Grand opening of ‘The Racino’ puts Penn National in spotlight

Just as General Motors CO. is a leader in the auto industry, and Vallourec is blazing a trail in the steel pipe-making industry, Penn National Gaming is in the top tier of the gambling and entertainment industry.

And all three super corporations have a presence in the Mahoning Valley.

GM has been here the longest with its Lordstown assembly plant, which has undergone major upgrades over the years worth hundreds of millions of dollars.

Vallourec, a French company headquartered in a suburb of Paris, came to the Mahoning Valley 11 years ago and has spent about $1 billion on a state-of-the-art steel pipe-making plant and a pipe-threading plant on a site straddling Girard and Youngstown. Vallourec’s company in the Valley is called Vallourec Star.

And now there’s Penn National Gaming, which will cut the ribbon Wednesday to the $250 million Hollywood Gaming at Mahoning Valley Race Course in Austintown.

The horse-racing track and slots-only casino has certainly ignited the passions of many of this region’s residents. It’s no secret that gambling — legal and illegal — is very much a part of the Valley’s history and culture.

Indeed, Penn National is banking on that tradition to help it meet its goal of 1 million “visitors” a year to the Austintown facility, which is located off state Route 46 near Interstate 80.

The customer base is to be made up of people willing to drive 30 to 40 minutes each way. Penn National expects the average player to spend $80 to $90 during a three- to four-hour visit.

But “The Racino” is more than just the 850 video-lottery terminals and the state’s newest horse-racing track. It represents a long-term financial commitment to this region.

There are about 1,000 direct and indirect jobs that have been created, in addition to the 1,000 construction jobs that were filled.

Penn National paid $4.6 million for the 186-acre Centerpointe property and a $75 million fee to the state of Ohio to relocate its Beulah Park track near Columbus. The company also shelled out $50 million for its licensing fee to the Ohio Lottery Commission for the VLTs.

The horse-racing season, which will begin Nov. 24, will last 55 to 60 days. There will be simulcast races from other tracks.

But the real payoff is the $1 million Austintown received in December 2013 and June of this year, and $500,000 a year it will get thereafter. The money will be used for police, fire and other services, and to cover infrastructure or capital costs.

The Austintown payoff comes from the state under a law that provides communities with racinos a portion of the gambling revenue from the four full-service casinos and the seven facilities that have horse-racing tracks and slots.

Although Hollywood Gaming at Mahoning Valley Race Course is the last of the seven to open in Ohio, Penn National has spared no expense to ensure that it is an entertainment showcase for the region.

Long journey

This week’s grand opening culminates a long journey that was not without its challenges.

But company executives are quick to note that the cooperation from local government and community leaders has been exceptional, and they want to show their appreciation with a top-quality facility.

A major financial investment has been made, construction and permanent jobs have been created, local governments are benefitting, but in the end the success of the racino will depend on the public’s response.

In that regard, we offer this word of caution: There are a goodly number of residents who cannot afford to gamble away their money. We would hope that an effort is made by social service agencies and the faith community to warn individuals who do not have extra money for entertainment to think twice.