Look for movement on Ohio racinos as court rejects gambling challenge

CLEVELAND - This week marks a big one in the world of expanded gambling at the state's horse racing tracks.

In part, yes, for Friday's planned opening of Ohio's first racino at Scioto Downs in Columbus, but even more so for the decision of a Franklin County judge Wednesday to dismiss a lawsuit that challenged the state's authority to allow slots at tracks.

Judge Timothy S. Horton of the Franklin County Common Pleas Court ruled that the Ohio Roundtable, a public policy group, did not have legal standing to bring the lawsuit against Gov. John Kasich (R) and others. Horton said through their pleadings and arguments, the group's members offered "little more than bare assertions of harm or injury."

Among the 17 claims in the suit, the group argued that allowing video lottery terminals at Ohio's seven horse tracks violated the state's constitution.

Though many of the state's seven horse tracks had announced their intentions to add video lottery terminals (VLTs), or move their tracks in the case of Penn National, no one with the exception of Scioto Downs was moving forward on those plans until the lawsuit issue was settled.

The decision to allow VLTs at the tracks was part of a settlement reached last year between Dan Gilbert's Rock Gaming, Penn National and the state over additional fees from the state's four new voter approved casinos.

In addition to Scioto Downs new $125 million, 1,800 VLT facility, Northfield Park in April unveiled its plan to partner with Hard Rock Entertainment for a $275 million gaming and entertainment center but those plans were contingent on this lawsuit being settled.

Penn National Gaming, which this week opened the Hollywood Casino in Toledo, earlier this year agreed to pay the state a total of $150 million to be allowed to move its two tracks from Toledo and Columbus, to Dayton and Youngstown, respectively.

Penn National Chairman and CEO Peter Carlino told NewsChannel5 Tuesday that those plans were also tied to the legal challenges being resolved.

“Now remember we’ll have to move our facilities at a very, very considerable cost,” he said, pointing to one of the main reasons for waiting.

This leaves Thistledown, purchased two years ago by Caesars Entertainment which later partnered with Gilbert's Rock Gaming, as the last big piece of the horse racing puzzle to announce its intentions.

All signs point to the track following Penn National's route of relocating further away from its stand alone casino on Public Square. The Akron area was specifically mentioned by name as a possible location in the March memorandum of understanding between Penn and the state.

With the Horseshoe Casino now open in Cleveland and the legal picture clearer on the racino front, it's not likely that Rock Ohio Caesars will wait very long before moving forward.