Ohio's horseracing tracks are to be given the opportunity to apply for licences to operate video lottery terminals.
As part of a review of the state’s gaming market, Governor John Kasich has outlined plans to offer Ohio’s seven racing permit holders 10-year sales agent licences to introduce VLTs.
At a cost of $50m, the licence will require operators to invest at least $150m in their facilities and to hand over 33.5 per cent of sales revenue to the state.
As part of the review, the Governor has now signed agreements with Rock Ohio Caesars, which is developing casinos and – through Caesars Entertainment – owns Thistledown Racetrack in north-east Ohio, and Penn National Gaming under which each will pay the state $110m over 10 years in return for Ohio’s commercial activity tax being applied to the casinos’ net income, rather than on all wagers.
This is an issue that has caused a rift between the Governor’s office and the casino developers, which, now resolved, should see several projects completed shortly.
“I know that many thought it was futile to push the gaming companies for a better deal, but the Governor’s job isn’t just to enforce laws, it’s also to make sure they benefit Ohioans in the greatest possible way,” said Kasich. “This agreement does that and also provides the casinos a more predictable set of rules so they can be more successful.
“The casinos can now more forward without delay. This is a win for all involved.”
