Journal Record, The (Oklahoma City): Commentary: Should Oklahomans bet on the horses?

Beginning of the 45-day quarter horse/thoroughbred racing season at Remington Park last week raises questions about how long such racing with pari-mutuel betting can remain in Oklahoma.

The issue of allowing certain other types of wagering at the tracks, to help keep them open, was deftly avoided at the end of the legislative session when the House of Representatives failed to act on Senate Bill 553 by House Speaker Larry Adair, D-Stilwell and Senate President Pro Tempore Cal Hobson, D-Lexington.

The House inaction does not mean the idea or even the bill is dead. It will carry over and be fair game in the 2004 legislative session at its same place on the House calendar. It probably will be returned to a conference committee for further work when the second session convenes next February.

Shortly after the session's ended, Rep. Wayne Pettigrew, an Edmond Republican House member who supports the effort, issued a statement emphasizing the importance the legislation has on the state's economy.

He makes some points worth considering.

"Senate Bill 553 was designed as a pro-business bill to give the state's four sanctioned horse-racing facilities the ability to offer the same types of gaming machines that are currently being operated at tribal facilities throughout the state," he stated.

It should be noted, however, there is a difference in the number of machines allowed to the tracks. Also, the hours in which they would be permitted to operate them are vastly restricted from the tribal casinos.

Even those supporting the bill in the Legislature had some questions as to how much help it would be to racetracks in its present form.

Informed sources report the horse-racing people were not invited to the table when the current version was written and the bill was designed to conform to tribal demands. Regardless, there was definite support for SB 553 from the horse industry.

There is talk of circulating an initiative petition to get the issue to a vote of the people. Either way, it will take a major effort to overcome the opposition. Some of that will come from those opposed to gambling in any form. How enthusiastic the tribal casinos will be about giving up their monopoly in the field is another question.

Pettigrew blamed the "lack of time to digest the complicated issues relating to the classifications of types of gaming" for the inaction that occurred at the end of the session.

"Failure to understand the legislation and the impact the horse industry has on Oklahoma's economy led to its temporary setback," Pettigrew said

He contends the measure is crucial to the state's horse industry, which has an estimated economic impact in Oklahoma of $4 billion annually.

"The horse industry as a whole represents the state's third- largest industry (behind agriculture and oil and gas industry) and employs 57,000 people."

Horse racing has suffered in recent years in Oklahoma due to the introduction and advancement of tribal gaming facilities throughout the state, the lawmaker claims. More than 65 of them are now operated by 26 Native American tribes in Oklahoma.

Only three of the state's four horse tracks are currently operating and one is in bankruptcy. Oklahoma City's Remington Park, which opened as one of the finest facilities in the region, has suffered business losses for seven consecutive years, according to the Edmond legislator.

There is little question it and the other tracks need an infusion of income if they are to continue to operate.

Because of the race horse breeding industry in the state, it too has a big interest in having the tracks continue operate.

Casino-type gambling?

In his statement, Pettigrew does not directly deal with the moral issue of gambling. His arguments are fundamentally centered on the business and economic benefits to the state.

Certainly there are many people who oppose the bill on strong moral grounds. Many House Republicans voted against the governor's lottery bill on the same basis. Doubtless that is a core group of opponents. They are not likely to change.

That commercial gambling legally exists in many forms throughout the state cannot validly be denied. The fact is the principle has already been decided by the people. Now the Legislature is merely haggling over the extent to which it will be permitted to occur.

According to Pettigrew, the bill became bogged down after it emerged from conference committee late in the session. The conference bill added tribal compacting language and the allowance of a borderline Class III gaming device included.

"Compact language was necessary for the state to place some oversight on Oklahoma's multibillion-dollar tribal gaming industry. It also provided the tribes would remit approximately $30 million in exclusivity fees to the state to help pay for this oversight," Pettigrew declared.

He said many legislators could not overcome the hair-splitting issue of whether a particular machine authorized was Class II or Class III gaming and refused to support the entire bill.

That machine was a "so-called electronic instant ticket machine." It is an electronic version of the Class II skill game of pull tabs, which has been ruled Class II, along with another electronic version that issues a paper ticket.

He says the only one ruled to be in the Class III category is where the results are displayed on a screen.

"All legislators were bombarded with inaccurate information alleging that if the state allows one type of Class III gaming it would open the floodgates to full casino gambling," Pettigrew said.

But he argues differently.

"Oklahoma has operated Class III pari-mutuel wagering at the horse tracks for almost 20 years without it opening up other forms of gambling.

"The courts have consistently ruled that by allowing one type of game, a state does not allow other games not specifically allowed by law."

Currently the bill specifically outlaws slot machines, and other similar types of games. It specifically prohibits dice games, roulette wheels, and house-banked card games.

Pettigrew maintains the classifications of types of gaming and negotiations of Indian compacts will continue during the interim between the legislative sessions.

The question is whether legislators will be eager to vote on such a controversial matter in an election year.

But Pettigrew insists, "the viability and survival of the state's horse-racing industry hangs in the balance of getting additional legislators to understand the economic impact of the horse industry and the need for business fairness on this issue."

William O. Pitts, the former president and chief executive of Oklahoma Business News, was president and chief lobbyist for the Mid- Continent Oil and Gas Association's Oklahoma Division.