Laura Duffy, The Examiner
2007-09-25 07:00:00.0
Current rank: Not ranked

BALTIMORE -

Magna Entertainment Corp. bought the remaining interest on the Maryland Jockey Club from De Francis Entities, which is owned by Joseph and Karin De Francis, for $18.3 million plus interest for the remaining shares of their 25 year-old family business on Monday.

“We agreed that the MEC would acquire the remaining pieces of this business five years ago,” Joseph De Francis said. “My sister and I have had five years to help the business and watch it succeed, our time is up. We all want the tracks to be successful. We’re emotionally involved with this business and Maryland.”

Magna Entertainment Corp. has full ownership of Baltimore’s Pimlico Race Course and Anne Arundel County’s Laurel Park after acquiring initial shares of both venues from the Maryland Jockey Club in November, 2002.

“We have intended to acquire the balance of the shares in the company,” Frank Stronach said, chairman and interim chief executive officer of Magna Entertainment.

However, Joseph De Francis said the Maryland Jockey Club will retain several of its current staff members, including Louis J. Raffetto Jr., the club’s president and chief operating officer.

“I have complete confidence in Louis and the team,” Joseph De Francis said. “The only thing I’m anxious about is the slot issue. I hope the playing fields can be leveled.”

Competing with states like Delaware and West Virginia that offer slot machines has created some financial obstacles for MJC. The club has acquired a significant amount of debt, which could be decreased by the addition of slot machines. If Maryland legalized slots, they would generate millions of dollars in annual revenue, said Senate President Thomas V. "Mike" Miller Jr. The additional revenue could increase victory purses on the track, which would help ensure the horse racing industry survives in Maryland, Miller Jr. said.

“We’re losing money to Delaware and West Virginia, as people travel out of Maryland to play slots,” Miller said. “We need to keep our money in our own state.”

As Maryland continues to prohibit slot machines, MEC has resorted to making money from its other locations. Magna Entertainment is North America’s largest operator of horse racetracks and off-track betting facilities. MEC also owns and operates casinos at several of its racetracks.

However, the lack of slot machines places Maryland at a disadvantage, said De Francis. But Stronach believes the company’s new Debt Elimination Plan, which emphasizes gaming and racing, will bring money back into Maryland.

“While thoroughbred racing in Maryland is currently facing many difficult obstacles,” Stronach said, “we remain optimistic.”

lduffy@baltimoreexaminer.com

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