Penn National Agrees to Casino Deal

Penn National Agrees to Casino Deal

Governor Kasich and Penn National agreed to a deal similar to that with Rock Ohio. Penn National will also pay the state an additional $110 million. In return, the state will assess the commercial activity tax on total wagers minus payouts. This agreement also opens the door for Penn National to move its Beulah Park horse racetrack from Grove City to the Dayton area, although the final decision will be determined by the Ohio State Racing Commission.

In addition to the terms of the deal with Rock Ohio mentioned in our News of June 16:

  • Both developers will be required to invest a minimum of $700 million into their casinos. Rock Ohio had agreed to $900 million, an amount which they still plan to invest;
  • The additional $110 million does not have to be paid should Ohio’s gambling laws change significantly;
  • Owners installing slots will be required to invest a minimum $150 million into the facilities, including gambling devices. A maximum $25 million credit will be allowed for value of existing facilities and land.

In related news, The Ohio Roundtable has threatened to sue everyone involved with the deal, claiming it is unconstitutional. The Roundtable also filed a lawsuit in 2009 to prevent then-Governor Strickland’s attempt to authorize slots at horse racetracks.

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