Slots hopes look dim for Magna
Even if Magna Entertainment Corp., the owner of Laurel Park and Pimlico, wins its argument that Maryland's bidding process for slots is unconstitutional, it still might have a hard time getting a serious shot at one of the state's gambling licenses. Gadi Dechter reports this morning that Magna blamed its failure to submit a $28.5 million licensing fees to "market conditions" in its application for a license. The objection Magna is raising now in court -- that the bidding process is uncontstitutional because it the law doesn't include a specific provision saying the fee would be refundable -- isn't mentioned anywhere in the application. And moreover, the state argued yesterday that Magna lobbied for the very language it's now calling defective.
So even if Magna gets a do-over on the bids, it would still have to convince the slots commission that it's the best company to build and run what would, potentially, be the most lucrative gambling parlor in the state. At that point, it would still have to live down an admission that, essentially, it had trouble ponying up (so to speak) the licensing fee. Considering that the company would have to find way more money than that to make a slots operation a go, Magna might not accomplish anything through its lawsuit other than delaying the cash-rich Cordish Cos. from breaking ground at Arundel Mills.
Comments
Why didn't the commission ACCEPT Magnas bid as is, analyze it and reject it on the grounds that the Cordish bid was better for Maryland.
That would have avoided the thousands spent in court.
Are these people really that incompetent?
Posted by: AnotherWatcher | February 27, 2009 10:36 AM
I knew Maryland would mess this up. Instead of using a process that worked for other states they had to reinvent the process. How stupid was it to put the slots legislation in the constitution so changes can't be made as conditions change without another vote. Why do we keep electing these incompetent leaders? We need to clean house starting at the top. If we don’t then we must be happy with these kinds of results.
Posted by: Jerome | February 27, 2009 11:00 AM
Thousands spent in court.
How many thousands? And who is paying for the thousands?
Slots in Maryland: Too old to care anymore.
If I were Magna, I'd grab my money and run like the wind out of this state.
Posted by: Carole | February 27, 2009 11:03 AM
At least our elected officials in Annapolis are so consistent-
they screw up everything! And to make
things even worse to make changes there has to be another referendum.
Yet, this state keeps reelecting the same incompetent leaders!
Posted by: jay | February 27, 2009 11:21 AM
The slots were supposed to be at the tracks, right? I know the language was vague but I do believe that was the understanding as to help save MD's horse industry.
Instead, in classic MD fashion the local fat cat won out.
Goodbye, Preakness!
Posted by: bryanintimonium | February 27, 2009 1:37 PM
And these intelligent elected officials didn't trust US to vote on locations or numbers of machines.
They only felt comfortable enough with us to say yea or nay to what only THEY were educated and elite enough to decide the specifics on. We voted yea to an amendment with full knowledge of the "enabling" legislation and its implications. Now Del Anderson wants to change the funding portion. NOT EVEN ONE machine spitting out paper slips yet and these imbeciles want to change it all saying they did not know what was in the bill. If they did not know what was in it they should RESIGN from office. Do us all a favor and get out.
Posted by: AnotherWatcher | March 1, 2009 12:14 PM