Dick Day chief lobbyist for RacinoNow, warned the lawmakers not to be scared off by "boogeymen," presumably the fears raised by tribes that this market is already cluttered with gambling options. - photo credit - MinnPost/Jay Weiner
 

Minnesota Racino plan sputters as gambling issues pile up

Minneapolis, NM - May 7, 2011 - There are many horses on Minnesota's hyperactive gambling merry-go-round: racinos, video bingo and pull tabs in bars, a casino in downtown Minneapolis.

So, it was standing-room-only Thursday in Room 200 of the State Office Building at the first hearing in either legislative chamber this session on another attempt to add slot machines at the state's two horse racing tracks, Canterbury Park and Running Aces.

The event was in such demand that, in a rare occurrence, Capitol pages handed out first-come, first-served tickets to supporters and opponents. Each group sat on opposite sides of the large hearing room, sort of like the bride's family here and the groom's family there. Except, this hearing before the House Committee on Jobs and Economic Development Finance was no royal wedding.

Multiple battles
This was another battle over whether horse owners and breeders and the companies that own the tracks could add an attractive component to their businesses to, in their view, continue to survive and to revive a dying equine industry in the state. Slots at tracks would increase racing purses, boost horse owners' revenues and bring more and better racing to Minnesota, racino advocates argue. Other states have done it.

This, too, was another stand by Minnesota's American Indian tribes to protect their biggest economic development tool: 18 casinos of various sizes, with only one — Mystic Lake in Shakopee owned by the Mdewakanton Sioux — within the metro area.

Indeed, gambling revenues are the tribes' tax base for their own sovereign budgets, and their casinos are restricted to the land they own, land — often the worst of the state's land — ceded to them by greedy white guys years ago.

Even before the nearly two hours of testimony and questions-and-answers began, Rep. Bob Gunther, R-Fairmont, offered a spoiler alert. This, he said, was to be an "informational hearing" only. There would be no vote. His ostensible reason: He wanted to give both sides a full chance to offer their points of view.

But in Capitol-ese, "informational hearing" can be code for "Sorry folks, I don't have the votes, but I might in a week or so."

With only Republicans signed on as sponsors to his bill, and with Republican Party Chairman Tony Sutton weighing in again against gambling, this was going to be a tough race for Gunther to win.

Positions clear
The arguments for both sides have been longstanding, but the state's budget crisis has given a boost to all gambling efforts, of which racino is but one. Indeed, a charitable gaming bill that would allow electronic pull tabs and bingo wagering games in the state's bars and restaurants continued to progress in House and Senate committees this week.

Meanwhile, somewhere on the Capitol campus, lobbyists and lawyers for developer Bob Lux were putting together a bill to allow a big, honking downtown Minneapolis casino. That bill and hearings are expected any day now.

In this $5 billion deficit environment, no one wants to leave money on the table — pardoning the expression — and gaming expansion controlled by the state and not the tribes could, possibly, produce some cash for all sorts of statewide projects.

In the matter of House File 1480, the catcher of potential racino revenue would be an economic development program called "Minnesota Future." As much as $125 million annually would go to programs to grow jobs around the state, create technology businesses and offer various small-business grants, proponents say.

It's an attractive notion: link gambling proceeds to job creation.

Racino proponents say that subsidizing the horse industry with slots at Canterbury and Running Aces will, indeed, create more horse industry jobs and preserve the fun of horse racing.

It will also create competition for the Indian casinos. Racino advocates — such as Rep. Mark Buesgens, R-Jordan, and former Republican Sen. Dick Day, now the chief lobbyist for RacinoNow — say it's time for the state to approve rival gambling sites.

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