Magna Entertainment Corp. issued a press release today announcing a strategic business plan to sell two of the companies thoroughbred racetracks. The Thistledown racetrack just outside of Cleveland, Ohio and Portland Meadows in Portland, Oregon are the targeted properties, which have apparently become unprofitable assets to Magna Entertainment. Due to "difficult operational and regulatory challenges", Magna's Interim CEO and Chairman, Frank Stronach, stated the company would be immediately pursuing the sale of the two racetracks.

Most of Magna's losses have come from their efforts in trying to expand gambling opportunities in Ohio and Portland. Spending over $3 million in referendum costs in Ohio, the Thistledown property incurred a total loss of $4.5 million before taxes. A bid to introduce alternative casino gambling in Ohio was shot down on the November 7, 2006 ballot, thus giving the racetrack a bleak outlook on future expansion.

In Oregon, pre-tax losses at Portland Meadows were just under $.1 million. Magna had definitely been putting its energy and focus in the Oregon betting market, which offered great potential following a 2006 ruling by the Oregon Racing Commission to permit Portland Meadows to offer instant racing machines. The company had even set up fourteen offtrack betting facilities in Oregon - all geared toward Portland Meadowlands. However, the State Attorney General pulled strings to have the ruling revoked by the Oregon Racing Commission in June of this year, which is anything but promising for the Oregon racing industry.

Portland Meadows had been in operation for the last six years. Despite the dropping of these two properties, Magan Entertainment says they are still committed to the racing industry.

Better news for the thoroughbred racing industry has surfaced in Pennsylvania, where Centaur Inc. was approved today for a license to build and operate a mile-long harness track. Given a green light by the Pennsylvania Harness Racing Commission, Centaur has plans laid out to operate the Valley View Downs harness track on a 250-acre plot in Lawrence County, which is approximately fifty-five miles from Pittsburgh. When opened to the public, the track will host 150 days of live racing and 363 days of simulcast races.