Posted on 09/16/2009 4:54:09 AM PDT by GOP_Lady
Harrah's Operating Company, which owns 38 casinos and two thoroughbred race tracks, is the new owner of Thistledown Racetrack.
The U.S. Bankruptcy Court of Delaware approved Harrah's $89.5 million bid for the North Randall thoroughbred racing facility. It ended 40 rounds of bidding on Monday that began with a so-called stalking-horse bid of $22.3 million by Penn National, bidding as Cleveland Gaming Ventures LLC, and included bids from a subsidiary of Pinnacle Entertainment.
Harrah's will pay $42 million in cash when it closes the deal, and another $47.5 million in contingency payments.
Thistledown is one of two horse racing tracks among the 11 owned by the bankrupt Magna Entertainment Corporation that have now been sold. The court on Tuesday also approved the sale of Remington Park in Oklahoma to Global Gaming Solutions RP LLC, a subsidiary of the tribal Chickasaw Nation, for $80.25 million. Magna bought Remington Park and Thistledown in 1999, paying $9.35 million for each track.
"We haven't talked to anyone from Harrah's yet, so there isn't much we can say about the purchase," said Thistledown General Manager Brent Reitz. "Right now, we're just tying up loose ends."
Executive Director Tom Fries Jr. of the Ohio State Racing Commission says there shouldn't be a problem with approving the sale. He believes it can be done over the next 30 days.
"Harrah's already owns two race tracks, Harrah's Louisiana Downs and Harrah's Chester Racetrack near Philadelphia, and is licensed in those states," said Fries. "A lot of what we need to do has already been done, such as background checks and fingerprinting. We won't have to re-invent the wheel here.
"I'm delighted that Harrah's has that kind of confidence in buying Thistledown, which is a really neat venue," said Fries. "I'm sure the horsemen are excited about Thistledown's new owner, and what it will mean for horse racing in Ohio."
A thorn in the side of Harrah's management team will Ohio court battles over allowing 2,500 video lottery terminals at each of Ohio's seven racetracks. The new gambling that was to debut in May is forecast to generate $933 million over two years for the Ohio general fund, but the number of lawsuits challenging the legislature-approved gambling is now up to four.
In order to take advantage of the video lottery terminals, or slots, Ohio's tracks were required to post the first $13 million payment on Tuesday toward a slots licensing fee of $65 million. Ohio Lottery Commission officials did not return a call concerning Thistledown, its new owner and any delay granted to Thistledown in making the payment.
A statement by Harrah's after the hearing said that Harrah's officials "are exited to be entering Ohio and look forward to developing a first-class facility in Cleveland which will create significant employment opportunities in the region."
The bid by Cleveland Gaming Ventures included breakup fees and expense reimbursements that could reach $500,000, which was disallowed by Judge Mary Walrath. Magna, its creditors committee and Penn National argued the fees were valid, according to Associated Press, and also set the stage for a successful auction.
Still to be determined by the court is the disposition of Magna's other race tracks, which include Santa Anita, Gulfstream Park, and Pimlico, Baltimore's home of the Triple Crown jewel, the Preakness Stakes. The court did schedule a hearing on bidding procedures for the sale of Lone State Park. Global Gaming, the casino and racing track operation owned by Chickasaw Nation, has made a stalking-horse bid of $27 million. Qualified bids must be submitted Oct. 5.
It seems Harrah’s has been smartly buying up property in states where gambling is becoming more legalized.
Ohio is now debating whether to allow slot machines at the racetracks in our state (similar to Pennsylvania).
Ohio is completely surrounded by states that allow gaming, so all of this money is going out of our state.
The nanny-staters are running commercials saying that people from Las Vegas and New Jersey will be coming in to run these places. GOOD! I’m glad Harrah’s wants to join in, because their are experienced and reputable.
Northeast Ohio, PING, please! :-)
I was at one of the Harrah’s facilities in Vegas four weeks ago, and one of Harrah’s employees mentioned that they were coming into Ohio.
I will still go to Vegas and Pennsylvania, not to any of the facilities in Ohio, due to Ohio's smoking ban. There has to be at least one place in Ohio where adults can be adults.
Years ago I used to get with some buddies and we’d go to Thistledown for the day races, then hop in the car and fly down to Waterford for the night races..I won some and lost some, but there ain’t nothin like watchin the horses run..
Glad to see Thistledown is still around..
I know people here in our state who LOVE watching the horses just like you. :-)
Ohio has already approved slots at the 6 or 7 horse racing tracks, but that approval is being challenged in the courts. Also, there is a ballot initiative for this November where Ohio voters will vote on allowing casinos in Columbus and three other locations. That inititative looks like it is going to be approved if a recent poll is accurate.
It indeed does look like it will pass at the moment.
ABOUT TIME!!!
Every time I go to Vegas, I tell the casino employees what a nanny-state Ohio is and how happy my hubby and I are being at their facilities in Vegas.
I guess this puts to rest the rumor that Harrah’s is on the skids.
An interesting tidbit for you. The opposition to the first Ohio initative to allow casino gambling was almost entirely sponsored and funded by the Ohio race track owners. Immediately after the defeat of the issue by voters, the track owners were at the State House lobbying to have casino gambling at their race tracks.
Indeed. The deal was approved by a bankruptcy court.
That is an excellent example of “special interests,” where the people get caught in the middle.
A thorn in the side of Harrah's management team will Ohio court battles over allowing 2,500 video lottery terminals at each of Ohio's seven racetracks. The new gambling that was to debut in May is forecast to generate $933 million over two years for the Ohio general fund..In order to take advantage of the video lottery terminals, or slots, Ohio's tracks were required .... blah blahOkay, I admit it I must be dumb. The same argument/fight is going on for IL Racetracks, and I just don't get 'it'.
I've been going to 'the track' in the Chi area since I was a little shaver, way back in 1956. Sportsman's Park, Hawthorne and Arlington (Arlington is beautiful and classy). Even the now long gone Washington Park track which was out in the middle of nowhere. And its my experience that people who 'play the ponies' have no time to be feeding quarters into Video Slot, or Poker Machines. They study the Racing Program and/or 'Green Sheet' until the last possible minute, then place their bets.
There's no time to Play Video Poker, or Slots. Even for the degenerate gamblers, whom I assume is the 'targeted customer'. And the casual pony player doesn't go to the track loaded down with cash. They've got $2 bucks for each race, or a little extra for some gimmick bets -- say $30.00 - $40.00 total to gamble.
Ergo, IMHO this extra $933 million to be 'generated' is baloney. And if these are only 'Lottery' machines it's a pipe dream, and that pipe is full of crack.
I drove through Ohio yesterday and they WERE carpet bombing radio with pro and con commercials on the gambling initiative.
One talk show guy said the “anti” commercials are funded by a West Va casino that wants to keep Ohio competition away.
Any truth to that?
I’m hearing and seeing these commercials from both sides as well. Casino companies in other states have run anti-commercials before. They did it in 2006. I have no doubt that they are doing it this time. I would “wager” on it. ;-)
My answer is (if I understand you correctly), these places wnat BOTH types of players. Wouldn’t you?
Related news article that I posted not too long ago:
http://www.freerepublic.com/focus/f-news/2332090/posts
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