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Ohio's budget shortfall prompting serious talks about gaming

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January 13, 2009

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Ohio's racing industry is hopeful that the budget shortfall in the state will bring additional gaming to the state's racetracks, and Ohio Governor Ted Strickland, who has been opposed to expanded gaming at the tracks, now seems open to the possibility to supplement the state's revenues from gaming.

Ohio lawmakers will be in session through June, and could continue to work through early July if a budget isn't passed by June 30, when the state's current budget expires.

Various horse groups, including racetrack and casino owner Penn National Gaming Inc., have talked with Ohio lawmakers and lobbyists about a measure that would allow at least video lottery terminals at Ohio's seven racetracks. According to reports, Penn National officials have also discussed the possibility of full Las Vegas-style gambling at Ohio�s seven racetracks with Strickland.

Some lawmakers have indicated they believe VLTs could happen without a ballot issue, but there is also concern any action without a ballot issue would be challenged in court and effectively delay the implementation of additional gaming. If 60 percent of House and Senate members favor a ballot measure, it would go before the voters in November without the requirement of 400,000 petition signatures.

Keith Dailey, a spokesman for the governor, told the Columbus Dispatch newspaper that the governor�s willingness to listen did not indicate support of any added gambling plan but noted that the state�s revenues are deteriorating.

�The governor continues to believe that expanded gambling would be bad for Ohio,� Dailey told the Dispatch.

Ohio voters turned down different casino measures in 2006 and �08 after twice opposing issues in the 1990s. In polls after the 2006 election, most voters who voted no said they did so because the casino operator was going to receive too big a share of the proceeds.

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