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Proposal for Slots at Texas Racetracks Challenged by Casino Interests
by The Associated Press
Date Posted: February 15, 2007
Last Updated: February 15, 2007
A proposal in the Texas legislature to allow video slot machines at racetracks wouldn't boost the state's economy as much as full-fledged resort casinos, advocates for casino gambling said Wednesday.
Legislation by Rep. Ismael "Kino" Flores, a Palmview Democrat, would allow video slots at racetracks and American Indian reservations. Flores said his measure would keep gambling dollars in Texas, help the financially struggling Texas horse-racing industry and bring in $1.2 billion in new annual revenue.
On Wednesday, a day after the bill was filed, lobbyists and other representatives of the Texas Gaming Association made rounds at the Capitol to press their case for going much further in legalizing casino wagering.
"The state shouldn't fool with it at all if they don't do it right," said Jack Pratt of Dallas, a former hotel and casino developer who chairs the association. "Our bill does it all, and it's the only sound way to do it."
Getting a gambling bill through the Legislature this year likely will be difficult, given that the state has a $14.3 billion budget surplus. Even in tight budget years, similar proposals have failed when they've run up against social conservative roadblocks.
The gaming association, made up of prominent gambling industry figures, wants to create several "destination resort" casinos that it says will provide 118,000 new direct jobs and a multibillion-dollar economic boon for Texas. It contends its plan would provide $4 billion in state and local tax money.
The casino plan also would set aside money to help pay for qualified Texans' college tuition and would allow video slot machines at race tracks and American Indian reservations.
"We're inclusive, rather than wanting a monopoly on the market," Pratt said.
If slot machines are limited to horse tracks, it's likely to only attract local money, not out-of-state tourist and convention money, and thus displace money that might have been spent on other local businesses, Pratt said.
Pratt said his association applauds Flores for wanting to allow Texans to decide what forms of gambling should be allowed.
Texas voters would ultimately have to approve a constitutional amendment to permit the video slot machines, if the measure passes both chambers of the Legislature.
Under Flores' proposal, the state would receive 35 percent of the net terminal income for each video lottery terminal, as the video slots are called. The retailer or manager would retain 65 percent.
In the legislative session two years ago, the economic analyst firm the Perryman Group reported that video slot machines operating at Texas tracks would provide almost $1.5 billion in yearly state revenue and create 72,000 jobs.
Flores did not immediately return a call to The Associated Press on Wednesday, but an aide said his video slots proposal could change as the legislative session goes forward.
Flores issued a written statement that noted billions of dollars in gambling money now leave the state when Texans cross borders to gamble.
"When it comes to spending gaming dollars, it's clear that a vast majority of Texans would rather spend it inside state lines," Flores said, adding that his proposal would promote economic activity around racing and agribusiness.
The Texas Gaming Association agreed that Texans are leaving the state to gamble, and said the "footprint" of gambling is already within the state's boundaries in the form of the Texas lottery, online betting and other wagering.
Pratt, who sold his past casino interests but may become an investor in Texas if the state establishes a casino industry, said the response he's been getting at the state Capitol has been positive. He says he's putting forth a solid proposal.
"It's impossible to shoot any holes in it," he said. "Now, if you're religiously opposed to it, that's a whole other issue."
The Baptist General Convention of Texas opposes attempts to expand gambling in Texas and has been influential in past sessions. It contends that casinos cause societal problems in the communities where they are located.
The Baptist lobby has said this legislative session that it doesn't want to see casinos take away dollars from other established family oriented tourist attractions in Texas. |
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