Cleveland
Business Seeks Casino in Clinton County
November 20, 2007
The Dayton Daily News reported that Rick Lertzman and Brad Pressman,
two "Cleveland-area businessmen" are attempting to place
a Constitutional amendment on the 2008 statewide ballot authorizing
gaming. The ballot language, which has not been made public, would
authorize a hotel, casino, golf course and restaurants on a 94-acre
site just outside of Wilmington. According to the article, Clinton
County Commissioner Randy Riley is taking the proposal under consideration,
saying that he has "yet to find a down side" to the plan.
The partners claim that casino gambling at their single site would
create 5,000 jobs and approximately $170 million for the state.
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"Skill-Games"
Outlawed
November 20, 2007
Governor Ted Strickland has signed into law an act of the General
Assembly that deems any skill device that pays winners in cash or
in prizes valued in excess of $10.00 an illegal slot machine. According
to the Columbus dispatch, the new law became effective immediately
upon the Governor's signature.
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Legislature
to Act on Skill Games
October 15, 2007
According to the Cleveland Plain Dealer, the Ohio General Assembly
is preparing to act against skilled gaming. The proposal will likely
prohibit all cash payments from the devices, and will establish
$10.00 as the maximum value of any non-cash prizes awarded. The
legislation, which essentially mirrors administrative rules promulgated
by Attorney General Marc Dann, is supported in both chambers and
tentatively indorsed by Governor Ted Strickland.
The Ohio Coin Games Association, according to the Dayton Daily News,
has produced a study claiming that banning Tic-Tac-Fruit alone will
cost Ohio 1,848 jobs and over $9,500,000.00 in annual taxes.
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Speaker Proposes Ban
on Skill Game Cash Payouts
September 24, 2007
The Cleveland Plain Dealer recently reported that Ohio House of
Representatives Speaker John Husted intends to ask his chamber to
place a total ban on cash payouts from so-called games of skill.
Scott Borgemenke, Husted's chief of staff, notes that the plan will
put an immediate halt to the games so that the General Assembly
can revisit the issue at a later date.
Representative Bill Seitz disagrees with the plan. The Cincinnati
legislator is proposing a regulatory scheme to license, regulate
and tax the machines.
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Skill Game Purveyors
Win Injunctions
September 24, 2007
Early this month Franklin County Common Pleas Judge Michael Holbrook
issued an order that prohibited the Attorney General from enforcing
a ban on the "Nudgemaster" game. The device is one of
many "skill games" that the General Assembly is currently
trying to prohibit in Ohio. Since then, two more games, Tic-Tac-Fruit
and Puzzlebug have been granted special dispensation to operate
despite Attorney General Marc Dann's administrative rules prohibiting
cash payments from the devices.
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Tracks Install
Skill Games
September 24, 2007
Several racetracks in Ohio have opted to install controversial
"skill games" at their facilities this month. A recent
article in the Cincinnati Post claims that Columbus-based Beulah
Park has installed at least ten of the devices, and that River Downs
in Southern Ohio has plans to do the same. Michael Weiss, Executive
Vice-President of Beulah Park claims that the machines have been
installed in several locations around the racetrack. "[W]e
thought we should be able to provide the same game for our customers
as our competition.," Weiss said.
The Post reports that horse race wagering is down over thirty percent
in Ohio over the past five years, and that owners are racing their
horses in other states where slots and other gambling has created
more lucrative purses.
Raceway Park, however, has decided to avoid the machines. "Penn
National, our parent company, is publicly traded and does not want
to be involved while legislation is pending. It's very controversial,"
said John McNamara, an employee with Raceway's customer service
and marketing division. Raceway is currently experiencing a surge
in wagering activity over last year's numbers. McNamara attributes
the increase to renovations to the track's and new programs to offer
additional entertainment along with traditional horse racing.
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Tribe Settles
Land Claim
August 24, 2007
The Eastern Shawnee Tribe of Oklahoma has finally resolved its
land claims in Federal Court. Last month, Judge James Carr dismissed
the Tribe's lawsuit after land purchase settlement agreements were
reached with the city of Lima and private property owners. According
to the Toledo Blade, the order dismissing the suits did not constitute
federal recognition of the Tribe's aboriginal status in Ohio. Attorney
General Marc Dann said that the dismissal has no impact on the state
or its opposition to gambling. "This is not a recognition of
land rights, which would move them a step toward being recognized
by the [United States]," Dann said.
The Tribe's next step, according to the Lima News, is to
begin the process of having the land taken into trust by the Bureau
of Indian Affairs. Until that next step is completed, gambling under
the Indian Gaming Regulatory Act cannot begin.
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Dann Accused
of Gambling Influence
August 24, 2007
Early this month, articles in the Columbus Dispatch hinted
that Attorney General Marc Dann may have created an appearance of
impropriety by accepting political contributions and other assistance
from individuals and businesses involved in gambling activities.
In January, Dann's campaign received food and beverages from a person
related to Alfred DeLeon, an officer of Castle King LLC, a company
that manufactures and distributes controversial "games of skill."
Additionally, Dann is said to have received more than $47,000.00
from gambling interests since his inauguration; and Dann may have
taken another $20,000.00 to help defray inauguration and transition
expenses. In May, Dann's office settled a lawsuit against Castle
King LLC that claimed the devices violated Ohio law. The settlement
provided criteria by which the Attorney General would certify the
devices as compliant with Ohio law.
According to the Dispatch, Dann did not violate any laws
in accepting the contributions. Dann's spokesman says that the donations
had no affect on the Attorney General's position
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Cockfighting
Ring Uncovered in Lorain County
August 24, 2007
The Cleveland Plain Dealer reports that the Lorain County
Sheriff broke up a cockfighting ring in Sheffield Township last
week. More than forty men were caught observing the fight. Underweight,
malnourished and neglected animals were present, and several animals
were either dead or dying. Officers confiscated metal spurs, drugs
and steroids at the scene. A similar event was the subject of a
February sting in Medina County that resulted in the arrest of 21
people.
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Pataskala Charity
Event Closed
August 24, 2007
The West Licking Firefighter's Association was prohibited from
conducting charitable gaming at this year's Pataskala Street Fair.
On August 6th, the City informed the organization that state law
prohibited charitable gaming on public streets. The group was advised
to move gaming activities to a fire hall it owns, but alternative
arrangements could not be made before the fair began. The Association
said that the short notice will most likely result in a loss of
nearly $10,000.00, the amount the group historically earns from
the gaming.
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City Council
Kills Casino Negotiations
August 24, 2007
Lima City Law Director Tony Geiger recently informed the Lima City
Council that the administration will not have concluded negotiations
with the Eastern Shawnee Tribe of Oklahoma concerning a possible
casino development in time for the Council to place the agreement
on the November ballot. The deadline to place the measure on the
ballot is August 23rd. Without sufficient time to complete negotiations
and present an agreement to the voters, the city has withdrawn from
negotiations, according to the Lima News.
The Tribe's spokesman, Terry Casey, said that the development plans
will continue. Other agreements are already in place with other
Ohio cities. The Tribe plans on presenting a package to the Bureau
of Indian Affairs, but without an agreement with Lima, it will be
difficult to include the city in its proposal, according to Casey.
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Strickland
Promises to Veto Racing Slots
June 25, 2007
Governor Ted Strickland has promised to veto a bill that would
legalize so-called "video racing" terminals at Ohio's
horse tracks. According to the Cleveland Plain Dealer, the Governor
has said that his veto does not indicate a preference for or against
gambling, but merely upholds the will of the people who voted against
allowing slot machines last November. Along with a promise to veto
any video racing measure, the Governor has called for the General
Assembly to move quickly in eliminating the distinction between
"skill games" and gambling devices, and to cap the value
of non-cash prizes awarded in the state by video devices to $10.00.
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House
Considers Skill Game Ban
June 25, 2007
The Columbus Dispatch reported last week that Ohio House of Representatives
Speaker Jon Husted wants "a complete ban" on "skill
games." Husted called the games "a backdoor approach to
opening up gambling." Husted also criticized Governor Ted Strickland's
plan to cap non-cash prizes at $10.00, saying that plan only sets
limits on what consumers can win, not what they can lose. Senate
President Bill Harris did not elaborate on any plans to ban the
games, noting only that he did not expect any definitive measure
to be added to the state budget.
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Lima Extends
Skill Game Moratorium
June 25, 2007
The Lima City Council voted to extend a moratorium on so-called
skill games in the city. The new ban will be in effect for the next
six months. According to the Lima News, City Law Director Tony Geiger
hopes that the extension will give the state time to decide whether
the devices are legal under Ohio law.
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Argosy
Purchased
June 25, 2007
Penn National Gaming, Inc. has agreed to be purchased by Fortress
Investment Group, LLC. according to an article in the Cincinnati
Post. Penn National operates several casinos across the United States,
including the Argosy in Lawrenceburg, Indiana - just across the
river from Ohio. According to the article, Fortress offered $6.1
billion in cash and will repay $2.8 billion of the target's debt.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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Judge Rejects Tribe's Casino
Proposal
April 5, 2007
A federal judge has refused to approve a settlement agreement between
the Eastern Shawnee Tribe of Oklahoma and several defendants, including
the City of Lima. The Lima News reported that Judge James Carr rejected
the settlement and instead proposed dismissing the case and allowing
the parties to object to the dismissal until April 16th. When asked
about the lawsuits, Ohio Attorney General Marc Dann said: "If
Indian gaming is ever to exist in the state of Ohio, it will only
come by way of the Constitution and state and federal law -- not
by sham lawsuits."
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Dog Fighting Ring Busted
In Moraine
April 5, 2007
A 14-month investigation into a dog fighting ring resulted in nine
arrests and the confiscation of sixty-four dogs, according to a
recent article in the Cincinnati Post. Arrests were also made for
crimes including gambling, drug trafficking, possession of a firearm
and interstate transportation of a stolen vehicle.
A federal judge ordered the confiscated animals euthanized, claiming
that abuse and lethal training made the animals too dangerous to
keep.
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Toledo Games Raised "Red
Flags" For Gaming Insiders
April 5, 2007
A recent article in the Toledo Blade reports that gambling insiders,
including both legal and "underground" bookies, were aware
that suspicious activities may have been taking place in association
with University of Toledo football games. These announcements come
in the wake of "point-shaving" charges against Harvey
McDougle, Jr., a player for the University of Toledo's football
team. McDougle allegedly took bribes from Ghazi Manni of the Detroit-area.
The article reports that FBI surveillance of Manni's telephone conversations
led them to McDougle.
According to the article, gaming insiders have been suspicious of
the program for some time after bookies noticed an increased volume
of wagering on the Toledo games, as well a sudden change in the
team's performance against the point spreads. While industry experts
were aware that something may have been afoot, there was no hard
evidence and no outright allegations were ever made.
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University of Toledo Athlete
Charged in Scheme To Influence Sporting Contests
April 4, 2007
The Akron Beacon Journal recently reported that University of Toledo
running back Harvey "Scooter" McDougle, Jr. was arrested
Friday for participating in a bribery scheme to influence sporting
contests. According to the article, McDougle recruited other Toledo
football and basketball players to participate in the scheme, orchestrated
by a Michigan man known only as "Gary." University of
Toledo athletics director Mike O'Brien says that the university
"just found out about [the scandal] Friday." Court documents
do not indicate whether the results of any games were actually affected.
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Ohioans Indicted on Gambling,
Fraud Charges
April 4, 2007
The Cleveland Plain Dealer reported that eight Akron-area men were
charged in association with mail fraud and charitable bingo scams.
According to the article, four individuals submitted false rebate
requests to R. J. Reynolds Tobacco Company for cartons of cigarettes
that were never sold. This scam allegedly ran from 2000 to 2002
and netted participants more than $800,000.00.
In 2002, a new scheme was developed whereby the same individuals,
as well as new participants, opened three instant bingo parlors
in Akron. In Ohio, instant bingo must ordinarily be conducted by
a charitable organization or a veterans / fraternal organization.
The participants allegedly got around this requirement by making
illegal donations to charities in exchange for using the charities'
bingo licenses, or in one case, obtaining a bingo license in the
name of a charity without that charity's permission. According to
the article, the bingo scams brought in more than $2,500,000.00
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Cities Attempt To Regulate Skill Games
March 26, 2007
Two articles recently published in the Akron Beacon Journal illustrate
recent efforts by Ohio cities to regulate so-called "skill
games" within their jurisdictions. The article states that
officials in Akron, Franklinton, Kent and Norton are looking into
the possibility of licensing and regulating the popular games, which
cost money to play and reward successful players with jackpots ranging
into the thousands of dollars. The businesses are currently regulated
and taxed in at least two Ohio cities, with Northfield taking 5%
of the revenues from its skill games parlors and Tallmadge imposing
a $1,000 annual licensing fee and an assessment of $100 per month
per machine. Kent hopes to adopt a law similar to that in Tallmadge.
Meanwhile, other Ohio cities, including Norton and Franklinton are
considering moratoria on the parlors while they evaluate their regulatory
options and wait for consensus' as to the legality of the devices.
However, not everyone is pleased with the prospect of regulation.
Ohio Arcade Owners Association president Jamie Minne says that the
owners aren't opposed to regulation, but feels that regulations like
those implemented in Tallmadge are designed to discourage the businesses.
He suggests that cities implement fair taxation and implement licensing,
criminal background checks and uniform operating guidelines.
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Tribe Elects
New Leader
January 4, 2007
The Eastern Shawnee Tribe of Oklahoma has elected it's first female
chief. According to an article in Tulsa World, the Tribe elected
Glenna J. Wallace in November and she was sworn in on December 6th.
Wallace made known her intentions to continue pursuit of Tribal
gaming in Ohio and noted that the Tribe wants "to return to
Ohio - to be a federally recognized tribe and to be restored in
Ohio." Wallace indicated that she will resign from her current
job as a communications professor at Crowder College to devote all
of her time to Tribal governance.
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