Butler County lawmaker seeks new tax for Ohio's gaming facilities

AUSTINTOWN

An Ohio Senator is seeking a tax on promotional gaming credits at the Buckeye State’s 11 casinos and racinos.

Gaming operators and a casino expert oppose Senate Bill 140, which was introduced this month. That includes Hollywood Gaming at Mahoning Valley Race Course operated by Penn National Gaming, Inc.

Ohio Sen. Bill Coley of Liberty Township in Butler County, R-4th, said since he introduced the legislation he hasn’t had negative feedback from anyone except casino owners or workers. “So it’s kind of an interesting dilemma,” he said.

The bill was assigned to the Senate finance committee Wednesday and has four other Republican co-sponsors, all from the Dayton and Columbus areas: Sen. Troy Bladerson of Zanesville in Muskingum County, R-20th ; Sen. Dave Burke of Marysville in Union County, R-26th; Sen. Bob Peterson of Washington Court House in Fayette County, R-17th; and Sen. Joe Uecker of Miami Township in Montgomery County, R-14th.

The Dayton and Columbus areas feature two racinos and one casino.

Four casinos were allowed to open after voters passed Issue 3 in 2009 in Toledo and Columbus (Penn National properties), Cincinnati and Cleveland (Dan Gilbert’s Rock Ohio Ventures properties, a partnership between Caesars Entertainment and Gilbert’s Rock Gaming.)

Earlier this year, Rock Ohio bought out the 20 percent that Caesars had owned. Caesars is continuing to manage the Horseshoe Cleveland and Cincinnati casinos, as well as the Thistledown Racino in Cleveland.

Casinos are required to pay a 33 percent tax on their gross receipts. Issue 3 defined receipts as earnings minus payouts, though lawmakers later passed legislation for operators to deduct promotional credits from the total.

Coley is seeking to limit deducting promotional credits to $5 million for qualified facilities.

Read more about the bill in Thursday's Vindicator or on Vindy.com.