CINCINNATI -- Issue 3 for permitting the construction of casinos in Ohio has
passed with
91% of the precincts reporting.
Ohio voters have said "no" to casino-related ballot measures four times in the past 20 years and it turned out the fifth time was the charm.
With the passing vote, Ohio will become the 39th state to have casino gambling.
Issue #3
is a proposed amendment to the Ohio Constitution that permits construction of four casinos in the state – one each in Cincinnati, Columbus, Cleveland and Toledo.
Cincinnati’s casino will be built at the Broadway Commons site, Downtown, bounded by Broadway, Court Street, Reading Road, and Gilbert Avenue.
For the backers of Issue #3, it was a numbers game…
* Creates 34,000 new jobs
* Economic impact of $11 billion over five years
* Provides $200 million for state job training
* Mandates at least $1 billion in new private investment for the casino facilities
* Levies a fixed tax of 33 percent of gross casino revenues
* Sparks revitalization in the downtown centers
Opponents claimed the amendment is an attempt to hijack Ohio’s Constitution and create a monopoly for out-of-state casino owners. Among the objections to the levy were…
* Issue #3 bans all other casino gaming, including "casino nights" offered by churches, fraternal organizations or other charities
* Imposes a hidden tax by failing to limit how much taxpayers must spend on infrastructure
* Pre-empts most local and state laws, including zoning laws
* Because of a loophole written by casino lawyers, casinos pay no taxes on profits from cash wagering
* Casino operators would pay 33 percent of gross profits in taxes and keep 67 percent for themselves
* Ohio forced to offer games approved by Indiana, Michigan, West Virginia or Pennsylvania
All states bordering Ohio, except Kentucky, already have casino gambling. It’s estimated that $1 billion a year leaves the Buckeye State for Indiana, Michigan, West Virginia and Pennsylvania. Issue #3, according to backers, keeps that money at home for cities, counties and school districts.
Primary supporters of the proposal were Penn National Gaming and Dan Gilbert.
Gilbert is majority owner of the NBA Cleveland Cavaliers, operator of Quicken Loans Arena in Cleveland and Chairman and founder of Quicken Loans. He
(will build/would have built) the Cincinnati casino.
Penn National Gaming is the owner of Hollywood Casino in Lawrenceburg, Indiana, and Raceway Park in Toledo.
Former Cincinnati Mayor Charlie Luken was among the supporters of Issue #3. He claimed it will help revitalize Ohio’s ailing economy and is the right plan at the right time to do that. Another benefit, according to Luken, is that casino operators are required to pay the 33 percent tax on top of taxes businesses usually pay.
However, Ohio State Representative Lou Blessing of Cincinnati said the casino tax rate is too low.
He cites Pennsylvania, which used competitive bidding for its casinos, and came up with a 55 percent tax on profits.
Blessing added Issue #3 does not require that casinos actually be built.
"This plan would shortchange Ohio," Blessing said, adding money spent at casinos will pull revenue from other businesses.
Anytime a casino plan is proposed, opponents cite potential gambling addiction problems and increases in crime. Those against Issue #3 are no exception and claim the two percent of the casino tax slated for a gambling and addiction fund isn’t enough.
A similar amount would be provided for a state law enforcement training fund.
