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| Parties Ask for Extension in Land Claim Suit The parties to the Eastern Shawnee land claim suit have asked the Federal District Court for more time in which to discuss a possible settlement, according to the Lima News. The extension asks for the Court's permission to extend a deadline by which the litigants were to provide a preliminary report on the progress of the case. If the extension is granted, the parties will have until January 31st to submit the report. Gaming Interests Undeterred Despite crushing defeat at the polls earlier this month, gaming proponents are refusing to give up on their push to bring legalized casinos to Ohio. An article in the Columbus Dispatch indicates that supporters spent over $20 million on the campaign. Columbus-based Beulah Park owner Charles Ruma stated: "I think we'll be back with an effort; I don't know what it will look like but it will be much different." The article indicates that Ohioans can expect a re-tooled gaming proposal that would focus on Ohio's major metropolitan areas. Issue 3 would have allowed full-scale casino gaming in Cleveland, but excluded all of Ohio's other cities. Consequently, Issue 3 was a clear winner in Cuyahoga County, but didn't fare well in other urban counties. A new proposal would likely have an option to allow casino gaming in Ohio's other population centers. Native American Gaming is still "chugging ahead," according to Terry Casey, a lobbyist for the Eastern Shawnee Tribe of Oklahoma. The Eastern Shawnee Tribe is one of two Native American groups seeking land rights in Ohio - a precursor to introduction of legal gaming under the Indian Gaming Regulator Act. The Ottawa are also seeking land on North Bass Island in Lake Erie. Though the Ottawa claim that they want to open a fishery on their land, the article suggests that they may be motivated to introduce gaming, as well. Finally, Ohioans may see an expansion of games offered by the Ohio Lottery. In interviews with the Dispatch, State Representative Bill Seitz suggested that the Lottery may be able to expand into poker tournaments and even full-scale casino gaming. As gaming supporters gear up for their next effort, opponents are positioning themselves to thwart any new effort to introduce gaming in Ohio. David Zanotti of the Vote No Casinos Committee stated that he is filing papers to keep his committee operating indefinitely, and the committee will have $100,000 on hand to counter any casino initiative. Company Charged for Illegal Imports of Gaming Devices Ohio Attorney General Jim Petro recently filed suit against a Wisconsin company, F.A.C.E. Trading, Inc., for allegedly selling pull-tab bingo tickets in Ohio without a license, and selling pull-tab bingo tickets to Ohio businesses and charities without licenses to operate the games. Petro asserted that the "ad-tabs," pull-tab bingo cards with advertisements printed on one side, constituted gambling devices under Ohio law. The suit seeks to enjoin the company from importing additional cards into the state, and to recover proceeds from previous sales of the tickets in Ohio. Any monetary recovery would be disbursed to Ohio charities, according to the article. Without Slots, Racetracks May Merge An article in the Cleveland Plain Dealer recently reported that the failure of Ohio's Issue 3 may affect merger plans of Ohio racetracks. Without slots to keep them afloat, Northfield Park and Thistledown are currently in merger negotiations, though Brock Milstein, Chairman of Northfield Park, notes that the discussions are informal. "Skill" Game Importation Prohibited A Franklin County judge issued an injunction prohibiting Ohio Skill Games from importing any addition "tic-tac-fruit" machines into the state. An article in the Dayton Daily News suggests that the injunction will likely remain in place until the resolution of a lawsuit involving the state and several businesses that had previously installed the machines. A recent opinion by Ohio Attorney General Jim Petro indicates that the games are actually prohibited under Ohio law as gambling devices. Ohio Skill games disagrees, and is currently fighting to have the machines declared legal. The court also issued an order that prohibits the Ohio Department of Public Safety, which encompasses the Ohio Division of Liquor Control, from confiscating any additional machines until the lawsuit is decided. Internet Gambling Case Settled Federal prosecutors reached a settlement with U.K. gambling site BetOnSports, PLC. The settlement requires BetOnSports to refrain from accepting wagers placed from the United States. The United States Attorney would not comment on the settlement, as criminal charges filed against CEO David Carruthers and other BetOnSports agents and employees remain unaffected by the agreement. Internet Gambling Ban Passes The Cleveland Plain Dealer reports that the United States Senate has passed a version of a bill that will put an end to internet gambling. If both the United States Senate and House of Representatives agree on final language, and the act is signed by the President, the new law will prohibit financial institutions from facilitating money transfers to or from internet gambling sites. The bill has yet to clear a conference committee and be signed by the President before becoming law. Slot Campaign Exaggerates Figures The Cleveland Plain Dealer reports that the Ohio Learn and Earn committee has admitted to exaggerating the claim that slots will generate "nearly one billion dollars" for education. According to a study by the pro-slot committee, the slots will generate $853 million. Charlie Ruma, the spokesman for the Learn and Earn committee is quoted as promising to end the allegedly misleading advertisements as soon as possible. Attorney General Intervenes in Tribal Suit Ohio Attorney General Jim Petro was dismissed by the Eastern Shawnee Tribe of Oklahoma from its land claims lawsuit. Petro recently filed a motion seeking to be brought back in to "represent the rights of Ohioans." Petro was concerned that if he was not a party to the action, any settlement between named municipalities and the Tribe could enable the Tribe to seek federal recognition of its land, this paving the way for tribal gaming in a number of sites across the state. Having been re-instated as a party, Petro can ensure that the state has a voice in any proposed settlements. Trustees Oppose Learn and Earn The Ohio State University Board of Trustees has announced its position against the Ohio Learn and Earn proposal, according to an article in the Columbus Dispatch. Supporters of the proposal claim that it would provide free college to qualified Ohio students, which would be paid for from slot machine proceeds. The Ohio Board of Regents, which would actually administer the scholarship money, has announced that it will remain neutral with respect to the proposal. Legality of "Bar Poker" Challenged Bar owner Mike Kennedy is fighting a citation issued by the Ohio Department of Public Safety for allowing gambling in a liquor establishment. According to the Cleveland Plain Dealer, Kennedy's bar offered a "free" poker league, whereby patrons competed for prizes, but paid no entry fee to play. The article states that Kennedy was able to bring in as many as 100 customers nightly. After issuing the citation, however, Kennedy's poker tables and equipment were seized. Rather than pay the fine, Kennedy has chosen to contest the matter in court. His first suit was dismissed on procedural grounds, and his battle remains unresolved pending the outcome of a re-filed action. Proposed Constitutional Amendment Would Legalize Slots The Ohio Learn & Earn Committee has placed a Constitutional amendment on the November ballot that would legalize slot machines in the state. Roughly three-thousand slots would be allowed at each of Ohio's seven horse racing tracks, and at two non-racing sites in downtown Cleveland. According to proponents, the measure would generate approximately $2.8 billion in annual slot revenues, of which $850 million would be used to fund college scholarships for Ohio high school seniors. After reaching full funding (estimated at twelve years), the program would provide annual scholarships to Ohio high school graduates enrolled in Ohio colleges. The scholarships would be equivalent to the average cost of tuition at Ohio's undergraduate universities. Additionally, more than $200 million would be distributed across the state for economic development. Additional funds would be set aside for the counties and municipalities in which the sites are located, as well as a set amount each year for treatment and prevention of gambling addiction. In 4 years, the amendment would also allow voters in Cuyahoga county to approve table games in addition to slot machines, at the two independent gaming parlors. Recent approval of the initiative came after backers initially came up short of the required 322,899 signatures necessary to have the measure placed on the ballot. After its original submission, the Secretary of State informed the committee that many of the signatures were invalid, and that they would have ten additional days to remedy the 8,700 signature deficiency. Over 44,000 additional signatures were submitted in an effort to get the slot amendment on the November 7 ballot. Last week the Secretary of State announced that the group had obtained enough signatures, and the measure (now called "Issue 3") will on the ballot. Councilwoman Drops Lawsuit Cincinnati Councilwoman Leslie Ghiz dropped a lawsuit against the Ohio Learn & Earn Committee in which she alleged that the group, in circulating ballot petitions, failed to disclose that the measure would legalize gambling in the state. Ghiz had criticized the Committee for removing Cincinnati as a potential casino site in the state. According to an article in the Cincinnati Post, the Committee would send "an undisclosed amount of cash every year for ten years" to the city. The Post claims that as much as $25 million could be sent to the city as part of the settlement, which would be in addition to the $23 million that Hamilton County would already receive under general distribution from the Earn and Learn package. The settlement is, however, based on passage of the measure on November 7. Tribe Looks at Canal Fulton The Eastern Shawnee Tribe of Oklahoma, which is seeking to establish Native American gaming in Ohio, recently conducted a telephone survey of Canal Fulton residents according to an article in the Akron Beacon Journal. The Tribe has not disclosed the results of the survey, but claims that there is some interest in development of a casino in that area. Internet Gambling Site Closes Operations According to an article in the Cincinnati Post, BetOnSports PLC recently closed its United States operations following the arrest of its chief executive, David Carruthers. Carruthers was indicted on twenty-two counts, including fraud and racketeering. The indictment resulted in a warrant, which was executed as Carruthers exited a plane at a Texas airport. Rules of the Road for Charitable Festivals in Ohio 
In 1976, voters passed a constitutional amendment permitting charitable gaming in Ohio. Since then, charitable organizations have been permitted to conduct games of chance at festivals. However, the exploding popularity of poker tournaments has caused law enforcement officials to take a closer look at what constitutes a festival under Ohio law. Under Ohio law charitable organizations are permitted to conduct games of chance providing they comply with the following requirements:
Since a license is not required to operate games of chance, as a practical matter the enforcement of Ohio's laws with respect to festivals lies primarily with local law enforcement authorities. However, due to the recent national popularity of poker, Texas Hold-Em poker tournaments are being advertised and conducted all around the state of Ohio, most under the guise of a charitable festival. As a result of the proliferation of these poker tournaments (many in clear violation of the law), the Ohio Attorney General's Office Charitable Law Section promulgated Policy 201. Policy 201 sets forth guidelines for conducting games of chance at festivals and can be found at Policy 201 (Adobe PDF). While not legally binding and not equivalent to an official attorney general's opinion, local law enforcement officials are using the guidelines set forth in Policy 201 as a basis for determining the legality of the festivals being conducted in their respective jurisdictions. By was of example, in Policy 201 the Ohio attorney general's office has taken the position that in order to be considered a festival, the charitable organization must offer two activities in addition to conducting the games of chance and serving refreshments. It remains to be seen as to whether the guidelines set forth in the policy will be challenged. In conclusion, when engaging in charitable gaming activities, carefully review your qualification as a charitable organization, make sure there are no additional policies or procedures which have been promulgated by the Ohio attorney general's office and, to be completely safe, give local law enforcement agencies a briefing on the proposed event. State Moves to Dismiss Ottawa Land Claims An article in the U.S. State News reported a press release from Ohio Attorney General Jim Petro announcing that the state has moved to dismiss the land claims of the Ottawa Tribe. The Tribe claims that it is entitled to all of North Bass Island in Lake Erie, as well as unlimited hunting and fishing rights in the state. The press release states that the Tribe's claims are unsupported by the relevant treaties, that the Tribe has already received compensation for any claims they may have from the Indiana Claims Commission, that the lawsuit is being filed too late under the statute of limitations, and that it would be inequitable for a court to grant the claim. According to the Toledo Blade, the Tribe had originally sought only the Northern half of the island, but has recently expanded its claim to encompass the Southern parts, as well. The change is the result of research conducted by a Kent State University geography professor, Ute Dymon, who contends that the island was on the Canadian side of the U.S./Canada border when control was relinquished to the United States by the tribe in the early 1800's. The tribe urges that if the island was actually subject to British control at the time, the treaty between the Tribe and the United States is ineffective. Morton O'Kelly, chairman of the department of geography at Ohio State University disagrees with Dymon's study. O'Kelly claims that the island was never divided by the international border, and that it has always been considered part of the United States. Petro has maintained that the land claim is a veiled attempt to force the state into negotiations over allowing casino gaming in the state, though Dick Rogavin, the Tribe's local counsel, denies that assertion. Racing Commission Considers Minimum Jockey Age In the wake of the death of Josh Radosevich, a 16-year old jockey who was killed while racing at Beulah Park in November, Ohio Racing Commissioners are considering a regulation that would impose a minimum age for jockeys. According to an article in the Lexington Hearald-Leader, the proposal would set the minimum age at eighteen in the hopes that the restriction would give would-be jockeys extra time to develop skills necessary for both on and off-track success. If passed, the regulation wouldn't take effect for at least four months. Police Close Gambling Operation An alleged gambling operation, purportedly owned by a member of the Morrow Village Council, was closed by law enforcement officers last month according to an article in the Dayton Daily News. Sheriff's deputies raided Papa's Restaurant and seized four video slot machines and cash from the establishment. Yorky Bryant, the owner of Papa's claims that he has not broken any laws because he does not own the machines and because an employee paid the winnings to undercover agents, not Bryant himself. Charges had not been filed as of the date of the article. Kentucky Considers Casinos The Kentucky Chamber of Commerce, the state's largest business group, wants to see a casino gaming proposal on the next ballot. An article in the Cincinnati Enquirer reported that the group estimates up to $400 million annually could help fund the state's public services, such as health care and education. Additionally, the added income could help support Kentucky's horse racing industry by adding incentives to breeders and increasing race purses. According to the article, the move could help the Kentucky horse racing industry compete against neighboring Indiana, Illinois, West Virginia and Missouri, where gaming is legal. Cleveland Mayor Conditions Casino Support Frank Jackson, the newly-elected mayor of Cleveland has announced that he will support casinos in Ohio only if they guarantee jobs for Ohioans and support economic development for the city. Additionally, Jackson has indicated that if Cleveland gets a casino, the money should be used to fund economic development, not the general operating budget of the city. Jackson hopes that such a move would help Cleveland avoid becoming dependant on gaming revenues for its survival. |
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