Ohio Gaming Law: June 2005 News

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Campbell Proposes Local Decisions on Casinos
June 28, 2005

Cleveland Mayor Jane Campbell has proposed a plan that would authorize certain Ohio cities to decide for themselves whether or not to allow casino gambling. According to the Cleveland Plain Dealer, the plan would allow three types of locations to approve casino gambling: first, those cities with a home-rule charter and with a population of more than 50,000; second, those cities with a home-rule charter and which are county seats, but which do not have at least 50,000 residents; and finally, those counties which have an entertainment attraction that draws at least one million visitors annually. There are fifty cities in Ohio which fall into one of these three categories. Campbell's political advisor, Jerry Austin, has said that this large number does not mean that there will be a proliferation of casinos. Instead, casinos will only open where they are supported by the market and by local politics. Nevertheless, the fact that more cities are eligible may mean that more citizens have an incentive to sign a petition to get the home-rule plan on the November ballot.

Professor I. Nelson Rose of Whittier College warns that the home-rule program may create problems for the state further down the road. Once cities get used to the budget increases from casinos, they will be too dependent on the revenue to regulate the industry with a firm hand. says Rose. He predicts that the casinos may exert such a powerful influence on a city that the entire structure of city management could change.

New Poll Shows Ohioans Favor Casino Gaming
June 28, 2005

A poll recently commissioned by the Cleveland Plain Dealer indicated that fifty-five percent of Ohioans favor Cleveland Mayor Jane Campbell's plan to allow Ohio cities decide for themselves if they want to allow casino gambling. According to an Associated Press article, fifty-two percent of those likely to vote on the issue would favor allowing casino's in the state, while only forty-one percent of likely voters would oppose casino gambling. Of those who approve of expanded gaming, eighty percent believe that casinos would boost development, increase tax revenue and keep gambling dollars in Ohio, rather than losing them to neighboring states. Of those opposed to gambling, almost sixty percent said that casinos would increase violence, prostitution, and compulsive gambling problems. When those surveyed were told that casino revenue could be used to reduce taxes or supplement education and local communities, support for casino gambling increased by three percent.

Casino Gambling Harms State Lottery and Charitable Bingo Revenues
June 28, 2005

A new study by the Akron Beacon Journal indicates that casino gambling in neighboring states has contributed to a decrease in profits for the Ohio state lottery, as well as charitable organizations that use gambling as a source of income. Since casinos opened in other states five years ago, lottery sales have fallen as much as sixteen percent in those counties within thirty minutes of casinos. Although data is not available for charitable bingo for 1996-2000 and from 2003-2005, an analysis of the data from 2000-2002 shows that bingo revenues in those counties closest to casinos was down up to eleven percent, and profits are down as much as twenty percent. This information was confirmed by Columbus attorney Michael Zatezalo, a partner at Kegler, Brown, Hill & Ritter, who said that bingo revenues can typically fall as much as twenty to thirty percent when casinos are introduced to an area. The Ohio Lottery Commission is conducting a study of the potential impact of casinos on its revenues in response to questions raised during the budget process.

Attorney General Rejects Ottawa's Claims
June 28, 2005

Ohio Attorney General Jim Petro has rejected the Ottawa Tribe of Oklahoma's claims to North Bass Island. However, according to an Associated Press article, the Tribe has indicated that they still intend to assert fishing rights in Lake Erie. Petro's office rejected the Tribe's allegations that they had historically occupied, used or controlled the land.

Funding for Indian Casino Efforts Unknown
June 20, 2005

According to a recent article in the Dayton Daily News, the effort to get Indian casinos in Ohio has been funded by unknown sources. The Eastern Shawnee Tribe of Oklahoma reported that it has not spent any of its own money in the lobbying effort to expand gaming in Ohio. Tom Schnippel, president of National Capital I and general contractor from Botkins, commented that forty-five unidentified investors have contributed between $10,000 and $50,000 to the cause. Schnippel described these investors as being primarily from west and central Ohio, and average people – grandmas, firefighters and school teachers. Senator George Voinovich (R-Ohio) commented that he is bothered by the investor's secrecy. Voinovich explained how citizens of Ohio have twice defeated expanding gambling on the ballot, and this happened in the full light of day. The secrecy of the investors is not allowing citizens to see who the supporters are of the casino movement. Terry Casey, National Capital I lobbyist, stated that the Shawnee's are not releasing the names of its investors because of the competition from other Indian tribes to open casinos in Ohio.

The Eastern Shawnee Chief, Charles Enyart, commented that Ohioans should not feel leery about the legitimacy of the funding. The Eastern Shawnee tribe has negotiated agreements with four Ohio municipalities for casino gambling sites – Botkins, Monroe, Lorain and Lordstown. However, there are considerable legislative and legal hurdles that the tribe must overcome before the casinos can become a reality. There have been twenty-eight states that have established Indian gambling sites, however no tribe has done it by crossing state lines.

Petro Approves Land Agreements
June 20, 2005

According to the Toledo Blade, Attorney General Jim Petro said that accords which Native American Indian tribes have reached with Ohio cities, such as Lorain, are "probably constitutional." Petro continued to explain, in a letter written to the American Policy Roundtable, that the agreements "will never go into effect until, for example, the tribe is successful in obtaining 'Indian Land' status for the land they have optioned or purchased … or until Class III casino gambling becomes legal in Ohio." However, Petro indicated that it is his belief that the casinos would not be successful for decades and even then, not before having spent "many millions of dollars in legal fees and costs."

Casino Growth in Detroit
June 17, 2005

Casinos are slowly, but surely impacting downtown Detroit for the better. According to the Plain Dealer, the casinos in Detroit (MGM Grand, Greektown and Motor City) are now the city's sixth-largest employer, providing 7,700 jobs, as well as taxes and fees of over $150 million annually. Officials at the Detroit Metro Convention and Visitors Bureau believe that gambling helps attract conventions to the area, and may have played an important role in bringing next-year's Superbowl to the city.

Even more growth is expected. The casinos are currently located in old warehouses and factories, and have no attached hotels. This is due to a lawsuit brought by the Lac Vieux Desert Band of Chippewa, which alleged illegal consideration was given to those companies that helped legalize gaming in the state when the state issued gaming licenses. As part of the lawsuit, the Tribe has secured a restraining order, which prohibits the casinos from constructing permanent facilities. If the injunction is lifted, the casinos plan to build new structures with hotels, restaurants, and shopping centers.