Ark. House rejects legislation allowing video poker machines

Kelly Wiese

Friday, April 4, 2003 | 9:34 a.m.

LITTLE ROCK, Ark. -- A bill to expand electronic wagering in Arkansas failed Thursday, one day after clearing a House committee.

The House rejected legislation by Rep. Steven Jones, D-Marion, to authorize wagering on video poker and other so-called games of skill at Oaklawn Park thoroughbred track in Hot Springs and Southland Greyhound Park in West Memphis.

Both tracks already offer electronic Instant Racing, allowing wagers on previously run races.

Jones said the revenue that his bill would generate -- estimated at $50 million annually -- would help with the state's budget shortfall by providing money for college scholarships and Medicaid programs.

"We're all scrambling trying to find solutions to some of the budget problems in our state," Jones said. "This is a way we can cut those tax burdens."

But critics said the measure would open the state to further gambling and worried about the social costs.

"How do you answer the statement that this is the most addictive form of gambling in America ... that it's the crack cocaine of the gambling industry?" asked Rep. Don House, D-Walnut Ridge.

Jones said people have to be responsible for their actions.

"Eating is addictive. My wife shops too much," he said. "We all have to make personal choices and decide what our limits are."

Jones and others said Arkansans who want to gamble already do so at casinos in Mississippi or Louisiana, and that if the money is going to be lost anyway, it should benefit Arkansas programs.

"This allows the gaming industry in Arkansas to make necessary changes in operations to keep up with the changing times," Jones said.

Jones offered to amend the bill in the Senate to provide that voters in the affected areas would have to sign off on the idea before the expansion of electronic wagering would be allowed, but the bill still failed by a 37-57 vote.

A similar bill has been at the top of the Senate calendar for nearly a month without any action. Its sponsor, Sen. Terry Smith, D-Hot Springs, said Wednesday that he would wait to see the fate of the House bill before moving forward with his bill.

The House Rules Committee endorsed the bill Wednesday despite questions about its constitutionality and warnings that the social costs would outweigh any benefits of expanding gambling.

"If there are any ills, we're already paying for it and we're not getting any tax dollars," said Rep. Bob Mathis, D-Hot Springs, noting Arkansans are spending money at casinos in bordering states.

The House bill would impose a 20-percent tax on the revenue generated that supporters say would produce about $20 million annually. Jones' bill would allocate $10 million of the proceeds to the state Medicaid program, where it would draw $30 million in federal matching funds. The other $10 million would go primarily for college scholarships and also for local governments where the games are played.

"Scholarship programs are essential to the state's future and are important if we're going to continue to grow our economy," said Glen Fenter, president of Mid-South Community College in West Memphis. "Take a long, hard look at the benefits."

Bill Wheeler of West Memphis, a counselor with an organization called Family First, said any benefits of the bill would be outweighed by an increase in social problems stemming from gambling.

Both bills would require the racetracks to set aside 15 percent of net wagering revenues from the new electronic games for live-race purses and breeding funds.

The games would be regulated by the Arkansas Racing Commission under both bills.

Cecil Alexander, the commission chairman, said the bill was necessary if state racetracks are to keep pace with others around the country and remain viable businesses. He said the tracks were attempting to regain business and revenues lost to casinos in surrounding states.

The bill defines electronic games of skill as games played through any electronic device or machine that affords an opportunity for the exercise of skill or judgment, allowing an outcome not completely controlled by chance.

Critics have noted that video poker and other games allowed under the proposal have been defined in Minnesota and other states as games of chance. The state constitution bans lotteries and other games of chance.