Just two weeks after Penn National Gaming announced it was pulling out of a contract to build and manage one of the four Kansas casinos, because it hadn’t been awarded a second casino contract that could help to outweigh the disadvantage of having a busy tribal casino operating just across the border in Oklahoma, the company is being accused of waging a campaign against prospective casino legislation in Ohio. MyOhio Now.com is seeking to amend Ohio’s constitution to allow casino development.

Proponents of casino legislation in Ohio are asking voters to disregard advertisements partly paid for by Penn National Gaming with an estimated budget of over US$25 million. The issue is on November’s ballot and MyOhioNow.com claims its proposed casino complex 50 miles north-east of Cincinnati would directly employ 5,000 plus 3,700 indirectly and generate tax revenue for Ohio’s 88 counties. Penn’s Argosy Casino in south-east Indiana draws customers from the Greater Cincinnati area.

Penn officials say the MyOhioNow.com project is a bad deal for Ohio as it would constitutionally allow a monopoly operator and a gambling commission with no power to regulate types of games, opening hours or betting limits. There would also be no zoning board review of the building plan and a licence fee set at only US$15 million, which is far below gaming licence fees imposed by other states. There is some controversy over signatures collected to get Issue 6 on the ballot and allegations of fraud are being made.

The MyOhioNow.com founders are in partnership with casino operator Lakes Entertainment, which would hold a 70% stake in the operation. If Issue 6 is approved by Ohio voters then a US$600 million casino resort will be built near Wilmington. In the meantime the Kansas Racing and Gaming Commission will take new applications for the casino location rejected by Penn, but could find few companies willing to compete with the adjacent tribal casino at a time when gaming revenues are falling. (E-09.24.08)

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