Gazette, The (Colorado Springs): Don't bet on a compromise/ Divide over gambling amendment wide,

In Cripple Creek casinos and at the Post Time racetrack in Colorado Springs, few gamblers seem concerned about a statewide gaming amendment that could radically change where wagering occurs.

The owners of those establishments, however, are watching intently and trying to influence the outcome of Amendment 33, which seeks to expand gambling in Colorado by allowing video lottery terminals at the state's five racetracks.

If the measure passes, casino owners fear people will stop coming to the mountain casinos. If it doesn't pass, racetrack owners fear attendance will continue to drop at the state's five tracks.

Nevertheless, with the election less than three weeks away, it's business as usual at the casinos and racetracks.

In Cripple Creek, Sally Devine of Colorado Springs sat on a bench outside Bronco Billy's and read a book while her husband played the slots.

It's a monthly excursion for the couple - one they wouldn't give up even if voters approve a ballot measure to allow video lottery terminals, or VLTs, at Colorado racetracks.

Amendment 33 promises to bring legalized gambling much closer to the urban core than it has been in the faraway mountain towns, where it was legalized in the early 1990s.

"There's a uniqueness and a variety up here," Jim Devine said. "It's got the one thing that the racetrack doesn't have - the drive up. It's beautiful. A lot better than Nevada Avenue."

The Devines disagree about Amendment 33, with opposing arguments that echo the $7.7 million campaign the measure's supporters and opponents are waging.

Sally Devine is voting no Nov. 4. She doesn't want gambling expanded in Colorado and thinks the VLTs would be a tawdry addition to the racetracks.

Jim Devine is voting yes, saying the state needs money the terminals would generate for tourism. Besides, he said, companies that own the casinos shouldn't monopolize the state's gambling dollar.

Opponents to the measure - calling their group Don't Turn Racetracks Into Casinos - say VLTs would generate problems associated with gambling without paying for them.

They say the measure is being backed by and would vastly benefit one company - Wembley USA, which owns four of the state's five racetracks, including Post Time.

The company has had recent legal problems in Rhode Island, where it owns Lincoln Park racetrack. A federal grand jury indicted Wembley Chief Executive Officer Nigel Potter and Lincoln Park CEO Daniel Bucci last month on charges of conspiring to bribe a law firm that Rhode Island's former House speaker heads.

Amendment 33 supporters - calling themselves Support Colorado's Economy & Environment - say the VLTs would establish a reliable funding source for tourism without increasing taxes, raising $25 million a year for tourism promotion.

"That's a $1.25 billion shot in the arm," said Sen. Jack Taylor, R- Steamboat Springs, who's supporting the measure. "We're losing about $2.4 billion annually in the tourism market. This is about promoting tourism. It's about the economy and about jobs."

Voters can expect to hear more about these issues as the November election nears.

It wasn't on anyone's mind Monday afternoon inside the smoke- filled Post Time, where about 100 people watched TV screens broadcasting horse and dog racing from around the nation. Patrons flipped through racing programs, held small slips of paper that documented their bets and watched the equine and canine competitions.

Alford Clair sat at a table with friends. He held a fist full of paper slips. He comes to the track every day and goes to Cripple Creek every night. He's voting for Amendment 33, believing it will provide jobs and help raise state funds without raising taxes.

His friend, who didn't give his name, questioned Clair.

"If they put these things in here, you guys will be so broke," he said. "Show me how these VLTs will do anything good for anyone? People will be breaking up their homes, leaving their wives and kids so they can play these games."

"No, they won't," Clair said.

Amendment 33 opponents agree with Clair's friend.

The year after gambling began in Teller County, felonies in the county increased 64.4 percent - from 90 in 1991 to 148 in 1992, said Dan May, assistant district attorney of the 4th Judicial District that includes El Paso and Teller counties.

Today, 40 percent of misdemeanors and traffic offenses in Teller County are gaming-related, May said. Last year, 15 percent of Teller County felonies were linked to gaming.

In the dozen years since gambling began in Cripple Creek, the Police Department increased tenfold, growing from a three-person department in 1992 to 30 today.

To offset costs, casinos are taxed, providing money for impact fees, as well as money for historic preservation and tourism.

Last fiscal year, from June 2002 to July 2003, Colorado casinos profited $707.2 million and paid $97.45 million in taxes.

About $5.9 million was given to the local government limited gaming impact fund.

Under Amendment 33, racetracks won't be taxed to help governments with problems associated with gambling, May said.

"Instead, the impact being borne by the gaming industry, or the gamblers themselves, will be paid for by the taxpayers of El Paso County," he said.

Supporters of the amendment say there may be some negotiation on that point.

"Both (racetrack owners) have expressed an interest to the cities to enter into negotiations regarding any impact fees that need to be addressed," Amendment 33 spokeswoman Lynea Hansen said. "They are willing to negotiate with those fees. They are happy to offset them."

Tom Grey, executive director of the National Coalition Against Gambling Expansion, is traveling the state to argue against the amendment on the behalf of religious groups. He disapproves of gambling in the mountain towns - saying it leads to a decay of society, that it's addictive and has turned the towns into casino havens with historic overtones.

Grey thinks the battle is about two sides wrestling for a share of the state gambling dollar, and he has a suggestion.

"Why don't both sides just contribute (their campaign) money to tourism?" he said. "The $10 million they are spending on the campaign, they could provide to (promote) tourism."

AMENDMENT 33

What: Amendment 33 seeks to add at least 2,500 video lottery terminals to the state's five racetracks from 2004 to 2019. It would raise $25 million for tourism promotion, as well as money for parks, open space and recreation.

What are video lottery terminals?

Electronic devices that play games of chance and award credits through a printed voucher to be redeemed for cash. They can play games such as video slots, video poker, blackjack, electronic bingo and keno.

Pro-Amendment 33 Web site: www.tourismmeansjobs.com

Anti-Amendment 33 Web site: www.itsabiglie.com