PORTLAND (AP) – The acrimonious relationship between Las Vegas businessman Shawn Scott and Penn National Gaming turned nastier this week with disparaging TV and newspaper ads aimed at Penn National.

A political action committee funded by Scott’s company, Capital Seven, began running a television ad this week implying that Penn National was responsible for an alcohol-related car accident in West Virginia.

The PAC, known as Maine Opportunities, also bought a full-page ad in a weekly newspaper accusing Penn National of violating federal money laundering laws.

Scott is now going through a state hearing process for a license to operate Bangor Historic Raceway, where he hopes to install up to 1,500 slot machines.

Penn National, based in Wyomissing, Penn., and Scarborough Downs want to build a horse track with slots, known as a “racino,” in either Saco or Westbrook.

Saco and Westbrook voters will decide Dec. 30 whether to allow a racino in their cities.

Eric Schippers, vice president of public affairs for Penn National, said Scott is running a smear campaign to close down Scarborough Downs and create a racino monopoly for himself in Bangor.

He said Scott is a “bad element” who “taints” the gambling industry.

“He has truly crossed the line,” Schippers said.

Scott last month filed a lawsuit against Scarborough Downs, claiming that he, not Penn National, is the track’s partner in its effort to build a racino in southern Maine.

The television ad that Maine Opportunities is running relates the story of a family in West Virginia whose vehicle was hit by a drunken driver the ad suggests was served free drinks at a racino owned by Penn National.

“It points to a lackadaisical style of management in another state. We think it is a tragedy that could have been avoided,” said Kathleen Newman, treasurer of Maine Opportunities.

Schippers said the accident was a tragedy and that Penn National has been sued by those who were injured. But he accused Scott of exploiting a tragedy and said the ad’s logic is faulty.

Both he and Dennis Bailey, spokesman for the anti-racino group Casinos No!, said the ad is disingenuous since Scott wants to run a racino of his own that serves alcohol. Maine law prohibits serving free drinks.

Schippers said a print ad that accuses a Penn National casino of violating money laundering laws is simply wrong. He said the casino in question in Biloxi, Miss., is not owned by Penn National, but by a Las Vegas-based company.

Newman declined to comment on the print ad, which ran in the American Journal, a weekly newspaper based in Westbrook.

AP-ES-12-18-03 0217EST