Ohio Lottery OKs concession to racetracks

CLEVELAND (AP) — The Ohio Lottery Commission has made a key concession to the state’s horse racing track owners to increase the likelihood they will meet a deadline for getting video slot machines running by May 2010.

The state agreed to drop a requirement that the owners secure a $52 million performance bond by Tuesday, when the owners must each make a $13 million payment toward their $65 million licensing fee.

The performance bond was to protect the state if a track defaulted on the project. Gov. Ted Strickland is counting on the video terminals to raise $933 million in revenue to help balance the state budget.

Track owners objected to the performance bond, saying the poor economy made it nearly impossible to secure.

Jeannie Roberts, a spokeswoman for the Lottery Commission, which is overseeing operation of the slot machines, said Friday the state agreed to drop the bond requirement because track owners already are putting up millions for a nonrefundable licensing fee.

The state is allowing 2,500 video lottery terminals at each of seven racetracks.

The tracks’ attorney, C. David Paragas, said the lottery commission’s decision to lift the performance bond requirement should help secure financing.

“We’ve made great strides in moving forward,” he said.

Lottery Director Kathleen Burke said she expects all seven tracks will file applications Tuesday and make their first payments.

The deadline is sensitive for the Thistledown racetrack near Cleveland. The track is in bankruptcy court and is seeking a new owner.

Thistledown could receive an extension on its application and initial payment, the governor’s office said Friday.