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STATE-BY-STATE
NEWS UPDATE: ALABAMA Assistant District Attorney Kenneth Gibbs estimated that VictoryLand has about 340 of the video gaming machines, which give players tokens redeemable for prizes but not cash. Other business owners who received Clark's notice operate only a small number of machines. "I've had some of the owners tell me that they will comply with the order," Gibbs said. "If they don't, we'll follow through." Ten days later two dozen state and fed-eral agents raided VictoryLand and seized ten of the machines. VictoryLand owner Milton McGregor obtained a temporary restraining order requiring the seized machines be returned immediately. "We're back in business," McGregor said the next day, calling the raid a "publicity stunt." On April 1 Circuit Court Judge Howard Bryan ruled that the machines are in violation of an Alabama Court of Civil Appeals decision last December that the machines violate the Alabama Constitution's prohibition against lotteries. The ruling has been appealed to the Alabama Supreme Court. Bryan ordered the machines sealed until the state's high court hears the case. Sources: The Montgomery Advertiser:
Alvin Benn ARIZONA A miscalculation by the Arizona De-partment of Racing led to the overpayments and the state is seeking reimbursement. Several options are under consideration, including either direct repayment or the reduction of future breeders' awards by the amount due over a six-month period. "Breeders will be offered the choice on how to reimburse the state," said Geoffrey Gonsher, newly appointed director of the department. In other news, a state law passed by the Legislature in 2000 went into effect June 1, raising the legal gambling age from 18 to 21 at all racetracks, casinos, and lottery sites. State officials called the revenue generated by 18-to-20-year-olds insignificant. Tom Taylor, CEO of Tucson Greyhound Park, disagreed. "Being a college town, it's going to affect us. That 8 percent doesn't just gamble. They come here for the environment," Taylor said, referring to students at the University of Arizona. Sources: The Arizona Republic:
John Stearns Tucson: The Animal Defense League of Arizona (ADLA) held a demonstration at Tucson Greyhound Park on Thursday afternoon, June 26. The demonstration, organized by ADLA member Gary Vella, was held to protest the state's subsidy of the dog and horse racing industry. More than 20 animal activists participated in the event. The Tucson track has paid no pari-mutuel taxes to the state in the last six fiscal years, despite record earnings of more than $26 million. [For additional information, go to www.adlaz.org/pari-mutuel.html to read an opinion piece by GNN's editor, which was published in The Arizona Republic April 19. - Ed.] Source: Green Valley News COLORADO The track, renamed Post Time, is expected to run live dog races Monday through Saturday afternoons, from Aug. 19 to Nov. 1, under its request to the state. David Reitz, the state's director of racing events, said the racing commission would most likely approve the dates, although approval will depend on whether Wembley has made several upgrades at the track. According to Ty Howard, Wembley's president and chief executive officer, the company has spent $100,000 to $150,000 on several upgrades, including the installation of a judge's box, remodeling of the paddock and state veterinarian's office, and upgrading the kennel area. Howard said the company intends to recondition the track's racing surface, but it has no plans to install a heating system under the track because racing will take place only during the afternoons in late summer and fall. Wembley USA, which is a subsidiary of the London-based international gambling conglomerate Wembley PLC, owns two off-track betting sites in Colorado and three of the state's four greyhound tracks. Wembley USA also owns Lincoln Park in Rhode Island, its most profitable U.S. gambling venue. Source: The Gazette: Rich Laden FLORIDA Journigan said he was shocked when he was notified of the complaint in April and said he plans to represent himself at the hearing. He said he had given some dogs antibiotics because of the kennel cough outbreak in January, adding that antibiotics can create false positive test results in greyhounds. Greyhound Protection League director Susan Netboy said, "These kinds of substances ruin a dog's future and undermine its health. They are such trusting animals. That violation of trust - that's really heart-wrenching." An administrative law hearing for Journigan scheduled for June 19 was canceled. Source: Naples Daily News: Kristen Zambo Hallandale: Eileen O'Connor, Assistant Attorney General for the Tax Division of the Department of Justice, and Lorraine Johnson, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation, announced the arrest and indictment of five Hollywood Greyhound Track tellers and a customer for conspiring to defraud the IRS and for other charges related to preparing false and fraudulent IRS forms reporting gambling proceeds. According to the indictment unsealed May 8 in Fort Lauderdale, the tellers assisted Warren G. Miller, a frequent patron at the Hallandale track, in cashing approximately 2,200 "IRS tickets" worth nearly $2.4 million from January 1993 to October 1999. The winning tickets did not belong to Miller. Gamblers whose net winnings exceed $600 and are at least 300 times the amount of the wager are required to file Form W-2G, often referred to as "IRS tickets" by pari-mutuel employees. The indictment alleges that Miller served as a "ten-percenter" in transactions for gamblers who actually had the winning tickets. The term ten-percenter refers to an individual who cashes tickets and completes the mandatory tax forms for actual winners who are trying to evade IRS reporting requirements. In exchange for this service, the individual who completes the tax forms retains a percentage of the winnings, often set as high as 10 percent. All of the defendants named in the indictment have been charged with conspiracy to defraud the IRS; other individual charges range from assisting in the preparation of false tax forms to witness tampering. Maximum penalties range from five to ten years of imprisonment, a $250,000 fine, or both. Dan Adkins, general manager of Hollywood Greyhound Track, said the track has been co-operating with the IRS by providing paperwork since 1993. "I'm glad these people are no longer here," Adkins said. Sources: Federal Document Clearing
House IOWA According to press reports, several justices seemed skeptical of the racetracks' position that it is unacceptable to levy a tax rate of up to 36 percent of gross revenues on racetrack casinos, while levying a tax rate of just 20 percent for riverboat casinos. The Iowa Legislature established the tax rates in 1994 after voters in three counties approved slot machines for the failing racetracks. Justice Ruth Bader Ginsburg
said the state had no obligation to give "as sweet a deal" to
racetracks. She said the state could have refused to allow the tracks
to have profitable slot machines, permitting them only in casinos. Mark McCormick, a Des Moines attorney representing the racetrack casinos, argued that singling out one type of gambling business for a higher tax rate violates the U.S. Constitution's Equal Protection Clause, contained in the Fourteenth Amendment. Justice Anthony Scalia said that just because the Iowa Supreme Court viewed the case as one in which state law mirrors federal law when it comes to the Equal Protection Clause, it "doesn't mean I have to look at it that way." Outcome: On June 9 the U.S. Supreme Court ruled unanimously that an Iowa state law taxing racetrack casinos at a higher rate than riverboat casinos does not violate constitutional protections. In its 9-0 decision, written by Justice Stephen Bryer, the court ruled that Iowa lawmakers acted legally when they created a two-tiered casino-tax system in 1994. "We're elated. What a decision," said Iowa Attorney General Tom Miller. Sources: The Des Moines Register:
Jane Norman, William Petroski KANSAS About 150 track patrons were ushered into the bathrooms under an escalator for safety; no one was injured. "Really, the patrons were pretty good. You always have a certain number of people that want to get to the front windows and see it, and you want to keep them away from there . . . it's just the basic problem you have anytime something like this happens," said Robert Fritz, the track's director of security. Fritz said his security captain was able to video the tornado from its formation until it ended. The videotape was given to KCTV5, which aired coverage of the event May 5. Source: KCTV5 News OREGON "The industry as a whole is rotten," said Connie Theil, founder of Oregon Defenders of Greyhounds. "You don't see what happens behind the scenes." The group contends the industry mistreats greyhounds, adds little to Oregon's tax coffers, and is regulated by a state agency whose sole purpose is to make money for track owners and dog breeders. Theil, and her son, Carey Theil, president of the Boston-based advocacy group GREY2K USA, tried to push a bill through the 2003 Legislature that would strengthen Ore-gon laws documenting the disposition of dogs when they leave to race in other states, or when their racing days are over. Jodi Hanson, the new executive director of the Oregon Racing Commission (ORC), said, "In general, when it comes to greyhound racing and regulations, we're really doing very well." More than $25 million was bet on live racing at the track in 1995. Last year, that number dropped to just under $11 million. Instant Racing, a pari-mutuel video lottery game that allows bettors to wager on replays of previously run horse races, was recently approved by the ORC for Mult-nomah, which expects to begin operating 20 of the video terminals in June. Instant Racing is currently offered only at Southland Greyhound Park and the Oaklawn Park thoroughbred track in Arkansas, whose officials helped develop the game. Oregon is the second state to approve Instant Racing. Gaming industry experts expect more greyhound and horse tracks will push for these types of games to offset declining wagering handles. Source: The Oregonian: Janie Har, Stuart Tomlinson TEXAS [Valley Greyhound Park opened in 1990 and closed in October 1995. The track remained closed until its sale to the owners of Sam Houston Race Park in January 2000. The track reopened for simulcasting two months later under its new name, Valley Race Park; live racing resumed in December 2000. - Ed.] Source: Valley Morning Star: Buddy Green WEST VIRGINIA "We expect to attract over three million customers in the first year of operation in the new facility," said Scott Cooper, president of Wheeling Island Gaming Inc., which owns and operates the racetrack. Wheeling Island Racetrack and Gaming Center was formerly known as Wheeling Downs. "We started a slow transition to the name Wheeling Island several months ago," Cooper said. "The name was changed to better reflect the additional amenities we are adding." Wheeling Downs was built in 1937 as a thoroughbred facility. The track was converted to greyhound racing in 1976. Video lottery terminals were approved for the state's two dog tracks and two horse tracks in 1995; slot machines were approved in 1999. Source: Pittsburgh Business Times WISCONSIN The new compacts have no expiration dates; the old compacts expired after five years. The new terms require approval by the U.S. Bureau of Indian Affairs, which has 45 days to review them. The bureau approved the Forest Lake Potawotami compact in early April. "These compacts are good news for the tribes and the communities near casinos," said Marc Marotta, secretary of the Wisconsin Administration Department. He called the deals "very welcome news for Wisconsin taxpayers" because of the gambling payments the state would receive. With the new agreements, "Wisconsin is receiving more tribal gaming money by far than any other state" except Connecticut, Doyle said. The new compacts are expected to net the state $210 million from all 11 Wisconsin tribes over the next two-year budget cycle. Source: The Milwaukee-Journal
Sentinet: Steve Schultze
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