Money stipulation could keep track closed Harness racing is ready to return to Prince George’s County in the fall after a three-year drought but not before the track’s new owner clears several hurdles — stipulations some say could keep the track shuttered.
The Maryland Racing Commission conditionally awarded a racing license to Rosecroft Raceway’s owner, Penn National Gaming, last week but said the company needed to front more than $2 million to cover estimated potential operating losses through 2012.
Now completely shut down, Penn plans to reopen Rosecroft as an off-track betting facility next month in anticipation of returning to live racing, which halted in July 2008. The company asked the commission for a license to run a 20-day racing season in October and 54 days next year.
Those in the harness racing industry said they thought the commission’s action handcuffed the company and would keep it from getting a license at all this fall.
Some called it act of revenge against Penn National for attempting to slash Maryland’s thoroughbred racing schedule when it co-owned Laurel and Pimlico racetracks last winter.
“I think Penn National is being forced to pay for some perceived past transgressions,” said Thomas Cooke, president of the Cloverleaf Standardbred Owners’ Association. “And I think the fact that they are now divorced from Laurel and Pimlico has allowed certain people from that side to be aggressive against them.”
At the meeting, commissioners said Penn had a “track record” and worried whether the company would “cut and run” if it couldn’t get other gambling approved at Rosecroft next year. Penn sold its share of Laurel and Pimlico after a second attempt to win slots at Laurel Park last year failed.
The company bought Rosecroft this year for $11 million in a bankruptcy auction and has invested $500,000 on infrastructure improvements.
Commissioner John Franzone said the commission commonly attaches stipulations to license awards.
“In my mind there’s no politics on the racing commission,” he said.
Penn National spokeswoman Karen Bailey said the company has proposed a $1 million credit line for any 2011 operating losses but wanted to hold off on 2012 until that racing season.
“We can’t just issue a blank check,” she said.
The track is also in mediation with representatives of Laurel and Pimlico racetracks over access to those and other thoroughbred tracks’ broadcast signals. Rosecroft lost its right to broadcast and take bets on most thoroughbred horse races two years ago for not making its payments to the Maryland thoroughbred industry.
