Third time was not the charm on Friday as New Mexico Racing Commission once again postponed vote on sixth racino license
The race for New Mexico’s sixth and final racino is far from over as state racing regulators decided on Friday to once again postpone a vote to select the winning bidder that will build and operate the facility. Five companies are bidding for the lucrative racino license.
Once the license application process closed this past August, it has been up to the New Mexico Racing Commission to visit all proposed locations for the state’s sixth racino, meet with bidding developers, and make a decision. Commissioners have so far postponed a vote on issuing the license three times.
Ray Willis, Chairman of the racing regulator, told local media yesterday that the New Mexico Attorney General’s office has warned the Commission that if it proceeded with selecting the winning bidder, the office would not be obligated to defend commissioners in case of a legal fight.
One of the companies bidding for the racino license has filed a petition with a district court, seeking a temporary injunction and claiming that the racing regulator has not done enough to study the matter in detail. News about the legal motion have arrived as pressure for the commission to finally issue the license has been building up.
The Republican-appointed five-member regulator could see a change of its current make up come January 1, 2019 when New Mexico’s new Democrat Governor is to assume office. A change could affect the licensing process.
Existing Racinos Warn Against More Competition
While most members of the Racing Commission are in favor of issuing a license for New Mexico’s final racino, the state’s five existing facilities have expressed concerns about the impact of additional competition. They have pointed out that a sixth venue would hurt their business as New Mexico’s racing industry is “far from healthy and not in need of additional forces” that create “additional downward pressures.”
Under New Mexico’s compact with Native American tribes that run casinos on the territory of the state, only six racinos can operate there. Each of the racinos can feature 600 slot machines or up to 750 such devices if it buys them from other facilities and the transaction gets the nod from the New Mexico Gaming Control Board. Albuquerque, Farmington, Hobbs, Ruidoso, and Sunland Park host the five existing venues.
Racing regulators issued a sixth license to a Canadian developer back in 2008. However, the project fro a racino in Raton never materialized and the winning company eventually lost its license.
Five Bidders Vie For the Sixth License
Five applications had been submitted by the time the bidding process closed this past August. There is an 80% chance that New Mexico’s sixth racino could land somewhere in the eastern part of the state as four of the bidding developers are looking to build their facility in that region in a bid to capture visitors from West Texas.
Three of the proposals involve the development of a racino in Clavis. The most expensive of the three bids came from Nevada-based Full House Resorts. The company has revealed a $200-million plan to build the world’s first moving grandstand that will travel around the racetrack at the speed of the horses, offering spectators a unique perspective. The other two Clavis bids were valued at $50 million and $75 million.
The fourth Eastern New Mexico bid proposes a $61.7 million racino in Tucumcari. The final bid calls for a $75-million racino in Lordsburg, which means that the license will have to head to the other side of the state, if regulators pick this project as the winner.
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