Ohioans bet on plan to open 4 casinos

Detroit and Windsor gambling halls face likely loss of revenue

Nathan Hurst / The Detroit News

Where have all the Buckeyes gone?

That's the question Michigan casino executives will soon be asking after Ohio voters cleared the way for four gambling halls to open up in the state's four largest cities.

With 91 percent of precincts reporting, Issue 3 passed 53 percent to 47 percent. Approval deals a direct blow to Michigan's casinos by allowing the construction of new gambling facilities in Cleveland, Columbus, Cincinnati and Toledo.

Casinos here get a large amount of business from south-of-the-border gamblers; by all accounts, Ohioans make up the largest proportion of out-of-state gamblers at Detroit's three casinos -- MGM Grand Detroit, MotorCity and Greektown -- and contribute significantly to revenues at Caesars Windsor in Canada.

And in a twist of political irony, one of the biggest backers of Issue 3 is a Michiganian.

Dan Gilbert, co-founder of Livonia-based Quicken Loans, helped bankroll Issue 3 and stands to gain big as a preferred purchaser of one of the four available casino licenses.

Gilbert, who co-owns the Cleveland Cavaliers pro basketball franchise, partnered with Penn National Gaming, another firm that stands to win on Issue 3's passage.

Proponents of the ballot measure estimated the four new facilities would draw more than $1 billion annually from out-of-state casinos, most notably those in Michigan. Television and radio commercials dramatizing the effect of Ohio gamblers taking business to Michigan casinos formed a cornerstone of their campaign rhetoric.

Last year, Detroit's three casinos took in $1.36 billion in revenues, with the state raking in $121.04 million in gaming taxes and Detroit getting $151.36 million.

Those numbers are likely headed south this year because of the recession, making 2009 the first year since Detroit's gaming industry opened for business in 1999 that there would be a year-over-year decrease in casino revenues.

The extra competition from Ohio could make the climb to recovery even more difficult.

Tuesday marked the fifth time in 20 years Ohio voters have taken up the casino issue in one form or another.

nhurst@detnews.com (313) 222-2293