Kasich Casino Deal A Huge Loss to State and Education

Well, the results are in. Rock Gaming (operator of 2 of 4 of Ohio’s casinos) will cough up $110 million more in fees, over a decade, to the state of Ohio. That’s $10 million per year for 5 years and $12 million per year after that.

What does Ohio get in exchange for this $10 million annual windfall?

  • we lose around $100 million per year in CAT revenue (based on estimates of CAT at “$tens of millions” per casino, per year
  • we lose $215 million per year in tax revenue from video lottery terminals by lowering the tax rate from 50% to 33%
  • we lose $280 million in up-front fees from the 7 racetracks by lowering them from $65 million to $25 million each

But, hey, we get $10 million!!

Seriously, is this a joke? This clearly comes from the Lehman Brothers school of deal negotiations.

Conference Committee should reject this package and retain current law that sets VLT fees and revenue. The state, and education specifically, since that is where Lottery profits are earmarked, is the big loser here. We could go forward with VLTs and bring in a lot more money and the casinos can take it or leave it. Instead, we give up a huge chunk of that all for $10 million? No way should legislators accept that while their schools are cutting programs and teachers left and right.

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6 Comments

  1. Gotta get the word out to every major paper in the region. Enquirer, Dispatch, Plain Dealer, Daily News, etc…

  2. Additional revenues from Kasich’s dealings:
    Penn National: +$110 Million for Ohio
    Rock Ohio Caesar’s: +110 Million for Ohio
    ———————————————————-
    Total: +220 Million more dollars for Ohio

    You guys are just upset this guy got Ohio a better deal than Teddy Boy!

  3. strickland brought us out of the bottom 10 states and kasich is trying to put us back into the bottom 10 schools in the country again. is it because hes from pennsylvania and hes trying to sabotage us and greedy,so hes trying to chop this state like a car in a chop shop?… who voted for this guy? i know some of you did,you just dont have the balls to admit it. that cool, just, when you go to bed every night remember your partly to blame for this whole situation and i hope all of you are on his hit list too. and quit blaming that dumb ass pres. we have. hes outnumbered by a whole bunch of political “kasick’s”. he wanted to put taxes on the rich but the republicans threatened to stop un-employment. does anybody remember that, and it was at the height of the counrty’s un-employment, which he inherited. he wanted to go to clinton tax code but te republicans insisted they be aloud to keep the bush tax code. he had to take the lesser of two evils because he didnt have enoughpower in congress or senate. he may be an idiot, but seriously,look at the situation,then look at the alternative…he was the lesser of two evils…ohio…i dont what the hell you were thinking , but damn, you fucked up bad.and yes,i ‘m ,from and am here, but i voted for strickland. i’m not an idiot.you could c it all over his face and he even talked about giving himself and his frends and employees raises and bonuses when he thought they did something for it. look, hes doing just that and where do you think hes getting the money?…and we’re stuck with this prick. how mich damage do you think he’s gonna do before he leaves?…

Trackbacks

  1. Kasich’s Casino deal costs Ohio schools $215 million
  2. Slots at racetracks: not a budget fix | Ohio Budget Watch

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