Ohio governor, horse racing industry concerned about effects of casinos

Ohio gov. expresses concern for racing industry

COLUMBUS, Ohio — Ohio’s governor and members of the horse racing industry are concerned that casinos recently approved for four cities by Ohio voters could hurt the state’s struggling racing industry.

Tracks in the state already have seen customers siphoned away by neighboring states’ casinos and tracks that have slots or casino gambling. Last week, voters approved casinos for Cincinnati, Cleveland, Columbus and Toledo, all home to racetracks.

“The horse racing industry was already facing very, very difficult challenges,” Gov. Ted Strickland said. “And I’m very concerned because a lot of people are employed in the racing industry, and I think that this is going to present a very serious challenge to the industry.”

About 12,000 people work in Ohio’s racing industry.

Earlier this year, Strickland planned to put 17,500 slot machines at the state’s seven tracks to help bolster the horse racing industry and the state budget. But the Ohio Supreme Court sidelined the governor’s plan when it said opponents can try to put the measure to a popular vote.

Strickland has said he plans to ask the courts to decide whether the Ohio Lottery has the authority to add slot machines to racetracks. The court didn’t answer that question when it ruled on the legal challenge to the governor’s plan.

Some believe Strickland could and should order the Ohio Lottery to put slots at the tracks, said state Sen. Bill Seitz, R-Cincinnati. That would give the tracks a head start since the casinos won’t be built until at least 2012, he said.

Ohio horse trainer Chris McGuire of Franklin races his horses in Indiana and Pennsylvania where purses are larger. He said he wants something done to level the playing field for Ohio’s tracks.

“The sad part about it is you can make a living racing in other states,” he said.

Ohio Racing Commission member Tom Zaino predicts that without slots, five of the seven tracks will close within a few years.

C. David Paragas, an attorney for the Ohio Legacy Fund that represents the tracks, said five tracks would survive with slot machines.

A Republican political strategist who follows the gambling industry expects slot machines eventually will be allowed at Ohio tracks but is concerned the casinos could hasten the demise of some tracks.

“I’m not sure how it’ll all happen, but one way or another, there’s going to be some consolidation. There will be fewer tracks,” strategist Terry Casey said.

The voter-approved casinos for the four cities will provide some cash for racetracks, breeding programs and purses. Three percent of the expected $650 million a year in taxes will go to an Ohio Racing Commission fund to help horse racing, but industry officials think that money may be too little, too late.