Taft Signs HB 325
July 27, 2004

Governor Taft signed House Bill 325 on July 1, 2004, which takes effect on September 29, 2004. HB 325 provides relief to veterans and fraternal organizations in the form of increased profits from gaming revenues.

For more information, please see the June 18, 2004 posting "Bill Calls For Increased Gaming Profits."

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Pennsylvania Legalizes Slots
July 16, 2004

The Pennsylvania legislature recently passed an act which would allow as many as 61,000 slot machines to operate in the state, making Pennsylvania second in the nation only to Nevada in the number of slot machines in operation. The slots would be installed in the state's seven racetracks, two resorts and five stand-alone gaming venues. The legislation is expected to finance approximately $1 billion each year in property taxes. Gamblers who currently have no closer casino than those in Detroit will soon have to travel no more than an hour to Erie, PA, the future site of one of the newly-legalized slot casinos. When the first slot machine opens in Pennsylvania, Ohio and Kentucky will be the only states in the region which offer their citizens no gaming options.

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Cincinnati Mayor Proposes Riverfront Gaming
July 16, 2004

Charlie Luken, the mayor of Cincinnati, has recently begun advocating riverfront gaming. Under Luken's proposal, the state would legalize gaming in Ohio's major cities, but would include a "home rule" provision, by which each city would be permitted to decide for itself whether or not to allow casino gaming. Additionally, Luken plans to return the city's proceeds from the casino to residents in the form of property tax cuts. According to Luken, his interests are not in generating new revenues for the city, but in urban development; a riverboat casino would create hundreds of new jobs and would bring people to the downtown area. Luken hopes that the addition of a riverboat casino would not only compliment previous downtown development projects, but would also facilitate future projects. State Representative Tyrone Yates has since introduced a proposal into the Ohio House of Representatives that would authorize the General Assembly to license and regulate one riverboat gaming franchise in each of Cincinnati and Cleveland. With the General Assembly recessed for the summer months, it is unlikely that any action will be taken on Yates' bill, but Yates is hopeful that the bill will at least generate attention and prompt hearings into the matter. Yates' bill will have to compete with a similar bill by State Representative William Seitz, which would allow video lottery terminals at the state's seven race tracks.

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Ohio Lottery Profits Exceed Expectations
July 16, 2004

The Ohio Lottery has announced that its profits for the previous fiscal year have exceeded projections by $10 million. The Lottery will transfer $648 million to the Department of Education, up from an estimated $638 million. By law, any surpluses are deposited into a special account which provides revenues to the Department of Education in years when the Lottery contributions fall below estimates. Lottery officials attribute the increase in profits to better advertising and running more instant games for shorter durations – a technique which officials say helps keep the public interested in the games. Lottery profits are expected to constitute approximately 9% of the Department of Education's $7.1 billion annual budget.

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Three Convicted in Illegal Gambling Operation
July 2, 2004

This past June, three defendants from the Akron area were sentenced after being convicted for their roles in an illegal instant bingo operation last week. The prosecution maintains that the defendants, Brett Simons, Vicki Losh, and Chad Bush were allegedly using dummy charities as fronts for what was really an illegal gambling business. Despite their continuing assertions that they helped a number of people through their charity and that they did not believe they were violating any laws, the defendants were each sentenced between 30 and 37 months in prison and assessed fines ranging from $500.00 to $50,000.00 each. The fine of $50,000.00 was imposed on one defendant after records indicated that he held over $645,000.00 in assets.

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Tribe Scouting Other Potential Locations
July 2, 2004

The decision by the Eastern Shawnee Tribe of Oklahoma whether or not to buy 83 acres of land in the village of Botkins, Ohio, really depends on whether the Tribe believes the village is ready for casino gaming. The Federal Government will not put the Tribe's land into trust (necessary before the Tribe could open a gaming establishment) unless it believes the plan is compatible with the interests of the community. While residents in Botkins were uneasy with the plan at first, and some still are, they realize that small-town economies need major economic development to survive – development that a casino can provide. If the plan goes forward, the gambling is sure to bring lots of extra business to the town, not to mention the percentage of the casino profits that the village would receive. The Eastern Shawnee Tribe is beginning to search for other Ohio communities that would be receptive to gaming.

Indian casinos stand a better chance of being established in Ohio than open gaming or racetrack casinos because statewide opinion is less important. No resolutions need to be passed through the legislature and voters need not approve any constitutional amendments. All that is really needed is the support of the Federal Government and the community in which the casino will be located.

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