Restarting in Ohio

Now that Penn National Gaming and Rock Ohio Caesars have waved the white flag to Gov. Jon Kasich‘s monetary demands, work is resuming at their once-stalled Ohio casinos. In the case of ROC’s Cleveland casino, Rock Ventures and Caesars Entertainment have doubled up on their workforce, to play-catch up to the month that was lost in the Kasich confrontation. At least l’etat c’est moi Kasich has backed off a comp-killing tax that was part of his “comprehensive solution.” A couple of casino-friendly concessions thrown into the legislation further salve any wounds left by the ass-whupping that Kasich laid on Penn and ROC.

However, Caesars, Penn and Kasich alike could all be tripped up much as ex-Gov. Ted Strickland (below) was: By failing to legalize racinos in the Buckeye State through the initiative-and-referendum process.

The current governor’s decision to write them into existence as a means of getting Penn to sign off on significant fee increases is going to draw a court challenge, much like the one that shot down Strickland’s racino trial balloon. So will an accord on the Commercial Activity Tax. If the state courts decide that all monies wagered (not won) go into the CAT kitty, that will tax casino and racino operators tens of millions more per year, making the path to profitability in Ohio much rockier. Of course, it might not bother Kasich too much, since it will, in all likelihood, further liquify the juice job he cut with his pals at Moelis & Co., the guys you call when you want Big Gaming dragged into a back alley and clubbed into submission.

Two horse-track operators have made it known that they’d also like a shot at the Dayton market and don’t appreciate Penn attempting to bigfoot it, as they see the matter. Fortunately for Dayton-area Lebanon Raceway, HB 277 would give it first dibs on the track, forcing Penn and everybody else to queue up to the rear.