Hundreds of bettors, say the regulators, had money on deposit at the track that they used to make wagers on tracks throughout the country. But the money was not deposited in special accounts, instead it went into the track’s general fund that was used to pay track expenses and salaries.
Reportedly, Sullivan never warned the bettors that bankruptcy was contemplated for fear they would redeem the money they had on deposit.
On Friday, Sullivan announced that the track does not have the money to repay the bettors.
The statement didn’t sit well with Ted Connors, commission chairman, who remarked, "I’m kind of shocked that Joe would make that kind of statement. I personally will attest that he said that (he would repay the bettors) on more than one occasion. The other commissioners also feel strongly the same way."
Among the bettors whose money was on deposit were two Las Vegas players and the renowned handicapper Andy Beyer, who stands to lose some $20,000.