Local News Archive
February  - March 2005

Columbus, OH, March 29, 2005

Albany, NY, March 29, 2005

bloodhorse.com >> News New York Legislators Push VLT Budget Measure by Tom Precious Date Posted: 3/29/2005 2:59:17 PM Last Updated: 3/29/2005 6:37:34 PM The Republican-led Senate and Democratic-run Assembly in New York have introduced legislation to sweeten the pot for racetracks with video lottery terminals, though the measure restricts the amount of extra money that would go to Aqueduct and Yonkers Raceway compared to other tracks. Still, the agreement if approved would provide more than enough money and provide legal protections to ensure Aqueduct and Yonkers, expected to generate the most VLT revenue in the state, would be able to start construction this year on their long-stalled VLT operations. The measure is buried in a 2005 state budget bill legislators vowed to pass March 31. On March 28, Gov. George Pataki said his negotiators hadn't struck a final deal with the legislature on VLTs. The legislation is intended as a "fix" to deal with an appeals court decision last year that struck down as unconstitutional a 2001 law that permitted VLT proceeds to be used for purses and breeding funds. The court said any gambling revenue from VLTs must go to education, with the exception of money for tracks that serve as vendors for the state Lottery Division, which runs the VLT program. The new bill is silent on VLT revenue for purses and breeding funds; however, tracks are expected, as part of their licensing, to secure deals with horsemen's groups for purse sharing. Under current law, 29% of VLT revenue, after payouts to bettors and the state, goes to tracks. A portion of that money, on a sliding scale, goes to purses and breeding funds. Under the new deal, tracks would get 32% of the first $50 million in annual VLT revenue, 29% on the next $100 million, and 26% on anything above that amount. In addition, lawmakers added a new "marketing and promotional" payment that would provide an additional 8% on the first $100 million in VLT revenue, and 5% on everything over that figure. For Aqueduct and Yonkers, the fund for "marketing, promotion, and associated costs" of VLT operations would be capped at 4% of all VLT revenue. The additional 4%, sources said, could be worth at least $10 million for each of the tracks. Money for purses and breeding funds would then come out of the track's VLT proceeds, subject to separate deals between tracks, horsemen, and breeders. Legislators said the bill would be worth about $1 billion more in revenue for the state. For the New York Racing Association, the measure also ensures that its VLT partner, MGM Mirage, would remain as Aqueduct's VLT operator even if NYRA loses its franchise, which expires at the end of 2007. MGM has refused to move on the VLT casino unless it was guaranteed to remain as the operator beyond the end of 2007. Questions have been raised, sources said, about the contract between NYRA and MGM and whether the process followed state contract procedures. The new legislation doesn't address the contract. The new bill also extends the VLT law, now set to expire at the beginning of 2014, until the end of 2017. Copyright © 2005 The Blood-Horse, Inc. All Rights Reserv

Attica, NY, March 28, 2005 -

The WNYHHA has just learned of the death of Ron Dale, a long time member of the Western New York Harness Racing community.  We do not have any details except to report that Mr. Dale passed away this past Saturday. A service will be held at 2 p.m. tomorrow (Tuesday) in Marley Funeral Home, 135 Main St., Attica, NY. No calling hours.

Hamburg, NY, March 24, 2005 -

Vernon, NY, March 20, 2005 -

Vernon Downs holds its horses

It may take months before track emerges from bankruptcy, starts racing

Sunday, March 20, 2005
By Glenn Coin
Staff writer

It's going to be a late start for Vernon Downs this year.

The bankrupt track probably won't be ready to start racing by the usual late April starting date, officials said last week.

But the track did get two pieces of good news: a planned buyout of the majority stockholder and state Senate approval of a bill that could help bring video gaming and profits to Vernon Downs.

Jeff Gural, the track's newest investor, said he has reached a deal to buy the shares of Shawn Scott, who owns 52 percent of Vernon Downs' parent company, Mid-State Raceway. Scott was denied a racing license in 2003, and Mid-State directors say his ownership of the company has bogged down efforts to get the track open this year.

Gural said he has reached an oral agreement with Scott and with Mid-State's biggest creditor, Vestin Mortgage of Las Vegas. Gural declined to discuss details of the deal.

"I think this was a good week for Vernon Downs, between my meeting Tuesday with all the combatants and the Senate passing the legislation," Gural said Friday. "I think it's a step in the right direction."

Neither Scott nor his lawyer, Deborah Deitsch-Perez, returned phone calls Friday.

The deal would end Scott's involvement in Vernon Downs, Gural said. Since Scott first invested in Mid-State in 2002, the track has had trouble getting annual licenses and has racked up debts of more than $30 million.

Scott was denied a license by the staff of the state Racing and Wagering Board in 2003. His 15-day appeals hearing just ended this month, and an administrative law judge plans to review the testimony before recommending to the full racing board whether Scott should receive a license.

Gural's buyout of Scott could ease worries Mid-State directors expressed earlier this year in bankruptcy court. They said they didn't trust Scott, and that they signed a financing deal with Gural because they were afraid Scott's inability to get a license could delay this year's racing season.

Mid-State board Chairman Paul Noyes said he hasn't heard details of the deal between Gural and Scott. "If it's true, that's wonderful news," Noyes said.

Mid-State filed bankruptcy last August. In February, company officials filed a reorganization plan that relies on Gural investing $8.5 million to get the track and adjacent Miracle Isle casino up and running.

Mid-State's new interim chief executive officer, Ed Tracy, won't hazard a guess when the horses will start running this season. It won't happen until Mid-State emerges from bankruptcy, Tracy said. That would require a judge to approve a reorganization plan, which could take months.

"At this juncture, it would be very, very difficult to make that normal April start date," said Tracy, a former Trump casino executive appointed March 3 to run Mid-State. His $20,000-per-month salary is being paid by Gural.

Racing board spokeswoman Stacy Clifford said the board hasn't received a complete application yet from Mid-State for the

2005 racing season. Until the application is finished, she said, the board can't address how the bankruptcy proceedings might affect the track's license.

Gural plans to invest $1.2 million to get the track running this year. He also has agreed to provide another $7.3 million to get the adjacent casino building open. According to Mid-State financial reports, the casino could bring in gross revenue of $47 million per year.

The casino won't turn a profit, however, unless it can open a casino, and it can't do that until the state gives tracks a bigger cut of the proceeds, Gural said.

Current law gives each track about 20 percent of the revenue from video gaming machines in the casinos. The bill passed by the Senate last week would increase that share to about 40 percent, although tracks would have to pay winning horse owners from that amount.

Gural, who helped draft the Senate bill, said he is hopeful that the Assembly and Gov. George Pataki will also approve it. The Assembly might consider the bill as early as this week, Gural said.

© 2005 The Post-Standard. Used with permission.

Vernon, NY, March 19, 2005 -

Gural, Scott working out deal

By RACHAEL PROTZMAN,
Dispatch Staff Writer

VERNON - New York City Businessman Jeff Gural and majority shareholder Shawn Scott have come together in discussions to attempt to bring Mid-State Raceway, the parent company of Vernon Downs, out of bankruptcy.

"We had some discussions and I'm hopeful we'll be able to reach an agreement," said Gural. "We're fairly close to reaching an agreement."

Gural called the new agreement a "four-way settlement" among him, Scott, Raceway Ventures and Vestin Mortgage, which holds $26 million of Mid-State's debt.

"We're trying to make a deal with Shawn and Vestin that will expedite the bankruptcy process," said Gural.

Raceway Ventures previously owned the track. It consists of three managing partners: Steven Cohen of Florida, Patrick Danan of Florida and Frank Leo of New Jersey. They purchased the track from Scott in April of 2004; however, Scott reacquired ownership in July.

Under the new agreement, Scott would be bought out and Gural would become the majority shareholder. However, negotiations continue regarding how much Scott will receive and what percentage of the shares Gural will hold.

Gural hopes the new plan will be finalized by the end of next week.

Gural has previously loaned Mid-State $1.2 million with hopes of having a 2005 racing season. The track accepted his offer of a total of $8.5 million in return for 91 percent of the company's stock. Scott currently owns 52 percent. This plan would only go into effect if it were approved by the bankruptcy court.

Gural said the new plan is a modification of this plan and $8 million to $9 million dollars would still be invested.

On March 9, the court decided to end Mid-State's exclusive rights on April 4 and allow others to submit reorganization plans. The plans would be voted on by Mid-State's creditors.

On March 3 Scott release a proposal suggesting he and Gural each invest $18 million and share ownership of the track. Of the total $36 million, most would go to creditors, including $27 million to pay the debt to Vestin Mortgage. In addition, $3 million would be divided among Mid-State's existing shareholders. Gural and Scott would become 50-50 partners in a new venture at Vernon Downs. This offer inspired current discussions that have brought about the possible new plan.

Gural is confident that the track will open for a 2005 racing season.

"Things are definitely moving ahead," he said.

©The Oneida Daily Dispatch 2005

New York VLT Bills Approved by Senate
by Tom Precious
Date Posted: 3/17/2005 5:01:21 PM
Last Updated: 3/17/2005 9:41:36 PM

"The legislation we passed creates a workable reimbursement fee for the vendors who will be running the VLTs while providing a mechanism to successfully garner additional funding for the state," said Sen. William Larkin, chairman of the Senate Racing Committee. "In addition, changing this formula will enable our racetracks to upgrade their facilities and offer a variety of cultural and recreational forms of entertainment so that they can become true tourist destinations. Ultimately, this strategy will help keep lost revenue here in New York."

Albany, NY, March 16, 2005 -

Mixed Bag for New York Racing Proposals

by Tom Precious
Date Posted: 3/15/2005 7:27:47 AM
Last Updated: 3/16/2005 1:16:11 PM

The New York Assembly has rejected proposals by Gov. George Pataki to create an oversight board to monitor the New York Racing Association, form a super-agency to oversee all aspects of gambling, and create eight additional video lottery terminal casinos.
But the Assembly, in its own budget plans, has accepted the governor's proposal to raise the regulatory fee imposed on all horse racing wagers. It would take $2.8 million from racetracks and earmark the money for state regulatory activities.

Meanwhile, talks are advancing to amend the state's VLT law. A provision of the law was struck down last year by a mid-level appeals court that ruled the VLT share for purses and breeding funds violates the state constitution.

A new plan would dedicate money from the general fund as a way to abide by the court ruling. To calm fears of the racing industry that such a plan would make payment to purses more risky by having it come from the general fund, negotiators are looking at creating a "trap." Under such a plan, purse and breeding funds would have to be paid before the state Lottery Division, which administers the VLT program, gets its revenue to fund its operations.

Pataki recently said he wants negotiators to quicken the pace to get a VLT deal to ensure the state's two biggest future VLT operators--Aqueduct and Yonkers Raceway--get up and running in the current fiscal year. Senate Republicans have estimated the state is losing $1 billion a year in VLT revenue because those tracks, for different reasons, haven't begun VLT programs.

Currently, four tracks in the state, including Finger Lakes Gaming & Racetrack, have VLTs.

The state Assembly's budget plan was proposed March 11. Both houses are presenting their own budget ideas as alternatives to Pataki's fiscal roadmap. Though not binding, they are useful to see what positions the sides are staking out in the ongoing budget talks.

The Assembly last year rejected Pataki's plan for a new state gaming agency to oversee everything from the VLT program to racetracks and charitable games. The Assembly has been concerned, among other things, that the governor would control the new agency's board. The Assembly last year also rejected Pataki's plan to add eight additional VLT parlors around the state, with as many as five in New York City.

The Assembly's backing of the higher regulatory fee on pari-mutuel wagers makes it almost certain a final state budget would include the hike. The governor has proposed raising the fee from .39% to .50% on all bets to defray the costs of running the New York State Racing and Wagering Board.

The Assembly said there would be a hike in the takeout rate on NYRA wagers. The takeout on win, place, and show bets would go from 14% to 15.5%, while the rate on exotics would rise from 17.5% to 19% on NYRA races.

The Assembly also rejected Pataki's plan to place administration of Thoroughbred breeding funds into the state's Agriculture and Markets agency.

The Republican-led state Senate, meanwhile, has joined with the Assembly in rejecting Pataki's bid to locate eight more VLT parlors around the state. A Senate budget bill also accepts the governor's hike in regulatory fees paid by the tracks and OTBs to fund the state's costs for overseeing the industry. Unlike the Assembly, the Senate embraces the governor's plan for a new agency to regulate all aspects of gambling in the state, as well as a independent board to monitor NYRA.

The Senate is also poised to pass, according to sources, two different measures to spur VLT programs at racetracks. Besides the measure that would pay purses and breeding funds out of the state's general fund, industry officials are pressing for passage of a competing bill that would increase VLT shares to racetracks to about 40 percent, from which tracks would then be responsible for cutting deals with horsemen for a share of the VLT revenues for purses. Observers believe the sides are close to a VLT deal and that the Senate's passage of the two bills could prod talks along further. One source said a lobbyist on Tuesday during a conference call said he had assurances from the Assembly that its leadership is possibly willing to back the Senate bill that pushes the VLT splits for tracks to 40 percent. Both pending Senate bills would give assurances to MGM Mirage, NYRA's VLT partner, that it would be permitted to remain at Aqueduct as the VLT operator even if NYRA loses its franchise at the end of its current term on December 31, 2007; MGM has been unwilling to invest more than $100 million for the VLT plan unless it can be assured it remains as the Aqueduct operator no matter who holds the franchise beginning in 2008.

Copyright © 2005 The Blood-Horse, Inc. All Rights Reserved.

Hamburg, NY, March 16, 2005 -

Vernon, NY, March 10, 2005 -

Court invites new plans for Vernon Downs

By RACHAEL PROTZMAN, Dispatch Staff Writer03/10/2005

UTICA - The U.S. Bankruptcy Court ruled on Wednesday to terminate Mid-State Raceway's exclusive right to submit a reorganization plan for the track.

The court will accept competing bids following April 4.

"That will allow other people to put in competing bids for the track," said Deborah Deitsch-Perez, a lawyer for majority shareholder Shawn Scott. "Which is what everybody wanted, except for the debtor and Mr. Gural."

Jeff Gural has loaned Mid-State, the parent company of Vernon Downs,, $1.2 million with hopes of starting a 2005 racing season. Mid-State Raceway has accepted an offer, which is included in its reorganization plan, from Gural for a total of $8.5 million in return for 91 percent of the company's stock.

The competing bids will seek approval from the creditors. Each of the unsecured creditors, secured creditors and equity holders will have a say in which plan to accept.

As an equity holder, Scott would also have a vote in which plan is chosen.

"Everybody in the case, other than the debtor and Mr. Gural, opposed the extension of exclusivity because they all said in order to get the best deal for Mid-State, you need to have competing bidders," said Deitsch-Perez. "The court gets to decide if the plan is feasible and if it's fair and equitable. Everybody has to put up or shut up. You put in a plan and people pick which one they're going to vote for. All of the different groups get to vote on which one they want."

Recently, Scott suggested a plan in which Gural and Scott would each pay $18 million to purchase the track. Of the total $36 million, most would go to creditors, including $27 million that would be used to pay a debt to Vestin Mortgage. In addition, $3 million would be divided among Mid-State's existing shareholders. Gural and Scott would become 50-50 partners in a new venture at Vernon Downs.

According to Deitsch-Perez, the parties are setting up a meeting to discuss the offer.

"I think what it does is it encourages Mr. Gural to work with us, because if he doesn't, well then we can put in our own offer," said Deitsch-Perez. "I think if we can't work something out with Mr. Gural, it's very likely that we would."

According to current chief executive officer Justice Cheney, Mid-State has a hearing scheduled for April 26 on its reorganization plan.

"Why wouldn't, if you were a debtor and we owed you money, why wouldn't you say, well, let's wait until after the fourth and see what Shawn Scott offers or what somebody else offers? So I don't know if this helps us, but it does give us some time," said Cheney.

He also said Mid-State would be acting to get as many creditors on board with its reorganization plan between now and April 4.

©The Oneida Daily Dispatch 2005

Vernon, NY, March 8, 2005 -

Hearing concludes on bid for racing license at track

Tuesday, March 08, 2005
By Glenn Coin
Staff writer

A hearing to determine whether Vernon Downs' majority shareholder should get a racing license ended Monday, after 15 days of highly detailed testimony that stretched over parts of three months.

Administrative Law Judge Russ Baller said the hearing was the longest and most involved he has overseen in his seven years with the state Racing and Wagering Board. It began Jan. 25, and was held intermittently since then to accommodate schedules of Baller and the lawyers.

Shawn Scott, who was denied a license in December 2003, said he is confident he will finally receive permission to be involved in racing in New York.

Baller has no deadline to make his recommendation to the full racing board, which will vote on Scott's license. Baller said he has to review hundreds of pages of transcripts generated by the hearing and look at hundreds of documents submitted by both sides. He told Scott's lawyers it could be months before he makes his recommendation.

The racing board will ultimately vote on Scott's appeal. If the board denies Scott a license, he can go to court.

Staff members of the state Racing and Wagering Board had denied a license, saying Scott had lied on his application and was unfit to be involved in racing. Scott appealed shortly afterward, but repeated postponements delayed the hearing until January.

Scott owns 52 percent of Mid-State Raceway, Vernon Downs' parent company. He has backed $23 million of the track's $26 million mortgage.

© 2005 The Post-Standard. Used with permission

Vernon, NY, March 5, 2005 -

Gural calls Scott partnership 'unlikely'

By RACHAEL PROTZMAN, Dispatch Staff Writer

VERNON - Track officials on Friday did not rush to embrace an offer from Shawn Scott that would potentially end the debt at Vernon Downs.


Mid-State Raceway got an offer Thursday from Shawn Scott, the track's majority shareholder, that proposed he and Tioga Park racetrack owner Jeff Gural team up to purchase the track for $36 million.

Gural has loaned Mid-State $1.2 million with hopes of having a 2005 racing season. The track has accepted his offer of a total of $8.5 million in return for 91 percent of the company's stock. Scott currently owns 52 percent.

Gural's offer would go into effect only if approved by the court.

Scott's offer suggested a plan in which Gural and Scott would each pay $18 million. Of the total $36 million, most will go to creditors, including $27 million that will be used to pay a debt to Vestin Mortgage. In addition, $3 million will be divided among Mid-State's existing shareholders. Gural and Scott would become 50-50 partners in a new venture at Vernon Downs.

"I haven't had a chance to thoroughly review it," said Gural. "I think it's unlikely that we would want to partner with Scott."

"We just felt that in the interest of trying to move forward productively to get the track open, Mr. Scott made this new offer," said Andrew Frank, a spokesman for Scott.

Scott's letter followed Thursday's U.S. Bankruptcy Court approval of Edward Tracy as the company's new chief executive officer. Tracy is the former president and CEO of Trump Hotel Casino Resorts. He will begin operating Vernon Downs as soon as his application to the state Racing and Wagering Board is approved.

"He's very experienced," said Gural. "He worked with Donald Trump, and that's not the easiest thing. I think he brings a lot to the table and hopefully we can get some direction from the court and move this thing forward."

Gural nominated Tracy as part of his agreement to loan Mid-State Raceway $1.2 million.

"I think Mr. Scott is whistling past the cemetery," said Paul Noyes, president of Mid-State Raceway. "When somebody whistles past the cemetery, they're afraid. He's afraid of Mr. Gural. It's up to Mr. Gural whether he wants to enter into a deal with Mr. Scott."

Gural is still hopeful that the track will have a racing season this year.

"I'm optimistic that we will be able to work something out with all the parties so that we can concentrate on getting the track open," he said. "I've had some discussion and I think it's good that Scott reached out and tried to find a solution to this. And I'm also anxious to find a solution and try to get the track open. So that's what I'm really hoping we can do, rather than continue fighting amongst ourselves. That's not doing anybody good."

©The Oneida Daily Dispatch 2005

Hamburg, NY, March 4, 2005 -

Vernon, NY, March 4 2005 -

Court OKs track chief

Former Trump official gets approval to head Vernon Downs' parent company

Friday, March 04, 2005
By Glenn Coin
Staff writer
 
A former Trump casinos executive was formally approved in bankruptcy court Thursday as the new chief executive officer of Vernon Downs' parent company, Mid-State Raceway.

Edward Tracy, 52, said he will start as soon as the state Racing and Wagering Board approves a temporary license for him.

Justice Cheney, a Mid-State board member, said Tracy's appointment will help pull the company out of bankruptcy.

"I think this is the kind of person we need," Cheney said. "He's someone who can take responsibility for getting the licensing going and get the casino open and get the hotel back on track."

Tracy has more than 20 years in the gambling and hotel industry. He has opened casinos in several states and in Puerto Rico. He served as president and CEO of Trump Hotel Casino Resorts in the early 1990s and was a consultant to the Oneida Indian Nation when the nation opened Turning Stone casino in 1993.

Tracy's $20,000-per-month salary will be paid by New York City businessman Jeff Gural, who has signed a deal to lend Mid-State $8.5 million in exchange for 91 percent of the company's stock. The deal also gives him the right to name two board members and a CEO.

Lawyers for Gural's rival investors questioned Tracy in U.S. Bankruptcy Court Thursday about whether Tracy was committed to the job. One lawyer noted that Tracy has a $2.5 million contract to open and run a racetrack and casino in western Pennsylvania.

Tracy said it will be 18 to 24 months before the necessary approvals and financing are in place to open the Pennsylvania track.

"There will be no reason for me to spend an inordinate amount of time on that project in the next 18 months," Tracy said. "Most of my time in the next six months will be spent here. That's what this facility needs."

The unopened casino at Vernon Downs is the key to Mid-State's success, Tracy said.

"The casino will be the tail that wags the dog," Tracy said.

In court papers, Mid-State officials estimate the casino's video gambling machines will bring in $47 million per year. About 60 percent of that would go directly to the state Lottery Division.

After Thursday's hearing, Tracy said he already has started making plans for the Oneida County track's rebirth. He said the key is to bring together all four parts of Mid-State - the harness racing track, hotel, casino and restaurants. He plans to appoint a manager for each.

Mid-State's majority shareholder, Shawn Scott, has tried unsuccessfully to stop Gural from investing money in Mid-State. Board members have rejected Scott's offers. They say they don't trust him and have noted that Scott was denied a license by the state Racing and Wagering Board. He has appealed that denial, and his appeals hearing continues this week in Albany.

Tracy said he has been licensed by six states, Puerto Rico and the National Indian Gaming Commission. He said he saw no problem in getting licensed in New York, too.

Tracy said regulators told him they wouldn't act on his license application until he was officially confirmed by the bankruptcy court.

A hearing on a separate motion to appoint an independent trustee to run Mid-State Raceway was postponed Thursday. Lawyers for Scott and mortgage holder Vestin in August had asked the bankruptcy court judge to appoint a trustee, who would have broader powers than a CEO and would run the company with little interference from the board of directors.

The trustee motion has been postponed indefinitely until the judge rules on whether other investors will have a chance to compete with Gural.

© 2005 The Post-Standard. Used with permission.

Monticello, NY, March 2, 2005 -

Monticello about to unveil its new paddock

by John Manzi, publicity director, Monticello Raceway

Monticello, NY --- Workers continue to put the finishing touches on Monticello Raceway’s new race paddock, and track management is preparing to open the facility in the very near future.

“Despite the unusually harsh winter, we are tentatively scheduled to use the new facility for the first time on Wednesday, March 9,” said the Raceway’s general manager, Shawn Wiles. “ It’s been long-awaited, and will be a welcomed addition to our entire racing operation.”

The building covers 16,000 square feet, and will house seven races.

“It’s state-of-the-art and will include a men’s and a women’s locker room, a drivers’ lounge, a laundry facility, a veterinarian’s area, and a snack bar,” Wiles said.

The paddock has radiant gas heating, a complete exhaust system, a fire alarm system, a paging and sound system, and a closed circuit TV security system.

The new paddock, which was built at a cost of $1.7 million, is located on the backstretch, near the final turn of the half-mile oval, in some of the space once occupied by the track’s original outdoor paddock.

Vernon, NY, March 2, 2005 -

Hearing to focus on trustee

Lawyers return to court Thursday morning to argue whether a judge should appoint an independent trustee to run Mid-State Raceway, the parent company of Vernon Downs harness racing track.

Mid-State's majority shareholder, Shawn Scott, and its biggest creditor, Vestin Mortgage, have argued since August that Mid-State officials are ruining the company. Scott and Vestin want a federal bankruptcy court judge to appoint a trustee who would have broad powers to run the company.

At Thursday's hearing in federal bankruptcy court in Utica, lawyers for Vestin and Scott plan to question four Mid-State officials and one former Mid-State employee.

Mid-State plans to call one witness: Edward Tracy, the former Trump casino executive tapped to serve as interim chief executive officer. Tracy was chosen by Jeff Gural, the New York City businessman who wants to invest $8.5 million in Mid-State in exchange for 91 percent of the company's stock.

The hearing begins at 9 a.m.

Staff writer Glenn Coin

Vernon, NY, March 1, 2005 -

Mid-State seeks to hire ex-Trump Casinos officer

Vernon Downs' parent company will ask a bankruptcy court judge Thursday for approval to appoint a former Trump Casinos executive as interim chief executive officer.

Edward Tracy, who was president and CEO of Trump Hotel and Casino Resorts in the early 1990s, would be paid $20,000 a month to run Mid-State Raceway.

Tracy's salary would come from investor Jeff Gural, who has agreed to lend Mid-State $8.5 million in return for 91 percent of the stock and the rights to name a CEO and two board members.

Buffalo, NY, February 26, 2005 -

HAPPY HANDICAPPER

Beback gives stable training to bank on

By BOB SUMMERS
2/26/2005

The "Flying Turns" of Cleveland's Northfield Park have Ron Beback Jr. off to a flying start at Buffalo Raceway.

Three horses from Beback's stable won races on the Hamburg track's season-opening programs last weekend. Beback, who drove all three, attributes their success to a busy winter competing at the Ohio half-miler that brags about its high-banked turns.

Beback raced 10 horses at Hamburg. They turned into three winners - OG's Ranger ($6.90 for a $2 win bet), Society Angel ($5.10) and KG's Rebel ($13.60) - and three thirds - CSI Turn And Burn, Big Ransom and Table Cloth. All six in-the-money finishers were winter-raced at Northfield.

Except for Big Ransom, the 6-year-old pacing mare Beback says is the star of his 16-horse barn, none even sniffed the winner's circle at Northfield. But, Beback said, the Ohio experience still served them well.

"That track speeds 'em up," Beback told the Happy Handicapper. "They learn to get toughened up quick. . . . It's a speed track, for sure. It's like a bowl, very short straightaways and big turns.

"The caliber of horses is much stronger and the style of racing is different. The drivers are very aggressive. They pull at the quarter pole. As soon as the timer lights up (showing the first-quarter time), they're out and going.

"Their horses can take a lot of air (race in front or first over), but only because the racetrack allows it. Because it's so banked (14.5 percent, according to a Northfield spokesman), the horses don't tire themselves as quickly. . . . It makes a very big difference. On a flatter turn a horse has to use more energy to get through the turn. On a banked turn he doesn't have to use as much."

Beback moved his stock to Cleveland in August and the results were disappointing. His horses won only two of 68 starts and only 20 finished in the money.

"We really didn't have a very successful meet at all," he said. "But the caliber of horses we had were Buffalo Raceway stock, and they just aren't good enough to compete on that surface."

Now that he's back home, Beback figures his Cleveland edge will be good for "at least three weeks, anyway, until everybody's horses (at Hamburg) start getting tightened up."

Eye catchers

Beback's KG's Rebel turned in one of the most impressive stretch runs of opening weekend. The 8-year-old gelding picked up 53/4 lengths in the final quarter of a 2:03 4/5 mile to beat the front-running Fiery Sahbra by a neck. According to the charts, he paced the final quarter in 29 seconds, the second-fastest last stanza of the weekend.

The fastest final quarter (28 4/5) was posted by El Paso Hanover, the Tim Dunlap trainee who led all the way to win Saturday's Open II pace in 1:59 4/5, the fastest race of the season. He won by 71/4 lengths with Jamie Dunlap driving for owner David Krol of Alden.

The biggest winning margin was rung up by Early Winter, who wired the field by nine lengths in 2:04 2/5 as 62-year-old driver Gerry Sarama got the first winner of his Raceway comeback. The 4-year-old gelding trained by Gerald Keene was coming off a lifetime-mark victory (2:01) at Rosecroft (Md.) eight days earlier.

New York Knight N, driven by John Cummings Jr. for trainer Brenda Ohol, won the $6,500 Open Pace, the weekend's co-richest event, by 11/2 lengths in 2:00 with benefit of a perfect trip. The 6-year-old gelding left from the No. 1 post and inherited the "garden spot" behind Colossus of Roads, who cut fast fractions of 28 3/5, 59 and 1:29 3/5.

Donnizetti, a 5-year-old gelding driven by Jim McNeight for trainer Michael Hanin, got the trip of the week in Saturday's fourth race. He sat behind a furious duel between Fames Fifth Avenue and CC's Dadimissya as they battled through a half in 1:00 2/5. He inherited the lead and held on to win by a head in 2:04, pacing his last quarter in a tiring 32 seconds.

Handicapping contest

Buffalo Raceway tonight presents the second of four qualifying rounds of a competition to win a free trip to New Jersey and a berth in the $50,000 first prize National Harness Handicapping Championship at The Meadowlands on April 2.

Entry fee is $20, and you can enter as many times as you want. Each entry gets 10 mythical bets ($200 win and place) and must play at least five Raceway events plus five others from Hamburg, Meadowlands or Woodbine. The final two qualifying rounds are Friday and next Saturday. The top 25 finishers in each qualifier meet in a final March 12. Cash prizes will also be awarded in the final, with the amount determined by number of entries.

e-mail: rsummers@buffnews.com

Hamburg, NY, February 25, 2005 -

Batavia, NY, February 22, 2005 -

Work begins to convert track space for gaming

from the Buffalo Evening News

BATAVIA - Construction has begun on a $1.5 million conversion of space in the Batavia Downs grandstand into a video gaming center scheduled to open in mid-April.

Crews have begun remodeling the second-floor Genesee Room to accommodate nearly 600 video lottery terminals, devices similar to slot machines.

The machines should generate $40 million a year in revenue, 71 percent of which goes to the state Lottery Division.

Western Regional Off-Track Betting, the track's owner, will resume night harness racing in August. Financial problems forced cancellation of racing last season.

OTB has renamed the track Batavia Downs Racing and Gaming. The facility, which dates to 1940, is the oldest night-time pari-mutuel operation in North America.

Tioga County, February 24, 2005 -

Tioga Park owners want bigger cut of video gambling revenue

By L.D. GLOVER--Tioga County Editor

NICHOLS -- Expanding the amount of video lottery terminal (VLT) revenues operators can retain and divide with horse owners will be good for New York state in the long run, claims one of the new owners of Tioga Park off the Route 17 Expressway.

Jeffrey Gural, chairman of Newmark and Co. Real Estate of Manhattan, N.Y., who recently purchased the facility with TrackPower Inc. of Kingston, Ontario, Canada, said Thursday that he wants to change the ratio.

Under current law, the racing industry in New York State receives a 29- percent share of VLT revenues. Under a pending bill (Senate Bill 2424) introduced by State Sen. William Larkin, chairman of New York State's Senate Racing Committee (and co-sponsored by Sen. Thomas Libous, R-C,. Binghamton), the bill would raise the percentage to 32 percent for the first $50 million in revenues, 29 percent for the next $100 million and 26 percent thereafter.

Additionally, under the proposed bill, racing facilities would get 8 percent on the first $50 million in VLT revenues to pay for marketing and 5 percent of those revenues beyond $50 million.

Gural noted that at Pocono Downs in adjoining Pennsylvania, the law provides that the racetracks receive 48 percent of the revenue from VLTs and the state gets only 35 percent.

Gural said Tioga Park is slated to open this year as Tioga Downs, but there is no way it can compete if it receives only 20 percent in return.

"I am 100 percent certain that advertising and marketing and promotion, which most of the added revenue would go for, will bring in a lot of additional people and boost the profits (at Tioga Park)," he said.

Gural added that current estimates call for the installation of about 750 VLT machines at Tioga Park, which he noted willl be played by people "if they have to stand in line."

The VLTs are awaiting a declaration by the state as to their constitutionality, which has been questioned by the New York State Appellate Court Division, and their installation at Tioga Park will require the permission of the Tioga County Legislature.

Tioga County Leguslator Mark Tracucco, while addmitting that the racetrack's opening would be good for Tioga County, pointed out that numerous (unnamed) legislators are opposed to gambling, fearing that family persons would bet money that would be better spent on purchasing food or for the payment of bills.

"I am committed to getting this park open, and we have resurfaced the track and reroofed the horsebarns," Gural noted. "Right now, we are committed to waiting."

Gural expressed confidence that with the aid of Sen. Libous' legislation regarding VLT revenues will soon be passed at the state level, allowing further work at Tioga Park to go forward.

The planned demolishing of the current 3,100-seating-capacity grandstand, restaurant and offices to twice its size is currently stalled because of snow and rain.

The end result of the conversion will be a "racino," Gural explained.

Copyright © 2005 Sayre Evening Times

Vernon, NY, February 23, 2005 -

Judge retains track's board

Mid-State Raceway directors have done nothing to be dismissed, court rules

Wednesday, February 23, 2005
By Glenn Coin
Staff writer

A bankruptcy court judge on Tuesday refused to toss out the directors who run Vernon Downs' parent company, saying they had done nothing to warrant dismissal.

The 90-minute hearing was one of the most contentious yet since the track's parent company, Mid-State Raceway, filed for bankruptcy in August, with one lawyer calling it a "sideshow" and another likening his opponents to locusts.

The major business of the day was a motion by Mid-State's majority shareholder, Shawn Scott, and the company's largest creditor, Vestin Mortgage, to get rid of the entire Mid-State board of directors. Scott and Vestin said the five directors had acted irresponsibly and were ruining the Oneida County racetrack. But U.S. Bankruptcy Court Judge Stephen Gerling said the directors could only be removed if they had acted fraudulently or in bad faith.

"They have acted out of a sense of urgency and they have acted from a sense of mistrust, rightly or wrongly, of Mr. Scott," Gerling said. "I don't think anything they have done rises to the level of quote, acting in bad faith or acting with fraudulent intent."

On a separate motion, Gerling said he would decide soon if other investors can compete for

the right to invest in, and control, Mid-State. The company Monday filed a reorganization plan backed by New York City businessman Jeff Gural, but at least five other companies, including Scott's, have shown interest in investing millions to get the harness track running again.

The big prize is the empty casino building at Vernon Downs, which could house 1,100 electronic gambling machines and generate $80 million a year, according to 2004 estimates.

Mid-State lawyer Lee Woodard said Monday the track hopes to get its license back and start racing by late April.

Several lawyers urged Gerling to allow investors to submit competing offers.

"Tomorrow everybody should be allowed to file a competing plan," said Deborah Deitsch-Perez, Scott's lawyer. "That's the only way we're going to get other offers in there and it's the only way we're going to get Gural's offer improved."

Mid-State's exclusive right to file a reorganization plan expired Tuesday. The company slipped in under the wire by electronically filing a plan Monday afternoon, Presidents Day, when the courts were closed. Gerling said Tuesday morning he had not seen the plan.

Lawyers argued about whether other companies could file plans or be forced to wait two months while Mid-State put its plan to a vote of creditors. Monday's offer calls for Gural to invest $8.5 million in the track and get 91 percent of Mid-State stock in return. Scott, whose interest in the company would plummet from 52 percent to 5 percent, said he would fight that plan.

The next court date is set for March 3, a hearing to determine if an independent trustee should be appointed to run the company.

Mid-State filed for bankruptcy more than six months ago, and patience among lawyers appeared to be wearing thin Tuesday.

"This is becoming a sideshow," said Camille Hill, who is representing the unsecured creditors. "We have a racing season coming up in a few months. We need to move forward, or come this summer there isn't going to be anything left to reorganize or sell . . . . This case may implode while this sideshow goes on."

Woodard saved his strongest criticisms for lawyers representing Scott and Vestin.

"I admit we have a huge obstacle. They're sitting right here," he said, motioning to the Scott and Vestin lawyers. "They're like a plague of locusts. They just keep coming, and they will eat anything in their path until it's gone."

© 2005 The Post-Standard. Used with permission.

Vernon, NY, February 22, 2005 -

New offer for track seeks 91% of stock

Real estate investor drops his requirement for bigger cut of casino profits

Tuesday, February 22, 2005
By Glenn Coin
Staff writer
 
A New York City businessman proposed Monday to bring Vernon Downs out of bankruptcy and award himself 91 percent of the track's parent company.

But the majority owner of Mid-State Raceway said he'd fight the plan, filed in U.S. Bankruptcy Court Monday afternoon.

The plan calls for real estate investor Jeff Gural to pump $8.5 million into Mid-State to get the Oneida County track running and open an adjoining casino.

Gural made a similar offer last month but said he would only invest the money if the state Legislature gives racetracks a bigger slice of casino profits.

In the plan filed Monday, Gural dropped that requirement in return for 91 percent of the stock.

This means current stock owners would see their ownership diluted dramatically. The largest stockholder, Shawn Scott, would see his ownership in the track drop from 52 percent to just under 5 percent.

"I would be entirely opposed to being diluted by more than 90 percent," said Scott, who had not seen the plan. "I would be prepared to go to court to stop it."

Gural's plan calls for all creditors to be paid 100 percent of what they are owed. In many bankruptcy cases, creditors end up with only a small percentage of what they're owed.

Creditors will have the chance to vote on the plan. Final approval could take several months, said Mid-State bankruptcy lawyer Lee Woodard. In the meantime, he said, Vernon Downs will try to win back its racing license and start the season in late April.

"Our goal is to be up and open in another two months," Woodard said. "There shouldn't be any reason not to have our license reinstated."

The state Racing and Wagering Board in July suspended the track's license over bounced checks to race winners.

Lawyers will be in bankruptcy court today to discuss several motions, but not Gural's plan. One of the motions to be heard today is a request by Scott to remove all five Mid-State directors.

© 2005 The Post-Standard. Used with permission.

Tioga County, February 19, 2005 -

Tioga Downs waiting for changes in the law

By: Patrick Abdalla 02/19/2005

The owner and CEO of Tioga Downs, Jeff Gural, said the race track is waiting on the New York Legislature to change laws that regulate video lottery machines, for work on the track to be completed.

According to Gural, the race track could bring 400 new jobs to the area when it is opened. He said he is optimistic that the laws will be changed.

"We're really waiting for the state, and we're feverously working on our plans," he said.

"I'm very optimistic," Gural said. "However, I have spent a million and a half dollars and I'd be very disappointed if it didn't work out."

Jeff Stoke, deputy director of economic development for Tioga County, explained the hurdles video lottery faces in the state and county.

According to state law, the county must authorize the operation of video lottery terminals for the facility to run, Stoke said.

However, before the county can take up the legislation, the state has to answer two questions concerning video lottery. According to Stoke, the first question concerns where the money generated from the machines will go. Current state law says the money that goes to the government must go toward education; however, Stoke said, there is some funding going into the budget's general fund.

Bijoy Datta, a spokesperson for state Sen. Thomas Libous' office, said the problem concerning where the state's money goes is why the constitutionality of the law has been questioned.

The second question the legislature must answer deals with competition with Pennsylvania. Stoke explained that facilities with video lottery in the Keystone State are allowed to keep 20 percent of the profit. Under current New York laws, facilities would be able to keep only around 10 percent, he said.

"That would put New York at a disadvantage competitively," Stoke said.

Gural, who owns a real estate company, said horse racing has been a long-time hobby of his. "My passion is harness racing, so I've always wanted to own a race track," he said.

Gural also talked about the work being done on the race track. He said the company has begun installing a new track, restoring the barn area, and doing demolition work on the grandstand.

©Daily and Sunday Review 2005

Vernon, NY, February 20, 2005 -

Racing at track again no sure bet

Vernon Downs still needs a license and an approved reorganization plan

Sunday, February 20, 2005
By Glenn Coin
Staff writer

Wondering whether Vernon Downs will open for the season has become an annual ritual in Vernon.

This year, as in the past several, Vernon Downs' future is muddier than a horse's hooves after a training run.

The harness track's finances are worse than ever. Parent company Mid-State Raceway is in bankruptcy, saddled with more than $30 million of debt. Vernon Downs' racing license was yanked in July by the state after the track bounced at least 20 checks to race winners.

The stock's majority shareholder, Shawn Scott, is still having trouble getting a permanent license, and now he wants a judge to toss out the entire Mid-State board of directors. Scott also is fighting with New York City real estate investor Jeff Gural for control of the track. At least four other investors are circling, waiting for the bankruptcy court judge to declare the bidding open.

And while bankruptcy court hearings are crammed with up to 17 well-dressed lawyers, the horsemen continue running their animals around the training track, with hopes the season will begin as usual in April.

"The guys who do this for a living don't know from week to week, from month to month, whether they're going to have to pack up their stuff and leave," said horseman Joe D'Agostino.

Even Gural, who won court approval to loan the Oneida County track $1.2 million, concedes he's not sure if the track will run this year.

"I don't know what's going to happen," said Gural, a New York City real estate investor who owns harness horses. "There's always another surprise when it comes to Vernon Downs."

The track has filed an application to race about 80 days this year. That's down from the 110 days approved last year.

There are a number of hurdles to jump before the track can open. It needs a license from the state Racing and Wagering Board, but hasn't filed a complete application yet. It needs to have a reorganization plan approved by a bankruptcy judge, but no one is sure yet whether Mid-State officials, potential investors or both will submit a plan.

Still, some people involved with the track are optimistic that the horses will run this year.

"We don't know how, but we're all anticipating we'll have a 2005 racing season," said Justice Cheney, the track's interim chief executive officer and a member of the Mid-State board. "We'll have to move fast because we're almost at the end of February."

At the end of last February, the racing board denied the track a license, saying Mid-State's financial condition had continued to deteriorate under Scott's management. The track finally opened when Scott agreed to step aside and let an independent manager run the place.

In 2003, the track had trouble getting a license until it signed a new agreement with the horsemen and until a business partner of Scott's agreed to file a license application.

The year before that, the state refused to grant Vernon Downs a racing license because of questions about Scott. He promised to steer clear of the track while the board investigated his background, and the track finally got a racing license.

In December 2003, the racing board denied Scott a permanent license and revoked his temporary license. He has appealed the denial, and is in the middle of a lengthy hearing to get his license back. Testimony is scheduled to end by early March, but it could be months before a hearing officer makes a recommendation and the racing board votes on Scott's license.

In the recent case of the Syracuse Brigadiers, a hearing that also involved days of testimony, the hearing officer took about six months to issue his report and recommendation, said racing board spokeswoman Stacy Clifford.

In the meantime, Scott last week won reinstatement of his temporary license, which allows him to participate in the track. But he has no vote on the board, so he can't directly exert any power.

Still, Scott said reinstatement of his temporary license should help clear the way for Vernon Downs to start racing this year.

"I think this is a very, very positive development," Scott said. "At least my licensing won't be an impediment."

In Vernon, the annual uncertainty about the track's opening is hard on employees and the surrounding community, said Vernon town Supervisor Myron Thurston. Several hundred people work at the track during racing season, which usually runs from April to November.

"It's a difficult situation," Thurston said. "Hopefully, we will have someone come in who can be licensed. That's the best we can hope for, to get the track back on its feet and get the people back to work."

© 2005 The Post-Standard. Used with permission.

Vernon, NY, February 19, 2005

Ex-Trump CEO to run track

Vernon Downs board of directors to vote on appointment today

Saturday, February 19, 2005
By Glenn Coin
Staff writer
 
A man who once ran Donald Trump's Atlantic City casinos has been chosen to help pull Vernon Downs out of bankruptcy.

Edward Tracy, 52, could start next week as chief executive officer of the Oneida County track's parent company, Mid-State Raceway.

The track's board of directors is scheduled to vote on his appointment today.

Tracy was president and CEO of Trump Hotel Casino Resorts and worked for Trump in 1990 and 1991, when Trump filed bankruptcy on the Taj Mahal, one of the hotels Tracy oversaw.

"So I know a little bit about bankruptcies," Tracy said.

Mid-State filed bankruptcy Aug. 11.

Tracy also was president of the consulting company that helped the Oneida Indian Nation launch the original Turning Stone casino in 1993.

Mid-State board member Justice Cheney expects Tracy's appointment to be approved.

"Everybody has looked at his background, and we're impressed," said Cheney, who also is the company's interim CEO.

Tracy has been nominated by New York City real estate investor Jeff Gural.

Gural has agreed to loan the track $1.2 million, in return for naming a CEO and two board members.

Tracy said he spent several days in Vernon last week examining the books at Vernon Downs.

"I think it's a very, very solid opportunity," he said.

© 2005 The Post-Standard. Used with permission.

Toronto, ON, February 16, 2005 -

Ontario promulgates new equine health rules

Wednesday, February 16, 2005 - from the Ontario Racing Commission

Toronto, ON --- Due to the recent outbreak of EVR (Equine Viral Rhinopneumonitis), also known as Equine Herpes, the Ontario Racing Commission has implemented new procedures, effective immediately.
Prior to being allowed to enter the paddock or ship-in barn area at any Ontario racetrack, all horses coming to Ontario from another jurisdiction must be examined by the Commission’s official veterinarian. The examination will include, but may not be limited to, taking the horse’s temperature.

The Ontario Racing Commission is also requiring racetrack management to ensure that paddocks and ship-in barn areas are frequently disinfected.

Race secretaries are advised to include the following statement on all overnight sheets until further notice: “Due to the recent outbreak of EVR (Herpes Virus), trainers are advised to check their horse’s temperature prior to shipping into an Ontario racetrack. If a horse has an elevated temperature the trainer must ensure that the appropriate action is taken and that a veterinarian is contacted.”

Vernon, NY, February 17, 2005 -

Vernon Downs' key owner gets license back

Thursday, February 17, 2005
By Alaina Potrikus
Staff writer

A state Supreme Court judge has reinstated the racing license of Vernon Downs' majority owner, Shawn Scott - at least until a hearing March 11.

"This is another step in helping Vernon Downs get back on its feet, getting horse racing going again, having employees working again and getting much-needed revenues to the state education fund," Scott said in a statement.

Justice Thomas Spargo has ordered the state Racing and Wagering Board to prove at next month's hearing why Scott is unfit to hold a racing license.

Scott, who owns 52 percent of Vernon Downs, first invested in the Oneida County track in April 2002. He was granted a temporary license, but the state Racing and Wagering Board revoked it in December 2003, saying he had lied on his application.

Officials from the state Racing and Wagering Board and Vernon Downs' parent company, Mid-State Raceway, could not be reached for comment.

In recent weeks, Scott has been competing with New York City businessman Jeff Gural to invest millions in Vernon Downs, which ceased racing and filed bankruptcy last summer. Earlier this month, the Mid-State board rejected Scott's $9 million financing offer.

"We don't trust Shawn Scott. It's as simple as that," Mid-State board Chairman Paul Noyes said in U.S. Bankruptcy Court. "We don't trust the promises he makes. Whatever he promises isn't going to happen. There is always going to be some way out."

The board decided to stick with an $8.5 million financing deal it had accepted Jan. 14 from Gural.

© 2005 The Post-Standard. Used with permission.

Buffalo, NY, February 16, 2005 -

Money is on everyone's mind at Buffalo Raceway qualifier By ROBERT J. SUMMERS News Sports Reporter 2/16/2005

James P. McCoy/Buffalo News John Cummings Jr. and Champagne Victory (8) splash past Mike Ohol and Zeus during a qualifying race for trotters at Buffalo Raceway on Tuesday afternoon.   Not a dime was bet on the 14 races run at Buffalo Raceway on Tuesday afternoon. Not a dollar in purse money was earned by any of the 104 trotters and pacers competing over the sloppy tracks. But money - more than $1 million - was still the main topic among drivers, trainers and owners at the first session of "qualifier" (practice) races leading up to the Hamburg track's season opener. "It's like jubilation for all the people concerned. . . . it's like seeing the sun after a long, bad winter," said trainer Jim Mulcahy, describing the impact of the record-high $1,049,906 in the horsemen's "purse account." That's the amount that will start to be paid out to winners (and top five finishers) of the races that begin Friday with a 12-race card worth about $37,000. First race starts at 7:35 p.m. There has been no live racing since October, but over the winter the track's video lottery terminal (slot machine) casino - which opened 11 months ago - has been churning regular deposits into the purse account. Prize money is up about 20 percent over last year and, horsemen hope, still rising. "It makes a promise for people. It makes them look forward to something. It's a stepping stone for people to get rolling again," said driver Jamie Dunlap. "It means we get to race for another 10 years. Without it (slots money) we were dead," added driver John Cummings Jr. "After years of struggling, horsemen are finally beginning to make the living they deserve," said Bruce Tubin, president of the Western New York Harness Horsemen's Association. "But first," reminded Mulcahy, "you have to win." Tuesday's winners weren't necessarily the best horses on the grounds. Qualifiers are not held for purse money but to allow horses to demonstrate they are fit to race for real. The day's fastest horse was Fames Fifth Avenue, which paced a front-running mile in 2:04 1/5 for driver Dan Yetman and trainer John MacMillan. Qualifying time pacers was 2:09 for pacers, 2:11 for trotters. Two of the day's fastest horses were driven by Gerry Sarama, a veteran who has decided to come out of retirement and make a comeback as a full-time driver at age 62. "I took early retirement (on the WNYHHA pension plan) when I was 56," Sarama said. "Because of that I couldn't drive at Buffalo or Batavia Downs. But now I'm old enough to be allowed to come back." Sarama - who won several driving championships at Buffalo and Batavia Downs in the 1970s and '80s - drove pacers Magic Manner (2:04 4/5) for trainer Gerald Keene and the John Cummings Sr.-trained Notimetobeshy (2:06) to strong front-running victories in back-to-back races. "They are two nice horses. I've been behind them before," said Sarama, who said he has kept his hand in by racing part time at Saratoga and other tracks. "The horsemen are very happy. They've got some guarantees now," said General Manager Simon Crawford. "Hopefully, the bigger purses will lead to better horses and better races. The first stakes races for "better horses" start March 11-12 with the "March Madness" series for older pacers with fewer than four wins or earnings under $8,000 as of Dec. 15. Females race in $3,000 prelims on Fridays with males going on Saturdays. The $9,000 finals are March 25-26. Crawford said the Web site (buffaloraceway.com) has added more features, including "instant" results - for horsemen and fans. Starting Feb. 25, the Raceway will sponsor a handicapping contest ($20 entry fee) with the top prize a shot at the $50,000 first prize in the National Harness Handicapping Championship at The Meadowlands in New Jersey on April 2.

Albany, NY, February 15, 2005 -

Hevesi audit criticizes operations of equine research fund

An audit released Tuesday by state Comptroller Alan Hevesi's office concluded that a state authority that promotes agriculture, horse breeding and equine research has "serious weaknesses" in its internal financial controls.

The audit faults the Agriculture and New York State Horse Breeding Development Fund for failing to validate monetary receipts it receives from horse racing venues, failing to have written policies on collecting cash receipts and other matters. It also faulted the fund for having a part-time employee who collects the same benefits as full-time employees.

In a response to the audit, Michael Hoblock, the chairman of the fund, issued a letter saying fund officials agreed to the need for written collection procedures and were developing policies to be presented to the fund's board for approval. The board also would discuss the situation of the part-time employee, a staff attorney, who is receiving full-time benefits.

Many of the other recommendations made in the audit have already been, or will soon be implemented, according to the response.

In addition to conducting research, the fund, which was created in 1965, offers grants to county and town fairs for racetrack repair and construction, as well as educational programs for local 4-H clubs. It receives a percentage of the bets placed on harness races in the state, and from out-of-state thoroughbred races that are simulcast at New York harness racing tracks.

© 2005 American City Business Journals Inc.

Albany, NY, February 15, 2005 -

New York Governor Calls for Quick Resolution to Slots Delay
by Tom Precious
Date Posted: 2/15/2005 3:28:18 PM
Last Updated: 2/15/2005 7:25:46 PM

New York Gov. George Pataki, called for action on dispute over casinos at racetracks. Associated Press

Additionally, tracks would get 8% on the first $50 million in VLT revenues to pay for marketing, and 5% of revenue beyond $50 million. The measure would leave it up to racetracks to cut deals with horsemen as part of contracts to determine how much of tracks' VLT revenues would then go to purses. The measure is silent on NYRA's MGM situation.

Buffalo, NY, February 12, 2005 -

HAPPY HANDICAPPER Crash forces Gregory to change pace By BOB SUMMERS 2/12/2005

Harness driver Jeff Gregory won 580 races last year.   Jeff Gregory doesn't remember if he drove in his first harness race at Buffalo Raceway or Batavia Downs. But he's not about to forget the last horse he drove. The filly pacer Avacal Hope changed his life, at least for the next four months or so. Gregory - a late substitute for another driver Jan. 14 - had Avacal Hope in fourth place as the field headed toward the quarter pole in the 10th race at Freehold (N.J.) Raceway. Then everything went terribly wrong. "The horse on the front end broke and the field got jammed up," Gregory told the Happy Handicapper by phone last week. "I just grabbed ahold and she dropped like somebody shot her." Gregory got hit by a trailing horse and was slammed to the ground. The impact broke his left femur - the thighbone that extends from the hip to the knee. Gruesome details about ambulance rides, surgeries and rehabilitation aside, Gregory has ended up on the sidelines for the next few months. He hopes he can return by May. "It's just a different change of lifestyle for me," he said. "Usually, I'm on the go all the time." Simulcast bettors know what he's talking about. In the last couple of years, Gregory - a 38-year-old Rochester-area native who grew up on the Western New York tracks - has become king of the New York City area's most important half-mile tracks. Racing mostly in the afternoons at Freehold (15 minutes from his East Windsor, N.J., home) and at night at Yonkers Raceway (an hour from home), Gregory last year won 580 races while driving horses that earned more than $4.5 million. (Drivers usually get 5 percent of earnings.) According to a Harness Tracks of America formula that consolidates wins, earnings and in-the-money percentage, Gregory was the third-best driver (of 5,181) in North America, behind Driver of the Year Dave Palone (of Western Pennsylvania) and runner-up Catello "Cat" Manzi (of New Jersey). In recent years, local fans have come to know Gregory as the king of the stakes races. He won Buffalo Raceway's biggest race, the $100,000 Hopeful Pace, with Shams Francisco in 1997. In the last two years, he has supplanted Wally Hennessey as the top driver in the New York Sire Stakes program. Last summer, Gregory was the leading driver (54 wins, 161 starts, $1,382,738) on the traveling circuit of stakes races at the Empire State's seven harness tracks. According to the Happy Handicapper's records, Gregory has driven 26 winners (23 in stakes races) at Buffalo and Batavia since 1999. In 2003, he drove four NYSS winners in one night at Buffalo Raceway. On June 26, 2004, at the Hamburg oval, he won three NYSS races for 3-year-old trotters plus the Open Pace Handicap with Dreamin's Esquire, a top pacer trained by his father and mentor, Gary Gregory. "It seems like yesterday I was sitting in my father's lap, jogging horses. People would ask him who his helper was," Jeff said. "Everything I've done in this business I owe to him. . . . Everybody respects him, they know I was taught the right way." Jeff Gregory has been a member of the H.H.'s personal hall of fame since July 24, 1999, when he successfully wagered on Gregory in a NYSS race won by Jobidon JC, a 2-year-old filly who paid $23.40 to win and completed a daily double worth $1,535. "So, Jeff," the Handicapper asked the other day, "what's it like watching the races on TV like the rest of us?" "I see them a little differently," he said. "I'm guessing what's going to happen before it happens, and sometimes I'm right. . . . It's tough to just watch. "It's the best bunch of drivers in the world down here. What you see at Freehold and the Meadowlands and Yonkers, they don't make many mistakes. Guys like (Ron) Pierce, (Dave) Miller, Manzi, (Stephan) Bouchard . . . they can really make a horse go." Pressed for handicapping tips, Gregory said he essentially agreed with something the late Dave Vance told the H.H.: The last three past performance lines are usually the most you need to consider when assessing a horse. "That's about right," Gregory said. "Unless you know he's been sick or whatever." Gregory also pointed out the importance of checking early driving assignments against final assignments. Often, several trainers will name the same driver and the driver must choose his horse from among them. "With the computer now, I can look at the horses' lines (from home) and pick the best horse," he said. "If it's a close pick, I'll pick a guy I drive a big stable for. . . . But you get more drives by being successful than you do for driving for your friends. You've got to produce results in order to get work in this business." While he's sitting home with his wife, Helene, watching the races on TV, does he ever bet? "No," said Gregory, who emphasized he has "no interest in wagering." "I don't mind going to the track and making a little money," he said. "But I definitely don't want to lose money." e-mail: rsummers@buffnews.com

Vernon, NY, February 12, 2005 -

Vernon Downs' loan allowed

Borrowing $1.2 million from NYC businessman means racing might start by April.

Saturday, February 12, 2005
By Glenn Coin
Staff writer

Vernon Downs won court approval Friday to borrow the $1.2 million it needs to begin racing this season.

"Hopefully, this is a great day for Vernon Downs," said Lee Woodard, a lawyer for the track's parent company, Mid-State Raceway. "I think this paves the way to get the horses back in operation, get the horsemen winning purses again, and to be ready to get our license in place by racing season."

Woodard said the track hopes to open the season in April.

The last races were in July. The track was shut down then by the state for bouncing checks to winning horse owners. Mid-State filed for bankruptcy in August.

On Friday, U. S. Bankruptcy Court Judge Stephen Gerling approved Mid-State's request to borrow $1.2 million from New York City businessman Jeff Gural. The ruling allows Gural to appoint a new chief executive officer and two members of the Mid-State board of directors.

But the judge rejected the rest of Gural's offer, which would have allowed Gural to loan Mid-State $7 million more in return for gaining a controlling share of the company's stock. Mid-State will have to go through a separate bankruptcy procedure to make any long-term deal, Gerling ruled.

The ruling could open a bidding war for Mid-State. At least five other companies, including one run by Mid-State's majority shareholder, have made tentative offers to buy or invest in the track.

Investors see potential profits in Mid-State's empty casino building, which could house 1,100 electronic gaming machines. Preliminary studies two years ago showed the casino could bring in $80 million a year.

© 2005 The Post-Standard. Used with permission.

Hamburg, NY, February 11, 2005 -

Hamburg, NY, February 11, 2005 -

I've been approached by a number of horsemen lately who had questions regarding preference dates. We've covered the qualifying rules for the upcoming meet on numerous occasions, but I feel there is a lack of understanding of the rules regarding preference dates. This subject is covered in Racing and Wagering rules 4111.9 a) and b) which read as follows:

In other words, if you do not have to qualify, your preference date will be the date you first enter in a given year. If your first start of the year is a qualifier, that will be your preference date. Let's look at some examples:

Horse A last raced on October 1 and has not raced since;
Horse B last raced on February 1;
Both horses are entered on February 15. Horse B has preference because his preference date is February 1, his last race date. Horse A's preference date is February 15, his first entry date for the year.

Horse A last raced on October 1 and has not raced since;
Horse B raced on January 5;
Both horses qualify on February 15. Horse B has a preference date of January 5, his last race date this year. Horse A has a preference date of February 15 his first race this year.

These rules have been in effect for many years, but unfortunately there is understandable confusion at the beginning of every year. If a further explanation is needed, please contact the horsemen's office or the race office.

Bruce

Vernon, NY, February 3, 2005 -

Mid-State board didn't trust Scott, chairman says

Thursday, February 03, 2005
By Glenn Coin
Staff writer

The board of Vernon Downs' parent company rejected a financing offer from the company's majority shareholder because the board didn't trust him, the board chairman said Wednesday.

The board of bankrupt Mid-State Raceway on Jan. 19 rejected the $9 million investment package proposed by Shawn Scott, who owns 52 percent of Mid-State stock.

"We don't trust Shawn Scott. It's as simple as that," Mid-State board Chairman Paul Noyes said in U.S. Bankruptcy Court in Utica. "We don't trust the promises he makes."

Noyes said the Mid-State board decided to stick with an offer it had accepted Jan. 14 from New York City businessman Jeff Gural. Scott has been denied a license by state regulators, and Mid-State board members felt Gural would have a better shot at getting a license and resuming racing this spring.

Noyes testified Wednesday at a hearing before bankruptcy court Judge Stephen Gerling.

Mid-State has asked Gerling to approve the $8.5 million deal with Gural. Scott and Vestin Mortgage of Las Vegas, which holds Mid-State's $26 million mortgage, want the judge to reject Gural's offer.

Scott said Gural's offer has too many contingencies. The biggest one, Scott said, is that Gural can pull out of the deal unless the state Legislature gives racetracks a bigger cut of potential casino revenues.

© 2005 The Post-Standard. Used with permission

Nichols, NY, February 1, 2005 -

Tioga Park opening pushed back again By L.D. GLOVER--Tioga County Editor NICHOLS -- A predicted reopening of the Tioga Park Racetrack off the Route 17 Expressway under its new name, Tioga Downs LLC, for harness racing by Memorial Day (May 30), may have been premature. Mark Phifer of Athens, project manager, pointed out that the immediate work began at the facility in June, and included resurfacing the track, as well as reroofing numerous horsebarns. The 3,100-seat-capacity spectator grandstand has been completely gutted inside, but its demolition, slated for last week, has been delayed. "We expected the cold and snow and we got our local demolition permits, but one thing we didn't take into consideration was whether or not the existing soil composition would support an enlargement of the grandstand and installation of a restaurant and other interior facilities," Phifer said Friday. For that reason, workmen from the Acres International Corp. of Amherst, N.Y., a structural engineering firm near Buffalo, were at the Nichols site, taking deep-core samples for analysis. "Before the grandstand can be demolished and a new one can be built, we first have to determine if there is sufficient subsurface material (such as gravel) to support the weight of the new structure, which will be about double its present size, or if we will have to bring in own material," Lawrence D. Zampojski, senior geotechnical engineer for Acres, explained. Phifer said plans also include the installation of video lottery terminals (VLTs) in a casino-type environment and a possible onsite hotel. "This all takes time, and I wouldn't hold my breath waiting for the Memorial Day weekend opening," he added. Originally owned by the Nuckel family of Little Ferry, N.J., Tioga Park opened as a quarterhorse racing facility in 1976, but closed two years later due to what they said was quarterhorse racing's lack of popularity in this area. It was purchased by James Hawkins, president of the Hawkins Development Corp., of Harpursville, N.Y., for $1 million in 1996, and was purchased from Hawkins for about $3 million last June by Jeffrey Gural, chairman of Newmark and Co. Real State of Manhattan, N.Y., and TrackPower Inc. of Kingston, Ontario, Canada, for licensing as a harness racing track. The harness racing license application and an application for a simulcasting license are pending before the New York State Racing and Wagering Board. "The track had to be resurfaced because harness racing requires a harder track surface, and it had to be banked on the turns and straight-aways according to regulations," Phifer noted. He added that he used mostly local firms and personnel, with the exception of "a couple of experts" on such items as the track surface. Although neither Gural nor TrackPower CEO John Simmonds could be contacted, they announced last week that, in a joint venture, they are attempting to purchase the Vernon Downs Raceway of Vernon, N.Y. According to the announcement, the Mid-State Development Corp. and Mid-sate Raceway Inc.-- owners of Vernon Downs -- filed petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. Both Gural and Simmonds have expressed enthusiasm for operating two tracks in the Central New York area. They noted that the tracks are located 140 miles apart and serve different markets, yet are close enough to share management resources, horses and horsemen, which are anticipated to result in significant savings.

Copyright © 2005 Sayre Evening Times

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