Pro-VLT Forces Step Up Efforts in New York

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Promoters pushing to legalize video gambling at racetracks in New York have stepped up their efforts in recent weeks to make a last-gasp push to get the controversial devices turned on at Thoroughbred and harness tracks.

The quiet but intense effort, first reported by The Buffalo News, has been spurred by a new plan to use the state Lottery Division as a possible way to allay concerns about the constitutionality of the machines. Moreover, by using the Lottery, a large portion of the revenues would be steered to education, an always politically popular route made even more desirous this year after a January court decision involving the state's funding formula for schools that has left lawmakers scrambling for additional education money.

But as crucial as those developments are, lobbyists and lawmakers say the key sign of encouragement for the recent VLT push has been a coming together of the usual warring factions within the racing industry. Though the New York Racing Association and off-track betting corporations have not formally signed onto the VLT push, they are sitting down at the table with other sectors of the industry to develop a VLT plan. Most noteable, sources say, has been more open comments in recent months about VLTs by NYRA's new chairman, Barry Schwartz.

"Various aspects of the industry are working much more cooperatively in trying to develop it as a serious proposal. That has given it renewed interest and life,'' said Assemblyman Alexander Gromack, a Democrat who is chairman of the Assembly racing committee. He added, "I'm interested in it. I think it should be something that should be positively considered.''

His committee counterpart in the state Senate, William Larkin, a Republican, said, "The tracks realize this is a golden opportunity for them. And golden opportunities don't come along all that often.''

"VLT's, in my opinion, are a viable option,'' Larkin added.

The New York racing industry has been surrounded by aggressive gambling competition in recent years. Beyond New Jersey, there are now casinos in Connecticut. In Canada's Ontario and Quebec provinces that are luring gamblers, including big slot operations at Fort Erie and Woodbine racetracks. Also, there are two Indian-owned casinos in New York. Tracks report a steady stream of quality horses leaving New York to states with VLTs where purses are better.

"There's a general consensus on the part of the racing industry that this would be a very good year to pursue the question of VLTs at the tracks,'' said Jack Hardy, a lobbyist who represents breeders, owners and trainers at NYRA's tracks.

But there will be tremendous opposition, insiders agree, from bar owners who now make millions running state-sponsored lottery games to religious organizations that operated lucrative bingo nights. And, all agree, NYRA will be key. "Without their support and endorsement, it's kind of hard to move forward,'' Hardy said.

As the VLT discussions take place, all eyes are watching whether New York City Off Track Betting Corp. is sold by Mayor Rudolph Giuliani. Final offers are now being examined by the city by the four remaining bidders; the chief competitors appear to be NYRA and Frank Stronach's Magna Entertainment. If the sale happens, and depending who wins the bidding,
lobbyists say the sky will be the limit for what other sectors of the industry in New York may seek, whether it's racetrack VLTs or the ability by OTBs to offer nighttime Thoroughbred simulcasting. Stronach's bid is made complicated by the fact that he also bought up hundreds of acres near Niagara Falls with the intent of building a new racetrack; he has told lawmakers he can't proceed there without some form of casino-like gambling to make it profitable.

The racing industry has held at least two closed-door meetings on the VLT topic in recent weeks in Albany. Another is planned for March 19 and there is talk of funding a quick study to show lawmakers how much money VLTs could bring the state.

"They've done a lot more ground work in trying to find some support across the board than in other years,'' Gromack said of the racing industry's new VLT push. "That's helpful for those who support the issue.'' He said he plans to bring the issue up with fellow Assembly Democrats soon in a closed-door conference where lawmakers weigh the political and policy implications of such a controversial next step for gambling in New York.

"We're focused on this,'' said one racing lobbyist.

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