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Saturday, February 7, 2004
Vote delay threatens racino deal
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AUGUSTA — Bangor Historic Track, the company seeking the state's permission to install slot machines in Bangor, is running out of time to get a license before its contract with the city expires Feb. 21. The state commission that was to meet next Wednesday to vote on the license has postponed the meeting to Feb. 17. And now other events may may make the new date impractical. Compounding Bangor Historic Track's problems, opponents have filed petitions with the state Harness Racing Commission asking to participate in the licensing case. The newcomers include Casinos No!, which openly opposes racinos, and two Indian tribes that have joined forces to try to get their own racino deal with the city of Bangor. In addition, Gov. John Baldacci, who personally opposes racinos but says he respects the public's support for them, is in the midst of shaking up the membership of the commission, which could make that panel reluctant to act quickly on the pending license. Baldacci has appointed a new chairman to the five-member racing commission. George McHale of Orrington was sworn in Friday. The governor has nominated another new member and wants to reappoint an incumbent. If the Senate confirms the two pending nominations, as it did with McHale, that will give Baldacci a three-person majority on the racing commission. Those factors may make it difficult for the racing commission to rule on the license application by Feb. 21, which is a key date. If the state does not issue a license by then, Bangor's deal with the promoters will expire, raising the possibility that the city could try to sign a new deal with different racino operators. At issue is a license application from Capital Seven, a company owned by promoter Shawn Scott, to have Scott's Bangor Historic Track operate harness racing at Bangor Raceway this year. Scott is in the process of selling the Bangor Historic Track to Penn National Gaming of Pennsylvania. Under the racino law passed by Maine voters last November, a harness license would allow Capital Seven/Penn National to offer harness racing and install slots in Bangor. Baldacci has proposed legislation that would crack down on the racino industry, in part by requiring separate licenses from two boards for harness racing and slots. But the Legislature has yet to act on the governor's bill, which is still under review by a legislative committee. Penn National spokesman Eric Schippers says his company has acquired all of the stock in the Bangor Historic Track from Capital Seven, as required by the racing commission in order for Penn National to qualify for a state license. But Henry Jackson, executive director of the racing commission, said Friday Penn National failed to file the necessary paperwork regarding that stock transfer in time for the commission to stick with the Feb. 11 meeting date, so the meeting had to be postponed. This week, Casinos No! and the Penobscot and Passamaquoddy tribes asked the racing commission to let them participate in the licensing review. The commission has yet to rule on those requests, but if Casinos No! and the tribes become part of the case, that could result in further licensing delays. "We're against slots, obviously, and we're going to use every opportunity" to fight them, said Dennis Bailey of Casinos No!. Bailey said the racing commission must conduct a full background check on the applicant and public hearings before it can issue the kind of license Penn National needs for slots. The Penobscot and Passamaquoddy tribes have notified Bangor that they would like to set up a racino there in cooperation with the operators of the Foxwoods casino in Connecticut. So while Casinos No! opposes racinos on principle, the tribes specifically oppose granting a license to Penn National. Richard Spencer, a lawyer for the tribes, says there are unresolved questions about the current business relationship between Capital Seven and Penn National and whether Penn National is qualified for a state license under conditions set by the racing commission. Spencer said the racing commission should not feel obligated to act by Feb. 21 because there should not be a "rush to judgment" on the license. Capital Seven and Penn National continue to express confidence that the racing commission will act on the license by Feb. 21, but both companies have condemned the attempted intervention by Casinos No! and the tribes. "We're concerned by the efforts of the tribes and Casinos No! to try to delay the proceedings" without justification, said Schippers. If Penn National, as the presumed new owner of the Bangor Historic Track, fails to get a state harness license by Feb. 21, Bangor would be free to seek new racino partners. "I assume it would open the process up" to other racino bidders, Bangor Mayor Dan Tremble said Friday. If that happened, Bangor and Capital Seven/Penn National could negotiate an extension of their deal, or the city could seek new a slots operator. Bangor has had a harness license application of its own pending before the racing commission since last October, as a backup plan to ensure that harness racing takes place there this year.
Staff Writer Paul Carrier can be contacted at 622-7511 or at:
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