Magna Entertainment Corporation
Encyclopedia
MI Developments Inc. formerly known as Magna Entertainment Corp., is a gambling
and horse racing
company in North America
with several holdings in Europe
and Australia
, and is North America's largest thoroughbred
racing company, based on revenue and holdings. As of March 5, 2009, the company had entered Chapter 11 bankruptcy
.
Magna International, a major automotive supplier based in Ontario
, Canada
, underwent a corporate reorganization in which its non-automotive businesses and interests were transferred to MEC. In March 2000, Magna International distributed shares in its new division to its current stockholders, establishing MEC as a separate public company. Recently, Chairman and CEO Frank Stronach's dream of building a racing empire came crashing down when Magna Entertainment filed for Chapter 11 bankruptcy.
, including many thoroughbred tracks and two mixed (thoroughbred and standardbred) tracks. MI Developments Inc. also operates the simulcasting venues at these tracks, as well as OTB (Off-track betting
) facilities.
Other ventures include XpressBet, a wagering business that allows customers to wager on over 100 horse racing tracks via internet or telephone, and Horse Racing TV
, a premium television network featuring racing both MI Developments Inc. tracks and other participating tracks. In 2007, Magna sold 50% of Horse Racing TV to Churchill Downs Incorporated
.
MI Developments Inc. also owns thoroughbred training facilities in conjunction with its racetracks in California, Florida, and Maryland, and owns and operates facilities that manufacture a straw-based bedding product, StreuFex.
MI Developments Inc. has recently moved to add additional gaming attractions, such as slot machines, to several of its tracks. In 2004, voters in Oklahoma
approved legislation that allowed MI Developments Inc. to add slot machines at Remington Park
racetrack in Oklahoma City
. Remington Park opened its casino, featuring 650 Class II gaming machines, in November 2005. Gulfstream Park
in Hallandale Beach, Florida
, followed suit in November 2006, with 516 slot machines and poker
. Magna Racino
in Austria also features alternative gaming.
In 2006, MI Developments Inc. completed its purchase of AmTote International, who provide totalizator
services to the horse racing industry. On March 23, 2010 an agreement was reached to sell the two Maryland Jockey Club tracks (Pimlico and Laurel Park) from Magna Entertainment Corporation to its parent company MI Developments. MI Developments will receive the tracks from M.E.C. in exchange for paying $25 million in cash for claims to Maryland Jockey Club creditors and $89 million to other creditors through a new reorganization plan. The U.S. Bankruptcy Court in Delaware, has until April 30 to approve Magna's reorganization plan.
Gambling
Gambling is the wagering of money or something of material value on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods...
and horse racing
Horse racing
Horse racing is an equestrian sport that has a long history. Archaeological records indicate that horse racing occurred in ancient Babylon, Syria, and Egypt. Both chariot and mounted horse racing were events in the ancient Greek Olympics by 648 BC...
company in North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
with several holdings in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
and Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
, and is North America's largest thoroughbred
Thoroughbred
The Thoroughbred is a horse breed best known for its use in horse racing. Although the word thoroughbred is sometimes used to refer to any breed of purebred horse, it technically refers only to the Thoroughbred breed...
racing company, based on revenue and holdings. As of March 5, 2009, the company had entered Chapter 11 bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
.
History
Magna Entertainment Corporation (MEC) was created in 1999 by parent company Magna International Inc.Magna International
Magna International Inc. , is an automotive supplier headquartered in Aurora, Ontario, Canada. It is Canada's largest automobile parts manufacturer, and one of the country's largest companies. It owns the Magna Steyr automobile production company of Austria....
Magna International, a major automotive supplier based in Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, underwent a corporate reorganization in which its non-automotive businesses and interests were transferred to MEC. In March 2000, Magna International distributed shares in its new division to its current stockholders, establishing MEC as a separate public company. Recently, Chairman and CEO Frank Stronach's dream of building a racing empire came crashing down when Magna Entertainment filed for Chapter 11 bankruptcy.
MI Developments Inc. today
MI Developments Inc. currently owns or manages racetracks in North America, and one racetrack in AustriaAustria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
, including many thoroughbred tracks and two mixed (thoroughbred and standardbred) tracks. MI Developments Inc. also operates the simulcasting venues at these tracks, as well as OTB (Off-track betting
Off-track betting
Off-track betting refers to sanctioned gambling on horse racing outside a race track.-US history:...
) facilities.
Other ventures include XpressBet, a wagering business that allows customers to wager on over 100 horse racing tracks via internet or telephone, and Horse Racing TV
Horse Racing TV
HRTV is a 24-hour television based multimedia network dedicated to horseracing which features racing action from many of the sport's greatest racetracks around the world. HRTV also features other forms of equestrian competition, as well as original programming and award-winning documentaries...
, a premium television network featuring racing both MI Developments Inc. tracks and other participating tracks. In 2007, Magna sold 50% of Horse Racing TV to Churchill Downs Incorporated
Churchill Downs Incorporated
Churchill Downs Incorporated is the parent company of Churchill Downs. The company owns several other thoroughbred and standardbred racetracks.-History:...
.
MI Developments Inc. also owns thoroughbred training facilities in conjunction with its racetracks in California, Florida, and Maryland, and owns and operates facilities that manufacture a straw-based bedding product, StreuFex.
MI Developments Inc. has recently moved to add additional gaming attractions, such as slot machines, to several of its tracks. In 2004, voters in Oklahoma
Oklahoma
Oklahoma is a state located in the South Central region of the United States of America. With an estimated 3,751,351 residents as of the 2010 census and a land area of 68,667 square miles , Oklahoma is the 28th most populous and 20th-largest state...
approved legislation that allowed MI Developments Inc. to add slot machines at Remington Park
Remington Park
Remington Park is a horse racing track and casino located in Oklahoma City, Oklahoma. Built in 1988, it was the first world-class pari-mutuel track in Oklahoma. Remington Park was built by the late Edward J. DeBartolo Sr., the shopping mall developer who also owned Thistledown in Cleveland, Ohio...
racetrack in Oklahoma City
Oklahoma city
Oklahoma City is the capital and largest city of the U.S. state of Oklahoma.Oklahoma City may also refer to:*Oklahoma City metropolitan area*Downtown Oklahoma City*Uptown Oklahoma City*Oklahoma City bombing*Oklahoma City National Memorial...
. Remington Park opened its casino, featuring 650 Class II gaming machines, in November 2005. Gulfstream Park
Gulfstream Park
Gulfstream Park Racing & Casino is a racetrack and county-approved racino in Hallandale Beach, Florida, in the United States. During its annual meet, which spans December through April, it is one of the most important venues for horse racing in America....
in Hallandale Beach, Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
, followed suit in November 2006, with 516 slot machines and poker
Poker
Poker is a family of card games that share betting rules and usually hand rankings. Poker games differ in how the cards are dealt, how hands may be formed, whether the high or low hand wins the pot in a showdown , limits on bet sizes, and how many rounds of betting are allowed.In most modern poker...
. Magna Racino
Racino
A racino is a combined race track and casino. In some cases, the gambling is limited to slot machines, but many locations are beginning to include table games such as blackjack, poker, and roulette....
in Austria also features alternative gaming.
In 2006, MI Developments Inc. completed its purchase of AmTote International, who provide totalizator
Tote board
A tote board is a large numeric or alphanumeric display used to convey information, typically at a race track or at a telethon .The term "tote board" comes from the colloquialism for totalizator , the name for the automated...
services to the horse racing industry. On March 23, 2010 an agreement was reached to sell the two Maryland Jockey Club tracks (Pimlico and Laurel Park) from Magna Entertainment Corporation to its parent company MI Developments. MI Developments will receive the tracks from M.E.C. in exchange for paying $25 million in cash for claims to Maryland Jockey Club creditors and $89 million to other creditors through a new reorganization plan. The U.S. Bankruptcy Court in Delaware, has until April 30 to approve Magna's reorganization plan.
Owned racetracks and assets
MI Developments Inc. owns the following tracks in order of acquisition date:Race tracks
- Santa Anita ParkSanta Anita ParkSanta Anita Park is a thoroughbred racetrack in Arcadia, California, United States. It offers some of the prominent racing events in the United States during the winter and in spring. With its backdrop of the purple San Gabriel Mountains, it is considered by many as the world's most beautiful race...
, Arcadia, California. Acquired in December 1998 for $126 million. - Gulfstream ParkGulfstream ParkGulfstream Park Racing & Casino is a racetrack and county-approved racino in Hallandale Beach, Florida, in the United States. During its annual meet, which spans December through April, it is one of the most important venues for horse racing in America....
, Hallandale Beach, Florida. Acquired in September 1999 for $95 million. - Golden Gate FieldsGolden Gate FieldsGolden Gate Fields is an American horse racing track straddling both Albany, California and Berkeley, California along the shoreline of San Francisco Bay adjacent to the Eastshore Freeway in the San Francisco Bay Area...
, Albany, California. Acquired in December 1999 for $87 million. - Portland MeadowsPortland MeadowsPortland Meadows is an American horse racing venue in Portland, Oregon, owned by MI Developments Inc. since 2001. Built by William P. Kyne, who also built Bay Meadows Racetrack in San Mateo, California, the facility opened on September 14, 1946....
, Portland, Oregon. Acquired in October 2001 for $4.78 million (80% of $5.97 million package). - Pimlico Race CoursePimlico Race CoursePimlico Race Course is a horse racetrack in Baltimore, Maryland, most famous for hosting the Preakness Stakes. Its name is derived from the 1660s when English settlers named the area where the facility currently stands in honor of Olde Ben Pimlico's Tavern in London...
, Baltimore, Maryland. Acquired 51% in November 2002 for $117.5 million (as part of MJC package) and an additional 20% for $18.3 million in September 2007. - Laurel Park Racecourse, Laurel, Maryland. Acquired 58% in November 2002 for $117.5 million (as part of MJC package) and an additional 20% for $18.3 million in September 2007.
Other assets
- AmTote International, Hunt Valley, Maryland. A leading totalisator service provider with technological advancements in the pari-mutuel wagering industry. Magna acquired 30% for $3.82 million in August 2003 and acquired the balance of 70% in July 2006 for $14 million.
- Bowie Race TrackBowie Race TrackThe Bowie Race Track was a horse racing track located just outside the city limits of Bowie, Maryland. Opened October 1, 1914 by the Southern Maryland Agricultural Society, the racetrack was a major attraction in the area, serving the now defunct WB&A Railroad that drew passengers from New York,...
, Bowie, Maryland, ceased racing operations in July 1985 prior to Magna's acquisition, the track now serves as a training center for Thoroughbred racehorses. - Maryland Turf Caterers, Inc., Baltimore, Maryland. Acquired the caterers for $12.1 million in September 2005. MTC conducts on or off-premise catering services and also operate the Food & Beverage operations at Pimlico and Laurel.
- Palm Meadows Thoroughbred Training CenterPalm Meadows Thoroughbred Training CenterPalm Meadows Thoroughbred Training Center is an American stable and training facility for Thoroughbred racehorses located near Boynton Beach, Florida, just north of the Gulfstream Park racetrack. It is owned by MI Developments Inc. who built it at a cost of $90 million...
, Boynton Beach, Florida, built at a cost of $90 million on 304 acres (1.23 km2). The center opened in November 2002 as the largest training center in the United States. - Xpressbet, Washington, Pennsylvania, was launched by Magna in March 2002 is a legal, licensed, U.S.-based account wagering provider that offers pari-mutuel wagering on thoroughbred, harness and quarter horse racing events either online or by telephone.
- Horse Racing TVHorse Racing TVHRTV is a 24-hour television based multimedia network dedicated to horseracing which features racing action from many of the sport's greatest racetracks around the world. HRTV also features other forms of equestrian competition, as well as original programming and award-winning documentaries...
or (HRTV), Arcadia, California, is a 24- hour digital cable channel that is dedicated to the world of horses providing up 15 hours per day of live racing. Magna sold a 50% share of HRTV to Churchill Downs, Inc in March 2007 for $13 million. - TrackNet Media, Louisville, Kentucky, is a media company owned by Churchill and Magna that acts as a horse racing content provider and it negotiates Advance Deposit Wagering contracts and simulcast agreements with racetracks, including those owned by Churchill or Magna.
- STREUfex, Finley, New South Wales, Australia. A company that manufactures Horse Bedding, the latest innovation in horse bedding made from pelletised straw. A market leading product in the US. of land, in Porter, New York. Magna is attempting to sell the land where they had proposed to build a track. The asking price is believed to be $960,000.
- Dixson Downs, Dixon, California. Acquired in December 2000 Magna bought 260 acres (1.1 km²) of land approximately 20 minutes west of Sacramento off I-80.
- The Village at Gulfstream Park, Hallendale Beach, Florida. Magna owns 50% interest (in conjunction with Forest City Enterprises) of the first phase of the development, scheduled for completion in February 2010, there will be more than 70 specialty shops, restaurants and outdoor cafes. Office space will also be available above a portion of the retail buildings.
Former MI Developments Inc. or MEC assets and racetracks
- Bay Meadows Racetrack, San Mateo, California (near San Francisco); Magna acquired (racing and operating rights) in August 2000 for $24.1 million, agreement expired in December 2004.
- Flamboro DownsFlamboro DownsFlamboro Downs is Canada's fastest half-mile harness horse racing track, based in Hamilton , Ontario since April, 1975. It is also home to Flamboro Slots, which has a total of 750 slot machines....
, Hamilton, Ontario. Acquired in June 2002 for $46.2, sold to Great Canadian Gaming Corp. for a total of $63.9 million in August 2005. - Maryland-Virginia Racing Circuit, New Kent, Virginia. Sold simulcast rights of the Virginia track Colonial DownsColonial DownsColonial Downs is a racetrack for Thoroughbred flat racing and Standardbred harness racing located in New Kent County, Virginia adjacent to Interstate 64, halfway between Richmond, Virginia and Williamsburg, Virginia.-History and information:...
to Colonial L.P. for $9.8 million in September 2005 who will have the use of the Colonial Downs signal in both domestic and international distribution network. - Multnomah Greyhound Park, Salem, Oregon. Magna acquired (racing and operating rights) in October 2001 for $1.2 million (20% of Sale of Portand Meadows sale totaling $5.97 million), agreement expired in September 2005.
- The Meadows Racetrack, North Starbane Township, Pennsylvania near Pittsburg; Magna acquired in April 2001 for $53 million, sold to Millenium Gaming, Inc. for a total of $225 million in November 2006. Magna has agreement to manage racing operations for 5 years.
- San Luis Rey Downs Training Center, Bonsall, California a 205 acre (0.8296063 km²) horse racing training facility that was sold by Magna in June 2007 for $24 million to M.I. Developments which plan to make residential developments within three years.
- Great Lakes Downs, Muskegon, Michigan. Acquired in February 2000 for 267,000 Shares of Class A Voting Stock in Magna Entertainment. Magna had closed the track in November 2007, and sold the property to the Little River Band of Ottawa Indians in July 2008 for $5.9 million. The tribe is redeveloping the property, with plans to build a casino.
- Magna Racino, Ebreichsdorf, Austria. Built and opened in April 2004, Magna has agreed to sell to Fair Enterprises Limited for $9.8 million in July 2009 (sale has not formally closed yet).
- Remington ParkRemington ParkRemington Park is a horse racing track and casino located in Oklahoma City, Oklahoma. Built in 1988, it was the first world-class pari-mutuel track in Oklahoma. Remington Park was built by the late Edward J. DeBartolo Sr., the shopping mall developer who also owned Thistledown in Cleveland, Ohio...
, Oklahoma City, Oklahoma. Acquired in for $10 million in February 2000, Magna has agreed to sell to Global Gaming, RP (owned by the Chickasaw Nation tribe) for $80.25 million in September 2009 (sale has not formally closed). - Ocala Meadows, Ocala, Florida. Magna has agreed in September 2009 to sell 490 acres (2 km²) near interstate I-75 for $8.1 million (sale has not formally closed). land, Romulus, Michigan. Magna purchased this property in September 2002 and sold it some time in 2008 for $28 million.
- Thistledown Racecourse, North Randall, Ohio. Acquired in October 1999 for $14 million, sold to Harrah's Entertainment in September 2009 for $43 million (sale closed 07/28/10).
- Lone Star ParkLone Star ParkLone Star Park is a horse racing track located in Grand Prairie, Texas.-History:Lone Star Park opened in 1997. The track offers separate meets for Thoroughbred racing and Quarter Horse racing. In October 2002, Magna Entertainment Corp. , based in Aurora, Ontario, leased the facility and acquired...
, Grand Prairie, Texas. Acquired in October 2002 (Owns racing and operating assets) for $100 million has agreed to sell to Global Gaming, RP (owned by the Chickasaw Nation) for $27 million in September 2009 (sale has been delayed by the Delaware bankruptcy judge due to a competing bid by Penn National Gaming.)