The Motor City is betting big on gambling to bring it out of bankruptcy and back to life. Maybe not eight the hard way but close. As Michael Erman at Reuters reports:
Detroit's reliance on casino cash to help fund a recovery from the city's historic bankruptcy is a high-risk bet on what is an increasingly shaky source of income.
In fiscal year 2013, casino taxes brought in $174.6 million, down 3.7 percent from $181.4 million the year before,
The bankruptcy plan:
… predicts it will continue to drop to just over $168 million in 2015, then recover to its 2012 level by 2023, at a growth rate of 1 percent a year from 2016 until 2023.
… just a 1 percent annual downturn in wagering taxes after 2016 would lead to a more than $25 million shortfall in 2023 alone, according to calculations by Reuters.
Call it a bet on solvency. All in.