Casino operator Penn National Gaming Inc. is considering selling its stake in the Maryland Jockey Club and urging its partners to drop a legal challenge to the bidding process that awarded a slot machine license for Anne Arundel County to a competitor.

The moves by Penn National might signal the company is shifting its focus to Rosecroft Raceway, the Prince Georges County harness-racing track it is buying for $11 million. Penn had set its sights on slots at Laurel Park, which is operated by the Jockey Club, and company officials have indicated that they also plan to push for the legalization of slots at Rosecroft.

Penn opened the states first casino in Perryville in September. The Hollywood Casino Perryville generated $7.7 million in slots revenue in January after reporting a loss from operations of $1.1 million for last year, including pre-opening expenses.

Rosecroft has suffered financially and stopped live racing to save money. The facility had been operating as an off-track betting site for two years before closing in July. Penn sees slots as a way to bring revenue to the ailing tracks.

article source