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Proposition 1: Will the
Casinos Have a Monopoly On Gambling?
However, it would -- just coincidentally, of course -- preserve their
near-monopoly on games of chance and the suckers' wallets. If you think the last
two paragraphs sound sarcastic, you win today's prize for perceptiveness. Proposal 1 on the November ballot would not actually prohibit new kinds of what gamblers like to call "gaming." It would just set impossibly high hurdles. Anyone wanting to start something would have to win approval both from the voters in that particular community and in a statewide referendum. Would voters in Marquette be apt to approve gambling in Monroe County, 500-some miles away? Almost certainly not. That doesn't mean that there isn't widespread agreement that Michigan doesn't need a roulette wheel on every corner. Polls
show most voters think that there is already too much legal gambling in the
state: Three casinos in Detroit, casinos owned by Native American tribes
elsewhere; horse racing tracks and a state lottery. The latter, incidentally,
was sold to voters in 1972 as a way to solve state education funding, (ho ho)
which has remained a sore point. Yet
there are those who oppose more gambling, but are leery of enshrining the casino
monopoly in the state constitution. The
petition drive to put Proposal 1 on the ballot began when the state's
cash-strapped racetracks, which have been losing the competition with the
casinos, began talking about putting video gambling terminals in their
establishments, turning them into so-called "racinos." The casinos didn't like
that, and so this latest drive for direct democracy was born. The
issue has made for strange bedfellows. Former Lt. Gov. Dick Posthumus
generally opposes gambling and was against the referendum that approved
Detroit's three casinos in 1992. But he backs Proposal 1, not, he says because
he likes gambling but because this would help limit it.
However, Gov. Jennifer Granholm is supporting a no vote. Reason? There is
general agreement that the proposal would severely restrict the state's ability
to offer new lottery games.
Accordingly, Proposal 1 is also opposed by Michigan's two teachers unions, which
fear a potential loss of lottery revenue for the schools. But
when it comes to money, Proposal 1 opponents have far fewer chips than
supporters. An ad hoc group called No Casino Monopoly has ponied up
barely more than $1 million, nearly all of it from horse racing
interests. Supporters, who call their group "Let Voters Decide," are
awash in dough.
The Soaring Eagle Casino
in Mt. Pleasant and owners of MGM Grand Casino in Detroit have each
kicked in more than $3 million, with more from other casinos reportedly
on the way. Not surprisingly, polls show that voters favor Proposal 1 by a
roughly 2-1 margin. If it passes, some have questioned whether the state's
racetracks can long survive.
Editor's Note: Two other
important points need to be made regarding Proposal 1.
First, when the state legislature caved into pressure from Mothers Against
Drunk Drivers, coupled with threats of revenue loss from the Federal
Government, and lowered the intoxication rate for drunk driving to .08, they
also promised the Michigan License Beverage Association that they would
offer tavern owners a slice of the state lottery pie as a consolation prize for
the obvious dip in customer base that move to .08 would engender. If Proposal 1 passes it will mean that costly local elections will need to be held each time the State decides to add a new game to a local venue; in essence, securing a gaming monopoly for casinos, who have fought vigorously against paying taxes into state coffers on their earnings, while simultaneously punishing further another beleaguered segment of our state's economy.
Secondly, given all the income & corporate tax cuts of the Engler years, the State of Michigan desperately needs this revenue to operate - unless, of course, Republicans reverse their current posture on taxation, which is about as likely to happen as General Motors deciding to break ground on new plants in Flint & Saginaw. |
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