Adam Sichko, who still characterizes the NYRA management scandal as a betting scandal wrote, "The new board gives the state a majority for the first time in the 57-year history of The New York Racing Association Inc. ..." >
How, exactly, does a Board -- whose voting majority still includes members who served during times of alleged questionable decision-making -- guarantee reform? The five NYRA-selected nominees include the former Board Chairman on whose watch the "last-straw" mismanagement opportunities occurred. Shouldn't he be joining the CEO he fired on the sidelines?
I find it interesting that the board appointments were announced prior to the release of the Inspector General's report on the takeout overcharging, i.e., NYRA's self-described "unintentional oversight" that appeared more like "intentional overlooking" to higher-ups.
For discussion purposes, let's assume Team Cuomo's preferred press leak conduit, Frederick U. Dicker, was as accurate about the latter as he was the former here: "... the state Inspector General has concluded that "negligent oversight" by NYRA's top management and its Board of Directors was responsible for the massive "takeout" scandal that cost bettors nearly $8.5 million over a 15-month period ending late last year.
Acting Inspector General Catherine Leahy Scott, nearing the end of a five month investigation, concludes that former NYRA CEO Charles Hayward and General Counsel Patrick Kehoe, along with "virtually everyone else in a position of responsibility, " knew of a legal requirement to lower the amount the association took from bets being placed at the three tracks but failed to act ...
... Hayward and Kehoe were fired by NYRA in May after the state Racing and Wagering Board disclosed the takeout scandal. However, the Inspector General's report will say the state board didn't act quickly enough.
Hopefully the report will specify how soon would have been "quickly enough." What will it say about the role of the State Racing and Wagering Board, or the Franchise Oversight Board itself, whose chairman, Robert Megna, will now sit on the "NYRA Reorganization Board?" Will the hat switch from overseer to one of the overseen motivate him to contribute more positively from the racing customer's perspective?
"Cuomo followed up the report by ordering an investigation by the Inspector General, partly to determine if NYRA officials had engaged in criminal conduct or might be liable in a civil court action.
The IG report concluded that no criminal conduct occurred and that a successful Civil Court action was unlikely ..."
Such an oversight without criminal intent suggests incompetence, but under any label, the overcharge was unacceptable. A differently defined "oversight" is the intended job of the Racing and Wagering Board. NYSRWB chairman John Sabini's job was not only to know what NYRA was actually doing but what it was supposed to be doing. Unfortunately, no "intentional oversight" was in place when it counted, revealing a similarly unacceptable level of incompetence deserving a similar result.
The situation may have been summed up best in an article by Frank Angst of the Thoroughbred Times: 'In a sport losing 4% of its fans a year, remaining customers questioned why they were over-charged by NYRA and why the regulator charged with oversight took more than a year to notice the problem.
Joseph Riddell, a former part-owner of an ADW who regularly wagers on NYRA tracks, said for the over-charging to last 15 months pointed to real problems at the NYRA and the NYSRWB.
"We, as an industry, have told our fans that we don't care," [he] said. "This is another example. People who allowed this to happen should not continue to have jobs in this industry. The people that let this happen are either lazy, or incompetent, or corrupt."'
When the overcharge was finally made public, Sabini gave this explanation video interview. "We have insisted that NYRA drop the rate for the same time period of 14 months. Going forward, the two-point differential will make up to the folks who play [the ability] to make up as much as they can. And, in fact, it will make the pools more attractive going forward ..."
The DRF subsequently reported that the reduced rates would be permanent. Who at the NYSRWB actually determine(s) what rates are to be charged for each pari-mutuel pool, and how are those figures arrived at? Will the Governor's call for greater transparency apply to the NYSRWB as well as the new NYRA?
If Mr. Sabini believes lower takeout would attract more handle, why does New York's maximum takeout rate exceed Kentucky's 19%?
Sabini drew further scrutiny recently as described in a Paul Moran column: "... In requesting that the Court of Appeals hear Dutrow's case, attorney Michael Koenig said it should decide whether the appearance of bias by racing board Chairman John Sabini cost the trainer his right to a fair proceeding on drug violations. He claims that Sabini had a conflicting role as an officer of the Association of Racing Commissioners International, which advocated, not without support, revoking Dutrow's license. ...
... Sabini's tenure at the Racing Board has not been without some controversy and is prone to grandstanding. The quarantine barn imposed upon Belmont Stakes horses and excessive testing of those in the Travers Stakes are indefensible examples of a politician wanting for a grasp of the sport's realities run amuck. And the 10-year suspension of Dutrow, no doubt influenced by peer pressure and public relations considerations, may be beyond reasonable. "
Prior to the Belmont Stakes, Bob Ehalt offered this opinion: 'The SRWB, which pulled a Rip Van Winkle while New York bettors were being charged the wrong takeout rate, hopped onto a soapbox Wednesday and placed the Belmont Stakes under its protective wing by mandating a new set of pre-race regulations for all starters in the race.
... Thank heaven, racing fans. You can now go to bed safe and secure in the knowledge that the SRWB has your back -- just as it did during the 14 months when the New York Racing Association was using the wrong takeout rate.
... As much as Sabini may have wanted to come across as racing's toughest sheriff this side of the Mississippi, he better resembles Barney Fife.'
A state appointee who draws criticism from the racing media is not unusual but one who unintentionally draws laughter is a detriment. If Gov. Cuomo is serious about "New York taxpayers and the betting public [deserving] a racing industry that is managed competently ...," then replacement within the ranks of regulators appears to be necessary as well.
23 Oct 2012 at 04:44 pm | #
Absolutely brilliant. Well said and spot on. In the private sector the whole group would be fired and in a courtroom. I have sent numerous requests of horse related matters to NYSRWB and there always too busy to look at anything! Doing what I ask—bean counting?
23 Oct 2012 at 11:32 pm | #
Thank you for the kind words, Ms. Kayne.
I find your leadership in pursuing greater transparency in the use of medication for racehorses inspiring.
24 Oct 2012 at 12:08 am | #
Courtroom? There were no courtrooms re Wall Street burglers that crippled the economy, or a previous adminbistration that started an undeclared war.
24 Oct 2012 at 04:28 am | #
The firing of Charles Hayward and the creation of this new NYRA Board has NEVER been about competently managing the business of horseracing. It’s been about having a Board that acts solely on the behalf of the Governor’s casino agenda.
My only question is what happens to horseracing when the Governor is done serving his own interests? I remain pessimistic about the outcome.
Charles Hayward was selectively removed because he was the only person that was willing to stand up for horseracing. This will forever remain a black mark on the NY racing community that stood by wimpishly.
24 Oct 2012 at 12:21 pm | #
stb, #4, I noticed you also commented at the Paulick Report. Could you clarify what you meant by “Hayward’s willingness to stand up for horseracing?” What will your position be if the IG report presents even more evidence that he was aware NYRA customers were being overcharged before the audit found it “officially?”
24 Oct 2012 at 02:52 pm | #
Part 1. Indulto, #4, there is no question that Charles Hayward knew of the sunset clause for the takeout law. But, as you claim, almost everyone in the chain of command knew of it as well. So, why didn’t they implement it? Hopefully, the IG’s report will shed some light on it.
Charles Hayward claimed he asked his in-house NYRA lawyer and the NYSRWB for their counsel on how to implement the sunset clause and got no response. He claimed that a no response from the NYSWRB was a a clear signal not to implement it. Remember that the takeout benefitted the ADWs and OTBs much more than the NYRA. Hayward did not want to be seen as someone who was trying to put the NYCOTB out of business. I consider Charles Hayward’s role in this more of an error in judgment or political clumsiness than mismanagement. Historically, Charles has always wanted to lower takeouts.
24 Oct 2012 at 03:10 pm | #
Part 2. Indulto, #4, first of all, as a remote player I consider NY racing the best in the country. I also find their website and live feed presentation far superior than any other in the game. Much of what I speak of has evolved over Charle’s Hayward’s watch. I know this could only happen if the person at the top has a real understanding of the game and its customers.
But, remember that Charles Hayward had to maintain NY racing’s status while constantly being brought to the brink of financial distaster by the NY State Legislator and the Governor. Many of those times Hayward fought hard to make them live up to their promises and allow the NYRA to operate without interruption. Ultimately, it cost him his job.
It’s obvious that the Governor did not appreciate this type of resistance. There is going to be many upcoming conflicts between racing and the casinos. Who on this new NYRA Board is going to stand up for racing? I know Charles Hayward would have.
24 Oct 2012 at 03:32 pm | #
An “error in judgment?” “Political clumsiness?” You make Mr. Hayward out to be some kind of Robin Hood, and it just won’t fly. Your attempt to make him out to be some sort of champion for New York racing is pathetic. A champion would have immediately revealed the error when it became known to him, and made public the particulars of why this took place. Period.
Years of corruption, arrogances, and a failure to have any kind of vision in this modern era of simulcasting, ultimately brought down this evil regime. The question now is, will these new set of crooks do a better job than the old set of crooks; I doubt it.
TTT
TTT
24 Oct 2012 at 04:01 pm | #
TTT, #8, wrote: “Your attempt to make him out to be some sort of champion for New York racing is pathetic.”
Let me add that not only was Charles Hayward a champion of New York racing, he has been a champion of racing in total as well. His leadership at the DRF form not only brought the publication into modern times, he made them a financial sucess. It’s another reason why I, as a longtime player, appreciate his brave efforts on the behalf of our game.
If you go back into the history of the NYRA, all the business about them being corrupt coincides with the licensing process of the new racino. To me, this has been more about greedy and dirty politics concerning the racino windfall, than anything to do with the NYRA. But, I see it was easy pickings for the politicians because the NY racing community is too divided to recognize it and stand together against it.
24 Oct 2012 at 04:47 pm | #
The DRF? You mean the Daily Racing
Form, that newspaper that used to cover the news relevant to horseracing, which has now become simply a glorified wagering platform, and cannot accurately without bias report news about horseracing. I divorced myself from this periodical, which I used to call “the Bible,” when it refused to cover the H.A.N.A boycott of California racing.
Persons who have a good grasp on reality realize that for every scandal that is revealed, there are 10 others that never see the light of day. There is no doubt that this was just the tip of the iceberg, and once again, these people were allowed to slither away, avoiding any kind of prosecution. Cannot, and will not allow accolades to be given for such behavior; it makes me sick. With this kind of thinking, you probably think Jerry Sandusky was also just trying to help those poor boys.
TTT
24 Oct 2012 at 06:26 pm | #
The DRF is an excellent publication. Formulator is one of the most innovative products I have ever seen in horseracing. The world is changing and the DRF has got to change along with it.
I don’t know why the DRF did not support HANA’s boycott of California racing. HANA does have some issues with respect to its leader’ s support of offshore rebate betting. It been proven by Oaklawn Park’s simulcast director that offshore rebate betting leads to an effective increase in takeout of 1% to the remaining players. Don’t you think there is a conflict of interest there? And besides, I am not sure offshore betting is legal anyway.
It could also be said that a person with a better grasp of politics, might recognize the whole attack on the NYRA has been because of greed. That is the greed of the politicians who stand to make more money from casinos than horseracing.
24 Oct 2012 at 07:42 pm | #
Daily Racing Form supporting the H.A.N.A. Boycott? Who said anything about “supporting” the boycott. THEY REFUSED TO COVER THE STORY. As far as “Formulator” is concerned, glad it’s working for you; but “Formulator” has nothing to do with my point about the Daily Racing Form, Charles Hayward, the corrupt past of the NYRA, or the current situation. Try putting into “Formulator” how many innovative, cutting-edge, customer friendly decisions have been made by the NYRA in the past 10 years, with no qualifiers, and then stare at the big fat goose egg that comes back.
TTT
24 Oct 2012 at 08:23 pm | #
As I said earlier, the NYRA has best website for a remote player in the industry. Dirt and Turf conditions come up as early as 7:00A. The Trips and Traps videos are some of the most honest and informative assessments of trips I have ever seen in horseracing. The live feed (broadcasted on web) has the Talking Horses show every day with an intelligent analysis of the day’s card. I might add that Andy Serling is probably the best ontrack handicapper I have ever listened to. Maggie Wolfendale’s paddock analysis is outstanding. She is one of the few paddock analysts that is willing to give an honest assessment of a horse’s condition. She even gives out turf feet for the first time turfers.
There are live Twitter comments and pictures coming from the New York tracks all day. As a remote player the quality of racing and its daily presentation is the best in the game. As a remote player, it doesn’t get any better.
I notice that a lot of the player complaints about the NYRA comes from the ontrack players that go to Belmont and Aqueduct. I don’t go to either track, but I do hear a lot of complaints about the conditions of those tracks and the customer service. I am sure there is some justification.
Personally, I am mystified by all the hostility to the NYRA. But, no matter what the NY racing community thinks about the NYRA, they shouldn’t lose sight of who is really looking out for the best interests of horseracing. I honestly believe that Charles Hayward was and is one of those people and the Governor is not. Teddy, I understand fully that you disagree with this point of view.
24 Oct 2012 at 09:32 pm | #
Alas, where would debate be without talking points?
Good stuff, gents; very entertaining, thanks.
24 Oct 2012 at 10:12 pm | #
John Pricci wrote:
>Alas, where would debate be without talking >points?
>Good stuff, gents; very entertaining, thanks.
John, I am not associated with the NYRA and don’t know anyone there. I am not even from NY. I speak as I always have from what I believe.
I accused you of the same a couple of months ago, touché. My position stands in the minority as witnessed by what has been written in most racing publications, blogs, comment sections and NY newspapers. If there are any Talking Points I must be the person making them up.
25 Oct 2012 at 01:57 am | #
Tsk, tsk, Mr. Maglie. The reference was to talking points--plural.
Also wrote: “Good stuff, gents; very entertaining, thanks.”
Geez.
25 Oct 2012 at 02:20 am | #
You’re right John. It’s time for a change-up on the outside corner.
25 Oct 2012 at 03:10 am | #
STB, #6 & 7,
Not to “dicker” with someone who might be Hayward’s authorized biographer, but I was quoting Mr. Dicker’s leaking source rather than “claiming … everyone … knew …”
No response from in-house counsel and no response from the NYSRWB – a clear case of Rodney Dangerfield-itis! How can a $400K executive with a secretary to dial his phone calls be so effectively ignored?
Whether the overcharging arose out of ignorance, apathy, arrogance, incompetence, whatever … it was, in my opinion, the result of unacceptable and inexcusable performances by the individuals ultimately responsible for preventing its inception and continuance. From what I’ve been exposed to so far, that most likely includes Hayward and Sabini, very likely includes Duncker and Megna, and may include others within NYRA and related state agencies depending upon what investigations and/or testimony reveal.
I still have no idea of what you mean by “standing up for racing,” but I’d say finding and ending the overcharging, and investigating the AQU breakdowns would qualify, as would making horseracing more competitive with other forms of gambling. For all their talk about the price of their product being too high, Hayward and Duncker did nothing visible to lower takeout or stand up to the racing and wagering board and force them to defend their alleged refusal to approve lower rates. When does Braulio Baeza get his good name back in New York?
#11, could the DRF position regarding HANA having anything to do with the fact that its leader is also the source of arguably more cost-effective past performance data for regular players, and that his JCapper product is a strong competitor for formulator among the newest generation of players and perhaps the more innovative in the existing one? In my opinion, anyone who sees Charles Hayward as a better friend of the horseplayer than Jeff Platt needs a perspective adjustment.
#13, the on-line presentation is indeed high-quality and useful to those who benefit from that form of information/entertainment, but what percent of the bettors and/or handle is affected by it, and don’t at least as many players do as well or better without that input? Why don’t you hold Hayward as responsible for underpayments to remote players as you are willing to credit him for these “improvements?”
25 Oct 2012 at 04:20 am | #
Indulto, #18, I was kind of hoping all the #’s you listed were not my posts.
What I know of Charles Hayward comes from what I have read and my observations about the organizations he has run. You probably know him better than I do. I can only say I value what he did at the DRF and NYRA. He improved the DRF and made it financially viable. He took the NYRA through a minefield of financial crises and kept them running at a high level without interruption. Under his leadership the NYRA remote player product improved dramatically.
When I say he stood up for racing, I specifically think of his battles with the legislature and governor to keep the NYRA up and runnning. Everytime he did this, he put his own job in jeopardy for the sake of racing and his employees at the NYRA.
With respect to the takeout error, maybe what he did was unforgivable. I don’t know enough about it to make a final judgment. But, what I have read and observed, it looked more of a political assassination to me. The fact that the other culpable parties have been rehired, indicates this even more.
With respect to Jeff Platt, I said that in the heat of the discussion. I know little of him as well, other than some brief write-ups on him and rebate shops. I should have never brought it up.
If you think the live feed presentation from NY doesn’t help the remote player then you must travel in different circles than I do.
25 Oct 2012 at 07:31 pm | #
stb, #19,
We are both remote customers of NYRA, but apparently using a different subset of all the tools and information available to generate the diversity of opinion that drives our game. I’m not dismissing the online presentation you find useful. I’m just trying to make the point that while racing is all about different strokes for different folks, it’s supposed ro be treating all participants uniformly and fairly once their opinions have been translated into wagering decisions.
Unfortunately, non-rebated players are subjected to a playing field tilted in favor of their rebated competitors, most of whom were not impacted negatively by the overcharge. ADW players were made whole, but generally not on-track and simulcast center players. This group of players is also under fire from California regulators and horsemen representatives.
Perhaps we will eventually learn whether Hayward’s tenure resulted in saving/adding more NYRA jobs and/or customers than it lost.
26 Oct 2012 at 10:35 am | #
In your blog on Sunday July 15, 2012,
Where is Press Spotlight on NYRA Board Appointment Process?
You questioned my suggestions of who would be
picked for a new NYRA board that appeared in Capital Region Scene NYRA board suggestions
by David Lombardo of the “The Daily Gazette”
and in an article written by Paul Post of the “ Saratogian”. You implied I had some kind of agenda for my picks. I am an investor and a racing fan.
The only agenda ,I have is to see a better racing product. My suggestions were made on my knowledge
of Gov. Cuomo, the legislature and racing and gaming in the state.
In the end, my suggestions were impressive. I could
say “Fred Dicker eat your heart out”.
Gov Cuomo picked three of my suggestions, NYRA picked two and Judge Kaye is chairwoman of the Seneca arbitration committee that will resolve the Seneca Indian conflict. There are two non-voting
members,yet to be announced from the racing industry. I had no inside information from any of the leaders who made the final choices. I do not
know anyone else in the state that came up with a list of suggestions for the new NYRA board and had
the courage to attach their name to it.
Do not prejudge anyone for knowledge. I see when you commented in your latest blog on the new NYRA board, you never mentioned my success or apologized to Lombardo and Post for questioning their choice of what to write. Racing and Gaming sure needed a change in this state and give the new NYRA board a chance. The old board was powerless, good talent not being used. The new board is a good mixture of new and past members. Change is hard for some, but change is good.
Gary A. Greenberg
27 Oct 2012 at 11:11 pm | #
Mr. Greenberg,
Thank you for confirming that you were indeed the source of names in both articles. Perhaps you’ll also share why you wanted them published by more than one turf writer, and why you didn’t “attach your name” to the second one.
Your acknowledging your agenda is also appreciated. There’s certainly nothing wrong with having one, but one that isn’t transparent, or explicitly stated, invites speculation. I think we all want “to see a better racing product,” but I’d like to understand how a board with as many members as you proposed that had prominent roles in harness racing or OTBs, would be most helpful in upgrading a thoroughbred racing product?
While I regret that your “success” in identifying several members out of the forty you mentioned escaped my notice, your “accomplishment” would be more impressive if you had originally offered -– or could even now provide—what you expected each to contribute. You referred to Judge Kaye in your comment, but I can’t locate her name in the announcement.
Frankly, I don’t understand why you think I should apologize to Messrs. Lombardo and Post, although I am sorry that both had such slow news days during the Dicker domination of “new” NYRA information delivery that they determined your list—with little, if any, explanation from either you or them—was the most noteworthy item they could offer their readers. I noticed that even though Mr. Post did wave Jeff Perlee’s name in front of “old” NYRA supporters like a red cape in front of a bull, he didn’t suggest that Mr. Perlee was a viable candidate.
I agree with you that racing in New York needed a change, and I have no doubt that “new” NYRA will function more acceptably from a political standpoint. I’m hoping they will be more effective in making the game more attractive to their customers, and greater safety for the horses is a good step in that direction. If you have the time, I’m sure HRI readers would relish an explanation of how and why “The old board was powerless, good talent not being used.”