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Thursday, January 31, 2002

Gambling bill nearer to gate


Tracks want slots; lawmakers delay support

By Patrick Crowley
The Cincinnati Enquirer

        FRANKFORT — A bill to legalize casino-style gambling at horse tracks will likely be filed within two weeks with Northern Kentucky lawmakers from both parties among the sponsors, the president of Turfway Park said Wednesday.

        Bob Elliston, the head of the Florence thoroughbred track who is lobbying for the bill, would not identify the lawmakers he expects to sign on to the legislation. It would allow electronic slot machines known as Video Lottery Terminals (VLTs) to be installed at the state's racetracks.

        And virtually none of the 13 lawmakers in the Northern Kentucky Legislative Caucus has publicly come out in favor of VLTs.

        “Ask me about supporting a bill when one is filed,” said Rep. Jon David Reinhardt, R-Claryville, in a response that typifies the comments of most Northern Kentucky lawmakers.

        “But right now I have no reason to change. I haven't supported it in the past,” Mr. Reinhardt said.

        Despite such comments, Mr. Elliston was optimistic that once the horse industry files its bill, lawmakers will come on board.

        “We as an industry are together like we never have been before,” he said over a lunch of fried chicken in the Capitol Annex Cafeteria.

        “We're working right now on the fine-tuning of a bill.”

        But no bill will be filed until after the filing deadline for this year's statehouse races. Lawmakers are reluctant to sponsor or support controversial bills until they make sure they don't have an opponent in the May primary or November general election.

        The filing deadline for Statehouse races was Monday. But a legislative and legal fight over the redrawing of boundaries has delayed the filing deadline until a redistricting plan can be worked out.

        “The timing of (the bill) will work with our legislative support,” Mr. Elliston said. “I would say we need to do something within the next couple of weeks, but we are pretty close to a final piece of legislation within the industry.” Twelve of 13 legislators in the Northern Kentucky caucus are running unopposed. An early commitment to a gambling bill by any one of them could bring out an anti-gambling opponent. The filing deadline for legislative seats was extended Tuesday when Circuit Court Judge William Graham issued a temporary injunction in Frankfort at 3:55 p.m.

        But even as the thoroughbred industry works to win approval for VLTs, other interests are beginning to compete for what could be millions of dollars in new revenue generated by gaming.

        Last week, powerful House Majority Floor Leader Greg Stumbo, D-Prestonsburg, one of the key gatekeepers for the flow of legislation to the House floor, said he is considering filing a bill that would call for VLTs at tracks as well as land-based casinos. The horse industry will fight the provision allowing casinos.

        “One of the problems we have, what put us in the situation we're in, is the competition from the land-based casinos,” Mr. Elliston said. But some lawmakers said giving only racetracks the ability to offer casino gaming could be a problem for the thoroughbred industry's efforts.

        “I just don't see it happening that way,” said Rep. Tom Kerr, D-Taylor Mill, one of the few legislators to come out opposed to any expansion of gambling.

        “I can't see the tracks backing something that would compete with them,” Mr. Kerr said, adding that the racing industry's support is key to any gambling bill winning approval.

        Rep. Charlie Walton, R-Florence, also said that cities such as Owensboro, where developers have pushed bringing casino or riverboat gambling to the area, would not want to be left out if gambling is approved.

        “Why would you pass a bill to give a select few a monopoly?” Mr. Walton said.

        Sen. Katie Stine, R-Fort Thomas, said she has heard that the hospitality industry would want a piece of the gambling pie if VLTs were approved.

        “Apparently the hotels are standing in line, too,” Mrs. Stine said.

        So are restaurants, Mr. Kerr said. “I know the restaurants are saying, "Please don't pass it and just put it at the tracks because the people will spend their money gambling that they would be spending at our establishments. If you are going to do it, give it to us,'” he said.

        “Once you open it up,” Mr. Walton said, “everybody wants it. Why wouldn't you?”

        Estimates done by economists and the Kentucky Lottery have found that gambling could generate $700 million or more, including $200 million for the state.

        Meanwhile, the staunchest opponent to emerge so far to expanding gaming — the Kentucky Council of Churches — continues to lobby against VLTs.

       



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