Empire moves
Empire moves
Legislation clears way for VLT progress at New York racetracks
Politicians in New York finally agreed on legislation that creates an Oversight Board for the New York Racing Association, which runs Aqueduct, Belmont, and Saratoga racetracks.
NYRA has come under fire in recent years for numerous operating and business practices, and its franchise to run the three tracks expires at the end of 2007. The new legislation will also speed up the bidding process for the next franchise term by establishing by December 1 an ad hoc committee to solicit bids, rather than next summer as previously scheduled.
"Last year we proposed to create a new NYRA Oversight Board to restructure and strengthen the regulation of thoroughbred racing and wagering in New York State," said Governor George Pataki in a prepared statement. "We're proud that this legislation will include our proposal and put in place stronger oversight that will lead to a higher degree of accountability and promote public confidence in the racing and gaming industry."
The Oversight Board will be comprised of five members, each appointed by the governor, but the Senate and Assembly will each recommend one candidate. The board will oversee and monitor all of NYRA's financial practices and procedures, and develop recommendations for the governor and the legislature regarding the future of the franchise.
The legislation also ratified the $170 million contract recently finalized between NYRA and MGM Mirage to establish video lottery terminals at Aqueduct. A 4,500-unit video lottery terminal (VLT) facility at Aqueduct is scheduled to open in mid-2006. Previous attempts to open a VLT terminal at the track had met with numerous political and legal roadblocks.
"We are eager to resume work on this long-delayed project," said Terry Lanni, chairman and CEO of MGM Mirage. "We look forward to being a positive factor in the state of New York and New York City for years to come."
In addition, the bill also allows for the expansion of Off Track Betting's (OTB) ability to broadcast out-of-state thoroughbred racing, and encourages the OTB corporations to market and promote the in-state racing product by providing them a parimutuel non-refundable tax credit on races conducted in New York. Finally, the legislation eliminates the parimutuel tax on wagers placed on Belmont Park races for the Breeders' Cup this year in late October.
Meanwhile, the Friends of New York Racing, a group working on a proposal to improve the structure of racing in New York, issued its preliminary report on Monday. The report recommends that the current structure of the non-profit NYRA and the government OTB corporations be replaced with an entirely new for-profit business model. By combining the existing racetrack assets with the OTB operations into a new for-profit entity, the report concludes that governments and taxpayers will come out ahead. Another key recommendation is the establishment of VLTs at Belmont Park in addition to Aqueduct. The full preliminary report can be found at www.friendsofnyr.com.
-Patricia A. McQueen
Legislation clears way for VLT progress at New York racetracks
Politicians in New York finally agreed on legislation that creates an Oversight Board for the New York Racing Association, which runs Aqueduct, Belmont, and Saratoga racetracks.
NYRA has come under fire in recent years for numerous operating and business practices, and its franchise to run the three tracks expires at the end of 2007. The new legislation will also speed up the bidding process for the next franchise term by establishing by December 1 an ad hoc committee to solicit bids, rather than next summer as previously scheduled.
"Last year we proposed to create a new NYRA Oversight Board to restructure and strengthen the regulation of thoroughbred racing and wagering in New York State," said Governor George Pataki in a prepared statement. "We're proud that this legislation will include our proposal and put in place stronger oversight that will lead to a higher degree of accountability and promote public confidence in the racing and gaming industry."
The Oversight Board will be comprised of five members, each appointed by the governor, but the Senate and Assembly will each recommend one candidate. The board will oversee and monitor all of NYRA's financial practices and procedures, and develop recommendations for the governor and the legislature regarding the future of the franchise.
The legislation also ratified the $170 million contract recently finalized between NYRA and MGM Mirage to establish video lottery terminals at Aqueduct. A 4,500-unit video lottery terminal (VLT) facility at Aqueduct is scheduled to open in mid-2006. Previous attempts to open a VLT terminal at the track had met with numerous political and legal roadblocks.
"We are eager to resume work on this long-delayed project," said Terry Lanni, chairman and CEO of MGM Mirage. "We look forward to being a positive factor in the state of New York and New York City for years to come."
In addition, the bill also allows for the expansion of Off Track Betting's (OTB) ability to broadcast out-of-state thoroughbred racing, and encourages the OTB corporations to market and promote the in-state racing product by providing them a parimutuel non-refundable tax credit on races conducted in New York. Finally, the legislation eliminates the parimutuel tax on wagers placed on Belmont Park races for the Breeders' Cup this year in late October.
Meanwhile, the Friends of New York Racing, a group working on a proposal to improve the structure of racing in New York, issued its preliminary report on Monday. The report recommends that the current structure of the non-profit NYRA and the government OTB corporations be replaced with an entirely new for-profit business model. By combining the existing racetrack assets with the OTB operations into a new for-profit entity, the report concludes that governments and taxpayers will come out ahead. Another key recommendation is the establishment of VLTs at Belmont Park in addition to Aqueduct. The full preliminary report can be found at www.friendsofnyr.com.
-Patricia A. McQueen
