Casino bill appears to be doomed in Kentucky

Lexington (Ky.) Herald Leader, Wire report

FRANKFORT - The House sponsor of legislation to bring casino gambling to Kentucky said yesterday the bill is unlikely to pass during this session of the General Assembly.

Speaker Pro Tem Larry Clark, a Democrat, said he met with horse-racing industry officials yesterday afternoon and they could not agree on a plan.

"There'll be no gaming legislation, as far as I'm concerned, passed this session," Clark told reporters in his Capitol Annex office.

In a telephone interview, a top official with Louisville's Churchill Downs agreed that talks had broken down.

But Clark left the door open: He said he would let track officials "sleep on it," and would not withdraw the proposal, which had been scheduled for a committee vote tomorrow.

"If the industry don't agree to it, I won't push the bill. I will make that decision Wednesday. They may come back" today, Clark said.

Clark has introduced legislation that would put before voters a proposed constitutional amendment to allow casino gambling. His plan calls for nine casinos throughout the state, including five at or operated by racetracks.

Casino gambling would be a windfall for the state that could bring in more than $437 million each year, Clark has said.

But the deal fell apart over key details.

Particularly, the industry would not agree to a provision that would allow local communities to have the final say on whether they wanted a casino.

"I went around the table and asked all the tracks their No. 1 concern. They all said the local option," Clark said.

He said track officials were worried that Turfway Park in Florence in particular would not get local approval.

Clark said he agreed to work with the tracks on that issue if Churchill Downs agreed to place its casino in downtown Louisville, comparatively far from the track itself.

Churchill Downs racetrack president Steve Sexton said last night that the talks fell apart over several issues, including the local option.

Churchill wanted protection for its casino franchise built into the constitutional amendment that would go before voters in a referendum.

Sexton said Churchill asked Clark to include in the amendment a guarantee that no casino would be within 25 miles of another, and that there would be only nine casinos total, with five under the control of racetracks.

"Those are obviously imperative to protect an investment anybody would make," Sexton said.

He said that, if Clark had agreed to those terms, Churchill was ready to build its casino downtown, despite the company's financial preference for its own track site on Central Avenue.

Sexton said that the next move is up to Clark, indicating that any reopening of negotiations is unlikely.

"I don't know if they're being greedy, but they walked away from $1.5 billion because they couldn't agree amongst themselves," Clark said.

Bob Elliston, the Turfway Park president who has been the racing industry's spokes-man, declined to comment as he left Clark's office.

The legislation was scheduled for a hearing before a House panel tomorrow. Whether the legislation goes before the committee would depend on industry officials changing their mind, Clark said.

House budget chairman Harry Moberly Jr., D-Richmond, indicated the issue will come up again, as it has for more than a decade.

"Probably in 2006, a closer look will be made of this, especially if tax modernization is not made before then," Moberly said. "There are a lot of dollars going out of Kentucky that could be used for Kentucky education and other human services."

Legislators greeted the news of the casino bill's likely demise without disappointment.

"I'm not surprised at all it's dead," said Senate President David Williams, R-Burkesville.

"I'm happy it's dead. I've always opposed expanded gambling," said Rep. Lonnie Napier, R-Lancaster. "I've not heard much support here for it, so I don't think we will hear from it this session."

Rep. Kathy Stein, D-Lexington, said the bill never had a shot. "It got a slow start. Additionally, we have all these other issues to deal with. It has too many enemies."