Monday, October 5, 2009

A primer on Issue 3

Here is the final ballot language for Issue 3:

TO AMEND THE CONSTITUTION TO ALLOW FOR ONE CASINO EACH IN CINCINNATI, CLEVELAND, COLUMBUS, AND TOLEDO AND DISTRIBUTE TO ALL OHIO COUNTIES A TAX ON THE CASINOS

Proposed by Initiative Petition / To adopt Section 6 to Article XV of the Constitution of the State of Ohio

This proposed amendment would:

1. Authorize only one casino facility at a specifically designated location within each of the cities of Cincinnati, Cleveland, Columbus, and Toledo.

2. Levy a fixed tax of 33% of gross casino revenue received by each casino operator of the four casino facilities.

3. Distribute the casino tax as follows: 51% among all 88 counties in proportion to such counties’ respective populations. Half of each county’s distribution will go to its largest city if that city’s population is above 80,000; 34% among all public school districts;5% among all host cities; 3% to the Ohio casino control commission; 3% to the Ohio state racing commission fund; 2% to a state law enforcement training fund; 2% to a state problem gambling and addictions fund

4. Require each initial licensed casino operator to pay a single $50,000,000 fee to be used for state job training purposes and make a minimum initial investment of $250,000,000 in its facility.

5. Permit approved types of casino gaming authorized by Michigan, West Virginia, Indiana, and Pennsylvania as of January 1, 2009 or games subsequently authorized by those states.

6. Authorize the casinos to operate 24 hours a day, seven days a week, at the discretion of the casino operator and require that the casino facilities shall be subject to all state and local laws and provisions related to health and building codes, but that no local zoning, land use laws, subdivision regulations or similar provisions shall prohibit the development or operation of the casinos at the designated sites.

7. Create the Ohio casino control commission which will license and regulate casino operators, management companies retained by such casino operators, key employees, gaming-related vendors, and all gaming authorized by this constitutional provision.

A “YES” vote means you approve of amending the Ohio Constitution to permit one casino each in Cincinnati, Cleveland, Columbus, and Toledo.

A “NO” vote means you disapprove of amending the Ohio Constitution to permit one casino each in Cincinnati, Cleveland, Columbus, and Toledo.

A majority YES vote is required for the amendment to be adopted.
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Here is the official Argument and Explanation for Issue 3:

Your YES vote on Issue 3 will: Create first-class casinos in Cleveland, Columbus, Cincinnati and Toledo; create 34,000 new Ohio jobs – jobs that can’t be outsourced; produce $11 billion in economic impact over five years; generate $651 million a year in tax revenue to be shared by all 88 counties, the eight largest cities, and every Ohio public school district; provide $200 million for state job training programs that put Ohioans back to work; mandate at least $1 billion in new private investment to be spent on new casino facilities; spark revitalization in the downtown centers of Ohio’s four largest cities; have no impact on the conduct of the state lottery, bingo or charitable gaming.
 
Keep Money In Ohio: Over $1 billion leaves Ohio each year when Ohioans travel to neighboring states’ facilities. Issue 3 keeps money and tax revenues in Ohio.

Ohioans Have Been Waiting for the Right Proposal: Independent polls show that Ohioans support expanded gaming. Issue 3 is the best gaming proposal ever put before Ohio voters. Issue 3 is the right way to bring casino gaming to Ohio.

Key Endorsements: Working Ohioans understand that Issue 3 will help revive Ohio’s ailing economy. That’s why Issue 3 is supported by: Ohio AFL-CIO, Ohio State Building Trades Council, Fraternal Order of Police and many local labor organizations.

Casinos Taxes Higher Than Most All Other Businesses: Under Issue 3, casino operators are required to pay a 33 percent tax on all gross casino revenues on top of the other taxes businesses usually pay.
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And here is the official Argument and Explanation against Issue 3:

Ohio voters said NO to casino gambling four times before. Issue 3 is another attempt to hijack Ohio’s Constitution and create a monopoly for out-of-state owners to build casinos only in Cincinnati, Cleveland, Columbus and Toledo.

NOTHING in Issue 3 REQUIRES casino operators to build ANYTHING. No revenues get paid to the state if no one builds in a city.

Casino operators would pay just 33% of their gross profits in taxes, keeping 67% for themselves. Ohio’s casinos would pay a lower percentage of their profits than casinos in most other states. Ohio’s legislature would have no power to force casinos to pay a higher tax rate.

THE ENTIRE PLAN IS TILTED IN FAVOR OF WEALTHY CASINO OPERATORS

• It bans all other casino gaming, including “casino nights” offered by churches, fraternal organizations or other charities.
• It imposes a hidden tax by failing to limit how much taxpayers must spend to upgrade roads, bridges or necessary infrastructure improvements if even one casino is built.
• It pre-empts most local and state laws, including zoning laws.
• It allows casinos to stay open 24-hours a day, seven days a week.
• Because of a loophole written by casino lawyers, casinos pay no taxes on profits from cash wagering.

BORDER STATES WOULD DICTATE TO OHIO

Ohio would be forced to offer games approved in the future by Michigan, West Virginia, Indiana or Pennsylvania. This would happen with no say from Ohioans.

OUR CONSTITUTION WOULD BE CLUTTERED UNNECESSARILY

This would list in the Ohio Constitution the parcels of land on which these casinos are to be located. The land is already owned by casino operators and allies. Local citizens would have no say over where casinos would be built.

12 comments:

  1. Thanks for getting this published, including all the pros and cons. It has helped me make up my mind. My vote is "NO."

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  2. The only thing that bothered me was:

    "Authorize only one casino facility at a specifically designated location within each of the cities of Cincinnati, Cleveland, Columbus, and Toledo."

    who choses this location and why "inside" of the cities?
    Otherwise, I am leaning towards a "Yes" vote.
    There is already gambling in Ohio (lottery, horse racing) might as well go "all in" and hopefully make some tax money doing it.

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  3. Thanks for the details. I am absolutely voting YES. The tax revenues, jobs, and other benefits are too good to pass. Ohioans are already gambling and benefiting the economies of surrounding states.

    The issue is where it needs to be. As you may remember, the FOP spoke out against the previous issues but they support this one. We desperately need the tax revenues and jobs - Ohio is a mess, and this will help!

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  4. "Because of a loophole written by casino lawyers, casinos pay no taxes on profits from cash wagering."

    A TV campaign featuring a former state official says this is not true. DJ - Can you tell us whether or not this an issue?

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  5. A yes vote from me also… Ohio needs jobs!

    ReplyDelete
  6. A vote yes also means money for the state. Zero income from not having them here is still -0-. At least the state, schools, & counties will get 33% of something instead of it going to other states and we get nothing.

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  7. VOTE NO!!
    Statements like, "hopefully we'll make some money", "Ohio needs job" and "tax revenues, jobs, and other benefits are too good to pass" are all idiotic!! With casinos come a lot of bad stuff like higher cases of alcohol, drug and gambling addiction/abuse, lower property values due to higher crime rates which include things like theft and prostitution.
    While on the topic of jobs, the casino's don't have to hire Ohioans. They can bring in employees already trained in the gaming (it saves them money).
    Don't believe the hype, VOTE NO.

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  8. Statements about bringing in employees from other states are stupid also. If the work in Ohio they still have to pay Ohio Taxes. There for Ohio does receive something from it. As far as alcohol, drugs and gambling addiction/abuse goes, do you really think that Ohio does not already have that? Lets get real here. People are already doing these things, they only difference is they will stay in Ohio with their money instead of taking it to other states and spending it. If we can keep the money in Ohio for the people of Ohio, the schools in Ohio, not in the other states then let it stay here.

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  9. OK, so Ohio needs jobs and money. In that case, let's go ahead and legalize drugs. This would provide countless numbers of jobs for Ohioans. and we know that drug use doesn't hurt anyone except for the user, right? And the state will get needed tax dollars from the legal sale of such drugs, right? And we can take that money and give it to the schools, right?

    So why is this a bad idea? Because we know that drug use affects not only the person doing the drugs, but those persons around him/her. Because we know that the income the state received from this would not outweigh the harm done to the social fabric. Because we know that the jobs provided would go toward unhealthy activity.

    So far the reasoning provided for adding casinos to Ohio is for jobs, and the added tax benefits. I do not believe in this case that the end justifies the means. Surely we are not that desperate a people that we will go this route. Please don't say we are that stupid.

    ReplyDelete
  10. To Oct. 12 @ 5:06 PM:

    Although I am not an opponent of Issue 3, your points are valid. Why stop then at drugs? Legalized prostitution can also generate tax dollars. With the nearest legal competition at least 2500 miles away; Ohio could attract virtually everyone East of the Mississippi! Just an example of carrying this logic to its "logical" conclusion.

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  11. Is this what you really want for Ohio? Where did all of the Lottery money for the schools go? People are out of work so tempt them with gambling. Use your God given brains. This is not what we want. God help us and our Country.
    We are going to need it.

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  12. The state of Ohio only gets 33% of the "non-cash" wagering revenues. The proposed constitutional amendment does not require the slot machines be token or chip operated slot machines. There's nothing in the amendment that prohibits the casino operator from using slot machines that accept only coins and dollar bills. We don't need no stinkin tokens. We can operate the slot machines on a cash basis..........and we won't need to give the state of Ohio any part of the revenues that we receive from the slot machine operations. Well, won't that be a swift kick in the pants for the state of Ohio? Hey, if we can do that, why can't we use cash at the gambling tables instead of tokens? Nothing in the proposes constitutional amendment say that we have to use chips or tokens. Does that mean that the casino owners can avoid that 33% as well? Gee, can the casinos operate on a strictly cash wagering basis and avoid paying the state of Ohio any part of the 33% that is specified in the proposed constitutional amendment? The answer, I think, is yes. The casinos are not required to use chips or tokens for anything. We may never see a cent of those revenues. VOTE NO ON ISSUE 3

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