IBM Corp. and the NTRA "are considering a joint
technology venture that would be backed" by a $100-200M loan
from IBM and "could include the acquisition of a major
totalizator company," according to Glenye Cain of the DAILY
RACING FORM. The proposal, which was presented by NTRA
officials and IBM Global Services GM Mark Elliott at an NTRA
members' meeting Monday in Dallas, would "establish a for-
profit NTRA subsidiary to provide 'one-stop' technology
services through a private, Internet-based network to both
member and nonmember racetracks." According to an NTRA memo
released at the meeting, IBM would loan the NTRA between
$100-200M "or higher, depending on the scope of service that
the members want the venture to provide and that the
marketplace will support." Cain writes that terms of the
loan "have yet to be announced," but the NTRA said IBM
expects "a reasonable interest rate on the funds loaned to
the venture for formation of the entity." Cain added that
through the joint venture, the "immediate goal would be to
increase racetracks' operational efficiency and reduce their
costs for telecommunications services" (DRF, 6/22).
