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Professors debate pros, cons of proposed Lansing casino

October 5, 2011

Gary Gagnon has noticed a profound change in Mount Pleasant, Mich., since a casino complex opened up in 1994.

The town used to be dead at Thanksgiving and New Years, when students at nearby Central Michigan University typically left. Now, it’s a vacation destination for scores of Michiganians. Restaurants and local businesses used to suffer in the summer; now, visitors to Soaring Eagle Casino & Resort tide them over.

“CMU used to be a college town,” said Gagnon, a marketing and hospitality professor at CMU who specializes in the casino industry. “Now it’s a casino that happens to have a university in it.”

As the possibility of a casino being constructed in downtown Lansing flared up again last week — when sources close to the negotiations last said the project was steadily progressing and a temporary casino might be completed by the year’s end — the project still remains shrouded in secrecy, with no official comment on the status of the talks.

Accompanying these developments, experts with knowledge of the casino industry debate the effects such a structure would have on Greater Lansing – if it ever comes to fruition.

Gagnon has no doubt a casino in Lansing would thrive.

“If it opens, it will be successful, there’s no doubt about that,” He said. “The market for gaming in Michigan is not yet saturated.”

But there are many hurdles to face before any slot machines light up in Lansing.

Although some communities look at casino construction as a quick fix for their economic woes, building a native-owned, off-reservation facility — such as the one being negotiated in Lansing — is politically and legally challenging to make happen, said James Hill, a CMU professor who conducts research on the effects of casinos in Michigan. One of this type has never been constructed, he said.

“This is a hot political issue,” Hill said. “There are a lot of hurdles that have to be overcome to make this happen, especially in Lansing.”

The tribe would have to submit an application to the Bureau of Indian Affairs, which would undergo intense scrutiny, to commence with the project, said Eric Bush, administrative manager for tribal gaming at the Michigan Gaming Control Board.

Although the politics might be grueling, the effects could be rewarding.

Two years after Soaring Eagle opened in Mount Pleasant, Hill directed a study showing a 58 percent increase in the county’s private sector jobs, largely as a result of the new casino. The county also saw a population increase of several thousand during that time.

But Zachary Neal, an assistant professor in the MSU College of Social Science who specializes in urban economic development, isn’t certain the effects would be as booming in Lansing.

“Sometimes putting a casino downtown could detract from the streetscape,” Neal said, adding the contained environment of a casino could pull business away from stores and restaurants in the downtown area.

The effects on Lansing depend largely on the specifics of the structure, Neal said. While students might not be inclined to visit a gaming-only facility because of their limited budget, more likely would make the trip down Michigan Avenue if other amenities, such as an entertainment venue, were included.

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