Move to allow video gambling in Colo. racetracks splits state

Steven K. Paulson

Wednesday, Aug. 27, 2003 | 9:13 a.m.

COMMERCE CITY, Colo. -- George Henderson Jr. has lived in a single-story home just across the street from a dog track for 50 years in a middle-class neighborhood of this industrial-commercial Denver suburb.

The 78-year-old retiree fears a push to permit video lottery games at dog and horse race tracks will disrupt his life by putting more gamblers on streets and creating problems with traffic and noise.

"I don't think we need gambling all over the place. We have enough now," he said, glancing at the green-domed race track with a parking lot that holds 10,000 cars.

Voters will decide Nov. 4 whether to allow the video games at tracks, a high-stakes proposal that pits track owners against the limited-stakes gambling industry in three mountain towns.

Wembley Colorado, owner of four of the five tracks, has poured $10 million into promoting the initiative, saying it would funnel $25 million into tourism, parks and open space.

"Our facilities are underutilized. We have buildings with 150,000 to 200,000 square feet, and average attendance is 1,000 people," Wembley spokesman Ty Howard said.

Casino owners see it as a threat to business, figuring many residents would visit tracks along the Front Range instead of traveling to their towns to gamble.

"This group, Wembley, has hijacked the tourism debate and they're using that as a means for what they really want, which is to turn their failing race tracks into casinos," said John Dill, who chairs an opposing campaign.

"Wembley isn't spending millions funding this initiative because those British businessmen who live 7,000 miles away suddenly decided to selflessly help boost tourism in Colorado."

Under Amendment 33, the Colorado Lottery Commission would be allowed to install 500 video lottery terminals at each track and in the gambling towns of Black Hawk, Central City and Cripple Creek. It would be limited only to currently licensed tracks.

The terminals resemble slot machines, offering a game of chance similar to lottery scratch ticket games sold in retail stores. Winnings are printed on a paper ticket redeemable for cash.

The terminals would generate about $128 million after prizes are paid, with 39 percent for administrative costs, proponents said. The rest would be used for tourism promotion, parks and open spaces.

In addition to the London-based Wembley, backers include tourism and hospitality industry leaders.

Lawmakers have been divided by the issue. Some believe it will create jobs to help the state's struggling economy while others believe it is just an effort to expand gambling.

Dill, whose campaign has raised about $1.5 million, suspects the proposal would help Wembley and the other track owner, Cloverleaf Kennel Club near Loveland, turn the tracks into small casinos.

John Manning, manager of the publicly owned Cloverleaf Kennel Club near Loveland, said limited-stakes gambling has crippled the racing industry in Colorado. He said tracks need video terminals to survive.

"Our racing industry has been in a sad state. It's torn our industry apart," he said.

Income has dropped about 15 percent over the past five years, Manning said. Since 1997, the tracks have taken in $1.4 billion from bettors and paid $37 million to state coffers. Last year, they took in $219 million, down from $252 million in 1997.

Several years ago, Wembley sold its race track in England and invested $70 million in race tracks in Commerce City, Aurora, Colorado Springs and Pueblo.

The company has installed 2,250 video lottery terminals at its dog track at Lincoln Park in Rhode Island. The company reported $23 million in profits last year, but did not break it down by track or lottery terminals.

Cliff Abeyta hopes voters approve video terminals at tracks so he can avoid traveling to Black Hawk for gambling. "I gamble here anyway. That would be great," he said as he headed for the Commerce City dog track.