Ohio Harness Horsemen's Association

Tracks Make A Last Run at Slots

May 21, 2010

As lawmakers debate regulations on Ohio's future casinos, horse track representatives are making a last-ditch attempt to get a piece of the gambling action.

The general manager of Scioto Downs in southern Franklin County said yesterday that the harness-racing track will go out of business "very soon" unless lawmakers approve slot machines at the state's seven racetracks.

The beleaguered tracks banded together in 2006 for an unsuccessful attempt to persuade voters to approve slot machines. Last year, Gov. Ted Strickland ordered the state lottery to install thousands of slot machines, dubbed video lottery terminals, at the tracks. But the effort was halted after the Ohio Supreme Court ruled that voters could decide the issue through a statewide referendum.

Owners of the tracks say their finances will become even more perilous if their customers begin patronizing casinos in Columbus, Cleveland, Cincinnati and Toledo. The casinos are scheduled to open in late 2012 and early 2013.

"We are losing money every day," said Scioto Down's general manager, Stacy Cahill. "Unless Scioto Downs gets video lottery terminals soon, we may have no choice but to close this facility."

This week, the House and Senate unveiled their versions of proposed regulations governing the operations of the four casinos. The regulations don't infringe on pari-mutuel betting at horse tracks and establish a fund to benefit the tracks, but they are silent on the issue of slot machines at horse-racing tracks.

Cahill and C. David Paragas, attorney for owners of the seven tracks, said the final legislation should include provisions for slots wagering at the tracks.

"We can't ignore the impact that these (casinos) will have on the horse-racing industry," Paragas said. "My hope is that we're included as part of it."

Paragas said lawmakers also can act on a bill introduced this past July that would allow 2,500 slot machines per track. Half of the proceeds would go toward the state lottery's education fund, which is a higher tax rate than the 33 percent levy on casinos. Cahill said the tax rate on horse-track slots should be lowered to the level of the casino tax.

Strickland's office has no position on the legislation, spokeswoman Amanda Wurst said.

Penn National Gaming Inc., which will build casinos in Columbus and Toledo, owns a horse track in Toledo and is buying the Beulah Park track in Grove City. Penn National supports slots at horse tracks. Cleveland Cavaliers owner Dan Gilbert, who will build casinos in Cleveland and Cincinnati, has not taken a public position on slots at tracks.

"It's not our issue whether the language is in the (casino-regulations) bill or not," said Bob Tenenbaum, spokesman for the casino developers. "Our only issue is whether this delays the implementation of the language."

Lawmakers have until June 3 to pass regulations on casinos in Columbus, Cleveland, Cincinnati and Toledo.

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Tracks Make A Last Run at Slots