This is how it starts

The groundwork is being laid for taxpayer bailouts. When revenues diminish, the Gambling Investors will seek reduced taxes and other give me's, before seeking bankruptcy protection because of the market saturation they've caused.

In their wake, they'll leave crime-ridden communities destroyed by Gambling Addiction. The Race to the Bottom!


Racinos in neighboring states brace for competition when Cleveland casino opens
Published: Friday, April 06, 2012
By Thomas Ott, The Plain Dealer

CLEVELAND, Ohio -- A company that owns two border-state racetrack casinos is girding to take a big hit after Cleveland and Ohio get into the gambling business next month.


Documents that MTR Gaming filed recently with the federal Securities and Exchange Commission warn that Ohio's move to allow casino gambling and let horse tracks install video slot machines could "negatively impact" Presque Isle Downs and Casino near Erie, Pa., and Mountaineer Casino, Racetrack and Resort in Chester, W.Va.

Ultimately, MTR says, the lost business could hinder attempts to obtain financing and make improvements at the company's Columbus race track, Scioto Downs. A "racino," the industry term for racetracks with slot machines, is to open there next month.

The company reported that Ohio bettors plunked down nearly half the money wagered on slot machines at Presque Isle in the second half of 2011.

Gamblers from Cuyahoga County spent 20 percent of the money spent on slots in the third quarter, a breakdown shows.

And, Ohio gamblers bet three-fourths of the money wagered on slot machines at Mountaineer in the second half of 2011, MTR reported. The third-quarter breakdown shows that 8 percent of the money came from Cuyahoga County but does not give an accounting for other Northeast Ohio counties. [They track their customers!]

"We're poised and ready to compete," Fred Buro, MTR vice president and chief marketing officer, said in an interview. "We're also very realistic. We know there's going to be some adjustment in the market."

Horseshoe Casino Cleveland presents a direct threat, along with two, and possibly three, potential Northeast Ohio racinos. In all, slots could be installed at all seven of the state's race tracks.

The Horseshoe is to open May 14 in downtown Cleveland, making it the first of four Ohio casinos to welcome visitors. The others are being built in Cincinnati, Columbus and Toledo.

On Monday afternoon in Erie, Presque Isle drew a modest crowd, with a license-plates in the parking lot indicating that Ohio customers did their share to make the turnout respectable.

Bill and Diane Tucker of Middleburg Heights visit Presque Isle about once a week, driving more than 200 miles round trip, and play the slots for five or six hours. That will stop when the Horseshoe opens.

"We're going to go to Cleveland," said 54-year-old Bill Tucker, a third-shift mechanic at a trucking company. "It's closer to home."

Newburgh Heights residents Joan Kuchta, 51, and Annmarie Lee, 71, go three times a week. They might return occasionally after the Horseshoe opens but look forward to gambling in Cleveland and saving on gas money.

Joanne Bortner, a Presque Isle customer from nearby Meadville, Pa., has cousins who travel to Presque Isle regularly from their home in Cleveland's east suburbs. She may have to soon head to Ohio if she wants to gamble with them.

"They won't be making the trip if they can have it in their own state," she said.

Hotels clustered near the racino at the State Street interchange of Interstate 90 depend on Ohio residents for up to half their traffic, employees say. The employees hear buzz about the Horseshoe as gamblers wait for hotel shuttles.

"I've even had people come out and say, 'You're going to lose business," said Cindy Szymanski, a "guest care coordinator" at a Days Inn.

MTR, which advertises Presque Isle with outdoor signs in and near downtown Cleveland, is not throwing in the towel, Buro said. He said the company has a marketing strategy planned for after the Horseshoe opens, but he would not disclose details.

MTR could capitalize on gamblers' preferences. For example, Presque Isle allows smoking in half of the casino; Ohio law bans smoking at the Horseshoe and the state's other casinos.

Caesars Entertainment, which is a minority partner in the Horseshoe with Dan Gilbert's Rock Gaming LLC and will operate the casino. Horseshoe General Manager Marcus Glover said casino officials think distance from the competition could diminish smoking's sway.

Gamblers also will have a choice between Presque Isle's rural location and sea of parking and Horseshoe's site on Public Square in the heart of the city. Cleveland Police Chief Michael McGrath has outlined a comprehensive plan for dealing with crime and traffic, but perception can be powerful.

"Some people say, yeah, they're going to try it," said Judy Powell, general manager of a Super 8 hotel near Presque Isle. "Some say they'll never go to downtown Cleveland."