Ohio Senate Rejects Casino Plan

Gov. Ted Strickland said Saturday the Republican-controlled Senate rejected his proposal to erase Ohio's $3.2 billion budget deficit, dealing a strong blow to the already diminishing chances the spending plan would be finished on time.

The most crucial component of the Democratic governor's plan would put slot machines at Ohio's seven horse racing tracks to raise an estimated $933 million over the next two years. Strickland said the onus was now on the Senate to suggest how to deal with the nearly $1 billion hole.

"I believe that he (Senate President Bill Harris) and the Senate majority have an obligation to say what taxes they would increase or what services they would further reduce in order to balance the budget," Strickland said in a statement.

A message seeking comment was left with Harris spokeswoman Maggie Ostrowski Saturday.

The impasse jeopardized a meeting of negotiators scheduled for Sunday, and further reduced the possibility that the state budget would be passed in time for the next fiscal year to begin July 1.

If lawmakers can't reach a deal, they will have to pass a temporary budget - likely at significantly reduced funding levels - to give themselves more time to negotiate the rest of the two-year plan.

For the complete story, please see Ohio Senate rejects Strickland gambling plan, The Associated Press via MansfieldNewsjournal.com, June 27, 2009.

Are Alabama Bingo Machines Legal?

When Attorney General Troy King released his review of gambling in Alabama in 2004, he did not include findings of an investigation by a federal agency that found evidence some machines at major gambling centers failed to meet standards separating legal bingo machines from illegal slot machines.

Nor did he share the findings from the National Indian Gaming Commission with Gov. Bob Riley, whose visit with King to commission officials in Washington had sparked the investigation.

Riley, who only recently learned of the investigation's findings, contends the letter the commission sent King backs up his belief that the thousands of electronic bingo machines that have spread across the state are nothing more than illegal slot machines requiring no skill to play or competitors to play against.

King, however, is largely dismissive of the letter.

For the complete story, please see Charles J. Dean, Kim Chandler, AG Troy King, Gov. Bob Riley spar over bingo report, The Birmingham News, June 28, 2009.

Ohio Casino Opponents Voice Their Concern

A plan to put casinos in Cleveland, Columbus, Cincinnati and Toledo is a losing bet, state Rep. Dennis E. Murray Jr. said.

However, an alternative proposal that would allow casinos in Lorain, Sandusky and elsewhere could be better for Ohio, he said.

This week, Murray blasted "The Ohio Jobs & Growth Plan" casino proposal and confirmed he has drafted an alternative that would allow casino gambling in any of Ohio's 88 counties. The Sandusky Democrat's district includes Erie County, and he discussed the issue Monday as part of a business and government summit hosted by Erie and Huron county chambers of commerce.

Time will tell whether Ohio legislators and voters see either issue on the Nov. 3 ballot.

Supporters of The Ohio Jobs & Growth Plan, which would put casinos in Ohio's four largest cities, must gather 400,000 signatures by next month to get the issue on the ballot. Backers include casino operator Penn National and Dan Gilbert, the founder of Quicken Loans.

Murray said he would wait to see if the issue makes the ballot before asking Ohio's lawmakers to put a second gambling issue up for a vote.

The Ohio Jobs & Growth Plan promotes $1 billion minimum in private investment, $200 million in licensing fees, $651 million a year for schools, counties, cities and Ohio, with 20,000 new jobs, according to its Web site, www.ohiojobsandgrowth.org.

Even so, it is not a winner, Murray said.

For the complete story, please see Richard Payerchin, State Rep. Murray says casino plan a losing bet, The Morning Journal, June 24, 2009.

Governor Pushes for Slots in Ohio

Gov. Ted Strickland's plan to balance the budget with gambling money includes legalizing up to 15,250 slot machines at Ohio's seven horse racetracks, with most of the games plugged in by next May.

The governor's office estimates the machines will rake in nearly $1 billion in 14 months -- from May 2010 to the end of the 2011 fiscal year.

The plan would allow the state to collect 48 percent of that revenue for education spending while the other 52 percent would be split among the seven track owners and pay administrative and operational expenses, including payouts to lucky winners.

The state would also collect a one-time licensing fee from each owner, somewhere in the neighborhood of $65 million for each location depending on how many machines are at each track.

All of these figures are moving targets, said Strickland's budget director Pari Sabety, in particular the licensing fee, which some track owners may balk at.

"We've looked at some states where they have pegged the licensing fee high and the revenue share low or visa versa," Sabety said. "So If you get a big licensing fee, do you give the track owners more on the backside? So that is a lot of the kind of stuff we're going to have to work through."

Strickland, a Democrat, announced Friday, June 19, that he was reversing his stance against gambling and introduced the slots plan that he believes could net the state $933 million in the next two years.

The gambling proceeds represent crucial new revenue for Ohio, which is struggling to balance its next biennium budget in the face of a $3.2 billion shortfall.

The governor also proposed $2.4 billion in cuts to state agencies and programs as Ohio's economy and job creation efforts continue to struggle.

But Strickland's turnaround on gambling has drawn the most attention. It has provided the conference committee, a bipartisan legislative panel working to present the governor a balanced budget by June 30, some needed direction.

None of the three prior budget proposals -- from the governor, House and Senate -- included expanding gambling.

But with budget negotiations at a stalemate and the unexpected size of the budget gap, the six-member committee is likely to work from the governor's latest plan and add its own twists to the slots proposal.

Senate President Bill Harris, an Ashland Republican, has long frowned on gambling as a budget solution. But Harris said he is willing to consider the governor's plan.

For the complete story, please see Reginald Fields, Ohio could see 15,250 slot machines under Gov. Ted Strickland's budget proposal, Cleveland Plain Dealer, June 22, 2009.

Representative Argues Smoking Ban Should Include Tribal Casinos

State Rep. Dean Kaufert claims the statewide smoking ban that's going into effect in July 2010 is flawed because it excludes Native American casinos.

It's a fairness issue," said Kaufert, a Neenah Republican who has been contacted by constituents regarding the reach of the ban. "A statewide ban should truly be a statewide ban. There shouldn't be pockets where people don't have to comply with the state."

Kaufert said he may introduce legislation to include casinos in the ban, which was signed into law in mid-May by Gov. Jim Doyle and goes into effect July 5, 2010.

"I want to gauge the interest of my colleagues, Republican and Democrat, and see if there is any interest in moving forward with legislation that would make it a true statewide ban," Kaufert said last week.

Tribal officials say the statewide ban isn't applicable to casinos because it is not part of the gaming compacts between the tribes and the state.

When the statewide ban was passed in May, Kaufert introduced an amendment that would have included all Native American lands in Wisconsin. He said the amendment would have "closed a major loophole" in the bill, but it was defeated in the Assembly.

Kaufert will face a tough road if he opts for a legislative remedy. He realizes that it would be a "little tricky" to pass a bill that bans smoking in casinos because of the sovereign nation status of tribes.

For the complete story, please see Andy Thompson, Ban smoking in casinos, legislator says, Green Bay Press-Gazette, June 22, 2009.

Nonprofit Groups Scramble for Bingo Permits

A list of more than 30 bingo permit applicants released by the city of Birmingham last week offers a glimpse into who might be involved in high-stakes bingo under Birmingham's new bingo ordinance.
Among the permit applicants is the brother of City Councilman Johnathan Austin. Gerald Austin Jr. applied for a permit representing the Center for Urban Missions, a nonprofit founded by Austin's father, the Rev. Gerald Austin Sr.

Councilman Austin was one of four councilors voting in favor of the bingo ordinance earlier this month.

Also applying for a bingo license is a nonprofit that former U.S. Rep. Earl Hilliard founded in 2000, the National Gallery of the Greats. Hilliard provided the initial draft of the new bingo ordinance to Councilman Joel Montgomery, who led the push to authorize and tax electronic bingo in the city. As a lawyer, Hilliard represents bingo operations in Jefferson and Walker counties.

But it's unclear how many groups might be pursuing a new type of permit that will allow them to operate major gaming centers with 500 machines or more.

That's because they all filled out an application designed before more than one type of permit existed that doesn't give them an option.

The city's list of applicants includes six groups that apparently denoted on their applications that they wanted the new bingo permit. The group operated by Austin's brother is among those six.

For the complete story, please see Thomas Spencer, Jeff Hansen, Groups line up for bingo permits in Birmingham, The Birmingham News, June 21, 2009.

Online Gambling Faces Another Challenge

The federal government’s recent seizure of millions of dollars from bank accounts used to process online poker transactions is sending shock waves through the Internet gambling community.

But insiders, including gaming giants poised to capitalize on the potential legalization of Internet wagering, disagree on how the action this month by the Justice Department will affect a controversial activity with millions of American participants.

The seizures, which follow other federal efforts to crack down on Internet gambling sites accepting bets from Americans, are among the most aggressive government actions to date involving poker sites.

Critics of the seizure say it won’t stop people from playing poker on the Internet and will fuel state and federal legalization efforts.

“I have not heard one person saying, ‘I am through with online poker,' ” said one industry official in Las Vegas, who declined to be named. “It’s just making people more militant and bitter against the government.”

But others think it will make players think twice about gambling online.

For the complete story, please see Liz Benston, Will Web poker bust spark fight or flight?, Las Vegas Sun, June 15, 2009.

Creating a Program for Your Bingo Fundraiser, Part Three

Gathering the right bingo supplies can be difficult enough for the first time bingo mananger, let alone designing a bingo program.

To help, here's the final video of our three-part series on how to create a bingo program for your fundraising event:





For more information on running a bingo or for other tips, please see our Bingo Manager Articles or our other Bingo Fundraiser Videos.

Creating a Program for Your Bingo Fundraiser, Part Two

First-time bingo managers and even some veterans can often be confused or intimidated by creating or making changes to their bingo program. That's why we've created this video series on creating a bingo program.

Below is part two in our three-part series on the basics of creating a bingo program for your bingo fundraiser:





For more information on bingo, please visit our bingo articles section or view our other bingo videos at Wholesale Bingo Supplies.

Casinos Argue That Smoking Ban Hurts Everyone

In Michigan, Louisiana, and elsewhere, casinos and other gambling venues (including bingos) scramble to fight against potential smoking bans. Many of these are now bringing up the ripple effects (lower tax payments, job losses, small business revenue) that a smoking ban will likely have in gaming communities.

Below is an excerpt from a recent article out of Louisiana:

As bills that would expand Louisiana’s smoking ban to gambling venues continue to smolder in the Legislature, casino officials are battling to avoid what they call an unfair financial burden.

State Rep. Gary Smith told House members the 2006 law banning smoking in restaurants unfairly excluded bars and casinos, placing a burden on establishments that make most of their money serving food.

“These businesses compete with each other, and we need a level playing field,” Smith said. “We’ve already drawn a line in the sand, and now we’re going to make it even across the board for all of the individuals in the service industry.”

But Boomtown Casino spokesman Charles Fredrick says prohibiting smoking in casinos will send economic ripples throughout the state.

“What we anticipate is a 20 percent reduction in revenue if this smoking ban passes,” Frederick said. “If we lose 20 percent of our business, or even 15 percent, that means people are going to get laid off. The State Police get $52 million a year from riverboat casinos. Take 20 percent from that and tell me how many state troopers are going to get laid off.”

For the complete story, please see Stephen Maloney, Casinos go on offensive to ward off smoking ban, New Orleans City Business, June 8, 2009.

Casino Backers Reprimanded

A Mahoning County judge issued a temporary restraining order against backers of a proposed four-casino plan after two of its petition circulators were seen in a secretly taped video giving voters incorrect information about the measure.

Judge James Evans granted the restraining order to Mahoning County Democratic Party Chair David Betras and Mahoning County Commissioner John McNally who used the video to sue the Ohio Jobs and Growth Committee. The order requires circulators to obey the law but still allows backers of the proposal to collect signatures needed to get the measure on the ballot this fall.

In a two-page order, Evans blocked the committee "from misrepresenting the contents, purpose or effect of the initiative proposing an amendment to the Ohio Constitution to authorize a single casino within each of the cities of Cleveland, Columbus, Cincinnati and Toledo."

For the complete story, please see Reginald Fields, Judge to casino circulators: be truthful; backers say no problem, The Plain Dealer, June 5, 2009.

Creating a Program for Your Bingo Fundraiser, Part 1

Preparing to run a charity bingo can be a daunting task, especially if you've never ran one before. Many first time bingo managers are great at getting volunteers, gathering bingo supplies, and marketing a bingo, but when it comes to creating a program for the players, they have no idea where to begin.

If you're interested in organizing and hosting your own bingo fundraiser, but need to know the basics of getting started with your program, this video may help. It's the first in a three-part series:

How are Michigan Casinos Faring in this Economy?

Michigan's economy is down, its unemployment is up and the auto industry is in a battle for its life.

But when it came to spending on lady luck at casinos, the state bucked national trends until winter set in.

Revenue at Michigan's three commercial (non-Indian) casinos was up 1.3 percent in 2008, while commercial casinos around the country saw revenue decline 4.7 percent from record 2007 levels, according to state data and a study by the American Gaming Association.

Michigan's tribal casinos, though not tracked by the association, also saw some revenue growth, based on records of payments they made via their state revenue-sharing agreements.

But growth in that sector was scattered, driven by the first full year of operations at the Four Winds Casino in New Buffalo.

``It's a dynamic where you don't know if it's an aberration, or if it's a peculiarity of the Michigan market,'' said Eric Bush, administrative manager for the Michigan Gaming Control Board, which regulates the state's casinos.

``It doesn't seem to be making a downturn and following the economy.''

The upward trend is not expected to continue, however. Eric Kalm, executive director of the MGCB, said the big question now for the state is how big of a revenue drop it should expect.

For the complete story, please see Chris Knape Michigan's luck about to run out?, Kalamazoo Gazette, May 31, 2009.

Do People Know How to Find Your Bingo?

One of the sometimes overlooked parts of operating a successful bingo is proper outdoor signage. Without clear and visible signs, bingo players might not know how to find you and potential bingo players won't know you exist.

Not only will you want your bingo sign to be visible, but you'll want to put as much relevant information about your bingo there as well. Things like the times and days played, the size of your jackpots, monthly specials on bingo supplies and more should be included. Of course, make sure that everything can be easily read. Don't try to squeeze too much in so that the words are too small to be seen.

For more information please see Bingo Signage Can Help Your Attendance, Wholesale Bingo Supplies.