Ballot measure 82 would amend the Oregon Constitution and allow the establishment of privately-owned, non-tribal casinos in Oregon. Measure 83 would renovate the former Multnomah Greyhound Track to a multi-purpose entertainment center and casino, tentatively called the Grange. A percentage of revenues would be paid to the state for job growth, education, and the state lottery fund. A no vote on 82 would maintain the status quo, in that only tribal casinos would be allowed in Oregon. Ballot measure 82 has to pass first, so if it fails but 83 passes, the Grange casino could not be built. If both 82 and 83 pass, the residents of Wood Village would have to approve siting of the casino.
Should 82 pass, each proposed casino would have to go through an election and be approved by the voters statewide, have to be located in an incorporated city, have to be operated by a taxpaying corporation incorporated in Oregon, and have the location be approved by city officials. No private casino could be within a 60 mile radius of a current tribal casino that was in operation as of January 1, 2011.
Twenty-five percent of adjusted gross revenues would go into a state fund to be used for job growth, education, community improvement, and protecting the environment. Eighty percent of this twenty-five percent would go to the State Lottery Fund, while the remaining twenty percent goes to the state fund described above which would be established by measure 83. The fund would also provide assistance to all federally recognized Native American tribes in the state, law enforcement, gambling treatment services, and the incorporated cities near the casino, at a ratio of 75% to local governments, 15% to tribal governments, 5% to the Oregon State Police, and 5% to the Problem Gambling Treatment Fund. The cities which would receive this money are Wood Village, Fairview, Gresham, and Troutdale. Current lottery funding is allocated at 58% to education, 4% to local governments, and 38% to other public purposes.
Measure 83 would establish a privately-owned casino in Wood Village, at the former Multnomah Kennel Club and Greyhound Track. The lease would be for 15 years, and would be renewable. The casino would be able to operate gaming devices, table games, Keno, and other games, capped at 3,500 slot machines and 150 table games. Persons operating the tables would also have to be licensed.
Based only on measure 82, local governments that receive money from tribal gaming may lose some revenue due to the decline of gaming revenues, but the exact financial impact is unknown. The Oregon Lottery and the Oregon State Police would be the agencies in charge of regulating the private casino. The private casino would have to cover all of its own administrative and regulatory costs. Measure 83 requires a minimum investment of $250 million in the casino property. Net revenue estimates from the Wood Village casino, aka the Grange, were estimated at $32 million to $54 million per year after factoring in declines at tribal casinos and video lottery machines. As these are only estimates, and the exact number of tables set up at the beginning is not firm, the exact financial impact is not known. Once the casino is fully operational, estimated income is expected to be between $83 million and $94 million a year, and losses to the Oregon State Lottery are expected to be $61 million and $78 million. In addition, state and local governments could see declines in revenue of between $40 million and $51 million.
Advertisements for the casino mentioned 2,000 jobs with health insurance would be created, thus adding some revenue into the tax base. By turning a currently abandoned location into a business again, property tax revenues would increase due to land values rising. Travelers to the area would add to the hotel tax revenues.
It should be noted that the supporters of the Grange entertainment complex and casino pulled their advertising support for the project on October 16.