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Updated: 2:42 a.m. Saturday, March 17, 2012 | Posted: 11:13 p.m. Friday, March 16, 2012

Tentative deal reached on Dayton racetrack fee

$75 million relocation fee OK’d to move harness racing here.

By Joanne Huist Smith

Staff Writer

The thunder of hooves on a new harness racing track in Dayton moved closer to the starting gate Friday with a tentative deal between Ohio Gov. John Kasich and Penn National Gaming, Inc. setting the fee to relocate a horse racing track at $75 million.

“We appreciate the efforts of the governor’s office in allowing us to reach this milestone and the administration’s commitment to helping us gain the remaining approvals for relocating our Ohio racetracks,” said Tim Wilmott, Penn’s president and chief operating officer.

Penn has spent more than a year clearing the path for relocation of its two Ohio horse racing tracks and the development of new ones in Dayton and near Youngstown. Both would be Ohio Lottery sales agents and have video lottery terminals. The agreement contemplates Penn paying the state 33.5 percent of its slots revenue.

“We think this is a good deal for taxpayers and a good deal for the industry,” said Rob Nichols, spokesman for Kasich’s office.

The agreement is a nonbinding, memorandum of understanding. The relocation fee must be approved by the Ohio State Racing Commission and the slots portion needs an OK from the Ohio Lottery Commission,

Dayton City Commissioner Nan Whaley called the announcement Friday a step in the right direction.

“We’re pleased with Penn’s commitment to the city,” she said.

The agreement prevents other gaming facilities from opening within 50 miles of Penn’s relocated tracks or new casinos under construction in Columbus and Toledo, with exceptions for Lebanon Raceway in Warren County and Thistledown Raceway, if it is moved from the Cleveland area to Akron. Penn has agreed to work with those facilities to maximize attendance, pari-mutuel handles and purses at both tracks, Bob Tenenbaum, spokesman for Penn, said.

Delaware North Companies and Churchill Downs Inc. struck a $255 million deal to buy Lebanon Raceway in early March and develop a racino with up to 2,500 video lottery terminals.

“We recognize that Lebanon (Raceway) has been there a long time,” said Tenenbaum, adding cooperation could mean coordinating racing days. “I think we’re committed to do that. That just makes good business.”

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