Miller: Throw out the slots bids
It's not too suprising that MIke Miller, the most dedicated slot machine gambling advocate Maryland has ever known, would be pretty upset this week by the way things are going. Not only did the bidding for slots licenses bring tepid results, it looks like his long-standing allies at the Maryland Jockey Club (and corporate owner Magna Entertainment Corp.) could find themselves shut out of the action based on their largely inexplicable failure to include the licensing fee with their slots bid. His call to throw out the bids and start over has brought us back to the old familiar Mike Busch vs. Mike Miller (with Gov. O'Malley somewhere in the middle) fight that we've been seeing for years.
But a closer look at Miller's comments gives a sense of what might be going on beneath the surface. MIller is blaming Busch for including the site Magna's competitor has picked, Arundel Mills Mall, in the slots bill in the first place. But he's also blasting Magna's advisers, saying the company "needs a new set of lawyers. ... Whoever advised them to handle the matter the way they did in my opinion adversely affected their ability to obtain a license."
Magna's advisers in Maryland are from the Rifkin firm, one of the highest (if not the highest) of high-powered Annapolis lobbying firms. They simply do not bungle things like this.
(Clarification: Rifkin represents the Maryland Jockey Club, a subsidiary of Magna, and not Magna itself. Nonetheless, I suspect the fine folks at that firm may have mentioned to corporate HQ that the strategy was problematic.)
Rather, what seems more likely is that we're seeing a split between the Toronto executives at Magna and the long-standing horseracing set in Maryland, specifically Miller's closest ally in the industry, Joe DeFrancis. Miller and DeFrancis have worked hand-in-hand over the years, and DeFrancis has funneled untold thousands of dollars to Miller's various campaign funds, which have helped cement the senator's longstanding hold on power.
But DeFrancis is a polarizing figure, with many others in Annapolis blaming him for failing to keep horseracing viable as a business on its own. He and Busch, for example, aren't exactly close. DeFrancis and Magna haven't seen eye-to-eye of late either. Magna bought out DeFrancis and his sister, Karen, for $18 million in 2007 and replaced him as head of the Jockey club. Later, the company forced him off its board and replaced the well-respected Lou Raffetto as president of the jockey club.
That didn't mean DeFrancis was out of the slots business, though. Far from it. He and Karin still have a deal that would give them a large slice of any slots profits at Magna's Maryland tracks for years into the future. That's millions that Magna would have to give away to the DeFrancises without them putting up any money in return.
Prospective slots bidders who didn't have that kind of arrangement are already wary of the high tax rates and investments Maryland is requiring, given the economic climate. You could see how Magna would be ambivalent about Maryland under the circumstances. And you could also see why Miller would be upset to see his long-time partner in the slots fight shut out of the action in the end.
Comments
THROW OUT MILLER BUSCH AND O'MALLEY and keep the slots.
We would ALL be much better for it.
Posted by: AnotherWatcher | February 6, 2009 3:56 PM
if the state wants horse racing and the preakness to stay in business in maryland they need to find someone to buy the tracks from magna. the way magna runs their race tracks is a joke. though magna has done a better job than joe defrancis did. talk about a worthless daily double magan/defrancis
Posted by: Anonymous | February 8, 2009 8:02 AM
The people should recall the referendum, throw out the crooked pols---but most important, never let failed Magna back into the picture. Move the Preakness? Where? They'll never make as much money on it anywhere else. It's the only winner in their (rapidly shrinking) portfolio.
Posted by: maryland crabby | February 8, 2009 8:13 AM
The very sad thing about this is that Maryland's biggest attraction is a shopping mall.
More people visit Arundel Mills than anything else in the state. Miller, Busch, O'Malley and the gang of thugs in Annapolis are sorry excuses for leaders.
Posted by: Patriot4Ever | February 8, 2009 8:52 AM
What makes anyone think Magna Entertainment has $28M in cash to put up? They are going down the tubes fast.
Posted by: Fred78 | February 8, 2009 12:05 PM
The Democrats are getting exactly what they deserve on slots. If they had supported slots when Ehrlich was governor and times were good, we wouldn't be having this mess.
Remember come voting time!
Posted by: Mark | February 8, 2009 1:30 PM
couldn't agree more
Posted by: doug | February 8, 2009 2:34 PM
WE VOTED ON THE BILL. Why are we complaining now? If you didn't like the bill then you shouldn't have voted for it.
Mike Miller is not King. He thinks he is, but he is not King. His son is on the parole commission (whats it, 100k+ a yr job?), his daughter used to work for BWI airport (how could Paris Glendenning say no to Mike Miller...she was fired under Ehrlich) and he is supposdly trying to get a family appointed to his seat when he retires....oh yah, and he can transfer ALL of his campaign funds to a family member. Summary: FBI investigation (on slots...it hit 'technicalities).
Maryland has a problem with ethics. Our Governor, Martin O'Malley, was taking $55,000 from a developer and then installing a new highway exit ramp right up to the developer's property. O'Malley was selling state land to a politically-connected contributor. He has taken hundreds of thousands of dollars from developers via shell corporations. And his staff all went from working on bills...tech tax, slots, etc and then went to lobby them months later! Summary: State Prosecutor fines to contributors.
Mayor Dixon had a nice quid pro quo with her developer/bf and took gift cards meant for needy children for herself! Summary: State Prosecutor/Grand Jury indictments.
The chair of the state's most powerful legislative committee--budget and taxation--was off getting transportation items for his other employer, Shopper's Food Warehouse. Summary: FBI investigation.
Another State Senator was busy trying to get his friend and campaign contributor's auto inspection license back, even though the auto shop was busy illegally certifying cars left and right. Summary: FBI investigation.
The Prince George's County Executive's staff is embroiled in development scandals. One former county council member under investigation. Summary: FBI investigation.
Is anyone noticing a trend here? Maybe the word corruption?
The people of Maryland must demand ethical legislating, ethical government and ethical officials if they don't want these sort of problems. And they'll be given a chance in 2010.
Posted by: Jamie | February 8, 2009 3:16 PM
Arundel Mills is the best site for the slots: Rte 100;I-95; I-97; rte 295; rte 32!!
It will not generate enough traffic to be a problem- If you want to ID a problem - look at the impact of BRAC on the roads around Ft Meade that the state will address in 15 or 20 years.
Miller is mad because his boyz didn't get their bid in. You can't change the rules. People have been sent to jail for trying to interfere with legal contractual procurements. He needs to be very careful.
Posted by: Diogenes | February 8, 2009 3:22 PM
The law says that a bidding entity MUST submit the fee with the application; there is NOTHING that says they can establish an escrow account because they have questions.
It seems as though Mike Miller thinks his pet company, Magna, is above the law.
News flash, Miller: THEY'RE NOT.
Posted by: Michael Calo | February 8, 2009 4:58 PM
MAGNA ENTERTAINMANT & FRANK STRONACH are completely fraudulent and utterly a bunch of Canadian Hustlers.
All you have to do is ask any investor that has had the "pleasure" of investing in Magna Entertainment. Investors have lost more than 97% of their investments.
Maryland, be happy, the last thing you nice folks need is Magna Entertainment or Frank Stronach
Posted by: FlyingTarpon | February 9, 2009 8:36 PM
mike miller did not want erlich to get the credit for slots, so now that the economy is in the tank they are worth much less.stupid and corrupt democrat
Posted by: stevo | February 9, 2009 9:05 PM