Representatives from Penn National Gaming have been in the area this week to look at the possibility of attempting to purchase Lone Star Park.
Global Gaming Solutions, which is owned by the Chickasaw Nation of Oklahoma, has been indentified as having the “stalking horse,” or high, bid for Lone Star, which is being sold as part of the bankruptcy of Magna Entertainment. The Chickasaws have put $27 million on the table.
But others have until Monday to qualify to make bids.
“Penn National, I think, has a real interest,” said Grand Prairie Mayor Charles England, explaining he met with three representatives from Penn National this week. Two weeks ago, Penn National was the underbidder, after being the stalking horse, in the sale of Thistledown in Ohio. The bankruptcy court approved the sale of Thistledown to Harrah’s for $89.5 million, with much of that contingent on gaming.
Penn National Gaming operates Zia Park, Charles Town and, of course Penn National, as well as Freehold Raceway and Bangor Raceway, which are harness tracks. The company also owns and operates 11 casinos.
“They have a lot of money,” England said about Penn National. “They know something about racing, and gaming, too. They can be a player if they want to be.”
The question, of course, is how much they want to play. A Penn National representative who was in Texas Monday didn’t return numerous phone calls to answer that question, and so I’m left wondering.
Frankly, Texas is rife with gambling – but most of it, for whatever reason, is positioned so that little of its revenue ever finds its way to the state’s horse industry or racetracks. You can drive down the street from Lone Star Park and stop at any of several convenience stores or gas stations and buy lotto tickets and scratch off tickets galore. In fact, you can buy a lotto ticket at more than 2,000 locations in the state; you can bet on a horse in only a few. The state is in the gaming business and makes sure its game has a huge advantage in distribution.
A lottery ticket, of course, is nothing but a slot machine without the lights. But there are luminous slot machines, too, within a mile or two of Lone Star. They’re not technically slot machines, of course, for such sinful things aren’t legal in Texas; they’re eight liners. Eight liners look and act much like slot machines; only you can’t win money playing them (wink, wink). Anyway, they’re very common – six-figure common, based on at least one estimate.
Of course, you can drive right by the lotto and the eight liners, and when you get home you can make your investments by getting on your computer. Yes, even here in Texas, you can bet on tonight’s baseball game, on the weekend’s football games or even on the feature race at Belmont Park. Of course, betting online is illegal in Texas, but nobody seems to notice, for purposes of sanctimoniousness. Bookmakers probably don’t exist either, also for purposes of sanctimoniousness, but if your computer is down you could easily find one to call.
Most important, none of the action – from the lotto or the eight liners cum slot machines or the Internet or the friendly neighborhood bookmaker – ever gets back to the racetracks, which means the money doesn’t ever get to the horsemen. That’s why purses have been declining in Texas, why horsemen and horses have been leaving and why the state’s horse industry is moribund. That’s also the reason I would have liked to ask somebody at Penn National why the company would want to be a player in Texas.
Why at this point would anybody? It doesn’t make any sense, except as part of a long-term vision. The Chickasaws are heavily invested in the region, and so for them it could make sense, I suppose. But does it make sense for Penn National? The answer should come soon.


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