Plans by Magna Entertainment Corp. to reorganize and emerge from bankruptcy are increasingly hinging on whether a judge will allow its parent company to use hundreds of millions of dollars of Magna's debt as credit to bid on its racetracks, according to officials involved in the bankruptcy process.

Magna Entertainment Corp., the bankrupt racetrack operator, will not name a lead bidder in its ongoing process to auction off its two Maryland racetracks, Laurel Park and Pimlico Race Course, according to a lead official in the court's bankruptcy reorganization.

The British-based company Betfair is continuing to enlarge its presence in the U.S. racing industry despite controversy over the company's betting exchange business model and the way betting exchanges generate revenue for racetracks and horsemen.

Churchill Downs Inc. is poised to become the dominant account-wagering company in the United States if a planned merger with Youbet.com is approved by regulators and the two companies' shareholders.

Without figures from the Breeders' Cup to prop it up, wagering on U.S. races during the month of October was down 17.2 percent compared with handle during October of last year, according to figures released by Equibase on Wednesday. In addition, purses distributed in U.S. races fell 15.6 percent, largely because of the addition of Breeders' Cup purse distributions in the October figure last year.

Magna Entertainment Corp. has asked a bankruptcy judge to throw out an agreement with the former owners of the Maryland Jockey Club that would allow the former owners to keep a portion of slot-machine revenue at Maryland tracks, according to court papers.

Churchill Downs Inc. made a $2.3 million payment to the Internal Revenue Service in the third quarter because of "proposed adjustments" to its tax liabilities from 2004-2007 that arose out of a recent audit of the company's finances, Churchill said late Wednesday.

LEXINGTON, Ky. - The Kentucky Horse Racing Commission on Tuesday unanimously approved a 2010 live racing schedule that pares 33 dates from the number of live cards the state's racetracks held this year, with the brunt of the reduction coming from Turfway Park in northern Kentucky.

California Gov. Arnold Schwarzenegger signed a bill Friday that would allow racetracks in the state to seek approval to raise takeout rates for any bet to up to 25 percent of the handle, according to state records.

A company owned by the Chickasaw Nation on Friday prevailed in a second auction for the operating assets of Lone Star Park by outbidding Penn National Gaming Inc. for the Magna Entertainment-owned business, according to officials involved in Magna's bankruptcy.

Global Gaming Group, a wholly owned subsidiary of the Chickasaws, bid $47,857,000 for the assets, which includes a lease on the Dallas-area racetrack and its racing license, according to Magna's lead bankruptcy attorney, Brian Rosen. The property itself is owned by the city of Grand Prairie.