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Ellen Belcher is the Dayton Daily News opinion pages editor. She writes about state government, education, the environment, higher education and all things Dayton.
Martin Gottlieb is an editorial writer and columnist for the Dayton Daily News opinion pages. He focuses on the political process itself and does such national issues as war, the economy, taxes and Social Security, as well as a hodge-podge of local and state issues.Home > Blogs > A Matter of Opinion > Archives > 2011 > June > 19
Sunday, June 19, 2011
Editorial: Dayton can’t be afterthought in gambling deal
The Dayton region has to keep a sharp eye on the casino situation, now that Gov. John Kasich has cut deals with the two gaming companies that are building four casinos in Ohio.
The region’s interests could easily be an afterthought — which would not be good.
Very soon after he took office, the governor decided that the constitutional amendment that allows full-blown casinos to be built in Cleveland, Columbus, Cincinnati and Toledo shortchanged the state. He also jumped on what he said was an ambiguity about how the casinos would be taxed, and he said the gaming companies needed to voluntarily pay more.
The casinos retaliated by stopping construction on their projects (putting a lot of people out of work) and negotiations began.
In the last week, Gov. Kasich has gotten both Rock Ohio Caesars and Penn National Gaming to turn over more of their profits.
Over 10 years, Rock Ohio and Penn each will pay $110 million more to operate in the state. Penn agreed to spend at least $700 million to build its two casinos in Columbus and Toledo, up from the $500 million that was promised in the 2009 amendment; Rock Ohio committed to $900 million for its Cleveland and Cincinnati casinos.
Experts say Ohio will be a wildly profitable market, so extracting a combined $20 million a year more is not a big concession. And the commitment just runs for 10 years.
Finally, the promises about bigger capital investments aren’t a big win. The $500 million pledge was a low-ball number; each company had more expensive plans for their complexes.
As part of the agreement, the governor agreed to support allowing video lottery terminals — slot machines that are known as VLTs — at Ohio’s seven racetracks. That’s where Dayton is affected.
Penn would like to move its Beulah Park thoroughbred track from near Columbus to Dayton because it doesn’t want its new Columbus casino and Beulah to be poaching each other’s gamblers. But, of course, Lebanon Raceway (a harness racing track), which wants to have VLTs, doesn’t want to compete against a track in Dayton and a casino in Cincinnati.
It’s going to vehemently object to state authorities, opposing transferring a license from Columbus to Dayton.
Meanwhile, Lebanon is looking to move its track to a site along I-75 in Montgomery County or Warren County. Penn’s preferred site is a former Delphi property near I-75 at Wagner Ford and Needmore roads.
The Dayton region wasn’t part of the casino amendment, so it was never in the running for a glitzy casino complex. If, at the end of the day, this region ends up with two glorified gambling halls — “racinos,” they’re called — that only exist to make sure two horse tracks are financially viable, that will be a raw deal.
The region will not get the economic benefits associated with real casinos, but it will get all the problems that come with expanded gambling. Neither track would be a destination for out-of-towners. There will be bigger and fancier places nearby. (Penn would have to invest $150 million in the new facility, but that includes the cost of the VLTs; and it could get a credit of $25 million for the land and existing facilities.)
By making gambling so accessible locally, problem gamblers who previously had to work at it to find a slot machine will be throwing away their money without even having to fill up their gas tanks. It’s easy to say that’s their problem, their mistake. But there are social consequences for the community.
And does this region really want to be known as a place with two racetracks with thousands of slot machines at both?
Gov. Kasich is right to be looking out for the state and taxpayers. But Dayton needs an advocate, too.
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