The Saratogian: Racing Decision a Cliffhanger by Paul Post...

SARATOGA SPRINGS - State lawmakers head home four days from now and one of the biggest pieces of unfinished business is the fate of New York's racing franchise.

Reports have circulated that Gov. Eliot Spitzer might try to push through an 11th-hour deal, but the final decision requires approval of both houses of the legislature and no one knows, perhaps including Spitzer himself, exactly want the governor wants.

"Everybody is in the dark on this," said Gary Pretlow, D-Yonkers, chairman of the Assembly's Racing and Wagering Committee. "The legislature has not discussed this issue. It's only been myself and individuals on my committee. I don't know what the governor's plan is at this point."

New York Racing Association's contract to run Saratoga Race Course, Belmont Park and Aqueduct expires on Dec. 31. It's believed that Spitzer wants to leave NYRA in charge of the tracks, while giving another firm control of video gaming operations at Aqueduct.

"I seriously doubt that if we're given a proposal on Monday that we could turn it around and complete it by Friday," Pretlow said. "I just don't see that happening. It probably wouldn't be voted on until late summer or early fall."

Of greater concern to many observers is that Spitzer might be more preoccupied with gaming than racing, because of the potential video lottery terminals have for boosting state revenues. Aqueduct is slated to get 4,500 VLTs capable of generating up to $660 million per year.

"The governor has totally ignored anything to do with racing," said Pam Stokes Donehower, president of International Racing Management, a firm dedicated to promoting responsible thoroughbred horse ownership. "All the focus is on VLTs. New York has 30 percent of the country's Grade I races. The graded stakes program is what holds up the breeding program globally.
"It's being totally ignored by this governor. He doesn't understand it and neither do the people advising him."

Less than two months into office, Spitzer claimed he'd already accomplished more than former Gov. George E. Pataki had during his 12 years in office. However, the issue most critical to the future of the racing industry and Saratoga County is one he still doesn't seem ready to settle.

Spitzer recently questioned the need for live racing at Aqueduct, and has considered closing the track except for VLT purposes.

"This governor is not hearing that thoroughbred racing is a very vibrant, living industry," Donehower said. "It's unbelievable when you hear the comments coming out of his office. If the health of New York racing declines, ultimately it's all finished. It's like a deck of cards."

Catskill Regional Off-Track Betting President and CEO Donald Groth says the state should extend NYRA's contract another two years, and take the time it needs to get things right, because multiple issues need addressing.

Can or should the tracks merge with OTB?
What impact will Internet wagering have?
Will VLT revenues be sufficient enough to cure racing's problems?

The biggest question that remains unanswered is, who owns the racetrack property? NYRA, by virtue of the taxes it pays, says the tracks are theirs. State officials say the law clearly indicates the tracks will revert to the state at the conclusion of NYRA's franchise.

Last fall, Spitzer said he wouldn't let NYRA use the issue as leverage to hold on to the franchise. But as the New York Sun reported Friday, Spitzer has decided that keeping a reconstituted NYRA in place makes more sense than a long, drawn-out court battle.

"I disagree with him (Spitzer) giving in on this land claim," Pretlow said.

Firms challenging NYRA have spent at least $3 million each preparing business plans and complying with a state-mandated integrity review, and there has been nearly two years of endless hearings and debate.

One of the main reasons a decision hasn't been made is that things don't stand still long enough for leaders to digest all the information before them.

Last fall, a state ad hoc racing committee recommended Excelsior Racing Associates as the firm best suited to get the franchise. Then its team fell apart, only to regroup with casino mogul Steve Wynn at the helm. MGM Mirage, which was supposed to run Aqueduct's VLTs, has withdrawn from its management contract with NYRA, which declared bankruptcy last Nov. 2, muddying the waters even further.

That's why, when even the most informed people are asked what the outcome might be, the universally accepted answer is always the same.

"Who knows?"