Ohio Gaming Law: May 2007 News

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Senate Approves Instant Racing
May 31, 2007

The Ohio Senate has passed a bill that would authorize the state's seven horse tracks to install so-called "instant racing" terminals. According to an article in the Cleveland Plain Dealer, the measure was approved 25 - 8. The machines, which allow bettors to wager on previously-run races, would pay out 88% of all money wagered. Of the money not paid to bettors, 8% will be returned to the track owner and 4% divided between the state and several racing-related programs. The bill now moves to the House of Representatives.

Attorney General Investigates Skill Games
May 31, 2007

Amid concerns that some of the state's so-called "skill games" may not be legal, Ohio Attorney General Marc Dann has announced his plans to inspect and regulate the devices. According to an article in the Cleveland Plain Dealer, Dann would hire an expert to examine the machines in accordance with a settlement agreement recently approved in litigation between the state and several manufacturers and owners of the machines. The investigator, whose expenses will be paid by machine owners, will determine whether machines require at least 51% skill (as opposed to games of chance). Any game that is approved will be given a serial number and sealed. Adjusting the mechanics of the game after its inspection will be considered tampering and punished by a $10,000.00 fine.

Illegal Casino Operator Sentenced
May 31, 2007

According to the Dayton Daily News, Robert Louis Roth was sentenced this month for running an illegal casino out of a residence in the Dayton area. The 69-year-old man was sentenced to the minimum twenty months imprisonment, having already surrendered his 10,000 square foot residence and other property. The casino allegedly generated $1,400,000.00 in profit over eight years before it was shut down by authorities.

Tribe Sets Casino Date: Five Years
May 16, 2007

Glenna Wallace, chief of the Eastern Shawnee Tribe of Oklahoma has set a schedule of five years until a casino is opened in one of four locations in Ohio according to a recent article in the Lima News. Once a final land claim settlement is reached, the next obstacle that the Tribe must overcome is having Ohio land taken into trust by the Bureau of Indian Affairs. Until then, federal law prohibits tribal gaming. However, the Bureau can set its own timeline for approving the land trust. The article notes that the Tribe purchased several acres in Oklahoma over seven years ago, and is still awaiting a decision on its trust agreement.

City Regulates Skill Games
May 10, 2007

The Akron Beacon Journal reports that the Barberton City Council has voted to regulate so-called "skill games" within the city limits. Any business that has between two and ten of the machines on site would be required to pay $100.00 per month per machine to the city. Any business with more than ten machines is defined as a "skill arcade" and is required to pay $1,000.00 annually in addition to $200.00 per machine per month. The new legislation prohibits operation of the arcades within 500 feet of a school or church and limits the number of skill arcades within city limits to ten.

Tallmadge Dissolves Gaming Fund
May 8, 2007

Tallmadge has dissolved its "Law Enforcement Gaming Fund," which pooled money from the regulation of so-called "Skill Games." On the advice of Ohio Auditor Mary Taylor, the city will instead place any monies collected into the general fund and the public safety fund. $40,575.00 was transferred to the general fund and $13,525.00 was placed in the Fire Fund, according to the Akron Beacon Journal.

Fire Equipment Garaged Pending Hearing
May 8, 2007

A $125,000.00 rescue squad vehicle that was delivered to the Norton Fire Department late last month was placed in storage pending the outcome of administrative hearings. An article in the Akron Beacon Journal reports that the Norton Volunteer Fireman's Association, which raised money to purchase the equipment, has not been able to make delivery to the city because of concerns by Attorney General Marc Dann's office about the group's charitable status. Dann's primary concern is that not all members of the volunteer fireman's association are volunteers, creating an issue under the charitable gaming laws. Additionally, the Norton Volunteer Fireman's Association doesn't contribute exclusively to the Norton Volunteer Fire Department, potentially creating more issues. A hearing is scheduled for May 30th.

After initial confusion, the Attorney General's Office made it clear that even though the bingo group remained under investigation, Dann would not object to delivery of the truck and, in fact, had never originally objected to the delivery. Norton's Fire Department received its new equipment last week at a ceremony at the station house.

Instant Racing Proposed
May 8, 2007

A new proposal for so-called "instant racing" has found bi-partisan support in the General Assembly according to a recent article in the Columbus Dispatch. Under the new proposal, players would place wagers on past races based exclusively on the win percentages of the horses, jockeys and trainers while the actual identity of racing participants remains unknown. After bets are placed, the bettor can watch the entire race or a ten-second clip. If successful, the wager is paid instantly.

The new proposal would help the state's sluggish racing industry and would also generate revenue for the state's PASSPORT program, which provides home health-care for senior citizens. State Representative Bill Seitz has indicated that this proposal doesn't introduce any new gambling, but merely expands a form of gambling that is already legal under existing state law and the Ohio Constitution. Proponents hope the devices will also spur interest in traditional live racing at the tracks. Scioto Downs owner Charlie Ruma stated his hope that the new gaming would at least serve as a temporary fix for the racing industry while other options are examined.

Attorney General Receives Contributions From Skill Games Proponents
May 8, 2007

The Columbus Dispatch recently reported that Ohio Attorney General Marc Dann received the maximum contribution of $5,000.00 each from two companies that manufacture the so-called "skill games" and from one attorney who is fighting to have the devices declared legal. Contributions were made to Dann's inauguration account.

The article states that Dann supports legislation that would better define what devices are legal under state law and to provide for regulation. When Dann took over from former attorney general Jim Petro, three cases concerning the machines were in litigation. Those suits remain open and Dann has not announced any plans to drop the suits.

Gambling opponents have said that it is "unseemly" for the Attorney General to have accepted the contributions in question.

Stark County Video Slot Raids
May 8, 2007

Sheriff's deputies raided five video slot parlors in Jackson and Plain township last month and confiscated 145 video machines and over $30,000.00 in cash and other property. The Akron Beacon Journal reports that the raids occurred after a six-month investigation determined that the devices violated state law. According to Sheriff Tim Swanson, no arrests were made, but the investigation is ongoing.

Racetrack Profits Tank in 2006
May 8, 2007

An article in the Columbus Dispatch states that Scioto Downs reported a $4,400,000.00 loss in 2006. The story notes that the racetrack spent $3,100,000.00 on last year's failed ballot initiative to bring slot wagering to Ohio's tracks. Scioto's parent company, MTR Gaming, stated that revenues continue to fall because of low betting activity, and that MTR continues to examine possible ways to improve profitability, including other forms of gambling.