August

In a statement Penn National attributes its decision to not proceed with the acquisition to new legislation signed by Maryland Gov. Martin O'Malley on Nov. 19. While the legislation authorizes up to 15,000 video lottery terminals at five locations in the state, subject to a November 2008 voter referendum, it specifically excludes Prince George's County where Rosecroft operates.

Thus, "Rosecroft, which already has been operating at a loss, will be denied the opportunity for an alternative revenue source that would enable it to compete with other tracks in the state and racing and gaming venues in neighboring states," according to the Penn National Gaming release. The details of the proposed acquisition have never been disclosed, but the company expects a one-time charge of $0.01 per share in fourth quarter related to termination of the agreement.

Meanwhile, Penn National has set Dec. 12 for a shareholder meeting and vote on its previously announced $8.9-billion buy-out by a joint venture between New York City-based Fortress Investment Group LLC and Centerbridge Partners LP. Also today, the company moved forward on its plans for a $365-million resort casino in Sumner County, KS by filing a license application to the Kansas Lottery Commission. Like the $310-million project under way at Penn National Race Course in Grantville, PA, it will carry the Hollywood brand.