Associated Press
TRAVERSE CITY, Mich. — The city of Detroit violated the U.S. Constitution by giving two companies preferential treatment when issuing licenses for casinos, a federal appeals panel ruled Friday.
In a 2-1 ruling, the 6th U.S. Circuit Court of Appeals in Cincinnati overturned a federal judge who upheld a city ordinance favoring the companies. The panel returned the case to the lower court for further consideration.
Detroit’s ordinance gave preference to two companies that helped support a 1996 statewide ballot measure approved by voters that allowed off-reservation gambling in Detroit. The measure specified that only three casinos could be built.
The Lac Vieux Desert Band of Lake Superior Chippewa Indians argued the ordinance discriminated against the tribe for failing to take the correct position in the political debate over legalizing off-reservation gambling. The appeals court agreed.
"By employing the preference, Detroit basically sought to end the high-stakes competition for two of the three Detroit casino licenses before it really began," Chief Judge Boyce Martin wrote in the majority opinion.
"This we cannot allow. Barring governments from endorsing or punishing political activity, or the lack of it, is among the paramount functions of the First Amendment’s free speech clause."
The two companies, Greektown Casino LLC and Atwater Entertainment Associates LLC, helped place initiatives on the city ballot, then organized support for the statewide referendum. They were awarded licenses along with MGM Grand, which did not have preferential status.
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