STATE-BY-STATE NEWS UPDATE:
The Racing States/Second Quarter

ALABAMA
Bay Minette: Baldwin County District Attorney David Whetstone said he did not learn until June 18 that a greyhound kennel owner who had been a fugitive since 2002 had been in the Baldwin County jail system for months. Clarence Ray Petterson, 61, accused of sending racing dogs to their deaths at the Lillian farm of Robert Rhodes, had surrendered in March and was being held on $7,500 bond. Whetstone blamed the foul-up on human error.

Whetstone filed a motion July 2 asking Circuit Judge Robert Wilters to hold Patterson without bond. At a July 6 hear-ing, Patterson's court-appointed defense attorney Harry Smith said his client was not a flight risk. Wilters denied Whetstone's request and kept the bond at $7,500.

Patterson at one time owned a kennel at Pensacola Greyhound Track where Robert Rhodes worked as a security guard. Prosecutors have described Patterson as the go-between for kennel owners and trainers who sent slow dogs to Rhodes' farm in Lillian for disposal. Rhodes, who admitted killing 2,000 to 3,000 racing greyhounds over a 40-year period, died last year before he could be prosecuted for felony animal cruelty.

Whetstone said Patterson's presence significantly improves the state's case against the other three Florida defendants-John "Willie" Smith, Ursula O'Donnell and Paul Discolo Jr. Lawyers for the three filed a motion to dismiss the cruelty charges, but the judge has not yet ruled on the motion. No trial date has been set for Patterson.

[Editor's Note: The Rhodes case appeared in GNN's Summer 2002 issue, available at www.greyhoundnetworknews.org]

Sources: The Associated Press; Mobile Register: Brendan Kirby

CONNECTICUT
Plainfield: At a press conference held at Plainfield Greyhound Park June 3, developer Gene Arganese formally announced his plans to build a $400 million NASCAR-style oval racetrack near the dog track. The 140,000-seat auto-racing oval would be constructed under a 55-acre dome on 400 acres of land. State Sen. Cathy Cook, whose 18th district includes Plainfield, and Plainfield First Selectman Donald Gladding were at the press conference voicing support for the project.

Arganese and Karen Keelan, executive vice president of the Plainfield track, emphasized that the dog track, which has been in operation since July 1976, would be an integral part of the project. "I believe the racetrack and the dog track would have good synergy," Arganese said. He indicated his company, New England Raceway, would eventually assume operation of the dog track, but neither he nor Keelan would comment on when that might occur. "We didn't begin talking until three weeks ago," Keelan said.

Arganese acknowledged he has no firm commitments from NASCAR officials, but failed to mention he had been warned in writing by NASCAR not to link them to him.

Update: Arganese told the Norwich Bulletin in early August that he would file an application with the Planning and Zoning Commission by mid-month to create a commercial/entertainment zone in the area around Plainfield Greyhound Park. Although he did not disclose any details, he said his company has reached an agreement to acquire about 500 acres near the dog track and is working on acquiring an additional 300 acres.

The project will require approval from the Inland Wetlands and Watercourses Commission and the state Department of Transportation before actual construction can begin.

Sources: Hartford Courant: Shawn Courchesne, Jeff Jacobs; Norwich Bulletin: Don Bond

FLORIDA
Melbourne: Dallas-based EPO Holdings, an investment-management partnership, has purchased Melbourne Greyhound Park, which has been on the market for a decade. The deal includes the 36-acre greyhound track and 100 acres of adjacent property, which will be developed for commercial use. EPO would not disclose the purchase price until the deal is officially complete.

EPO will continue live racing at the seasonal track and has applied for a license through Florida's Division of Pari-Mutuel Wagering. The sale is "very good news," said Patrick Biddix, Melbourne's president and general manager. The track employs 120 people during the November to April live racing season.

Source: Florida Today: Wayne T. Price

IOWA
Des Moines: The U.S. Supreme Court June 7 rejected without comment Iowa Attorney General Tom Miller's request to revisit the constitutionality of the state's two-tiered casino taxation system. Land-based racetrack casinos had been taxed at a much higher rate than riverboat casinos. The federal high court first heard the case in 2003, ruling that Iowa's differential taxation system was constitutional. The case was sent back to the Iowa Supreme Court for reconsideration.

In February, the Iowa high court reaffirmed its June 2002 ruling declaring the two-tiered system unconstitutional. The ruling meant that the state owed the tracks approximately $150 million in overpaid back taxes plus interest. The tracks agreed to forgive the debt in exchange for being allowed to add table games to their slot machine operations.

In other news, the Iowa Racing and Gaming Division June 10 voted 4-1 to lift a moratorium on issuing new casino licenses that was imposed in 1998. The commission's action followed the passage of legislation earlier this year that established multimillion-dollar fees for new gaming licenses and authorized the state's greyhound tracks in Dubuque and Council Bluffs to add table games to their slot machine operations.

Voters in six counties - Palo Alto, Worth, Black Hawk, Wapello, Franklin and Webster - have passed local referenda to allow casino gambling. Black Hawk County, home of the defunct Waterloo Greyhound Park, has three plans on the table for the city of Waterloo: one for a downtown casino, a second for an Isle of Capri casino at the Lost Island Water Park, and a third that would revive dog racing and add a casino to the long-closed Waterloo track.

The commission will hold a series of public meetings in different cities throughout the state before deciding on the number of new licenses it will issue. It also set a Nov. 10 deadline for new license applications.

Sources: The Associated Press;
Waterloo-Cedar Falls Courier:
Charlotte Eby;
KCRG-TV9 Cedar Rapids

Dubuque: The Dubuque Greyhound Park and Casino recently announced a $28 million expansion project that will add 46,000 square feet of casino space to accommodate 1,000 slot machines. The Iowa Racing and Gaming Commission earlier this year had approved a $15.6 million expansion for the racetrack. "We think what this plan does is to make better use of the space we have available to us and provides for more opportunities down the road than the earlier plan," said Dubuque's general manager Bruce Wentworth.

Recent legislation lowering tax rates for the state's racetrack casinos and allowing the operation of table games such as roulette and craps "allowed the casino to dream bigger," Wentworth said. The plan also includes a $12 million, three-story 110-room Hilton Garden Inn and a national chain restaurant on a one-acre site adjacent to the racetrack casino. Wayne Biggs, who heads up a group of local investors called Dubuque Casino Hotel, LLC, said, "Our goal is to have it be the premier high-level hotel in the city of Dubuque."

The Iowa Racing and Gaming Commission unanimously approved the Dubuque expansion, including the hotel project, at its July 15 meeting.

Sources: Telegraph Herald: M.D. Kittle;
The Associated Press;
Gambling Magazine

KANSAS
Topeka: Negotiations between the governor's office and the Kickapoo and Sac and Fox tribes on a gaming compact are nearing completion. Gov. Kathleen Sebelius's chief counsel Matt All said he expects another intensive round of talks. "I think we're all confident we'll get it done." All named Labor Day, September 6, as a possible date.

The compact would allow the tribes to build a $210 million destination casino complex in Wyandotte County. The tribes have purchased 80 acres of land near the Kansas Speedway and plan to build an 80,000-square-foot casino and a 250-room hotel on the site if the compact is approved. The speedway is less than five miles from The Woodlands dual dog and horse track.

The existing tribal gaming compacts do not give the state a share of casino profits. The Kickapoo and the Sac and Fox are willing to give the state between $40 million and $60 million from the Kansas City casino.

Sources: The Kansas City Star: John Hanna,
The Associated Press

Wichita: Richard Boushka, 69, an original partner in The Woodlands dual dog and horse track in Kansas City and a former Olympic champion, was sentenced April 13 to 70 months in federal prison on two counts of bank fraud and one count of making a false statement to obtain a loan. He also received five years for one count of omission of material information in the sale of a security. Both sentences will be served concurrently, without parole, to be followed by five years of supervised release.

U.S. District Court Judge Wesley E. Brown also ordered Boushka to pay $3.3 million in restitution to shareholders of the American Bank, now Hillcrest Bank, in Wichita and $1.75 million to O'Connell Engineering and Financial, Inc. He was to be sentenced in March 2003, but his attorney filed seven motions to delay the sentencing hearing.

Boushka owned 40 percent of The Woodlands from the time it was built in the late 1980s until 1994, when it was sold to a California firm. The track was later sold at auction after seeking bankruptcy protection.

Sources: The Wichita Eagle: Dan Voorhis, Deb Gruver;
The Kansas City Star: Richard Espinoza;
The Wichita Business Journal: Lainie Mazzullo;
Kansas City Kansan

WISCONSIN
Kenosha: In late June the Menominee Tribe of Wisconsin released its initial plans for a $808 million casino and entertainment construction project at Dairyland Greyhound Park. The proposed project includes a casino with 3,100 slot machines and pari-mutuel wagering on live and simulcast greyhound racing. The gaming complex would also have a 5,000-seat theater, restaurants, bars and a 400-room luxury hotel.

The existing dog track would remain open throughout construction, with a renovated clubhouse converted into a temporary gaming facility. The first phase of construction includes the casino, theater, restaurants and a parking structure. The second phase includes construction of the hotel, conference facilities, retail shops and more restaurants.

The tribe will develop the casino project with Kenosha developer Dennis Troha and the Mohegan Tribe of Connecticut, which will serve as an investor in the project. The proposal requires the approval of Gov. Jim Doyle and the Bureau of Indian Affairs. Pending federal and state approval, the tribe expects the first phase to be in operation by June 2007.

The Menominee's casino proposal includes only games covered under the 1998 compacts. Table games, such as blackjack, poker, craps and roulette, approved in 2003 compacts by Gov. Jim Doyle, are facing legal challenges in state and federal court.

Sources: Greater Milwaukee Business Journal;
Pioneer Press;
The Associated Press