In Colorado, supporters of proposed constitutional Amendment 68, which will appear on the November 4 ballot, recently released results of a new study indicating a casino at the Arapahoe Park racetrack near Aurora would have a statewide economic impact of 8 million. Amendment 68 would allow slots and table games at Arapahoe Park and possible future racetracks in Mesa and Pueblo counties.
In addition, the study showed the racinos would create more than 1,400 jobs locally plus another 900 indirect jobs. That would generate $129 million in labor income statewide and $114 million in tax revenue for K-12 education, said Thomas Zitt, senior vice president of strategic planning for the Innovation Group, which produced the report.
One issue the report did not address is the effect the proposed casino would have on about 40 existing gambling operations in Black Hawk, Central City and Cripple Creek. Statewide voters approved gambling in those communities 23 years ago. However, when asked about this issue, Zitt said business could drop by up to 15 percent a year at existing casinos. Zitt and John Taylor, chairman of Rhode Island-based Twin River Worldwide Holdings Inc., owners of Arapahoe Park, added they believe an Arapahoe County casino would attract weeknight players, while others spend weekends at the three mountain-town gaming destinations.
Zitt said, “The location of this facility strikes me. It’s on the other side of the metropolitan area. It’s not an interception location. You have established properties with hotels in the mountains. A lot of gamers like to stay in hotels when they go.”
Opponents of Amendment 68, however, cite a different report, by the nonpartisan Legislative Council, which estimated an Arapahoe Park casino could lead to a 30 percent revenue drop at the three towns’ casinos. Michele Ames, spokeswoman for No on 68, said that could cause some of the smaller gaming halls to close and significantly impact larger properties’ operations. “Once you start boarding up casinos, they get into a downward spiral. Once you start making it a less and less attractive place to go, there won’t be any left. Even if you accept these already stated numbers about revenue, it just makes our point that Amendment 68 will be a net loss for Colorado. We have to lose the 9,000 jobs in our mountain casinos to gain 1,400 of those here. And we have to trade $2 billion in GDP for $14.4 million.”
Opponents also have challenged the $114 million tax-revenue estimate. They note after a 2008 ballot initiative raised betting limits and expanded hours at the mountain casinos, they generated less than 20 percent of the additional $60 million a year that was forecasted. But Zitt noted a new casino located in a populated urban area will have a much greater impact than changes in a more remote area.
