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Gambling towns up the ante

Cripple Creek first to raise bet limit with 267-13 vote

By James Paton, Rocky Mountain News (Contact)

Published December 17, 2008 at 12:05 a.m.

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Richard Smith puts his vote into a ballot box in the Council Chamber at the Cripple Creek Town Hall.

Photo by Dennis Schroeder © The Rocky

Richard Smith puts his vote into a ballot box in the Council Chamber at the Cripple Creek Town Hall.

Voters in Cripple Creek are the first to cast ballots on expanding gambling in their town. Black Hawk residents will vote Jan. 13 and Central City will hold its election Jan. 20.

Photo by Dennis Schroeder / The Rocky

Voters in Cripple Creek are the first to cast ballots on expanding gambling in their town. Black Hawk residents will vote Jan. 13 and Central City will hold its election Jan. 20.

Cripple Creek resident Jessica Krummenacher arrives at the town hall Tuesday to vote on whether to raise limited stakes gambling limits in the mountain community.

Photo by Dennis Schroeder / The Rocky

Cripple Creek resident Jessica Krummenacher arrives at the town hall Tuesday to vote on whether to raise limited stakes gambling limits in the mountain community.

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Excitement over the idea of looser gambling restrictions in Cripple Creek after 17 years of limited stakes has given way to anxiety about the economy.

"We're hoping for the best," City Manager Bill McPherson said. "But do people have the money to come and gamble? That's the question now."

The residents of Cripple Creek, population 1,100, voted Tuesday to give local casinos the green light to raise minimum bets to $100 from $5, to stay open 24 hours a day and to add craps and roulette. The measure passed easily, 267 to 13.

"Are you kidding me? Only 13 'no's'?" Cripple Creek Mayor Dan Baader said. "It was excellent, as we hoped. Everybody's looking for very good things to happen."

Cripple Creek was the first of Colorado's casino communities to vote on expanding gambling. Statewide voters passed the measure known as Amendment 50 on Election Day, allowing residents of former mining towns to decide if they want to relax the rules.

The leap to higher stakes, which would not take effect until July, is expected to raise revenue and make the towns more attractive destinations.

The state's community colleges are counting on that impact, too, as they will receive more than three-quarters of the additional gambling tax revenue.

"We're looking for a shot in the arm," said Marc Murphy, who oversees Bronco Billy's, one of the original casinos in town. "Colorado has suffered from an inability to compete on a level playing field with other jurisdictions across the United States."

Still, it's uncertain how much the towns will be able to capitalize on the new rules if adverse economic conditions persist throughout the new year.

"This is the worst I've ever seen the industry, especially in the last quarter," said Murphy, who started the casino with his business partner in 1991.

A smoking ban, high gas prices early in the year and a slumping economy have hurt Colorado's casinos in 2008 - pushing gambling revenue down 12 percent through the first 10 months - and conditions have deteriorated even further since. The Imperial Casino Hotel recently filed for Chapter 11 bankruptcy protection and, in another sign of the times, the Wild Horse Casino closed.

Bronco Billy's has cut wages and some benefits but has not laid off any staff, Murphy said.

Cripple Creek has not fared quite as badly overall as the state figures, reporting a 9 percent drop in casino revenue through the end of October. November figures should be ready today.

Responding to the tough economy, the city has sliced its 2009 budget to $14 million from $17 million this year, according to McPherson.

Despite the harsh economic climate, an increase in gambling activity likely will provide a lift, creating jobs and driving revenue higher for the casinos and city.

"Amendment 50 is not the silver bullet for us," said Kevin Werner, general manager of the Wildwood Casino, which opened last spring. "We think it will increase our revenue by about 10 percent. That will not get us back to where we were, but it will certainly help. Hopefully, it will give us some momentum."

Cripple Creek has at least eight vacant casino spots in town, but so far McPherson said he is not aware of any formal interest in developing one of those properties.

Black Hawk residents will vote Jan. 13, and Central City will hold its election Jan. 20.

Casinos, mostly owned by corporations based in Las Vegas, spent more than $7 million promoting Amendment 50 in the weeks leading up to the election. Critics had expressed worries about the measure opening the door to further expansion of gambling, and they predicted an increase in bankruptcies, crime and other problems.

The Colorado Legislative Council had estimated that the initiative could generate $300 million in extra tax revenue over the first five years, but that outlook has surely changed as the economy has weakened.

The Colorado Springs Gazette contributed to this report. patonj@RockyMountainNews.com or 303-954-2544

Bigger bets

Colorado voters approved a measure in November allowing the state's three gaming communities to decide whether to move to higher stakes. As part of the measure, three-quarters of the additional gambling tax revenue will go to the state's community colleges and the rest to the towns and counties to pay for police, roads and other services.

* Black Hawk is holding its election Jan. 13.

* Central City is expected to hold its election on Jan. 20.

* The expanded gambling rules - increasing betting limits to $100 from $5, adding craps and roulette and expanding casino hours - will likely go into effect in July.

Comments

  • December 17, 2008

    6:26 a.m.

    Suggest removal

    Gonzopozo writes:

    This was as close to a "sure thing" as you can get in the world of gambling.

    Now everybody - both the casinos and the Division of Gaming - need to get to work to make sure the expansion gets done right.

  • December 17, 2008

    9:07 a.m.

    Suggest removal

    roger44 writes:

    limits should have been higher from day one. the state wants to play mom to us so we don't bet too much, none of their business what I do with my money. the state can sell a $20 scratch ticket, sort of bias in my opinion. the casinos will have to train the dealers for the games and their Surveillance people so they know what the heck they're looking at.

  • December 17, 2008

    9:52 a.m.

    Suggest removal

    T1anda writes:

    Sure hope C-City and Blackhawk voters will follow Cripple Creek voters. The congestion on weekends at 2:00 A.M. will be greatly reduced. People will be free to leave at various times. That can only be a positive road-wise.

  • December 17, 2008

    12:15 p.m.

    Suggest removal

    LOUIE writes:

    I still can't smoke and relax without having to leave the to do so, so for myself the choice is clear. I hope they do better and can make it, but I still prefer Nevada. Bigger acts, more comp action, and I can smoke till dawn in the comfort of the casino with a drink in my hand. I understand the non-smokers dislike, I respect their decision; and they also have a deep respect for me taking my business elsewhere, and not imposing on them. As long as there is mutual respect, everybody wins. I hate seeing tax generating businesses going bankrupt, I hope they can pull through in these difficult times. I truly believe in the freedom of choice, I took the choice of the non-smokers ultimatum. and wished them good luck!

  • December 17, 2008

    12:38 p.m.

    Suggest removal

    jaybyrd writes:

    This seems to indicate there is no approval of no-limit poker in Colorado. Too bad. If so, I will have to stick with Vegas, thank you. Limit poker is junk poker. Back to the drawing board, Colorado.

  • December 17, 2008

    1:04 p.m.

    Suggest removal

    LOUIE writes:

    JAYBYRD, there is a lot of private games going on here in Denver for the card players who like you love the game. Limited stakes has always been bad for the gaming industry, true professionals avoid it and the real games remains private here. Limited stakes are for the tourists and the amateur gambler since it favors the house. But hey, this is Colorado not Nevada. Side note, I've heard many of the old ladies who love the slots complaining their not as loose up there in the mountain towns anymore either. The Lodge they say is terrible. I hate slots, but they make the money for the casinos here. They make a great babysitter for the girls when in Vegas.

  • December 17, 2008

    1:23 p.m.

    Suggest removal

    UrsusArctos writes:

    Somewhere Gene Amole (RIP) and Richard Lamm are lamenting the loss of Colorado. Do you really think raising the ante on gaming will really do any true good for Colorado? The only ones to benefit are the gaming corporations that pushed the legislation through. The "residents" of Cripple Creek voted for this because they are all employed by the casinos! 280 residents voted, guess how many of them have actually lived in Cripple Creek for more than 5 years? 13. All of the true Coloradoans who lived there for years have been driven out by all the money grubbing casinos and their followers. Reap what you sow. Colorado is turning into California faster than the snow melts in Spring. I expect within 5 years all the casinos and their owners will be complaning that not enough people come up to Cripple Creek and lose money, so they need to expand to Winter Park, Vail, Aspen, Breckenridge, Copper Mountain and down to the Front Range. How will all you transplants like it when you end up living next to a casino open 24-7 and it looks and sounds like Las Vegas all the time? Mark the date, by 2013 there will be gaming all over Colorado - and we will all be paying for it.

  • December 17, 2008

    1:38 p.m.

    Suggest removal

    notknowitall writes:

    Big deal! I still will prefer New Mexico's casinos. They still allow smoking and are (and have been) open almost 24 hours a day. Not only that, but their payouts are much better than Colorado's.

  • December 17, 2008

    5:42 p.m.

    Suggest removal

    gkb2008 writes:

    Did the liquors laws change just for these types of establishments ? Will these casinos in these three towns be able to sell any and all kinds of liquor from 2am until 7am unlike every other kind of liquor retailer, bar, nightclub, and establishment ? I do not think so... you will have to turn in your booze before 2am if it is not consumed similar to what one has to do at the afterhours parties like at PT's Showclub on West Evans in Denver where they stay open until 4 or 5am on Saturday and Sunday mornings. Someone let me know for sure...