However related organizations in Mongolia were unaware of such a deal including discussion about building a gambling center in Mongolia since the country is prohibited to run any gambling centers, a law effective since August and backed by Mongolian President N. Enkhbayar.

According to officials at the Ministry of the Justice and Domestic Affairs Mongolia has no gambling centers, and now legislation to facilitate any since last summer’s decree.

However, Kentucky.com reported: “And with that a Mongolia-Bluegrass alliance was forged yesterday to build for the Asian nation a $110-million racetrack that will offer both pari-mutuel wagering and casino gambling”.

“The deal was cinched with pledges that the necessary laws and regulations will be approved by Mongolia's parliament and the city council of the capital, Ulaanbaatar, the site of the racetrack.”

Through Monday, no draft laws related to building or carrying out a gambling center in Mongolia were on the list of discussion for parliament sessions during the fall/winter session, according to the office of parliament. “No draft laws about a gambling center in Mongolia are listed or have been submitted to the Justice Standing committee of parliament,” a spokeswoman replied told MonInfo Monday.

“I don’t think that they are making illegal activity…I think the information is not true,” said Ch. Baatar, advisor to the Minister of Justice and Domestic Affairs on Monday.

“I have no information that Bolormaa and Badamjunai have made a deal about a horse gambling center. It is not possible because Mongolia prohibited the activities of gambling. As for our department, nobody knows about it,” said an employee of the Policy and Regulation Department of Justice, who wished to remain anonymous.

Although MonInfo tried to meet with the Vice Minister and State Secretary of the Ministry of Justice and Domestic Affairs, all high ranking and staff of the ministry are not meeting with journalists until Friday because of the 85th Anniversary celebration of the Ministry.

“I don’t know clearly why the Citizens Representative Meeting has done a deal with foreign company about building a racetrack,” Khaltar, a Member of the Citizens Representative Council, told MonInfo.

"The Mongolian International Jockey Club and the Asia Pacific Sports Promotion….will have a 50 percent to 55 percent interest in the project. A Mongolian horse industry group and the Ulaanbaatar city government each will have a 20 percent interest,” reported Kentucky.com.

The announcement Saturday was also a surprise to Mongolia’s National Horse Racing Union which currently runs almost all of Mongolia’s official races.

“I know that the Mongolian International Jockey Club was liquidated early. And the investment of this organization was a differently named company from Lexington and the investment was US$20 million in spring, 2006,” said D.Davaa, Mongolian National Horse Racing Union.

“I am surprised that the company wants to build a US $110 million track in Mongolia when they can’t take any profit because Mongolia doesn’t have enough tourists or foreigners to spend that amount of money.”

Officials at the Ministry of Justice and Domestic Affairs said they had no company or organization named the “Mongolian International Jockey Club” in their listings, a requirement under Mongolian law for all legal entities.

(additional reporting by Luke Distelhorst)