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Friday, March 01, 2002

Exemptions proposed for slots


Machine operations would be beyond some laws

By Mark R. Chellgren
he Associated Press

        FRANKFORT — A proposal to let Kentucky racetracks operate slot machines would exempt those operations from many state and local laws.

        The slot operations would be excluded from planning and zoning rules and exempt from many local taxes. The state agency that would oversee the additional gambling would not have to comply with many open records and meetings requirements.

        The proposal also has several provisions that turn over unusual control of operations to the racetracks and gambling facilities. For example, if state or local law-enforcement officers began investigating records kept by the state gambling-control board, the board would have to notify the racetrack being investigated.

        Also, the seven part-time appointees who would make up the gambling commission would have the powers of peace officers, meaning they could make arrests.

        Virtually all operational decisions, from hours of operation to the number of slot machines allowed, would also be left to the eight licensed racetracks, which would be the only companies eligible to get slot machine licenses. The bill does specify that slot machines would have to pay out at least 80 percent and no more than 97 percent.

        “It's like open, carte blanche for the racetracks,” said the Rev. Nancy Jo Kemper, director of the Kentucky Council of Churches and one of the founders of Kentuckians Against Gambling Expansion. “It opens the door for any and every contingency.”

        Numerous calls to racetrack officials and the bill's legislative sponsors for comment were not returned Thursday.

        The Rev. Ms. Kemper said the bill also would require a huge investment by the state to start gambling oversight with no money to do it unless and until the slots start operating and turning over money. A gambling control board would have to hire people; approve licenses, employees and machines; and set up computer oversight.

        Racetrack officials earlier this week estimated they would hire 10,000 new employees to run the expanded gambling.

        “Where in this tight budget are we going to find the money?” the Rev. Ms. Kemper asked.

        One of the primary selling points of proponents of expanded gambling is to shore up the state's faltering revenue receipts.

        The bill specifies that the state's take of the first $50 million in income from each of the eight prospective gambling houses would be 28 percent, with the tracks keeping 62 percent and horse interests the remaining 10 percent. The state's take would increase as proceeds rose.

       



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