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State-by-State Updates Fall 2001 ARIZONA Broomfield also ruled that Gov. Jane Hull does not have the authority to negotiate new compacts. “The Governor’s inability to enter compacts may readily be cured by the Arizona Legislature with the enactment” of a law declaring Indian gaming legal, Broomfield summarized in the 126-page ruling. The ruling was a victory for the dog and horse tracks, which filed suit last November to stop the expansion of Indian gaming in the metropolitan Phoenix and Tucson areas. “This may be a small victory for the racetracks in their effort to shut us down, but I’m confident that when the dust settles, the will of the people will prevail in the end,” said David LaSarte, executive director of the Arizona Indian Gaming Association. He cited recent polls that show two-thirds of state residents are in favor of regulated gambling on reservations. “As it stands now, the illegal gambling that’s going on must come to an end,” said Neil Wake, attorney for the Phoenix and Tucson dog tracks and a Phoenix horse track. State officials, however, disagree, and will not ask law enforcement authorities to shut down any Indian casinos. “This is only about future compacts and not existing compacts,” said state Attorney General Janet Napolitano. “And at this point, there is no order from the court to enforce the ruling,” she added. The case will almost certainly be appealed to the 9th U.S. Circuit Court of Appeals. In the interim, tribal leaders are meeting to discuss their options, including whether to pursue legislative resolution of the issue or seek a ballot initiative in November 2002 to let voters decide. Two state lawmakers, both Republicans, have called for a special session to give the Legislature the power to ratify the new compacts. Muddying the legislative waters, however, is the fact that the new chairman of the state Republican Party, Bob Fannin, is also the longtime lobbyist for Phoenix Greyhound Park. “This could be an area of concern for the tribes if they are going to try to resolve this situation in the Legislature,” LaSarte said. Fannin, the son of a former U.S. senator and Arizona governor, has earned the nickname “The Godfather” at the Capitol for his lobbying prowess. As party chairman, Fannin wields enormous influence over the Republican bloc. “I don’t know how he can maneuver his way through a legislative session in such a way that he keeps his client happy and also represents the Republicans,” said Bob Grossfeld, a political consultant who represents mostly Democrats. Source: The Arizona Republic: Robbie Sherwood, Tom Zoellner, Heather Urquides COLORADO In response, Wembley filed a counter-suit in Denver District Court June 26 accusing the men of financial mismanagement and misconduct during their 11 years with the company’s greyhound and horse racetrack operations. Wembley USA, based in Aurora, Colorado, is a subsidiary of London-based Wembley PLC, a publicly traded international entertainment and gambling conglomerate. In 1990 Wembley bought Lincoln Park in Rhode Island for about $60 million as part of its foray into the United States gambling market. Lincoln Park, a greyhound track with 1,700 video slot machines, has been Wembley’s most lucrative business, reaping $42.3 million in profits last year. Wembley also has a near monopoly on Colorado’s dog and horse racing industry. Longtime president Francis “Skip” Sherman and chief financial officer David Brents have worked for Wembley USA since 1990. But on April 18, the chairman of the subsidiary’s parent company sent a memorandum to employees saying Sherman and Brents had been assigned “special projects” and were “relieved of any operating responsibilities.” The executives’ Colorado attorney Sander Karp said his clients were all but fired. “They were thrown out,” Karp said. “They were locked out of their offices and told not to come back in and not to talk to anybody.” Karp said the trouble started in January when, his clients allege, Wembley USA proposed a multimillion dollar, six-year deal with the unnamed Rhode Island lawyer. Sherman and Brents, who worked in Colorado but had direct oversight of Lincoln Park, say in their lawsuit that they “believe that these payments were illegal and violated public policy.” They said they complained to London headquarters, but the company ordered them to make the deal. In its counterclaim, Wembley acknowledged that it considered making payments to a law firm over Sherman’s objections, but denied the financial proposal was part of an “illegal scheme.” The Providence Journal reported in early July that Sherman’s and Brents’ lawsuit has triggered an informal inquiry by Rhode Island’s state lottery commission. State and federal law enforcement officials are reviewing the executives’ allegations to determine whether grounds exist for a formal investigation of the company. Sherman and Brents are seeking back pay, lost income, and a severance package, as well as punitive damages. A clerk in Denver District Court said that it typically takes nine months to a year for a civil case to reach trial. Sources: The Providence Journal-Bulletin:
Ariel Sabar FLORIDA Stanley D. Kupiszewski, owner of the 160-acre racetrack property, said the gift portion of the contract would be worth about $4 million and involve about 30 acres. Terms of the deal will not be disclosed until details of the donation are worked out. Northland, which attracts an average of 6,000 people to its Sunday services, plans to build a 2,500-seat church on the site. Plans include tearing down a portion of the racetrack’s grandstands and converting an existing clubhouse into a parish hall, Riley said. The church also wants to have park and recreational space open to the public. Seminole Greyhound Park closed its doors permanently in March after years of declining attendance. Source: Orlando Sentinel: Gary Taylor Sanford: According to a brief news item that appeared in the Aug. 30 edition of the Orlando Sentinel, two greyhound trainers agreed to surrender at the Seminole County Jail on Friday, Aug. 31 and begin serving seven-month jail terms for animal abuse. Judge Mark Herr also fined each man $7,000. Frank Ritt and Bruno Steinmann each were convicted Aug. 24 of 70 misde-meanor counts of animal abandonment. According to testimony at their two-day trial, Steinmann went to Pensacola on business in September 1999, leaving his dogs in the care of Ritt and other trainers at Seminole Greyhound Park. A month later, an investigator with the state Division of Pari-Mutuel Wagering inspected the kennel and found many of the dogs to be dehydrated, malnourished and suffering from anemia because of severe flea and tick infestation. According to Assistant State Attorney Stacey Straub Salmons, at least 15 dogs were in serious medical condition and one dog died. Source: Orlando Sentinel West Palm Beach: Florida’s Division of Pari-Mutuel Wagering revoked the occupational license of Mitchell Haber on July 27. Haber, formerly a trainer at the Palm Beach Kennel Club, was convicted of four counts of animal cruelty earlier this year in Palm Beach County. The cruelty charges were filed against Haber after four greyhounds in his kennel died of heat exposure. Five dogs had been left unattended in an outside run for four hours on August 5, 2000. When Haber returned to the kennel compound four hours later, he found two greyhounds dead, one greyhound in convulsions and dying, and one, Mark Young, apparently in good health. Haber cut off the ears of the three dead greyhounds — Mask of Courage, Haberfield, and Tiebreak Winner — before burying them on the grounds of the compound. A fourth greyhound, Positive Thought, was later found dead in another kennel. Following his conviction, the Division filed an Administrative Complaint against Haber on Feb. 15, 2001. Haber filed an appeal and the case was referred to the Division of Administrative Hearings. A formal hearing was held in Tallahassee on May 2, 2001 via video teleconference. Administrative Law Judge Patricia Hart Malono stated in her Findings of Facts that Haber expressed remorse for the death of the greyhounds, that the dogs’ deaths were the result of a miscommunication between Haber and his helper, that Haber did not intentionally leave the greyhounds outside without shade on a very hot day in August, and that Haber used poor judgment by trying to conceal the death of the dogs and their identities. Malono concluded that an appropriate penalty would consist of something less that the revocation of Haber’s occupational license. “The legislature, however, appears to have limited the Division’s discretion to determine an appropriate penalty when a licensee has been convicted of cruelty to animals . . . Accordingly, the revocation of Mr. Haber’s pari-mutuel license appears to be mandatory.” An “endnote” was added to the 15-page document under the judge’s signature. At some point in the investigation, Haber told the Division “that a dog named Mark Young had died as a result of being left in the turnout area. Mr. Haber testified at the hearing that Mark Young died several days after the incident of a stroke as he came off the race track.” Malono signed the order recommending Haber’s license be revoked and forwarded it to the Division for final action. Sources: State of Florida:
Division of Administrative IOWA Slot machine profits supplement purses at the state’s two tracks. Last year, more than $7.5 million was paid out to kennel owners. State law allows slot machines at the tracks only if the track hosts a specified number of live racing performances each year. The larger track, Bluffs Run, must host 290 live performances a year. Greyhound racing attendance has never been lower in the state, and the future of the industry remains an open question, said Gaming Commissioner Rita Sealock. “I don’t know how much hope there is. Obviously, they can’t continue to do things like they have,” she said. Less than $10 million was bet on live races at Bluffs Run last year, a decline of 92 percent over the 15-year period since the track opened in 1986. Source: The Des Moines Register: William Petroski OREGON Magna also leased the operating rights to the Portland Meadows thoroughbred track in North Portland. Jim McAlpine, Magna’s president and chief executive officer, said, “We are pleased to announce our entry in the State of Oregon. We believe that our operation of both Portland Meadows and Multnomah Greyhound Park presents a good opportunity for the rejuvenation and expansion of the Oregon racing industry.” Magna, one of the largest operators of premier horse racetracks in the United States, acquires, develops, and operates horse racetracks and related pari-mutuel wagering operations, including off-track betting sites. “I see Magna continuing greyhound racing in Oregon,” said McFadden, who has owned the track since 1997. “Could they close the park in the future? Sure, that will be their call. I don’t see it happening, though,” McFadden said. In other track news, relief veterinarian Jane Knoper submitted her resignation Aug. 16, one week after she was briefly off the premises when a greyhound competing in a schooling race collapsed after leaving the starting box. Regulations require that a veterinarian be on duty for schooling and official races. The Oregon Racing Commission recommended that Knoper be given a written reprimand, but the vet chose to resign her position, citing numerous problems with trainers, strange hours, and little authority as the reasons for her decision. The dog, which was not identified by age or gender, suffered temporary nerve damage and was taken to a veterinary clinic for treatment. Sources: The Oregonian: Dan Mooney Canada NewsWire TEXAS Door prizes and new games have also been added, including something called “dog chip bingo,” where the track is mark-ed off in squares and people bet on where the dogs will relieve themselves, said sales director Michael Permetti. GGP, located 35 miles south of Houston, opened in November 1992. In its first full year of operation, the track drew 2 million patrons that wagered $268.4 million in bets. Last year, attendance was down to 612,000 and the wagering handle totaled $138.2 million, nearly two-thirds of which came from simulcasting. Changes in state law have allowed the tracks to simulcast intra-state races from the two other dog tracks and three major horse tracks. “Simulcasting is saving everybody,” said Paula Flowerday, executive director of the Texas Racing Commission. Increasing competition from Louisiana riverboat casinos at Lake Charles, the Texas Lottery, and the Sam Houston horse track in north Houston, have siphoned off gaming dollars from GGP. In the fall, slot machines will begin operating at the Delta Downs horse track in Vinton, 120 miles east of La Marque on the state line. Flowerday said the La Marque track doesn’t appear to be in danger of closing. Track officials strongly deny any such possibility and say they’re doing well as a scaled-down operation. But Flowerday said the future is clouded for all tracks in Texas. “I really do believe that over the next few years it’s going to become pretty critical for the industry in terms of the competition for the wagering dollars,” she said. Flowerday suggested that changes in the law may be needed to boost profitability. “They may require legislative assistance.” Source: The Dallas Morning News: Bruce Nichols WISCONSIN State Sen. Robert Wirch (D-Kenosha), has introduced legislation to amend state gaming regulations by lifting revenue restrictions from simulcasting, with the provision that each track offers at least 275 days of live racing a year. Wirch, whose district includes Dairyland, said the change would not turn Wisconsin’s dog tracks into off-track betting parlors since they must continue offering a minimum number of live races. “We simply wanted to reduce an artificial barrier,” Wirch said. “The dog track is not going to help the state, country, or local government if it goes bankrupt. This will allow them a little flexibility and ensure them their survival.” Wirch said he has not been asked to introduce legislation allowing slot machines at the tracks. Roy Berger, executive vice president of Dairyland, said allowing slot machines in dog tracks wouldn’t be an expansion of gambling in Wisconsin because the tracks already have gaming licenses. “It’s not like we’re trying to break ground in Wisconsin. You’ve got slot machines in the state to begin with,” Berger said, referring to Indian casinos operated by the Ho-Chunk, Oneida, and Potawatomi tribes. Others see it differently, however. “The dog tracks have had their day and they’ve failed,” said state Sen. Fred Risser, (D-Madison), a vocal gambling opponent. “The public is not that interested. Dog owners should try to make a buck somewhere else.” In other Dairyland news, the Menominee Indian tribe formally withdrew its application for an off-reservation casino at Dairyland in a letter to the U.S. Bureau of Indian Affairs released to the press Aug. 17. The move ends a seven-year effort that likely cost the tribe and its investors millions. Menominee Tribal Chairman Apesanahkwat said they pulled the plug on the casino deal because it was clear federal and state officials would not approve it. Regulators’ concern over alleged crime links with some non-Indian casino investors killed the deal, Apesanahkwat said. “It’s just not going to happen. It’s futile for us to fight,” he said. The tribe’s investment partner, NII-JII Entertainment, became a liability, Apesanahkwat said. A former U.S. congressman, whose ex-business partners have been linked to Chicago’s crime syndicate, heads the NII-JII partnership. According to Apesanahkwat, other NII-JII investors’ backgrounds were even more problematic than the congressman’s. He declined to name which ones. The proposed $400 million Paradise Key Casino would have been built on the track property. Greyhound racing would have continued to operate alongside the casino Source: Milwaukee Journal-Sentinel |