Issue 6 Sponsors Now Trying To Deny What They've Already Admitted, Opponents Say

No on Issue 6 committee cites newspaper stories confirming loophole in casino plan

"The promoters of Issue 6 have a new TV ad that claims there are no loopholes in their proposal. But the same promoters admitted more than a month ago that their language does, in fact, leave a giant loophole; one that could wind up preventing the state of Ohio from collecting gambling taxes on the huge profits the promoters could make," committee spokesman Bob Tenenbaum said.
The Columbus Dispatch, in a story published Aug. 23, said that leaders of the vote yes campaign "admitted yesterday that they erred by including wording that could lower the tax rate to zero . . . "
In a Sept. 17 article, The Plain Dealer of Cleveland said, "Backers of the measure acknowledge the amendment's wording is imprecise." The same story quoted a spokesman for the Ohio Attorney General's office as saying the amendment "is vaguely worded and could be open to different interpretations."
"You can't admit you messed up the wording of your own amendment, then turn around and claim that there is 'no loophole' in the proposal," Tenenbaum said. "The voters of Ohio are much smarter than these people give them credit for. They'll see through this in a heartbeat."
The issue of taxation on casino profits centers around a provision in the proposed Constitutional Amendment that would lower the Clinton County casino's tax rate to "the lesser of 25 percent or the lowest percentage rate payable by any other casino subsequently authorized."
Legal experts have suggested that should a Native American tribe be granted authority to build a casino under federal law, that casino could pay no state taxes, automatically lowering the Clinton County casino's state tax rate on its profits to zero. Twelve Native American tribes have petitioned the federal government to attain recognition in Ohio.
The tax problem isn't the only loophole in this issue. The No on Issue 6 Committee will be examining each of the major loopholes as the campaign progresses. The No on Issue 6 Committee believes Issue 6 is a bad deal for Ohio. It would grant a constitutionally protected monopoly to a single casino operator. Issue 6 is riddled with serious loopholes that could allow the casino operator to avoid paying state gambling taxes on casino profits and would cripple state and local efforts to regulate many of the operations of the casino.