Ohio Casino's Thread

[paddio]

Casino slots to pay out 85%
Ohio bills would ban smoking, free drinks, 2:30-5:30 a.m. booze
Wednesday, May 19, 2010 2:52 AM
By James Nash
THE COLUMBUS DISPATCH


Would-be Ohio gamblers can rest easy: The slot machines at the state's four casinos will pay back, on average, at least 85 percent of the money people put into them.

Gamblers at new casinos in Columbus, Cleveland, Cincinnati and Toledo will be able to drink until 2:30 a.m., but none of the booze will be free. They won't be able to smoke.

The state's gambling industry will be overseen by a new commission whose seven members will be appointed by the governor to four-year terms and make $60,000 a year for part-time work.

Those are a few common provisions in bills introduced Monday and yesterday in the state Senate and House on how to govern casinos scheduled to open in 2012 and 2013. The governor must sign a final bill before the rules go into effect.

Many of the rules were contained in the constitutional amendment voters approved last year to allow gambling, and others have been outlined by lawmakers this year.

The payout percentage, however, is new. Slots gamblers will, on average, get back at least 85 cents on every dollar they wager - a percentage in line with minimums in other states. Pennsylvania and Florida also require an 85 percent average payout, while Michigan and Nevada require 75 percent.

Practically speaking, most slot machines return a higher percentage. On the Las Vegas strip, for example, quarter slot machines paid back 92 cents on the dollar, according to Nevada gambling regulators.

Ohio casinos probably will pay back more than the minimum if there's competition, said William N. Thompson, a University of Nevada at Las Vegas professor and gambling expert.

Each of the state's four casinos will have its market to itself, unless the state goes forward with plans for video slot machines at horse-racing tracks. Those machines, to be run by the Ohio Lottery, also would pay back at least 85 percent, the lottery said.

"If people have any choice, it's going to have to be at least 90 (percent) for competitive reasons," Thompson said.

Penn National Gaming Inc., which will operate casinos in Columbus and Toledo, will determine payouts based on the final regulations and market competition, spokesman Eric Schippers said.

Lawmakers have until June 3 to adopt rules on the casinos. The Republican-run Senate introduced its own version Monday after failing to come to terms with the Democrat-run House on a few items. The House released its version yesterday.

The House version would earmark the $200 million in licensing fees the state is expecting from the four casinos: The largest shares would go toward an urban workforce initiative ($70 million), a workforce guarantee program ($60 million) and a co-op/internship program ($60 million).

The Senate is silent on earmarking of licensing fees.

The House version also would require the casino operators to submit annual plans outlining their efforts to achieve ethnic diversity among contractors and employees. Senate Republicans did not include diversity provisions because the casinos are private businesses.

Both versions prohibit complimentary drinks and any alcohol sales between 2:30 and 5:30 a.m., defying the wishes of casino operators for around-the-clock bar service.

Kearny McCarthy, spokesman for House Democrats, said he's optimistic that the House and Senate will be able to iron out their differences by the deadline.

[paddio]

Cleveland casino to open in two phases, in connected buildings
By Reginald Fields, The Plain Dealer

By this time next year, Cleveland Cavaliers majority owner Dan Gilbert wants to have a casino open and occupying the first couple of floors of the Higbee Building in downtown Cleveland.

It will just be a taste of things to come, a first phase of the main $700 million casino slated for mid-2013 near Tower City along Huron Road, The Plain Dealer has learned from city and state officials and business leaders.

The result will be two separate gambling facilities that will be connected and regarded as one casino.

"They have made a determination that because of the time it takes and because of the complications of the inner-city location, that they are going to build a casino basically in two phases," said Albert Ratner, co-chairman of Forest City Enterprises, which owns the Higbee Building and the Huron Road land Gilbert will acquire for his casino.

"The plan is to open in Higbee and expand it later on Huron Road," Ratner said Wednesday. "It will be all one casino."

But the plan requires a lot of help from state lawmakers, and one major hurdle still remains -- permission to build in phases. While the amendment voters added last year to the state's constitution allows for four casinos to be built, it does not say they can be constructed incrementally or housed in separate buildings, as Gilbert is planning.

Gilbert continues to be guarded about his plans. But details are coming out this week at the Statehouse, where lawmakers have been trying to agree on legislation that will govern the four future Ohio casinos.

Instead of calling his Higbee casino a temporary casino, it will be considered "Phase 1" of the project. He would use a walkway or some other feature to connect the Higbee casino location to the "Phase 2," or main casino building -- the gambling mecca Gilbert once promised would open as early as late 2011 but now is slated for mid-2013.

Lawmakers, who are required by the constitution to pass enabling language by next Thursday, have offered up provisions that specifically help Gilbert's phased-in approach. Casinos in Columbus, Cincinnati and Toledo are not expected to open in phases or under multiple buildings.

The Higbee Building is located at the corner of Ontario Street and Public Square in downtown Cleveland.The Ohio House and Senate on Wednesday each passed separate casino bills but with key differences. The disagreement is likely to force a conference committee to work out a compromise by next week's deadline.

State Rep. Sandra Williams, a Cleveland Democrat, amended the House's bill to state that a casino can be opened in phases "in one or more locations, buildings or rooms that are connected by walkways or by non-gaming amenities that together constitute a single casino facility."

The Senate, however, declined to include such a provision, placing Gilbert's plans in jeopardy for now.

Asked about the possible roadblock, Bob Tenenbaum, a spokesman for Gilbert on the legislation, said, "I think that is speculative," noting the conference committee could change it. He added, however, "having that language is very helpful."

Valarie McCall, Cleveland Mayor Frank Jackson's chief of governmental affairs, has also lobbied lawmakers this week on behalf of the city. The sooner a favorable bill is passed, the better for Cleveland, she said.


"Phase one will almost immediately allow us to have some kind of casino operation in the city of Cleveland, to start creating some jobs. We need that," McCall said. "Because we know the Cleveland casino will be the last casino to come online, but we want it to be the best."

McCall said the potential for jobs from the Phase 1 casino and the Medical Mart project could be a huge boost for Cleveland's economy.

Officials would not say how large the Phase 1 casino would be or how many jobs it could create.

The House and Senate did give Gilbert one victory on Wednesday, agreeing that the $250 million in private investment promised for each of the four casino locations will not all have to be spent immediately. For Gilbert, that means he would not have to spend that amount on just the Higbee project, should he be allowed to go forward with a Phase 1.

And lawmakers agreed the initial money could also be applied to land acquisition, fixtures and equipment, inventory and working capital, just as casino proponents wanted.

Gilbert will build casinos in Cleveland and Cincinnati, though he is likely to bring on a gaming company -- such as Harrah's, which this week finalized its purchase of Thistledown -- to run his gaming operations. Penn National Gaming, a Pennsylvania company, is building casinos in Columbus and Toledo.

Land has already been acquired for the casinos in Columbus, Cincinnati and Toledo but not yet in Cleveland.

Gilbert has called the negotiations with Forest City complicated but said the discussions are positive. Ratner agreed. He added one major holdup is parking.

"The problem is how do we figure out the parking," Ratner asked. "They have so many cars, we have so many cars."

Plans for a multi-level parking complex are still being discussed, Ratner said.

As for lawmakers, there remain significant differences in the bills passed by the Democratic-controlled House and Republican-controlled Senate. And both bills passed largely along party-lines, highlighting the divide.

One involves a diversity plan the House wants that would require the casino operators to hire a percentage of minorities. The Senate has said it doesn't want to legislate the hiring practices of private companies.

The House also wants to earmark the $200 million in license fees ($50 million per casino location) for job training programs. The Senate has said it can wait to appropriate those funds later, possibly during the next budget cycle.

And the House wants to expand charitable gambling with poker rooms and more church and fraternal hall bingo games. Senate leaders said the constitution requires rules for the four casinos only, not for expanding other forms of gambling, too.

[paddio]

I like the idea of a temporary casino in Cleveland opening within the next year....the Higbee building would work well until the actual building is done.

[agube]

okay...just get something up and running...

[Sack]

okay...just get something up and running...

How long do you think it takes to build one of these? It's not like building a deck.

[paddio]

Casino to seat 3,800 players
Report reveals plans for 3,000 slots, 100 tables
Thursday, July 29, 2010 02:54 AM
By Mark Williams
THE COLUMBUS DISPATCH


The $400 million casino planned for the West Side will be among the biggest operated by Penn National Gaming.

If every seat in the place were filled at Hollywood Casino Columbus, about 3,800 gamblers would be making bets at 3,000 slot machines, 70 table games and 30 poker tables, according to a regulatory filing this week. The company has spent $75.8 million so far at the old Delphi site in Columbus.

"For a regional casino, it's a very good size," said Alan Woinski, editor of the Gaming Industry Daily Report newsletter in New Jersey.

Penn National, based in Wyomissing, Pa., has yet to say how many jobs will be created by the casino or how much revenue it expects to bring in.

The campaign to add casinos in Columbus, Cleveland, Toledo and Cincinnati estimated combined total revenue at $1.8billion a year.

The size of some other Penn National casinos provides clues on how much money the Columbus casino alone might generate.

Penn National's biggest casino in terms of revenue during the second quarter was the Hollywood Casino at Charles Town Races in West Virginia. The casino generated $112 million in revenue in the second quarter, or nearly a fifth of the company's revenue, according to the filing.

That casino has 5,000 slots, 85 table games and 27 poker tables, according to the company's website.

The Hollywood Casino Lawrenceburg in Indiana - with its 3,000 slot machines, 88 table games and 41 poker tables - brought in $110 million in the quarter.

The Columbus casino has an advantage over some of Penn National's other operations, which started out with perhaps a race track, then added slot machines and table games.

"You're starting right off the bat in Ohio with what it took years to develop on other properties," Woinski said. "Ohio is a very good state because it's kind of an untouched state."

He also said Penn National has been smart about building its casino business in Columbus. The company just completed its purchase of Beulah Park race track in Grove City, which will be getting slot machines along with six other racetracks in the state.

Beulah will give Penn National "temporary facilities until the main event opens up," he said.

The deal for Beulah also eliminates a competitor to the casino, he said.

Whether the Columbus casino is expanded to include a hotel or more gambling and how soon will depend on its success, Woinski said.

Hotels bring in more affluent customers who spend more on nongaming activities, he said.

Penn National's investment at Hollywood Casino Toledo will be $300 million with space for about 2,600 gamblers. The casino will have 2,000 slot machines, 60 table games and 20 poker tables, according to the filing.

The casino proposal approved by Ohio voters requires the two companies building them to invest at least $250 million at each of the four casinos that the state will get. Each also will pay a $50 million initial licensing fee.

[Sack]

Drove by the old Delphi plant this morning...it's completely leveled. Casino should start going up soon!!!

[paddio]

Drove by the old Delphi plant this morning...it's completely leveled. Casino should start going up soon!!!

HELL YEAH!!!

[paddio]

Dan Gilbert reaches preliminary deal with Las Vegas-based Harrah's Entertainment to run casinos in Cleveland and Cincinnati

Reginald Fields, The Plain Dealer

COLUMBUS, Ohio -- Cleveland Cavaliers majority owner Dan Gilbert today announced that he has reached a preliminary agreement with Las Vegas-based Harrah's Entertainment to manage and handle day-to-day operations of both his Cleveland and Cincinnati casinos, slated to open in 2012 or 2013.

Gilbert also announced that Harrah's, the world's largest gaming company, will be a minority owner of the casinos but Gilbert's company, Rock Gaming LLC, will maintain majority ownership.

"After a thorough evaluation, our team is certain that Harrah's top-notch and innovative management team is completely aligned with our unwavering commitment to create and deliver projects that embrace and interact with the downtowns they serve," Gilbert said in a statement. "Our partnership will positively impact surrounding businesses while stimulating new growth in the urban cores of Cleveland and Cincinnati."

Gary Loveman, chairman, CEO and president of Harrah's Entertainment, added, "Harrah's shares a common vision with Rock Gaming to develop and manage first-class urban-based casinos that will be a catalyst for economic expansion and job creation in both markets."

The deal between Gilbert and Harrah's had been expected for much of this year, though neither side would confirm they were in negotiations. The relationship between Gilbert and Harrah's became clear in June when the Ohio State Racing Commission approved the $43 million sale of Thistledown race track in North Randall to Harrah's.

Before the commission's vote, a Harrah's executive told the commission that Gilbert's company had a contingency agreement to buy a piece of Thistledown. Ohio wants to allow slot machine gambling at each of the state's seven horse racing tracks, which helps explain Harrah's and Gilbert's interest in the track at a time when they are developing what figures to be far more lucrative full-scale casinos.

Harrah's is expected to include Thistledown into the overall Cleveland gaming plans if Ohio moves forward with plans to allow slot machines, or video lottery terminals, according the statement from the two companies.

Another issue that is key to the development of the Cleveland casino is negotiating a deal to purchase the land needed to build the facility. The land and property where Gilbert plans to build is currently owned by Forest City Enterprises.

Gilbert plans to construct the $700 million casino near Tower City along Huron Street. He has contemplated opening a phase one casino in the Higbee Building at the location and then later connecting it to a main facility on Huron Street, Albert Ratner, co-chairman of Forest City, which owns the Higbee Building and the Huron Street land, told The Plain Dealer in May.

In today's release, Gilbert and Harrah's do not appear to have fully committed to the phase 1 idea. "Should it be concluded that a phase I casino is a viable undertaking, the companies project a 2011 opening and the creation of up to 1,500 jobs in the initial phase," the statement reads.

The permanent facility, however, is still not expected to open until mid-2013.

Gilbert's announcement comes just an hour after Penn National Gaming announced this morning it had formally broken ground on a $250 million casino in Toledo. Penn is also building a casino in Columbus.

Gilbert and Penn teamed up last year on Issue 3, the constitutional amendment that voters approved which formally allows gambling in Ohio but only at the four specific locations now controlled by Gilbert and Penn.

In the gaming world, Harrah's and Penn are competitors. And like Harrah's, Penn could soon own two Ohio horse racing tracks outfitted with slot machine gambling.

Toledo Breaks ground first

[paddio]

Dan Gilbert, Forest City reach deal on land for Cleveland casino
Published: Thursday, August 19, 2010, 10:30 AM Updated: Friday, August 20, 2010, 1:16 AM
Reginald Fields, The Plain Dealer

COLUMBUS, Ohio — Dan Gilbert finally has a deal to buy the land where he wants to build his Cleveland casino.

"We're very excited that we have achieved another milestone in the march toward getting shovels in the ground and a first-class casino built in downtown Cleveland," the Cleveland Cavaliers majority owner said in a statement Thursday.

Gilbert announced he had reached agreements with Forest City Enterprises to purchase 16 acres downtown, including the rectangle-shaped parking lot along Huron Road between Ontario and West 6th streets behind Tower City.

The lot is likely where the casino will be built, according to Gilbert's spokeswoman, Jennifer Kulcyzcki, who said the gaming facility would have entrances along Huron and at the corner on Ontario near Quicken Loans Arena where the Cavaliers play.

Gilbert is also acquiring a J-shaped lot that wraps around the Cuyahoga River's collision bend, a parking area known as Riverview, just below the Huron Road lot and Canal Street. This piece of land abuts the Tower City Amphitheater.

In all, the deal involves four parcels of land owned by Forest City. Financial terms were not released.

"The casino is an important project for Cleveland and the entire Northeast Ohio region and today's agreements are major milestones moving forward," said Forest City president and chief executive officer Charles A. Ratner, in a statement his company released announcing the deal.

Gilbert and Forest City also announced they had reached a multiyear lease deal for Gilbert to rent space in the Higbee Building, another property owned by Forest City, for a potential start-up casino that could open next year.

In April, Kulcyzcki said the complicated negotiations between Gilbert and Forest City for the land meant the Cleveland casino would not be open until mid-2013, much later than had been promised to voters who approved a constitutional amendment allowing four new casinos for Ohio.

Gilbert then said he hoped to open a "Phase I" of his casino as early as next year in the Higbee Building and later connect it to the main casino on Huron Road. Gilbert still does not seem certain about plans for the start-up casino.

Kulcyzcki on Thursday said Gilbert is still "exploring the Phase I opportunity." Without it, Cleveland could be the last of the four Ohio cities to get a casino.

Last November voters approved Issue 3, a constitutional amendment that gave Gilbert the right to build casinos in Cleveland and Cincinnati and allows Penn National Gaming of Pennsylvania to open casinos in Columbus and Toledo.

casino graphic.jpgView full size

Land agreements for the other three cities have already been complete and construction is underway in Toledo. The other casinos are expected to open in 2012.

The amendment included specific details about the casinos, including parcels of land on which they would be built.

So the land for the $700 million Cleveland casino was already locked in prior to the November vote, but final terms for acquiring the parcels needed to be negotiated between Gilbert's Rock Gaming company and Forest City.

After Gilbert announced last week that he had reached a preliminary agreement to partner with Harrah's Entertainment -- the largest gaming company in the world -- to run his casinos, Forest City board co-chairman Albert Ratner predicted a deal for the land would get done quickly, and it has.

Gilbert is expected this fall to finalize agreements with Harrah's as a minority owner and with Forest City for the land. It is still unclear when construction will start on the casino.

Harrah's also recently agreed to buy Thistledown racetrack in North Randall for $43 million. A Harrah's executive has told the Ohio State Racing Commission that Gilbert's company had a contingency agreement to buy a piece of Thistledown.

Ohio is attempting to allow slot machine gambling at the state's seven horse racing tracks, which helps explain Harrah's and Gilbert's interest in the track at a time when they are developing full-scale casinos. If slots are approved, they could be installed within months.

Harrah's is expected to include Thistledown in the overall Cleveland gaming plans if Ohio moves forward with the slots plan, according to last week's announcement.