LV-financed track denied license
Monday, March 1, 2004 | 11:53 a.m.
SUN STAFF AND WIRE REPORTS
ALBANY, N.Y. -- The state Racing and Wagering Board on Friday refused to renew the operating license for the Vernon Downs harness track in central New York.
Not only does the board's decision kill a 120-day racing season the track had scheduled to begin April 3, it also means the track cannot open, at least for now, a $3.6 million casino featuring slot machine-like video lottery terminals.
Track officials say the casino's electronic gaming machines could bring in $80 million a year, but under state law, the casino cannot operate unless the track has a license to race horses.
The board cited continuing financial losses by the owner of the track, Mid-State Raceway Inc., in making its unanimous decision.
Staffers at the Racing and Wagering Board said Friday they had also lost confidence in assertions made by Mid-State that the track would be financially viable and that management would make needed improvements.
The board urged the 500-plus shareholders of the publicly held Mid-State to seek new managers for the company. Mid-State is controlled by Shawn Scott of Las Vegas, who has been accused in a shareholder lawsuit and by former track personnel of misusing some loan money.
"The New York State Racing and Wagering Board's decision is ludicrous," David Wilson, vice-president of racing and acting chief executive of Vernon Downs, said in a statement. "We are not only disappointed, but also frustrated with the way this has been handled by the board."
The company recently borrowed $23 million in a deal arranged by Vestin Mortgage of Las Vegas. Only $14 million of which went to capital improvements at the track. Of the rest, $7 million covered operating losses from 2003, board officials said.
Of the $23 million loan, Vestin funded $12 million, Owens Mortgage Investment Fund provided $8 million and All Capital -- a limited liability company of which Scott is the owner -- funded $3 million.
A Vestin spokesman said Vestin remains confident that the loan will be paid. The company declined further comment on the licensing issue.
archive
- Most Read
- Discussed
- Most E-mailed
- Man, 26, dies in collision with truck traveling at 100 mph
- MGM Mirage: CityCenter not affected by debt woes
- Metro admits to improper release of criminal history data
- Locomotives win inaugural UFL championship
- Was a foiled bank heist a cry for help?
- Bargain hunters hit stores for Black Friday
- If Palin’s book is so bad, then why is it a best-seller?
- Q&A: MMA fighter and Playboy model Latasha Marzolla
- UNLV recalls last year’s close shave at Louisville
- Live game blog: Bellfield, UNLV come through late, upset No. 16 Louisville
Blogs
The Kats Report
Could a savior of shuttered Las Vegas Art Museum be ... Peter Max? (6 Comments)
For Paul Stanley and KISS, rock and roll is not over (6 Comments)
Twenty years ago today, Human Nature took root on the farm (1 Comment)
Robin Leach's Las Vegas Celebrity Watch
Photo Gallery: Donny Osmond’s triumphant return to the Flamingo
The Kats Report
'DWTS' champ Donny Osmond still deft afoot in return to Flamingo (8 Comments)
Politics: The Early Line
Meeting of GOP governors draws challengers, not Gibbons (5 Comments)
Politics: Ralston's Flash
Oscar loves forcing developers to sign labor peace agreements, Culinary loves the city's downtown plans and all is forgiven (10 Comments)
Calendar »
- 29 Sun
- 30 Mon
- 1 Tue
- 2 Wed
- 3 Thu
-
Tahoe Takeover at The Bank
The Bank | 10 p.m. to 11:59 p.m.
-
Playboy Club model search
Playboy Club | 10 p.m. to 11:59 p.m.
-
Queen of Queens at Revolution Lounge
Beatles Revolution Lounge | 10 p.m. to 11:59 p.m.
-
Zowie Bowie's Vintage Vegas Show at Monte Carlo
Lance Burton Theater
The Sun
Locally owned and independent for more than 50 years.
Technorati









