Rosecroft Raceway is a harness horse racing track owned by Penn National and is located in Oxon Hill, Maryland, in the United States.
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William E. Miller, a noted harness racer and horse breeder in the mid-20th century founded Rosecroft Raceway in 1947.[1][2] It was the only known raceway to be owned by horse owners, horse trainers, and jockeys.[1]
Rosecroft was originally the W.E. Miller Stables.[3] It was located next to the Rosecroft Stock Farm, where horses were bred.[3] For many years, Rosecroft Raceway held an annual sale of yearling Standardbred horses bred in Maryland.[4] It also hosted the annual Sire Stake Races to promote the best of Maryland-bred horses.[4]
Rosecroft announced it would close on July 1, 2010.[5][6] The track had had several owners in the past few years, had stopped hosting live harness racing, and then lost it license to broadcast thoroughbred races.[5][6] Live racing ended in 2009, and the track relied on the simulcasts and revenue from off-track betting.[5] After losing $30 million in 2009, Cloverleaf Enterprises (the track's current owner) filed for Chapter 11 bankruptcy in June 2009.[6] Mark Vogel, one of Rosecroft Raceway's previous owners, loaned the track $350,000 to stay open.[6] Vogel offered to buy the track, but a bankruptcy court judge refused to approve the plan.[6] Rosecroft officials had hoped that the Maryland General Assembly would approve legislation allowing table games and other types of casino gambling at Rosecroft, but that did not occur.[5] In early June 2010, Cloverleaf filed for Chapter 7 bankruptcy liquidation.[6]
On January 28, 2011, Penn National Gaming announced plans to buy the shuttered track for $10.25 million. Penn National said that it plans to return live racing and simulcast wagering to the track, with the intent of also pushing for changes in Maryland gaming laws that would allow slots and table games.[7]
On July 28, 2011, the Maryland Racing Commission unanimously agreed to allow Rosecroft's owner, Penn National Gaming, to secure a $1.4 million line of credit to cover operating losses at Rosecroft for fiscal years 2011 and 2012.[8] Historically, the racing commission would not allow a racetrack to open unless the owners showed they had the financial resources to do so for at least two years.[8] Penn National said it was likely to incur $2.3 million in losses through 2013.[9] Because of Rosecroft's financial difficulties, the commission went further and asked Penn National to create a cash escrow account before opening the track.[8] Penn National refused, but when Maryland horse breeders put pressure on the agency the racing commission agreed to allow Penn National to secure a line of credit instead.[8]
Penn National said it was also hoping to convince the state to allow slot machines at the track, even though voters did not approve Prince George's County as a gambling location.[8] Revenues from slot machines could generate $4 million a year by 2013, which could be used to fund racing purses.[9] The company anticipated that live harness racing would resume in October, with 20 days of racing in 2011 and 54 days in 2012.[8] Penn National made $500,000 in improvements at the track since February 2011, and planned another $1 million more over the next year.[9]
Rosecroft Raceyway also hoped to begin simulcasting races in late August 2011.[8] However, disputes between tracks and simulcasters about revenues led to a two-year delay in reaching new agreements on broadcast rights. In the spring of 2011, the Maryland legislature passed a bill that required all parties to enter into mediation.[9] If mediation was not successful by October 1, 2011, then an arbitrator was required to step in.[9] To resolve a conflict of interest, Penn National sold its financial stake in the Maryland Jockey Club’s in late spring 2011.[9] If Rosecroft is able to simulcast other track's races, it would be eligible to receive $1.2 million in gambling revenues from the state in 2012.[9]
In early August 2011, Rosecroft made public its plans for adding a a casino at Rosecroft. It proposed demolishing its existing grandstand and building a casino (capable of housing about 4,700 slot machines) alongside the track.[10] Penn National said the casino would generated $500 million in revenue, with about half that going to the state and half of one percent going to the county.[10]
An agreement on simulcasting of races was reached in mid-August, allow Rosecroft to reopen on August 25, 2011.[11] Still outstanding was how much money Penn National owed to Maryland horse owners and breeders. Rosecroft owed $1.24 million in unpaid disbursements under its previous simulcast license, and the parties were negotiating about how much of this debt Penn National would pay.[12] Rosecroft drew 400 to 500 patrons on its opening day, and said it would be open from noon to midnight every day of the week.[12] Penn National also reiterated its intent to spend $1 million in the coming year to renovate the property, which would include razing old horse barns, putting a new roof on the betting parlors, and upgrading the HVAC system.[12]