Kansas: Governor cautious about changing gambling law

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October 1, 2008

Anonymous The Joplin Globe Wed Oct 01, 2008, 11:24 PM CDT

The Associated Press

TOPEKA, Kan. — Gov. Kathleen Sebelius said Wednesday the state should search for new operators for closed dog and horse tracks before giving up some of its potential slot machine revenues to the current owners.

Sebelius reacted cautiously to a proposal to reduce the state’s take — now 40 percent — in hopes of getting the owners of The Woodlands in Kansas City, Kan., and Camptown Greyhound Park near Pittsburg to reopen.

A 2007 law allowing slot machines at the two parks was designed to boost their business while providing revenues to the state. But the owners said turning over 40 percent of their slots revenue to the state would make the business unprofitable.

“What we don’t know is if that’s the opinion of just these two individuals who own the tracks, or if there are others out there,” Sebelius said at a brief news conference. “I’m told that there may well be others who say, ‘Give me a shot. I’ll make it work.’”

But Phil Ruffin Sr., whose company owns Camptown, said he doesn’t think anyone could run a profitable racing-and-slots operation under the current law.

Ruffin said even if the state takes away his operating license, his company still owns the Camptown property. He said anyone wanting to operate a dog track in the area would have to build a new one.

“We’re not going to turn the property over,” he said. “You couldn’t find money to build a new track if your life depended on it.”

The Woodlands, which has separate dog and horse tracks, closed in August because of ongoing financial losses. Camptown hasn’t had racing since 2000.

Ruffin and the Woodlands’ owners negotiated for months with the Kansas Lottery over slots but could not strike a deal. The Lottery would own the new gambling but have contracts with track owners to manage it.

Ruffin’s company also owns Wichita Greyhound Park, which closed last year after Sedgwick County voters rejected a proposal to allow casino gambling and slots at the track.

The Kansas Racing and Gaming Commission notified Ruffin and the Woodlands’ owners three weeks ago that they were violating their track licenses by not holding races. The commission said they had 30 days to fix the problem and scheduled hearings for Oct. 13 and 14.

Last year’s law not only gives the state 40 percent of the revenue from slots, but sets aside an additional 20 percent for local governments, county fair racing, animal breeders and programs that combat gambling addictions.

Track owners are guaranteed 25 percent.

Negotiations between the track owners and the Lottery determine how the remaining 15 percent of revenues are split between the two. Lottery officials say they were willing to give it all to the Woodlands.

Still, Woodlands part-owner Howard Grace has told the commission his park would have to retain an even larger share of slots revenue to survive. Ruffin has proposed cutting the state’s take to 30 percent.

But Doug Lawrence, executive director of the Kansas Greyhound Association, said tracks elsewhere remain in operation while paying even higher percentages of their revenues to their states. For example, he said, Florida and Pennsylvania, each receive around 55 percent.

“In those states, they believe the tax rates are too high, but at least they tried,” Lawrence said. “In Kansas, we haven’t even tried.”

Lawrence added: “Our position is to open the tracks under the current structure or sell them. We firmly believe there are people who would buy the tracks and run them at 40 percent.”

But Ruffin already has ruled out leasing or selling his track properties. And he said, if someone were interested in taking over, “We might have heard something — which we haven’t.”

Commission spokesman Mike Deines said it hasn’t been approached by any potential track operators.

“There have been a lot of rumors, and we’ve heard those rumors,” Deines said.

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Kansas: Governor cautious about changing gambling law

Joplin City Manager Mark Rohr wants the city to distribute weather radios to all Joplin homes that don’t have one. That’s 11,000 radios. Do you think that’s a good use of $300,440?

Joplin City Manager Mark Rohr wants the city to distribute weather radios to all Joplin homes that don’t have one. That’s 11,000 radios. Do you think that’s a good use of $300,440?

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