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Politics


Penn National agrees to same casino terms
Ohio Gov. John Kasich gets andother $110 million from casino developers, but gives up on extra taxes and allows video slots at tracks
by WKSU's M.L. SCHULTZE


Web Editor
M.L. Schultze
 
In The Region:

Gov.  John Kasich has reached a second deal with the developers of Ohio’s casinos – the same day a group opposed to gambling announced it plans to sue over the first. WKSU’s M.L. Schultze has more on the agreement announced this (Friday) afternoon… 

Gov. comes to terms with Penn National

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As with the Rock Ohio Ceasars deal announced Wednesday, the agreement with Penn National Gaming  requires the developer to pay 110 million dollars over 10 years – above the 100 million licensing fee an Ohio Constitutional amendment already requires.  And as with the Rock Ohio deal, Penn National will NOT have to pay the state’s commercial activity tax on money it pays out in winnings.  

The deal requires the developers of the four Ohio casinos – in Cleveland, Columbus, Cincinnati and Toledo --  to invest combined 700 million dollars in their casinos.

And it states the intention of the Ohio Lottery Commission to allow the states seven horse tracks to operate video slots at the tracks – if they pay 50 million dollars for the licenses.

But the Ohio Roundtable – which has fought other expansions of gambling in Ohio – argues the governor is agreeing to things he has no constitutional right to agree to. And it is suing.

Voters passed a constitutional amendment in 2009 to allow the four casinos to be built. It included a 50 million dollar licensing fee per casino, and a 33 percent tax the casinos will pay primarily to schools. But it does not include any language regarding the race tracks.

 

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