Ohio Lottery Director Resigns

Ohio's lottery director resigned Tuesday from a rocky tenure serving in Gov. Ted Strickland's cabinet, as the state tries to expand the lottery to include video slot machines at horse racing tracks.

Dolan did not say why he's leaving in his resignation letter to Strickland, other than to say that he had thought about the direction of the lottery, including the new policy for slot machines.

"My reflection has led me to conclude that the best interests of the Lottery and the state, as well as my personal interests, would be best served by passing the Lottery 'baton' so that the next leg of the race can be completed freshly," Dolan said.

Dolan will continue to serve as lottery director until Strickland makes a new appointment.

Dolan's tenure included being cited in an Ohio Inspector general report for sending free lottery tickets to a state trooper who had pulled him over for driving without a front license plate and found that he wasn't wearing a seat belt. The trooper let him off with verbal warnings.

Dolan sent 100 instant tickets to the trooper. In response to the Inspector General report, Dolan said he regretted that his actions reflected poorly on the lottery but stopped short of saying he did anything wrong.

Dolan also appeared unprepared to answer questions during hearings held by Senate Republicans to evaluate Strickland's slots plan.

Additionally, there were questions about how Dolan dealt with state lawmakers who were evaluating lottery contracts.

For the complete story, please see Stephen Majors, State lotto chief says he's 'passing baton,' resigns, AP via FallsNewsPress.com, August 9, 2009.

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.

Greektown Casino Disappointed with Low Bids

Greektown Casino-Hotel will spend more time looking at ways to reorganize its debts rather than selling the property to exit bankruptcy, after multiple bids came in lower than expected, a financial adviser for the gambling hall said Thursday.

Chuck Moore, an adviser from Birmingham-based Conway MacKenzie Inc., which is working on Greektown's bankruptcy, told the Michigan Gaming Control Board at its Thursday meeting that his team would shift focus toward looking at ways the casino can reorganize some $777 million in debt.

"There was disappointment at the values of the bids we've seen so far," Moore said. "Our creditors don't believe they adequately compensate for the performance of the property."

Officials in charge of Greektown's estate have been shopping the property around to potential bidders in a two-pronged approach to getting the casino out of Chapter 11 protection.

For the complete story, please see Nathan Hurst, Greektown Casino rejects low-ball bids, The Detroit News, May 7, 2009.

Ohio Bar Owners Propose Local Approval for Slot Machines

Will slot machines be allowed in Ohio bars, restaurants, bingo halls, and veterans clubs? Below is an excerpt detailing the latest in the fight for slots to be legal.

From the Cleveland Plain Dealer:

Is there room for yet another player in the high-stakes, backroom discussions on whether Ohio should expand gambling?

Tavern owners hope so, and they think they have a winning hand that could appease gambling critics, including the governor - a plan that would require a vote of the people and wouldn't rewrite the state's constitution.

Groups representing liquor-serving establishments are floating a plan in the state legislature that could allow more than 80,000 Ohio Lottery-authorized slot machines in bars, restaurants and bingo and veterans halls and at horse-racing tracks.

Under the plan, residents of cities, villages and neighborhoods would decide whether they want the table-top games at their corner bars in precinct-by-precinct votes - the same process used to determine where Sunday liquor sales are allowed in Ohio.

For the complete story, please see Reginald Fields, Ohio bar owners propose letting local communities vote to approve slot machines, The Cleveland Plain Dealer, April 26, 2009.

Legal Online Wagering May Have to Wait

At Wholesale Bingo Supplies, we've always paid close attention to the legal battle over online betting. It's impact on casinos, bingo, and the gaming industry in general is worth keeping an eye on.

From the Las Vegas Review-Journal:

Online gambling proponents may have to wait a little longer for the passage of federal legislation that would legalize betting on the Internet. Congress is tied up with other pressing issues.

Macquarie Securities gaming analyst Joel Simkins told investors not to bet the house on Internet gambling becoming legal anytime soon.

His prognosis comes despite a White House that is seemingly friendlier toward Internet gamblers and the support of Rep. Barney Frank, D-Mass., who plans to reintroduce a bill after the Easter holiday that would legalize and regulate Internet gaming.

After checking with Washington, D.C., lobbyist contacts and casino company operators dialed into Capitol Hill, Simkins put steep odds on the issue seeing any light.

"We see little reason for investors to try to play this near-term," Simkins said.

Online gambling has long interested the casino industry, mainly due to the reported revenues the activity has produced. Estimates by Internet gaming advocacy groups peg the amount of money annually wagered online at anywhere from $20 billion to $25 billion.

For the complete story, please see Howard Stutz, INSIDE GAMING: Legal Net betting may have to wait, Las Vegas Review-Journal, April 12, 2009.

Indianapolis Casino Looks Doubtful

Establishing a new Downtown casino in Indianapolis to bail out the city's struggling sports venue board will face long odds in the state legislature, Gov. Mitch Daniels and some lawmakers predicted Friday.

Rep. Bill Crawford, D-Indianapolis, has pitched a 1,500-slot machine casino as an answer to help plug the projected $47 million deficit the Capital Improvement Board will incur in operating the city's sports venues.

While the plan would generate $20.5 million for the CIB through a 10 percent gaming tax, Daniels said it's "very unlikely" the General Assembly would back slots.

For the complete story, please see Bill Ruthhart, Few betting on casino in downtown Indy, The Indianapolis Star, April 12, 2009.