LV man’s bid on N.M. track delayed

Pete Herrera

Thursday, Aug. 22, 2002 | 11:30 a.m.

ALBUQUERQUE -- The city of Hobbs will have to wait a little longer to find out if a new horse racing track will be built there, and if so, who will run it.

The state Racing Commission on Wednesday said it wasn't ready to act on the applications filed by Ruidoso Downs owner R.D. Hubbard and Las Vegas gambling entrepreneur Shawn Scott, owner of the shuttered Vacation Village hotel-casino on the south end of the Las Vegas Strip.

The reason? The commission wants to learn more about Hubbard's troubles in Indiana gaming circles and Scott's legal battle in Louisiana with the group from which he purchased Delta Downs in 1999.

"We feel we cannot make a good rounded decision that would be best for racing in New Mexico at this time," commission Chairman Greg Drake said soon after Wednesday's commission meeting started.

The commission had indicated it would act on the applications from Hubbard and Scott on Aug. 27, but Drake said that commission meeting would be rescheduled for a later date.

Hubbard and one of his companies agreed last month to pay more than $3 million in fines for entertaining golf tournament guests with prostitutes and violating other gaming laws at Indiana's Belterra Casino and Resort.

Under the settlement with the Indiana Gaming Commission, Hubbard voluntarily relinquished his Indiana gaming licenses and agreed to sell his stock in Pinnacle Entertainment Inc., which owns and operates Belterra.

Bruce Rimbo, president of Ruidoso Downs, said Wednesday the Indiana case should not hurt Hubbard's chances to obtain the Hobbs license.

"If one really looks at the settlement agreement, Mr. Hubbard was not accused of anything, he was not charged with anything, he was not found guilty of anything," Rimbo said. "When it's really examined and looked at in the right light, I don't think it will hurt our application."

Scott and his Louisiana Racing company are involved in a contract battle with the former owners of Delta Downs. When Scott purchased Delta Downs, which he since has sold, he agreed to pay the former owners a bonus, provided the track's facilities were in good condition and met health and safety standards.

Scott has refused to pay the bonus, contending the sellers failed to meet the conditions for it.

Former New Mexico Gov. Toney Anaya, who is working as a consultant to Scott's group, said they would have preferred the commission had not postponed a decision.

"Frankly, we're disappointed with the decision that's been made here," Anaya told the commission. "We feel that from a licensing point of view, Mr. Scott has supplied the commission with everything. This matter in Louisiana is a civil matter, it's a contractual dispute. We understand the commission needs to satisfy itself, but we don't see that there's any way of even comparing that matter with the other (Hubbard's) application."

"It has nothing to do with his (Scott's) suitability to be licensed" (in New Mexico), Anaya said later during a break in the commission meeting.

The commission also agreed to consider a third application for a track in Hobbs -- this one from Ken Newton, the former owner of the now-closed Downs at Santa Fe.

Newton filed his application in March but the commission only recently decided to hold a hearing on his proposal to build a $30 million track and casino on the Lovington highway, north of downtown Hobbs. If Newton were to receive the license, the track would be called Saddleback Park.

"I'm elated," Newton said of the commission's decision to look at his proposal. "It's been a long road."

Scott's proposal is for a $30 million racetrack and casino that would be Lea Downs. Hubbard has said his company would spend $27.5 million on the track and casino that would be called Zia Park.

All three groups have said they could have the track and casino in operation by next summer, but given the latest postponement, it's unlikely the track, if approved, could open before 2004.

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