News from Kansas

Gambling on the Slots - May 22, 2002

Both sides of the gambling issue prepare for the fall elections after a slots measure failed in the just-ended legislative session.

TOPEKA - When it comes to the gambling issue in Kansas, it's not over even when it appears to be over.

Supporters of slot machines at Wichita Greyhound Park and other dog and horse tracks already are looking toward the 2003 legislative session.

They thought this would be their year to get slots approved, and they got a bill through the House -- a first.

But it was late in a contentious session and Senate leaders opposed expanded gambling. The bill died in a committee when lawmakers adjourned.

Phil Ruffin, owner of the Wichita track, has backed off of his earlier threat to shut it down if lawmakers failed to approve slots. He's hoping the issue plays a role in this fall's campaign for governor and House members.

"We're going to try again next year. The track will stay open," Ruffin said Tuesday.
Opponents, too, are looking toward the fall elections and a renewed debate in the Legislature.

"I'm not retiring this year. The threat from the racetracks is still there," said Glenn Thompson of Wichita, president of Stand Up for Kansas, a Wichita-based anti-gambling group.

As track owners prepare for another push, two American Indian tribes with casinos in northeast Kansas are angling to relocate to the Kansas City area.

The effort has the support of some gambling opponents, including Rep. Tony Powell of Wichita, chairman of the Legislature's Joint Committee on State-Tribal Relations.

The Kickapoo and the Sac & Fox tribes operate casinos at Horton and Powhattan. They want to meet with Gov. Bill Graves to talk about a joint casino in Wyandotte County, where gambling support is strong.

Several casinos already operate on the Missouri side of the line, drawing gamblers and their money from Kansas.

A Kansas City site would help stem the flow of dollars to Missouri and add money to the state treasury, Powell said. Because two casinos would close, he said, it would not be an expansion of gambling in Kansas.

He hopes to schedule hearings on the issue next month.

Kansas currently receives no revenues from the four American Indian casinos in northeast Kansas because they are on reservations.

Any revenues received from a Kansas City tribal casino would have to be negotiated, said Natalie Haag, Graves' chief of staff. A casino there or on any other non-reservation site would be on land placed in a trust for tribes for the purpose of gaming under the federal law, she said.

That gives the governor some negotiating power, Haag said. Although federal law prohibits states from demanding a share of the profits as a condition of approving a compact, the state could insist on a share for placing the land in trust, she said.
"Basically, we said don't bother asking for a meeting unless you're willing to discuss revenue sharing," Haag said.

Slots supporters thought they had a strong chance this year because of the state's financial crisis. Lawmakers eventually approved a budget that, even with $252 million in new taxes, may not break even by the end of the budget year June 30, 2003.
Estimates varied widely on how much the state would receive from slots at the racetracks where pari-mutuel wagering is allowed. Ruffin also owns Camptown Greyhound Park at Pittsburg, which is closed.

The Woodlands track at Kansas City still has regular races and horse tracks at Eureka and Anthony have seasonal events.

Ruffin contends that the state will get far less money through negotiations with the American Indian tribes.

"If the state wants revenue, they can't be pushing this Indian thing," he said.
By rejecting slots, Ruffin said, lawmakers "walked away from a billion dollars over 10 years."

After paying off some debt -- from profits of his other businesses -- Ruffin said he has cut losses at Wichita Greyhound Park in half, to about $500,000 a year. He also operates the Frontier Hotel casino in Las Vegas and the Crystal Palace in Nassau, Bahamas.
Gubernatorial candidates are split on the issue.

Wichita Mayor Bob Knight, seeking the Republican nomination, said gambling is an unreliable source of revenue.

"I don't think it fits my sense of how you build and sustain a strong state," he said. However, his new running mate, House Speaker Kent Glasscock, voted for slots and helped keep the issue alive during this year's session.

State Treasurer Tim Shallenburger, also a candidate for the Republican nomination, likewise opposes expansion of gambling.

"It takes a lot of people losing money for the state to benefit from it, and it takes a lot of money out of the economy," he said.

Both, however, said they would not commit in advance to veto slots legislation.
Insurance Commissioner Kathleen Sebelius, the presumed Democratic nominee, supports allowing slots at the tracks as long as voters in each county have their say, said a spokeswoman, Nicole Corcoran-Basso. The bill that died at the end of the session included the county option vote. Source: The Wicheta Eagle, By Steve Painter, 5-22-02

 

Kansas House of Representatives Defeats Bill to Give Dog Tracks Slot Machines - April 5, 2002

In a 64-58 vote, the Kansas House of Representatives on Wednesday defeated a measure that would have legalized video slot machines at Kansas greyhound racetracks. Hours later, a second attempt by the dog tracks to pass this measure failed by a voice vote.

Kansas now joins Florida and New Hampshire as the third state to reject legislation to allow video slot machines at dog tracks this year.

This battle continues, however, as the dog tracks have sworn to come back to the House Floor before the Kansas Session adjourns in mid-May.

ACTION ALERT - If you live in Kansas, write to your State Representative and State Senator today and tell them to continue to oppose the legalization of slot machines at Kansas dog tracks. Source: Grey2K USA