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Hyperion Blog

05
Nov
2009

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Northeast Indiana may have fallen a step behind Ohio in the race for casino revenues after voters there approved a Nov. 3 referendum that would allow casinos to be built in four cities: Toledo, Cleveland, Columbus and Cincinnati.

However, Steuben County officials see the issue differently.

With 99 percent of precincts reporting unofficial results, Issue 3 allowing the four casinos passed 53 percent to 47 percent.

Penn National Gaming Inc., a Pennsylvania-based horse-racing track and casino operator, said in October it hopes to open gambling venues in Columbus and Toledo by late 2012.

A report commissioned by the city of Fort Wayne earlier this year warned that a large-scale gaming facility in Toledo would cut into this area’s largely untapped gaming market because some Ohioans would choose to patronize a casino in their own state rather than come to Indiana.

But Steuben County casino supporters, who want the Indiana Legislature to approve a plan to move one of casino operator Don Barden’s Gary licenses to Steuben and allow the county to conduct a casino referendum, were actually encouraged by the Ohio vote.

“I think the (Ohio referendum) improves our chances of moving a license … by diversifying locations in Indiana,” said Paul Sparks, a member of the Steuben County Council and the Steuben County Economic Development Corp.

The Indiana Legislative Service Agency estimated that Indiana’s casino tax revenue could decline as much as 25 percent if gambling were approved in Ohio and expanded in Kentucky. Angola Mayor Dick Hickman thinks Indiana will want to protect its interests by taking measures that could expand gaming in the Hoosier state.

“I’m thinking it might help (Steuben County). I think the state’s going to want to protect as much (gambling) revenue here as possible. That might push getting a referendum up here,” Hickman said.

Fort Wayne Mayor Tom Henry also has asked the Legislature to allow the city to hold a referendum on the establishment of a gaming facility here. While Steuben County officials have been united in their support of a casino, Henry has carefully avoided making any public statement of support for a casino.

Steuben County is looking at two possible sites, both near the intersection of the Indiana Toll Road and Interstate 69. It won’t be until after the Legislature reconvenes in January that backers will get a decision on their requests to move the Gary license and for the referendum that would be held in November 2010.

Gambling has dominated Ohio’s politics since July, when Gov. Ted Strickland, a first-term Democrat, and the Ohio Legislature adopted a budget counting on $933 million from the installation of 17,500 slot machines at seven racetracks.

That plan collapsed in September when the Ohio Supreme Court ruled that opponents should have a chance to put the slots issue on the statewide ballot next year. To replace the lost revenue, Strickland asked lawmakers to rescind an $844-million income-tax cut that took effect Jan. 1.

The Democratic-controlled House approved that plan in October. It’s awaiting action in the Republican-led Senate.

Penn National and Dan Gilbert, founder and chairman of Quicken Loans Inc., contributed $31 million of the $31.7 million raised by Ohio’s pro-casino campaign through Oct. 24, according to records maintained by the Ohio Secretary of State. Gilbert’s Rock Ventures Partnership, which owns the National Basketball Association’s Cleveland Cavaliers, plans to build the Cincinnati and Cleveland casinos.

Source: www.kpcnews.com

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