Summary
Governor Strickland, in Cleveland visiting a local business, stated that he won't give up on plan to implement slot machines at Ohio racetracks.
Analysis
With this statement, on top of the previous official statement released from his office, Governor Ted Strickland is signaling that he is likely to approve the implementation of Video Lottery Terminals at Ohio's horse tracks via executive order. Top advisors to the Governor have always believed that he has the authority in the Ohio Constitution to implement VLT's as an additional lottery game. The legislation was only added to further assure investors.
Ohio's constitution, approved by the people of Ohio, authorizes the Governor to conduct a statewide lottery via a state agency. Under this legal theory, VLT's are simply another form of a lottery. There are no other prohibitions against gaming in the constitution and the Governor's executive order, under the authority of the Ohio Constitution would trump the Supreme Court's ruling.
Politically, Governor Strickland has to enact VLT's by executive order. If not, he faces another bruising political fight in the Ohio General Assembly over tax increases as he approaches re-election.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
