At an upbeat Walters Art Museum event to promote events leading up to the May 21 Preakness Stakes, O’Malley joined an Ehrlich official and a leading advocate of Maryland’s horse racing industry in saying that the viability of racetracks depends on slot machines.
The Democratic mayor said critics have questioned the morality of his position backing a limited number of slot machines at racetracks to help the industry compete and to keep the Preakness in Baltimore.
But, O’Malley countered, “Where’s the morality in doing away with 18,000 [Maryland] racing jobs?
“The Preakness is Baltimore’s version of the Super Bowl,” said O’Malley, who is expected to run for governor next year. “We need to rise above partisan politics.”
The setting of O’Malley’s comments – surrounded by the museum’s equine exhibit – seemed fitting considering the political jockeying that followed. Although Ehrlich’s economic development chief, Aris Melissaratos, spoke of cordial collaboration with O’Malley during the event, the governor’s office changed its tune later in the day.
“The mayor has flip-flopped on this issue, expressing quasi-opposition and quasi-support for months, if not years,” said Ehrlich spokeswoman Shareese N. DeLeaver.
“If Mayor O’Malley truly is a proponent of slots, then he needs to be a workhorse, not a show pony,” DeLeaver said.
The mayor’s rival for the Democratic nomination for governor, Montgomery County Executive Douglas M. Duncan, blasted O’Malley yesterday.
Duncan said in a statement: “The mayor had it right in February this year when he called slots ‘morally bankrupt.’ He has it wrong when he endorses Governor Ehrlich’s number one legislative priority.”
Duncan described slots as a “quick fix” that will increase crime, addiction and other social problems.
Racing industry kudos
O’Malley called slots “morally bankrupt” when Ehrlich proposed using them to finance education initiatives and balance the state’s budget. The mayor has said repeatedly that he supports legalizing a limited number of slots at racetracks to help the racing industry compete with surrounding states that allow the devices and are able to offer richer purses for horse races. He is also concerned about losing the Preakness.
The mayor’s comments received support from the racing industry at a time when Magna Entertainment, the Canada-based owner of Pimlico Race Course, says that without slots it will stop investing in the Northwest Baltimore track and its other course in Laurel.
“These are difficult and serious times for the horse industry,” said Joseph A. De Francis, president and chief executive officer of the Maryland Jockey Club, a Magna subsidiary.
At yesterday’s event, De Francis thanked the mayor for his longtime support for slots at racetracks. He also praised Ehrlich’s leadership on the issue.
Ehrlich’s proposed legislation to legalize slots has failed to pass the Democrat-controlled General Assembly for three consecutive years.
“We can only hope the legislature can level the playing field for us,” De Francis said. “We can’t compete without slots.”
‘Taken for granted’
He also thanked O’Malley for saying the Preakness is “taken for granted” by Marylanders.
“People made the same mistake with the Baltimore Colts,” the professional football team that left Baltimore in 1984, De Francis said.
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Magna Entertainment reported this week a first quarter loss of $4.1 million. The Aurora, Ontario, corporation, with 13 racetracks in the United States, Canada and Europe, has experienced $200 million in losses over the past three years.
The most recent loss in a quarter that is usually a profitable one for the company was blamed by Magna officials on various circumstances at its tracks in California and Florida.
Financial documents released yesterday by the Maryland Racing Commission showed that Pimlico Race Course was barely profitable last year and Laurel Park continued losing money in 2004. Pimlico had a net profit of $137,575, but that was more than $530,000 less than the previous year. Laurel lost more than $3.7 million in 2004. De Francis attributed all of the profit at Pimlico to the Preakness.
“The simple economics is that we make money on the Preakness and lose money the other 364 days of the year,” he said.
The financial documents also disclosed that De Francis earned $615,000 in his roles with the two tracks and his sister, Karin M. De Francis, earned $385,000 as executive vice president of the two courses.
‘Lightning-rod’ issue
Political observers differed on how O’Malley’s support will play with voters in the Democratic primary and the general election next year.
“O’Malley doesn’t want to be the guy who loses the Preakness,” said Donald F. Norris, a public policy professor at the University of Maryland, Baltimore County.
Norris said slots are never a determining issue with voters until politicians address it.
Lenneal J. Henderson, a professor at the University of Baltimore’s School of Public Affairs, said slots are “a lightning-rod political issue for people.” He also said that O’Malley’s position has been consistent and that the difference between O’Malley and Ehrlich is based on “scope and scale” – not “should we or shouldn’t we have slots.”
He said Duncan’s opposition is “convenient” because Montgomery County does not have a racetrack or the tradition of the Preakness and its economic impact.
Matthew Crenson, a political science professor at the Johns Hopkins University, said he does not think a slots position will determine who voters support.
“You’re not going to get a large majority voting on slots alone,” Crenson said.
Meanwhile, Aaron Meisner of stopslotsmaryland.com said the mayor’s position would be disastrous for the Park Heights community surrounding Pimlico.
“Where is the morality in putting slots in a neighborhood that is already struggling with addiction?” Meisner said.
“If he was doing the right thing for Baltimore, he would be opposing the introduction of slots at Pimlico.”
Sun staff writer Bill Ordine contributed to this article.
<!– ART CREDITJED KIRSCHBAUM : SUN STAFF
ART CREDIT–> <!– CUTLINE TEXTAt yesterday's Walters Art Museum event, Maryland Jockey Club President Joseph A. De Francis thanked the mayor for backing racetrack slots and praised the governor’s leadership on the issue.
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