Newark skill game businesses must get state licenses or close

NEWARK − The clock is ticking for skill game operators in the city of Newark. City Council voted Monday night to give the businesses 90 days to pursue state licenses or be shut down.

Law Director Tricia Moore said the city should not allow the illegal businesses to operate in the city. The city has licensed the businesses, but they do not have state licenses. Newark Police have recently responded to numerous calls to skill game locations.

“I have a problem with the city licensing businesses that are operating illegally and that’s why I’m proposing this legislation,” Moore said. “People are just choosing not to abide by the state licensing requirement.

“Gaming parlors got the attention of law enforcement and that’s why we investigated. It is illegal for them to open their doors every day. All we are asking is they comply with the state law.”

Deputy Chief Darrin Logan told council NPD responded to 183 calls for service to gaming parlors last year. Moore said there were 68 calls to Shamrocks Gaming, 335 Mount Vernon Road in the former Subway restaurant location, from Jan. 1, 2022 to Jan. 30, 2023. There were 35 calls to The Fishhouse at 300 S. 30th St. and 32 calls to Goldies, which has since closed at 241 S. Fifth St.

Moore told council it is a problem for a city to allow these businesses to continue operating without state approval.

“Cities that continue to cooperate with illegally-operating businesses can also be liable and be brought under federal investigation and I’m not willing to risk that for this city,” Moore said.

Attorney Evan Price, representing game room operators, asked council to work with the businesses instead of forcing them to close.

“Newark has successfully licensed and regulated skill games in the city for more than a decade and should continue to do so,” Price said. “If there are problems, that can be addressed by adopting new regulations or changing regulations. The state has indicated it would defer to the city licenses.”

Price said four of the rooms have more than 50 employees, with more than a half million in payroll. The city’s actions will put these people out of work, he said.

At the Jan. 17 council meeting, Price said most of the skill game operators support strengthening the city’s license requirements, such as background checks on owners and employees, increasing fees, security cameras, checking IDS at the door and establishing hours of operation.

“The owners share your security concerns, and they would welcome the opportunity to work with the city to address those concerns,” Price said.

Moore responded, “You want to help us reduce crime, but by opening your doors every day, you’re committing a crime. We’re almost condoning criminal behavior.”

Price said the state is simply not approving licenses for such businesses.

“As of today, there are zero operator licenses approved by the state of Ohio for Licking County, and zero for Franklin County,” Price said.

Ron Schlosser Jr., a skill game owner-operator who lives in Heath, said he has operated a skills game room in Newark since 2016, when the city approved the business.

He said the state will not issue them a license.

“I was told if the city licenses you, the state will take a hands-off approach,” Schlosser said. “If there’s too many of them, regulate them. Figure it out. If you pass this tonight, you will shut down every single one in this town.

“We had our fair share of problems a while ago and we addressed them. If you close these places down, the problem doesn’t go away, it just goes somewhere else.”

Moore said, “We’ve had multiple meetings with the Ohio Casino Commission, which is issuing licenses. There are steps you have to take, and you also have to be operating the right way. They’re not operating the right way. Mr. Schlosser was denied twice.”

Councilman Doug Marmie, R-6th Ward, proposed an amendment to give the businesses 90 days to comply. The ordinance takes effect in 30 days, so the skill game operators have 120 days to pursue a state license.

“I offer this amendment because we want to give any facility that wants to operate within the law to operate within our city boundaries, it gives them time to plan.” Marmie said. “Everybody up here (on council) is pro-business, but we have to respect our law director. We cannot condone things the state is not going to allow.” kmallett@newarkadvocate.com 740-973-4539

Twitter: @kmallett1958