Revelry or Refined (And Other Matters of Debate)

Odato reported in the Times Union on Monday that the one-house budgets passed in the NYS Senate and Assembly both include a provision for a portion of VLT money (2.5% of the purse fund) to be used to pay for health insurance for New York jockeys. Man, that's a fine piece of lobbying done by Brian Meara, whose firm is being paid $2,000 monthly to represent the [Jockeys Guild]. [Albany Times Union]  Meara is a familiar name in NY lobbying circles; former aide to Sheldon Silver who used to work for Patricia Lynch before establishing his own firm; and a name that turns up a bunch of results if you search him on this blog.

[Meara] said he figured the time was right to seek some help for health care costs of people in a dangerous and short-lived occupation since Gov. Andrew Cuomo was already seeking to get a cut of VLT funds to pay for horse safety programs.

I'm sure that Meara also figured that the current political climate in which the governor and his budget director has expressed their misgivings about the amount of VLT money that's directed towards the tracks; and the concern these days for the health of horses and jockeys, made it an opportune time to lobby for such a thing.  Slick move.

The problem with the safety angle in this case, as the NY horsemen have pointed out, is that owners are already paying for workers compensation which covers injuries suffered on the track.  The Guild is looking for private health insurance to cover the riders and their families away from work.  That is of course a problem which most contractors and freelancers also deal with.  Seems to me though that should purses be reduced should this provision take effect, the jockeys' portions, based on percentages of earnings, will go down proportionately.  And that they'll end up paying for their health insurance one way or another in the end.

 - Been writing about the success that the Meadowlands has been having in attracting increased nightly handle; and Standardbred Owners Association of New York president Joe Faraldo chimed in on the subject, and not in an admirable nor complimentary way.  Faraldo points out that the handle figures have been aided and abetted by a cartel which, in exchange for a pledge to wager at least $300,000 per card, gets the signal for one-third the price; 2% as compared to 6% for tracks and ADW's. 

  Simply, even if handle is tripled, since the price charged to those responsible for a large component of that handle is a third of what it "sells” to other bettors, both the track and horsemen are still in the same position economically. The addition of gross handle in this fashion produces a zero-sum effect, resulting in no additional revenue being generated to increase purses or add a race day.
.....
It gets tiresome reading the daily pats on the back of growing handle because of all the smart things going on at the Meadowlands -- yet the truth is that there will be no additional race dates and no meaningful purse increases because, the truth be known, on-track handle is flat.

This prompted a scathing response from the View From the Racetrack Grandstand blog which you can read here.  He points out that track operator Jeff Gural has discussed the matter openly, that the increase is of such a magnitude that it very likely far exceeds the cartel's wagering, and that handle feeds upon itself with larger pools attracting eager bettors hungry for liquidity.  He also wonders why Faraldo is chiming in about slots-less New Jersey when he represents horsemen in slots-rich New York. 

I do understand it must be annoying hearing about all these handle improvements at the Meadowlands; especially when Balmoral Park, the Meadowlands, and even Cal-Expo at times handle more money than Yonkers on a nightly basis. After all, what would the horsemen at Yonkers be racing for if not for slots?

Faraldo makes a fair point I think about the possibility of pool manipulation when it comes to computer-aided syndicate betting of this type.  And it's true that the lucrative on-track handle that the Big M needs to really thrive has remained flat.  (It is hoped that the new smaller grandstand under construction on what is now the backstretch will attract players with a slick sports bar type atmosphere; but I'd be skeptical.)   But I also think it's clear that his piece is fueled by his personal enmity for Gural, with whom he's clashed for many years.  His bristling at the stream of good publicity for Gural's track is quite palpable here.

 - Revelry or Refined is the choice presented by America's Best Racing for its Kentucky Derby sweepstakes.  Revelry gets you into the infield at Churchill Downs along with a t-shirt and fanny pack, a motel, and "food."  Refined gets you onto Millionaire's Row, designer clothing, a limo ride from  your hotel, and "fine dining."  The catch is that you get a $5,000 betting voucher for the infield and only $1,000 for the fancy schmancy deal.  That would be a simple choice for me.  The Head Chef would likely disagree.

Talkin 'Bout Other Stuff

- Don't really know what we're going to talk about between now and the Preakness. The race would seem to have as much suspense as tonight's West Virginia primary. My favorite Preakness news of the day is this:

Hall of Famer Bill Mott caught Riley Tucker, fitted with his new blinkers, going five furlongs in 1:04 today, though the Belmont clockers got him two seconds slower because Mott said they were watching a different horse. [Schenectady Gazette]

Maybe that was Z Humor. Can we rescind Mott's Hall of Fame spot if he keeps running unqualified horses in Triple Crown races?

Anyway, let's talk about other stuff:

A commenter on this recent post about the continuing Bruno investigation sent along a link which shows, as he or she claimed, that Pat Lynch was a lobbyist for Delaware North last year; for part of that time, the company was still associated with Empire Racing. She, along with Brian Meara, also listed as a lobbyist for the firm, are former top aides to Assembly Speaker Sheldon Silver. Ms. Lynch worked with Silver for eight years, and is described as having been a top staff member. She formed her own lobbying company in 2001 (which now employs Spitzer's former communications director Darren Dopp).

Of course, there's nothing wrong here in a legal sense, and it's certainly not the first time Ms. Lynch has lobbied her former boss (among other things I'm sure, she worked for Madison Square Garden against the Jets' stadium, which Silver single-handedly killed). She was properly registered as a lobbyist, as opposed to the cases of Richard Fields and Jared Abbruzzese, both of whom, as you may recall, were investigated for being unregistered lobbyists early in the franchise campaign. (Fields was fined, and I don't know what the hell ever happened with Abbruzzese.) It's up to you to decide if it's proper for a person to lobby a public official with whom he or she has had close ties; but it's, of course, common practice at all levels of government.

I don't know if Ms. Lynch is still lobbying for the firm. It would make sense given their bid for the Aqueduct racino (though she surely hasn't been successful if she's tried to convince Silver to allow slots at Belmont). I'm curious to know, but when I tried to access further information on the NYS Temporary Commission on Lobbying website, I found that it's a private site. ID's are available for lobbyists, public corporations, and clients only. It's their own private little world, quite typical of Albany. Why should us voters know just who is getting the ears of the public officials that we elect?

As long as I'm getting annoyed, I've mentioned here briefly, as much as my tangents from our main subject matter allow me to stray, Andrew Cuomo's investigation into alleged political meddling and dirty tricks by the NY State Police. You may recall the urgency with which Governor Paterson authorized the probe, and Cuomo's pledge to conduct a wide-ranging investigation, even calling on a former prosecutor from the Knapp Commission. Joe Bruno said that the probe will "bring more clarity to this disgraceful situation."

But what are we talking about here that has these guys so riled up? Perhaps the police might have exposed one governor's use of public money to facilitate rendezvous with prostitutes? And another governor's use of taxpayer money to pay for motel trysts with his mistress? Or a Senate Majority Leader's use of state aircraft for his own political purposes? Oh, the horror!

So where the hell is the outrage over things like this? Or this? Or this?

Or this? Do you think these cops would still have jobs with the police department if they fired 50 shots into a car with some well-connected white kid in it? How long do you think the NYC cops' stop-and-frisk program would last if Pat Lynch was searched? Just thought I'd ask.

- Temeka Lewis is expected to plead guilty for her involvement in the prostitution ring of which former Governor Eliot Spitzer was a client; and the Times reports that two of the three others arrested are close to pleas as well.

Several former prosecutors and defense lawyers said the movement toward resolving the charges against Ms. Lewis and her codefendants suggested that prosecutors were nearing a decision on whether to prosecute Mr. Spitzer. The pleas do not indicate clearly what decision the government might reach, they said.

“It’s an indication — it’s not definitive” that a decision is near on Mr. Spitzer, said Patricia A. Pileggi, a criminal defense lawyer who served for 25 years as a federal prosecutor.. [NY Times]

Big A Dispute Tinged with Lobbyists and Politics (what else is new?)

- Speaker Sheldon Silver and the Assembly Democrats stand with Governor Paterson in favor of Delaware North's selection to run the Aqueduct racino.

"We support the governor's choice," said Sisa Moyo, spokeswoman for the Assembly speaker. "We understand there are some community concerns, and we will work with the governor to encourage all parties to work together to address the concerns." [Associated Press]

It's worth recalling at this point that, as noted here in the past, Delaware North's lobbying efforts have been led by Patricia Lynch, and that Ms. Lynch is a former top staff member of Speaker Silver, for whom she worked for eight years. And that Ms. Lynch's team includes Brian Meara, also a former key aide to the Assembly Speaker.

While I did, in the last post, question the motives of the Senate Republicans in light of the Senate elections, it is a cold fact, as we saw in the Queens Chronicle article last week, that the community is extremely unhappy with Delaware North, which, as opposed to the other bidders, has made no effort whatsoever to engage and involve it in their plans. And, as a commenter noted, Democratic Assemblywoman Audrey Pheffer, is not pleased either.

"I'm disappointed. They were not my first choice, or my second choice,'' she said. She said the other bidders offered more "pizzazz''.

"We don't want just a fancy OTB parlor,'' she said. [Albany Times Union]

So, for whatever reason, the GOP is raising legitimate concerns regarding both the local issues and the lack of any vision beyond the inflated downpayment that has apparently won the day for Delaware North. However, why the Republicans didn't raise these specific and worthy objections until after the governor made his selection, I don't really know. That lends credence to the notion that they didn't have the matter on their radar screens at all until Paterson's endorsement of Addabbo in the Senate race. But whatever the motive, they're on the right side of the issue here in my opinion.

Here's Seante Majority Leader Dean Skelos' statement on the matter, and thanks to another reader for that. A spokesperson from the governor's office replied:

"It is shocking that Senator Skelos, who claims to understand the importance of this revenue stream and who has repeatedly and publicly called on the governor to award this contract, has now decided to stall a significant economic development project."

I'm wondering if this will all lead to the matter of slots at Belmont being brought back into the picture. Skelos is a strong proponent, and Silver has been the man mostly responsible for blocking it. Perhaps we'll see just how badly the Speaker wants to see his friends' client prevail.

Casino Field Day for Lobbyists

The NY Post reports today that various "gambling interests" have spent some $2.5 million over the last year on lobbying with respect to the push for a constitutional amendment legalizing casino gambling in New York State - with the lion’s share coming from firms representing the state’s nine track racinos.

Genting, the deep-pocketed Malaysian gambling and resort firm operating Resorts World, has already emerged as the lobbyist’s best friend in Albany.

It has hired four of Albany’s most powerful lobbying firms to push its interests in the state capital. They are firms headed by Patricia Lynch, who is a former top aide to Assembly Speaker Sheldon Silver, ex-Republican state Sen. Nick Spano, ex-state Senate staffer John Cordo and racing maven Brian Meara.

Genting is paying the four firms a combined $1 million. [NY Post]

This of course is to encourage Albany to pass legislation in the session which starts in January 2012. Then, they'll have to do it all over again in 2013, at which time it's possible that the Senate will have flipped to the Democrats and the dynamics will be different. And then, imagine all the cash that will be spent on campaigning in favor of the required referendum in November of 2013!

At the same time, Genting is no doubt opening its wallet to fight for casino gambling in Florida, where it spent $236 million to buy the Miami Herald building, and where it plans to invest more than $3 billion in the project.

Nice. And you mean to tell me that, whether it's obligated to or not, Genting couldn't spring for a relative pittance to help spruce up the horseplayers' facilities at Aqueduct with which it shares a building, just a little bit? Just to be a nice neighbor, and to take a little pride in its grand creation?

On Board

- As a couple of readers noted, Bennett Liebman is amongst Governor Paterson's appointees to the new NYRA's Board of Directors. Nice to see that the Governor, or at least someone on his staff, is actually paying attention. I hope that Mr. Liebman, every reporter's go-to guy when it comes to getting the real lowdown on racing in New York, can continue to run the Racing and Gaming Today page, though I suppose we'll have to do without some of his commentary. Here's the complete list of Paterson's selections:

Chester F. Broman - NY - Thoroughbred Breeders’ Representative - Director of NYTB

Michael D. Hess - Off-Track Betting Representative-Vice Chairman, Giuliani Partners

Denis M. Hughes - AFL-CIO Representative - President, NYS AFL-CIO

Richard A. Violette - NY Thoroughbred Horsemen’s Association Representative - President, NYTHA

Michael Dubb - Founder, Beechwood Organization

Bennett Liebman - Executive Director, Government Law Center–Albany Law School

Leonard Riggio - Chairman, Barnes & Noble, Inc.

Paterson was required by the franchise agreement to select representatives recommended by the two horsemen groups and the AFL-CIO, as well as "a current or former officer or director of a New York State off-track betting corporation." Thus it's due to the latter that we have Michael Hess, whose association with the repugnant former mayor of NYC is unfortunate. Regarding Riggio, the NY Sun reported over the summer that he and his wife have contributed $100,000 to Paterson's campaign fund. Just thought I'd point that out.

- I've wondered here on at least a couple of occasions why it's been difficult for us to get information on who exactly is lobbying our elected officials. Now, via the Albany Times Union's Capital Confidential blog, we have new websites from state Comptroller Thomas DiNapoli and Senator McCain's favorite Democratic Attorney General. This site is way cool; you can search for lobbyists by specific companies and by specific bills. Punch in Delaware North, and you'll see names such as Patricia Lynch and Brian Meara who we've discussed in the past. Drill down further, and you can even see that the company is paying Ms. Lynch's company some $7500 a month for its services. So nice job there; and another site will allow you see the expenditures, including salaries, of various state agencies.

- Also on Capital Confidential is this excellent summary by Irene Jay Liu of the State Senate races which will determine if the Democrats are able to gain control after 40 years of GOP domination. Polls released by Siena College yesterday show that the fate of the chamber may come down to two races - currently rated as tossups - for seats currently held by Republicans: the 61st Senate District in and around upstate Erie County between former pro boxer "Baby Joe" Mesi (D) and Mike Ranzenhofer (R); and the 15th S.D. race here in Queens between 20 year incumbent Serph Maltese and Democrat Joseph Addabbo.

The Democrats, none of whose incumbents are thought to be in danger, need to pick up a net of two seats in order to gain a clear majority. A gain of just one would leave the chamber in a tie, and raise a lot of constitutional questions given the fact that there is no lieutenant governor to break ties.

Six Lobbyists Are Better Than One

- The Lottery Division's decision to install electronic table games at the state's racinos comes in spite of the fact that the bill authorizing them, which had easily passed the Senate (ah, the good old days - dysfunctional sounds pretty good around now, don't it? at least it has the function part), was not taken up in the Assembly before it adjourned (for now). “We don’t think we need the legislation,” said New York Lottery Deputy Director Bill Murray.

"Electronic table games are considered predominantly games of chance," [Lottery spokesperson Jennifer] Givner said. That's why games such as 21, roulette and craps are among the games we're considering." Such games, she said, are "not predetermined" when it comes to winning. [Buffalo News]

Not everyone agrees.

[Senator Frank] Padavan (R) said a law is necessary for table games and said he will be writing a letter to the Lottery. Padavan was a party in a suit against the Pataki administration over casino games, which are not allowed under the state Constitution except at Indian casinos. The outcome of the case was a ruling that said VLTs are permitted “but not the other games,” Padavan said.

“They’re in violation of the decision,” he charged. [Capitol Confidential]

Whatever your take, you might wonder just how it is that, with the Senate in chaos, and amidst the interminable delays in the racino at Aqueduct, not one, but two racino-related matters have popped up in the last two days. Perhaps the explanation is evident. In this post regarding the presence of the bill approving Louis Cappelli's latest plan at the Concord on Governor Paterson's proclamation for the aborted special session, I noted the developer's expensive taste in lobbyists. I then received an email from a reader which included a complete list of the lobbyists utilized by the various Cappelli enterprises, and it wasn't limited to Patricia Lynch. It's an extensive list, which includes other prominent names such as Brian Meara and Crane, Vacco & Sanders. A quick check on the Project Sunlight site showed that the Cappelli companies had spent over $100,000 on lobbying in Jan-Feb alone. There's probably more, but, as worthy as that website is, I find it harder to navigate than the state's lobbying regulations themselves.

Now, the fact that the announcement about the electronic table games came the day after the Concord bill showed up may not be a coincidence at all. Looking back to last November, when the bill authorizing them was first introduced and endorsed by Governor Paterson, the two articles that I linked to in my post on the subject each singled out Cappelli's venture as benefiting from the move, and they both quoted the same person. Take a guess.

"We think this legislation would be good for all racinos, including the Concord," said Darren Dopp, spokesman for Patricia Lynch Associates Inc., which lobbies on Cappelli's behalf. "The bottom line is that it brings hundreds of millions of dollars to the state and doesn't cost the state a dime."

Well, there's a surprise for you. You might wonder why, if Ms. Lynch is so influential, the bill wasn't considered by the Assembly. But remember that Mr. Silver's chamber is one in which she is likely keeping an extremely low profile. Here we are with the Senate unable to even properly consider routine revenue measures considered essential by localities throughout the state, but this matter is being rammed through despite failing to pass. Amazing.

- The bill that wasn't would have expanded gaming hours in the state.

The expanded hours alone would have generated an additional $36-million statewide per year, Murray said. [Thoroughbred Times]

- A spokesperson for the State Racing and Wagering Board cited the prospect of a full-blown casino just over the Massachusetts border as an incentive for the expanded gaming.

"We just can’t ignore that," New York State Racing and Wagering Board spokesman Joseph Mahoney said. "They’ve opened an office. They’re serious about this. They’re building a consensus of support in that area." [Saratogian]

- The Senate Democrats threatened to take their great big gavel and go home, after the Republicans stayed away from Wednesday's session....pouting after they lost their latest bid in court. However, after Governor Paterson threatened to call the State Police and halt their pay, neither of which it was clear he has the power to do, there's a report this morning that both parties have actually agreed to meet in a full, and presumably, single session. Exactly who will wield the coveted gavel is not clear. Maybe Louis Cappelli?