Ohio Lottery details proposed rules for slot machines

CLEVELAND (AP) — Ohio officials want some fast action by horse racetracks seeking video slot machines, as outlined in rules proposed Wednesday by Gov. Ted Strickland’s administration and the Ohio Lottery.

The lottery commission will meet Monday to review the proposal.

The state would keep 50 percent of proceeds, after payouts, under the rules.

The rules call for a Sept. 15 deadline for tracks to apply for slot machines, and late applications could be fined $15 million. The application fee is $100,000.

Tracks could face fines as high as $100,000 a day if they fail to pay their first of five $13 million installments toward a $65 million license fee on time. The state wants each track to pay $13 million on Sept. 15.

Ohio plans to authorize 2,500 video lottery terminals at each of seven racetracks. The move is expected to generate $933 million in revenue for the state over two years.

The rules also will require tracks to submit a 10-year business plan and an approved security plan and have permit holders, management companies and employees pass financial and background checks.

Applicants can be rejected for a felony record, a crime involving fraud or gambling offense.

The state has decided to let the state’s current lottery vendor, Intralot Inc., exercise a provision in its contract to develop the central gaming system that will operate all of the slot machines. The state will conduct a competitive bidding process for which company will actually supply the video lottery terminals, and which company will test them.

Going with Intralot for the central gaming system enables the state to move quicker than it otherwise would be able to. Submitting a competitive bid for the central gaming system could take four to six months, and it needs to be established before bids can be accepted on the machines and the testing.