Gaming Control Board says Farmington track failed to keep adequate records

Pete Herrera

Wednesday, Feb. 9, 2000 | 4:05 a.m.

ALBUQUERQUE - SunRay Park, the state's newest horse racing track, is again in trouble with a state regulatory agency.

The New Mexico Gaming Control Board said Wednesday that SunRay Gaming Inc., the corporation that owns and operates the track in Farmington, is doing a poor job of keeping its records in order. So the board is considering fining SunRay $17,500 if it doesn't correct the problem within 20 days.

SunRay Park opened in July 1999. It held a 28-day live meet in October and November and runs a casino with 300 slot machines. It also simulcasts races year-round from other tracks around the country.

The board said an audit conducted by its staff found SunRay had committed violations of the Gaming Control Act. The findings of that audit were presented to the board Wednesday during a closed-door session.

Board member Nelson Spear later said the audit found that SunRay "failed to comply with minimum accounting standards, failed to implement or maintain adequate internal control records for gaming operations and failed to retain required records."

Details of the violations were not released.

The Gaming Control Board approved, unanimously, a motion that says the fine will be imposed if SunRay fails to comply with the "minimum internal control requirements of the state Gaming Control Act."

Spear said failure to comply with the board's orders could ultimately cost SunRay Gaming its license.

The Associated Press was unable to reach SunRay Gaming officials for comment. There was no answer at the company's headquarters in Farmington, and track owner Ray Walters' home telephone number is unlisted.

The State Racing Commission last month grilled SunRay officials after commissioners were told SunRay owed creditors some $2.9 million. The commission has postponed the track's request for racing dates next fall, saying it wants more information on SunRay's finances.

This week, SunRay officials said a capital call to investors has raised enough money to cover its short-term debts.

SunRay Gaming has declined to reveal how much money was raised from investors. But they say they will be able to pay their bills, including lease payments to San Juan County. SunRay leases the track from San Juan County, which formerly operated the track as San Juan Downs.

Julian Luna, the commission's executive director, said SunRay recently provided the board with information about the company's capital infusion and the commission will likely again consider SunRay's license request at its Feb. 23 meeting.

Walters has said the company did "get into a cash flow crunch" in January, but he said casino revenues and the recent cash infusion will cover $1 million owed in short-term debt.

Another $1.1 million is owed to equipment vendors in installment payments over the next 18 months, Walters said.

SunRay Park also will be able to absorb the costs of a longer race season, Walters said.

The commission also is requiring SunRay to run horses 41 days this year. The lengthened season will cost the track an additional $260,000.

SunRay said it will try to bring in more revenue this year by attracting more people to the races and the casino. Last year, only 25,000 attended the races; the company had expected 80,000.