Pimlico's Future Uncertain

According to Magna Entertainment, the parent company of Pimlico and Laurel Park, said that the future of the company is uncertain at this time. They said that they had tripled their fourth quarter loss to almost $43 million and was not sure how they could continue to sustain themselves.

They suffered dramatic losses last year of more than $113.7 million, and this was after their debt reduction plan was put into place. They have already sold off their real estate holdings and their no-core racetracks, but things are not looking good for the company at this time.

They have been carrying a long term debt of more than $879 million with about a fourth of it coming due this year. They had asked Maryland voters to consider allowing slot machines at the tracks as they said that there was no way that they would be able to continue if they did not get them.

They need the additional money for their purses, and thus to lure in horses and players back to the track. However, so far they have not gotten the slot machines that they so desperately need.

They will get another shot at it this November when residents vote as to whether or not to allow slot machines to be legalized in Maryland. The entire horse racing industry in the state has taken a beating with their neighbors all allowing slot machines at their tracks. Maryland’s tracks say that they cannot compete at the same level without the slot machines and are asking for their assistance.

 

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