Ohio governor endorses slots gambling amid state’s budget crisis

By Marc Kovac | June 20, 2009 at 12:00a.m.

Ohio Governor Ted Strickland (D-Lisbon)

COLUMBUS — Gov. Ted Strickland has proposed allowing slot machines at Ohio’s seven horse racing tracks as a means of plugging a budget hole potentially in excess of $3 billion.

The state’s top Democrat has proposed allowing video lottery terminals at the facilities, a move he says will net the state an estimated $765 million over the biennium. The tracks are located in Grove City, Cincinnati, Cleveland, Lebanon, Northfield, Columbus and Toledo.

“This has been a difficult choice for me, but I believe it is a necessary one ,” Strickland said. “It is contrary to what I ever thought I would have to do. Still, after looking at an array of choices before me and the state Legislature, I have concluded this is the best course of action to meet our balanced budget obligations.”

The gaming proposal is part of what Strickland called a framework for moving forward on budget negotiations with the Democrat-controlled House and Republican-controlled Senate, which have less than two weeks to finalize spending plans for the next two fiscal years. The biennial budget bill is required to be passed by lawmakers and signed by the governor by July 1.

The governor unveiled the plan Friday at the Statehouse. It marked an about face for Strickland, who for months has said he opposed expanding gaming as a means of bringing in more state revenues.

In early April, when asked about allowing slots, he told Statehouse reporters, “I do not think expanding gambling is the right thing for Ohio. I don’t think it’s the right economic development approach. And I think there are negative consequences associated with [gambling].”

Asked at that time about expanding gambling without a vote of the people, he said, “I think that would be a very, very wrong action that as governor I would strongly object to.”

But earlier this year, the Ohio Racing Commission and some supportive state lawmakers began pushing to allow slot machines at racetracks, under the umbrella of the state lottery. The proposal is one of several gambling expansions; backers of a plan to put casinos at specific sites in Columbus, Cleveland, Cincinnati and Toledo are collecting signatures to place their issue on the ballot.

Strickland did not disclose specific details of the gambling plan, including the number of terminals or how the system would be licensed. He said the gaming expansion could be accomplished through the legislative process, thereby avoiding a ballot issue.

Multiples casino proposals have been quashed by voters, including one last year that would have allowed a gaming facility between Columbus and Cincinnati.

Strickland opted against a tax increase or reversal of earlier-implemented tax reforms.

“This recession is deep,” he said, adding, “I believe a tax increase at this time could deepen the recession and extend it. That should be avoided, I think, at all costs.”

Asked why he favors limiting slots to racetracks and not bars, bowling alleys or other locations, Strickland responded: “These [racetracks] are existing. They are in communities where gambling is already taking place. They are discreet facilities that will be in locations that for a period of time have been acceptable to the communities. ... [and] they are age-appropriate venues.”

Even with the slots option, Strickland said about $2.43 billion will have to be cut from other state spending.