Despite Losses Magna Stays Committed To Maryland Tracks

Magna Entertainment Corp. (MEC) yesterday in a meeting with the Maryland Racing Commission (MRC) reaffirmed its "commitment to Maryland's thoroughbred racing even as [MEC] faces concerns about its ability to stay in business," according to Hanah Cho of the Baltimore SUN. MEC, which owns the Pimlico and Laurel tracks, has "lost money since 2002," including $114M in '07. The company met with the MRC "in a closed session to discuss the company's finances," as a "plan to sell racetracks and other property to generate cash for those payments isn't progressing fast enough amid slumping real estate and credit markets." But Magna Exec VP/Racing Scott Borgemenke said that the Maryland Jockey Club, the umbrella organization for Pimlico and Laurel, is "healthy and stable." Borgemenke added that Magna "continues to put resources into the Preakness Stakes," slated to run at Pimlico May 17 (Baltimore SUN, 3/19).

MARYLAND SLOTS: Borgemenke said that Magna is "leaning toward supporting the slot machine initiative" being led by former Maryland Budget Secretary Frederick Puddester but "would not rule out other options, including selling Laurel Park." Borgemenke: "No one has really given us a business plan yet, what it's going to cost to win the campaign. Somebody needs to put together a plan and a timeline of how and when it will be put into [effect]. I think we're in good shape to bid (on a slots license), but we'd like some support." MRC Chair John Franzone said that he was "concerned about Magna's ability to put money behind" the campaign. Franzone: "You can talk about it, but you have to sell assets (to) improve the debt situation." Magna on May 31 is due to pay $80M on a bridge loan from its controlling company, MI Development (WASHINGTON POST, 3/19).

PHILLY SLOTS: In Philadelphia, Dick Jerardi reports Philadelphia Park yesterday held a groundbreaking ceremony for the $350M slots casino set to rise in the facility's parking lot over the next 18 months. Since opening in December '06, Philadelphia Park's temporary casino has taken in $4.5B in wagers, which "translates into $350[M] in revenue." Philadelphia Park Chair Bob Green said that six months after the casino's fall '09 opening, the park's "main building will be returned to strictly a racing facility" (PHILADELPHIA DAILY NEWS, 3/19).

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