DETROIT (AP) - Detroit's hard-pressed treasury can expect to take another hit as Ohio opens four casinos that'll be in direct competition with three in the Motor City, according to a consulting company.
The treasury stands to lose up to $30 million in annual casino tax revenue by 2015 as some gamblers switch to the neighboring state's casinos, says a report from the global management company McKinsey & Co. Detroit already has lowered casino revenue estimates for the coming fiscal year.
The city has a $265 million budget deficit, $13.2 billion in long-term structural debt and is operating under a consent agreement with the state as an alternative to being taken over by an emergency financial manager.
The Horseshoe Casino in Cleveland opens Monday, and the Hollywood Casino in Toledo opens May 29. Casinos in Columbus and Cincinnati will follow.
About $177 million of Detroit's $1.2 billion general fund budget in the last fiscal year came from taxes on the MGM Grand Detroit, MotorCity and Greektown casinos, which get 80 percent of their revenue from people living within 150 miles.