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Detroit Casinos Still Being Questioned

DETROIT, Michigan – As reported by the Pittsburgh Post-Gazette: "The Greektown Casino has been open for four years and its two downtown Detroit competitors a year longer, but the debate over whether they're an economic benefit or social blight is as fierce as ever.

"While drawing 12,000 customers a day who leave behind $1 million on average, the youngest casino just laid off 148 employees. Executives said it was a necessary response to a 33 percent tax increase on the casinos that the Michigan Legislature and governor approved this summer to fill a budget hole.

"Industry critics say the companies should be happy to operate at all, considering the problems they cause. The operators contend they're helping to revitalize an urban core which sorely needed them for jobs and development. The detractors argue the casinos are reneging on commitments and proving that profits matter to them more than people.

"…One element of the Detroit discussion is how Greektown and its competitors, the MGM Grand and MotorCity Casino, occupy buildings they renovated instead of constructing permanent casinos with attached hotels and entertainment amenities, a la Las Vegas and Atlantic City. On the drawing boards, the casinos were touted as destination centers to draw visitors from outside the region.

"…Detroit's unemployment rate hasn't dropped since the casinos opened, but they employ nearly 8,000 people. Area bankruptcies have soared, but that's also been the case around Pittsburgh and other places without casinos. While other businesses haven't closed because of them, there's been no spillover effect helping new establishments to open. There's also been no evidence of any crime surge tied to the new industry.

"With those mixed results, it's not hard to find people on both sides of the debate within a few blocks of the casino, as the charter buses from Cleveland, Pittsburgh and elsewhere pass by on broad boulevards…"

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