The Oneida Daily Dispatch (Oneida, NY)
RACING SEASON POSTPONED
64th season: Owner says ‘significant financial losses’ led to decision
VERNON, N.Y. >> Track fans anticipating the start of harness racing at Vernon Downs may have to wait longer than originally expected for opening day.
Jeff Gural, chairman of American Racing and Entertainment, said Thursday he will delay the opening day of racing at Vernon Downs amid significant financial losses due to the added competition from Yellow Brick Road, Lago and Rivers.
Final preparations are currently underway at Vernon Downs to open the 64th season of live harness racing, which was set for Friday, April 21. However, increased competition from the addition of these three casinos with table games has taken revenue away from the property and caused Vernon to lose, on average, nearly $150,000 per month since November, according to officials.
“It is extremely unfortunate but we have no other choice than to postpone the opening day of racing at Vernon Downs. The property loses money on racing, so opening racing now only makes a bad situation worse. We have requested tax relief from New York state and in meetings with the governor’s office it seemed they
understood the problem and were prepared to act,” Gural said.
Despite the requests, New York did not provide the racino the hoped for break, potentially putting jobs at stake, according to the track’s owner.
“Unfortunately, the legislature did not give it the priority it deserved,” Gural said. “A tax break for Vernon Downs would not cost the taxpayers any money as taxes from gaming revenue lost from Vernon are currently being generated at our four main competitors in the region. Worse yet, including the horsemen, Vernon has the highest tax rate of its competitors.
“Lowering the tax rate is a way that New York can ensure that properties like Vernon Downs that do not have table games can remain competitive and continue to be an asset within the community. Since reopening Vernon as a racino in 2006, we have given almost $150 million to the state for education. My hope is that New York state will step to the plate to save the 300 jobs of those that Vernon Downs currently employs, in addition to all the jobs and benefits related to racing,” Gural said.
Gural’s decision to postpone drew the ire of the Harness Horse Association of Central New York, who in an email from President Richard Papa issued a statement explaining that postponing the start of racing season violates contractual agreements, and as a result, if Vernon Downs does not open as previously scheduled on April 21, the track faces fines.
“We are greatly upset to read that management has decided that it will delay the April 21 scheduled open at Vernon Downs pur- suant to our contract. That plan of operation and our contract requires Vernon to be opened on April 21. The Gaming Commission has approved those dates, and unless and until they address this issue, we expect to see Vernon Downs management meet its obligations made to the state of New York and the horsemen. In past years, unilateral action by the track reducing four race days at the end of the meet was met with a penalty for not racing awarded race days,” the statement reads.
According to the statement from Harness Horse Association of Central New York, measures have been taken over the past couple few years to reduce the financial strain on Vernon Downs.
“It is significant to point out that race dates have been reduced over time in good faith negotiations from over 100, down to 90 and just last year, down six more to 84,” the release read. “We have offered to cooperate with management and explore other options and have suggested that if the available revenue is less than last year, we understand that purses may need to take a cut as management has informed us. We remain available to talk with management and advised them of our willingness to do so, but we have not heard from them. We do not however negotiate in the press, and will not engage in anything like back door negotiations by that means.”
Gary Greenburg, a minority owner of Vernon Downs, supported Gural’s decision to delay opening day of harness racing in Vernon.
“My family has been involved in Vernon Downs for over 57 years. I am disappointed to hear that New York state did not give Vernon Downs tax parity in the recently passed budget for the fiscal year 2017-2018,” he said. “Vernon Downs is a landmark in Central New York, and the potential closing would be a severe blow to Upstate New York.”
Greenburg also questioned the state’s intentions in other gaming decisions made over the past several years.
“New York has an obligation to help Vernon Downs as state decisions such as the Oneida Agreement and locating new casinos within 75 miles of Vernon have damaged Vernon Downs’ future. The state has offered hundreds of millions of dollars to attract businesses to New York and prevent closing by major corporations with major tax free incentives. I have been in touch with Gov. Cuomo’s staff to give Vernon Downs tax parity to allow the business to stay open. I still think table games at Vernon Downs would be a boom to the area and by not being allowed it questions the Sherman antitrust law,” Greenburg said.
Still, the Harness Horse Association is less than pleased with the game of chicken currently taking place.
“As the statutorily recognized horsemen’s association and recognized by management as the sole bargaining representative for all participating horsemen at Vernon Downs, we do not enjoy being put in the position of pawns in the effort to force the Legislature to reduce the tax rate,” the association said.
Vernon Downs has confirmed that the property will open racing once it becomes clear that relief from the state of New York is going to be granted.
The racino is hopeful that locally elected officials will weigh in and convince the legislature to act quickly to help save the hundreds of jobs currently at risk.