Gaming briefs for Jan. 12, 2004

Monday, Jan. 12, 2004 | 9:02 a.m.

Lottery could net more than expected

NASHVILLE, Tenn. -- The Tennessee lottery could make at least $70 million more than what is needed to fund college scholarships this year, and Gov. Phil Bredesen wants to budget most of the extra for prekindergarten programs.

Chief lottery sponsor Sen. Steve Cohen estimates the lottery will have $70 million to $100 million left over after paying for college scholarships this year. He and Bredesen agreed this week to support giving 80 percent of that to prekindergarten programs and 20 percent to after-school programs.

"That makes sense as a target," Bredesen said Friday, adding that he will include the proposal in the budget he presents to lawmakers Feb. 2.

Cohen did caution against spending all of the leftover funds, saying the amount available for scholarships in later years could change as more students qualify and lottery sales level off.

University president backs racino plan

EAST LANSING, Mich. -- Michigan State University is in a particularly good position to benefit from legislation allowing slot machines at the state's horse tracks, university President M. Peter McPherson says.

Slot machines could generate between $197 million and $400 million statewide if each of the seven tracks installs the maximum 2,000 terminals, according to the nonpartisan House Fiscal Agency. The money would be split among the tracks, the state general and school aid funds, state agriculture needs and the city of Detroit.

"The legislation, as is proposed, provides significant revenue for agriculture research," McPherson told The State News, the Michigan State student newspaper. "That's been my driving reason behind supporting this."

Racetrack slots would be legalized as part of a four-bill package approved by the House in May, but still awaiting a hearing from the Senate Commerce and Labor Committee. The panel's chairman, Sen. Jason Allen, R-Traverse City, hasn't scheduled a hearing on the legislation.

Opponents downplayed the benefits of so-called "racinos" to agriculture.

"This battle is obviously going to continue to go on," Tom Shields, a spokesman for Michigan Citizens for Fair and Responsible Gaming, said in early December. "So the agriculture community doesn't really benefit here. They're not going to sell more hay and they're not going have more horses race."