COLUMBUS-Penn National Gaming Inc., based in Wyomissing, PA, has signed a temporary agreement with the state of Ohio to build two new Hollywood racetrack and video lottery facilities in Dayton, OH and Austintown, OH for about $200 million. The two new commercial real estate properties would replace the current Beulah Park in Grove City, OH and Raceway Park in Toledo, OH.
The agreement is included in a non-binding memorandum of understanding between the company and Gov. John Kasich. The deal is far from complete, as many conditions have to be met, including the state approving the 2,500 slot machines at racetracks, the resolution of litigation that challenges the terminals, and finalized agreements by the horse owner associations and the state lottery and racing commissions. Penn reportedly already owns the 125 acres in Dayton, and has an option on the Centerpointe Business Park property in Austintown.
The company, which is already developing Hollywood casinos in Toledo and Columbus, wants to move its current racetracks away from the new properties. Tim Wilmott, president and COO of Penn, said in a statement that the two areas being discussed for the new racetracks are “underserved with this type of entertainment option.” Also, the state deal could restrict any other casino or gaming facility from being located within 50 miles of the new casinos and racetracks.
Penn’s racetrack deal would require it to pay a $75 million relocation fee per facility, as well as paying 33.5% of the terminal revenue to the state, and an undetermined amount to the horse racing industry. The company also said in a statement that it will give current employees at the two existing racetracks preference in jobs at the new casinos, which are scheduled to open this year.
The company presently operates 26 gaming facilities in 18 states and Ontario, Canada. Penn’s facilities in Ohio are part of the state’s move to open four casinos, including the Horseshoe Cleveland and the Horseshoe Cincinnati, both being developed by a joint venture of Quicken Loans and Caesar’s Entertainment.
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