Laurel Continues Losing Money; Hollywood Park's Future Unclear
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Record-Setting Preakness Helps
Boost Pimlico's Profits In '07 |
Laurel Park "continued to lose money last year," as "questions linger about the racetrack's viability as a potential spot for slots," according to financial documents filed with the Maryland Racing Commission and cited by Hanah Cho of the Baltimore SUN. The track's "financial struggles underscore the intensifying battle over a November referendum to legalize slot-machine gambling" in Maryland. Laurel Park's net loss "widened" to $4.3M in the year ending December 31, up from $3.6M in '06. Meanwhile, Pimlico Race Course reported a 35% increase in profit last year to $1.8M, compared with $1.36M in '06. Pimlico's net income is "almost entirely from the Preakness Stakes," where last year's event drew a "record crowd of 121,263 and total wagering of more than $87[M]," the fourth highest in Preakness history. According to the financial documents, Preakness has "provided financial assistance to Laurel by transferring cash so the racetrack could meet certain working capital needs during the past two years." The documents show Pimlico will "continue to provide such aid as well as 'additional cash infusions that are needed to support continuing capital improvement projects at Laurel Park.'" Maryland Jockey Club President & GM Chris Dragone said that a "sagging economy contributed to a 17[%] decline in average wagering at Laurel this winter." Magna Entertainment Corp., which owns both Laurel and Pimlico, has "not committed to the pro-slots campaign led by" former Maryland Budget Secretary Frederick Puddester (Baltimore SUN, 4/23).
HOLLYWOOD PARK: In L.A., Larry Stewart reported with Hollywood Park celebrating its 70th anniversary yesterday, the question is: "Will this be the last?" Hollywood Park President Jack Liebau: "I honestly don't know. I don't think anybody knows." The company is in the middle of "entitlement proceedings to acquire the proper zoning so it can demolish the track and build shops, restaurants and apartments or condominiums" on the property. Stewart noted there has been "some speculation that the current economic climate might slow the development plans," but Liebau said that he "didn't believe that the economy would have a significant effect" (L.A. TIMES, 4/23). Meanwhile, in Long Beach, Art Wilson wrote many horsemen and handicappers said that Hollywood Park's Cushion Track, entering its fourth meet, is the "least biased of the Southland's three artificial surfaces." Hollywood's Cushion Track, which has "produced fairer times since its inception during the track's" '06 autumn meet, was the first track in California to install an artificial surface (Long Beach PRESS-TELEGRAM, 4/23).
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