New York Franchise Award Recommendation May Come Nov. 21

[Indulto]

Originally Posted by PaceAdvantage

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]

http://www.saratogian.com/articles/2...1575909410.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]

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]

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, 2010

The 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
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
Scott on racing: Circling the wagons around Saratoga Race Course
By JEFF SCOTT March 9, 2010

Times 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]

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/
COULD NEW MONMOUTH STRUCTURE BE MORE BAD NEWS FOR NYRA?
COMMENTS

john g sikura Says:
March 10th, 2010 at 11:59 am

NYRA 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]

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]

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
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
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]

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/st...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 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
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 governm

ent.

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]

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
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/article...0390448911.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]

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
New York OTB to shut down after bailout fails
By David Grening 3/26/2010

The 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
NYRA Eliminates 12 Positions
By Blood-Horse Staff March 26, 2010

Charles 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]

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
OTB halts pay for executives, consultants in wake of massive layoffs
BY Tina Moore March 28th 2010

Off-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]

http://search.espn.go.com/bill-finley/
Will NY politicians, OTB kill racing?
By Bill Finley March 29, 2010

The

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
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]

Originally Posted by Indulto

… “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]

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, 2010

As 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
Tuesday, March 30, 2010
AEG Out of the Money In Lottery Report

The New York Times has obtained, via a FOIL request, a copy of the Lottery's confidential assessment 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 looking into the matter - and quite brazenly and outrageously I'd say - the IG filed a strongly-worded response 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.timesunion.com/AspStories...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]

...build a roof over Belmont Park for winter racing...

"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