Salem, N.H., Racetrack Enters Agreement to Form Gaming Facility

SALEM -- If the state legalizes video lottery terminals at the Rockingham Park racetrack, the park will develop a "first-class" gaming and live thoroughbred racing facility, according to Ed Callahan, the park's general manager.

Rockingham Venture Inc., owner and operator of the park, signed an agreement with a Las Vegas gaming company to expand and enhance the existing facility and bring gaming and live racing to Rockingham Park.

The deal with the affiliate of Millennium Gaming Inc. and Cannery Casino Resorts LLC., which owns Cannery Casino Hotel and Casino and the Rampart Casino in Las Vegas, was finalized in the last few weeks, Callahan said.

"We've been working with them for a couple of months," Callahan said.

"The fact is, we've spent a few years researching very diligently into developing the property.

"Hopefully be able to make some headway with the state of New Hampshire.

The state Legislature does not meet again until January, which would be the first time the issue could come up. Callahan thinks there's a reasonable chance that a bill allowing Rockingham to offer expanded gambling could pass.

"I'd love to see it pass next year. It would be tremendous revenue source for the state," Callahan said, adding that a gaming and racing facility would bring in jobs and boost economic development in New Hampshire.

There have been a number of failed attempts to get the state to pass such a bill, most recently in April of this year when the State Senate voted it down 18 to 6. The bill did not have the support of Gov. John Lynch.

"Gov. Lynch's position on expanded gambling hasn't changed," said Pamela Walsh, spokesperson for Gov. John Lynch. "He would need to see compelling evidence that it wouldn't harm New Hampshire's quality of life before he would even consider it."

If it doesn't pass, the Rockingham Park property would be developed as something other than a racetrack, Callahan said.

What that will be will depend on a number of factors, he said. "Plans are being developed."

Two principal owners of Millennium Gaming, William Paulos and William Wortman, operate Cannery Casino Hotel and Casino as well as the Rampart Casino in Las Vegas.

"They're quality people," Callahan said. "They bring a lot of expertise to the table."

Millennium Gaming also has the financial support of OakTree Capital Management LLC, a Los Angeles-based private investment firm that manages more than $28 billion in assets, according to Callahan. OakTree Capital also has an ownership interest in Cannery Casino Resorts.

"We are very excited about this opportunity at Rockingham Park," said Wortman, in a prepared statement. "We believe live horse racking at the caliber of Saratoga can be brought to Rockingham Park and with other entertainment options, our plan c an be a success for Salem and the entire state."

Just three years ago, Rockingham Park brought back harness racing, something it had not run for 20 years.

"When we started it up again, it wasn't as popular as thoroughbred...particularly since the casinos came into Connecticut," Callahan said.

Rockingham Park handled $200 million in 1991 -- the year before Foxwoods Casino opened. That year, the track brought in $93 million.

For now, the park will continue live harness racing during the spring and summer and simulcast wagering on thoroughbred, harness and greyhound racing.

Copyright ©2005 The Telegraph, Nashua, N.H.