CDI Eyes Maryland Presence With Ocean Downs

Casino at Ocean Downs, a harness track on the Eastern Shore of Maryland, is in the process of being purchased by Churchill Downs Inc. and Saratoga Casino Holdings from Delaware Park owner William Rickman.

Under the joint venture, announced Aug. 2, the two parties will purchase all equity interests in Ocean Enterprise 589 LLC, Ocean Downs LLC, and Racing Services LLC. CDI and SCH, which owns and operates Saratoga Casino & Raceway, a harness facility in upstate New York, have formed a new 50-50 entity called Old Bay Gaming & Racing.

Because CDI owns 25% of SCH, it will "indirectly own" another 12.5% of Old Bay, according to a release. Ocean Downs, like Delaware Park, is privately owned by Rickman; economic terms of the transaction are confidential.

Ocean Downs, located not far from Ocean City, has about 800 video lottery terminals and electronic table games. It offers a summer harness meet and offers year-round simulcasts.

The deal was announced the same day The Stronach Group closed on its purchase of Rosecroft Raceway, located in Maryland south of Washington, D.C., from Penn National Gaming Inc. The purchase gives the TSG a major simulcast outlet to go along with its growing off-track betting network in Maryland.

TSG owns and operates Laurel Park and Pimlico Race Course under the Maryland Jockey Club banner. The purchase of Ocean Downs—it is subject to approval from state agencies such as the Maryland Lottery and Gaming Control Agency and Maryland Racing Commission—gives CDI, which operates the TwinSpires.com account wagering service, a presence in Maryland.

Rickman will serve as a senior adviser to Old Bay in his capacity as executive vice president of Maryland Gaming.