Winston Capital Corp., a Dallas-based investment firm, is leading the group that is buying Louisiana Downs, a horse-racing track in Bossier City, La.
Richard Barge, president of Winston Capital, declined to reveal the purchase price. The group buying the track includes investors from Texas and northern Louisiana, he said.
The first reports of the proposed sale came out a month ago, but they didn’t identify Winston Capital’s role.
"That group is bringing the bulk of the equity," said Shreveport lawyer Jim Davis, the only member of the purchasing group previously identified.
Neither Mr. Barge nor Mr. Davis would name the investors behind Winston Capital. Each, however, must be cleared by the Louisiana Racing Commission.
Once the proposed deal passes regulatory hurdles, probably in the first half of the year, Winston Capital said, it plans to invest $30 million in refurbishing the track. The company also plans to build a hotel and add to the gambling options with slot machines.
The Edward J. DeBartolo Corp., whose businesses include shopping malls and the San Francisco 49ers football team, is the track’s current owner. It had made a similar proposal for improvements for $90 million. The Winston Group is reviewing those plans, and it may trim costs by opting for a smaller hotel.
Privately held Winston Capital, which Mr. Barge started in 1999 with partners Jason Nix and Roger Johnson, has concentrated its activities in real estate, including apartments, office buildings, storage facilities and raw land.
The Louisiana Downs deal includes about 150 acres of undeveloped land at the track, plus an option to buy 300 adjacent acres.
Mr. Barge said the investors are considering restaurants and tourist attractions for the track, which sits at the intersection of interstates 20 and 220 east of Shreveport.
"We are looking at it as an entertainment complex, where you appeal to people other than the traditional horse-racing enthusiasts," Mr. Barge said.
Louisiana Downs, which just finished its 28th season, has had financial troubles in recent years, especially as casinos expanded in Louisiana and siphoned away gamblers. In March, the Louisiana Gaming Control Board approved the installation of 1,800 slot machines at Louisiana Downs.
Mr. Barge said the casino-style machines would not only draw fans but also fatten purses. The state stipulates that 18 percent of the slot-machine revenue go to the horsemen. Bigger purses will help upgrade the racing program by attracting better horses, Mr. Barge said.
Louisiana Downs will be Winston Capital’s first foray into racing, so Mr. Barge intends to turn day-to-day operation over to a professional staff.
"We’re an investment company," he said. "We put people in the right place. We have looked at a team of individuals who do have experience."
