Townhall.com, Where Your Opinion Counts
Talk Radio:   Bill Bennett   Mike Gallagher   Dennis Prager   Michael Medved   Hugh Hewitt   
BREAKING NEWS  LeftArrow - Townhall.com : Conservative, Political, Republican   RightArrow - Townhall.com : Conservative, Political, Republican  
Columns, funnies & more in your inbox!
  • Check the boxes and send us your email address to receveive your free newsletter
  • Your daily must-read of conservative columns, cartoons and news. Coulter, Sowell, Krauthammer and more.
  • Townhall.com’s weekly inside scoop on what’s happening behind the scenes in the world of politics. When news breaks, we report.
  • Signup to receive the latest daily Townhall cartoons
Wednesday, November 04, 2009
Ohio casinos to hit Mich., Ind. gambling taxes
By MIKE SMITH and DAVID N. GOODMAN
Vote on It:
Average Vote:
[+] Text [-]
 
Poll
Will the Democrats have the time to read their own health care bill before voting on it?


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. Continued...

1 2
| Full Article & Comments | Next >
Share:
Vote on It:
Average Vote:
 
Sign Up to Post Your CommentsSign Up to Post Your Comments
If you are already registered, click here to login. Otherwise, please take a few seconds to register with Townhall.com. Once you sign up, you’ll be able to post your comments immediately, use the action center, get podcasts, and more!
Note: Fields marked with a red asterisk (*) are required.
Salutation:
First Name:
*
Last Name:
*
Email:
*
Nickname:
*
Note: Nick name will be shown when you post comments.
Address 1:
*
Address 2:
City:
*
State:
*
Zip:
*
Phone:
      
Your daily must-read of conservative columns, cartoons and news. Coulter, Sowell, Krauthammer and more.
(Bi-Weekly) We highlight the best opportunities from our partners for surveys, action items and more.