MINUTES NEW YORK STATE RACING AND WAGERING SPECIAL BOARD MEETING OF JULY 19, 2000 A meeting of the New York State Racing and Wagering Board was held on Thursday, July 19, 2000 at 11:30 a.m. at the Racing & Wagering Board’ s Albany Office located at 1 Watervliet Avenue Extension, Albany, New York. The meeting was called to order at 11:30 a.m. In Attendance Were: Michael J. Hoblock, Jr., Chairman Joseph Neglia, Member Cheryl Buley, Member Nicole Thuillez, Secretary to the Board Robert Feuerstein, General Counsel Gregg Schreffler, Chief of Audits Joe Lynch, Chief of Racing Operations Also in Attendance Were: Dianne Landor, NYSR&WB Nicole Robilotto, NYSR&WB Stacey Walker, NYSR&WB Rick Goodell, NYSR&WB Steve Baldwin, GORR Stephen Syzdek, GORR Skip Carlson, Saratoga Equine Sports Center Charles Coppola, Coppola, Ryan & McHugh Martin Tuczinski, Capital OTB Melissa Pulver, Division of Budget Cassandra Allison, Division of Budget Dan Wray, NYC OTB OPEN COMMENT PERIOD: Skip Carlson from Saratoga Equine Sports Center spoke regarding Saratoga's request to have a Sysco night in which Sysco invites 1500-2000 of their customers to sample their foods, new products etc. To keep the customers entertained, Sysco would like to offer each customer a $500 non-betting voucher to take place on qualified races. There would be wagering based on odds and at the end of the evening customers will bid on prizes. Mr. Carlson explained that this was a good way to promote harness racing and Sysco paid all of Saratoga's employees. Saratoga also brings in profits through the sale of food and beverages. Chairman Hoblock and Robert Feuerstein explained to Mr. Carlson that according to the law this is considered pari-mutuel wagering because the guests are ultimately competing against each other for prizes which will be provided by Sysco. The Chairman also stressed that he believed this was a great way to promote harness racing; however under the law it is not possible. A format was set up last year that would be permissible under the law but Saratoga chose not to use that format. The format that was set up last year would be the way to handle this within the law. Mr. Carlson will bring this information back to Saratoga/Sysco and will get back to the Board. The event would be in October. Steve Baldwin from GORR introduced himself and stated that he and Stephen Syzdek were there just to observe and get a better understanding of the workings of our agency. Dan Wray, a lobbyist for NYC OTB and representing the Mayor's office, spoke during the discussion of the "E" item regarding NYC OTB. He discussed the decision by NYC OTB not to take certain tracks and stated that a letter will be sent the next day regarding their decision. He stated that NYC OTB would be focusing on thoroughbred tracks. A. The Board approved the minutes of the Board meeting held on June 22, 2000. B. ITEMS PREVIOUSLY APPROVED, DENIED OR DEFERRED BY THE CHAIRMAN. 1. BUFFALO RACEWAY REQUEST TO CHANGE RACING SCHEDULE For entry into the minutes, on June 22, 2000, approval was granted for the request by Buffalo to cancel the scheduled programs of Saturday, August 5th, Thursday, August 10th, and Thursday, August 17th. The Board also approved the addition of a matinee program requested for Thursday, August 24th. 2. FINGER LAKES REQUEST TO CHANGE POST TIME DURING SARATOGA MEET For entry into the minutes, on June 22, 2000, approval was granted for the request by Finger Lakes for a revised first post of 12:45 p.m. for all year 2000 Finger Lakes live racing days from July 26th through September 4th. 3. NEW YORK CITY OTB REQUEST TO OFFER PROMOTION For entry into the minutes, on June 22, 2000, approval was granted for the request by New York City OTB to celebrate its attainment of a year-to-date one billion- dollar handle during its current fiscal year. It is the understanding of the Board that the winner of the Saratoga Race Course trip, lodging, meals and spending money prize package will be present in the 991 Second Avenue branch in the borough of Manhattan when the one billion mark is achieved. The selection of the winner of this promotion will come from among all patrons in the branch, none of whom shall be restricted for eligibility on the basis of having engaged in wagering, waiting on line to engage in wagering or currently engaged in wagering. 4. NEW YORK CITY OTB REQUEST TO SIMULCAST ARLINGTON INTERNATIONAL RACECOURSE For entry into the minutes, on June 23, 2000, approval was granted for the request by New York City OTB to amend the New York City OTB simulcast plan of operation based on a new agreement with Arlington International Racecourse. This agreement between New York City Off-Track Betting Corporation, on behalf of itself and other New York State Regional Off-Track Betting Corporations - specifically, Capital, Catskill and Western, provides for the import of the simulcast signal and the ability to take wagering on races from Arlington International Racecourse, a thoroughbred track in Illinois. This simulcast may be utilized whenever in accordance with the Racing Law. This approval is valid throughout the year 2000 racing season at Arlington International Racecourse. 5. MONTICELLO RACEWAY REQUEST TO EXPORT VARIOUS OUTLETS FOR 2000 CALENDAR YEAR For entry into the minutes, on June 28, 2000, approval was granted for the request by Monticello Raceway to export the Monticello Raceway simulcast to a new entity, the Seabrook Greyhound Park and simulcast center in Seabrook, New Hampshire. The approval is valid throughout the year 2000 Monticello Raceway season. 6. NYRA REQUEST TO OFFER WAGERING ON PICK 3 ON 7/9/00 For entry into the minutes, on June 28, 2000, approval was granted for the request by NYRA to designate five out-of-state thoroughbred events during the months of July and August as "special events" as specified under Section 905-a of the Racing Law. The designated out-of-state thoroughbred special events are as follows: 7/15 DeFrancis Dash (I) Laurel Park 7/15 Ohio Derby (II) Thistledown Racetrack 8/06 Haskell Invitational H. (I) Monmouth Park 8/19 Arlington Million (I) Arlington International Racecourse Also approved by the Board is the "CDSN - Pick-3" wager on July 9th, that has as its three legs, the Bashford Manor Stakes at 5:10 p.m. from Churchill Downs, the featured overnight handicap from Calder Racecourse at 5:28 p.m., and the Hollywood Gold Cup from Hollywood Park at 5:40 p.m. NYRA will be the hub for this wager and a special 19% takeout is approved. The 19% takeout (normally 25% on in-state and 26% on out-of-state Pick-3's) is authorized by Section 1017(1)(b) and Section 907(2) & (3) of the Racing Law. 7. VERNON DOWNS REQUEST TO IMPORT SIMULCASTS FROM VARIOUS LOCATIONS IN 2000 For entry into the minutes, on June 28, 2000, approval was granted for the request by Vernon Downs for the import of the simulcast signals from Arlington International Race Course in Illinois and Delaware Park in Delaware into Vernon Downs whenever permitted under the Racing Law. 8. NASSAU OTB REQUEST TO SIMULCAST FROM POMPANO PARK For entry into the minutes, on June 28, 2000, approval was granted for the request by Nassau OTB to simulcast Pompano Park in Florida through January 31, 2001. The contract with Pompano Park extends through June 30, 2001, however the permission letter from the Florida Standardbred Breeders and Owners Association is valid through January 31, 2001. To continue with Pompano Park after January 31, 2001, a new permission letter from the representative Pompano Park horsemen's association will have to be filed with the Board. This approval also extends to Suffolk OTB. 9. BUFFALO RACEWAY REQUEST TO CHANGE POST TIMES For entry into the minutes, on June 30, 2000, approval was granted for the request by Buffalo Raceway to change the post time to 7:35 p.m. (from the previously approved matinees at 1:15 p.m.) on the Wednesdays and Thursdays of July 26th, 27th, August 2nd, 3rd, 24th, 30th & 31st, September 6th & 7th. 10. FINGER LAKES REQUEST TO ADD SUPERFECTA WAGERING For entry into the minutes, on June 30, 2000, approval was granted, on a trial basis, for the request by Finger Lakes to add a second superfecta wagering race (the fifth race) on each day’ s race card. A superfecta wager on each card’ s last race, as was approved with the year 2000 Finger Lakes Racing Association track license, also remains in effect. If the number of wagering interests available does not comply with the superfecta rules, the superfecta pari-mutuel pool must be cancelled. In addition, the second superfecta is not transferable to another race on the program. The period for the trial basis expires September 4th, 2000 (Labor Day). Within 15 days of expiration, Finger Lakes’ management should inform the Board in writing of the effects of the second superfecta on overall total handle and any other factors affected either positively or negatively by the institution of this second superfecta. The Board will make a decision regarding the continuance, on a permanent basis of the additional superfecta, upon receipt and analysis of the pertinent information. 11. NYRA REQUEST FOR VARIOUS PROMOTIONS For entry into the minutes, on June 30, 2000, approval was granted for the request by NYRA to participate in and host as the wagering hub, a designated "special event" as specified under section 905-a of the Racing Law, the America's Day Pick-3.