Minnesota 'Racino' bill is tabled by Senate committee
Gambling plan's backers sought move, hoping to revive it later in session
By Jason Hoppin - Twin Cities Pioneer Press

March 11, 2010 - In a surprise move, a Senate committee on Wednesday night tabled a bill to bolster state coffers by adding slot machines at the state's two race tracks, following a standing-room-only hearing lasting nearly two hours.

The move came at the request of backers of two so-called racinos. Faced with a likely defeat, they said after the hearing that they wanted to avoid the stigma of a "no" vote and plan to revive the issue later in the legislative session.

"This keeps it all alive," said former Republican Sen. Dick Day, who resigned his Owatonna Senate seat last year to lobby for racinos.

The bill — a version which often comes up at the Capitol, only to meet a quick demise — would generate $125 million annually in state revenues, supporters say, by adding slots at Shakopee's Canterbury Park and Running Aces, located along Interstate 35 near Forest Lake. The funds could be used to decrease the state's $1 billion deficit and help pay for a new stadium for the Minnesota Vikings.

Before the vote was tabled, several witnesses accused the State and Local Governments Operations and Oversight Committee, particularly Democrats, of putting special interests over the will of the public. A recent KSTP-TV/SurveyUSA poll showed public support for racinos at 80 percent, but the Legislature has steadfastly opposed it.

American Indian tribes that run the state's 18 casinos said the competition would cut into tribal revenues, which are used to help tribes with improved health care, housing and more.
"As owners of a successful gaming operation, we know firsthand the difficulties of operating a business that is dependent on disposable income," said Victoria Winfrey, president of the Prairie Island Tribal Community, which owns Treasure Island Resort & Casino near Red Wing.

Other anti-gambling interests testified against the bill, saying gambling addiction leads to everything from bankruptcy to domestic violence. But Day said gambling is already prevalent, not just in tribal casinos but also in lotteries and other games of chance.

"Probably about 90 percent of the people do something during the year. And if they don't, the local church is probably raffling off a car," Day said. "Nobody's going to wake up tomorrow and become addicted to gambling because they've got one more place to go."

The Minnesota Quarter Horse Racing Association's Randy Weidner said the state's horse racing industry is losing ground to other states with expanded gambling, particularly Iowa.

The two industries are tied together. Non-Indian gambling at Running Aces and Canterbury Park — now limited to horse betting and card games — is overseen by the Minnesota Racing Commission, and purses at those parks are driven by gambling revenues.

Weidner said the future of horse racing in Minnesota is at stake.

"Failure to pass this racino bill spells the end of live horse racing in Minnesota," Weidner said.

Cory Merrifield, founder of a group called Save the Vikes, also testified on behalf of the bill. He pointed to the loss of the Minneapolis Lakers and Minnesota North Stars, saying the state has already lost two professional teams, only to spends millions to bring pro basketball and hockey back to the state.

"You have an opportunity to preserve a cultural icon," Merrifield said, adding that the Vikings help fuel the state's economy.

He also suggested the Legislature was opposed to the racino because of millions that tribal gambling interests have spent on lobbying and political donations, particularly on Democratic candidates and causes. Merrifield pointed out that in the recent KSTP-TV/SurveyUSA poll, 84 percent of Democrats said they supported the idea.

"I'm curious to see today if (Democrats') constituents' wishes will be reflected in their Democratic leadership," Merrifield said.

"Follow the money, and you'll know why this bill doesn't get anywhere," another witness testified.

The suggestion that lawmakers were being influenced by tribal donations didn't sit well with Sen. Don Betzold, DFL-Fridley.

"The people who have suggested we're being influenced by money — it simply isn't true," Betzold said.

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