A $175 million racino located near Interstate 75 in Warren County cleared an important hurdle Thursday, and supporters are now talking about a possible construction start in the first quarter of 2013.

“If everything works out on the timetable now, we will have some of these construction jobs starting in 90 days,” said John Carlo, whose family has run horse races in Warren County for more than half a century. “And nothing is going to help the Miami Valley more than more jobs.”

The Ohio State Racing Commission voted 5-0 to approve a horse racing permit for Miami Valley Gaming & Racing, LLC. Although that marked a key step in the process, the project still needs to win other approvals from the state.

The decision “means we are one step closer to creating 700 permanent jobs, bringing in $24 million a year to the southwest Ohio economy and opening a new entertainment destination that the local communities can be proud of,” said Ron Sultemeier, new property planning and projects director for Delaware North Companies Gaming & Entertainment.

Delaware North and Churchill Downs formed Miami Valley Gaming to purchase the racing business from the Lebanon Trotting Club Inc. and Miami Valley Trotting Inc., which are controlled by the Nixon and Carlo families.

The Ohio Lottery Commission expects to issue Miami Valley Gaming & Racing a temporary license for video lottery terminals soon, said Danielle Frizzi-Babb, a lottery spokeswoman. There is a $50 million VLT license fee, broken into three payments with the first $10 million due when the temporary license is issued, she said.

Racing Commission Chairman Bob Schmitz said Miami Valley Gaming’s application for relocation will likely be addressed in December or January.

The project calls for building a new 5/8ths-mile harness racetrack and a 186,000-square-foot building on 120 acres at Ohio 63 and Union Road off I-75. The facility will open with 1,800 VLTs and live racing 75 days a year, said Shawn Bailey, senior vice president for business development for Churchill Downs. It is expected to create 1,000 construction jobs and about 700 permanent jobs, including 450 full-time posts, according to Miami Valley Gaming.

Two racing commissioners — William Koester and B.J. Roach — encouraged Miami Valley Gaming to consider buying more property for the project and installing a 7/8ths-mile track. Bailey expressed concerns about changing the plans, saying it would delay the project and force Miami Valley to once again win local zoning and planning approvals.

The Lebanon track is one of two racinos being pushed in the Dayton area. Penn National Gaming Inc. also plans to build a $125 million harness racing track on 125 acres at Wagner Ford and Needmore roads in Dayton. Plans call for 1,500 VLTs at that facility.

Penn National still needs to win approval to relocate Raceway Park from Toledo to Dayton and secure a VLT license from the Lottery Commission.

The proposed Dayton racino is expected to create 1,000 jobs at the racino or related businesses and 1,000 construction jobs throughout the life of the project. The development plans show a 5/8-mile harness racetrack, a gaming building with a simulcast theater for on- and off-track wagering, self-bet/full bet mutual service stations and theater and box seating.

Scioto Downs in Columbus was the first track to install and start using VLTs in Ohio.

Bailey, of Churchill Downs, said he expects Scioto Downs, Dayton Raceway and the racetrack in Lebanon to discuss working out a racing circuit so that the three tracks do not run live harness races on the same dates.