The Kansas House Appropriations Committee recently reviewed HB 2537, which would require a ballot initiative in Sedgwick County to determine if slot machines should be installed at the Wichita Greyhound Park in Sedgwick County. Billionaire and Wichita native Phil Ruffin, who owns the racetrack, is behind the legislation, which requires at least 5,000 qualified signatures on a petition. A similar ballot initiative failed in 2007.
The bill also would allow northeast Kansas racetracks to keep 64.5 percent of slot revenue compared to the current 25 percent. Lobbyists for track operators said shifting a greater percentage of revenue from the state to track operators was legal. However, opponents said such revisions would be a breach of contract that could cost the state more than $100 million in refunds of fees to the three casinos operating in the state. The bottom line was House Bill 2537 either would destroy hundreds of existing jobs or create 4,000 new jobs.
Scott Beeler, representing the Ruffin Companies, said allowing slots would let the dog racetrack to reopen, as well as the Woodlands horse racetrack in Wyandotte County which closed in 2008. “Do you see any racetracks open in Kansas? It is fluff. It is silliness to suggest that somebody is going to invest millions of dollars in that kind of business today that cannot make money,” Beeler said. He added “scare tactics” were keeping the legislation from moving forward. Regarding the Woodlands, he said, under the measure, no tax abatements or municipal bonds would be used. Instead, the bill would attract “a private investor to Wyandotte County to reopen a facility that was a shining star.”
Economist Art Hall, representing the Greater Kansas Racing Alliance, said 4,400 new jobs would be created by bringing back horse and dog racing to Kansas.
Opposing the legislation, Christine Dorchak, president of the anti-greyhound racing group Grey2K USA, said, “It makes little sense to prop up an industry that is in decline everywhere. It’s a losing proposition. It’s a bad bet for Kansas.”
State Rep. Mark Kahrs stated slot machines at the greyhound racetrack would cannibalize revenue from the state-owned Kansas Star Casino in nearby Mulvane. Kahrs said, “Wouldn’t we just be taking money from that casino and moving it to Mr. Ruffin’s pockets?”
Protect the Partnership, a coalition of local business and civic leaders, led by former Kansas City Mayor Carol Marinovich, strongly opposes the tax rate changes at the Woodlands which could breach casino operators’ current contracts with the state. Marinovich said about $4 million in annual revenue generated by the Hollywood Casino contributes to community organizations. In addition, Daniel Silva, executive director of the Kansas City Chamber of Commerce, said the Hollywood Casino at Kansas Speedway in Kansas City and others have a competitive bid process not included in the lower tax rate proposals.
The House Committee on Commerce, Labor and Economic Development is reviewing the legislation to see if it should move forward.
