Governor Rejects New Gambling in Michigan

In a blow to redevelopment efforts in this troubled city, Gov. John Engler said Tuesday that he would not approve off-reservation Native American casinos in Michigan.

The decision is a disappointment to casino developers, who had proposed six casinos for downtown Detroit, and to Mayor Dennis Archer, who had pinned the city’s economic development hopes in part on gaming.

Engler, a Republican, said the negatives of casinos far outweighed the benefits such enterprises could bring.

Engler’s decision came despite a recent endorsement of casino gambling by a gaming study commission he appointed. But Engler said the economic benefits of gaming are often overstated and that casinos spawn a range of social ills, such as more crime and drug use.

Archer said the decision is a major setback for Detroit. He said casinos are needed to raise additional revenue that would allow the city to lower its tax rate and attract new businesses.