9.27.07 Detroit casinos fight possible shutdown by state
By COREY WILLIAMS
Associated Press Writer
DETROIT (AP) -- The Michigan Gaming Control Board ruled Thursday that it would have to suspend the operations of Detroit's three casinos if the state government partially shuts down when the budget expires next week.
Gov. Jennifer Granholm did not specifically mention casino oversight in an evening address televised nationwide. But the state government Web site listed "state-licensed casino gaming in Detroit" among the services that would cease operation without a budget in place by Monday.
Michigan law requires that state regulators be onsite daily to monitor operations at the MGM Grand Detroit, Greektown and MotorCity casinos.
Richard Kalm, executive director of the Gaming Control Board, said that without state regulators in place, the integrity of each casino would be at risk when it came to payoffs, security and patrons' safety.
Lawyers for Greektown Casino will scrutinize the order over the next 24 hours, spokesman Roger Martin said following Thursday's meeting.
"We are extremely supportive of gaming control rules, but we're disappointed with this order," Martin said.
The state would lose about $450,000 a day in taxes if the casinos are forced to close, Martin said, while the city of Detroit would lose about $440,000 daily. He added that each of the three Detroit casinos pays the state $9.25 million annually for gaming oversight.
Martin and Cheryl Scott-Dube, general counsel for MotorCity Casino, both said they believed their casinos had enough surveillance and security in place that they could operate without state regulators on-site.
Board Chairman Damian Kassab said the commission was reluctant to order the temporary closures, but had no choice.
"We're basically hog-tied by the Legislature," he said after the meeting. "This will impact very good corporate citizens. Hopefully, this will give the Legislature some incentive to do what they should have done months ago."
No budget legislation has been passed for the fiscal year starting Oct. 1 and the Legislature has not resolved a projected $1.75 billion shortfall. Michigan's constitution requires a balanced budget be in place in order for the state to spend money.
James Canning, a spokesman for Detroit Mayor Kwame Kilpatrick, said after Granholm spoke that it was "too premature to speculate about what's happening with the casinos."
But, Canning added, "After hearing the governor and majority leader speak, we are optimistic - as they are - that a solution will be found before the deadline, and we will support any efforts to get past this budget impasse."
A state government shutdown would not affect Michigan's 18 Indian casinos because there's no state oversight at those facilities.
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