PORTLAND (AP) – Scarborough Downs is suing the Las Vegas investor who helped to legalize slot machines at Maine’s commercial harness-racing tracks, saying he undermined efforts to win local support for slot machines in southern Maine.
Davric Maine Corp., owner of Scarborough Downs, contends Shawn Scott formed sham political action committees, filed frivolous lawsuits and spread misleading information in an attempt to keep a monopoly on state slot machines at the Bangor Raceway.
Scott had a deal to put slots at the Bangor Raceway but ultimately sold his Bangor operations to Penn National Gaming Inc. for $51 million.
“Defendants have made millions of dollars (in) this scheme, never having invested any meaningful resources into Maine harness racing and have intentionally caused plaintiff’s business, Maine’s largest commercial track, to suffer and be in financial peril,” the lawsuit states.
Scott’s company, Capital Seven, drafted the referendum approved two years ago by state voters, allowing up to 1,500 slot machines at commercial harness-racing tracks in Bangor and Scarborough.
But only Bangor provided the necessary local approval; Scarborough Downs failed to find a willing host community after Scarborough residents rejected slots. Westbrook and Saco also rebuffed Scarborough Downs.
According to the lawsuit, public opinion in Westbrook favored slot machines before Scott and his company and political action committees interfered.
As part of the lawsuit, Scarborough Downs is asking the court to order Penn National to delay a final payment of more than $30 million to Scott.
Lawyer Martin Gersten of Newtown, Conn., who previously represented Scott on gambling issues, said Monday that he is not currently representing Scott or Capital Seven. He had comment on the lawsuit.
Penn National is not targeted by the lawsuit. It plans to open an interim slots parlor, Hollywood Slots, on Nov. 4. Eventually, it hopes to build a permanent facility within 2,000 feet of the Bangor Raceway.
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Information from: Portland Press Herald, http://www.pressherald.com
AP-ES-10-24-05 1606EDT
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