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Kasich, Penn National differ on how racino payment should be handled
By ROBERT CONNELLY
AUSTINTOWN
The office of Gov. John Kasich’s office commented for the first time on the $500,000 racino payment debate since an amendment passed the Ohio Senate last week.
“The administration continues to believe that this financial responsibility lies solely on the operators, and we will continue to push for that,” said Rob Nichols, a Kasich spokesman.
“We continue to believe that the way the legislation is currently written is basically a tax that applies to no one but us, and we don’t believe that is a fair or appropriate way to deal with this issue,” countered Bob Tenenbaum, spokesman for Penn National Gaming Inc.
The Ohio House of Representatives will have House Bill 494 with the attached amendment in front of it today. State Rep. Ronald V. Gerberry of Austintown, D-59th, said the House enters session at 1:30 p.m. today, most likely its last session of the year.
The House can concur on the bill, which already passed the Ohio Senate with some changes to the earlier House version, or can send it into a conference committee. If it is sent into committee, it can’t be addressed again by the Senate, which had its last session of the year last week.
If the bill is concurred, it heads to Kasich for approval.
Gerberry, who sat on the committee that came up with the payment, has compared the $500,000 payment to what casinos pay their host cities. The payment is earmarked, 50 percent for infrastructure and capital improvements and 50 percent for general-fund use.
That amendment specifies the payments will be for three years — not indefinite like the original 2012 racinos bill specified — and will be paid 50-50 from Penn National, the operator tracks of Dayton and Austintown, and the track relocation fund.
The amendment also clarified the payments only go to those two municipalities after a previous amendment excluded Franklin County, home to Scioto Downs Racino, but receives funding from Hollywood Casino Columbus.
Penn National will pay $150 million over 10 years into the track relocation fund for moving tracks from Toledo and Grove City, Ohio, to Dayton and Austintown, respectively.
But even with that 50-50 split, Penn National has contested having to pay anything.
Eric Schippers, Penn National senior vice president of public affairs, issued a statement last week after the amendment added onto HB 494 unanimously passed in the Senate and wrote a letter to the editor, which ran in Sunday’s Vindicator.
“Sadly, this unanticipated tax hike on our businesses will force us to have to find ways to cut local expenses, both operational and civic related,” that letter stated. “We will also be forced to explore legal alternatives on a bill that penalizes our company alone.”
Hollywood Gaming at Dayton Raceway opened Aug. 28 and Hollywood Gaming at Mahoning Valley Race Course opened Sept. 17. Austintown Trustee Ken Carano has said the township does not want to enter into a direct conflict with Hollywood Gaming.
“It is unfortunate that we enter this new year with a feeling of utter shock and betrayal at the actions of those with whom we shared the excitement of our grand openings only a few short months ago,” Schippers ended his letter.
Gerberry, along with state Sens. Joe Schiavoni of Boardman, D-33rd, and Bill Beagle of Tipp City, R-5th, all have said they will revisit the payment issue in the spring after new members are sworn in.
“From Eric Schippers’ perspective, I guess I can appreciate where he is coming from,” Gerberry said Tuesday.
“I think there might be other ways to do this, but that was the only proposal we were able to get accomplished at this point. ... I look at this as being the first step of doing it, and that’s not to say the means by getting those dollars will remain the same in the future.”