Editorial: Gambling bill ignores voters

SB 233, which proposes 5,000 video lottery terminals, is an end run around the state constitution and is bad for Colorado.

The Denver Post
April 13, 2011

Another session, another gaming bill.

Every time the Colorado General Assembly convenes, it seems someone tries to slip through yet another attempt to broaden gambling in Colorado.

The latest effort, embodied in Senate Bill 233, would essentially allow up to 5,000 "video lottery terminals" anywhere in the state — not just in the mountain communities that have gambling now. The goal is to raise money for higher education.

It's a good cause, but this is a bad idea for all kinds of reasons.

This measure, introduced last week and scheduled for a hearing today, seems to be moving fast.

Unfortunately, the bill is structured to be a constitutional dodge. It's an attempt to put into law, via the legislative process, something that really ought to go before voters, according the state constitution.

Perhaps the measure is set up this way to avoid Colorado voters, who have been very selective about gaming measures they've endorsed. In fact, something very similar to this measure was resoundingly defeated by voters in 2003.

Amendment 33 would have allowed 500 gambling terminals at five Front Range race tracks. The promise was that it would have generated $25 million each for tourism and open-space protection.

The operations described in SB 233 are billed as having the potential to generate $81 million for Colorado, according to supporters quoted in a Post story. However, we're skeptical about the net effect of the bill.

Spending on gaming is not unlimited, and it's inevitable this expansion would siphon revenue from current gaming operations, which fund a host of state causes.

And it would offer, at least initially, a monopoly to one company. Mile High Racing and Entertainment in Aurora would be the only business that could immediately become an operator of video lottery terminals, which are similar to slot machines.

The bill would require an operator to have held a 30-day race season last year, and have another 30-day session set for this year. That means only Mile High, which runs Arapahoe Park, would qualify, although it's conceivable another company could get in on the action later.

Arapahoe County Commissioners are unhappy about the measure, and oppose its passage. Chairman Rod Bockenfeld said commissioners believe it would subvert the will of county voters, who opposed Amendment 33.

If video lottery terminals were allowed at Arapahoe Park, Bockenfeld said it would be unfair to neighbors who never anticipated such a business. And it would cause local impacts for which there is no money set aside to offset.

We understand why some legislators might be amenable to this bill, which promises significant resources for higher education, a sector that has seen big cuts in state funding.

But we hope lawmakers eventually see it for what it is — gaming interests hoping to exploit the financial desperation of well-meaning legislators.
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