Gambling Wins Again at the Polls - Part I

Now there are only two: On Nov. 5, 2002, voters in Tennessee amended the state constitution to create a state lottery, leaving Hawaii and Utah as the only states without some form of legal gambling.

Across the nation, the election showed that voters are becoming more comfortable with legal gambling. More pro-gambling candidates for major office won than at any other time in history, and proposals to renew or bring in gaming triumphed. Look for major expansions of racinos and tribal casinos.

Federal: Republicans took over the U.S. Senate. Trent Lott (R.-Miss.), who would have been majority leader, self-destructed, so Bill Frist (R.-Tenn.) will replace Tom Daschle (D.-S.D.). This is bad news for casinos, which have become a major financial and political power in Mississippi; Tennessee has no legal gambling, although it just voted in a lottery. Nevada Democrat Harry Reid will be replaced by Kentucky Republican Mitch McConnell as assistant majority leader. This obviously helps horse racing while hurting casinos. John McCain (R-Ariz.) will become chairman of the Senate Commerce Committee, which is bad news for legal sports betting. Indian gaming lost a friend with the departure of Daniel Inouye (D-Hawaii) as chairman of the Indian Affairs Committee, but gained an even bigger supporter in Ben Nighthorse Campbell (R.-Colo.), the only Native American member of the U.S. Senate. Overall, casinos and state lotteries will probably lose a little influence in Washington, DC, while horse racing will gain a lot.

Legal gambling is normally a state, not federal, issue. Governors almost always have the political power to block any expansion, and usually can swing the state legislature in favor of expansion.

Alabama: Gov. Don Siegelman (D.) lost re-election by a squeaker. He supported creating a state lottery for education; his opponent, Bob Riley (R.), a staunch conservative, opposes legal gambling. Four years ago, Siegelman ousted incumbent Gov. Fob James Jr. (R.), on the lottery issue, but conservative religious groups from all over the country converged on Alabama and defeated the proposed constitutional amendment in October 1999. The floundering dog tracks gained simulcasting through the State Legislature, but will now never get slot machines.

Arizona: Proposition 202, sponsored by Gov. Jane Hull and 17 gaming tribes, won 51.7 percent to 48.3 percent; competing proposals from the tracks and the Colorado River Indian tribes in the most expensive campaign in the state's history were soundly defeated. Janet Napolitano (D.), who supported Prop. 202, will be governor, defeating anti-gambling Matt Salmon (R.). Lawsuits will, of course, continue, but the tracks have lost some political influence. Arizona's casino gaming will look much like today's, but bigger: up to 29 casinos, 998 slot machines per tribe with a statewide cap of 15,675, 100 blackjack and poker tables per casino, $25 slots, $500 blackjack, $75-$150 poker, and non-gaming tribes may transfer their slot allotments. Voters approved extending the state lottery, again.

Arkansas: Staunch anti-gambling Gov. Mike Huckabee (R.) was re-elected, 52 percent-48 percent.

California: Gov. Gray Davis spent $68 million and still could not get a majority of the vote, although he did edge out his Republican opponent. Davis' embarrassment is a great opportunity for California's tribes. He will rely on the political wisdom that voters have short memories, and will run for president. The state budget is at least $10 billion in the red. The voters did not approve building a rail line from L.A. to Palm Springs' Indian casinos.

Colorado: Incumbent Gov. Bill Owen (R.) trounced his opponents. He favors the status quo on gaming and lotteries.

Connecticut: Incumbent Gov. John G. Rowland (R.) won, meaning continued lukewarm support for gaming.

Florida: Re-elected Gov. Jeb Bush (R.) will continue his opposition to the expansion of gambling.

Georgia: Sonny Perdue (R.) beat incumbent Gov. Roy Barnes (D.) in a no-win race for legal gambling: They both opposed video poker and Indian gaming; Perdue is not a fan of the state's enormously successful state lottery.

Idaho: A victory for Indian gaming: Voters approved, 58 percent-42 percent, letting tribes have 3,000 video lottery terminals. Courts will decide whether VLTs are prohibited by the state constitution's ban on slot machines. But, incumbent Gov. Dirk Kempthorne (R.) beat Jerry Brady (D.), who was more in favor of tribal casinos.

Illinois: Rod Blagojevich (D.) beat Jim Ryan (R.), and Democrats also took control of both houses. The two gubernatorial candidates oppose the proposal for a casino in Rosemont, but Blagojevich understands that casinos can spur economic development, so there is a chance there will be more casino licenses issued, maybe even in Chicago. The new, draconian 50 percent tax may be repealed, after developers cancel more casino projects.

Indiana: There were no changes in the Legislature, which means the new high tax rate on riverboat casinos will stay.

Iowa: Another big win for gaming. By a landslide, voters opted to keep casinos and racinos for eight more years in all 11 counties that had the issue on the ballot. Congressman Jim Leach, one of Internet gambling's leading foes, was re-elected with only 52 percent.

Kansas: Kathleen Sebelius (D.), who would allow racinos, defeated anti-gambling Tim Shallenburg (R.).

Kentucky: The Legislature remains split, with Republicans controlling the Senate and Democrats the House. This so far has stymied Gov. Patton's less-than-wholehearted push for casinos or racinos.

Louisiana: We do not know if the voters of Cameron Parish want a riverboat casino; courts blocked the ballot referendum. There were no major changes in the Legislature, which has agreed to a moratorium until another economic study is completed.

Maine: The towns of Fairfield, Sanford, and Princeton approved casinos in nonbinding elections, but 13 other towns have taken action against casinos since spring 2002, according to MaineToday.com (Nov. 7, 2002). Both candidates for governor say they oppose casinos, but John Baldacci (D.) will not be nearly as anti-gambling as outgoing Gov. Angus King. The Passamaquoddy and Penobscot Nation are gathering signatures, but their casino will never pass in the present political atmosphere.

Maryland: A major victory for racinos. Rep. Robert Erlich Jr. (R.), elected governor, wants to put gaming devices at racetracks to compete with nearby Delaware's, and to lessen the budget deficit. He defeated Kathleen Kennedy Townsend (D.) and replaces Gov. Parris N. Glendening, both of whom were opposed to legal gambling. The Legislature is already talking about putting it on the ballot in 2003 or 2004.

Professor Rose can be reached at his website: www.GamblingAndTheLaw.com.