Gaming briefs for May 6, 2005

Friday, May 6, 2005 | 9:26 a.m.

Citizens' group files lawsuit against proposed Gorge casino

A citizens' group filed a lawsuit Thursday claiming the proposed tribal casino in Cascade Locks violates the Oregon Constitution by authorizing a casino off of reservation property.

The lawsuit comes a month after Gov. Ted Kulongoski signed an agreement with the Confederated Tribes of Warm Springs, authorizing a 500,000-square-foot casino in the small town 40 miles east of Portland.

Kulongoski has said the deal was necessary to prevent a casino from being constructed on more ecologically sensitive tribal lands near Hood River.

But the suit filed in Marion County accuses the governor of acting beyond his authority.

Earnings triple on acquisition, local business growth

First-quarter profit at slot route operator Herbst Gaming Inc. more than tripled from the same period last year with the addition of three Midwest casinos as well as stronger business in Nevada.

Las Vegas-based Herbst, which is privately held, reported profit of $16.1 million compared with profit of $5.5 million in the first quarter of last year.

Revenue minus promotional expenses rose 40 percent to $125.6 million.

Earnings before interest, taxes, depreciation and amortization -- a key profit indicator -- rose 78 percent to $31.8 million.

By that indicator, slot route earnings grew 39 percent to $19.9 million. Casino earnings in Nevada -- including results at the company's Terrible's hotel and casino in Las Vegas -- grew 14 percent to $7 million.

On Feb. 1 the company completed the acquisition of the St. Jo Frontier Casino in St. Joseph, Mo., the Mark Twain Casino in La Grange, Mo. and the Lakeside Casino Resort in Osceola, Iowa. Those properties generated $7 million in first-quarter earnings before interest, taxes, depreciation and amortization.

Panel backs tribal racino

A Maine legislative committee overwhelmingly endorsed a bill to allow an Indian-run harness racing track and slot machines in Washington County.

The Legal and Veterans Affairs Committee's incomplete 10-1 vote signals a willingness by some lawmakers to support a significant expansion of gambling in Maine.

Currently, there are only two commercial harness-racing tracks in Maine, in Scarborough and Bangor. Slot machines are allowed only at the Bangor Raceway under current law.

State Sen. Kevin Raye, R-Perry, said the Passamaquoddy Tribe's proposal brings "great hope" to the people of Washington County. Gov. John Baldacci opposes an expansion of gambling but hasn't said whether he would veto the bill, which faces votes in the full Legislature.

Opponents said that by voting to allow up to 1,500 slot machines in the Down East county elected officials "are listening to quick-buck artists and charlatans who claim that Maine can gamble its way to riches."

Breeders seek more money

A group of horsemen on Thursday called for Senate approval of a bill that would increase the amount of pari-mutuel horse racing proceeds that go to breeders and for purses.

An amendment approved by the House on a 97-3 vote would provide an extra $5 million for the Oklahoma breeding program and increase money going to purses by $250,000, said Ivan Holmes, horse owner from Oklahoma City.

The bill is headed for the Senate, where Holmes said an effort to kill it is being made by Remington Park and others involved in the horse racing industry.

Don Reamy, another Oklahoma City horseman, said the current arrangement in state law does not provide trainers and owners with enough money to stay in business.