Glass City Jungle

Issue 3 – Does Lyle Berman matter? You decide…

06 Oct 2009

Another day of fun exchanges from the TruthPAC and from Ohio Jobs and Growth Plan – first the article referenced by both releases, Ohio casino proponents need to ante up to win by Mark Naymik. I recommend reading that first. Then? The release from TruthPAC, which is followed by the release from Ohio Jobs and Growth Plan…

WHO WOULD REALLY OWN AND RUN THE OHIO CASINOS?
And Where In the World Is Lyle Berman?
COLUMBUS — Issue 3, the plan to allow four Las Vegas style casinos in Ohio, makes it clear where the casinos would be located. What remains a mystery is who would run them and who would own them.

Ownership revelations in a morning newspaper column today drove TruthPAC, Ohio’s anti-casino campaign, to challenge Issue 3 supporters to tell Ohio who will really own and run the four proposed casinos.

In today’s Cleveland Plain Dealer, columnist Mark Naymik says he obtained a secret campaign memo showing that the pro-casino team “includes My Ohio Entertainment, the group behind the 2008 single-casino proposal. (Controversial Minnesota casino builder Lyle Berman, chief executive of Lakes Entertainment, was a part of My Ohio Entertainment.)”

Read Mark Naymik’s Plain Dealer column here: (linked above)

Casino proponents have only publicly identified Penn National Gaming and Dan Gilbert, majority owner of the Cleveland Cavaliers, as the casinos’ backers. Berman’s name has not surfaced before.

“Is Lyle Berman a silent partner,” asked Sen. Teresa Fedor, a Toledo Democrat and co-chair of TruthPAC. “If he is, why are the casino proponents working so hard to hide his involvement?”

Fedor pointed out that Ohio voters rejected Berman just 11 months ago when he bankrolled last year’s Issue 6, a proposal to bring a casino to Wilmington near Cincinnati.

Penn National Gaming, the out-of-state casino operator bankrolling Issue 3, spent nearly $40 million last year to defeat Issue 6. Using unflattering photos of Berman and an ominous announcer, the ads questioned Berman’s background and experience. The campaign enlisted help from the labor union, UNITE HERE, to pile on.

UNITE HERE said Berman led the Stratosphere casino in Las Vegas into bankruptcy in 1997 and has a history of aligning himself with losing business ventures.

“Issue 6 is a gamble on an overextended company that has shaky finances, a poor track record, and a history of accounting issues,” Chris Bohner, the union’s deputy director in charge of gambling, said last year.

The issue failed 63 percent to 37 percent, the fourth casino proposition to lose in Ohio since 1990.

Rep. Lou Blessing, a Cincinnati-area Republican and TruthPAC co-chair, echoed Fedor’s concerns that Issue 3 does not identify who would really own or operate any of the Ohio casinos.

Instead, it simply defines a “Casino Operator” as a person or entity which directly holds an ownership or leasehold interest in a casino facility.

“If we are going to hand over the keys to our constitution, shouldn’t we at least know who we’re giving them to,” Blessing asked. “Issue 3 supporters should tell the voters who would own and run these casinos.”

ABOUT TRUTHPAC

TruthPAC is a broad, bipartisan coalition opposed to Issue 3 – a proposed constitutional amendment to authorize four Las Vegas-style casinos in Ohio. Financed in part by Ohio’s historic horse racing industry that will be destroyed by the Casino Plan, the committee works to counter exaggerated claims put forth by the out-of-state gambling interests bankrolling Issue 3.

Then the release from Ohio Jobs and Growth Plan, titled, “Issue 3 opponents reach new low”

Statement by Bob Tenenbaum, spokesman for the Ohio Jobs and Growth Plan:

“The people behind the so-called “TruthPAC” – financed by West Virginia gaming interests desperate to protect their own financial interests – today reached a new low in their efforts to defeat State Issue 3.

“In a news release entitled ‘Who would really own and run the Ohio casinos?’ the so-called ‘TruthPAC’ intentionally misrepresented a story by reporter Mark Naymik published in today’s Plain Dealer of Cleveland.

“Here’s what’s wrong with the TruthPAC news release:

1) The so-called ‘secret campaign memo’ referred to in the news release was in fact a proposal submitted to potential casino developers by a group that was not selected to run the casino campaign.

2) The Plain Dealer story never used the words ‘secret campaign memo,’ and made it clear that the proposal was not accepted by the casino developers.

3) Lyle Berman is not an investor in the proposed casinos and has absolutely no role in the Issue 3 campaign.

“We fail to understand how two members of the Ohio General Assembly – State Sen. Teresa Fedor and State Rep. Lou Blessing – can continue to allow themselves to be manipulated into mouthing TruthPAC’s repeated misstatements of fact.

“What we do understand is that TruthPAC is incapable of telling the truth.”

Now…back to the article written in the Plain Dealer… What was really written:

Issue 3 doesn’t have to detail its spending in finance reports just yet and campaign spokesman Bob Tenenbaum said he won’t talk about “mechanics of the campaign.” But a report titled “2009 Ohio Casino Gaming” obtained by The Plain Dealer offers some insight into those mechanics.

The report, authored in part by Columbus consultant Rex Elsass, says winning a casino campaign would require $45 million to $50 million.

That’s more than Barack Obama and John McCain spent in Ohio during last year’s presidential campaign and more than the 2006 U.S. Senate race cost.

Elsass, who heads the Strategy Group for Media, wrote the report in January in the hopes of becoming the lead consultant on the campaign. The report, which was shown to gambling interests including Gilbert, also mentions that Elsass’ team includes My Ohio Entertainment, the group behind the 2008 single-casino proposal. (Controversial Minnesota casino builder Lyle Berman, chief executive of Lakes Entertainment, was a part of My Ohio Entertainment.)

Elsass lost out on the big score to run this year’s casino campaign. That honor went to former Ohio GOP Executive Director Thomas Whatman’s Strategic Public Partners lobbying firm, which represents Penn.

It’s pretty clear Lyle Berman is not involved in Issue 3 and it’s not even clear if Berman is still involved in My Ohio Entertainment now since the word “was” is used not “is” and that it wasn’t called a “secret campaign memo” — It’s also clear millions is being spent on Issue 3 — from both sides…

This is why I share releases from both sides – so you can look at what’s being written, what’s being shared and make up your own minds as to the truth.

2 Responses to “Issue 3 – Does Lyle Berman matter? You decide…”

  1. 1
    Jason Says:

    Lisa Renee:

    I am most appreciative that you post all points of view but I must disagree that Berman is NOT involved with Issue 3. How do we know?

    Are their side agreements? The Penn/Gilbert duo must know who will operate and manage these casinos so shouldn’t they tell us in advance?

    After Issue 6 went down last year, the Berman team insisted they would be coming back this year. Where is Lyle? If he is really NOWHERE, why is he not telling us that?

    Are his two stalking horses from last year a part of this murky deal?

    I will be voting NO for lots of reasons but if I was on the fence, I would certainly demand to know who is behind all of this.

  2. 2
    LisaRenee Says:

    Jason, the report shared does not demonstrate Berman is involved and since he’s not associated with Penn National and Penn National was actually the group that spent millions trying to defeat Issue 6 – it’s a very high leap to link Berman.

    This from a person who has repeatedly stated I personally don’t support Issue 3, those who decide to support it or not support it should do so based on what is proven not supposed.

    I have to add that the lack of disclosure from you is a continuing frustration. You have posted from the same ip address connected to TruthPAC, more than once, and you as well as one other person have consistently not disclosed your connection. I expect/demand the same from those support Issue 3 as well.

    It’s misleading of you to come here and comment without disclosing and when Sandy has commented here? She has been completely honest as far as noting her connection.

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