Casino-tax revenue declines

July 18, 2015 at 12:05a.m.

YOUNGSTOWN

Casino-tax revenues reflecting gambling activity during the second quarter of this year have declined compared with those of the first quarter, according to the Ohio Department of Taxation.

The department recently reported the results of gambling activity between April 1 and June 30 in announcing the distributions to Ohio’s 88 counties and eight major cities, including Youngstown.

The money comes from a 33-percent tax on gross revenues that is paid by the casinos in Cleveland, Toledo, Columbus and Cincinnati.

For the second quarter of this year, Youngstown and Mahoning County will each get $329,316, compared with $352,854 in the April distribution, which reflected first-quarter gambling activity.

Trumbull County’s most-recent distribution was $579,470, compared with $620,889 in April.

Columbiana County is getting $298,486, compared with $319,821 in April.

The most-recent distribution results are consistent with Trumbull County Commissioner Frank Fuda’s observation in April that warmer weather, which is conductive to outdoor activities, reduces many gamblers’ casino time.

Jessica Franks, communications director for the Ohio Casino Control Commission, said Fuda’s observation, together with competition from racinos may explain the drop in casino activity.

Last year, quarterly casino-tax distributions rose in the first three quarters but fell in the final quarter, then rose again in the first quarter of this year.

The casino activity was occurring as the last three of Ohio’s seven racinos opened during 2014.

The last racino to open was Hollywood Gaming at Mahoning Valley Race Course in Austintown, which opened its casino Sept. 17 and started horse racing Nov. 24.

“The market hasn’t quite completely settled out because the last two racinos came on line almost a year ago,” Franks observed.

With four casinos and seven racinos, Ohio has 11 state-regulated establishments competing for gamblers’ dollars.

Not far away are Mountaineer Casino, Racetrack & Resort in Chester, W.Va., and Rivers Casino in Pittsburgh.