Ohio Encourages Casino Gambling To Fight Recession

Casino Girl

Hard times and $650 million of potential tax revenue caused Ohio voters to turn their home into the 13th casino state on Tuesday.

Regulators are now moving full speed to get casinos up and running — and people gambling.

Yet tax revenue from new casinos might not start flowing until 2012.

By then the economic downturn could be over. So what was the point of removing a casino ban if it won’t help that much in the near-term?

Sounds like casino businessmen played economic fears to their advantage.

Cincinatti,com: First Tax Revenue Arrives With First Bets

Barring such a successful challenge, the state will get its first influx of casino cash once it begins issuing licenses for a one-time fee of $50 million each. But those checks won’t get cut until there are rules in place. Tax revenues from ongoing operations won’t arrive until the casinos start accepting their first bets in 2012.

Leaders of the Ohio Senate and House of Representatives will review the ballot measure. Then one or more bills will be proposed on how to implement the referendum. Legislative leaders will assign those bills to be reviewed, debated and amended by a yet-to-be determined single committee in each chamber.

Who’s the real winner here?

Detroit entrepreneur Dan Gilbert, who owns online mortgage lender Quicken Loans and the Cleveland Cavaliers, envisions a 300,000-square foot casino on Broadway Commons on the northeast edge of downtown.

“We’ll immediately begin pre-construction development work and drawing up architectural plans,” said Gilbert spokeswoman Jennifer Kulczycki on Tuesday.

Read more here.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.