Proposed by initiative petition to be voted on at the General Election, November 2, 2010.
Authorizes Multnomah County casino; casino to contribute monthly revenue percentage to state for specified purposes
Result of “yes” vote
“Yes” vote authorizes a single privately-owned casino in Multnomah County; requires casino to give percentage of monthly revenue to State Lottery for specified purposes.
Result of “no” vote
“No” vote maintains the current state of the law, which does not authorize any privately-owned casino or casinos anywhere in the State of Oregon.
Currently, Oregon Constitution prohibits establishing casinos within state. Under measure, State Lottery shall issue renewable 15-year lease permitting owner of former Multnomah Kennel Club in Multnomah County to operate gaming devices, table games, keno, other games of chance at that site. Measure would become operative only if constitution is amended to permit casino or casinos within state. Casino operator shall pay 25% of adjusted gross revenues each month to State Lottery. Lottery shall deposit money into a Job Growth, Education and Communities Fund (separate from general fund), annually shall apportion half of fund for classroom instruction expenditures, 30% to counties. Casino operator initially shall pay $1 million, subsequently shall pay $2 million annually, to Lottery to administer measure. Other provisions.
Estimate of Financial Impact
To implement the measure, state government would be required to spend approximately $1 million in the first year. If a casino is licensed, state government would be required to spend between $4 million and $6 million in the following twoyear period; and between $4 million and $8 million in each two year period after that. These costs will not be incurred unless a state constitutional amendment, separate from this measure, authorizes implementation of this measure.
The measure would not require any local government spending. The measure, alone, will have no direct effect on state or local revenues. If a casino is licensed, state and local revenues would be increased between $13 million and $68 million each year. However, the measure would result in a shift of funds from the state to local governments which would leave the state with a gain of no more than $1.8 million and a possible loss of $26.2 million.
Explanation of Estimate of Financial Impact
If authorized by the state constitution, this measure would allow one privately owned casino in Multnomah County.
The committee estimated that regulation for a casino, as required in the measure, would cost approximately $1 million in the first year, and between $4 million and $6 million in the next two-year period, and between $4 million and $8 million for each two-year period after that, depending on the size of the casino and the number of gaming devices and other games offered. The estimates were based on cost information from the Oregon State Police, which currently regulates gaming at tribal casinos in Oregon. The measure limits the amount of money that the casino operator would be required to pay for regulation to $4 million in a two year period, and specifies that no other public funds may be used to pay for regulation.
The measure requires the casino operator to transfer 25% of the casino’s net gaming revenues to the state for specific purposes. The committee estimated that the total amount that would be transferred would be between $83 million and $147 per year depending on the size of the casino, and on its gross revenues.
A casino would be expected to compete with the Oregon State Lottery for business. The committee estimated that state and local government payments from lottery revenues would decline between $72 million and $79 million each year.
The measure also directs the use for the transferred casino revenues. Depending on the size and gross revenues of the casino, the committee estimates that each year between $4 million and $7.5 million would go to state programs; between $37 million and $67 million would go to local governments; and between $40 million and $74 million would go to schools.
Oregon State Lottery revenues are used for a variety of purposes. These include funding schools, parks, economic development and fish habitat. To the extent that the casino authorized under the measure would have the effect of reducing lottery revenues, these programs would be affected.
Secretary of State Kate Brown
State Treasurer Ted Wheeler
Scott L. Harra, Director, Dept. of Administrative Services
Elizabeth Harchenko, Director, Dept. of Revenue Debra Guzman, Local Government Representative
(The estimate of financial impact and explanation was provided by the above committee pursuant to ORS 250.127.)