Kansas racetrack advocates betting on gambling reform bill – Topeka Capital Journal

A coalition led by managment at the four state-owned casinos in Kansas challenged Thursday a House bill modifying state tax and voting law to make operation of parimutuel racetracks with slot machines and simulcast gaming a more attractive investment for billionaire Phil Ruffin and other business moguls.

The House Appropriations Committees hearing on House Bill 2173 invited testimony from opponents who addressed their legal, moral, ethical and regulatory objections.

The legislation was endorsed by horse and dog industry enthusiasts and individuals convinced breathing life into the Woodlands in Kansas City, Kan., Wichita Greyhound Park, or Camptown Greyhound Park in Frontenac would instigate job growth and deliver much-needed revenue to the cash-strapped state government.

Under the bill, the state tax rate on revenue from slot-machine enhanced racetracks would be reduced from 40 percent to 22 percent. In addition, the measure would allow citizens of Wichita and Sedgwick County to participate in a referendum to determine current sentiment for opening a greyhound track despite failure of a similar ballot question in 2007.

Kevin Fowler, a Topeka attorney representing operators of four casinos authorized by the state, said enactment of the House bill promised to embroil the state in protracted litigation over constitutional, statutory and contractual issues and to expose the state to hundred of millions of dollars in financial liability.

The bill seeks to dramatically change existing Kansas law by authorizing closed racetracks to reopen and operate as full-time casinos that will emphasize slot machines and simulcast gaming while providing limited live racing programs, Fowler said.

A significant unresolved issue in the debate is whether amendments to the Kansas Expanded Lottery Act to accommodate racetrack casino investors could trigger a provision in the law requiring repayment of $61 million in fees paid the state, plus interest of $50 million, to companies operating casinos in Dodge City, Mulvane and Kansas City, Kan., and the casino in Pittsburg scheduled to open March 31.

Kimberly Svaty, who represents the Greater Kansas Racing Alliance organization supportive of the bill, said the most prominent critics of the bill were gambling investors wary of competition.

As legislators, the only deal you have before you is what is good for the people of the state of Kansas, Svaty said. You must weigh whether a protectionist policy for state-owned casinos is unfairly holding back one of the oldest and most established industries in the state.

If we are a state that champions private industry and private investment and free competition, she said, we should allow an investor to reinvigorate a key part of our states entertainment and let the people of this state choose with their dollars.

There is a provision in the House bill that would allow a racetrack gaming manager perhaps Ruffin, the former Wichita resident, billionaire and Donald Trump confidante to assume payment of $110 million to meet the states obligation to the four casino operations. Its unclear, however, whether those casino managers would file suit seeking damages related to undermining of their businesses.

There is precedent for amendment of the controversial gaming law narrowly passed by the 2007 Legislature and signed by Democratic Gov. Kathleen Sebelius.

In 2014, Gov. Sam Brownback signed a bill that lowered the threshold from a minimum investment of $225 million to $50 million to make it attractive enough to build the Kansas Crossing Casino in southeast Kansas.

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Kansas racetrack advocates betting on gambling reform bill - Topeka Capital Journal