Gambling taking over Horse Racing Tracks in Ohio
Ohio state officials cleared the path for Harrah Entertainment’s acquisition of horserace tracks in Cleveland Suburbs. On Thursday the Ohio state racing commission gave an all clear for the purchase of Thistledown racetrack to Las Vegas based gaming giant through a bankruptcy auction for a price tag of 43 Million dollars. Last year alone 147 Million dollars worth of bets were placed at the racetrack.
A second track, Beulah Park has also been cleared for sale at 37 Million dollars. Penn National gaming is set to buy Beulah Park, which would become the second racetrack owned by Penn National Gaming in the state of Ohio. They also hold rights to planned casinos in Columbus and Toledo.
If approved by voters in November, the track may sport video slot machines.
Dan Gilbert Chaired (who is also Cleveland Cavaliers majority owner) Rock Ventures had previously struck a deal with Harrah Entertainment that could enable the company to take a piece of the Thistledown pie. Gilbert would, in all likelihood, hire companies such as Harrah Entertainment to run his casinos in Cleveland and Cincinnati. Gilbert though, could be eying more than just two casinos in the state of Ohio.
Ohio State’s Racing Commission executive director, Tom Fries, acknowledged the possibility of Gilbert taking over ownership of Thistledown. “At a future date they have an agreement that Rock Ventures could purchase thistledown,” he said.
The sale would go a long way in concentrating power and controlling competition in the state’s gaming landscape. What the sales mean is that between Dan Gilbert and Penn National Gaming the owner ship of four future casinos (in Cleveland, Toledo, Columbus and Cincinnati) and three of the state’s seven horse racing tracks, would lie.
Fries also said that he expects the plans to introduce 17,500 slots machines at Ohio’s seven racetracks to eventually go through, despite the slow progress in that regard. If the proposals do no pass voting the combined 80 million dollars investment in Ohio’s money loosing racetracks would be very unsound. According to popular opinion, however, that is unlikely to happen.
“I would say they are counting on Ohio getting VLTs (Video Lottery Terminals), or I should say they are betting on it with this kind of commitment,” Fries explained. A statement from Penn’s Vice President confirmed Fries’ remarks. “We see VLTs coming to Ohio’s Racetracks as a question of when not if,” Vice President Eric Schippers said.
Even if the slot machines fall through in the votes, according to Schippers, Penn would stand behind Ohio’s racetracks and horse racing. Both Fries and Schippers hope the slot machines will be at the tracks and are optimistic about the November vote that will decide the racetrack’s futures.
State legislature was stopped in its plan, led by Governor Ted Strickland, to add the 17,500 slots to the seven Ohio tracks. The slots were supposed to be in place by May and expected to generate over 900 Million Dollars in Revenue. However a group by the name of “Let Ohio Vote” argued in court that the state legislation was not within its rights with regards to the slot machines issue and it was the people prerogative to vote for it in a referendum. The courts agreed and a vote on the issue is due this November.
There was speculation that Casino groups were funding “Let Ohio Vote.” Penn denied the allegations and Gilbert neither confirmed nor denied the allegations. The question really is, now that the people get to vote, will they vote in favour of Gaming in Ohio? The approval of four casinos by popular vote would suggest that the November ballot will turn out favourably for gaming. Though we will still have to wait and see. It is all good news however for horse racing enthusiasts. Struggling tracks all around the country need more revenues to survive, an injection of cash to simply stay afloat until a miracle or slot machines can save the sport.
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