Gaming-money request faces opposition

Gov. Strickland argues the revenue from video Keno is needed to fight a deficit.

COLUMBUS (AP) — Republican lawmakers on a key panel said Tuesday they will block Gov. Ted Strickland’s request to allot money quickly to expand lottery gaming throughout the state.

The Ohio Lottery Commission is hoping the state Controlling Board on Monday approves nearly $18 million for equipment to operate Keno, a video lottery game resembling bingo. Strickland wants to get the money approved quickly so the games can begin bringing in revenue to patch budget cuts made in the education department after a projected budget deficit.

But Republican lawmakers who are the majority on the board said Tuesday they would oppose the Democratic governor’s request. The four lawmakers, two from the House and two from the Senate, want public hearings on the proposal before voting on it.

They believe the measure should first have hearings and be approved by a legislative panel that oversees changes to agency rules.

If the Controlling Board votes against the proposal — or if it is withdrawn, as Senate President Bill Harris requested Tuesday — it still could be put up for another vote in the future.

Plans call for a Keno matrix to be displayed on a flat-panel monitor at each participating lottery location. Wagers can be as little as $1. A $10 play that matches 10 numbers can win $100,000. Players will be able to wager on up to 10 numbers and try to match them to a random 20 numbers a computer selects from a field of 1-to-80.

Board member and state Rep. Jay Hottinger is opposed to allowing Keno.

“It’s a short-term solution that in my opinion causes more problems than what it’s worth,” said Hottinger, who believes expanded gaming will disproportionately hurt the poor, who typically spend more on gambling.

Ohio voters have rejected casino-style gambling three times in the last 20 years, most recently in 2006 when they turned down a proposal to place thousands of slot machines at Ohio’s horse tracks. The governor said he distinguishes the proposed new games from video gambling machines outlawed last year because they will be “state-monitored, state-controlled and state-regulated.”

Strickland has told lawmakers that the state is facing a budget deficit of at least $733 million by the end of June 2009. The deficit could reach $1.9 billion if the economy goes into recession, he has said.

Republican lawmakers, including Harris and Husted, have said they are not convinced the state is facing such a dire budget situation based on the information Strickland has given them.

Strickland wants to use $73 million in revenue from the Keno gaming to help plug the deficit. The state expects to pay for the new equipment from anticipated revenue from the new game, estimated at $292 million annually.

Strickland said he didn’t want to comment directly on Republican lawmakers’ opposition to his time frame or rationale for the gaming expansion because he had not yet had a chance to discuss it with legislative leaders. But he said he wanted it to be approved as soon as possible.

“What I am doing is making very difficult decisions and making very difficult choices,” Strickland said. “The conclusion that I’ve reached is that this expansion of the lottery is important in enabling us to avoid raising taxes while continuing to meet the basic, fundamental responsibilities of this government to serve the people.”