Gov's 'bettor' way
Plan to kill NYRA and privatize horse racing
By FREDRIC U. DICKER
Last Updated: 12:33 AM, September 24, 2012
Posted: 12:31 AM, September 24, 2012
Fredric U. Dicker
Gov. Cuomo, in a startling move, has decided to "privatize'' the running of the famed Aqueduct, Belmont and Saratoga thoroughbred tracks with a new management company that will replace the scandal-scarred New York Racing Association, The Post has learned.
Cuomo, who will sign legislation within days giving the state control of NYRA's board of directors, plans to seek public bids for a new operator to replace NYRA, a not-for-profit corporation, from for-profit companies with deep experience in the racing and/or entertainment industries, sources said.
G.N.Miller/New York Post
Andrew M. Cuomo
State officials believe operators of such prestigious tracks as Churchill Downs, site of the Kentucky Derby, and Santa Anita Park, in Arcadia, Calif., as well as the managers of major entertainment destinations, will pay huge fees to run the three New York tracks.
A source with firsthand knowledge said it will take several months to draw up the specifics, and bids will likely be solicited by the middle of next year.
"Why not let Churchill Downs compete with Santa Anita, with Formula One, with Madison Square Garden for the best operation of the tracks?'' asked the source.
Aides to Cuomo including Howard Glaser, the director of state operations, had worked for months on a sweeping NYRA reorganization plan in preparation of the governor's signing of new legislation giving the state direct control of the 55-year-old racing association's operations.
But in mid-summer, as the Saratoga meet got under way, the Cuomo aides decided that NYRA's organizational structure and management team, which has had a series of scandals in recent years, wasn't up to the job and that a new approach — proven outside management — was needed.
"The NYRA model won't work. It's flawed, and it's unable to do the job. Privatizing makes the most sense,'' said the source.
The Post reported in July that current NYRA President/CEO Ellen McClain would be fired after the governor signed the legislation taking control of the racing association. A source said McClain's dismissal would likely occur early next month.
The legislation to be signed by Cuomo creates a new 17-member board of directors for NYRA, eight to be picked by Cuomo and four by the leaders of the Legislature. The current NYRA board will have only five appointees.
Meanwhile, as part of a build-up to the coming changes at NYRA, Cuomo will announce on Friday a new oversight and regulatory process for ensuring the health and safety of horses at the three tracks, it was learned.
The changes will include the creation of an oversight body, separate from the moneymaking side of the racing business, to address a growing number of horse deaths and injuries at the three tracks.
Experts link the problem to increasingly lucrative racing purses generated by the huge profits coming to NYRA from the year-old racino at Aqueduct.
"Nobody really had the best interests of the horses in mind,'' said the source.
The Post has also learned that the state Inspector General has concluded that "negligent oversight'' by NYRA's top management and its board of directors was responsible for the massive "takeout" scandal that cost bettors nearly $8.5 million over a 15-month period ending late last year.
Acting Inspector General Catherine Leahy Scott, nearing the end of a five month investigation, concluded that former NYRA CEO Charles Hayward and General Counsel Patrick Kehoe, along with "virtually everyone else in a position of responsibility,'' knew of a legal requirement to lower the amount the association took from bets being placed at the three tracks but failed to act, said a source with knowledge of the report.
Hayward and Kehoe were fired by NYRA in May after the state Racing and Wagering Board disclosed the takeout scandal. However, the Inspector General's report will say the state board didn't act quickly enough.
Cuomo followed up the report by ordering an investigation by the Inspector General, partly to determine if NYRA officials had engaged in criminal conduct or might be liable in a civil court action.
The IG report concluded that no criminal conduct occurred and that a successful Civil Court action was unlikely, the source said.
Any opinions on what would be the BEST and WORST case scenarios re the new guys on the block? Reasons?
The plan to spin NY racing to the private sector was on the calender for 2015 as was the development of the area near Belmont Park.After Pisano Cuomo\'s convention speech, he\'s def running in 2016. His disdain for NY racing far exceeds what was thought and there must some perception of a gain in political capital by accelerating the process.The revenge of the Cuomo\'s against the racing blue bloods an added bonus. Concern for the thousands that may be financially hurt in the process and the loyal players/supporters of NY racing, not even considered.
A referendum,fully supported by Cuomo/Silver, to allow full blown casinos in NY State almost sure to pass in 2013.Further competition for NY racings handle.
Every business model shows NY racing a bad investment as a stand alone business.Only slot/casino subsidies make it attractive as a profitable ongoing enterprise with possible modest revenue growth expectations from racing.
Aside from Frank Stronach and CDI where there may be synergies/redundancies/ consolidations,who would dare want to invest in NY racing. Guess what, there are already groups lined up and ready to take a shot at owning/running NY racing if they can get a \"sweetheart\" deal.Obviously, most are heavily politically connected.The privatization of NY racing should make the failed attempt to sell NYC OTB look like small beer with every political leach looking for a piece of a monster pie.
A mature and ever shrinking customer base, gambling competition from impending NY casinos,racinos,on line poker,new legal sports betting along with a negative perception of racing.Sounds like a great buy!
With great popularity and massive political clout don\'t sell pisano Cuomo short in throwing NY racing under the bus. This is a very uncertain time for all who invest in NY racing or who make a living at it.Guessing there will be a massive outcry from the racing community unless certain guarantees are assured by the State,going forward.Would not trust a politician if he swore on a stack of bibles.
Hoping all with a platform/pulpit will at least speak out on this hijacking of NY racing by pisano Cuomo.
Can\'t argue with any of that, Mike.
Looking back, I think NYRA was screwed the instant they traded the open question of who owned the three tracks for another 25-years of management. Once they answered that question, whatever leverage they had went out the window.
Sad.
Magic,
NYRA was duped. The NYRA Board had their lawyers looking into suing the State for breach of the agreement when Cuomos hijacking became apparent.The NYRA Board was ready for a fight.After an Albany meeting with Cuomo\'s top honchos,the NYRA Board capitulated.Hear NYRA was kinda told that taking legal action against the State would lead the State to possibly look into breach of law/criminal charges against present and former NYRA Officers/Directors.
Govs team treacherous and powerful,a lethal combination.
Mike
Report: State to Seek Bids to Operate NYRA
By Tom Precious Bloodhorse
Updated: Monday, September 24, 2012 11:32 AM
Just days before the state is to take over control of the New York Racing Association, New York Gov. Andrew Cuomo is sending signals he wants to put the operation of the racing entity out to bid to for-profit companies.
The move, if true, would amount to a direct attempt to end the role of NYRA, which has held exclusive operation of three Thoroughbred tracks since 1955, in any form of racing and scuttle the franchise extension agreement signed several years ago between a previous administration and NYRA. The administration\'s idea was floated Sept. 24 in the New York Post, which reported the state envisions making a large amount of money from for-profit corporations that will want to run Aqueduct Racetrack, Belmont Park, and Saratoga Race Course.
A bill approved in late spring is, sources have been saying, expected to be signed by Cuomo the week of Sept. 23. It gives Cuomo the authority to name eight new board members, including its chair, to a newly constituted NYRA board that, with four members selected by legislative leaders, puts NYRA under the control of the state for the next three years.
Cuomo has not wanted to sign the bill until he could find his eight choices for board seats; only a board chairperson had yet to be finalized as of the week of Sept. 16.
The Cuomo administration has been eyeing various land deals for NYRA property, including a full-blown casino next to Aqueduct and its video lottery terminal facility. Two weeks ago, the state put out to bid two separate parcels of land at Belmont, either for sale or lease; the proposal asks for a variety of possible uses for the more than 100 acres of land surrounding the track.
What Cuomo\'s long-term intentions are for the racing industry remain uncertain. He has said NYRA, based on various scandals over the years, including the recent one surrounding higher-than-permitted pari-mutuel takeout levels on exotic bets, is unfit to run racing.
Sources said the Cuomo administration has also taken over the rollout of a report by several industry representatives, including Hall of Fame jockey Jerry Bailey, looking into a high number of equine deaths last winter at Aqueduct. The report, finished for weeks, was set to be released the week of Sept. 16, but sources said it is now scheduled to be unveiled Sept. 28.
The report will be stinging, sources have said for weeks.
Recommendations will include proposed regulatory changes to the system of how the track-based veterinarians conduct their business to end what some industry insiders have said is a too cozy relationship between trainers and vets. The New York Times Sept. 22 published a lengthy article investigating what it characterized as a troubled system whereby trainers often tell vets what kinds of drugs a horse needs. The Post said a new oversight panel will be created to track equine health issues.
It is uncertain what legal avenue the administration will seek to end the agreement made in 2007 by former Gov. Eliot Spitzer to extend NYRA\'s franchise for 25 years. That deal, which included another round of state bailout money, also featured NYRA relinquishing its longstanding ownership claims to the land at the three racetracks in return for the exclusive extension to run racing.
The administration, the Post said, floated entities such as Churchill Downs Inc. and Madison Square Garden as potential bidders that might be interested in running NYRA. While the report said the administration was seeking to \"privatize\'\' the tracks, it did not suggest the state would be seeking to sell the three facilities, which would be a true privatization effort
Watch Betfair.
The guys I was dealing with are no longer there, but years ago I put them together with Spitzer\'s people (not that I had a big in, but one of his guys was close with a friend of mine and used to read this board). If the plan here is to license someone to operate the franchise, they will be trying to get in, and they are one of the few players with a ton of cash.
Dolan has tons of cash, but if he (MSG) gets it I swear I\'ll take up butterfly collecting.
JB,
Betfair big time Euro/Australia/New Zealand bet taker, partners with foreign investment bank from memory,deep pockets.Banging heads with other US ADW outfits for Internet/phone wagering supremacy via TVG.
Re NYRA,reports are conflicting but it seems like the State may want to lease the NYRA franchise with an option to buy or something like that.New twists/rumors every day on this, many probably not accurate.
A group wishing to manage NY racing gonna talk to Sheik Mo, Betfair and many other deep pocketed racing/sports oriented organizations.Like the situation in New Jersey, a group consisting of very wealthy owners/trainers exploring the viability of coming up with a plan to present to Don Cuomo for control of NY racing. An investment bank looking at this right now.Ton on money/fees up for grabs here also, so one can imagine.
Would hope it gets better no matter who gets to run it, however if Albany pulls the plug on slot/casino racing subsidies,it\'s a goner over time.
Mike
Other than the bigotry and cynicism, a well worded response.
NYRA screwed itself. If they were a well managed organization they\'d still be in business.
Me, too...Dolan would probably make Isaiah Thomas Director of Racing...
DRF:
New York may solicit private company to replace NYRA as operator of state racetracks
By Matt Hegarty
A top aide to New York Gov. Andrew Cuomo said on Monday that the state is considering a plan to seek a private, for-profit company to replace the New York Racing Association as the operator of the state's three most high-profile racetracks.
Howard Glaser, Cuomo's director of state operations, said on a radio show Monday morning that the state is considering issuing a request for proposals to replace NYRA, the not-for-profit company that by law holds the franchise to operate Aqueduct, Belmont, and Saratoga until 2033. The option will be considered once NYRA's board is reconstituted with a majority of state appointees and the new board has time to assess the association's operations, Glaser said.
"We'll see when the new board is in place what the ultimate review will entail," Glaser said.
Glaser was interviewed on the radio show by Frederic Dicker, a radio host who also writes a column for the New York Post. On Monday morning, Dicker, who is writing an authorized biography of Cuomo, quoted unidentified sources as saying that the new board would seek private companies such as Churchill Downs Inc., the Stronach Group, or "the manager of major entertainment destinations" to replace NYRA.
Earlier this year, the state legislature, acting at Cuomo's behest, passed legislation requiring the dismantling of NYRA's 25-member board, which currently has 11 state appointees. The new board, to be in place for three years, will have 17 members, of which 12 will be controlled by the state, including eight controlled by Cuomo.
Glaser said Cuomo is expected to sign the legislation "soon," at which point he will make his eight appointments. Cuomo will also have the power to appoint the chairman. Currently, the NYRA board does not have a chairman. The term of the former chairman, Steven Duncker, expired at the beginning of September.
Rich Azzopardi, a spokesman for Cuomo, said on Monday morning that the governor would have no comment on his plans for NYRA's board or the information in Dicker's column.
Under an agreement reached in 2008 that allowed NYRA to emerge from bankruptcy, the state took the deeds to NYRA's three tracks and gave the franchise to operate the tracks to NYRA for 25 years. That agreement was approved by the legislature.
It is unclear if the state would need new legislation in order to nullify the existing agreement. Chris Wittstruck, a lawyer who is an authority on New York racing law, said that it is possible the new board could approve a plan to dissolve NYRA at the end of its three-year tenure, freeing the state to select a new operator.
"It's the simplest thing in the world for them to do that," Wittstruck said.
NYRA has not been cash-flow positive for more than a decade. However, that is likely to change for the 2012 fiscal year due to payments that NYRA has begun to receive from a massive casino that opened at Aqueduct late in 2011, 10 years after it was first authorized by law.
On the radio interview, Glaser said that the "legal franchise" continues to reside with NYRA.
"That doesn't change," Glaser said. "That was part of a legal agreement. But that's a different question as to who the operator is."
J. Gary Pretlow, the New York representative who is the chairman of the New York Assembly's Racing and Wagering Committee, said on Monday that he would be "opposed to any effort to privatize" the operation of the tracks.
"NYRA could work very well under the scenario we'd already put forward," Pretlow said. "That is, they would operate under the new board and very strict oversight from the state for three years, and then we'd let them try to work it out."
Cuomo and casino companies lobbied aggressively over the past year for gambling legislation in New York that would allow up to seven new casinos in the state. The state's existing eight casinos are tied to racetracks and are restricted to operating devices called video lottery terminals, which are essentially slot machines that are tied into the state's lottery system to get around the state's constitutional ban on slot machines.
The legislation allowing for up to seven new casinos was passed earlier this year, but that legislation, which would put a constitutional amendment on the ballot, would have to be approved again by the legislature next year. The constitutional amendment would then have to be approved by a statewide referendum before the state could begin awarding casino licenses.
If the effort is ultimately successful, the existing legislation providing subsidies for tracks and horsemen from the operation of the video lottery terminals would not apply to the new casinos. The existing operators of casinos, including Genting New York, which operates the Aqueduct casino, are expected to be first in line when applying for the new licenses, which would also allow them to operate table games in addition to any type of slot-machine-like device.
Casino companies have been eyeing the sprawling property at Belmont Park in Elmont, Long Island, as a possible casino location for a decade. Several months ago, the state's New York Racing Franchise Oversight Board approved a plan to solicit bids for two parcels of land on the property for redevelopment. The RFP for the parcels said that the property could not be used for video lottery terminals, though the RFP did not place any specific prohibition on other gambling activities.
Cuomo sought the dissolution of NYRA's board after the association came under intense scrutiny last winter because of a takeout scandal and a rash of catastrophic breakdowns at Aqueduct. Cuomo and his aides have said that the two problems indicate that NYRA's management is failing to operate the tracks successfully.
"The functioning of NYRA is substandard," said Glaser on the radio program.
An investigation by the Inspector General into the takeout scandal has been conducted but has not been released. In addition, a report examining the rash of Aqueduct breakdowns was completed more than a month ago and distributed to Cuomo's office, but the office has declined to comment on the report.
Is anyone making money running racing without slots? Do we think the new operator would still get a chunk of the slots revenue? I suppose I can see where the horsemen might want the business just to preserve their livelihoods, and the ADW business might have some value standing alone.
Its only a good idea if Stronach or Churchill doesnt get a hold of these tracks. That would create a mini-monopoly which is not good for anyone. We need some new and fresh owners to create more competition.
Steve Wynn
What\'s the condition of the sport in GB and France? They have competitive forms of gambling. Do they rely on subsidies? What are they doing right?
Do racetracks in Europe have to house horses and stable staff year round as do
the NYRA tracks?
I don\'t know. But if they have a model for a horse racing industry that can successfully operate in an environment with other forms of competitive gambling maybe we could learn something from them.
miff Wrote:
-------------------------------------------------------
> The plan to spin NY racing to the private sector
> was on the calender for 2015 as was the
> development of the area near Belmont Park.After
> Pisano Cuomo\'s convention speech, he\'s def running
> in 2016. His disdain for NY racing far exceeds
> what was thought and there must some perception of
> a gain in political capital by accelerating the
> process.The revenge of the Cuomo\'s against the
> racing blue bloods an added bonus. Concern for the
> thousands that may be financially hurt in the
> process and the loyal players/supporters of NY
> racing, not even considered.
>
> A referendum,fully supported by Cuomo/Silver, to
> allow full blown casinos in NY State almost sure
> to pass in 2013.Further competition for NY racings
> handle.
> Every business model shows NY racing a bad
> investment as a stand alone business.Only
> slot/casino subsidies make it attractive as a
> profitable ongoing enterprise with possible modest
> revenue growth expectations from racing.
>
> Aside from Frank Stronach and CDI where there may
> be synergies/redundancies/ consolidations,who
> would dare want to invest in NY racing. Guess
> what, there are already groups lined up and ready
> to take a shot at owning/running NY racing if they
> can get a \"sweetheart\" deal.Obviously, most are
> heavily politically connected.The privatization of
> NY racing should make the failed attempt to sell
> NYC OTB look like small beer with every political
> leach looking for a piece of a monster pie.
>
> A mature and ever shrinking customer base,
> gambling competition from impending NY
> casinos,racinos,on line poker,new legal sports
> betting along with a negative perception of
> racing.Sounds like a great buy!
>
> With great popularity and massive political clout
> don\'t sell pisano Cuomo short in throwing NY
> racing under the bus. This is a very uncertain
> time for all who invest in NY racing or who make a
> living at it.Guessing there will be a massive
> outcry from the racing community unless certain
> guarantees are assured by the State,going
> forward.Would not trust a politician if he swore
> on a stack of bibles.
>
> Hoping all with a platform/pulpit will at least
> speak out on this hijacking of NY racing by pisano
> Cuomo.
Clearly, Cuomo\'s gunning for POTUS . . . but re 2016, he doesn\'t have right of first refusal to the Dem nom -- and he knows it.
Cuomo Signs NYRA Reorganization Bill
By Tom Precious
New York Gov. Andrew Cuomo, as expected, today signed a new law creating a three-year takeover by the state of the embattled New York Racing Association.
When, precisely, the new state-dominated board will begin running NYRA is not entirely certain, and the governor did not announce his choices for the panel in signing the bill. The Legislature passed the bill nearly four months ago.
The only certain thing that is certain: no one has a clue what NYRA will resemble in three years when, according to the new law, the state-controlled board is supposed to sunset. Nothing would prevent the state, however, from extending that control period beyond three years.
The questions are many. Will the state move to shut down any of NYRA\'s three tracks? Will the state now try to devise an entirely new business model for NYRA and the state\'s off-track betting corporations? Will Cuomo seek to break NYRA\'s exclusive racetrack franchise agreement signed four years ago? And how might NYRA be affected by Cuomo\'s plans for a sharp expansion of casinos?
Cuomo has already sent signals, sometimes via media leaks, of his desire for vast management and operational changes at the not-for-profit racing group, which was founded in 1955 and has endured a series of controversies – bankruptcy, federal indictments and, most recently, the jacked-up takeout on exotic bets affair that cost bettors $8.5 million in overcharges.
Cuomo is finishing a fight his father, Gov. Mario Cuomo, had with NYRA a generation ago. In recent weeks, the administration has proposed a plan to sell or lease more than 100 acres of land at Belmont Park and Cuomo still hopes to get a full-scale, Las Vegas-style casino approved at Aqueduct.
\"New York taxpayers and the betting public deserve a racing industry that is managed competently and does not neglect the health and safety of the horses. The NYRA Reorganization Board will restore public trust, accountability, and transparency to the racing industry in our state, so New York can continue to offer one of the most exciting, enjoyable, safe horse racing experiences in the nation,\" Cuomo said in signing the legislation today.
Industry sources say Cuomo has had some difficulties in picking a chairman to run the new NYRA board. And it is uncertain who, or if any, of the current NYRA board, such as longtime Cuomo family friend and advisor, Michael Del Giudice, will remain on the new panel. The current NYRA board, which is expected to meet this week, gets to name five people to the new, 17-member panel. Cuomo gets to pick seven of the board members, and also has the authority to recommend a chairperson. The two legislative leaders of the Senate and Assembly each have two selections to the new panel.
\"I\'m hearing no names,\" said Assembly Racing and Wagering Committee Chairman Gary Pretlow.
Now that the state will be in charge--and faces its own set of criticisms for potential problems--insiders say officials have been vetting potential NYRA board members like never before.
\"It\'s going to be hard to get people they want for a non-paying job with all the scrutiny they\'re going to have to undergo. Under normal circumstances, nobody knew who was on the NYRA board. Now, they\'ll be in the spotlight,\" Pretlow said.
The new board does not take over until a majority of the publicly appointed members are selected. Sources have suggested names were being readied the past several weeks; the governor\'s office today said the names will come out in the \"near future.\"
Once the board takes over, it is clear the new NYRA will answer very much to the Cuomo administration. For the governor, it means getting political points for reforms the new NYRA board might make. But it also means Cuomo--as the chief promoter of the state taking over a mega gambling enterprise--could face residual political effects for whatever problems might arise at NYRA in the next three years.
The takeover by the state also comes as the governor and many legislators want to dramatically expand gambling in New York. A constitutional amendment could go to voters as early as next fall permitting seven new casinos – full-blown facilities with gambling, such as table games, now only on Indian lands in New York – throughout the state.
The Cuomo administration also made clear that top NYRA managers should start cleaning out their desks. The governor, in announcing he signed the NYRA board restructuring bill, said when the new board takes over a national search will commence for a new chief executive officer and general counsel.
The current NYRA board has 25 directors; 11 of the slots were appointed by state officials.
Interestingly, the NYRA takeover by the state will also essentially leave the state monitoring itself when it comes to the operations of the three biggest Thoroughbred tracks in New York. A financial oversight board – chaired by Cuomo\'s chief budget advisor – that has been critical of NYRA operations in recent years remains legally in place. And NYRA will still be heavily regulated by the state Racing and Wagering Board, which next year gets rolled into a larger agency that will oversee all gambling-related activities in New York. And the Legislature has not only oversight responsibilities involving NYRA, but will likely have to deal with financial matters of what now becomes a government-run gambling venture.
\"I\'m hoping we get a board together so things will get back on a normal path,\" Pretlow said in an interview
Perception, Not Integrity, Called Major Issue
By Tom LaMarra,
Updated: Tuesday, October 13, 2009 11:16 AM
Officials assembled for the International Simulcast Conference said public perception, not integrity, is the primary problem for the industry's wagering systems.
"We don't have an integrity issue," Thoroughbred Racing Associations executive vice president Chris Scherf said. "We have some operational issues to work out."
The conference, held in Saratoga Springs, N.Y., opened with an overview of the status of the wagering system, ongoing upgrades, and future plans. Scherf and others said there are "little things" that can be done, not the least of which is communicating with the public.
For instance, Scherf said the perception of past-posting—making wagers after "off" time of races—is overblown. He said there have been eight confirmed cases of past-posting out of 60,000 races, which means past-posting isn't the cause of everyday late changes in odds.
"There are a lot of misconceptions out there," Scherf said. "The two aren't related."
J. Curtis Linnell, director of wagering analysis for the Thoroughbred Racing Protective Bureau, offered results of studies on late odds shifts at 18 racetracks. Overall, the average change in odds per runner was 0.69%. In the final odds cycle, he said, the average change in odds was 0.96%.
The smallest changes in odds cycle to cycle occurred at Saratoga, which has some of the largest pools in the United States.
"The cycle time (for displaying odds) is critical to odds changes," Linnell said. "The larger the pool is, the more stable the odds. Some of our problems are of our own making in how we display the odds."
There is growing sentiment in the industry to stop displaying "fractional" odds, such as 5-2 and 9-2, and show decimal odds. That way, changes in odds would be more transparent and at times not as large as those indicated by changes in fractional odds.
"This has got to stop," Linnell said. "Going to decimal odds will eliminate approximate odds."
The TRPB Betting Analysis Platform launched in 2006 with a push toward real-time monitoring, which Linnell said is "almost all the way there." Since 2007, wagering on every race at TRA-member tracks has been databased and run through an autonomous process; since 2008, all pari-mutuel prices at the same tracks have been databased.
Scherf said all stakeholders need to adopt basic protocol that ultimately will become part of the code of standards for the National Thoroughbred Racing Association Safety and Integrity Alliance. The issues are having protocol for stop-betting commands; synchronizing of video and tote systems; reduction in the cycle and reporting time for odds; and elimination of cancel delays and "double hops."
Scherf said there are two "non-solutions"—stopping wagering at zero minutes to post, and a process called transactional monitoring. The latter has been regularly discussed by regulators; Indiana racetracks adopted the program voluntarily, while New York passed a law mandating it.
In New York, all three tote companies—AmTote, Scientific Games, and United Tote—must have contracts in place with the state by Oct. 15, said Lonny Powell, a senior adviser for Advanced Monitoring Systems and owner of L. Powell Strategy and Solutions. Powell said independent monitoring systems such as those run by AMS may be misunderstood.
"From an industry perception perspective, (Chris Scherf's comments) were right on," said Powell, who is attending the simulcast conference. "The industry doesn't have an integrity problem as much as it has a perception problem. We as an industry have done a terrible job (explaining that), and monitoring systems are a tool that can help.
"Our system is not the cops. It's a tool for regulators, racetracks, and the TRPB. There is a place in this world for all of us."
As for the close of wagering at zero minutes to post, Scherf said it doesn't work. He said regular incidents at the starting gate that hold up the start of races would create even more outcry from players as they lost wagering opportunities because pools were closed.
"The lost wagering dollars (are a problem)," Scherf said. "There aren't a whole lot of wagering dollars floating around this industry right now."
The simulcast conference continues Oct. 13-14. The conference began with a moment of silence for Brody Johnson, the Harness Tracks of America executive assistant who died Oct. 7 at the age of 26. The HTA co-hosts the simulcast conference with the TRA in association with the American Greyhound Track Operators Association
Great,will be requesting that Chairman Sabini post the info about pre race injections so that the players can take this important variable into account.
Bloodhorses:
NY Set to Act on Task Force Findings
By Tom Precious
New York racing officials are set to begin implementing new rules based on recommendations by a recent industry task force report to increase safety conditions for horses and jockeys.
The expected action Oct. 11 by the state New York State Racing and Wagering Board comes a couple weeks after the Task Force on Racehorse Health and Safety issued a 100-page report outlining deficiencies in state rules and practices at the New York Racing Association that helped contribute to last winter\'s high number of equine deaths at Aqueduct Racetrack.
The first round of regulations set to be adopted by the NYSRWB pertain to emergency-type rule-making procedures, mostly involving equine medication restrictions. Some broader recommendations by the task force, including creating the position of equine medical director and overhauling veterinarians practice at the racetracks, are still being reviewed by state officials.
One of the expected new rules amends a regulation adopted earlier this year by the NYSRWB that voids a claim if a horse dies on the track. The additional restriction calls for a new owner to void a claim within one hour of a claiming race if a horse has to be vanned off the track.
Another new regulation requires that a claimant be notified, within 48 hours after a claim is finalized, of any intra-articular corticosteroid administrations to the horse within 30 days of the race.
Improved recordkeeping requirements are also on tap, including adoption of a rule requiring trainers to maintain accurate records of all corticosteroid joint injections to horses and a further requirement that records of any such injection be turned over to the NYSRWB within 48 hours of a treatment. The records must be accessible to veterinarians to help with pre-race screenings, the rule states.
Other rules set to be adopted on an emergency basis that were proposed by the equine task force include banning the intra-articular administration of methylprednisolone within 15 days of the date of a race as well as the administration of all other intra-articular corticosteroids within seven days of the date of a race.
Also, systemic corticosteroids will be banned within five days of a race date and clenbuterol, a bronchodilator, will be prohibited within 21 days of a race. One emergency rule originally proposed by the task force pertaining to changing the purse-to-claim ratio is still being studied by the state and will not be part of the Oct. 11 agenda.
\"These amendments will implement these important and significant regulatory measures to protect the safety and health of Thoroughbred race horses and jockeys in New York state,\" said a NYSRWB staff member.
The proposed emergency rules were released the same day The Jockey Club called on New York officials to quickly enact equine safety recommendations recommended by an outside panel of industry experts, saying horse and rider safety issues are at stake. The Jockey Club also recommended many of the ideas proposed by the Task Force on Racehorse Health and Safety be put in place in states across the country.
In a letter to NYSRWB officials, the Jockey Club\'s executive vice president and executive director, Matt Iuliano, said many of the task force\'s recommendations are similar to those already made in the past by The Jockey Club Thoroughbred Safety Committee.
\"In particular, we commend and applaud the task force for the urgency expressed in its recommendation pertaining to the administration of corticosteroids and the 21-day withdrawal time for clenbuterol,\" Iuliano wrote state officials. \"These measures go even further than we have gone in the Reformed Racing Medication Rules, but we plan to incorporate the task force\'s recommendations and will encourage other racing jurisdictions to follow the example set by New York.\"
Apparently the state is going to announce the new board within a few hours.
State Now Controls NYRA; New Board Appointed
By Tom Precious
Bobby Flay is one of the new members of the NYRA Board.
The New York Racing Association is now the nation\'s largest state-controlled racing entity, paving a new and highly uncertain future for the not-for-profit corporation that has seen its highs and lows since being created in 1955.
The state late on Oct. 18 legally activated a new government-run board of directors at NYRA —many light with any racing industry backgrounds —after Gov. Andrew Cuomo named his eight picks and legislative leaders add their four names to operate what is supposed to be a three-year control period of the embattled racing corporation by the state.
Cuomo named David Skorton, president of Cornell University and a cardiologist with no apparent equine industry experience, as his choice to chair the new NYRA board. Skorton has been on an economic advisory panel appointed by the Cuomo administration, and his appointment as chair, given the state-control of the new board, is all but certain.
Other new members named by Cuomo include celebrity chef Bobby Flay, a Thoroughbred owner; film producer Jane Rosenthal, co-founder of the Tribeca Film Festival and chief executive officer of Tribeca Enterprises; Barnes & Noble chairman Leonard Riggio; Anthony Bonomo of the Administrators for the Professions and former medical malpractice lawyer; investment advisor and lawyer Vincent Tese, a former economic development chief in the administration of former Gov. Mario Cuomo, the current governor\'s father; Joseph Spinello, managing director of Navigant who was also the state Inspector General during Mario Cuomo\'s administration; Robert Megna, the governor\'s budget director who, until today, was chairman of the state\'s NYRA franchise fiscal oversight board. John Hendrickson, breeding and racing manager at the Saratoga stables owned by his wife, Mary Lou Whitney, was named by Cuomo as a special advisor to the NYRA board.
Senate Majority Leader Dean Skelos named two people to the new NYRA board: Michael Dubb, founder of Beechwood Organization, a homebuilding company, and a Thoroughbred owner who has been on the NYRA board since 2008; and Earle Mack, a real estate developer in Manhattan and former NYRA board member who was also chairman during the 1980s of the New York State Racing Commission.
Assembly Speaker Sheldon Silver selected Michael Del Giudice, a longtime Cuomo family advisor and friend who has served on the NYRA board since 2003, including most recently as vice chairman; and Rick Cotton, executive vice president at NBC Universal.
The new state-run board became active once a majority of the 12 government-appointed members were named Oct. 18; Cuomo gets eight picks, and the Senate and Assembly majority leaders get two apiece. The previous, and now-defunct NYRA board, was permitted five choices to the new board; it has settled on keeping several members from the NYRA board--whose leadership had been attacked by Cuomo--including retaining former chairman Steve Duncker.
The unusual move by the state to take over control of a not-for-profit corporation comes after Cuomo criticisms of NYRA over everything from an unusual number of equine deaths at Aqueduct racetrack to a failure by NYRA to lower, as required by law, takeout on certain exotic bets, which cost bettors more than $8.5 million on wagers made on races at Aqueduct, Belmont and Saratoga racetracks.
It also comes at a time when Cuomo is pressing for a sharp expansion of Las Vegas-style resort casinos around the state, including on the Aqueduct grounds. The administration is also looking to sell or lease land at Belmont racetrack, and Cuomo has floated the idea of lowering revenue-sharing deals struck over the years that give part of the proceeds from racetrack-based casinos, such as at Aqueduct, to purse and breeding funds.
For Cuomo, taking control of NYRA, a step first considered a generation ago when his father, Mario Cuomo, was governor of New York and had his own battles with the corporation\'s leaders, offers paths to possibly re-organize how the tracks are run and to make possible real estate deals with casino developers or others at one or more of the facilities. It also offers potential pitfalls for the governor: any problems that might arise at the large gambling enterprise will now rest at his doorstep.
Through the selections of his NYRA board members, Cuomo is clearly signaling he wants the panel to be rounded out with activists —from academia to Wall Street —to take NYRA on some new, and as yet unknown, path.
The NYRA takeover bill was approved by lawmakers in June, but Cuomo, sources said, had trouble finding the right people to name to the board, including a new chair. The new members have additional state ethics disclosure requirements, including revealing any financial ties to the racing or breeding industries. Exactly how that information will be made public, or if it will, remains uncertain.
By law, the new control board\'s authority expires in three years. However, there is nothing that could legally stop the state from reauthorizing the board\'s control at the end of that period. The Cuomo administration has publicly insisted it does not want the state to be in the long-term business of running racetracks, and considers the takeover a temporary period in which a whole range of options for New York\'s racing industry can be considered.
How this period will ultimately affect NYRA\'s long-term franchise to run the tracks —which it re-signed in 2008 in return for relinquishing its claims that it owned the tracks —is also uncertain.
\"The structure of gaming and racing is undergoing change in New York, with the establishment of racinos, the creation of the New York State Gaming Commission and first passage of a constitutional amendment on commercial casinos,\'\' the June legislation, authored by Cuomo\'s office, states. It said the NYRA takeover is needed \"in order to ensure the viability and continuity of horse racing, the racing industry and industries that support and are sustained by the racing industry.\'\'
The legislation notes in several passages that the state control is \"temporary,\'\' and that in no fewer than three years NYRA \"shall be returned to private control.\'\'
A memo accompanying the legislation says the state will have no fiscal impact on the New York government, which has provided numerous financial rescues to NYRA over the years.
\"With the new leadership of the NYRA Reorganization Board, we have an enormously accomplished group to assist us in making New York thoroughbred racing the best in the country,\" Cuomo said in a written statement. \"The new Board is charged with reforming NYRA for the benefit of taxpayers, fans, track workers, jockeys, and the horses themselves