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Magna Entertainment Declares Major Losses in First Quarter
ONTARIO, CANADA --
Magna Entertainment declared a first quarter loss of $46.5 million yesterday, demonstrating once again the straits in which the horse racing industry finds itself. Last year, the company had a first quarter profit of $2.5 million.
Magna, a racetrack operator based in Ontario, owns some of the biggest tracks in the United States, including Santa Anita Downs, Laurel Park, and Gulfstream Park.
The quarterly losses were attributed to a big loss in on-track betting at Laurel, steadily weak business at Gulfstream, and eight lost racing days at Santa Anita due to weather and difficulties with the track's new synthethic surface.
Losses were also incurred by a failed attempt to get vidoe lottery games legalized at the company's Oregon track, and closing ventures in Austria and Dixon, California.
Revenue from the first quarter of 2007 to the same of 2008 dropped by almost $20 million, almost 10%. Maryland revenue from Laurel was down almost $4 million.
Magna has lost over $300 million in the last three years. With the value of the real estate of Santa Anita over $1.4 billion, speculation was made that the venue might be soon closed and converted to other uses.
Magna Entertainment Chairman Frank Stronach denied any plans to change course at Santa Anita, but noted that if Indian casino proliferation continues to draw business from tracks, anything might happen.
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