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.
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.
Any expansion of gambling at the track would require lawmakers' approval and support by Maryland voters. A ballot measure to allow slot machines at Rosecroft could appear on the November 2012 ballot at the earliest.
Richard Mason, an attorney for Penn National, described Landow as "sore losers" who could have upped their bid on Friday during the auction. He also said Landow could only speculate about what lawmakers ultimately will decide to do.
"What goes in may not come out necessarily the same," Mason said, referring to legislation.
Roger Frankel, an attorney for Landow, said it's too soon to say whether Landow will appeal.
Rosecroft closed in July after struggling for years to keep the harness track open. Legislation is being prepared in Annapolis that will include provisions to help reopen the track, which filed for bankruptcy in June 2009.
The measure would allow harness racing tracks, such as 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.
The bill also would authorize the Maryland Economic Development Corporation, a private corporation established by the state to promote economic development, to lend up to $4 million to Rosecroft to have a 40-day racing schedule.