The law passed by the General Assembly in November says that if Magna wins a slots license at Laurel, it must keep running the Preakness in Baltimore or lose its share of $140 million in annual purse and racetrack improvement subsidies.
In an interview this week, Gov. Martin O'Malley, a pro-slots Democrat, said that Magna "certainly will have a strong bid" for the Laurel slots license. The licenses will be awarded by a seven-member panel, with three members picked by the governor and two apiece by Senate President Thomas V. Mike Miller and House Speaker Michael E. Busch, both of them Democrats.
Still, it's not a sure thing that Magna will get a slots license at Laurel.
Gambling-related ballot measures have tended to fail around the country in recent years, and anti-slots activists in Maryland have vowed to mount a vigorous grass-roots campaign.
"I feel strongly optimistic that we're going to prevail," said Aaron Meisner, leader of Stop-Slots Maryland, one of two major groups opposing a slots initiative.
Magna has not made a financial contribution to For Maryland, For Our Future, the ballot committee headed by Frederick W. Puddester that will lead the pro-slots effort. But this week, Borgemenke said Magna expects to take a more active role in Puddester's campaign and may support it financially.
"I think we'll be supportive of what they ask for," he said.
Puddester said he is "hopeful" that Magna will buy into the campaign and hinted at "high-profile events" at Pimlico Saturday related to the pro-slots initiative. He has scheduled a conference call today to discuss the campaign.
If the pro-slots side prevails in November, Magna's dire financial circumstances could work against its bid for a gambling license. Magna Entertainment has lost money since 2002, including $114 million last year, and has survived on cash infusions from Frank Stronach, the Canadian auto-parts magnate who founded the company.
"Magna has had numerous opportunities out there to run gaming operations and hasn't done a very good job of it," said Busch, a longtime slots opponent who nonetheless pushed the referendum bill through last year.
"Certainly, the state doesn't want to grant licenses to someone who fails," he said, because the state's education budget is the chief beneficiary of any slots revenues.
Jeffrey Hooke, a Bethesda-based investment consultant who analyzes gambling issues, said such concerns could be eased if Magna partnered with an established gambling operator such as MGM or Steve Wynn.
