Why that level of free gambling was distributed is not clear.
The Florida Department of Law Enforcement is investigating Gulfstream's racino operation, spokeswoman Paige Patterson-Hughes confirmed. The South Florida Sun-Sentinel has reported that the investigation centers on possible theft by employees in the slot machine area.
Gulfstream has shown signs of improvement since Magna hired a new vice president of gambling operations, Steve Calabro. The facility has slashed the number of machines to 516 from its peak of about 1,200, added video poker machines, changed the mix of slot offerings and increased marketing.
In November, which starts Florida's peak tourist season, Gulfstream took in $153 per machine a day on 592 machines. That rose to $183 per machine in December. Promotional credits have fallen sharply.
"Improving [Gulfstream's] performance I would say is one of the top, if not the top priority, of the company," De Francis said.
Last week, Stronach appointed a chief operating officer - Ron Charles, a Magna director and head of its California track operations.
While acknowledging Gulfstream's lack of casino management experience, Sen. Steven A. Geller, a Florida legislator representing Hallandale Beach and a gambling law expert, said the state's high tax rate on slots - 50 percent - is the main culprit for its lackluster performance. (Maryland would tax slots revenue at 67 percent if the referendum passes.)
"There's nothing wrong with Gulfstream that a normal tax rate would not cure," he said.
But Magna has also struggled with slots at Remington Park in Oklahoma, which opened its casino operation in November 2005. Remington lost $400,100 in 2006 on revenues of $78 million - nearly 71 percent of which came from gambling, according to filings with Oklahoma racing regulators. Remington's slots generated on average $236 per machine a day in 2006, but Calabro said the racetrack's poor performance dragged down a profitable casino operation.
Roncelli, Magna's former independent director, describes Stronach as well-intentioned but misguided at times when it comes to managing his passion.
The owner of a California plastics machining company and longtime horse owner, Roncelli said he's not disgruntled but speaking out with "some hope that he does turn this thing around."
High turnover
