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Supplement to the City Club of Portland Bulletin, Vol. 95, No. 20, October 19, 2012

STATE OF OREGON MEASURE 82: Amends the Oregon Constitution to permit privately-owned casinos; a percentage of revenue payable to dedicated state funds is mandated.

STATE OF OREGON MEASURE 83: Authorizes a privately-owned casino in Wood Village, Oregon; a percentage of revenue payable to dedicated state funds is mandated.

In Measure 82, Oregon voters are being asked to change the state constitution to allow privatelyowned casinos. Measure 83 would authorize a specific privately-owned casino in Wood Village, sixteen miles from Portland. The casino in Wood Village can proceed only if both measures are approved. As an additional requirement, City of Wood Village voters must approve Measure 83 authorizing the construction of a casino in their community.1

Similar measures were attempted by the same sponsors in 2010. The constitutional measure did not obtain enough signatures to be on the ballot and the Wood Village casino measure failed by a 2 to 1 margin.

Measure 82 requires a casino authorized under the Oregon Constitution to pay 25 percent of its annual adjusted gross gaming revenues to the State through the State Lottery. Proponents of both measures state that the proposed Wood Village casino, would generate $107.2 million to $141 million in annual revenue to the state. However, due to a decline in lottery revenue resulting from competition with the casino, state officials project net annual contributions to the state of $32 million to $54 million.* A reduction in lottery revenue may jeopardize the viability of lottery bonds which are used to pay for various state infrastructure projects, such as roads and schools.

Proponents note that Wood Village is an economically depressed city of less than 4,000 residents sharing borders with Gresham, Fairview and Troutdale. It has been unsuccessful at attracting economic development projects. The town and the surrounding area would benefit financially from thousands of construction jobs and permanent casino jobs.

Opponents reply that a private casino sixteen miles from downtown Portland will jeopardize the small businesses that depend on revenue from State Lottery machines, as well as the Spirit Mountain Casino in Grande Ronde, sixty miles from Portland. Spirit Mountain is one of nine Oregon tribal casinos allowed by federal law superseding the Oregon Constitution. Often the largest regional employer of both tribal members and local residents, these casinos are economic development engines for rural communities and provide public services, including health and welfare, to tribal members.

The majority recommends a “NO” vote on Measure 82 and a “NO” vote on Measure 83.

The minority recommends a “YES” vote on Measure 82 and a “YES” vote on Measure 83.

City Club members will vote on this report on Friday, October 19, 2012. Until the membership vote, City Club of Portland does not have an official position on this report. The outcome of this vote will be reported in the City Club Bulletin dated October 26, 2012 and online at www.

1 Office of the Oregon Secretary of State, Elections Division

* State officials estimate that revenue to the state from the casino would be $82 million to $94 million and that lottery revenue would decline by $40 million to $51 million.

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