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Exec: Detroit Casinos Fulfilled Some Expectations

DETROIT, Michigan – As reported by the Associated Press: "When the first casino opened five years ago in a hulking building formerly owned by the Internal Revenue Service, hopes were high that it would change Detroit's economic fortunes.

"But while that casino and two others now provide a reliable revenue stream for the cash-strapped city and have contributed to a mix of new industries and entertainment venues, they have not been a magic bullet for redevelopment.

"…In the city's 2001-2002 fiscal year, the city collected $122 million, or 12 percent of its revenues, from the casinos. Meanwhile, property and income tax collection has been crippled by decades of population decline and economic stagnation.

"…But those who hoped the casinos would bring more people to the city's restaurants and hotels have been disappointed. That is in large part because casinos are designed to be self-contained, round-the-clock operations, with their own restaurants, bars and musical entertainment.

"Still, George Boyer, chief operating officer of MGM Grand, maintains the casinos have been a catalyst for other development by introducing Detroit to people who previously stayed away.

"…Larry Alexander, president of the Detroit Metro Convention & Visitors Bureau, said the casinos are a valuable attraction.

"…MGM Grand sees about 10,000 visitors a day - a majority from the Detroit metro area, Boyer said. More than 15 percent of patrons travel to the casino from outside Michigan, he said…"

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