Ruidoso rejects Scott bid

Apr 30, 2002 7:42 AM

Las Vegan Shawn Scott, who struck gold in the sale last year of a Louisiana racetrack, made a bid last week for Ruidoso Downs in New Mexico, a bid that was described by its current owner as “ridiculous.”

Scott is seeking a license to build a racetrack in Hobbs, N.M., and operating the facility as a “racino” with slot machines. Competing against him for the Hobbs license are R.D. Hubbard and his associate Bruce Rimbo.

Rimbo said there had been no personal contact from Scott, only an offer, “that appeared on our fax machine.” He added that, “It’s so ridiculous that it’s not worth responding to”¦Ruidoso Downs is not for sale.”

Hubbard plans to step down in June from his post as chairman of Pinnacle Entertainment Inc. (PNK), the gaming company that emerged from the sale of its racetracks by Hollywood Park Inc. Pinnacle recently named Dan Lee as its new CEO and said he would become chairman when Hubbard resigns at the annual shareholders meeting in June.

Scott recently made an effort to acquire Vernon Downs in upstate New York with a loan to the company of $8.6 million. He is under investigation by New York state gaming regulators.