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8 GLR 200 (2004)
Colorado Limited Gaming Update

handle is hein.journals/gmglwr8 and id is 200 raw text is: GAMING LAW REVIEW Volume 8, Number 3, 2004 ©Mary Ann Liebert, Inc. Colorado Limited Gaming Update ROBERT A. DILL IN NOVEMBER OF 2003, COLORADO VOTERS were asked to consider approving an amendment to the Colorado State Constitution that would have permitted the Colorado Lottery Commis- sion to supervise the operation of video lottery terminals (VLTs) at five race tracks along the front range of Colorado's Rocky Mountain Range. It was proposed that the Colorado Lot- tery Commission would pay for the operation of the machines although the operating costs would be deducted from revenues. It was an- ticipated that the race tracks would receive ap- proximately 39% of the net revenues or 6% of the gross revenues, whichever is less, and the balance of the revenue collected would be split among the Colorado Tourism Fund, Great Out- doors Colorado, and Local Parks and Recre- ation. Wembley PLC, a British gaming conglomer- ate, is a corporation that owns four of the five dog and horse race tracks in Colorado through its operating subsidiary Wembley, USA. Wem- bley sought to expand its revenue base since state records indicated that dog and horse rac- ing revenues in Colorado have fallen by ap- proximately 15% since 1996. Wembley's Rhode Island race track has VLTs and Colorado tracks do not have them. The arguments in support of Amendment 33 were as follows: Robert A. Dill is a senior partner of the law firm of Dill, Dill, Carr, Stonbraker & Hutchings, P.C., located in Den- ver, Colorado. The firm specializes in alcoholic beverage licensing and gaming in Colorado. Robert Dill has ap- proximately 30 years of experience representing a diverse clientele of local and nationally recognized bars, restau- rants, hotels, and casinos in the State of Colorado. Mr. Dill specializes in providing business as well as regulatory as- sistance in connection with his clients' individual needs. 1. It would provide a 15 year revenue source for tourism promotion. 2. It would help aid the Colorado economy since tourists spend monies at local busi- nesses that would improve employment and boost sales tax receipts. 3. VLT proceeds were expected to help fund school construction, wildlife protection, and state parks. 4. Finally, it was argued that VLTs would be limited to locations where gambling was al- ready taking place; in other words, the race tracks. Opponents of the ballot amendment argued that VLT gambling in the five front range com- munities where the race tracks were located would reduce the business at the existing mountain casinos in Black Hawk, Cripple Creek, and Central City, and would therefore reduce the revenues to programs that are funded by current gaming taxes. It was also ar- gued that less than one-third of the proceeds of the revenues from the VLTs would go to tourism programs and that the owners of the race tracks would benefit by receiving more than twice the amount of revenues that would go to tourism promotion. Local communities were prevented from exercising control over these race track venues and instead the issue was submitted to the statewide voters in No- vember of 2003. Currently, there are only three small towns in the state of Colorado-Cripple Creek, Black Hawk, and Central City-where limited stakes gambling is permitted as a result of a constitu- tional amendment approved by the voters in November of 1990. Video lottery terminals were pitched as a different kind of gambling in that they would be owned and operated by 200

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