Judge says Magna Entertainment can reject gambling rights agreement with De Francis
By Randall Chase, APTuesday, January 5, 2010
Judge rejects bid for Laurel gaming rights
WILMINGTON, Del. — A Delaware bankruptcy judge has rejected a bid by the former owners of Laurel Park to secure exclusive non-racing gambling rights at the Maryland track.
The judge on Tuesday said Magna Entertainment Corp. could reject a 2002 agreement that created a limited liability company and gave Joseph De Francis and other former owners of the Laurel Park and Pimlico tracks so-called alternative gaming rights.
Magna argued the rights don’t exist because it does not have a slots license and they are not among the Laurel Park and Pimlico assets being auctioned later this month.
Attorneys for the former owners argued that they had a vested property right in the form of an easement that would have prevented buyers of the tracks from operating slot machines.
