"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: