Ohio casino foes question tax revenue wording

Posted under Uncategorized by admin on Thursday 27 August 2009 at 3:36 pm

COLUMBUS — Opponents of a proposal to allow casinos in Ohio’s four largest cities are casting doubt about the issue that will go in front of voters this fall, including questioning how much tax revenue the gambling will bring the state.
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But casino supporters say the opponents are out to confuse voters with unsubstantiated attacks and half-truths.

If approved this November, the proposed constitutional amendment would allow construction of casinos in Cleveland, Cincinnati, Columbus and Toledo.

Backers promise the creation of 34,000 new jobs in Ohio’s struggling cities and $651 million in casino tax revenue.

The most recent disagreement between the two sides on Issue 3 centers on how much tax money the casinos will generate. Under the proposal, the state would take a 33 percent off the top of the revenues and redistribute the money to Ohio’s 88 counties.

Opponents argue the 33 percent tax on gross casino revenue is defined as the amount of money “exchanged for the purchase of chips, tokens, tickets, electronic cards or similar objects” minus total winnings. They say that leaves a hole by not including cash or coins that are fed into slot machines and video poker machines.

Rep. Lou Blessing, R-Cincinnati, an opponent of the casino plan, said at a Tuesday news conference that casino supporters have made it allowable to gamble with cash but do not stipulate that cash revenue be taxed.

“These casinos could run total cash games and the state of Ohio would receive no tax benefit. Period,” he said.

Issue 3 spokesman Bob Tenenbaum said the proposed casinos would not use cash except to exchange for vouchers, and would be subject to taxes.

“Cash wagering is an anachronism,” Tenenbaum said. “Nobody uses it.”


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