November 29th, 2010 – by Glen Farmer
Pinnacle Entertainment has announced that they will be acquiring River Downs Racetrack in Ohio. A sum of $45 million will be paid for the Ohioan racetrack.
Pinnacle’s purchase has given them an opportunity to diversify their properties. The possibility of video lottery terminals in the state’s racetracks could make this a very profitable decision for the company.
The gambling industry in Ohio is in a constant state of flux and expansion. Pinnacle’s plan to revitalize the River Downs Racetrack will play into the expansion of gambling in the state, as well as create new employment opportunities and generate tax revenue for the state.
The company has stated that, in the event that video lottery terminals are legalized for racetracks, they will “move quickly” on the creation of a new gaming hall for the machines.
In 2009, Ohioan voters passed a referendum that legalized casinos in the state. These casinos have yet to move forward with any pace of rapidity, and the election of a new governor and attorney general have slowed the industry even further.
Ohio’s courts will ultimately decide on whether or not video lottery terminals could be established in Pinnacle’s new acquisition. For now, many issues surrounding gambling in the state have been unanswered and lie within a legal grey area.