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NYRA Franchise Extension Approved17 May 2002NEW YORK – As reported by Bloodhorse.com: "A deal to extend the New York Racing Association's franchise to run three tracks in the state was approved May 16 by the Senate and Assembly as part of a state budget package. NYRA must have VLTs in operation at Aqueduct by April 1, 2003. "NYRA chairman Barry Schwartz, who was involved in the negotiations over the past two days, said the push was not directed at getting the franchise extended just to keep NYRA in control of Aqueduct, Belmont Park, and Saratoga until 2012. Rather, he said NYRA's status as a non-profit entity, and with its franchise scheduled to be up for renewal after 2007, made it impossible for NYRA to get affordable loans needed to construct a facility to house the 2,500 video lottery terminals slated for Aqueduct. "…Schwartz said the whole mission of the franchise extension was directed at making the VLT program break even. Under the existing VLT law, NYRA and the other tracks said they would lose money given the revenue splits offered by the state. "…State Senate Majority Leader Joseph Bruno, a Republican whose district includes Saratoga Springs, called the NYRA franchise extension `critically important'' for both the racing group and the state, which is relying on VLT revenue to help balance future budgets. "…The agreement, negotiated in secret the past few days in Albany, has major implications for racing industry. It is considered a major gift for NYRA, which was expecting to face fierce competition for its lucrative franchise to operate the three tracks. "…The franchise issue came on the table as racetracks in New York have engaged in a furious lobbying battle to get the state to sweeten its revenue-sharing arrangement for the VLT program, which is slated to begin sometime early next year…" |