Nevada County Picayune and Gurdon Times Newspaper Archive

Gaming Proposals A Problem

By JOHN MILLER

Arkansans will be making decisions on four gambling amendments when they go to the polls Nov. 5.

Each of the proposed amendments is different, though all contain provisions for charitable bingo and raffles for non-profit organizations, such as churches.

Theoretically, all four amendments could be approved by the voters, which would probably result in a massive law suit to be decided by the Arkansas Supreme Court.

State Sen. Mike Ross explained the four amendments, saying, personally, he doesn't like any of them. His opposition stems from the fact all place gambling in the state's constitution and the state is not in charge of any of these proposed operations.

Amendment 4 is being pushed by Oaklawn Park in Hot Springs. Under its proposition, there would be up to three casinos built in the Spa City, should the local voters pass the issue.

One of these casinos would be inside Oaklawn Park, and there is nothing in the provision which would keep the other two from locating there as well.

According to Ross, if the voters of Arkansas pass Amendment 4, then the voters of Hot Springs (as the proposal is written) would also have to pass it. This, he said, could require a special election there, with the city's governing body left to decide who runs the other two casinos and where they would be located.

Interestingly, the state voters could pass Amendment 4, only to see the people of Hot Springs vote the casinos down. This would put the issue in limbo.

This amendment, Ross said, would create a state lottery and legalize charitable bingo and raffles, along with allowing the three casinos.

The proceeds from the lottery would be split 50-50 between law enforcement and public education, while the casinos would pay 14-18 percent tax on their net revenues. Of this, 85 percent would go to the state, with 10 percent being turned over to Hot Springs and the remaining 5 percent given to Garland County.

Amendment 5 poses its own problem as it would specifically state in the constitution the company that would run the gaming operation, Ross said.

This amendment would authorize lottery ticket games, charitable bingo and raffle, along with video terminal games, but not create casinos.

Ross said the lottery revenue from this recommendation would be used for prescription drugs for the elderly, law enforcement, public education and the prevention of domestic violence.

Revenue from the video poker games would be used for law enforcement, public and higher education.

"This one smells the worst," Ross said, "because is specifically names the company to be hired to provide the terminals and gaming machinery. I'm opposed to it for this reason."

Amendment 7 touts Project Excel for Arkansas students. Under it, there would be a maximum of eight casinos in the state, along with a state lottery, bingo and raffles.

Ross said 10 percent of the net tax revenue would go to an educational trust fund for college scholarships and pre-school programs.

Four percent of the gaming tax would go to the county where the casinos are located, and if the casino is inside a city limits, then the city and county would split the 4 percent. Another 1 percent would be sent to the state treasury.

The lottery money would see 35 percent placed in the educational trust fund, with 50 percent reportedly going back to the public in the form of winnings. The remaining 15 percent would go to cover administrative costs -- a figure Ross said seems to be excessive.

Under Amendment 8 there would be 11 casinos in Arkansas, along with the lottery, raffle and bingo.

The state, under this plan, would get 8 percent of the gross tax revenue, with up to 2 percent going to local governments where the casinos are located. Between 8 and 40 percent would be used to fund public schools, with 35 percent going to law enforcement. Another 10 percent would fund law enforcement in the areas where the casinos are located.

Another 10 percent would be divided between the Arkansas Department of Parks and Tourism and the Arkansas Game and Fish Commission. The remaining 5 percent would be used on programs for substance abuse and gambling addiction.

This proposal would also eliminate the sales tax on food items, claiming its lottery revenues would more than make up the difference.

"This is not the way to go," Ross said. "It's not good financial policy to tax or untax in the constitution. We can't perceive the future needs of the people of Arkansas."

He said any gambling proposal should be presented by the Arkansas General Assembly, instead of individual groups, as these four are.

"People have spent hundreds of thousands of dollars to get petitions signed and these issues on the ballot with something personal to gain," he said.

"If the people of Arkansas want gambling, it doesn't need to be in the state constitution and benefit only a few people.

"Those doing this (working on the gambling amendments) are not doing it for the people of Arkansas, but for themselves.'

Ross said Amendment 8's removal of sales tax on food presents a problem because no one knows how much revenue will be generated by the lottery. This could affect how much money the schools would then get.

Oaklawn Park could possibly have a monopoly on casino gambling if Amendment 4 passes, Ross said, because there is no provision to prevent the thoroughbred horse racing track from having all three casinos.

Amendment 5, he said, spells out who will be making the lion's share of the profits by naming the company to supply the equipment.

His opposition to Amendment 8 is it basically sounds too good to be true.

"It promises scholarships (to all high school graduates with "B" averages), but doesn't know what its revenues will be.

"If we're going to do any form of gambling (in Arkansas) it should be done by the state. Then we can be sure it's done in a form to promote good government and not line individual's pockets."