Three of Ohio’s largest casino operators have formed a lobbying group called “Get Gaming Right Ohio” to oppose pending state legislation that would allow veteran and fraternal organizations to install electronic bingo machines that they say would not be subject to the same stringent regulations as casino slot machines.
In a statement issued last week, the group—formed by JACK Entertainment, MGM Resorts International and Penn National Gaming—said the nearly 900 locations that could house the “underregulated casino-style slot machines” would hurt education and other state and local programs funded by tax revenues from regulated casino slot machines.
“Regulated casino gaming upholds the most stringent standards around responsible gaming, fair play, and consumer protection,” American Gaming Association Vice President of Government Relations & Gaming Policy Jessica Feil said in a statement.
The “Get Gaming Right” coalition represents seven of the state’s 11 casinos—MGM Northfield, JACK Cleveland, and JACK Thistledown, and Penn’s two Hollywood branded casinos in Toledo and Columbus and two racinos.
The coalition said the casinos and racinos contribute $343 million annually to education through video lottery payments.
The group cited an independent study by Spectrum Gaming Group that found a distributed gaming model, such as Illinois, Pennsylvania, and West Virginia, increases gaming opportunities, but causes a decrease in state and education tax revenue.
The state House legislation under question has nine sponsors, eight Republicans and one Democrat. According to CDG Gaming Reports, it would require a licensed distributor or manufacturer of bingo supplies to obtain an “electronic instant bingo endorsement” in order to distribute or manufacture electronic instant bingo systems.
The legislation also requires a manufacturer to submit the electronic instant bingo system to an independent testing laboratory and to Ohio’s Attorney General for approval before the manufacturer can provide the system for use in the state.
“Right now, these machines are not authorized at all, so there is no regulatory regime in place,” AGA’s Feil said in an email statement to CDC Gaming Reports. “The proposed legislation attempts to create a regulatory system, but it falls woefully short of requirements necessary to keep consumers safe. It does not provide for game testing or responsible gaming measures that ensure fair game play and keep consumers safe.”
Feil added that the tax rate “is well below that of comparable machines at regulated casinos, which undermines the casino gaming industry and in turn impairs tax revenue flowing to the state.”
