The state of Ohio soon faces a vote on whether to legalize full-fledged, Vegas-style casinos, and one of the leading proponents of “Ballot Measure 3″ is Cleveland Cavaliers Owner Dan Gilbert. If the proposition passes, Gilbert will own downtown casinos in Cincinnati and Cleveland, raking in hundreds of millions each year.

(Brah, get some rest)

But the idea has plenty of detractors. Detractors who have dredged up an ugly episode from Gilbert’s college days at Michigan State.

Turns out Gilbert was a bookie in college, and no matter how much he tries to downplay the “business” he was operating, the police obviously took what he was doing quite seriously:

According to a Jan. 6, 1982, story in The State News, Michigan State’s student newspaper, police said the ring began as a social event among eight to 12 friends, but quickly grew.

The State News reported at the time that bets typically ranged from $20-$50, some wagers were as much as $200, and one customer was more than $1,000 in debt.

Police said that’s what brought the ring down. A frightened student went to police, who set up an undercover officer to pose as the student’s father and arrange a meeting to pay the debt. The officer was shown the operation’s books, and arrests followed soon afterward, catching the college students by surprise.

“To use today’s phrasing, it was shock and awe on their part that this was happening to them, that a police officer was there,” said Kim Warren Eddie, former chief assistant prosecutor for Ingham County.

Eddie said he doesn’t remember the names of the students involved.

Jeff Patzer, an assistant prosecutor at the time, told The State News in 1982: “I think we scared the bejabbers out of them.”

Gilbert said he didn’t want to go through a trial and that’s why he chose to deal with the events the way he did, disposing of it in 60-90 days.

Gilbert was fined and ordered to do 100 hours of community service.

So the great debate going on in Ohio is whether someone who ran a bookmaking operation that was busted by undercover police should be allowed to run a casino.

Based on Gilbert’s subsequent clean record and extraordinary business success since, I say yes. He was 19 at the time of his indiscretion.

The vote for the casino measure is Nov. 3. Latest polling date indicates it should pass, and rather easily.