In the latest issue of Popular Science there is an article that describes how Vegas is going \"high tech\" and how they have invested millions in a nationwide network of slot machines. The security of the network is constantly monitored and each \"mega jackpot\" is instantly identified. Before the payout the system goes through an extensive set of audits to ensure that there was no tampering and that includes dispatching a security expert to the premises of the winning machine, which gets a final electronic edit to ensure there was no tampering before any payouts are made.
Sounds like the tote companies and the racing industry might want to talk to these folks.
Maybe David Patent can give us some insight.
Chris
Chris: Vegas(which btw uses Autotoe), the banks, any number of govt agencies,etc,etc,could be a role model for an industry which is using Pascal, a programming language which came on the scene when I was in college. The question, as I see it, is not identifying security steps, which are well known in many industries, but why the tote cos did not invest or implement any of the systems which were available.
In that regard, the reporting has been very disappointing. Autotoe has hired a PR firm & part of the spin is that the lack of security was because the tracks, i.e. the customers, used competitive bidding in awarding contracts. Huh? In addition to reporting this nonsense w/o indicating that it originated at Autotote\'s PR firm, it seems to me to that some reporters do not understand how the free enterprise system works, not to mention the history of Autotote. If anything, the tracks should make the bids even more competitve by opening up the competition to those outside the US.
Autotote was an Australian co. which Weil gained control of in a leveraged buyout engineered by Drexel, before that firm was convicted of numerous felonies, in 1979. Junk bonds have to be serviced, and that\'s where a large portion of the money Autotote received from the racing industry went. No surprise, then, that spending on security issues took a back seat. But the $19 million leveraged buyout of Autotote was nothing compared to Autotote\'s $300 million cash acquisition of Scientific Games, a lottery supplier, in 2000. Guess where a large portion of the cash came from, and what revenue \"backed\" the new junk bonds? If you guessed racing, give yoursel a pat on the back, and consider the answer to this bonus question: Why does it make sense to blame the tracks because they didn\'t pay Weil & Autotote enough to service his junk debt & meet his contractual obligations to provide a secure system, given that it was income from racing & technology developed with racing dollars which allowed Weil to acquire the the lottery co in the 1st place?
It doesn\'t, and as Exhibit A consider betinternet.com plc group, which is in the business of processing bets in many different languages & currencies through a \"super hub\" in the Isle of Man. The super hub is said to be able to process 28 million transactions per hr. The fact that this co. invested equity to purchase state of the art equipment so that it could expand its betting transactions processing business makes the spin that the racing industry wasn\'t paying enough ring hollow, in my opinion.
Ironically, the super hub equip was designed by & purchased from the other tote co, Amtote, so what we have is the not-unusual-anymore situation where a US co. designs & sells a system which is more advanced than anything we have in the US. Ken Ramsey, and John Pricci & many others want Autotote replaced, & so do I. Racing ought to figure out a way to cancel the Autotote contracts & open the business up to competitive bidding which includes all suppliers, for a business which Weil himself said, when talking to financial analysts, produces an \"unheard of\" profit margin.
Hi Guys:
Good to see this great discussion. What is basically comes down to is money and if you get away with it without spending a dime the better it is. Autotote does not care about quality or security but just the bottom line, note the spin doctor as a CEO. The question becomes what can we do to significantly impact the discussion?
The $64k question, OPM, the one I\'ve been wondering if anyone was ever going to ask. Anyone who is able to put together a coherent & well informed letter/email will have more of an impact than he or she might imagine for 2 reasons. One reason is that most people don\'t take the time or make the effort. The second is that a fairly high percentage of those that do make the effort are either nutcases or those who have some agenda other than what is best for the game.
The easiest & best way to keep informed so that what you write is credible is through 2 sites I\'d never heard of prior to this, to wit: equidaily.com & geocities.com/nywagering/, which provide links to all of the media covering the story & have archives of past coverage. The news today is that the 3 will be charged with wire fraud & are going to turn themselves in tomorrow.
For those that have information or an opinion & want it to be considered, these are the groups you might want to contact: (1) The NTRA, which is spearheading the effort & which on its site has Tim Smith specifically asking fans to \"Let me know.\" The email address is ntra@ntra.com Things that you might want to let Mr Smith know are whether you think the changes which have already been made are enough, whether you think Jim Quinn\'s inclusion in the Wagering & Technology Group will restore serious fans\' confidence, whether you agree that there should be no backward investigation into past incidents, etc, etc. I am certain that comments directed to the Tech Group or the task forces which have been formed will reach the intended reciient. (2) Barry Schwartz & the NYRA, which on its sites indicates that they appreciate your comments & suggestions, which can be sent to nyra@nyrainc.com My suggestions are that the bettors which were swindled on 10/5 be paid by Autotote asap, & that Autotote & Lorne Weil be held accountable. In that regard, I have seen a post by an investor, which I have not been able to verify, that Weil has received $30 million in compensation over the last 10 yrs. I wonder how that compares with the amount which Autotote spent on security during the same time frame. (3) The reporters who have taken the lead on this story, particularly if you have information or an angle which you think needs to be covered. For the most part, the email addresses are not difficult to locate & you might be surprised at how receptive they are to legitimate info & leads. (4) Ken Ramsey, to let him know that you support the positions set forth in his full page letter on the back page of the 11/7 drf. It didn\'t include an email address, but rather the farm address, which is: Ramsey Farm,Inc., 6915 Harrodsburg Road, Nicholasville, KY 40356-8722. Assuming you agree with what he has to say, & was willing to go to a lot of trouble & expense to express, the letter can serve as a proxy when you contact the other groups, as in something like: \"I\'m writing to express my agreement with Mr. Ramsey\'s Nov 7 letter, and to let you know that the only way confidence will be restored is if each of the important items in his letter are addressed.\"
The game is at an important crossroads, & each of you has the opportunity to make your voice heard if you\'re willing to put forth what to me seems minimall effort. Do it today, the sooner the better.