Toledo casino likely won't open on schedule

Casino Control Commission Chairwoman Jo Ann Davidson COLUMBUS DISPATCH/FRED SQUILLANTE Enlarge

Hollywood Casino Toledo's planned early April opening could be delayed about eight weeks as state regulators complete a licensing investigation. The late March opening of Horseshoe Casino Cleveland also might be delayed by two months.

The Casino Control Commission Wednesday was updated on progress with the casinos' licensing process by its consultant, Spectrum Gaming Group, which recommended postponing the opening dates operators had planned for both Las Vegas-style gambling halls.

Jo Ann Davidson, commission chairman, said it typically takes nine to 18 months to license casino operators and vendors. But Ohio regulators were trying to expedite the process to four to five months, she said.

"That depended on everything going right on schedule," she said. "We've had some delays in some of the filings."

With Hollywood Casino Toledo, for example, board members have not submitted background investigations for a financial backer of Penn National Gaming Inc. as required by law, Ms. Davidson said. The state warned Penn National last month the lack of that information could cause a delay with the $300 million East Toledo casino's opening.

An agreement was reached where information on some directors employed by or stakeholders in Fortress Investment Group will be filed by the commission's Jan. 18 meeting, and filings for remaining inside directors will be available within a couple of weeks afterward, Ms. Davidson said. Discussions, she said, are ongoing for outside directors, or people not employed by or holding stakes in Fortress, a limited liability firm that serves as Penn's holding company.

Other filings from operators also were not turned in on time for the expedited schedule, making the due-diligence process difficult to complete in a few months, said Peter Silverman, a commission member and partner with Shumaker, Loop & Kendrick in Toledo.

Ms. Davidson declined to estimate how long the delay for the East Toledo and Cleveland casinos' openings will take, saying discussions with Penn National and the operator for Horseshoe Casino Cleveland, Rock Ohio Caesars, will continue. She and others with the commission plan to visit Hollywood Casino Toledo later this month.

Penn National spokesman Bob Tenenbaum said the company had no immediate comment. "We need some time to process the information we heard this morning," Mr. Tenenbaum said.

Unfortunately, any delay will push back job opportunities for local residents at the casino under construction on the Maumee River next to Rossford, Ed Ciecka, Rossford administrator, said.

Penn National has said it will hire about 1,200 employees, including 500 dealers who will make $16 to $22 an hour with tips. Thousands have applied for jobs, and hiring is under way.

"At this point in time, we'd like to see as much work out there as possible," Mr. Ciecka said.

Rossford is in line to get $200,000 from Penn National when the casino opens to cover a potential increase in demand for first-responder service from the Wood County city. That donation is sure to be delayed, and Rossford City Council has not yet determined specifically what will be done with the money.

Hollywood Casino Toledo's planned April opening date was never approved by the state, Mr. Silverman said. "They don't have a license," he said. "They're not approved to open."

A report is expected to be ready about Hollywood Casino Toledo by late March or early April for the commission, which will have to review the material, hold public hearings, and make a decision before giving Penn National the nod, he said.

Regulators want the casinos to successfully open too, but must ensure they are following the letter of the law, Ms. Davidson said.

"We're talking about weeks here -- we're not talking about a significant amount of time," she said. "Our goal is to get the casinos up and open as quick as we can."

Contact Julie M. McKinnon at: jmckinnon@theblade.com or 419-724-6087.