Detroit Casinos Sue State to Avoid Being Shut Down
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Casinos in the Detroit area bring in an average of $400,000 daily in tax money that goes to helping balance the state budget.
Ironically, it’s the state, the beneficiary of the money, that is looking to shut the casinos down if lawmakers cannot get a deal in place on a new budget by Monday.
If the state goes through with the shut down, it will be impossible for the casinos to stay open because each casino is monitored by a state employee 24 hours a day. The state, by not supplying the employees, would force the casinos to shut because they cannot operate without the state supervision.
The casinos are arguing in the lawsuit that the salaries of the state employees are being funded with casino money that is in a restricted account and is not part of the states general fund budget, which expires at midnight Friday.
If the casinos are shut down, it would affect nearly 7,000 employees and also the economy of Detroit, which is reliant on the casinos money.
Roger Martin is a spokesman for Greektown Casino claims the shutdown would be disasterous for the city, saying, “The purpose is to protect 7,000 jobs and tax revenue to Michigan schools.” He was referring to the lawsuit in the statement.
Gambling in Detroit Will Continue if State Partially Shuts Down
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Earlier today we reported that casinos in Detroit sued the state in order that they could remain open and running should the state government be partially shut down on Monday. The judge has just ruled on the case and the result will be continued gambling in Detroit even if the state shuts down.
The ruling officially reverses a ruling handed down by the Michigan Control Board earlier in the week.
When Governor Granholm explained that the casinos would be shut down because gaming regulators would not be working, the casinos in the Detroit area got together and sued the state. The case was heard today at noon and the judge made the ruling a little after four.
Casinos in the Detroit area bring in an average of $400,000 daily in tax money that goes to helping balance the state budget, which, ironically, is why the government might be shutting down. The budget impasse, then, in effect would shut off a great deal of profit for the state, as well as profit to the employees and local merchants in the surrounding areas.
The casinos combined employ over 7,000 people who would have all lost earned money for the length of time the casinos were to be shut down.