Harrah’s Entertainment has ended up with Thistledown after all, but at a greatly reduced price.

The Las Vegas-based casino company purchased the Ohio racetrack for about $43 million during a May 25 auction in New York, sources close to the situation said. Last year, Harrah’s obtained an option to buy the Cleveland-area track for $89.5 million.

Thistledown has been owned by bankrupt Magna Entertainment Corp. Major MEC assets have been taken over by MI Developments, an affiliated company that opted to move forward with a sale of Thistledown.

Official statements from the seller and buyer weren’t immediately available, nor was information on whether Harrah’s has a partner.

Harrah’s had expressed interest in Thistledown based on the prospect of getting video lottery terminals at the track. That possibility appears closer to becoming reality this year; there could be a November referendum if its backers opt to pursue it, or Ohio lawmakers could add VLTs to legislation governing full-scale casino gambling in the state’s four largest cities.

Harrah’s owns other racetracks, including Harrah’s Louisiana Downs in Louisiana, Harrah’s Chester Casino & Racetrack in Pennsylvania, and Players Bluegrass Downs in Kentucky. The company also is a co-owner of Turfway Park in Kentucky.

There has been behind-the-scenes talk of Harrah’s becoming a partner in the casino planned for Cleveland.

With the sale of Thistledown, there will be three Ohio tracks owned by casino companies; the other two are Raceway Park, owned by Penn National Gaming Inc., and Scioto Downs, owned by MTR Gaming Group. Meanwhile, PNGI is working to close a deal to purchase Beulah Park near Columbus.

The other three tracks in the state—River Downs near Cincinnati, Lebanon Raceway between Cincinnati and Dayton, and Northfield Park near Cleveland—are privately owned. Racing industry officials have said, however, they expect all Ohio tracks eventually will be owned by or have partnerships with casino companies.

Attendance and betting soared for opening day at Monmouth Park May 22.

The track is running a 50-day meet offering a record $50 million in purses this summer through Labor Day. The season got off to a fast start as 17,903 turned out for the opener, a 74% increase over 2009. That figure included New Jersey Gov. Chris Christie.

The total handle was $9,357,444, more than doubling the $4,279,438 wagered on last year’s opener.

“We had high expectations, and we exceeded them,” said Dennis R. Robinson, president and CEO of the New Jersey Sports & Exposition Authority. “If today’s numbers are indicative of what’s to come, then we can stamp this a rousing success.”

Mine That Bird left New Mexico on a van for Churchill Downs on Wednesday, the same trip he made before his giant upset in the 2009 Kentucky Derby Presented by Yum! Brands (G1).

Trainer Bennie “Chip” Woolley Jr. was not behind the wheel, however, after owners Mark Allen and Leonard Blach, D.V.M., decided to transfer the gelding to Racing Hall of Fame trainer D. Wayne Lukas.

“There were economic reasons, and we just thought it was the best thing for the horse to make a change,” Blach said on Wednesday. “Usually you do that because it’s in the best interest of the horse or you think that you can improve upon what you’re doing, just like Bob Baffert did in the Preakness [Stakes (G1)] changing jockeys, and it showed that he made the right move.”

Blach and Lukas have known each other for several decades dating back to Lukas’s previous career in Quarter Horse racing.

“I used to do some vet work for him at Ruidoso Downs, and I just think he has the credentials that Mark and I were looking for–a Hall of Fame trainer with the success that he has had,” Blach said. “It was good for the horse and probably a step up for us.”

Mine That Bird returned to training in mid-March at Allen’s Double Eagle Training Center in Roswell, New Mexico, where he spent a winter break after a ninth-place finish in the Breeders’ Cup Classic (G1). He closed 2009 with five straight defeats, on the heels of his 50.60-to-1 triumph by 6¾ lengths in the Derby.

Mine That Bird finished second in the Preakness Stakes (G1) and third in the Belmont Stakes (G1).

“Chip has done a wonderful job for us,” Blach said. “He won the Kentucky Derby for us, and we all had a great experience and a great time. Chip has been a great ambassador for racing and we appreciate that. We still appreciate him. He still trains horses for Mark out here.

“We just decided that he has a stable of horses out here that he needs to look after and it was the best move for this horse to step up one grade and go forward.”

Woolley told Daily Racing Form that he did not understand the decision.

“But I guess it’s not for me to understand,” he said.

Blach said the Breeders’ Cup Classic at Churchill Downs is the long-term target for Mine That Bird.

“I think with the training we have in him here—Lukas will be able to tell in about 45 or 60 days—we can maybe get him in an allowance race and get a win back on his mind,” Blach said. “The Breeders’ Cup is what we’re kind of pointing for, but we don’t have anything else in mind just yet.”

Allen and Blach are sending along a camera that enabled web visitors at www.minethatbird.com to watch the gelding in his stall over the winter.

New York Gov. David Paterson says a proposed state bailout will pass and New York Thoroughbred racing at Belmont and Saratoga will go on as scheduled.

Paterson says he expects the Legislature to approve a $17 million loan to keep the New York Racing Association afloat. Its cash flow is hurt by delays in getting video lottery terminals built and operating at Aqueduct.

Assembly Speaker Sheldon Silver says he supports NYRA. He says he hasn’t seen the legislation but the state’s most powerful legislative leader says he isn’t rejecting it.

NYRA officials say the agency is running out of money and may have to shut down in less than three weeks, the day after the Belmont Stakes (gr. I).

Attendance was up but total handle was down for this year’s Preakness Stakes (gr. I) program at Pimlico Race Course May 15.

The Maryland Jockey Club reported attendance of 95,760, up considerably from 77,850 in 2009. The increase was largely attributed to changes in policy regarding the infield.

MJC officials said about 33,200 people were in the infield this year. Last year, the infield crowd was much smaller after officials ended a bring-your-own alcohol policy.

Pimlico offered beer specials and other events in an attempt to beef up the infield crowd this year.

“It was a great day,” MJC president Tom Chuckas said in a statement. “People had a tremendous time in the infield. We adjusted the program from a year ago, and will continue to look for ways to build on the momentum we experienced.”

Weather wasn’t a factor this year, with sunshine and temperatures in the upper 70s.

Total handle for 13 races was $79,209,170, the sixth-highest in history but short of the $86,684,470 wagered in 2009.

If John Brunetti gets the answers he is hoping for from Florida regulators, he will be ready to start turning Hialeah Park into what he calls “a year-round, full-option gaming and entertainment destination” that would include a casino and the return of Thoroughbred racing.

A law Florida Gov. Charlie Crist signed April 29 allows Hialeah to have a casino with Las Vegas-style slot machines and, under its Quarter Horse permit, have up to 50% of its races for Thoroughbreds. The law, which also has benefits for Florida’s Thoroughbred tracks and other pari-mutuels, takes effect July 1.

“Our lobbyists and attorneys are trying to find out exactly what we can do,” Brunetti told The Blood-Horse May 12. “There is a great deal of discussion on what is in the law. There are things that we need to get clear before we can begin work on anything new.”

Brunetti said his questions include whether Hialeah could run Thoroughbred and Quarter Horse races on the same days. The answer appears to be “yes,” according to several pari-mutuel industry officials. He also has questions about when Hialeah would be eligible to have a casino.

Hialeah has applied to hold a 22-day Quarter-Horse meet, which can include Thoroughbred races, from Nov. 26, 2010, through Jan. 2, 2011. Officials of the Florida Division of Pari-Mutuel Wagering said holding that meet would make Hialeah eligible to open a casino in 2011.

But Brunetti, Hialeah’s owner and president, said he is still in the early stages of getting answers from the Florida DPMW.

“I am a (real estate) developer, but I need to find out what we can do before we can apply for building permits,” he said. “We would like to do these things. But we are in the middle of a jungle with this (new law).”

Any expansion at the historic track just outside Miami would follow an initial 40-day Quarter Horse-only meet it held from last Nov. 28 to Feb. 3.

Hialeah held its most recent Thoroughbred meet in 2001. After it did not hold racing in 2002 and 2003, the Florida DPMW revoked its Thoroughbred permit. That agency acted under a state law that requires license revocation if a Thoroughbred track does not hold racing for two consecutive years.

Hialeah obtained its Quarter Horse permit in March 2009. Holding its 2009-10 meet would have made it eligible for a casino under a gaming law the Florida legislature passed and Crist signed in June 2009. But the law was not enacted after the Seminole Tribe of Florida objected to some of its provisions regarding its seven Florida casinos.

This year, the legislature passed and Crist signed a bill with identical provisions as in 2009 for Hialeah and other pari-mutuel facilities. They also approved a gaming compact for the Seminoles, which officials of that Tribe signed early in May.

Unlike in 2009, enactment of the law’s provisions pertaining to pari-mutuel outlets cannot be impacted by Seminole-related developments, according to officials in the office of Florida House Speaker Larry Cretul, a Republican from the Ocala area.

The Seminole compact needs approval from the National Indian Gaming Commission, which has until the week of June 14 to act. That commission can approve the compact, reject it, or not take action. In that last situation, the compact would take effect.

Brunetti had hoped a 2010 bill would include permission for Hialeah to regain a Thoroughbred permit. It did not, and he said he will continue to ask the Florida DPMW to restore that permit.

Brunetti spent $12 million to renovate Hialeah and estimates it had a $3 million operating loss during its Quarter Horse meet. Hialeah held those races during months when nearby Calder Casino & Race Course and later Gulfstream Park held race meets.

Since the end of Hialeah’s meet, workers have been maintaining the refurbished portions of the grandstand, paddock area, and dirt track. They have taken down the temporary stalls that were in the track’s former barn area.

“We need to get our questions resolved before I will spend any more money or make more improvements,” Brunetti said.

One of his concerns is whether Hialeah, unlike in 2009-10, will be able to bring in simulcasts of Thoroughbreds and other pari-mutuel sports in 2010-11 and beyond under its Quarter Horse license. The answer is “yes,” with some qualifications, according to the Florida DPMW.

When Hialeah is running its live meet, it will be able to bring in simulcasts, probably including Thoroughbreds, from tracks in Florida and other states.

During periods when it is not holding races, Hialeah will be eligible to bring in live and imported signals from other Florida pari-mutuel facilities. But it would require permission from Calder and Gulfstream to take those tracks’ live and imported Thoroughbred signals. Working out such arrangements might prove difficult, considering Hialeah’s past disputes with those two tracks over racing dates and other issues.

During its first Quarter Horse meet, Hialeah sent its signal to about 100 outlets, including advance deposit wagering services.

Brunetti said he has met with officials of several casino companies that could become partners in developing a Hialeah casino. “I have told them that we need to resolve the issues of what we can do, and I will then get back to them,” he said.

For the track’s first Quarter Horse meet, the Florida Quarter Horse Racing Association made arrangements for trainers from Oklahoma, Texas, and other states to send horses.

“I have always said that we feel it would be OK to run our horses in a meet at Hialeah that is 50% Thoroughbred, and trainers agree,” said Dr. Steven Fisch, a Tallahassee, Fla., veterinarian who is president of the Florida QHRA. “We felt the treatment we received and everything else was favorable in the first meet, except for a squabble over total purses that we later resolved.”

New York state Senate Democrats, while considering a loan to the New York Racing Association, say they are working on a series of legislative proposals to make the state’s Thoroughbred industry profitable.

Democrats, who control the majority, rejected a Republican attempt this week to tie a $17-million NYRA loan to an emergency state spending bill.

The amendment would have been unconstitutional, forced a three-day waiting period, and shut down state government, said Austin Shafran, spokesman for the Democratic Senate conference. He accused state Sen. Roy J. McDonald (R-Saratoga) of political grandstanding, knowing the loan could not be approved.

“Amendments get approved all the time,” McDonald responded. “They’re playing Philadelphia lawyer games.”

NYRA says it is running critically low on cash and McDonald, whose district includes Saratoga Race Course, wants to make sure the summer meet is not jeopardized. With no action on the proposed loan, a Saratoga Springs group plans to move forward with a lawsuit aimed at forcing state leaders deal with racing’s fiscal problems. The suit is expected to be filed Friday.

Shafran said Democrats are fully aware of racing’s predicament and that state Sen. Eric Adams (D-Brooklyn), chairman of the Senate racing committee, has introduced a number of bills aimed at helping the industry.

“We’re committed to reforming the structure of racing in New York and making it as profitable as it can be,” Shafran said. “We’re working with NYRA on some long-term reforms to the racing industry. Senator Adams has introduced a number of bills we hope to see moving quickly through the legislative process. Overall, they would change the Thoroughbred racing industry and put it on a road to recovery.”

Among other things, Sen. Adams introduced legislation that would allow NYRA to video stream races on its website. NYRA says this move alone could generate an additional $4-million per year. NYRA also wants the state to change a regulation that prohibits separate wagers on coupled entries. This would produce several million dollars per year as well, according to NYRA.

However, such changes would take time to implement and there would not be any immediate cash benefit.

NYRA says the state was supposed to start giving it operating funds by April 1, 2009 if an Aqueduct racino was not open by then. No such money has been forthcoming. The lawsuit charges “breach of contract” by the state. Plaintiffs want the state to give NYRA $30-million, the amount they say is owed since April 2009. Plaintiffs in the suit are Saratoga County Chamber of Commerce, the group Concerned Citizens for Saratoga Racing, and nearly a dozen of the state’s largest breeding farms.

At the very least, a state rule that prohibits an owner from acquiring more than one slot machine outlet could force the Maryland Jockey Club to jump through some hoops as it pursues added gaming at Laurel Park.

At the most, the rule could keep the Maryland Jockey Club from being player for video lottery terminals.

On May 7, MI Developments Inc. announced it would partner with Penn National Gaming Inc. on the Maryland Jockey Club operations, with Penn National focusing on gaming. MI Developments took over Maryland Jockey Club on April 30 from its bankrupt subsidiary Magna Entertainment Corp.

Maryland Jockey Club is pursuing a license to operate VLTs at Laurel Park. Although a state commission had recommended an Anne Arundel mall for that license, racetrack officials hope local voters oppose that location in a November election by repealing a zoning law in Laurel County allowing machines anywhere. That would mean Laurel Park would have to be rezoned as a slots location before bidding for a license again.

There also is pending litigation that could halt or delay the local referendum.

The rule that limits ownership to one VLT operation creates a problem because Penn National already has been approved for a Cecil County location. Penn National has received a license to operate 1,500 slot machines, which could be expanded to 2,500, in Perryville. That site is projected to open late this year.

Carole Everett, Communications Director of the Maryland State Lottery Agency, confirmed the rule that limits owners to one VLT license is still in place. Lottery officials added that the rule does not differentiate between partial and full owners.

The question according to Maryland Racing Commission officials will relate to how involved Penn National is in Maryland Jockey Club ownership. Penn National’s participation could be only 49%, which means it would not have to apply for a slots license, but if it buys in for half then regulators would have to decide if that merits needing a license.

The companies have not disclosed terms of their deal, which includes Penn National’s likely stake in Maryland Jockey Club.

Maryland Jockey Club’s pursuit of a VLT license previously has been hindered by a failure to follow state rules. Laurel Park had been considered the frontrunner for a VLT license until previous Maryland Jockey Club owner Magna Entertainment failed to submit a $27.5-million payment with its license application, arguing it received no guarantee that the money would be returned if Laurel was not awarded the license. The Maryland Video Lottery Facility Commission then awarded the license to the Anne Arundel mall.

The defection of Churchill Downs Inc. from the National Thoroughbred Racing Association won’t impact Churchill Downs’ hosting of this year’s Breeders’ Cup World Championships.

Breeders’ Cup, as part of a joint operating agreement it entered with the NTRA in 2001, adopted a policy whereby only NTRA-member racetracks could host the event. The joint operating agreement ended in 2008.

The NTRA members-only policy was abandoned soon after the two organizations in 2006 agreed to have separate budgets. They continued to work on joint projects for the next few years.

“While Breeders’ Cup remains a strong supporter and dues-paying member of the NTRA, it is no longer a policy of our organization to restrict hosting the Championships to racing associations that are members of the NTRA,” Breeders’ Cup president Greg Avioli said May 10.

CDI, which owns Churchill, Arlington Park, Calder Race Course, and Fair Grounds Race Course & Slots, notified the NTRA the week of May 3 it wouldn’t renew its membership for 2010 but would revisit the decision in future years. CDI would have paid $375,000 in dues this year.

The NTRA for various reasons has backed away from spending a large part of its budget on getting horse racing on television, a decision that didn’t sit well with some industry officials. CDI this year spent about $2 million to line up TV coverage of major preps for the Kentucky Derby Presented by Yum! Brands (gr. I).

The NTRA in recent years has focused on legislative advocacy, particularly in Washington, D.C., in an effort to protect the pari-mutuel wagering system and simulcast rights and win tax relief for owners, breeders, and bettors. It also took the lead in the area of equine safety through its Safety and Integrity Alliance, which was launched in 2008.

Churchill in 2010 will become the first non-NTRA-member racetrack to host the Breeders’ Cup since the NTRA was launched in 1998. No host sites have been named beyond this year.

MI Developments Inc., which took control of the Maryland Jockey Club following Magna Entertainment Corp.’s bankruptcy, has entered into an agreement with Penn National Gaming Inc. to operate Laurel Park and Pimlico Race Course in a joint venture with the Pennsylvania-based gaming company.

Penn National operates its flagship racino in Grantville, Pennsylvania, as well as Charles Town Races in Charles Town, West Virginia, along with several other racinos and standalone casinos throughout the East Coast and Midwest.

“Penn National and [MI Developments] will work collaboratively to strengthen and enhance the racing operations at Laurel Park and Pimlico, to maximize the use and value of the Maryland Jockey Club’s real estate assets and to pursue other opportunities, including the potential for gaming, to maximize the overall value of the business,” said a Penn National statement released 8:35 a.m. EDT Friday.

MI Developments was the parent company of Magna Entertainment, and it acquired many of its assets, including Maryland Jockey Club, Gulfstream Park, and Santa Anita Park, following bankruptcy. Frank Stronach founded both companies, and he is chairman of MI Developments.

As chairman of Magna Entertainment, Stronach had said that his company would pursue ventures with other companies to help operate Magna’s assets. The Maryland Jockey Club is hoping to expand gaming at Laurel Park to include video lottery terminals.

“This transaction is consistent with our plan to enhance the returns of our racing and real estate assets and pursue other opportunities, including the potential for gaming, to benefit the value of the Maryland Jockey Club,” MI Developments Chief Executive Dennis Mills said. “Penn National is a strong partner with complementary pari-mutuel, real estate, and gaming industry expertise as well as a strong financial position. We look forward to working with Penn National, the racing industry and local regulators to develop business models that will ensure the ongoing success of these high quality assets.”

“We are excited to acquire an interest in the Maryland Jockey Club, owner and operator of a pair of the country’s most historic racing venues,” Penn National Chief Executive Peter Carlino said. “Our involvement with Pimlico, home to one of the Thoroughbred racing’s crown jewels, the Preakness Stakes, and Laurel Park, is consistent with Penn National’s strategy of expanding and diversifying our portfolio of pari-mutuel operations and presence in key markets.

“We look forward to working with MI Developments on the re-development of surplus real estate assets at the Maryland Jockey Club, as well as collaborating with the local horsemen and community members and leaders in [Maryland] to support their efforts to continue delivering a high-quality racing experience at these two historic racing venues.”

Penn National has tried to enter the Maryland gaming landscape before. It backed out of a deal to acquire the Washington D.C., area Standardbred track Rosecroft Raceway in 2007, and in ’08, secured an option for 36 acres of land in Cecil County that could have been a gaming site. Penn National also was viewed as a likely bidder if Magna Entertainment had auctioned its Maryland assets.