Lakes Entertainment Strikes Deal For Casino Cut In Ohio

The state of Ohio passed an initiative on Tuesday that will allow for four new casinos in the state. It is the first time casino gambling will be legal in Ohio, and now Lakes Entertainment will be among those profiting from the casinos.

Lakes and its chairman, Lyle Berman, have previously attempted, unsuccessfully, to bring a casino to Ohio. After the failed attempt, Berman still wanted to be involved with casinos in Ohio. On Wednesday, according to a filing with the US Securities and Exchange Commission, Berman struck a deal with Penn Ventures and Rock Ohio Ventures.

The deal called for Berman to fund ten percent of the cost of the ballot initiative that was approved Tuesday by voters. The parent company of Penn Ventures and Rock Ohio Ventures is Penn National Gaming. The two companies are the ones that will be developing the casinos in Columbus, Cincinnati, Cleveland, and Toledo.

In exchange for the funding, Berman will receive the option of ten percent of the revenue generated from each of the casinos. Berman had been looking for investors after the failed 2008 attempt, but had been unsuccessful in convincing anyone to come aboard.

"My understanding through his (Berman) representatives was that he felt that this is the time to pass gambling in Ohio," said Tony George, Chairman of the George Group, as reported by The Associated Press, "But he realized it wasn't just going to be one casino, that you've got to include the major population areas like Cleveland-Akron, Toledo, Columbus, Cincinnati. He was looking for allies."

November 6, 2009
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
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