"It's crazy to have Louisiana gamblers mad at Oklahoma for taking away their Texans." – Kinky Friedman
As I noted earlier, legal gaming is coming to Texas. At first, I stated the question was not “if?”, but “when?” Now there is a new question presented and that is “how?”
There is a natural progression of how states legalize gaming: pari-mutuel betting such as dog tracks and horse tracks, state or multi-state lottery, video slot and bingo machines, and finally table games. A pattern that many states, including Texas, has followed. Given the buzz in Austin, I fully expect the 2009 Texas Legislature to legalize 8-Liners or slot machines, video poker, and video bingo at horse tracks, off-shore casino boats along the Texas Coast, and certain Native American reservations.
While the Texas legislature may approve legalized gambling, the more difficult task is how to get typically conservative Texans, especially in East and Central Texas, to vote for it. So, how?
To predict the future, we must first look to the past, the very recent past. Just this past August the Maryland Secretary of State, a former racing industry lobbyist, submitted the final ballot language for their proposed video slot machines. The ballot initiative as decreed the “Authorized Video Lottery Terminals to Fund Education.” That’s right, “to Fund Education.” As American essayist, Gore Vidal, once wrote, “As societies grow decadent, the language grows decadent, too. Words are used to disguise, not to illuminate, action: you liberate a city by destroying it. Words are to confuse, so that at election time people will solemnly vote against their own interests." Not only does the Maryland ballot language include the now ubiquitous language of taxing moral vices for benefit education, but it is also the language that law makers left out, which is important – “slot machines.”
According to an article by Tom LoBlanco of the Washington Times, the Maryland constitutional amendment contains not one mention of slot machines, only video lottery terminals. The ballot language further explains that the measure, “Authorizes the state to issue up to five video lottery licenses for the purpose of raising revenue for education of children in public schools.” As Mr. LoBlanco aptly points out, the ballot language does not inform the voters that one-half of the tax proceeds from legal gambling will go to the State’s general coffers and not to education. This, of course, is reminiscent of the ballot language, or absence thereof, used by Governor Ann Richards to pass the Texas lottery.
Critics of the Maryland gambling bill sued claiming that the ballot language was “misleading.” One month later, in September, a three-judge panel ruled that the ballot language was indeed misleading. However, the court also held that if the word “primary” was added before the word “education”, then the ballot language would most likely pass judicial muster. Most notably, however, the Maryland court did not require the inclusion of the term “slot machines.”
Writing misleading ballot language is a common practice for law makers who know that their propositions are unpopular with the voting public. There is not a better local example of using deceptive ballot language than the Trinity Parkway Project a/k/a Trinity Toll Road, where voting Yes meant No and voting No actually meant Yes.
When the Texas legislature passes legal gaming next year, and it will, and presents the initiative to Texans for a vote, don’t be surprised to find the phrase “to support education” on the ballot. Similarly, don’t be surprised when the term “slot machine” is conspicuously absent. As humorist Henry Wheeler Shaw said over a century ago, "There's a great power in words, if you don't hitch too many of them together."
Adam W. Vanek
avanek@tiptonjoneslaw.com
214-890-0991
Friday, October 10, 2008
Friday, July 25, 2008
Why do I need to hire a lawyer to incorporate? Can’t I just do that online?
“It is often said that everyone needs a good lawyer, C.P.A. and mechanic.”
One of the most common mistakes entrepreneurs make is incorporate on the cheap. Numerous television advertisements or internet banners advertise, “For just $99.99, you too can incorporate online.” Sometimes, a C.P.A. firm will offer to incorporate a business as part of their services. However, that $99.99 internet special typically costs the business owner thousands of dollars later.
First, one of the prime considerations of incorporating, forming a limited partnership or forming a limited liability company is to protect you, individually, from liability. A lawyer can identify where your business may be vulnerable and what steps should be taken moving forward to protect your assets and minimize your risk.
Second, incorporating may not be the best option for your business. Depending upon the nature of your business, your relationship with other investors, or your long-term goals, forming a limited partnership or limited liability company may be preferable. Third, a lawyer will draft bylaws, a partnership agreement, or company agreement tailor-made on how you want to manage and sell equity in the company. Fourth, a lawyer will need to draft organizational minutes electing the company’s officers and outlining the scope of their duties, which a bank typically requires.
Most importantly, a lawyer drafts company documents with an exit strategy in mind. For example, co-owners of a company often start out the best of friends and continue to be so, especially as the business thrives. All too often, however, some event occurs that causes mistrust or the co-owners decide to part ways. Depending upon the circumstances, the company’s break-up results in an expensive lawsuit. Often a lawsuit could be avoided if the business owner simply hired a lawyer in the beginning. As discussed above, a lawyer could draft the documents that would prevent any ambiguity as to the Company’s management, sharing of profits or losses, requiring additional equity contributions or its dissolution. A lawyer should also discuss the possibilities of whether the business owner’s exit strategy is to sell to another company, his or her co-owner upon retirement or pass the company to his or her children.
The ultimate question is whether the entrepreneur is serious about starting a business or will it be just a hobby. If a business owner is serious about being successful, then the initial investment of sitting down with a lawyer in the beginning will yield big returns, or avoid costly litigation, in the future.
Adam W. Vanek
avanek@tiponjoneslaw.com
214.890.0991
One of the most common mistakes entrepreneurs make is incorporate on the cheap. Numerous television advertisements or internet banners advertise, “For just $99.99, you too can incorporate online.” Sometimes, a C.P.A. firm will offer to incorporate a business as part of their services. However, that $99.99 internet special typically costs the business owner thousands of dollars later.
First, one of the prime considerations of incorporating, forming a limited partnership or forming a limited liability company is to protect you, individually, from liability. A lawyer can identify where your business may be vulnerable and what steps should be taken moving forward to protect your assets and minimize your risk.
Second, incorporating may not be the best option for your business. Depending upon the nature of your business, your relationship with other investors, or your long-term goals, forming a limited partnership or limited liability company may be preferable. Third, a lawyer will draft bylaws, a partnership agreement, or company agreement tailor-made on how you want to manage and sell equity in the company. Fourth, a lawyer will need to draft organizational minutes electing the company’s officers and outlining the scope of their duties, which a bank typically requires.
Most importantly, a lawyer drafts company documents with an exit strategy in mind. For example, co-owners of a company often start out the best of friends and continue to be so, especially as the business thrives. All too often, however, some event occurs that causes mistrust or the co-owners decide to part ways. Depending upon the circumstances, the company’s break-up results in an expensive lawsuit. Often a lawsuit could be avoided if the business owner simply hired a lawyer in the beginning. As discussed above, a lawyer could draft the documents that would prevent any ambiguity as to the Company’s management, sharing of profits or losses, requiring additional equity contributions or its dissolution. A lawyer should also discuss the possibilities of whether the business owner’s exit strategy is to sell to another company, his or her co-owner upon retirement or pass the company to his or her children.
The ultimate question is whether the entrepreneur is serious about starting a business or will it be just a hobby. If a business owner is serious about being successful, then the initial investment of sitting down with a lawyer in the beginning will yield big returns, or avoid costly litigation, in the future.
Adam W. Vanek
avanek@tiponjoneslaw.com
214.890.0991
Tuesday, June 10, 2008
Law Firm Clients Benefit From Technology
Until a few years ago, I didn't have a cell phone because my early experiences with cell phones were terrible. Spending hours every month dissecting my mobile phone bills and changing my rate plan was an exercise in anger management. I never knew whether my bill was going to be eighty dollars or three hundred dollars. I was disgusted, so I stopped using a mobile phone. My clients were disgusted. They offered to buy one for me. I declined; however, I finally relented when I thought I might lose clients. My new wireless rate plan was good. My clients were happy. Fast forward to today. Now, I not only have a cell phone, I also have a pocket PC that is connected to the office servers. I have a laptop with mobile high-speed internet connectivity. I have web-based server email, mobile and home VPN, Gmail, eFax, .pdf client files on the server, and the list goes on. All of this means that I can do legal work anywhere and at any time, and faster than ever before. Technology allows me to pack substantial amounts of work into each billed hour. Technology also allows me to work after hours and on weekends, which often does not get billed.
Score one for the clients!
Andrew Jones
(214) 979-0100
ajones@tiptonjoneslaw.com
Score one for the clients!
Andrew Jones
(214) 979-0100
ajones@tiptonjoneslaw.com
Tuesday, June 3, 2008
Simplified Probate in Texas
With simplified techniques allowed by Texas law, taking care of probate issues of a loved one’s estate can be relatively quick, easy, and inexpensive. This is true whether or not the deceased died with a will.
Generally, probate is the process of gathering assets of someone who has died, paying their debts, and distributing the assets to the heirs. If the deceased left a residence or other land including any oil and gas interests, it will almost certainly be necessary to do some kind of probate procedure to clear title to these properties. It may also be necessary to obtain a court's authority to act for the deceased and distribute assets of the estate. Almost universally, it is simpler and less expensive to take care of probate issues sooner rather than later.
A significant benefit in Texas is that often abbreviated procedures may be used, limiting probate within the court to as little as 3-6 weeks, and avoiding excessive cost and paperwork. The method which is most prudent depends on whether or not a Will was used and the size and complexity of the estate, as well as other factors. The attorneys at Tipton Jones handle these simplified methods very often, and have worked hard to devise systems to minimize the cost and time required. Because of this, we generally handle these matter on a flat fee basis (in the $2,000 range in an ordinary case), and the procedure is most often complete in around six weeks, depending on the courts’ schedules.
The Tipton Jones attorneys who practice in this area can quickly advise you on whether any probate procedure at all might be necessary and, if so, the applicable shortcuts that may be helpful.
Paul Tipton
(214)890-0991
ptipton@tiptonjoneslaw.com
Generally, probate is the process of gathering assets of someone who has died, paying their debts, and distributing the assets to the heirs. If the deceased left a residence or other land including any oil and gas interests, it will almost certainly be necessary to do some kind of probate procedure to clear title to these properties. It may also be necessary to obtain a court's authority to act for the deceased and distribute assets of the estate. Almost universally, it is simpler and less expensive to take care of probate issues sooner rather than later.
A significant benefit in Texas is that often abbreviated procedures may be used, limiting probate within the court to as little as 3-6 weeks, and avoiding excessive cost and paperwork. The method which is most prudent depends on whether or not a Will was used and the size and complexity of the estate, as well as other factors. The attorneys at Tipton Jones handle these simplified methods very often, and have worked hard to devise systems to minimize the cost and time required. Because of this, we generally handle these matter on a flat fee basis (in the $2,000 range in an ordinary case), and the procedure is most often complete in around six weeks, depending on the courts’ schedules.
The Tipton Jones attorneys who practice in this area can quickly advise you on whether any probate procedure at all might be necessary and, if so, the applicable shortcuts that may be helpful.
Paul Tipton
(214)890-0991
ptipton@tiptonjoneslaw.com
Thursday, May 8, 2008
BEYOND BRIEFS: Part Three
If you’re ready to dive into the world of writing fiction -- I mean commercial fiction; I’ve seen many a brief that might also qualify -- a basic decision you’ve got to make at the start is the genre in which you’re writing. Genre simply defines the type of book you’ve written. It’s important because knowing the genre sets the tone for the reader. Mentally, a reader approaches a thriller differently than a romance. From a publisher’s standpoint, it has an even bigger meaning: It determines on which shelf the book will go at the bookstore. It can even drive the publisher’s decision whether to acquire a new novel in the first place, and it certainly is important in helping you target which publishers to submit to.
Genres generally break down this way:
· Commercial fiction: Basically a broad catch-all for fiction that doesn’t fit neatly into other genres, but books for which there is a wide readership potential. Think Dan Brown’s The Da Vinci Code.
· Crime fiction: Stories that revolve around the crime—caper stories, for example—and are often noirish or written from the viewpoint of the criminal. Think Elmore Leonard.
· Detective fiction: Once considered a sub-genre of mystery, this features private or police detective procedurals. Think Ed McBain, James Lee Burke, Robert Crais, Robert Parker.
· Fantasy: Usually involving the same types of elements as found in old legends and folk tales, often with past or future otherworldly settings. Think Lord of the Rings. Again, I sometimes think of briefs I have read.
· Horror: A combination of fantasy and terror, usually fast-paced and often invoking the use of the supernatural. Think Stephen King, Dean Koontz.
· Literary fiction: Can fit in any or all genres, but features the written word as art. Think Joyce Carol Oates, Ayn Rand.
· Mainstream: Another catch-all, novels that don’t fit other genres but which don’t have the same wide commercial appeal as those that would fall into the commercial category. Think Alice Sebold, Wally Lamb.
· Mystery: Mystery doesn’t really have a hard and fast definition. It’s the term that used to be applied to detective stories, but now seems to have a broader definition. At its most basic, it involves the solving of a crime by uncovering clues, ultimately leading to the unknown criminal. There are cozies, which usually involve an amateur sleuth and are somewhat milder in tone, language, and action, and hard-boiled, which usually involve a private eye or police detective and which tend to be more graphic in terms of violence, sex, and language. Think Sue Grafton, Agatha Christie, Mary Higgins Clark.
· Romance: Love stories, often formulaic, that can take on a number of sub-genres: historical romance, time travel romance, romantic suspense, Victorian romance, etc. Think Nora Roberts, Johanna Lindsey.
· Science fiction: This involves fiction arising out of the use of science or technology, often set in the future. Think Michael Crichton.
· Suspense: This crosses a broad range of genres, but always involves creating and maintaining suspense. Think Alfred Hitchcock.
· Thriller: Sometimes viewed as a sub-category of mystery or a hybrid of suspense, thrillers often involve a hunt or chase, usually with the protagonist or someone close to the protagonist placed in jeopardy. They can involve espionage, international intrigue, the medical or legal fields—or just about any other. The idea is that, where the mystery creates uncertainly and suspense, the thriller creates…well, thrills. Think Thomas Harris (Silence of the Lambs), James Patterson, John Grisham.
· Western: Tales of the old west, usually post-Civil War, and extending even into the early 1900s. Think Louis L’Amour, Zane Grey, Elmer Kelton.
· Women’s Fiction: A broad catch-all for books that largely appeal to women readers, but don’t fit into the romance category. They often feature strong female characters and are often told from a female point of view. Think Danielle Steele, Nicholas Sparks.
Mike Farris
(214) 979-0100
mfarris@tiptonjoneslaw.com
Genres generally break down this way:
· Commercial fiction: Basically a broad catch-all for fiction that doesn’t fit neatly into other genres, but books for which there is a wide readership potential. Think Dan Brown’s The Da Vinci Code.
· Crime fiction: Stories that revolve around the crime—caper stories, for example—and are often noirish or written from the viewpoint of the criminal. Think Elmore Leonard.
· Detective fiction: Once considered a sub-genre of mystery, this features private or police detective procedurals. Think Ed McBain, James Lee Burke, Robert Crais, Robert Parker.
· Fantasy: Usually involving the same types of elements as found in old legends and folk tales, often with past or future otherworldly settings. Think Lord of the Rings. Again, I sometimes think of briefs I have read.
· Horror: A combination of fantasy and terror, usually fast-paced and often invoking the use of the supernatural. Think Stephen King, Dean Koontz.
· Literary fiction: Can fit in any or all genres, but features the written word as art. Think Joyce Carol Oates, Ayn Rand.
· Mainstream: Another catch-all, novels that don’t fit other genres but which don’t have the same wide commercial appeal as those that would fall into the commercial category. Think Alice Sebold, Wally Lamb.
· Mystery: Mystery doesn’t really have a hard and fast definition. It’s the term that used to be applied to detective stories, but now seems to have a broader definition. At its most basic, it involves the solving of a crime by uncovering clues, ultimately leading to the unknown criminal. There are cozies, which usually involve an amateur sleuth and are somewhat milder in tone, language, and action, and hard-boiled, which usually involve a private eye or police detective and which tend to be more graphic in terms of violence, sex, and language. Think Sue Grafton, Agatha Christie, Mary Higgins Clark.
· Romance: Love stories, often formulaic, that can take on a number of sub-genres: historical romance, time travel romance, romantic suspense, Victorian romance, etc. Think Nora Roberts, Johanna Lindsey.
· Science fiction: This involves fiction arising out of the use of science or technology, often set in the future. Think Michael Crichton.
· Suspense: This crosses a broad range of genres, but always involves creating and maintaining suspense. Think Alfred Hitchcock.
· Thriller: Sometimes viewed as a sub-category of mystery or a hybrid of suspense, thrillers often involve a hunt or chase, usually with the protagonist or someone close to the protagonist placed in jeopardy. They can involve espionage, international intrigue, the medical or legal fields—or just about any other. The idea is that, where the mystery creates uncertainly and suspense, the thriller creates…well, thrills. Think Thomas Harris (Silence of the Lambs), James Patterson, John Grisham.
· Western: Tales of the old west, usually post-Civil War, and extending even into the early 1900s. Think Louis L’Amour, Zane Grey, Elmer Kelton.
· Women’s Fiction: A broad catch-all for books that largely appeal to women readers, but don’t fit into the romance category. They often feature strong female characters and are often told from a female point of view. Think Danielle Steele, Nicholas Sparks.
Mike Farris
(214) 979-0100
mfarris@tiptonjoneslaw.com
Monday, May 5, 2008
Texas Comptroller Extends Franchise Tax Deadline to June 16th
“Taxes: Of life’s two certainties, the only one for which you can get an automatic extension.” – Author Unknown.
Texas businesses were granted a reprieve from confusion. Comptroller Susan Combs extended the deadline for Texas businesses to file franchise taxes from May 15th to June 16th. Ms. Combs cited overwhelming tax payer confusion over the new franchise tax laws as her reason for the 30 day extension. “We want to make sure businesses and tax practitioners have adequate time to make sure they’re complying with the revised franchise tax,” Ms. Combs explained. “Because they’re dealing with new calculations and enhanced technology for filing reports, the one month penalty waiver will help taxpayers accurately complete their returns…”
The Dallas Morning News reported that an estimated 900,000 businesses are subject to the state tax, but that only 300,000 are actually expected to pay due to an exemption for businesses with less than $300,000 in annual gross revenue or total tax liability of less than $1,000. The new franchise tax is expected to generate $6 billion a year for Texas coffers.
How does the new franchise tax affect your business?
Adam W. Vanek
(214) 890-0991
avanek@tiptonjoneslaw.com
Texas businesses were granted a reprieve from confusion. Comptroller Susan Combs extended the deadline for Texas businesses to file franchise taxes from May 15th to June 16th. Ms. Combs cited overwhelming tax payer confusion over the new franchise tax laws as her reason for the 30 day extension. “We want to make sure businesses and tax practitioners have adequate time to make sure they’re complying with the revised franchise tax,” Ms. Combs explained. “Because they’re dealing with new calculations and enhanced technology for filing reports, the one month penalty waiver will help taxpayers accurately complete their returns…”
The Dallas Morning News reported that an estimated 900,000 businesses are subject to the state tax, but that only 300,000 are actually expected to pay due to an exemption for businesses with less than $300,000 in annual gross revenue or total tax liability of less than $1,000. The new franchise tax is expected to generate $6 billion a year for Texas coffers.
How does the new franchise tax affect your business?
Adam W. Vanek
(214) 890-0991
avanek@tiptonjoneslaw.com
Tuesday, April 29, 2008
Legal Gaming is Coming to Texas: Part II
“We know we’re losing that business every August by the lines of cars heading to Texas. We’re losing that tax revenue and watching Oklahoma businesses suffer at the same time. It makes more sense to keep those dollars here in our own state. It’s going to help our citizens, our businesses, and eventually help those businesses grow.” – Oklahoma State Senator Johnnie Crutchfield speaking about the Texas Sales Tax Holiday.
This blog is not a social commentary regarding the morality of legal gambling, but rather its inevitability.
As I noted last week, in 2009 the Texas Legislature will reconvene. High on the Capitol’s priority list is whether or not to legalize gaming. Last week I discussed the natural progression of how states legislate legal gaming: pari-mutuel betting such as dog tracks and horse tracks, state or multi-state lottery, video slot and bingo machines, and finally table games. This week, I want to give you a 2009 preview of the 3 most common arguments in favor of legalizing gaming in Texas: taxes, jobs and economic necessity for horse and dog track industry.
Tax Revenue: As Senator Crutchfield talks about the “line of cars heading to Texas” during the once a year Texas Sales Tax Holiday, some Texas representatives are crying foul as the lines of chartered buses migrate each day from Texas to Oklahoma casinos. Former gubernatorial candidate and famed plain talker, Kinky Friedman, commented on the intense competition between Oklahoma and Louisiana, "It's crazy to have Louisiana gamblers mad at Oklahoma for taking away their Texans." Some of the more realistic figures estimate that Texas will realize nearly $6 billion in direct gaming tax revenue annually. The proponents of legal gambling will argue that this new found money will fund Texas education, health care for children and maybe even put an end to new toll roads, as a lagniappe. But tax revenue is not the only reason, the Legislature will legalize gambling.
Job Creation: The second argument gambling proponents will make is that of job creation. It is true that legal gambling will create jobs, a lot of jobs. First, construction jobs and second, the jobs directly related to the gaming itself. And then there are those jobs that benefit from legal gambling indirectly, such as the hospitality industry, hotels, restaurants and travel. Metropolitan convention and tourism bureaus all across Texas are especially interested in legalizing gambling as a competitive advantage against competing cities such as Chicago, Atlanta and Orlando. If you then include the tax revenue generated from hotel room taxes or rental car taxes, the trickle down economics is compounded.
Economic Necessity: The third argument gaming proponents will cite is the need for legal gaming to save the Texas horse track industry. Despite hosting the Breeder’s Cup in 2004, the operator of Lone Star Park at Grand Prairie is now in dire financial straits. 2008 saw the smallest opening day attendance since the Lone Star Park was first opened in 1997. Magna Entertainment Corp., the operator of Lone Star Park announced that it is considering liquidating it’s assets to fend off creditors. While Magna does not own Lone Star Park, the City of Grand Prairie actually owns the track and leases it back to Magna, it does own significant acreage surrounding the horse track. According to the Dallas Business Journal, Magna Entertainment reported a $113.8 million net loss in 2007, bringing its total debt to $510 million. However, Magna has made it clear that it is hoping that Texas will legalize video slot machines and soon. As reported in the Austin American-Statesman, Reggie Bashur, spokesperson for the horse track industry, describes the need for legal gaming as a necessity for horse racing’s economic viability. "It's not gaming for the sake of gaming. It's gaming for the survival of the horse community as well as the track industry." The horse track industry has captured the attention of the Texas Legislature. In 2007, State Representative Jose Menendez, (D) San Antonio, filed a bill that would allow poker tables at specifically racetracks.
Eventually, the Texas Legislature will declare it is time for Texas to get off the bench and get into the game. And of course, the House will want its cut.
Adam W. Vanek
(214) 890-0991
avanek@tiptonjoneslaw.com
This blog is not a social commentary regarding the morality of legal gambling, but rather its inevitability.
As I noted last week, in 2009 the Texas Legislature will reconvene. High on the Capitol’s priority list is whether or not to legalize gaming. Last week I discussed the natural progression of how states legislate legal gaming: pari-mutuel betting such as dog tracks and horse tracks, state or multi-state lottery, video slot and bingo machines, and finally table games. This week, I want to give you a 2009 preview of the 3 most common arguments in favor of legalizing gaming in Texas: taxes, jobs and economic necessity for horse and dog track industry.
Tax Revenue: As Senator Crutchfield talks about the “line of cars heading to Texas” during the once a year Texas Sales Tax Holiday, some Texas representatives are crying foul as the lines of chartered buses migrate each day from Texas to Oklahoma casinos. Former gubernatorial candidate and famed plain talker, Kinky Friedman, commented on the intense competition between Oklahoma and Louisiana, "It's crazy to have Louisiana gamblers mad at Oklahoma for taking away their Texans." Some of the more realistic figures estimate that Texas will realize nearly $6 billion in direct gaming tax revenue annually. The proponents of legal gambling will argue that this new found money will fund Texas education, health care for children and maybe even put an end to new toll roads, as a lagniappe. But tax revenue is not the only reason, the Legislature will legalize gambling.
Job Creation: The second argument gambling proponents will make is that of job creation. It is true that legal gambling will create jobs, a lot of jobs. First, construction jobs and second, the jobs directly related to the gaming itself. And then there are those jobs that benefit from legal gambling indirectly, such as the hospitality industry, hotels, restaurants and travel. Metropolitan convention and tourism bureaus all across Texas are especially interested in legalizing gambling as a competitive advantage against competing cities such as Chicago, Atlanta and Orlando. If you then include the tax revenue generated from hotel room taxes or rental car taxes, the trickle down economics is compounded.
Economic Necessity: The third argument gaming proponents will cite is the need for legal gaming to save the Texas horse track industry. Despite hosting the Breeder’s Cup in 2004, the operator of Lone Star Park at Grand Prairie is now in dire financial straits. 2008 saw the smallest opening day attendance since the Lone Star Park was first opened in 1997. Magna Entertainment Corp., the operator of Lone Star Park announced that it is considering liquidating it’s assets to fend off creditors. While Magna does not own Lone Star Park, the City of Grand Prairie actually owns the track and leases it back to Magna, it does own significant acreage surrounding the horse track. According to the Dallas Business Journal, Magna Entertainment reported a $113.8 million net loss in 2007, bringing its total debt to $510 million. However, Magna has made it clear that it is hoping that Texas will legalize video slot machines and soon. As reported in the Austin American-Statesman, Reggie Bashur, spokesperson for the horse track industry, describes the need for legal gaming as a necessity for horse racing’s economic viability. "It's not gaming for the sake of gaming. It's gaming for the survival of the horse community as well as the track industry." The horse track industry has captured the attention of the Texas Legislature. In 2007, State Representative Jose Menendez, (D) San Antonio, filed a bill that would allow poker tables at specifically racetracks.
Eventually, the Texas Legislature will declare it is time for Texas to get off the bench and get into the game. And of course, the House will want its cut.
Adam W. Vanek
(214) 890-0991
avanek@tiptonjoneslaw.com
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