Editorial: Don't bet future on revenue from casinos

Monday, November 16, 2009  

"Mayor Dave Bing shouldn't bet Detroit's financial future on casinos, even with poker champ and hometown hero Joe Cada riding an $8.55-million jackpot.

Detroit's three state-licensed casinos are feeling the recession's pinch, and the opening of four casinos in nearby Cleveland, Toledo, Columbus and Cincinnati won't strengthen their position in a maturing market.

This is no time for the city to get more addicted to casino revenues. Instead, Bing must continue to right-size city government while pursuing a more sustainable economic development strategy.

Revenues at the Greektown, MGM Grand Detroit and MotorCity casinos have been recession-resistant, but not recession-proof. Revenues fell nearly 1% in October from a year ago, though they were up more than 6% from September. Casinos have done a lot better than most Motown businesses, but revenue growth has slowed over the past year. With more competition and no end to in sight to the local recession -- make that depression -- it would be reckless for the city, facing at least a $300-million accumulated deficit, to count on casinos to save the day. Nor should it rely more heavily on their tax revenue."

Get the Story:
Editorial: Casino revenues won't save Detroit (The Detroit Free Press 11/14)