Casino bills get first hearing

The Associated Press

      ST. PAUL - A new state-tribal casino in the Twin Cities is estimated to raise $164 million a year for the state. A casino at the Canterbury Park horse track in Shakopee promises a $200 million yearly payment to state coffers. And a proposal to allow slot machines in taverns dangles a whopping $350 million annual payment.

      After weeks of news conferences, speculation and chatter, the House Gaming Division held the first legislative hearing Wednesday on what could turn out to be the three most substantive proposals this session to expand gambling as a source of state revenue.

      Gov. Tim Pawlenty's proposal to partner with three northern Minnesota Indian tribes on a metro-area casino has made the biggest splash so far this year. The proposals for the Canterbury Park racino and slots in bars have made the legislative rounds in past years, but are enjoying renewed interest as Pawlenty and lawmakers look for ways to add spending on K-12 education and other priorities without raising taxes.

      The latest entrant Wednesday was the proposal for video slots in bars, introduced at a morning news conference by two Iron Range lawmakers who said it would let all parts of the state share in gambling profits.

      "If we're going to go down the track of gambling, why not do it in a way that involves small business people and gives them a chance to participate," said Rep. Tom Rukavina, DFL-Virginia, the bill's House sponsor.

      Participating bars could have up to five slot machines, which would be owned by the State Lottery. Only bars that already host charitable gambling could get the machines, with the profits split between the state, charities, bar owners and the state's environmental trust fund.

      Pawlenty's casino proposal isn't projected to raise as much for the state, mainly because a major share of the profits go to the three Indian tribe partners. Pawlenty's chief of staff, Dan McElroy, told the Gaming Division that it would also create up to 3,000 good-paying union jobs in the Twin Cities.

      Members of the Gaming Division raised concern that lawmakers are being asked to approve a casino when a site hasn't been identified. McElroy reiterated Pawlenty's statement that the site would need approval from the governing body of the host community, and said naming a site beforehand would make the debate even more political.

      "The successful major sighting projects in the past were always the ones where the Legislature was not asked to opine on the location," McElroy said.

Supporters of the Shakopee racino - a racetrack with casino-style gambling - said the plan had the added benefit of a host community that wants the facility to be expanded.

      "This is one where the locals are saying, 'We welcome it,'" said Rep. Mark Buesgens, R-Shakopee, whose district includes Canterbury Park and who is sponsoring the racino bill. "The people I represent have told me time and time again this is a no-brainer."

      The Gaming Division took no action on any of the bills Wednesday, but will reconvene on Friday for a marathon session to gather more testimony, debate amendments and vote on all three proposals.