New York Racing Association officials say they've been told a legislative plan to advance the association $17 million has fallen through, leaving it in danger of running out of money by mid-summer. The money was to be backed by a future bond for the construction of a casino at its Aqueduct racetrack, but the move would violate legal restrictions on how the state can loan money, according to NYRA officials.

The New York Lottery plans to recommend an operator for a casino at Aqueduct by Aug. 3, the lottery said, under a new request for proposals that was issued Tuesday night.

The request for proposals restarts a process that has advanced and receded in fits and starts for nearly nine years with little result aside from generating hostilities among bidders, the racing industry, and politicians. Under the revised schedule, a casino could be up and running at Aqueduct by mid-2011, 10 years after slot machines were legalized at the track.

Youbet.com lost $527,000 in the first quarter of 2010, a $1.3 million swing from the $820,000 profit the company posted in the first quarter of last year, according to financial statements released late Thursday.

Revenue during the quarter was $26 million, a 7.1 percent drop from revenue during last year's first quarter of $28 million. In part, the decline in revenues was related to a 6.7 percent drop in wagering handle through the company's account-wagering platform, from $124 million in last year's first quarter to $115.7 million this year.

Churchill Downs Inc. lost $8.4 million on continuing operations in the first quarter of 2010, according to financial statements released late Monday, compared with a loss of $5.1 million in the first quarter of last year.

Churchill is one of the most financially stable racing companies in the United States, but the company typically operates at a loss in the first quarter because its four racing properties do not conduct live racing operations in the quarter.

Handle on races in the United States declined by 2.5 percent in April compared with the same month last year, according to figures released by Equibase on Tuesday, but the rate of the decline has begun to slow measurably as the nation works its way out of the recession.

Handle fell from $1.028 billion in April last year to $1.002 billion in April of this year, according to the figures. In March, handle fell 6.2 percent, while handle in February fell 13 percent from last year and handle in January fell 12 percent.

LEXINGTON, Ky. - Eskendereya's injury and withdrawal as favorite from Saturday's Kentucky Derby disappointed his fans, but how much did it damage his value?

The question is important, because Eskendereya is part of owner Ahmed Zayat's Chapter 11 reorganization plan. That plan projects a 100 percent sale of the horse by the end of the year. But bloodstock experts say Eskendereya's drop in value might not be very steep and could even be recouped if Eskendereya recovers and successfully returns to the races.

Disregarding the objections of shareholders of both companies, a Delaware bankruptcy judge on Monday approved a plan that will allow Magna Entertainment to transfer the vast majority of its racing assets to its parent company and largest creditor, MI Developments.

One year ago, Breeders' Cup Ltd. was facing a financial crisis that was unprecedented for the relatively stable organization. The value of its investment portfolio had declined 25 percent in the previous year, and it was forecasting a 25 percent drop in nomination revenue, one of its two principal sources of income, because of the contraction in the foal crop and reductions in stud fees.

Creditors of the bankrupt racing operator Magna Entertainment Corp. will receive the best return on their money by allowing Magna to transfer the majority of its properties to its parent company, financial advisors for the company testified at a hearing in bankruptcy court in Delaware on Thursday, according to reports.

New York City Off-Track Betting Corporation fired 35 non-union employees on Thursday and Friday, a move that will save the bankrupt company $2 million a year, the company's chairman said in a letter sent to state regulators.