Michigan Senate approves slots bill

Tim Martin

Friday, April 30, 2004 | 9:05 a.m.

LANSING, Mich. -- Michigan's seven horse tracks would be allowed to have video lottery terminals under a bill passed Thursday by the state Senate.

The bill, approved 20-18 after three hours of debate and amendments, is far more restrictive and less lucrative for horse tracks and agricultural interests than a version of the legislation that passed the state House 11 months ago. That leaves major differences to be resolved between the two chambers.

Lawmakers who supported the bill said the chance to boost state revenue in a budget crisis made the bill attractive. Under the Senate version, the state would get about 70 percent of the revenue raised from the additional horse track gambling, most of it going to the state's general fund.

No estimates are available yet on how much the Senate bill would raise.

"This is not one of the days I will look back on and say was one of my better days," said Senate Minority Leader Robert Emerson, D-Flint, who helped craft the Senate substitute. "It's a lousy way to raise revenue. But it's the only one I may have a chance to vote on in the near future."

Gov. Jennifer Granholm said Thursday she would veto the bill if it comes to her before a budget for next fiscal year is adopted. She added, however, that the Senate version of the bill is more reasonable to her than the House version. The state must deal with a $1.3 billion shortfall in the budget that starts Oct. 1.

The Senate version of the bill would not allow off-track, Internet or telephone betting connected with horse tracks and would require stricter regulatory oversight, similar to that required of Detroit's three casinos.

It also would require a vote of county residents to approve the slots at horse tracks within their borders, and could limit the new games to the state's seven existing tracks.

The proposal would expand gambling in Michigan, already one of the top gaming states nationally. Along with its horse tracks, Michigan has 20 casinos and a growing state lottery.

"The signs at the border should say, 'Welcome to Michigan, the Las Vegas of the Midwest.' Unfortunately, that is what we are becoming," said Sen. Wayne Kuipers, a Holland Republican who voted against the bill.