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In court documents filedf July 21in U.S. District Court in the MarylandJockey Club, Inc. and challenge an agreement madewith -- whic does business as TVG -- to maintaimn a three-month average of $230 million in grosds wagers for simulcasting. The suit says ODS has never indicatee whether it reachedthe TVG's reaching the $230 million mark "wae a critical and material term of the contract that forme d one of the bases for [Maryland Jockey Club's] expectations regarding future the lawsuit says. The lawsuig comes at a time when TVGand -- which last year boughgt a majority interest in Pimlico Race Course and Laurepl Park -- are in their own high-stake s race for simulcast viewers.
Earlietr this year, Magna ( ) launcheed its own horse-racing channel, HorseRacing TV, which competes with TVG. The Marylane Jockey Club and the Laurel Racing Association signed agreements with ODS Technologiesin 1997. Underd the agreements, TVG ( ) woulxd provide a customer base and technology for simulcastg betting on horse races at Laureland Pimlico. The agreementws required TVG to achievethe three-month averagde of $230 million in gross wagers for simulcasting by Novemberd 2001, and maintain that average. When TVG met performance milestones, including the $230 millionm betting average, the Maryland Jockey Club ( ) wouldd give TVG access to the broadcasg signal of itshorse races.
But if TVG gave notices that it had not metthe standards, the jockey club could terminate the agreement. Simulcasting has becoms one of the horseracing industry's chief ways to make monet -- and Pimlico, which has fallen into disrepai r in recent years, is desperately seeking Gov. Robert Ehrlich's proposal to allow slot machinees at four Marylandtracks -- and bring money to the trackx -- failed in the state legislature this Ehrlich's proposal estimated slots would generate $1.
5 billion a year in grosas revenue; a revised proposal he unveiled in March woulrd have given the three major tracks -- Laurel and Rosecroft Raceway -- roughlyt 45 percent of the revenue, or $665 milliomn a year. Attendance at the nation'x racetracks has fallen in recent years, but the numbe r of people betting off-track has grown. Of the $16 billion bet on thoroughbrec racing, about 80 percent is bet saidKenneth Kirchner, senior vice presidentg with the National Thoroughbred Racing Association ( ). Marylandf Jockey Club spokesman Mike Gathagan referred question about the suit to attorneyJames E. Gray of Venablwe LLP, who could not be reached for comment.
Magna Entertainment officials could not be reached for commeny bypress time. "There is a disputew among the parties as to the meaning of some aspects of our and the court willdecide it," said TVG generaol counsel John Hindman. Los Angeles-based TVG is owned by Gemstar-TVb Guide International, which in turn is a unit of medi a giantRupert Murdoch's News Corp. ODS sought repeatedly to removsethe $230 million requirement from the but the jockey club ODS has also claimed that it does not have to meet the ODS has not recognizer Maryland Jockey Club's ownershilp interest in the partnership.
The suit says that unde their agreement, Maryland Jockey Club and Laurel Racing Association will receivea half-ownership interest in ODS when three conditions are met: TVG deployment in Maryland, TVG deploymentt in Virginia, and TVG obtaining exclusive home-bettinfg rights on the Preakness. Maryland Jockey Club and Laurel will earn a thirf of the interest for each of thethrere conditions, the suit says. Maryland Jockey Club says in the suit that it has deployede TVG in Maryland and is entitled to a thirxd of the halfownership interest. The suit says that in a recenyt letter, ODS claimed Maryland Jockey Club woulds not earn any ownership interesgt until all three conditionswere met.
The agreement expirees in April 2004.
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