COLUMBUS — Multimillion-dollar downpayments on racetrack slots proposed by Gov. Ted Strickland are at risk if Ohio voters approve a competing casino plan in November, the chief executive of a major racing company said Friday.

MTR Gaming Group Inc. CEO Robert Griffin told a special state Senate committee that a provision in the governor’s plan allowing horse tracks to get their money back if casinos are legalized is intended to reassure potential investors.
Griffin said his company is prepared to spend $6 million to $8 million to defeat the casino plan, backed by rival gaming company Penn National, and make the governor’s slots proposal a money maker.

“By providing VLTs (video lottery terminals) at the tracks, you can decide to put people back to work by creating thousands of new jobs resulting in millions of dollars in new revenue for the state and local governments,” Griffin said. “At the same time, we can provide a very real economic boost to the horse industry and the supporting agricultural communities that are in a very real downfall today.”

But senators exploring details of Strickland’s plan expressed concern and anger at the surprises turning up in the 11th hour proposal to balance the $54 billion, two-year state budget.

“This committee was called a political stunt,” said state Sen. Jon Husted, a Kettering Republican and member of the committee. “Today, after two days of hearings, we are clear that what this committee has done is discover the fatal flaws that need to be addressed.”

Strickland spokeswoman Amanda Wurst said the governor proposed his framework on June 19 and the details were left up to lawmakers.

“The governor continues to think the VLTs at racetracks are a better option than a tax increase,” she said. “If the Senate doesn’t like the proposal he has put forth, they should tell Ohioans what programs they want to cut or what taxes they plan to increase.”

The Strickland administration has estimated that licenses at each of seven Ohio horse tracks would raise $65 million in licensing fees, contributing to the $933 million in total revenue they say slots would pump into state coffers. That money, combined with $2.3 billion in cuts, is proposed to fill a $3.2 billion budget hole.

However, legislative language released late Thursday revealed a provision included Strickland’s plan gives investors the option of getting their money back if a fall ballot issue legalizing casinos in four cities is approved.

Griffin said the “clawback” provision will provide the financial assurances necessary to get slots facilities moving quickly. Upon further questioning, however, he said heavy investment in the “racinos” housing slots at racetracks is probably unlikely until his company sees the outcome of the fall ballot issue.

Mountaineer owns Scioto Downs racetrack in Columbus.

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