Tuesday, September 9, 2008

Ohio Casino a Bad Deal

Ohio will likely see another gambling issue on its November ballot. The new one has been described as the worst attempt yet to bring casinos to the state. This one is an amendment to the state constitution that was basically written by one man, Lyle Berman of Minnesota, and his lawyers for his benefit. He is a casino owner and he helps manage 5 Indian casinos. He would have an 80% interest in this casino. He wants to set up a monopoly for himself, have his be the one non-Indian casino in the state. If this proves to be a bad deal for the state later, it is written into the constitution and can not easily be changed. This amendment exempts him from local zoning laws, some liquor controls, and several taxes.

The amendment requires him to pay 27% of his profits to the counties, 2% to help gambling addicts, and 1% extra to Clinton County where the casino would be. However, if an Indian casino comes into the state, his taxes fall to only 2-3% of his profits. Federal law prohibits an Indian casino from having a higher level of gambling than is in the state at the time it comes. Now an Indian casino could have bingo. But if Berman brings in slot machines and other games, the Indians could set up casinos and offer what he has. The Shawnee are already negoitiating options to buy in 4 areas of the state. He would be happy to help manage the Indian casinos too.

When Pennsylvania was considering casinos, the governor sat down with propective casino owners and negoitiated an agreement that gave the state 50% of the profits. Ohio will need that if these casinos come in. In Indiana, they had to increase the highway patrol budget by $65 million dollars to deal with the increase of crime in the areas where riverboat casinos opened. In Mississippi, crime rates doubled in the areas where the casinos came. Casinos attract con men, thieves, and prostitutes. A survey of gambling addicts showed that 65% resorted to crime to feed their habit.

Gambling addiction is one of the worst addictions, worse than alcoholism. I remember one family that lived in a very poor walkup apartment while the husband traveled every evening to race tracks and other gambling places. I've known families where the husband lost the family farm in a poker game.

Gambling preys on the poor. In Michigan, persons with incomes under $15,000 spent twice as much per visit to a casino as did persons with incomes of $30,000 or more. Of the customers, 60% had incomes under $25,000. In Detroit, gambling addiction rates tripled when the casinos came.

Berman promises thousands of jobs. Most jobs in restaurants, hotels, and casinos are low wage. The skilled workers would be brought in from Los Vegas.

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