"Alternative gaming initiatives in California and Florida necessitated, and may continue to require, higher levels of investment," he said. "Our CRM effort also called for additional spending during the quarter. As we mentioned when we announced revised earnings expectations three weeks ago, the costs of these strategic initiatives, so essential to our future growth, could not be offset totally due to business levels at three of our racetracks."
Meeker added, "The uncertain nature of our alternative gaming efforts will continue into the third quarter, with the level of spending contingent upon the prospects of the California and Florida ballot initiatives. Based on the information available to us today, we estimate earnings for the third quarter to be approximately $0.33 to $0.38 per share, with the full-year estimate remaining at approximately $1.44 to $1.53 per share."