Detroit casinos: Good for local economy?

CLEVELAND -- One week from today when voters head to the polls, it'll be decision time for Issue 3.  Voters must decide whether or not to allow casinos to be built in four proposed Ohio cities.

The casino issue is nothing new. It's been on our ballots before.  But this year, the difference is the economy.  Our neighboring rust belt city Detroit recently built a Las Vegas style casino and was able to tell us what it's done for their economy.

In the middle of an economically challenged Detroit, city leaders placed all their bets on a few casinos. Most recently the MGM Grand, which promised a Las Vegas style experience.

Now, three years later, the Detroit regional chamber of commerce is counting its winnings.

"I can tell you that currently, over eight thousand employees are working in the three casinos of Detroit. In 2007, when MGM opened their hotel and permanent facility, they had hired an additional 1000 workers at that time, which was their original commitment," says Tammy Carnrike, Chief Operating Officer of the Detroit Regional Chamber.

Carnrike says 50% of casino employees are from Detroit proper. More than 40% from the metro area and less than 10% of employees were brought in from out of state.

"In the early stages, certainly you have some training and some management related position issues that need those who have experience in the gaming industry."

The average wage of a casino worker is $48 thousand.

"It's predicted in the next 10 years that casino related positions are going to increase by 50%, going to over 12 thousand jobs.  The largest percent of increase - 68% - will increase in waiters and waitresses, security guards, housekeeping and maids."

Carnrike also described the breakdown of where the money goes.

"What I can tell you is that the three casinos of Detroit have brought in about $1.3 billion annually.  Of that, there is a wagering tax that goes directly to the city of Detroit as well as the state of Michigan.  It's about a 20% total tax that occurs on the revenues and of that about 55% goes to the city of Detroit the other 45% goes to the state of Michigan."

There is no incentive for the Detroit Regional Chamber to sell Ohioans on a casino.   Data shows 7 to 9% of their business comes from Ohio.            

There is a lot of opposition to this issue, including many Ohio lawmakers who say Issue 3 will shortchange Ohio.

Issue three calls for Ohio casinos to pay a 33% tax. That's one of the lowest in the nation.

And the licensing fee for the casino is $50 million. Compare that to Indiana's proposed casino, which would be a $400 million licensing fee.  

Other lawmakers say it's not the answer to paying our state debt.

"We need to stop money from leaving Ohio but we should not use the state constitution to redirect most of the money into pockets of casino operators," says Mayor Jay Williams of Youngstown.