NYRA blackout is sad reflection on the industry

Fans at Mid-Atlantic tracks got a rude surprise on September 15, when Bel-mont Park’s signal disappeared from TV screens. One of the most popular simulcast options was dropped with no advance warning. And so far it hasn’t come back.

It’s like CNN deciding not to cover the presidential debates, or Fox news ignoring the war in Iraq. In other words, a major gap that nothing else can, or should, fill.

The blackout is bad enough. But even worse, the situation is turning the tracks’ short-sightedness and self-interest into a public spectacle.

In simplest terms, the signal was taken hostage in a turf war over account wagering. The New York Racing Association (NYRA), which operates Bel-mont, Aqueduct and Saratoga, signed an agreement in Septem-ber with Television Games Network (TVG), giving TVG exclusive rights to use its signal for account wagering purposes.

Race tracks within the Mid-Atlantic region are joined together in the MidAtlantic Coop-erative, an alliance designed to give them collective clout in negotiating for simul-cast rights. The cooperative balked at NYRA’s arrangement with TVG, stating that NYRA is “effectively attempting to force TVG into states where it has no presence or authority to take bets.”

TVG is licensed to operate in only one Mid-Atlantic state—Maryland. And it is no longer welcome here, as far as the tracks are concerned. One of the first things Magna Enter-tainment Corp. did after purchasing a majority interest in Maryland’s major tracks, Laurel Park and Pimlico, two years ago was to initiate a lawsuit aimed at pushing TVG out of Maryland. Magna operates a competing account wagering system, XpressBet.

The cooperative tried, and failed, to put a positive spin on the situation in a press release sent out on September 14, the day before the blackout began. “This is not an economic dispute,” wrote the cooperative’s executive director Martin Lie-ber-man. “We want all of our members to be able to offer their fans account wagering on the NYRA races in the Mid-Atlantic region. NYRA, through its deal with TVG, has acted to limit wagering opportunities. Our members are in agreement, this is unacceptable and not in the best interests of racing fans in the region.”

The deal between NYRA and TVG is not likely to come apart, because TVG paid NYRA millions of much-needed dollars as part of the agreement. NYRA reportedly has used that money to repay funds it borrowed from the horsemen’s purse account—a key element in the reforms that are being pressed upon it by federal authorities.

“TVG is not budging. It views Mid-Atlantic tracks as trying to put it out of business,” explained Alan Foreman, chief executive officer of the Thor-ough-bred Horsemen’s Associ-ation (THA). “Right now there is nothing pressuring either side to make a settlement.”

Meanwhile, it’s a lose-lose situation, with fans and horsemen bearing the fall-out.
Horsemen’s representatives are looking toward taking the matter to court, said Foreman: “This dispute goes far beyond and is unrelated to the purpose for which the Mid-Atlantic Cooperative was formed. The cooperative was formed to allow the Mid-Atlantic tracks to buy simulcast signals en bloc to prevent drastic price increases by Churchill Downs, Magna and NYRA that would adversely impact tracks and horsemen. In that context we supported the work of the cooperative. When it has gone beyond that role and has taken actions that were not in horsemen’s best interests, we have objected. The irony is that in Maryland, Magna’s decision has driven Mary-land’s horseplayers to its competitor, TVG.”

Somehow account wagering, the racing industry’s biggest hope for expanding the business, has turned into a force for destruction in the Mid-Atlantic region. It’s ironic, but true. Let’s hope both sides come to their senses. Soon.