Rosecroft Raceway

The state is expected to mediate negotiations on a new simulcasting agreement between Rosecroft Raceway and representatives of Maryland's thoroughbred racing. A state law aimed at helping the ailing industry calls for state-led mediation if Rosecroft and the Maryland Jockey Club, along with thoroughbred horse owners and breeders, fail to reach a deal to broadcast thoroughbred races at the Prince George's County harness track by Friday. The parties have not made progress. Eric Schippers, a spokesman for Penn National Gaming, which owns Rosecroft, said Thursday that the company expects the talks to go into mediation.

The Maryland Racing Commission on July 6 is to consider a request to resume live harness racing at Rosecroft Raceway in Prince George's County after nearly three years. Rosecroft's new owner, Penn National Gaming, submitted a license application in May with hopes of resuming racing on July 1. The casino operator said it wanted to operate 20 days of live racing this year and 54 days next year. Penn National spokesman Eric Schippers said Wednesday that the company hoped to receive approval at the July 6 hearing and planned to modify the racing schedule.

Penn National Gaming said Tuesday that it is getting close to reaching an agreement to divest its stake in the Maryland Jockey Club, which operates Laurel Park and Pimlico Race Course , the home of the Preakness Stakes. Eric Schippers, a spokesman for Penn National, said final details are being worked out with Canadian real estate company MI Developments, the Jockey Club's majority owner. The two owners, which at times have appeared at odds on racing issues, have been in talks since early this year to restructure their joint venture to own and operate the tracks.

We on the editorial page have been strongly critical of Penn National since its entree into Maryland horse racing last year on the grounds that we believed they were interested solely in finding a way to bring slots to the tracks -- or block competition for their existing casinos nearby -- rather than actually making a go of horse racing. Fairness dictates, then, that we make note of the company's application this week for a license to resume harness racing at Rosecroft Raceway, which Penn National bought at auction in January for $11 million.

Penn National Gaming Inc. has completed its acquisition of Rosecroft Raceway, enabling the Prince George's racetrack to emerge from Chapter 11 bankruptcy. The racetrack's reorganization plan was dependent on the former owner of Rosecroft, Cloverleaf Enterprises Inc., to sell most of its assets, including the track. A bankruptcy judge approved Penn National's $11 million bid for the track in February, but the transaction was finalized Monday. However, the case is still wrapped up in court because a competing bidder, Landow Partners, wishes to submit a higher bid. A hearing is scheduled for March.

Landow Partners is asking a bankruptcy judge for permission to submit a bid for Rosecroft Raceway that is $1 million more in cash than casino operator Penn National Gaming's offer, which won approval last week. U.S. Bankruptcy Judge Paul Mannes approved Penn National's $11 million cash offer for the Prince George's County harness track after the two parties exchanged proposals to try to outbid each other at last week's hearing. Landow Partners, led by former state Democratic Party Chairman Nathan Landow, said the group did not increase its bid in the final round during the sale hearing due to a "misunderstanding," according to court documents filed Monday.

A bankruptcy judge approved Wednesday the sale of closed Rosecroft Raceway to casino operator Penn National Gaming for $11 million in cash over the objection of a group led by former state Democratic Party Chairman Nathan Landow. Wednesday's hearing essentially turned into another auction with last-minute maneuvering, as both parties upped their bids for the Prince George's County harness track before Penn National made its final $11 million offer. The proceedings also included the testimony of Democratic state Sen. C. Anthony Muse, who said he supports Landow Partners as the track's new owner because it would have the backing of the community and local and state lawmakers, especially when it comes to expanding gambling at the facility.

A jilted bidder is objecting to casino operator Penn National Gaming's $10.25 million purchase of bankrupt Rosecroft Raceway, arguing it had the higher and better offer at last week's auction. Landow Partners, whose principals include former state Democratic Party Chairman Nathan Landow, said the trustee overseeing Rosecroft's bankruptcy "did not exercise the appropriate business judgment and failed to obtain the maximum value" for the Prince George's County harness track, according to court documents filed Tuesday.

Bethesda developer Nathan Landow, a former state Democratic Party chairman, was the third bidder in the auction of bankrupt Rosecroft Raceway in Prince George's County. Landow confirmed Monday that he lost to casino operator Penn National Gaming, which agreed to pay $10.25 million in cash. Penn National said it would seek to resume live racing and lobby for slots at the harness track. Rosecroft is not one of the five designated locations for slots under a voter-approved referendum that legalized slot-machine gambling in Maryland.

Casino operator Penn National Gaming emerged Friday as the new owner of bankrupt Rosecroft Raceway and made clear its intentions to push for slot machines at the Prince George's County track and to restart racing there. Penn National agreed to pay $10.25 million in cash for the harness track in an auction, outbidding Baltimore lawyer and Orioles owner Peter G. Angelos and one other unidentified bidder, said Michael J. Lichtenstein, the attorney representing the bankruptcy trustee, who oversaw the private sale.