The city of Toledo, Ohio has collected over million in taxes from the casino resort that opened there in 2012.
Although taxpayers were sold on higher numbers when voters approved of amending the state constitution in 2009, nevertheless cities like Toledo and the state’s eighty-eight counties have found uses for the money.
According to Toledo Finance Director George Sarantou, quoted by Toledo Blade, “It is an important part of the budget, particularly when you look at the fact the state has eliminated almost $13 million in local government funds to the city of Toledo. Thank God we at least had the casino.”
Every year the city collects somewhat more than $5 million.
“Overall, I’d say it’s been a very positive experience for Toledo, and we are doing very well with it,” added Sarantou. “It’s been very consistent.”
Toledo, like the three other Ohio cities where casinos were sited, was promised a lot more. Shortly after the 2009 election Penn National Gaming made a presentation in which it noted that it and the other casino operator would be paying 33 percent, which it projected would produce $651 million annually for the state. The state predicted similar numbers.
In realty such projections were off by about half. In 2013 casino tax revenues in the Buckeye state were $272.5 million. The following year that number was $267.5 million.
Most industry experts explain this discrepancy by saying that the projections didn’t take into account the possibility that the state’s seven racetracks would be allowed to add slot machines and become racinos.
That is how Bob Tenenbaum, spokesman for Penn National explains it. He told the Blade, “Those projections were made in May of 2009, before there was any discussion of the racinos. So in our view, you can’t really go by those projections because the landscape changed so dramatically.” He added, “Having said that, Ohio is still a developing market.”
Other economists note that when the projects were made that they were relying 2005-2007 figures from national gaming, which was just before the arrival of the Great Recession, which completely revised such figures.
Although the gaming industry has recovered from that shock, it has remained relatively unchanged in terms of growth. During the same period several casinos have closed.
Although casino revenue in Ohio is down, gaming revenue is actually up, especially last year, when the last of the state’s seven racinos opened. When the revenues of the four casinos are combined with those of the seven racinos, Ohio is sitting pretty, especially compared to neighboring states, who have lost some of their revenue to Ohio. The total last year for all gaming revenue was $1.46 billion, which is actually more per year than was predicted for the four casinos in 2009.
As Ohio’s economy continues to improve some market experts predict that gaming revenue could reach $2 billion before the end of the decade.
Ohio’s many gaming opportunities may also have increased its attractiveness to visitors.
