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Legislature 2003: Gambling Group Rolls Dice Again May 14, 2003
OLYMPIA -- Unable to get traction on its first proposal to expand gambling, a coalition of bars, bowling alleys and card rooms rolled out a new plan yesterday that ups the ante by giving the cash-strapped state a bigger cut of profits.
The Entertainment Industry Coalition wants lawmakers to permit their members to run at least 18,900 electronic slot machines -- the number Indian tribes are allowed to operate -- while giving the Washington Lottery oversight of the system. Oregon and other states operate a similar model.
It's unclear whether the new proposal, which hasn't been assigned a bill number yet, would do better than other expanded-gambling bills that died in committee earlier this year.
"I can see how they keep trying to package this in a way that's acceptable to the Legislature," said Rep. Steve Conway, D-Tacoma, who chairs the committee that heard previous gambling proposals.
While proponents may win enough votes in the House, Conway noted that the Senate has been less receptive. "I find it hard to believe that there are votes for EIC expansion," he said. But Jim Springer, a former state House member and now chairman of the Entertainment Industry Coalition, said: "I think our chances are good."
Any expansion of gambling would require a 60 percent yes vote in both chambers, but there is sharp debate over what constitutes expansion. Springer, who owns a bowling alley in Kelso, said he has at least 60 percent of votes in the House, and at least 50 percent in the Senate.
Yesterday's news conference was held as negotiators were still trying to reach a deal on closing a $2.6 billion budget gap in the first week of the special session. With its new proposal, the EIC estimates $266 million in new revenues over the next two years, and $778 million in 2005-07.
One major change from House Bill 1948, the first proposal, is that the state would get 35.5 percent of the revenue, rather than the 20 percent proposed. Local governments would get 4.5 percent.
The plan sets aside, over two years, 1 percent of the proceeds, estimated at $6.6 million, for problem gambling. It also reserves 0.5 percent, or $3 million, for 13 rural counties, and 2 percent, or $13 million, to cover what cities lost after Initiative 695 reduced vehicle tab fees. "We were given the message," Springer said, explaining why the state would get a greater share.
The proposal uses a formula that distributes electronic slot machines among bingo operators, card rooms and other businesses. One business could operate a maximum of 125 machines. Tribes have a limit of about 675 machines, but those can only be run on tribal lands.
"It's a last-gasp, last-minute, desperate ploy," King County Prosecutor Norm Maleng, co-chairman of Citizens Against Gambling Expansion, said yesterday.
"Here we have a proposal that says the state will go from being a regulator of gambling to a full partner," he said. "It's just a bad idea." Rep. Conway worried about regulation under the Lottery Commission. The Washington State Gambling Commission, an independent state agency, currently regulates tribal casinos, card rooms and racetracks.
Gambling has been a controversial issue in Olympia this session, marked by divisions, accusations and odd though brief alliances, as when the Washington Education Association supported and then backed away from the EIC proposal.
Charles Hasse, president of the 78,000-member teachers union, said yesterday that his group surveyed about 200 members and backed away because many "had an aversion to earmarking money from expanded gambling to teacher cost-of-living increases."
The EIC filed a complaint against the anti-gambling group earlier in the session, alleging that it violated public-disclosure rules by not meeting campaign-filing deadlines.
The Public Disclosure Commission dismissed the complaint last month, but records show that former Gov. Booth Gardner and Maleng, co-chairmen of the group, had early links to the Washington Indian Gaming Association.
They were recruited by the Seattle public-relations firm Cocker Fennessy to do volunteer work supporting gaming association efforts to block gambling expansion before Citizens Against Gambling Expansion was formed, according to a disclosure commission report. Cocker Fennessy represents both the tribes and the citizens group.
Citizens Against Gambling Expansion also assumed responsibility for some of the tribal group's early expenses after the citizens group formed in January, records show.
"It's hypocritical and contradictory," Springer said, noting that Citizens Against Gambling Expansion had criticized non-tribal gambling expansion while ignoring major expansion of tribal casinos. In an interview last week, Maleng said he initiated his own efforts and wanted to oppose gambling expansion before being contacted by Rick Cocker of Cocker Fennessy.
Maleng said the anti-gambling group does not accept money from the tribes and doesn't plan to. He suggested that the Entertainment Industry Coalition was going after his group because it was grasping at straws. Gambling proponents yesterday argued again that it's an issue of fairness.
What It Would Do?
Would give taverns, bowling alleys, card rooms and charity bingo operators the same number of electronic slot machines that Indian tribes now have. Tribes are allowed about 18,900 machines, but currently operate 9,000. The machines are electronic versions of the lottery scratch ticket; players play against one another for a finite number of winners rather than play against "the machine."
Who Supports It?
Entertainment Industry Coalition, Washington Labor Council; Associated
Washington Business; Big Brothers & Big Sisters of King County; Washington
Federation of Clubs and others.
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