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July 11, 2011

Track's future is on the line

Nancy Lowry New Castle News

NEW CASTLE — The Pennsylvania Harness Racing Commission is expected to decide tomorrow if horse racing is in Lawrence County’s future.

At a special session scheduled for 9:30 a.m. in Harrisburg, the commission will consider the license application of American Harness Tracks LLC. The Pittsburgh-based organization in May applied for the harness track license held by Indiana-based Centaur Gaming to operate Valley View Downs, a racetrack/casino planned for Mahoning Township.

After obtaining the license to operate a mile-long harness racing track in Mahoning Township, Centaur failed to obtain a casino license. It has since lost its financing and declared bankruptcy.

Both Lawrence County Commissioner Dan Vogler and State Rep. Chris Sainato plan to attend the session.

“They are supposed to decide the fate of American Harness Tracks,” said Sainato. “I don’t want to speculate what will happen, but this is what we were waiting for. I hope that it will be a good meeting.”

Sainato said he spoke with Charles Knoll Jr., managing partner of American Harness, at the June 30 harness commission meeting.

“At that time he was hopeful that a special meeting would be called to consider his application,” Sainato said.

Vogler said he was told the meeting is “to consider the stock transfer application of American Harness. “I hope this is good news for Lawrence County,” he said.

American Harness formally applied to the commission for the license on May 31.

 American Harness last year was the successful bidder for the assets of Centaur Gaming at an offer of $5.6 million, including the rights to apply for the license. The company since has been negotiating for financing to move the project forward.

Once the harness track license is secured, American Harness can apply to the Pennsylvania Gaming Control Board for a license to offer slot machine and table gambling at a casino accompanying the racetrack.



COMPETITION

American Harness isn’t the only entity seeking a racetrack/casino for the area.

Two separate developers are eyeing the Youngstown area as a potential site for their ventures.

Penn National Gaming, which operates a track/casino in the Harrisburg area, announced plans this year to relocate a harness racetrack somewhere between Toledo and Austintown — only if slots are available.

Penn National wants to build a $200 million facility on 186 acres in the Centerpointe business park near Columbus, and it plans to relocate another track from the Columbus area to Dayton.

In January, Cleveland developers Rick Lertzman and Dr. Bradford Pressman announced plans for Mahoning Valley Downs and Resort in the Youngstown area. They are proposing to build a $300 million thoroughbred track and possible casino, paired with a golf course, auto racetrack, hotel, restaurant and family-friendly facilities.

Last month Ohio Gov. John Kasich opened the door for such development when he signed legislation — fast-tracked by the Ohio House and Senate — that streamlines the track relocation process, recalculates how gaming facilities will be taxed and asks the Ohio State Lottery Commission to consider applications by the tracks to operate video lottery terminals that are similar to slot machines.

Under the bill, casinos would pay the state’s commercial activity tax based on the difference between what is wagered and what is paid out to patrons in winnings.

Currently the tax is based on gross receipts or, in the case of casinos, what is wagered.

The bill will streamline Penn National’s proposal to relocate the facilities, but the Ohio Racing Commission will have final say.

Penn National has said the move is contingent on the Ohio state lottery allowing video lottery terminals, similar to slot machines, at the racetracks.

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