Racing board chairman asked to recuse himself
Nevada company says Willis’ ties to other racino bidder create conflict of interest
A company seeking state approval to build a horse-racing track in Clovis has asked the chairman of the New Mexico Racing Commission to recuse himself from the licensing process because of his business ties to principals in another company competing for the license.
Full House Resorts, a Las Vegas, Nev., casino company, made the request in a letter last week to commission Chairman Ray Willis.
“The business and personal relationships outlined in the news media between you and the principals of one of the competing proposals cause us concern that our proposal will not receive a fair evaluation,” wrote Daniel Lee, CEO and president of Full House.
By putting Willis on notice that it is concerned about the fairness of the licensing process, Full House could be laying the foundation for a court challenge should Willis not recuse himself and Full House lose its bid for the license.
Full House provided a copy of the Willis letter to state Attorney General Hector Balderas, whose office has been advising the Racing Commission on the licensing process.
Willis couldn’t be reached for comment Wednesday.
The Full House letter cited a story by The New Mexican in October on the business ties between Willis and principals in Clovis Racetrack and Casino, which is competing with Full House and three other companies for state approval of what would be New Mexico’s sixth horse-racing track and slot machine casino.
Individually or through his horsebreeding farm, Willis has co-owned horses with Shaun Hubbard, who heads Clovis Racetrack and Casino; Hobbs businessman Johnny Cope, an investor in the company; and former Ruidoso Downs and Hobbs track owner R.D. Hubbard, grandfather of Shaun Hubbard.
Willis, Cope and R.D. Hubbard are three of the four owners of a horse that won the $1.2 million All American Derby in September at Ruidoso Downs.
Willis, a Roswell oilman, told The New Mexican in October that he didn’t have a “conflict at all” because of the shared horse ownerships.
“I have been able to rule as a regulator on many, many people who were my friends and neighbors,” said Willis, who added he has been in the horse-racing business for 35 years.
As chairman of the five-member Racing Commission, Willis has overseen the agency’s solicitation and review of applications for a new track and casino.
Full House, the Hubbard group and a third company are competing to build in Clovis. There also are proposals for tracks in Tucumcari and Lordsburg.
The Racing Commission’s selection of a winner has been put on hold pending resolution of a court action that seeks to force the agency to conduct a second feasibility study before awarding the license. A hearing on the litigation is set for April 4.
Full House CEO Lee, in his letter to Willis, wrote that the awarding of the license “should be done in a manner to prevent perceptions of conflicts of interest.”
Lee added that the company has invested significant time and resources in developing its proposal for a track and casino.
“As such, we want to ensure that our proposal is fairly measured against the other proposals on its merits,” he wrote. “The process should not be tainted by political contributions or past business relationships … and the process should reflect only the highest degree of integrity.”
The Hubbard group has long been considered a front-runner for the track license because of its longtime involvement in the racing industry in New Mexico and because of its political ties to both former Gov. Susana Martinez and Gov. Michelle Lujan Grisham.
Individuals and companies tied to the Hubbard group donated more than $25,000 to Lujan Grisham’s campaign and at least another $22,000 to the governor’s inauguration committee, according to campaign and committee records.
Lujan Grisham received campaign and inauguration donations linked to others seeking the track license, but those contributions were much smaller than the money that flowed from the Hubbard group. Neither Full House nor Lee has made donations.
The Hubbard group has proposed spending $55 million on the track, casino and related facilities, the least amount of money of the companies seeking state approval for the so-called racino. Full House has proposed spending $200 million, the largest amount.
Lujan Grisham, who has authority over the Racing Commission, hasn’t weighed in yet on whether she wants the commission to proceed with issuing the track license once the court action is resolved. Existing tracks, which oppose another racino, also made large donations to her campaign and inauguration.