Archive for Thursday, March 25, 2004

Kline says gambling bill raises corruption threat

March 25, 2004

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— State ownership of casinos, a cornerstone of Gov. Kathleen Sebelius' gambling initiative, would open the door to public corruption, Attorney General Phill Kline said Wednesday.

Kline called a news conference to air his objections to the state ownership idea, which has been written into a bill awaiting Senate debate

The bill embraces Sebelius' proposal for up to five large casinos, to be owned by the state but built by private developers and run by a private management firm under the auspices of the Kansas Lottery.

Kline, who opposes gambling, said the bill would build a conflict of interest into state law by making the state both the owner and regulator of casinos.

The combined state role would be an invitation for "self-dealing, corruption and criminality," he said.

Besides the Las Vegas-style casinos, complete with hotels and other amenities, Sebelius proposes allowing slot machines at horse and dog tracks and at 240 private clubs run by veterans' and fraternal groups.

A Senate committee added provisions for even more slot machines at horse and dog tracks, and for slots at businesses such as bowling alleys that offer the state's Club Keno lottery game.

Matt All, the governor's chief counsel, said Kline was exaggerating the problems associated with expanded gambling. All said Sebelius' plan would mean better regulation of gambling than if casinos were privately owned.

"I think we have provided a structure that will oversee gaming in a responsible and effective way," All said. "I don't think Attorney General Kline understands the bill very well.

"It's been out for several months, and we welcome him to the debate," All added. "We're glad he's finally had time to read the bill."

Under the Kansas Constitution, only the state or an Indian tribe may own a casino.

Opponents of the governor's plan contend that true state ownership would require the state to own the equipment and hire all employees of a casino.

All, however, said the state would have the same role with casinos as it does with the Kansas Lottery. The state does not own the lottery machines but still is considered owner of the lottery operation.

Another approach has been offered by Senate Majority Leader Lana Oleen, R-Manhattan, who has introduced a constitutional amendment that would allow one large casino and four slot-machine parlors in Kansas, all privately owned.

Kline said any kind of casino, whether private or state-owned, would lead to more crime and put new burdens on law enforcement. The current Senate bill provides no additional funding for law enforcement, he said.

But All said the bill would allot up to 4 percent of a casino's revenues to the local community. That money, plus the increased sales tax and property tax revenues a casino could bring, would help cities afford more officers, he said.

Kline said the bill wasn't drafted with appropriate forethought, especially on the potential for public corruption. He said his office would work with lawmakers to fix that.

"Honestly, I think the focus has been more on economic development and state revenues than it has been on law enforcement and corruption, and that's part of its failings," he said.






Gambling bill before Senate is HB 2053.

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Kansas Legislature: http://www.kslegislature.org