Magna positions itself for Md. slots

Troubled company's moves fuel optimism on keeping Preakness

Sun Exclusive

"I assume all those big players would want to get into this market," Hooke said. "And because of the way [Magna] is leveraged and some of the operating issues that they've had, they could use a partner with deep pockets."

One potential hurdle to attracting established gambling operators is a profit-sharing deal struck by Magna in 2002 with Pimlico and Laurel's former owners, led by De Francis. That deal would guarantee the former owners a majority of slots profits at Laurel during the decade after "alternative gaming operations" commence - and a smaller stake for the subsequent 10 years.

De Francis says he and his partners are "very open" to a "restructuring or retooling" of that agreement if it "might facilitate an experienced and well-financed gaming company ... entering the picture and strengthening Laurel's bid for Anne Arundel's license."

He said one option might be for the De Francis-led team to share its profits with the gambling partner.

Regardless of what happens with the referendum, Miller said yesterday that the state will not take chances with the Preakness. He said he lacked faith in Stronach's financial health and vowed that the General Assembly would not rely on the Canadian's commitment to the race.

"The Preakness is going to stay in Maryland, no matter what," Miller said, likening the prospect of losing the race to the still-lamented departure of the Baltimore Colts to Indianapolis in 1984. "Mr. Stronach is a fine man, but he's a Canadian. And he can keep what belongs to Canada, but we're going to keep what belongs to Maryland in Maryland."

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Sun reporter Laura Smitherman contributed to this article.