New Mexico’s commercial racetrack and casino venues have crafted a proposal for an expansion that would including internet gaming, 24-hour casino operations and unlimited video slot machines and table games.
Officials with Sunland Park Racetrack and Casino in southern New Mexico were scheduled to testify October 1 before the Legislative Finance Committee about overhauling the industry in the state. The tracks and casinos say they’ve been hit hard by the pandemic over the last several months, as the state’s public health order has kept spectators out of the stands and the casinos have been prohibited from reopening, even at reduced capacities. The revenue from the casinos subsidizes horse racing.
But any changes to gambling regulations run the risk of nullifying the state’s agreements with Native American tribes that operate casinos. Those compacts, which are not set to expire until 2037, call for the tribes to pay the state a portion of their revenue every quarter.
Tribal and commercial casinos have seen revenues shrink in recent years, even before pandemic. A 2019 report by the legislative committee showed a 10 percent decline in annual revenues shared by tribal casinos and the state from 2012 to 2018, a figure close to $62.8 million.
Legislative analysts noted at the time that the online gambling industry, which is not authorized in the state, may be drawing a share of the market away from New Mexico casinos.
Under the track/casino proposal, many of the compromises made with gambling opponents that allowed them to open in the 1990s would be eliminated, the Albuquerque Journal reported. That includes allowing alcohol to be served on the casino floor, allowing ATMs and allowing casinos to establish lines of credit for individual customers.
“We call it opening up New Mexico gaming,” Sunland Park lobbyist Scott Scanland said. “This is a mature industry now and the state has more than 20 years of experience in overseeing the gaming industry.”
Opponents are concerned that the proposal would remove safeguards that were put in place to prevent gambling addiction. Also, Senator Clemente Sanchez insisted the tribes be part of any conversations going forward.
