Racing Services Pays up on Back Taxes
Off-track betting company Racing Services Inc. of Fargo, North Dakota on Monday paid $1.5 million in back taxes it owed to the North Dakota Racing Commission. The group remains under investigation by federal and North Dakota authorities after company officials conceded they had underreported total bets by about $99 million from fall 2002 to April, the Associated Press reported. The state racing commission told Racing Services it had until August 15 to pay the overdue taxes, but the two sides argued last week over whether the payment had to be received by Friday or mailed by that day.
"We will continue to work cooperatively with the state to address all outstanding issues," newly appointed Racing Services President Ken Maloney told the AP. Susan Bala, former president, continues to work with the company in new business development. Racing Services is the only licensed simulcast operator in North Dakota. It also operates additional OTB sites in South Dakota, Nebraska, Iowa and Oregon.
Blake Tabbed as Head of Jockey's Group
The Jockeys Association of Great Britain named John Blake its new chief executive, effective Sept.29, when outgoing chief Michael Caulfield leaves the post. The appointment was made earlier this week. "This unique role requires me to represent the interests of the membership and work to increase their opportunities both during and after riding careers," said Blake, currently racing editor of Channel 4 Teletext. "I am very fortunate to inherit a well run and progressive organization, which has worked to establish its correct place within the decision-making bodies of our sport." Blake is a 13-year veteran of the racing industry, having worked for Racecall, Turfcall, and Ladbroke Racing. He's also been involved in contract negotiations with Premiere League soccer and other leisure businesses.
New York City OTB Honors Blackout Bets
Despite the power outage that ripped through portions of New York and other states on Thursday, New York City Off-Track Betting Corp. recovered in time for the busy Arlington Million Stakes (G1) card at Arlington Park and the Alabama Stakes (G1) card at Saratoga Race Course on Saturday and honored all bets made prior to the power outage.
Though pools could not be transferred to the host tracks on the bets made on Thursday before the outage, New York City OTB manually checked the tote reports Friday to flag winning tickets from the various tracks. The tickets were then entered into the tote system as winners so customers could cash tickets in on Saturday.
"Our feeling was that our customers made wagers in good faith, and since the races were run, we made a decision to honor all winning tickets in spite of the fact that we could not deliver them to the host tracks," said Raymond Casey, president of New York OTB. "A blackout of this magnitude had no precedent, therefore, it was not clear how to handle un-transmitted wagers. However, we knew the right thing to do was honor the winning tickets and provide the proceeds to our loyal customers."
Only 15 of the 65 New York City OTB branches throughout the city's five boroughs had electricity as of 7 p.m. EDT on Friday. The company decided to have a limited opening at 8 p.m. on Friday night to test their phone, data and tote systems in advance of Saturday's racing action.
Jockeys Fight to Delay Ban on Mobile Phones
In early August officials with the U.K. Jockey Club announced they would impose a ban on the use of mobile phones by jockeys effective Sept. 1. The announcement was spurred by testimony during the Wright trials of 2000 and 2001, a case in which cell phones were used within the changing room to undermine the integrity of racing.
A group of 98 jockeys has hired a solicitor to fight the introduction of the ban. The group's counsel, Martin Cruddace, said everything was in place to begin court proceedings. On Tuesday, after addressing the Jockeys Association AGM in York, Cruddace said he hoped such action could be averted by the prospect of further dialogue with the Jockey Club and its representatives. Jockey Club PR Director John Maxse said the request from Cruddace was under consideration. "We do believe in the dialogue remaining open and recognize the strength of feeling of the jockeys," Maxse said. "At the same time we remain confident in our own position."
A Betting Channel in Connecticut?
Connecticut's division of special revenue is considering a proposal by Autotote Enterprises Inc. to televise live horse racing over a cable-access channel throughout the state and let viewers place bets over the telephone. Although the state's legislature has a freeze on additional OTB facilities, Autotote President John Ponzio is seeking a formal ruling from Special Revenue to see if the moratorium applies to a television show that features horse racing, the Hartford Courant reports. Autotote already has the authority to conduct telephone wagering on races and asserts that a television show would be constitutionally protected commercial speech. State Attorney General Richard Blumenthal, who successfully blocked a plan to bring lottery-style gambling to home computers in Connecticut, deems Autotote's plan illegal.
Offense of "Cheating" Could Be Added to UK Gambling Bill
Officials with the U.K. Jockey Club on Friday welcomed an announcement that a new criminal offense of '"cheating" will be introduced as part of the gambling bill currently being drawn up by the Department of Culture, Media and Sport. A DCMS spokesman confirmed the addition to the massive bill aimed at overhauling numerous aspects of the gambling industry. The proposal had been put forward by the Jockey Club in its submission to the Budd Report, published in 2001, but the suggestion had not been adopted. John Maxse, the Jockey Club's spokesman, said the additional clause would redo the previous standard used for bringing charges before racing officials. "It is good news because having to rely on conspiracy to defraud left racing and other sports poorly placed to secure convictions in court," he said. "A specific offence of cheating will certainly be beneficial." The DCMS has already published the first 56 clauses of the gambling bill, with another 200 clauses anticipated. The Bill will be submitted for pre-legislative scrutiny next month but, although it could reach the Statute Book next year, 2005 is considered more likely.
TVG Revenues Soar
TVG Network reported this week that revenues for the quarter ending June 30 totaled $3.9 million, an increase of 82.7 percent over the same period one year ago. For the first six months of this year, revenues rose 91.4 percent from the same period last year to total $5.8 million. TVG, which published its results as part of the quarterly report filed by parent Gemstar-TV Guide, attributed the increases to the addition of a licensee in May 2002 and increased wagering volume due to "new distribution and market launches." Those market launches included the addition of certain DirecTV subscribers as of April 2003. TVG, which is available in about 11.1 million domestic satellite and cable homes, also reported overall increases in wagering revenues "due to a seasonally strong second quarter."
Magna inks Deal for Sunshine Millions
Magna Entertainment Corp. signed an agreement with the Thoroughbred Owners of California, the California Thoroughbred Breeders' Association, the Florida Thoroughbred Breeders' and Owners' Association and Florida Horsemen's Benevolent and Protective Association covering the running of the Sunshine Millions for the years 2004-2006. The Sunshine Millions is designed to pit the best California-bred horses against the best Florida-bred horses. The series consists of an eight-race card alternating between Santa Anita Park and Gulfstream Park, two of Magna's premier winter racing facilities.
Giuliani Group Recommends Outside Oversight for Racing
Giuliani Partners, LLC, headed by former NY City Mayor Rudy Giuliani, recommended that an independent national wagering security office should take responsibility of oversight out of the hands of companies that provide the sport of racing's betting systems. The firm was tabbed by the National Thoroughbred Racing Association Technology Working Group to study issues after the controversial Breeders' Cup Pick Six scandal in New York. The recommendations were released in a report at the annual Jockey Club Round Table Conference in Saratoga Springs, NY. The report also recommends greater security for areas housing wagering systems, tightened rules for access and authentication of system users and progressive scanning software to detect attempts to change multi-race bets. Giuliani said he believes the betting systems are sound and that no systemic pattern of fraud was found.