Topeka Capital-Journal, The: The Woodlands hopes Sebelius' plan will help pari-mutuel facilities

Jim Gartland, general manager of The Woodlands, is expecting Gov. Kathleen Sebelius to lay down a wager any day now that could make or break the pari-mutuel track in Kansas City, Kan.

But the outcome won't hinge on whether a certain dog wins, places or shows.

Rather, Sebelius is betting she can win support from the Legislature and bring new revenue to the state with a plan to expand casino gambling. The proposal is likely to focus on creation of a major-market casino in Wyandotte County, which could either prompt a resurgence at The Woodlands or leave it to wither and fail.

"We're hoping that state-run casino is right here at The Woodlands --- if not right here at the track, then possibly somewhere in close proximity," Gartland said. "But if it was just a casino in Wyandotte County and we had no other gaming options, I think it would kill us."

Ideally for Gartland, Sebelius would allow slot machines, as well as video poker and blackjack terminals, at The Woodlands and the state's two other pari-mutuel tracks in Wichita and Frontenac, or allow the track to expand into a so-called "destination" casino that would attract gamblers from a regional population area.

"Additional gaming here would certainly make The Woodlands much more viable," he said.

In a report Tuesday to the Senate Federal and State Affairs Committee, a Sebelius staff member detailed the groundwork for the governor's proposal.

Matthew D. All, chief counsel for Sebelius, said a 15-member gubernatorial committee studying gambling expansion recommended construction of a Wyandotte County casino and identified the best location as the Kansas Speedway area, which isn't far from The Woodlands.

The casino either would be operated by an Indian tribe, with a portion of its funding going to the state, or would be state-owned and operated.

"We are working on the bill now," All said. "It'll either be (filed) next week or the week after."

All said informal studies by the committee indicated Kansans make up as much as 40 percent of customers at Kansas City, Mo., casinos. Committee members would like to see the dollars spent by those gamblers remain in the state.

He said the governor was open-minded about expanding gambling in other areas with tourist attractions, such as Dodge City or Junction City. The committee recommended establishing a gaming board to review proposals to spread gambling to a limited number of additional venues, both in Wyandotte County and elsewhere in the state.

"But if we were only going to have one casino, that (Wyandotte County) is where to have it," he said.

All said destination casinos would bring more revenue to the state than other proposals, such as allowing video lottery machines in convenience stores.

"The committee thought it would really only provide gaming for gaming's sake," All said of the convenience store proposal. "Nobody's going to come in from out of state to gamble at the Kwik Shop."

The committee also recommended allowing video gambling machines in fraternal organizations. The state would own, operate and oversee those machines.

Sebelius' proposal is one of at least two gambling bills expected to go before the 2004 Legislature. House Speaker Pro-Tem John Ballou, R-Gardner, announced last week he was planning to introduce legislation allowing slots at the state's three pari-mutuel tracks, including The Woodlands, and establishing casinos in areas with tourism attractions.

The state currently allows gambling in the form of the state lottery, pari-mutuel wagering and bingo parlors. Kansas also is home to four Indian casinos, from which the state receives no revenue.

Gambling supporters say various casino proposals would generate anywhere from $10 million to $300 million in state revenue and would provide additional benefits in increased tourism and jobs. Opponents say additional revenue would be offset by social costs related to gambling, such as escalating bankruptcy and gambling addiction and substance abuse.

Gartland said The Woodlands and its 210 employees needed some sort of life line from the state. Although attendance climbed 9.6 percent from 2002 to 2003 and the track's "handle" --- or dollars wagered, including live races and simulcasting --- grew by 2.2 percent, business is a fraction of the level from the track's busiest years in the early 1990s.

"Business is fair," he said. "Everyone compares business now to what it was in '91 or '92 when The Woodlands opened and it was the only game in town, and, obviously, things have changed significantly since then. We're not knocking the world over."

THE IMPACT

Gambling proponents say the state could reap $10 million to $300 million through various proposals to expand gaming in Kansas. Opponents, however, say the revenue would be offset by social costs.

Ric Anderson can be reached at ric.anderson@cjonline.com or (785) 296-3005.