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Issue 3: A worthwhile gamble for Ohio?
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In less than one week, the voters in the state of Ohio will go to the polls in a non-presidential, non-congressional election, but an election that is nonetheless capturing the attention of the entire state. This off-cycle election has seen television, radio and print advertising, debates, and mud-slinging in a no-holds-barred campaign that would make James Carville proud. The source of the conflict? Issue 3: a proposed amendment to the Ohio Constitution which would allow the construction of four casinos, including one in the heart of Cincinnati.
Four times since 1990 Ohio voters have weighed in on the issue of casinos in Ohio. Four times, including last year, casinos have been resoundingly denied. Nonetheless, this year's proposal seems to have gathered momentum that last year's proposal lacked. Issue 3 proposes to allow one specific company - Penn National Gaming, Inc. - to build four casinos throughout Ohio. Penn is owned by Dan Gilbert, majority owner of the Cleveland Cavs who also controls other casinos such as Hollywood Casino in Lawrenceburg, IN. Mr. Gilbert (who led the initiative to build a casino near Wilmington during the 2008 election cycle), has wagered millions in a fight to pass Issue 3 but has been met with equal fervor by those opposed to the constitional amendment.
Many of the same pros and cons at the center of the debate this year that were argued last year. Morals, money and jobs appear to be the primary focus of both supporters and the opposition of the amendment. This year, however, backers of Issue 3 claim that nearly 34,000 jobs will be created if the amendment is passed. Additionally, they argue that the four casinos would not only generate millions of dollars in revenue for the state each year, but will also create a "synergy" that will lead to the development of areas surrounding the casinos, including parts of Over-the-Rhine where the Cincinnati casino may land. While some of these arguments were made last year, fiscal arguments seem to be amplified this year given the state of the economy. It is not surprising that proponents are doubling-down, so to speak, on their primary argument in favor of casinos: jobs, jobs, jobs.
Opponents, however, have pointed out flaws with each of the arguments made in support off Issue 3 and these arguments seem to have merit. Less than one month ago, the Associated Press published an article citing a Hiram College economic study of the promised job creation by casino development and operation. The study indicated that Issue 3 is likely a "zero-sum game" as any jobs created would simply replace established jobs. The study suggests that casinos would largely be frequented by locals which would imply that any gain in revenue by the casinos is a drain is revenue to other surrounding businesses. Without a large out-of-state contingent in the proposed casinos, any money generated would simply represent a shift in allocation of the money, not "new money", the study implied. Also, the Hiram College study questions the promised number of 34,000 created jobs as this number represents a significantly greater number of created jobs than were seen at casinos in surrounding states.
Opponents also argue that logic should prevent passage of Issue 3. The question presented is whether it wise for a state to amend its constitution - the basis of all state-guaranteed rights for the citizens of Ohio - to allow one company to build four businesses? Issue 3, it is argued, would create a blatant monopoly for Penn National Gaming that would hereafter be guaranteed by the constitution.
The problem voters face in this election is that everyone involved in the argument has a stake in the outcome. Proponents (who can be found at yesonissue3.com) stand to gain billions of dollars in revenue that, given their proposed monopoly, will be unchallenged by any party seeking to build a competing casino. Opponents, organized now as TruthPac.org, are funded in large part by MTR Gaming, a company which operates a casino in Chester, West Virginia. Government filings show that a vast majority of MTR's flagship casino's revenue comes from Ohio residents.
Given the number of special interests flooding our airwaves, television and print media with arguments and direct contradictions of each other, what are voters to rely on? All seem to agree that the hard truth about the state of the nation's economy and Ohio's 10% unemployment rate will be at least a factor, if not the only factor, in voter's minds when they step into the polling booth on Nov. 3 to decide whether Issue 3 is worth the gamble.
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