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Home > Blogs > Ohio politics > Archives > 2009 > July > 13 > Entry
Strickland gives go-ahead on video slots
Gov. Ted Strickland did his part in the great state gambling bargain on Monday, July 13 - issuing a directive to the Ohio Lottery to set up video slot machines at Ohio’s seven horse racing tracks. The slots are officially called Video Lottery Terminals - VLTs.
The House and Senate were expected to do their part later Monday by approving a $50.5 billion state budget with language implementing the video slots proposal.
Strickland expects the slots to bring in $933 million to the state over the next two years.
Here’s Strickland’s directive to the Ohio Lottery:
Directive to the Ohio Lottery
July 13, 2009
Implementing Video Lottery Terminals
Ohio is Facing Significant Economic Challenges. The national economic recession has caused many and substantial hardships for the people of Ohio. Many Ohioans rely on the health, safety and welfare services provided by the State. Declining employment and recessionary sales have led to declining tax revenues realized by the State, making it more and more challenging for the State to provide the educational, health and other services its people deserve. Without additional revenues, the State would be required to cut services even beyond the significant levels already undertaken and under consideration in current budget discussions.
The Implementation of Video Lottery Terminals (VLTs) is an Important Part of Ohio’s Balanced Budget Plan. The immediate implementation of VLTs by the Ohio Lottery is projected to generate approximately $933 million in net proceeds during the coming biennium. The dedication of that revenue to education programs is critical to our continued efforts to strengthen Ohio’s education system. Increased lottery revenues allow the state to dedicate scarce general revenue funds to critical programs benefiting the health, safety and welfare of Ohio’s citizens, avoiding devastating cuts to those programs.
Implementation of VLTs Should Only Be Undertaken With Strong Legal Footing. The Ohio Constitution authorizes the General Assembly to establish an agency of the State to manage lottery games to support education programs. The General Assembly has established the Ohio Lottery as that agency and has enacted various statutes authorizing the lottery to conduct and operate lottery games in accordance with the Constitution. The General Assembly has indicated to me its intent to pass legislation which would expressly acknowledge that the Ohio Lottery has the authority to implement VLTs under the existing laws of the State of Ohio and that the implementation of VLTs does not violate any provision of Ohio’s separate prohibitions on gambling activity.
The Lottery Director Should Immediately Take Steps to Implement VLTs. With an express acknowledgement of the General Assembly that the Ohio Lottery has the authority to implement VLTs, I believe that the Ohio Lottery can, and I direct the Lottery Director to, adopt rules regarding the implementation of VLTs and immediately take steps to implement VLTs in accordance with the following requirements unless and until they are modified or rejected by the General Assembly:
VLTs Should Only Operate At Licensed Racetrack Facilities. So as to limit the proliferation of gambling activity to locations in which the local community has expressed its support for such activity, the Lottery Director should assure that licenses to operate VLTs are issued only to those who will operate the VLTs at facilities operated by those already licensed to offer pari-mutuel betting.
VLTs Should Operate at Only Seven Racetrack Facilities at Any One Time. Again, in order to limit the proliferation of gambling in the state, the Lottery Director should assure that only seven licenses to operate VLTs are issued at any one time.
VLTs Licenses Shall Be Granted for a Minimum of Ten Years. To assure effective regulatory oversight regarding those licensed to operate VLTs, licenses should be granted for a minimum of ten years and should be transferred only in accordance with strictly established guidelines.
Strict Background Checks of Prospective VLT Licensees Shall Be Undertaken. Strict criminal and financial background checks of all prospective VLT licensees shall be undertaken prior to the issuance of any such licenses and only those meeting clearly articulated standards shall be granted such licenses.
VLTs Should Be Implemented Quickly, But Contracts Should Follow All Standard Bidding Requirements. The Lottery should use any existing contracts it has which would permit the rapid implementation of VLTs, but any Lottery Commission contract for services associated with the implementation of VLTs must be awarded by competitive bidding unless competitive bidding requirements are waived by the Controlling Board.
All VLT Profits Should Benefit Education Programs in Ohio. In order to comply with the constitutional requirement regarding the use of lottery net proceeds, all VLT net proceeds shall be deposited and utilized to benefit education programs in Ohio in the same manner as all other lottery net proceeds.
Absence of Implementing Legislation. If the implementing legislation described in Paragraph 3 is not enacted into law as part of or prior to the FY10-11 biennial budget law and such law is not signed into law by me within five days of the issuance of this Directive, the Directive shall then be deemed immediately null and void.
Ted Strickland, Governor
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Comments
By Geraldine Patten
July 14, 2009 7:47 PM | Link to this
In Nov. (less than a year ago) gambling was noted down by 66%. WE DO NOT WANT IT. If you can not fine another way of raising revue, then perhaps you should consider resigning. Also if the racetrack is built on I-75 in Montgomery County, I will not be doing any shopping in Montgomery Country The more jobs that are cut the less revue will be coming in, in the form of taxes. Did that ever to you?.By John
July 13, 2009 10:07 PM | Link to this
Kelly, what do you have against those people keeping their job’s? Each race track will employ about 150 new job’s The casino’s will employ between 359 and 1,000 new job’s. Saving 15,000 horse related job’s. You do not pay any tax if you do not go there and play, yet the state of Ohio and the school’s will have a great benefitBy Stan.is.the.Man
July 13, 2009 10:04 PM | Link to this
I wonder how they figure they are going to make that 933 mil from food stamps? Since they let all the jobs go from this state, all we got left is food stamps. Although I could care less about gambling, the bottom line is we need jobs, left, right or in the center, I don’t give a crap who you are just get some jobs here!By Frank
July 13, 2009 6:51 PM | Link to this
You are all idiots, stop bitching and keep living your sorry life and just shut up!By KR
July 13, 2009 6:36 PM | Link to this
I can’t wait.By equine
July 13, 2009 6:29 PM | Link to this
trust me, i own race horses and it is tough making money in this sport. It will remain tough to make money even with slots, but increased purses also mean more tax money for the state. I’m in it for the love of the sport and also to try and make money, but 90% of horses probably don’t make enough money to pay for the monthly upkeep. What most don’t realize though, is that the equine industry is an almost 1 billion dollar industry. It brings millions of dollars to the state and employs more people than most large corporations combined. This particular slots proposal is not only aimed at keeping money from leaving the state that is already being gambled, but also to help rejuvenate a once thriving Ohio horse industry. This is the right thing to do for the state, hands down. If you aren’t in to gambling, then don’t gamble. It is as simple as that.By Jim
July 13, 2009 5:52 PM | Link to this
Does the Ohio Lottery have a website that I can go to and track how much of its earnings actually go to education? A lot of naive people out there think that the sum of $933 million over the next two years is heading toward our schools.By Beth
July 13, 2009 5:49 PM | Link to this
If people want to gamble, they will gamble. If Ohio doesn’t want the revenues by allowing slots in our state, then people will continue to go to places like Indiana, Atlantic City and Vegas. I am not a gambler but I’d rather see the money coming into Ohio for the benefit of Ohioans.By Beth
July 13, 2009 5:49 PM | Link to this
If people want to gamble, they will gamble. If Ohio doesn’t want the revenues by allowing slots in our state, then people will continue to go to places like Indiana, Atlantic City and Vegas. I am not a gambler but I’d rather see the money coming into Ohio for the benefit of Ohioans.By gambler
July 13, 2009 5:37 PM | Link to this
I really don’t care about gambling, and I have voted for the past casino issues. However, I’m stunned the Goevrnor and G.A. completely ignore the people’s vote by calling these “video lottery terminals” when we know these are just slot machines. This is a clear and unconsciounable betrayal of the people. I wonder if Strickland’s denomination will have the courage to censure him for going against one of their strongest beliefs. Could these state leaders put the same amount of effort into attracting real jobs to Ohio as all these hours on their gambling scheme?By holier than thou
July 13, 2009 4:26 PM | Link to this
I love how the right is always so against slots and gambling, but have yet to offer any workable solutions to reducing unemployment!By horse owner
July 13, 2009 4:14 PM | Link to this
she is affraid it will effect her business!!By Habit
July 13, 2009 4:14 PM | Link to this
Crooked.By kelly
July 13, 2009 4:14 PM | Link to this
So you are the horse owners wife?By Rob
July 13, 2009 4:12 PM | Link to this
@kelly…I played with Ohio Sluts once but I’m married now…By kelly
July 13, 2009 4:07 PM | Link to this
Learn to chew with your mouth closed you hilljack.By horse owner
July 13, 2009 4:03 PM | Link to this
learn to proof read your ignorant post before sending…really shows your smarts..it helps the horse industry and the agriculture communities..By kelly
July 13, 2009 3:59 PM | Link to this
Funny how the horse owner is posting out here now. He has just went from the lowest level of living to living high on the hog! What a hilljack!By kelly
July 13, 2009 3:57 PM | Link to this
Funny how he talkes about the “sharing the wealth stuff” I for one will not play Ohio sluts. If the casino were alowed in Ohio I would got to them. What he is doing just seems wrong!By horse owner
July 13, 2009 3:56 PM | Link to this
peolpe seem to forget what this country was built on….freedom to choose what you want to do or dont wont to do…if you dont like it DONT GOBy kelly
July 13, 2009 3:54 PM | Link to this
What a loser! Is Stickland signing his death sentence for his polital career or what! You Obama liberals only see it “your way”By Rob
July 13, 2009 3:41 PM | Link to this
So, basically, I voted against this several times… Now I guess I have to content myself with voting against those that voted for it. So why did you bother putting it before me in the form of an Amendment?