HARRISBURG -- The state Harness Racing Commission, which spent more than two years reviewing applications for the state's fourth and final harness racing license, stunned applicants and officials in Beaver and Lawrence counties yesterday by rejecting both finalists.

Commissioners refused to explain their decision and said their rationale would not be available until next week, when written documents are to be released.

Spokesmen for the applicants, Centaur Inc. and Bedford Downs Management Corp., were puzzled by the decision and couldn't immediately say whether they would appeal. They have 30 days to do so.

Absent a successful appeal, the selection process would start over, said commission Chairman Roy Wilt of Mercer County. Centaur and Bedford Downs are welcome to reapply, he said.

The harness racing license is considered especially valuable because whoever gets it will be a shoo-in for a license to operate a slot machine casino. That license won't be awarded until next year.

Centaur wanted to build a track called Valley View Downs along Route 60 in Beaver County and Bedford Downs wanted to build its track along Route 422 west of New Castle in Lawrence County.

Lawrence County Commissioners Chairman Dan Vogler, who drove five hours to be at yesterday's meeting, said he did not know what to think after both proposals were rejected.

"I expected to walk out of here very elated or very dejected," he said. "I am neither. We didn't win and we didn't lose."

Beaver County Commissioners Chairman Dan Donatella was in a meeting at the county's nursing home when an aide opened the door and delivered the news.

"I can tell you, there was silence in the room," Mr. Donatella said. "Everyone was dumbfounded."

Beaver County was looking to the $340 million Valley View gambling complex for a much-needed economic boost and as a key to entertainment-oriented development.

The county and South Beaver Township would have shared 4 percent of the casino revenue had Centaur received the gaming license. If Bedford Downs were licensed, Lawrence County and Mahoning Township would have shared the 4 percent.

Lawrence County saw the track and slots parlor as one of three main economic development projects in its plans, Mr. Vogler said. The other two are industrial parks that would house more traditional types of businesses.

"We were anticipating, obviously, the creation of construction jobs and the ultimate ripple effect and spinoff of Lawrence County becoming more of a tourist destination," he said.

State Rep. Chris Sainato, a Democrat who represents parts of Beaver and Lawrence counties, was frustrated the commission didn't provide a rationale for its decision.

"I can't understand it. Was it because of funding? Was there a site problem? We don't know," said Mr. Sainato, who favored the Bedford Downs plan.

"We had a perfect, flat location for a model track. It's not going to get much better than that," he said.

Bedford Downs has the larger site, 550 acres compared with Centaur's 220 acres. But its management is experienced in building roads, not operating casinos and racetracks.

Centaur co-owns Hoosier Downs in Indianapolis and the Fortune Valley casino in Center City, Colo. It also helped develop a casino near Palm Springs, Calif., and was a former part-owner of the Argosy riverboat casino docked on the Ohio River in Indiana.

Harness racing officials considered several factors, including operators' reputations within the horse racing industry, the results of criminal background checks, financial viability and sites' ability to meet racing standards, said Anton J. Leppler, the commission's executive secretary.

The commission's decision left operators of existing tracks, including The Meadows in Washington County, wondering whether their own casino licenses would be delayed.

The state gaming law mandates that all applications for permanent licenses be considered "collectively and together." That mandate, though, doesn't apply to conditional gambling licenses, which tracks would hold initially, said gaming board spokesman Nick Hays.

The harness commission's action "does not affect our timetable for gaming licenses in any way," he said.