In a move that could bring peace to the politically fractious horse racing industry, Gov. Parris N. Glendening announced yesterday he will commit $10 million in state funds to increase racing purses in exchange for new promises of improved track facilities.
"We are getting commitments to ensure real improvements that will reverse years of decline and build a stable foundation for racing viability," Glendening said.
Joseph A. De Francis, controlling owner of Maryland's two thoroughbred tracks, acknowledged the agreement in a letter delivered to Glendening yesterday that es sentially shelves De Francis' persistent calls for legalizing slot machines and joins the governor in supporting a new thoroughbred track in Western Maryland.
De Francis said he is preparing a plan for "substantial" physical improvements to his Laurel and Pimlico racecourses "which does not rely on slot machines in any way."
In his letter, De Francis said he would not oppose the state's licensing of a new thoroughbred racetrack and off-track betting parlor in Western Maryland.
"We acknowledge your position," De Francis said in the letter, which was released by the governor's office, "though we do not necessarily concur with it, that greater competition would be healthy for Maryland's racing industry."
Glendening supports efforts to authorize development of the third track -- presumably at a location near Cumberland. William M. Rickman, a Montgomery County builder and president of Delaware Park racetrack, has announced his interest in building a new track and off-track betting facility there.
De Francis and Glendening have clashed sharply in the last two years over the slots issue, with the governor standing firm in his opposition to bringing any form of casino-style gambling to Maryland.
The agreement, under negotiation for a month, could ease their potentially damaging battle.
Burned bridges
The racing industry leader spent hundreds of thousands of dollars during last year's gubernatorial race to generate public support for slot machines at Maryland tracks.
Widely perceived as support for Ellen R. Sauerbrey, the losing Republican gubernatorial candidate, the ads left racing without an ally -- and perhaps an enemy -- in the governor's office.
The agreement announced yesterday provides that the $10 million in state aid could not be used to finance similar political efforts in the future.
Key legislators said they were heartened by the apparent truce between the governor and the state racing industry's most prominent leader.
"I applaud the governor and Joe De Francis for coming together in a way that will benefit the existing racetracks and the racing industry," said House Speaker Casper R. Taylor Jr., a prime backer of a third state track to be sited in Allegany County, his district.
"It will revitalize and ensure the future of thoroughbred horse racing, as well extend it to Western Maryland."
During recent negotiations, Glendening met personally with officials of Rosecroft -- the harness track in southern Prince George's County, but talks with De Francis were handled by a staff member, according to an aide.
The state's two harness tracks -- the other one is Ocean Downs on the Eastern Shore -- will get 30 percent of the $10 million for enlarged race purses.
Agreeing to disagree
Glendening's unhappiness with De Francis and the owner's unyielding response had been seen as an obstacle to ultimate agreement. But yesterday both sides were agreeing to disagree in principle -- and to move forward in practical terms.
"I want you to know," De Francis wrote, "that I very much appreciate your substantial and consistent efforts to improve Maryland racing without resorting to slot machines."
The governor also seemed intent on putting the feud behind him.
"This is the time to look forward, not with slapdash solutions, but with a sound strategy that recognizes the noteworthy role of racing in Maryland's history," Glendening said.
The governor and General Assembly have approved spending $18 million in state funds for the racing industry over the last two fiscal years, most of it earmarked for supplementing race purses. The new $10 million installment would become available after July 1, the start of the next fiscal year.
But Glendening had said earlier this year he would not provide more state money for purses unless a way was found to introduce new competition to racing -- with a new state-sponsored track, for example, or by bringing in new owners.
Glendening had spent much of the legislative session searching for a way to help the rest of the racing industry -- horsemen, breeders and others -- without helping De Francis.
De Francis said in the letter that he "acknowledges [the governor's] concern that Pimlico and Laurel have expended substantial resources to promote slot machines" at the expense of efforts to market the tracks.
Glendening may propose including the $10 million purse grant in pending legislation that authorizes use of $500,000 in uncashed wagering slips for the Maryland Million, a race for Maryland-bred horses.
Even without lottery
The money, Glendening said, will come from "excess lottery revenue," meaning the funds would be available if the state collects more money from its lottery games than projected. Aides said, though, that the governor intended to finance the purse supplements, whether or not the lottery figures exceed revenues.
Under Glendening's proposal, no purse money would be released until the state's thoroughbred and harness tracks submit plans for improving their facilities, operations and marketing. Such plans would have to be approved by both the governor and legislative leaders.
De Francis did not offer any details about his plans for improving Laurel and Pimlico. A spokesman said De Francis would have no comment yesterday.
The $10 million will be shared by the thoroughbred and Standardbred, or trotting, tracks, splitting it 70-30. Eleven percent is to be used for races featuring only Maryland-bred horses.
Pub Date: 3/30/99