In Colorado, supporters of Amendment 68, which would allow a 2,500-slot casino at Arapahoe Park racetrack in Aurora with some proceeds going to education, recently launched a media campaign ahead of the November 4 election. Sponsored by Coloradans for Better Schools, the five TV ads promote the proposed constitutional amendment by positioning Arapahoe Park’s owners, Mile High USA, a subsidiary of Rhode Island-based Twin River Worldwide Holdings, against gambling interests that already own casinos in Black Hawk, Central City and Cripple Creek—the only locations where gambling is allowed under the Colorado constitution.
The opposition group, Don’t Turn Racetracks into Casinos, as well as the Denver school board, have responded so far with mailers.
One of the major issues the ads address is that “carpetbaggers” including Arapahoe Park’s owners and “out-of-state Nevada and Missouri gambling companies” are fighting A68 to “protect their monopoly.” So far, Mile High USA has contributed more than $2 million toward a ballot measure; Las Vegas-based Pinnacle Inc., owner of Ameristar Casinos, has contributed $2.8 million; another Las Vegas company, Affinity Gaming, operators of Golden Gates and Golden Gulch casinos in Black Hawk, has contributed more than $1 million dollars; and St. Louis-based Isle of Capri has given $2.2 million.
Michele Ames, spokesperson for Don’t Turn Racetracks into Casinos, said, “I think that our strongest arguments are just the facts: This is a ballot initiative written by a single Rhode Island company that wants to increase its bottom line. I think Coloradans will see that for what it is, and they will reject the initiative just like they did in 2003.” Eric Sondermann, an independent political analyst from Denver, added, “It’s basically just a big battle between corporate interests. This is not an election where passions are going to be high among ordinary voters. This is a corporate fight all the way.”
The 30-second ads also say “schools are underfunded” but that statement is debatable. Colorado educators believe that’s true, compared to what other states spend in terms of past per-pupil funding rates and actual costs. However, conservatives have said Colorado schools are well funded. Additionally, the ads state Colorado’s school funding ranks 40th in U.S., but the source of this fact is not mentioned.
Legislative analysts who have studied A68 estimated the Arapahoe casino could generate $114 million for schools, starting in 2016-2017, based on High USA’s commitment of 34 percent of the net income from slot machines to the Colorado K-12 education fund. But analysts admit it’s challenging to predict revenue from taxes on a non-existent business. Also, state ballot measure projections have been wrong in the past and so-called “sin taxes” have been an unreliable source of revenue for education. This is in contrast to the $104 million that all of Colorado’s 38 casinos paid in statewide taxes during the fiscal year that ended July 1, 2014. Mile High USA’s “huge investment,” according to the ads, would equal about 1.7 percent of the current $5.9 billion in basic school support provided by state and local taxes.
The ads also note the amendment “permits expanded gaming at no more than three horse race tracks that already have wagering.” Currently Arapahoe Park is the only track that meets the amendment’s requirements; but the amendment also would allow gambling in Mesa and Pueblo counties where no horseracing tracks exist. Racetracks in those counties would be required to operate for five years before they could open casinos.
The ads also emphasize schools will get additional revenues “without costing taxpayers one penny.” However, opponents argue A68 could
cannibalize casinos in Black Hawk, Central City and Cripple Creek, which would result in lower tax revenues for local governments, historic preservation and community colleges. Don’t Turn Racetracks into Casinos has suggested taxpayers might have to make up for those losses.
In 2003, a similar initiative was introduced to Colorado voters in 2003 and rejected by a 4-1 margin.
