By John Wagner
Washington Post Staff Writer
Sunday, August 3, 2008
This report is one in a series on the five potential locations for slot machine gambling in Maryland.
BERLIN, Md. -- A crowd dominated by families filed into the stands of Ocean Downs on a recent breezy night, with adults sipping beers and comparing wagers as children scurried down toward a low fence that separated them from the standardbreds circling the half-mile oval.
The atmosphere at the horse track here on Maryland's Eastern Shore seemed a throwback to a generation past, not unlike a minor-league baseball park built during the middle of the last century. But a prominent sign in the infield, advertising another track in Delaware operated by the same Washington area owner, provided a not-so-subtle hint of a possible future.
"Slots," it shouted. "Experience the difference!"
In November, Maryland voters will be asked whether to authorize up to 15,000 slot machines at five venues across the state, resolving a bitter fight that has paralyzed Annapolis politicians for years. Ocean Downs, which opened in 1949, is among two existing racetracks that could be eligible for a share of the machines -- up to 2,500 -- if voters statewide give their blessing.
If slots come to the track, there is no dispute that things will be different. Whether the change would be for the better is a matter of fierce dispute.
Hotel and restaurant owners in the neighboring tourist town of Ocean City have emerged as the most vocal opponents of the plan, claiming that slots at Ocean Downs could undermine their businesses and quality of life.
Among the staunchest advocates are the drivers at the harness track, who guide the trotters and pacers competing at Ocean Downs from carts attached behind them. Like others in Maryland's racing industry, they argue that their days are numbered without slots.
Maryland is surrounded by states -- Delaware, West Virginia and Pennsylvania -- that supplement their racing purses with slots proceeds.
"It would mean a lot, especially here on the Eastern Shore," said W. David Hill III, a longtime driver whose arm was bandaged from a spill during a race the week before. "A lot of these boys are barely hanging on. Delaware's got all the money. Their purses are humongous compared to here."
A study released last fall by the pro-slots administration of Maryland Gov. Martin O'Malley (D) found that the average prize money at a comparable track in Delaware was nearly 10 times that of Ocean Downs, where purses averaged $22,000 nightly.
Although the largest share of Maryland's proceeds would support education and other state services, the plan being put to voters calls for using 7 percent -- up to $100 million a year -- to enhance purses at Maryland tracks, including those without slots on site, and to subsidize the horse-breeding industry. An additional 2.5 percent of the proceeds, estimated at $25 million a year, would be made available as "racetrack facility renewal" grants for in-state tracks.
The precarious financial situation of Maryland's industry was underscored by last month's decision to suspend twice-weekly live racing at Rosecroft Raceway in Prince George's County. That left Ocean Downs, with a summer season of 40 nights, as the only Maryland harness track with regularly scheduled races.
More common thoroughbred races, in which horses are ridden by jockeys, still take place at Laurel Park in Anne Arundel, Pimlico in Baltimore and, to a limited degree, the State Fairgrounds in Timonium.
Whatever woes are afflicting the racing industry, many business leaders in Ocean City say they are convinced that adding slots is not the solution, at least not in their community.
Mark Leiner, a restaurant owner and president of the 850-member Greater Ocean City Chamber of Commerce, argued that slots five miles west would threaten many existing businesses, with tourists spending discretionary dollars on slots rather than homegrown restaurants and stores.
"Money that slots takes in is money that's sucked out of the community," said Leiner, whose restaurant, the Bonfire, boasts of a "renowned all-you-can-eat buffet" with seafood, steaks and ribs.
Leiner and other members of the Ocean City chamber -- whose formal position against slots is at odds with the state chamber's -- also say expanded gambling and the social ills it could usher in are inconsistent with the area's character.
"We've spent 50 years promoting ourselves as a family town -- spending time on the beach, playing miniature golf, going out to dinner," Leiner said. "Gambling just doesn't belong in the mix."
During a special session last fall in which the General Assembly agreed to put slots on the ballot, lawmakers attempted to address some of the community's concerns about economic competition.
A provision inserted into the legislation significantly limits the additional financial activities in which the owners of Ocean Downs can engage if they hold a slots license.
No one with a financial interest in the racetrack would be permitted to build a hotel within 10 miles of the property. Nor can anyone build a conference center, convention center, amusement park or miniature golf course -- or stage live music, dancing exhibitions or any other forms of live entertainment.
The legislation makes only two exceptions: fireworks, which are already an occasional feature at Ocean Downs, and "a single piano that is played by an individual."
A lobbyist for track owner William Rickman, a Potomac developer, agreed to the conditions during a legislative committee work session last fall.
No individual or facility is guaranteed a license if the referendum is approved by voters. But the legislation was clearly crafted with Ocean Downs in mind. It says that one of the five slots venues would be located in Worcester County within one mile of the intersection of Route 50 and Route 589, where the track is located.
Rickman took over Ocean Downs in 2001 and shortly thereafter completely renovated the track's clubhouse, which now features a sit-down restaurant called Pacers and rows of televisions that simulcast races from tracks across the country. Ocean Downs is open for betting on those races year-round from noon until midnight.
Speculation about Rickman's involvement in slots has become something of a parlor game itself.
Shortly after O'Malley was elected in 2006, companies affiliated with Rickman and his family gave more than $48,000 to O'Malley's campaign account and an account run jointly by O'Malley and running mate Anthony G. Brown. The donations, logged over just two days, were widely seen as a sign of Rickman's interest in having Ocean Downs included in any slots legislation offered by the governor.
Despite heavy courting by slots supporters more recently, Rickman has given no public indication that he intends to contribute to an O'Malley-backed ballot-issue committee that is working toward passage of the November referendum.
Rickman did not return a phone call seeking comment. During a reporter's recent visit to Ocean Downs, the track's publicity director gave a tour of the facility, including the stables where horses waiting to race were housed. But he declined to discuss slots or where on the property the machines might be located, referring questions to Rickman.
Under Maryland's legislation, slots operators would keep almost one-third of the proceeds, a smaller percentage than Delaware allows Rickman's track there to keep. Another potential Maryland location, in Cecil County, could capture some Marylander gamblers who would otherwise drive to Rickman's Delaware facility, if the issue is approved.
In a March interview, Rickman hedged when asked whether he planned to financially support the pro-slots effort in Maryland, and he cited polling showing majorities favoring the legalization of slots.
"It's going to take a lot of bad press to turn public opinion around," he said.
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