Ohio has topped other states in the Midwest in the increase in the revenues raised by its four casinos and seven racinos. Its commercial revenues increased 13.3 percent in 2015.
The Midwest is the second largest gaming market in terms of growth and has been for nine years. It may be near its peak, however, since no new casinos are planned and the region will soon begin to feel the competition from the Northeast as Massachusetts’ casinos begin to come online.
The report prepared by the national accounting firm of RubinBrown stated, “Since September 2015, the state has seen monthly gaming revenues continue to increase by an average of 6.1 percent compared to 2014.”
The state’s gaming industry generated $1.64 billion, compared to $2.14 billion for Indiana and $1.7 billion for Missouri.
The report looked at 1,000 facilities in the 40 states that have some sort of gaming, including commercial, which composed 54 percent of the total, and Indian gaming, 54 percent, with the rest consisting of limited-stakes gaming.
The region as a whole increased gaming revenues by 2.9 percent.
Gaming contributed $917 million in taxes to the state. Last year was the first since 2008 that most of the casinos in the Midwest registered increases in revenue over the year before.
The report attributes this to increased consumer confidence, more employment and more disposable income.
In a separate but related development Ohio’s Supreme Court ruled last week allowed a lawsuit to go forward by a resident of the state who wants to be allowed to build a casino of his own, and claims that the Ohio constitutional amendment passed in 2009 that allowed four Las Vegas style casino to open violated the equal protection clause of the U.S. Constitution. That law limited casinos to the two casino developers who campaigned to put the amendment on the ballot.
Frederick Kinsey has sued to be able to join the ranks of Penn National Gaming and Rock Gaming, which between them operate casinos in Columbus, Toledo, Cleveland and Cincinnati.
There is no indication that the resident of Columbiana County has the money or backing to open his own casinos, but that may be revealed as the court case proceeds. Whether Kinsey is “ready and able” to open a casino, is an important aspect to the case since if Kinsey cannot show that he is harmed by the Ohio law he will lack standing to sue.
The ruling was a split decision in which dissenting justice Judith Ann Lanzinger wrote: “Four justices now allow the will of the people to be questioned based on the mere assertion by one individual that he ‘would engage’ in casino gambling, without requiring assertion of further facts showing that he indeed is ready and able to do so.”
In a completely different case the Ohio high court shot down efforts by the Ohio Roundtable, a conservative group that has opposed all gaming expansion in the state, to challenge Governor John Kasich’s to bring slot machines to the state’s seven racetracks several years ago.
The group brought its challenge in 2011, asserting that the expansion of video lottery terminals (VLTs) to the racetracks could not be done without a vote of the people and that slots were not a constitutional form of gaming in the state. The Roundtable brought the lawsuit on behalf of a gambling addict.
The court upheld a ruling by lower courts that the Ohio Roundtable lacked legal standing.
Writing for the majority, Justice Judith French stated, “The negative effects of gambling that appellants allege do not constitute concrete injuries to appellants that are different in manner or degree from those caused to the general public, were not the state’s conduct, and cannot be redressed by the requested relief.”
The Roundtable condemned the ruling in a statement: “The Ohio Supreme Court and the lower courts have once again slammed the door on Ohio citizens and Ohio taxpayers.”
Illegal Gambling
Meanwhile, an Ohio man will soon go to trial on charges that he violated the state’s law against so-called “skill games” that pay out cash prizes like slot machines.
The charges arise from a 2014 raid on Skill Game Challenge in Dennison, owned by Robert J. Lance, 55. At the time police confiscated 37 electronic gaming terminals and nearly $3,500 in cash.
Lance is charged with four counts of gambling and four counts of operating an illegal gambling establishment. Each charge has a potential of a year in prison and $2,500 fine. His jury trail will be held at the Tuscarawas County court.
Ohio law enforcement officials, led by Attorney General Mike DeWine have been trying for years to shut down illegal casinos masquerading as skill games. Before that they operated bingo halls. The skill games look and sound like slot machines.
In 2013 lawmakers gave DeWine and company more potent weapons in the form of legislation prohibiting cash payouts or prizes exceeding $10 in value. That eliminated the requirement that law enforcement demonstrate that such games were actually slot machines.
Determining the size of a prize and whether it is being paid out in cash is much easier for law enforcement.
