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Wednesday, February 18, 2004
Bangor track operator gets state license
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AUGUSTA — The state on Tuesday gave Penn National Gaming a conditional harness racing license for Bangor Raceway that may let the company install slot machines in Bangor. But a lawyer for Penn National said the company does not plan to put in slots before this summer, at the earliest. The 4-0 vote by the Maine Harness Racing Commission quickly came under attack from lawyers for the Penobscot Nation, the Passamaquoddy Tribe and Casinos No!, who promised to file appeals in Superior Court today. The commission issued the license after rejecting bids by the tribes, Casinos No! and the Christian Civic League of Maine to participate in the review process. The commission vote followed a contentious meeting that underscored the anger that members of the harness racing industry feel toward all Penn National opponents. The tribes would like to operate their own racino in Bangor; Casinos No! and the Christian Civic League of Maine oppose all racinos, no matter who runs them. Horsemen and others in the industry groaned at Tuesday's meeting when lawyers for the tribes and Casinos No! repeatedly protested commission actions. Lawyers for Penn National were restrained in their reaction, but Edward MacColl, a lawyer for Scarborough Downs, criticized Penn National's critics, saying they waited too long to get involved and now have no legitimate role to play. The conditions attached to the license require Penn National to show that Bangor Raceway, which has been undergoing renovations, is physically ready to host harness racing. Penn National also must convince the state that the company is suitable for running harness racing. Company officials expressed confidence Tuesday that Penn National will meet both criteria, allowing it to transform the conditional license into a full license. "I don't think it's a problem," said Chris Howard, a lawyer for Penn National. "There will be racing in Bangor this summer." If the commission's decision stands up in court, it will reassure horsemen and others in the industry that harness racing will take place in Bangor this year. But the larger issue of whether Bangor will get the slot machines that would transform its city-owned track into a racino remains in limbo, largely because the Legislature is working on Gov. John Baldacci's bill that would strengthen the state's regulation of racinos. That bill, which the Legislature could try to pass retroactively, would create a state Gambling Control Board to license and regulate slots. If that happens, racino promoters like Penn National would need separate harness and slot licenses from the racing commission and the Gambling Control Board, respectively, instead of a combination license from the racing commission. Joy Leach, a spokeswoman for Baldacci, said Tuesday that the governor is not troubled by the commission's decision because he believes Penn National will have to get a separate slots license under his legislation, which would amend a law that voters passed last year authorizing racinos. "The governor's primary interest in this matter has been the implementation of a prudent regulatory scheme," Leach said. The Legislature is moving in that direction, so Tuesday's vote will not guarantee slots in Bangor, she said. The voter-approved law allows harness tracks to install slots if they won local approval by Dec. 31, 2003. The governor says that law goes into effect Feb. 21, but Penn National has indicated it has no intention of moving quickly to install slots in Bangor. Bangor voters approved slots last June, and the city has a deal with Las Vegas promoter Shawn Scott and his Bangor Historic Track to operate a racino in that city. Scott is selling Bangor Historic Track to Penn National, which has acquired all of the stock from Scott but has not yet made full payment. Scarborough Downs failed to find a home for its proposed racino by Dec. 31, but it hopes the Legislature will lift the deadline and allow the Downs to resume its search. The racing commission had indicated last month that it would issue a conditional license to Penn National for Bangor if that company acquired Bangor Historic Track from Scott. Since then, opponents of the license have tried to get involved in the case and have questioned whether Scott is really out of the picture, and Baldacci began shaking up the commission by nominating new members. The city of Bangor's deal with Scott expires Feb. 21 unless Bangor Historic Track has a state harness racing license by then, so Tuesday's decision by the commission could be doubly significant. Not only does it give Penn National a license only days before the voter-approved racino law takes effect, but it also gives the company its license days before Bangor's racino deal with Bangor Historic Track expires. Still, supporters of harness racing and slots were not breathing easy Tuesday because James Kilbreth, a lawyer representing Casinos No!, and Richard Spencer, a lawyer for the tribes, promised immediate appeals that leave the ultimate status of the license in doubt. Kilbreth said the commission acted illegally by giving a conditional license to the new owner of Bangor Historic Track, Penn National, without first requiring that Penn National file a new application. Kilbreth said the commission was wrong to prevent his client from participating in the licensing process. Spencer, the lawyer for the tribes, said the commission violated state law and its own rules by refusing to allow the tribes to participate and by giving Penn National a license on the assumption that Scott has no continued interest in Bangor Historic Track. Spencer said Scott and Penn National retain the option of transferring Bangor Historic Track back to Scott. "I think what we saw today is it's not being done properly," Chief Barry Dana of the Penobscot Nation told reporters after the vote. Howard, the lawyer for Penn National, brushed aside such criticism, saying he is confident the commission's decision will stand up in court. Gerald MacKenzie, president of the Maine Harness Horsemen's Association, agreed, saying the commission acted appropriately. "The commission did the right thing today," MacKenzie said. "I think it would be awful hard to overturn the commission's decision. It was a fair decision." Howard said Penn National is awaiting legislative action on the governor's gambling-control bill - or adoption of state regulations if the Legislature fails to act on that bill - before installing slot machines in Bangor. He said it is highly unlikely that Penn National would operate slots before the 2004 harness racing season there ends in July.
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