Local news feed
Local news e-mail
HJN local mobileWho’s telling the truth on casinos?
Hot Topics
Related
W hen it comes to deciding how to vote on state Issue 3, it’s tough to cut through the confusing claims and counter-claims flying across the TV screen in 30-second bits.
The Dayton Daily News interviewed objective experts who monitor the gambling industry and asked them about what Ohioans should believe about the casino issue.
Eugene M. Christiansen, chief executive of Christiansen Capital Advisors; Clyde Barrow, professor of public policy at the University of Massachusetts, Dartmouth; and Lia Nower of the Center for Gambling Studies at Rutgers University each gave their views about jobs, taxes, and other issues.
Issue 3 would put one casino in Toledo, Cleveland, Columbus and Cincinnati. It’s backed by Penn National Gaming, which owns the Toledo Raceway and Hollywood Casino in southern Indiana; and Dan Gilbert, majority owner of the Cleveland Cavaliers. It’s endorsed by a number of unions and elected officials.
It’s opposed by the Ohio Council of Churches, Ohio Roundtable, U.S. Sen. George Voinovich, Progress Ohio and Truth PAC, which is funded largely by MTR Gaming.
Jobs
Proponents claim 34,000 jobs would be created — 19,000 temporary construction jobs and 15,000 permanent positions. Are these estimates accurate?
Barrow: “I thought that was a bit inflated based on the contours of the proposal.” Casinos typically employ 2,000 to 2,500 each, which would mean about 10,000 jobs for the four in Ohio, he said. He estimated the construction work would generate 2,000 jobs per casino for 18 to 24 months — a total of 8,000.
Nower: It’s unclear how many jobs may be lost as discretionary income shifts from other entertainment venues to the casinos.
Investment
Each casino operation is expected to invest at least $250 million. What kind of casino does that buy?
Christiansen: “It’s not going to buy you a palace. It’s not going to buy you a destination resort.” Such a casino would likely draw people from the region or from up to an hour drive away, he said.
Taxes
Casino operators are expected to pay 33 percent of their gross revenues to cities, counties and school districts, which is expected to amount to $650 million a year. Is this a fair tax rate and how does it compare to rates in other states?
Christiansen: A 33 percent rate is in the mid-range among jurisdictions that have legalized gambling in the last decade. Barrow called it a tad high and said non-traditional gaming states average about 23 percent.
Licensing fees
Each casino must pay a $50 million up front licensing fee to the state. Is that a fair price and could Ohio have gotten more if it had been bid out?
Barrow: “They probably could’ve gotten more.” Right now, based on the size of the facility, the licenses are going for $50 million to $100 million.
Christiansen, meanwhile, contends that license fees are unfair taxes that only take money away from the capital available to invest in the facility. License fees burden the casino with debt service and some gaming companies are balking at doing business in states where such fees are high, he said.
Latest news blog posts
Copyright © 2010 Hamilton Journal-News, Hamilton, Ohio, USA.All rights reserved.
By using this site, you accept the terms of our Visitors Agreement and Privacy Policy. About our ads. You may wish to note our other business policies.
1:09 PM, 10/26/2009
12:29 PM, 10/26/2009
12:16 PM, 10/26/2009
11:56 AM, 10/26/2009
11:48 AM, 10/26/2009