SEARCH NEWS:

 

Detroit Casinos May Drop Hotels

DETROIT, Michigan – As reported by the Detroit Free Press: "Clauses in their contracts with the city would allow the threeDetroit casinos to skip building permanent casinos and hotels if the state doubles the gaming tax, people familiar with the agreements said Thursday.

"The agreements say that if government regulations are changed that make the casinos economically unviable, the casinos are not required to meet their obligations, including building permanent casino-hotels. Otherwise, the casino contracts require them to build bigger gambling palaces with hotels -- although the new casinos are on hold for now, pending court approval of a lawsuit settlement.

"The casinos warned Thursday that raising the state gaming tax from 18 percent to 36 percent -- as the state House voted to do on Wednesday -- would also force them to close table games and food outlets, which would result in layoffs.

"…A spokeswoman for Gov. Jennifer Granholm said the governor has not taken a position on the gaming tax issue…"

< Gaming News