Dotty's is a chain of slot machine parlors with about 175 locations in

Nevada Nevada ( ; ) is a U.S. state, state in the Western United States, Western region of the United States. It is bordered by Oregon to the northwest, Idaho to the northeast, California to the west, Arizona to the southeast, and Utah to the east. N ...

Oregon Oregon () is a U.S. state, state in the Pacific Northwest region of the Western United States. The Columbia River delineates much of Oregon's northern boundary with Washington (state), Washington, while the Snake River delineates much of it ...

and

Montana Montana () is a state in the Mountain West division of the Western United States. It is bordered by Idaho to the west, North Dakota and South Dakota to the east, Wyoming to the south, and the Canadian provinces of Alberta, British Columbi ...

and another 150 locations planned in

Illinois Illinois ( ) is a U.S. state, state in the Midwestern United States, Midwestern United States. Its largest metropolitan areas include the Chicago metropolitan area, and the Metro East section, of Greater St. Louis. Other smaller metropolita ...

. The business model is controversial, with sites "offering minimal food and beverage choices with a heavy focus on gambling."Howard Stutz for the Las Vegas Review-Journal July 26, 2014
Dotty’s taverns are simply complex
/ref> The chain has a clean, well-lit atmosphere meant to invoke "your grandmother's kitchen" and is demographically targeted towards women aged 35 and older.

History

Oregon

The chain was founded in Oregon in 1991 by Craig Estey, whose family owned a major vending machine and food distribution service. The

Oregon Legislature The Oregon Legislative Assembly is the state legislature for the U.S. state of Oregon. The Legislative Assembly is bicameral, consisting of an upper and lower house: the Senate, whose 30 members are elected to serve four-year terms; and the Ho ...

that year had authorized

video poker Video poker is a casino game based on five-card draw poker. It is played on a computerized console similar in size to a slot machine. History Video poker first became commercially viable when it became economical to combine a television-like moni ...

machines to be installed in bars and taverns, under the aegis of the

Oregon Lottery The Oregon Lottery is run by the government of the U.S. state of Oregon. It is a member of the Multi-State Lottery Association (MUSL). History The Oregon Lottery was authorized by Oregon Ballot Measure 5 which was passed by voters in the 1984 ...

. The first poker machines began operation in March 1992, and by the next month, five Dotty's delis were open. The

Oregon State Police The Oregon State Police (OSP) is a law enforcement agency of the U.S. state of Oregon. The OSP enforces all of Oregon's criminal laws and assists local law enforcement agencies. Terri Davie has served as Superintendent since November 1, 2020. The ...

, responsible for background checks on lottery retailers, objected to licensing the delis, arguing that they were not the type of business intended by the Legislature to have video poker, but its concerns were overruled by the lottery's director, Jim Davey. In late 1993, when Dotty's sought to open its sixteenth outlet, Davey's successor, Dan Simmons, sought an opinion from the

Attorney General In most common law jurisdictions, the attorney general or attorney-general (sometimes abbreviated AG or Atty.-Gen) is the main legal advisor to the government. The plural is attorneys general. In some jurisdictions, attorneys general also have exec ...

as to whether he could deny the license on the basis that Dotty's was primarily a gambling business. A rule was instituted requiring a business to be at least a year old before becoming a lottery retailer, but Estey sued the state and was granted a waiver from this new requirement. Another rule was enacted requiring retailers to earn no more than two-thirds of their total income from the lottery, and a 1997 audit found that 21 of the 22 Dotty's outlets were in violation. As of 2005, Dotty's had 26 locations in Oregon, and earned $6.4 million in lottery commissions. In 2006, Estey came under investigation by the Lottery for alleged incidents of domestic violence against his wife, and for lying to Nevada gaming regulators about the incidents.Will Evans for National Public Radio and The Center for Investigative Reporting. Oct 31, 200
RightChange gets money from controversial businessman
/ref> Faced with the threat of losing Dotty's lottery retailer contract,Letter from Oregon Lottery to R Craig Estey, December 13, 2006
, linked fro

an
Mirrored article at CIR website
Estey was forced to sell Dotty's locations in Oregon to a group of investors from South Dakota, including Dan Fischer and Marwin Hofer, at a sales price reportedly higher than $15 million. The new owners took possession in March 2007, with the Lottery itself agreeing to operate the stores on a temporary basis.

Nevada

Estey made his move into Nevada in 1995, gaining approval from the Nevada Gaming Commission for six Dotty's bars built along the model of the Oregon chain. By 2002, there were eight Dotty's locations in the state, and the chain was pushing into Northern Nevada with three planned locations in Reno and Carson City. Opposition to Dotty's arose in 2010, led by locals casino operators Station Casinos and

Boyd Gaming Boyd Gaming Corporation is an American gaming and hospitality company based in Paradise, Nevada. The company continues to be run by founder Sam Boyd's family under the management of Sam's son, Bill Boyd (born 1931), who currently serves as the co ...

. Most Dotty's locations operate under a "restricted" gaming license, allowing up to 15 slot machines in a business such as a bar or convenience store, where gaming is "incidental" to the main business. Opponents argued that Dotty's violated this restriction, with gaming accounting for more than 90 percent of revenue at some locations. Dotty's opponents were successful in April 2011, convincing the Clark County Commission to adopt rules that taverns with slot machines must have at least 2,500 square feet of space, at least eight bar-top slot machines, and a kitchen operating at least 12 hours a day, none of which would be satisfied by the typical Dotty's location. Similar restrictions were adopted months later at a statewide level by the Gaming Commission. By mid-2013, Dotty's was close to opening new locations with bar and restaurant facilities to comply with the stricter regulations, with the total number of locations in Nevada set to grow to 97. In August 2013, Dotty's agreed to acquire the

Hacienda Hotel and Casino Hoover Dam Lodge is a hotel and casino near Boulder City, Nevada. It is owned and operated by Richard Craig Estey ( Nevada Restaurant Services). It was previously the Gold Strike until it was largely destroyed by an accidental fire on June 16, 1 ...

near Boulder City, its first full hotel-casino. In July 2014, Dotty's agreed to buy the

River Palms The Laughlin River Lodge (formerly Sam's Town Gold River, Gold River and River Palms) is a hotel and casino on the banks of the Colorado River in Laughlin, Nevada. It is owned and operated by Richard Craig Estey ( Nevada Restaurant Services). Th ...

in Laughlin.

Illinois

Illinois began video gambling operations in October 2012, with bars allowed to install as many as five slot machines. Dotty's soon made its move into the state, announcing plans to open 150 Dotty's Cafes, mostly in strip malls in the suburbs of Chicago.

References

External links

* (Nevada) * {{Official website, http://www.dottyscafe.com/, Dotty's Cafe (Illinois) 1991 establishments in Oregon Casinos in Illinois Companies based in Chicago Gambling companies of the United States Gambling in the United States Hospitality companies of the United States Restaurants in Oregon