The recently announced relationship between the New York Racing Association (NYRA) and MGM MIRAGE Inc. (MGG) may become a reality sooner than expected now that the N.Y. lawmakers are taking a more realistic approach to the racino law.
Originally, the law passed a year and one-half ago provided the tracks installing video slot machines on their properties with about 12.5% of the revenue, a figure the tracks noted was insufficient to motivate the tracks to come up with the funding for the new enterprise. The tracks started lobbying for a 30% cut of the slots revenues.
Last week, a compromise was hashed out that will provide the tracks, purses and breeders with a total of 29% of the revenues for the first 10 years of operation. The tracks will get to hold 20.25% for the first three years with 7.5% being applied to the purse account and the breeders sharing with a 1.25% portion.
Unfortunately, the proposal, being incorporated into the state budget being prepared by state legislators, is strongly opposed by Gov. George Pataki. The governor is on record as being prepared to veto the bill if it is passed in its current form.
Supporters of the budget legislation believe they have the votes to override a gubernatorial veto.
A spokesman for the horse breeders association said the revised split in slots revenue was a result of a collaborative effort on behalf of the tracks, horsemen and breeders. Said Dennis Brida, executive director of the N.Y. Thoroughbred Breeders, "You won’t see anyone kicking on this split."
Still, NYRA’s chairman, Barry Schwartz was reluctant to jump on board immediately. He was quoted as saying that despite some of the good things in the bill there were other provisions that he would not support.
The government of Poland has approved the sale of a controlling interest in the debit and credit card services company PolCard to GTECH Holdings Corp. (GTK). The deal involved $60 million.
Betting on the 129th running of the Kentucky Derby Saturday at Churchill Downs (CHDN) set a record of $140,250,590. The total, that included both on-track and simulcast betting, was 13.8% higher than last year’s $123 million.
Zacks.com, a ratings firm for Wall Street stocks, has placed MGM MIRAGE Inc. (MGG) in its No. 5 ranked list of stocks to "sell now."
John Hensley, who has served as chairman of the California Gambling Control Commission since its inception three years ago, has retired.
Harrah’s Entertainment Inc. (HET) is facing a $100,000 fine imposed by the Missouri Gaming commission. The company’s St. Louis casino allegedly mailed promotional materials to a problem gambler after the individual was placed on a state list of problem gamblers. And, in Missouri, the company was fined $75,000 for permitting a minor to gamble at its North Kansas City Casino & Hotel.
New Mexico Gov. Bill Richardson’s personal choice to serve as his liaison with the Gaming Control Board and the state’s Indian casinos has resigned after coming under fire for failing to fully disclose his involvements on a state disclosure statement.
Bellagio Hotel/Casino on the Las Vegas Strip broke ground last week on a new $375 million Spa Tower that will add 925 rooms and suites to the popular facility.
The Hard Rock Hotel Inc. has begun a cash tender offer and consent solicitation for its $120 million 9Â¼% senior subordinated notes.