On slots, backers playing both ends

Breeders, racetracks look to O’Malley and Ehrlich to save their bacon

Friday, Aug. 25, 2006

ANNAPOLIS — Horseracing interests are beginning to hedge their bets in the race between Gov. Robert L. Ehrlich Jr. and Baltimore Mayor Martin O’Malley, who both support legalizing slot machines at the tracks.

On Tuesday night, O’Malley (D) will be feted at a fund-raiser hosted by the Maryland Stallion Station, a thoroughbred stud farm in Baltimore County. The outfit held a similar party for Ehrlich (R) weeks ago, and its president said the O’Malley event is a smart business and political decision.

‘‘This is about keeping things in balance,” said Don Litz, president of Maryland Stallion Station. ‘‘We did a small fund-raiser for Governor Ehrlich and we want to do the same thing for Mayor O’Malley ... because who knows how this election is going to turn out.”

O’Malley is leading Ehrlich in the recent polls, so members of the business community and horseracing industry are expected to play both sides. Playing both sides, however, is not sitting well with Ehrlich, who has been unsuccessful in his bid to legalize slots but has made helping the horseracing industry a priority of his administration.

‘‘It’s extremely disappointing that some members of the horseracing industry don’t recognize the governor’s commitment to the industry and are falling victim to cheap political talk” from O’Malley, said Paul E. Schurick, Ehrlich’s communications director.

O’Malley campaign spokesman Rick Abbruzzese hit back, saying, ‘‘For all his talk about partnerships, the governor has proven that he is incapable of compromise. Because of that, he is incapable of making progress on this issue.”

Gerard E. Evans, a lobbyist for the Maryland Thoroughbred Horsemen Association, said his client is sticking with Ehrlich. He acknowledged that some horseracing interests are starting to hedge their bets. ‘‘Shame on them,” Evans said.

O’Malley, De Francis ties?

Next week’s O’Malley fund-raiser follows one earlier this month that appeared to be hosted by horseracing kingpin Joseph A. De Francis, president of the Maryland Jockey Club and one of the most high-profile proponents installing slots at the tracks. The Maryland Jockey Club owns the Laurel and Pimlico racetracks, two potential slots hubs.

De Francis, a registered lobbyist, is prohibited under state ethics law from raising money for political candidates, but his name appeared on the invitation for the Aug. 7 O’Malley fund-raiser at the Washington home of James A. D’Orta.

‘‘Dr. James A. D’Orta, Martin Jacobs and Joe De Francis cordially invite you to a reception honoring Martin O’Malley,” according to a copy of the invitation obtained by The Gazette.

Campaign finance records showed that De Francis contributed $2,000 to O’Malley one day after the fund-raiser, but O’Malley campaign officials said Thursday that De Francis’ name should not have appeared on the invitation.

‘‘It was an oversight on our part,” Abbruzzese said. ‘‘Mr. De Francis should not have been on the invitation.”

Abbruzzese said the campaign did not produce the invitation.

Mistake or not, being tied to De Francis is not a good thing politically for the mayor, said Bobbie Walton, executive director of Common Cause Maryland, a government watchdog group.

‘‘If I was [O’Malley], I would be very upset because it makes me look bad,” she said of the appearance that a registered lobbyist was raising money for him. ‘‘It makes it look like [O’Malley] is in the back pocket of the racing industry, and that is not a good thing.”

De Francis did not return calls on Thursday.

Alan M. Rifkin, a lobbyist for Maryland Jockey Club, said Thursday that he was unaware of the Aug. 7 fund-raiser or any connection to De Francis.

Suzanne S. Fox, executive director of the Maryland State Ethics Commission, would not comment directly on the De Francis matter, but she did reiterate that there is a prohibition on fund-raising for registered lobbyists.

Courting O’Malley

The fact that horseracing interests are courting O’Malley should not be surprising. Slots have not been legalized during in Ehrlich’s first four years in office, and the governor is in a difficult re-election battle with O’Malley, whose views are similar on gambling.

Even though O’Malley’s running mate, House Majority Whip Anthony Brown (D-Dist. 25) of Mitchellville, is a disciple of slots opponent House Speaker Michael E. Busch, O’Malley has consistently said he supports legalizing slots at the racetracks to save horseracing in the state.

Senate President Thomas V. Mike Miller Jr., the General Assembly’s chief proponent of legalizing slots, said Thursday that the only way slots will pass is if O’Malley is elected governor. Ehrlich ‘‘has not been able to carry the ball over the goal line,” he said. ‘‘If it’s going to happen it’s going to happen thanks to O’Malley.”

O’Malley could work with the Democrats in the General Assembly who have traditionally opposed slots, said Miller (D-Dist. 27) of Chesapeake Beach. O’Malley could tell Busch that legalizing slots at the racetracks is ‘‘a Democratic policy” and needs to move forward, he said.

Busch, who has refused to be pushed around by Miller and Ehrlich in the past, does not seem to be wavering on the slots issue now. He bristled at the notion that O’Malley would make slot machine gambling a priority and Miller’s notion that it’s a policy of the Democratic Party.

‘‘With so many issues facing the state of Maryland, I would hate to see this election start to break down on the future of gambling,” said Busch (D-Dist. 30) of Annapolis. ‘‘We have a $2.3 billion surplus. There is no need for the revenue from slots, so the only reason this is being discussed is to benefit a handful of wealthy special interests who make campaign contributions.”

Busch, an O’Malley supporter, shook his head when he saw the invitation for the O’Malley fund-raiser that had De Francis’ name on it. Busch has said that track owners like De Francis would be the primary beneficiaries if slots are legalized.

Meanwhile, Litz of Stallion Station seemed to buy into the notion promoted by Miller that having a Democratic governor would help to forge the consensus that has been lacking over the past four legislative sessions.

‘‘With a state that has a 2 to 1 Democrat advantage, there are some who believe that [O’Malley] has a better chance at getting it done,” Litz said. ‘‘We just don’t feel it’s smart business to not make sure both candidates are well-versed on the need for our industry.”

O’Malley’s position on slots is not universally embraced in the Democratic Party. He was given a reprieve on the issue when his Democratic primary opponent, Montgomery County Executive Douglas M. Duncan (D), who is anti-gambling, dropped out of the race in June.

Still, many liberal groups with the backing of members of the Legislative Black Caucus and other representatives from Baltimore city and Prince George’s County still strongly oppose slots.

Del. Peter V.R. Franchot (D-Dist. 20) of Takoma Park, a candidate for comptroller, said Thursday that if he is elected, he would fight O’Malley or Ehrlich when it comes to slots.

‘‘The national gambling industry knows no partisan lines when it comes to slots,” he said. ‘‘As comptroller, I will opposes slots under Governor O’Malley or Governor Ehrlich.”

Former Gov. Parris N. Glendening (D), who said Thursday that he will campaign for O’Malley, remains a strong opponent of legalizing gambling. ‘‘I would caution [O’Malley] that Maryland is too good of a state for slot machines,” he told The Gazette after endorsing Kweisi Mfume (D) for the U.S. Senate.