Detroit's Failure With Casinos

The Boston Herald reports:

DETROIT - A trio of casinos similar to those proposed by Gov. Deval Patrick have hit a wall in Detroit, leaving the cash-strapped city reeling from plummeting gambling revenues and sending a harsh warning to Massachusetts.

A Herald review shows revenue generated by three Motor City casinos was down $82 million in 2007 while the state’s take fell by $10 million.

Detroit City Councilor JoAnn Watson said the casinos have “created social and economic devastation” that has led to 20 percent of the city’s small businesses going “belly up.”

“There were a lot of promises made in terms of how the economy would improve and jobs, jobs, jobs,” Watson said. “But the circumstances in the aftermath of the casinos has been ‘Lord have mercy.’ The ballyhooed promise of prosperity has not occurred.”

Patrick’s controversial plan for two commercially operated casinos and one Indian gaming hall has been a reality in Detroit since voters legalized gambling more than a decade ago.

The city’s casinos made $1.303 billion in 2006 but revenue dropped 6 percent to $1.221 billion last year, despite massive expansions. The amount paid to the state, meanwhile, fell 6 percent in 2007, according to the Michigan Gaming Control Board.

That’s bad news for Patrick’s headline-grabbing 2009 budget plan, which calls for $300 million in casino license fees to pay for schools, public safety, transportation and much-needed tax relief.

For those who think state and local government can be bailed out by gambling,best of luck.