Opponents to proposed changes to a bill augmenting expanded gaming will have their say Tuesday when they testify in front of the Senate Federal and State Affairs Committee.
A current proposal would change the minimum investment and privilege fee for a potential destination casino in the Southeast Gaming Zone [Crawford and Cherokee counties].
In addition, the bill also allows for a lower percentage of revenues to the state from slot machines at horse and dog tracks in Kansas.
Track owners have said that the current 40 percent allotment is not feasible for operation. The new bill would lower that percentage to 22 percent — in line with the percentage for destination casinos.
Phil Ruffin Sr., owner of Camptown Greyhound Park in Frontenac, said that would allow him to reopen the track approximately six months after the measure became official.
Two weeks ago, over 40 pages of testimony was submitted to the committee in favor of the changes.
“You want to listen to both sides of the issue,” said State Rep. Bob Grant, D-Cherokee. “The folks from down here did a great job when they testified.”
Penn National Gaming, the organization that has partnered with the Kansas Motor Speedway for a destination casino in Wyandotte County, has offered opposing testimony because they feel changing the percentage for horse and dog tracks would be unfair to their potential casino operation. The Woodlands horse and dog track would be located a short distance from their proposed casino.
“Changing the marketplace now, on the eve of construction, will be reason enough for us to pause and reconsider the proposed obligations to the state and county before those obligations become firm,” said Thomas Auriemma, president of Penn Hollywood Kansas, the firm with the contract for the casino in Wyandotte County, in his prepared testimony to be offered Tuesday.
But, local lawmakers say that with the state’s current financial situation, bringing in competition would not be a bad thing.
“Everyone's testimony will be listened to, that is for sure, but an opportunity to raise revenue to the state is here and I don't see how those opposed will be that successful,” said State Rep. Julie Menghini, D-Pittsburg.
State Sen. Bob Marshall, R-Fort Scott, who raced quarter horses for 15 years, said that testimony from Penn National may not carry the weight they are expecting it to.
“It is going to bring in competition to casinos no matter where it is,” Marshall said. “I don't think their testimony has a lot of weight. I think it is just greed and it causes competition for them.”
The bottom line is that the state is facing an over $400 million budget shortfall for its 2011 budget and a $39 million gap in the 2010 budget.
Marshall said that means the state may be in a position to look for whatever types of additional revenue they can find.
“This is going to increase revenue for the state,” Marshall said. “The horse track people are really pushing the employment factor and economic impact that those tracks will bring if they are opened up.”
Matthew Clark can be reached at matthew.clark@morningsun.net or at 620-231-2600, Ext. 140
