Ohio Casinos To Hit Mich., Ind. Gambling Taxes
Published: November 5, 2009
INDIANAPOLIS—Ohio voters have approved the opening of casinos in Toledo and three other cities, leaving officials and gambling interests in neighboring Indiana and Michigan worried that millions of dollars in gambling revenues—and taxes—are at risk.
Indiana’s casinos pay more than $900 million in state and local taxes annually. A report released last month by the Indiana Legislative Services Agency predicted the competition from Ohio would lead to the state losing more than $100 million of that slice of the gambling pie.
Any loss of casino tax revenue would also hurt Detroit and Michigan, which already face towering budget deficits. The state took a $121 million share of the Detroit casinos’ $1.36 billion in revenues last year.
On Tuesday, Ohio voters approved a ballot issue to allow one casino each in Cincinnati, Cleveland, Columbus and Toledo.
“We’re cautiously optimistic there’s going to be a bit of an impact but not a profound impact,“ Richard Kalm, executive director of the Michigan Gaming Control Board, told The Associated Press on Wednesday. He said Detroit’s casinos get most of their business from people within 50 miles and are “not as much of a destination market as, say, Las Vegas or Atlantic City.“
The analysis released Oct. 19 by the Indiana Legislative Services Agency, the General Assembly’s nonpartisan research arm, predicts that three casinos in southeastern Indiana - which rely heavily on patrons from the Cincinnati area - would be hit the hardest.
The Hollywood Casino in Lawrenceburg, Grand Victoria Casino in Rising Sun and Belterra Casino near Vevay - all downstream from Cincinnati - could lose 38 percent of their admissions and $260 million in gambling revenues in the first year after the Ohio casinos open, amounting to a $93 million cut in the taxes they pay, according to the report.
Furthermore, Hoosier Park’s casino in Anderson, about 25 miles northeast of Indianapolis, would lose gambling customers to a new Toledo casino, costing the state another $9 million, it said.
“They’re going to get smacked and I’m not sure what the right solution is for them,“ Indiana Senate Appropriations Chairman Luke Kenley, R-Noblesville, told The Associated Press on Tuesday.
“It is a big hit, a significant hit,“ said Mike Smith, president of the Casino Association of Indiana.
Mike Rozow, president of the Dearborn County Chamber of Commerce, said the Hollywood Casino had turned “an old town into a modern attraction” and would be able to compete with a Cincinnati casino - even though it will lose some customers.
Detroit casinos also put on a positive face.
“We believe that Ohio casinos would have a minimal impact on our revenue,“ said Jamaine Dickens, spokesman for Las Vegas-based MGM Mirage Inc., which owns MGM Grand Detroit. He said Ohioans account for 7 percent of its revenue.
“Regardless of what is going on in Ohio, we believe that customers will continue to visit MotorCity because of the unique, high-quality products and services,“ said Jacci Woods, a spokeswoman for the Detroit casino.
Nevertheless, gambling industry analyst Jake Miklojcik said Detroit risks a hemorrhage of Michigan gamblers as well as those who now visit from Ohio.
At MotorCity Casino, patron Greg Romps said he would probably sample Ohio’s casinos, especially the one planned for nearby Toledo.
“These new casinos are so nice. They make them like Vegas,“ said Romps, 67, of Livonia, Mich.
Kenley said voter approval of the Ohio establishments would increase pressure on Indiana lawmakers to do something to keep the state’s casinos competitive, including restructuring the way they are taxed.
Smith suggested lawmakers approve tax credits for casino investments to help them become more regional resort locations.
A big mover behind the Ohio casino campaign is Dan Gilbert, founder and chairman of Michigan-based Quicken Loans Inc. and owner of the NBA’s Cleveland Cavaliers.
He said he remains committed to Detroit’s development, as well as to Ohio’s, and said Ohio voters showed they see casinos as “the right plan at the right time.“
For additional information, stay with NBC 4 and refresh nbc4i.com—Where Accuracy Matters.
To submit a story idea or news tip, e-mail
.
MORE: NBC 4 Local News | Local Crime News
NBC 4 SPORTS: Sports News, Video
NBC 4 POLITICS: Headlines, Interactives & Video
Advertisement
Reader Reactions
Oh and Rebekkah,
I am sorry about the loss of your job! I cannot fathom that and I am grateful every day for mine. The point I was trying to make is about all the FAT AT THE TOP. If 2/3 management in State government would be cut and bargaining unit staff HIRED to do the work, then it would be a GOOD use of State taxpayer money; and then maybe people like you could get a job. Gambling doesn’t bother me if done for entertainment; what bothers me is mismanagment of money by lawmakers and State agencies who only keep unnecessary positions at the top and look out for themselves: greed.
Rebekkah,
Yes, the casting lots does ring a bell. I AM NOT GAMBLING ON JESUS’ CLOTHES. I think that is the issue. Gambling has always been a part of every culture. Native Americans gambled historically before they ever heard of Jesus! To me, gambling is not immoral. Overeating can be immoral; ever heard of the sin of gluttony? Does that mean we shouldn’t eat? Scripture says that there is a time and place, a season, if you will. It is about the INTENT. If you over-do, or do for the WRONG reasons. What to me is sinful, is how the lawmakers of this state are out of touch with the REAL problems in it. THAT IS SINFUL! They are like the ancient Pharisees in that they cannot “get it”. Casting lots at the feet of Jesus Christ is different than gambling for entertainment. I just came back from Las Vegas for the first time and yes, I did gamble. Had fun but that’s it. Could care less about it and was more concerned with the sin of their neglect for their homeless people than anything. I was so moved that I wrote letters to the Mayor of Las Vegas and the Governor of Nevada. My priorities are different from yours; I don’t see the “sin” in gambling but I do see the sin in waste.
I do agree with you when it comes to the state budget and they things they could cut out of it. There is quite a bit they could do away with and save a ton of money and then the state workers would not need to take pay cuts or furlough days. That is another discussion for another article. I know it is hard for everyone out there, but be thankful you have a job during this time. I lost mine a few weeks ago and I would have gladly taken a pay cut, furlough days, just to keep a steady income coming in with health insurance for my kids. It could always be worse.
Since you are a Christian, same as I then you should understand as well as I do why gambling is not right. Does the gaurds gambling for Jesus personal belongings at the foot of the cross ring a bell? Well it should! Yes, it is a question of maorals when we are Christians.
YOU CANNOT REGULATE MORALITY. I am a Christian and I think that the State can benefit from this. The question is why can’t the lawmakers in this State and the Governor manage the State any better than they do? As a State-worker, I have had my meager pay cut already by almost 200 a month and got 10 days furlough a year. I can’t live on what I earn (I live very modestly) and I work extemely hard; now doing the work of two people! Yet, I see management being given menial tasks, including bargaining unit work, to keep them in jobs. IN other words, a payrange 13 or 14 is doing the work of a lesser staff in an entry-level or slightly above. There are supervisors who don’t supervise anybody or maybe 1 or 2 ppl. THIS IS A WASTE OF TAXPAYER MONEY! WE HAVE 3 TIMES THE AMOUNT OF MANAGEMENT WE NEED!!! But again, the legislators in this State want to keep cutting those of us at the bottom WHO DO THE WORK! And now some idiot senator is proposing another 5% pay cut. I can’t live now! This is the problem, not gambling. If you want to help OHIO, get rid of 2/3 of MANAGEMENT employed (notice I didn’t say “working”) by Ohio. THAT WOULD GENERATE REVENUE AND SAVE A BUNDLE!!! THIS IS WHAT NEEDS TO BE EXAMINED AND CLOSELY.
People on here say we are being silly worring about the doom and gloom it might bring, but lets face it, it is not silly. If we think this is going to bring in tons of jobs, well think again on that one, and it will have a negative impact on the surrounding areas.
Las Vegas may have minimal instance of crimes but they have been there for years and they are adept at how to handle to it, and lets not forget prostitution is also legal there.
Las Vegas also started out in the middle of no where and built up from there. Columbus’ casino is going to be placed in a centralized location that is surrounded by impoverished neighborhoods. I know because I grew up in one of them. It was even reported that they did not figure in the social impact that these casinos would have on the neighborhoods they were placed in.
Some people in these neighborhoods already sell their Foodstamps and WIC to buy beer, cigarettes, and lottery tickets. Drugs and prostitution is rampant is some of these areas, and are some of us really that numb in the head to think that these will not get worse? Gambling addiction will increase, alcoholism will increase, and these families will be without more often than they are now.
Will our Police Department be able to handle the overflow of traffic and calls to and around the casino? Are the tax payers going to have to pay for their extra training? Are the taxpayers going to have to foot the bill for more EMT’s and their updated training? YES WE WILL! Is it fair to burden the taxpayers with these extra costs during these hard economic times? NO IT IS NOT!
Does anyone on here know what it takes to work in a casino? Besides the fact that you have to be: Bonded, Pass FBI Background Check, Credit Check, Reports from numerous law enforcement areas - People actually attend school to learn the trade of dealing cards.They are not going to hire some garage Texas Hold’em Dealer who gambles every Thursday with their buddie! They are going to hire people with EXPERIENCE, which means PROFFESIONALS! We obviously do not have any of those in the middle of No Casino City of Columbus!
Where do you think they will get these trained professional dealers, trained high tech security people, experienced cash fault workers, and lets not forget experienced 4-5 star hotel workers? They will be hired from OUT OF STATE! You know the states that already have casinos! Ohioans will be lucky if we get the jobs as Valet parkers, servers, and lowly housekeeping positions that pay just above minimum wage.
WAKE UP PEOPLE! It is not going to benefit the people of Columbus at all! It will benefit the casino because people will go in there and spend their money thinking they are doing something important, what a joke!
And - I don’t live in Cincinnati. I live in Columbus. Cincinnati already has casinos in KY. We don’t. Big difference.
Big Rick - spare me. Dude, where are the slots at race tracks? The reality is - taxpayers won’t see any money from this for years at the earliest and I am willing to bet that we will see nothing close to the amount of money they claim they will generate. You are all just so scared about the economy that you settled for the dumbest deal around. This is not going to be a big casino. It is going to be the same type of casino that is found in IN and MI. No one visits them except the locals and the more and more casinos are built, the less and less money they will have to pay in taxes to the community (which is the whole point of this mess). And you are right in thinking that I am more than a little disappointed that this passed. I don’t care that people in Ohio want casinos - I do care that idiot voters more worried about the people against casinos being religious zealots than the ACTUAL CASINO DEAL!!!! It is disgusting - the owners will rake in a ton of money, we will see very little of it.
Those of you who sit there on your high horses acting all “there is nothing you can do about it” snotty - then you deserve what will be coming - absolutely NO monetary help. None, zip. Our schools will continue to suffer, our communities will rot. Keep Ohio money in Ohio - do you even know what you are talking about???
Plus, who in their right mind will come to Columbus to gamble? Geez - not like we were going to build the casino on our white sandy beach.
Continue to be a tool. Continue to go around and act holier than thou. I just hope that this goes to voters and the casino is never built.
Big Rick - Casual crime happens all the time in Vegas casinos, what means it can’t happen here? Gambling is an addiction. Hey, if you voted for this then you’re obligated to vote for a Cocaine resort being built in your back yard! Thats basically the same exact thing as a casino.
It is funny how bitter some of the people who lost on this issue are. Here is the bottom line, there is going to be a casino in the Columbus area and there is not a thing you can do about it. And all your fear and tales of gloom and doom will prove to be just silly worries when the thing gets going.
Post a Comment(Requires free registration)
- Please avoid offensive, vulgar, or hateful language.
- Respect others.
- Use the "Flag Comment" link when necessary.
- See the Terms and Conditions for details.
Advertisement