Friday, November 22, 2002
Copyright © Las Vegas Review-Journal

COLUMN: Richard Eng

Hiring Giuliani's consulting firm makes perfect horse sense

The recent Breeders' Cup Pick Six scandal has given racing a terrible image problem.

To remedy the situation, the racing industry has turned to former New York Mayor Rudolph Giuliani.

His consulting firm, Giuliani Partners, will review the industry's electronic wagering system. Giuliani's group includes New York City former police commissioner Bernard Kerik, former fire commissioner Thomas Von Essen and former director of emergency management Richard Sheirer.

Giuliani's stock has risen to epic levels because of the strength and decisive leadership he showed in the aftermath of the Sept. 11 terrorist attacks.

Giuliani Partners has contracts or alliances with Nextel, Ernst & Young, Merrill Lynch, Purdue Pharma and Mexico City. Although financial terms were not disclosed, the deal with the racing industry will surely exceed $1 million.

Ernst & Young will audit Pick Four and Pick Six wagers beginning in January 2002. Payouts of $10,000 or more will be audited, along with random wagers.

Pari-mutuel communications and technology systems will be scrutinized. This mirrors a study that the National Thoroughbred Racing Association paid IBM to conduct two years ago, but this time more emphasis will be placed on security issues.

Three men have been charged with manipulating computerized bets worth $3 million in last month's Breeders' Cup. On Wednesday, one of the men, Chris Harn, pleaded guilty to wire fraud conspiracy and money laundering conspiracy.

Harn, a computer programmer, was fired Oct. 30 from Autotote, the company that processed the computerized bets on the Breeders' Cup and other races.

In negotiating for a more lenient sentence, Harn abandoned his co-defendants and former college buddies, Derrick Davis and Glenn DaSilva.

Harn has admitted to making doctored pari-mutuel tickets for at least a year. He said Davis and DaSilva helped cash the fakes at East Coast racetracks.

If Davis and DaSilva have any stories to tell, they had better use whatever remains of their shrinking leverage.

The extent of the conspirators' criminal acts against racing will further expose the shoddy tote security maintained by Autotote and Catskill Off-Track Betting.

It has been appalling to hear the comments from Lorne Weil, the head of Autotote's parent company, Scientific Games, and Donald Groth, the president of Catskill OTB. The truth has been sacrificed in their scandalous cover-up to protect their companies.

This is why the hiring of Giuliani Partners makes so much sense.

• HOLLYWOOD -- In related news, the California Horse Racing Board denied the request of Hollywood Park management to close betting windows at zero minutes to post rather than when the gates open.

Churchill Downs Inc. instituted the zero-minutes-to-post closure policy at all its tracks. It had no problems with the racing commissions that oversee Churchill Downs, Hoosier Park and Calder.

But the CHRB thought the policy would penalize, rather than protect, California horseplayers. The early tote closure has greatly reduced the changing of odds, something that has infuriated horseplayers around the country.

Richard Eng's horse racing column is published Friday. He can be reached at rich_eng@hotmail.com.