Tuesday, March 19, 2002

Callahan revises gambling proposal


Lottery would regulate slots

By Mark R. Chellgren
The Associated Press

        FRANKFORT — Regulation of slot machine casinos at horse tracks would be put under the auspices of the Kentucky Lottery Corp. in a revised proposal put forth Monday.

        Rep. Jim Callahan, D-Wilder, said using the lottery and its existing structure adds credibility to the plan and could also mean getting slot machines up and running three to six months faster than if an entirely new regulatory agency had to be created.

        But the bill approved by the House Licensing and Occupations Committee on Monday has no mention of lottery involvement. Mr. Callahan said a final version might not be made public until just before he asks the House to vote, and he does not know when that might happen.

        The lack of details, plus the fact that committee members were presented the latest 114-page version of the legislation only after the committee meeting began Monday afternoon, prompted some grumbling.

        “I just think we have been hustled,” said Rep. Ron Crimm, R-Louisville. “I think it's irresponsible for us to be doing this like this.”

        Other members rushed to defend Mr. Callahan, who they said could be trusted to accurately explain what is in the bill.

        “We may not understand all the details of what was presented here today. But everyone knows what this issue is all about,” said Rep. Jon Draud, R-Crestview Hills.

        The latest version of the bill removes parts that were objectionable to some legislators, Mr. Callahan said. While the gaming commission would be exempt from many rules regarding open meetings and records, Mr. Callahan said the sunshine laws will apply to the new oversight board.

        Mr. Callahan said patrons will also not be allowed to use credit and debit cards directly to finance their gambling at slot machines.

        The contents of the legislation was not the only thing being revised on Monday.

        Supporters now estimate slot casinos will mean $70 million for state in the coming year. Initial estimates when the bill was introduced two weeks ago were for a $40 million payback to the state.

        Callahan said the state's take in the 2004 fiscal year would be $140 million to $150 million. The first estimates from gambling supporters was a $142 million state take in 2004.

        Rep. Joe Barrows, D-Versailles, said by 2005, the state would be taking in $350 million. Though he also said the direct take from slot machines would be $310 million, with the remainder coming from related receipts.

        There is uncertainty also about when the proposal might get moving. The committee vote of 9-5 in favor of passage was expected. Callahan said he will not seek a vote in the full House until he is assured of 51 votes for passage in the House and 20 in the Senate.

        The political struggle swirling around the proposal for expanded gambling got another voice this week as well. While the race tracks have been conducting a widespread radio, television and print campaign advocating support for the bill, opponents weighed in this week. The Family Foundation began running a television spot that features former Rep. Stan Cave of Lexington, which accuses “the gambling industry” of “making all kinds of promises.”

       



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