New Mexico panel may look into Scott Information in application questioned

ALBUQUERQUE, N.M. – The New Mexico Racing Commission apparently will look into whether Nevada businessman Shawn Scott provided false information in his application for a license to build a new racetrack and casino in Hobbs.

The commission late last year awarded the Hobbs license to New Mexico-based Zia Partners and the partnership plans to break ground in March for the $43 million project.

But not without a legal battle.

Scott, one of the three unsuccessful applicants for the Hobbs license, has filed a lawsuit in state district court challenging the commission’s decision. His lawsuit says the commission disregarded state law concerning how many tracks an ownership team can own when it awarded the license to the group headed by Ruidoso Downs owner R.D. Hubbard.

New Mexico law states no person or group of people can have a direct or indirect interest in more than two racetracks in the state. Paul Blanchard, a member of Zia Partners, is also part owner of The Downs at Albuquerque.

The commission on Thursday decided to “reopen” the files of Scott and the two other unsuccessful applicants so it can obtain additional information on them.

Assistant Attorney General Chris Coppin told the commission Scott was turned down for a racing license in New York last month on grounds he did not accurately answer questions on his application there.

“My recommendation would be that because there is a lawsuit … that we continue to hold these three applications in abeyance but reopen the applications for the staff to gather additional relevant background information, and if necessary, reopen hearings and have that information put into the record,” Coppin said.

Billy Blackburn, an attorney for Zia Partners, this week sent the Racing Commission a letter urging the commission to look further into Scott’s background and dealings in other states.

“We were provided certain information by Zia Partners and we need to check into it,” Coppin said. “To see if it’s accurate information and to give Shawn Scott a chance to answer.”

Blackburn alleges in his letter that Scott, as part of his application for the Hobbs license, answered “no” to the question of whether he had ever had any of his licenses revoked or suspended.

Blackburn’s letter says records obtained by the New York Racing and Wagering Board and the Maine Harness Racing Commission show that several of Scott’s applications for video poker licenses were denied in South Carolina in 1997 as a result of delinquent property taxes.

Blackburn, in an interview during a break in the commission hearing Thursday, acknowledged Zia Partners has launched a counterattack to Scott’s lawsuit.

“This is the only offense we really have,” Blackburn said. “We want to make sure that Shawn Scott is not going to be the next person to have a license to run a racing meet in Hobbs.”

Neither Scott nor any of his representatives was present at the meeting. A message seeking comment was left with Scott’s Santa Fe attorney, Michele Henry.

Scott has been a lightning rod for controversy in his gaming ventures.

In Maine, his business practices and associates were under scrutiny by the Maine Harness Racing Commission when Scott decided to sell his interest in the Bangor Historic Track to Penn National.

A background report in Maine said one of Scott’s business associates had criminal convictions, that Scott had been uncooperative with regulators and that Scott’s companies demonstrated “sloppy, if not irresponsible, financial management and accounting practices over several years.”

Bruce Rimbo, another member of the Zia Partnership, told the commission he was confident that the commission’s decision would stand, but noted, “we’re a little concerned about the lawsuit because it gets the banks a little nervous.”

Rimbo said environmental reports on the Hobbs site have been done and construction could start around March 1.