Two Cleveland-area men trying to win Ohio voter approval for a single gambling casino in the Cincinnati area yesterday came to Maumee to attack a competitor that they said is bankrolling the opposition.
Rick Lertzman and Dr. Brad Pressman, co-founders of MyOhioNow, claimed that their proposal will yield 5,000 new Ohio jobs and generate a 30 percent gross receipts tax that would be distributed to all the counties in Ohio.
Issue 6 on the statewide ballot asks voters to amend the Ohio Constitution to allow a casino resort off I-71 near Cincinnati.
They accused Penn National Gaming Inc., owner of Toledo's Raceway Park and the Argosy casino just over the Indiana border, of planning to spend $40 million on ads to defeat the question.
"Issue 6 has a huge economic upside and huge economic benefits," Mr. Lertzman said. He accused Penn National of "hiding behind $40 million in ads" to protect their casino from competition.
The amendment would subject the casino to a tax of up to 30 percent on its gross receipts. However, if another casino is allowed to open in Ohio the tax on the MyOhioNow casino would be lowered to whatever the other casino's tax rate is.Mr. Lertzman, a former business liquidator, and Dr. Pressman, a retired podiatrist, used a conference room in a Maumee hotel yesterday to make their case.
They are partners with Lakes Entertainment Inc. of Minnesota in a joint venture called Blue Water which would own the proposed casino. Lakes Entertainment operates private and tribal casinos in Michigan and elsewhere. They ran a signature petition that succesfully put the question on the Nov. 4 election ballot.
Penn National spokesman Bob Tenenbaum said
MyOhioNow is seeking a monopoly license. He said the potential 30 percent tax would end up as zero if the federal government approves any of the 12 Native American casinos that he said have been applied for in Ohio because those casinos are not subject to state tax.
"You're writing into the constitution a monopoly for one casino in Clinton County which potentially could wind up paying no taxes on their profits," Mr. Tenenbaum said.
Mr. Lertzman and Dr. Pressman have a study that they said shows a very low probability of Indians winning the right to establish a casino in Ohio.
Also opposing Issue 6 is the Ohio Roundtable, which is opposed to gambling.
Mr. Tenenbaum refused to say how much money the group will spend. Penn National backed an unsuccessful racetrack-casino proposal in 2006.
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