Westfair Business Publications Blog : Tumbling Dice by Bryan F. Yurcan

A board appointed by former Gov. George Pataki is preparing to take over New York's thoroughbred racing on Jan. 1 if closed-door negotiations between Gov. Eliot Spitzer and legislative leaders drag on past a Dec. 31 deadline, according to the Associated Press..

The Non-Profit Racing Association Oversight Board authorized its chairwoman Monday to start negotiating to continue racing at Aqueduct in January, followed potentially by the Belmont and Saratoga race tracks. If NYRA can't or won't continue to run racing after its franchise expires at the end of the year, then board Chairwoman Carole Stone is authorized to negotiate with others, including NYRA's competitors. They are Capital Play, Empire Racing, and Excelsior Racing, the AP reports.

The interim agreement would stay in place until Spitzer and the Legislature agree on a new operator of the tracks for as long as the next 30 years. Spitzer and NYRA already have a formal proposal to do that as part of a deal that includes NYRA relinquishing a claim it owns the race tracks.

Casino executives from the across the country are expected to converge on the Statehouse Dec. 18, when a legislative committee will hold the first major hearing on Gov. Deval Patrick's proposal to license three casinos.

The Legislature's Bonding Committee is inviting a number of gambling bigwigs, from Donald Trump to Harrah's CEO Gary Loveman to casino developer Richard Fields, who controls Suffolk Downs, according to the Massachusetts South Coast.

Others on the early invitation list include Gov. Deval Patrick's administration, district attorneys, major state unions who favor casinos, track owners and the Massachusetts Taxpayers Foundation, which has been skeptical of Patrick's casino numbers.

The State Commission of Investigation on Wednesday subpoenaed a consultant hired on a no-bid contract by the New York Racing Association, according to the Times-Union of Albany.

The commission's chief counsel, Anthony Cartusciello, said he could not discuss matters before the panel, a six-person body dominated by appointees of former Gov. George Pataki and Senate Majority Leader Joseph L. Bruno.

The commission received an anonymous letter claiming Getnick conspired with Gov. Eliot Spitzer's office to subvert the process for awarding the racing franchise for operations at Saratoga, Aqueduct and Belmont Park thoroughbred tracks and steer it to NYRA and Excelsior Racing Associates, the paper reported today.

NYRA's contract to Getnick's law firm, Getnick & Getnick, was criticized by Senate Republicans in earlier hearings and by NYRA's competitors for the franchise. Getnick was the court-appointed monitor overseeing NYRA during its deferred criminal prosecution in a federal tax fraud case in 2003, according to the paper.

Repeater King Cat Anvil N wins open pace

King Cat Anvil N won Saturday night's $30,000 blind-draw Open Pace at Yonkers Raceway.

For King Cat Anvil N, a 7-year-old Down Under Christian Cullen gelding trained by David Stratton for owner John Kiwczak, it was his eighth win in 38 seasonal starts ($155,410). He returned five bucks as the investors' choice, leading a $64 exacta and $681 triple.

Yonkers Raceway has also made some changes in its year-end live harness schedule, according to a press release issued by the racetrack.

The six-night-per-week schedule (Monday through Saturday) remains in effect through Saturday, Dec. 22.

There is no live racing/simulcasting Chiristmas Eve/Christmas Day (Monday, Dec. 24 & Tuesday, Dec. 25).

Racing returns Wednesday, Dec. 26, for an abbreviated four-day week, with the final live program of 2007 set for New Year's Eve (Mon., Dec. 31) with a special 5 PM first post.

Table game dealers at Foxwoods Saturday voted by a wide margin to become the casino's first unionized employees, according to the Hartford Courant.

Saturday's was a historic vote for tribal casinos and organized labor nationwide. Both sides had been watching the run-up to the election closely, and its results could have major ramifications for each.

Depending on the outcome of a contract for Foxwoods' dealers Saturday's vote could result in union organizing efforts at tribal casinos coast to coast. The vote at Foxwoods is believed to be the first National Labor Relations Board-supervised union election at a tribal casino, the newspaper reported

Empire City at Yonkers Raceway this week announced its three latest five-figure jackpot winners, a triumvirate celebrating the holiday season early, and here they are:

Vola Newbold of the Bronx, scored for $53,306 on the Hot Shot Progressive on November 6;

Margaret Apgar of Bethpage, Long Island hit a $26,047 jackpot on November 10, and Valerie Peters of Tuckahoe, brought home $24,645, on November 12. All three winners scored on the Hot Shot Progressive video gaming machines.

Empire City has contributed more than $196 million to New York state in its first year of operation.

State law requires that a portion of lottery revenue go to help fund public education.

Generally speaking, about 59 percent of revenues generated from video gaming facilities like Empire City go to education funding, 10 percent to pay for the lottery’s administrative costs, and 31 percent to the facility itself.

Foxwoods Resort Casino reported to the state Division of Special Revenue today a net slot win of $61.6 million dollars, an $8 million decrease from October, 2006.

The casino’s owners, the Mashantucket Pequot Tribal Nation, also reported today a $15.4 million contribution to the State of Connecticut for October, increasing to $2.563 billion the amount given to the State since January 1993 when slot machines were introduced at Foxwoods.

Mohegan Sun reported a nest slot win of $71.9 million, down almost $3 million from October of 2006.

Foxwoods Resort Casino is investing $55 million to blend new restaurants and shops at the casino near its new counterpart, MGM Grand at Foxwoods, slated to open next spring, according to the Connecticut day.

A new luxury retail corridor and 6,600-square-foot 'ultra-hip' lounge will open when the project is completed. Near a Foxwoods and MGM Grand portal, new luxury shops and boutiques will offer designer watches, jewelry, apparel, and celebrity memorabilia, using a frameless glass design.

The National Indian Gaming Commission (NIGC) announced that it's Performance and Accountability Report, as filed in compliance with the Government Performance Results Act (GPRA) with the Office of Management and Budget (OMB) on September 30, 2007, is available to the public on its website www.nigc.gov.

This is the first such Report the NIGC has completed and submitted. The 109th Congress passed PL 109-221 which changed the funding formula for the NIGC and also required the NIGC to comply with GPRA and provide technical assistance to tribes.

According to the South of Boston Enterprise, Massachusetts State Rep. David Flynn, D-Bridgewater, told selectmen he plans to file a bill that would allow the installation of slot machines at each of the state's four race tracks while the state ponders the possible licensing of casinos.

Flynn has filed a bill that would allow the installation of 2,500 slot machines at each of the state's four tracks — Raynham-Taunton Greyhound Park, Plainridge Racecourse in Plainville, Suffolk Downs in Boston and Wonderland Greyhound Park in Revere.

These developments, along with proposals by Mass. Gov. Deval Patrick to build three full-scale casinos in the state, could erode into Foxwoods’ and Mohegan Sun’s customer base if they come to fruition.

Co announces that the St. Regis Mohawk Tribe has filed a lawsuit against Secretary of the Interior Dirk Kempthorne. The suit charges that the Secretary has acted with undue delay and bad faith with respect to the Tribe's application to place 29.31 acres at the Monticello raceway into trust for a casino. The lawsuit serves as a “motion to compel” Secretary Kempthorne to take action and issue a decision on the application.

Gov. Eliot Spitzer in February announced an agreement with the St. Regis Mohawk tribe to build a casino in the Catskills.

The agreement amends an existing gaming compact with the Mohawks, granting the tribe authority to build and operate a gaming facility at Monticello Raceway. A 2001 state law allowed for three Indian-run casinos in the Catskills, although none have been built yet.

The casino project hinges on approval from the U.S. Department of Interior to place the 30-acre piece of land near the raceway into a trust, which would allow the casino to be built in compliance with the Indian Gaming Regulatory Act. The proposed site is hundreds of miles away from the nearest Mohawk tribal land, thus necessitating the need for the land to be taken into trust.

A lawsuit started in 2000 by the Mohawk Tribe could add another $2.8 billion to the $13.9 billion debt that Harrah's buyers Apollo Management and Texas Pacific Group agreed to take on as part of the deal currently in the works, The Associated Press reported this week.

The price of Harrah's Entertainment Inc. (NYSE:HET) agreed upon by the gambling company and the private equity joint venture was set at $17.1 billion, including the $13.9 billion in debt. But a lawsuit initiated back in 2000 could add another $2.8 billion to the bottom line.

The St. Regis Mohawk Tribe sued Park Place Entertainment over a deal the two parties signed for a joint development of a casino in the Catskills in upstate New York, about hour and a half away from New Jersey. But the tribe claimed that the deal was only a tool to keep tribal competition away from the four Atlantic City casinos of Park Place's successor company, Harrah's Entertainment Inc. The tribe was awarded by a tribal court $1.8 billion and later - an extra $1 billion in interest. The case is pending at a federal court, where the tribe is trying to enforce the judgment and Harrah's is claiming that the tribal court is not legitimate.

Always a Virgin literally ran away with the $1 million Messenger Stakes Saturday night at Yonkers Raceway.

Leaving from the pole position, the odds-on favorite made every pylon his own, airing in the final jewel of the Pacing Triple Crown. He won by 6 1/2 lengths in 1:52, becoming the sport's newest millionaire and making the richest of the 52 Messengers ever the fastest of the three Messengers here, according to Yonkers Raceway.

With Brian Sears drove Always a Virgin for trainer Joe Holloway, Always a Virgin, co-owned by Bluewood Stable, Rolll the Dice Stable and Val D'or Farms, returned $3.10 for his 12th wi in 17 seasonal starts ($1,010,203). His resume includes two-thirds of the Pacing Crown--he won the $297,500 Cane Pace at Freehold before a tough-luck third in the Little Brown Jug.

The exacta paid $35, the triple was worth $224.50 and the superfecta was good for $1,014.

According to the Connecticut Day, The United Auto Workers union and dealers from Foxwoods Resort Casino rallied elected leaders to their cause Monday and said their charges of harassment and threatening could soon lead to formal action by the National Labor Relations Board.

Casino dealers have petitioned the National Labor Relation Board to allow an election to authorize the union to represent them, but the Mashantucket Pequot Tribal Nation, which owns Foxwoods, contends its laws should govern the organization.

More recently, union organizers have accused Foxwoods of harassing and threatening them, which the tribe denies, according to the Day.

.For its part, the Mashantucket Pequot Tribal Nation, which operates Foxwoods, says it doesn't oppose unionization efforts but contends any collective bargaining organization should be governed by tribal law developed over the last 15 years since the resort casino operation opened.

Foxwoods Resort Casino reported to the Connecticut Division of Special Revenue a net slot win of $67.2 million dollars for September, a $1.7 million decrease from September, 2006.

The casino’s owners, the Mashantucket Pequot Tribal Nation, also reported today a $16.8 million contribution to the State of Connecticut for September, increasing to $2.548 billion the amount given to the State since January 1993 when slot machines were introduced at Foxwoods.

Mohegan Sun reported a slot win of $77.2 million, a decrease of about $1 million from September 2006.

Mohegan Sun reported a $19.3 million contribution to the state for the month of September.

Seven seek gaming franchise to manage VLTs at aqueduct

The Division of the Budget today released the names of the potential gaming operators expressing interest in obtaining a franchise to manage a Video Lottery Terminal facility located at Aqueduct Race Track.

Governor Spitzer previously recommended that the racing and gaming franchise be awarded separately. On September 4, Governor Spitzer recommended that a newly structured New York Racing Association be awarded a franchise to conduct thoroughbred racing at the state-owned facilities at Aqueduct Race Course, Belmont Park, and Saratoga Raceway.

The state is considering two alternative models for the development and operation of the Aqueduct VLT facility. Under one approach, the state would own the gaming facility and finance its construction. The state would also contract with a gaming operator to manage the facility for an agreed upon fee plus a performance bonus or profit sharing arrangement. Under an alternative approach, the gaming operator would be responsible for the operating, capital and other expenses associated with the development and operation of the gaming facility, and would retain excess VLT revenues after making the statutory payments for education and racing and covering these operating and capital expenses.

The following parties have expressed interest in obtaining the gaming franchise:

? Delaware North Companies Gaming & Entertainment and Saratoga Gaming and Raceway

Although it’s a long shot, there is a possibility we could see New York City’s first full-scale casino, according to a report in the New York Daily News yesterday.

The Shinnecock Indians $1.4 billion casino on the site of Adequeduct Racetrack in Queens would put slot machines, table games like blackjack and poker and 1,200 hotel rooms on the site. The newspaper reported.

Backers say it would generate 12,000 jobs and almost $400 million a year for the city and state.

However, the Shinnecock’s are not a federally recognized tribe, which would greatly hinder their casino efforts.

Fitch Ratings believes the U.S. gaming, lodging and leisure industries are positioned to withstand ongoing liquidity pressures in the credit markets, at least in the near-term, according to a report released by the international ratings agency.

Among nine rated issuers in this review, Fitch calculates approximately $18.5 billion of available liquidity against $9.1 billion of debt maturing through the end of 2009. In general, companies have adequate availability on credit revolvers, many of which were renegotiated prior to the ongoing deteriorations in the credit markets that began in 2H of this year. Most facility expirations occur in 2011 and beyond.

A key concern with respect to liquidity pressure is that many capital projects can be large scale, causing free cash flow in the sector to fluctuate meaningfully based on the timing of development pipelines. The pipeline for new projects, particularly in the gaming industry, is robust. Deteriorating credit market conditions have already caused delays and/or alterations in planned construction, both in the U.S. and Asia.

This report is part of a larger global liquidity review initiated by Fitch in May 2007 of its rated issuers across corporate finance as a number of liquidity-based sensitivities in the market continue to influence both issuer and investor decisions.

Empire City at Yonkers Raceway is celebrating its first anniversary Oct. 11, with week-long festivities offering guests the chance to win their share of $250,000 in cash and prizes.

The Happy Anniversary $100,000 Cash Sweep, set for Oct. 11 from noon to 11:00 PM. Allows up to 70 winners to take home a share of $100,000.

Anniversary Day also gives all Empire City card holders a special gift, we are told: A commemorative pair of champagne flutes embossed with the Empire City logo.

Three months after launching an organizing drive at Foxwoods Resort Casino, the United Auto Workers union has more than enough signatures to petition for an election among workers and may be close to doing so, the Hartford Courant reports.

"The United Automobile, Aerospace and Agricultural Implement Workers of America, better known as the UAW, began to distribute cards for employees to sign in an effort to force a vote on unionizing in late June.

"The UAW has said it wants to organize an estimated 3,500 dealers and other floor workers, about a third of Foxwoods' workforce.

The Mashantucket Pequot Tribal Nation, which operates Foxwoods, and RLJ Lodging Fund II, LP (RLJ) of Bethesda, Md., have reached a purchase agreement for RLJ to purchase the 184-room Hilton Mystic from the Tribal Nation for an undisclosed sum.

The Hilton Mystic is the landmark hotel in the village of Mystic, opened in 1986 just off Exit 90 of Interstate 95. It is across the street from the Mystic Marinelife Aquarium and down the street from Mystic Seaport.

The purchase agreement is scheduled to close in mid-October. After the closing, the hotel will be managed by Crescent Hotels and Resort of Fairfax, Va.

In addition to its 184 rooms, the Hilton Mystic has the Mooring restaurant that seats up to 100 people, and a lounge for up to 75 people, banquet space of 6,400 square feet, and a heated indoor pool.

Empire City at Yonkers Raceway is among only four businesses receiving statewide awards by the Governor and Board of Regents when it is honored next month for hiring individuals with disabilities.

The breakfast ceremony is scheduled for Tuesday, Oct. 9, at Doral Arrowwood in Rye Brook, beginning at 8:30 AM. The honor is being presented by VESID, the Office of Vocational and Educational Services for Individuals with Disabilities. VESID is part of the New York State Education Department and coordinates events throughout New York State.

The program is part of National Disability Employment Awareness Month, which is celebrating throughout October. It recognizes the achievements of individuals with disabilities in the workforce as well as honoring businesses that have hired them.

The official theme for this year is “Workers with Disabilities: Talent for a Winning Team.” In all, 75 businesses scross New York are receiving regional awards across New York State, with Empire City at Yonkers Raceway earning one of four statewide accolades.

The Mashantucket Pequot Tribal Nation, of Foxwoods fame, has entered into a letter of intent with Wisconsin-based Great Wolf Resorts, Inc., family of indoor waterpark resorts, to develop a Great Wolf Lodge resort.

The publicly traded company (NASDAQ: WOLF) operates nine family-oriented resorts in six states and Canada under the brand names Great Wolf Lodge and Blue Harbor Resort.

“We have been talking for some time about the exciting prospects the tribe has in bringing taxable development to the communities surrounding the reservation,” said Tribal Council Treasurer Rodney Butler, who has been working on the project on behalf of the Tribal Council. “This popular family-oriented resort will add a whole new dimension to our existing resort.

Butler, declined to specify the desired location of the waterpark and hotel. He stated, “We have a preferred location under consideration, but we have options available due to the fact that the surrounding towns have been truly cooperative in supporting future economic development and understand the shared opportunities associated with building out the Mashantucket resort.”

The Pauma Band of Mission Indians' plans to replace its temporary, tented gambling establishment with a $300 million casino and hotel resort near San Diego have set off a wave of opposition from the rural area's residents.

The Foxwoods Development Co. is seeking to help the Pauma’s build the casino. (As I reported April 18.)

Opponents have sent letters to state and local officials, complained at meetings, and begun an opposition movement unlike any faced by other casino proposals in North County and Southwest Riverside County., according to the North County Times.

Foxwoods Resort Casino will once again host the prestigious Foxwoods World Poker Finals October 22 through November 13. This well-known three-week event attracts the game's biggest stars, throngs of amateurs, thousands of fans, national television cameras and consistently awards one of the top five prize pools on the WPT tour.

A few years ago I played in one of the Act II (see details below) qualifying events for the WPF, however sadly falling short. I may try again this year, if so I will keep you updated on how I do, certainly if I make it into the big tournament.

The walk-up entry fee for the popular event, No Limit Hold 'em, is $10,000. True poker fans can play their way up to a winning entry through satellite events, Act 1, 2 and 3. Act 1, which has a $65 buy in, started August 23 and will go through November 5. Tournaments are daily from 10 a.m. until midnight. Act 2, which has a $250 buy in, started on August 23 and will go through November 7. Tournaments for Act 2 are also being held daily from 10 a.m. until midnight. Act 3, which has a $1,100 buy in, is scheduled for staggered dates throughout August, September and October leading up to the Championship Finals

The New York Racing Association hasn't paid $1 million it promised federal prosecutors in a 2004 deal that deferred and ultimately avoided a criminal prosecution, a spokesman for U.S. Attorney Roslynn R. Mauskopf said Tuesday.

The Associated Press reports that the news comes a week after NYRA gained the support of Gov. Eliot Spitzer to hold on to the lucrative state franchise to run the Aqueduct, Belmont and Saratoga thoroughbred tracks for up to 30 years. Spitzer also proposes a state bailout of NYRA's debts that could exceed $200 million.

A state Senate committee is scheduled to consider Spitzer's recommendation in a hearing on Wednesday. The franchise, which NYRA has held since 1955, expires Dec. 31.

“They still owe $1 million, but they did declare bankruptcy,” Robert Nardoza, spokesman for the federal attorney for the Eastern District of New York, told the AP. The debt was first reported in the New York Daily News Tuesday.

Vertis Communications today revealed the results of its proprietary 2007 Customer Focus Casino/Gaming study, which found that 78 percent of adults reported playing slot machines and dining at restaurants in the casinos they visited in the past year. Shopping followed in popularity according to 42 percent of respondents. Surprisingly, only 9 percent of adults reported participating in sports or race betting.

“In 2006 it was estimated that 29 percent of adults surveyed would visit a casino; however, predictions were surpassed with adult visitation reaching 37 percent. A cause for the continued growth is the extensive experiences casinos offer with new entertainment and dining options,” said Jim Litwin, vice president of market insights at Vertis Communications. “If casinos want to continue attracting a wider audience beyond those who enjoy gambling, it is important to create personalized communication that reflects additional entertainment offerings.”

59 percent of casino visitors said services/ambiance is most important. Ambiance is described as a clean, friendly, comfortable, family-oriented, and fun environment. Meanwhile, 40 percent of adults are swayed by activities such as a swimming pool and dining options. Games and casino locations (as it relates to weather, distance and size) were only important to 33 and 20 percent of respondents, respectively. Interestingly, overall caliber of casino was the least important factor as only 3 percent of participants identified this as a deciding factor.

Governor Eliot Spitzer announced today his recommendation that the New York Racing Association (NYRA) be awarded the state’s racing franchise to operate Aqueduct Racetrack, Belmont Park, and Saratoga Race Course. He also announced his recommendation that a separate franchise be awarded to an experienced gaming operator to operate as many as 4,500 video lottery terminals (VLT) at Aqueduct. The recommendation of a VLT operator will be made within approximately 60 days.

“Thoroughbred racing is a vital state industry, providing tens of thousands of jobs to breeders, horsemen and workers who are directly employed at New York’s three thoroughbred tracks,” said Spitzer in a statement. “Following my investigations a few years ago, a new leadership team at NYRA has turned the organization around to the point where it is demonstrating real results and true transparency. The strong performance of racing this season is a testament to how far NYRA has come in the last few years and this agreement ensures that racing in New York State will be operated by experienced management.”

Empire Racing Associates, Excelsior Racing Associates, Capital Play LLC are the other companies vying to run the state racing franchise.

Four bidders have spent more than $2.3 million on political donations and lobbying and appear likely to far exceed that figure in attempts to influence Gov. Eliot Spitzer and lawmakers weighing who will get the franchise to run Saratoga, Aqueduct and Belmont tracks for the next two decades, according to a report in the Times-Union of Albany.

Gov. Eliot Spitzer's campaign was the biggest recipient. From 2003-2007, his war chest received $632,779 from representatives of Empire Racing Associates, Excelsior Racing Associates, Capital Play LLC and the New York Racing Association, the four companies vying to run the state racing franchise.

Green Day won Saturday night's $644,770 final of the Yonkers Trot at Yonkers Raceway in wire-to-wire fashion.

The lone gelding and lone $60,000 supplemental entrant in the 53rd Trot grabbed an early lead from post position No. 2 which he never relinquished. He led the second jewel of the Triple Crown of Harness Racing through fractions of : 28.3, :58.3 and 1:27.3, taking a two-length advantage into the lane.

Saturday's card also featured the Trot's companion event, the $300,330 final of the Hudson Fillly. Wagering favorite Vulcanize left nothing to chance, taking it the distance in 1:56.3...the fastest Hudson ever contested, according to Raceway officals.

The Philadelphia Enquirer reported yesterday the Philadelphia Planning Commission yesterday voted unanimously to give the go-ahead to the Foxwoods riverfront casino in South Philadelphia.
I wrote about Foxwoods’ plans to expand in Philly and other places.

Outside the meeting, over 100 on lookers shouted “'Shame!” and “The people want a say!,'” according to the paper.

Specifically, the commission moved to recommend to City Council that it create a special entertainment district to accommodate a casino, and to approve the project's development plan.
The zoning approval clears the way for City Council to consider a special district for Foxwoods Casino Philadelphia when it reconvenes in September, the Enquirer reported.. A second project - the SugarHouse Casino in the Fishtown-Northern Liberties area - already has received approval from the commission.

Neighbors were allowed two minutes of comment at the commission hearing in City Council chambers - but only if they had not previously addressed the board at the July hearing, according to the newspaper.

Mohegan Sun increased its slot-machine revenue in July by more than 5 percent over the same period last year, while winnings dropped by slightly more than 1 percent at Foxwoods Resort Casino during the same time period.

In its monthly report to the state Division of Special Revenue, Mohegan Sun gained $88.9 million from its slot machines in July, an increase of $4.7 million or, 5.6 percent, over the same month last year.

Foxwoods took in $75.2 million, a decrease of $960,000, or about 1.3 percent less over the same period.

Fifteen 3-year-olds—14 colts and one gelding--have been entered for the Yonkers Trot at Yonkers Raceway, according to the raceway.

The 53rd edition of the Trot, the second jewel of the “Trotting Triple Crown” I’m told, carries a total purse of $724,770, with a pair of $40,000 elimination races this Saturday night determining the eight qualifiers for next Saturday night’s $644,770 final.

According to several news outlets in Kansas, state voters there soundly defeated a proposal by the Foxwoods Development Corp., in conjunction with the Iowa tribe of Kansas and Nebraska and other partners to build a casino in Sedgwick County in a special referendum held Tuesday.

In unofficial results posted Wednesday on the Sedgwick County Elections Website, nearly half of the eligible voters turned out to vote down the casino proposal, 56,842 to 44,326. That's a rejection by 56 percent of the county's voters from 101,643 ballots cast.

Sedgwick County is a populous county, by Kansas standards, of around 450,00 located in south-central part of the state. The largest city in the county is Wichita, with a population of approximately 344,000, also the largest city in Kansas.

A New York City woman playing the nickel slot machines at Empire City hit the jackpot Saturday, winning over $155,000.

Maria Rivera, a homemaker from the Bronx, became the lucky winner of Empire City at Yonkers Raceway's largest jackpot to date, $155,466.15, while playing a "nickel" video gaming machine. This particular progressive jackpot had been building since Empire City opened last October.

Ms. Rivera, who was playing the “Super Winner Hot New Progressive” machine just after 3 p.m., hit for the big bucks when six like "simple winner" symbols came up, after which she was given two really big checks, one for commemoration and one for cashing, according to Empire City.

According to the Syracuse Post-Standard, The New York State Racing and Wagering Board voted Tuesday morning to extend the Vernon Downs’ racing license for the remainder of the season, which ends in November.

“The board has been granting them race dates on a month-to-month basis to date, but they just gave them the remainder of the time,” said Dan Toomey, spokesperson with the Racing and Wagering Board.

Since March, the racing and wagering board has allowed Vernon Downs to race just one month at a time, citing the Syracuse-area track's ongoing financial troubles and inability to field enough horses early in the season. The board on June 19 allowed Vernon to race until today, but noted that the track's financial condition was still weak despite the opening of a “racino” in October.

The track is also in close proximity to the Turning Stone Resort and Casino, operated by the Oneida Indian Nation.

Local horse racing fans are in for a treat as Belmont Stakes winner Rags to Riches will be running at Saratoga next month.

As you remember, Rage To Riches made huge headlines in June when she became the first filly to win the Belmont since 1905, out-dueling Kentucky Derby winner Curlin. You may also remember I picked her to finish at the back of the pack, proving yet again that I am a horrible handicapper.

However, Rags to Riches isn't scheduled to run against the colts in Saratoga’s signature race the Travers Stakes, which is considered the most prestigious race after the Triple Crown races, on Aug. 25. Instead, she is expected to run against other fillies in the Alabama a week earlier. Rags to Riches was scheduled to arrive at Saratoga on Tuesday but instead is at the New Bolton Center in Pennsylvania undergoing a complete physical.

I used to work for several newspapers in the Albany area over the past few years, and always enjoyed going to nearby Saratoga. It is certainly the jewel of upstate, and a fine looking city and racetrack. I know many racing enthusiasts from the NYC metro area make the trek up there in August, and while the Alabama was never a “must see” race the inclusion of Rags To Riches should increase interest in it greatly.

According to the Casino City Times, the St. Regis Mohawk Tribal Court has confirmed that over $1 billion of post judgment interest has accumulated on a Default Judgment Order that the Trust is seeking to enforce against Park Place Entertainment Corporation and Clive Cummis, its former General Counsel. The Trust had requested clarification from the Tribal Court of the rate of interest applicable to a $1,787,000,000 judgment entered by the Tribal Court on March 20, 2001. The Order was issued in a class action lawsuit brought on behalf of members of the St. Regis Mohawk Tribe on April 26, 2000, claiming that the defendants had interfered with a proposed casino project in the Catskills.

The underlying claim of the tribal class members was initiated in the Tribal Court, which was established in 1994 with funding assistance being provided by the United States Department of Interior, Bureau of Indian Affairs. The United States Supreme Court, in a case decided in 1985 recognized the jurisdiction of tribal courts over lawsuits that involved non- tribal members. In National Farmers Ins. Cos. v. Crow Tribe, 471 U.S. 845 (1985), the Supreme Court ruled that any challenge to the jurisdiction of a tribal court had to first be presented to the tribal court; and, in 1997, in Basil Cook Enterprises Inc. v. St. Regis Mohawk Tribe, 117 F. 3rd 61 (2d Cir. 1997), the US Court of Appeals for the Second Circuit applied this doctrine to uphold a challenge against the St. Regis Mohawk Tribal Court.

In announcing the ruling of the Tribal Court, Dennis C. Vacco, former United States Attorney for the Western District of New York and Attorney General for the State of New York, who now serves as a Trustee, said, "This ruling on post judgment interest was helpful in establishing, in a court of unquestioned authority over this issue, the cost of further delay in satisfying the judgment. The billion plus dollars in interest represent the cost to the defendants for ignoring the Tribal Court judgment for the last six years." The Tribal Court Order was issued on July 12, 2007 and provides that interest on any unsatisfied portion of the judgment accrues from date of entry of the judgment at 9% per annum simple interest, as provided in sections 5003 and 5004 of the New York Civil Practice Law and Rules. Such accumulated interest exceeded $1 billion as of July 12, 2007.

Governor sets timeline for racing and gaming proposals

Governor Eliot Spitzer today announced the next steps in the process for awarding the franchise for racing at Aqueduct Racetrack, Belmont Park and Saratoga Racecourse.

Since the April presentations to the state racing panel, the administration has heard from the four groups seeking the franchise.

The Governor said he intends to make a recommendation to the Legislature regarding disposition of the franchise and related matters no later than September 4, 2007. However, because there have been significant changes in the structure, ownership and organization of some of the proposed operators since their presentations to the panel in April, each is being asked to update its proposal to reflect its current structure and financing or to confirm that there have been no material changes since the last submission.

Foxwoods reported to the state Division of Special Revenue a net June slot win of $69.7 million, a $2.2 million increase from June, 2006.

As per the casino’s gaming compact with the state, each must give 25 percent of its slot revenues back to Connecticut.

Foxwoods deposited $17.4 million to Connecticut’s coffers in June, Mohegan Sun contributed $18.6 million.

For all you aspiring professional gamblers, or for those who don’t currently pay their taxes, the IRS recently issued some handy guidelines on how to report your gambling winnings.
Below is the full text from www.irs.gov.

You must file Form 1040 and include all of your winnings. Gambling income includes, among other things, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair market value of prizes such as cars and trips. You can find more information in Publication 525, Taxable and Nontaxable Income.

Anyone who pays your winnings or awards you a prize is required to issue you a Form W-2G if your winnings are subject to Federal income tax withholding or if your winnings are over a certain amount.

However, all gambling winnings must be reported regardless of whether any portion is subject to withholding. In addition, you may be required to pay an estimated tax on your gambling winnings. For information on tax withholding on gambling income, refer to Publication 505, Tax Withholding and Estimated Tax.

If your luck isn’t always so good, you may deduct gambling losses. Losses may be deducted only if you itemize deductions and only if you also have gambling winnings. Claim your gambling losses as a miscellaneous deduction on Form 1040, Schedule A. But remember, the losses you deduct may not be more than the gambling income you report on your return.

Even though you may be on vacation, if you want to deduct losses when you file your return next spring, it is important to keep an accurate diary or similar record of your gambling winnings and losses right now.

To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show both your winnings and losses.

For more information, refer to Publication 529, Miscellaneous Deductions. The publication is available at IRS.gov or ordered by calling 800-TAX-FORM (800-829-3676).

According to the New York Times, a day after receiving federal approval, the Seneca Indian Nation opened a temporary 5,000-square-foot casino on Tuesday with 124 slot machines in downtown Buffalo.

The long-delayed move, which has been opposed by many civic and political leaders for several years in Buffalo, sets the stage for a legal showdown over whether the tribe's sovereignty gives it the right to run a casino on its non-reservation

The feds approval of the Seneca’s non-reservation casino in Buffalo is interesting, considering the St. Regis Mohawk Tribe’s plans on building a non-reservation casino closer to our area in Sullivan County. That application, as well know, has been sitting in the Department of Interior awaiting a decision for several months now.

In a report released yesterday on the entities seeking to operate New York’s racing franchise, the state Inspector General recommended none be dropped from consideration under the integrity qualification required by Gov. Eliot Spitzer.

However, the report detailed problems with all of the bidders, including business figures with questionable backgrounds, organized crime syndicates, and personal connections to Spitzer and Senate Majority Leader Joe Bruno.

The report reviewed thousands of pages of regulatory records, legal action and newspaper reports including background checks of principals in the four entities seeking the 20-year franchise to operate Aqueduct, Belmont and Saratoga race tracks.

The groups vying for the 20-year franchise are: Excelsior Racing Associates, which includes Las Vegas casino developer Steve Wynn; Empire Racing, which has a partner in Churchill Downs and is based in Saratoga Springs; NYRA under recently changed management; and Capital Play, which helped revive Australian racing.

In a press statement, Spitzer said. “The IG's report released today illustrates why racing is one of the most heavily regulated industries in the nation. History has shown that the large amounts of cash at stake in racing pose risks for illegal activities including money laundering at rebate shops, tax schemes and race fixing.”

He added, “This potential means that we must be scrupulous in monitoring and regulating activity. Indeed, this is why I required an integrity review in the first place. As we go forward, we will all need to examine the full range of available integrity tools, ranging from private monitors to enhanced state regulatory powers, to ensure the continued integrity of racing and other gaming in New York State.”

Mohegan Sun is announced that the first East Coast engagement of the Global Fighting Championships (Global FCs) will take place in the Arena at 8:00 pm on Friday, August 17.

Tickets are $250.00, $150.00, $100.00 and $50.00, and are on sale now at the Mohegan Sun Box Office and through Ticketmaster.

Global Fighting Championships is the latest entry in the increasingly popular sport of Mixed Martial Arts competitions.

A heavyweight championship match features two men with fantastic nicknames: Jeff “The Snowman” Monson and Wes “The Project” Sims in a face-off that a press release tells us “fans have been eagerly awaiting.”

Also, the middleweight belt will be contested between Edwin “Babyface” Dewees and Mavrick “The Soul Collector” Harvey.

I don’t follow the world of mixed martial arts, and I know nothing of the Global Fighting Championship, but I do know this violent brand of sport has been increasingly growing in popularity. So I would imagine the event will be a pretty good financial boon to Mohegan Sun, given the expensive ticket prices.

Foxwoods Resort Casino reported to the state Division of Special Revenue today a net slot win of $67.3 million, a $5.2 million decrease from May 2006.

Mohegan Sun reported a net slot win of $75 million, down from $78 million in May 2006.

Foxwoods reported a reported today a $16.8 million slot contribution to Connecticut for May, increasing to $2.477 billion given since January 1993 when slot machines were introduced at Foxwoods.

Mohegan Sun reported a $19.5 million contribution to the state for the month of May.

The gaming compact each casino signed with Connecticut calls for them to send 25 percent of their slot revenue to the state.

A bill just passed in the state Senate would increase revenue from video lottery terminals for education and local tourism “New York State has the lowest blended VLT race track vendor fee east of the Mississippi River," said Senator Bill Larkin, R –Orange County, the bill’s sponsor. “The fee is under 30%. If we increase the fee, the revenue these facilities would generate would significantly increase available school aid for local school districts. It would also help create state-of-the-art facilities to attract tourists and increase business for restaurants, hotels, shops and other small businesses particularly in economically depressed upstate regions."

The range of vendor fees in other states is as follows: Louisiana, 63.3%; Maine, 61 %; Iowa, 60%; New Mexico, 54.8%; Delaware, 49%; Pennsylvania, 45%; West Virginia, 42%, and Florida, 38%. Except for Florida, New York has the lowest vendor fee for small VLT facilities, but if the facilities are large ones, the New York's blended rate is the lowest on the eastern seaboard, and possibly in the nation.

This bill raises the VLT vendor fee, in certain limited circumstances, for small New York gaming facilities to between 36% and 42% (depending on the market conditions of the facility in question), plus an additional marketing fee of 2% to help advertise these facilities. “This increase in the vendor fee would still place small New York VLT vendors in the middle of the pack when compared to vendor rates established by other states that have VLT programs,” said Larkin. "Without this change, several current VLT facilities may have to discontinue operating.”

The bill was sent to the Assembly and remains in its Racing and Wagering Committee

The U.S. Department of Interior will allow the Oneida Indian Nation's Turning Stone Casino in central New York to keep operating, in a decision made Thursday.

The agency notified the tribe and Gov. Eliot Spitzer it won't withdraw approval of the gaming compact Gov. Mario M. Cuomo granted in 1993. A state court had ruled the compact was invalid because the state Legislature didn't approve it.

In a press release issued by the Oneida Indian Nation, the tribe stated the matter was settled “for all time.”

“The uncertainty and anxiety experienced by our 5,000 employees and their families are over,” the release states.

I don’t know if this decision sheds any light on how the Department of the Interior will rule on the state’s compact with the St. Regis Mohawk Tribe, which is hoping to build a casino in Sullivan County next to Monticello raceway.

Although the tribe and the state reached an agreement to build the casino in February, it still needs the federal agency’s approval to take the land into trust, because it sits hundreds of miles away from the tribe’s reservation land.

It’s a possibility for Turning Stone Resort and Casino in Verona as the U.S. Department of Interior, in an unprecedented step, is reconsidering its approval of a 1993 compact with the Oneida Indian Nation, which operates the casino.

The casino, 35 miles east of Syracuse, has been open for ten years, and the Associated Press reports it employs nearly 4,000 workers.

Considering the already stagnant and depressed economy of Central New York, a loss of jobs of that magnitude could be devastating.

The Interior department decided to review the Turning Stone compact after a series of court decisions ruling it illegal and the subsequent failure of the tribe and state to negotiate a new agreement. The agency also was responding to a 2005 U.S. Supreme Court ruling that the tribe does not have sovereignty over the land where the casino is located.

The tribe's top lawyer, Peter Carmen, told the AP it would sue to keep Turning Stone open if the federal government revokes its approval of the casino.

Even if the Interior department rescinds its approval, it would be left up to the National Indian Gaming Commission -- a separate entity in the Interior department -- to order the casino closed.

Turning Stone opened in 1993 after the Oneidas brokered a gambling compact with then-Gov. Mario Cuomo. That compact did not require the tribe to share any gambling revenues with the state.

Gov. Eliot Spitzer recently approved a compact with the St. Regis Mohawk Tribe to build a casino in Sullivan County where the Mohawk’s would give the state 25 percent of its slot revenue. The Seneca Indian Nation also pays the state 25 percent of its slot machine revenues for two casinos it operates in the Buffalo region.

The state has demanded a 33 percent cut of Turning Stone revenues to sign a new agreement, according to published reports

Over the past few years, I have become increasingly interested in Thoroughbred horse racing and have been trying my hand at handicapping.

While I kept my Derby and Preakness picks to myself, being that the third leg of the Triple Crown is in nearby Elmont, Long Island, I believe that’s enough justification for me to write about it in this space.

Certainly, the Belmont does have not have nearly as much buzz this year as it did in 2003 and 2004, when Funny Cide and Smarty Jones, respectively, came in after winning the first two legs of the Triple Crown. Of course, both horses failed in their attempts to become the first Crown winners since Affirmed in 1978.

This year’s edition of the Belmont was completely dead until earlier this week when it was announced the filly Rags To Riches would run in the race. Only 22 fillies have run against the boys in the previous 138 years of the Belmont Stakes. The last filly to win was in 1905, when Tanya did it.

Still, the addition of Rags to Riches has added some much needed excitement to the race. I will not be picking her, however, as history tells us she has little or no chance winning.

Before I reveal my picks, one caveat. Since I began wagering on the Triple Crown races in 2005, I have not picked one trifecta right and none of the horses I’ve picked to win have even finished in the top three. So either I’m due, or I’m no good at this.

1. Curlin                  6-5
2. Hard Spun           5-2
3. Tiago                   10-1
4. CP West              12-1

Southwind Lynx won Yonkers Raceway’s first ever million-dollar race Saturday night, at the 17th edition of the Art Rooney Pace, which returned to Yonkers for the first time since 2003.

Southwind Lynx and driver Tim Tetrick won the $1 million final of the Rooney for three-year-olds, closing from fifth at the head of the lane to edge Forensic Z Tam by a half-length in 1:52.3. The horse left from post position number six.

The raceway reported brisk business Saturday, with a total ten-race handle of $1,020,511--Yonkers' largest wagering number since the November 2006 reopening--and nearly $200,000 wagered on the final of the Rooney itself.

Those of you who travel up the Thruway in August to catch the world-class racing in Saratoga Springs will notice the raceway has grown in size since last year.

Saratoga Gaming and Raceway had the obligatory ribbon cutting ceremony today for its expansion project.

The 45,000 square-foot addition includes 431 more video gaming machines including a “high limit” area, a 325-seat Garden Buffet restaurant, and a nightclub called “Vapor.”

In other Saratoga news, the trainer for Kentucky Derby winner Street Sense announced that the horse would run in Saratoga at the Travers Stakes Aug. 26.

The Travers, nicknamed “The Midsummer Derby” is considered to be the most prestigious Thoroughbred horse race outside of the Triple Crown races.

Representatives of the Cayuga Indian Nation said yesterday that the tribe would end its pursuit of 64,000 acres in the Finger Lakes in exchange for the rights to a 10,000-acre reservation there and the go-ahead for a class-three casino somewhere in the state, potentially the Catskills, according to several published reports out of the Capitol.

The state approved three casinos in the Catskills in 2001, but until this year there had been no movement on buildings casinos in that area. That changed in February when Gov. Eliot Spitzer and the St. Regis Mohawk Tribal Nation agreed on a compact that would allow the tribe to build a casino in Sullivan County next to the existing Monticello Raceway. The compact calls for the tribe to give the state about 25 percent of its slot revenues, similar to deals Mohegan Sun and Foxwoods have with the state of Connecticut.

The federal Department of the Interior still has to allow the Mohawk’s to take the land into trust, since it sits several hundred miles from their tribal land.

Regarding the Cayuga’s, the site of their theoretical casino is still unknown. According to the Associated Press, Spitzer wants to see the casino near the tribe’s central New York homeland, but the Cayuga’s are looking potentially at Sullivan County.

Regardless of what you think of “The Steamroller” and his administration to date, he has been proactive and aggressive in pursuing the state’s long-languished plans for casinos in the Catskills.

Empire City at Yonkers Raceway had a $7.39 million net income from video gaming machines for the week ending May 19, according to figures provided by the New York state Division of Lottery
$4,039,636 was sent to the state as aid to public education.

The video gaming machines include video poker and video slots. The machines are tied to one central operating system.

The New York state Constitution requires that a portion of Lottery revenue be distributed to support public education.

Further north at Monticello Might M Gaming in Sullivan County, they reported a $1.27 million net gaming machine income, with $635,049 sent to the state to fund public education.

The Mohegan Tribal Gaming Authority (MTGA), the operators of Mohegan Sun, announced today that it has completed its more than $4 million purchase of the Pautipaug Country Club in Franklin, Connecticut.

The golf course has been renamed Mohegan Sun Country Club at Pautipaug, and a grand opening is planned for June 8-10 with members of The Legends Tour, which is the official Seniors Tour of the LPGA.

Mohegan Sun Country Club at Pautipaug will become a private facility as Mohegan Sun grants access to its casino guests and convention goers. Planned improvements to the property include upgrading the golf course’s irrigation system, re-paving the parking lot and refurbishing the clubhouse, according to MTGA. The current members of Pautipaug will be offered the opportunity to remain active members of the country club with fixed membership dues for 15 years.

Foxwoods this week reported to the Connecticut Division of Special Revenue a net slot win of $65.2 million in April, a 2.2 percent decrease from the same month last year.

$16.3 million of those monies were deposited directly to the state’s coffers, as per the deal between Connecticut and the Mashantucket Pequot Tribal Nation, which operates Foxwoods.