Racinos Make Another Push in Michigan

We overheard a little something on the radio this morning that stated the petition drive for a Racino vote is on schedule for next year. It is debatable whether or not Michigan needs more casinos (or racinos in this case), but racetracks want the revenue that comes with legalized slot machines.

From the Detroit News:

Backers of a campaign to open eight more casinos in Michigan intend to start circulating petitions within six weeks to put a proposal on next year's ballot after their petition language won approval today.

The four-member Board of State Canvassers, a state elections panel, approved unanimously the wording for a constitutional amendment submitted by Racing to Save Michigan, a group led by officials at Hazel Park Harness Raceway. Five of the casinos would be at horse racing tracks.

Supporters say it will save the struggling horse racing industry and provide about $750 million in annual tax revenue to the cash-starved state and local governments.

Opponents say Michigan voters spoke on this issue in 2004 when they passed a ballot measure restricting gambling expansion. "I'm not sure there's an appetite out there for eight new casinos," said Tom Shields, spokesman for MotorCity Casino in Detroit.

What's worth some concern is the fact that the petition will allow 8 racinos with 5 of them located at racetracks around the state. So, that leaves 3 sites that are completely unaccounted for. Where will these racinos be located?

For further information, please see Mark Hornbeck, Board approves 'racino' ballot petition, The Detroit News, October 14, 2009.

Will Ohio Casinos Hurt Detroit?

One of the biggest reasons that we've kept up-to-date on the proposed Ohio casinos is because of the negative impact they're likely to have on the Detroit casinos, and to a lesser extent, Michigan charitable bingos. Due to be voted on in November, the Ohio proposal would allow for four casinos...one each in Cincinnati, Cleveland, Columbus, and (most worrisome to Michigan casinos) Toledo.

From the Detroit News:

Backers of Issue 3, including Dan Gilbert, co-founder of Livonia-based Quicken Loans, have been heavily courting voters throughout the referendum process by arguing that as much as $1 billion a year is spent by Ohioans every year in casinos across state borders in West Virginia, Indiana and Michigan. Gilbert, who also has championed a rebirth of downtown Detroit, is a co-owner of the Cleveland Cavaliers and has sunk millions into pushing for passage of Issue 3.

One recent television ad urges Buckeye voters to "take charge" and "keep our money in Ohio."

That kind of rhetoric is a concern for Detroit's three casinos -- MGM Grand Detroit, MotorCity and Greektown. By all accounts, Ohioans represent the single-largest group of out-of-state casino patrons in southeast Michigan, and constitute a goodly portion of business for Caesars Windsor, across the Detroit River, in Ontario.

For more information on this article, please see Nathan Hurst, Ohio may take on Detroit casinos, The Detroit News, October 12, 2009.

This casino legislation will be voted on on November 3rd. Please check back for updates.

Smoking Ban On Hold For Now

We haven't provided an update on the potential smoking ban in bingos and other establishments in Michigan in quite some time. This is because no new news has come out of Lansing.

Michigan's budgetary concerns have taken precedence over everything else at the moment. As legislators battle over the allocation of dwindling resources in the state, most other legislation has been pushed aside. Expect a renewed focus on a smoking ban after the budget deadline arrives on October 31, 2009.