Dayton Daily News

Issue 3 State of Ohio

Issue Information:

ISSUE 3: PROPOSED CONSTITUTIONAL AMENDMENT TO AUTHORIZE A CASINO IN CLEVELAND, COLUMBUS, CINCINNATI, AND TOLEDO, OHIO (Proposed by Initiative Petition)

To add a new Section 6a to Article XV of the Ohio Constitution

A YES vote means approval of the amendment.
A NO vote means disapproval of the amendment.
A majority YES vote is required for the amendment to be adopted.

If approved, the proposed amendment will take effect 30 days after the election.

League Explanation of Issue 3: This amendment would authorize four casinos, one each in Cincinnati, Cleveland, Columbus, and Toledo, located on particular parcels of land owned by private individuals.

1. The operator would be required to pay a tax of 33% annually on gross casino receipts. “Gross casino receipts” excludes payments to winners. The tax revenue would be allocated in the following ways:

• 51% to the 88 counties on a pro rata basis, with 50% of the county’s distribution going to the county’s most populated city if it had a population of greater than 80,000 as of the 2000 United States census.
• 34% to public school districts in proportion to their public school district populations.
• 5% to the host city where the casino that generated the revenue is located.
• 3% to fund the Ohio Casino Control Commission.
• 3% to a fund supporting purses, breeding programs and operations at existing horse racetracks.
• 2% to fund a state law enforcement training program.
• 2% to fund treatment of problem gambling and substance abuse.

2. The Ohio Casino Control Commission would license and regulate casino operators, management companies, key employees and all gaming. The commission would have 7 members appointed by the Governor with the advice and consent of the Senate.

3. Each casino operator must make a minimum initial investment of $250 million.

4. The initial license fee of $50 million for each casino will fund state economic development programs.

5. Each casino could operate 24 hours a day. Each casino may have a maximum of 5000 slot machines. Each casino may conduct any type of card or table games, slot machines or electronic gaming devices permitted by states adjacent to Ohio, except bingo, and horse racing where the pari-mutuel system of wagering is conducted.

Proponents of the proposed amendment argue that:

1. Thirty-eight states—including West Virginia, Indiana, Michigan, and Pennsylvania—have casino gambling.
2. By authorizing casinos in Ohio, the profits could benefit our state rather than other states.
3. Counties, public school districts, and many cities will receive tax revenue generated by the casinos, and each can decide how to best spend its money.
4. The casinos will create 34,000 new jobs in Cincinnati, Cleveland, Columbus, and Toledo.
5. The casinos will stimulate the economy by adding restaurants, hotels and ancillary businesses.

Opponents of the proposed amendment argue that:

1. The Ohio general revenue fund, which supports basic services for Ohioans, will get $0 from the gross casino receipts tax.
2. Ohio lottery profits, currently dedicated to education, may decrease because people will gamble at the casinos instead of playing the lottery.
3. Ohioans may spend money at the casinos they would have spent at other existing Ohio businesses such as restaurants, movies, or sports events, adversely impacting those businesses.
4. The number of gambling addicts in Ohio would increase, and the tax receipts dedicated to providing treatment for addicts could be insufficient. 5. The proposed amendment could be construed to mean that all games allowed at the casinos can be played only at the casinos, eliminating church-festival poker games and casino nights sponsored by charitable groups.

Websites:
In support of the proposed amendment: Cops for Casinos http://copsforcasinos.com/
In opposition to the proposed amendment: Vote NO Casinos Committee, TruthPAC www.truthpac.org/