Strickland Not Concerned About Horse Tracks Missing Payments

COLUMBUS, Ohio—A deadline for Ohio’s seven race tracks to make an initial payment on a license to set up video slot machines came and went Tuesday, with only two of the seven tracks making the $13 million payment.

Northfield Park and Toledo’s Raceway Park both submitted their $13 million payments, while Columbus’ Scioto Downs, Beulah Park of Grove City, Lebanon Racey, Thistledown in Cleveland and River Downs in Cincinnati all failed to submit payments.

Ohio Lottery Commission spokesperson Jeanie Roberts said the five companies did not pay on Wednesday as well, leaving the tracks facing late fees of $100,000 per day.

Attorney David Paragas represents the seven tracks and told NBC 4 that the five tracks that missed the deadline are attempting to secure financing as quickly as possible.

Paragas said the companies are facing difficult obtaining credit due to investor and lender reluctance, which he attributed to the uncertainties posed by the Issue 3 casino campaign and several legal challenges against Governor Ted Strickland’s video-lottery terminal plan. The lawsuits, in particular, had a chilling effect on fund-raising abilities, according to Paragas.

Governor Strickland’s state budget relies on the video slot machines to plug a $933 million hole over the next two years. Asked if he saw the missed payment deadline as a bad sign for the plan’s future success, Strickland said he did not.

“At this point I am not concerned or worried that there will not be compliance,“ Strickland said. “I feel rather good about the fact that at this point there’s been good faith efforts to comply and to meet their obligations.“

Strickland said the issues the tracks face in obtaining financing are understandable. He went on to say that the state does not need the payments immediately, and the lottery commission will work with the tracks to determine whether to waive any of the late fees based on circumstances. The lottery director has discretion to reduce or waive the late fees.

Paragas said the tracks remain committed to paying the state the entire $65 million licensing fees. The CEO of Mountaineer Gaming, which owns Scioto Downs race track, said the company is moving forward at full speed with facility design and construction planning.

All seven horse race tracks submitted $100,000 non-refundable application fees to the state.

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