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Regulation News, March 2007

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CEM Staff
Publish Date
March 1, 2007
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CEM Staff

Kansas
The Kansas legislature has their work ahead of them, and it won’t be an easy session. This year, lawmakers must make a decision whether or not to renew the state’s 20-year old lottery—and if they decide to let it go, the state will lose nearly $67 million of state funding they receive yearly from the lottery. Most of the money the state receives from the lottery—almost $42 million of it—goes to finance Kansas’ economic development projects, which helps bring additional income and people to the state. Because this hot topic is up for renewal and lawmakers will almost surely pass the bill, certain gambling supporters are pushing lawmakers to bundle the lottery bill with new legislation to allow casino gambling throughout the state. They hope that by bundling the bills together, lawmakers will have to pass the casino gambling bill, because the state desperately needs the money from the lottery. Others worry that the bundled bills would be rejected because of the casino gambling addition, and then so would the lottery, causing the state to lose much needed money. Expanding gaming throughout the state has been an issue since the early ‘90s, but it has never received approval. At press time, the legislature had yet to make a decision.

Massachusetts
Recognizing Bay Staters’ longstanding patronage of Connecticut casinos and Rhode Island slot parlors, a majority of Massachusetts residents favor the authorization of casino gambling in the commonwealth, according to a poll and behavioral survey released by the Center for Policy Analysis (CFPA) at the University of Massachusetts Dartmouth. Approximately 57 percent of those surveyed support the authorization of a resort casino, while 30 percent are opposed, and 14 percent are undecided. The poll and behavioral survey of 1.041 Massachusetts residents was conducted Sept. 29 to Nov. 2, 2006, and is the most extensive survey yet undertaken to determine Bay Staters’ attitudes toward casino gambling and its impacts. “Support for casino gambling in Massachusetts runs deep through virtually every region, group, and socioeconomic strata,” said Dr. Clyde W. Barrow, the CFPA’s director. “Massachusetts residents strongly believe it is time the commonwealth authorize a casino to compete with Connecticut for the gambling, entertainment, and tourism dollars associated with Foxwoods and Mohegan Sun.” Residents also rated the potential fiscal and economic benefits of a casino above their concern over any potential social costs, with 76 percent agreeing that a casino will generate new tax revenues for the state. Like a jury, Barrow added, “Massachusetts residents have weighed the evidence, sifted through the pros and cons, and rendered a clear verdict: They believe it is time their elected officials authorize a casino in the commonwealth.” So far, Gov. Deval Patrick said he is considering slot machines and casinos as an alternative way to lessen the $1 billion budget gap and give local communities more money. Patrick plans to seek the opinions of local officials on their feelings about allowing gambling throughout the state before he makes a decision by the beginning of April. For more details, visit www.umassd.edu/cfpa.

West Virginia
A gambling bill in Charleston may alter table games regulation in the state to keep up with regulatory trends in big gaming states like Nevada and New Jersey. Officials at West Virginia Lottery Commission (WVLC) consulted with regulatory standards giant, Gaming Laboratories International (GLI), in an effort to maintain regulations pertaining to casino employee training, security and surveillance, and chip and card monitoring. The Intelligencer & Wheeling News-Register reported that WVLC in-house attorney John Melton said he is unsure how changes to current legislation will affect gaming in West Virginia, but added that the proposed bill will allow for local referendums on table games located at the state’s four racetracks: Ohio, Hancock, Kanawha, and Jefferson counties. If voters reject the referendum, track officials will have to wait five years to re-submit the proposed measure. If voters vote yes, it means the Lottery Commission is responsible for researching and disseminating information about the tax benefits of gaming per county. Local racetracks have an initial tax point of 12 percent, though Lottery Commissioner, John Musgrave, suggested that number could appropriately reach 24 percent and still be considered fair.