Penn National to buy Maryland harness racing track


PHILADELPHIA (AP) - Racetrack and casino operator Penn National Gaming Inc. on Friday agreed to acquire a Maryland horse track, marking its first entry into the state.

The Wyomissing-based company is buying Rosecroft Raceway, a harness racing facility in Fort Washington, Md., from Cloverleaf Enterprises Inc. for an undisclosed amount.


The acquisition will add a Maryland presence to Penn National's stable of East Coast properties in Pennsylvania, Maine, New Jersey and West Virginia.

Peter Carlino, Penn National's chief executive, said in a statement that Rosecroft will expand the company's pari-mutuel operations.

Pari-mutuel is a betting system typically used at greyhound racing, horse racing and jai alai facilities where the amount of money paid out to winners is based on the total pool of bets.

Penn entered a binding letter of intent to buy the harness racetrack after Cloverleaf's stockholder, Cloverleaf Standardbred Owners Association, formally voted to approve the deal.

Penn National still needs to complete due diligence, sign a definitive agreement and get approval from the Maryland Racing Commission. The company expects to complete due diligence and sign the agreement within about 30 days, and the acquisition should close shortly thereafter.

Penn National itself is being acquired by funds managed by Fortress Investment Group LLC and private equity firm Centerbridge Partners LP for $6.1 billion in cash. The deal is closing in 2008.

Penn National, with net revenue of $2.2 billion in 2006, operates 18 gambling facilities in the U.S. and Canada.

Shares fell by $1.89, or more than 3 percent, to $54.94 in morning trading amid a down market.