Gambling disputes are subject of ballot questions, governor’s races

Friday, Oct. 30, 1998 | 11:51 a.m.

Gambling issues could also affect three close races for governor. In Alabama and South Carolina, and to a lesser degree Maryland, incumbent governors opposed to gambling are struggling to overcome support for state lotteries or video poker machines.

Gambling, once the sole province of a handful of Nevada casinos, has spread across the American landscape, from Atlantic City to the fleet of riverboats along the Mississippi to the hundreds of gambling facilities run by Indian tribes.

But as the list of gambling-related questions on this year's ballots signifies, the industry has yet to leave controversy behind.

The big votes on gambling are on referenda in California, Missouri and Arizona. Voters in New Jersey will decide whether to give legislators the authority to expand betting on horse races, and Minnesota residents will determine whether to keep spending millions in lottery revenues on environmental projects.

Polls show California's Proposition 5 is likely to win despite the odd spectacle of two natural enemies, Las Vegas casino interests and anti-gambling forces -- both opposing it. The measure would legalize Indian tribal casinos -- legitimizing ones already in place and potentially paving the way for more.

Passage of the proposition would take the issue out of the hands of Gov. Pete Wilson, who has resisted signing a compact with Indian tribes. The dispute has become the costliest referendum in California history, with ad spending by both sides topping $71 million a week before Election Day.

In Missouri, the vote on Amendment 9 will decide whether 10 so-called "boats in moats" -- casinos that sit in artificial basins just off the Mississippi and Missouri rivers -- can continue offering slot machines in addition to table games like blackjack. The Missouri Supreme Court ruled last November that voters did not envision boats in moats when they approved riverboat gambling in 1994.

Both sides of the debate say Tuesday's vote is about more than boats and moats.

"It's really going to be the last chance to close the door before gambling opens up throughout the state," said state Rep. Todd Akin, R-St. Louis, who filed the 1996 lawsuit challenging the casino operations.

Arizona voters will have a rare opportunity to eliminate one of the nation's 37 state lotteries. Proposition 304 asks voters to decide whether to keep the 17-year-old lottery going until at least July 1, 2003, or to end it next year.

Polls show strong support for keeping the lottery. Conservationist and outdoors groups have reminded voters of the millions in revenue from the lottery for parks and recreation. Opponents include Gov. Jane Hull and the Mormon Church, which distributed a letter reminding its 250,000 Arizona members of the church's longstanding opposition to gambling.

The measure on the ballot in New Jersey would allow state legislators to rewrite the rules governing betting on horse racing. It could lead to off-track betting and phone wagering, which would help the state's racing industry compete against Delaware, which now offers slot machines at tracks.

Two Southern governors, Republicans David Beasley in South Carolina and Fob James in Alabama, have seen firsthand the perils of opposing gambling.

In Alabama, Democrat Don Siegelman has proposed creating a state lottery to raise money for education. James assails the lottery a "get-rich-quick sham" that would open the doors to casinos in the state.

In South Carolina, Beasley raised the ire of gambling interests by calling for an end to the $2 billion-a-year video poker industry and opposing creation of a state lottery.

In one television ad run by a private group, a man in a Georgia T-shirt thanked South Carolinians for supporting his state's schools by crossing the border to buy Georgia lottery tickets. "Thank goodness your Gov. David Beasley won't let y'all have a lottery," he said.

In Maryland, the top two thoroughbred race tracks, which want to install slot machines, ran a similar commercial. In the ad, actors portraying Delaware residents said "Thanks, Maryland" while graphics noted that Maryland residents pump $100 million a year into Delaware slot machines.

Though the ad mentioned no names, it was seen as a dig at the re-election campaign of Gov. Parris Glendening, a Democrat who opposes slot machines at Maryland race tracks. Republican challenger Ellen Sauerbrey says she would consider the move.