A potential buyer of Rosecroft Raceway believes casino-type gambling might give the bankrupt harness track the boost it needs to survive, but local leaders say slots "are not on the table."
Mark Vogel, a developer who owned both Rosecroft and Ocean Downs racetrack in the 1980s, is finalizing negotiations with current owner Cloverleaf Enterprises. Any deal needs approval of the U.S. Court of Bankruptcy, as Cloverleaf filed for Chapter 11 protection last month.
And any expanded gambling at Rosecroft would require voter approval through a statewide referendum — but only if lawmakers agree to put it to such a vote in the first place.
"It's going to be a process," said Vogel, president of Mark Vogel Cos. in Lanham. "The [legislative] session doesn't even start until January."
Vogel said he hopes to resume live harness racing at the Fort Washington track, which temporarily suspended racing last fall, and supplement revenues with what he describes as "alternative gaming" and even slots.
However, Rosecroft was not one of the designated slots locations in last year's referendum, in which voters said they would need to OK any more commercial gambling in the state.
"It wouldn't make any sense at all," said Del. Jay Walker (D-Dist. 26) of Fort Washington, who said slots at Rosecroft "are not on the table."
"We haven't opened one slot location in Maryland, so why open up for an expansion?" Walker asked.
Other lawmakers, including Sen. C. Anthony Muse (D-Dist. 26) of Fort Washington and Del. Melony G. Griffith (D-Dist. 25) of Upper Marlboro, did not return phone calls seeking comment.
Prince George's County churches have been steadfast in their opposition to commercial gambling since then-Gov. Robert L. Ehrlich Jr. (R) pushed for slots.
"We will be fighting it if it comes up again. This is something we don't need," said the Rev. Harrison E. Benton Jr., senior pastor of New Creation African Methodist Episcopal Church in Fort Washington. Benton's church is part of the 150-church-strong Collective Banking Group, which advocates economic empowerment for area churches.
Benton worries that, despite last year's referendum language, legislators may be more in favor of a slots or gambling location at an actual racetrack, such as Rosecroft.
"It's also a moral issue; it's something to keep the people down," he said.
Besides any legislative struggles, Vogel also must resolve Rosecroft's contentious relationship with the Maryland Racing Commission when it comes to simulcasting thoroughbred racing. The commission revoked Rosecroft's rights to the simulcast signal in April, following a dispute over the $1.24 million Cloverleaf owes Maryland breeders and horsemen for the rights. In a 15-year revenue-sharing agreement signed in 2006, Cloverleaf agreed to pay $5.9 million annually for simulcast rights.
A few days before the Kentucky Derby in May, Cloverleaf went to county court, which restored the signal for the Derby and limited thoroughbred races, provided the company posted a $2 million bond. Cloverleaf posted $500,000 at the time.
Vogel also would need the racing commission's approval to operate Rosecroft.
Rosecroft reported a net loss of $671,999 in 2007 with the Maryland Racing Commission, the most recent filing available. Its net wagering revenue was $17.68 million, while its racing revenue was $16.1 million. Rosecroft currently has an annual handle of about $69 million; it was $100 million when the 2006 simulcasting deal was struck, said Lisa Watts, the track's vice president of operations.
"It's the challenge of making this work," Vogel said, when asked about his interest in Rosecroft after giving up the track and Ocean Downs for bankruptcy in the 1990s. "The track was very, very successful. In the last 20 years, live racing has declined incredibly. … It used to be a social event."
Vogel originally purchased Rosecroft and Ocean Downs for around $10 million, the same amount he later sold them for, he said.
"The business has changed so dramatically. It used to be that on Friday and Saturday, you couldn't get a seat at Rosecroft," he said. "We're all in the same position. We're waiting for a new day."
Vogel said he's committed to live racing above all, because it pays the bills for the breeders, trainers and owners. He also wants to offer the facility for charity and nonprofit, as he did in the '80s.
"I really enjoyed the track," he said.
Vogel would not disclose the negotiated cost for the track, but said he expects to take ownership by September.
Cloverleaf officials did not return phone calls seeking comment.