Editors of the satirical newspaper The Onion could not have come up with a better story: "State loses money at slot machine it rigged."

The story would be really funny except that it's not elected and appointed officials who are losing - but Maryland taxpayers, again.

Not only did they fail to sponsor slots legislation that will make any money for the state, at least in the near term, but they are now proposing a bill to allow the state to buy or condemn through eminent domain Pimlico Race Course and all the rights associated with its biggest race, the Preakness Stakes. It also gives the state the same authority over Laurel Park racetrack and Bowie Race Course training center, all owned by bankrupt Magna Entertainment.

I wonder what reasoning did Gov. Martin O'Malley and the sponsors of the legislation used - Magna couldn't make any money, but we probably can? Or did they even care about profit,so transfixed by ensuring this Maryland tradition stays in Maryland, no matter the consequence?

O'Malley said "our centuries-old heritage of horse racing and horse breeding is woven deeply into the cultural fabric of Maryland" in outlining the legislation. He also said the industry employs 20,000 people in the state and generates $1.5 billion each year.

Other officials said they did not want the Preakness to go the way of the Baltimore Colts who left town in the middle of the night. But what, ultimately, was so bad about that for the millions of people who now cheer the Baltimore Ravens?

And the irony of the situation is exquisite. O'Malley pushed slots legislation to save horse racing, but with slots failed, Marylanders not only likely will pay for the services promised by slots through higher taxes - but bail out the horse racing industry. What a deal!

Let's recap the events of the past year. Supporters of the slots constitutional amendment promised hundreds of millions for schools and horse racing and minority business development. The Maryland State Teacher's Association heartily endorsed the legislation because, "schools will face serious cutbacks if the November referendum does not pass."

Legislators hemmed and hawed for years before putting the question to a vote of the people. It passed, but the restrictions and regulations attached to operating a slots venue in Maryland, combined with the horrific financial timing, produced less than a handful of legitimate bids for the five authorized licenses.

With those results the $600 million plus each year anticipated by the state went poof. And it's unclear if the Anne Arundel County Council will approve the proposal by Baltimore developer David Cordish to put 4,750 machines at Arundel Mills mall as the original plan called for slots at Laurel Park.

Cordish is one of a number of people bidding to buy the racetracks. But if he wins the right to build and operate a slots casino at Arundel Mills and the right to buy the tracks, the taxes he generates from slots would be used to subsidize his horse racing operations. Sweet deal - wish our legislators could have thought of that.

Lawyers for Magna have said the legislation, if passed, would decrease the value of the land at the tracks and cause more litigation. So this saga could grow still more legs.

What's clear is that the legislation to save horse racing stems from the same bad idea that the state is capable of running a business. Taxpayers lease property at below market rates to favored tenants and run a perpetually money-losing spa and golf resort, Rocky Gap State Park, one of the locations designated for slots that won't get any soon due to a failed bid. The list goes on.

Worse, the legislation sends the message that the government should pick winners and losers - and under duress. Legislators have only a few days to decide on whether to reregulate the state's electricity market and take over a business that someone else could likely revive with a better marketing and development plan. If the bill passes, we will never know.

State taxpayers, however, will once again be forced to pay for legislation rigged against them this year and every year to come that the industry is a state ward. Smoking, two-martini lunches and jobs for life are all traditions discarded to make way for a healthier lifestyle and more dynamic workforce. If we savehorse racing, we don't know what we may be killing in the process.

Examiner columnist Marta H. Mossburg is a senior fellow at the Maryland Public Policy Institute.