United States District Court Judge Michael Watson granted the Ohio HBPA’s motion for partial judgment on the pleadings in its lawsuit versus the Ohio State Racing Commission, Beulah Park, River Downs, Chester Downs, et al.

In a ruling filed September 23, 2008 Judge Watson ruled that the Interstate Horseracing Act preempts the Ohio Revised Code section 3769.089(G). The ruling also found Chester Downs in violation of the IHA and reserved the determination of damages against Chester Downs for a later date.

The rulings stemmed from a lawsuit filed by the Ohio HBPA in January 2007. The lawsuit was filed after the Ohio HBPA had denied its consent for Beulah Park to export the Beulah signal to Chester Downs pending an increase in the requested host fee rate from 3% to 5%.

Beulah Park and River Downs challenged the denial of the Ohio HBPA using an Ohio law that allowed a permit holder to appeal to the Ohio State Racing Commission. Under the Ohio law the racing commission could overrule denial by a horsemen’s group if it found that the horsemen withheld permission to export simulcast signals by a track “unreasonably.” In December, 2006 the Ohio State Racing Commission sided with Beulah Park and River Downs and overruled the Ohio HBPA’s denial of consent.

In January, 2007 Beulah Park began exporting its signal to Chester Downs after which the Ohio HBPA filed suit.

“Despite being a small organization the Ohio HBPA Board of Directors felt it was imperative to protect the rights guaranteed to horsemen under the Interstate Horseracing Act” said Dave Basler, executive director of the Ohio HBPA.

“Judge Watson’s well crafted opinion validates our organization’s opinion that the Ohio statute used by the racetracks to deny horsemen’s consent was unconstitutional. We are thankful to our lead attorney Doug McSwain and his team for all of the hard work they have put in on this case and to the many organizations and individuals who helped us to finance this battle to protect horsemen’s rights” said Basler.

McSwain said, “Judge Watson’s ruling is a significant victory for horsemen’s rights. Neither a racing commission nor a racetrack has the authority to overrule horsemen if they withhold consent to interstate simulcast betting. Congress intended for horsemen to be co-equal partners with host racetracks and racing commissions in the decision whether to allow interstate simulcast betting, and if so, at what price and under what terms and conditions. Unfortunately, in some states like Ohio, laws have been adopted that try to curb the horsemen’s right to veto interstate simulcast betting. But, this decision vindicates the legal principle that what Congress gave to horsemen, no state or racetrack can legally take away.”

Ohio HBPA executive vice president Bob Reeves, who was instrumental in the filing of the lawsuit, said “This opinion will help horsemen’s organizations across the United States and serve as a guideline for those organizations as to the proper exercise of their rights guaranteed under the IHA.”

On July 13, 2009 Ohio Governor Ted Strickland issued a legislative directive authorizing video lottery terminals (VLT's) at Ohio's seven racetracks.

Ohio's two-year budget bill signed into law by Strickland on Friday, July 18 contained limited language regarding VLT's at the racetracks. The remainder of VLT regulations will be promulgated through rules created by the Ohio lottery commission.

The percentage of VLT revenue which will go towards purses was not addressed by the Governor's legislative directive nor the budget bill and will be negotiated between the HBPA and the track operators.

Ohio lawmakers have expressed their desire to have each of the tracks VLT operations to be fully up and running by May, 2010.

Several groups have stated publicly that they will challenge the Governor's legislative directive in court on the grounds that the order violates the Ohio Constitution.

The purchase of Beulah Park, located in Grove City, by Penn National was completed on Thursday, July 1, 2010.

Penn National had entered into an agreement to purchase Beulah Park this spring, the final contingency to be completed prior to the sale being completed was the approval of the transfer of Beulah Park's racing permits by the Ohio State Racing Commission to Penn National which was completed via a unanimous vote at the OSRC meeting on Wednesday, June 23.

Penn National currently owns and operates Penn National Race Course in Pennsylvania as well as Charles Town Race Course in West Virginia as well as harness track Raceway Park in Toledo. In May, 2010 Penn entered into an agreement to form a joint venture with MI Developments regarding the assets and operations of the Maryland Jockey Club which includes both Laurel and Pimlico Race courses.

Thistledown, located in North Randall, was purchased for $43 million by Harrah's Entertainment on May 25, 2010 through a bankruptcy auction.

The transfer of the Thistledown racing permits to Harrah's Entertainment was approved by the Ohio State Racing Commission on June, 23. Harrah's purchase of Thistledown closed on July 28, 2010.

Harrah's Entertainment currently owns and operates Louisiana Downs and is a part owner of Turfway Park in Kentucky,

The Ohio HBPA and Thistledown have entered into an agreement for the 2010 live racing season at the Cleveland-area track.

Under the agreement, Thistledown will run a 122-live racing day schedule in 2010 with opening day scheduled for April 23 and racing continuing through November 6. The 122-day live racing schedule matches the number of days scheduled at Thistledown in each of the past two years. A provision of the contract also mandates that the number of races run at the track this year must exceed the number run there in 2009.

The contract also sets the purse structure through May 31 at Thistledown with the minimum purse set at $5,400. In the interest of preserving as much purse money for overnight events at Thistledown as possible both parties have also agreed to a reduction of the purse of the Grade 3 Ohio Derby to $100,000 this year, down from $150,000 in 2009 and $300,000 in 2008.

While the November 3 passage of state Issue 3 is a potential blow to Ohio’s racing industry, the Ohio HBPA views it as our best opportunity to date to bring video lottery terminals to Ohio’s tracks.

Issue 3, which passed by a margin of 53% to 47%, authorizes the placement of full scale casinos in pre-specified downtown locations in Cincinnati, Columbus, Cleveland and Toledo. Obviously, full scale casinos placed within 15-miles of each of our tracks have the potential to greatly damage, if not end thoroughbred racing in the state if the tracks are not given similar expanded gaming opportunities in order to compete for customers.

On the positive side, now that the placement of casinos in Ohio is imminent, the potential to bring expanded gaming to Ohio’s racetracks in the form of video lottery terminals has never been better.

The Ohio HBPA will continue to focus its efforts on lobbying Ohio legislators to level the playing field for Ohio’s horsemen and racetracks. Given that construction of the casinos authorized by the passage of Issue 3 is not expected to be completed until 2012 there is still time to save the state’s racing industry.

Penn National Gaming to Acquire Beulah Park in Ohio - Transaction Further Expands Penn National's Racing Operations

WYOMISSING, Pa. & GROVE CITY, Ohio, Mar 08, 2010 (BUSINESS WIRE) -- Penn National Gaming, Inc. (PENN: Nasdaq) announced today that it has entered into a definitive agreement to purchase Beulah Park in Grove City, Ohio, located approximately seven miles south of Columbus, Ohio, from Heartland Jockey Club Ltd. The purchase of Beulah Park is expected to close in the second quarter of 2010 and is subject to a 45 day due diligence period and the approval of the Ohio State Racing Commission.

Peter M. Carlino, Chief Executive Officer of Penn National commented, "We are excited to carry on the rich 86-year racing heritage of Beulah Park and further expand our nationwide portfolio of racing facilities which will now include seven pari-mutuel facilities, the most of any operator in the country. With ownership of Raceway Park in Toledo, this transaction will provide us another opportunity to benefit from the possible legalization of VLTs at the state's seven racetracks. We look forward to working with the local horsemen and the Ohio State Racing Commission to continue delivering both racing entertainment and a wide variety of summer attractions at Beulah Park."

Beulah Park, opened in 1923 as Ohio's first thoroughbred racing facility, includes approximately 210 acres just outside Columbus' I-270 Beltway and features live thoroughbred racing from October to May - about 122 days each season - as well as simulcast wagering from a number of nationwide tracks. The Park includes a grandstand, outdoor paddock, a clubhouse lounge and four dining options. During the summer, Beulah Park also hosts live events such as concerts and fairs.