The Lima News

C O M M E N T A R Y II
Bingo, tip book sales in Allen County
The following organizations reported to the Ohio Attorney Generals Office these amounts of revenue, expenses and profit from bingo games from November 2005 to October 2006. Type 1 is traditional bingo; Type 2 is instant bingo tickets sold during traditional bingo games; and Type 3 is instant bingo also called tip books, Joes or pull-offs sold outside traditional bingo games, according to the Ohio Attorney Generals Office. Organization

Sunday, Oct. 7, 2007 A9

1.45 million reasons to have abstained on casino vote

Ohio Attorney Generals Office: 11 percent of Allen County tip book sales came at Magnus bar
Those who opposed a casino coming to Lima on religious grounds found the unlikeliest of allies in Lima City Councilman Ray Magnus. Its really no surprise that Magnus opposed a casino, at least now that someone has looked into the amount of gambling his bar does. What is surprising: The people who implied hell awaits those who gamble signed on with a man responsible for more than $1.45 million worth of gambling in only 12 months. Surely, Magnus mentioned the more than $1.45 million his bar, Rays Place, took in from gambling in a year. From November 2005 through October 2006, that was how much in instant bingo Joes, tip books, pull-offs moved through the bar. The Ohio Attorney Generals Office classifies the tickets as Type 3 bingo. Type 1 is traditional bingo. Type 2 takes in the instant bingo games sold at traditional bingo settings. Type 3 are the pull-offs you used to see at bars, but which now are mostly sold at fraternal organizations, at least in Allen County. In Ohio, this type of gambling is legal as long as all proceeds are donated to an approved nonprofit organization. The Ohio Attorney Generals Office oversees the licenses. Fourteen Allen County organizations sold tip books in the 12 months mentioned above. Twenty of the 23 Allen County organizations that held bingo licenses for that period had bingo sales. Bingo games brought in more than $20.3 million in those 12 months alone. About twothirds of that ($13.1 million) went to buying tip books. Here are some more numbers for the likes of Lima Councilman Tommy Pitts and New Hope Christian Centers Rev. Jim Menke, both of whom ardently opposed gambling on religious grounds: Rays Place sold the sixthlargest dollar volume of bingo gambling in Allen County between November 2005 and October 2006. The tip books Rays Place sold accounted for more than 7 percent of total Allen County bingo gambling sales between November 2005 and October 2006. Magnus bar accounted for more than 11 percent of all Allen County tip book sales in the most recent full-year reporting period available. Divide the total bingo revenue by 365: The license holders sold an average of $55,750 worth of all bingo games $35,952 in tip books alone a day. Magnus bar sold an average of $3,983 worth of tip books a day between November 2005 and October 2006. If you take seriously all the societal ills opponents insisted would come with a casino, why is it OK with the religious folk that their ally sells this much in tip books? If gambling leads to crime, broken homes, sins and the such, doesnt instant bingo mixed with alcohol do it at least as effectively as casino gambling does? Magnus has broken no laws, of course. His failure to mention the volume of tip book sales his bar sells isnt even a direct conflict of interest for a man who voted twice against letting Lima residents decide whether the city would negotiate a casino deal with the Eastern Shawnee Tribe of Oklahoma. So says Lima Law Director Tony Geiger, who did say Magnus silence frustrates him because it at least could lead the public to believe theres the appearance of a conflict of interest. Call me the public then. But well come back to the law

Ronald Lederman Jr.

Editorial Page Editor rlederman@limanews.com 419-993-2078

TIP BOOK SALES AT RAYS PLACE

REVENUE: $1.45 million EXPENSES: $1.16 million NET: $291,831

director shortly. The woman Magnus has identified to reporters as his fiance, Marie Daley, runs the cat shelter that receives profits from the bingo sales at Magnus bar. Although the Ohio Attorney Generals Office lists Cats Haven, the holder of the bingo permit, as being in Wapakoneta and the Allen County Auditors Office puts it in Cridersville, it actually is in Allen County. The cat rescue is at a Perry Township home Magnus and Daley own at 6105 McClain Road, across the street from Auglaize County. The Form 990 for Cats Haven filed with the Internal Revenue Service for 2006 shows she spent more than $295,000 providing care for cats. In 2006, the Form 990 for Cats Haven shows, bingo brought in more than $298,000. Tip book expenses, which include paying winners, totaled almost 80 percent of the money taken in. The reporting periods for the tax returns and the bingo sales are different, so it would take an office with actual auditing power to determine if all the reporting is accurate. Lets assume it is. So Magnus has broken no law again even as he dances right up to the line of questionable behavior, particularly for someone who proposes to oversee a branch of Lima city government. But this much in tip book sales and youre not mentioning it to anyone other than a state agency in Columbus, even as you vote on a casino? Its an issue Magnus let slide and all the local media ignored even after a letter writer brought up the tip book sales in April 2006. Daley answered that letter with one of her own. From The Lima News of April 14, 2006: I am the good cause Ray Magnus sells tip books for. I supply the tickets and 100 percent of the profit goes to my nonprofit organization. These proceeds have helped thousands of cats get medical attention, food, shelter and sterilized. Would I, or any other animal organization, receive the same from a casino? How can church groups speak out against bars? Bars are not to blame for drunken driving; people are. And, with that, the issue went away. Perhaps we all assumed the sales volume was tiny. We were wrong way wrong. Its none of their business, its for a charity, Magnus said when I asked if he should have told other councilors how many tip books his bar sold. I just sell them for a charity, so why is it any of their business, something that goes to a charitable organization? I mean, this isnt no big secret. Weve been doing this for quite a while, so let me ask you a question. Why is it any of anybody on City Councils business what I do for charitable organizations and who I give my money to? What to say about the numbers, now that theyre out? Im shocked. Im shocked to Comment on this column and learn that Ray sells almost $1.5 other topics on Ledermans blog: million a year in gambling tip www.limaohio.com/lederman.

books from his bar, Law Director Geiger said after I told him how much the Ohio Attorney General Office reported Magnus bar sold. I dont think anyone would have guessed such a large amount of gambling money could be flowing through such a small corner bar owned by a City Council member in the north end of Lima. But, having learned that now, officially, I dont think theres enough evidence at this time to indicate an actual direct conflict for Ray because it would be extremely speculative as to whether a casino would really interfere with his tip book business. Maybe it would, maybe it wouldnt. I would not say there is a direct conflict of interest, but there certainly is the potential for an indirect conflict and I think, in my opinion, there clearly is an appearance of a conflict. But it would be up to Ray to decide how to deal with the appearance-ofconflict issue. I cannot say its illegal based just on that information, but, in my opinion, it looks bad. I asked whether taking in that much while voting against a casino creates an obligation to let people know about what some might consider reason to try to stifle competition. Magnus ignored the openness part of the question. He said theres no competition because Ohios smoking ban has cut into his business and the tip book sales. He said he knows Im going to slant my reporting. He told me about all the good Daley does for cats. He said he isnt opposed to casinos. Keep in mind that Magnus abstains from voting on issues involving Greater Ohio Ethanol, as he owns shares in the emerging company. Magnus also abstains from voting on liquor licenses because he is a bar owner. Geiger pointed out that Councilman Walter Potts abstained from voting on the casino ballot issue after someone complained to him that he might have a conflict because of some business interests. Neither Potts nor Geiger has said from whom the complaint came or what was said. Potts did not have a conflict of interest as alleged, Geiger told me, yet he abstained to avoid the appearance of conflict. Magnus who owns a bar that has a form of gambling didnt even mention almost $1.5 million in gambling that passed through his bar while he was voting on a gambling establishment that would have sold alcohol. Im extremely frustrated that Ray took the public positions against the casino that he did without at least disclosing the huge amount of money at stake for him through competition from the casino, Geiger said. In my opinion, there clearly is an appearance of a conflict. I think it looks bad, and its very frustrating to me that Ray did not come forward with this information to explain his position. In my opinion, it definitely calls into question Rays position and motives on the casino issue as well as his overall judgment. Magnus said that, because he has to pay for the tickets when he picks them up, all he can do is lose money. And, with the smoking ban, theres no increased business, so theres no problem. Since those such as Councilman Pitts and the Rev. Menke have made clear that gambling is the devils tool, one wonders: How do they feel about having formed an alliance with someone who pushes the devils game? For his part, Magnus again has shown he isnt fit to serve on City Council, much less lead it.

Fraternal Order of Eagles Gross Aerie 370, Lima

Type 3 Total $3,179,219 $3,179,219 Gross $154,170 $178,071 $1,508,096 $1,840,337 Gross $600,817 $1,131,833 $1,732,650

Expenses $2,599,201 $2,599,201 Expenses $154,170 $144,068 $1,212,418 $1,510,657 Expenses $492,955 $911,687 $1,404,643 Expenses $1,341,143 $1,341,143 Expenses $1,167,525 $1,167,525 Expenses $1,162,209 $1,162,209 Expenses $441,663 $795,940 $38,274 $1,275,877 Expenses $484,408 $872,441 $1,356,850 Expenses $885,098 $885,098 Expenses $731,064 $731,064 Expenses $654,971 $654,971 Expenses $265,302 $315,948 $34,424 $615,674 Expenses $405,536 $221,727 $627,263 Expenses $360,480 $60,698 $421,178 Expenses $161,851 $238,745 $8,723 $409,320 Expenses $355,639 $355,639 Expenses $300,030 $300,030 Expenses $103,219 $103,219 Expenses $55,268 $22,730 $77,998 Expenses $806 $806

Net profit $580,018 $580,018 Net profit $0 $34,002 $295,677 $329,679 Net profit $107,861 $220,145 $328,006 Net profit $315,772 $315,772 Net profit $308,897 $308,897 Net profit $291,831 $291,831 Net profit ($69,024) $228,583 $8,761 $168,320 Net profit ($152,052) $190,997 $38,944 Net profit $202,960 $202,960 Net profit $166,627 $166,627 Net profit $168,794 $168,794 Net profit $12,343 $93,035 $9,495 $114,875 Net profit $28,988 $34,133 $63,122 Net profit $8,130 $36,963 $45,094 Net profit ($27,850) $63,963 $1,837 $37,949 Net profit $77,052 $77,052 Net profit $73,998 $73,998 Net profit $26,961 $26,961 Net profit $1,239 $8,361 $9,600 Net profit $214 $214

BPOE Lodge 54, Lima

Type 1 Type 2 Type 3 Total

Humane Society of Allen County, Lima

Type 1 Type 2 Total

Fraternal Order of Eagles Aerie 471, Delphos Gross

Type 3 Total $1,656,916 $1,656,916 Gross $1,476,423 $1,476,423 Gross $1,454,040 $1,454,040

American Legion Post 96, Lima

Type 3 Total

Cats Haven Inc., Cridersville

Type 3 Total

St. Gerard Catholic Church, Lima Gross

Type 1 Type 2 Type 3 Total $372,639 $1,024,523 $47,035 $1,444,197

Elida Band Boosters Inc., Elida Gross

Type 1 Type 2 Total Veterans of Foreign Wars Post 6772, Spencerville Type 3 Total $332,356 $1,063,439 $1,395,795 Gross $1,088,058 $1,088,058 Gross $897,691 $897,691 Gross $823,765 $823,765

Loyal Order of Moose Lodge 199, Lima

Type 3 Total Veterans of Foreign Wars Post 1275, Lima Type 3 Total

St. John the Evangelist Church/School, Delphos Gross

Type 1 Type 2 Type 3 Total $277,645 $408,983 $43,920 $730,549

Senior Citizens Services Inc., Gross Lima

Type 1 Type 2 Total $434,525 $255,861 $690,386

St. Rose Catholic Church, Lima Gross

Type 1 Type 2 Total $368,611 $97,662 $466,273 Gross $134,001 $302,709 $10,560 $447,270

Lima Central Catholic High School, Lima

Type 1 Type 2 Type 3 Total

American Legion Post 191, Gross Spencerville

Type 3 Total $432,692 $432,692

Fraternal Order of Orioles Nest 173, Lima Gross

Type 3 Total $374,028 $374,028 Gross $130,180 $130,180 Gross $56,507 $31,091 $87,598

Knights of Columbus Council 2661, Lima

Type 3 Total

Allen East Music Association, Lafayette

Type 1 Type 2 Total

St. John the Evangelist Catholic Church, Lima Gross

Type 1 Total $1,021 $1,021

Spyder's Boxing Club Inc., of Lima, the YWCA of Lima and the Spencerville High School Family Career and Community had bingo licenses but did not have any revenue during the time reported with these numbers. The Lima News left off the cents in the above figures, so some gross receipts will not match the combined expenses and net profit numbers. Source: Ohio Attorney Generals Office
NATE WARNECKE The Lima News