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06/30/2010 06:28 PM

Gambling advocates bet they can relieve state budget woes

By: Karina Kling

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Slot machines might not fix the potential $18 billion budget shortfall lawmakers face next year, but you can bet proponents of expanding gambling in the state will say it could bridge a gap.

"We think we can go a long way in helping the budget in this biennium and future bienniums," Sam Houston Race Park President Andrea Young said.

Racing industry officials told lawmakers Wednesday that legalizing slot machines at horse and dog tracks would generate $1 billion to state coffers annually and is necessary to keep the racing business alive. They also said too much of the business is going to neighboring states.

"Regardless of how many dollar hot dogs or fireworks promotions we do, we can't keep up with that pace of funds that they are now able to generate that we can't," Young said.

Horse breeders and others in the business also made their plea to support slots so a portion of the money could come back to them.

"It's a tough business to be in right now when you have such a huge draw from our surrounding states," horseman Jimmy Ellers said.

But some argued slots aren't enough to make a budgetary difference, and it's time to go big or go home.

"You have to build something spectacular to attract people from miles and miles around," Texas Gaming Association Chairman Jack Pratt said.

Pratt said the association proposes building nine major destination resort casinos like those in Las Vegas. He said it would generate about $4 billion per year and bring thousands of jobs.

"The greatest thing we have to offer is huge employment for people who are underemployed today and can't get a job today," he said.

But Rob Kohler, who lobbies against legalized gambling, said it preys on the poor.

"If you put this type of enterprise right on the doorsteps, then you're going to enable a whole group of folks who wouldn't otherwise do that. They'd be surviving," Kohler said.

That concern has kept lawmakers from passing such legislation in the past, so only time will tell if it can hold sway in 2011.

On Tuesday, horsetrack owners released a poll showing Texans preferred slot machines to raising taxes, 57 to 22 percent, with others wanting both or being undecided.

A Texas House committee plans to look at gaming options during a hearing next week.