On June 27, the Ohio Senate rejected Governor Ted Strickland’s plan to put video lottery terminals (VLTs) at seven Ohio horse tracks. Strickland’s plan would raise an estimated $933 million over the next two years, in an effort to help erase the state’s $3.2 billion deficit. Senators who rejected the plan called for the Governor to use his executive power to expand the state lottery to include VLTs, just as he did with Keno. However, Strickland has stated that the legislature needs to authorize the plan in order to put it on firm legal ground. Recent polls have shown that while most Ohioans support a plan to bring in video slots, a significant majority would prefer the issue to be settled through a state-wide ballot initiative. 

Strickland stated that if the Senate continues to oppose the VLT plan, it must come up with its own solution to the state deficit. With no solution in place, the legislature approved an interim budget for the state to operate on, which will be in place until July 14. 

In hearings held on July 2 and 3, the Senate continued to question the viability of Governor Strickland’s VLT plan. Much of the criticism was directed at a provision of the plan which gives VLT investors the option of getting their money back if a November ballot issue legalizing casinos in four Ohio cities is approved. The provision will allow for the return of licensing fees, which could eliminate up to $455 million of the $933 million that the VLT plan is projected to generate. 

Additionally, some supporters of the VLT proposal have voiced opposition to the November casino initiative. They argue that the casinos, which will feature roulette, card, and other table games, will drive the VLT racetracks out of business.