Analysis: Revenue figures for Ohio casino are vague

A ‘loophole’ could possibly drop the tax rate on the casino to zero.

COLUMBUS (AP) — A proposed southwest Ohio casino could generate up to $232 million in annual tax revenue, but it’s unclear if the state would see any revenue from the project if an American Indian casino is built in Ohio in the future, a state fiscal analysis found.

The study by Ohio’s taxation and budget offices said the Clinton County casino could bring the county between $20 million and $22 million each year, and all 88 counties between $181 million and $201 million annually.

The casino project is up for consideration by Ohio voters on the Nov. 4 ballot, where it will be listed as Issue 6.

The analysis found that it’s unclear what would happen if an American Indian casino were built in Ohio.

The passage of the constitutional amendment would make it easier for an American Indian casino to be built if the federal government recognized tribal lands, according to the analysis.

If another casino is built, the Clinton County casino’s maximum tax rate of 30 percent would be reduced to 25 percent, or to the taxation level of the future casino if that rate is lower than 25 percent.

The amendment is unclear on whether an American Indian casino would be considered not taxable — meaning that the Clinton County’s casino tax rate would remain at 30 percent — or if its tax rate would be considered zero, the analysis found.

If it were zero, the tax rate for the casino on the ballot would also be zero, and the state could no longer collect revenue from it.

The analysis noted that the courts or an opinion from the state attorney general would be needed to resolve whether an American Indian casino would be considered not taxable, or taxed at a rate of zero.

The possibility of this “loophole” dropping the tax rate to zero has driven a multimillion dollar advertising campaign against the Clinton County casino.

“Voters are being asked to approve what amounts to a ‘pig in a poke,’” said Bob Tenenbaum, a spokesman for the No On 6 committee, funded by Penn National Gaming, owner of the Argosy casino in Sioux City, Ind., and Raceway Park in Toledo. Penn potentially stands to lose money if Ohio customers no longer need to go to Indiana to visit a casino.

Opponents “are looking for a diversion to use,” said Rick Lertzman, co-founder of casino advocate MyOhioNow.com. Lertzman said there is no loophole, and that casino supporters would seek wording in enabling legislation if the issue passes to make it clear the casino will continue to pay taxes.

Lertzman also said the fiscal analysis did not account for additional economic benefits that will come with the casino, including sales tax and income taxes the casino and its workers would pay.

Casino supporters have promised that the $600 million casino resort outside Wilmington would bring 5,000 new jobs.