The New Mexico Gaming Control Board on Tuesday denied a request by Horse Racing at Raton LLC to renew its gaming license.

The denial means that it’s likely that Horse Racing at Raton and its president, Toronto-based developer Michael Moldenhauer, will cease further construction on the planned $50-milion racino project. On May 19 in Albuquerque, the New Mexico Racing Commission will vote on whether or not to revoke the company’s racing license, and at this time it appears that the five-member board will do just that.

When the Racing Commission approved Horse Racing at Raton’s racing license in 2009, it did so under the condition that the company obtain a gaming license from the Gaming Control Board, which it did. But the Gaming Board, citing failure to comply with several deadlines, voted unanimously to pull the plug on Horse Racing at Raton’s gaming license following a public session that lasted less than 30 minutes and included comments from Raton mayor Jesse James Johnson.

“This is a sad day for the people of Raton, and it’s a sad day for the breeders and horsemen in this state,” said Gaming Board chairman David Norvell after the vote. “It’s also a sad day for the state of New Mexico, because the state has been anticipating tax revenue from this project.

“We on the board were all troubled by having to vote on this issue,” he added.

One of the deadlines, May 1, was set by the Gaming Board for Horse Racing at Raton to have its temporary casino up and running. That would have given the company a short time to build up a purse account for its inaugural meet, which was scheduled to begin May 28.

“Mr. Moldenhauer said he could meet that date, but that date came and went,” Norvell said.

Norvell also read a letter sent to the Gaming Board by New Mexico Horsemen’s Association president Pat Bingham, which said in part, “We have lost all confidence in the ability of (Horse Racing at Raton) to deliver on its obligation to operate a racino in 2010.”

In January 2009, the Racing Commission unanimously approved a request by Horse Racing at Raton to run a 60-day meet, beginning in May 2010. Raton beat out two other cities – Santa Fe and Tucumcari – for New Mexico’s final racino license.

Warren Frost, the executive director of the Quay County County Gaming Authority and a Tucumcari attorney, attended Tuesday’s meeting.

“We’re sympathetic to the folks in Raton, but a track won’t work in Raton – it didn’t work years ago, and it won’t work today,” Frost told the Gaming Board before the vote. “Raton isn’t the only town in this state that would benefit from a project like this.

“Our team is still intact,” he said after the vote. “We plan to file a new license application within the next two or three weeks, depending on what action the Racing Commission takes at its next meeting.”

Technically, it is possible for a racetrack to operate in New Mexico without a gaming license. However, because gaming revenues contribute as much as 90 percent of purse revenue, a track without a casino is economically unfeasible.

If the Racing Commission does revoke Horse Racing at Raton’s racing license, it will re-open the application process. Assistant attorney general Tania Maestas said that any new application would be for the 2012 racing season.

Racing Commission chairwoman Marty Cope, who is also a Gaming Board member, said that she still thinks Raton is the best place for New Mexico’s sixth racino.

“Raton is a big part of the history of New Mexico racing, and it is the position of the Racing Commission that Raton is the best place for a new track,” she said.

In response to the Gaming Board’s vote, Moldenhauer said he invested six years and $2.5 million in the Raton racino project, “before we even arrived at the licensing process.” He said he plans to appeal the decision.

“I’ve been at this a long time, and I’ve invested a lot of money,” Moldenhauer added. “It’s a sad day for Raton, to be within weeks of a hundred people being employed there. How could (the Gaming Board) possibly think it’s in the best interests of the state stopping this process in its tracks?”