The Slots Game: Magna stumbles at the finish line

Buffeted by recession, Laurel Park owner couldn't risk cash

By LIAM FARRELL, Staff Writer

Second in a series

By LIAM FARRELL, Staff Writer

Second in a series

Capital Gazette Communications

Published 08/23/10

The relief in the Governor's Reception Room in the State House on Nov. 19, 2007, was so palpable that the three politicians could have been signing legislation in a fog.

The Slots Game

The Capital today continues a three-part series called “The Slots Game” examining major turning points leading to the current situation with slot machines in Maryland.

After years of work to get slots up and running in Anne Arundel County, no levers have been pulled and voters now have another chance in November to send the whole process back to the drawing board.

Each part explores how expedient political decisions made to address circumstances at the time have conspired to produce unpredictable consequences for years to come.

• Sunday’s story examined why politicians embraced a widely defined corridor for a slots parlor in Anne Arundel County rather than just putting one at a racetrack.

• Today’s installment discusses how Magna Entertainment Corp. derailed the expectations of politicians and voters alike by failing to make a qualified bid.

• Tomorrow’s story will look back at why the General Assembly had to make slot parlors conform to local zoning or risk dramatic political failure.

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Sitting at a table with the eyes of former governors staring from portraits on the wall, Gov. Martin O'Malley, Senate President Thomas V. Mike Miller Jr. and House Speaker Michael E. Busch signed all of the legislation from a grueling 22-day special session - taxes, budget cuts, an expansion of health care and slot machines - into law to try and address a $1.5-billion deficit.

"We have achieved more than many of us thought possible,"...

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Setting a bad Precedent - 2010-09-16 12:18:47

We, as voters, have to ask ourselves if we really want to set a bad precedent here in Maryland and Anne Arundel County. Voting "No" on the November Referendum will set a precedent that foreign companies can come into Maryland and Anne Arundel County, not play by the rules governed by our State and County, and cheat their way into a 2nd chance. This will allow business owners to run rampant in the State of Maryland. We need to penalize Magna for not following the rules. Hold them accountable. Praise Cordish, a hometown company, for playing by the rules.

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Joseph Piazzola - Hanover, MD - Karma: Neutral

referendum tab - 2010-09-01 22:30:06

Let's not forget the hundreds of thousands that the Jockey Club paid to bring this referendum to light. Their motive: profit, pure and simple. It's not about saving the idyllic community of Arundel Mills where a casino would be more profitable for the county and the state. It belongs at the mall.

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Marjorie Schulenburg - Laurel, MD - Karma: Good

Non sense vs Facts - 2010-08-30 11:58:52

The signature gathering was a way out of control astroturf effort which resulted in almost half being thrown out with many more that should have been too.

Isnt the new 2010 county referendum about placing slots at Laurel? False

The new AA County referendum is regarding an already passed and county approved
zoning bill (82-09) that exactly matches the state referendums designated land corridor area. The only valid bid received and approved for slots happened to be near the mall. Some opponents to 82-09 state they assumed slots would go to the track. Regardless of that assumption, AA County 82-09 zoning matches the state referendum land area which INCLUDES the race track.

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Tim Reyburn - Laurel, MD - Karma: Excellent

Bunk... - 2010-08-26 23:27:48

If it was so overwhelming in support of the VLT at the Mall, then why was the drive for the referendum successful? The folks against it at the mall are not anti-slots, and there were several other W1 zoned locations better suited for the VLT than the mall.

Slots do not belong at Arundel Mills; the residents dont want it -- even their housing covenants prohibit gambling in their community. Of the 4 communities around Laurel Park, 3 of them voted approximately 60-40% for slots in the 2008 Referendum; the 4th, Russett, voted only 51-49 against. Many people said they voted for slots because they assumed the Anne Arundel license would be at Laurel Park. Further, it will take years (2015) for Arundel Mills to generate the revenue that Laurel Park could provide within 9-12 months of being licensed, since Laurel Park already has plan and permitting approval, and community support.

I don't see you folks pushing to have it over in Severna Park though, I guess it is okay to throw it into the middle of someone else community in the interest of greed and 14 million visitors annual... sort of like putting the candy near the register in the Safeway huh?

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David Leazer - Hanover, MD - Karma: Neutral

The voters want slots - 2010-08-25 11:39:17

Harry's right. The voters want a slots and entertainment facility that will bring in lots of money for the state and county. Cordish played by the rules and Magna, now Penn National, didn't. $400 million for the state and $30 million for the county can pay for a lot of needed improvements and boost spending for education and public safety without reaching deeper into the pockets of working families.

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randy thomas - , - Karma: Neutral

DeFrancis money slurp - 2010-08-23 14:05:04

Really, first what idiot agreed to give DeFrancis 65% of slots PROFITS on a sliding scale over 15 years? Second Defrancis & jocky club are responsible for state of Maryland horse racing. Third DeFrancis, Penn National, MDI development couldn't care less about horses. The fact is Laurel could not get a gambling license, Penn National already has one and multiple licenses are not allowed. Hey... but don't worry they will establish a corporation and try an amerliorate any backlash. Reject the regional shopping area and you reject Laurel. Fact is most citizen couldn't care less about the location. They voted to approved gambling to bring money to the state and county. Cordish followed the rules, they done what they said they'd do and have the money and experience to bring maximum profits to the state coffers. DeFrancis inherited, then ran the business into the ground. Magna declared bankruptcy aree these the people the citizens or Maryland want to parnter up with? No thanks.

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harry trampolini - severna park, MD - Karma: Excellent