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Ellen Belcher is the Dayton Daily News opinion pages editor. She writes about state government, education, the environment, higher education and all things Dayton.
Martin Gottlieb is an editorial writer and columnist for the Dayton Daily News opinion pages. He focuses on the political process itself and does such national issues as war, the economy, taxes and Social Security, as well as a hodge-podge of local and state issues.Home > Blogs > A Matter of Opinion > Archives > 2010 > June > 08 > Entry
Editorial: Lawmakers taking orders from casinos
Ohio is not off to a confidence-inducing start with casino gambling.
Last week the legislature was deciding — at 3 a.m. — rules that will apply to the state’s four soon-to-be-built casinos. Lawmakers had missed a midnight June 3 deadline to make start-up rules for casinos going up in Cleveland, Columbus, Cincinnati and Toledo.
If this is how the gaming industry is going to be regulated, the good times are going to roll for enterprises that make money when their customers lose.
Take the business of disclosure:
If a state is serious about regulating gaming, there has to be disclosure about who stands to profit. The public is entitled to know this sort of information, but disclosure also keeps lawmakers and regulators honest. If ownership information is private, what’s to prevent, say, lawmakers or regulators from creating rules that make their friends rich?
Initially, the plan was to require disclosure of anyone who had more than a 5 percent interest in the casinos. Then there was talk about making the threshold 3 percent for Dan Gilbert’s privately-held Cleveland and Cincinnati casinos, and 5 percent for Penn National’s two casinos.
A publicly traded company, Penn National is subject to accounting and disclosure checks and balances through the Securities and Exchange Commission that don’t apply to Mr. Gilbert’s operation.
Sen. Timothy J. Grendell, R-Chesterland, argued that that wasn’t enough and pushed for a 1 percent cut-off. Gaming representatives said that was ridiculous for Penn because its stock is constantly being traded, and no one could keep up with the record-keeping.
Sen. Grendell, until Tuesday when he was contacted by a journalist, thought he had prevailed in getting a 1 percent limit for Rock Ventures, which is run by Mr. Gilbert, the majority owner of the Cleveland Cavaliers. He misunderstood the rules in the final legislation.
Sen. Grendell is not alone in being confused. Sen. Jon Husted, R-Kettering, said he refused to vote for the bill because the middle-of-the-night changes were flying so fast.
Bob Tenenbaum, a spokesman for the casino interests, said the industry had no position on what the disclosure limits should be. That wasn’t the message lawmakers got. Sen. Husted scoffed at his contention.
And if the industry didn’t object, how is it that the 1 percent proposal isn’t the law?
Ordinary people should be able to count on good-government rules being the norm. They shouldn’t have to worry that the public interest isn’t being protected. It’s hard to fathom how transparency and public disclosure aren’t important, especially in an operation that asks customers (and the public) to trust them not to steal anybody blind.
Plenty of states have gone ahead of Ohio in allowing gambling. Their experience can prevent mistakes from happening here. But making decisions on the fly, at the behest of the people being regulated, just invites scandal and embarrassment.
Surely, lawmakers know that they aren’t going to get the best advice from people who are eager to roll right over them.
Permalink | Comments (6) | Post your comment | Categories: Editorials, Ellen Belcher, Ohio government, Ohio politics
Comments
By tommyv
June 9, 2010 8:32 AM | Link to this
Martin: You better watch out what you ask for…you just might get it. You on the left wanted these casinos, now you are concerned that they won’t “act publicly” enough for you. Hey Martin, these are private entities, not state agencies. Then you have the gall to comment about “helping their friends.” Hey Martin, this is all dirty money to start with. Do you think the state will have enough laws to launder this money? Think again…you wanted it and you got it.
By Get advice
June 9, 2010 10:00 AM | Link to this
Idea!! Ohio could contact the Nevada Gaming Commission, see how they have all the rules/regs. set up, and duplicate them in Ohio. Naw…we want to walk into a gunfight with a slingshot. Cash is king in Columbus, and if the thieves there can set it up to funnel money out to themselves/cronies without the dummy constituents knowing…why not?? Set the rules up as we go along, change them during the game, and confusion (with an illegal cash outflow to “friends”) will follow. Simple business practices are not allowed in Ohio.
By Get advice
June 9, 2010 10:05 AM | Link to this
Idea!! Ohio could contact the Nevada Gaming Commission, see how they have all the rules/regs. set up, and duplicate them in Ohio. Naw…we want to walk into a gunfight with a slingshot. Cash is king in Columbus, and if the thieves there can set it up to funnel money out to themselves/cronies without the dummy constituents knowing…why not?? Set the rules up as we go along, change them during the game, and confusion (with an illegal cash outflow to “friends”) will follow. Simple business practices are not allowed in Ohio.
By Max
June 9, 2010 10:58 AM | Link to this
I guess I’m just a simple-minded taxpayer. WHY were not the ‘rules’ established a long time ago? Where has the legislature been all this time?
By Max
June 9, 2010 11:08 AM | Link to this
“Gaming representatives said that was ridiculous for Penn because its stock is constantly being traded, and no one could keep up with the record-keeping.” Is it just me but isn’t this the same line of thought presented to a sub-committee by Goldman-Sachs? Husted just ‘scoffed?’ This is NOT what the voters passed on the ballot…….DDN, great job on this one!
By Max
June 9, 2010 11:51 AM | Link to this
Get Advice: I don’t ‘get it’ either. Maybe this whole thing should be presented to the voters AFTER the details are worked out. This stinks.