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Cleveland City Council Eases Rules on Casino Funds to Support Local Needs

To give members more control over how casino tax money supports their wards, the Cleveland City Council voted to change how these funds can be spent. This helps expand where this money can go in the community, as the previous rules linked spending to a narrow list of uses. These included economic development, street repairs, and park improvements. Council members stated that this older system came with problems, as it slowed down projects even when the money was available.

Under these newly implemented guidelines, this list is gone. Casino tax spending must now support a “proper public purpose.” This amendment has been made with the intention to benefit the health, safety, and welfare of residents. As a result, what council members can fund has broadened while confusion around eligibility has been removed. Under these new guidelines, projects still need to follow the law, but there’s far more room for judgment.

The old system left many small requests on the table, like fans for rec centers. Council member Richard Starr, who sponsored the change, said those kinds of needs may not make it onto citywide priority lists but matter to neighborhoods. He said the council needed the flexibility to support them.

It’s not the only area where lawmakers seem slow to act. Much like Cleveland’s casino revenue rules, other forms of legislation across the country lag behind public behavior. Take online gambling as an example. While demand for internet-based gaming grows, governments have failed to keep pace, leaving residents with few domestic options. Many turn to offshore operators including no KYC casinos because they offer faster payouts, more flexibility, and fewer entry barriers (source: https://99bitcoins.com/best-bitcoin-casino/no-kyc-casinos/). That also means governments miss out on potential tax revenue that could be redirected into communities, just like Cleveland’s casino funds. It’s another example of public interest changing faster than policy.

Each year, Cleveland receives a portion of the state’s casino tax, which totaled $13.2 million in 2023. Of that amount, 85% went to general city services. The remaining 15% was split evenly among the council’s 17 wards, giving each member a little over $116,000. However, council members said even with the money technically available, the slow internal process often got in the way. Delays in contracting and reimbursement have stalled local projects and left community groups waiting months (or walking away altogether).

The city’s rules for using casino funds were first created in 2013, shortly after JACK Casino opened downtown. The law included a detailed list of allowable projects and followed federal community development guidelines. Starr’s update removes those specifics and gives council members more discretion at the ward level.

Small upgrades (like replacing broken fixtures at a park or helping a community group with basic supplies) were typically hard to fund under the old policy. Now, members hope they can move more quickly and say yes to more of the things residents ask for. The amount of money per ward hasn’t changed, but the way it can be used has. By giving council members more freedom in how casino revenue is applied, the city is trying to strike a balance between oversight and responsiveness.

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