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SAN MATEO (Map, News) - The maker of betting machines that allegedly ripped off gamblers at Bay Meadows and other racetracks has a history of fraud and may have known about the glitch in its quick-pick system, says a local lawmaker.
State Sen. Leland Yee, D-San Francisco-San Mateo, who called for an investigation by the state auditor this week, questioned the integrity of officials at Scientific Games on Wednesday.
The game-maker has an apparent history of defrauding bettors, said Yee, pointing to a report by the Horse Race Insider that details the 2002 arrest of Chris Harn, an employee of Scientific Games subsidiary Autotote.
Harn and two former fraternity brothers pleaded guilty to fraud after conspiring to rig the “pick-six” in the Breeders’ Cup in Illinois. The trio held the six winning tickets and stood to collect more than $3 million, but never collected, as Breeders’ Cup officials were alerted to the plot a day after the races.
The current controversy over the wagering system was uncovered May 3 at Bay Meadows, when a thoroughbred owner placed 1,300 quick-pick bets for the Kentucky Derby superfecta, in which the first four finishers must match the exact order of an individual’s ticket. The No. 20 horse — race favorite and eventual winner Big Brown — was not included in any of the 5,200 possible spots on the bettor’s ticket.
Scientific Games has claimed the mistake was the result of a computer glitch. Now, both Yee and the California Horse Racing Board, which is investigating the matter, want to know how long the company may have known about the problem.
In a May 15 e-mail obtained by The Examiner, CHRB chairman Richard Shapiro appears to inform Association of Racing Commissioners International President Ed Martin that Scientific Games was willfully committing fraud.
“It is egregious that this was known to Sci Games, and not disclosed to us or other parties accepting wagers in this manner,” Shapiro wrote.
But on Wednesday, Shapiro said he didn’t mean to imply he had any evidence of fraud.
“I was not saying I had any knowledge it was known to them. That’s what the investigation will decide,” he said.
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Comments from Examiner Readers
1:41 AM MST on Fri., Apr. 25, 2008 re: "Finish line in sight for Bay Meadows"
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5:29 PM MST on Tue., Apr. 22, 2008
re: "Finish line in sight for Bay Meadows"
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12:41 PM MST on Tue., Apr. 22, 2008
re: "Finish line in sight for Bay Meadows"
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Bay Meadows Fan said:
Just take away any entertain left there is to build some more condos and office buildings. My goodness there just ain't enough condos to go around. Any vacant land around and they'll build some more condos. You should see some of the places they stuck them at here in SSF. Most of the condos and apt buildings built around here have been sitting vacant for months and months and months. There are too many condos (get it). It needs to stop! I just read yesterday that K-Mart in San Mateo may also be demolished for some more condos. Enough is Enough!!! PS- I will miss you so much Bay Meadows! Imagine tearing down such a beautiful historic place for some more condos and office buildings. I hope they don't sell!!!
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Examiner Reader said:
I don't know how this City Council can sleep at night. This was never what was promised to the citizens of San Mateo. Where is the world class town center? This just looks like the developer tranferred some old drawings from the SoMa district of San Francisco. And now we find out there isn't funding for some of the key traffic elements, like the underpasses to El Camino or the train station that were to be a key elements of the plan. And this Council passes it anyway. Unbelieveable.
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Examiner Reader said:
Here is the line i like. However, their agreement with the city gives them a 15-year window to complete the massive project, meaning they could bide their time if they're not comfortable with the economy. So lets tear down one of the last pieces of San Mateo history and have a big dust bowl instead. Once the track is torn down it will never come back. If they are not comfortable with economy what will they do just let the property sit vacant. That would be much better than Show Casing San Mateo around the world through off track betting. This will be the city councils legacy. We have a glut of homes on the market right now and so much empty office space it makes no since to add more. The only ones to benefit from this project is the Bay Meadows Land Co. They will build this massive project and leave us with the mess. Either a big empty field or a horrible traffic mess. You asked for it. Now you got.
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