N.Y. rejects Scott’s bid for racing license

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In a move that could complicate a Las Vegas developer’s try to bring slot machines to Bangor Raceway, officials in New York on Friday refused to issue a racing license to Shawn Scott saying his participation in the industry would be “inconsistent with the public interest.”

The New York Racing and Wagering Board’s tersely worded ruling came at an especially inopportune time for Scott and his company, Capital Seven LLC, as he prepares for next week’s licensing hearing before the Maine Harness Racing Commission.

The ruling faulted Scott for, among other things, making false statements in connection with his New York license application.

“Your experience, character and general fitness are such that your participation in racing or related activities would be inconsistent with the public interest … or the best interests of racing generally,” reads the New York letter, received late Friday afternoon by Capital Seven officials.

The board’s denial presents a hurdle for Scott’s operations in New York, where he owns Vernon Downs, a harness racing track where he recently built the “Miracle Isle” gaming facility, home to 1,100 slot machines.

Scott has 10 days in which to file a request for a hearing before New York racing officials.

Scott’s spokeswoman, Christen Graham, moments after learning of the New York denial, said Scott would appeal the ruling and continue to focus on the Maine hearings beginning Monday.

“We are confident that we will meet Maine’s criteria and are focused on moving forward,” she said.

Scott’s Maine attorney, however, faulted the one-page letter for not including any specific examples on which to base its findings. Furthermore, he said he questioned the timing of the ruling considering the imminence of the politically charged Maine hearings.

“The timing is very unfortunate, and we don’t necessarily believe in coincidences,” said Augusta attorney Stephen Langsdorf, noting that word of the denial had been released to some news media within minutes.

“Honestly, we’re tired of trying this in the press,”

Langsdorf continued. “We’re eager for the [Maine Harness Racing Commission] to take a look at this.”

Commission members reached Friday declined to talk about the New York denial and what potential impact it could have on their decision.

“We’re so close to the hearing, I don’t think I should comment,” said commission member James Tracey. “We need to do what we have to do and get it done next week.”

In another racino-related development Friday, Capital Seven announced it has postponed the opening of its slots parlor at Bangor Raceway.

Instead of opening on Jan. 3, as planned, the facility now is slated to open Feb. 23.

Preparations for the installation of slot machines began last week at Bass Park, where the grandstand is being renovated to accommodate the first 250 of the 1,500 machines Capital Seven plans to install as part of its $30 million redevelopment.

The delay was announced as last-minute preparations were under way for the Maine Harness Racing Commission’s licensing proceedings, set to start at 9 a.m. Monday – unless the snowstorm forecast for the weekend warrants a postponement.

Henry Jackson, the commission’s executive director, said that the unusually high level of interest in the commission’s deliberations has resulted in the hearings being moved from one of the Augusta Civic Center’s meeting rooms to the facility’s main floor.

Scott’s spokeswoman said Scott planned to attend.

In the announcement, Capital Seven said its decision to postpone the opening was made “in the spirit of cooperation with the state of Maine, while fulfilling the wishes of the voting majority who approved operating slot machines at the state’s harness racing tracks.”

“Although we have grave concerns with any delay in implementing the benefits that slot machines at the Bangor Historic Raceway will bring … we respect the governor’s request to delay the racino opening until February 23,” Scott said in the statement.

“We sincerely hope to work with the governor and the Legislature to achieve these benefits as expeditiously as possible,” Scott said, adding:

“I am looking forward to the Harness Racing Commission hearings next week, so that I may offer an honest and direct presentation of my resume and Capital Seven’s goals for the Bangor slot machine facility in the appropriate forum.”

Time frames have been a source of heartburn for Capital Seven and the Baldacci administration.

When the governor signed the citizen-initiated racino legislation last week, he cited a rarely used provision of the state constitution delaying the law’s implementation until Feb. 21 – 45 days after the Legislature reconvenes.

Under normal circumstances, the law would take effect Jan. 3, or 30 days after the governor signed it. In its Friday announcement, Capital Seven reaffirmed its position that its original opening date was “legally permitted.”

On Friday, Gov. Baldacci’s spokesman said the governor was pleased with Capital Seven’s decision.

“The governor welcomes Capital Seven’s decision to comply with legal requirements,” Lee Umphrey said Friday. “Maine needs to have time to create the appropriate oversight for slots and this is taking away one unnecessary hurdle.”

Bangor City Council Chairman Dan Tremble expressed similar sentiments about the postponed opening.

“I think it’s great that they decided they need to comply with the law,” Tremble said. “I don’t think they had any option under the law.

“I believe the Department of Public Safety was going to remove [any slot machines] installed before the law goes into effect,” he said, adding, “Unless they get a license from the state, they’ll never get a slot machine.”

For the job seekers who attended Capital Seven’s job fair in Bangor on Monday, the postponed opening translates to delayed employment. More than 300 came to the fair to apply for the estimated 100 positions to be filled in the initial wave of hiring. Ultimately, the company plans to hire more than 300 workers for on-site jobs.

Given the new opening date, Capital Seven does not expect to begin bringing staff on board until Feb. 1 or thereabouts, Graham said.