Casino may take hit if Ohio votes for slots
2,000 slot-machines just across Michigan-Ohio border 'could have a considerable impact'
Dave Hall, Windsor Star
Published: Monday, November 06, 2006
More than US$20 million has been spent in recent weeks in an attempt to convince Ohio voters to approve slot-machine gambling when they head to the polls for mid-term elections Tuesday.
Though it could take as long as three years to implement the initiative if it passes, it's likely to have an eventual impact locally, according to an industry analyst.
"I don't know how many Ohio residents visit Windsor for the slots, but putting 2,000 machines in Lucas County just across the Michigan-Ohio border could have a considerable impact on slots revenue in Windsor," said Jacob Miklojcik, president of Michigan Consultants.
"It's just another choice for the gambling public and there could be an impact at all of the Detroit-area casinos, not just in Windsor."
Casino Windsor is watching the campaign, said spokeswoman Holly Ward.
"We've been following the issue because 80 per cent of our customers are from the U.S., and a good portion of those are from Ohio," she said.
"But we're not going to speculate on its possible impact. It's not a new issue for Ohio and it's failed in the past so we'll see what happens."
If the ballot issue passes, slots would be placed in the state's seven racetracks as well as at two independent sites in Cleveland.
The issue has been defeated twice since 1990 but, with Ohio gamblers now spending an estimated US$900 million annually at casinos in Indiana, Michigan and West Virginia, supporters believe the time is right.
"The states around us don't want this to pass," Cuyahoga County commissioner Jimmy Dimora told the Cleveland Plain Dealer recently. "This gives us a fighting chance to keep up with the competition."
Owners of the tracks have contributed between $500,000 and $2 million each to the effort while those opposing the initiative have raised less than $700,000, according to a recent report in the Plain Dealer.
Supporters point to job creation and the positive economic impact on communities hosting slots while detractors claim the jobs are low-paying positions and the impact of addiction outweighs any economic advantages created by slots.
It's been estimated that slots gambling would generate 56,000 jobs in the state, producing several billion dollars in spinoff revenues.
More than 50 per cent of those revenues would go to track and slots operators and six per cent would pay for bigger purses at Ohio's tracks. Another 30 per cent would be used for college grants and scholarships, eight per cent would flow into economic development coffers and one per cent would be used to fund addiction programs.
And while supporters have placed the financial impact at $2.4 billion annually from 31,500 slot machines, opponents say the figure would be closer to $1.08 billion because the state could only support about 10,000 machines.
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© The Windsor Star 2006