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Friday, November 22, 2002

Bill would make video slots done deal


Ohio lawmakers say it'll have a hard time passing Senate

By Jim Siegel
Gannett Columbus Bureau

COLUMBUS - A bill placing video slot machines at Ohio's racetracks while denying citizens the chance to place it on the ballot is facing mounting opposition from senators.

The bill introduced this week contains an emergency clause, putting the proposal into effect immediately after passage and eliminating the chance that opposition groups could gather signatures for a statewide referendum.

Ohio voters in 1990 and 1996 rejected casino gambling measures.

Sen. Jay Hottinger, R-Newark, opposes slot machines regardless, citing the long-term financial damage to Ohio's families. But he said the only way the bill might pass the Senate with a veto-proof majority is if citizens have the opportunity to challenge it.

"That's the only thing that has a viable, fighting chance," he said, noting that the 33-member Senate would be lucky to produce majority support, much less the 22 votes needed to pass the emergency clause.

"I think there's some bad vote counters in the legislature on this issue."

A Senate committee on Thursday held its first hearing on the bill, which has been openly opposed by Gov. Bob Taft - who has threatened a veto - as well as four other state officeholders and Ohio's two U.S. senators.

The bill is getting renewed interest in this lame-duck session as a multibillion-dollar shortfall looms in the next two-year budget. Up to 2,000 video slot machines at Ohio's seven race tracks could generate an estimated $500 million per year for the state.

Rod Willcox, an attorney representing Scioto Downs racetrack in Columbus, said track owners can't compete with neighboring states like West Virginia, where tracks can increase purse winnings because of video slot revenue.

Others noted that two-thirds of those gambling at border casinos along the Ohio River or in West Virginia are from Ohio.

"It's time that Ohio wakes up and saves this revenue for itself," Mr. Willcox said.

Under the bill, racetracks would get 47.5 percent of the gross proceeds, money remaining after winnings are distributed. Counties and townships where tracks are located split another half percent, while the remainder goes to primary and secondary education.

Some committee members questioned why racetracks were taking such a large cut, considering Ohio Lottery agents get just 5.5 percent of ticket sales.

"This is packaged and sold as an expansion of the lottery, but on the other hand you say you deserve a much higher take of the profit," said Sen. Jim Jordan, R-Urbana, an ardent opponent of the bill. "Which one is it?"

Mr. Willcox said unlike lottery agents, horse tracks must maintain and likely expand facilities to house the slots.

"This is a whole new business," Mr. Willcox said. "You're comparing apples and oranges."

But the emergency clause seems to generate the most concern among senators who might otherwise support the measure. Four of the Senate committee's nine members already have said publicly they will oppose it.

"If the issue was a vote to put it on the ballot, I could do that," said Sen. Bill Harris, R-Ashland, a committee member. "When voters have twice before voted against casinos, it's a tough sell."

Sen. Louis Blessing, R-Cincinnati, the bill's sponsor, said he included the clause because the state needs the money right away. But he said Thursday he'd be willing to remove it if it meant gaining enough votes for passage.

"Right now our residents are taking the money to other states," he said. "It pains me to see other states sucking Ohio dry."

Senate Minority Leader Greg DiDonato, D-New Philadelphia, said Democrats are willing to offer votes if Republicans make a few concessions. These include allowing schools to pay prevailing wages on building construction projects, freezing tuition at two-year colleges and holding hearings on a Democrat-supported prescription drug bill.




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