Long powered by the Big Three auto makers, bankrupt Detroit today is relying heavily on casino cash, reports Matthew Dolan in the Wall Street Journal.
Writing for a national audience, Dolan notes the "Motor City" draws more from casino tax revenue these days than from the taxable property value from Ford Motor Co., Chrysler Group LLC and General Motors Co..
He writes:
But like the auto industry before it, local casinos could soon contribute less to the city's coffers as competition heats up from newer casinos within driving distance. Last year, taxable revenue from casinos fell 4.7% to $1.35 billion, the biggest year-to-year drop ever, according to the Michigan Gaming Control Board.
Internal city documents reviewed by The Wall Street Journal show the city predicts casino revenue will stay essentially flat over the next 20 years, a trend that could cause problems down the road.
On a list of the city's 30 largest taxpayers, MGM Grand Detroit, the casino and hotel complex, had a total taxable value of $210 million, more than Chrysler's $177 million. Greektown Casino had a total taxable value of $75 million, more than GM's $73 million.
The story sits behind the Journal's paywall, but appears to be accessible through a one-time free pass by Googling the headline: "Detroit Counts On Casinos"
