New Mexico’s governor-elect favors new track

Pete Herrera

Wednesday, Nov. 20, 2002 | 9:47 a.m.

ALBUQUERQUE -- The proposed horse racing track and casino for Hobbs is on hold, but likely to get on a fast track once Gov.-elect Bill Richardson takes office in January.

Richardson reiterated Tuesday that if residents of Hobbs and Lea County want the track, he'll support their wishes.

"I happen to think that racing is a positive sport for New Mexico, an economic engine," Richardson said.

Lame-duck Gov. Gary Johnson opposes the expansion of horse racing. On Monday, Johnson ousted three members of the state Racing Commission to prevent the commission from voting on whether to award a license to R.D. Hubbard, the owner of the Ruidoso Downs racetrack.

The ouster left the commission without a quorum and forced cancellation of Tuesday's meeting at which a vote on Hubbard's application was scheduled.

Hubbard is one of three individuals who filed applications with the state Racing Commission for the proposed track. The others are Nevada businessman Shawn Scott and Ken Newton, former owner of the now closed Downs at Santa Fe.

Gregory Drake, former chairman of the state Racing Commission and one of the three ousted by Johnson, supports opening a track in Hobbs and said Tuesday he's optimistic it will happen.

"I think with the new administration coming in, there is a high possibility there will be a racetrack in Hobbs," Drake said.

Hobbs Mayor Bobby Wallach agrees.

"Governor Johnson had made it clear he didn't want gambling proliferated in New Mexico as long as he was governor," Wallach said in a telephone interview. "Certainly when the new governor takes over ... I think we have a good shot at getting a racetrack and casino in Lea County."

Wallach said surveys done on the issue show 70 percent of the residents of Lea County want the track, because it would provide some economic diversity for the oil and gas dependent area.

Harley "Beaver" Segotta, one of the two commissioners not fired by Johnson, said he was going into Tuesday's meeting undecided on how he would vote on Hubbard's application.

"I think there was going to be some serious arguments," Segotta said. "It was not a done deal as some people have suggested. It wasn't a slam dunk."

Johnson, however, said it was his belief "that this thing was wired," that a track in Hobbs was going to be approved.

"This has nothing to do with Hobbs," Johnson said. "This has to do with the expansion of racetrack gambling in New Mexico."

Johnson acted in response to recommendations from David McCumber, his chief of staff.

McCumber, in a letter to Johnson, said the commission also should wait on the Hobbs track because there were questions about Hubbard.

Those questions involve Hubbard's gaming license for Ruidoso Downs. The staff of the state Gaming Control Board has recommended that the board not renew Hubbard's license for that track because he had to relinquish his gaming license in Indiana.

Hubbard and one of his companies agreed to pay fines for entertaining golf tournament guests with prostitutes and violating other gaming laws at an Indiana casino this year.