SENATE MAJORITY UNVEILS PLAN TO REINVIGORATE THOROUGHBRED RACING INDUSTRY
IN NEW YORK STATE
Creates independent corporation to provide oversight, management of 3
state-owned tracks
Senate Majority Leader Joseph L. Bruno and the State Senate Majority
today unveiled a bold new plan to reinvigorate the thoroughbred racing
industry in New York that includes creation of an independent,
state-controlled umbrella corporation to exercise oversight and guide the
management of racing and gaming operations at Saratoga, Aqueduct and
Belmont.
The plan, which establishes a public-private partnership to protect
State taxpayers, was released following four public hearings conducted by
the Senate’s Racing, Gaming and Wagering Committee to review the Governor’s
proposal on the future of racing, as well as a proposed Memorandum of
Understanding (MOU) between the administration and NYRA. Many of the
individuals who testified at the Senate hearings criticized the proposed
MOU, and raised questions about the secretive process that generated it.
“After a number of public hearings across the State, it’s clear that
there will have to be major changes to the Governor’s proposal on the
future of racing, and that a new framework should be created to improve
transparency and accountability. Our plan ensures that New York will
continue to be home to the best horse racing in the country, and that we do
everything possible to maximize revenue for education,” Senate Majority
Leader Joseph L. Bruno said.
“After conducting our hearings and reviewing each of the four bids,
it became apparent that components of each of the four bids had strengths,
which if integrated in a proper way, could be assembled to greatly enhance
the value of the State Racing Franchise. This Senate proposal facilitates
the ability of the best operators of racing and gaming in the country to
partner with each other to advance the best interests of racing, raise
money for state education, and create true tourist destinations to bolster
our State’s economy,” said Senator William Larkin (R,C-Cornwall-on-Hudson),
Chairman of the Committee on Racing, Gaming and Wagering.
"It is very important that we ensure local interests are protected,"
said Senator Betty Little (R,C,I-Queensbury). "One of my main concerns
with the Governor's proposal was its ambiguity regarding payment of local
property taxes. Our plan eliminates any uncertainty by clearly
guaranteeing all future property taxes on all three race courses."
“This is a critical point in the future of racing in New York State,
and the plan ultimately implemented needs to be as thoroughly researched
and vetted as possible,” said Senator Mary Lou Rath (R-C-I, Williamsville).
“The Senate’s proposal establishes accountability and invests back in the
state and local communities by capitalizing on the racing industry’s
ability to generate revenue.”
The independent corporation, known as the Racing, Gaming and Equine
Sports Development Corporation, will be charged with providing additional
oversight and transparency to improve the integrity of racing. Its members
will initially be made up of the existing members of the NYRA Oversight
Board, who will be transferred to the new entity to ensure a timely and
efficient transition. Under the plan, the new entity would ultimately be
comprised of representatives of both the Horse owners and Breeders, along
with up to four additional representatives of the racing, gaming and
commercial development industries, for a total of up to eleven members.
The new corporation will be authorized to contract with bidders who
have demonstrated excellence in all aspects of racing and gaming, including
VLTs, backstretch improvement, simulcasting, marketing and promotion. The
new entity will hold title to the real property, and guide the management
of capital improvements and development of the land.
The Senate plan recognizes that local governments have an interest in
a strengthened racing model, and seeks to maximize input from local
communities.
Community advisory groups will be established to amplify local
concerns, and to implement changes and improvements, including the
installation of VLTs and further development at Belmont. The plan will
preserve the unique historic character of the Saratoga racecourse and
guarantee all future property taxes for the race courses will be paid to
the local governments.
The corporation will also be authorized to explore a new operating
model between on and off-track betting operations in order to increase
efficiency and revenues that can be utilized to increase school aid. The
overall plan calls for increased purses and contributions to the Breeding
Fund to strengthen racing and promote growth in New York’s agriculture and
thoroughbred breeding industries.
The Senate plan represents an effort to jump-start the lagging
process for selecting NYRA’s successor, stalled for months following the
Spitzer administration’s move to cast aside the existing process put in
place by the Legislature and the previous administration to make this
important decision. After retreating behind closed doors, the Governor
finally made his choice public on September 4th, less than four months
before the current racing franchise expires.
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