Minn. panel OKs slot plan

Patrick Howe

Wednesday, March 26, 2003 | 9:27 a.m.

ST. PAUL, Minn. -- A plan to put state-owned slot machines in Canterbury Park made it out of the starting gate Monday, though its odds to passage are still long.

The "racino" plan, which passed a House government panel 9-8 but without formal endorsement, now heads to a tax committee. It's the first of several gambling bills the House will face in coming weeks, most of them marketed as solutions to the state's budget troubles.

Opponents said the plan for the Shakopee racetrack would hurt tribal casinos, put the state in an immoral business and do little to fix the budget mess.

The plan envisions a $90 million facility built with private financing, but run by the state lottery. Canterbury President Randy Sampson said it could mean as much as $75 million a year in new money for the state.

Sampson and other supporters described the bill as an effort to support agriculture and the state's horse industry. It would steer at least 7 percent of money from the slot machines to beef up horse racing purses. Sixty-five percent of revenues would go to the state, split between the lottery and the general treasury.

"Knock, knock. I think this is a tremendous opportunity for our state," said Bill Mars, Shakopee mayor.

The effort would add yet another form of gambling to the track, which was expanded in 1999 to include a "card club," with blackjack and poker.

Though it would take time to build the facility, backers said slot machines could be moved into Canterbury temporarily before the end of the year.

John McCarthy, executive director of the Minnesota Indian Gaming Association, said his organization opposes any gambling expansion in Minnesota. He said it won't really create any new jobs.

"Jobs will be shifted from one existing casino in rural areas where they really need it to the southwest metro area," he said. Casino gambling now is allowed only on Indian reservations in the state.

He said he worries that bars, resorts and other businesses around the state would eventually ask for slot machines, too.

Gov. Tim Pawlenty has been cool to the idea. He recently described it and other plans to expand gambling symptoms of "money madness."

There are 17 other racinos in other states, including Iowa, which backers said was a model for the plan.

The plan also includes a 250-room hotel and 3,000-seat equestrian center.