The new owners will ask the state for a 10-year VLT license, which costs $50 million, and invest $175 million in the new facility and video lottery terminals.
The sale is expected to bring $60 million to the Carlo and Nixon families, which currently own the assets. And the agreement calls for another $10 million payment to the sellers if the VLT facility performs as expected.
The Ohio Lottery Commission and the State Racing Commission need to approve the deal.
Delaware North Companies and Churchill Downs said they aim to begin construction of the new facility this year and open it in 2013.
Lebanon Raceway currently operates at the Warren County Fairgrounds. Live harness racing will continue there until the new facility is built.
The Carlo and Nixon families have owned the Lebanon Raceway since 1951. Both families will remain as consultants to the new operators.
C. Keith Nixon, Jr., vice president of Miami Valley Trotting, said in a written statement: “After all these years of having the track in our families, we wanted to be certain the new owners would have the resources and the experience to operate a successful facility. We’re confident that we are placing our families’ legacy in good hands with both a global hospitality company, Delaware North Companies, and the legendary Churchill Downs Racetrack.”
The new owners are looking at possible new sites for the racetrack, which they say will bring $24 million a year to the area.
Delaware North Companies Gaming & Entertainment and Churchill Downs will each own a 50 percent interest in the new venture.
How the Lebanon deal would impact Penn National’s plans move a harness racing track to Dayton was not clear Thursday night.
Bob Tenebaum, spokesman for the gaming company, would not comment on the Lebanon deal.
Penn wants to build a $200 million racino in north Dayton at the site of a former Delphi plant at Needmore and Wagner Ford roads.
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