The Joplin Globe, Joplin, MO

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August 31, 2008

Changing law on slots at tracks iffy

The Associated Press

TOPEKA, Kan. — Time was when the Woodlands race track did a decent business. Then along came the Missouri riverboat casinos and tribal casinos in northeastern Kansas and things weren’t so good.

Then last year, legislators enacted the expanded gambling law allowing slot machines at pari-mutuel tracks and creating four state-owned casinos, including one in Wyandotte County. Things worsened for the track.

Within a couple of years, the horse and dog track faces the certainty of having a nearby casino with hotel, bars, restaurants and other accouterments for attracting people and their money.

On Aug. 23, the Woodlands ran its final dog races and went dark. Co-owner Howard Grace says all options are on the table to reopen with slots, if it can agree on a contract with the Kansas Lottery, which owns the gambling.

The problem is that the law at best gives the track 40 percent of the revenue, which track officials say isn’t enough to make it worthwhile. That would require changing the law.

The Woodlands isn’t the first track to close. The Wichita Greyhound Park shut it doors after Sedgwick County voters rejected slots at the track. The long-closed Camptown Greyhound Park in Frontenac has stopped trying to reopen.

The situation with the Woodlands isn’t unique.

Will Cummings, a consultant who studies casino and racetrack markets throughout the country, told the Kansas Racing and Gaming Commission recently the growing trend is that tracks lose business to emerging casinos.

“They’re in a tough spot,” Cummings said. “It’s doable but it’s not a pleasant prospect.”

Those hoping lawmakers will ride to the rescue might want to think about coming up with a Plan B.

“I think gaming needs to be off the legislative table for awhile,” said Senate Majority Leader Derek Schmidt, who supported the bill.

“Gaming can consume a lot of time and passion and those are resources that can better spent on other issues like the budget, health, education and transportation,” said the Independence Republican.

Doug Lawrence, Kansas Greyhound Association executive director who helped write the gambling bill, said the Woodlands needs to reopen if it expects any help from legislators.

“I have to believe that if you are going to ask the Legislature to make an adjustment, they are going to have to at least try to make it work,” Lawrence said.

The closing didn’t sit well with Rep. Tom Burroughs, a Kansas City Democrat who supported the gambling bill.

“They said ‘give us slots, give us slots’. Well, we gave them slots and now they want to close,” Burroughs said.

Lawrence said a lot depends on whether the track owners, horse and dog breeders and casino supporters can unite, as they did last year.

“It’s going to be hard to change unless everybody has something they need in a piece of legislation. That’s the politics of the meat grinder. You have to reflect the interest of the folks involved,” Lawrence said.

One mitigating factor is that by January, the four casino contracts will have been awarded and many legislators will be thinking up ways to spend the millions in expected state revenue from the casinos.

“It may not require a perfect storm like it did the last time because the Legislature is counting on the revenues,” Lawrence said. “If you can show it has potential revenue for the state, it may change some minds.”

One concern is that reopening the issue could give opponents a chance to rework it to kill the gambling law, sinking casinos, tracks and all those state spending plans.

“There would be some who are willing to revisit it to open it up and kill it,” Burroughs said.

Supporters for changing the law say even if that happened, Gov. Kathleen Sebelius would veto the bill. But even if she does, if enough legislators want the gambling repealed, her veto will be overridden as it was on another emotional issue — the right to carry concealed guns.

Burroughs said the Wyandotte casino will bring far more money to the state than any track.

“Legislators should be cautious about giving a higher percentage to the tracks because it could put the casino investments at risk,” he said.

How much gambling support will exist in the Legislature in January depends on the outcome of November’s general election.

Sen. Chris Steineger said he’s willing to change the law if there’s enough votes to keep casinos alive. The Kansas City Democrat said he believes there will more “moderate minded” people elected.

“We put a tax burden on a business that was too high and caused job losses,” Steineger said. “The Legislature should always look at ways to help businesses succeed.”

But there are those who feel a government governs best when it governs least.

“The state of play is likely to remain unchanged and the various market players will just have to sort it out for themselves,” Schmidt said. “The Legislature doesn’t need to be in there figuring out the winners and losers.”

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