Dotty's

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 that year had authorized video poker machines to be installed in bars and taverns, under the aegis of the Oregon Lottery. The first poker machines began operation in March 1992,{{cite news|title=Video poker comes on line|newspaper=The Oregonian|location=Portland|publisher=via NewsBank|first=Gail Kinsey|last=Hill|date=March 24, 1992|accessdate=2012-06-06|url=http://docs.newsbank.com/openurl?ctx_ver=z39.88-2004&rft_id=info:sid/iw.newsbank.com:AWNB:ORGB&rft_val_format=info:ofi/fmt:kev:mtx:ctx&rft_dat=0EB08724AC6CCC7C&svc_dat=InfoWeb:aggregated5&req_dat=0D6884C8DA6CD5B5}} {{subscription required}} and by the next month, five Dotty's delis were open.{{cite news|title=Lottery, liquor commissions take hard look at Dotty's delis|newspaper=The Oregonian|author=Jim Kadera|date=November 12, 1993|url=http://docs.newsbank.com/openurl?ctx_ver=z39.88-2004&rft_id=info:sid/iw.newsbank.com:AWNB:ORGB&rft_val_format=info:ofi/fmt:kev:mtx:ctx&rft_dat=0EB13DDDC6FB59B8&svc_dat=InfoWeb:aggregated5&req_dat=0D6884C8DA6CD5B5}} {{subscription required|via=NewsBank}} The Oregon State Police, 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 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.{{cite news|title=Lottery says Dotty's delis take too big a bite|newspaper=The Oregonian|author=Steve Suo|date=February 12, 1998|url=http://docs.newsbank.com/openurl?ctx_ver=z39.88-2004&rft_id=info:sid/iw.newsbank.com:AWNB:ORGB&rft_val_format=info:ofi/fmt:kev:mtx:ctx&rft_dat=0EB08AC279CFD853&svc_dat=InfoWeb:aggregated5&req_dat=0D6884C8DA6CD5B5}} {{subscription required|via=NewsBank}}

As of 2005, Dotty's had 26 locations in Oregon, and earned $6.4 million in lottery commissions.{{cite news|title=Lying in Nevada, laying low in Oregon|newspaper=The Oregonian|author=Steve Duin|date=February 28, 2006|url=http://docs.newsbank.com/openurl?ctx_ver=z39.88-2004&rft_id=info:sid/iw.newsbank.com:AWNB:ORGB&rft_val_format=info:ofi/fmt:kev:mtx:ctx&rft_dat=1101B4E2D2775F08&svc_dat=InfoWeb:aggregated5&req_dat=0D6884C8DA6CD5B5}} {{subscription required|via=NewsBank}}

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.{{cite news|title=Oregon Lottery scratches Dotty's Delis owner|newspaper=The Oregonian|author=Steve Duin|date=December 17, 2006|url=http://docs.newsbank.com/openurl?ctx_ver=z39.88-2004&rft_id=info:sid/iw.newsbank.com:AWNB:ORGB&rft_val_format=info:ofi/fmt:kev:mtx:ctx&rft_dat=1414C4D949F0EFE8&svc_dat=InfoWeb:aggregated5&req_dat=0D6884C8DA6CD5B5}} {{subscription required|via=NewsBank}}Steve Duin for The Oregonian. January 02, 2007 [http://blog.oregonlive.com/steveduin/2007/01/dottys_yes_estey_no.html Dotty's, Yes; Estey, No]Will Evans for National Public Radio and The Center for Investigative Reporting. Oct 31, 2008 [https://www.npr.org/blogs/secretmoney/2008/10/estey.html RightChange gets money from controversial businessman]John L. Smith for the Las Vegas Review Journal. March 30, 2011. [http://www.reviewjournal.com/john-l-smith/dottys-seems-be-grandmothered-able-ignore-rules Dotty's seems to be 'grandmothered in,' able to ignore the rules] Faced with the threat of losing Dotty's lottery retailer contract,[http://cironline.org/sites/default/files/legacy/files/Esteytermination.pdf Letter from Oregon Lottery to R Craig Estey, December 13, 2006] {{Webarchive|url=https://web.archive.org/web/20141209045325/http://cironline.org/sites/default/files/legacy/files/Esteytermination.pdf |date=2014-12-09 }}, linked from [https://www.npr.org/blogs/secretmoney/2008/10/estey.html NPR article already cited] and [http://cironline.org/blog/post/rightchange-gets-money-controversial-businessman-372 Mirrored article at CIR website] {{Webarchive|url=https://web.archive.org/web/20141209045407/http://cironline.org/blog/post/rightchange-gets-money-controversial-businessman-372 |date=2014-12-09 }}{{cite news|title=Oregon Lottery tells chain owner to sell or lose state contract|newspaper=Associated Press News Service|date=January 4, 2007|url=http://docs.newsbank.com/openurl?ctx_ver=z39.88-2004&rft_id=info:sid/iw.newsbank.com:AWNB:APNS&rft_val_format=info:ofi/fmt:kev:mtx:ctx&rft_dat=1414C4D949F0EFE8&svc_dat=InfoWeb:aggregated5&req_dat=0D6884C8DA6CD5B5}} {{subscription required|via=NewsBank}} 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.{{cite news|title=Craig Estey exits with wallet bulging|newspaper=The Oregonian|author=Steve Duin|date=March 1, 2007|url=http://docs.newsbank.com/openurl?ctx_ver=z39.88-2004&rft_id=info:sid/iw.newsbank.com:AWNB:ORGB&rft_val_format=info:ofi/fmt:kev:mtx:ctx&rft_dat=14128D85ACD91FF8&svc_dat=InfoWeb:aggregated5&req_dat=0D6884C8DA6CD5B5}} {{subscription required|via=NewsBank}} The new owners took possession in March 2007, with the Lottery itself agreeing to operate the stores on a temporary basis.{{cite news|title=One of largest lottery retailers in state under new ownership|newspaper=Eugene Register-Guard|agency=AP|date=March 7, 2007|url=https://news.google.com/newspapers?nid=1310&dat=20070307&id=5fRYAAAAIBAJ&sjid=nPADAAAAIBAJ&pg=5828,1362463}}

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.{{cite news|title=Station Casinos Inc.'s brewery approved|newspaper=Las Vegas Review-Journal|author=Sean Whaley|date=December 22, 1995|url=http://global.factiva.com/redir/default.aspx?P=sa&an=lvgs000020011025drcm00h21&cat=a&ep=ASE}} {{subscription required|via=Factiva}} 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.{{cite news|title=Nevada regulators may revise 'post time' bets for horse races|newspaper=Associated Press Newswires|date=May 16, 2002|url=http://global.factiva.com/redir/default.aspx?P=sa&an=aprs000020020517dy5h000bv&cat=a&ep=ASE}} {{subscription required|via=Factiva}}

Opposition to Dotty's arose in 2010,{{cite news|title=Dotty's: A tavern or slot parlor?|newspaper=Las Vegas Review-Journal|author=Howard Stutz|date=December 17, 2010|url=http://www.reviewjournal.com/business/casinos-gaming/dottys-tavern-or-slot-parlor|accessdate=2013-09-20}} led by locals casino operators Station Casinos and Boyd Gaming.{{cite news|title=Too much success catches up to Dotty's|newspaper=Las Vegas Review-Journal|author=Howard Stutz|date=March 6, 2011|url=http://www.reviewjournal.com/business/casinos-gaming/too-much-success-catches-dottys|accessdate=2013-09-20}} 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.{{cite news|title=Gaming board won't change licensing procedures|newspaper=Las Vegas Review-Journal|author=Howard Stutz|date=April 7, 2011|url=http://www.reviewjournal.com/business/casinos-gaming/gaming-board-wont-change-licensing-procedures|accessdate=2013-09-20}} Similar restrictions were adopted months later at a statewide level by the Gaming Commission.{{cite news|title=Dotty's casino business plan stalled by regulation changes|newspaper=Las Vegas Review-Journal|author=Howard Stutz|date=August 25, 2011|url=http://www.reviewjournal.com/business/casinos-gaming/dottys-casino-business-plan-stalled-regulation-changes|accessdate=2013-09-20}} 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.{{cite news|title=Dotty's meets new law's requirements, gets OK to open two more taverns|newspaper=Las Vegas Sun|author=Cy Ryan|date=August 8, 2013|url=http://www.lasvegassun.com/news/2013/aug/08/dottys-meets-new-laws-requirements-gets-ok-open-tw/|accessdate=2013-09-20}}

In August 2013, Dotty's agreed to acquire the Hacienda Hotel and Casino near Boulder City, its first full hotel-casino.{{cite news|title=Tavern operator Dotty's to acquire Hacienda near Boulder City|newspaper=Las Vegas Review-Journal|author=Howard Stutz|date=August 2, 2013|url=http://www.reviewjournal.com/business/casinos-gaming/tavern-operator-dottys-acquire-hacienda-near-boulder-city|accessdate=2013-09-20}} In July 2014, Dotty's agreed to buy the River Palms in Laughlin.{{Cite news | title = Agreement struck to sell River Palms | work = Laughlin Nevada Times | accessdate = 2014-07-06 | date = 2014-07-02 | url = http://www.mohavedailynews.com/laughlin_times/agreement-struck-to-sell-river-palms/article_30e1e87a-0234-11e4-9d68-0019bb2963f4.html }}

Illinois began video gambling operations in October 2012, with bars allowed to install as many as five slot machines.{{cite news|title=It's official: Video gambling now legal in Illinois|newspaper=Chicago Tribune|author=Erin Meyer|date=October 9, 2012|url=https://www.chicagotribune.com/2012/10/09/its-official-video-gambling-now-legal-in-illinois/|access-date=2013-09-20}} 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.{{update inline|date=October 2023}}

{{Reflist|35em}}

• {{Official website|http://www.dottys.com/|Dotty's}} (Nevada)
• {{Official website|http://www.dottyscafe.com/|Dotty's Cafe}} (Illinois)

Category:1991 establishments in Oregon

Category:Casinos in Illinois

Category:Companies based in Chicago

Category:Gambling companies of the United States

Category:Hospitality companies of the United States

Category:Restaurants in Oregon