Ohio Supremes: Slots Issue Should Go To Ballot

In a stunning setback for Ohio Gov. Ted Strickland's proposed VLT (video lottery terminal) plan, the Ohio Supreme Court today voted 6-1 that any plan to authorize slot machines at Ohio race tracks requires a statewide referendum (ruling available in full here).

The Governor, who had attempted to implement the plan via executive order, had argued that the slot machine gambling fell within the jurisdiction of the Ohio Lottery. The conservative-backed LetOhioVote.org, however, successfully argued that the Governor and Legislature overstepped their authority in authorizing the plan.

Prior to today's ruling, the Governor had planned to have slots up and running by May, and the Legislature was relying on revenue from the machines to help balance the state's tottering budget by producing a projected $933 million in licensing fees and gambling revenues.

Today's ruling delays possible implementation of the slots plan until a referendum has been had, and orders Secretary of State Jennifer Brunner to accept and process petitions on the matter forthwith. LetOhioVote.org now must gather signatures to repeal the slots referendum (which appears automatically via provisions in the state constitution).

The issue will likely see the ballot in November 2010, but could appear as early as the May 2010 primary ballot.

As Justice Pfeifer's dissent from the majority opinion eloquently states, "The governor and the General Assembly have sown the wind, and now with a budget thrown into complete dissarray, we shall all reap the whirlwind." For the state, this delay means yet more lost revenues during a period when the state can ill afford shortfalls, and may signal additional budget cuts (and corresponding reductions in services).

For Governor Strickland, it means the appearance of a gambling measure (historically unpopular with Ohio voters) in two consecutive elections. This slots measure in particular will prove problematic, as it carries his express and loud backing and will appear on the same ballot as his own re-election bid. Expect Republican candidate John Kasich and other Republicans to harp on the Governor's former opposition to gambling measures, the potential ill effects on our society of gambling (including addiction and the destruction of the family), and the regionally specific problems gambling has caused in Strickland's native southeast Ohio.

A win today wasn't a must for the Governor, but this loss is a serious, serious blow. Today's decision provides Kasich with an opening to attack Strickland on a number of fronts: as a flip-flopper, as fiscally irresponsible, and most incredibly, it allows Kasich (he of the Lehman Bros. pedigree) to attack Strickland as a proponent of a regressive tax on the poor that also degrades the family. Shocking.

To put it another way (and extend the gambling metaphor), the Court today dealt Kasich a full house in the opening rounds of Ohio's highest stakes Hold 'Em tournament. Big win, and gives Kasich a big pile of chips for the rest of the game. While it's not a death blow to Strickland's chances per se, he'll need a good run of luck (likely in the form of improved jobs numbers or other economic indicators) to keep his seat at the head of the table.