Speaking before the Kansas Senate, former House Speaker and Greater Kansas Racing Alliance lobbyist Mike O’Neal urged senators to support Senate Bill 427, which would lower the tax rate for racetracks from 40 percent to 22 percent, and permit slots at Wichita Greyhound Park, allowing it to reopen. O’Neal said, “The last time I checked, you need money. You need revenue desperately. The House is preparing to spend a lot of money on education. I suppose you’re fixing to do something.”
Wichita Greyhound Park was closed by its owner, Phil Ruffin, in 2007 after legislators rejected a measure to allow expanded gambling there. Under Senate Bill 427, Ruffin could pay a penalty the state would owe to casinos, an estimated $125 million in privilege fees and accrued interest. Then Ruffin would be repaid with future tax revenue collected at his facility. O’Neal said the proposed deal with Ruffin is similar to economic incentives offered to businesses that receive a tax break for bringing new jobs to a community.
State Senator Jeff Longbine disagreed with that comparison. He said Senate Bill 427 is projected to create 4,500 jobs, so the state would pay more than $27,000 to create each job.
Topeka attorney Kevin Fowler said the plan is an unconstitutional attempt to renegotiate commitments made to the managers at four state-owned casinos. “The bill dramatically changes the gaming environment and materially breaches the state’s contractual obligations by authorizing and encouraging closed racetracks to reopen and operate as full-time casinos that will emphasize slot machines and simulcast gaming in full-blown, head-to-head competition with existing state-owned and -operated casinos,” Fowler said.
