Elsass Casino Plan1

Ohio Casino Gaming January 23, 2009

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Table of Contents

A. Executive Summary

B. The Petition Process i. Creating the Committee

ii. Ballot Timing iii. Drafting and Testing the Amendment (Polling) iv. Legal Counsel v. The Petition Process

C. Campaign Operations i. Teaming & Competition

- Detroit Casinos, Operators & Owners - Indiana Casinos, Operators & Owners - Pennsylvania Casinos, Operators & Owners - West Virginia Casinos, Operators & Owners

ii. Economic Impact Study iii. Building Local Support, Developing Local Ambassadors/Legislative Work iv. Micro-Targeting v. Television/Radio & Voter ID

vi. Direct Mail vii. Vote-By-Mail

viii. Phone Program ix. On-line Advocacy x. Research

Opposition Indian Casinos

D. Financial & Timeline Information i. Financial Overview

ii. Detailed Costs by Line Item iii. Detailed Activities by Month iv. Monthly Cash Flow

E. Supporting Documents i. Copy of 2008 Casino Amendment

ii. Biographies of All Principals


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Executive Summary The Ohio casino campaign plan below provides investors an overview of the campaign structure, funding and timeline that will allow us to utilize the existing structure, improve upon it by bringing significant capital from in-state leaders who will appreciate the need for a streamlined campaign. The campaign agenda provides vision to develop new casino markets in Ohio from no fewer than three metropolitan areas: Cincinnati, Cleveland and Columbus. Additional venues would be considered if the effort were to gain a strategic advantage.

Our team of campaign professionals consists of My Ohio Entertainment and the Chief Operating Officers of two of Ohio’s leading political consultancies (The Strategy Group for Media and The Strategy Network) and their capable staffs as well as nationally recognized Public Opinion Strategies. Together, the team provides the political intelligence needed to develop a strong foundation for a campaign that is strategically developed and saleable to allow us to join together community leaders to support the effort and minimize public opposition while facilitating a first-class campaign that can win at the ballot box.

Strategic planning begins with the basics -- funders who have land options and the drafting of a Constitutional Amendment that will be circulated throughout Ohio in a petition format where it will secure no fewer than 402,275 signatures from Ohio voters. While the petition is circulating, a thorough voter analysis, public relations and community outreach program as well as an exhaustive economic impact study will be executed to identify areas of opportunity, market segmentation, financial planning, competitive analysis, and culminate in the design of a project implementation plan. This will serve as a detailed road map for the planning and supervision of all marketing activities which will include creative elements such as television/radio advertising, direct mail, vote-by-mail and phone programs.

While gaming has been on the ballot four times since 1990, at no time has an effort been considered with a back-to-back ballot initiative. However, at no time since the Great Depression has the economy collapsed in such a way that states are desperately seeking new revenue streams and the creation of jobs that can’t be outsourced or shipped overseas.

It is therefore important to understand that even in this difficult economic environment, creating a casino Amendment campaign that will create tens of thousands of construction and permanent jobs for Ohioans, and hundreds of millions of dollars each year for the state’s local communities to utilize for economic development and urban renewal may not motivate the governor and other statewide elected officials to support expanded gaming. Simply put, that may be a bridge too far for many of them. However, a more likely scenario exists where the governor and others will note their personal opposition, but “will not tell voters how they should vote.” This muted opposition should be considered a victory and one that will increase the campaign’s chances of being successful.


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B. The Petition Process

We propose a complete review and revision of the Constitutional Amendment to allow Casino gaming in the State of Ohio. As discussed, the language must be clear, concise and to the point. Beyond a facility in Southwestern Ohio, the language should also include additional casino operations in other parts of Ohio. This would include Northeast Ohio (Cleveland Area), Central Ohio (Columbus Area), and other areas where it makes marketing sense and where polling indicates we can build majority voter support for casino gambling.

i. Creating the Committee – We must develop a new committee that will serve as the legal entity that will receive contributions and make expenditures for the campaign.

ii. Ballot Timing – We have reviewed the various municipal offices that will be on the ballot in 2009. Moving forward in an odd year election cycle while the economy is in serious trouble allows for the effort to utilize the low turnout model to its benefit. In 2009, Ohio will hold numerous municipal elections, which by their very nature offer low turnout. Based on 2005 election returns (the most similar ballot to 2009), we find that 51% of voters are concentrated in 10 counties (see graphic below). What’s more, twenty-two (22) counties (i.e. one quarter of all Ohio counties) account for nearly 70% of the overall voter turnout (see graphic below). Not surprisingly, these counties are Ohio’s metropolitan and their contiguous counties.


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Because off-year elections such as the 2009 ballot traditionally see no more than 3 million voters cast their ballots, with the advent of Early Voting and No Fault Absentee Voting, well-funded and structured campaigns can Micro-Target voters to identify gambling supporters, opponents and neutral voters and develop methods to build a coalition to secure a majority vote. That means that by choosing the 2009 ballot and narrowing our audience with direct voter contacts and couple that with mass media from August to November 3rd, we can help create the atmosphere necessary to mobilizing majority voter support to pass the initiative. Waiting until 2010 places the issue on the ballot with all statewide executive offices, and provides opponents the opportunity to harass and harangue candidates to take positions on the issue, and then utilize those comments in election communications. By avoiding the 2010 ballot, we can capitalize on momentum gained in 2008 and minimize the impact opposing elected officials can have on the issue (i.e. limit the reach of politicians who would seek to piggy-back their re-election campaigns on their casino opposition). While elected officials who oppose casinos will still express their opposition via press releases and in press conferences, we gain an advantage of not having multiple candidates traveling the state echoing opposition to the gaming issue – while they seek to retain or obtain their elective office (in 2010).

NOTE: Filing Deadline is June 30

• Deadlines to filing a petition for the November ballot has been changed from 90 Days prior to election to 125 days prior to election due to the passage of 2008’s state Issue 1.

• Campaign committees still maintain the right to collect Supplemental signatures after their initial filing (on or before June 30th). This gives the committee the right to continue to collect signatures after the committee has made its initial filing and while the County Boards of Elections conduct a signature-by-signature review of each part (is that wording right?) petition (which historically has taken 2 to 3 weeks to conduct). By law, committees are provided a “Supplemental” 10-day window after the SOS reports whether the committee has any deficiencies. If the committee has secured the requisite number of valid signatures from the required number of counties, the SOS will certify the issue for the ballot.

iii. Draft and Testing a the Amendment (Polling) Concepts for a new Constitutional Amendment should be tested through public opinion research which will be conducted by Public Opinion Strategies (POS) to determine public awareness and support.


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Clearly the economy is going to take a long time to turn around and the prospect is great that Ohio will continue to lose jobs and that the state budget will be stretched thin. Obviously, this plays to our advantage, as the casino amendment offers the state jobs and additional revenue.

Constitutional Amendments in Ohio win when they are short and easy to understand. We need strong language in a Constitutional Amendment that will provide:

• X number of strategically placed Casinos (i.e. one in Cincinnati, Columbus, Cleveland and wherever polling suggests the effort gains a strategic advantage to securing majority voter support).

• Definitive language as to what the Amendment will provide (i.e. percentage paid to county or other entity. Ambiguous language like “up to” decimates an issue).

• Language that speaks to voter approval of additional casinos (i.e. the tax rate shall not change if additional casinos are permitted to operate).

• Language that speaks to the real property, income taxes (etc.) that would be paid with voter approval of the casino issue (e.g. Host county fund as well as overall gaming tax).

• Funding for gambling addiction services.

• Establishment and financing of the gaming board.

• Substantial Licensing fees.

• Gaming employees must undergo and pass criminal background checks.

• Any other high valued message learned from polling and message testing. Throughout the campaign, POS will test a variety of messages (pro and con), breaking the answers into a variety of demographic groups for greater control of the message. The research elements include: Benchmark (a broad range of messages and concepts) and Brushfire (which is a limited look into the community), Internet Ad testing (testing commercials on-line), Focus Groups (to learn more about specific message points by demographic groups), and Nightly Tracking (to determine how the campaign’s messages are resonating with demographic groups).Voters clearly like the idea of getting a casino in Ohio. The key to winning is the development of a Constitutional Amendment that will reach beyond 37% of the voters who supported the measure in 2008 to secure an additional 13%+ of Ohio’s voters to secure victory.


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iv. Legal Counsel Ohio’s premier election attorney Don McTigue has been retained to draft the Amendment and to be involved with legal and political as well as the public affairs team throughout the campaign.

v. The Petition Process

Because of Ohio’s geographic size and voter population of 8+ million, it is critical that proponents of a Constitutional ballot issue are aware that the success of a petition drive is determined not at the end, but rather the beginning of an effort.

Professional Petition Management, which is co-owned by Ian James of The Strategy Network, has the experience in Ohio petition drives to oversee the most complex ballot issue. In 2006 alone, PPM’s team managed the operation that secured more than 1 million signatures in less than 3 months time. In 2007 and 2008, PPM’s team oversaw and directed the effort to collect over a half million signatures for SEIU’s Sick Days Initiated Statute. In 2008, the team collected an additional 580,000 signatures to place the controversial Pay Day Lending law on the Ohio ballot. In all instances, PPM’s leadership and hands-on management during the petition drives were successful in not only qualifying the issues in two-thirds of the counties (far exceeding the 44 county requirements) but also successful in securing far more than the overall required signatures to place the issues on the ballot.

PPM’s successful petition programs rely upon development and implementation of tested and proven systems that allow for the hiring of key personnel to administer numerous regional offices, oversee and direct the petition circulation, manage and monitor the Quality Control personnel to ensure a 100% validation of the signatures gathered. In doing so, PPM is able to provide its clients guarantee ballot placement.

Projected Raw Signatures needed 731,409 signatures are needed at a conservative 55% validity rate.


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C. Campaign Operations

i. Teaming & Competition – To be successful, we recommend teaming with Ohio based leaders who have financial and land opportunities to develop a winning ballot issue. We must also consider those leaders with interest in gaming and be mindful of not creating an atmosphere in which well funded competing gaming interests might expend tens of millions of dollars to defeat this well reasoned ballot issue. Though this might well be unavoidable in the end, we should consider multiple options.

Should we look to Ohio’s horse industry, one should only consider the most financially secure members. Of Ohio’s seven tracks, three are owned by publicly traded companies, the rest are privately held. Of the publicly traded companies, only one is in the Cleveland Area (Canadian based Magna Entertainment) which wishes to divest itself of its assets in Ohio (Thistledown Racetrack). The remaining publicly traded companies are Penn National (Raceway Park) and Mountaineer Racing (MTR) (Scioto Downs). It should be noted that Ohio resident and Cleveland Developer (Jeff Jacobs) is now the majority owner of MTR.

The remaining four (4) tracks are Cincinnati’s River Downs, Cleveland’s Northfield Park, Columbus’ Beulah Raceway, and Lebanon’s Lebanon Raceway.

NOTE: Based on past gaming analyses from the State of Ohio, Cleveland is purported to be capable of sustaining as many as four (4) casinos, though the concept might be best to limit the development to no more than two (2), with one other facility in the Akron/Canton or Mahoning Valley region .

The out-of-state gaming interest detailed below can be viewed as either potential supporters or opponents depending on our outreach strategy. Again, while we may not be able to assuage the negative impact of others, we can at least minimize their impact with proper planning.

Below please find a briefing on the various regional gaming interests that surround Ohio.

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Detroit Casinos, Operators & Owners

Toledo, OH 59 Miles

Cleveland, OH 167 Miles

Columbus, OH 202 Miles

Motor City Casino- Detroit Mike Malik and Mrs. Marian Ilitch According to a review of monthly casino revenues published by the Michigan Gaming Control Board (MGCB), average monthly gaming revenue at MotorCity Casino for January thru November of 2008 have been $39,091,619. http://www.motorcitycasino.com

Greektown Casino- Detroit, MI Sault Ste. Marie Tribe of Chippewa Indians & Ted Gatzaro According to a review of monthly casino revenues published by the Michigan Gaming Control Board (MGCB), average monthly gaming revenue at Greektown Casino for January thru November of 2008 have been $26,583,299. http://www.greektowncasino.com

MGM Grand Detroit – Detroit, MI MGM Corporation According to a review of monthly casino revenues published by the Michigan Gaming Control Board (MGCB), average monthly gaming revenue at MGM Grand Detroit Casino for January thru November of 2008 have been $48,424,483. http://www.mgmgranddetroit.com

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Indiana Casinos, Operators & Owners

Argosy Casino – Lawrenceburg, IN Penn National Gaming, Inc. Penn National not only owns and operates Argosy Casino just outside of Cincinnati; they also own the horse track in Toledo Ohio. Penn was a member of the 2006 Learn & Earn slots at the track campaign. Penn had optioned to buy Beulah Park in Columbus and optioned to manage River Downs raceway east of Cincinnati. Penn has indicated that they maintain the option on Beulah Park. In 2008, Penn National spent more than $45 million to defeat Ohio’s single site casino effort. http://www.pngaming.com

Horseshoe Casino - Elizabeth, IN Harrah’s Entertainment http://www.harrahs.com - No Threat

Indiana Live! Casino – Shelbyville, IN Indianapolis Downs, LLC http://www.indianalivecasino.com/ - No Threat

Hoosier Park Casino – Anderson, IN Centaur Gaming http://www.centaurgaming.net/ - No Threat

French Lick Resort – French Lick, IN http://www.frenchlick.com - No Threat

Casino Aztar – Evansville, IN Kentucky-based Tropicana Casinos and Resorts http://www.tropicanacasinos.com/ - No Threat

Blue Chip Casino – Michigan City, IN Boyd Gaming http://www.boydgaming.com/ - No Threat

Majestic Star I & II – Gary, IN Majestic Star/Trump http://www.majesticstarcasino.com - No Threat

Belterra Casino – Belterra, IN Pinnacle Entertainment http://www.belterracasino.com/ - No Threat

Grand Victoria Casino & Resort – Rising Sun, IN Hyatt Gaming Management, Inc. http://www.grandvictoria.com/en - No Threat

Ameristar Casino East Chicago – East Chicago, IN IN Ameristar Casinos, Inc. /Ray Neilsen http://www.resortseastchicago.com - No Threat Horseshoe Casino – Hammond, IN Harrah’s Entertainment http://www.harrahs.com - No Threat

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http://www.indianalivecasino.com/�

http://www.centaurgaming.net/�

http://www.frenchlick.com/�

http://www.tropicanacasinos.com/�

http://www.boydgaming.com/�

http://www.majesticstarcasino.com/�

http://www.belterracasino.com/�

http://www.grandvictoria.com/en�

http://www.resortseastchicago.com/�

http://www.harrahs.com/�


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Pennsylvania Casinos, Operators & Owners





MTR Pennsylvania Presque Isle Downs & Casino - Erie, PA MTR Gaming owns this facility, as well as Presque Isle Downs south of Erie PA, and Scioto Downs in Columbus Ohio.

Jeff Jacobs became the majority owner of MTR in 4th quarter of 2008 and is the former owner of the Cleveland Indians. Jacobs has a long history of funding gambling interests in Ohio and learned the casino business while serving on the board of the late Norbert Jansen’s Boardwalk Casino in Las Vegas. Jacobs Entertainment Inc., owns casinos in Nevada and Colorado and operates Virginia’s only pari-mutuel racetrack, Colonial Downs. www.mtrgaming.com

The Pittsburgh Casino – Pittsburgh, PA Gaming Holdings – Neil Bluhm The Chicago billionaire Neil Bluhm and real estate developer won control of Pittsburgh's casino license in August 2008 with the unanimous blessing of the state Gaming Control Board. Bluhm, owner of three other casinos, leads an investment team that will put up $205 million. The board picked Don Barden in December 2006, despite allegations that he was not a financially stable choice. The approval of Bluhm's takeover by the seven-member board was conditional on Bluhm paying a $2.5 million license transfer fee and on closing the financing package within five days. "We're not ones for wasting time," said Daniel J. Keating III, owner of Philadelphia-based Keating Building Corp., the project's primary contractor. Keating and Bluhm are partners in Philadelphia's Sugar House Casino project. http://thepittsburghcasino.com

http://www.mtrgaming.com/�

http://thepittsburghcasino.com/�

http://maps.yahoo.com/dd?taddr=8199 Perry Hwy&tlt=42.065352&tln=-80.035481&tname=&tcsz=Erie,+PA+16509-6640&tcountry=us&tdes�


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West Virginia Casinos, Operators & Owners





Wheeling Downs – Wheeling, WV Delaware North Companies Delaware North Companies (DNC) has expressed an interest in working in Ohio, having been a significant funder of the Ohio Learn & Earn campaign effort in 2006. At that time, DNC had an option to become co-owner and operator of Lebanon Raceway. Jeff Jacobs of MTR was also involved in that campaign and introduced Lebanon to DNC. http://www.delawarenorth.com

Mountaineer Raceway & Resort - Chester, WV MTR Gaming Group MTR Gaming owns this facility, as well as Presque Isle Downs south of Erie PA, and Scioto Downs in Columbus Ohio. Jeff Jacobs became the majority owner of MTR in 4th quarter of 2008 and is the former owner of the Cleveland Indians. Jacobs has a long history of funding gambling interests in Ohio and learned the casino business while serving on the board of the late Norbert Jansen’s Boardwalk Casino in Las Vegas. Jacobs Entertainment Inc., owns casinos in Nevada and Colorado and operates Virginia’s only pari-mutuel racetrack, Colonial Downs. www.mtrgaming.com

http://www.delawarenorth.com/�

http://www.mtrgaming.com/�

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ii. Economic Impact Study – A detailed and strong Economic Impact study should be undertaken early in the process to illustrate the benefits casinos (and the revenue they generate for the state) will have on Ohio. The key to this is identifying the locations, and infrastructural developments each casino will implement as well as and services they will provide (i.e. hotels, retail, restaurants, amenities, etc. to make their facility a true destination location). It is imperative that this data be obtained early in the process to allow the campaign to bolster its overall message and talking points during the petition process and throughout the remainder of the campaign.

iii. Building Local Support, Developing Local Ambassadors – While collecting signatures the campaign should build support amongst the community and elected officials throughout the state. We propose working with the leaders of the business and labor communities to develop coalitions to assist in winning this campaign. This would include providing community and elected leaders background documents and endorsement forms that would be signed and returned to the campaign. Ideally these local Ambassadors will become the local voice of the campaign with the campaign disseminating talking points and news updates to them on a routine basis to ensure they remain engaged. Legislative Work – Elected officials in the legislature should also be engaged to begin a dialogue as to how future casinos will be governed, consider the make-up of a gaming board and what it would do if and when casinos are authorized as well as push for early financial disclosure when an issue committee has received more than $25,000 (i.e. disclose within 24 hours of receiving funds). The latter will allow us to track opposition spending and adjust as needed.

iv. Micro-Targeting & Voter ID – The key to winning is not only learning what voters believe and are willing to believe, but also identifying which specific voters are supportive of gambling and the benefits the jobs and tax dollars will bring to their specific communities. The Strategy Network will direct the Micro-Targeting & Voter ID programs effort which will contact voters early in the process and again in the Fall to determine their level of support for the casino effort (and whether it has shifted). This is imperative as off-year elections such as 2009 have historically meant 3 million voters cast their ballots. Compare this to 2008 when more than two (2) million voters supported the casino issue. Clearly, we need to identify and motivate previous supporters to come to the polls and support this 2009 effort. NOTE: Micro-Targeting & Voter ID early in the process led to Bush carrying Ohio in 2004 and bolstered Obama’s Ohio win in 2008. Our Micro-targeting effort will allow us to identify specific voters for Early as well as Election Day voting.


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v. Television/Radio – The Strategy Group for Media will produce and place television and radio ads throughout Ohio. Ads will be regionalized to address voters’ interests more directly. In 2008 television/radio ads were not launched until late September, allowing competing interests to launch their campaign immediately after our television began. In 2009, a stronger and more robust television/radio buy should be made, with an eye toward beginning the television much earlier and with greater volume.

vi. Direct Mail – Based upon the polling and Micro-Targeting results, a series of mailers will be developed to augment the television/radio and other message components. The Strategy Network will develop these pieces, assure they are printed, addressed and delivered in accordance with a critical path timeline and flight schedule. These mailers will be localized to speak directly to the benefits each county receive. Additionally, mailers will utilize a postal tracking system to better determine where the piece is in the mail system and when it has been delivered. This allows for greater management of the “chase calls” that would accompany the mailers.

vii. Vote-By-Mail – Of those voters who have indicated that they support a Yes vote for the casinos, The Strategy Network will develop Vote-By-Mail applications that will be delivered to supportive voters giving them the ability to receive their ballot in the mail. The mailers will have perforated business reply postcards that will be pre-printed with the voter’s name, address and other information allowing the voter to simply enter their last 4 digits of their social security or Ohio Drivers license numbers, sign their name and mail the card back to the fulfillment center.

Within two days of receiving the VBM application, the voter will receive a phone call reminding them to execute the post card and return it so they can get their ballot from their local Board of Elections.

When the VBM application cards arrive at the fulfillment center, the data from the card will be entered into our follow-up file and sent to the voter’s local Board of Elections on the same day. We will then track which voters participated and which will require additional contact and encouragement.

viii. Phone Program – A Chase Phone call program is developed by The Strategy Network to addressees of each piece of direct mail alerting them to read the mailer that was sent. This improves the readership and retention of delivered information. Get-Out-The-Vote (GOTV) calls will be placed the weekend before Election Day to pre-identified supportive and neutral voters to encourage them to cast their


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vote on Election Day. NOTE: Voters who cast their ballots via the Vote-By-Mail process will be purged from GOTV calls.

ix. On-line Advocacy – An easy-to-navigate website will be developed to provide facts and dispel misconceptions. The site will not only provide an electronic warehouse of data, but also allow for social networking and outreach to prospective voters, especially younger voters. The site will also include artist renderings of facilities (as they are made available), economic impact study data, endorsement packets, speakers’ bureau requests, etc. Additionally, the website will provide visitors the ability to communicate with local newspapers in their county/region. This will include talking points and the ability to send Letters to the Editor online and via US mail.

x. Research – Opposition & Indian Casinos

• Opposition – As with every campaign, we will utilize a research team to provide background and data on our potential opposition as well as to research our own committee to identify potential attacks. It is imperative that we know our own vulnerabilities so that we can inoculate the campaign.

• Dealing with Indian Casinos – Because the concept of an Indian casino was raised in 2008, it would be wise to address the Indian Casino issue by identifying and utilizing expert witnesses who will speak-out definitively about Ohio’s lack of recognized Indian land and tribes and what that lack of recognition means to the chances of bringing an Indian casino to Ohio. This should include public discussions that address the fact that Ohio is already a Class III gaming state that allows the Lottery, Keno as well as charitable organizations to utilize casino games including slots, blackjack, craps, etc. These legal scholars can assist in strategically removing the false argument that suggests that allowing state regulated casinos to operate may bolster the chance for Indian Casinos who pay no taxes. These scholars should also note that were an Indian tribe (and/or their land) ever to become recognized by Ohio (and the Interior Department), Ohio needs to be prepared to capture gaming funds from Ohio Casinos and utilize these funds to benefit Ohio. Their statements would affirm that a Yes vote for casinos would better position Ohio economically, while it would not improve an Indian tribe’s claim to some fictional right to locate and operate a casino in Ohio.


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D. Financial Data

i. Financial Overview

In 2008, outside gaming interests engaged in a well-funded campaign to oppose the casino effort. During that campaign, they capitalized on what they described as a “loophole” written into the Amendment. Obviously, the better crafted the language; the less of a chance the opposition will be able to poke holes in our Amendment. Beyond well- crafted Amendment language, the “Yes” side must be prepared to outwork (and significantly outspend) the “No” side.

Based upon the winning campaign program below, this could increase the funding required from investors from $45 million to $50 million, but in doing so, allow for a more robust, concrete and disciplined campaign with substantial Amendment/message testing, Micro-Targeting of every voter early in the process (so that we know where every single voter will fall on our issue), professional media relations, controlled roll-outs, measured responses, online communications, radio, television, direct mail and a very strong Early Voting/Absentee Ballot program to ensure a majority of voters (who support casinos) cast their ballots in the affirmative.

Implementation of the program should begin as soon as possible to bring interested parties together, develop a strong Amendment and winnable campaign. This will require a hard financial commitment on behalf of the investors, as well as a disciplined effort by both investors and members of the campaign team to focus solely on the agreed-upon messages, with no “free-lancing” of message execution.

Cost of Services – The greater reach and expansion of the gaming, the greater the expense. However, if the casino campaign is to emerge victorious, it must be well-funded, well-disciplined and strategically sound. With this in mind, we have provided a preliminary budget of $45 to $50 million, the cost of which would be shared by no fewer than three operators.


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ii. Detailed Costs by Line Item

Legal Scope of Work: (Atty. Don McTigue) Work to draft Amendment & Petition, work through the Ballot Board. Should protests arise during the campaign; additional fees will be billed hourly. Projected Cost: $25,000 Timeframe: January through November

Ongoing Strategic Consulting Scope of Work: The Strategy Group for Media and The Strategy Network will develop and oversee day-to-day campaign operations, manage all consultants and staff. Projected Cost: $495,000 Timeframe: February through October

Petition Process Scope of Work: Hire, train and manage the hundreds of Ohioans who will secure the signatures needed to place the issue on the ballot. We would propose that all names gathered should be placed in a database as they are collected to allow for ongoing communications with those who sign the petition, and work to get them to vote early in favor of the issue. Projected Cost: $4,000,000 Timeframe: January through June (July Supplemental collection only if necessary)

Polling Scope of Work: Pollster will develop and conduct public opinion research to assist effort in determining Amendment language and messages during the initial collection and campaign phases (i.e. Attitude polling, micro polling on demographics, Focus Groups, Nightly Tracking). Projected Cost: $900,000 Timeframe: January through October

Micro-Targeting& Voter ID Scope of Work: Taking messages from the polling, the Micro-Targeting operation will contact each Ohio voter to test messages, and build a “voter/customer” database. Projected Cost: $4,000,000 Timeframe: March through May & Resurvey August to September

Economic Impact Study and Follow-up Communications of Study Scope of Work: Prepare Economic Impact Study. Projected Cost: $250,000 Timeframe: March


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TV/Radio Advertising Scope of Work: Produce and advertise statewide broadcast and cable television as well as radio advertisements across Ohio. Projected Cost: $27,000,000 Timeframe: August to November 3rd

On-line Advocacy Scope of Work: Web ads for Ohio newspapers and to Ohio web visitors based upon ISP location and reach. Projected Cost: $100,000 Timeframe: August to November 3rd

Campaign Operations & Ambassador Outreach Program Scope of Work: Regional field representatives working with business, labor and partisan officials. Projected Cost: $1,730,000 Timeframe: February to November 3rd

Vote-By-Mail Program Scope of Work: Develop and implement Vote-By-Mail Application, chase program. Projected Cost: $2,000,000 Timeframe: August through October

Direct Mail Program Scope of Work: Develop and implement Direct Mail program and chase phone program. Projected Cost: $5,000,000 Timeframe: August through October

GOTV & Advocacy Phone Program Scope of Work: Develop localized phone outreach programs by county. Projected Cost: $500,000 Timeframe: September to October

Contingency Scope of Work: Campaigns must be prepared to adjust their focus and message to address attacks from opponents, and changes in the environment. Projected Cost: $4,000,000 Timeframe: January through November 3rd


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iii. Detailed Activities by Month

NOTE: In 2009, the Ohio General Assembly will address the State’s projected $7.3 Billion budget shortfall when it works to pass the 2010-2011 Biennial Budget. This budget must be finalized no later than June 30, 2009. Based upon the severity of the budget crisis, the state is facing significant reductions in service or increases in taxes. This lends new credibility to the state’s voters considering a limited Casino Amendment that creates thousands of construction and permanent jobs that can’t be outsourced or shipped overseas.

- Develop Casino Financing Team (i.e. Sponsors/funders of the effort)

January ‘09

- Weighing various options, price points, etc. - Engage Legal Counsel and General Consulting Team - Poll Testing the Amendment Draft & Concepts - Establish and fund committee/PAC - Amendment language testing - Draft Amendment - Collect initial 1,000 valid signatures - Submit Amendment’s Text and Summary to Attorney General and Secretary

of State (SOS) - Choose Economic Impact Study consultant

NOTE: Governor will conduct the Annual State of the State

- Amendment language certified

February ‘09

- Ballot Board hearing - AG Certification language inserted into Petition and Petition printed - Petition offices located, Directors hired - Develop Petition Collection Collateral: literature, t-shirts/sweatshirts - Petition Directors training - Petition Offices soft opening - Want ads placed for petitioners and Quality Control operations - Economic Impact Study underway - Micro-Targeting & Voter ID Operations begin


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March ‘09

- Collection of signatures begins - Economic Impact Study draft completed - Economic Impact Study marketing package begins development - Polling: Brushfire - Micro-Targeting & Voter ID Begins

April ‘09

- Economic Impact Study marketing package presented to State elected officials

- State Elected officials follow-up on Economic Impact Study marketing package

- State officials working on State Budget - Signature Collection continues - Micro-Targeting & Voter ID continues

May ‘09

- Economic Impact Study marketing package presented to County Elected officials

- County Elected officials follow-up on Economic Impact Study marketing package

- State officials continue working on State Budget - Signature Collection continues - Polling - Micro-Targeting & Voter ID concludes

June ‘09

- Ohio Legislature to vote on Ohio’s Biennial Budget (by June 30th) - Economic Impact Study marketing package presented to State elected

officials - Elected officials follow-up on Economic Impact Study marketing package - Signature Collection continues - Initial Filing with the SOS on or before June 30th


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July ‘09

- 2010 to 2011 Biennial Budget takes effect - Secretary of State (SOS) scans all petitions prior to dispatching to 88 county

Boards of Elections - If required signatures are secured, SOS will certify issue for ballot - If additional signatures collection effort falls short, SOS will allow

proponents an additional 10 days from the time of notice from SOS to collect more signatures. NOTE: Supplemental signatures must be filed with SOS within 10 days of notification from SOS of signature deficiency.

- Polling: Internet Ad Testing

August ‘09

- Prepare mail pieces for Vote-By-Mail (VBM) Application (for all identified supporters – post Micro-targeting)

- VBM Printing and Mail House process initiated - Micro-Targeting & Voter ID Resurvey Begins - Phone Call program process initiated

September ‘09

- Polling: Focus Groups - TV/Radio: Production and Broadcast - Micro-Targeting & Voter ID Resurvey Concludes - VBM Application delivered - VBM Chase Phone Calls processed - Canvass Opportunities for VBM Application Chase - Ambassador program continues to roll-out endorsements

October ‘09

- Polling: Nightly Tracking - Television/Radio: Ads continue to air - Board of Elections mail Ballots for Early Voting - Absentee Ballot Chase program begins - Editorial Board Visits

November ‘09

- Polling: Nightly tracking continues - TV/Radio ads conclude - GOTV/Visibility


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iv. Monthly Cash Flow

Phase I

Service Line Item Service Cost

January February March April May June July

Legal 25,000 12,500 12,500

Consulting 495,000 55,000 55,000 55,000 55,000 55,000 55,000

Petition 4,000,000 1,250,000 687,500 687,500 687,500 687,500

Polling 900,000 100,000 100,000 100,000 100,000

Micro-Targeting 4,000,000

1,000,000 500,000 500,000

Economic Impact Analysis 250,000 250,000

TV/Radio 27,000,000 500,000

On-line Advocacy 100,000 25,000 10,000 10,000 10,000 10,000 10,000

Campaign Operations 1,730,000 145,000 150,000 150,000 160,000 200,000 200,000

VBM Program 2,000,000

Direct Mail Program 5,000,000

GOTV Advocacy Program 500,000

Contingency Program 4,000,000

50,000,000 112,500 1,737,500 2,002,500 1,402,500 1,512,500 952,500 865,000

Phase II

Service Line Item Service Cost

August September October November

Legal 25,000

Consulting 495,000 55,000 55,000 55,000

Petition 4,000,000

Polling 900,000 50,000 200,000 250,000

Micro-Targeting 4,000,000 1,250,000 750,000

Economic Impact Analysis 250,000

TV/Radio 27,000,000 4,500,000 10,000,000 11,500,000 500,000

On-line Advocacy 100,000 10,000 10,000 5,000

Campaign Operations 1,730,000 200,000 250,000 275,000

VBM Program 2,000,000 1,000,000 1,000,000

Direct Mail Program 5,000,000 1,500,000 2,000,000 1,500,000

GOTV Advocacy Program 500,000 500,000

Contingency Program 4,000,000 2,000,000 2,000,000

50,000,000 8,565,000 16,265,000 16,085,000 500,000


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E. Supplemental Documents

i. Copy of 2008 Casino Amendment

Amendment to the Constitution proposed by Initiative Petition to be submitted directly to the Electors

AMENDMENT TITLE

Authorizing no more than one privately-owned casino to be operated in the State of Ohio with gross casino receipts taxes to be distributed among all 88 county governments in Ohio

SUMMARY The Amendment, to be enacted by adding new Section 6a to Article XV of the Ohio Constitution, will:

• Authorize no more than one privately-owned Ohio casino in the State of Ohio to be operated legally at a specified site in the northwest quadrant of the intersection of State Route 73 and Interstate 71 in Chester Township, Clinton County.

• Require the casino operator to pay a gross casino receipts tax of up to thirty percent (30%) which is to be distributed as follows: (i) up to one percent (1%) of the gross casino receipts tax collected may be used to fund problem gaming prevention and treatment programs; (ii) a reasonable amount as determined by the General Assembly shall be used to defray the reasonable administrative expenses of operating the Gaming Regulatory Commission; (iii) an amount sufficient to defray the expense of collecting and distributing the gross casino receipts tax shall be distributed to the fund or funds from which such expenses are paid; and (iv) the remaining gross casino receipts taxes collected to be distributed as follows: ten percent (10%) to the county in which the casino is located and ninety (90%) to be distributed on a per capita basis among all 88 counties in Ohio.

• Require the casino operator to make a minimum initial investment of $600 million for the development of a casino destination resort to include the casino, a hotel and other resort related amenities, and permit the state to establish a fee, not to exceed fifteen million dollars ($15 million), for the initial casino license.

• Provide that the initial casino license fee shall be treated as an interest-free advance on, and shall be credited against, the gross casino receipts taxes due from the licensee; and that no fee shall be charged for applying for a casino license or for renewing a casino license.

• Establish a Gaming Regulatory Commission, with members appointed by the Governor with advice and counsel of the Senate, to act as the State regulatory and licensing agency for ensuring the fairness and integrity of gaming activities conducted at the casino.

• Permit the casino to conduct certain gaming activities, including any type of card or table games, slot machines or electronic gaming devices permitted by the State of Nevada or any State adjacent to Ohio, except bets on races or sporting events.

• Provide a minimum age of twenty-one (21) for those placing wagers at the casino. • Provide that, if other casino operations are ever subsequently permitted at any additional sites in the State

of Ohio, the tax on Gross Casino Receipts at the casino authorized by this section shall not exceed the lesser of twenty-five percent or the percentage payable by any other casino operations subsequently authorized.

CERTIFICATION OF ATTORNEY GENERAL

Without passing on the advisability of the approval or rejection of the matter referred, but pursuant to the duties imposed on the Attorney General’s Office under Section 3519.01(A) of the Ohio Revised Code, I hereby certify that the summary is a fair and truthful statement of the proposed initiated constitutional amendment, adding Article XV, § 6a(A)-(G). Marc Dann Attorney General December 20, 2007

COMMITTEE TO REPRESENT PETITIONERS The following people are designated as a committee to represent the petitioners in all matters relating to its circulation: Ricky A. Lertzman 31980 Jackson Rd. Moreland Hills, Ohio 44022 Dr. Bradford A. Pressman 9776 Riverwood Lane Chagrin Falls, Ohio 44023 Matthew D. Lertzman 31980 Jackson Rd. Moreland Hills, Ohio 44022


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ii. Biographies of All Principals Rex Elsass Rex Elsass is the founder of The Strategy Group for Media and serves as President of the company. A native of Mansfield, Ohio, Elsass has produced hundreds of ads, including several national award winners for creative excellence.

An accomplished director, editor and political strategist, Rex has been a candidate, officeholder, Republican Party leader, campaign manager and public affairs professional. He formerly served as Executive Director of the Ohio Republican Party and has managed both local and statewide elections.

Rex has taught campaign strategy and tactics for the Republican National Committee and numerous state Republican parties. He traveled to Latvia and Lithuania on behalf of the International Republican Institute to teach campaign techniques to activists in the emerging democracies.

Rex serves on the board of the Ashbrook Center for Public Affairs and as an Elder at Northwest Presbyterian Church (PCA) in Dublin, Ohio.

Elsass earned his B.A. degree in Radio and TV Production and Performance from Ashland College.

Ian James As the founder and Chief Operating Officer of The Strategy Network, Ian James calls upon his 25 years of public relations, grassroots organizing, issue advocacy and campaign management to generate public awareness and support for a wide range of issues including gaming, telecommunications, health care, and environmental matters as well as an assortment of ballot measures. His years of working with organized labor, business and community groups as well as governmental bodies are routinely called upon to secure their support for a variety of measures.

Over the years, Ian has produced hundreds of direct mail pieces and winning comprehensive communications programs for various ballot issues and public affairs measures. In 2008, he oversaw the production and delivery of over 3 million pieces of highly targeted direct mail pieces in Ohio.

In addition, Ian has overseen and directed the collection of over 2 million signatures in Ohio since 2006 to place a variety of issues on the ballot. These issues include gaming, minimum wage increase, sick days and pay day lending reform.

Prior to creating The Strategy Network, Ian served in numerous governmental offices, senior campaign staff and lobbying positions in addition to serving as a corporate executive for Merv Griffin’s Players International in Illinois, Louisiana, Missouri and Nevada, where he served as Director of Community and Government Relations. His knowledge of industrial, corporate and public relations, as well as strategic guidance through partisan and non-partisan campaign efforts led The Ohio Magazine to acknowledge him as one of Ohio’s “brightest political strategist.” Ian also worked in the Ohio legislature as an Assistant to Speaker Vern Riffe, and in varying capacities for the Ohio House Democratic Caucus. Ian received his Bachelors of Arts from Ohio University where he studied political science.


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Neil Newhouse Neil Newhouse is a partner and co-founder of Public Opinion Strategies, a national political and public affairs survey research firm whose clients include leading political figures, Fortune 500 companies and major trade associations.

Public Opinion Strategies has been described by the New York Times as "the leading Republican polling company" in the country and the firm was named "Pollster of the Year" by the trade publication "Campaigns and Elections" for its work in the 2002 election cycle.

Neil has worked in public opinion research for more than 25 years, directed the research for thousands of individual projects and has experience in every aspect of opinion research. Neil has twice been named as one of the "Money 20" political consultants in the country who make a difference.

Neil has worked in the political field for more than 30 years, including stints as a Congressional Chief-of-Staff, a field representative for the Republican National Committee and as Political Director of the US Chamber of Commerce.

Neil has won praise from both sides of the aisle, described by Pennsylvania Democratic Governor Ed Rendell as "one of the most respected pollsters in the country" and recruited by Senator Joe Lieberman (I-CT) to provide polling and strategic guidance in his successful 2006 Independent bid for US Senate in Connecticut.

Neil also has extensive international experience, having completed various research projects in Australia, Jamaica, Kuwait, Bulgaria, Russia, Ukraine and Venezuela.

Prior to co-founding Public Opinion Strategies, Neil was executive Vice-President of The Wirthlin Group. Neil is originally from Kansas City, graduated from Duke University and attended graduate school at the University of Virginia. He currently lives in Alexandria with his wife (of 21+ years) and their two children.

Elsass Casino Plan1

Documents

Transcript of Elsass Casino Plan1