Gov. Kasich reaches agreement with Penn NationalWritten by Staff Reports | | email@example.com
Gov. John R. Kasich announced today that an agreement has been reached with Penn National Gaming, Inc., in which Penn would pay Ohio $110 million over 10 years, and Ohio’s Commercial Activity Tax would be applied to Penn’s wagers minus payouts, instead of on wagers only.
This agreement with Penn National is similar to an agreement reached with with Rock Ohio Caesars, LLC (ROC) that Kasich announced June 15.
Kasich issued the following statement, “I’m proud that Ohioans are getting $220 million more from gaming companies — funds that will help improve education and job training, as well as support food banks. I know that many thought it was futile to push the gaming companies for a better deal, but the governor’s job isn’t just to enforce laws, it’s also to make sure they benefit Ohioans in the greatest possible way. This agreement does that, and also provides the casinos a more predictable set of rules so they can be more successful. The casinos can now more forward without delay. This is a win for all involved.”
According to a press release from the Governor’s office the highlight of the new agreement are:
- $220 million more for Ohioans: ROC and Penn would pay Ohio $110 million over 10 years–$10 million per year for the first five years and $12 million per year for the next five years;
- Tax certainty for gaming companies: Ohio’s Commercial Activity Tax (CAT) would be applied to casinos’ total dollars wagered minus winnings and prizes paid out to customers;
- Capital Expenditures: Gaming companies would make a combined capital expenditure in their casino facilities of at least $700 million (ROC: Cleveland and Cincinnati, Penn: Columbus and Toledo);
- $50 million VLT Licenses: The Lottery Commission intends to allow each of Ohio’s seven horse racing permit holders to apply for a 10-year sales agent license to operate a VLT facility. Licenses would cost $50 million and be paid over time: $10 million upon application, $15 million at the onset of VLT sales, and $25 million one year later;
- Track Relocations: The state would consider transferring horse racing permits from current track locations to new locations, including locations in the Dayton and Youngstown areas.
Penn National Gaming, Inc. President and Chief Operating Officer Timothy Wilmott released a statement on the agreement in principle reached with the State of Ohio.
“Reaching an agreement with the Administration allows us to meet our primary goal of keeping our Ohio projects moving forward. While we continue to believe in the strength of our State Constitutional protections, any further delay caused by uncertainty would benefit no one — particularly the thousands of construction workers building our two projects, the 3,200 permanent casino jobs that will be generated, as well as every community across Ohio that will benefit from the hundreds of millions of dollars in new tax revenues. With this matter behind us, we look forward to working cooperatively with the Governor’s office and the General Assembly to bring this new industry to life,” Wilmott said.