Is Penn National Broke or Over-Extended?

In Maryland's latest pretense to 'save horse racing' Penn National didn't submit the requisite fee.

Penn National says Rosecroft casino would include 3,000 slot machines

By John Wagner,May 13, 2013

A driver takes a few laps at Rosecroft Raceway in Fort Washington. (Photo… (/ )

A spokeswoman for Penn National Gaming said Monday that the company’s vision for a casino at Rosecroft Raceway includes 3,000 slot machines, six times what was indicated in a summary of bids released by Maryland regulators Friday.

Penn’s proposal was one of three received for a Prince George’s casino by Friday’s deadline. MGM Resorts and Greenwood Racing are also competing for the license, which could be awarded by the end of the year.

A “registry of proposals” released by the state late Friday said Penn’s proposal includes 500 slot machines — a figure based on the size of a licensing fee that the company submitted with its bid.

The state had asked that bidders put forward $3 million for every 500 slot machines they are proposing. Penn’s application included only $3 million.

By contrast, MGM included $21.6 million for its plan to include 3,600 slot machines in a casino at National Harbor, and Greenwood included $28.5 million for its plan for 4,750 machines at a casino at Indian Head Highway and Old Fort Road.

The state has said losing bidders will get their money back. But Karen Bailey, a spokeswoman for Penn, said the company did not submit a larger fee because of “the continued gray area around the refundability of these fees.”

“We have made clear to the state in our submission that we are designing the facility for at least the full statutory allotment of (3,000 slot machines) and will submit the remaining fees upon licensing,” Bailey said.

It remains to be seen how that strategy will play out.

“I’m not really sure what the gray area would be,” said Donald C. Fry, chairman of the state commission that selects casino locations. “We’ve answered that question several times.”

Over the coming months, Fry said the commission will evaluate proposals “based on the number of machines that have been requested and paid for.”

He said it is possible for applicants to amend their proposals during the review process but that such changes are at the discretion of the commission, based on several criteria in state law.



 

Punished for voting NO!

To 'save' the DEAD horse racing industry that is losing money across the nation with declining attendance and lost interest,  the arguments are the same regardless of the year - around the country, around the globe. 

Why are taxpayers subsidizing the horse racing industry to maintain low wage jobs?  


From Gambling Action Group:

In 1994 Charles Town (WV, US) residents were 'punished' with warnings that Charles Town Races would have to close down because they voted against slots! So slots came...and all was predicted to be rosy, more jobs, more tourism, more tax relief...so then the GFC came and the recession came and anti-smoking laws came and takings dropped....so then the Charles Town Casino said it needed 'special treatment' as its revenues were so important to the state's budget [Really? Sure of that? Oh let's just agree eh?]...so then increased competition came from other surrounding casinos, to drop revenues by cannibalization [surprise, surprise?]...so then Charles Town Casino said it needed special favors re taxation....and of course it got its wish as it IS a casino...one of the life-savers of the state!

And it all started because citizens said NO to slots...originally!

Poor devils who JUST like us all over the world, were threatened, gave in to the gambling 

industry...and are NOW paying the huge price! It is a disgrace...the same pattern of argument was used all over the world, looking back.

We were threatened that our 'moral zealot' views about expanded gambling were going to destroy our home towns, our states and countries' economies!

So how come Hungary has just got rid of slots/pokies then? Hungary reported the destructive nature of slots/pokies.

WHY have WE still got these 'dens of iniquity' we call 'casinos', with each holding slots/pokies in the thousands?
WHO exactly has been conned?

NOT US OF COURSE...

http://articles.baltimoresun.com/1994-11-10/sports/1994314147_1_hudson-track-slot-machines

Track officials said they sought approval of the video lottery terminals in an effort to reverse declining attendance and revenue.

Hudson said the track lost $590,798 last year and projects a $1.4 million loss in 1994.

The slot machine request, placed on the ballot as a referendum )) in the general election, failed to pass by 538 votes.

"This track has a bad reputation for crying wolf to try to get something they want," said Joe Saunders, who covered the election for the Martinsburg (W. Va.) Journal. "But this time, it looks serious."

According to Saunders, another referendum can't be placed on the ballot for two years.

At stake are about 1,000 track-related jobs, including 550 mutuels, admissions and security personnel and almost the same number of people employed in caring for approximately 900 horses stabled on the grounds.

That number doesn't include workers who could be affected in related industries, such as breeding farms, feed and farm supply stores and restaurants and motels.

"We needed the additional revenue from the VLTs to survive," Hudson said. "And I find it very frustrating for your fellow citizens to vote against you. I've been here 20 years, and this is something I'm taking personally."

Saunders said churches opposed the slot machines, and his associate, Brian Harmon, said: "There were a lot of moral issues involved, as well as a lack of trust between the community and track management. The ultimate fear was that a casino was eventually coming to town."

Hudson said he hopes the track can maintain its live racing schedule until the planned closing on Dec. 11. After that, no racing dates will be requested for 1995. The track now races four live cards a week and simulcasts on five days.

Hudson said he could not imagine "any set of circumstances where the track could remain open. We're shutting down because we're losing money pretty dramatically."

Hudson said ownership, headed by track president Keith Wagner, will seek a buyer for the track. "But I don't know who, under these conditions, would buy it," Hudson said.

The result of another referendum, this one in Prince William County, Va., has cleared the way for a potential track operator to challenge the Virginia Racing Commission's decision to put the state's first pari-mutuel facility in New Kent County near Richmond.

Voters in Prince William voted 31,165-21,018 in favor of allowing a track to be built in their jurisdiction.

"This belies any assertion in the commission's 'Findings of Fact' about significant community opposition to our track," said Lawrence Framme, an attorney representing Jim Wilson's Virginia Jockey Club, which wanted to build a track near Manassas. Wilson was passed over by the commission in favor of Arnold Stansley and the Maryland Jockey Club, which will build and operate the New Kent track.

Framme said it's likely that either today or on Monday he will file an appeal to challenge the board's decision.

Purse increase sought

Maryland thoroughbred horsemen are angered about a recent purse cut.

Now, the state's harness horsemen are upset that they have not received a purse increase.

As of the end of last month, Rosecroft/Delmarva had underpaid its horsemen by $500,000, according to testimony yesterday before the Maryland Racing Commission.

The horsemen are meeting with track officials at Rosecroft tonight to discuss an increase "now that the tracks are generating a better purse pool than previously estimated," said Charles Lockhart, executive of Cloverleaf, the harness horsemen's organization.

More purse money is being accumulated because Rosecroft is simulcasting its signal to the Meadowlands and because some stakes have been rescheduled until later in the year, Lockhart said.

The horsemen want the increased moneys paid now before a new buyer emerges to purchase the track from the estate of Fred Wiseman. In other business, the commission approved a 1995 date schedule for the state's thoroughbred tracks, similar to the one that ran this year.

THOROUGHBRED DATES

@4 The 1995 dates for Maryland thoroughbred tracks:

Track .. .. .. ..Dates

Laurel .. .. ..Jan. 1-April 3

Pimlico . .. .April 4-June 12

Laurel .. ....June 13-July 24

Pimlico .. ...July 25-Aug. 25

Timonium .. ..Aug. 26-Sept. 4

Pimlico .. ....Sept. 5-Oct. 2

Laurel .. .. ..Oct. 3-Dec. 31

Note: Dates have yet to be approved for Maryland harness tracks, the Fair Hill steeplechase meets and Marlboro races at the Prince George's County Equestrian Center.

Maryland: $47 MILLION spent

Posted 10/12/2012 TheWashingtonPost

Contributions to Md. gambling fight rise to $47 million

By John Wagner

Supporters of expanded gambling have accused Penn National Gaming of trying to protect its casino in Charles Town, W.Va. (Ricky Carioti — The Washington Post)

 

Companies with a stake in Maryland’s expanded gambling measure have now contributed more than $47 million to the two campaign committees slugging it out in television ads.

 

The latest contribution — another $3.5 million from Penn National Gaming — was disclosed on Friday, a day after another $3 million outlay was reported by MGM Resorts.

Penn is fighting the expansion plan known as Question 7, which would allow a new Prince George’s County casino, as well as Las Vegas-style table games at Maryland’s five other slots locations. MGM, which is angling to build a casino at National Harbor, supports the measure.

To date, Penn has disclosed spending $25.1 million, while MGM has reported $17.4 million in donations.

Several other companies have contributed to the pro-expansion side, including the Peterson Cos., the developer of National Harbor, which has given $1.3 million; and a group led by Caesars Entertainment, which has given $3.4 million.

Caesars is building a casino in Baltimore and wants to offer table games.

Penn owns a casino in Charles Town, W.Va., that analysts say would take a significant hit if another large-scale venue opens in Maryland. Proponents of the measure have accused Penn of acting to protect its interests in Charles Town, which the company denies.

The company has also expressed interest in building a casino at Rosecroft Raceway in Prince George’s but argued the deck would be stacked against it in a bidding process with MGM.


http://www.washingtonpost.com/blogs/maryland-politics/post/contributions-to-md-gambling-fight-rise-to-47-million/2012/10/12/8fbaac4a-148f-11e2-ba83-a7a396e6b2a7_blog.html