A Kansas House committee voted against a proposal that would have allowed racetracks to operate slot machines. Lawmakers said the legislation would have broken state contracts with casino owners.
State Rep. Bradley Ralph stated the bill would result in costly litigation for the state and would take business from state-owned casinos. “We’re losing money at the end of the day from both of those perspectives. At this point, this is a losing proposition all the way around for the state,” Ralph said.
The measure’s supporters said it would create more local jobs and help the horse and dog racing industries in the state by lowering the tax rate for slots from 40 percent of net income to 22 percent. Wichita native Phil Ruffin, a billionaire Las Vegas casino owner, said when he bought the Woodlands racetrack in 2015 he would not begin construction on the facility until the legislature lowered the tax rate on slots.
State Rep. Larry Campbell said, “I cringe when I drive by Woodlands and see it closed.”
But he added, “I just don’t know what our return is and the threat of potential loss, there is some threat there.”
The Unified Government of Wyandotte County and Kansas City, Kansas opposed the bill. Hollywood Casino at Kansas Speedway officials also voiced opposition, noting the measure may violate contracts between them and other casinos, leading to litigation.
The proposal would have required 5,000 signatures and a referendum vote before slot machines could be installed.
Committee Chairman state Rep. Troy Waymaster said horse and greyhound breeders in his district want to race in Kansas but are not allowed to. He said he may create a subcommittee next year to address the issue and meanwhile urged racetracks and casinos to come up with a compromise.
