The governor calls the deal he's struck with casino operators a win-win, adding nearly a billion dollars more for state coffers and giving the gaming industry what it wants... more outlets, and lower taxes.
Recalling a 3:15 AM phone call last Friday with Rock Ohio's Dan Gilbert, Kasich says the months-long negotiation was not fun, but was necessary.
In short, Rock Ohio Caesar's will pay 110 million dollars over 12 years, 'above' the initial license fee.
But the deal also allows the state's seven race tracks - one owned by Rock Ohio - to build facilities for Video Slot machines. Each track will have to pay $50million for a license, and spend $150 million in upgrades for the gaming areas.
Kasich says the money raised will go to state food banks; and for job training.
GOVERNOR JOHN KASICH:
"This, I believe, puts us in a position of where we can honor the ballot issue that passed and where the casinos can get operating again, but I also believe it restores the sense of balance and a sense of equity to the taxpayers of the state."
For the casinos, the deal frees them of a feared tax obligation, with the state now willing to accept taxes on net income, not what the casinos take in 'before' they pay winnings to customers.
Dan Gilbert says the more his team studied the options, the more it seemed a logical compromise.
DAN GILBERT:
"It really came down to 'we need to get this thing going again, we need to get people back to work... we need to get the casinos happening in the urban corridors of both Cleveland and Cincinnati. We went to the table and we listened, and we talked to the state, and we decided that after several days of negotiations, the deal made sense for us'..."
Workers should be back at downtown Cleveland's Higbee building next week - hoping to open phase one of the Horseshoe Casino -Cleveland next year... with the larger, adjacent facility to follow.
The deal also permits the two facilities to be considered as one licensee, once both are open and physically connected across Huron Avenue.
