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Vernon May Close

March 24, 2007

The 2007 opening of Vernon Downs has been tied to the repayment of more than $6 million in loans. The New York State Racing and Wagering Board has to prove, not later than April 2, that it has paid off the loans to a former track investor and a Las Vegas mortgage company.

Jeff Gural, who is seeking tax relief from the New York State Legislature, says the track is in danger of closing. Live racing at the track is scheduled to start on April 6, but the Board has approved live racing only for the month of April.

"If the law isn't changed by June 30, I would think we would probably close," Gural said. "It doesn't make sense to keep losing money."

Gural said the track and slots casino is losing $500,000 a month, and that revenues are only $575,000 per week--far less than the $1 million needed to ensure a chance at making a profit.

Gural has lobbied the state to reduce the government's share of the revenues, currently 60 percent, and said he was "optimistic" he would get the law changed. A bill has been introduced into the State Senate which would permit the tracks in the state to keep an additional 10 percent of the revenues, and also gives tracks in rural areas and those near Indian-operated casinos some additional breaks.