ALBUQUERQUE — Raton won the derby for New Mexico's final racino license on Monday, but Pojoaque Pueblo's bid for a combination race track and casino south of Santa Fe ended before it even left the gate.

The state Racing Commission unanimously denied the pueblo's application based on a little-known statute designed to regulate competition between neighboring racetracks.

Because Pojoaque's Downs at Santa Fe is within an 80-mile radius of the Downs at Albuquerque and the Albuquerque track officials were unwilling to reach an agreement with Pojoaque, the commission quickly rejected the pueblo's application.

The commission next denied Tucumcari's before meeting loud applause by approving Raton's application.

Rejection of the pueblo's bid didn't seem to surprise tribe Chief Executive Officer Allen Mosley or Pojoaque Tribal Council member Tim Vigil, who sat together in a corner of the packed Racing Commission meeting room.

Last month, Mosley said Monday, "we requested a meeting with Albuquerque, and they refused to meet with us."

Efforts to reach Downs at Albuquerque co-owner Paul Blanchard were unsuccessful. Blanchard and owners of the state's other racinos had endorsed the Raton site in the state's northeastern corner, primarily because of its longer distance from any of their tracks.

A commission lawyer explained that under the 80-mile-radius law, racetrack A can't simulcast races while track B is holding live races unless it has the blessing of racetrack B. Furthermore, if racetrack A can't show simulcast races, it also can't run gambling equipment such as slot machines.

And slot machine revenue has been credited with helping to keep alive pari-mutuel wagering on horse races in New Mexico, particularly because the live racing season is short.

"But that works both ways," Mosley said, explaining that had Pojoaque gotten the license, the Downs at Albuquerque would have needed the pueblo's permission to have simulcast racing whenever the pueblo held live races. "Obviously the track in Albuquerque determined they didn't want us to get a license," he said, "and we respect that decision."

Pojoaque bought the Downs in 1996, closed it the next year and applied for a racino license in 2005. It was the only applicant with an existing facility.

The tracks at Albuquerque and Santa Fe — which had racing seasons at different times of the year — used to work together, Mosley said. He provided no specifics on what will become of the Downs at Santa Fe, which has been the site in recent years of soccer matches and music concerts.

"We'll find something," he said, adding the pueblo has been busy with the startup of its new Buffalo Thunder Resort and Casino on tribal land north of Santa Fe.

Vigil called the situation with the Downs of Albuquerque unfortunate. "In years past, all the tracks worked together to complement each other," he said.

Racing Commission member Larry Delgado, Santa Fe's former mayor, joined the unanimous vote after learning the Downs at Albuquerque declined last month to reach a deal with Pojoaque. Delgado was the first to show the commission's leanings toward Raton, later explaining that most of the state's racetracks are south of Interstate 40.

Commission Chairman Arnold Rael said he liked that Raton offered more racing days than Tucumcari, 60 compared to 52, and more horse stalls, 1,500 compared to 1,200, and a summer racing season. Because of the summer heat, he said, many Southern New Mexico tracks stage races mostly in the spring.

"Right now, we want more race days," Rael said after the vote. "Everyone's clamoring for more race days. The horsemen are clamoring, the owners are clamoring, the breeders are clamoring."

Lawrence Tombari, a consultant for the Tucumcari team, which was headed by Albuquerque car dealer and major political contributor Don Chalmers, sounded perplexed by the commission's decision. The team's applications argued at length why Tucumcari was a better choice than Raton.

"I think that Raton has had the advantage of being so far away from the other tracks," Tombari said. "Of course, that works for and against us because Raton is not near much of anything, particularly a large population base."

Tucumcari had hoped to draw most of its patrons from Texas, primarily Amarillo, which is a 90-minute drive to the east.

Raton, whose biggest single employer is state government, hopes to draw crowds from five states — New Mexico, Colorado, Texas, Oklahoma and Kansas. The town lays claim to having the state's first racetrack, which operated from 1946 to 1992.

"I can't describe how important it is. It's a new beginning for us," Mayor Joe Apache said. "We had the experience in the past. ... This is going to be a regeneration of what we used to have, and it's going to provide a great economic development opportunity for us.

"Raton is a town of almost 8,000 people, and I want us to be a town of 16,000 people. We'll still have the rural flavor, but we will have the moneys to run a city."

The Raton team, headed by Canadian developer Michael Moldenhauer, plans to open the racino in 2010.

Once the licensing process is completed, the Raton operation will become the state's sixth and final racino. The state cannot license more than six racinos under a gambling compact reached between the state and several tribes with casinos.

Contact Doug Mattson at 986-3087 or dmattson@sfnewmexican.com.