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It appears there will not be a slot parlor built at Laurel Race track. The state commission charged with approving the bid rejected the Jockey Club’s bid to install slots at Laurel this afternoon because it did not include the required $28.5 million licensing fee. The Washington Post has the details:
The plight of the Jockey Club and its Canadian owner, Magna Entertainment, marks a remarkable reversal in fortunes from six years ago.
In 2003, Republican Gov. Robert L. Ehrlich Jr.’s first year in office, a bill explicitly made two Magna-owned tracks eligible for slots, Pimlico in Baltimore as well as Laurel Park. The bill passed the Senate but died in the House.
As the battle over slots continued throughout the remainder of Ehrlich’s term, Magna tracks maintained favored status in subsequent legislation, none of which made it to the governor.
Since 2003, the company and affiliated entities have spent more than $4.4 million on lobbying expenses, among the greatest outlays by any special interest in Annapolis. The Maryland Jockey Club, which is controlled by Magna, currently retains one of the top-earning lobbying firms in the capital.
The Jockey Club also spent nearly $3 million last year to promote the passage of the referendum that authorized slots in Maryland. A major argument in favor of the referendum was that it was necessary to save horse racing in the state. Now, it appears that the racing industry will have to figure out how to survive in Maryland largely without the help of slots. Meanwhile, bids have been placed for fewer than half of the 15,000 machines authorized by voters last year.
Lawyers for the Jockey Club indicated they would challenge the commission’s decision in court.
UPDATE: Attorneys for the Jockey Club have already gone to court asking for an injunction of the commission’s decision. A hearing will be held at Anne Arundel County Circuit Court on February 26.
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