online craps casinos

Still no Help for Maryland Tracks

Posted on May 21st, 2011

A state which was always known to be one of the frontrunners of the nation’s gambling industries is now clinging on the edge of the cliff, waiting for some sort of a lift from their problems. The solutions, however, still seem too far away. As good as the nearing 136th running of the Preakness Stakes may be, the once dominant horse racing state of Maryland honestly knows at the back of its mind that one big event won’t get its grip back on the gambling success it heavily enjoyed on its heydays. A mixture of unfortunate rulings coupled with inefficient planning have been believed to be the factors that contributed largely to the bit-by-bit crumbling of the horse racing and gambling operations profitability in the state.

The once proud horse racing state has now found itself battling against a number of woes. Few horses have been left in the state; purses have gotten meager and meager; time has left behind its racing facilities; and worst of all, no signs of concrete plan for recovery and long-term stability at hand. “The state of Maryland racing is not something that happened yesterday morning. It’s been an attrition over the last 10, 12 years. There’s not the level playing field,” president of the Maryland Jockey Club Tom Chuckas said. Chuckas also believed that the most influential factor that brought Maryland racing’s money-making capability down is the sprouting of slot machines and other casino establishments. “Prior to the advent of the additional forms of gambling, Maryland was head and shoulders above our mid-Atlantic competitors,” he said.

“Maryland was a very good racing circuit for a very long time, so it’s very sad,” said jockey Rosie Napravnik, who rode Pants On Fire in this year’s Kentucky Derby. “A lot of us have had to kind of move out of Maryland because there’s no money there. It’s very sad what’s kind of happened with the racing there and the downfall.” In 2008, Maryland had a shot at turning their fate around when voters approved 15,000 slot machines on five different locations. It looked like that was the ultimate saving grace for the state. But, an unforeseen obstacle derailed the state’s aspirations. “The way the slot law was written, the thoroughbred track was not named as a slot licensee,” said Alan Foreman, general counsel for the Maryland Thoroughbred Horsemen’s Association. “It allowed competing bids to come in.” The five locations which was given the privilege to offer slot machines were: Baltimore City, Cecil County in the northeast, Worcester County on the Eastern Shore, Allegany County in Western Maryland, and Anne Arundel County.

Because of a costly error for the Magna Entertainment – owner of Laurel Park and Pimlico – in 2009, the inclusion of horse racing tracks in the allowed slot-machine operators wasn’t able to be brought into realization. The company, who also partly owns Jockey Club and is now known as MI Developments, failed to pitch a $28.5 million license fee when it lobbied for slots in Laurel. In result, the right to operate slots was grabbed by the Baltimore-based Cordish Cos. Though still bleak, some tiny flashes of hope were noticed last December when Gov. Martin O’Malley relayed a pact which guaranteed an active live racing year for Maryland. O’Malley said in a statement that the agreement “not only keeps Maryland’s treasured Preakness Stakes where it belongs, but it helps protect the thousands of jobs that depend on our rich history of horse racing.”

The deal allowed Maryland Jockey Club to divert money intended for capital improvements to racetracks and other facilities vital for operations. The system would last until 2013. “We have some time to work out our issues. … Right now, we’ve got a respite,” Mr. Chuckas said. “For ‘11, ‘12 and ‘13, there’s a foundation to keep racing moving forward. The challenge that we face is, what do we do after ‘13?” The sole remaining asset for Maryland today, the Preakness, is still running as of now and is still projected to fill the racing venue with a huge crowd and high ratings on Saturday. But Maryland’s horse racing and gambling industry in general, know they would need more than just one big event to save their operations before it becomes too late.