Suckers. You thought you drove a stake through the heart of Wembley's "Racino-Tourism Donation" scam. Well, vampires come in pairs.
Now that Wembley is down, casinos want to raise their $5 bet limit to $100, and toss an annual $25 million "bone" to the tourism industry. As with Wembley's plan, this takes a constitutional amendment.
When casinos opened in 1991, they were supposed to be "mom and pop" slots to rescue historic towns from degradation. The language was supposed to keep lots of space between slot machines to keep the numbers down, and the $5 limit was written in by casino backers to assure the public (and Las Vegas casinos) that this was no big deal.
Charlie Roos of the Rocky Mountain News quoted then-Sen. Sally Hopper, the chief legislative sponsor of "limited" gambling, telling her compatriots in 1990: "We're not talking about casinos. We're talking about something that would enhance the Western flavor of these towns. We don't want whole buildings turned over to gambling. We're purposely making it unprofitable so that it won't attract the wrong sort of people."
Well, the Gaming Commission interpreted the constitutional language to allow less space between slot machines, and away we soared.
The push for larger casino bet limits began in 1993. The Las Vegas industry had actually supplied minor funds to oppose the ballot issue in November of 1990. But once gambling was a reality, big casinos began planning for unlimited bets on a wide range of games to be on the ballot in November of 1994.
Steven Grogan, a Colorado gaming consultant, said the bet limit should be $25 and include dice, roulette and spinning wheel games. I don't know why, but casinos backed off in 1994, except for their insensitivity.
Dave Zamarin, then-director of sales for Peppermill Casino in Reno, Nev., spoke with Steve Caulk of the News, on Oct. 19, 1993, about the compulsive gambling issue:
"Do you close ice cream parlors because there are people who eat too much? The intentions of limited stakes are good, but it's like anything else: people have to have the freedom to make choices." Compulsive gambling is like too much ice cream? Compulsive gambling is a recognized psychological addiction. I have to assume Zamarin never met an addiction he couldn't embrace.
The opening salvo for a 2004 ballot issue raising casino bet limits to $100 began with an article in the Nov. 10 Denver Post, "Tourism eyes casino money." The article was mostly pros with some cons about raising the $5 bet limit.
The next salvo on raising limits for casino gambling came from Bob Ewegen on the Post editorial page. His column applauded the casino source for tourism money, ending with, "When the Legislature returns in January, the lawmakers should think hard about such a win-win situation (from $5 limit to $100 limit) to the tourism funding problems."
In fiscal year 1996 casinos had an adjusted gross profit of $401 million. In fiscal year 2003 it was $682 million. I'd love to have a stock that came through a recession with a 69 percent increase in adjusted gross profit.
Colorado Gaming Association President Lois Rice told the Post "the casinos will meet soon to begin hammering out a legislative agenda for the coming year." My advice to Rice: Don't try the Legislature. You have the money to put it directly on the ballot by petition. People will sign almost anything.
The casinos can pour millions into their cause in 2004 and there won't be any money to contest them. They are now one of the most powerful influences in state politics.
Kopel served 22 years in the Colorado House of Representatives.
Copyright 2003
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