Harrah’s receives OK to develop harness track

Thursday, June 24, 2004 | 10:55 a.m.

Harrah's Entertainment Inc. of Las Vegas has received approval from the Pennsylvania Harness Racing Commission to acquire a 50 percent interest in Chester Downs & Marina LLC, an entity licensed to develop a harness track in southeastern Pennsylvania.

Harrah's and CD&M have agreed to develop Chester Downs, a 5/8-mile harness racetrack about six miles south of the Philadelphia International Airport. The partners expect to finalize the transaction in the third quarter.

Terms of the deal weren't disclosed.

Harrah's intends to develop a "full-service" harness track regardless of whether legislation to legalize slot machines at racetracks in Pennsylvania emerges and is approved, company spokesman Gary Thompson said.

"We are optimistic the state will legalize (slots)," Thompson said. "It appears the governor and the legislature are in favor of slots at tracks and casinos but it's still up in the air at this point."

The company's investment in the track would be larger if slots are legalized, however, he said.

The company plans to begin construction on the track in the third quarter, though the size and scope of the project have yet to be determined, Thompson said.

CD&M is controlled by Kevin Flynn, Joseph Lashinger and George Miller. All three are businessmen from Philadelphia, Thompson said. Flynn is not related to the Flynn family that operated the defunct Emerald Casino near Chicago.

The deal marks the company's second business opportunity in Pennsylvania, which has been singled out by casino companies as friendly toward gambling but whose legislators have killed or delayed various attempts so far to legalize slot machines.

Harrah's has an option on a site in Pittsburgh that could be developed into a casino if appropriate legislation passes.

The deal would mark the sixth racetrack project for Harrah's, which has an interest in five racetracks in Louisiana, Iowa and Kentucky.

The company owns three tracks outright and has an ownership stake in two Kentucky tracks.