2002 - Harness Tracks of America, Inc.

HARNESS TRACKS OF AMERICA
Executive Newsletter
A daily fax and e-mail report on racing and gaming developments in North America and beyond
Stanley F. Bergstein, Editor
THE KEY ISSUE STILL IN DOUBT
Of all of the tracks that Frank Stronach’s Magna
Entertainment has bought, none generated as much
ink as yesterday’s acquisition of control of Pimlico
and Laurel. Tens of thousands of words poured
forth from Maryland, including the hugs and kisses
between Joe and Karin DeFrancis and Magna officials
who explained the extremely complex arrangement
that will transfer control of the tracks
to Magna without disturbing egos while still generously
enlarging personal fortunes.
While badly needed physical improvements were
touched on, the most significant words of all came
from the two political candidates who will determine
the Maryland Jockey Club’s future. With
Parris Glendening leaving the governor’s office
next winter, intractable to the end on the issue of
slots, the issue of what happens next hangs over
Magna’s intentions to turn Pimlico and Laurel into
“tourist destinations.” Lt. Gov. Kathleen Kennedy
Townsend, the Democratic candidate, has made it
clear she plans to follow the Glendening line, and
she says she is deeply opposed to slots at tracks.
A spokesman said yesterday after announcement
of the sale, “The lieutenant governor believes that
the long-term future of the horse racing industry
in Maryland should not be tied to slots, that there
are other solutions. We believe that this deal
(Magna’s purchase) makes it more feasible to find
those other solutions.” Townsend’s Republican
opponent, Robert L. Ehrlich Jr., does favor slots
at tracks, although it was unnerving to hear him
talking about the state’s three thoroughbred tracks
without mentioning Rosecroft Raceway. Hopefully
he knows it is there. Ehrlich thinks “there’s a lot
of momentum” for slots, and hopefully he will see
that they arrive for all tracks if he wins. Jim
McAlpine made Magna’s intentions clear.
“We’re going to aggressively do whatever
July 16, 2002
is necessary to make the business a success,” he
said, and added that if slot machines are determined
to be essential to the success of Laurel and
Pimlico, Magna would seek them.
One other voice was heard from in the press tumult
following yesterday’s announcement. It was
that of the Rev. Thomas A. Grey, the Illinois abolitionist
who heads the National Coalition Against
Gambling Expansion. Speaking of Magna boss
Frank Stronach, Grey said, “He didn’t just wake
up one day and say, ‘My mission in life is to save
Pimlico and Laurel.’” The good reverend obviously
sees those cherries and bars spinning in front
of him, and the vision reaches all the way to Rockford,
Illinois, and unnerves him in his lair.
If Grey is worried, he has something much closer
to home to concern him. Aldermen in Chicago’s
northwest suburb of Des Plaines, most of whom
who have opposed gambling since the town’s
burghers voted it down eight years ago, voted yesterday
to explore the idea of a casino in that town,
quiet except for the roar of planes taking off and
landing at nearby O’Hare airport. The aldermen
met last week with “a very reputable and very
large” casino investor group, according to the
Chicago Tribune, and were obviously interested
in what the group had to say. Among the things
they said is that they could put up $350 million to
win a license for Des Plaines, and that the city would
take in $20 million a year in tax revenues if they
were successful. One alderman said his colleagues
still recognized past opposition to gambling, but
the city’s current financial strain made it prudent
to study the possibility of a casino. The Rev. Grey
had something to say about this, too. “It’s sort of
unbelievable,” he intoned. “This is a sign of how
powerful the lure of casino money is to communities.”
What else is new, Reverend?