Table Game Legislation Dies in W. Virginia
May 10, 2005

As recently reported by the Associated Press, the West Virginia legislation which would have allowed casino style gambling at its four racetracks is dead. The legislation permitted citizens in the four counties (Hancock, Jefferson, Kanawha and Ohio) which have racetracks to vote on permitting table games at the racetracks. The Senate introduced this legislation late in the legislative session, which is only sixty days long. Despite the late introduction, the bill passed the Senate and was held up in the House of Delegates. House Speaker Bob Kiss said that there were other major bills for members to focus on, without spending time and energy on the gambling legislation. Kiss has suggested having a special legislative session to consider the gambling legislation.

The four West Virginia racetracks already operate video lottery machines, which generated $371 million for the state last year. Pennsylvania recently legalized slot machines, and West Virginia state lottery officials project that the competition will result in a $95 million decline in revenue this year. This will be the first decline in the lottery’s twenty year history.

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Attorney General Petro Gives New Definition of ‘Festival’
May 10, 2005

Attorney General Jim Petro recently released a new policy regarding what constitutes a festival for charity organizations. Under the new definition, a festival must have at least two non-gambling activities to allow casino style gambling at the festival. Currently, a festival setting is the only forum where casino style gambling is legal in Ohio. The non-gambling activities can be musical or dance performances, cultural exhibitions, arts and crafts, competitions or religious celebrations. Petro’s office commented that essentially the regulation of this definition of festival is left to local law enforcement. Various charitable organizations are scrambling for activities to have at their summer events to comply with these new guidelines.

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Indian Tribe Makes Deals with Ohio Cities to Build Casinos
May 10, 2005

Even though casino gambling in Ohio is far from a sure thing, the Eastern Shawnee of Oklahoma Indian tribe is gearing up for a strong presence in Ohio if and when it comes. The Akron Beacon Journal and The Cincinnati Enquirer has reported that the Eastern Shawnee has already entered into intergovernmental agreements with at least three Ohio cities ( Monroe, Botkins, and Lorain) to build casinos. The agreements would allow the tribe to purchase and build huge gambling and entertainment complexes in exchange for giving a percentage of the casino revenues to local governments.

According to the Associated Press, Lorain Mayor Craig Foltin has entered into an agreement giving the Eastern Shawnee a two-year option to purchase six acres of lakefront property for $6 million in Lorain. In addition, the tribe will pay $285,000 in options over two years.

According to the Middletown Journal and the Cincinnati Inquirer, the City of Monroe has agreed to allow the Eastern Shawnee to purchase 150 acres of land in the 800-acre Corridor 75 Park, southeast of Interstate 75 and Ohio 63 so that it can build a $750 million gaming and entertainment complex. The agreement allows Monroe to receive a percentage of the casino’s revenue, which is estimated to be between $7.1 and 9.5 million. The casino could also generate approximately $800,000 per year in earning taxes. Supporters believe that once the facility is built, Monroe stands to see as much as $50 million in revenue.

City officials acknowledge that while gambling is a controversial issue, the agreements are needed in order to pay for the costs incurred if a casino is built. Without the agreements, if the casino were granted approval, the city could face serious financial problems. In addition to losing an opportunity to receive a percentage of the casino’s revenues, they would lose the assurance that the costs associated with additional improvements necessary to handle a local casino are covered. This would include road improvements to cover casino traffic, fire and rescue services, and additional law enforcement.

The Ohio Roundtable public policy group has asked Attorney General Jim Petro to review the agreements to determine whether they pass constitutional muster. Petro, an outspoken opponent of bringing casinos to Ohio has been reported by the Middletown Journal to state that the agreements may be constitutional if “they are structured as being effective only if Ohio permits casino-style gambling.” Petro is withholding his opinion until after he obtains and reviews the agreements. He has also been quoted as stating that notwithstanding the legality of the agreements, he is “confident that we will not see casino gambling in Ohio for the foreseeable future.”

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