New Mexico track being sold to Penn National Gaming
Associated Press

HOBBS, N.M. - Just over a year after a celebrated opening, Zia Park racetrack and its Black Gold Casino will be sold to Penn National Gaming Inc. for $200 million, the Pennsylvania-based corporation said Wednesday.

Penn National said it had a "definitive" agreement for the purchase. The sale, subject to approval by the New Mexico Gaming Control Board, the New Mexico Racing Commission and other regulatory agencies, is expected to be completed by mid-2007.

Zia Park, owned by Zia Partners LLC, opened with considerable fanfare a little more than a year ago, while the track's casino opened in November 2004. The entire facility occupies 320 acres.

Zia Partners earlier this year reported the track and casino operations generated approximately $69.7 million in revenues and $24.5 million in earnings for the 12 months ending Sept. 30, 2006.

The track, located in southeastern New Mexico's Lea County, draws many of its horse racing fans and casino players from West Texas. The track also has provided an expanded economic base for Lea County - historically heavily dependent on oil exploration.

Penn National, a longtime player in the country's horse racing industry, operates racetracks in Pennsylvania; Bangor, Maine; Charlestown, W.Va.; New Jersey and Toledo, Ohio. It also runs casinos and gaming facilities in several other states, including Colorado, Indiana, Illinois, Iowa, Louisiana, Missouri, Mississippi, and Ontario, Canada.

"Zia Park was a very natural fit for us," said Eric Schippers, vice president of public affairs for Penn National. "It's a two-year-old facility that has shown a good deal of success, and we're hopeful we'll be successful in getting approval."

Peter M. Carlino, chief executive officer of Penn National, said the company based in Wyomissing, Pa., was looking forward to being in New Mexico.

"We're excited to be adding Zia Park to our diverse portfolio ... and to be entering a market where the state has worked collectively with racing and gaming to create a favorable environment," Carlino said in a statement.

Zia Park's current ownership team includes R.D. Hubbard, who also owns Ruidoso Downs racetrack and Bruce Rimbo, the president of Zia Park. Rimbo and Hubbard were not immediately available for comment.

Zia Park is currently in the midst of its 49-day racing meet. The track runs thoroughbred and quarter horse racing four days a week and offers simulcast racing year-round.

Julian Luna, agency director for the New Mexico Racing Commission, said the commission will conduct extensive background checks on Penn National and its management.

Typically, such background checks can take several months to complete, but Luna said the fact Penn National is licensed in other states could speed up the process.

"One of the positives in it is they are licensed in other racing and gaming jurisdictions," Luna said.

Zia Park is one of five tracks in New Mexico, all of which operate casinos. The others are Sunray Park in Farmington, Sunland Park near El Paso, Ruidoso Downs and The Downs at Albuquerque.