Lawmakers approve $25-million loan to NYRA
Racing in Bangalore is facing an uncertain future following the High Court’s mandate to Bangalore Turf Club to vacate its premises on September 22 with no alternative venue in sight. The government of Karnataka had been keen on shifting the race course from its present venue but the turf club had somehow resisted the move for well over two decades. This time out, the BJP government, led by Yeddyyurappa, backed by the lease agreement signed by BTC, went all out. The turf club sought to resist the move by going to court but unfortunately the club lost the battle in High Court. The Special Leave Petition in the Supreme Court which the club will be filing shortly is the only hope to save racing in Bangalore.
Contrast this scenario with the one prevailing in New York. Racing at Belmont Park and Saratoga Race Course were under imminent threat of closure due to financial problems as a result of the recession induced lull in betting and a default by a betting franchisee. The New York State has come to the rescue of these institutions by giving a loan of $25 million dollars to keep racing going. In Karnataka, both Bangalore and Mysore turf clubs contribute in excess of Rs 60 crores to the government exchequer without getting anything in return. It is time BTC put across its views strongly while preparing its case, both with the government and in the Supreme Court by citing examples elsewhere where the governments have gone out of the way of to keep racing activity survive all crises. Racing generates economic activity and it needs to be preserved for whatever its worth, Pundit Jawaharlal Nehru had said way back in the 50’s to save racing from governmental ban post Indian independence.
Here is a story from www.thorughbredtimes.com: The New York state legislature has approved a $25-million loan to keep Belmont Park racing and the Saratoga Race Course season intact.
The money was approved on Monday in the latest in a series of extender bills designed to keep state government operating until a budget is adopted.
The move came only four days after NYRA sent notices to its 1,400 employees warning of a possible shutdown on June 9.
“We’re pleased to hear they finally recognize the importance of racing,” said Joseph Dalton, president of the Saratoga County Chamber of Commerce, which still is considering legal action against the state.
“The Board of Directors of the New York Racing Association Inc. along with its management and dedicated employees are grateful for the state legislature’s approval last evening of a $25-million loan which guarantees world class thoroughbred racing at Belmont Park, Saratoga Race Course, and Aqueduct Racetrack,” NYRA Chairman C. Steven Duncker said in a statement.
“… We await the state’s August recommendation of the firm to develop and operate the Aqueduct VLT facility so that the revenues fundamental to our 2008 franchise agreement with the state can commence and NYRA can continue its leadership role in the North American Thoroughbred industry.”
Under NYRA’s franchise agreement, the state was supposed to give the organization operating money—beginning on April 1, 2009—if an Aqueduct racino was not yet operational. Those funds, an estimated $3-million per month, now total $36-million.
New York City Off-Track Betting Corp., which the state owns, also owes NYRA another $17-million.
The state has restarted the process of choosing a gaming operator and a selection committee is scheduled to make a recommendation by August 3. NYRA, however, said it would run out of money before then, prior to the Saratoga meet that opens July 23.
“The bill is structured as a working-capital loan to NYRA and is not a grant,” a memo from Gov. David Paterson’s office said on Monday. “Enactment will provide a bridge until VLT revenues are in place to fund NYRA’s operating and capital expenses.”
NYRA would have to repay the loan by March 31, 2011, the end of the state’s fiscal year, or 30 days after a memorandum of understanding is reached in the selection of a casino operator.
Dalton said the chamber temporarily will suspend legal action against the state. Other plaintiffs are the group Concerned Citizens for Saratoga Racing and 12 of New York’s largest breeding farms.
“If they don’t name the VLT operator by August 3, we’ll continue the lawsuit because they still owe NYRA money,” Dalton said.
The gaming selection committee’s recommendation still requires final approval by Paterson, Assembly Speaker Sheldon Silver (D-Manhattan), and Senate Conference Leader John Sampson (D-Brooklyn).
The spring/summer meet at Belmont Park opened in the last week of April, 59 days of racing are scheduled, running from April 30 through July 18.
Contrast this scenario with the one prevailing in New York. Racing at Belmont Park and Saratoga Race Course were under imminent threat of closure due to financial problems as a result of the recession induced lull in betting and a default by a betting franchisee. The New York State has come to the rescue of these institutions by giving a loan of $25 million dollars to keep racing going. In Karnataka, both Bangalore and Mysore turf clubs contribute in excess of Rs 60 crores to the government exchequer without getting anything in return. It is time BTC put across its views strongly while preparing its case, both with the government and in the Supreme Court by citing examples elsewhere where the governments have gone out of the way of to keep racing activity survive all crises. Racing generates economic activity and it needs to be preserved for whatever its worth, Pundit Jawaharlal Nehru had said way back in the 50’s to save racing from governmental ban post Indian independence.
Here is a story from www.thorughbredtimes.com: The New York state legislature has approved a $25-million loan to keep Belmont Park racing and the Saratoga Race Course season intact.
The money was approved on Monday in the latest in a series of extender bills designed to keep state government operating until a budget is adopted.
The move came only four days after NYRA sent notices to its 1,400 employees warning of a possible shutdown on June 9.
“We’re pleased to hear they finally recognize the importance of racing,” said Joseph Dalton, president of the Saratoga County Chamber of Commerce, which still is considering legal action against the state.
“The Board of Directors of the New York Racing Association Inc. along with its management and dedicated employees are grateful for the state legislature’s approval last evening of a $25-million loan which guarantees world class thoroughbred racing at Belmont Park, Saratoga Race Course, and Aqueduct Racetrack,” NYRA Chairman C. Steven Duncker said in a statement.
“… We await the state’s August recommendation of the firm to develop and operate the Aqueduct VLT facility so that the revenues fundamental to our 2008 franchise agreement with the state can commence and NYRA can continue its leadership role in the North American Thoroughbred industry.”
Under NYRA’s franchise agreement, the state was supposed to give the organization operating money—beginning on April 1, 2009—if an Aqueduct racino was not yet operational. Those funds, an estimated $3-million per month, now total $36-million.
New York City Off-Track Betting Corp., which the state owns, also owes NYRA another $17-million.
The state has restarted the process of choosing a gaming operator and a selection committee is scheduled to make a recommendation by August 3. NYRA, however, said it would run out of money before then, prior to the Saratoga meet that opens July 23.
“The bill is structured as a working-capital loan to NYRA and is not a grant,” a memo from Gov. David Paterson’s office said on Monday. “Enactment will provide a bridge until VLT revenues are in place to fund NYRA’s operating and capital expenses.”
NYRA would have to repay the loan by March 31, 2011, the end of the state’s fiscal year, or 30 days after a memorandum of understanding is reached in the selection of a casino operator.
Dalton said the chamber temporarily will suspend legal action against the state. Other plaintiffs are the group Concerned Citizens for Saratoga Racing and 12 of New York’s largest breeding farms.
“If they don’t name the VLT operator by August 3, we’ll continue the lawsuit because they still owe NYRA money,” Dalton said.
The gaming selection committee’s recommendation still requires final approval by Paterson, Assembly Speaker Sheldon Silver (D-Manhattan), and Senate Conference Leader John Sampson (D-Brooklyn).
The spring/summer meet at Belmont Park opened in the last week of April, 59 days of racing are scheduled, running from April 30 through July 18.
Really...HATS OFF to U ..sir,for ur informations, keep going on sir, i wish u all the best.
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