Voters approve casinos
JULIE CARR SMYTH,AP Statehouse Correspondent • November 3, 2009
COLUMBUS, Ohio — Ohio voters hard hit by the economic downturn have opened their state to casino gambling after an expensive campaign promising thousands of jobs.
With 91 percent of precincts reporting unofficial results, Issue 3 passed 53 percent to 47 percent.
It marked a significant victory for Penn National Gaming Inc. and Cleveland Cavaliers owner Dan Gilbert, who spent nearly $35 million promoting four big-city casinos in Columbus, Cleveland, Cincinnati and Toledo. An economic impact study commissioned by the campaign predicted nearly 40,000 temporary and permanent jobs and $4 billion in economic impact, though social costs were not considered.
State Rep. Lou Blessing, a Republican who fought the plan, said he plans to push a ballot issue next May that amends elements of the plan, collects more taxes from the casinos and puts the licenses up for bid.
The casino issue has dominated the campaign season. More was spent in the state on the gambling proposal than during 2008's hotly contested presidential contest.
It is the fifth gambling proposal Ohio voters have seen in 20 years. They roundly rejected the others. Ohio would become the 39th state to legalize casinos if the measure were approved.
The casino campaign has been particularly nasty, fueled by tens of millions in spending by gambling rivals Penn National Gaming and MTR Gaming Inc. and their friends. Ohio is a coveted prize for casino operators, which have achieved legalization in most neighboring states.
Ohio Gov. Ted Strickland authorized a slots-like lottery game at horse tracks amid this year's difficult budget negotiation. But that's on hold pending a court challenge.
The ballot issue asks voters to amend the Ohio Constitution on such casino issues as the parcels on which casinos could be built; how to distribute a 33 percent casino tax to counties, cities, schools and gambling regulation and addiction services; and the combined $300 million in ongoing state license fees and minimum initial investments required for each facility.
The Ohio Jobs & Growth Committee has centered its campaign in favor of the proposal on a University of Cincinnati study it commissioned, which found casinos would create almost 40,000 full-time and temporary jobs. Labor unions that have opposed gambling issues in the past were convinced by the issue's key backer, Cleveland Cavaliers owner Dan Gilbert, that the promise of jobs were legitimate and offered key grassroots support.
TruthPAC, which opposes casinos, has fought back aggressively. The group has suggested in ads, flyers, media campaigns and news conferences that the job figures are exaggerated, the backers' business motives are suspect and the proposed tax formula is unfair.
An Ohio Newspaper poll conducted by the University of Cincinnati's Institute for Policy Research found that 59 percent of registered voters supported the casino proposal — Issue 3 on the ballot — leading into the final push to Election Day. Political experts attribute the support to voters' desperate hope for jobs.
Republican U.S. Sen. George Voinovich, a former Ohio governor, made two well-publicized pleas to Ohio voters to reject the issue. Standing aside influential church leaders, Voinovich made biblical references to the evils gambling can bring to families and the economy.
The University of Cincinnati jobs study predicted 39,251 jobs and $4 billion in overall economic impact from the four casino sites. The social costs of expanded gambling were not considered.
Of the total jobs predicted, 15,807 would be permanent, the study said. Of those, 7,500 would come from direct in-state employment at casinos. A quarter of the casino jobs would pay $27,500 a year or more, and 2 percent — 150 jobs — would pay $80,000-a-year executive salaries.
The average casino wage, according to the study, would be $26,300 a year, about $13,700 lower than the most recently calculated state median.
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Associated Press writer Lisa Cornwell contributed to this report from Cincinnati.
http://news.cincinnati.com/article/20091...eakingnews