Washington, DC, 2004-2006:

Scott twice attempted to introduce a ballot initiative to legalize slot machines.

“A drive to legalize slot machines in the nation's capital is the brainchild of a wealthy young entrepreneur who has been denied or failed to obtain gambling licenses in five states where regulators found evidence of financial mismanagement, irregular accounting practices and hidden partnerships. “

“That campaign failed after election officials found that slots supporters committed fraud, forgery and other violations of local election laws during a frenzied weeklong petition drive aimed at winning a spot for the gambling measure on the November ballot. The board later fined slots supporters more than $622,000, a penalty that has yet to be paid.”

The Washington Post
June 21, 2004

Virgin Islands, 2006:

Scott’s company, Bridge Capital, received a 25-year tax exemption in 2006 from the Commonwealth of the Northern Mariana Islands that includes: no income tax, no business gross revenue tax, no excise tax, and no earnings tax.

“The no-taxes-for-25-years arrangement was announced by the new CNMI Governor, Benigno R. Fitial, who was elected to that post in November. Several years earlier, when he was a member of the lower house of the local legislature, Fitial had been elected to the speakership following the intervention of two emissaries of the well-known Washington lobbyist, Jack Abramoff.”

St. Thomas Source
March 8, 2006

Nevada, 1990s–2000s:

Scott had repeated issues with licensing and financial concerns.

"Dare I say deja vu over again," (Nevada Gaming Control) board member Brian Harris said during the Nov. 5, 1997, licensing hearing. "We go through this conversation with Mr. Scott every single time he comes before us. He can't answer questions, he doesn't provide information to our agents. His net worth is smoke and mirrors."

Reno Gazette-Journal
October 12, 2001

South Carolina, 1990s:

Scott operated several video poker establishments that encountered numerous legal and regulatory problems, ultimately declaring bankruptcy in 1999.  

“A South Carolina company owned by a financier of the District's gambling initiative held a controlling interest in gambling establishments in that state that failed to pay various taxes and violated state gaming laws before eventually going bankrupt five years ago.”

The Washington Times
July 14, 2004

Louisiana, 2000s:

The racetrack Scott owned consistently lost money and his CEO had a extensive criminal history. He sold the property in 2001 due to licensing concerns.

(Gaming Board Executive Bob)“Welch said the license was in violation of gambling suitability laws because the state police never investigated former Delta Downs owner Shawn Scott, who had an economic interest in the license. State police officers investigate the backgrounds and criminal history of any persons or business entities applying for a gambling license.”

(CEO Hoolae) “Paoa has convictions for theft, family abuse and assault from the 1980s and 1990s.”

The Associated Press State & Local Wire
November 20, 2001

New Mexico, 2000s:

The state’s Gaming Commission rejected Scott’s bid for a license in 2002 and for reconsideration in 2003.

"Based on Mr. Scott's pattern and practice, the Racing Commission believes that it is more likely than not, that if given the license to operate the casino and race track in Lea County, that Mr. Scott will sell the license in the near future for a large profit without the state of New Mexico, Lea County and Hobbs deriving any benefit, said the commission.”

Associated Press
January 3, 2003

New York, 2003:

The state’s Racing & Wagering Board denied his application for a track management license.

“The board denied licenses for Shawn Scott, the primary shareholder in Mid-State Racing, which runs the track, and Hoolae Paoa, the company's chief executive. Both had applied to be track managers, but the board did not find them fit to hold licenses…  Scott, according to the state board, made false statements on his application. A shareholders' lawsuit also alleges Scott and others have "looted" millions of dollars from the harness track through exorbitant loans.”

The Times Union (Albany, NY)
December 13, 2003

Maine, 2000s:

Scott was sued for defamation and issued a temporary restraining order related to a slots at racetracks referendum question in 2002-03.  He sold his interest in the harness track in Bangor in 2004 once it became clear the state’s Harness Racing Commission intended to deny his license application.

“Next came Maine Opportunities, another PAC funded by Scott's Capital Seven LLC to trash Scarborough Downs' upcoming referendums in Saco and Westbrook.” 

“As attorneys all over Maine kept one eye on the courthouse Tuesday, waiting for the decision on Nowhere Man's request for an all-purpose gag order, the consensus was that the most damaging document of all originated right here in Maine. It's the draft report by the racing commission's staff on Scott's do-or-die application for a racing license in Bangor.”

Portland Press Herald (Maine)
December 3, 2003

Idaho, 2004:

Scott failed in his attempt to introduce a ballot initiative legalizing video lottery terminals at racetracks. 

“(AG) Wasden also said that the constitutional ban on slot machines cannot be overturned by the initiative…”

“Group spokesman Paul Morand said they were still trying to count the number of signatures the group had gathered so far, and probably would not have an estimate until next week… it was far less than the required 40,772 signatures from registered voters needed to gain a place on the November ballot.”

The Associated Press State & Local Wire
January 15, 2004