The restriction imposed by the 2002 deal on any new owner "places a considerable cloud over the amount that prospective purchasers may be willing to attribute to such [an alternative gambling] revenue stream," Magna said in court papers.
It is in the best interest of Magna to terminate the deal and "remove this perceived risk and to provide clarity in connection with the auction process."
Under the agreement reached at the time of Magna's acquisition of the Laurel track in 2002, Joseph De Francis, his sister, Karin, and others would receive 65 percent of pre-tax slots profit during the first five years, 50 percent for the next five years and 40 percent in the following decade. Twenty years after the debut of slots, Magna would keep everything.
The potential for Joseph De Francis to profit from any gambling operation in Maryland had been a sticking point for some legislators as debate over the legalization of slots raged on for years before voters approved them in a referendum in November 2008. The state law authorizing slots in Maryland gives operators a 33 percent share of slots proceeds, among the lowest in the nation.
Since its slots bid was rejected, Laurel's owner has waged a legal battle to get it reinstated. That effort stalled after Maryland's highest court ruled that Magna does not have a case until a license is awarded, and then it must take its protest to the state contracting board.
The Anne Arundel County Council is scheduled to consider two proposals Dec. 7. One would rezone the mall area and allow the Cordish plan to move forward if the company also wins a state slots license, but another would put the casino in an industrial area south of Route 32, which includes Laurel Park. Cordish has no interest in that area.
Gov. Martin O'Malley has said repeatedly that he would prefer to have slots at horse tracks, where patrons already are allowed to gamble. He has publicly urged the County Council to act - either for or against the mall project - saying that the slots program needs to move forward.
John Franzone, chairman of the Maryland Horse Racing Commission, said Wednesday that he's not sure whether the profit-sharing deal is relevant anymore, since the state has prescribed a certain share of slots proceeds for operators.
"To me, that's just another sideshow to this whole exercise, because in my mind, in order for the [Maryland] racing program to be successful, we need to have slots come back to Laurel," Franzone said. "The whole genesis of this thing was slots and racetracks."
Meanwhile, potential bidders for the Maryland tracks have until Nov. 2 to submit bid proposals to Magna, with the requirement that buyers keep the Preakness Stakes, middle leg of racing's Triple Crown, in Maryland.
Magna will submit to the court a lead bid for the two tracks Nov. 9.
Two Maryland developers, David S. Cordish and Carl Verstandig, have reiterated their interest in bidding on the tracks and the Preakness.
A Magna attorney said during a hearing this month that De Francis and other former owners also were interested in bidding. However, De Francis was more circumspect when asked in a previous interview of his interest in buying back the tracks. He said he and other former owners submitted several proposals to Magna to recapitalize the Maryland tracks.
Baltimore Sun reporter Laura Smitherman contributed to this article.
