Kentucky OTB Celebrates Anniversary
Kentucky Off-Track Betting Corp., owned by four of the state's racetracks, celebrated its 10th anniversary by surpassing the $313 million mark in total handle (as of June 30). The corporation was formed in November 1992.
Churchill Downs, Ellis Park, Keeneland, and Turfway Park own Kentucky OTB, which now operates four parlors in smaller cities in the state: Corbin, Jamestown, and Pineville in southeast Kentucky, and Maysville in northern Kentucky on the Ohio border.
The facility in Corbin is located not far from Tennessee, which has no legalized gambling. The parlor has handled $110 million--almost a third of Kentucky OTB's total handle--since its inception.
NHBPA Considering Offshore Betting Hub
The National Horsemen's Benevolent and Protective Association, in an effort to thwart what it believes is a growing problem with the piracy of signals and subsequent loss of revenue, plans to discuss the possibility of operating its own offshore wagering hub.
National HBPA officials said the topic would be the focus of a strategic planning session during its executive committee meeting in late September in Las Vegas. They also called for affiliates to step up financially to create a legal defense fund.
"The future of our industry lies offshore from a horsemen's standpoint," National HBPA president John Roark said July 13 during the organization's board of directors meeting in Cleveland, Ohio. "We've saturated the market in this country, and some in this country that take signals aren't paying horsemen.
"What are we going to do about it? We're going to go after them. We need to tell them, 'You're going to be in the courthouse if you don't pay us what you owe us.' "
Two More Execs Bolt from Magna
Ed Hannah, executive vice president of corporate development and general counsel, and Peter Beresford, executive vice president of marketing and strategic planning, resigned their positions with Magna Entertainment Corp. effective August 29, 2003.
The resignations, which follow the departure of Magna Chief Financial Officer Graham Orr in early July, will mean that 30 percent of Magna Entertainment's top officers have left the company this summer.
Hannah is leaving to pursue a position with Magna International Inc., the parent company of Magna Entertainment. Orr also left to rejoin Magna International as executive vice president after serving with Magna Entertainment since 2000.
Beresford is leaving Magna to pursue "other business opportunities," according to a statement from Magna.
Churchill Downs Inc. Reaches Record Revenue
Churchill Downs Inc. reported record revenue, net earnings and earnings per share for the second quarter ended June 30.
Net revenues for the second quarter totaled $180.5 million, a 4.6 percent increase from $172.6-million in the same quarter last year. Net earnings were $28-million, a 21.2 percent increase from $23.1-million. Earnings per share were $2.09, compared with $1.73 last year.
Illinois Horsemen Sue over Software Fraud
Veterinarians, trainers and farriers who invested in Equine Data Management Software, a software package for equine professionals, were defrauded in a securities scam, according to a lawsuit filed by Illinois Attorney General Lisa Madigan.
The complaint, filed on Monday in the McHenry County Circuit Court on behalf of the office of Illinois Secretary of State Jesse White, arose from an investigation following the suicide of the company's sole proprietor and technical genius, Randall S. Travnick, on May 30.
Madigan's suit alleges Travnick obtained more than $1.5 million in investment funds based on false information and promises of as high as a 30 percent return on investment. The suit further asserts that Travnick never accurately reported how those funds would be used.
Investors were lured each time they logged onto the software by a prompt that provided them with false advertising and an address to send checks. Travnick also used referrals within the horse industry and equine veterinary community to attract investors from eight states.
BHB Slams Levy Board
U.K. racing's governing body has branded the swinging cuts imposed by the Levy Board Wednesday as "completely unnecessary".
The Levy Board's target of £50 million for prize-money allocation for this year has been reduced to £6 million over the last four months of 2003 with jump racing likely to be hit hardest. The savings will be implemented by reductions in the basic daily rates paid to racecourses, which will make up the bulk of an £8 million shortfall against budget from the 2002-03 levy yield.
Greg Nichols, chief executive of the BHB, expressed outrage over the decision.
"The precipitate actions of the Levy Board were completely unnecessary and will lead to an evaporation of industry confidence in its ability to make the right decisions," he said.
Woodbine has aggressive plans for Mohwak Raceway
Woodbine Entertainment is considering building a
400-room hotel and golf course on 400 acres of property it owns near the little town of Campbellville, Ontario, home of the company's Mohawk Raceway.
No plans have been finalized, but WEG approached the town of Milton to discuss planning issues, according to vice president of marketing and business development Nick Eaves.
"We're determined to keep evolving the business model both at Mohawk and Woodbine," he said in making the announcement. "With the facilities there at the moment, we estimate we have 20,000 people a week coming to Mohawk for racing and slots. Like everyone else, we are looking at options to get more people and give them more options."