Maryland horse racing industry in jeopardy as the 2011 racing season looms ahead
The past decade has seen the downfall of Maryland horse racing industry and if appropriate steps are not taken now, the industry will most likely collapse. With 2011 horse racing season arriving in just five weeks, there is still no racing schedule in place.
Most people lay the blame for the deplorable condition of the industry on the legislature and track owners.
As the story goes, Magna Entertainment, who had ownership of Laurel Park in western Anne Arundel County and Pimlico Race Course in Baltimore, filed for bankruptcy and intended to auction the properties. The result of this was a bill passed by the General
Assembly at the backing of Gov. Martin O’ Malley and the legislative leaders.
It was hoped that the horse racing industry would be revived as the authorities were given more control over Laurel Park, Pimlico, the Bowie Race Course Training Center and Preakness Stakes.
"We want to make sure we do everything in our power … to make sure that our state has the maximum amount of flexibility to protect the state's best interests," O'Malley said at the time. "It wouldn't be responsible for us to presume that there will be a
private-market solution to this."
Sadly however, the officials find themselves in the same fix all over again, if not worse. There is wide spread talk of changing the ownership of Laurel Park and Pimlico Race Course on grounds of the business being mishandled by an owner. Another owner is
being accused of utilizing his energies more on slot machine earnings than horse racing.
Dr. Tom Bowman, a veterinarian and president of the Maryland Horse Breeders Association had similar concerns. He is of the opinion that any type of public pressure should be exerted to change the ownership if a feasible and reasonable business plan is not
produced.
At present, the owners, breeders, trainers and operators of the tracks, all are at odds with each other. The Maryland Racing Commission has rejected a shortened racing schedule as well as a joint venture between Penn National and MI Developments. A suitable
racing plan, according to the commission would utilize the racing tracks all year round instead of just 146 days.
"We did not approve Penn National's ownership, so I'm not sure if they should be playing a role at this point," commission Chairman Louis Ulman said Tuesday.
There is another meeting scheduled later this month or at the start of 2011 in which a viable racing plan is expected. But there is little indication that the owners will come up with something feasible.
Penn National and MI Developments hold the stance that they are losing money at Laurel Park, estimated to be $4 million to $7 million annually. MI Developments lost $29.4 million in its racing and gaming division during the first three quarters of 2010.
That is the reason for the shortened plan. The executives from both the firms had decided to draft another plan working in collaboration with the stakeholders - which would be long term - after the 146 day plan was approved.
The Preakness’s economic impact is estimated to be more than $40 million and it dates back to 1800. In the event of its closure, jobs, tax revenue and real estate will be put on the line and the state will lose its premier sporting event.
The commission is willing to give time to the owners but they will not be hesitant to take necessary measures if they do not come up with a viable solution on their own.
Senate President Thomas V. Mike Miller Jr., D-Calvert believes that the optimal solution would entertain the fans and generate revenues too.
Cynthia McGinnes, a horse-owner in Chestertown is on the side of the state. "Somebody has to stand up to the bullies," McGinnes said. "The racing commission did and now we need the legislature."
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