/articles/2009/12/31/news/doc4b3bfca3be10b183415358.txt
NYRA conveys mixed signals: Threatening shutdown by June, NYRA still selling season tickets
By PAUL POST December 31, 2009… Money being paid for Saratoga season tickets should be held in escrow until New York Racing Association’s fiscal concerns are resolved, officials said Wednesday.

NYRA has threatened to shut down by June unless the state moves quickly to name an Aqueduct gaming operator, or advance NYRA more taxpayer money to keep operating.

At the same time, NYRA is asking Saratoga Race Course season ticket holders to make payments by Jan. 8 — $515 for clubhouse seats, $292 for the grandstand.

"If a company is taking money on the premise that they will be able to perform, and at the same time saying publicly they may not perform, we need to protect consumers’ money," said state Sen. John Bonacic,

R-Mt. Hope. "I hope to hear from NYRA that they are escrowing those funds to be repaid if NYRA either goes bankrupt or does not run this year."

The Orange County Republican is the ranking GOP member on the Senate Racing, Wagering and Gaming Committee. Bonacic’s concerns are shared by ThoroFan, a Saratoga Springs-based nationwide organization for racing fans.

"Hundreds of thousands of dollars, if not more, will be paid into NYRA’s coffers by average racing fans," said Michael Amo, the group’s chairman. "Fans need to know that those funds are protected. A public and legally binding guarantee, backed by NYRA’s officers personally, is an appropriate approach." …Mr. Amo, who do you think might be willing to pass on getting their seats?

Mr. Bonacic, find a real issue to hang your hat on.

Spendabuck85

01-01-2010, 05:53 PM

Paterson said he would name a vendor to build a video lottery terminal racino at the Queens thoroughbred track next week. ''I'll be forced to make my own choice,'' Paterson said

Read more: http://www.timesunion.com/AspStories/story.asp?storyID=884057&TextPage=1#ixzz0bP6olMUI

Indulto

01-05-2010, 10:27 PM

http://www.bloodhorse.com/horse-racing/articles/54658/nyra-toss-out-nycotb-bankruptcy-petition (http://www.bloodhorse.com/horse-racing/articles/54658/nyra-toss-out-nycotb-bankruptcy-petition)
NYRA: Toss Out NYCOTB Bankruptcy Petition
By Tom Precious January 5, 2010… NYRA, which is the second largest creditor of the NYCOTB, said the OTB failed to negotiate with any of its creditors before filing its Chapter 9 reorganization plan and is using the bankruptcy filing as a maneuver to try to get its way on its long-stalled legislative agenda at the state Capitol.

In a 23-page filing with the U.S. Bankruptcy Court in the Southern District of New York, NYRA’s lawyers argue that the OTB failed to meet the legal “good faith’’ provisions to seek bankruptcy protection.

The legal brief, continuing a long-running battle between NYRA and NYCOTB, states that the OTB over-stepped its legal authority to file the petition in the first place. It said an executive order from New York Gov. David Paterson permitting the Chapter 9 move was not enough, and that the filing needed authorization from the state legislature. NYRA also maintains that the OTB “strangely’’ left out of its filing some $200 million owed to other creditors.

… “But NYCOTB’s parochial lobbying agenda is hardly a concrete ‘business plan,’ and NYCOTB is hinging the success of this case on the state legislature’s ‘swift and decisive’ action to modify the legislative distribution scheme – a subject that NYCOTB has ‘repeatedly petitioned’ the state Legislature to address, to no avail,’’ the NYRA brief states.

It accused NYCOTB of using the bankruptcy court as “leverage to further its previously unsuccessful legislative agenda.’’ Among those measures long sought by NYCOTB would be a dramatic change in the formula by which the OTB pays various entities, such as NYRA and other tracks; NYCOTB has wanted to change the way it pays its operating expenses to a calculation performed before mandatory distributions to racing entities and state and local governments are made. …http://www.nydailynews.com/opinions/2010/01/04/2010-01-04_racing_to_the_finish.html
Racing to the finish: No more subsidies or bailouts for New York's thoroughbred tracks

OPINION January 4th 2010Horse racing in New York is flat-out bankrupt - and will die this spring without emergency action by Gov. Paterson and the Legislature.

No exaggeration. The long decline in popularity of equine competition and the gambling that supports it has reached bottom. There isn't enough money to keep the nags running.

… So it is a day of reckoning for racing, an industry that supports thousands of jobs upstate while suffering dwindling interest, generating less and less revenue and requiring massive bailouts.

The latest scheme would prop up the industry by converting Aqueduct into a casino gambling parlor. In effect, Gov. Paterson and legislative leaders are moving to reward a failing business by drawing money from city residents' pockets and shipping it north to keep the horsy set in clover.

The politicians are determined to ram the deal through because Albany (http://www.nydailynews.com/topics/Albany) would also get a fast cash infusion. It's a desperate and cynical deal. Question: If casino gambling is a good idea for the city, is Aqueduct the best location for maximizing revenue? Only if you are the racing association.

… Frucher is using bankruptcy to slash costs by shedding more than half of OTB's workers and shutting most parlors.

He envisions ATM-type betting kiosks and wagering machines placed in bars and restaurants. He hopes smarter marketing would expand clientele, and he would finance a reorganization, including severance costs, by selling $250 million in bonds to investors.

… Rule out, as Frucher has, subsidizing NYRA, OTB and racing with a dime of public money.

Decide OTB's fate and the question of casino gambling in one package.

Drop the idea of a casino at Aqueduct. The area does not need two money-losing tracks - Aqueduct and Belmont - within 8 miles of each other. Aqueduct should be closed and the huge property devoted to public purposes, such as housing. Racing and casino gambling, if there's to be such, should be consolidated at Belmont.

Give the public full say over how many OTB betting machines would appear in the city - and where they would be permitted.

Bar using those machines for wagers on computer-generated horses in "virtual" races.

Establish a once-and-for-all formula for sharing OTB revenue so NYRA understands that racing has no further call on taxpayers.

Wrap all six of the state's local OTB operations into the deal.

Scrutinize Frucher's projection that closing OTB would entail $500 million in shutdown expenses - and consider doing just that.

Indulto

01-09-2010, 07:35 AM

http://www.timesunion.com/AspStories/story.asp?storyID=886659&category=STATE (http://www.timesunion.com/AspStories/story.asp?storyID=886659&category=STATE)
NYRA bets on OTB in Big Apple
Proposal being prepared to operate the bankrupt New York City operation
By JAMES M. ODATO January 9, 2010… Despite its own fiscal problems, the New York Racing Association is proposing to take over the bankrupt New York City Off-Track Betting Corp.

NYRA President Charles Hayward said at a hearing of the Assembly and Senate Friday his not-for-profit organization will introduce a plan to take over the OTB in seven to 10 days.

He declined to provide details on how NYRA would run the OTB …

… Hayward initially hailed the move, saying he thought the OTB would emerge from the bankruptcy stronger -- just as NYRA had after its own bankruptcy, which ended after the state agreed to provide $105 million and help it wipe out its debt.

Now NYRA says OTB should not be allowed to remain in bankruptcy and the corporation's petition is an inappropriate bid to achieve its legislative agenda. …http://www.saratogian.com/articles/2010/01/09/news/doc4b480ffdc36a5295856631.txt (http://www.saratogian.com/articles/2010/01/09/news/doc4b480ffdc36a5295856631.txt)
Racing leaders oppose OTB bankruptcy plan
By PAUL POST January 9, 2010… Jeff Cannizzo, head of Saratoga Springs-based New York Thoroughbred Breeders Inc., brought a 4-foot-tall headstone to the proceedings, to dramatize racing’s fate if proposed changes are allowed.

“New York City Off Track Betting is seeking to pay its operating expenses before it calculates its mandatory distribution to the state thoroughbred industry as well as to state and local governments,” he said. “This accounting trick will dramatically reduce revenues to those who are the heart and soul of thoroughbred racing, remove OTB accountability, and create a death spiral for an industry that employs tens of thousands of New Yorkers.”

… Cannizzo was among a handful of racing industry leaders invited to testify at Friday’s hearing. The list included New York Racing Association, New York Thoroughbred Horsemen’s Association, other thoroughbred and harness track officials and labor representatives.

… But Cannizzo said, “If OTB distributions to thoroughbred breeders disappear, on top of the current financial distress breeders are suffering, the breeding industry will be decimated, putting the racing industry here in New York out of business. Without the product, the horses, there will be no race to hold, no ticket to wager and no handle to disburse.” …http://www.nydailynews.com/sports/more_sports/2010/01/08/2010-01-08_untitled__races8s.html (http://www.nydailynews.com/sports/more_sports/2010/01/08/2010-01-08_untitled__races8s.html)
The Day at the Races
BY Jerry Bossert January 8th 2010By the time you read this, horse racing in New York could be finished.

New York City Off Track Betting, the nasty parasite that some say sucks the blood out of horse racing, will try for more when it claims it needs to reduce the share of dollars it gives back to the sport at a hearing this morning in Manhattan.

NYCOTB claims it should share money only after it makes a profit.

Imagine if you ran a factory that produces shoes. You ship them to stores to be sold, but would get paid back only if the shoe store made a profit.

This is what NYCOTB's ridiculous plan is.

… NYCOTB needs to be absorbed by the tracks. …http://www.drf.com/news/article/110008.html (http://www.drf.com/news/article/110008.html)
New York OTB presents financial strategy
By David Grening1/8/2010… One of the major facets of the plan, as presented by OTB's chairman Sandy Frucher, is for the company to pay the state racing industry off of net income as opposed to gross receipts, a plan that New York Racing Association officials called "preposterous." Handle on New York racing accounts for 36 percent of OTB's handle.

… Frucher said if the state legislature does nothing, OTB would have to close in two months. He said the cost to shut the agency down is $683 million, which includes welfare and pension benefits, and that the cost would have to be absorbed by the city and state.

… Other parts of OTB's plan include a 55 percent reduction in staff by the end of 2011; closing 41 branches and a reduction of space at its Manhattan headquarters by more than 50 percent; opening five upscale bar/restaurant/parlors throughout the five boroughs of New York City; and opening 1,100 to 1,300 self-service betting kiosks throughout the city.

… The opening of the kiosks would essentially replace the closed parlors. The kiosks idea, however, was met with great resistance by legislators who fear the expansion of gambling, especially putting them in areas accessible to minors.

Wagering at kiosks would not be subject to the 5 percent surcharge that currently exists at parlors, which could result in loss of revenue as well.

… Hayward said that while NYRA would certainly be hurt if OTB closed, he believes NYRA would pick up a large percentage of the $175 million OTB handles in phone and Internet business.http://www.paulickreport.com/blog/nycotb-testimony-before-various-ny-state-committees/ (http://www.paulickreport.com/blog/nycotb-testimony-before-various-ny-state-committees/)
Oral Testimony before the New York State Assembly Committees
on Racing & Wagering and Corporations, Authorities & Commissions

and the New York State Senate Committees on Racing, Gaming & Wagering
and Corporations, Authorities & Commissions

on the Future of the New York City Off-Track Betting Corporation

January 8, 2010

Presented by Meyer “Sandy” Frucher, Chairman
New York City Off-Track Betting Corporation

OTM Al

01-09-2010, 10:02 AM

Frucher appeared on the NY1 Inside City Hall show the night before and was interviewed for about 5 minutes. In that intreview, he referred to the money that was paid to NYRA as a subsidy and also said that for OTB to make a comeback, they need to appeal to the beauty of the animal rather than wagering. Time for a complete restructuring.

Indulto

01-17-2010, 12:14 AM

http://sports.espn.go.com/sports/horse/columns/story?columnist=moran_paul&id=4817279 (http://sports.espn.go.com/sports/horse/columns/story?columnist=moran_paul&id=4817279)
A eulogy to New York racing?
By Paul MoranJanuary 11, 2010… Not insignificantly, New York City OTB is the largest of "public benefit" corporations operating in the state and despite its situation -- an off-site pari-mutuel wagering monopoly in one of the world's most densely populated metropolises -- is the only one that is bankrupt. The others, none of which is particularly beneficial to the host industry to which they are parasitically attached at the jugular, seem to operate profitably.

But NYC OTB has never been more than a bloated jobs program benefitting friends, relatives and others connected to whatever political party is in power, a study in patronage and redundancy if not outright corruption. Michael Bloomberg, now in his third mayoral term, served most of two before unloading the albatross on a bankrupt, gridlocked state government, which rushed recklessly to the rescue under the guise of saving jobs.

The political appointee currently at the helm of the state-owned NYC OTB, Meyer Frucher, proposes that the state legislature change the system of statutory payments to racetracks and breeders as well as state and local government and claims that distributions should be based on net income instead of gross income. This ignores the fact that there is no net income and no guarantee that there ever will be. Frucher's argument is tantamount to the owner of any failing business -- an automobile dealer, for instance -- claiming that there would surely be profit if not for the requirement that he pay for the cars.

… NYC OTB did not find its way to this sorry period in its generously besmirched history without much of this sort of logic. Frucher's proposal has long been a point belabored by his predecessors appointed by a succession of New York City mayors. They, like Frucher, unsullied by reality, cling grudgingly to an ignorance of the racing's industry's structure and business model. Were this concept actually adopted, there would be, in fact, no racing and therefore no product and no OTB.

… Since its establishment, the model of off-track wagering in New York has endured as a blueprint for failure, replicated or imitated nowhere. It has successfully carries out its mandate to generate revenue for local government, most from a surcharge on winning wagers. It has slowly, almost blithely, bled the state's racetracks beyond the point of anemia and now serves notice that it thirsts for the last drop of blood.

The New York Racing Association, which is owed $14.7 million by NYC OTB, has filed an objection to its bankruptcy petition, charging that it was not filed in good faith, and is expected to propose a takeover. In what amounts to a race between the lesser of evils, NYRA wins by a pole. A takeover by a consortium of creditors merits consideration. Another form of privatization might be considered. Necessity is the mother of invention and it has become necessary to allow NYC OTB to die so that it can be reborn in another form. …http://www.drf.com/news/article/110061.html (http://www.drf.com/news/article/110061.html)
NYRA to reveal finances to state
By Matt Hegarty1/13/2010The New York Racing Association has agreed to comply with a subpoena issued by the New York State Comptroller seeking the association's financial documents, the comptroller's office announced on Wednesday.

NYRA's decision is a political victory for the comptroller, Thomas P. Napoli, who issued the subpoena late last year after NYRA's chief executive, Charles Hayward, was quoted in various reports claiming that NYRA would need additional money from the state by early summer in order to keep operating its racetracks.

… DiNapoli said in his release that his auditing team will examine "millions of dollars in direct payments made to NYRA over the past couple years and monies owed the state by NYRA." As part of the 2008 deal, NYRA received approximately $105 million in cash from the state, and the state received the titles to the association's three racetracks, Aqueduct, Belmont, and Saratoga.http://www.drf.com/news/article/110080.html (http://www.drf.com/news/article/110080.html)
New York OTB defends bankruptcy move
By Matt Hegarty 1/13/2010 New York City Off-Track Betting Corporation was legally authorized to file bankruptcy under a little-used part of the code that is reserved for municipalities because of the broad powers of oversight conferred on Gov. David Paterson, the state-owned corporation argued Wednesday in a response to objections to its bankruptcy filing.

The response was filed in advance of a hearing scheduled for Jan. 20 to hear arguments about whether or not the offtrack betting company can reorganize under chapter 9. New York City OTB, the largest bet-taker in the United States, filed for Chapter 9 bankruptcy protection in early December, but last week the New York Racing Association filed an objection to the move, arguing that the legislature needed to authorize the decision and that the OTB company did not negotiate in good faith before filing for bankruptcy.

In its response, New York City OTB contends that Gov. Paterson s authorization was all that was required to go forward, in part because of the state s takeover of the company in 2008 from New York City. As part of the legislation authorizing the takeover, Paterson was given the power to appoint and remove board members of the organization. In addition, the response said, because the legislation included language calling the continued operation of New York City OTB to be of paramount importance to the public interest, the OTB company s decision to pursue protection in Chapter 9 dovetailed with the justifications outlined in previous case law for similar situations.

The response also claimed that New York City OTB would demonstrate that it satisfied several requirements for negotiations with its creditors before filing for bankruptcy, but the response itself was short on details. …http://blog.timesunion.com/capitol/archives/21576/senate-inquisitors-want-data-from-nyra/ (http://blog.timesunion.com/capitol/archives/21576/senate-inquisitors-want-data-from-nyra/)
Senate inquisitors want data from NYRA
by James M. Odato January 14, 2010Senators Eric Adams and Craig Johnson wrote to the New York Racing Association today requesting documentation about its expenses and operations, including federal tax returns.

Adams, chairman of the Racing, Gaming and Wagering Committee, and Johnson, head of the Investigations and Government Operations Committee, are planning a hearing on NYRA’s operations at the Elmont Public Library on Feb. 3.

The letter to NYRA President Charles Hayward notes the senators’ surprise that NYRA needs money, given that it received $105 million from the state two years ago. Johnson’s district includes the Belmont track, which Hayward has said might have to be closed this season because of cash-flow problems.

… Deadline for the material is Jan. 24. The senators also invited NYRA to testify Feb. 3 at the hearing, which is supposed to be about the shape of New York’s horse racing industry compared to elsewhere in the nation.

… Read the full letter below.

NYRA Letter (http://www.scribd.com/doc/25221086/NYRA-Letter)http://www.horseraceinsider.com/blog.php/On-The-Line/comments/01152010-racings-problems-effecting-quality-of-life-in-new-york-state/#comments (http://www.horseraceinsider.com/blog.php/On-The-Line/comments/01152010-racings-problems-effecting-quality-of-life-in-new-york-state/#comments)
Racing’s Problems Effecting Quality of Life in New York State
By John Pricci January 15, 2010…In the same week Gov. David Paterson gave a State of the State address calling for stricter ethics rules, the president of the New York City Off-Track Betting Corporation announced plans for a new business model--if only it were given an opportunity to pay its bills based on net receipts, not gross revenues.

Before thinking “yeah, that’ll work and who do they think they‘re kidding,” never underestimate what can happen when one government agency works with another to solve a mutual problem.

After NYC OTB made its pitch before a joint Senate and Assembly hearing board, the president of the New York Racing Association called for an NYC-OTB-NYRA merger, under the track’s control.

… The VLT impasse is more than about dollars and cents. As with all gambling revenue, declines negatively affects education funding. Moreover, declining gaming revenues adversely affects the quality of life and topographical character of the state itself.

VLTs is also about the preservation of green space made possible by New York State breeding program.

There are approximately 400 breeding farms in the state but, as a result of falling purse revenues from declining handle and NYC-OTB’s inefficiency that has resulted in a debt to the NYS Breeding Fund of $1.8 million, and it keeps growing.

Resultantly, 21 breeding farms have been closed, including two of the state’s three largest commercial breeders, Sequel and Sez Who Farms. The estimate of farms that have moved breeding operations to VLT-enriched Pennsylvania ranges from 12 to 15 percent.

Foal size, which reached its zenith in 2004, has been reduced by 21 percent. Last year, there were 3,302 mares bred, producing 2,209 foals.

A crop reduced by one in every five horses foaled just five years ago will have a dramatic effect on field size this year and beyond, continuing racing’s downward handle spiral. The situation might not be as dire as Kentucky’s, but wait five minutes.

Even if overall simulcast handle on New York racing grows, and online wagering suddenly goes through the roof, it will not provide relief for the current situation. The New York breeders’ share of simulcast revenue is zero. …

hibiscus

01-18-2010, 04:34 PM

Paterson said he would name a vendor to build a video lottery terminal racino at the Queens thoroughbred track next week. ''I'll be forced to make my own choice,'' Paterson said

Isn't "next week" two weeks ago? This story was dated January 2. Even loosely interpreted “next week” would be the week ending January 15. Did the Governor name the casino operator? Did I miss something?

Spendabuck85

01-18-2010, 04:41 PM

Isn't "next week" two weeks ago? This story was dated January 2. Even loosely interpreted “next week” would be the week ending January 15. Did the Governor name the casino operator? Did I miss something?

Apparently he has other priorities:
From NY Post 1/17/10
Gov. Paterson was spotted nuzzling, neck-kissing and cooing like a smitten schoolboy with a pretty young woman -- not his wife -- in a New Jersey steakhouse yesterday afternoon, The Post has learned.

"I saw him kissing her neck," said Sharon Farrell, a lawyer sitting two tables away from Paterson and his mystery gal pal at the River Palm Terrace in Edgewater. "He was right on her neck, nudging, like back and forth."

Read more: http://www.nypost.com/p/news/local/dave_latina_lovely_sRI4hN1iRjRomshAacs3PM#ixzz0d0D fctky

hibiscus

01-18-2010, 04:49 PM

Apparently he has other priorities:
From NY Post 1/17/10
Gov. Paterson was spotted nuzzling, neck-kissing and cooing like a smitten schoolboy with a pretty young woman -- not his wife -- in a New Jersey steakhouse yesterday afternoon, The Post has learned.

"I saw him kissing her neck," said Sharon Farrell, a lawyer sitting two tables away from Paterson and his mystery gal pal at the River Palm Terrace in Edgewater. "He was right on her neck, nudging, like back and forth."

This is just great. The state is bleeding money and we have Client 10. :confused:

PaceAdvantage

01-19-2010, 05:57 AM

Gov. Paterson was spotted nuzzling, neck-kissing and cooing like a smitten schoolboy with a pretty young woman -- not his wife -- in a New Jersey steakhouse yesterday afternoon, The Post has learned.Well, he does have THE perfect excuse when caught doing these sorts of things...he's blind (legally)!!

Indulto

01-23-2010, 06:08 AM

http://www.nysenate.gov (http://www.nysenate.gov/)
Senator Johnson to Hold NYRA Hearing in Elmont
By Craig M. Johnson 01/18/2010… The Feb. 3 hearing, which will be held jointly with the Senate Committee on Racing, Wagering, and Gaming, will begin at 11 a.m. at the Elmont Public Library, 700 Hempstead Turnpike, Elmont, NY. It will additionally focus on the state of New York's thoroughbred racing industry in comparison to other states.

This action was spurred by NYRA's recent claims that they were going to become insolvent – possibly closing down its tracks and cancel the Belmont Stakes – before the end of the year if a VLT operator was not chosen for the Aqueduct Race Track.

… “NYRA's threat to cancel the Belmont Stakes and greatly damage our local economy certainly raises questions about how they have spent their taxpayer-funded windfall,” said Senator Johnson, who voted against the NYRA bailout. “Belmont's host communities have spent a lot of time and effort on a plan to redevelop the track as an economic development engine. We need to make sure that management decisions today do not jeopardize tomorrow's prosperity.”

The Senate's inquiry will also include questions about the physical operations of the track.

… In preparation for the hearing, Senator Johnson and Senator Eric Adams, chairman of the Racing, Gaming and Wagering Committee, requested copies of NYRA's financial statements, tax returns, and correspondence concerning the Association's fiscal situation.

A copy of the letter can be found below.
NYRA Letter (http://www.nysenate.gov/files/pdfs/NYRA%20letter.pdf)
http://www.drf.com/news/article/110236.html (http://www.drf.com/news/article/110236.html)
Hearing postponed on New York OTB
By David Grening1/21/2010… a U.S. bankruptcy court judge on Wednesday delayed until Feb. 22 a hearing on the issue of whether the company is eligible to file for bankruptcy under Chapter 9, a little-used section of the bankruptcy code.

Judge Martin Glenn, of the U.S. bankruptcy court in the Southern District of New York, said he wanted to combine the evidentiary hearing with the legal arguments and gave both New York City OTB and the New York Racing Association - which filed an objection to OTB's bankruptcy filing - additional time to depose witnesses. NYRA's attorney, Brian Rose, said he wants to depose the offtrack wagering company's president, Ray Casey, because of "contradictory statements" he believes Casey made in the company's bankruptcy filing and its response to NYRA's objection.

Casey, along with OTB's chairman, Sandy Frucher, and NYRA's president and CEO, Charles Hayward, were all present in court Wednesday and scheduled to testify. All parties will be brought back for the Feb. 22 hearing, during which both OTB and NYRA will be given three hours each to present their case.

"It's not going to be a litigation-fest," Glenn said.

… Following the adjournment, Frucher said that OTB, since filing for bankruptcy, has made "all of our post-petition payments to the racing industry." Hayward confirmed that the company recently made a $1.1 million payment to NYRA. …

hibiscus

01-23-2010, 06:56 PM

“NYRA's threat to cancel the Belmont Stakes and greatly damage our local economy certainly raises questions about how they have spent their taxpayer-funded windfall,” said Senator Johnson, who voted against the NYRA bailout.

What taxpayer-funded windfall is he talking about? What NYRA bailout did he vote against?

PaceAdvantage

01-23-2010, 07:20 PM

Two very good questions...answers await!

Indulto

01-25-2010, 11:51 PM

http://www.bloodhorse.com/horse-racing/articles/55021/new-york-otb-report-racing-being-threatened?source=rss (http://www.bloodhorse.com/horse-racing/articles/55021/new-york-otb-report-racing-being-threatened?source=rss)
New York OTB Report: Racing Being Threatened
By Tom Precious January 25, 2010… But the Task Force on the Future of Off-Track Betting shied away from recommending steps as dramatic as out-right mergers of the state’s OTB corporations or mergers with racetracks to end decades of what critics say has been damaging competition.

The report did recommend privatization of OTB branches if its 11 key recommendations are ignored by lawmakers, but left the door wide open to local governments continuing to have a role in running the overall operations. The OTB corporations have been criticized over the years as being major political patronage mills.

… The proposals include:

Forcing out-of-state advance deposit wagering operators who take bets from New Yorkers to be licensed by the state regulators and to pay the same payments and breeders’ fees as those returned on bets originating in the state;

… New legislatively-imposed rates on what racetracks charge for exporting their signals to better compete with out-of-state ADW rebate programs;

… A single, mandatory payment that tracks must make to OTB corporations, instead of the current hodge-podge system that leaves some payments to state law and others to negotiations, and allow unrestricted in-home simulcasts for tracks and OTB networks, including Internet video streaming;

… “We have identified many ways to make OTBs more efficient and help them be better producers of revenue, with one great example being the lifting of certain restrictions that put both the OTB corporations and the tracks in better position to compete with out of state ADWs,” John Crotty, a task force member, said in a statement in releasing the 197-page report.

The panel said laws that built in “protectionist payments” for harness tracks need to end, especially given the precarious financial state of the state’s OTB systems.

The task force rejected the loudest demand from New York City Off Track Betting Corp. that statutory payments to tracks and governments be paid after the OTB corporations pay all operating expenses first.

“If this idea were to be adopted, there would be little incentive for the OTBs to reduce overhead,” task force member Thomas Casaregola said.

NYCOTB officials earlier in the day said that change is a make-or-break demand that must be met if it is to obtain the financing it needs on the private market to keep the operation afloat after March 30.

The full report can be found at http://www.otbfuture.com (http://www.otbfuture.com/).http://www.thoroughbredtimes.com/national-news/2010/January/25/New-York-OTB-report-details-crisis-in-New-York-racing-breeding-industries.aspx (http://www.thoroughbredtimes.com/national-news/2010/January/25/New-York-OTB-report-details-crisis-in-New-York-racing-breeding-industries.aspx)

New York OTB report details crisis
in New York racing, breeding industries
by Paul Post January 25, 2010… “We’re reaching a crisis that involves [the] New York Racing Association,” Chairman John Van Lindt said. “The six OTBs together give NYRA $100-million per year; New York City OTB $55-million alone. If OTB fails, NYRA fails.”

At present, Western Regional OTB is the only one thriving because it owns Batavia Raceway and gets a share of its video gaming revenue. New York City OTB is in bankruptcy and the four others are teetering on marginal profitability and will sink into the red within a year’s time unless prompt action is taken, Van Lindt said.

… The report recommends against a NYRA takeover of any of the off-track betting outlets because of its own precarious financial condition. NYRA says it will run out of money by June without a cash infusion from the state or an Aqueduct gaming operator.

… The report does not call for consolidating the six off-track betting outlets into one statewide entity.

“We don’t feel politically that’s a viable option,” Van Lindt said. “That’s been proposed in the past and nothing was done. We only wanted to recommend things we thought were practical and doable. We’re not going to chase after empty wagons.”http://www.drf.com/news/article/110350.html (http://www.drf.com/news/article/110350.html)

New York OTB threatens to close on March 30
By Matt Hegarty1/25/2010… The board of the corporation met on Monday and approved the plan to close of all the company's storefronts and its account-wagering operation, which together account for approximately $1 billion in handle each year. According to members of the organization, the board was required to announce that it would seek to close within 60 days in order to comply with statutes requiring the distribution of notices to unions representing its employees.

… The threat to completely shut down is the second made by the OTB corporation in two years. In February, 2008, the board also authorized a shut down, when the city owned the company. As a result of that threat, the state of New York took over the company's operations late in 2008.

… The New York Racing Association, which operates Aqueduct, Belmont, and Saratoga, has filed an objection to the reorganization plan, and a hearing has been scheduled for Feb. 22 to hear the association's arguments. NYRA is owed $14 million by the company, according to bankruptcy filings.

Dan Silver, a spokesman for the association, said on Monday that OTB's proposal to close was consistent with the company's statements over the past several months.

"NYCOTB has been consistently saying that they will run out of money at the end of March, and we are monitoring the situation closely, as they are NYRA's largest customer," Silver said.What happens to funds in user accounts if NYCOTB closes?

Indulto

01-30-2010, 03:35 AM

http://www.casinocitytimes.com/news/article/n-y-council-members-endorse-mgm-mirage-aqueduct-bid-192367 (http://www.casinocitytimes.com/news/article/n-y-council-members-endorse-mgm-mirage-aqueduct-bid-192367)
N.Y. council members endorse MGM Mirage Aqueduct bid
29 January 2010… the three New York City Council members who represent the Southeast Queens Community where Aqueduct is located have weighed in on the matter.

Deputy Majority Leader Leroy Comrie, Civil Service & Labor Committee Chairman James Sanders Jr. and Economic Development Committee Chairman Thomas White Jr. announced late Wednesday they support the bid submitted by a group that includes Las Vegas-based casino giant MGM Mirage.

In a joint statement, the three council members told New York Gov. David Paterson he should select the MGM Mirage bid out of the five proposals on the table that are seeking the contract to build and operate a 4,500-machine video lottery casino at Aqueduct.

"There are a myriad of reasons why we are recommending this bid," Comrie said in the statement. "However, what stands out is their track record of quality development throughout the country, their focus on inclusion of minority and women-owned business in the development, their commitment on providing stable economic opportunities for our community."

MGM Mirage would operate the casino at Aqueduct. New York developer Donahue Peebles, MGM Mirage, Harbinger Capital Partners, Perini Building and Global Hue, submitted the proposal. …http://www.nypost.com/p/blogs/knickerbocker/exclusive_paterson_to_give_aqueduct_BBV5FrBHBVfLjG uj9uy52K (http://www.nypost.com/p/blogs/knickerbocker/exclusive_paterson_to_give_aqueduct_BBV5FrBHBVfLjG uj9uy52K)
Exclusive: Paterson gives 'racino' contract to AEG
By BRENDAN SCOTT and FREDRIC U. DICKERJanuary 29, 2010… The sources said Paterson began notifying interested officials about his decision to name AEG yesterday afternoon, but has since left things hanging. A lobbyist involved in the talks said it appeared that the governor made the decision without notifying his top staff.

… Senate Democratic Leader John Sampson of Brooklyn has reportedly favored AEG throughout the process, but Assembly Speaker Sheldon Silver (D-Manhattan) is said to be apprehensive about the company. Both leaders have to sign off on any deal. …http://readme.readmedia.com/Statement-from-Governor-David-A-Paterson-on-the-Selection-of-AEG-to-Operate-the-VLTs-at-Aqueduct-Racetrack/1093678 (http://readme.readmedia.com/Statement-from-Governor-David-A-Paterson-on-the-Selection-of-AEG-to-Operate-the-VLTs-at-Aqueduct-Racetrack/1093678)
Statement from Governor David A. Paterson on the Selection of AEG to Operate the VLTs at Aqueduct Racetrack
by New York State Office of the Governor
ALBANY, NY (01/29/2010)(readMedia)Governor David A. Paterson today announced that he and Legislative Leaders have selected Aqueduct Entertainment Group (AEG) to operate the video lottery terminals at Aqueduct Racetrack. He issued the following statement:

"After an extensive review of the five remaining bids to operate the video lottery terminals at Aqueduct racetrack, I have chosen and the Leaders have agreed the organization that best fulfills our selection criteria. AEG has both the financial viability and ability to pay the required upfront licensing fee. AEG complied with every request made during the review process and addressed satisfactorily all matters related to licensing ability. All of the groups have valid proposals, but AEG presented a comprehensive bid that enjoys community support and also offers strong marketing appeal. I thank my colleagues in government for joining me in selecting AEG, so that the State may begin to benefit from the critical revenue stream that this important economic development project will generate."http://www.bloodhorse.com/horse-racing/articles/55101/aeg-selected-to-operate-aqueduct-vlt-casino (http://www.bloodhorse.com/horse-racing/articles/55101/aeg-selected-to-operate-aqueduct-vlt-casino)
AEG Selected to Operate Aqueduct VLT Casino
By Tom Precious January 29, 2010… the deal comes with some strings attached by the state legislature, including that AEG must raise its up-front franchise fee payment to the state from $200 million to $300 million to match the highest offer that had come from Penn National Gaming Inc. A series of other demands have also been imposed at the last minute Jan. 29 in order to gain legislative approval, including a serious vetting of all individuals tied to AEG before a contract will be awarded.

… The deal required the sign-off by Assembly Speaker Sheldon Silver and Senate Democratic Conference Leader John Sampson. Silver was said to have the most issues with AEG as an operator for the next three decades at the Queens facility. But Dan Weiller, a Silver spokesman, said several important conditions were placed on the selection.

Weiller said besides the up-front licensing fee being increased to $300 million, the winning bidder must also use the existing MGM Mirage casino footprint—from an earlier, failed process to get another VLT casino at the track—in order to piggyback onto previous environmental reviews awarded that project. That will quicken the construction time.

To satisfy concerns about some potential investors of AEG, the Assembly also inserted language to ensure that all investors at any level, partners, directors, managers, and contract-holders must obtain licenses from the state Lottery Division, which will require a round of background checks. Also, it prohibits a license to anyone who has been convicted of a series of major and minor crimes over the past 15 years, such as tax evasion or fraud, from getting a license to be involved in the venture.

Finally, Weiller said, any changes that have to be made to meet any conditions for a final contract with the state have to again be unanimously approved by the governor and the two legislative leaders.

… That PNGI talked of still remaining interested in the VLT casino highlighted some initial reactions by some other officials that the new conditions imposed on AEG might not be so easy to reach—thereby giving the possibility the process could re-open.

… AEG officials declined to be interviewed. In a statement, the AEG team did not specifically address whether it can meet all of the new conditions they will have to meet to get the final casino deal signed.

… But the other bidders were quick to pounce on the conditions demanded by Silver as evidence that the process is far from over.

… “Our understanding is that the decision is contingent upon certain further conditions being met. We question whether the AEG group can meet such conditions, and we are awaiting word on that,” the SL Green group added. “We stand ready to re-engage state officials should AEG fail to meet the conditions outlined by the (Assembly) Speaker."

… Pheffer added that another important round of talks will involve AEG being able to work with NYRA. “They have to develop a working relationship,” she said. Pheffer added that the AEG plans were “a little more aggressive” than others when it came to developing lands now in use by NYRA.

… AEG since last year has been the choice of Senate President Malcolm Smith, a Queens Democrat whose political mentor, Rev. Floyd Flake, a prominent African American leader in New York City, has ties to the AEG bid.

… The developments came a day after a group of Queens City Council members called on Paterson to select the Peebles/MGM Mirage bidding group. …http://www.buffalonews.com/258/story/939906.html (http://www.buffalonews.com/258/story/939906.html)
Delaware North loses bid to run downstate racetrack
By Tom Precious January 29, 2010… Delaware North in 2008 won the rights to develop the casino and its 4,500 slot machines at Aqueduct Racetrack, but had to back out last spring when it could not raise the $370 million it offered in an upfront payment to the state.

… Delaware North faced an uphill climb in the latest war for the Aqueduct casino, which has gone through bidding contests by three gubernatorial administrations. After not being able to raise the funds during the credit crunch last year, Delaware North encountered opposition from lawmakers and other bidders who said the company overbid in the previous round and showed it could not compete for the project. Delaware North officials countered that raising the money was no longer an issue.

… The Paterson pick is a surprise since his negotiators for months have been pushing a bid by SL Green, a Manhattan development firm, and Hard Rock Entertainment, the Seminole Indian-owned gambling and entertainment firm.

Paterson, the state's first black governor, also is interested in wooing the support of Flake, a Queens Democrat who recently told a downstate newspaper that he had not ruled out supporting Attorney General Andrew Cuomo in his upcoming run against Paterson in a Democratic primary.

An endorsement of Paterson by Flake could be used to gather other African-American support in the face of growing backing by some black leaders of a Cuomo candidacy. For a year, Aqueduct Entertainment had been the choice of Senate President Malcolm Smith, a Queens Democrat who counts Flake as his chief political and spiritual mentor.

The casino is a major prize for its winner. It will be the only legally operated casino in New York City, and one of the few in the world with its own subway stop.http://www.nytimes.com/2010/01/30/nyregion/30gamble.html (http://www.nytimes.com/2010/01/30/nyregion/30gamble.html)
In Casinos, New York Faces Uncertain Returns
By CHARLES V. BAGLI January 29, 2010 … New York’s embrace of gambling, to be sure, has had its upsides in recent years, and the combined revenue from the state’s eight racetrack casinos is still on the rise. But the outfits that run those casinos won the right to take a larger percentage of total revenues and have been sending less money to the state’s dedicated education fund — down by nearly 10 percent in 2009.

… A new casino at Aqueduct, with 4,500 electronic slot machines but no table games, would sit in a densely populated part of Queens, something the developers competing to operate it find attractive.

… But some analysts say an Aqueduct casino may wind up stealing customers from the Empire City Casino at Yonkers Raceway, the state’s best performing slots hall.

The Aqueduct casino, in turn, would come under siege if the Shinnecock tribe builds a casino at nearby Belmont, or on its reservation in Southampton.

… Casino-related revenue flowing to government in Connecticut has fallen in each of the last two years.

… Mr. Schumer and the governor are hopeful that they can persuade the federal Interior Department to permit off-reservation Indian casinos in the Catskills as a way of reviving the former resort area.

… Although Mr. Medenica disagrees generally with those who contend that the New York market is already saturated with gambling operations, he said, “Upstate, I don’t think there’s capacity for more casinos.”

In order to make the existing racetrack casinos more competitive, he said he is pushing to introduce electronic versions of roulette, blackjack and other table games.

A step ahead of New York, Pennsylvania plans to install traditional table games at its racetrack casinos this summer.

As for Aqueduct, Mr. Medenica said, it will be part of the latest trend in “neighborhood gambling destinations,” with millions of people only a subway stop or two away.

“If and when it happens,” he said of Aqueduct, “it will do extremely well against Connecticut and New Jersey.”

Indulto

02-01-2010, 06:39 AM

http://www.nypost.com/p/news/local/queens/cronies_horse_power_tB5w3ffy58sNxnJLKh7ZuO (http://www.nypost.com/p/news/local/queens/cronies_horse_power_tB5w3ffy58sNxnJLKh7ZuO)
Queens cronies' horse power
By MELISSA KLEIN and ISABEL VINCENT January 31, 2010The players in the New Direction Local Development Corp. charity have close ties to those involved with the $300 million deal to bring video-terminal gambling to Aqueduct Racetrack.

... Among the companies that make up AEG are the Darman Group and the Empowerment Development Corp. The development group was created by the Rev. Floyd Flake, the political mentor to both state Sen. Malcolm Smith and Rep. Gregory Meeks, who helped start New Direction.

Smith, who worked as a congressional aide to fellow Democrat Flake, is said to speak with the pastor daily. Meeks succeeded Flake in Congress.

Edwin Reed, the treasurer of New Direction, is chief financial officer for the development arm of Flake's church.

Darryl Greene, a principal in the Darman Group, is a former business partner of Smith's. Greene was convicted in 1999 of defrauding city agencies. Greene's wife, Cathy, was on the founding board of New Directionhttp://www.nypost.com/p/news/local/queens/playing_faves_YNuga7CRZpAQYZ0p4lxBzJ (http://www.nypost.com/p/news/local/queens/playing_faves_YNuga7CRZpAQYZ0p4lxBzJ)
Playing faves
Gov pulls 'win' lever for friend
By FREDRIC U. DICKER and BRENDAN SCOTT January 30, 2010… Capping a flawed selection process, Gov. Paterson yesterday picked a business consortium tied to friend and former Democratic Rep. Floyd Flake to build a slot-machine casino at the Aqueduct Racecourse in Queens.

... STUMBLE AT THE FINISH: Plans to remake Aqueduct into a Yonkers-style "racino" were awarded to a group linked to power broker Floyd Flake ... but few expect a done deal.

The bidding process has been widely slammed by critics who say it was tilted by Paterson toward his favored firm -- AEG.

... Paterson and Senate Democratic Conference leader John Sampson (D-Brooklyn) agreed on the selection of the AEG over the past few days and, as a final step, Silver (D-Manhattan) gave his approval late yesterday.

But Silver, who was believed to have favored another of the bidders, insisted that four conditions be met, including a requirement that no investor associated with AEG could have a criminal record.

Assembly sources said that's a "potential problem" for at least two smaller AEG investors, including Darryl Greene, an associate of Flake's firm and onetime business partner with Senate President Malcolm Smith (D-Queens). Greene was convicted in 1999 of stealing $500,000 from city agencies and private firms that paid him for affirmative-action hiring services.

Flake was a congressman from Queens from 1987 to 1997 and remains pastor of an influential black church in the Jamaica section.

... AEG's partners include ex-MGM executive Larry Woolf, the Flake-connected Darmin Group, a minority-owned consulting firm, and several construction companies.http://www.nationalpost.com/news/story.html?id=2507082
Consortium off to races at U.S. track
Karen MazurkewichFebruary 01, 2010 Gamblers in New York will soon be lining the pockets of some Canadian investors. A consortium led by Toronto-based Clairvest Group Inc. has been named the "preferred bidder" by the State of New York for a licence to operate a new gambling facility featuring 4,500 video lottery terminals at the Aqueduct Racetrack in Queens, N.Y.

… The Aqueduct Entertainment Group, which includes Clairvest, Navegante Group Inc., and several prominent U.S. construction firms including Levin Builders and Turner Construction, bid on a licence that would grant them exclusivity for a minimum of 30 years to operate the facility.

… "This is a real feather in our cap as a private-equity firm; we were competition against [five] other U.S. based competitors," said Jeff Parr, cochief executive and managing director of Clairvest, yesterday. The firm has $700-million of assets under management.

… Clairvest developed its expertise by investing in Gateway Casinos Inc., which owned four casinos in British Columbia and Alberta. Now Clairvest is leveraging its Canadian know-how and cash by bidding on state licences for casinos in the United States. In addition to the Aqueduct Racetrack licence, the firm signed a deal in August 2009 with Chicago developer Neil Bluhm to take a 40% stake in a new 50,000 square foot casino complex to be built near the O'Hare International Airport in Des Plaines, Ill. …

… The Canadians' entry into the market is helping reshape the gambling industry. … Today's casino builders are a different breed: They make profits through financial engineering and prize EBIDTA (earnings before interest, debt, taxes and appreciation) ratios.

Many of the new players -- such as Mr. Parr of Clairvest and Mr. Duncanson of Onex -- are private-equity players who don't gamble much themselves. They are low-key Canadian businessmen who shun the limelight … And their timing is impeccable.

… "What you are seeing is a transformation of the gaming industry in North America from a destination where you could only go to Atlantic City, Mississippi and Las Vegas ... to one where there are gaming facilities in major centres," said Mr. Parr. He added: "Normally, strategic players [like Station Casinos and Harrah's] would compete heavily for the opportunity to get these restricted licences, but many of the strategics are struggling with over leveraged balance sheets. They are in financial difficulty, not because they have bad businesses, but because they were bought at high prices, with high leverage, before the recession so today with lower earnings they can't access capital to compete." …http://www.crainsnewyork.com/article/20100131/SUB/301319985 (http://www.crainsnewyork.com/article/20100131/SUB/301319985)
AEG parlays local connection into winning Aqueduct bid
By Daniel Massey and Amanda Fung January 31, 2010AQUEDUCT ENTERTAINMENT GROUP rode a keen understanding of local politics to victory in the drawn-out battle to run a slot parlor at Aqueduct Racetrack, which concluded Friday.

Insiders say the state's decision to go with AEG, which includes the Rev. Floyd Flake's Empowerment Development Corp., had as much to do with the dynamics of southeast Queens politics as it did with the particulars of the bid.

“It's fair to say that having community support in southeast Queens turned out to be a very important component here,” a Democratic insider says.

AEG was well-positioned in the neighborhood from the start. Mr. Flake was a congressman in the area for 11 years, and his Greater Allen A.M.E. Cathedral of New York is a must-stop on any campaign trail. His protégé Malcolm Smith, who is temporary president of the Senate, was widely believed to favor AEG.

The group's consultant, Cordo & Co., knew how important it was to win over the community and knew how to do it, the insider says.

“There was a feeling of understanding from AEG,” says Assemblywoman Audrey Pfeffer. “There was a feeling of trust.” …http://www.nypost.com/p/sports/horse_racing/practice_is_perfect_for_rachel_JcTLRjELJp5AKdQtQZn dZP (http://www.nypost.com/p/sports/horse_racing/practice_is_perfect_for_rachel_JcTLRjELJp5AKdQtQZn dZP)
Through the Binocs
By ED FOUNTAINE February 1, 2010… Pressbox skeptics, who've seen umpteen deadlines come and go for VLTs at Aqueduct since 2001, are saying that AEG (Aqueduct Entertainment Group), named by Gov. Paterson to build and operate the Big A racino, really stands for "Ain't Ever Gonnahappen." …

Indulto

02-03-2010, 03:34 PM

http://www.nypost.com/p/news/local/bettor_wait_minute_lHnFr3KBwj6wseJkbc6clJ (http://www.nypost.com/p/news/local/bettor_wait_minute_lHnFr3KBwj6wseJkbc6clJ)
Bettor wait a minute
GOPer tries to halt gov's 'sweetheart' slots deal
By FREDRIC U. DICKER in Albany and CARL CAMPANILE in NY February 3, 2010Senate Republican leader Dean Skelos yesterday moved to halt the award of a contract to build a slot-machine casino at Aqueduct race track -- suggesting Gov. Paterson's selection of a Queens-based business consortium reeked of favoritism and election-year politics.

Skelos demanded Senate hearings into the governor's decision to award the Aqueduct "racino" contract to Aqueduct Entertainment Group -- whose partners include powerhouse Queens minister and former Rep. Floyd Flake.

"This is probably the largest faith-based initiative I've ever seen in terms of funding to a group," said Skelos (R-Nassau), only half in jest.

… "There potentially could be a conflict of interest," Skelos told reporters in the state Capitol. "The discussions right now have all been behind closed doors. It wasn't vetted in a public way."

Skelos questioned whether AEG had the resources or experience to run a gambling facility.

"Let's make it a success rather than a temporary thing to either employ people or solve some political needs that may exist out there," Skelos said, referring to Paterson.

… For his part, Paterson denied any sweetheart deal in his selection of AEG.

"I don't think Reverend Flake's involvement with them had anything to do with it," Paterson said.

"There was a deadlock. I myself did not have a preference. Time had long since worn out and I was trying to break the deadlock and that was the best thing that I could do." …http://www.nytimes.com/2010/02/03/nyregion/03aqueduct.html (http://www.nytimes.com/2010/02/03/nyregion/03aqueduct.html)
After Aqueduct Deal, Governor and Pastor Talk Politics
By DANNY HAKIM February 2, 2010 … Three days after awarding a lucrative state contract to a company connected to the Rev. Floyd H. Flake, one of New York’s most influential black pastors, Gov. David A. Paterson summoned Mr. Flake to his Harlem office Monday morning and sounded him

… He added: “It was not really some discussion of which way I might be leaning, as opposed to whether, if he runs, where I might be. But there was no real discussion about whether I would endorse him. I made it clear that I was not ready to make a decision of who I might support until there was a field established.”

... Though negotiations over the casino had been stalled for several months, Mr. Paterson said Mr. Flake’s role did not influence his selection of a bidder. “I don’t think Reverend Flake’s involvement with them had anything to do with it,” he told reporters on Tuesday.

… The effort to build a casino at the Aqueduct racetrack has been a tortuous eight-year-long process, and critics have portrayed the final round of negotiations as Albany at its worst, with no formal process and scant disclosure.

“The problem is that the process was flawed from its inception,” Assemblyman J. Gary Pretlow, chairman of the Committee on Racing and Wagering, said in an interview last year.

In fact, the Aqueduct Entertainment Group received poor ratings in a ranking of the bidders compiled by the state’s Lottery Division, according to several people with knowledge of the process. The Lottery Division refused to release the document or make its director, Gordon Medenica, available for comment.

... Susan Lerner, executive director of Common Cause New York, a government watchdog group, said the meeting between Mr. Paterson and Mr. Flake “raises a red flag.”

“What’s amazing to me as an observer of what goes on is the blatancy of it,” she said.

Despite the statement by the governor’s spokeswoman that an endorsement had not come up, Mr. Flake said that he and the governor agreed that because of the Aqueduct deal, “it would probably be more difficult to make the endorsement.” And, he added, “we did discuss how that might look to other people.”http://www.bloodhorse.com/horse-racing/articles/55172/ny-horse-industry-testifies-at-senate-hearing (http://www.bloodhorse.com/horse-racing/articles/55172/ny-horse-industry-testifies-at-senate-hearing)
NY Horse Industry Testifies at Senate Hearing
By Blood-Horse Staff February 3, 2010… Rick Violette, president of the New York Thoroughbred Horsemen’s Association:

… “But even more important than that is the billions—and that’s billion with a ‘B’—bet on racing in New York. It is bet on New York racing because it is the best in the country. Period. The majority of horseplayers now watch racing via satellite TV, and they make their wagers on the Internet. They are no longer limited to betting on the local product. They shop for the highest quality, and they find that in New York.

“There are more grade I races in the state than anywhere else, drawing the finest and fastest Thoroughbreds from across the country and around the world. There’s good reason why 18 of the last 20 champions crowned Horse of the Year raced in New York. …

… “Last year, there was $14.3 billion bet on Thoroughbred racing in America. Less than 5% of the 50,000-plus races in North America in 2009 were held in New York—yet more than 18% of those wagers ($2.2 billion)—was bet on racing in New York. You don’t have to be a racing expert to know that the big players focus their attention—and their money—on New York because we offer a superior product, and you don’t have to be a mathematician to understand the importance of that revenue to the state’s economy.

“But that revenue could disappear if New York racing isn’t allowed to thrive. The best horses are here because the best purses are here. If the purses decline, the horses will go elsewhere. It’s that simple.

“… 90% of horse owners lose money every year. Revenue has already been hit by the recession, and now (New York City Off-Track Betting Corp.) has proposed a plan that will cut purse funds by another 15%. The purse money available would drop to what it was nearly 25 years ago. …

… “This is a highly mobile business, and the people paying the bills aren’t necessarily the wealthy owners of years ago. Gone are the Vanderbilts and the Mellons, replaced in large part by hard-working people who have decided to take their discretionary income and buy a horse or two. They can’t afford to participate in an industry where they have zero chance of economic survival. Horse owners aren’t looking to make a fortune, but, if revenue falls, they will take their stables and move them to states where services are less expensive and purses are higher. …

Jeffrey Cannizzo, executive director of the New York Thoroughbred Breeders:

… Finally, we come to the most recent crisis: the insolvency of NYCOTB, the last element in a perfect storm of adversity for breeders. Let me speak plainly and for the record. If NYCOTB does not continue its statutory payments to the industry, breeding and racing in New York will become a thing of the past

… “Call it a cliché if you must, but (the NYCOTB restructuring plan) would be the last nail in the coffin for the once-thriving vibrant breeding industry in the state of New York. VLTs would not offset the damage. And it doesn’t need to happen. The solutions to this crisis are in the hands of our elected leaders. An entire industry looks to you to ensure that Thoroughbreds do not become a distant memory in a state that has consistently dominated the track.”

Indulto

02-04-2010, 02:44 AM

http://www.drf.com/news/article/110550.html (http://www.drf.com/news/article/110550.html)
NYRA holds to claim that state owes it funds
By Matt Hegarty2/3/2010… Quoting from an agreement that gave NYRA the right to operate Aqueduct, Belmont, and Saratoga for 25 years in exchange for giving up the title to the three tracks, NYRA's chief executive, Charles Hayward, said that the state is obligated to negotiate in "good faith to provide new NYRA with payments necessary to support racing operations and satisfaction of new NYRA operating expenses" if slots had not been installed at Aqueduct by April 2009.

… The hearing on Wednesday was held by two senate committees: Investigations and Government Operations, as well as Racing, Gaming, and Wagering. According to a statement released by the committees, the hearing was held to "determine the accuracy of NYRA's declaration" that it would become insolvent by early summer and "investigate the basis for NYRA's plight."

Government officials have expressed skepticism of NYRA's claim of insolvency, citing a $105 million payment made by the state to allow NYRA to emerge from bankruptcy in 2008. In addition, state lawmakers are currently grappling with how to address a $8 billion budget deficit.

… According to Hayward's presentation, NYRA used $80.1 million of the $105 million payment to pay off creditors, and the rest, $24.9 million, went into the association's operating accounts. In the past, Hayward has said that the association's financial problems are grounded solely in the association's use of projected revenue from slot machines for its 2010 budget.

… Gambling analysts expect the casino to gross at least $500 million a year, meaning NYRA and its horsemen will likely receive $35 million in subsidies from the casino's operations.

According to financial statements provided by NYRA, the association had negative cash flow of $15.5 million in 2009, and it projects a negative cash flow of $24.3 million in 2010. By the end of 2010, the association will have a negative cash balance of $7.8 million, according to the documents.

… Sen. Eric Adams, the chairman of the Racing, Gaming, and Wagering Committee, seemed amenable to the industry's concerns at the close of two early panels featuring racing officials, and he said that he planned to hold other "roundtable" meetings to determine how government could help racing turnaround its fortunes.

"If we're doing something that is preventing the industry form moving forward, we have to get out of the way," Adams said.http://www.nydailynews.com/blogs/dailypolitics/2010/02/silver-questions-patersons-num.html#ixzz0eVYPySMI (http://www.nydailynews.com/blogs/dailypolitics/2010/02/silver-questions-patersons-num.html#ixzz0eVYPySMI)
Silver Digs In (Updated)
By Elizabeth Benjamin… State Budget Director Robert Megna told reporters earlier today that some of $750 million hole could be filled by a larger up-front payment from Aqueduct Entertainment Group, which Paterson has selected to receive a the racino contract.

Silver sent a letter to Paterson today (http://www.scribd.com/doc/26325155/Letter-to-Gov-Re-AEG) reiterating that he will not sign off on AEG unless four "non-negotiable" conditions are met, including payment of a $300 million up-front licensing fee to the state by March 1.

The choice of AEG has come under fire from Senate Minority Leader Dean Skelos and others, in part due the group's connection to the Rev. Floyd Flake, a former Queens congressman who is close to both Paterson and Senate President Malcolm Smith.

Skelos today called for public hearings to "closely examine" all the bids submitted for the Aqueduct racino.

UPDATE: Senate Democratic Conference Leader John Sampson said in a statement that he and his members "share the concerns pf Speaker Silver that the Governor needs to provide reasonable and responsible revenue estimates upon which we will base our collective decisions.”

The governor said he had "no idea" why Silver had reiterated his conditions in a letter today, adding: "Those are the conditions that we set on Friday...I wouldn’t think that they would be re-negotiated because they’re the conditions that we all agreed to.”

Indulto

02-05-2010, 09:23 PM

http://www.drf.com/news/article/110619.html (http://www.drf.com/news/article/110619.html)
Empire State of mind is a head-hurting one
By Steven Crist 2/5/2010… After a bitter five-year battle for the franchise and nearly a decade of state and federal investigations regarding NYRA, the franchise renewal seemed to indicate that racing in New York had finally turned a corner.

… Two years later, New York racing is in worse shape than it was during the darkest days of the 2000's. NYRA is running out of money and could be broke by this summer; its racing has never been thinner or cheaper; owners are getting out of the game and there are 500 empty stalls at Belmont; New York City OTB is in bankruptcy and threatening to shut down March 31; and the racino has yet to be built.

… When NYRA went public with its cash-flow problems, it may have made a tactical error by mentioning that in a worst-case scenario, it could be broke before putting on the Belmont Stakes. …

… "It's the same old NYRA in new sheep's clothing, trying to shortchange the taxpayers again," said Thomas DiNapoli, the new state comptroller, who clearly has studied the time-honored New York playbook for advancing your political career by accusing NYRA of criminal misdeeds without a shred of evidence.

… The franchise agreement specifically and unambiguously required the state to provide more funding if the racino was not operating by last March, an obligation that the state is now stalling and challenging.

… So there's not going to be any slots money any time soon, nor will OTB be providing any help. New York City OTB, the nation's largest bet-taker, has said it will close down March 31 unless the state approves a "reorganization" plan that includes reducing its legislated payments to tracks and purses by over 60 percent, from $78 million to $28 million annually. NYRA purses would drop by at least 15 percent from their current stagnant level.

… "We've put every contingency in place to ensure that we'll get to Saratoga," said Charles Hayward, NYRA's president. "But something needs to happen." …http://www.saratogian.com/articles/2010/02/04/news/doc4b6a349cd56df613710935.txt (http://www.saratogian.com/articles/2010/02/04/news/doc4b6a349cd56df613710935.txt)
Officials list racing fixes at state Senate hearing
By PAUL POST February 4, 2010… New York racing paid $112 million to the government in 2007 — nearly 25 percent of every dollar wagered — compared to the $45 million California racing pays its government, he said.

"That’s a staggering amount of money," he said. "This is way out of line with other major racing states. New York racing and your horse players are crippled by your tax system."

… Reducing the excise tax 1 percent would give NYRA the money it needs to make improvements at Saratoga Race Course, Belmont Park and Aqueduct, he said.

… Waldrop said NYRA should be put in charge of the state’s Off Track Betting system. NYRA hosts the races and OTB distributes the product. But they compete for bettors and have separate tote contracts, account wagering platforms and marketing programs.

Waldrop described this as an "industry worst practice … toxic to racing."

"No state has copied the New York model since it was instituted in the 1970s," he said. "New York is the only state where such direct competition for patrons exists. Put the producer of the product — NYRA — in control."

He also urged state leaders to follow through and get Aqueduct’s racino up and running as quickly as possible. …http://www.nydailynews.com/opinions/2010/02/04/2010-02-04_bad_smell_at_aqueduct.html (http://www.nydailynews.com/opinions/2010/02/04/2010-02-04_bad_smell_at_aqueduct.html)
Bad smell at Aqueduct: State's racetrack deal stinks worse than the stables
Editorial February 4th 2010… With hundreds of millions of dollars at stake both for the public and the firm that won the franchise, Paterson, Silver and Sampson solicited proposals from would-be gaming interests. Six submitted credible bids.

Since then, outrageously, the trio has:

· Refused to let the public see any details of the proposals - how much money each bidder put on the table, what skeletons they had in their closets or how their building designs stacked up.

· Repeatedly changed bidding rules in the middle of the game, demanding increasingly fat upfront payments to plug holes in the state budget.

· Fomented an orgy of campaign donations and spending by politically connected lobbyists.

· Generally conducted themselves so badly that developer Steve Wynn (http://www.nydailynews.com/topics/Steve+Wynn) - Mr. Vegas himself - walked away in disgust.

… That and the company's inside connections to Sampson and Senate President Malcolm Smith (http://www.nydailynews.com/topics/Malcolm+Smith) strongly suggested it was rigged from the get-go.

… Even yesterday, the governor's office admitted that the Lottery Division had given low marks to AEG early on. But no one knows exactly why, because it won't make those documents public.

This doesn't even come close to the standards of competitive bidding and good government. The public can have no faith that this was a real effort, on the merits, to identify the best outfit to install and operate 4,500 video slots at Aqueduct.

Which, by the way, the state shouldn't be doing in the first place.

It shouldn't be immersing itself even deeper in the business of encouraging its citizens to gamble.

It shouldn't be diverting a big chunk of the proceeds, supposedly earmarked for education, to prop up a dying horse-racing industry.

… This is a scandal wrapped around an outrage. ...http://www.bloodhorse.com/horse-racing/articles/55221/paterson-selects-diamond-to-oversee-ny-racing?source=rss
Paterson Selects Diamond to Oversee NY Racing
By Tom Precious
February 5, 2010… Charles Diamond, who worked for two decades with a Democratic member of the U.S. House, is set to go before a Senate racing committee panel next week for consideration before a full chamber vote to the state Racing and Wagering Board.

Diamond, who had been a director at the Cable Telecommunications Association of New York, a lobby group in Albany, would take over the seat held since 2006 by John Simoni, an Albany-area businessman and former Standardbred horse owner.

Diamond, 56, is being nominated by Paterson at the recommendation of former U.S. Rep. Mike McNulty. Diamond served as the chief advisor to the congressman from 1989 until McNulty’s retirement in early 2009.

… The racing board oversees virtually every aspect of the state’s racing industry, as well as off-track betting corporations, Indian casinos and bingo parlors. If confirmed to the board slot that he would hold until 2016, Diamond would make $101,600 annually.http://www.thoroughbredtimes.com/national-news/2010/February/05/NYRA-says-it-needs-30-million-from-state-to-survive.aspx (http://www.thoroughbredtimes.com/national-news/2010/February/05/NYRA-says-it-needs-30-million-from-state-to-survive.aspx)
NYRA says it needs $30-million from state to survive
by Paul Post February 05, 2010… Because of ongoing operations, unavoidable capital improvements, and declining revenues, NYRA started this year with $16.4-million, but expects to spend $24-million, leaving it about $8-million in the hole.

… “If we don’t have the money in the bank to make payroll, we’re not going to operate,” he said.

Bankrupt New York City Off Track Betting Corp. owes NYRA $15-million.

“We’ll certainly be able to run the Belmont Stakes as long as we get payments from New York City OTB,” Hayward said.

A federal judge is expected to decide on February 22 whether or not to approve New York City OTB’s reorganization plan. NYRA criticized the proposal, saying it would reduce payments to racetracks and breeders. Several harness track owners support OTB’s plan, however.

Absent money from OTB, the state would have to step up to keep NYRA going, Hayward said.

… Also, because of a legal technicality requiring legislative change, NYRA is not allowed to show some its own races on its own Internet platform, Hayward said.

“We’re probably exporting wagering dollars out of the state,” he said.

He also called for a restructuring of NYRA’s relationship with Off Track Betting.http://leftatthegate.blogspot.com/2010/02/no-reason-for-delay.html (http://leftatthegate.blogspot.com/2010/02/no-reason-for-delay.html)
Thursday, February 04, 2010
No Reason For Delay… as not only a horseplayer, but a taxpayer in this state who is directly affected by proposed cuts and fee increases deemed necessary to close the budget, damn right I have a right to know why the governor and the Senate leaders were willing to leave $101 million on the table! And to know just what about this second-rate casino operator was so compelling and important so as to bypass more experienced companies?? Indeed, the Times was certainly not the first to report that AEG received low grades from the Lottery!

As far as Sheldon Silver goes, I certainly may be wrong and naive here, but personally, I don't see where he has any personal stake or preference at this point. He took his shot last year for Delaware North, the client of his former close aide Patricia Lynch; and because they blew their shot (and due to other considerations (http://www.nydailynews.com/news/2009/05/01/2009-05-01_attorney_general_andrew_cuomo_subpoenas_contrac ts_won_by_clients_of_firm_tied_to.html)), I personally don't believe he'd be willing to stick his neck out for them again now. In this case, I think that the Speaker merely wants the state to receive everything they would have from the highest bidder. I believe he's absolutely right to make the demands that he has, and to insist that they are not negotiable.

Now, on the other hand, I agree with the sentiments expressed about Senator Skelos' demand for hearings. He and his obstructionist conference have done absolutely nothing towards governance in any area since they were booted to minority status. If SL Green won, he'd call for hearings on the Seminoles' behavior in Florida, and the company's connections to Bill Lynch. If Penn National won, he'd call for hearings as to why an outsider company with no connections to New York was awarded the deal. So, please. That's just f--king retar.... (http://blogs.abcnews.com/politicalpunch/2010/02/rahm-apologizes-for-privately-calling-liberal-activists-retarded.html) stupid.

The fact is that, as shady as this deal may be, and as dumb as the governor was to rush off to meet Floyd Flake the very next business morning after it was announced, there's no reason at all for any delay. AEG said they would meet the Speaker's terms. So? Sign a deal based on the stated terms, throw out any shady characters (Karl O'Farrell??? (http://www.nydailynews.com/news/2010/02/04/2010-02-04_horsebleep_shelly_slams_gov.html)), crank up the bulldozers, and show us the goddamn money. Now.

Indulto

02-08-2010, 03:06 AM

http://www.nytimes.com/2010/02/06/opinion/06sat2.html?scp=3&sq=flake&st=cse (http://www.nytimes.com/2010/02/06/opinion/06sat2.html?scp=3&sq=flake&st=cse)
Looks Sleazy to Us
Editorial February 5, 2010For years now, New York State has been trying to upgrade the facilities at the deteriorating Aqueduct raceway in Queens. Then last month, Gov. David Paterson suddenly handed the lucrative contract for video lottery terminals to a company called Aqueduct Entertainment Group. The company has promised jobs, a $300 million bonus for the state and “a casino concept that celebrates New York.”

We don’t see a lot to celebrate. Indeed, this contract seems designed primarily to bolster Governor Paterson’s political fortunes — and enrich at least one important friend. …

… The Aqueduct deal begs to be investigated. Mr. Cuomo; the Commission on Public Integrity; the state’s inspector general, Joseph Fisch; the comptroller, Thomas DiNapoli — at least one of them should be on the case.http://www.nypost.com/p/news/local/wake_up_new_york_aCFS5eI6LC9j7hWGrqreFP (http://www.nypost.com/p/news/local/wake_up_new_york_aCFS5eI6LC9j7hWGrqreFP)
Wake up, New York!
By Michael Goodwin February 7, 2010Attention, New Yorkers: This is an emergency. Your government is collapsing.

… It begins with facing the truth about Gov. Paterson.

Any hope he could do the job has been dashed. His bizarre behavior of recent weeks is both inexcusable and intolerable.

… The final straw is his pathetic squirming over the contract to install and manage video slots at Aqueduct Racetrack. Suspicion that the outcome was rigged to favor a group that included the Rev. Floyd Flake, a former congressman from Queens, is taking on an air of certainty.

The Post reports the initial vetting process rejected the Flake bid. Losing companies with more experience offered more money, yet got turned down in a process where the rules were never clear. …

… Like the rules, Paterson's response has shifted by the day and sometimes by the hour. First he said he intervened to break a deadlock. Then he said he favored one of the losing companies. Then he said the winner was the unanimous choice of himself and legislative leaders.

Meanwhile, he met with Flake to talk about his support in the campaign. That makes the contract smell to high heaven.

Enough. …http://www.nydailynews.com/ny_local/2010/02/05/2010-02-05_its_like_state_leaders_were_making_the_process_ up_as_they_went_along_in_picking_.html (http://www.nydailynews.com/ny_local/2010/02/05/2010-02-05_its_like_state_leaders_were_making_the_process_ up_as_they_went_along_in_picking_.html)
Aqueduct Raceway racino bidders who lost out to AEG slam Gov. Paterson over shady slots deals
BY Kenneth Lovett February 5th 2010... Albany's twisted and shady dealings were laid bare Thursday night as the scandal surrounding the bidding to run the Aqueduct racino mushroomed.

Furious bidders who lost out to politically connected Aqueduct Entertainment Group told how a rudderless and chaotic selection system made a mockery of the course.

… the whole deal was screwed up from the moment bidders entered the starting gate.

When Paterson's office first solicited bids last spring, six interested groups responded. Unlike many state contracts, the bids were not binding - and the guv's team kept demanding they be retooled.

At least twice, … , Paterson's counsel asked each group for their "best and last offers."

"The first time, they said specifically make your best offer [because] once they're in, we're going to pick from these and there will be no more changes."

The bidders complied, but then, "without making a formal announcement, they again extemporaneously began accepting changes from bidders across the board."

… All the while, Paterson ignored recommendations from some of his top aides, sources said, and appeared to be keeping his own counsel. They said the governor was lobbied directly by some bidders - a charge Paterson aides denied.

… Some on the losing end demanded Paterson have the Lottery Division, which vetted the applications, release the bid documents.

The Lottery has refused - and has also kept hidden an analysis of the bidders. Sources said AEG wasn't even ranked among the top three.

The Lottery has refused - and has also kept hidden an analysis of the bidders. Sources said AEG wasn't even ranked among the top three. …http://www.nydailynews.com/ny_local/2010/02/06/2010-02-06_govs_lawyer_admits_casino_pick_political.html
Gov. Paterson's lawyer admits Aqueduct casino pick is a 'political process'
BY Kenneth LovettFebruary 6th 2010... Gov. Paterson's top lawyer conceded Friday that politics was a key factor in picking the winning bidder for an Aqueduct "racino."

Peter Kiernan's stunning revelation came as Paterson hustled to cast the controversial selection of Aqueduct Entertainment Group as squeaky clean, insisting the losers who told of secretive and shady dealings were voicing sour grapes.

… Kiernan, the gov's chief counsel, said the weeding of bidders was more about political reality.

"It's not a typical [bidding] process," Kiernan told the Daily News. "It is not governed by procurement law. It is a political process because you have the three political leaders that have to make the decision."

In the end, the three leaders - Paterson, Senate President Malcolm Smith and Assembly Speaker Sheldon Speaker - agreed on AEG, which has ties to an influential former Queens pol, the Rev. Floyd Flake

… Asked if the leaders as a group factored in specific technical and financial criteria in selecting the winner, Kiernan stunningly admitted, "I don't believe so.

… Kiernan said Albany is concerned AEG does not have the required $300 million in upfront payments that other bidders had on hand. The group will have 30 days to get the money.

Now, after one losing bidder said the whole deal "smacked of favoritism" toward AEG, several gaming companies and good government groups demanded an independent review of the selection system. …http://www.nydailynews.com/opinions/2010/02/07/2010-02-07_twoarmed_bandits.html
Two-armed bandits: Daily News demands sunlight on shady Aqueduct dealOPINION 02/07/2010The stench of Albany's plan to put slot machines at Aqueduct Racetrack grows stronger as Gov. Paterson and the Legislature stonewall scrutiny of the multibillion-dollar contract.
… The deal now needs the approval of Attorney General Andrew Cuomo and Controller Tom DiNapoli Based on the evidence so far, both men must stand ready to kill it.

Meanwhile, Paterson must comply immediately with a Daily News Freedom of Information demand for access to documents relevant to the bizarre, shadowy bidding process won by AEG.

The state's FOI expert, Robert Freeman, says we're entitled to see all the bids and the "rating sheets" that officials used to score and rank each bidder. He said the state is entitled to withhold only trade secrets or specifically privileged data.

New Yorkers especially need to see how much money the competing bidders put on the table. We also need to understand how Paterson, Silver and Sampson justify allowing AEG to match the high bid by adding $100 million to its offering at the last minute.

… It is highly doubtful such basic documentation exists - making it anyone's guess why Paterson, Silver and Sampson came down where they did.

… Was there a good reason to reject Hard Rock, a gambling brand name known worldwide, in favor of a company whose chief claim to fame is a casino in Niagara Falls, Ontario?

No one outside the back room can possibly say. The only ones talking are the rejected bidders, who contend that the process was tailored for AEG's benefit because the company is aligned with Floyd Flake, an influential former congressman and Queens minister.

… If Paterson, Silver and Sampson have evidence that this is anything but a rigged deal, let them turn it over to the public. Now.

Indulto

02-09-2010, 06:26 AM

http://www.horseraceinsider.com/blog.php/Zasts-TrackWords/comments/2010-02-08as-good-as-it-gets-gets-you-nowhere/#comments (http://www.horseraceinsider.com/blog.php/Zasts-TrackWords/comments/2010-02-08as-good-as-it-gets-gets-you-nowhere/#comments)
As Good As It Gets, Gets You Nowhere
By Vic Zast February 08, 2010… The winning AEG team has ties to a Mercedes-driving clergyman from Queens, NY, the borough in which “Aqueduct Raceway,” which is how both papers referred to the racetrack in numerous articles, resides. Rev. Floyd Flake’s Darman Group joins the Navigante Group, led by Larry J. Woolf, former Chairman, CEO and President of MGM Grand Hotels in Las Vegas, and a bevy of local construction companies. There are no people in horse racing involved.

… horse racing in the state accounted for $2.2 billion of the national handle or 18 percent of all money wagered on the sport in the United States, a figure that is disproportionate by a factor of 350 percent to the percentage of races New York holds when compared to the whole. Violette furthered explained that the horsemen’s cut of this astonishing amount wasn’t enough to enable 90 percent of horse owners to make ends meet. In other words, he said horse racing in New York is as good as it gets anywhere while saying that “as good as it gets” in New York gets you nowhere. Consequently, do you wonder where all the money goes to leave horsemen in such a predicament or, for that matter, why NYRA can’t operate profitably despite its success?

Well, the sport’s various interests maneuvered within a faulty legislative structure to grow the State’s horse racing industry to a size that is simply unaffordable. The entire horse racing industry is dealing with reduced revenues, a shortage of horses and increased competition in the gambling sector. But all other jurisdictions serve as manufacturer and retailer of their products and NYRA does not. Moreover, few people involved in the operations of racetracks have been promised so much and granted so little by governments required by the people to serve them.

… Begin with the understanding that New York State is not about to reduce taxes during its current economic crisis. As a matter of fact, it was the State’s need for more revenue that prompted the long-awaited decision. In perspective, the $112 million is just half of the revenue from the VLT casino at Yonkers, a business that generates slightly less than what’s projected for the new Aqueduct parlor.

Furthermore, a more pressing issue now is what’s to be done with off-track betting including the bankrupt NYCOTB operation …

… Toward that end, NYRA has proactively responded. The franchise has prepared a proposal to put itself on a self-sustaining basis that makes use of some current State subsidies consistent with the size it has grown to in expectation of legislation and offered to organize off-sight betting activity under its supervision. Reconstruction of the operating model is what should have taken place three years ago when the NYRA franchise was put up for grabs. Instead, there was talk only.

New York’s method of conducting the sport since the day it was put into practice 40 years ago is a dysfunctional amalgamation steeped in waste and corruption. There are flaws in the State’s archaic approach that won’t accommodate crisis, and it appears crisis is what has befallen the industry now. The competition for bettors is suicidal; the expenditures for similar functions like tote systems, account wagering platforms and marketing are wastefully redundant. …http://blog.timesunion.com/capitol/archives/22330/aqueduct-bidder-aeg-cleans-up-its-team-again/ (http://blog.timesunion.com/capitol/archives/22330/aqueduct-bidder-aeg-cleans-up-its-team-again/)
Aqueduct bidder AEG cleans up its team again
by James M. Odato February 8, 2010 … Aqueduct Entertainment Group has cut ties with businessman Darryl Greene, AEG officials said this morning, accepting his resignation amid heightened attention about his past criminal conviction.

… Greene pleaded guilty to a charge in 1999 after authorities claimed he was responsible for misuse of $500,000 in public funds. He has more recently been painted as a tax scofflaw in reports by the New York Daily News.

… AEG’s core team remains the Navegante Group, led by former MGM CEO Larry Woolf, Levine Builders, Turner Construction and the Rev. Floyd Flake. Greene has led the Darman Group, a minority business developer with which Senate President Malcolm Smith was once associated. Smith is also close to Flake.

AEG had previously cut ties with at least one other team associate and clarified the role of a person who helped finance AEG. The pair were deemed unacceptable by the Division of the Lottery during its vetting of bidders seeking the potentially lucrative Aqueduct contract. …http://www.nydailynews.com/ny_local/2010/02/08/2010-02-08_above_the_board_rev_defends_aqueduct_deal_as_fa ir__square_before_his_flock.html (http://www.nydailynews.com/ny_local/2010/02/08/2010-02-08_above_the_board_rev_defends_aqueduct_deal_as_fa ir__square_before_his_flock.html)
Rev. Floyd Flake defends Aqueduct racino pick as fair, praises project as job-creating godsend
BY Jill Colvin and Erin Durkin February 8th 2010The Rev. Floyd Flake took to his Queens pulpit Sunday to defend the state's controversial pick to run the Aqueduct racino slots - a company in which he has a stake.

"I know you must have read a lot about this in the tabloids," Flake told the congregation, worshipers said.

Flake, an influential former congressman, owns a .06% stake in Aqueduct Entertainment Group, a politically connected company that won the lucrative deal to run the slots.

… Flake insisted the company beat out other bidders to win the racino deal fair and square - and he touted the project as a godsend that will bring much-needed jobs to the community.

… Flake declined to comment as he left church and drove off in a black Mercedes-Benz.

"Why would I talk to you?" he snapped at reporters.

Flake repeated his defense of the Aqueduct deal at three Sunday morning services, worshipers said. His remarks triggered applause. …

Spendabuck85

02-10-2010, 03:16 PM

Federal investigators want to know more about the background checks that were performed on the bidders pursuing the rights to run a racino at Aqueduct Race Track -- including the controversial winner in that competition, Aqueduct Entertainment Group.

Read more: http://www.timesunion.com/AspStories/story.asp?storyID=899215#ixzz0fAMKObOP

redshift1

02-10-2010, 05:58 PM

The selection of AEG seems wrong on so many levels, my guess is lawsuits will delay things for years, looks like Paterson is taking care his buddies.

Indulto

02-10-2010, 09:05 PM

http://www.bloodhorse.com/horse-racing/articles/55314/aqueduct-casino-selection-not-subpoena-target (http://www.bloodhorse.com/horse-racing/articles/55314/aqueduct-casino-selection-not-subpoena-target)
Aqueduct Casino Selection Not Subpoena Target
By Tom Precious February 10, 2010New York state officials insist subpoenas issued this week to the state lottery division do not pertain to the selection of an Aqueduct casino operator, but are about an unrelated matter that will not pose an obstacle the gambling project going forward.

Meanwhile, the head of the state lottery agency, which regulates casinos in the state, said it is still not certain that Aqueduct Entertainment Group will be able to meet all the conditions imposed by the state when it was awarded the Aqueduct casino deal.

“Well, given that one of the conditions is $300 million, no, I can’t be certain. I’m not sure anyone can be until we receive the money,’’ Gordon Medenica, the lottery boss, said of the $300-million up-front payment promised by AEG as part of its deal to get the contract to operate a 4,500-slot machine casino at Aqueduct.

The Paterson administration and AEG officials have insisted that four conditions imposed on the bidding group – at the demands of Assembly Speaker Sheldon Silver – will be met and that AEG can make the $300- million franchise payment to the state before the 2010 fiscal year ends March 31.

… The Lottery Division, in private meetings last year, raised serious concerns about AEG’s abilities to run the Aqueduct casino. “I think the information you are referring to is very old,’’ Medenica said. He said a pre-licensing vetting process ended with some AEG investors departing; he did not elaborate. He said questions about investors were “cleared up’’ by the time of the bid award.

Medenica said his confidence level in Las Vegas-based Navegante Group – the AEG casino operator – “is good and always has been.’’

… “Who gets licensed on the list of key employees (and) key investors at this point in time could easily change by the time the casino opens, and certainly at any point in the future as investor groups come in and out of the venture,’’ he said.

The lottery director said the state would not release the bids offered by the five different groups, saying the bidders had been promised by the government their financial information would not be made public.

Is AEG qualified to run the casino? “At the end of the day, yes,’’ he said. …http://sports.espn.go.com/sports/horse/news/story?id=4897720
Of Politics and Ponies
By Claire Novak February 8, 2010… NYRA also presented its' case at a Feb. 3 hearing before the senate committees on Investigations and Government Operations and Racing, Gaming, and Wagering, which the state arranged to "determine the accuracy of NYRA's declaration" and "investigate the basis for NYRA's plight."

"It's been a whirlwind," NYRA Vice President and Chief Operating Officer Hal Handel said Saturday. "I think the senate hearing went extremely well; we were able to articulate very well for them where the money went and where we stand regarding the state's obligation to us financially."

NYRA will meet Feb. 10 with the Oversight Board that was put in place in 2008 to supervise Thoroughbred racing in New York. Handel said NYRA has not met with the board in more than a year.

"We have a pretty detailed agenda of matters that we have to get before them," he said.

"And as far as the VLTs are concerned, time isn't anyone's friend in this thing. All of these kind of processes take time — memorandums of understanding take time, definitive agreements take time, so we're sort of weathering the perfect storm right now."

… In 1964, Republican Congressman Paul Fino addressed reporters for Time Magazine with criticism of overblown political involvement in the industry.

"Horse racing is no longer the sport of kings — it's the sport of Governors," he said.

Today in New York, that statement rings true.http://cs.bloodhorse.com/blogs/ntra-alex-waldrop-straight-up/archive/2010/02/09/new-york-racing-a-national-perspective.aspx (http://cs.bloodhorse.com/blogs/ntra-alex-waldrop-straight-up/archive/2010/02/09/new-york-racing-a-national-perspective.aspx)
New York Racing - A National Perspective
By Alex Waldrop09 Feb 2010 … The tax environment for New York racing is worse. In 2007, New York racing paid more than $112 million in excise taxes to state and local governments. That is 35% of ALL the revenue paid to ALL the governments in all 38 racing jurisdictions combined. New York racing's effective pari-mutuel excise tax rate is an eye-popping 3.89%. Assuming a blended New York state takeout rate of 20% (set by state law), this excise tax rate is the equivalent of a 19% sales tax on every dollar wagered on New York racing. It is even worse at New York State OTBs where they charge an additional 5% surcharge on winning bets. That puts the "sales tax" rate at nearly 25 cents on the dollar for OTB patrons.

What's worse if you are a bettor is that these excise taxes get passed along to you in the form of higher takeout-which depresses wagering on New York racing even further. At a time when racetracks need to be lowering takeout, New York racing and its horseplayers are crippled by a punishing state tax burden.

As if all of this wasn't enough, racing in New York must compete with the New York OTB system, the nation's largest off-track betting operation. This antiquated dichotomy pits producer against distributor and leads to an acrimonious atmosphere that is toxic to racing and to the way it is viewed by the larger public. New York is the only state where such direct competition for patrons exists. It is inefficient at best and generally siphons off much-needed revenues from racing (locally and nationally). It also leaves producers like NYRA unable to control the way its racing is presented in its local market. For this reason among others, the New York model is widely viewed as an industry "worst practice." It is no accident that no state has copied the New York model since it was instituted in the early 1970s.

… A recent report of the Task Force on the Future of Off-Track Betting in New York State recommends a variety of legislative changes, including changes that would effectively set prices for the simulcasting importers/exporters and the ADW providers operating in New York. This is an area that should be left alone. The horse industry looks to state government to strongly and efficiently regulate safety and integrity matters like pre-race examinations of horses and post race drug testing. When governments veer into economic regulation of our business, negative consequences for racing usually occur. NYRA and the state's horsemen are better situated than government to determine the optimal economic conditions for the industry. New York racing needs market-determined prices, not government imposed tariffs.

My recommendations for New York racing were the following:

-Lower excise tax rate on pari-mutuel wagering;

- Reorganize OTBs and tracks to minimize inefficiency and destructive competition and put the producers (horsemen and tracks) in control of distribution in-state;

-Move forward with the Aqueduct racino as soon as possible;

- Incentivize capital investment at the racetracks;

- Aggressively regulate safety and integrity; and

- Stop regulating racing's economics including takeout - that is not a proper role for government. …http://leftatthegate.blogspot.com/2010/02/target-du-jour.html (http://leftatthegate.blogspot.com/2010/02/target-du-jour.html)
Monday, February 08, 2010
Target Du Jour… In fact, I also saw today where Senator Malcolm Smith, who, just two months ago, told the NY Times (http://www.majorwager.com/forums/mess-hall/191179-8-years-after-gambling-agreement-aqueduct-still-awaits-decision-albany.html) "I have no interest in working in that business," (a quote which has apparently since been scrubbed from the article online (http://www.nytimes.com/2009/11/24/nyregion/24aqueduct.html)), on Monday refused to rule out a job at the Big A with AEG.

“No one ever rules out anything. If someone were to say to me, ‘will you rule out running for president, Malcolm,’ I wouldn’t rule that out." [Capitol Confidential (http://blog.timesunion.com/capitol/archives/22342/22342/#more-22342)]

Nice going there Malcolm; smart move to attract even a small slice of the focus away from the embattled governor. Unless he was just trying to help his good buddy out. Does anyone want to take my bet that he ends up working there (http://nymag.com/daily/intel/2009/09/malcolm_smith_eyeing_cushy_aqu.html)? I didn't think so. (One of his pals (http://www.nydailynews.com/ny_local/2010/02/08/2010-02-08_controversial_figure_darryl_greene_steps_aside_ at_aqueduct_entertainment_group_t.html) won't be there anymore though.)

[UPDATE: AEG partner Jeffrey Levine says: "We can unequivocally state that Sen. Smith nor any government official involved in this process will ever be employed by Aqueduct Entertainment Group or any of its partners, investors or affiliates," Levine said. [Albany Times Union (http://www.timesunion.com/AspStories/story.asp?storyID=898547&category=STATE#ixzz0f2sMBraH)] …http://www.troyrecord.com/articles/2010/02/10/news/doc4b71f8efad882520606815.txt (http://www.troyrecord.com/articles/2010/02/10/news/doc4b71f8efad882520606815.txt)
State’s gridlock concerns breeders
By Paul Post February 10, 2010... Horsemen have lost faith in the state’s ability to get things done, which could spell disaster for the local economy, racing officials say.

Two years ago many owners and trainers were turned off by uncertainty over the New York Racing Association franchise. Now, charges of political cronyism threaten to hold up the Aqueduct Race Track gaming deal, and bankrupt New York City Off Track Betting is in a financial mess.

… The Saratoga Springs-based New York Breeding and Development Fund administers breeders’ awards. Normally, the first-, second- and third-place finishers get an either 20 or 10 percent matching award from the fund based on purse earnings. New York-sired horses get 20 percent and those not bred in New York the lesser amount. Last year, however, because the fund simply didn’t have enough money, second and third place breeders awards were slashed in half.

New York City OTB owes the fund more than $2 million. The economy is another reason for declining revenues, but racing leaders lay much of the blame squarely at the feet of state lawmakers who seem unable to tackle industry issues, or any other issues, for that matter.

"Our state is so slow at making adjustments," said William Wilmot, DVM, of Saratoga Springs, a breeding fund board member. "That paralysis is what’s affecting our state."

Simulcasting generates considerable revenue for purses, but not the breeding fund. So there isn’t enough money to make payments, he said. "It’s killing the fund," Wilmot said.

Cannizzo said he’s concerned racing will suffer the same fate as boxing.

"Two sports in New York are regulated," he said. "You saw where boxing has gone. Now you’re seeding where horse racing is going. It’s all because of mom and pop up top, our elected officials. It’s embarrassing to be from New York."

Indulto

02-12-2010, 04:54 AM

http://www.timesunion.com/AspStories/story.asp?storyID=900029&category=OPINION (http://www.timesunion.com/AspStories/story.asp?storyID=900029&category=OPINION)
Time for NYRA to show its cards
EDITORIAL February 12, 2010… we would settle for a little sunshine -- starting with how much an organization that keeps crying poverty is paying its executives.

That's a secret NYRA has been trying mightily to keep. The latest delay -- apparently to buy time to put information about the salaries in just the right context -- only underscores how much this organization still doesn't get it.

… New York paid for the privilege of granting NYRA a contract that other bidders would have given the state hundreds of millions of dollars -- in at least one case, close to $2 billion -- to get.

It's the same association that …

… sued to keep its budget secret, had to be subpoenaed by the state comptroller before it would hand over records for an audit and continues to tell the state budget division that its executive compensation is none of the public's business.

... If NYRA wants to keep feeding at the public trough, it's got to show it deserves to. That includes not abusing the public's trust by paying excessive salaries.

NYRA now says it will release the numbers, but needs time to do a study comparing its executive pay with that in other racing businesses. In other words, NYRA wants a chance to spin this as best it can.

The association's president, Charles Hayward, is already giving us a glimpse of that spin, saying that his salary, which he won't divulge just yet, is about $100,000 below the industry median.

Here's another kind of context: The Lottery Division's director, Gordon Medenica, oversees an operation that handles more than $18 billion a year in bets; NYRA's total is $2.5 billion. The division keeps tabs on 16,000 agents and eight video lottery terminal sites; NYRA runs three tracks. The Lottery sent more than $2.5 billion to the state in the 2008-09 fiscal year. NYRA? Less than $12 million. Mr. Medenica's salary: $164,440 a year. Mr. Hayward's? People familiar with NYRA say it's well over $400,000.

A free tip to NYRA: "Just Come Clean" is the favorite in this race; "Underpaid" is a sucker's bet. …http://www.timesunion.com/AspStories/story.asp?storyID=899478&category=STATE (http://www.timesunion.com/AspStories/story.asp?storyID=899478&category=STATE)
NYRA chief told to rein in costs
Pay for top executives remains an issue as oversight board meets
By JAMES M. ODATO February 11, 2010… "How do we get the fact that expenses are flat or going up, and revenues are declining every year?," Budget Division chief Robert Megna asked NYRA President Charles Hayward on Wednesday at a meeting of the NYRA Franchise Oversight Board -- its first session in 10 months.

Megna, who leads the oversight board, said the board and the state Comptroller's office have been asking for executive salary information for some time, without results. More than a year ago, former Budget Director Laura Anglin asked NYRA for details about its top pay. NYRA later sued Anglin and the Budget Division when she proposed releasing NYRA's 2009 budget after a Freedom of Information Law request from the Times Union.

"The issue of executive salaries keeps coming up. ... There's got to be a way for us to get this behind us," Megna (who is paid $178,000 a year) told Hayward. "It would add an enormous amount to the objectivity of the debate."

Hayward, who revealed executive salaries went up in 2008, promised to provide a study that places NYRA executive pay in a comparison to other racing businesses. "We'll get this information together," he said. "Give us a little bit of time."

... The talk comes as Hayward has been complaining NYRA is running out of cash. The bankrupt New York City Off Track Betting Corp. owes the association $15 million, Hayward said, and the failure to open an Aqueduct racino is denying NYRA possibly millions of dollars at the Queens track. …http://www.saratogian.com/articles/2010/02/11/news/doc4b73784d76f22026793280.txt (http://www.saratogian.com/articles/2010/02/11/news/doc4b73784d76f22026793280.txt)
Racing facing severe decline: Industry needs investment, regulation, consolidation
By PAUL POST February 11, 2010… While tackling such long-term issues, New York Racing Association is faced with an immediate cash crisis that could see it run out of money by June or July, right before the Saratoga meet.

To avoid such a disaster, the state needs to finalize its deal with Aqueduct Entertainment Group, the firm chosen to run Aqueduct Race Track’s racino that would give NYRA the funds needed to keep operating. The question is, will that happen?

"I don’t think anybody has any idea," said Bennett Liebman, an industry analyst and NYRA board member. "We’ve got no clue as to what will happen. No one seems to have an end game as to how this resolves itself."

… If the deal does fall apart for some reason, the state is obligated to give NYRA the money needed to keep racing. NYRA is already contemplating a variety of emergency contingencies such as temporary elimination of training at Aqueduct that costs about $300,000 per month.

By moving all training to Belmont Park permanently, NYRA could save millions. First, however, it would have to spend about $2 million for more stalls at Belmont, money it currently doesn’t have.

"We have a business that is really in a serious state of decline over a multi-year period," Medenica said, addressing Hayward. "How are you going to stem that decline?"

NYRA’s pari-mutuel tax is twice that of any other state, and some states have done away with such taxes, Hayward said. Also, under state law, NYRA is not allowed to videostream its races on its own Web site, depriving the firm of considerable revenue, he said.

… Hayward said NYRA could make $5 million annually by opening a new simulcast center at Aqueduct. But the project would cost $4 million, money that’s not currently available.

Also, he again called for consolidation of NYRA and Off-Track Betting to save money and avoid unnecessary duplication of services.http://www.thoroughbredtimes.com/national-news/2010/February/11/NYRA-could-end-training-at-Aqueduct-to-save-money.ASPX (http://www.thoroughbredtimes.com/national-news/2010/February/11/NYRA-could-end-training-at-Aqueduct-to-save-money.ASPX)
NYRA could end training at Aqueduct to save money
by Paul Post February 11, 2010… “Right now we’ve got 500 empty stalls at Belmont,” Hayward said. “Aqueduct would close at the end of April. Saratoga opens [for training] in the middle of April. Before the Saratoga meet, we usually only have 700 or 800 horses there. So we could accommodate some there, some at Belmont.”

Closing Aqueduct for training would be temporary until NYRA gets through its cash crisis and there are no plans for eliminating racing there, he said.

Some of racing’s more high-profile trainers such as Gary Contessa, Rick Dutrow Jr., and Rick Violette, president of the New York Thoroughbred Horsemen’s Association, train at Aqueduct.

“It would be a little bit of an imposition,” Hayward said. “This would hopefully be, at least for now, a one-time thing.”

However, Hayward said it would make sense to move all Downstate training to Belmont permanently. NYRA has 13 racing and training surfaces at Belmont, Aqueduct, and Saratoga, all of which cost money year-round to maintain.

Belmont has 2,000 stalls and Aqueduct 600. Moving Aqueduct’s horses to Belmont would cost $2-million for new barns.

“The return on investment is done in a year,” Hayward said. “Consolidation is really where the opportunity lies.” …http://www.yournabe.com/articles/2010/02/11/queens/queenslcwpnkp02112010.txt (http://www.yournabe.com/articles/2010/02/11/queens/queenslcwpnkp02112010.txt)
Finances threaten Belmont Stakes
By Howard Koplowitz February 11, 2010… Hayward said the Belmont Stakes could go on as scheduled, subject to receiving payments from city OTB.

“I’d love to give an unqualified, ‘yes,’” Duncker said, but he cautioned that running the Belmont Stakes — the third and final leg of the Triple Crown — is dependent on “things outside of our control.”

When asked if NYRA could get a short-term loan using future revenues from video lottery terminals to be installed at Aqueduct Race Track as collateral, Duncker said he did not think so.

Johnson then asked if NYRA had explored that option and Duncker said the corporation had not.

“It would seem to me that NYRA should try to do everything and anything ... to ensure the Belmont Stakes for 2010 happens,” Johnson said.

... NYRA’s budget assumes that New York City OTB will make payments on time. Last year OTB stiffed NYRA to the tune of $7.2 million, Hayward said.

Hayward said NYRA gets $4 million a month from New York City OTB.

“There’s no question if OTB goes out of business in the near term, we would have a significant economic impact,” he told the Senate hearing, which was also attended by Sen. Joseph Addabbo (D-Howard Beach).

NYRA is obligated to make a so-called franchise payment to the state every year as long as it is more than $2 million in the black. But NYRA has not given the state a franchise fee since it last turned a profit in 2003.

Sen. Eric Adams (D-Brooklyn), chairman of the Senate Committee on Racing, Gaming and Wagering, asked how NYRA can turn a profit.

... He said while NYRA accepts Internet wagers, no state law exists to allow NYRA races to be streamed live on the Internet, which he said would draw more customers.

Hayward said NYRA makes $10 on a [$100?] pari-mutuel bet at the corporation’s three tracks but only receives $1.25 each time someone places a [the same?] bet through OTB over the phone.

“I think racing in the state of New York can be profitable because of the quality of racing,” he said, but “not as currently structured.”

He said there are too many entities, including NYRA and OTB, that are competing for the same dollar.http://www.saratogian.com/articles/2010/02/10/sports/doc4b720c82296ee892110878.txt
NYRA in big trouble
By MICHAEL VEITCH February 10, 2010… When NYRA signed the new agreement, it surrendered its land claims to the three track properties, delivering to the state valuable acreage worth many times the cash settlement.

Anyway you slice it - and that includes Sen. Johnson's questionable insistence that the state owned the land all along - the agreement ended a dispute on terms favorable to the state.

Another unpleasant reality here is that the franchise requires the state to fund NYRA operations and the pension system, since it has failed in its implied obligations to have a VLT operation up and running by Mar. 31, 2009.

The pertinent sections of franchise law are very clear on this.

… It is critical that state leaders, in the next couple months, work on a solution.

Even if it is sustaining payments, a pari-mutuel tax break, or a resolution of the off-track betting problem, the solution will be incomplete until VLT’s are in operation.

If no structural changes are made, VLT revenue is likely to be enough to cover NYRA’s operating expenses and taxes, and also increase purses for owners and trainers.

If not, then the NYRA racing we know is going to suffer badly.

You may have noticed the association has yet to publish its stakes schedule for the last eight months of 2010.

… That is because the ability of NYRA to maintain its stakes program is in limbo amidst this financial uncertainty.

Belmont and Saratoga will race, but they might not look like the meetings to which we are accustomed.

So our state government - if we have one - has got to deal with its obligation to racing, even if most elected officials don’t care about it.

Sen. Adams … can help by closing the knowledge gap between racing leaders and political leaders.

… if state and racing leaders fail to get moving quickly, the consequences for New York racing are going to be awful.http://www.nypost.com/p/news/local/dave_botched_chance_to_clean_up_imvLHIcyHvUic15QWD xvwM (http://www.nypost.com/p/news/local/dave_botched_chance_to_clean_up_imvLHIcyHvUic15QWD xvwM)
Paterson botched chance to clean up Aqueduct bidding process
By BRENDAN SCOTT February 10, 2010… The debacle is the product of a scheme hatched by ex-Gov. Eliot Spitzer -- who resigned in scandal -- and former Senate Majority leader Joseph Bruno -- who was convicted of corruption -- in early 2008. Their mutual distrust was so great, they decided that any Aqueduct deal would need unanimous approval from Albany's "three men in a room."

The result put one of the biggest contracts in state history -- worth billions over its life -- outside of the laws designed to protect taxpayers from corrupt bid decisions. "It's a mess," said Blair Horner of NYPIRG, a public-interest group. "What you'd like to see is an open process where the award is granted to the best bidder in a combination of quality and cost. That process was essentially ignored."

Contrast that with the Lottery Division's selection of a vendor to run its $7.6 billion gaming system last year under the normal, competitive bidding process. The bids came in. They were public, and they were final. The state selected a vendor. No harm, no foul.

Paterson more than once bemoaned the arrangement. But that hardly lets him off the hook. As governor, he could have demanded a cleaner process after taking the reins from Spitzer.

Instead, Paterson galloped headlong into the deal-making and, in October 2008, pushed Buffalo-based Delaware North.

The governor missed another chance to sanitize things after Delaware North's bid fell apart. Rather than scrap the process and start anew, he launched an even sleazier round of horse-trading -- apparently making the final decision to push for AEG without telling top aides. …

Indulto

02-12-2010, 03:51 PM

http://www.saratogian.com/articles/2010/02/12/news/doc4b74bd13c0fc5750688105.txt (http://www.saratogian.com/articles/2010/02/12/news/doc4b74bd13c0fc5750688105.txt)
Official defends dual roles in NYRA, OTB
By PAUL POST February 12, 2010A businessman is serving simultaneously on two boards with potentially competing interests that affect Saratoga: one that monitors the New York Racing Association’s business operations and the other that oversees the bankrupt New York City Off Track Betting Corp.

In both instances, the man, Steve Newman, was appointed by Assembly Speaker Sheldon Silver, D-Manhattan.

… The Franchise Board, appointed by state leaders, reviews NYRA’s budget and weighs in on NYRA business decisions and capital improvement plans. Newman previously chaired the five-member panel and was appointed to both boards by Assembly Speaker Sheldon Silver, D-Manhattan.

"I’m not on the NYRA board," Newman said Thursday. "In both cases I’m representing the Assembly. If I ever feel there’s an issue that impacts the other organization, I recuse myself."

He said Wednesday’s Franchise Board meeting at the state Capitol was the first since he joined the OTB board early last year.

The issue of a potential conflict arose at the meeting when NYRA was outlining its fiscal troubles to the board. Among other things, NYRA President and CEO Charles Hayward called for a merging of NYRA and OTB services to save money. The Franchise Board took no action requiring a vote.

"We are not consulted on these appointments by the political leaders and we have not filed an objection to Mr. Newman serving on both boards," Hayward said Thursday in an interview with The Saratogian. "I could imagine that a situation could arise where there is a potential for a conflict and presume that it would be handled appropriately."

The state Commission on Public Integrity, which deals with conflict of interest issues, has not reviewed this circumstance. The commission has jurisdiction over the Franchise Board, but not over NYRA or OTB.

… Newman chaired the Franchise Board when NYRA was in the process of getting a new 25-year contract to run Saratoga Race Course, Belmont Park and Aqueduct.

… Wednesday’s meeting was the first since last May, despite a wide variety of problems confronting NYRA and the state’s thoroughbred industry. Megna’s office did not respond when asked why the board hasn’t met more frequently.

However, at Wednesday’s meeting he said, "We waited too long to have this meeting. We need to meet on a more timely basis." …http://www.drf.com/news/article/110742.html
N.Y. politician seeks Aqueduct slots review
By Matt Hegarty2/12/2010The controversy surrounding the selection of Aqueduct Entertainment Group to operate a casino at Aqueduct racetrack in New York City took a bizarre turn on Thursday when one of the three political leaders who made the selection called for the state's inspector general to investigate the process.

Assembly Speaker Sheldon Silver, a Democrat, made the request on Thursday, according to state officials. Along with Gov. David Paterson and Senate Democratic Conference Leader John Sampson, Silver made the selection of Aqueduct Entertainment Group to be the casino operator two weeks ago.

… Previously, the state had refused to release any documents regarding the bidders or the process by which a bidder would be selected, including the criteria that state leaders would use to evaluate the proposals.

… "In 2008, Speaker Silver - along with Gov. Spitzer and Senator Bruno - was one of the architects of the process by which a [casino] operator would be selected by the state, a process that grants equal statutory authority, responsibility and accountability to the Speaker, the Temporary President of the Senate, and the Governor," said the statement. "Since then, the speaker has been involved in the selection of two [casino] operators, including his full endorsement of AEG last month." …

PaceAdvantage

02-13-2010, 12:11 AM

This is such a prime example of how governments continually screw up projects that the private sector would have completed long, LONG ago...

Now they're going to bicker about SALARIES? Are you kidding me?

Is that the new thing? Complain about salaries, as if that will take the heat off the real assholes in this whole mess? (Hint, it ain't NYRA).

And for all those who are about to come back at me on this, I have two words for you:

JOE BRUNO

Yeah, there were those out there in PaceAdvantage land who were in that guy's corner during the first NYRA merry-go-round.

Where's ol' Joe now?

The way I see this mess now, the state isn't living up to its end of a very sweet deal. Who is going to hold them to task?

Indulto

02-21-2010, 08:43 PM

http://www.nydailynews.com/ny_local/2010/02/21/2010-02-21_nyra_honchos_want_state_to_pony_up_higher_salar ies.html (http://www.nydailynews.com/ny_local/2010/02/21/2010-02-21_nyra_honchos_want_state_to_pony_up_higher_salar ies.html)
NYRA honchos want state to pony up higher salaries
BY Tina Moore February 21st 2010… Charles Hayward, CEO of the New York Racing Association, makes $460,000 a year while COO Harold Handel (http://www.nydailynews.com/topics/Harold+Handel) pulls down $440,000, a letter from a NYRA official states.

The screed to the state Franchise Oversight Board says execs at NYRA, which runs Aqueduct, Saratoga and Belmont, are paid less than "comparable top competitors."

… The top seven NYRA execs make more than $250,000.

But Assemblyman Gary Pretlow (D-Westchester) - chairman of the Racing and Wagering Committee - blasted NYRA.

"With the condition that NYRA's in, I think that these salaries are all way too high," Pretlow said. "They're running an unprofitable business making exorbitant salaries." …Hayward is probably doing a better job than the politicians attacking him, but that still isn’t saying much.

http://www.bloodhorse.com/horse-racing/articles/55490/nyra-releases-executive-salaries (http://www.bloodhorse.com/horse-racing/articles/55490/nyra-releases-executive-salaries)
NYRA Releases Executive Salaries
By Tom Precious February 20, 2010… In a letter to the head of a government financial oversight board, NYRA chairman C. Steven Duncker defended the salary structure as lower than most racing corporations – and at levels that put NYRA “at a serious competitive disadvantage when competing to hire top racing executives.”

… In his letter to Megna, Duncker said NYRA – a not-for-profit corporation – sought to keep the salary information secret for competitive recruitment reasons. “It is for this reason, and this reason alone, that NYRA has been reluctant to release the enclosed salary information to the general public and by extension to our competitors,” Duncker wrote. “We are releasing this information to you now, however, because we recognize the political pressure you are under to make this information available to the press and to the public, regardless of the propriety of doing so given NYRA’s status as a private corporation.”

NYRA said its executives do not receive stock options or performance bonuses like some counterparts at publicly traded racing corporations. Also, in 2006 it froze its pension plan for employees.

… Other top NYRA salaries include $325,000 to chief financial officer Ellen McClain, $413,000 to senior vice president and general counsel Patrick Kehoe, $260,000 to chief information officer Tom Thill, $295,000 to chief administrative officer John Ryan, and $255,000 to David Smukler, senior vice president for human resources and labor relations.

… Duncker, in his letter to Megna, called executive recruitment “fierce” in the national racing industry. “The ability to pay nationally competitive compensation rates and the ability to retain a highly qualified management team is crucial for NYRA to maintain its national leadership role in the thoroughbred racing industry,” he wrote.

… Duncker said NYRA can attract executives willing to work for less than other racing corporations, but also does lose talent because of pay. He cited the departure a few years ago of Bill Nader, the second-in-command who saw his salary doubled, Duncker said, when he was hired away by the Hong Kong Jockey Club. …Was Nader making the $440K his replacement Handel is making? Could the reason he left be more that Hayward got the job he wanted and he had no future there?

Where is the fierce competition for Hayward’s skills and resume elsewhere?

What was Barry Schwartz paid?

http://www.poststar.com/news/local/article_22869c0c-1dab-11df-a565-001cc4c03286.html (http://www.poststar.com/news/local/article_22869c0c-1dab-11df-a565-001cc4c03286.html)
Holding their horses
DREW KERR February 19, 2010… A 2006 study commissioned by Saratoga County, the latest available, showed the economic impact racing has on Saratoga, Washington, Warren and six other surrounding counties.

Racing, researchers suggested, generated between $186 million and $214 million a year in spending by NYRA, trainers, horse owners and race spectators.

Racing also supported at least 2,500 jobs both on and off the track, according to the study.

Local officials who are pressuring state leaders to act say those numbers show exactly what is at stake.

Even a temporary interruption in racing, they said, threatens local businesses and governments that benefit from the tax revenues the industry generates.

"We have two brand new hotels that were just built in this community," said Saratoga Springs Supervisor Matt Veitch, who chairs the county's Racing Committee. "Imagine those buildings not being able to function. That's the scope and size of this issue."

… "This is the fundamental problem facing racing in New York," he said. "It is the single highest taxing rate paid in any racing state in the country."

… "I've been involved in six or seven different states that were expanding efforts where Off-Track Betting was a concern, and, without fail, the first thing that was determined was to not do it like they do in New York," he said.

Failure to overcome such regulatory and financial issues is also distracting racing leaders and supporters from focusing on the core issue of attracting fans, said Tom Gallo, owner of Saratoga Springs-based Parting Glass Racing.

Racing can become an immensely popular, family-oriented and accessible sport, Gallo said, but realizing that potential is difficult, given political and financial distractions.

"People would come back, but if things are always changing, people are going to start getting suspicious," said Gallo, who has long owned a Cambridge horse farm but is considering moving for the first time in his life because of the turmoil.

"The long-term fix is to open the sport to families, get kids there and just let the magic happen," he said. "It may take years, but the sooner we get started, the better."Family-orientation may be possible at Saratoga, but probably not downstate, and surely not at Aqueduct. If NYRA is running out of funds for Belmont, why continue the winter meet at Aqueduct? They can’t get any money from OTB and they can’t show their own races on the internet. Wouldn’t NYRA still get income from NYRA-1 account bets and simulcast play at Aqueduct, or would everybody switch to one of the Big 4 ADWs or OTB?

Indulto

02-25-2010, 03:39 AM

http://www.thoroughbredtimes.com/national-news/2010/February/24/New-York-City-OTB-lawmakers-at-impasse.aspx (http://www.thoroughbredtimes.com/national-news/2010/February/24/New-York-City-OTB-lawmakers-at-impasse.aspx)
New York City OTB, lawmakers at impasse
by Paul Post February 24, 2010… On Monday, a U.S. Bankruptcy Court judge heard Frucher’s plan to reorganize OTB, but held off approving it and gave no indication when a decision might be made.

“That’s good, because the plan doesn’t work,” said Gary Pretlow (D-Yonkers), chairman of the Assembly Racing, Gaming and Wagering Committee. “I’m working on my own alternate plan. It keeps the world sane as we know it.”

Pretlow’s plan calls for eliminating numerous high-salaried management positions. The plan would involve moving OTB headquarters from pricy midtown Manhatten to Aqueduct, where the New York Racing Association could provide a more inexpensive space, Pretlow said

Pretlow also proposes eliminating New York City OTB’s television system and having one of the state’s five other OTB corporations provide such service. Pretlow said his plan would save New York City OTB $20-million, creating a profit of up to $12-million annually.

… Under Frucher’s plan, hundreds of workers would lose their jobs through retirement, attrition and buyouts.

… The plan, however, hinges on selling $250-million in bonds to make the proposal work.

“Who the hell is going to buy an OTB bond?” Pretlow said. “We’re definitely not doing their plan. So that could mean a shutdown of OTB, which we don’t want.” …http://nymag.com/daily/intel/2010/02/next_governors_horse_race_trou.html (http://nymag.com/daily/intel/2010/02/next_governors_horse_race_trou.html)
Next Governor’s Horse-Race Troubles Won’t End in November
By: Chris SmithHere’s a question for Andrew Cuomo, when he finally comes out of hiding and officially runs for governor: How does he feel about horse racing? …

… OTB’s president, Sandy Frucher — an old Mario Cuomo aide — topped those scary stats by estimating 70,000 jobs will be lost if his plan to reorganize OTB is thwarted.

… As a state agency plagued by long-running woes, OTB is far from alone, of course. …

… The recession has certainly made things worse, but none of the underlying problems are new.

Which is why Cuomo — and David Paterson (assuming he’s still in the contest) and Rick Lazio — need to be asked detailed questions about just how they see the state’s role changing in these industries. …

… Longer term, raising taxes, again, isn’t the answer; wholesale privatization isn’t desirable or likely, especially in medical care; video slot machines, if they ever arrive at Aqueduct, are merely another temporary fix. The cultural tradition of Saratoga and Belmont — not to mention all the unglamorous stable and breeding jobs of everyday horsemen and women — is, in its own way, as worth saving as the subways and the emergency rooms. But the state’s part in these very expensive fields needs to be rethought in a serious and far-reaching way. Or else more than the ponies are going to stop running.

PaceAdvantage

02-25-2010, 09:18 AM

Where is the fierce competition for Hayward’s skills and resume elsewhere?

What was Barry Schwartz paid?Barry Schwartz, like his successor Steve Duncker, made ZERO. The Chairman is an unpaid position.

Indulto

02-25-2010, 02:33 PM

Barry Schwartz, like his successor Steve Duncker, made ZERO. The Chairman is an unpaid position.Exactly! But wasn't Schwartz also performing the duties of the CEO for an extended period after Meyocks resigned? Was there some other individual besides Schwartz and Nader involved then to collectively perform the same functions required of the Duncker/Hayward/Handel trio in order to produce the same operational results while also having to deal with the harassment by the existing govenor and attorney general? The current team no longer has responsibility for the VLT installation and operation, either.

Indulto

02-28-2010, 09:02 PM

http://www.saratogian.com/articles/2010/02/28/sports/doc4b89f13ab1961575909410.txt
VEITCH: Monmouth proposal a threat to New York racing
By Mike Veitch February 28, 2010… A plan to remake the annu¬al season at Monmouth Park in New Jersey puts daily average purses at a phenomenal $1 million.

…A 50-day racing season, with racing on Friday, Saturday and Sunday, would open May 22 and close Labor Day.

Such a purse level would far exceed Saratoga, which led the nation last year at $725,000 for 36 days of racing.

The plan, …, also calls for the elimination of thoroughbred racing at the [Meadowlands].

… In a way, the Monmouth plan reflects what some industry analysts have been predicting, that racing has to shrink and reorganize along with the rest of the economy.

… It is not hard to imagine stakes races worth $500,000 on every day of racing at Monmouth, with perhaps a doubling of the Haskell Invitational to $2 million.

We can hope it will not be in direct competition to the Travers.

… Not only will owners of New York horses be tempted to cross the Hudson River, but owners from Churchill Downs and other summer tracks might prefer Monmouth to Belmont and Saratoga.

… The New York Racing Association will have its regular monthly meeting this coming Wednesday, Mar. 3.

There is sure a full plate of problems as the association tries to make ends meet with no immediate hope of new revenue.

In light of the disgusting incompetence of state leadership, I think there is every chance the Aqueduct slots proposal could wait until after the elections this coming November.

… Then there is the remainder of the 2010 stakes schedule for the final eight months of the year.

You can pretty much read the tea leaves and come up with reduced purses at the upcoming Belmont and Saratoga summer meetings, with the possibility of heavier cuts at Belmont and Aqueduct fall. …

Indulto

03-06-2010, 06:50 PM

http://www.saratogian.com/articles/2010/03/06/news/doc4b91d59583f22432182358.txt (http://www.saratogian.com/articles/2010/03/06/news/doc4b91d59583f22432182358.txt)
NYRA: 'All bets off' if New York City OTB closes
By PAUL POST March 6, 2010… OTB, even though it owes NYRA $15 million, has still been able to make statutory payments to NYRA this year. Sixty percent of those monies go to purses, and 40 percent to NYRA operations.

However, OTB says it will run out of money and be forced to close by the end of this month if the state Legislature doesn’t adopt swift cost-saving measures.

“I don’t think the Saratoga meet is in jeopardy at all,” NYRA President and CEO Charles Hayward told the

… Even if it gets through Saratoga, Hayward said NYRA’s cash flow typically drops off in autumn. He said the association will need money from the state to get through next winter, especially if an Aqueduct gaming operator isn’t named. Aqueduct is slated to get 4,500 video lottery terminals.

… “We’re in discussions with the state,” Hayward said. “They understand their obligations.”

… “NYRA is still radioactive in a lot of areas,” Hayward said. “There’s still a lot of people who have hatred for NYRA. I don’t know why. The state’s got to decide at some point whether they want to have a racing industry or not. Albany doesn’t really act until it’s crisis.”

“We’re close,” said Patrick Kehoe, NYRA vice president and general counsel.

Hayward said NYRA could generate considerable extra money if certain legislative and regulatory changes were made, but chided state officials for failing to act.

NYRA has also called for consolidation of services with OTB to save money. In January, a state OTB task force made a similar recommendation, but said NYRA shouldn’t take over OTB because of its own precarious financial condition.

“I think that report’s going to sit on a shelf and never be acted on,” Hayward said.

Indulto

03-09-2010, 10:35 PM

http://www.queenscourier.com/articles/2010/03/09/news/top_stories/doc4b96e13788861908709967.txt (http://www.queenscourier.com/articles/2010/03/09/news/top_stories/doc4b96e13788861908709967.txt)
A RACINO WITH NO FINISH LINE
The Big A Mess
BY VICTOR G. MIMONI March 9, 2010The home stretch to open a Racino at Aqueduct turned into quicksand when Governor David Paterson pulled out of the discussion process.

On Tuesday, March 9, Paterson issued a statement saying he was out of the discussions “on advice of counsel” and his secretary and counsel would assume his role.

Hours earlier, Aqueduct Entertainment Group (AEG) announced that local civic leader Reverend Floyd Flake and rap mogul Jay-Z had both given up their partnership interests in the group.

“My ongoing participation in Aqueduct Entertainment has become a distraction that has taken me and my attention away from the community projects I created and nurtured,” Flake said in a statement. “I support Aqueduct Entertainment’s vision for the revitalization of my community through the creation of jobs, retail facilities and other opportunities for growth,” it continued.

After nearly seven and a half years leading to the selection of AEG to operate a Racino at Aqueduct racetrack in Ozone Park, the finish line may have moved further away when Inspector General Joseph Fisch took himself off the case on Wednesday, March 3. …http://sports.espn.go.com/sports/horse/columns/story?columnist=moran_paul&id=4977144 (http://sports.espn.go.com/sports/horse/columns/story?columnist=moran_paul&id=4977144)
A state in shambles
By Paul Moran March 8, 2010… Racing in the nation's most important market teeters on the precipice on extinction, crushed beneath the overwhelming weight of political ignorance, incompetence and corruption.

At a time of year when the attention should be focused upon the upcoming Kentucky Derby, Triple Crown and the delicious potential of an eventual meeting between Rachel Alexandra and Zenyatta, New Yorkers, uncertain even of who will occupy the governor's office on the first Saturday of May, are wondering — and with good reason — whether or not the racing season at hand will be completed. In March, no one in the New York racing community is looking beyond summer.

Make no mistake. Regardless of what you may think of the New York Racing Association, which has almost dutifully cultivated many critics and alienated many horseplayers over the years, the desperate situation it now faces is the fault of a state government that is an embarrassment to democracy.

… While politics and racing in New York have never been comfortable bedfellows in their shotgun marriage, Paterson, whose long-delayed and somewhat questionable selection of an enterprise known as the Aqueduct Entertainment Group to operate the video lottery terminal facility envisioned with great if repeatedly disappointed anticipation since 2001 was met immediately by charges of cronyism and while not yet overturned, is under investigation by the State Inspector General, who has pulled back a thin veil.

… NYRA claims that it may run out of money by June unless funds promised by the state, which faces an $8-billion deficit and, according to the governor, will be broke by April, actually materialize. Meanwhile, Paterson's staff is fleeing in a flurry of resignation letters and what few horseplayers actually show up at shabby Aqueduct, are met by leaky roofs and dark rumors.

What appeared to be a glimmer of light at the end of a long, cold tunnel when Paterson and the leaders of the state's assembly and senate agreed on AEG to operate the Aqueduct casino appears now no more than an illusion. Since the self-destructive Paterson announced recently that he will not run for office this year after the latest scandal piled upon the tragedy of his administration rumors have surfaced that some officials involved in the negotiations are inclined to delay the project until after January, when a new governor is installed. …

… Also trapped in the legislative gridlock is the issue of the New York City Off Track Betting Corp., which owes NYRA $15 million. OTB and the legislature, however, are at loggerheads despite the imminent prospect closing the nation's largest off-track betting enterprise. NYCOTB handles about $1 billion annually and generates tens of millions for NYRA and breeders, but has failed to make statutory payments to many racing providers of its product. Legislative approval is required for any kind of restructuring but like anything that requires thought and action in Albany, the issue languishes in a stagnant morass.

… The association has also trimmed stakes purses by $4.3 million for 2010, $1.4 million of which will evaporate from stakes purses at the upcoming Belmont spring meeting and the summer meeting at Saratoga, where the community if very nervous despite assurances from NYRA officials that the summer meeting to which the local economy is anchored is safe — unless, of course, NYCOTB is forced to shut down.

… The spring and autumn meetings run at Belmont Park are hugely popular with horseplayers nationwide. The state's breeding program, when funded, is the most lucrative anywhere. New York should be racing's Promised Land yet the sport and the people involved, horseplayers and fans included, suffer needlessly beneath the weight of political nonsense — a cavalier, ruinous abdication of responsibility. What became of government FOR the people? …http://www.saratogian.com/articles/2010/03/09/sports/doc4b95ca9c651f3700046978.txt (http://www.saratogian.com/articles/2010/03/09/sports/doc4b95ca9c651f3700046978.txt)
Scott on racing: Circling the wagons around Saratoga Race Course
By JEFF SCOTT March 9, 2010Times are tough all over for horse racing. And nowhere are they tougher than in New York, where the same troubles besetting the industry everywhere - declining interest and investment in the game, and a stalled economy - have combined with a dysfunctional state government to present what some consider a serious challenge to racing’s survival.

… While the purse cuts affect both Belmont and Saratoga, Belmont is where the most dramatic changes are taking place. It appears NYRA has elected to circle the wagons around Saratoga Race Course, while designating Belmont as a sort of reserve unit whose races may be moved about or drawn upon as needed.

… It’s hard to fault NYRA for digging in at the Spa. Saratoga is where the money is, and, in recent decades, the meet’s history and prestige have always been worth something extra. Just how much that prestige is really worth may be learned this summer, particularly if New Jersey follows through on a reorganization plan that could result in Monmouth Park offering a whopping $1 million in average daily purses. …

Indulto

03-11-2010, 01:58 AM

http://www.bloodhorse.com/horse-racing/articles/55809/ny-lawmakers-want-urgency-in-casino-decision (http://www.bloodhorse.com/horse-racing/articles/55809/ny-lawmakers-want-urgency-in-casino-decision)
NY Lawmakers Want Urgency in Casino Decision
By Tom Precious March 10, 2010… Government sources said the plan is to break off the AEG deal as early as March 11. Aides to Paterson and legislative leaders were in talks over how to proceed to keep the Aqueduct project from being halted, which, with Paterson not running for election this fall, threatens to push off a new bidding round until at least next year.

… “We need to move from the other choices available. There’s no reason to start from scratch again,’’ Sen. Eric Adams, a Brooklyn Democrat and chairman of the Senate’s racing committee, said if Paterson and legislative leaders kill the AEG deal.

The state’s Lottery Division has told aides to Paterson that it does not believe AEG can obtain the licenses it needs from the agency to run the Aqueduct casino.

… If AEG is dropped, it could—given the many criticisms the casino bidding process was hit with over the months—force officials to begin anew the jockeying among private groups looking to run the lucrative casino.

Or, given the state is losing $1 million in casino revenue-sharing proceeds for every day there is no casino operating at the track, the governor and lawmakers could pick from the bidders that lost out to AEG. That could put a partnership led by SL Green and Hard Rock Entertainment at the top, officials say, especially since that group was being pushed by top aides to Paterson and had the private, initial okay from Silver. Other bidders include Penn National Gaming and Delaware North.

Adams, along with Assembly Racing Committee Chairman Gary Pretlow, a Westchester County Democrat, both said March 10 that the bidding process should not be started over if AEG is dropped. Neither expressed a preference among the remaining bidders.

“My only concern is to get the project done,’’ Adams said. “If Lottery says that any group is not qualified, then let’s go to the next one. We need to get a shovel in the ground.’’

… Adams, the Senate committee chairman, said the Aqueduct project has become too important to the racing industry to start the bidding clock over again. He noted the casino issue comes as the New York Racing Association, which runs Aqueduct, says it risks running out of money early this summer, and is counting on some sort of state assistance or up-front payments from the casino bid winner.

“We cannot bailout NYRA,’’ Adams said, citing the state’s worsening deficits and planned cuts to a whole range of popular government programs. “So we need to get a casino project at Aqueduct.” If AEG doesn’t work, he added, “Let’s move to the next.’’http://www.paulickreport.com/blog/could-new-monmouth-structure-be-more-bad-news-for-nyra/ (http://www.paulickreport.com/blog/could-new-monmouth-structure-be-more-bad-news-for-nyra/)
COULD NEW MONMOUTH STRUCTURE BE MORE BAD NEWS FOR NYRA?
COMMENTS

john g sikura Says:
March 10th, 2010 at 11:59 amNYRA needs to contact federal authorities with information leading to an investigation as to why the VLT project, long ago legalized by statute has been stalled. It is quite evident that corruption is the root cause of the inaction and pressure need to expose these individual(s). I bet that an FBI investigation would move the project forward in 30 days and expose the culprits. Whether it is the certification of the new Indian tribe or political patronage there is a concerted effort to stop the VLT project that needs exposing. Jgs

Indulto

03-12-2010, 03:17 AM

http://www.drf.com/news/article/111352.html (http://www.drf.com/news/article/111352.html)
State scraps Aqueduct casino deal
By Matt Hegarty 3/11/2010… the state's lottery "has concluded that it cannot issue a gaming license to Aqueduct Entertainment Group," the sprawling partnership whose selection in late January by state government leaders to operate the casino sparked criticism and controversy. …

… "The Executive Branch advocates that the selection of the Aqueduct [slot-machine] franchisee be done pursuant to an expedited, transparent, apolitical, and publicly accountable procurement process," the statement said.

In a statement, AEG's attorney, Barry Berke, indicated that the group would sue the state if it was not given an opportunity to address the lottery's concerns.

… An official at the lottery who spoke on the condition of anonymity said that the lottery division did not want to issue AEG a license because the structure of its partnership underwent continual changes since the group submitted its bid last May, including several changes just prior to a deadline to submit background materials on the partners on Tuesday. The official would not name the individuals that the division believed were problematic to license.

"Throughout the process, they continued to make significant changes," the official said. "They continued to demonstrate a pattern of involving unqualified individuals and entities."

The scuttling of the deal is yet another blow to the New York Racing Association, which is counting on revenues from the casino to plug holes in its operating budget and subsidize purses for horsemen. …

… Rick Violette, president of the New York Thoroughbred Horsemen's Association, said the controversy surrounding the selection had made it unlikely that the casino would ever get off the ground with AEG as the operator. As a result, the latest development could be good news for the racing industry if the government quickly selects a new operator, Violette said.

"If we can move forward immediately to the second or third choice and get the ball moving, then this is a good day," Violette said. "Prolonging the agony solves no problems, and delays are literally killing our industry."

… "The process was flawed from its inception, and I still think that," Pretlow said.

"We definitely shouldn't start all over. You're just going to get more of the same."

… Casinos were authorized for nine racetracks in New York in 2001. Aqueduct is the only approved track without a casino, and is also the only location in which the selection of a casino operator was left to the state. …

Indulto

03-16-2010, 06:20 AM

http://www.saratogian.com/articles/2010/03/16/news/doc4b9ef8d2ecc18401109887.txt (http://www.saratogian.com/articles/2010/03/16/news/doc4b9ef8d2ecc18401109887.txt)
Local community members, breeders, politicians rally to save racing
By PATRICK H. DONGES and EMILY DONOHUE March 16, 2010… The 15-member Saratoga Race Course Local Advisory Board has a meeting scheduled with several state legislators at noon Wednesday, March 17, at the state Capitol. On the same day, a Concerned Citizen Group is working to arrange a meeting with Assembly Speaker Sheldon Silver.

“My mission is to make sure we have racing this season,” said Sen. Roy McDonald,

… “It’s not easy to get someone who doesn’t know if he’s going to be in his job for the next 24 hours to focus,” he said, stressing that Paterson and downstate legislative leaders did not recognize the fiscal and cultural significance of the track. As of Monday afternoon, he had not received notification that those legislators invited would attend the meeting.

… Organizer and local breeder Kelly Zanella said the rally is about more than just the track, citing 35,000 jobs statewide that have remained viable because of the racing industry.

“This isn’t just an upstate issue,” Zanella said, citing national support jobs like veterinarians and hay farmers. “It even branches off into other states.”

Zanella wants the state to implement a three-tiered plan in which the first step would be to shore up New York City Off Track Betting. OTB said last week that they will be forced to close without the passage of cost-cutting legislation. …]http://www.bloodhorse.com/horse-racing/articles/55868/nycotb-asks-for-help-from-tracks-state (http://www.bloodhorse.com/horse-racing/articles/55868/nycotb-asks-for-help-from-tracks-state)
NYCOTB Asks For Help From Tracks, State
By Tom Precious , March 13, 2010… OTB Chairman Meyer Frucher said March 12 he has asked the Legislature to approve an interim plan to let the OTB delay statutory payments—which would include fees it makes to tracks and the state—for up to three months while negotiations continue at the Capitol for a long-term solution.

… An estimated amount for the payment delays was not immediately available.

The proposal comes as Senate Racing Chairman Eric Adams, a Brooklyn Democrat, has called an emergency meeting for March 15 in Albany with the leaders of all the state’s off-track betting corporations. Adams said he wants to impress upon the group that NYCOTB’s insolvency would hurt all stakeholders, including the other OTBs.

“Everybody is tied to New York City OTB, whether they like it or not. If New York City goes under, everybody is going to feel it,’’ Adams said.

… “The entire plan is bad. Other than that, it’s great,’’ said Assembly Racing Committee Chairman Gary Pretlow, a Westchester County Democrat.

Pretlow said NYCOTB’s long-term distribution formula change “would be the downfall for racing because tracks wouldn’t get anything.’’

Pretlow said the Assembly will not back such an expansion of gambling as Frucher calls for with the kiosks, and questioned how it would get out of more than four dozen leases for space now rented as betting parlors.

Adams, however, said he could be open to the kiosks, and noted that the state lottery games would be sold in far more places in New York than under the NYCOTB kiosk proposal.

The debate over NYCOTB’s future came as three regional OTBs announced March 12 that they had entered in an agreement to begin a number of cooperative ventures, including a common Web site for bettors and merger of tote operations. …
… The three OTB presidents called on others, including NYCOTB, to join its push for a more cooperative off-track betting industry in the state.

The OTB leaders called for creation of what they called a statewide Racing Council. The agreement the three OTB corporations signed call for either a single statewide tote operator or better communication between existing tote companies to expand betting options, a statewide television racing station and internet broadcast signal, and a cooperative marketing program between the OTBs. It also envisions an upstate and downstate phone wagering center to merge the current duplicative efforts across the OTB regions.http://www.thedailynewsonline.com/articles/2010/03/13/news/6569939.txt (http://www.thedailynewsonline.com/articles/2010/03/13/news/6569939.txt)
Three OTBs form racing council
By Tom Rivers March 13, 2010… "Our joint mission is clear: Work together to streamline our operations through cooperative projects, support the horse racing and breeding industry and turn over increased revenue to local government, thereby providing some relief to beleaguered taxpayers," said Martin Basinait, president and CEO of the Western Regional OTB.

Basinait is the designated administrator of the joint venture agreement, which was hailed by John Signore, president of the Capital OTB.

"Horse racing fans will see improvements in many areas including a new joint Web site, Internet wagering, marketing, video streaming of races and customer service," Signore said in a statement released by the three OTBs.

The OTBs are all struggling with plunging revenue from their betting parlors. State-wide, betting at OTBs dropped 10.3 percent in 2009, down from $1.847 billion in 2008 to $1.657 billion last year.

… Western is the only OTB that owns a race track and Batavia Downs has more than offset the losses at the OTB parlors. Western OTB officials are projecting $3,802,426 in earnings at Batavia Downs, which includes the estimated $1.3 million loss in running 72 racing dates.

… Western may benefit from the struggles of the other OTBs without video gaming to lift their finances. The OTBs are asking Albany to change legislation for statutory payments, so the OTBs can keep more of their money. With steep losses throughout the state, legislators may be inclined to help the OTBs.

The OTBs used to be allowed to keep uncashed ticket revenue, but now the state gets that money. Allowing the OTBs to keep that would mean another $600,000 annually for WROTB. …

Indulto

03-19-2010, 02:15 PM

http://blog.timesunion.com/capitol/archives/23749/pretlow-saratoga-will-go-on/ (http://blog.timesunion.com/capitol/archives/23749/pretlow-saratoga-will-go-on/)
Pretlow: Saratoga will go on
by Jimmy Vielkind March 15, 2010… Lawmakers trying to save New York City OTB took different strategies today. Assembly Racing & Wagering Committee Chairman Gary Pretlow released a list of recommendations that chiefly focus on the bankrupt OTB operation shedding executive payroll. He said NYCOTB Chairman Sandy Frucher’s plan to borrow while in bankruptcy protection and restructure payments to the racing industry is “fatally flawed.”

He said NYCOTB’s management payroll of $12 million is 10 times too large and needs to be slashed. Likewise for rentals of expensive real estate such as the downtown Manhattan headquarters.
Pretlow also said that the New York Racing Association, six OTB corporations and seven private racetracks should combine to purchase a tote company to better control racing products. He said a tote company could be purchased for about $1 million, pointing out that Magna Entertainment may be selling its tote operation. Pretlow’s proposal comes as NYRA has threatened to close some operations because of cash flow problems. “NYCOTB owed NYRA $19 million. If there is no NYCOTB there is no NYRA,” Pretlow said.

John Signor, president of Capitol OTB, said the tote company acquisition idea needs review but doesn’t immediately sound viable.

He and officials with the other non-New York City OTB operations, NYRA, the horsemen’s association, standardbred owners association, Finger Lakes Raceway and breeders groups went behind closed doors an hour ago to discuss the future of the industry with a focus on what to do about NYCOTB.

The gathering was by Senate Racing & Wagering Committee Chairman Eric Adams, D-Brooklyn. Adams said his goal is to keep NYCOTB, and its jobs, alive. NYCOTB is planning to close at the end of the month and has notified the state of its intentions to furlough the entire workforce http://www.bizjournals.com/albany/stories/2010/03/15/daily5.html
Capital District OTB aligns with 2 others
By James Fink March 15, 2010… The pact between the the Capital District Off-Track Betting (http://albany.bizjournals.com/albany/related_content.html?topic=Capital%20District%20Of f-Track%20Betting) and its counterparts in Suffolk County and the western New York, which involves a myriad of expenses and operations, could also serve as a template for the state’s three other OTB operations and, eventually, horse racing tracks.

… While many of the areas covered by the new agreement are behind-the-scenes measures, the most visible aspect - the statewide marketing campaign - will start within the next two months, beginning with a radio campaign in the Albany area.

… The deal covers 149 upstate OTB branches, “Easy Bet” locations and phone rooms including 34 branches in the Western New York region.

“Our joint mission is clear: Work together to streamline our operations through cooperative projects, support the horse racing and breeding industry and turn over increased revenue to local government,” Basinait said.

Among the potentially cost-saving measures includes the three OTBs running one, central Web site, operating a single, statewide racing television station as well as an Internet TV station, creating a statewide marketing campaign and running an upstate and downstate phone center.

… In the meantime, Basinait confirmed the three OTBs have reached out to the Nassau Downs OTB, Catskill OTB and the financially beleaguered New York City OTB to see if they wanted to join in the pact. Those talks are ongoing, Basinait said.http://www.harnesslink.com/www/Article.cgi?ID=79179
Unconditional support outlined by president
By Joseph Faraldo 18-Mar-2010… … Chairman Pretlow: "NYCOTB should reduce the usage of out-of-state tracks by at least 50% and show more in-state races. This will mitigate the eliminated payment for hold harmless and generate a net savings of $7 million."

The SOA has, in fact, proposed a comprehensive, structured initiative called "New York First," that would address this very issue. Therefore, while we agree with the Chairman's goals, we would propose going further than this general suggestion and would mandate that New York State OTB operations be required to carry/display the New York State racing product first on all of its wagering outlets/vehicles (including, but not limited to, in-parlor, television broadcasts, and any and all past, present or future wagering platforms it or its agents employ), with out-of-state signals to be allowed only when not enough in-state signals are available to fulfill said programming needs.

… Chairman Pretlow: … New York State is losing over $300 million in handle to out-of-state ADW (advance deposit wagering) companies with better coordination of the racing products and control of the tote. Another recommendation, which would require legislation, would be to institute a statewide OTB channel to provide everyone in the state with the opportunity to view all races and to encourage fans and potential fans to do business with their local regional OTBs."

… Chairman Pretlow: "I recommend that the outstanding payments owed to racetracks be extended over a ten-year period, except for what's owed to Monticello, which should be paid in full over a four-year period. Amounts owed to the Thoroughbred and Standardbred Breeding Funds should be spread over three years and payments due to the New York City employee benefits program and New York City employees' retirement system should be spread over five years." …http://www.horseraceinsider.com/blog.php/On-The-Line/comments/concerned-new-yorkers-can-save-racing-industry-and-their-communities/#comments (http://www.horseraceinsider.com/blog.php/On-The-Line/comments/concerned-new-yorkers-can-save-racing-industry-and-their-communities/#comments)
Concerned New Yorkers Can Save Racing Industry and Their Communities
By John Pricci March 19, 2010 …Assembly Majority Leader Ron Canestrari … was interviewed by veteran local ABC reporter, John McLoughlin:

“Can you tell us why places like Pennsylvania were able to get VLTs up and running to help their thoroughbred industry but here it has taken nine years and New York still doesn’t have them?”

At first Canestrari seemed taken aback by the question, before smiling wryly and responding “in New York things are different. We’re very deliberate.”

And so there it is, a sound bite that underscores how New York State has become a template for dysfunctional government.

Had three executive administrations and legislators acted deliberately but with purpose the last nine years, there would have been a need for a rally at all.

If New York lawmakers had taken this responsibility seriously, the state would not be in default to the New York Racing Association for approximately $40 million since, as proscribed in the new franchise agreement, VLTs were not up and running by March of 2009.

Neither have the state’s legislators addressed the New York City-Off Track Betting crisis, for which it is responsible as its new owner. NYC-OTB, seeking bankruptcy protection and statutory changes, is preparing to shut its doors, March 31. Employees were given termination notices earlier this month.

The OTB issue requires immediate remedy. A large measure of its annual billion dollar handle is bet on NYRA’s races. That revenue stream is active. Should the stream dry up, the NYRA will run out of money before the Belmont Stakes, much less Saratoga.

… Canestrari favors a whole new process, however, saying the crisis is “overblown fear mongering by the NYRA.” To her credit, Yepsen stood with the citizens, advocating for the operation of VLTs as soon as possible, explaining “lack of action [resulted in] horses leaving the state for other areas. This is about being here in the long term.” …

Indulto

03-22-2010, 07:09 PM

http://www.drf.com/news/article/111618.html
Judge rules for New York OTB
By Matt Hegarty 3/22/2010… In a ruling issued on Monday, Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York challenged the objections one-by-one and ultimately ruled that NYRA's arguments had no basis in law. As a result, NYCOTB will continue to enjoy the legal shelter of the court as it seeks to reorganize and lobby for changes to state laws that govern how its revenues are distributed to the racing industry.

"Protected for now by chapter 9 of the Bankruptcy Code, NYCOTB will either reorganize or liquidate under the watch of this court, depending on the actions of the New York State Legislature and NYCOTB's further negotiations with each of its important constituencies," Glenn wrote at the conclusion of his opinion.

… Glenn ruled that Paterson was within his rights when signing an executive order authorizing the bankruptcy filing last year because of an implied consent of the state legislature. The opinion states that executive power in New York is broadly defined, and can sometimes step over the boundaries that traditionally separate the executive and legislative branches.

Glenn also wrote that New York City OTB had made the filing in good faith by satisfying a number of requirements that demonstrated that it had analyzed all of its options prior to the decision to file for bankruptcy. …

… "The chapter 9 petition was filed only when NYCOTB was faced with imminent financial collapse that would have required shutting its doors, laying off all of its employees, and ceasing payments to all of its constituencies that look to NYCOTB for financial support," Glenn wrote.http://www.bloodhorse.com/horse-racing/articles/56029/judge-rules-nycotb-bankruptcy-can-proceed (http://www.bloodhorse.com/horse-racing/articles/56029/judge-rules-nycotb-bankruptcy-can-proceed)
Judge Rules NYCOTB Bankruptcy Can Proceed
By Tom Precious March 22, 2010… The judge rejected, point by point, all of NYRA’s legal arguments for trying to halt the Chapter 9 bankruptcy filing by NYCOTB, and offered a seemingly sympathetic take on the fiscal plight facing the nation’s largest off-track betting entity.

The ruling came on the same day the NYCOTB board of directors went another step toward issuing layoff notices to its employees. …

… The clock is ticking; lawmakers are due to leave Albany for an 11-day break at the end of the week, not returning until April 7. NYCOTB said it will run out of money to continue operations on April 11, forcing it to close its 66 branches and lay off workers.

The NYCOTB board March 22 authorized layoff notices to be sent to its 1,300 workers, effective at the close of business April 11.

… Glenn countered a number of NYRA’s chief talking points, saying its financial problems are largely the result of its state-created business model, and that NYCOTB has made budget cuts to try to address the problems.

… The judge, in a 43-page ruling, noted the state increased the NYCOTB’s mandatory distributions by $7.8 million a year, on average, between 2003 and 2005. He said the corporation has run deficits since 2006.

NYCOTB’s total handle as of last September was $441 million, with total revenue after paying bettors down to $109 million. When all payments were made, NYCOTB was left with an $8.7 million deficit….http://www.queenscourier.com/articles/2010/03/22/news/top_stories/doc4ba7d25caab40390448911.txt
Gaming never easy in NY
BY VICTOR G. MIMONIMarch 22, 2010{QUOTE]Gambling – now called gaming – has always had strong enemies in New York.

… A decade of the Great Depression weakened anti-gambling sentiment enough for a constitutional amendment to pass on November 7, 1939, approving pari-mutual betting on horse races, “. . . from which the state shall derive a reasonable revenue for the support of government.”

Still, it wasn’t until November 8, 1966 that voters approved “lotteries operated by the state and the sale of lottery tickets . . . the net proceeds of which shall be applied exclusively to or in aid or support of education.”

… On February 6, 2001, a bill to allow “video lottery machines” at race tracks was introduced in the Senate. It died in committee. But with the economic aftershocks of the 9/11 attack on the World Trade Center, the idea of “gaming” as a revenue source was irresistible.

On October 23, 2001, then-Governor George Pataki called for a package of emergency legislation that included expedited provisions for casino-style gambling on Indian lands, multi-state lotteries and a “pilot program” for video lottery terminals (VLT.)

In one day, it passed in the Assembly and the Senate, where only eight of 62 senators voted against it. One of them was David Paterson.[/QUOTE]

Indulto

03-27-2010, 12:50 AM

http://www.bloodhorse.com/horse-racing/articles/56119/nycotb-to-close-down-april-11 (http://www.bloodhorse.com/horse-racing/articles/56119/nycotb-to-close-down-april-11)
NYCOTB to Close Down April 11
By Tom Precious March 26, 2010… “There is no OTB deal,’’ said Assembly Speaker Sheldon Silver.

“We’re willing to do it. The (governor) has difficulty with it,’’ Silver said of an Assembly plan to keep the OTB afloat.

The Democratic leader declined to discuss the plan, but there were several competing measures floating around the state Capitol. One, according to sources, was an Assembly push to let NYRA take over the lucrative internet and phone wagering business of the OTB; it was unclear how that would solve the OTB’s cash problems, but would have gone far in addressing NYRA’s own fiscal headaches. Gov. David Paterson rejected the idea.

… A source close to the negotiations said Paterson has insisted that no state bailout money be a part of the plan to keep the OTB temporarily afloat as talks continue in the coming weeks or months on a long-term solution to the NYCOTB’s fiscal issues. The OTB in December filed for Chapter 9 bankruptcy reorganization protection.

But legislative sources say the OTB is bluffing on its closure threat, and that there are administrative avenues for it to get the money it needs to stay afloat for the next couple months. They also insisted the OTB has cash in reserves to avoid layoffs.

The NYCOTB matter became a major sticking point at the Capitol March 26 as lawmakers sought to pass a $4.6 billion emergency bill to keep the overall state government running when New York’s fiscal year begins April 1.

Lawmakers and Paterson sought to include a NYCOTB provision in the emergency bill, but talks stalled over how to bail out the nation’s largest off-track betting corporation at a time when the state is looking to cut a whole range of popular programs during an election year.

“That’s the problem, OTB,’’ Senate Democratic Conference Leader John Sampson, said of snags that developed in budget talks March 26. Asked if a cash bailout of the OTB was under consideration, he said, “Everything’s under consideration.’’

But the talks blew up, and Assembly Democrats passed the emergency appropriation bill without any amendments dealing with the OTB. The same bill is due to pass the Senate March 29.http://www.drf.com/news/article/111747.html (http://www.drf.com/news/article/111747.html)
New York OTB to shut down after bailout fails
By David Grening 3/26/2010The New York Off-Track Betting Corp. plans to shutdown operations on April 11 after negotiations for a potential 11th-hour bailout with legislators in Albany fell through on Friday, the company said in a press release.

… According to a published report, legislative leaders were discussing several scenarios on Friday as to how to keep OTB afloat for the next few months. One plan, according to Bloodhorse.com, was for the legislature to allow OTB to delay more than $1 million in some of its statutory revenue sharing distributions, such as to the New York Racing Association. OTB owes NYRA more than $15 million, according to OTB's Dec. 3 bankruptcy filing.

… OTB's reorganization plan included a shutdown of two-thirds of its 61 parlors, a 65-percent reduction in workforce along with the creation of five "super-parlors" throughout the five boroughs of New York and the creation of 1,100 to 1,300 self-betting machines, or kiosks, at licensed outlets throughout the city.

Another key component to the plan was the floating of bonds to make available some $250 million NYC OTB could use to pay debt, severance packages to laid off employees, and for capitalization projects.

Earlier this year, the NYRA said it was working on a restructuring plan that would consolidate some of what it perceives as duplicative services between it and OTB, including account phone and internet wagering, tote system, television production and broadcast media, and marketing. It was unclear if NYRA ever submitted a plan to the legislature for review.http://www.bloodhorse.com/horse-racing/articles/56112/nyra-eliminates-12-positions (http://www.bloodhorse.com/horse-racing/articles/56112/nyra-eliminates-12-positions)
NYRA Eliminates 12 Positions
By Blood-Horse Staff March 26, 2010Charles Hayward, president of the New York Racing Association, sent word to NYRA officials March 26 that a dozen administrative positions at the racing group are being eliminated. He blamed the action on “the current economic climate” that has contributed to a drop in handle of about 10% over the past 18 months.

NYRA has been criticized in recent months by state officials, including Robert Megna, chairman of the state NYRA financial oversight board, for not trimming its budget more deeply.

Hayward told his board members that the layoffs annually will save about $1.4 million in salaries and benefits. He said among those being let go are John Ryan, the senior vice president and chief administrative officer of NYRA.

"This is a regrettable decision, but was necessitated by the current economic downturn of the racing industry and NYRA’s challenging current financial situation,'' Hayward said in a written statement. He declined further comment.http://www.drf.com/news/article/111741.html
NYRA lays off 12 staffers to save $1.4M
By David Grening 3/26/2010… John Ryan, a senior vice-president/chief administrative officer, was the highest-ranking official terminated, according to multiple sources. Ryan's annual salary was $295,000, according to figures NYRA provided in February to the New York State Franchise Oversight Board. Sources also confirmed that Ryan's secretary, Gina Toner, wife of veteran trainer Jimmy Toner, was also let go. Others fired included …

Indulto

03-29-2010, 05:42 AM

http://www.saratogian.com/articles/2010/03/28/sports/doc4baecf1c4248e755998020.txt (http://www.saratogian.com/articles/2010/03/28/sports/doc4baecf1c4248e755998020.txt)
Government won't abide, is hurting horse racing
By MICHAEL VEITCH March 28, 2010… Key state lawmakers, who are saturated with way too much power, at best don't like racing and at worst, hate it.

Not all of them, mind you.

Democrat Assemblyman Gary Pretlow and Republican Senator Eric Adams have both tried to help New York racing and breeding.

They understand the economic importance of both to New York.

But in recent days, plans to give temporary help to the New York City Off-Track Betting Corporation and to expedite the Aqueduct racino have died.

… You can date the current crisis to another state failure to respect the law.

It occurred in 1997, when the state was scheduled to begin a three-year bidding process and review of the existing NYRA franchise.

A week before the process was to start, Gov. George Pataki awarded a 10-year extension to NYRA.

It was made public in a showy presentation to the press on Travers Day.

Politicians made much of the fact that no bidders showed interest at that time, thus the extension.

However, I learned from Sen. Joe Bruno's office in late 1995, while interviewing his counsel David Dudley on the franchise issue, that at least one potential bidder – Autotote – had expressed interest.

Guess that didn't matter.

Of course, a few Republicans of that time were near the status of Holy Roman Emperors.

So they killed any chance at a healthy review of New York racing that might have helped avoid the horrible situation of today. …http://www.nydailynews.com/ny_local/2010/03/28/2010-03-28_otb_halts_pay_for_executives_consultants_in_wak e_of_massive_layoffs.html (http://www.nydailynews.com/ny_local/2010/03/28/2010-03-28_otb_halts_pay_for_executives_consultants_in_wak e_of_massive_layoffs.html)
OTB halts pay for executives, consultants in wake of massive layoffs
BY Tina Moore March 28th 2010Off-Track Betting Corp. officials pulled the reins on consultant and executive compensation Saturday after fielding questions from the Daily News about the payments.

The announcement that the higher-ups won't be paid until the organization is stabilized came one day after the bankrupt OTB sent pink slips to 1,350 workers.

"Until a compromise is forged that saves these jobs, we will suspend our pay," the city's OTB President Raymond Casey said in a statement.

But a budget document obtained by the News shows that OTB at one point planned to dole out hefty pay to consultants trying to save the organization, which is threatening to shutter 66 parlors.

Four consultants - two with ties to Chairman Meyer (Sandy) Frucher - and two law firms stood to make an estimated $4.5 million through June, the budget document shows. …

Indulto

03-29-2010, 09:31 PM

http://search.espn.go.com/bill-finley/ (http://search.espn.go.com/bill-finley/)
Will NY politicians, OTB kill racing?
By Bill Finley March 29, 2010The New York Racing Association operates America's flagship racetracks, runs Saratoga, the sport's most important racing meet, and is home to the Belmont Stakes. But there's every chance that it will be forced to shut down some time this year because it is quickly running out of money. This is a real and scary situation, and it is completely unnecessary.

NYRA has done nothing wrong. Rather, it is the victim of the state's pathetic political leaders, who are incompetent, selfish and don't seem to care one bit about their constituents. They are Enemy No. 1. Enemy No. 2 is New York City OTB, which has declared bankruptcy, owes NYRA $15 million and has forever been run by politically connected hacks who care only about perpetuating their fat paychecks.

… "You want to grab some of these guys and say, 'There's $1 million a day out there for education, what doesn't compute here? What's the problem?'" said Rick Violette, president of the New York Thoroughbred Horsemen's Association. "This is beyond belief."

… "The VLT (a fancy name for slot machines) situation is unbelievably simple and somehow we still can't get it done," Violette said. "There've been nine years of broken promises and now the governor is talking about rebidding, something that could take the rest of 2010. That's beyond irresponsible. There's no good reason why they can't pick one of the remaining players."

But Paterson can't seem to get anything right. It very well could be back to the drawing board and still more delays.

Under normal circumstances, that wouldn't have been the worst scenario for NYRA. When it completed its deal to extend its franchise and eventually turn the racetracks over to the state, it got the state to agree to provide NYRA with the operating capital necessary to keep going in the event of any further delays in getting the slots up and going. But the state promising the money and actually delivering the money are two different things. New York is broke and it's been made pretty clear that the political leaders have no intention of sending any money NYRA's way, no matter what was agreed upon.

The mix becomes even more toxic when you factor in New York City OTB. It didn't go bankrupt for any other reason other than it is perhaps the worst-run corporation in America. It exists not to help horse racing, the state or the city of New York, but as a haven for political patronage jobs. That it could somehow go bankrupt when it has a monopoly on running off-track betting in the largest city in America is beyond belief.

NYRA obviously needs the $15 million it is owed by OTB. It also needs the off-track betting system to continue to contribute to racing by putting a fair share of its handle back into the sport. But OTB head Sandy Frucher thinks he has a better idea. He wants OTB to pay racing only from its profits and not from its revenue. One problem: there are no profits. OTB handles far more money than NYRA does. If OTB is allowed to stop contributing to New York racing, then New York racing will be finished.

Will it happen? OTB usually gets whatever it wants, so this may work out terribly for New York racing and good for OTB's many, many vice presidents of absolutely nothing.

… Should things stay the same over the next several months, NYRA will have to close down. They will get through Saratoga because that's the one place they make money. The profits from Saratoga may give them enough money to get through the Belmont fall meet. But then what? A shutdown is inevitable.

To have racing cease at what remains the most important racing circuit in North America seems unimaginable, but it's not. In New York, where the politicians are beyond contempt and the off-track betting system is a bad joke, it can happen. What a shame.http://www.bloodhorse.com/horse-racing/articles/56172/nycotb-chief-its-a-ticking-time-bomb?source=rss (http://www.bloodhorse.com/horse-racing/articles/56172/nycotb-chief-its-a-ticking-time-bomb?source=rss)
NYCOTB Chief: 'It's a Ticking Time Bomb'
By Tom Precious Monday, March 29, 2010… NYCOTB, already in Chapter 9 bankruptcy reorganization protection, is planning to ask the federal judge overseeing its case to do what state officials would not do: delay certain revenue-sharing payments during April and possibly May to be able to keep enough cash to meet the payroll for its more than 1,300 employees, sources close to the matter said.

… “It’s a ticking time bomb. Our drop-dead date is April 11,” Frucher said in a March 29 interview.

The legislature has left town until April 7 following a breakdown in state budget talks between the Assembly, Senate, and Gov. David Paterson. …

… Frucher said NYCOTB has $6.5 million in the bank, with $8 million in planned expenses for April. He also said it would cost $12 million to shut down operations and pay for things like unemployment and accrued leave time for its workers.

Moreover, he said a new state law affecting state-owned entities, such as NYCOTB, adds new fiduciary responsibilities that mandate him and the board to, for instance, ensure he has enough money on hand to pay obligations such as accrued leave time.

… “If there is an administrative bridge that we could use, I’m happy to do it. Just let me know what it is, because I don’t know of any,” he said.

Frucher said he has been surprised by the level of animosity encountered in the process. “You can’t have disagreements without people trying to demonize you,” he said.

… “I just came in as a fix-it man, a plumber,” said Frucher, who was tapped for the job by Paterson after the state took over the NYCOTB ownership in 2008 from the New York City government. “This organization has been in the hole for eight years. Who has been watching?”

… he warned a shutdown will reveal a $700 million obligation that either New York State or New York City will be responsible for to cover 40 years’ worth of accrued pension and health-care obligations for its current and former workers.

“The breeders say, ‘Shut it down,’ ” Frucher said. “OK. Who’s going to pay that bill?”

… Frucher said April is a money-losing month for the operation, but it recovers in May with a big rise in handle from the Triple Crown. But June, he said, is a “very down month” for revenue.

Frucher declined to say whether he thought there was an effort, as some NYCOTB backers have claimed, by NYRA to take over operations. Assembly Democrats pushed a plan, rejected by Paterson, to permit NYRA to run the phone and Internet wagering business.

Instead, Frucher said, the entire industry in New York should consolidate a range of operations, including tote, Internet, phone, television, and marketing operations. More than the dollar savings, he said, it would also “avoid a lot of the conflict inherent right now.”

hibiscus

03-29-2010, 11:06 PM

… “I just came in as a fix-it man, a plumber,” said Frucher, who was tapped for the job by Paterson after the state took over the NYCOTB ownership in 2008 from the New York City government.

I don’t know…maybe it’s just me…but everywhere else in the world, if there was a leak and the plumber was billing for two years, it’s a fairly good bet that the leak would be fixed by then.

Indulto

03-31-2010, 05:16 AM

http://www.queenscourier.com/articles/2010/03/30/news/top_stories/doc4bb25ae89f55a860835653.txt (http://www.queenscourier.com/articles/2010/03/30/news/top_stories/doc4bb25ae89f55a860835653.txt)
Sea of red ink may doom racing
BY VICTOR G. MIMONI March 30, 2010As New York State extends its latest streak of late budgets to four consecutive years, the New York Racing Authority (NYRA) and the former New York City Off Track Betting Corporation (NYC OTB) spiral down to insolvency, while state leaders cast about for a means of naming an operator for the Racino at Aqueduct.

… Shortly after issuing the pink slips, OTB announced it was stopping payment of $4.5 million to consultants and attorneys – about $3 million of which was for its bankruptcy lawyers.

Under the terms of Chapter 9, which applies to municipalities, the court can’t touch the debtor’s assets, nor approve legal fees.

OTB has blamed the state for changing its operating agreement, resulting in millions in structural losses in the last few years and has said it can’t go on unless its payouts to the state, NYRA and the industry are reduced.

“We cannot reach a three-way agreement on it to keep them afloat,” Assembly Speaker Sheldon Silver has reportedly said, referring to talks with Governor David Paterson and Senate Majority Leader John Sampson.

According to bankruptcy documents, OTB owes its 20 largest creditors a total of $65,824,783.95. Of that amount, just over $40 million is due to NYRA and various race tracks; over $11.7 million is owed to the state and city in taxes, pensions and Medicare withholding and over $2.5 million is owed to breeders and the industry.

Five lawsuits for negligence or discrimination that total over $11.5 million round out the top 20 list – which does not include OTB’s lawyers or consultants.

In the meantime, NYRA – owed $15 million by OTB – which was expecting $30 million in operating capital from the rejected Aqueduct Entertainment Group (AEG) $300 million Racino down payment, has dumped a dozen executives, reducing their payroll by $1.4 million, according to reports.

NYRA has said that racing at Belmont, Saratoga and Aqueduct could end by June 1, eliminating the Belmont Stakes – and racing’s “Triple Crown” – unless it gets the money it has been promised since last October, when the state took over NYC OTB and began another ultimately fruitless quest for an Aqueduct Racino operator.

… Federal and state investigations continue in which the Aqueduct selection process is a subject of attention.

Although Sampson has indicated that Senate documents are forthcoming, attorneys for the body have called for closing court hearings in which they are challenging the jurisdiction of the state’s Inspector General, an officer of the Executive branch, to demand certain documents, citing co-equality and precedence. http://leftatthegate.blogspot.com/2010/03/aeg-out-of-money-in-lottery-report.html (http://leftatthegate.blogspot.com/2010/03/aeg-out-of-money-in-lottery-report.html)
Tuesday, March 30, 2010
AEG Out of the Money In Lottery ReportThe New York Times has obtained, via a FOIL request, a copy of the Lottery's confidential assessment (http://cityroom.blogs.nytimes.com/2010/03/30/confidential-aqueduct-ranking-released/) of the Aqueduct bidders which was prepared in August. The Senate Democrats who held out stubbornly for Aqueduct Entertainment Group, which ranked only 4th amongst the six candidates, have a lot of 'splaining to do. And as much as Senators Sampson, Smith, and Espada would like to resist the subpoenas of the Inspector General (http://www.myfoxny.com/dpp/news/politics/Aqueduct-Probe-20100324-apx) looking into the matter - and quite brazenly and outrageously I'd say - the IG filed a strongly-worded response (http://blog.timesunion.com/capitol/archives/24357/ig-abide-my-subpoena/) to their objections insisting that they do.

In papers filed last night in state Supreme Court in New York County, Inspector General Joseph Fisch's office argued that Senate Democratic Conference Leader John Sampson, Majority Leader Pedro Espada Jr. and President Malcolm Smith are under the "misapprehension" that their status as state lawmakers means they don't have to hand over the information he's seeking.

… At once point, he notes the "disjointed, fractured state of the Senate leadership," which caused him to subpoena all three Democrats with leadership titles, even though Smith is the only person who, under the Tax Law, is authorized to enter into an MOU.

The IG has also found evidence of "extensive contact" with Senate and Assembly staffers by racino bidders.

"The Senate and individual senators have woefully failed to meet their burden of demonstrating that the Inspector General's subpoenas seek information that is 'utterly irrelevant' to this investigation and that inquiry would be 'futile'" the IG wrote.

"...In fact, such a claim would strain credulity as the Senate and its staff were undeniably involved in the process, actually interacted with executive officials, lobbyists and bidders, and obviously could shed light upon the actions that preceded the contingent selection of AEG." [Daily Politics (http://www.nydailynews.com/blogs/dailypolitics/2010/03/ig-to-senate-dems-you-just-don.html)] ...
http://www.timesunion.com/AspStories/story.asp?storyID=916998
Supporters push state for VLT deal that would bring badly needed cash to Saratoga horse track
By LEIGH HORNBECK March 31, 2010… Chanting "VLTs ASAP," thoroughbred racing fans gathered at the Hampton Inn on Tuesday to urge the state Legislature to give racing a financial boost by allowing video lottery terminals at Aqueduct Race Course.

Albany Mayor Jerry Jennings offered his own solution to the money troubles that threaten racing at Saratoga Race Course and Belmont Park. I say take Aqueduct down and make it a world class casino, build a roof over Belmont Park for winter racing and send the horses to Belmont and Saratoga," Jennings said.…

hibiscus

03-31-2010, 11:53 PM

...build a roof over Belmont Park for winter racing...

:lol:

"It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt." -Twain

Indulto

04-01-2010, 05:00 AM

http://www.thoroughbredtimes.com/national-news/2010/March/31/Aqueduct-will-stay-open-for-training.aspx
Aqueduct will stay open for training
by Paul Post March 31, 2010The New York Racing Association has shelved a cost-cutting plan to eliminate training at Aqueduct but will take drastic steps to stay open through the Belmont Park and Saratoga Race Course meetings.

Previously, NYRA said it could save $300,000 per month by shutting down Aqueduct training when racing shifts to Belmont in late April. Plans called for moving about 400 horses from Aqueduct to Belmont, Saratoga and perhaps some out-of-state tracks.

… Many industry leaders are concerned NYRA might not be able to stay open this spring and summer.

“It’s going to be close,” Rick Violette, a prominent trainer, NYRA board member, and New York Thoroughbred Horsemen’s Association president, said on Wednesday.

… Many horses soon will be heading north from Florida and taking up stall space at Belmont. If NYRA eliminated training at Aqueduct, many horses currently stabled there would have to find homes elsewhere and would not be available to race this spring at Belmont, negatively impacting its program, Violette said.

… NYRA is in such dire straits that those jobs would not have been safe even if Aqueduct training had been eliminated, Violette said. …http://gothamist.com/2010/03/31/otb_offers_gambling_kiosks_to_city.php (http://gothamist.com/2010/03/31/otb_offers_gambling_kiosks_to_city.php)
OTB Offers Gambling Kiosks To City Bars
Facing shutdown, the Off-Track Betting Corp. has come up with a Hail Mary to try to stay financially afloat: they have started pitching bar owners on installing betting machines on their sites. The OTB is in serious danger of permanently closing down all 66 of its city parlors unless it receives immediate funding from Albany before April 11. They've already laid off 1,300 employees, suspended six-figure pay, and riled up gambling senior citizens—and you mess with them at your peril.

OTB has paid consultants to pitch the machines, which they call "kiosks," to more than 100 city bars recently, promising $2,500 for startup costs, and promising owners increased profits, saying patrons will spend "more time drinking, eating, and wagering." …

… There is also the questionable matter of the money the OTB is throwing around which they theoretically don't have: they've already spent $180,000 on consulting fees over the last six months, and have also promised the bar owners a "$10,000 bonus for being one of the first 10 bars reaching $1 million bets within a year." But if you just give them a little more time surely they can turn it all around!http://www.nydailynews.com/blogs/dailypolitics/2010/03/news-of-the-day-714.html (http://www.nydailynews.com/blogs/dailypolitics/2010/03/news-of-the-day-714.html)
As shutdown looms, bankrupt OTB pitches gambling terminals to taverns to raise cash
BY Tina MooreMarch 31st 2010… Desperately scrounging for cash, the bankrupt city Off-Track Betting Corp. has been offering tavern owners thousands of dollars to open betting terminals.

… In a last-ditch effort to turn the financially strapped OTB around, paid consultants recently have visited more than 100 city bars.

… OTB notes that 56 bars near Albany and on Long Island have the kiosks, and that profits have risen.

"The kiosks are a key piece in our plan to overhaul New York City OTB's antiquated business model and move it from the 1970s brick-and-mortar version to a modern technology-based model in line with consumer preferences," said OTB spokesman David Vermillion.

… OTB President Raymond Casey said the bars that got the pitch were part of a proposal the agency was showing to banks in hopes of raising $250million through the sale of bonds.

"For this to be successful, you need to be able to reduce the cost of doing business and replace revenue streams," he said.

OTB consultant Susan Fine said her employees had obtained 100 "nonbinding commitment letters" from city bars.

Her company made $180,000 in the past six months for such tasks as sending out the letters and negotiating termination of leases at betting parlors. …

Indulto

04-01-2010, 06:35 AM

http://assembly.state.ny.us/member_files/087/20100315/ (http://assembly.state.ny.us/member_files/087/20100315/)
Letter from Pretlow to Silver 03/15/2010… NYCOTB management is bloated, expending over $12 million per year in payroll. I recommend reducing the annual administrative payroll to $1,300,000, inclusive of fringe benefits, thus resulting in net savings of $8,300,000 in salaries and $1,700,000 in fringe benefits.
Since NYCOTB is no longer the property of New York City, it is my recommendation that the 2% surcharge which currently is paid to New York City be retained by the state. This change will generate an additional $10-$15 million in revenue.
The lease at 1501 Broadway currently serving as headquarters for New York City OTB must be abandoned, to result in a net savings of $2.5 million in rental payments. The Manhattan office currently houses the telephone operations, which should be moved to Aqueduct Racetrack along with the scaled-down management team.
NYCOTB should discontinue its television production to yield a net savings of $2 million. I've spoken with Capital OTB management and they are willing and capable of sending the signal they produce to the city to be shown on channel 71, at virtually no cost.
The city of New York has over 40,000 police officers who do a capable job of patrolling the entire city. I would urge that we eliminate the security forces employed by OTB, with the exception of those necessary for transferring of money. Allowing the city police to do their job would result in a net savings of $2 million.
NYCOTB currently operates 54 branches. It is my recommendation that the three branches on Staten Island be consolidated into one, which would result in the saving of over $1 million. I am also advocating the closure of at least five unprofitable OTB branch locations, including 991 2nd Avenue, which alone loses over $1 million per year and is attached to another OTB with a restaurant. These closings would generate an additional $5 million in savings.
Overtime at NYCOTB has run rampant. In an effort to save on overtime payments it is my recommendation is to work with the unions to achieve work rule changes. Currently individuals receive double time on Sundays if they work a Saturday. My recommendation is to eliminate Saturday-Sunday work assignments and reduce the number of part-timers. I would recommend that branch OTB clerks' work schedules consist of 3 successive 12 hour days, being Sunday- Monday-Tuesday or, Thursday-Friday-Saturday. Wednesday should be staffed by part-timers or per diem workers. The same should hold true for managers at the OTB parlors. This change would save $3 million in OTB clerk's payroll and $2 million for OTB management's payroll, for total saving of $5 million in overtime.
Also recommended is that the State Office of General Services examine all leases with the intention of renegotiation. If a landlord is uncooperative, NYS should consider closing that location. I estimate a savings of at least another $1 million from renegotiated leases.
NYCOTB currently operates a 50,000 square foot warehouse in Queens. Not seeing much need for this warehouse, my recommendation is to close the warehouse and retain five employees which should be assigned to the Aqueduct location. This would generate a $3 million savings.
NYCOTB currently employs approximately 15 individuals per branch, an extremely rich staffing pattern. With the work rule changes I am urging, the numbers can be limited to no more than nine OTB employees per location on average, in order to save several million dollars.
NYCOTB should reduce the usage of out-of-state tracks by at least 50% and show more in-state races. This will mitigate the eliminated payment for hold harmless and generate a net savings of $7 million. New York City OTB currently spends $37 million on simulcasting. Given its financial distress and continued impending closure, the contracts OTB has for receiving telecasts ought to be considered eligible to be renegotiated to generate a saving of approximately $3 million more.
NYCOTB currently has 80 vehicles. It is my recommendation that at least 60 of them be immediately sold at an average of $15,000 per vehicle. This and the annual cost of up keep savings of $6,700 would generate a $1 million cash infusion from the sale and a $400,000 annual savings on maintenance and insurance.
Payroll should be handled by the state comptroller's office or outsourced, creating additional savings of $1 million.

Although it is not part of this proposal, I believe that the six OTB corporations, seven privately owned racetracks and the NYRA should collectively purchase or create a tote company. The cost to each entity would be less than $100,000, but the benefits to be derived are limitless. New York State is losing over $300 million in handle to out-of-state ADW (advance deposit wagering) companies with better coordination of the racing products and control of the tote. We should recoup a large portion of the estimated 300 million of handle going out of state or $51 million takeout that we are not receiving now.

Another recommendation, which would require legislation, would be to institute a statewide OTB channel to provide everyone in the state with the opportunity to view all races and to encourage fans and potential fans to do business with their local regional OTBs. If this were to be undertaken, it is my belief that thousands of new customers will be created and literally, hundreds of thousands of dollars in new revenue generated.

NYCOTB has several large outstanding liabilities. I recommend that the outstanding payments owed to racetracks be extended over a ten-year period, except for what's owed to Monticello, which should be paid in full over a four-year period. Amounts owed to the Thoroughbred and Standardbred Breeding Funds should be spread over three years and payments due to the New York City employee benefits program and New York City employees' retirement system should be spread over five years.

I recognize that in these extremely difficult economic times, some of the measures being proposed here appear harsh, but the reality is that if these are not done and not done expeditiously, New York City OTB will be forced to close its doors, leaving all 1,337 employees unemployed. The cost savings I've identified equate to an annual expense decrease or conversely, a revenue increase exceeding $56 million, which, moves the company from a $12 million annual loss to a $44 million annual profit. …http://businessofracing.blogspot.com/2010/03/some-sensible-ideas-for-nyc-otb.html (http://businessofracing.blogspot.com/2010/03/some-sensible-ideas-for-nyc-otb.html)
Some Sensible Ideas for NYC OTB
By Stve Zorn 03/31/2010
COMMENT… General Motors would make a very nice profit f it didn't have to pay for parts and raw materials. Lehman Brothers would have been profitable if it didn't have to pay interest on the money it borrowed to make its very bad bets in the financial markets. In other words, any company can make a profit if it doesn't pay for its necessary inputs. And for NYC OTB, those inputs are the races. To expect NYRA and other tracks to supply races to OTB for free is just like expecting a steel company to give General Motors sheet steel for free and say pay us a percentage of whatever profit you might make, or for a bank to lend money and say, don't pay us any interest unless you're profitable. Ain't gonna happen in other industries and shouldn't happen in racing.

Some Vegas race books actually pay more to the tracks than NYC OTB does, and still manage to stay in business. … think we should give the signal away to them too?http://www.syracuse.com/news/index.ssf/2010/03/onondaga_county_might_put_its.html
Onondaga County might put its money on off-track betting to ease fiscal crisis
By Tim KnaussMarch 30, 2010
Syracuse, NY -- Cash-strapped Onondaga County, which has resisted off-track betting for decades, may finally be ready to play the poni
The chairman of the county Legislature initiated talks several weeks ago with two competing OTB corporations interested in coming here, and he plans to ask the Legislature to approve one or the other.

This time around — unlike previous efforts that ended when the Legislature rejected OTB — Chairman James Rhinehart said he thinks there are enough “yes” votes to approve the local betting parlors.

… If OTB opened here, it would generate at least $1 million in annual revenue for Onondaga County, according to the two operators vying for the local business.

… But if Onondaga County joins one of the state’s six nonprofit off-track betting corporations, it will enter a business in decline. The amount of money wagered on horse races — the “handle” — has been dropping for a decade. Between 1999 and 2008, OTB betting declined 29 percent after factoring in inflation, according to a state task force.

… “The OTB business, I can tell you, is beyond tough,” said Martin Basinait, president and chief executive officer of Western Regional Off-Track Betting Corp. (http://www.batavia-downs.com/) in Batavia. “The players are going away. Young players are not horse players. Young players are casino-style gaming players.”

… Two OTB corporations are interested in coming to Onondaga County, one of the most populous of 13 counties that don’t have OTB. Both also expressed interest in 2004, the last time the county issued a request for proposals.

… John Signor, president and CEO of Capital District OTB, said he envisions developing in Onondaga County at least one major OTB facility, which might include a sports bar and restaurant. Capital also would look for opportunities to establish smaller OTB branches, and EZ Bet terminals in bars or restaurants. “The more bets you generate, the higher your return will be,” he said.

Donald Groth, president and CEO of Catskill OTB, said he would like to build “probably two or three very nice facilities” in Onondaga County. Catskill typically leases existing space, so locations would depend on where space was available, he said.

… Six years ago, Western OTB joined Capital and Catskill in the competition to enter Onondaga County. Western offered to spend several million dollars to build an OTB branch here. But this year, when Rhinehart came knocking, Basinait told him Western OTB was not interested.

Basinait, of Western OTB, predicted the number of people interested in horse racing will continue to dwindle. …

… Rapp conceded that OTB is “kind of an old guys thing” that may not have a long future. For the time being, however, it represents easy money at a time when the county needs some.

Neither Capital nor Catskill would require the county to spend any money, she said. …

Indulto

04-02-2010, 11:00 PM

http://www.drf.com/news/article/111886.html (http://www.drf.com/news/article/111886.html)
Bills seek to avert OTB closure
By Matt Hegarty 4/2/2010… The bills include several that would allow the state's six OTB companies to operate electronic gambling machines, a bill that would combine Nassau OTB with New York City OTB, and a bill introduced on Friday that would transfer control over the OTB company's operations to a state agency that would subsequently award a management contract to a private company.

The transfer bill was introduced by Rep. J. Gary Pretlow, the chairman of the Assembly's Racing and Wagering Committee. The legislation, introduced while the legislature is on holiday recess, would put control of the OTB corporation under the Non-Profit Racing Association Oversight Board, which was set up in 2008 to oversee the New York Racing Association, the not-for-profit operator of Aqueduct, Belmont, and Saratoga.

The bill includes a provision that would transfer control of the OTB company's wagering accounts to the oversight board, opening up the possibility that the board would assign the management of those accounts to the New York Racing Association. Over the past two weeks, NYRA's lobbyists have offered to take over the corporation's Internet and telephone account-wagering operations, but that offer has been rejected by Gov. David Paterson.

A NYRA official who has been close to the lobbying effort said that management of the telephone and Internet betting accounts would mitigate any negative impact of the OTB's closure on April 11 while also giving NYRA an additional revenue stream to address its own financial problems.

"If all they did was graft the phone and Internet wagering to us, and let the parlors …http://www.bloodhorse.com/horse-racing/articles/56249/legislation-would-transfer-nycotb-operations (http://www.bloodhorse.com/horse-racing/articles/56249/legislation-would-transfer-nycotb-operations)
Legislation Would Transfer NYCOTB Operations
By Tom Precious April 2, 2010Legislation introduced April 2 would permit a New York state government panel to take over the operations of the New York City Off-Track Betting Corp. if it shuts down.

… Finally, the bill would expand the financial review powers of the Non-Profit Racing Association Oversight Board beyond NYRA to also include the NYCOTB. The panel, now headed by Robert Megna, who is Gov. David Paterson’s budget director, has sweeping powers to approve such things as contracts and certain spending.

The Blood-Horse last week reported on a plan by Assembly Democrats to permit NYRA to assume NYCOTB’s Internet and phone wagering business.

It was a plan dismissed April 1 by Paterson. On a radio interview, Paterson poked at NYRA, saying it has “not demonstrated any wizardry in financial management.” Referring to the lost revenues for NYCOTB, he said permitting NYRA to assume those wagering account businesses from NYCOTB “is really, in a sense, shutting it down.”

“We have a different plan. It hasn’t been worked out,” Paterson said on WOR radio. “It may go under,” he added of NYCOTB’s future.

Noting the state’s fiscal plight, which has Albany facing a $9.2 billion deficit, Paterson said of some calls to provide a bailout of NYCOTB: “Right now, the state is in no position to help anyone.”

… The bill introduced by Pretlow, as of now, has not yet been picked up in the Senate.

It is uncertain how the oversight board could operate NYCOTB – or if it would contract the business to another entity, such as NYRA -- if Pretlow’s bill passes and NYCOTB goes out of business. Pretlow could not be reached for comment.

The legislation says the oversight board could take over the operations if NYCOTB is terminated as an entity, or “declines to operate” unless it is the result of “strikes, acts of God or other unavoidable causes.”

The bill also would require NYRA and NYCOTB to “jointly negotiate all simulcasting contracts” with out of state entities. And it bans any current or former director or officer of the OTB from serving on the government oversight panel. …http://blog.timesunion.com/capitol/archives/24461/frucher-on-saratoga-races-will-likely-go-on/ (http://blog.timesunion.com/capitol/archives/24461/frucher-on-saratoga-races-will-likely-go-on/)
Frucher On Saratoga: Races will likely go on
by Rick Karlin April 2, 2010While there have been some dire warnings about whether the Saratoga track season will proceed if the bankrupt New York City OTB mess isn’t cleaned up, OTB Chairman Meyer “Sandy” Frucher offered some words of reassurance this morning on Fred Dicker’s show on Talk 1300.

The track season could be canceled, Frucher said, “If all things went wrong,” but he said he was confident that some way would be found to have a season.

“It is conceivable that NYRA could run out of cash. On the other hand I don’t think that any reasonable executive or legislature at the end would not figure out a way to accommodate for it,” Frucher said.

“It is possible yes. Is it probable? In my judgment, people will sit down in good faith to come up with solutions to these problems … I don’t think anyone is going to allow the season not to happen. Why? because it’s all about jobs.”

… Frucher’s words of reassurance come after Assemblyman Gary Pretlow also said he believed the track season would proceed regardless

Indulto

04-06-2010, 04:48 AM

http://sports.espn.go.com/sports/horse/columns/story?columnist=moran_paul&id=5057943 (http://sports.espn.go.com/sports/horse/columns/story?columnist=moran_paul&id=5057943)
Beauty amid madness
By Paul Moran April 5, 2010… A space in the Aqueduct grandstand once filled with horseplayers on Wood Memorial days past, but for years closed to the public is a dark, empty wound, gutted more than eight years ago in anticipation of the installation of 4,500 money-gobbling, prosperity producing video lottery terminals that would have created a Utopian economic climate for those who race horses in New York and sent $1 million daily to the state's treasury. Though it should have been in full bloom long before now, it festers in an intellectual and moral vacuum — politics in New York — that rebuffs reason, responsibility at every opportunity and threatens to swallow what remains of the racing business here. Scattered in storefronts and tele-theaters in the nation's largest city are some 13,000 employees of the New York City Off-Track Betting Corp., who have been notified that their employment will be terminated on April 11 unless the state, which owns the franchise, solves a dire financial predicament.

… New York Racing Association officials, denied the designation of an operator for the long-ago proposed Aqueduct casino by Gov. David Paterson's disingenuous, if not dishonest and subsequently reversed selection of a rather shady group of his supporters and cronies as well as operating funds promised by the state to sustain it through the interim, say they will probably struggle through the summer meeting at Saratoga before going broke. Should New York City OTB be allowed to fail, however, all bets are off.

It was reported during the week prior to the Wood that with the legislature on holiday recess a plan was introduced by Assembly Democrats to permit NYRA to assume NYCOTB's internet and phone wagering business. This makes perfect sense to everyone except the intellectually vapid governor, who two days before the Wood — appropriately on April Fools' Day — dismissed the proposal out of hand. In a radio interview, Paterson — a Democrat without political allies — said that NYRA has "not demonstrated any wizardry in financial management," which is like Curly calling Larry and Moe stooges. "We have a different plan," Paterson said. "It hasn't been worked out." This would suggest that, as in most things germane to the economic future of New York, Paterson has no plan, nor the tools to formulate one.

… the emperor has no cloths.http://www.nydailynews.com/opinions/2010/04/05/2010-04-05_racing_to_oblivion.html (http://www.nydailynews.com/opinions/2010/04/05/2010-04-05_racing_to_oblivion.html)
Racing to oblivion: Albany has managed to make a loser of $1 billion-a-year OTB
Editorial April 5th 2010… Gov. Paterson has done nothing about this immediate crisis except to lamely throw OTB into federal bankruptcy court. …

… In desperation, Silver, Sampson, Skelos & Co. will likely try to prop up OTB for a month or two with an infusion of cash. They must not.

It would be shameful to pour millions of tax dollars into a bookie operation - one that is simply a conduit for subsidizing a dying racing industry - at a time when the state has a $9 billion deficit and is about to slash funding for vital services.

Using taxpayer money to fund a gambling operation would be bizarre under any circumstances, and it would be amoral while mass transit, schools and police are targeted for huge cutbacks.

… There is only one solution: Paterson and the Legislature must authorize OTB to stop making payments to tracks and set a target of, say, six months to comprehensively overhaul racing and wagering in New York - with the imperative goal of getting taxpayers off the hook.

Gambling must be privatized, with tracks and other purveyors paying government for the right to operate, and not the other way around.

NYRA, for example, wants to take over Internet and phone gambling on horses from OTB. Before that happens, the state must explore whether it's possible to break NYRA's stranglehold and put the franchise out to bid. Then, the state must insist that the gold mine of taking Internet and phone bets has a price - large enough, at least, to cover the $700 million cost of closing OTB. …http://www.nydailynews.com/news/2010/04/03/2010-04-03_dems_to_blame_for_aquemuck_debacle_silver_tells _probers.html (http://www.nydailynews.com/news/2010/04/03/2010-04-03_dems_to_blame_for_aquemuck_debacle_silver_tells _probers.html)
Assembly Speaker Sheldon Silver says Democratic leaders pushed hard for Aqueduct racino contract
BY Kenneth Lovett April 3rd 2010In secret testimony before the state inspector general's office, Assembly Speaker Sheldon Silver blamed Senate Democrats for the disastrous Aqueduct racino deal, the Daily News has learned.

In hour-long sworn testimony, Silver fingered state Senate Democratic leaders for pushing hard for the politically connected Aqueduct Entertainment Group to win the lucrative racino contract, a source briefed on Silver's testimony told the Daily News.

… Silver insisted to investigators he didn't have a heavy favorite to run the racino and that his only concern "was not to be embarrassed," the source said.

The ultimate winner "wasn't a major concern of his," the source said: Silver was more interested in making sure the cash-strapped state would rake in top dollar.

A Silver spokesman declined to comment but has said the Assembly was cooperating with the investigation. …

Indulto

04-07-2010, 02:56 PM

http://gothamist.com/2010/04/06/state_may_actually_help_struggling.php (http://gothamist.com/2010/04/06/state_may_actually_help_struggling.php)
State May Actually Help Struggling OTB... state lawmakers are developing a plan that would thin out OTB management and cut the OTB's payments to the state's racing industry by about 10%. Assemblyman Gary Pretlow said, "We have to do something before the middle of next week, otherwise OTB goes out of business totally."

... However, sweeping reforms will be needed. "What's there now I don't trust to undertake the reforms that are needed," said Pretlow. "I think we need to do a housecleaning from the top to the bottom there." Despite all the work, the new deal may not be in place before the layoffs go into effect on Sunday. OTB Chairman Sandy Frucher said, "There's been some constructive dialogue, and I'm hopeful we'll be able to work something out."http://www.nytimes.com/2010/04/07/opinion/07wed4.html (http://www.nytimes.com/2010/04/07/opinion/07wed4.html)
We Won’t Bet on OTB
Editorial April 6, 2010After years of mismanagement, a work force padded with patronage employees and a dwindling public interest in wagering on the horses, the corporation that runs New York City’s off-track betting parlors filed for bankruptcy protection late last year. Unless something is done, the betting parlors could start closing next week. Some lawmakers in Albany are calling for a taxpayer bailout. That is a bad idea. The New York City Off-Track Betting Corporation must find a way to pay its operating costs or the state will have to pay to close it down.

… Gov. David Paterson picked the businessman Meyer Frucher to be the chairman of the OTB last year. Mr. Frucher was asked to create a plan to fix the city’s betting operations. He argues that with more creative management — and fewer employees — it can make enough to justify staying in business.

He has proposed shutting all but about a third of the city’s 68 betting outlets and cutting the number of workers from 1,300 to less than 700. He points out that even if these facilities were closed completely, the city and state would still be liable for about $700 million in pension and other obligations. Mr. Frucher, who has said it would be “wrong” to ask for direct support, wants the state to guarantee tax-free bonds to finance a less labor-intensive operation, with betting terminals placed in sports bars and other “appropriate” places. Eventually, he wants to turn OTB over to a private corporation.

… Mr. Frucher’s plan has some appeal. It does not draw on state funds immediately, and it could keep the business alive long enough to pay out the promised retirement and buyout packages. It might also help resuscitate the horse racing industry that is so vital to New York’s upstate residents. Those are all big ifs. But, so far, it’s the best we’ve heard.http://www.nypost.com/p/news/opinion/editorials/to_the_glue_factory_fdXfo9902TR44kOOWOUS8O (http://www.nypost.com/p/news/opinion/editorials/to_the_glue_factory_fdXfo9902TR44kOOWOUS8O)
To the glue factory!
EDITORIAL April 5, 2010… The entire "three men in a room" process -- awarding the contract solely on the joint recommendation of the governor, the Senate president and the Assembly speaker -- may be unconstitutional.

That warning comes in a court filing by state Inspector General Joseph Fisch -- who's investigating how the politically juiced but manifestly unqualified AEG (temporarily) won the contract.

The "creative three-men-in-a-room format," says Fisch, raises a separation-of-powers issue that "creat[es] accompanying constitutional concerns about the constitutionality of the entire scheme for selecting a VLT operator."

That's because the state Constitution expressly forbids gambling activities unless "authorized and prescribed by the Legislature" -- which, legally, means a majority vote of both houses.

But under a wholly unprecedented memorandum of understanding, the Aqueduct contract is to be awarded by those three officials.

"The choice is not subject to submission before any legislative body or subject to enacting legislation," writes Fisch. "No subsequent vote on the selection of the operator by the entire Legislature is contemplated or required."

But since, under the Constitution, "the Legislature cannot delegate its legislative powers to individual members, such as the [Assembly] speaker or temporary [Senate] president," that could make the entire selection process patently illegal.

And there's yet another legal problem involved: Under the memo of understanding, the only one on the Senate side legally authorized to decide the contract is Temporary President Malcolm Smith.

Yet "public documents and other evidence reveal that [Democratic Conference leader John] Sampson was . . . the ostensible final decision-maker for the Senate," writes Fisch. ...

badcompany

04-08-2010, 08:18 AM

Nice work, Indulto.

The guy in this vid does a great job of describing the "Three Men in a Room" process in Albany:

(Hat Tip to Greyfox for the youtube tutorial)

4kmKjTqs4pE

Indulto

04-08-2010, 10:39 PM

Thanks for the feedback, BC. It still amazes me how many views this thread continues to attract.

http://www.bloodhorse.com/horse-racing/articles/56349/new-yorks-otb-facing-april-11-shutdown?source=rss (http://www.bloodhorse.com/horse-racing/articles/56349/new-yorks-otb-facing-april-11-shutdown?source=rss)
New York's OTB Facing April 11 Shutdown
By Tom Precious April 8, 2010… Talks are going down to the wire over a temporary stop-gap plan to provide assistance to the money-losing OTB, which is owned by the state of New York that is itself is facing a $9.2 billion deficit.

… “I think we’re close,’’ said Sen. Eric Adams, chairman of the Senate racing committee. “We’ve got until Sunday, and I don’t believe that OTB is going to shut down.’’

Some in the industry, as well as the Legislature, say an OTB shutdown would be acceptable, leaving room for NYRA and other private entities to come forth and take over parts of the OTB operations. The Assembly already floated a plan to let NYRA run the OTB’s wagering platforms.
… The Senate and Assembly left town April 8 and won’t be back until April 12, leaving no time in between to pass any legislation to resolve the financial matter. But Frucher said the OTB just has to have “sufficient assurance’’ before the close of business April 11 to be able to remain open the next day.

Frucher said a resolution will have to involve “a distribution of pain’’ across the industry.

“The discussions are involving cuts to both the industry as well as to OTB,’’ he said. “The reality is that there are parts of the industry that can sustain those cuts,’’ he added, referring to tracks with VLT revenues.

… He said a resolution of NYCOTB’s issues should include “recognition that there is a NYRA problem that needs to be addressed.’’

… The state is in no position to provide direct financial assistance to NYCOTB. State budget plans already call for cuts to schools, hospitals, and others that rely on government assistance, and no one in Albany has any stomach, in an election year, to be perceived as providing public cash to a gambling enterprise during a fiscal crisis in the government.

Frucher said the talks have come down to “who gives and who gives more and how long is that sustainable.’’ …http://www.saratogian.com/articles/2010/04/08/news/doc4bbd389274aa5166479569.txt
New York state struggles with OTB bailout
By PAUL POST April 08, 2010… The head of a state OTB task force says the firm can stay open, without state money, by making "efficiencies" within OTB and eliminating payments it’s required to give harness tracks that already benefit from huge video lottery terminal revenues.

"Then if you want to reform the whole system you have a couple of years to do it," said John Van Lindt, who chaired the state Task Force on the Future of Off Track Betting. The panel held a series of hearings last year and filed a report recommending how New York’s troubled OTB system can be fixed.

"NYRA gets $100 million a year from all the OTBs," Van Lindt said. "That’s the NYRA purse pool. Without that $100 million, NYRA can no longer pay purses — period."

Most observers agree OTB has a top-heavy payroll with too many high-paid managers and executives. …
… In 2008, the state approved an increase in the funds harness tracks get from VLTs.

… A New York City OTB closure might send even more money out of state.

"Out-of-state firms would rush in to sign people on and take bets from them," Groth said.

… Van Lindt said he believes New York City OTB will stay open, even if the Legislature doesn’t take action until early next week.

"All they’re looking for is assurances that they have a deal," he said.What politician seeking re-election is going to vote for a bail-out under current circumstnces?

Even if OTB customers started betting with out-of-state ADWs, wouldn't NYRA get a larger shar of those wagers than it did from OTB? It might actually be an opportunity if many could be lured to NYRA-1 with a good promotion. How to replace whar OTB pays to local governments is the hang-up. Maybe Twinspires has enough of a margin to make a paid takeover of OTB accounts worth their while with upfront money going to NYRA.

Another possible scenario might be NYCOTB shutting down and NYRA's subsequently suspending the Belmont meet the day after Belmont Stakes to be able to conduct the Saratoga meet as planned with the remainder of the stakes at Belmont run at Saratoga along with 12-race cards on weekdays. while Monmouth is closed.

Indulto

04-10-2010, 02:27 PM

http://www.thoroughbredracingradionetwork.com/index.php?option=com_content&task=view&id=25&Itemid=41 (http://www.thoroughbredracingradionetwork.com/index.php?option=com_content&task=view&id=25&Itemid=41)
Byk Interviews Pretlow (Audio)

http://www.saratogian.com/articles/2010/04/09/news/doc4bbe8e5032fd8742469229.txt (http://www.saratogian.com/articles/2010/04/09/news/doc4bbe8e5032fd8742469229.txt)
Plan to save NYC Off Track Betting would 'basically put NYRA out of business' before Belmont Stakes
By PAUL POST April 09, 2010… Under one proposal, OTB’s statutory payments to New York Racing Association and the breeding industry would be reduced 15 percent.

"Saving the parasite while killing the host is not a sensible strategy," said Barry Ostrager, New York Thoroughbred Breeders Inc. president and a NYRA board member. "Unless there is a mechanism for making up for lost VLT (video lottery terminal) revenue NYRA was supposed to receive, a 15 percent ‘haircut’ would basically put NYRA out of business by the time of the Belmont Stakes."

Of course, that would also spell doomsday for the 2010 Saratoga Race Course meet that’s scheduled to open July 23.

"I can’t believe state government would do this," Ostrager said. "However, this is what I’m hearing has the most traction. I’m hoping that reason and sanity will prevail. But having observed other functions of state government over the past six months, that’s not a given."

… OTB has to be kept open because closing it altogether would deprive NYRA and breeders of a major revenue source. The state should keep OTB afloat until a plan is worked out to have NYRA take over OTB’s telephone and Internet wagering operations, he said. …http://www.drf.com/news/article/112076.html (http://www.drf.com/news/article/112076.html)
New York OTB puts off closing plan a week
By Matt Hegarty 4/9/2010… "We have been told that there is good-faith, constructive dialogue going on between the executive branch and the legislative branch, that ideas have been put on the table, and that those ideas are being worked into the language of legislation, and that that legislation can be passed early in the week," Frucher told the board. "That being the case, it would be irresponsible . . . for us to go forward with shutting the doors, because that is an act that cannot be reversed."

Details of a rescue plan remain unclear. Legislators working on the plan did not return phone calls on Thursday and Friday.

… Efforts to rescue New York City OTB are complicated by a wide range of factors. New York State is facing a $9 billion budget deficit, creating resistance to any solution that requires taxpayer assistance. The state's harness and Thoroughbred industries are blocking any cut in the statutory payments they receive from the company, In addition, New York City OTB officials themselves acknowledge that the corporation's problems are largely structural and in need of a massive, politically challenging overhaul.

… Frucher criticized media coverage of the corporation's plight, and said that most of the complaints about New York City OTB were based on a misreading of the structural problems. All three of New York's major daily newspapers have run recent editorials that have cautioned the OTB from seeking taxpayer assistance, and several have called for the OTB to be shutdown permanently.

"It's time people started working together, rather than casting aspersions," Frucher said.http://www.thoroughbredtimes.com/national-news/2010/April/09/NYC-OTB-to-remain-in-operation.aspx (http://www.thoroughbredtimes.com/national-news/2010/April/09/NYC-OTB-to-remain-in-operation.aspx)
New York City OTB postpones shutdown for one week
by Paul Post April 09, 2010… Gov. David Paterson’s plan to save OTB calls for a 48% reduction in payments to Thoroughbred breeders, which could bring that industry to its knees.

Harness tracks with video lottery terminals, such as Saratoga Gaming & Raceway, would take the same size hit, and the New York Racing Association, which runs Saratoga Race Course, still would have to take a 15% cut in OTB revenue.

“It’s not going to be a long-term solution, it’s going to be an interim solution,” OTB Chairman Meyer “Sandy” Frucher said. “This really requires surgery.”

The state Senate wants to impose a 1% surcharge on all winning bets that it says would keep reductions to 15% across the board.

“It remains to be seen whether that stays on the table,” a Senate staffer said. “They’ll [state officials] definitely be working through the weekend.”

… Ostrager said a 48% cut in OTB revenues to breeders would put that industry out of business for at least a decade.

“It could be forever,” he said. “We’re really dealing with a serious crisis. This is crazy time. There’s no other way to describe it.” …

badcompany

04-11-2010, 01:47 AM

Thanks for the feedback, BC. It still amazes me how many views this thread continues to attract.

What's truly amazing is that absolutely nothing has been done or decided.

There's no plan for OTB and the racino contract hasn't been awarded. Has there been any explanation for why the contract just can't be given to the 2nd place finisher? That's how a dq works in horseracing.

I believe it was OTM Al who gave the correct answer, even before Patterson's buddies' group got taken down: Restarting the bidding process creates a whole new round of graft.

PaceAdvantage

04-11-2010, 09:42 PM

Indulto

04-12-2010, 04:16 AM

I find it interesting that all the people that love to post how corrupt and inept the NYRA is, are so tight lipped when it comes to criticizing NYCOTB or government authorities themselves who let NYCOTB get to this point.

Where have all the critics gone here on PaceAdvantage?Was the above an extension of your current Zen/RA snit, PA, or are you just trying to light a fire here? ;)

The PaceAdvantage posters motivated to try and organize horseplayers did so based on the premise that the game of racing, though broken, was still fixable. The envisioned strength in numbers that could either influence or intimidate industry leadership into correcting its course never materialized due to apparent lack of interest. The situation in New York is just one more illustration that the dynamics of self-interest are too intertwined with inertia and incompetence for the industry to survive intact.

The NY politicians ignoring if not trampling the interests of their resident horseplayers -- and those of horseplayers nationwide given the historical impact and popularity of NY racing -- are doing so with impunity because there’s never been any indication that OTB and NYRA customers will stop betting regardless of the indignities imposed on them.

So what’s the point in any more whining about what few are willing to do anything about? As “Pogo” once enlightened, “We have met the enemy and it is us.”

PaceAdvantage

04-12-2010, 04:30 AM

Was that supposed to be an answer to my question? If so, I am wholly unsatisfied.

aaron

04-12-2010, 07:50 AM

Was that supposed to be an answer to my question? If so, I am wholly unsatisfied.
PA,
The politicians in NY are more the problem than the solution. NYRA is just another branch of government even though it is considered a private non profit organization. It has been dysfunctional for over 30 years. The current administration,no matter how well meaning it is, has no power and at this point. I have no idea what they are doing that benefits the player.
Between the government and NYRA we have watched racing in NY decline to an all time low. The product has become more like Finger Lakes than what we know as NY racing.

aaron

04-12-2010, 08:17 AM

I suggest that anyone interested in NY racing read Vic Zast's commentary at Horse Race Insider.

Indulto

04-12-2010, 12:33 PM

I suggest that anyone interested in NY racing read Vic Zast's commentary at Horse Race Insider.http://www.horseraceinsider.com/blog.php/Zasts-TrackWords/comments/2010-04-12victims-game/#comments (http://www.horseraceinsider.com/blog.php/Zasts-TrackWords/comments/2010-04-12victims-game/#comments)
Victim’s Game
By Vic Zast April 12, 2010 … the solution that New York State will produce is borrowed time, not long term fixes to the sport’s core irritations. In turn, having benefited from something done hastily on a temporary basis will give license to horse racing’s leaders to return to their business as usual. And if that occurs, a few years from now, once the cosmetic effect of whatever’s been done is done, prepare for more of the unacceptable policies of “who struck John” and “woe is me.”

What the math portends is that NYRA, with its costs at the level they are, can’t sustain purses to the level it has without subsidies. Yet, Susan Bagyura, author of the The Visionary Leader, a self-help book for executives operating in a time of adversity, advises the industry to escape its reliance on outside forces, no matter the effect of self-realization. Controlling OTB might help matters, but savvy observers doubt NYRA’s will to bring about true change. …

Java Gold@TFT

04-14-2010, 04:51 PM

Sorry to post this before you Indulto but it's just tooooooo stupid.

http://blog.timesunion.com/capitol/archives/24926/paterson-legislatures-exit-appears-to-doom-nycotb/

“Today, after weeks of intensive negotiations with Senate and Assembly leadership, I submitted agreed upon legislation that provided for an interim solution to keep New York City Off-Track Betting Corporation (NYCOTB) operating. This plan included no additional commitment of taxpayer dollars. However, the Legislature adjourned before acting on the bill.

“The Board of Directors of NYCOTB resolved to cease operations no later than close of business April 18, absent action by the Legislature to solve the Corporation’s immediate cash flow problem by making adjustments to payments to the industry. Given that stakeholder disagreement prevented this legislative action, I expect the board will carry out its planned shutdown as reflected in its resolution.

“Consequently, the closure of NYCOTB will have a profound impact on the 1,300 employees and their families. I am deeply saddened that we could not find a workable solution during this fiscal crisis to save any of these jobs.

“I will continue to work with my legislative partners and the stakeholders to keep racing viable in New York State.”

badcompany

04-14-2010, 05:17 PM

[QUOTE]the Legislature adjourned before acting on the bill[\QUOTE]

Can you blame'm? It's a nice day.:bang:

hibiscus

04-14-2010, 06:21 PM

It’s difficult to imagine that the vast bulk of the wagering dollar won’t find its way into the pari-mutuel system through some other channel. Most likely a channel that has a more intelligent distribution of the cut. Any shutdown of NYCOTB has to be a net positive for New York racing.

Spendabuck85

04-14-2010, 07:21 PM

Efforts to pass legislation providing short-term rescues for New York City Off-Track Betting Corporation and the New York Racing Association collapsed on Wednesday afternoon, according to officials involved in the effort, resurrecting the possibility that the OTB company would shut down as early as Monday.

Legislators pulled their support for the bill because of concerns raised by unionized mutuel clerks over the size of severance and pension packages being offered to workers who are expected to be terminated as part of an overall restructuring of the OTB company, according to the officials.

In addition, the bill would have advanced approximately $17 million to the New York Racing Association to address what the association has said is a pressing need for cash prior to the late-July start of its Saratoga meet in upstate New York.

Full article at drf.com
http://www.drf.com/news/article/112168.html

Indulto

04-14-2010, 07:38 PM

Sorry to post this before you Indulto but it's just tooooooo stupid. ...JG,
Glad to see that others are equally interested.

The fact that I haven't heard a single criticism of Pretlow's proposal from anyone other than Paterson tells me it's the only better alternative to NYCOTB's closing altogether.

Indulto

04-15-2010, 03:05 AM

http://www.nydailynews.com/news/2010/04/14/2010-04-14_big_payouts_for_otb_workers_to_get_hefty_severa nce_raises_in_secret_deal.html (http://www.nydailynews.com/news/2010/04/14/2010-04-14_big_payouts_for_otb_workers_to_get_hefty_severa nce_raises_in_secret_deal.html)
OTB workers to get hefty severance, raises in secret deal
BY Kenneth Lovett 04/14/2010… The city's OTB and its major union, District Council 37, recently made a secret deal promising hefty buyouts and pay hikes of as much as 20%.

In exchange, the union conceded to major job reductions and an end to overtime, a copy of the deal shows.

The agreement threatens to torpedo an OTB bailout plan being hammered out by Gov. Paterson and lawmakers that would slash the organization's required payouts to the state's racing industry.

"We can't afford it," said Assembly Racing and Wagering Committee Chairman Gary Pretlow (D-Westchester).

OTB officials say the concessions would more than pay for the extra payouts to employees.

Under the deal, the 995 union employees would be slashed to no fewer than 412.

Full-time employees would be guaranteed $15,000 severance packages for voluntarily leaving.

Employees who remain on the job would be in line for 8% raises.

Many would receive additional hikes of up to 12% for working Sundays without overtime.

The agreement is contingent on the state bailout, and on lawmakers giving the thumbs up on OTB's plan to borrow up to $250 million.

Pretlow said the new borrowing won't be in any final agreement between the governor and Legislature.

It's unclear whether the union would agree to the concessions without the extra borrowing. …http://www.businessweek.com/ap/financialnews/D9F2T7UG0.htm (http://www.businessweek.com/ap/financialnews/D9F2T7UG0.htm)
Governor to offer proposal to bail out NYC OTB
By MICHAEL VIRTANEN 04/14/2010… Paterson said the proposal would keep OTB from having to make regular dark day payments to tracks, create some new revenue sources, require cuts in management and consultant expenses and establish an early retirement and severance provision for workers.

He said it would advance revenue to keep the New York Racing Association afloat through its summer thoroughbred racing season at Saratoga and Belmont, which would be repaid from receipts anticipated from a future racino at its Aqueduct track. The measure would also institute a 15 percent across-the-board cut in OTB payments to NYRA, breeders and tracks for a year.

"It will address the problems for some period of time, but the feasibility of the program working, we have not found the solution," Paterson said. "Basically what it does is it shares the burden."

… "We have a plan to keep OTB afloat for another year until we can make some permanent decisions about how to restructure," Assembly Speaker Sheldon Silver said Tuesday.

… On Tuesday, the Civil Service Employees Association filed a contract grievance following Paterson's decision to withhold pay raises for state workers in the short-term spending measures to keep the state government running in the meantime.

The union said that affects 70,000 of its members working in the executive branch.

"We are already creating reductions just by the fact that we are cutting into the deficit in our biweekly extenders," Paterson said, adding the union could just wait for the raises until the budget is passed. "Every time you ask for cooperation, you either get no cooperation or a lawsuit, and now a grievance."http://www.thoroughbredtimes.com/national-news/2010/April/14/Aqueduct-gaming-expected-to-take-another-3-months.aspx (http://www.thoroughbredtimes.com/national-news/2010/April/14/Aqueduct-gaming-expected-to-take-another-3-months.aspx)
Aqueduct gaming expected to take three months
by Paul PostApril 14, 2010… Under separate proposals revealed Tuesday by both [political] parties, the decision would also be non-political and be based on the recommendation of an outside entity.

However, the bottom line in both scenarios is that a selection is about three months away, leaving questions regarding cash-strapped New York Racing Association’s ability to keep operating, especially with the cuts NYRA is expected to take under the state’s plan to save New York City Off Track Betting.

… A joint public hearing by the Assembly and Senate would follow with a final selection with 15 days, and the GOP anticipates its plan would take 2-3 months.

… Gov. David Paterson, a Democrat, said the selection should follow the state’s existing procurement process for all government contracts. Paterson said he would accept a recommendation by the state Division of Lottery, with input from other agencies. The Senate and Assembly leaders would still have to sign off on it, but if they objected, the burden would be on them to explain why. …http://www.drf.com/news/article/112168.html (http://www.drf.com/news/article/112168.html)
New York OTB effort falls apart
By Matt Hegarty4/14/2010… Legislators pulled their support for the bill because of concerns raised by unionized mutuel clerks over the size of severance and pension packages being offered to workers who are expected to be terminated as part of an overall restructuring of the OTB company, according to the officials.

The draft of the legislation included statutory changes that would have reduced OTB's payments to the Thoroughbred and harness racing industries by 15 percent across-the-board, according to officials. In addition, the bill would have advanced approximately $17 million to the New York Racing Association to address what the association has said is a pressing need for cash prior to the late-July start of its Saratoga meet in upstate New York.

"We're disappointed," said Charles Hayward, the chief executive officer of NYRA, who spent Tuesday and Wednesday in meetings with legislative staffers and officials of OTB to hammer out the plan. "We're going to continue to work with political leaders to find a solution to our problem, but we were hoping we could work all this out together with OTB. I don't know if that's possible right now."

… Gov. Paterson released a statement late Wednesday saying he believed OTB would shut down Monday.

"The Board of Directors of NYCOTB resolved to cease operations no later than close of business April 18, absent action by the legislature to solve the corporation's immediate cash-flow problem by making adjustments to payments to the industry," the statement read. "Given that stakeholder disagreement prevented this legislative action, I expect the board will carry out its planned shutdown as reflected in its resolution." …http://www.thoroughbredtimes.com/national-news/2010/April/14/Lawmakers-fail-to-reach-agreement-on-New-York-City-OTB.aspx (http://www.thoroughbredtimes.com/national-news/2010/April/14/Lawmakers-fail-to-reach-agreement-on-New-York-City-OTB.aspx)
Lawmakers fail to reach agreement on New York City OTB
by Paul Post April 14, 2010… Legislation that would have kept the bankrupt firm open never got to a vote because of objections raised by the union representing pari-mutuel clerks, the majority of New York City OTB’s 1,300 employees.

The bill also would have given New York Racing Association the money needed to get through the rest of this year. But legislators left Albany on Wednesday without taking action, leaving the fate of New York City OTB—and racing—entirely up in the air.

“What’s at stake here is the whole Thoroughbred racing and breeding industry,” NYRA President Charles Hayward said. “We’re extremely disappointed. We’ll see where it goes from here.”

NYRA, breeders, and other stakeholders were slated to take a 15% cut in New York City OTB statutory payments under the proposal, introduced by Gov. David Paterson. The reduction to NYRA and purses alone would have been more than $3.5-million.

“It wasn’t insignificant,” Hayward said.

… Under a plan originally proposed by New York City OTB Chairman Meyer Frucher, outgoing employees would have been given severance payments and those who remained would have received pay increases. Some of these items apparently were eliminated in the final bill that the union—District Council 37—rejected.

… Under the failed deal, the state would have given NYRA some of the $250-million budgeted to build a proposed Aqueduct racino. The state would have reimbursed NYRA for its 2009 and ‘10 capital projects totaling $17-million, giving NYRA the operating money needed to get through this year.

Hayward has said NYRA would have no trouble staying afloat until the Saratoga meet, slated to begin July 23, if New York City OTB remains open and keeps making statutory payments to NYRA. He was not optimistic when asked what might happen if New York City OTB closes.

“That’s another ballgame,” he said. “We’re going to run out of money sometime in 2010.”

badcompany

04-15-2010, 08:15 AM

This pretty much hits it on the head:

http://www.nydailynews.com/opinions/2010/04/15/2010-04-15_horse_hockey.html

Horse hockey: Dysfunctional Albany mopes outdid themselves in killing OTB

Thursday, April 15th 2010, 4:00 AM

Gov. Paterson's declaration that the New York City Off-Track Betting Corp. will be allowed to close for good on Sunday is the culmination of the worst Albany train wreck in years.

And that's saying a lot.

The fallout from OTB failing to open its doors Monday will be devastating. More than 1,300 employees will join the unemployment line. The state's withering racing industry will be crippled.

Worst of all, taxpayers will be saddled with a whopping $700 million in shutdown costs - mostly to cover the pension and health benefits of OTB retirees.

Paterson apparently hopes to dump that bill onto New York City as the former owner, which would be unconscionable.

But he is not the only one to blame. Also guilty in this colossal fiasco are Assembly Speaker Sheldon Silver, Senate Democratic chief John Sampson and the rest of the mess called the Legislature.

After draining OTB of millions to prop up racing, after throwing it into bankruptcy court, after being warned that closure was coming, after promising to come up with a rescue plan, the bums left town yesterday without doing a thing.

Paterson attacked Silver and Sampson for bolting without even taking up the bill reflecting what he says was a three-way deal.

There's no way to know if that or anything else is true, because all the wheeling and dealing went on, as usual, in back rooms.

In fact, this is a perfect storm of Albany dysfunction. The pols spawned the ultimate unworkable program - a money-losing bookie outfit. They gave the staff unaffordable perks. They used it to subsidize a struggling private business. And when everything finally came apart, they ignored the best advice of experts, kowtowed to special interests and left taxpayers with cleanup costs.

Can New York State's pathetic excuse for a government get any worse?

PaceAdvantage

04-16-2010, 04:47 PM

Of course, this won't prompt anyone to throw all these bums out of office. I'm sure they'll still be sitting there 10, 15, 20 years from now...nobody seems to give a shit anymore.

At least Joe Bruno (a guy some around here actually got behind during the NYRA fiasco) was finally forced out...let's vote out the rest for a true change.

I'll still be shocked if OTB is actually closed on Monday.

Indulto

04-16-2010, 06:17 PM

... Worst of all, taxpayers will be saddled with a whopping $700 million in shutdown costs - mostly to cover the pension and health benefits of OTB retirees.

Paterson apparently hopes to dump that bill onto New York City as the former owner, which would be unconscionable. ...http://www.drf.com/drfNewsArticle.do?NID=112184 (http://www.drf.com/drfNewsArticle.do?NID=112184)
The real cost of closing down OTB
By Matt Hegarty4/15/2010… Frucher … has frequently said that taxpayers in New York would be on the hook for $700 million if New York City OTB went out of business. …

… even OTB officials acknowledge that the legal basis for at least $550 million of that liability figure is questionable, introducing doubts about whether taxpayers would be liable for any ongoing payments to OTB's employees should the company shut down. …

… a section of the racing law passed in 1982 pertaining specifically to New York City OTB states that "the bonds, notes, or other obligations of the corporation shall not be a debt of either the state or the city, and neither the state nor the city shall be liable thereon, nor shall they be payable out of any funds other than those of the corporation."

The language of the statute suggests taxpayers cannot be held responsible for any unpaid obligations to OTB's terminated workers. …

… "There is no clear-cut answer for who has responsibility for the benefits if OTB does not continue to exist and has no assets," ….

… there is little precedent to determine obligations for the company in the event of a shutdown. …

… The majority of the money would be owed to workers as they became eligible for benefits far later in life and would therefore be paid out in increments over a long period of time. And if any of those fired workers were to find employment at a city or state agency, the liability for that worker would then transfer to the new agency and be wiped from the legacy of OTB's closing.

Indulto

04-17-2010, 02:08 AM

http://www.bloodhorse.com/horse-racing/articles/56435/nycotb-bailout-deal-goes-up-in-smoke (http://www.bloodhorse.com/horse-racing/articles/56435/nycotb-bailout-deal-goes-up-in-smoke)
NYCOTB Bailout Deal Goes Up in Smoke
By Tom Precious April 15, 2010… A bill floated by Gov. David Paterson after days of top-level negotiations with the Legislature included a range of cuts in commissions and other revenue from the OTB corporations to racetracks. It landed with the loudest thud among Senate Democrats, who control the 62-member House.

Lawmakers said the plan didn’t have enough support to make it out of the Senate finance committee process.

… The maneuverings brought to the state Capitol a who’s who of industry interests, including the head of the New York Racing Association, which backed the measure because of $17 million in loans it would receive, to leaders of a union representing more than 1,000 NYCOTB workers which suddenly urged lawmakers to reject the latest set of proposals. Teams of lobbyists representing tracks, other OTB corporations, and horsemen’s groups also worked the hallways.

… “We think that this is the best we can come up with in a difficult situation,” Paterson said of his legislation, which was opposed by tracks, except NYRA, and an assortment of industry players.

… Pretlow said he was surprised at the level of opposition by the racing industry. NYCOTB handle about $1 billion each year.

“(The industry) opposed saving OTB, which I don’t know why, since they are their lifeblood,” Pretlow said. “I think eventually, they will see the handwriting.”

… Other tracks, though, opposed the bill, saying they couldn’t afford to lose the revenue to keep NYCOTB propped up for another year while a longer-term solution to the problems facing NYCOTB, as well as the other OTB corporations in the state, are considered.

Another blow came when District Council 37, which represents more than 1,000 NYCOTB workers, opposed the measure at the last minute. A source said the union had been made a number of promises by NYCOTB, including about $20 million or so in payments for back raises, an early retirement plan, and severance payments, including for per diem workers.

The union, in turn, was agreeing to job cuts of more than 500 positions. But legislators balked at several provisions, including using money for the union workers from a $250 million borrowing proposed by NYCOTB.

… Some lawmakers were privately pushing a shutdown scenario as a way to re-tool NYCOTB and force through certain cost savings they say management and the union have refused to back. There has also been a proposal to let NYRA take over its Internet and phone wagering platforms.

… Hayward said the measure that died in Albany would have pushed through some needed, money-saving changes at NYCOTB. "This would have saved jobs, reduced or continued payments to the industry, provided clarity for racing and NYRA and provided the first step towards improving the New York City OTB’s business model, which then could be transferred to some of the other OTBs," Hayward said. … http://www.drf.com/news/article/112225.html (http://www.drf.com/news/article/112225.html)
Could be the last call for New York City OTB
By Steven Crist4/16/2010… NYCOTB in its current form is an unfixable relic of another era, and that racing in New York might ultimately be better served by starting fresh with a 21st century approach to offtrack betting.

… The solution proposed by OTB is to reduce its payments to the industry even further, which - like the takeout increases it has repeatedly gotten to avert previous crises - would only continue the downward spiral of racing. … The system just doesn't work anymore - not only because of its inherent structural flaws, but also because the game and the world have changed so much in OTB's four decades of existence.

… If NYCOTB does simply close shop this Sunday, its phone and online betting accounts could be seamlessly transferred to the NYRA. There would be initial confusion and a loss of handle from disenfranchised customers, but eventually a lot of the business would come back and with a higher proportion of commissions being paid as a fair price for the racing product, and a massive amount of overhead removed. Either the state or NYRA could continue to operate a few strategically-placed and improved teletheaters, which could not help being profitable if detached from the current OTB system. …http://www.thoroughbredtimes.com/national-news/2010/April/16/NYC-OTB-to-decide-future-at-11-am-Saturday.aspx (http://www.thoroughbredtimes.com/national-news/2010/April/16/NYC-OTB-to-decide-future-at-11-am-Saturday.aspx)
NYC OTB to decide future at 11 a.m. Saturday
by Paul Post April 16, 2010New York City Off-Track Betting Corp. has called a meeting for 11 a.m. EDT on Saturday, when its board of directors will decide whether to stay open or cease operations at 7 p.m. Sunday.

... A portion of all wagers made in-state supports New York’s breeding industry. That is not true of bets placed with out-of-state account-wagering outlets such as TwinSpires.com, XpressBet, Youbet, and TVG.

… On Friday, the New York State Racing and Wagering Board announced it would take steps to protect all winning bets and positive account balances in the event New York City OTB shuts down.

“While we have been hoping that New York City OTB could be transformed into a viable entity, we will be vigilant in protecting the customers in the eventuality that the corporation goes out of business,” said John Sabini, chairman of the Racing and Wagering Board. “This board will do everything in its power to ensure all customers with open accounts at New York City OTB and all with uncashed winning tickets there are made whole, dollar for dollar.”

New York City OTB made its own announcement ensuring that customers’ money is safe. Such funds are held in a separate bank account, designated as containing “customer” funds and deposits, that is fully funded and entirely segregated from the corporation’s own corporate funds, OTB says.

… “Discussions are going on, but we haven’t heard anything significant yet,” Racing and Wagering Board spokesman Joseph Mahoney said Friday. “We’ll know when everyone else knows.”

Saturday’s OTB meeting will be videostreamed live on the Web site: www.nycotb.com (http://www.nycotb.com)

(http://www.nycotb.com)

Indulto

04-17-2010, 10:38 PM

http://www.bloodhorse.com/horse-racing/articles/56498/new-york-otbs-avoid-april-18-shutdown?source=rss (http://www.bloodhorse.com/horse-racing/articles/56498/new-york-otbs-avoid-april-18-shutdown?source=rss)
New York OTBs Avoid April 18 Shutdown
By Tom Precious April 17, 2010… the board, which has been relying on state officials for a rescue plan, appears to now be putting much of its future on a bankruptcy creditors committee to help restructure its finances. NYCOTB filed for Chapter 9 bankruptcy reorganization protection last year.

Meyer Frucher, chairman of the NYCOTB, said he has been encouraged that state officials in the past week were close to approving a deal to lower its statutory payments to racetracks. That, he said, has never received serious consideration at the Capitol after years of requests from the money-losing operation.

The chairman said the only immediate legislation needed by the OTB is a bill to provide an early retirement incentive to employees so it can trim its workforce.

… In a briefing with reporters, Frucher revealed more of how the OTB, which officials in Albany were led to believe was out of money after this weekend, would be able to stay afloat. The OTB head said statutory payments to tracks and others will be delayed – not reduced.

“We can’t be forced to pay money we don’t have,” Frucher said. “We’re simply exercising our administrative prerogatives.”

… The OTB is also going ahead with installing as many as 600 “quick bet” machines in sports bars. The Assembly killed an idea pushed by Frucher to open as many as 1,600 betting kiosks, with automatic teller machines, in bars and other places across the city. But OTB officials were told by negotiators last week that there is nothing stopping the corporation from installed the kinds of unstaffed betting devices already in use by OTBs on Long Island and in the Albany area.

“As usual, the Speaker prevailed,” Frucher said of Assembly Speaker Sheldon Silver, who blocked the OTB from installing the machines in far more settings.

The new machines would not include the ATM features, and Frucher said they would be limited to sports bars. The state Racing and Wagering Board would have to approve every device installed.

Frucher said the devices are necessary if the OTB is to cut its costs by closing betting parlors. He said within a year two-thirds of the 66 parlors now spread through the five boroughs will be shut down. The devices will help replace betting revenues that now stream from the parlors, which account for about two-thirds of the NYCOTB’s revenues.
http://www.thoroughbredtimes.com/national-news/2010/April/17/NYC-OTB-to-remain-open-through-2010.aspx (http://www.thoroughbredtimes.com/national-news/2010/April/17/NYC-OTB-to-remain-open-through-2010.aspx)
NYC OTB to remain open through 2010
by Paul PostApril 17, 2010… The New York Racing Association and New York breeders will not have to take a 15% cut in OTB revenues, but probably will receive delayed payments of undetermined length.

“I can’t quantify at this point the amount of pain that we’ll be inflicting on the (racing) industry,” Frucher said. “There will be pain. You can’t pay what you don’t have.”

… In addition to job cuts, New York City OTB’s management payroll will be slashed and most of its vehicles will be sold.

“I expect that within a year this organization will be half the size it was,” Frucher said. “The process will begin immediately, starting Monday.”

… “Mr. Frucher is just pulling everyone's chain,” said Barry Ostrager, New York Thoroughbred Breeders Inc. president. “He absolutely, positively, definitely can’t do most of the things he proposes without legislative authorization. Since he can neither lead nor follow, he should just get out of the way.”http://www.nydailynews.com/ny_local/2010/04/17/2010-04-17_nyc_otb_rescinds_shutdown_order_1300_worker_job s_saved__for_now.html (http://www.nydailynews.com/ny_local/2010/04/17/2010-04-17_nyc_otb_rescinds_shutdown_order_1300_worker_job s_saved__for_now.html)
NYC OTB rescinds shutdown order; 1,300 worker jobs safe ... for now
By Tina Moore April 17th 2010… Frucher said the agency would defer payments to creditors, put betting terminals in bars and cut more than half its staff in the next year.

They will also cut by two-thirds the number of betting parlors it operates and push legislation to give workers early retirement.

The turnaround triggered frustration among some who took part in negotiations involving the Legislature and Gov. Paterson over the state's racing industry.

"They cried poverty one week and the next week they say they can keep their doors open for another year?" said Austin Shafran, spokesman for the state Senate's Democratic majority. "This demonstrates an overwhelming need for an honest and clear accounting of OTB's finances and operations before any taxpayer dollars spent."

… Assemblyman Gary Pretlow (D-Westchester) - chairman of the Racing and Wagering Committee - said he suspected OTB wouldn't follow through on its threat.

"With this extended time, I think they can now look at some real cost-cutting measures to make OTB a financially viable operation," he said. …

Indulto

04-18-2010, 07:19 PM

http://www.troyrecord.com/articles/2010/04/18/news/doc4bca93278e2cc296000181.txt (http://www.troyrecord.com/articles/2010/04/18/news/doc4bca93278e2cc296000181.txt)
NYC OTB to stay open; layoffs, shop closings ahead
By Paul Post April 18, 2010… The bankrupt firm has decided not to cease operations today, as threatened, which apparently eliminates the threat of a New York racing shutdown as well.

New York Racing Association had said the Belmont Stakes and Saratoga Race Course season would be jeopardized if OTB closed. However, the full impact of OTB’s moves won’t be known until its plan starts taking effect.

… At present, $700 million of New York City OTB’s $900 million in handle comes from neighborhood betting shops, leading some to question the wisdom of closing such sites. OTB spokesman David Vermillion said the transition would be made over a 12- to 18-month process, and that financial projections support such action.

… closing now makes little sense because the Belmont Stakes and lucrative Saratoga Race Course season are fast approaching, when OTB can make the most money. …http://www.nydailynews.com/sports/more_sports/2010/04/18/2010-04-18_untitled__races18s.html (http://www.nydailynews.com/sports/more_sports/2010/04/18/2010-04-18_untitled__races18s.html)
The Day at the Races
By Jerry Bossert April 18th 2010… Frucher mentioned the obvious of cutting costs and reducing parlors, but he also brought up deferring subsidy payments to the industry.

"We'll pay Yonkers and NYRA 100% on the dollar for their races," Frucher said of NYCOTB, which is $95 million in debt.

But when it comes to paying New York tracks for bets NYCOTB takes on out-of-state races, there will be a delay.

… Joe Faraldo, president of the Standardbred Owners Association, called Frucher's deferral of payments "a joke - take our product and not pay us for it."

Frucher responded, "Everybody plays to their own account. Nobody wants to give up anything. Horse racing isn't about horses anymore. It's about pigs. Until everyone gives up its own interest, it's not going to work."

… "Until we're forced to sit down in a room and act like businessmen we're going to continue to pull it apart. The goose that laid the golden egg is going to die."

Indulto

04-20-2010, 10:24 PM

http://www.horseraceinsider.com/blog.php/Zasts-TrackWords/comments/2010-04-19truthiness-has-consequences/ (http://www.horseraceinsider.com/blog.php/Zasts-TrackWords/comments/2010-04-19truthiness-has-consequences/)
Truthiness has Consequences
By Vic Zast April 19, 2010… lawmakers left their jobs for the weekend on Wednesday evening, knowing full well that there wasn’t going to be leave-taking from the banquet table by the State’s legalized bookmakers on Sunday.

… Saturday’s meeting of the Board merely revealed that the situation wasn’t as financially dire as previously thought. Sandy Frucher, NYCOTB chairman, promised changes in the future. Believe it when you see them.

… To its shame, horse racing is fraught with practitioners in every corner of the industry who have confused the concepts of political posturing and prevarication.

… NYRA isn’t looking to get something for nothing; it surrendered its claim of ownership of Belmont Park, Aqueduct Racetrack and Saratoga Racecourse properties in return for the money. What’s at question is how badly and urgently the money is needed.

… that NYRA has revised its estimate of when it will cease operations because of lack of funds several times doesn’t enhance its reputation as a truth server.

…it’s sad that duplicity and hyperbole are considered the only tactics effective in negotiating.
Even an occasional false utterance for the purpose of dealing with an inattentive foe can lead to corrosive consequences. A problem with not telling the truth in one circumstance and telling the truth in another is that people conclude that you never tell the truth. …http://www.thoroughbredtimes.com/national-news/2010/April/20/Groups-call-for-resignation-of-NYC-OTB-chairman.aspx (http://www.thoroughbredtimes.com/national-news/2010/April/20/Groups-call-for-resignation-of-NYC-OTB-chairman.aspx)
Groups call for resignation of NYC OTB chairman
by Paul Post April 20, 2010Two Thoroughbred groups … are calling for an investigation by the state attorney general following OTB’s decision to remain open after a threatened shutdown.

… “They (OTB) have been warning Albany that they are going to have to close their doors unless they stop paying the Thoroughbred industry its fair share of the receipts, only to magically find the dollars needed to keep operating when the (state) legislature refuses to cave to their demands,” said Rick Violette, New York Thoroughbred Horsemen’s Association president. “It warrants the attention of the New York state attorney general (Andrew Cuomo) because the stench from the New York City OTB can be detected from the furthest stable.”

New York Thoroughbred Breeders Inc. Executive Director Jeff Cannizzo said, “Mr. Frucher has sought to hijack a process that was meant to save New York City OTB and Thoroughbred racing in New York.”

Both groups say OTB should be closed, restructured, and that the state should act quickly to site a racino at Aqueduct.

OTB spokesman David Vermillion said, “Our books have been audited by the state comptroller and remain available to any public agency for audit or review. Further, our books will be available to the creditors committee through the bankruptcy court as part of negotiations with our creditors on a solution to save racing in New York. Any further response would dignify this silly diatribe from racing industry stakeholders whose sole stated purpose is to put New York City OTB’s employees out of work and who have refused to come to the table to negotiate with all stakeholders over a long-term plan for the industry.” …http://www.recordonline.com/apps/pbcs.dll/article?AID=/20100420/NEWS/100429965/-1/SITEMAP (http://www.recordonline.com/apps/pbcs.dll/article?AID=/20100420/NEWS/100429965/-1/SITEMAP)
State lawmakers say city OTB created phony crisis
By vwhitman 04/20/10State lawmakers are slamming the New York City Off Track Betting Corp., saying the company created a phony crisis in a failed bid to win concessions.

… after state lawmakers left Albany on Friday without taking action, the OTB announced it was staying open for a year and was rescinding 1,300 layoffs. The company announced it plans to negotiate with the New York Racing Association and other creditors in U.S. Bankruptcy Court, and defer some payments.

“What a tremendous waste of time and energy,” said Assemblywoman Aileen Gunther, D-C-Forestburgh, who last week expressed concern that the OTB might shut down.

“OTB’s credibility is shot. Following years of bad business decisions and indifference to the New York racing industry, NYC OTB manufactured a crisis in which the futures of approximately 1,300 OTB employees and union members were forced to be weighed against the long term health and wellbeing of a racing industry responsible for more than 40,000 jobs across the state of New York, said Gunther.” …http://www.midhudsonnews.com/News/2010/April/20/NYCOTB_Gunther-20Apr10.htm (http://www.midhudsonnews.com/News/2010/April/20/NYCOTB_Gunther-20Apr10.htm)
NYC OTB “cried wolf,” says GuntherAssemblywoman Aileen Gunther, in whose district the Monticello facility lies, is infuriated, calling the so-called NYCOTB crisis “a game of chicken” that OTB lost.

OTB Chairman Sandy Frucher said he could take administrative moves to keep the operations going. Many of those ideas, said Gunther, came from the State Assembly Racing and Wagering Committee.

The Thoroughbred Breeders and Horsemen and the Standardbred Owners Association of New York both voiced outrage with OTB. The Thoroughbred Breeders and Horsemen have called on the attorney general to investigate “the obvious double set of books” used by NYC OTB. …http://www.queenscourier.com/articles/2010/04/20/news/top_stories/doc4bcddd9712f00155297698.txtOTB board votes to stagger on
BY VICTOR G. MIMONIApril 20, 2010It was Mark Twain who first said “Rumors of my death have been greatly exaggerated.” If the management of the former New York City Off-Track Betting Corporation (NYC OTB) is to be believed, the same goes for them, too.

… On Wednesday, April 14, Governor David Paterson sent an OTB bailout plan to the Legislature, which went home for the weekend without looking at it. As late as that Friday, state officials were presuming the beleaguered bet-taker dead, with …
… Nevertheless, Frucher said that progress in negotiations convinced the board to keep the doors open. “All parties recognized that closing NYC OTB now would be a catastrophe to the racing industry,” he said at the meeting.

… A source close to Assembly Speaker Sheldon Silver cast doubt on speedy approval of the kiosk/betting machine plan, saying, “He’s not a big fan of gambling to begin with and he’s not likely to look favorably on putting more betting machines for horse races . . . in bars all over the city.”

Indulto

04-23-2010, 07:52 PM

http://www.timesunion.com/AspStories/story.asp?storyID=924505&category=OPINION (http://www.timesunion.com/AspStories/story.asp?storyID=924505&category=OPINION)
Let NYRA choose its own partner
Letter to the Editor
By Joseph W. Dalton Jr., President, Saratoga County Chamber of Commerce April 23, 2010 Here we go again. Our state elected officials continue to play the game of patronage and politics with an industry that employs 34,000 New Yorkers and means more than $213 million annually to our nine-county area from Columbia County to Warren County.

… The state has had nine years to pick an operator for video lottery machines at Aqueduct Race Track, and hasn't done so. The downside of that indecision is that New York, which is broke, has lost an estimated $1 million a day. That's real money.

The state is in financial default on a legal contract that guaranteed money to the New York Racing Association, if VLTs were not in place a year ago.

It is time to allow NYRA to choose its own partner to operate VLTs, just as every other track with VLTs in New York has done.

… The state's demands for operations and sharing of revenues have been in place for years. Enough is enough. Move immediately to allow NYRA to choose a VLT operator.http://www.saratogian.com/articles/2010/04/23/news/doc4bd1d4f558678217899560.txt (http://www.saratogian.com/articles/2010/04/23/news/doc4bd1d4f558678217899560.txt)
NYC Off Track Betting slashes management in bid to save $2 million
By PAUL POST April 23, 2010New York City Off Track Betting Corp. has slashed 35 non-union management positions …

The cuts, implemented Thursday and today, are expected to save $2 million and hundreds more non-union positions are targeted as OTB restructures its business model.

OTB plans to close two-thirds of its 60-plus betting shops and replace them with self-service Internet wagering machines in places such as sports bars throughout New York City.

“I’m in shock,” said a high level official, requesting anonymity, adding he was taken completely by surprise.

.... “While regrettable, this action is a necessary step to operate our business more efficiently and effectively as we look toward a new future,” Chairman Meyer “Sandy” Frucher, said in a Thursdsay letter to New York State Racing and Wagering Board Chairman John Sabini. “While a much more significant downsizing of our workforce lies ahead, this step is one we decided to take without delay as we await legislation enabling us to provide an early retirement incentive program. Once this legislation is passed we expect to work with our union partners to implement further reductions.”

Formal legislation would clarify things. But Assembly racing committee Chairman Gary Pretlow, D-Yonkers, says it might not be needed. Retirement packages might be offered administratively through New York City’s pension fund system, he said.

… Pretlow said that most – if not all – OTB plans don’t require legislative approval. The state took over New York City OTB last summer. As such, it’s comparable to a state authority and falls under control of the executive branch, so legislative action isn’t needed for OTB’s restructuring, he said.

… Frucher says OTB will likely have to delay some statutory payments to racetracks and breeders until its cash-flow situation improves. Frucher has pledged to submit cash-flow statements, operating budgets, operational plans and status reports to the Racing and Wagering Board by next Friday, April 30.http://www.bloodhorse.com/horse-racing/articles/56625/nyra-seeks-state-loan-nyotb-cuts-staff (http://www.bloodhorse.com/horse-racing/articles/56625/nyra-seeks-state-loan-nyotb-cuts-staff)
NYRA Seeks State Loan; NYOTB Cuts Staff
By Tom Precious April 23, 2010… NYRA officials were left scrambling to get their own bill after the NYCOTB measure was scuttled. The governor quietly proposed the new NYRA loan bill April 22.

The measure would let NYRA borrow $17 million from a $250 million lending program the state had previously approved for construction work of a casino at Aqueduct racetrack. The state has yet to select a casino vendor; the fourth procurement process since 2001 is set to begin soon, and Paterson has been saying he expects an operator to be selected by the end of June.

NYRA would re-pay the money from proceeds that a future casino operator at Aqueduct is slated to provide NYRA in the form of revenue-sharing payments. The borrowing would have to be approved by a state panel that oversees NYRA’s finances and the governor’s budget director.

… “It would be premature to comment on any program bill that as yet has not been introduced," NYRA President Charles Hayward said.

… The OTB declined to provide names of people let go, but a spokesman said they included various administrative managers and executive directors of different units. They also declined to provide a list of the specific salaries of those losing their jobs.

The OTB envisions a severance package for those losing their jobs, which privately did not go over well among representatives of some racetracks, who are going to see revenue-sharing payment delays from the OTB in the coming weeks and months.

The OTB this week was pushing a plan at the Legislature to provide incentives to a large share of its unionized staff to retire early. A spokesman said the severance effort would also include the 35 non-union workers let go April 23. The state Legislature would have to approve any such severance plan for the state-owned OTB.

... “Transparency and cooperation are essential as critical issues wil have to be addressed in a timely and expedited fashion," Sabini wrote Frucher.

Sabini also noted how he agreed with Frucher on the need for industry-wide cooperation to deal with the problems confronting tracks and OTBs, but called it “unfortunate’’ that Frucher did not “take that opportunity" to testify with other stakeholders before a gubernatorial task force on the future of the OTB industry in New York. …

Indulto

04-29-2010, 02:18 AM

http://www.nypost.com/p/news/local/that_odds_broke_otb_saddled_with_PnA4FmVVa3sWFjiUg ByGgO (http://www.nypost.com/p/news/local/that_odds_broke_otb_saddled_with_PnA4FmVVa3sWFjiUg ByGgO)
That's odds: Broke OTB saddled with 25G PR bill
By DAVID SEIFMAN Apr. 26, 2010The city's tottering Off-Track Betting Corp. is shelling out $25,000 a month to a top public-relations firm even as it's going through bankruptcy, …

The money is going to Edelman Public Relations under a two-year contract that began last November.

David Vermillion, the Edelman vice president overseeing the OTB account, defended the expenditure as "good value" for the struggling betting operation, …

… Vermillion said Edelman communicates with customers, employees, the media and runs a Web site.

Gary Pretlow (D-Westchester), chairman of the Assembly Racing and Wagering Committee and a frequent OTB critic, said, "They're spending money like they're making money. They're not." …http://www.saratogian.com/articles/2010/04/27/news/doc4bd63fe9c32e2010851446.txt (http://www.saratogian.com/articles/2010/04/27/news/doc4bd63fe9c32e2010851446.txt)
Senate measure would prevent racing shutdown
By PAUL POST April 27, 2010A bill that would prevent a New York racing shutdown has been introduced in the state Senate, but still needs an Assembly sponsor.

… "They want to show the industry, the region, the state that NYRA is important and that Saratoga is very important," said a legislative source, requesting anonymity. "They don’t want to put the industry in a compromised position. It’s definitely something we’re not taking lightly. They definitely want to make sure people who live in the Saratoga region keep benefiting from the industry they have."

… "We’re reviewing it," said Dan Weiller, a spokesman for Assembly Speaker Sheldon Silver. He declined further comment. Silver, D-Brooklyn, is viewed by many as wielding the most power and influence in the statehouse.

The source said the bill will probably start going through Senate committees in the next few days, regardless of what the Assembly does. The next Senate racing committee meeting is scheduled for May 4.

… It’s important to keep all stakeholders involved and abreast of the facts, to assure them that other racing initiatives won’t be sidetracked by Paterson’s proposal, the source said. ...
http://www.bloodhorse.com/horse-racing/articles/56718/nyc-otb-workers-in-line-for-pay-hikes (http://www.bloodhorse.com/horse-racing/articles/56718/nyc-otb-workers-in-line-for-pay-hikes)
NYC OTB Workers in Line for Pay Hikes
By Tom Precious April 28, 2010… the raises are retroactive to make up for no pay hikes over the past couple years, and won’t be paid out until the OTB comes up with a long-term agreement with the industry and state to make the money-losing operation viable.

The unionized workers would get two 4% raises – paid in an unknown lump sum amount – to cover 2008 and 2009. He said the raises would make up for a period when the OTB workers fell between the cracks and did not get raises when the OTB was transferred from ownership by the New York city government to the state.

… The raises would also permit the workers to get larger pension payments under a bill being negotiated at the state Capitol to provide incentives to get a large share of the OTB’s workforce to retire early.

… “We’re not talking about any cash at this point,” Frucher said of the raises. He said the raises are contingent upon a borrowing plan and agreements by the unions to reduce the OTB staff by upwards of 65% over the next year. The raises are also linked to various concessions, including an end to double-pay for working on Sundays and job reclassifications.

… The deal was negotiated with the union representing OTB workers about six months ago.

In New York, government pension payments are based on a government worker’s final three years of average salary. Frucher said the OTB workers deserve the higher pension payments – under the bill being negotiated at the Capitol – because they were denied salary increases over the past couple years. This would allow the OTB workers to get the raises and have them count towards their pension credits under the early retirement bill.

… Frucher said he could not immediately provide the total price tag for the raises for more than 1,000 workers. But he said any payments are down the road and will only happen if all the other conditions fall into place.

The OTB is also set to offer workers not eligible for early retirement incentives a severance package that would total as much as $15,000. Lawmakers privately complained the package also would pay $3,000 or more to some part-time and per diem workers.http://www.nypost.com/p/news/opinion/opedcolumnists/racing_big_losers_7LLIoqqrQoW4HLUmSeEniP
Racing's big losers
Why NYRA & OTB are a mess
By Raymond J. Keating April 26, 2010Corruption, shady jobs, payola, cooked books, wise guys -- and oceans of red ink. For many, that's what comes to mind when they think of horse racing. In New York, much of the industry's woes can be traced to one source: govern ment. Isn't it time we scratch state and local government -- and politics -- from the card, once and for all?

… Off-Track Betting. It's a holy mess. The bankrupt New York City OTB, for example, claimed it would have to close without a bailout. The bailout, amazingly, did not come. Yet the city OTB quickly changed its tune on April 17, saying it could stay open for another year. How? Under its plan, 60 percent of betting parlors will be shut and staff trimmed (35 non-union jobs were cut Friday). At the same time, OTB plans to install hundreds of Qwik Bet terminals in sports bars. And oh, yes -- New York City OTB will delay paying its bills as well.

Meanwhile, the OTBs in Nassau and Suffolk counties are best known as patronage mills, serving whichever political party happens to be in charge. After being out of power for a decade, the GOP (http://www.nypost.com/t/U.S._Republican_Party)now has a legislative majority in Nassau County, so that means new spots for party operatives at OTB.

... the annual profit that Nassau OTB hands over to the county has disappeared (though county government still gets revenues from a tax on winning bets).

… Yes, horse racing has suffered a decline in popularity. But under a government model, it's no surprise that the bookie loses dough: The tracks are shabby, grossly underused and can't make money; patronage, political wheeling and dealing, and corruption flourish; books are cooked, and taxpayers, racing fans and the industry suffer. Politicians call the shots, so the focus is not on serving the customer but instead is about serving political interests.

... It's time to sell off OTBs around the state and privatize the three state-owned tracks or, at the very least, bid out track operations under a true competitive process. A Triple Crown winner would be great, but getting horse racing in New York out of the hands of political operators would be even better.http://www.longislandpress.com/2010/04/28/off-the-reservation-the-lighthouse-project-casino/ (http://www.longislandpress.com/2010/04/28/off-the-reservation-the-lighthouse-project-casino/)
Off the Reservation: The Lighthouse Project Casino
By Jed Morey on Apr 28th, 2010… Shinnecock will have many chefs in their kitchen (I’m resisting the “too many chiefs” reference) as they try to establish a casino in any state that begins with “New” and ends in “York.” Look no further than the New York Racing Association (NYRA) and the six Off Track Betting regions in New York State, none of which turn a profit. NYRA is in bankruptcy, New York City OTB might as well be, and horse racing in New York is in danger of extinction as a result. This is due more to the financial mandates of the state than it is to the decline in betting revenues. New York State is in such dire financial straits that it’s difficult to imagine a scenario in which Albany acquiesces to the desire of the Nassau Republicans to revitalize their hopes for the Hub. Add to the mix that Sheldon Silver, hands down the most powerful politician in the state, detests gambling and you have a recipe for failure.

But the most powerful foe in this process won’t be the most immediate one. The “powers that be” with interests in Las Vegas simply cannot afford to allow a casino so close to New York City. Atlantic City might as well disappear completely. One can point to the success of the casinos operated by the Oneida and Seneca Nations located in upstate New York, not to mention Connecticut’s Mohegan Sun and Foxwoods, to understand that the closer to New York City you place a casino, the more successful it is. Then track the number of flights from the tri-state area with Vegas as the final destination and consider how important this market really is. A large-scale, sophisticated Class III gaming facility 40 minutes from New York City by train and in the center of Long Island is death for all the others. The politicians in New York City will be damned if they lose one reverse-commuting thrill seeker, the politicians upstate can’t afford the potential revenue and job losses and New Jersey, well, to hell with Jersey. …