By Dick Miller
WE CONNECT DOTS: Over the past decade the status of a proposed combination casino and harness racing track northwest of New Castle in Lawrence County has always been in doubt. When government approval was eminent, financing was an issue. When the money seemed in place, state government dumped more barriers to granting a license.
Now circumstances have developed that could make a pending license approval a mockingly hollow victory. “Lawrence Downs Casino and Racing Resort” has already been awarded a license to conduct harness racing there. Final approval for the gambling must come from PA Gaming Control Board.
Recently developed circumstances have created even larger hurdles that must be dealt with after full license approval.
Most of the opposition to final government approval comes from nearby competitors.
Operators of the Meadows, near Washington PA claim “If permitted, Lawrence will be one of nine casinos in a 90-mile radius saturated with 18,000 slot machines and 450 table games,” according to a recent article in the Youngstown Vindicator.
Lawrence Downs, if built and open, will only be 20 miles from Hollywood Gaming at Mahoning Valley Race Course in Austintown OH, scheduled to open September 17. When efforts to get Lawrence licensed, casinos were not even permitted in Ohio.
Following huge successes in Vegas and Atlantic City, many state governors and legislators jumped on the slot machine bandwagon. They found what Nevada and New Jersey already knew. Why should politicians risk re-election by continuing to raise taxes when gullible voters offer no resistance to picking their pockets in this manner?
Now, as the country clearly reaches a saturation point for legalized gambling, the industry is maturing. The picture in Atlantic City is even worse.
Two casinos have closed and a third is about to, causing a “rapid-fire loss of 5,700 jobs,” according to the Philadelphia Inquirer. Economists believe southern New Jersey is about to be hit by another Great Recession. Casinos are not multi-purpose structures. The hotel portions could also become vast wastelands.
A boarded up casino in Reno, NV was converted to condominiums, but that state’s gambling business remains at least somewhat viable overall.
Revenues in Pennsylvania from legalized gaming have also now tapered off. Erie Downs has been showing disappointing results for the last several quarters as it fends off competition from Cleveland, southwestern New York and Canada.
Lawrence County leaders point to the potential job creation at their proposed site. First there is the 1,000 short-term construction jobs, then the 600 permanent full-time people needed to operate the facility. Most of the higher-paying jobs are now more likely to go to furloughed casino workers elsewhere, greatly reducing training costs.
Horse racing in Pennsylvania is also in jeopardy. Tracks here, with the help of gambling, generate $250 million annually for purses. Big prize money begets better horses and races. Last year, however, an Arabic sheik’s horse won a million-dollar purse in the Poconos.
That got some legislators in Harrisburg to thinking “Why not take most of that money and shift it to public education?”
The last hurdle for the Lawrence County project may well be money. The project is structured to use bond financing for at least $50 million of the cost. Lawrence County will issued the bonds, but with no government guarantee. Bonds repayments will be made from anticipated property tax and license revenues from Lawrence Downs.
With the drubbing investors are taking in Atlantic City, who will buy these bonds? If the Lawrence County racino does not last for the length of the terms of the bonds, investors here will lose their investment.
Full disclosure: This writer was a registered and paid lobbyist for an earlier attempt to locate a racino on the same site.
Bottom Line: Ultimate success in Lawrence County continues to be at the end of an ever-steep climb. If county leaders have put all their eggs in this basket, they clearly are doing their constituents a disservice.
