Plainridge Park Casino

Plainridge Park Casino
Location Plainville, Massachusetts
Owned by Penn National Gaming
Date opened March 17, 1999
Race type Harness racing
Course type Flat
Live racing handle $1.5 million (2011)[1]
Official website

Plainridge Park Casino is a harness racing track and slot machine parlor in Plainville, Massachusetts, owned and operated by Penn National Gaming.

History

Background and license (1990s)

In 1997, Massachusetts's only harness racing track,[2] Foxboro Park, was closed after a legal dispute between its owner, Robert Kraft, and its operator, Charles Sarkis.[3] Two competing plans to resurrect the sport were soon brought before the Massachusetts Racing Commission, with Kraft seeking to reopen Foxboro under a new operator, while Gary Piontkowski, who had managed Foxboro under Sarkis, proposed to build a new track at a 90-acre site in Plainville.[4] Kraft withdrew his application weeks later,[5] however, leaving Piontkowski as harness racing's only hope in the state.

The Racing Commission issued a conditional license for Piontkowski's proposed track in November 1997, with a targeted opening date of May 1998.[6] Piontkowski would purchase the land for $4.5 million, and buy an existing 40,000-square-foot building to use as the grandstand.[7] The project would be financed by an $11 million loan from Cornerstone Capital.[7]

Piontkowski's application ran into trouble when the Commission found that Cornerstone had never actually committed to the loan, and that Piontkowski might have used a loan broker who had since been imprisoned for bank fraud.[8] The project was nevertheless granted a two-month extension of its financing deadline, raising criticism that commissioners were being too lenient with Piontkowski, who had previously served as the Racing Commission's chairman.[9] By April 1998, the commission approved a new financing plan, with ownership of the track to be shared by nine investors, with Piontkowski holding a 15% share.[10]

In May 1998, a neighboring landowner filed a lawsuit seeking to nullify the track's building permit,[11] prompting Piontkowski to suspend construction and push back the track's debut to the next season.[12] The lawsuit was later settled out of court.[13]

A new application was filed in October 1998,[14] under which the purchase of the land and construction of the track would be financed by real estate developer Lou Giuliano, who would lease the track to Piontkowski's company for $1 million per year.[15] The Racing Commission approved the license in November.[16]

Opening (1999)

The track opened for simulcast wagering on March 17, 1999,[17] and held its first day of live racing a month later on April 19.[18]

Plainridge faced criticism from the beginning, with industry observers and Racing Commission chair Robert Hutchinson arguing that the track's live racing schedule was nothing but an excuse to justify a lucrative off-track betting operation and a potential racino; a large room in the grandstand was set aside for the installation of as many as 400 slot machines.[19]

Around July 1999, a rift grew between Piontkowski and Giuliano over management of the track.[20] Giuliano then applied for a license to operate the track himself in 2000, claiming that Piontkowski's lease was valid only until December 31, 1999.[20] The commission found that Giuliano did not actually own the land, but only held an option to buy it from a Boston investment company, Realty Financial Partners (RFP), which had financed the purchase.[21] Piontkowski's company was approved to retain the license, subject to the condition that it obtain financing the buy the track from RFP.[21] After Giuliano failed to exercise his option to buy the track, RFP claimed control and served an eviction notice on Piontkowski.[22] A deal was soon reached for Piontkowski's group to buy Plainridge from RFP for $13.6 million, to be partially financed by Anchor Gaming.[23] The sale was completed in May 2000.[24]

In the wake of their dispute, Piontkowski and Giuliano filed dozens of lawsuits against of each other, with proceedings lasting through 2005.[25] Giuliano initiated multiple attempts to develop a nearby competing harness racing track,[26][27] none of them successful.

Addition of slot machines

Piontkowski consistently supported proposed legislation to authorize slot machines at the state's four racetracks, touting plans for a $180-million expansion of Plainridge.[28] Discussions were held with major gaming companies about developing a casino at the track,[29] but the site was seen as having limited potential due to its proximity to the Mashpee Wampanoag Tribe, who were likely to develop a casino under any expanded gambling regimen.[30] In 2008, Piontkowski was credited with killing a casino bill pushed by Governor Deval Patrick because it had no provision for racinos.[30]

In 2011, the state finally enacted casino legislation, authorizing up to three resort-style casinos and one slots-only facility.[31] The slot parlor provision originated as a compromise between House Speaker Robert DeLeo, a staunch advocate of racinos, and Governor Patrick, who opposed allowing slot machines at racetracks without a competitive bidding process.[32] Plainridge was the state's first gaming applicant, submitting its $400,000 application fee as soon as the process opened.[33] Piontkowski stated that the track could not continue live racing without the additional revenue of slot machines;[34] one of the track's owners said the site could otherwise be redeveloped as a shopping center.[35]

The track began construction of a 1,000-car parking garage in late 2012, hoping to demonstrate to the Gaming Commission that its proposal would be the quickest to open and begin generating tax revenue.[36]

In early 2013, state investigators found that Piontkowski had taken over $1 million in cash from the track's money room over the years; the distributions were recorded on the company books, but had not been approved by the track's majority owners.[37] As a result, the owners pushed Piontkowski out as president, and bought out his shares.[38] The track's new president vowed to change the organization's "culture",[38] but the Gaming Commission called the changes "way too little, way too late", and disqualified Plainridge's application for a gaming license in August 2013.[39]

New hope for the track emerged weeks later, when Penn National Gaming, fresh off a failure to win approval for its proposed slot parlor in Tewksbury, reached a deal to pursue a gaming license at Plainridge, with an option to buy the track if its bid were successful.[40] Plainville voters soon approved the slots plan by a margin of 3 to 1 in a town referendum, required as a condition of licensing.[41]

Penn National was awarded the gaming license in February 2014. The bid overcame competition from two other applicants, a Cordish Company slot parlor proposed for Leominster, and a former greyhound racing track in Raynham.[41]

The slot parlor held a soft opening for invited guests on June 22, 2015,[42] and opened to the public on June 24.[43]

See also

References

  1. ↑ Review of Massachusetts State Racing Commission and Industry (PDF) (Report). Massachusetts Gaming Commission. July 16, 2012. p. 7. Retrieved 2013-09-16.
  2. ↑ Ken Ward (November 8, 1996). "Bangor Raceway makes small profit; seeks 27 dates". Bangor Daily News.  – via NewsBank (subscription required)
  3. ↑ Bernard J. Wolfson (August 1, 1997). "Race is over for Foxboro Park track". Boston Herald.  – via NewsBank (subscription required)
  4. ↑ Ed Gray (October 2, 1997). "Dates sought for Foxboro". Boston Herald.  – via NewsBank (subscription required)
  5. ↑ Bernard J. Wolfson (October 22, 1997). "Kraft scratches deal for Foxboro Park". Boston Herald.  – via NewsBank (subscription required)
  6. ↑ Ed Gray (November 15, 1997). "Plainville granted provisional license". Boston Herald.  – via NewsBank (subscription required)
  7. 1 2 Ron Indrisano (December 2, 1997). "Harnessing his dream: Piontkowski banks on track". Boston Globe.  – via Factiva (subscription required)
  8. ↑ Steven Wilmsen; Tina Cassidy (December 21, 1997). "Ex-racing official's bid to build Plainville track under scrutiny". Boston Globe.  – via Factiva (subscription required)
  9. ↑ Tina Cassidy (January 16, 1998). "Piontkowski gets extension to find lender for race track". Boston Globe.  – via Factiva (subscription required)
  10. ↑ Ken Ward (May 1, 1998). "Investors hope to open Massachusetts track". Bangor Daily News.  – via Factiva (subscription required)
  11. ↑ "Racetrack plans blocked". Associated Press Newswires. May 13, 1998.  – via Factiva (subscription required)
  12. ↑ Tina Cassidy (May 21, 1998). "Piontkowski withdraws, to reapply in fall for race track". Boston Globe.  – via Factiva (subscription required)
  13. ↑ "Hope for harness racing in Massachusetts?". Associated Press Newswires. October 2, 1998.  – via Factiva (subscription required)
  14. ↑ Ron Indrisano (October 2, 1998). "Two more apply for dates". Boston Globe.  – via Factiva (subscription required)
  15. ↑ "Harness track plan gains backer". Providence Journal. October 3, 1998.  – via Factiva (subscription required)
  16. ↑ "Harness racing track licensed in Plainville". Associated Press Newswires. November 14, 1998.  – via Factiva (subscription required)
  17. ↑ Ed Gray (March 18, 1999). "Piontkowski races to finish". Boston Herald.  – via NewsBank (subscription required)
  18. ↑ Ed Gray (April 20, 1999). "Plainridge harnesses big opening crowd". Boston Herald.  – via NewsBank (subscription required)
  19. ↑ Adrian Walker (March 25, 1999). "Casino gambling right on track". Boston Globe.  – via Factiva (subscription required)
  20. 1 2 Ron Indrisano (October 2, 1999). "Plainridge rift comes to light". Boston Globe.  – via Factiva (subscription required)
  21. 1 2 Ron Indrisano (November 16, 1999). "Plainville granted license". Boston Globe.  – via Factiva (subscription required)
  22. ↑ "Piontkowski told to get out; vows to fight eviction order". Portsmouth Herald. AP. February 1, 2000. Retrieved 2013-09-07.
  23. ↑ Michael Rezendes (March 1, 2000). "Plainridge racetrack to be sold". Boston Globe.  – via Factiva (subscription required)
  24. ↑ "Racecourse is sold to investment group". Boston Globe. May 18, 2000.  – via Factiva (subscription required)
  25. ↑ Robert Preer (March 31, 2005). "Harness track operator wins lawsuit". Boston Globe.  – via Factiva (subscription required)
  26. ↑ Robert Preer (November 27, 2003). "Harness track proposal gets initial OK". Boston Globe.  – via Factiva (subscription required)
  27. ↑ Lisa Kocian; Emma Stickgold (April 4, 2004). "Businessman proposes harness track". Boston Globe.  – via Factiva (subscription required)
  28. ↑ David Cutler (March 16, 2006). "Racecourse to expand simulcasts". Boston Globe.  – via Factiva (subscription required)
  29. ↑ Matt Viser (May 28, 2009). "Fresh faces join push to build casinos in Bay State". Boston Globe. Retrieved 2013-09-14.
  30. 1 2 Ralph Ranalli (May 4, 2008). "Track owner emerges in casino debate". Boston Globe. Retrieved 2013-09-14.
  31. ↑ Dan Ring (November 22, 2011). "Massachusetts Gov. Deval Patrick signs bill to establish up to 3 casinos, 1 slot parlor". The Republican. Springfield, MA. Retrieved 2013-09-14.
  32. ↑ Glen Johnson (August 4, 2010). "Mass. gov says he'll never support no-bid slots". Boston Globe. AP. Retrieved 2013-09-14.
  33. ↑ Heather Wysocki (August 10, 2012). "State receives first slot parlor application". Cape Cod Times. Retrieved 2013-09-14.
  34. ↑ Mark Arsenault (February 6, 2012). "Old foes gird for slots parlor fight". Boston Globe. Retrieved 2013-09-14.
  35. ↑ Scott Van Voorhis (January 27, 2011). "Racetrack owners betting on slots approval". Boston Globe. Retrieved 2013-09-14.
  36. ↑ Mark Arsenault (December 31, 2012). "Plainridge racetrack gambling on slots parlor bid". Boston Globe. Retrieved 2013-09-14.
  37. ↑ Mark Arsenault (July 25, 2013). "Cash flow at Plainridge raised alarm". Boston Globe. Retrieved 2013-09-14.
  38. 1 2 Mark Arsenault (July 26, 2013). "Plainridge track partner says former president Piontkowski 'pulled a fast one'". Boston Globe. Retrieved 2013-09-14.
  39. ↑ Mark Arsenault (August 6, 2013). "Mass. denies Plainridge Racecourse's slots bid". Boston Globe. Retrieved 2013-09-14.
  40. ↑ Mark Arsenault (September 3, 2013). "Company in deal to buy Plainridge Racecourse". Boston Globe. Retrieved 2013-09-14.
  41. 1 2 Mark Arsenault; Ellen Ishkanian (September 11, 2013). "Mixed results for gaming proposals in Mass.". Boston Globe. Retrieved 2013-09-14.
  42. ↑ Sean P. Murphy (June 22, 2015). "Plainridge Park Casino on target for Wednesday opening". Boston Globe. Retrieved 2015-06-22.
  43. ↑ Sean P. Murphy (June 24, 2015). "Plainridge Park Casino officially opens its doors". Boston Globe. Retrieved 2015-06-24.
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