Magna Entertainment Corp. (“MEC”), based out of Canada, has grown to be the largest racetrack owner in North America. Although it has reached this stature it has not become immune to decreasing economy and the woes faced by many casino owners.

Recently this simulcast race track owner and operator has filed for Chapter 11 bankruptcy. In order to protect themselves they are also withdrawing from their shares being traded on the NASDAQ stock exchange in New York.

Currently an MEC owns and manages seven thoroughbred racetracks. They include Santa Anita Park, Gulfstream Park, Pimlico Race Course, Laurel Park, Golden Gate Fields, Thistledown, and Portland Meadows. Complete the 10 venues they also own to racetracks which run thoroughbred and standardbred meets. These are the Lone Star Park at Grand Prairie and Remington Park. Lastly, they have one standardbred harness racing track: the Meadows.

Aside from these venues are also offer one of the largest simulcast wagering venues, as well as three casinos operated within three of the racetracks.

Magna also has a large off-track betting facility as well its own wagering business XpressBet™. This system allows customers to place phone bets in online bets throughout the 100 North American racetracks, and the world. To reach expands throughout the world including Australia, South Africa and Dubai. With the growing European market, have also created a wagering account called Magnabet™. By expanding throughout the world this has made them one of the largest owner operators for horse racing.

According to The Columbus Dispatch: “In a homestretch run to save the state’s flagging horse-racing industry, the Ohio State Racing Commission sent lawmakers a proposal today to allow 14,000 video slot machines at the seven racetracks across the state.”

“The commission estimated that by 2013, electronic slots at racetracks would generate $1.3 billion after winnings are deducted. Of that, $625 million would go to a special education fund for primary and secondary schools; agents at the racetracks would keep $650 million in commissions.
The hopes of this venture would be to draw more money into Ohio. The government is not blind to how much this will help the situation.

“Thomas M. Zaino, a commission member and the state’s former tax commissioner, said during a meeting at Beulah Park in Grove City that the proposal isn’t ‘a panacea for Ohio’s economic woes or school-funding challenges. … While adding such gaming will save Ohio’s horse-racing industry, it will certainly not save Ohio.”

As the need for this influx of capital increases, the terms of which it is generated appears to be more loose. “Zaino contended that the General Assembly and Gov. Ted Strickland could approve the slots proposal without a public vote.”

“Unlike video-slot and gambling proposals rejected by Ohioans in the past several years, the commission wants to have a state agency – the commission itself, the Ohio Lottery Commission or a new entity – and not a private company manage and regulate gambling operations. An estimated 150 additional state employees would be needed.” With this new idea, many people will be able to access new jobs in an already tight economy. The need for casinos, whether land based or online appears to be making it’s way to the forefront these days and the need for jobs and money increases.
“The tracks would have to pay $50 million apiece over two years to become licensed agents for slot-machine operations…”