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Investors Eye Troubled New York Track

SYRACUSE, New York -- A California harness racing track company may take over the financially troubled Vernon Downs.

A spokesman said Wednesday that Capitol Racing has an option to buy 52 percent of the stock in Mid-State Raceway, which owns Vernon Downs in Madison County. Mid-State includes the track, a hotel and an empty casino.

Capitol Racing isn't the first out-of-state company to take over the track. Raceway Ventures, of Florida, controls the track now. A Las Vegas investor ran it before that.

In April, the Florida investors bought the stock for $9 million, but newspapers revealed that a partner was a convicted felon with Philadelphia mob ties.

The New York State Racing and Wagering Board denied racing licenses to the previous owners and said the current owners must sell out within three months.

Vernon Downs is about $26 million in debt and must spend about $500,000 a month to survive, according to Mid-State records. The casino, which would hold video lottery machines, hasn't opened yet. It was supposed to open more than a year ago and draw $80 million annually.

Copyright © Las Vegas Sun. Inc. Republished with permission.

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