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Suit ruling gives Valley a leg up in track plan
YOUNGSTOWN
A Franklin County judge’s dismissal of a lawsuit challenging the state’s authority to permit slot machines at horse racetracks likely means a plan to relocate a thoroughbred-racing facility in Austintown is in the homestretch.
“The court’s decision to dismiss all of the counts in the Ohio Roundtable’s lawsuit is another significant step forward for our plan to relocate our Columbus and Toledo racetracks to the Mahoning Valley and Dayton, respectively,” said Bob Tenenbaum, spokesman for Penn National Gaming Inc.
Penn plans to relocate Beulah Park, a track it owns near Columbus, to the 186-acre Centerpointe property in Aust-intown, off state Route 46 near the Interstate 80 interchange. Penn purchased the property last month for $4.6 million. It also wants to move its Raceway Park, a harness racetrack, from Toledo to the Dayton area.
The company plans to spend $150 million on each of the two tracks as well as pay the state a $50 million licensing fee for each track, Tenenbaum said.
Penn has a nonbinding memorandum of understanding with Gov. John Kasich to pay a $75 million relocation fee for each facility within 180 days of opening the racinos, as racetracks with slot machines are sometimes called.
“We’re hopeful that the state will now move quickly to formalize the process that will allow us to apply to relocate our racetracks and get these two significant economic-development projects under way,” Tenenbaum said.
The judge’s dismissal of the lawsuit “creates clarity and certainty for the industry,” said Rob Nichols, spokesman for Gov. John Kasich. “It allows the process to move forward.”
Scioto Downs, a racetrack in Columbus, plans to open its racino Friday with 1,791 slot machines. It’s the only track to date that’s applied for a slot-machine license from the state.
When asked if the court decision will result in other tracks seeking licenses for slots, Nichols said, “We think so.”
On Wednesday, Judge Timothy S. Horton of Franklin County Common Pleas Court dismissed a lawsuit filed Oct. 21, 2011, by the Ohio Roundtable, a public-policy organization, and 19 people against Kasich, the Ohio Lottery Commission, the Casino Control Commission and others, claiming the state doesn’t have the authority to legalize slot machines at Ohio’s horse racetracks without a public vote.
The judge dismissed the case, ruling the Roundtable lacks standing to file the lawsuit. The judge didn’t rule on the merits of the legal challenge.
“The legal system we rely upon exists to try actual cases and controversies,” Judge Horton wrote in his decision. “It exists to give its citizens a voice when a wrong has occurred. However, it operates within certain boundaries and should not be used wantonly and/or for political or social gain.”
The case can be appealed to the 10th District Court of Appeals.
Rob Walgate, Ohio Roundtable vice president and one of the 19 other plaintiffs, said, “We’re seriously considering [an appeal]. That option is on the table. Going to court is expensive.”
The organization’s members are “disappointed with the decision,” he said. “We feel the Ohio Constitution [has] been trampled on. If Ohioans don’t have standing, then who does? It’s a sad day for Ohioans. This isn’t just about gambling. It’s about the Constitution.”
Austintown Trustee David Ditzler said he sees the lawsuit dismissal as “the last hurdle we were waiting for to get the show running and the horses running.”
Penn still needs to apply and receive approval from the Ohio State Racing Commission to transfer the licenses, and come to a final agreement with the commission on the relocation fee.
Getting the track to Austintown is “just a matter of time,” Ditzler said. “Sometimes these [lawsuits] lay there forever, and then it’s no longer worth [the expense] to do the project. But, thankfully, that hasn’t happened here. We’re excited to be moving forward.”
State Rep. Ronald V. Gerberry of Austintown, D-59th, who’s helped move legislation legalizing slots at racetracks through the General Assembly, said he’s “very pleased” with the judge’s decision.
“We’ve gotten over a lot of hurdles and, candidly, we’ve gotten over them rather quickly,” he said. “We’ve accomplished a lot.”
Once construction starts on the track, it will take about 18 months to build.