Archive for Tuesday, March 23, 2004

Alternative gambling plan offered

March 23, 2004

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— A Senate leader has intervened in the debate over gambling, pushing her own proposed constitutional amendment to permit just one large casino and four slot-machine parlors in the state.

Senate Majority Leader Lana Oleen, R-Manhattan, said Monday that her proposal was an alternative to "some sloppy, greed-driven measures" that have gained legislative support this session.

As majority leader, Oleen -- who has consistently opposed expanded gambling -- controls the Senate's debate calendar. She wants the Senate to discuss her constitutional amendment before it takes up another proposal.

Oleen's proposal -- which would go on November's statewide ballot -- makes no provision for slot machines at private clubs and is far smaller in scale than gambling bills backed by Gov. Kathleen Sebelius and a Senate committee.

Sebelius has proposed allowing up to five, state-owned "destination" casinos with hotels and other amenities; up to 2,500 slot machines spread among the state's dog and horse tracks; and up to five slot machines at each of 240 private clubs run by veterans' and fraternal groups.

An even broader measure emerged last week from the Senate Federal and State Affairs Committee. That bill embraces most of Sebelius' plan but would allow 4,000 slot machines at dog and horse tracks -- and allow slots at businesses such as bowling alleys that offer the state's Club Keno lottery game.

The committee's measure would authorize "close to 800 locations where slot machines would be visible to Kansans," Oleen said.

Neither the committee bill nor Sebelius' package would put casino gambling to a statewide vote, simply requiring instead that a county's voters approve any casino or the introduction of slot machines.

Oleen's proposal would require adoption by two-thirds of both the House and Senate and approval by a simple majority of voters in the Nov. 2 election.

Her measure contemplates one large casino, in Wyandotte County, plus four betting parlors with up to 400 electronic gambling machines each but no table games, such as roulette.

The governor's staff has estimated that Sebelius' gambling proposal would generate up to $250 million in revenues for the state. Oleen said she does not know how much revenue her amendment would produce.

Under the Kansas Constitution, only the state and Indian tribes can own casinos. Oleen's amendment would permit private companies to own casinos.

Oleen said she believes the four Indian tribes that own casinos in Kansas now would sue the state if the committee-endorsed bill passes.

The committee-endorsed bill calls for state-owned casinos but would permit private companies to manage them. While Sebelius' administration believes such an arrangement would comply with the constitution, attorneys for Indian tribes have suggested it would not.

Matt All, the governor's chief counsel, said Sebelius, too, believes Wyandotte County should have a large casino but thinks they should be allowed elsewhere as well.

"The governor's plan provides an opportunity to create jobs and money through tourism," All said. "That's why the focus of our plan is to have large, destination casinos."

Oleen proposes to dedicate 25 percent of the profits from expanded gambling for tourism, 16 percent for equipment upgrades in vocational and technical colleges, 10 percent for veterans programs, 4 percent to the county where a casino is located, 4 percent to the state's horse and dog breeding industry, and 2 percent to fund for problem gamblers. The casino operator would get 25 percent.

Under the Senate committee's bill, the state would receive at least 22 percent of the revenues from casinos and 64.5 percent of the revenues from slot machines at tracks, private clubs and sports businesses.

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Gambling bill before Senate is HB 2053.