Rules strike out gaming machines

There are no standards for law enforcement to apply when determining whether a device is chance- or skill-based.

By MARC KOVAC

VINDICATOR CORRESPONDENT

COLUMBUS — Gov. Ted Strickland established new administrative rules Wednesday that more clearly define legal amusement games and make it illegal to operate so-called skill-based machines that pay cash prizes.

And Attorney General Marc Dann has sent cease-and-desist order to hundreds of known or suspected operators of such machines — and is giving them three days to get the units off their premises.

“If they need to borrow my pickup truck to move them out of the public domain, they’re welcome to do that,” Dann said during a press conference in the governor’s Cabinet Room at the Statehouse. He added, “I think three days is more than enough time to do that.”

The move is the latest attempt by the Democratic officeholders to, in Strickland’s words, “turn back the tide of illegal gambling machines which are coming across Ohio’s borders every day.”

In June, the governor and attorney general called for a ban on cash payouts and strict limits on vouchers from electronic, skill-based amusement machines. At the time, they asked Republican leaders in the state House and Senate to consider stand-alone legislation or an amendment to the biennial budget to stop what they called the proliferation of unchecked gambling in bars and storefronts.

The Legislature did not include the suggestion in the two-year budget, nor have any bills been introduced on the issue this session.

In the past six months, the number of skill-based machines has more than doubled, to about 50,000 from 20,000, Strickland said. But getting a firm grasp on the exact number is difficult, as operators, manufacturers and distributors are not required to inform the state of their use. “The machines aren’t registered in any way, shape or form,” said Leo Jennings, a spokesman for Dann.

What’s being done

The attorney general’s office is sending about 700 cease-and-desist letters to locations suspected of operating the units. The office declined to release the names of expected recipients, stating that the information is part of an ongoing investigation.

The names have been compiled over time, through contacts with local law enforcement, Jennings said. In some cases, operators have called the attorney general’s office seeking information on licensing.

“We’re in no way saying we got them all,” Jennings said. “There could be many, many more locations than we mailed letters to today.”

There are several establishments operating the machines in the Mahoning Valley area. Owners of businesses that operate the machines in Brookfield, Austintown and Boardman did not return calls seeking comment about the ruling late Wednesday evening.

An employee at one Austintown-based business said businesses offering the machines “have been through all this before.”

Austintown Police Chief Bob Gavalier said his department is not going to be involved at this point in what is a civil action under the Consumer Sales Practices Act.

There are civil, not criminal, penalties for violations. The attorney general can seek a civil penalty of $25,000.

Gavalier said, though, that if an establishment continues to use a machine, police can enforce gambling laws.

He said he is unsure how the attorney general will check to see whether establishments have complied with the emergency ruling. He said the Ohio Bureau of Criminal Identification and Investigation or local police departments may be asked to check for compliance.

The attorney general has said that there are no standards for his office or law enforcement to apply when determining whether a device is chance- or skill-based. The former are illegal in the state, while the latter are allowed.

Locations

The governor’s office early Wednesday evening released a series of public records from the Ohio Department of Public Safety that listed some of the likely locations of the games.

The executive order signed by Strickland and the resulting changes to Ohio’s Administrative Code allow the continued use of legitimate skill-based games, including machines at amusement parks or popular pizza chains, provided they award merchandise prizes or vouchers that can be exchanged for prizes. Cash, gift cards, lottery tickets, firearms, alcoholic beverages and tobacco products are prohibited.

Users’ skills also must be involved in the outcome.

“It is an unfair and deceptive practice to tell Ohio consumers that they are playing a legal machine when in fact the machines they are playing are illegal gambling machines,” Strickland said.

Dann added, “If it looks like a slot machine, if it sounds like a slot machine, if it pays out cash, it’s a slot machine in Ohio. Calling [it] something else ... will no longer be tolerated.”

The attorney general added that anyone violating the rules and operating illegal gambling machines will face criminal charges and potential civil penalties of up to $25,000.

Public hearings

Strickland’s executive order authorized Dann to implement the new administrative rule on an emergency basis. They’ll be in place for the next few months, giving the state’s Joint Committee on Agency Rule Review an opportunity to make them permanent. Four public hearings on the issue have been scheduled in Tiffin, Canton, Parma and Washington Court House.

“We ought not to let additional time pass before we address [it],” Strickland said. “Going from 20,000 estimated machines up to 50,0000 in a very short period of time shows that this is an issue that deserves immediate attention.”

Strickland and Dann also again asked the Republican-led Legislature to take action to further codify the changes, a move that would give the rule change stronger standing if challenged in court.

“We’re talking about something that is very important to the state of Ohio, that is very lucrative to certain interests, and we believe that it is unlikely that they will give up without a strong fight,” Strickland said.