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August 7, 2012
Michigan casino amendment opponents defend 1996 gambling law
Lansing— A Michigan Court of Appeals panel heard arguments Monday in a first-of-its-kind lawsuit challenging whether a proposed constitutional amendment to allow casino expansion can override a voter-initiated gambling law.Detroit's three casinos and three tribal casino operators are challenging a ballot proposal funded by private casino investors seeking voter approval for eight specific addresses to be written into the constitution, affording the property owners the constitutional right to run gambling halls and serve alcohol.
Protect MI Vote, the casinos opposition group, contends the proposal is unconstitutional because it seeks to wipe out parts of the 1996 voter-initiated Michigan Gaming Control & Revenue Act. One section of the state Constitution says only the Legislature can amend a voter-initiated statute by a three-fourths majority.
Citizens for More Michigan Jobs is one of six groups that have collected more than enough signatures to qualify for a spot on the Nov. 6 ballot. But like the other proposals, the group seeking new casinos in Birch Run, Clinton Township, Clam Lake (near Cadillac), Detroit, DeWitt Township, Grand Rapids, Pontiac and Romulus is being challenged in court before election officials set the ballot.
The initiative could "substantially rewrite" the 1996 gambling regulations voters approved by increasing the wagering tax rate for the MotorCity, MGM Grand and Greektown casinos from 19 percent to 23 percent, and eliminating a 1.25 percent tax the three Detroit casinos pay to the city for extra police, fire and municipal services, said Peter Ellsworth, attorney for Protect MI Vote.
"Voters have no notice of what they passed in 1996 is being changed here," Ellsworth said at Monday's hearing.
"It purports to be a constitutional amendment, but in fact it rewrites a statute."
Graham Crabtree, attorney for the pro-casino expansion group, said the proposed constitutional amendment, if approved by voters, would suspend the gaming control law "solely by the fact the constitution trumps the statute."
"The statute doesn't go away. It's still there," Crabtree said after the hearing.
Project MI Vote was listed on court documents under the name Protect MI Constitution, an entity setup separate from the Project MI Vote ballot committee to handle the court challenge, according to the group. Ellsworth disclosed the names of the casino operators funding the legal challenge, which include Native American tribe-owned casinos near Marshall, Mount Pleasant and New Buffalo.
If the casino question does get on the ballot, the campaign for and against expanding gambling in Michigan is expected to be one of the most expensive races this fall. Citizens for More Michigan Jobs reported spending $2.7 million through July 20 gathering more than 500,000 signatures and promoting the initiative, campaign finance records show. Protect MI Vote reported receiving more than $445,000 in cash and in-kind contributions to fight the signature-gathering, leaving the opposition group with nearly $112,000 in the bank in late July, records show.
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