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Md. officials file appeal to contest slots ruling

Posted: Monday, March 30, 2009 6:00 PM

by John Scheinman

The Laurel Racing Association, a subsidiary of the Maryland Jockey Club and Magna Entertainment Corp., has filed an appeal with the state Court of Special Appeals contesting a lower court's ruling that upheld the LRA's disqualification from bidding on a license to operate slot machines.

Magna Entertainment, acting through the LRA, was disqualified on February 12 from bidding on one of five slots operating licenses being awarded in Maryland after failing to include a $28.5-million license fee required with its application submission. Although Magna subsequently placed the fee money in an escrow account with a bank, the Maryland Video Lottery Facility Location Committee voted 7-0 to disqualify its bid.

The Laurel Racing Association, which was seeking to operate 4,750 slot machines at Laurel Park, filed an appeal in Anne Arundel County Circuit Court, arguing the language in the request for proposal did not explicitly state whether the license fee would be refunded should the company not win its bid. Judge William Mulford rejected the appeal.

Along with its appeal, attorneys representing the LRA also have filed a motion to bypass the Court of Special Appeals to have their case heard immediately by the Court of Appeals, the highest in the state.

With final proposals due on April 15 to the Maryland Video Lottery Facility Location Committee, the LRA wants to "expedite the proceeding because of the time-sensitive nature of the procurement process," LRA attorney Alan Rifkin said. "All parties want a swift resolution. The state [of Maryland] does not oppose the petition to the Court of Appeals and also will be joining in on a motion to expedite the proceedings."

Rifkin said that if the Court of Appeals declines to immediately take the case, the appeal will be contested in the intermediary court.

Rifkin said he believes the LRA has a strong case.

“Laurel Racing has taken an appeal from the Circuit Court’s decision. The court noted that it had to look past the clear language of the statute to ‘imply’ a refund right. The court’s reasoning is contrary to well-recognized rules of statutory construction.

“The language of the act is plain and unambiguous and a reasonable bidder could only rely on the actual language of the law. Laurel Racing will be asking the appellate court to take the case on an expedited basis.”

John Scheinman is a Maryland-based Thoroughbred Times correspondent