Horse racing officials had pre-vote deal

By GRACE MURPHY, Portland Press Herald Writer

Copyright © 2003 Blethen Maine Newspapers Inc.

E-mail this story to a friend

The Agreement Owners of Bangor Historic Track, Scarborough Downs, some off-track betting parlor owners, the Maine Harness Horsemen's Association and Maine Standardbred Breeders and Owners Association signed a formal agreement this fall to support several legislative changes to two gambling measures. At issue were a law allowing slot machines at commercial harness race tracks, and a bill approved by the Legislature that would allow slot machines at OTB parlors. Proposed changes include: Override a possible gubernatorial veto of the OTB bill. Allowing commercial tracks to open OTBs with slot machines, if OTB bill dies. Extending by two years the Dec. 31, 2003 deadline for a track to win local referendum approval for slot machines. Expanding the five-mile radius within which a track can relocate Setting minimum slot machine limits of 1,500 machines at Scarborough Downs, 1,200 at Bangor Historic Track, and 200 machines per OTB; increasing Bangor's minimum to 1,500 if OTB bill dies Increasing percentage of gross slot machine revenue given to harness racing purses from 7 percent to 10 percent; increasing Agricultural Fair Support Fund take from 3 percent to 4 percent; and increasing the Sire Stakes Fund take from 1 percent to 3 percent. To top of story

Slot Machines in Maine Visit our In Depth section for information about the racino issue and Scarborough Downs' search for a new home. This poll is not a scientific survey of reader opinion. The results are a snapshot of what readers are thinking. To top of story

Members of the state harness racing industry agreed in advance to support racino developer Shawn Scott in his application for a license to operate Bangor Raceway.

The Maine Harness Racing Commission meets the week of Dec. 15 to rule on license applications, including a racing license for Bangor Historic Track, the Scott-owned company that leases Bangor Raceway.

Representatives of the Bangor track and Scarborough Downs, along with harness horsemen, owners and breeders, and off-track-betting parlor owners have long said they reached an agreement this fall to work together to legalize slot machines at commercial tracks and OTB parlors.

But a copy of the 11-page agreement, obtained Monday by the Portland Press Herald/Maine Sunday Telegram, shows how far the groups were willing to go to help one another as well as Scott and his Las Vegas company, Capital Seven.

Each group, according to the document, agreed "not to oppose, challenge, appeal or otherwise make any objection to the approvals requested by (Bangor Historic Track) and Capital Seven in such proceedings, and limit their voluntary participation in such proceedings to affirmative support for Capital Seven and (Bangor Historic Track's) positions."

Gov. John Baldacci's office received a copy of the agreement from the Maine Harness Racing Commission on Nov. 5, the day after voters approved the referendum question, 53 percent to 47 percent.

The referendum question was written by Scott's lawyers, and his companies funded the $1.5 million campaign.

Baldacci and his staff were perplexed by the agreement, in which industry members said they would work for legislative changes to the racino law if it was adopted Nov. 4.

"The sense is this kind of agreement should've been seen by the public before the election, so that people voting on Election Day would have all the information necessary to make the right decision," said Baldacci spokesman Lee Umphrey.

Baldacci opposed the referendum question. He also intends to veto a bill passed by the Legislature in June that would allow 200 slot machines at most OTB parlors.

A share of the gross profits would go to the state, harness racing programs, agricultural fairs and commercial tracks.

Groups that signed on to the "industry agreement" included Capital Seven, Bangor Historic Track, Scarborough Downs, some of the state's five OTB parlors, and the Maine Standardbred Breeders and Owners Association.

The agreement includes concessions and favors promised between those who breed, train and race the horses, the businesses that provide the tracks and purses, and the parlors that offer simulcast betting.

All groups agreed to support the referendum campaign for slots at the tracks in public and private, and to participate in the racino referendum campaign.

They also agreed to support Capital Seven and Bangor Historic Track as they go before the harness racing commission for a racing license and race dates. A track needs a racing license before installing slot machines.

Capital Seven owns 49 percent of Bangor Historic Track. As part of the licensing process, Scott must pass the racing commission's background check.

State law requires applicants to be financially responsible, and their associates and creditors to be of good moral character.

The parties that signed the agreement agreed to give "complete and unequivocal support for Capital Seven, Shawn Scott and its affiliated persons or entities in any 'good moral character' determination required with respect to Capital Seven or any of its affiliated persons or entities."

Kurt Adams, chief counsel to the governor, said he forwarded the agreement to the state Attorney General's Office for use in its background investigation.

Adams said industry groups and associations are allowed to make agreements to try to influence legislative or regulatory processes.

"That being said, I was surprised when I read the agreement, not from a legal perspective as much as from a citizen perspective - that there is a contractual obligation for individuals to attest to the good moral character of another individual," Adams said.

William Childs, a director of the Maine Standardbred Breeders and Owners Association, said his group did not have a problem supporting the provision, assuming the person is of good moral character.

"If we find dead bodies in his back yard, we will not be supporting him," Childs said.

The industry agreement also shows that the racetracks and horsemen agreed to try to change the terms of the racino referendum if voters approved it as law.

Proposed legislative changes included increasing the percentage of slot machine revenue that would go to harness racing purses, agricultural fairs and the Maine sire stakes fund.

It also included removing provisions in the new racino law that are hampering Scarborough Downs' efforts to install slot machines.

The law, as approved by voters, requires both commercial tracks to gain support for slot machines at a track through a local referendum vote by the end of 2003. Capital Seven agreed to support extending the deadline to Dec. 31, 2005.

The tracks are also allowed, under the new state law, to relocate within a five-mile radius of their existing tracks. Bangor voters agreed to allow slot machines at their city-owned track, but Scarborough voters declined.

Capital Seven agreed to support removing the five-mile restriction, as long as any relocated track was 75 miles away from its track. Scarborough Downs agreed to drop a court complaint challenging a state racetrack license ruling that was favorable to Scott.

Both tracks agreed to work with the Maine Harness Horsemen's Association to increase the number of race days held at each track and the number of races held for Maine-owned or sired horses.

All groups agreed to make the off-track betting bill a legislative priority.

If all the changes listed in the agreement were made, the state would have at least 4,000 slot machines at its tracks and OTBs, exceeding the number proposed for an Indian casino referendum question shot down Nov. 4.

Staff Writer Grace Murphy can be contacted at 282-8228 or at: gmurphy@pressherald.com

To top of page