Racing Services Pays $1.5 Million in Overdue Taxes

By Associated Press

Racing Services Inc. said on Saturday it made a state-imposed deadline to pay the North Dakota Racing Commission about $1.5 million in overdue taxes.

Racing Services, which is the state's only licensed simulcast operator, is under investigation by state and federal authorities. The company provides 10 sites for bettors to watch and wager on out-of-state horse racing.
Racing Services had until Friday to pay the taxes,

In Saturday's editions, the Fargo Forum reported executive director Paul Bowlinger said the commission didn't receive any money Friday.

"As of today, we have no payment from them," Bowlinger told the Forum on Friday.

However, Racing Services president Ken Maloney said on Saturday the payments were properly postmarked and sent to the state Friday afternoon.

"Someone is making the assumption that it should have been in their hands at a particular time and date," Maloney said.

Racing Services also owes the state about $4 million after officials said the company underreported wagers from Oct. 1, 2002, through April 30 by $98.9 million.

The company also owes about $700,000 in state general fund taxes for May and about $1.45 million in total state taxes for June.