Michigan Gov. Jennifer Granholm prodded the legislature to boost the state’s gaming tax from 18% to 24% but delayed signing the bill into law.
Now, she is being challenged by the operators of Greektown Casino, one of the three gaming emporiums in Detroit. Greektown announced it would layoff more than 100 workers in response to the increased taxes. The layoffs were to take effect this week although the tax hike won’t be effective until Oct. 1.
A casino spokesman warned that further layoffs could follow.
There has been no word from the other two Detroit casino operators, MGM MIRAGE Inc. (MGG) and Mandalay Resort Group (MBG).
The Sault Ste. Marie Tribe of Chippewa Indians own 90% of Greektown Casino while the remainder is owned by a group of Detroit businessmen.