N.M. hears Scott bid

Oct 22, 2002 6:39 AM

Las Vegas gaming entrepreneur Shawn Scott may have the jump on two other applicants for a racetrack license in Hobbs, N.M. The New Mexico Racing Commission last week decided to rehear Scott’s application on Oct. 30.

No dates were set for the other two applicants that includes R.D. Hubbard, owner of Ruidoso Downs in New Mexico, who recently was forced out of his position as chairman and CEO of Pinnacle Entertainment Inc. (PNK) after he and the company were fined for allegedly importing girls to entertain customers at the Belterra Casino in Indiana.

In an unusual policy decision, the commission announced last month that it would conduct separate hearings on the three proposals but that they could decide to award a license at any time in the process.

The decision on Hubbard was delayed because of the Indiana problem while the decision on Scott was postponed because of a contract dispute involving the former owners of Delta Downs in Louisiana. Scott reportedly acquired the property for $10 million with the promise to add to the payment if certain conditions were met. He alleges these conditions were not met and he has failed to add to the purchase price.

Meanwhile, Scott sold the racetrack to Boyd Gaming Corp. (BYD) for $130.4 million.

The third applicant for the New Mexico license is Ken Newton former owner of the now-closed Downs at Santa Fe racetrack.