Vol. 7 • No. 49 • December 28, 2009, Cover Stories, UNITED STATES GAMING
Slots at the Mall
The Cordish Companies’ planned slot casino at Arundel Mills Mall cleared its final legal hurdle when the Anne Arundel County Council approved a necessary zoning change. And now David Cordish (l.) says the company may apply to run the casino slated for Baltimore.
Opponents vow to continue fight against casino
The Cordish Companies' planned slot casino at Arundel Mills Mall last week finally received the county zoning approval viewed as its final legal hurdle. Anne Arundel County Executive John Leopold signed the new zoning into law.
The planned 4,750-machine slot casino-a 215,000-square-foot facility, including a 125,000-square-foot gaming floor-had already received the sole slot license for Anne Arundel County from the Maryland Video Lottery Facilities Location Committee, but the County Council had repeatedly delayed a vote on a zoning change required to make the casino a reality.
The council had been under much pressure to deny zoning, as neighborhood groups protested a casino being placed close to their homes. One state lawmaker even submitted a bill to ban slots from within 1,500 feet of a mall, which would have essentially banned the casino.
Other opposition came from those still pushing for slots at the Laurel Park racetrack, also in Anne Arundel County. At the beginning of the bidding process, Anne Arundel was the only county in Maryland with competing bids for a license-one from Cordish; the other from Laurel Racing, the subsidiary of Magna Entertainment that runs the racetrack. Laurel Racing's bid was rejected because Magna failed to submit the required license fee along with its application-a decision Magna subsequently fought, unsuccessfully, in the courts. Magna is currently in Chapter 11 bankruptcy protection, and plans to sell the racetrack along with its other assets, including Preakness site Pimlico Race Course, at auction.
Two weeks ago, Joseph DeFrancis, former owner of the Maryland Jockey Club-the umbrella organization for Magna's two Maryland tracks, Laurel and Pimlico-announced his intention to submit a bid to acquire Laurel Park and Pimlico in Magna's bankruptcy auction, saying he hoped to revive the bid for slots at Laurel Park.
DeFrancis is one of six bidders for the Maryland Jockey Club. A Pennsylvania company, Blow Horn Equity LLC, became the latest suitor last week-also pledging to revive the slot quest.
Prior to the zoning vote, current MJC President Tom Chuckas predicted that slots at Arundel Mills will ultimately force Laurel Park to close.
Cordish, which is one of the other bidders for Laurel Park, has indicated it will opt for slots at its casino at Arundel Mills Mall even if successful at buying the track.
However, opponents to the slot casino at the mall have vowed to continue their fight. A group called Stop Slots at Arundel Mills has launched a petition drive to put the issue of slots at the mall up to a county referendum vote. Opposition groups would need to gather 19,000 signatures and file the referendum application within 45 days after enactment of the law, which was December 21.
Opponents of the mall plan claim the county's voters, who were pro-gaming in the statewide vote that authorized slot machines, likely anticipated that the Anne Arundel license would be granted to Laurel Park.
"The Maryland Jockey Club will fully support the counter initiative sponsored by the group Stop Slots at Arundel Mills Mall to bring this issue back to the voters of Anne Arundel County, who deserve the right to determine if a mall is what they wanted for gaming," Chuckas told the Associated Press. "We are going to continue to pursue all of our legal options and exhaust all means and measures to continue this fight."
The council also approved a second zoning bill that would expand the area zoned for slots to include Laurel Park, which would keep hopes alive to place slots at the track, in the unlikely event opponents of the mall plan succeed in derailing the project.
Leopold, who supports the Cordish plan, quickly vetoed that bill.
Cordish, meanwhile, is forging ahead with the Arundel Mills Mall plan. "Now we go to work," said CEO David Cordish in an interview with the Baltimore Sun.
He told the newspaper he will invest at least $300 million to build a first-class casino resort including top-tier restaurants and entertainment, and that he will consider opening a temporary casino while the permanent facility is under construction.
Cordish has predicted the permanent casino will be up and running by fall of 2011.
Cordish also announced last week that he is interested in the slot license for the city of Baltimore. Two weeks ago, the state commission rejected the application of Baltimore City Entertainment Group, citing the group's failure to meet deadlines for submitting plans and paying the license fee for the expanded slot floor it was planning. Cordish said he would be interested in that license, if the state would permit him to have two facilities.
"I would be very interested in Baltimore city if it was permissible," Cordish, whose company is based in Baltimore, told the bizjournals.com news service. "I love Baltimore city. Our company is in Baltimore city; we've been here for 90 years."
It would require an act of the Maryland General Assembly to grant Cordish his wish. The state's slot law does not permit dual-casino licensees.




