Chief: Fire dept. to close

August 27, 2008 at 5:38 am · Filed under Online Gambling

A Swoyersville fire chief said his volunteer hose company is being forced to close by authorities because its state-issued licenses to hold bingo games and sell bingo pull tabs to raise operating funds have been revoked.
“(The state) came in November and basically shut us down,” James Pugh, fire chief for Swoyersville Volunteer Hose Co. No. 1, said. “They’re basically bankrupting us. Nobody in the fire company can get a bingo license.”

The state alleges that more than a half million dollars is missing from the hose company, which the chief denies.

Pugh said the fire company has raised anywhere from $100,000 to $150,000 a year from bingo games and selling bingo chance cards.

The hose company has been prohibited, Pugh said, from hosting bingo games because of an on-going investigation of missing funds.

A search warrant and affidavit filed in Luzerne County Court on Monday indicates more than $558,390 is missing from the hose company.

State police at Wyoming and the Luzerne County District Attorney’s Office obtained the search warrant on Aug. 21 for gambling records from six Atlantic City, N.J., casinos.

Authorities are seeking the casino records belonging to Catherine Drago, who Pugh and the search warrant identified as the hose company’s treasurer. Drago, 77, of Forty Fort, couldn’t be reached for comment on Tuesday.

“This has been an ongoing situation for our fire company for more than two years,” Pugh said. “They’re embarrassed and on a fishing expedition.”

According to the search warrant and affidavit:

Drago submitted an incomplete application to the state Department of State, Bureau of Charitable Organizations, in December 2005 to register the hose company as a charity.

The Bureau of Charitable Organizations conducted an audit of the hose company, the search warrant affidavit says, and found $558,390 in unaccounted income.

The audit showed a total income of $1.32 million, with $765,593 in deposited income at a bank, the search warrant affidavit says.

The search warrant affidavit revealed Drago and her daughter, Carol Gamble, president of the hose company, had issued $416,077 in checks to themselves from January 2004 to September 2006.

More than $285,100 had been returned to the hose company, leaving $130,954 unaccounted from checks that had been written to Drago and Gamble, the search warrant affidavit says. Pugh confirmed that Drago and Gamble are under investigation by authorities.

He added that Drago had the hose company’s finances audited. That showed a discrepancy of 26 cents, but he couldn’t recall when that audit was performed.

“We have no big money missing from the fire company,” Pugh said. “The state came in and they shut us down and made copies of all our records. They confiscated everything, every bingo record. They can’t find anything; they’re embarrassed.”

The search warrant was obtained after authorities searched Drago’s residence and discovered casino courtesy cards to Bally’s, Trump, Clairage, Tropicana, Hilton, Showboat, Sands and Caesars casinos, according to the affidavit. The search warrant permits authorities to obtain Drago’s gambling wagers.

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Omega Commercial Finance Hires VP of Marine Operations for the Omega Royale Casino Vessel

August 25, 2008 at 9:04 am · Filed under Online Gambling

Omega Commercial Finance Corporation (OTCBB:OCFN), the parent company of “Omega Royale” is pleased to announce the appointment of Captain Donald Mathias as Chief Captain and VP of Marine Operations. Captain Mathias brings over 25 years of experience in the cruise, transportation and travel industries on a global level.

Between 1975 and 1980, Captain Mathias served as General Manager of Fred Olsen Lines, based in Oslo, Norway. During that period he designed numerous vacation programs for leading travel companies worldwide. He also assisted in the development of hotel programs at numerous major hotels and three leading European based cruise lines. He was also the driving force between European and North American passenger onboard programming.

Subsequently, Captain Mathias held the position of General Manager for the prestigious Royal Caribbean International Fleet. In this position, he managed well over 500 personnel through 14 departments and raised quality control standards allowing the company to continually exceeded passenger expectations. In the construction aspect of vessels, Captain Mathias was the Executive Vice President of Samsung Heavy Industries at their shipyard in South Korea. He proudly held the position as the only foreign manager ever employed at that time. He was responsible for the company’s special project division which included the building of Cruise and Ferry vessels.

In 1984, Captain Mathias was recruited by Premier Cruise Lines and hired as the Senior Vice President of Operations. He was responsible for approximately 2,500 personnel. His responsibilities included recruitment, budgets, training and product delivery. He also oversaw all government requirements and procedures. By 1990 he had overseen the rebuilding, conversion, and refurbishment of four of the fleets cruise vessels, including USPH implementation, safety and manual procedures.

Later in 1990, Captain Mathias joined the Lelakis Group of Athens Greece, becoming the Senior Executive Vice President, with responsibilities for the shipboard and shore side facilities of 14 cruise ships and 27 hotels.

In 1993 Captain Mathias became the Executive Director of the Cruise Industry Institute for the Hospitality Management Center at Nova Southeastern University, Ft. Lauderdale, Florida. He held this position while simultaneously holding the position of Adjunct Professor and Executive Director of Development for Keiser College, Miami, FL.

As previously announced, the “Omega Royale” will be a 100,000 sq. ft. ultra luxurious resort style casino vessel equipped with a 49,000 sq. ft. state-of-the-art casino that will include approximately 500 player tracking slot machines and 64 table games consisting of Baccarat, Black Jack, Craps and Roulette. The plush style casino will be spread over four decks, which will be connected via elevators and escalators. A complete Vegas Style Sports Book will afford gamblers the opportunity to wager 24 hours a day on various sport competitions. Resort style amenities such as multiple lounge venues, a Grand Show Room with headliner & production shows, expansive outdoor decks with several unique dining options will adhere to the wide range of gamblers the ship expects to draw. Special attention shall be paid to the ships VIP facilities. The company anticipates including luxury suite accommodations, a VIP lounge, a world-class Asian spa, business conference facilities and retail boutique shops. High Rollers will also enjoy the luxury of having the ability to fly in on the vessels VIP heliport.

Additionally, through strategic planning, the company has identified an unprecedented way to turn over its gambling clientele several times a day without the vessel having to leave its international waters.

The use of two catamaran shuttles will give the company the ability to transport up to 300 gamblers less than 60 minutes allowing the casino and its operations to run at full capacity virtually 24 hours a day. This unique ability to sustain constant gambling operations mixed with the vessels 2,000 passenger capacity should allow for a consistent revenue stream for the company and its operations.

Jon Cummings, CEO, stated, “We are very pleased with the appointment of Captain Mathias. Our ability to bring in management of his class is a testament to the value of our project. We look forward to utilizing his multi-faceted expertise in achieving the preliminary work and complex operation of this vessel.”

Safe Harbor

This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of Omega Commercial Finance Corp., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond Omega Commercial Finance Corp.'s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in Omega Commercial Finance Corp. filings with the Securities and Exchange Commission.

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Casino opponents say loopholes open door for more

August 25, 2008 at 8:51 am · Filed under Online Gambling

Language on the gambling ballot initiative for a casino in Clinton County contains loopholes that could wipe out its proposed tax benefits and lead to more casinos in the state, opponents of the measure said Friday.

Beachwood, Ohio-based MyOhioNow.com’s Issue 6 measure for the November ballot, proposed in cooperation with Minneapolis-based Lakes Entertainment Inc., calls for Ohio’s first casino to be developed midway between Columbus and Cincinnati in Clinton County. Under their proposal, the $600 million casino’s revenue would be taxed at a 30 percent initial rate, distributing funds throughout Ohio’s 88 counties.

The language also states, however, that the casino could be taxed at the lowest rate of any Ohio-based casino. If an Indian casino exempt from state and local taxes goes up in the future, it could virtually eliminate the tax structure promised by Issue 6, said Melanie Elsey, legislative director for the Ohio Roundtable business group, a casino opponent.

Rick Lertzman, who heads MyOhioNow with Brad Pressman, said the ballot language states that the Clinton County casino’s tax rate could drop from 30 percent to 25 percent if a second casino is built, but voters would have to approve new tax language before the rates could slip any further.

Ohio Roundtable confirmed with the Seneca, Mo.-based Eastern Shawnee Tribe of Oklahoma’s legal counsel that the tribe has told the U.S. Department of the Interior’s Bureau of Indian Affairs it is interested in putting land in Monroe, in Butler County, and Botkins County into trusts for reservations. If a land application is submitted and approved, tribal gaming in the state is possible, Elsey said.

But Lertzman said the Indian Affairs bureau assured him that no tribal casinos can be set up in Ohio. Nedra Darling, spokewoman for the Interior Department, said she did not believe Ohio had any federally recognized land for tribes to acquire as trusts.

In the event a tribe did build an Ohio casino, Lertzman said, private and tribal casinos could not compete because the latter sit on sovereign property.

“Our petition only discusses private casinos, and we have nothing in (the language) that reflects anything with Indian casinos,” he said.

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Inside gaming: Herbst Gaming exploring all options

August 25, 2008 at 8:40 am · Filed under Online Gambling

The clock is ticking on Herbst Gaming.

The Las Vegas-based casino and slot machine-route operator is facing a Sept. 30 deadline to come up with a financial restructuring plan covering nearly $1.2 billion in debt. In March, Herbst said it was looking at a possible bankruptcy filing.

Herbst, which is privately held by brothers Ed, Tim and Troy Herbst, has Goldman Sachs exploring alternatives. The company's two outside board members are evaluating the restructuring proposals.

Everything from selling the company to disposing of assets -- Herbst has 15 casinos in Nevada and the Midwest and a 7,200-machine Nevada slot route operation -- is on the table.

"The tie-up seems to be an equity situation," Wachovia analyst Dennis Farrell said. "Who will have majority stake? What role will people play? Those questions still need to be answered."

Collapsed credit markets, declining casino values and the diminished local and national economies have eliminated talk of asset sales. The focus is on easing the company's debt burden.

"The options have faded," Farrell said. "If there is a resolution between bond holders, banks and the Herbst family, the company will come out with a much cleaner balance sheet."

Since April, Herbst executives have gone radio silent. The company announced second-quarter earnings through a Securities and Exchange Commission filing, without a conference call or statement.

A confluence of bad economic news has engulfed Herbst Gaming. In the first half of this year, Herbst lost more than $78.8 million.

A statewide smoking ban in restaurants and taverns has decimated the company's slot machine route operation. Revenues are down almost 12 percent in 2008 following a 20 percent decline in 2007.

High gasoline costs and expanding Indian casinos have cut into visitation by Southern California customers to Herbst's three Primm casinos.

Herbst paid MGM Mirage $394 million for the casinos last year, a price the company would be hard-pressed to recoup in today's economy.

"A fire sale doesn't make sense in the middle of the restructuring," Farrell said.

So what's next? The Herbst brothers may have to relinquish control to outside influences. In March, Herbst Chief Operating Officer and veteran casino executive Ferenc Szony took an expanded role over the company's gaming operations.

***

Give the Golden Nugget an A for effort. The downtown casino continues to try and find a home for televised poker on Fremont Street.

The Golden Nugget has landed the 2009 season of NBC's late night "Poker After Dark" series. Episodes will be taped Oct. 26 through Nov. 5.

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Draft casino regulations already on cabinet agenda —Jagdeo

August 24, 2008 at 11:59 am · Filed under Online Gambling

Draft regulations which have been drawn up to cater for casinos and for the establishment of a gaming authority under legislation to facilitate casino gambling should be on Cabinet’s agenda by this time President Bharrat Jagdeo said.

Asked for an update on the establishment of a gaming authority in view of the fact that at least two major investors in the tourism and hospitality sector had recently indicated that they were investing in casino facilities locally, Jagdeo told the media that he had seen the draft regulations.

“I have had a look at them. I guess by now they would have been put on Cabinet’s agenda. So I expect them to be put in place shortly… just the basic elements of the gaming authority…” he said.
Asked how soon he expected the gaming authority to be in place, he said, “I can’t tell you. It would be in a matter of weeks and months, not much longer.”

In a telephone interview early last month with the Stabroek News, one of the major investors, the new buyer of Buddy’s Interna-tional Hotel, Sudi Ozkan had told the Stabroek News that he intended to operate a casino out of the hotel at Providence, East Bank Demerara but had not obtained any licences at that time.

Ozkan said that establishing a casino would be an expensive undertaking, but he would nevertheless be pursuing it. Ozkan, who bought the Buddy’s Hotel for the sum of US$15 million, is known in Turkey, his native country, as the “Casino King.” His company operates numerous casinos worldwide, including in Belize, Suriname and St Maarten.

Ozkan, who plans to take over the full management of the hotel by October 2008, could not apply for a casino premises licence or a casino licence because the gaming authority was not yet in place and regulations would also have to be in place before the gaming authority could begin to function.

Nevertheless Stabroek News understands that equipment for the casino at Buddy’s hotel was seen being cleared by customs officials and an executive of the Buddy’s International Hotel in Port Georgetown last week.

The Gambling Prevention (Amendment) Act 2007 to facilitate casino gambling, states that licences are required for casino premises and for the operation of a casino.

The regulations for casinos come under the Minister of Home Affairs who may make them to establish the gaming authority and to give it, or authorize it to give any other body or person, any power, duty or function considered by the minister to be necessary for the administration of the issuance of a casino premises licence and the operation of a casino licence.

In January 2007 the government rushed through parliament the amendment to the Gambling Prevention Act to facilitate casino operations. This was seen as primarily accommodating a casino at the Buddy’s International Hotel and another in the Kingston area, which the investors are hoping would be under the management of the Marriott International chain of hotels.

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Gambling proposal could allow casinos, lotteries

August 24, 2008 at 8:42 am · Filed under Online Gambling

Alaska voters will be asked Tuesday whether they want to create a Gaming Commission within the state Department of Revenue, resolving a bitter fight between pro- and anti-gambling forces.
The seven-member commission would have authority to expand gambling by allowing slot machines, poker rooms, lotteries or any form of waging game.

Right now, only state legislators have that authority and they have been jockeying for years over what is right for Alaska. Should card players be able to play Texas Hold 'em for money? Should bar patrons be able to try their luck with slot machines? Should Alaska be allowed to join other states in the Powerball lottery?

Supporters of creating the commission through Ballot Measure 1 say allowing more gambling will attract tourists, keep revenue in state that is now going to Nevada or to online gambling sites, and possibly create jobs and provide additional money to the state coffers through new taxes.

"There's a lot of money involved, and it should stay here," said lawyer Ken Jacobus, who helped write the initiative for the group Alaskans for Gaming Reform. "I'm voting yes because I think it's good for the Alaska economy."

Opponents say nothing about the system is broken now, and gambling can lead to such serious societal ills as child neglect, divorce, bankruptcies and debt-driven crimes. Only lawmakers should have the power to expand it, they say. Alaskans for Gaming Reform is hoping to enact something it can't get through traditional law-making channels, they say.

BIG INDUSTRY

The seven members on the commission would be appointed by the governor and approved by the Legislature. The five voting members would serve staggered terms of five years. Only three would be needed for a quorum.

Members of Alaskans for Gaming Reform defend their initiative and say creating the commission is about regulating Alaska's existing games better, according to Christian Schneider, a political consultant hired by the group.

More than 1,000 charities, cities, education groups and other nonprofits currently benefit from gaming in Alaska, mostly through pull tabs, bingo and raffles. The $350 million industry raises $32 million for them a year, according to 2006 numbers from the Department of Revenue.
Schneider said better oversight into the game operators is needed to ensure nonprofits are really getting their fair share. "This is a call for transparency," he said.

But Johanna Bales, deputy director of the revenue department's Tax Division, which looks after gaming in the state, doesn't see better or more regulation under the ballot measure.

"This commission is given very broad power under this initiative, so you would have three individuals potentially who could decide what types of gaming can take place in the state up to a full-blown casino," she said. "There's nothing in here that sets any kind of parameters as far as I can tell."

Three years ago, the state House convened a task force to look at whether a gaming commission should be established. In the end, it decided no. It said the power to expand gaming should remain with the Legislature. It also recommended regulation of online gaming and increased prosecution of after-hour gambling establishments.

BACKED BY BAR OWNERS

Jim Minnery is president of Alaska Family Council and opposes the ballot measure. The gaming commission will have little motivation to look at the societal costs of gambling, he said. He worries about people becoming addicted to gambling, and the high depression, suicide rates and domestic violence that some studies link to the problem.

"There's a reason why they say, 'What happens in Vegas, stays in Vegas,' " he said.

One of the few details in the initiative says the commission could not allow more than five gaming machines, such as a slot machine, within one location before Dec. 31, 2012. After that date, no more than 20 gaming machines will be allowed at a bar or other location.

Bar owners, as primary funders of Alaskans for Gaming Reform, are leading the campaign for the ballot measure's passage.

The group's spokesman, Schneider, said bar owners see the loose rules and the potential for theft or embezzlement. Schneider and other supporters, however, were vague about how big that problem is.

Darwin Biwer, chairman of Alaskans for Gaming Reform and owner of the Anchorage bar Darwin's Theory, spearheaded the initiative. He said people are running raffles and taking huge "salaries" in the name of charity.

"There is no one watching the henhouse," he said.

But officials with the revenue department, including Bales, say creating a commission within their department does not crack down on illegal activity. The department has the jurisdiction to deal only with licensing issues, not criminal ones. The ballot measure wouldn't change that.

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Is McCain’s history with Indians a mixed blessing?

August 23, 2008 at 10:55 am · Filed under Online Gambling

This election year, Native Americans will have a rare opportunity to vote for a candidate who knows their issues well and has worked with them for years.

Yet, Republican presidential candidate John McCain's long history with Indian country may be hurting him as much as helping.

As a senator from Arizona, a state with more than 20 federally recognized tribes, McCain has spent two decades on the Senate Indian Affairs Committee, including two stints as chairman. But some Native Americans are angry over McCain's attempts while chairman from 2005 to 2006 to put more regulations on Indian casinos. They say he should have been more focused on Indian health care and other needs.
Some also resent McCain's decision to refuse campaign donations from tribal governments.

By contrast, Democratic presidential candidate Barack Obama, is taking their money.

McCain faces other challenges in Indian country, where Native Americans tend to vote heavily Democratic. Though Indians make up just about 1 percent of the U.S. population, they comprise key voting blocs in states where they're concentrated such as North Dakota, South Dakota, Montana, Alaska and New Mexico.

Despite his lack of background in tribal affairs — there are no federally recognized tribes in Illinois — Obama is making a big play for those votes, with lots of help from former Senate Majority Leader Tom Daschle, D-S.D., a widely respected figure in Indian country.

On the donations, McCain's advisers say tribes should spend their money on their own needs, not on politicians. But some Indians feel their money has been viewed as tainted ever since an investigation that was started by McCain found that GOP lobbyist Jack Abramoff was ripping off tribal clients.

Some tribes say they were the victims of that scandal, not participants in it, and have every right to make political donations.

McCain "couldn't claim any major legislative victories during his tenure as chairman concerning Indian country," said J. Kurt Luger, executive director of the Great Plains Indian Gaming Association in Bismarck, N.D. "He put forward a piece of legislation that would have added more burdensome regulation to our gaming industry at a time when our federal funding was at its lowest point."
To counter McCain's long history, Obama has met eight times with tribal leaders, opened campaign offices on reservations, run a radio ad in the Navajo language and released an Indian policy platform more than a year ago.

It's making an impression.

Obama has "really reached out more, I think," said A. Gay Kingman, executive director of the Great Plains Tribal Chairman's Association.
Kingman said her group hoped for a meeting with McCain when he was in South Dakota this month, but it didn't happen. The McCain campaign cites scheduling conflicts.

"We were very disappointed because we've had a long history with Sen. McCain and I know that if he personally had gotten the message, he might have met with us. But we couldn't get to him," Kingman said.

McCain's campaign responds that none of Obama's promises can match McCain's years of service on Indian Affairs. The campaign has a long list of McCain's accomplishments for Indian country, including his sponsorship of the Tribal Self-Governance Act of 1994, which aimed for more self-sufficient tribal government; legislation to address methamphetamine use in Indian country; and authorship of the Indian Child Protection and Family Violence Prevention Act.

They also cite his work to update the Indian Health Care Improvement Act. Critics note that the bill didn't actually pass the Senate until this year, with Sen. Byron Dorgan, D-N.D., chairing Indian Affairs.

"Sen. Obama's going to have to meet with (tribes) on a daily basis to catch up with the 25 years Sen. McCain has spent on their issues," said Douglas Holtz-Eakin, senior policy director to McCain. "I don't think there's anything that even looks like a horse race in terms of intimacy of association and familiarity with the issues."

For some Native Americans, it may come down to a choice between the devil you know and the devil you don't — a phrase Obama himself has used about the campaign.

"Sen. McCain knows us intimately, so he knows our strengths as well as our weaknesses, so that could play good and bad for us," said Jacqueline Johnson, executive director of the National Congress of American Indians. "Sen. Obama is newer to this field."

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Gambling Casinos Online

August 23, 2008 at 10:52 am · Filed under Online Gambling

Almost anyone can gamble online at these gaming casinos, as long as it is legal in your place of residence! There are numerous amount of sites such that offer games such as roulette, black jack, and slots where you can play for real money and win real money in the process. Other sites have other things such as "chips" that when accumulated can be used to buy stuff on the site, or to play more games. More likely than not however, if your going to be gambling online your going to win some real money! Either way please make sure you know your state or country legislative laws before gambling online.

If you are going to gamble at a site with real money its a good idea to follow these point of criteria:

- Make sure the site is legally licensed

- Payouts are reviewed and certified by an independent auditing firm

- Customer support is responsive

- Accreditation is given by sources such as SafeBet, and the Interactive Gaming Council

Online gambling sites and casino sites more than likely will allow you to pay with credit card, check, money order, or wire transfer. Although recently sites have also started accepting other forms of payment such as FirePay, NetTeller, ACH, 900 Pay and the like. I personally like the ones that have the ACH option because you can take it directly out of your bank account and put it right into your account online. Also don’t be surprised when signing up for these sites if they ask for your drivers license number, bank account number, credit card number, or social security number. This is just their way of assuring that you are of legal age!

If you are searching for sites that either allow real money wagers or fake wagers please go to Google and search for keywords such as "Online Gambling Sites", "Online Black Jack Sites", "Online Roulette Sites" or other search terms such as "Gamble With Real Money Online" or "Online Gambling Casinos With Real Wagers."

I wish you great luck with finding the right site online for all your gambling needs!

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Nevadans debate gambling addictions _ sickness or choice?

August 22, 2008 at 8:46 am · Filed under Online Gambling

Behind bars for the past four years, Rodney Landingham has been mourning the charmed life he once had playing football for the Nevada Wolf Pack.

Like those in a number of recent high profile criminal cases in Reno, he says he lost everything because of his love affair with the euphoria he felt winning blackjack and craps games that led him to commit an armed robbery spree to pay off his gambling debts.

"Gambling central was only a few blocks away from school," Landingham said. "It was a lifestyle I never experienced. It was a fantasy, like Disneyland. And I was right up the street from it.

"I was at the top, and now, I'm at the bottom," he said in an interview with the Reno Gazette-Journal. "It's hard to accept. I'm in a prison cell locked up wondering what the hell happened. It was gambling."

Landingham is serving a four-year minimum sentence for two Reno convenience store armed robberies. Next year, he likely will be transferred to federal prison to begin serving a 14-year term for two bank robberies.

All occurred in August 2004, about one year from his first gambling experience. He said he committed the crimes to cover $8,000 in gambling debts.

Several Washoe County residents convicted in recent months have blamed their crimes on what they described was their gripping, uncontrollable addictions to playing slot machines and card games.

They include an attorney who bilked $3.1 million from the Sparks casino he represented, medical clinic administrators, a television personality, a county engineer who recently pleaded guilty to stealing at least $2.2 million from his office and maybe more than $6 million, and a casino cage manager who worked her way up from cashier.

While counselors say gambling can become an addiction and mental disorder that could lead desperate players into a criminal career, legal experts say it's simply an excuse that holds little weight in the justice arena.

"They would be better served if they were candid and admitted it was a choice they made," said John Helzer, Washoe County Assistant District Attorney.

"I think everyone has experienced a moment of extreme excitement like when they watched their child score a goal, catch a fish or they won a jackpot, but I don't see any soccer moms out there committing crimes saying their rise in endorphins made them do it," he said.

Carol O'Hare executive director for the Nevada Council on Problem Gambling and a recovered gambling addict, said pathological (compulsive) gamblers who don't seek treatment have the potential to commit crimes to support their habits or to pay back what they've stolen.

She said gambling can be an addiction and mental disorder, not a moral decision, that needs the same treatment and consideration as drug or alcohol addictions. Some also can become suicidal.

O'Hare and other gambling experts said they want a specialty court dedicated to treating gambling addicts, similar to the ones for substance abusers and the mentally ill.

They said its advocates likely will lobby the Legislature during the next session. Prosecutors oppose such an initiative. Some criminal defense attorneys support it.

Nevada gambling advocates convinced the Legislature in 2005 to set aside about $3 million through 2009 to be used for gambling treatment, education and work force development. The funding comes from yearly slot machine fees.

"These are people who were crime-free prior to their gambling addiction, where on a scale of crime went from zero to 360," O'Hare said. "They tend to be people in positions of trust, where they took advantage of opportunities when they were desperate and totally irrational."

According to state data, about 6 percent of Nevadans have a severe problem with gambling, compared to 1 percent to 2 percent in states across the country. Most casinos provide pamphlets in their businesses addressing problem gambling.

"The gaming industry has recognized its responsibility to educate the public concerning problem gambling," Peppermill Resort Casino spokeswoman Michelle Hackman said. "At the Peppermill, we encourage our guests to play responsibly and have information regarding problem gambling on our property for any player who feels they might have a problem."

Denise Quirk, who heads the Reno Problem Gambling Center, said 250 people have sought help since the center opened in late 2004.

"These are people with a sickness who got involved in criminal behavior and got caught," she said. "They are like a train running out of control until someone stops them. It's impossible to quit. It's a sick cycle."

Kenneth Lyon is a defense lawyer for Judy Sorensen, who was sentenced earlier this month to up to 10 years in prison for embezzling at least $485,000 during seven years from the medical clinic she worked at as an administrator. He said her gambling addiction led to her crime.

"Why would a 54-year-old married woman with a family and good employee all of a sudden revert to what she did?" he said. "It was behavior prompted by something. Until she was caught and it came to light, she didn't realize the extent of what she was doing. She never consciously knew how long it had gone on and how much money she took."

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Kansas board set to pick managers for 2 casinos

August 22, 2008 at 8:43 am · Filed under Online Gambling

After a day of questioning applicants, a Kansas review board planned to vote Friday on which companies will manage state-owned casinos in Cherokee and Sumner counties.

On Thursday, the seven-member Lottery Gaming Facility Review Board questioned three applicants vying for the Sumner County contract — Harrah's Entertainment Inc., Penn National Gaming Inc. and Marvel Gaming. Penn is the sole applicant for Cherokee County.

Harrah's casino would be in Mulvane, while Penn and Marvel have staked out locations near Wellington.

Board chairman Matt All said he wouldn't be surprised by votes that weren't unanimous on the final selections. Kansas law requires the board to consider which contract will bring the state the most revenue, best promote tourism and be in the best interest of the state, he said.

"We have to follow the law, and following the law, and doing what the law requires us to do, is different from doing what we want to do," All said. "We may want to vote for a particular facility, but the law requires us to vote for another, or we may want to vote for a particular casino but the law requires us to send it back for more negotiations."

The board has the option of rejecting all applicants and sending their proposed contracts back to the Kansas Lottery for more negotiations. The Lottery will own the new casinos.

Any applicant selected by the review board would still undergo a background check by the Kansas Racing and Gaming Commission.

The review board votes Sept. 18 and 19 on four applicants for Wyandotte County and two for Ford County.

Much of Thursday's discussions focused on how each applicant would finance its project. All three applicants said they had the financial ability to build and operate the casino over the life of the 15-year contract, and the board's consultants agreed.

According to Lottery officials, Harrah's said earlier that it wanted to change the contract it signed in May to remove about $50 million in proposed retail facilities.

Dan Biles, the Lottery' attorney, said the idea was rejected because it wouldn't be fair to the other applicants. He said Harrah's and other applicants are bound by the terms of the contracts they signed with the Lottery.

Harrah's later called the situation a misunderstanding and that there never were plans to cut back.

"It's no longer an issue. We solved it in a different way," said Charles Atwood, vice president of Harrah's board.

Penn continued to push what it called its "southern strategy" — casinos in both Cherokee and Sumner counties. Steve Snyder, Penn senior vice president for corporate development, said operating both casinos would generate more revenue than two facilities with different managers.

But consultant William Eadington, of the University of Nevada-Reno, said, "I don't place much credence in the southern strategy. It's probably overstated as presented."

Snyder again told the board that Penn would move forward in Cherokee County if it gets the Sumner County contract but would have to rethink its position if that didn't happen.

A new casino that opened on the state line by Oklahoma's Quapaw Nation this summer is expected to cut into Penn's potential revenue.

Consultants estimate first-year revenue in Sumner County at $186.5 million for Harrah's, $132.6 million for Marvel and $123 million for Penn. Harrah's and Marvel initially would pay 22 percent of their revenue to the state while Penn would pay 25 percent. They would pay more as revenues increase.

In Cherokee County, consultants estimate revenue for Penn at $30.2 million, and the state's share would be 22 percent. Penn had projected revenues of $57.4 million.

The move toward state-owned casinos started last year with passage of the Kansas Expanded Lottery Act. After the contracts were signed with the Lottery in May, the review board conducted public hearings and meetings.

In June, the Kansas Supreme Court ruled that state would truly own and operate the new gambling, ending any constitutional question about the new law.

Voters amended the state Constitution in 1986 to allow a state-owned and operated lottery, and the court said in 1994 that the term "lottery" is broad enough to include slot machines and other casino games.

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