Residents divided over plan for video terminals

Steven K. Paulson

Tuesday, Oct. 7, 2003 | 9:28 a.m.

BLACK HAWK, Colo. -- Amid banks of clanging slot machines packed onto a casino floor, Geri Wetzel plucks a $15 winning ticket from a slot machine.

Although Wetzel enjoys traveling 60 miles from her house in Elizabeth to this mountain town, she opposes an amendment that could put terminals similar to the EZ Pay slot machine at a racetrack closer to home.

"This would probably bankrupt some of these casinos," she said.

Voters will decide Nov. 4 whether to approve Amendment 33, which would allow 500 electronic video terminals at each of five existing dog and horse racetracks and in the limited-stakes gambling towns of Central City, Black Hawk and Cripple Creek. It would generate about $25 million for tourism, parks and open space.

The terminals would offer a game of chance similar to lottery scratch ticket games sold in retail stores. Winnings would be printed on paper tickets redeemable for cash.

The tracks include a horse track in Aurora, and dog tracks in Commerce City, Colorado Springs and Pueblo owned by Wembley USA and a dog track in Loveland owned by Cloverleaf Kennel Club.

The high-stakes proposal has set track owners against the casino industry.

Supporters have launched a high-profile ad campaign that emphasizes the benefits to the tourism industry, spending $1.7 million of the $2.2 million raised as of Sept. 29.

They insist there is a need to put money back into tourism because visitors dropped by 30 percent after voters abolished a tourism tax in 1993. The industry also suffered because of the 2002 wildfires and this year's drought.

"We're losing in the tourism market," said Sen. Jack Taylor, R-Steamboat Springs, who supports the amendment.

Wembley referred all questions to campaign spokeswoman Lynea Hansen, who said, "This campaign is about tourism and funding tourism."

Opponents, including casino owners, say the amendment threatens their business because they believe many visitors would be lured to racetracks instead of casinos.

The opposing campaign, Don't Turn Racetracks Into Casinos, spent $655,000 of $2 million raised as of Sept. 29.

Opponents also have sought a criminal investigation to determine if Wembley's London-based parent, Wembley PLC, violated laws in recent campaign finance report filings. Wembley officials have denied the accusations.

The statewide advertising battle between the two sides is expected to surpass the record $6.6 million spent on a growth ballot proposal three years ago.

The gambling industry has proved to be a moneymaker for governments as well as casinos.

The industry last year gave $90 million to state and local governments, including $25 million to historical preservation, $11 million to Gilpin and Teller counties, home to Central City and Black Hawk; $9 million to the three gambling towns and $182,000 to the Colorado Travel and Tourism Promotion Fund, according to the Colorado Division of Gaming.

An additional $6 million went to offset the impact of gaming, $1 million to the state Department of Transportation and $38 million to the state general fund.

"The casinos brought life back into these towns. The number of gamblers and the money they spend won't increase, it's just going to shift. Gaming is vital to these communities," said John Bohannon, vice president of Colorado Central Station in Black Hawk.

At the Isle of Capri in Black Hawk, Joe Justes of Sedalia is worried the racetrack measure would make it too easy for people on fixed incomes to squander their savings.

"I don't want gambling anywhere else. What we have is enough," he said.