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Michigan tracks sue state2 May 2008DETROIT, Michigan -- As reported by the Detroit News: "Northville Downs and other Michigan horse racing interests filed a federal lawsuit Thursday against the governor and state attorney general, alleging state lotteries and casinos are killing their industry and state restrictions on installing video lottery terminals and other forms of gambling at Michigan horse tracks violate the U.S. Constitution. "Betting on horse racing plunged 45 percent from $474.6 million in 1997, before three Detroit casinos opened, to about $261 million last year, the lawsuit alleges. "It cites the 2005 closure of a harness racing track in Saginaw, the 2007 closure of Great Lakes Downs, the state's last thoroughbred track, and Magna Entertainment Corp.'s recent decision to abandon plans for a new thoroughbred track in Romulus as evidence of an industry in a death spiral. "...Targeted in the lawsuit is an amendment to Michigan's Constitution passed as a result of a 2004 ballot initiative which the horse racing interests allege was largely financed by the state's casinos. "The state provision requires both a statewide and a local referendum before any new gambling can occur. Exempted from the provision are the casinos. "The law prevents tracks such as Northville Downs from installing VLTs and benefiting from innovations such as telephone wagering and theater wagering at restaurants, the lawsuit alleges..." |