Maryland’s racing industry has reached major crossroad.

Wait long enough, and the weather always changes. Bucketloads of rain fell in Maryland this fall after many months of drought.

At about the same time, the state’s political climate shifted from desert-like conditions, as far as slot machines at the race tracks go, to something resembling a tropical rainforest.
Now it’s up to industry leaders to ensure that racing does not get lost in an overheated jungle.

Once Maryland’s pro-slots Governor-elect Robert L. Ehrlich Jr. takes office in January, there will be all sorts of maneuvering and positioning. But the racing industry’s focus should remain clear:

1. Slots at race tracks only.
2. Equitable distribution of revenue among the race tracks, breeders and horsemen.
3. Continued guarantees for live racing (currently 220 days).

Not coincidentally, the state legislature, in session from January through April, will be considering proposals for slots just as new ownership is taking charge of Maryland’s three largest racing facilities Pimlico, Laurel Park and Rosecroft harness track.

Magna Entertainment’s purchase of Pimlico/Laurel was unanimously approved by the Maryland Racing Commission at a hearing conducted November 13, commission chairman Lou Ulman describing it as the “dawn of a new era in Maryland racing.”

Settlement on the deal, which transfers a 51 percent equity interest in Pimlico and 58 equity interest in Laurel to Magna, while valuing the two Maryland Jockey Club tracks at approximately $117.5 million, was expected to take place in late November or early December.

Day-to-day management of the tracks is set to remain with Laurel/Pimlico president and CEO Joe De Francis and his sister Karin De Francis.

Meanwhile, Cloverleaf Enterprises‹an entity formed by the horsemen’s group that seven years ago purchased Rosecroft Raceway‹is proceeding toward the sale of that facility to an out-of-state firm, Centaur Inc.

Centaur reportedly will pay approximately $55.4 million to add Rosecroft to its stable of holdings, which includes a minority interest in Hoosier Park race track in Indiana as well as a casino in Colorado and a card club in California.

It’s noteworthy who is not buying Rosecroft. That is Magna, which reportedly bid more than $68 million, but was turned down because the state’s harness horsemen are leery of further enmeshment with the Maryland Jockey Club. Maryland’s Thoroughbred and Standardbred industries have been joined at the hip since January 1, 2000, when a revenue sharing arrangement was established, dividing revenue generated within the state 80 percent to Thoroughbred tracks, horsemen and breeders and 20 percent to Standardbred interests. The revenue sharing agreement expires March 31, 2004.
Never, in its 250-plus years of existence, has Maryland racing faced so many changes on a major scale all at one time.

It’s anyone’s guess what shape the race tracks will take five years, or ten years, from now. A splendid, rebuilt Pimlico? A supertrack combining all the facilities into one, with slots as the centerpiece? Racinos? Destination entertainment centers?

The 2003 legislative session won’t spell out the entire vision of the future. But it will be a turning point, one way or another.

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