If Approved, Casino Ballot Proposal Will Bring $1 Billion in Private Investment, 20,000 New Jobs and $600 Million in Annual Casino Tax Revenues to Ohio
COLUMBUS, Ohio & WYOMISSING, Pa.--(BUSINESS WIRE)--Mar. 11, 2009--
Penn National Gaming, Inc. (NASDAQ: PENN) announced that it was backing
the Ohio Jobs and Growth Plan, a new casino ballot proposal
calling for an amendment to the State’s Constitution. Under the
proposal, which was submitted today to Ohio’s Attorney General, the
amendment would authorize casinos in the State’s four largest cities and
would bring $1 billion in new private investment, contributing to the
revitalization of Cincinnati, Cleveland, Columbus and Toledo. In
addition to Penn National (which owns Toledo’s Raceway Park horse track)
Dan Gilbert, Chairman and Founder of Quicken Loans and majority owner of
the Cleveland Cavaliers of the National Basketball Association is also
supporting the new proposal.
“We are excited to be supporting what we believe is the best proposal
ever to bring casino gaming to Ohio as we believe the Ohio Jobs and
Growth Plan can generate significant, wide reaching near- and
long-term economic benefits for the State,” said Peter M. Carlino,
Chairman and Chief Executive Officer of Penn National Gaming. “We have
worked cooperatively and constructively with supporters of this plan to
develop a proposal that can benefit all parties, most importantly the
citizens of Ohio through the private investment of a minimum of $1
billion in the State’s major urban areas, the creation of 20,000 new
jobs and $600 million in new annual tax revenues. These investments will
help to revitalize struggling Ohio metropolitan areas while providing
support for counties, cities and public schools across the state as well
as Ohio’s horse racing industry. This plan was structured to ensure that
developers of casinos in the state would invest appropriately to create
first-class gaming facilities.”
Once the petition language is approved, the Ohio Jobs and Growth Plan
committee will begin collecting signatures to place the amendment on the
November 3, 2009 statewide ballot. The proposal would:
-
Authorize casinos at designated locations in Cincinnati, Cleveland,
Columbus and Toledo.
-
Require that each casino operator pay an upfront $50 million license
fee – a total of $200 million -- to the state, with the revenue
designated for job training and workforce development projects
statewide.
-
Require casino developers to make a minimum investment of $250 million
in each casino facility, resulting in a total minimum investment of $1
billion.
-
Create an estimated 20,000 new Ohio jobs, including construction jobs
and permanent casino jobs once the facilities open.
-
Impose a permanent 33% tax on gross casino revenues, generating an
estimated $600 million in casino tax revenues each year, with the bulk
of the money being distributed to counties and school districts
throughout the state.
Mr. Carlino added, “As members of the Ohio business community through
our ownership of Raceway Park in Toledo, we are fully aware of the
economic challenges facing the state. This proposal offers Ohio help in
meeting those challenges, and we believe voters will recognize the
benefits of this approach and approve this proposal in November. We are
eager to take part in a successful campaign and to be involved in the
development of the gaming industry in Ohio for many years to come.”
About Penn National Gaming
Penn National Gaming owns and operates gaming and racing facilities with
a focus on slot machine entertainment. The Company presently operates
nineteen facilities in fifteen jurisdictions, including Colorado,
Florida, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi,
Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, West Virginia, and
Ontario. In aggregate, Penn National’s operated facilities feature over
25,400 slot machines, approximately 400 table games, over 2,000 hotel
rooms and more than 930,000 square feet of gaming floor space.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Actual
results may vary materially from expectations. Penn describes certain of
these risks and uncertainties in its filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for the
year ended December 31, 2008. Meaningful factors which could cause
actual results to differ from expectations described in this press
release include, but are not limited to, the passage of state, federal
or local legislation that would expand, restrict, further tax or prevent
gaming operations in Ohio; and other factors as discussed in the
Company's filings with the United States Securities and Exchange
Commission. Furthermore, the Company does not intend to update publicly
any forward-looking statements except as required by law. The cautionary
advice in this paragraph is permitted by the Private Securities
Litigation Reform Act of 1995.
Source: Penn National Gaming, Inc.
Penn National Gaming, Inc.
Eric Schippers, 610-378-8321
Senior
Vice President, Public Affairs
