Racino foes try to join review of track license

Monday, February 16, 2004

By PAUL CARRIER, Portland Press Herald Writer

AUGUSTA — Penn National Gaming hopes to learn Tuesday if it will get a license to provide harness racing and slot machines in Bangor. But recent racino developments have raised doubts about whether the Harness Racing Commission will make a final decision at that time. The commission is supposed to act on the license application Tuesday, but four groups that oppose giving Penn National a conditional license recently asked the commission to let them participate in the review process. The four are Casinos No! and the Christian Civic League of Maine, which oppose slots; and the Penobscot and Passamaquoddy Indian tribes, which want to set up their own racino in Bangor.

The pending application from Penn National is for harness racing, but that license also would allow Penn National to install slot machines in Bangor under terms of the racino law voters passed in November. That law allows slots at commercial race tracks that won local approval for them by Dec. 31 of last year.

Scarborough Downs failed to meet that deadline for local action, but Bangor voters backed slots there last June. Developer Shawn Scott, who has a deal with Bangor to have his Bangor Historic Track run a racino there, is in the process of selling Bangor Historic Track to Penn National.

The voter-approved racino law takes effect Saturday, and Bangor's contract with Scott expires on that day. That means Penn National could install slots in Bangor after Feb. 21, if it gets a harness license from the state this week. It also means Bangor could negotiate a new racino deal with some other promoter, if Penn National fails to get a license this week.

The latest bid to participate in the licensing review came from the Christian Civic League of Maine, which filed its request last week. Michael Heath, the league's executive director, said his organization should be allowed to take part in the case in large part because it has a long history of opposing gambling.

If the commission allows any of the newcomers to participate in the licensing process, they probably will try to torpedo or delay Penn National's license bid. Racino promoters said Friday the racing commission should not let anyone else take part in the state's review, which began last year, because the new groups do not have a direct stake in the outcome and they tried to get involved too late.

"We think the time to apply is long gone," said Christen Graham, Scott's spokeswoman.

"It's an example of a party with absolutely no standing trying to intervene in an issue," said Eric Schippers, the spokesman for Penn National. Schippers said Penn National hopes the racing commission will grant a license Tuesday.

Schippers reiterated that Penn National has acquired all of the stock in the Bangor Historic Track, but it remains unclear how much money has changed hands. Asked if Penn National has fully paid Scott for the stock, Schippers said: "That's something that is an ongoing process."

That could raise red flags when the racing commission meets Tuesday because the commission initially agreed to give a conditional license to Penn National if it acquired the Bangor Historic Track from Scott. Henry Jackson, executive director of the racing commission, said Friday it was his understanding that the license was contingent on Penn National purchasing all of the stock.

Another complicating factor that could trigger a delay is the fact that Gov. John Baldacci, who personally opposes racinos, recently appointed a new chairman to lead the racing commission - George McHale of Orrington.

Baldacci has two other commission nominees - a reappointment and a new appointment - pending before the Legislature, which must confirm them before they can take office. The ongoing shakeup at the racing commission may make the panel reluctant to act on the license application during a transition period.

Baldacci has argued for months that the racing commission should postpone action on a harness license for Bangor until the Legislature can act on his bill to crack down on the racino industry. The governor's legislation, which is under review by a legislative committee, would create a state Gambling Control Board to regulate slots, as well as a new licensing process for slot machines.

Last week, the co-chairmen of that legislative committee agreed with Baldacci that the Legislature should not give Scarborough Downs more time to find a home for its proposed racino. Voters in Scarborough, Saco and Westbrook turned down a racino before the clock ran out Dec. 31, leaving Scarborough Downs with no options unless the Legislature lifts the 2003 deadline.

Robert Tardy, a lobbyist for Scarborough Downs, said Friday his client will try to convince the Legislature to allow Scarborough Downs to resume its search for a new home "after a cooling-off period," possibly two years from now.

Staff Writer Paul Carrier can be contacted at 622-7511 or at: pcarrier@pressherald.com

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