Penn National pulls out of Rosecroft purchase

One week after learning that Rosecroft Raceway was excluded in possible plans to add slot machines at five sites in Maryland, Penn National Gaming has announced it is no longer interested in purchasing the harness track. Penn National had reached a purchase agreement with Cloverleaf Enterprises in August to buy the track for an undisclosed price, and in September issued a release that it had “executed a definitive agreement for its previously announced acquisition of Rosecroft Raceway.”

In a statement issued Tuesday, Penn National said the legislative decision to provide the opportunity to add slot machines at only Ocean Downs and Laurel Park Thoroughbred track meant that “Rosecroft, which already has been operating at a loss, will be denied the opportunity for an alternative revenue source that would enable it to compete with other tracks in the state and racing and gaming venues in neighboring states.

“Reflecting this development and other factors, Penn National Gaming has decided, pursuant to its rights under the purchase agreement, not to move forward with its acquisition of Rosecroft Raceway.”

Voters in Maryland will decide next November whether to add 15,000 machines at five sites: the two racetracks and three other locations. Under the proposal, Rosecroft Raceway will receive 20 percent of the slots revenue that would go to the Standardbred industry.

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