Sunday, January 17, 1999
Video slots a long shot for tracks
Ky. legislators doubt voters will approve
BY PATRICK CROWLEY
The Cincinnati Enquirer
FLORENCE — The sale of Turfway Park to a partnership that includes a casino operator and a gambling-device maker has Kentucky lawmakers preparing for calls to allow video slots at thoroughbred horse tracks.
But some Northern Kentucky legislators say don't expect either the Kentucky General Assembly or, through a constitutional amendment, the voters to approve casino gambling at racetracks.
“Right now that is not going to pass in Kentucky,” said Sen. Dick Roeding,
R-Lakeside Park, who represents Boone County and portions of Kenton County. “The public sentiment just is not there. It hasn't been in the past and it isn't there now.”
“I wouldn't be surprised if we start to hear that again,” said Rep. Paul Marcotte,
R-Union, who represents Boone, Gallatin, Carroll, Trimble and Henry counties.
“But I've done constituent surveys in my district, and the people don't want it.”
Turfway Park owner Jerry Carroll announced Friday that he and his main partner, Nashville businessman John Lindahl, were selling the track for $37 million to a partnership of:
• Keeneland, the Lexington thoroughbred track.
• A subsidiary of GTECH, an operator of state lotteries, including the Kentucky Lottery, and a maker of gambling devices and provider of online lottery games.
• A subsidiary of Harrah's Entertainment, one of the world's largest casino companies.
The synergy of what the companies bring to Turfway makes it logical they would pursue video slot machines at some point, said House Majority Caucus Chairman Jim Callahan, D-Wilder.
But Mr. Callahan and other lawmakers said if a decision is mad, e it should be made by the people of Kentucky through a constitutional amendment.
“It's pretty hard to argue with (the General Assembly) putting this on the ballot and letting the people decide,” Mr. Callahan said. “And I wouldn't be shocked to see Harrah's and GTECH push or at least ask for such an opportunity.”
The earliest that the legislature could agree to send an amendment before voters is 2000, since constitutional changes must be approved during regular sessions.
Mr. Callahan said he isn't sure such an amendment would pass.
“A lot of people thought the lottery would fail, but it passed,” he said. “We won't ever know unless we ask.”
Mr. Carroll, worried about the competition from riverboat casinos in nearby southeastern Indiana, unsuccessfully lobbied the General Assembly in recent years to consider allowing video slots at race tracks.
And he wasn't alone.
Management from Churchill Downs, which now faces competition from a Caesars World riverboat not far from Louisville, was so concerned about the issue they traveled to the 1996 Democratic National Convention in Chicago to lobby state officials, including Gov. Paul Patton, to consider gambling at race tracks.
It was Keeneland's opposition to gambling at tracks that helped kill the lobbying efforts by Mr. Carroll and Churchill Downs.
During Friday's announcement of the sale, Keeneland President William Greely seemed more open to the possibility of gambling at race tracks.
“We believe it should be a vote of the people,” he said.
Mr. Greely also said the thoroughbred industry must be more innovative.
“For thoroughbred racing to continue to grow and prosper, it must make use of the significant marketing and technological innovations that have been successful in the broader gaming and entertainment market,” he said.
He was not, however, specific on what “innovations” should be explored. But Mr. Carroll thinks the new owners — expected to take over the track in April — will pursue gambling.
“Look at what they do and look at the situation with the riverboats here,” he said. “I think they'll probably go for it.”
Though gamblers have bet more than $6 billion at the riverboats in Lawrenceburg and Rising Sun in just two years, Turfway has recoved from an initial loss of business.
The Holiday Meet that ended in December was up 7.2 percent in dollars bet at the track and 15.4 percent in dollars bet at other tracks on Turfway races, the first time in two years the thoroughbred track has had a meet show an increase.
Mr. Marcotte said that now that Mr. Carroll is selling the track, voters might not be as concerned with its fortunes.
“I think a constitutional amendment might be considered by the legislature,” he said, “but if local people aren't involved in owning the track, I think it would have an even less chance of passing.”
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