President of corporation that runs SunRay Park and Casino resigns

Pete Herrera

Thursday, Feb. 17, 2000 | 8:52 a.m.

ALBUQUERQUE - Ray Walters, the top official at Farmington's SunRay Park and Casino, has resigned and is no longer involved in the day-to-day operations of the horse racing track.

SunRay Park, the state's newest horse racing track, opened last summer. In recent weeks it has been the target of much scrutiny and criticism from the State Racing Commission and the state Gaming Control Board.

The Racing Commission learned last month that SunRay Gaming Inc., which operates the track and casino, had debts totaling more than $2.9 million.

The Gaming Control Board - the regulatory agency for gambling in the state - recently completed an audit of SunRay's books. That audit revealed SunRay failed to keep proper records. The board has given the corporation 28 days to correct the problems or face a fine of $17,500.

Walters, president of SunRay Racing Inc., resigned effective Tuesday, according to Bruce Leslie, a Las Vegas, Nev., attorney who represents SunRay.

"I've been advised he resigned yesterday," Leslie said Wednesday in a telephone interview.

State Racing Commission director Julian Luna said the commission was notified Wednesday that Walters had resigned as a member of the management committee that was formed Jan. 31 to oversee the track and casino's operations.

Asked why Walters resigned, Leslie said, "I think he wanted to pursue other business opportunities."

Walters was not available for comment. He was not at the racetrack Wednesday and there was no answer at his residence in Durango, Colo.

The State Racing Commission has not yet approved SunRay Park's request for racing dates this year. The commission last month postponed a decision after learning of SunRay's debt.

Earlier this month, SunRay officials issued a capital call to investors which reportedly raised $1 million to cover the corporation's short-term debt. The influx of funds, SunRay said, will be used to pay bills, including lease payments to San Juan County. SunRay leases the track from the county, which formerly operated the track as San Juan Downs.

The State Racing Commission last week asked the track's general manager, Byron Campbell, to submit detailed information on the track's financial status, including "the most recent balance sheet, income statement and ... account payables." That information was due at commission headquarters by Wednesday.

The Racing Commission will hold a hearing next Wednesday to reconsider SunRay's application for racing dates. The commission asked the management committee and other officials to be present.

"We fully expect you will have your newly formed management committee and corporate managers in attendance ... so questions can be properly addressed and answered," the commission told Campbell in a letter sent to SunRay last week.