Penn National miffed at legislative 'money grab'

AUSTINTOWN

Penn National Gaming Inc. is critical of the state legislature, after the Ohio Senate passed an amendment requiring the gaming operator to pay half of the $500,000 owed to Austintown Township and the city of Dayton for three years.

The other half – or $250,000 – would come from the casino Operator Settlement Fund (track relocation fund) – into which Penn National is paying $150 million over the next 10 years for the new tracks in Dayton and Austintown: Hollywood Gaming at Mahoning Valley Race Course and Hollywood Gaming at Dayton Raceway.

The amendment spelling out these specifics passed the Ohio Senate 31-0 Wednesday.

The $500,000 annual payments are supposed to be paid by Dec. 31 and are to be used 50-50 for infrastructure and capital improvements and general-fund use. That is the same set up as the two $1 million payments Austintown already received, which went toward resurfacing roads and paying off a communications system debt.

The Ohio House of Representatives will take up the matter next week.

“We are extremely disappointed by the special new tax the Ohio Senate has voted to impose on our company alone, despite our having paid an unprecedented $150 million in fees for the ability to relocate our racetracks to areas in need of new economic development and jobs,” said Eric Schippers, senior vice president of public affairs for Penn National, in a statement Thursday.

“Our company has invested nearly $1 billion in four gaming facilities in Ohio, created thousands of new jobs, and paid more than $320 million in new local and state tax revenues, and continues to support numerous local charities and civic organizations in the communities in which we operate.”

Schippers added: “We’re baffled by the Senate’s action, and we are beyond dismayed at having been singled out yet again for another money grab.”

Senate Minority Leader Joe Schiavoni of Boardman, D-33rd; and Sen. Bill Beagle of Tipp City, R-5th, had worked together on getting an amendment onto an existing bill that had already passed the house. That vehicle – HB 494 – deals with local government issues. The amendment, introduced by Beagle on Wednesday, specified that $250,000 would be paid by the track operator – Penn National in both cases – and $250,000 from the track relocation fund, which Penn National pays into already for the relocation fees associated with Austintown and Dayton.

Dayton’s track came from Toledo and Austintown’s came from Grove City.

State Rep. Ronald V. Gerberry of Austintown, D-59th, said he will pursue extending the payment past the decided-upon three-year mark. Both Schiavoni and Beagle have said they will pursue the matter in the Senate.

“That’s wonderful, but that wasn’t the agreement. The agreement was on a permanent basis,” Gerberry said of the three-year restriction.

Read much more in Friday's Vindicator.