Bill Aims To Extend Help For Track Operating Costs

The measure, which also will include provisions to help jump-start the reopening of Rosecroft Raceway in Prince George's County, would extend the plan that raised $3.6 million last month to allow a full calendar of 146 racing days in the state, Joseph Bryce, O'Malley's chief legislative officer said.

Bryce said it's unclear how long the measure would allow money to be redirected, but he noted it would be for several years.

The measure is needed so the industry will not come to the brink of collapse in future years as it did last month, Bryce told the Senate Budget and Taxation Committee.

"It's steering a big ship and trying to turn it around, and the challenges are years in the making and it's going to take some time to get out of them," Bryce told reporters after a committee hearing.

Last month, Bryce brokered a last-minute agreement with a $3.6 million loan from the Maryland Economic Development Corporation, a private corporation established by the state to promote economic development. Bryce said repayment will be included in budget legislation this year and paid for by redirecting slot machine proceeds.

Some lawmakers on the panel expressed concerns about the arrangement.

Sen. James DeGrange, D-Anne Arundel, asked whether the Maryland Jockey Club, which is owned jointly by MI Developments and Penn National Gaming, has a long-term plan to reach operating costs without tapping into funds designated for capital improvements at aging Laurel Park and Pimlico Race Course, which is home of racing's triple crown race, the Preakness Stakes.

Bryce said a big part of the problem is that Laurel Park was unable to get a slot machine license at the track.

"There's no doubt, and we have had talks with them and we will continue to have talks with them, that there needs to be a long-term plan for how we're going to sustain racing with the reality that there are not slots at Laurel Park," Bryce said.

Sen. Nathaniel McFadden, D-Baltimore, questioned whether management disputes between Penn National and MI Developments are clouding progress on creating a sustainable business plan.

"We have to have one voice speaking for the industry," McFadden said.

Bryce said the two sides ended up coming together to embrace the plan in December, but he also noted the difficulties.

"That dynamic was very difficult to deal with, and I expect that unless either there's a meeting of the minds or something changes it will continue to be a dynamic that we need to deal with as we consider racing issues," Bryce said.

The measure also will contain provisions to help jump-start reopening the shuttered Rosecroft track, which is scheduled for auction on Friday. One part would allow harness racing tracks, like Rosecroft and Ocean Downs near Ocean City, to use up to $1.2 million each in racing purse supplements to defray operating costs, with approval of the Maryland Department of Labor, Licensing and Regulation.

A second part would authorize MEDCO to loan up to $4 million to Rosecroft to have a 40-day racing schedule. The money would be paid out of purse supplements. The loan would require the track owner to hire back former employees, recognize previous collective bargaining agreements and require the track operator to reinvest revenue in either operating or capital spending to benefit the track.