According to studies carried out by analysts in the gambling business, the casinos that are planned to open up in Ohio by the end of this month might actually hurt the casino gambling business in Detroit. It is expected that after the opening of the 4 casinos in Ohio this year, with two of them opening in this month, Detroit’s revenue from the casino taxes is expected to decrease by 30 million dollars by the year 2015. This would effect Detroit a lot as 15% of the total general fund of the state comes directly from the casino taxes. This study has been carried out by McKinsey & Co.
The current situation is that different casinos in Detroit such as Greektown, MGM and MotorCity Casino depend greatly on the people who come from a radius of 150 miles around Detroit; this includes Central and Northern Ohio. More than 80% of the revenue of these casinos comes from such visitors. Once the new casinos open up in Cleveland and Toldeo, these Detroit casinos will lose this upper hand and will no longer get the daily visitors who come from these parts as they will be supplied with gambling services in their own town.
Commenting on this, an ex-city budget analyst, Bettie Buss stated that despite that the officials of Detroit are well aware of the hit that the budget is going to suffer as a result of this, the officials must realize how hard this hit can be. Then she added that it is a very hard challenge, as the city will have to undergo some deep cuts.