The 6 Big Loopholes in Issue 6

Issue 6 is a scheme to change Ohio’s constitution to give one out-of-state casino operator the right to build a huge casino in Ohio. It’s full of loopholes to let this out-of-state operator avoid taxes and oversight.


Loophole #1

Issue 6 gives away a casino monopoly, with no accountability.

Issue 6 gives away the right to build a huge casino to whoever owns or leases certain land in Clinton County, and locks this monopoly into Ohio’s constitution. The company claiming rights to the land is an out-of-state operator of Indian casinos, which has partnered with a local podiatrist and a business liquidator. Under 6, they would get a casino license worth tens of millions essentially for free. Then they’d be able to take their hundreds of millions in profits out of Ohio – or even sell their license to the highest bidder.

Loophole #2

Issue 6 guarantees nothing to Ohio taxpayers –not one dime.

Under Issue 6, Ohio taxpayers would be guaranteed nothing. The promoters of Issue 6 have tried to hide this fact by saying they would pay 30% in taxes on their gaming profits. But the fine print of 6 says “up to thirty percent.” And this “up to” language is a huge loophole, because up to 30 could obviously be zero. All this fine print does is guarantee the operator at least 70% of the profits and let them take millions of dollars out of state, where those revenues can do nothing to help Ohio’s economy.

Loophole #3

Issue 6 keeps voters in the dark about what they are voting on.

Voters have a right to know what they are voting on at the time they cast their ballots. But 6 was written so that many aspects are decided long after the election. Voters are left in the dark about what, if any, taxes the casino would pay, how any revenues would be used and whether there would be meaningful oversight of the casino. These matters are left up to politicians and others to decide later. This is yet another way for the casino operator to avoid accountability.



Loophole #4

Any gaming taxes that the casino might pay could be completely eliminated in the future.

An especially shocking loophole in 6 would actually reduce the casino’s tax rate to zero if an Indian casino opens in Ohio. The out-of-state operator promoting 6 has publicly admitted this loophole, claiming it was a mistake. But it just so happens that their business is operating casinos for Indian tribes! In fact, 6 could open the door to full-scale Indian casinos from as many as 12 Indian tribes that have already filed letters of intent for federal recognition for land across Ohio.



Loophole #5

Issue 6 strips the community around the casino of local control.

Issue 6 allows its promoters to override objections from the people in the local town and county where the casino would be located. Issue 6 prohibits any “local hearing” or “local vote” that would allow the community to decide whether it wants the casino. It also has language restricting “any local zoning resolution,” which would severely restrict the community’s ability to have any real control over how this huge casino impacts the surrounding area.



Loophole #6

Issue 6 prevents the state from providing real oversight.

Issue 6 literally contains no regulations to ensure that the casino operates fairly, to keep children out of gambling areas or to prevent the casino from employing criminals. The amendment allows a regulatory bureaucracy to be set up later, but it’s not even required to establish any rules on the operator’s character and fitness. And Issue 6 prohibits the state from regulating the hours of operation, the size of the casino, the types of games offered and other key aspects of casino operations.

This message has been edited. Last edited by: DavidFuzznut,

Churches don't pay taxes. And they get 10% of their sheep's money. BEFORE taxes.

I'm voting yes. Eat it religious idiots.

quote:

Originally posted by TheInternet1980:
Churches don't pay taxes. And they get 10% of their sheep's money. BEFORE taxes.

I'm voting yes. Eat it religious idiots.

I don't know if that's an assumption you're making about me, but let me put it this way:

Under the amendment they are trying to get passed, there will be a casino sucking in our money and it will be contributing nothing to the state in return.

This isn't about religion or whether or not gambling is okay, it's about this company trying to cheat Ohioans by putting loopholes in this amendment. I will support an amendment to put a casino in Ohio, but not if it won't pay any taxes.

Wow, what a sweet deal by the Casino. I can't believe the state of Ohio' army of lawyers wouldn't be all over this inititive, unless it's proposed on a Indian reservation.

The real reason to vote against the amendment is because it reads more like a statute than a constitutional provision. The former can be altered by our elected representatives, the latter cannot.

I'm pro-gambling in Ohio, but I'm against Issue 6, along with any other attempt to enshrine a monopoly in our state constitution.

The "tax loophole" argument is just silly. The General Assembly has the discretion to set the tax rate up to 30%. They're not going to let this casino operate without taking their share. Moreover, the actual text of the amendment reads: "The General Assembly shall authorize a tax of up to thirty percent". So the General Assembly has to tax it in some manner; any decent lawyer would be able to argue that there's no such thing as a 0% tax.

In regard to Loophole #4, are actual Indian casinos operated tax free? If one opened in Ohio with a 0% tax rate, than that would have to apply to this casino too. Unless you wanted to get really tricky, and argue that a 0% tax doesn't qualify as "payable".


Amendment text:
"In the event that another casino is permitted in Ohio by state or federal law to conduct gaming activities similar to that conducted by the casino authorized under division (A) of this section, the tax rate on gross casino receipts authorized by this subsection shall not exceed the lesser of twenty-five percent (25%) or the lowest percentage rate payable by any other casino subsequently authorized."

what I dont understand is, why cant we just vote yes on this, this year, then just change it next year?

the more important question should be, why is it that this out of state company was the only one pushing for a casino in Ohio? This should not be this hard.

Why cant we just get a package comparable to what neighboring states have? Why do we have to go another year without casino'(s) in Ohio?

So the way I look at it, this year, vote yes on 6, next year, yes on the issue # whatever, to change issue 6, comparable to what other states have. yes/no?

There is already too much crime and homelessness in Ohio...why invite more so someone else can profit. I say tax them 95% on all income. That way we can pay for the extra law enforcement officers and welfare increases that it will bring with it.

You can argue that it would be the gamblers fault for not using self control and common sense if he bankrupts himself but that will not change the fact we would have to pay for it.

The poeple giving out loans failed to use common sense yet who is paying for it?

quote:

You can argue that it would be the gamblers fault for not using self control and common sense if he bankrupts himself but that will not change the fact we would have to pay for it.

You could almost have inserted 700b bailout in that sentence, as an example Revkev.

All I see are more jobs for a state that is struggling to have more people working than on welfare.

legalize chop shops and it would create jobs too.

quote:

Originally posted by HgH:
All I see are more jobs for a state that is struggling to have more people working than on welfare.

Well we can wait a year. They can reintroduce a loophole free bill next year, but if we pass this we are going to be kicking ourselves for years.

games of chance are an idiot tax on the local population! i like to gamble but those games are built in with a huge house advantage, so people have no chance. also it gives next to nothing to the state and lets private, sometimes out of state vendors, keep all the idiot tax for themselves. games of skill are different than games of chance. jmho

quote:

Originally posted by Rabid Dawg77:
games of chance are an idiot tax on the local population! i like to gamble but those games are built in with a huge house advantage, so people have no chance. also it gives next to nothing to the state and lets private, sometimes out of state vendors, keep all the idiot tax for themselves. games of skill are different than games of chance. jmho

That idiot tax is just profit. Why would someone invest in opening a casino if they couldn't make a profit? If we wanted the state to get all the money, the state would have to run the casino. And who would want to blow their money at a place like that?

quote:

Originally posted by TMA1:

quote:

Originally posted by Rabid Dawg77:
games of chance are an idiot tax on the local population! i like to gamble but those games are built in with a huge house advantage, so people have no chance. also it gives next to nothing to the state and lets private, sometimes out of state vendors, keep all the idiot tax for themselves. games of skill are different than games of chance. jmho

That idiot tax is just profit. Why would someone invest in opening a casino if they couldn't make a profit? If we wanted the state to get all the money, the state would have to run the casino. And who would want to blow their money at a place like that?

You don't have to have 100% profit to be successful. Just about every other business in the country pays taxes and they generally make a profit.

quote:

Originally posted by DavidFuzznut:

quote:

Originally posted by HgH:
All I see are more jobs for a state that is struggling to have more people working than on welfare.

Well we can wait a year. They can reintroduce a loophole free bill next year, but if we pass this we are going to be kicking ourselves for years.

so, why not just vote yes this year, then next november pass a bill to counter this one?

quote:

Originally posted by BuckDawg1946:

quote:

Originally posted by DavidFuzznut:

quote:

Originally posted by HgH:
All I see are more jobs for a state that is struggling to have more people working than on welfare.

Well we can wait a year. They can reintroduce a loophole free bill next year, but if we pass this we are going to be kicking ourselves for years.

so, why not just vote yes this year, then next november pass a bill to counter this one?

Issue 6 is about changing Ohio's constitution, not about amnending the Ohio Revised Code. The language that goes into that constitution becomes the framework for all the statutes that are made on the subject. Changing the constitution is hard enough; it would be next to impossible to have another statewide referendum (which is what it would take) just to change a word or two to close a loophole in the state's constitution.

There's nothing in Ohio's constitution to prevent gambling (other than certain types of lotteries). The General Assembly passed the laws that outlawed casino gambling, and they can change them whenever they want. What Issue 6 really does is take away the legislature's and the people's power to control gambling with respect to this one casino. The governor and your representatives will be unable to alter or correct the body of law that will bring this casino into existence.

Relevant Ohio statutes prohibiting gambling:
§ 2915.02 Gambling.
§ 2915.03 Operating a gambling house.
§ 2915.04 Public gaming.

http://www.gambling-law-us.com/State-Laws/Ohio/

Thank God for you TMA1 because I don't understand this stuff nearly as well as you do. All I know is that it's bad and we can't pass this thing.

This really sucks.

I'm a conservative,and I'm all about some capitalism,and casinos.There are plenty of reasons to have some,and of course reasons not to as well,but I am for having a casino(s) in Ohio.But not if it's done irresponsiblylike this.

It's a shame that the first realistic opportunity we have for a casino here and it's crooked.

Wish we could put one here,but not this time.

quote:

Originally posted by usngunz75:
This really sucks.

I'm a conservative,and I'm all about some capitalism,and casinos.There are plenty of reasons to have some,and of course reasons not to as well,but I am for having a casino(s) in Ohio.But not if it's done irresponsiblylike this.

It's a shame that the first realistic opportunity we have for a casino here and it's crooked.

Wish we could put one here,but not this time.

I'm with you man. Hopefully something will come around again in the near future. Maybe they'll even put the casino closer to Cleveland or something.