Ohio Gaming Law: April 2005 News

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Opponents Willing to Fight Expansion of Gambling in Ohio
April 20, 2005

The Akron Beacon Journal recently reported that as gambling proponents were meeting to discuss strategy to create casinos in Ohio, gambling opponents were also mobilizing. David Zanotti, President of the Ohio Roundtable, leads a coalition against casinos, and is vowing to again convince voters that casinos are not the answers to the state’s economic problems. In 1990 and 1996 Zanotti led campaigns to oppose statewide ballot issues which would have allowed casino gambling in Ohio.

Zanotti is joined in opposing casino gambling by U.S. Senator George Voinovich and state Attorney General Jim Petro. Voinovich opposed casino gambling while he served as Governor of Ohio, and intends to continue now in his role of U.S. Senator. Voinovich stated that he is on a crusade to save families from the violent crimes, bankruptcy and embezzlement which are higher in casino areas, in addition to the higher rates of divorce and suicide among addicted gamblers. Attorney General Petro, who is running for Governor in 2006, has said that Indian casinos are not coming to Ohio anytime soon, and may never be approved in this state.

Proponents of Expanding Gambling in Ohio Meet in Columbus
April 20, 2005

Gambling proponents from across the state recently met for the first ever state gambling summit in Columbus. Kegler Brown attorneys attended the meeting. The meeting was a three hour, closed door session, which included proponents from all aspects of the gambling industry. There were approximately sixty participants in the meeting, including representatives of municipalities, horse tracks, Indian tribes, and vending machines. In addition there were members of the Ohio General Assembly in attendance. Representative Bill Seitz (R-Cincinnati) organized the meeting, and was joined by fellow legislators Senator Kevin Coughlin ( R-Cuyahoga Falls); Senate Minority Leader, Senator CJ Prentiss (D-Cleveland); and House Minority Leader, Representative Chris Redfern ( D-Catawba Island).

The attendees at the summit vowed to stick together as proponents of expanding gambling in Ohio. The next step is to conduct opinion polls of Ohio voters regarding casino gambling in Ohio. Participants in the gaming summit agreed to contribute towards the poll, which it is estimated will cost $80,000 to $100,000. Senator Coughlin commented that it is tiring to watch money funnel out of Ohio to bordering states which have casino gambling. Ohioans are gambling, yet Ohio’s not getting any of the profit, Coughlin commented. Cleveland Mayor Jane Campbell, who was in attendance, is advocating for a home rule approach, where the citizens in each community could decide if casino gambling is right for them. Representative Seitz commented that he would like to see a plan put before Ohio voters which gives the greatest chance for economic development, and which keeps the money from flowing out of Ohio to neighboring states.

New Video Amusement Games
April 20, 2005

According to the March 26, 2005 edition of the Plain Dealer, Ohioans are taking their chance on new video amusement games that blend skill and chance. However, legislators and game manufacturers can’t agree on whether rules governing games of chance or skill should apply. Maple heights police ran into the debate when they raided a facility recently and confiscated 27 video gambling machines and $20,000 in cash. No state agency has ruled on whether the games are legal so establishment owners take chances when they set the machines up. Maple Heights Detective Jeff Cook notes that some agencies do not have the time and expertise to deal with gambling machines. According to Cook, “Everybody is on their own as far as law enforcement is concerned.”

Parma Heights City Councilman Diverts Money from Charity Events
April 20, 2005

According to the April 1, 2005 edition of the Plain Dealer, Attorney General Jim Petro claims that Parma Heights City Councilman Joseph McIntyre and his wife Edwina illegally diverted more than $1,000,000 from charitable bingo events to themselves and others. In a lawsuit filed by Petro, the couple allegedly funneled money from their charity to counsel drug and alcohol abusers, to their personal bank accounts, to their for-profit company and to a land deal for their own benefit. Petro has asked the Cuyahoga County Common Pleas Court to make the McIntyres repay all diverted monies to the charity. The lawsuit also alleges that some of the money was used to pay bingo workers. “This is a claim of technical wrongdoing of which the McIntyres were not aware,” said Michael Cassidy, a lawyer for the couple.

Attorney General Discusses Hurdles to Casinos in Ohio
April 5, 2005

As reported in the Cleveland Plain Dealer, Attorney General Petro recently held a news conference to discuss the hurdles which the American Indian Tribes will have to overcome to bring gambling casinos to Ohio. The Eastern Shawnee Tribe of Oklahoma has entered into intergovernmental agreements with several Ohio communities to purchase land and establish casino complexes. The Attorney General said there are two tracks which Tribes can follow to open casinos, both of which present obstacles.

The first option Tribes can do is file a land claim for land wrongfully taken. Attorney General Petro stated that this could take up to twenty years, and produce costly legal fees. The second option is for Tribes to put land in trust with the approval of the U.S. Department of Interior. This will also require the Tribe to strike an agreement with the governor and the state legislature. With this second option, a statewide vote is also required to amend the Ohio Constitution to allow casinos. Governor Taft continues to oppose expanding casino gambling. In addition, the three Republicans running to replace Taft in 2006 also oppose casino gambling in Ohio.

Cleveland Mayor Proposes Statewide Initiatives
April 5, 2005

According to the Associated Press, Cleveland's Mayor Campbell has proposed two statewide initiatives which would allow casinos in large population centers in Ohio and slot machines in Ohio's racetracks. Campbell's political advisor, Gerry Austin, has said that both initiatives are awaiting approval by Attorney General Petro's office. If the initiatives are certified, Austin has said that he will work on getting the 330,000 valid signatures for this coming November's election.

The first initiative will amend the state's constitution to allow cities with more than 50,000 people, and counties with entertainment facilities which attract more than 1 million tourists a year, to vote on expanding gambling to include casinos. The second initiative will permit slot machines at Ohio's race tracks if the community within which the track is located votes to approve the slot machines.

Eastern Shawnee Tribe Announce Plans for Gaming Resort in Lordstown
April 5, 2005

According to a recent article in the Akron Beacon Journal, the Eastern Shawnee American Indian tribe has announced plans to build a casino resort in Lordstown, Ohio, on State Route 45. The land is located on the Mahoning/Trumbull county line and is near the General Motors plant in Lordstown. The Tribe's plans include a $100 million to $300 million complex which will include a casino, hotels, restaurants, shops and other entertainment. This resort will be located approximately fifty miles from downtown Akron.

Local officials have been supportive of the casino project, as it will bring jobs and local revenue from the gambling proceeds. The casino complex has an estimated 2,500 to 3,000 jobs with salaries ranging from $30,000 to $40,000 per year, with benefits. The annual income tax revenue for Lordstown is estimated at $425,000. In addition, the Tribe has offered the community an agreement between the Tribe, the county, the village and Lordstown schools. The agreement consists of the Tribe paying the community two percent of the net electronic gambling revenue, primarily from slots and video poker. This is estimated to be approximately $4 to $5 million annually for Trumbull County. The local agreement establishes a committee between the officials from the Tribe, county, village and schools to decide how these dollars will be spent.

Currently casino style gambling is prohibited in Ohio. Governor Taft continues to remain opposed to expanding gambling in Ohio, as he says that the revenues are unreliable, in addition to causing social problems. State Representative Sandra Stabile Harwood (D-Niles), whose district the Lordstown complex would be located, is positive about the plan and is excited of the prospect of job creation and development. Currently Ohio is one of only fifteen states that have not allowed casino gambling.

Legislation to Legalize Table Games Introduced in West Virginia
April 5, 2005

The Charleston Gazette recently reported that legislation has been introduced in West Virginia to legalize table games at their four racetracks. The legislation allows voters in Kanawha, Ohio, Hancock and Jefferson counties to approve or reject table games. Charleston Mayor Danny Jones estimates that if approved, each county will gain 500 well paying jobs with benefits. The proposed legislation gives 12 percent of the table game revenues to the state and 88 percent to the racetracks. Of the 12 percent of the state's portion of the gambling proceeds the funds will be appropriated between the general revenue fund, the counties and municipalities where the race tracks are located, prizes for the owners of the horses and dogs, and the state's tourism promotion fund. Currently the state's racetracks employ approximately 4,600 employees and last year produced $323 million for state government.