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September 18, 2009

Uncertain future — 09/20/09

Expanded gambling in Ohio is still far from being a safe bet

Anonymous The Daily Independent Fri Sep 18, 2009, 02:36 PM EDT

While all seven horse racing tracks in Ohio have filed applications with the Ohio Lottery Commission to operate video slot machines, only two of those tracks — both in northern Ohio — met the deadline for initial $13 million payments for gaming licenses. Insiders say the still uncertain future of expanded gambling in the Buckeye State have made it difficult for tracks to line up investors for the slot machines the Ohio Lottery hopes to have operating at the seven tracks by May.

While Ohio Gov. Ted Strickland — with the tacit approval of legislators — issued an executive order to allow video slot machines and the Ohio Lottery Commission has approved rules for the operation of those gambling devices, expanded gambling in Ohio continues to be far from a sure thing. A number of actions could bring plans for slot machines at the race tracks to a sudden halt.

Three separate lawsuits have been filed against Strickland’s plan to allow race track slots to help beef up the state budget. They contend that the slot machines require the approval of voters in a statewide referendum. It is an issue that mirrors what is taking place in Kentucky.

Kentucky Speaker of the House Greg Stumbo, D-Prestonsburg, contends that the approval of voters is not necessary to place video slot machines at Kentucky race tracks. Instead, Stumbo insists voters approved the slot machines when they approved the lottery amendment to the Kentucky Constitution more than 20 years ago.

By the same token, Strickland and others in Ohio insist the slot machines at tracks were given the green light when Ohio voters approved the lottery.

We think both Stumbo and Strickland are wrong. In our view, slot machines at race tracks require the approval of voters. That’s why we continue to oppose Stumbo’s efforts to expand gambling without a vote of the people.

But the lawsuits challenging Strickland’s executive order are not the only pending actions casting a shadow over the slot machines at Ohio tracks. On the November ballot in Ohio is an issue that would allow casinos in the state’s largest cities, including Cincinnati, Columbus and Cleveland. While voters in Ohio have repeatedly rejected ballot issues to allow casinos, the slot machines at the tracks could change the views of Ohio voters.

If voters were to approve casinos at Ohio’s largest cities, it would throw cold water on the enthusiasm for slot machines at the tracks. Given the choice between playing slot machines at race tracks or going to casinos offering gaming tables as well as slots, many gamblers would choose the casinos. That would reduce the amount of revenue produced by the slot machines —and the amount of money those machines generate for state government.

When the deadline passed last week for the initial payments for the $65 million gaming licenses at Ohio tracks, only Raceway Park in Toledo and Northfield Park in northeast Ohio got the payments in on time. The other five tracks face late fees of $100,000 a day, lottery officials said.

Maybe Ohio voters again will reject the casino gambling referendum and the slots will begin operating in May as planned. But don’t bet on it.

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Expanded gambling in Ohio is still far from being a safe bet

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