Topeka Capital-Journal, The: Gambling

Advocates make assertive appeal to Senate panel

Advocates of expanding casino and video lottery gaming in Kansas made an aggressive play Monday that triggered an equally forceful rebuke from Gov. Kathleen Sebelius' chief legal counsel.

A consortium of gaming industry tycoons, city and county economic development officials and horse and dog racing leaders converged on the Senate Ways and Means Committee with a revamped proposal that would put an estimated $150 million into state coffers in the next 15 months.

That revenue would become available, supporters said, if the Legislature authorized placement of slot machines at five existing pari-mutuel race tracks and by permitting development of at least five "destination resort" casinos. Previously, bills identified Wyandotte, Sedgwick and Cherokee/Crawford counties as potential sites. Ford and Geary counties were added in the revised bill in an attempt to pull legislators on the bandwagon.

The state would own the casinos, which would be managed by contracted companies.

Doug Lawrence, a lobbyist with the Kansas Greyhound Association, said the state couldn't afford to turn its back on millions of dollars in revenue or the thousands of jobs that would be created.

"The question isn't whether Kansans can and will gamble. They do," he said. "The question is whether the state should closely look at this revenue stream as a means to provide needed funding for education."

Leaders of the American Legion and Veterans of Foreign Wars testified against the coalition's gambling bill because it no longer would allow slots at clubs operated by the veteran groups.

Matt All, chief counsel for the governor, said the Senate bill had "substantial problems" that went beyond those expressed by veterans.

He said the proposed bill:

- Dictated which counties could host a casino but placed no limit on the number of casinos in each county.

- Failed to guarantee the state a percentage of gross gaming revenues. The state would get 65 percent of net revenues --- gross revenues less casino operating expenses.

- Protected financial interests of casino managers but didn't shield the state, serving as an "invitation to litigation."

- Would issue state bonds to finance casino construction, an improper use of state resources.

Chairman Dwayne Umbarger, R-Thayer, set no timetable for working the new gambling bill, which conflicts with a proposed gambling compact negotiated by Sebelius with the Kickapoo and the Sac and Fox tribes for construction of a lone casino in Wyandotte County.