9.21.07
Gaming board stumped by potential state shutdown
Joel J. Smith / The Detroit News
DETROIT -- The Michigan Gaming Control Board postponed a decision today on whether or not to order the three Detroit casinos closed on Oct. 1 if the lack of a new state budget forces a shutdown of government services.
The board has scheduled a special meeting for 2 p.m. Thursday to discuss the possible casino closures again.
The four-member board was reluctant to vote on the issue because the casinos produce nearly $1 million a day in tax revenue for the state and city of Detroit as well as paying all costs of the gaming board.
Gaming board employees regulate the casinos and are at the casinos 24 hours a day to make sure things are run according to state law.
"I'm been told to prepare for a complete shutdown of the casinos," said Richard S. Kalm, executive director of the agency. "We have to be prepared if the state shuts down government."
Kalm submitted a proposed resolution to the board asking them for the authority to order the casino licenses suspended in the event the governor sends the agency personnel home amid the budget dispute.
Damian Kassab, chairman of the board, said that while reluctant to approve such an order, the board has little choice in the matter if his employees can't conduct their normal oversight of casino operations.
He submitted a resolution, but couldn't muster a second from any of the three other board members.
They called for a 20 minute recess, then came back and scheduled the next meeting for Thursday.
Attorneys for the three casinos attended today's meeting, vigorously opposed to any shutdown of the casinos. They argued that the casinos had nothing to do with the budget dispute in Lansing and they were becoming unnecessary victims in the ordeal.
They hinted they might seek a court remedy if the gaming board ordered the gambling halls to close.
But Kassab said he's hopeful a budget solution can still be worked out and will make the casino issue moot.
"Hopefully we won't have to meet next week," he said.
You can reach Joel J. Smith at (313) 222-2556 or jsmith@detnews.com
The board has scheduled a special meeting for 2 p.m. Thursday to discuss the possible casino closures again.
The four-member board was reluctant to vote on the issue because the casinos produce nearly $1 million a day in tax revenue for the state and city of Detroit as well as paying all costs of the gaming board.
Gaming board employees regulate the casinos and are at the casinos 24 hours a day to make sure things are run according to state law.
"I'm been told to prepare for a complete shutdown of the casinos," said Richard S. Kalm, executive director of the agency. "We have to be prepared if the state shuts down government."
Kalm submitted a proposed resolution to the board asking them for the authority to order the casino licenses suspended in the event the governor sends the agency personnel home amid the budget dispute.
Damian Kassab, chairman of the board, said that while reluctant to approve such an order, the board has little choice in the matter if his employees can't conduct their normal oversight of casino operations.
He submitted a resolution, but couldn't muster a second from any of the three other board members.
They called for a 20 minute recess, then came back and scheduled the next meeting for Thursday.
Attorneys for the three casinos attended today's meeting, vigorously opposed to any shutdown of the casinos. They argued that the casinos had nothing to do with the budget dispute in Lansing and they were becoming unnecessary victims in the ordeal.
They hinted they might seek a court remedy if the gaming board ordered the gambling halls to close.
But Kassab said he's hopeful a budget solution can still be worked out and will make the casino issue moot.
"Hopefully we won't have to meet next week," he said.
You can reach Joel J. Smith at (313) 222-2556 or jsmith@detnews.com
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