February 5, 2011
Judge OKs Penn National bid for Maryland racetrack
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GREENBELT, Md. (AP) - A federal bankruptcy judge approved an $11 million cash deal on Wednesday for the Rosecroft Raceway horseracing track by Penn National Gaming Inc. after a flurry of changing proposals.

Judge Paul Mannes decided to approve Penn National's offer when the Wyomissing, Penn.-based company raised its bid from $10.25 million to $11 million after a morning of last-minute maneuvering between Penn National and Landow Partners for the Prince George's County track.

Penn National was determined to be the highest bidder during an auction on Friday, edging out Baltimore Orioles owner Peter Angelos and Nathan Landow, a former Maryland Democratic Party chairman. But attorneys for Landow argued their bid was not properly valued. Attorneys contended Landow was in a much better position to receive a bond from the state than Penn National. A bidder receiving a bond from the state to help finance the track would have had to pay another $3 million under the initial deal.

To bolster their argument, Landow called state Sen. C. Anthony Muse, D-Prince George's, to testify that Landow was more likely to have community support and the backing of state lawmakers, who would need to approve the bond in legislation.

Muse said he supported Landow over Penn National, because he believed Landow was committed to holding live horse racing, regardless of whether additional gambling is allowed at the track. He also said he favored Landow, because the group was more inclined to favor table games instead of slot machines as an added gambling attraction. Muse said constituents want table games, not slot machines.

"That is what they want, and that's my job to do that," Muse said.

Landow ended up raising its offer to match Penn National's bid from Friday's auction. That prompted Penn National to raise the amount it would pay after receiving a gambling license for slot machines from $3 million to $6 million.

After a lunch break, however, Penn National offered $11 million in cash and withdrew a total of $9 million that would have been paid if the track received a bond from the state and also received a gambling license.

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Judge OKs Penn National bid for Maryland racetrack

GREENBELT, Md. (AP) - A federal bankruptcy judge approved an $11 million cash deal on Wednesday for the Rosecroft Raceway horseracing track by Penn National Gaming Inc. after a flurry of changing proposals.

Judge Paul Mannes decided to approve Penn National's offer when the Wyomissing, Penn.-based company raised its bid from $10.25 million to $11 million after a morning of last-minute maneuvering between Penn National and Landow Partners for the Prince George's County track.

Penn National was determined to be the highest bidder during an auction on Friday, edging out Baltimore Orioles owner Peter Angelos and Nathan Landow, a former Maryland Democratic Party chairman. But attorneys for Landow argued their bid was not properly valued. Attorneys contended Landow was in a much better position to receive a bond from the state than Penn National. A bidder receiving a bond from the state to help finance the track would have had to pay another $3 million under the initial deal.

To bolster their argument, Landow called state Sen. C. Anthony Muse, D-Prince George's, to testify that Landow was more likely to have community support and the backing of state lawmakers, who would need to approve the bond in legislation.

Muse said he supported Landow over Penn National, because he believed Landow was committed to holding live horse racing, regardless of whether additional gambling is allowed at the track. He also said he favored Landow, because the group was more inclined to favor table games instead of slot machines as an added gambling attraction. Muse said constituents want table games, not slot machines.

"That is what they want, and that's my job to do that," Muse said.

Landow ended up raising its offer to match Penn National's bid from Friday's auction. That prompted Penn National to raise the amount it would pay after receiving a gambling license for slot machines from $3 million to $6 million.

After a lunch break, however, Penn National offered $11 million in cash and withdrew a total of $9 million that would have been paid if the track received a bond from the state and also received a gambling license.

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