Casino towns abuse revenue, critic of gambling measure says
By James Paton, Rocky Mountain News (Contact)
Published October 16, 2008 at 12:05 a.m.
A critic of a proposal aimed at expanding gambling in three former mining towns is concerned about how local governments would spend the extra tax revenue they receive.
Scott Yates, who started the Web site KeepVegasOut.com, cited a state lawmaker's request for an inquiry into how Black Hawk has spent gambling money. Yates believes "the funds are being abused" and worries that would continue in the future.
Of the tax revenue generated by casinos in Black Hawk, Central City and Cripple Creek, half goes to the state general fund and more than a fifth of the money flows to the local governments to cover costs such as police and roads. The towns also get a portion for historic preservation.
It is the preservation money that has raised eyebrows.
State Rep. Al White, R-Hayden, asked the Legislative Audit Committee about a month ago to look into the matter. The committee is expected to address the matter Dec. 9.
"We'll see if the spending complies with the statute," he said. "I'm not sure it does."
Black Hawk City Manager Richard Lessner said White, the Colorado Bureau of Investigation and others have asked for documents.
White's request came after reports by Denver's 7 about spending on travel and properties owned by city officials.
"We welcome anyone looking at the records," Lessner said.
The gambling initiative, Amendment 50, would allow voters in the three towns to decide whether to increase the limit for a single bet to $100 from $5, add craps and roulette and keep casinos open around the clock.
More than three-quarters of the additional tax proceeds would go to the state's community colleges. The rest would be sent to the three cities and two counties to address the impact of gambling on the communities. None of the new money goes to historic preservation.
Patonj@RockyMountainNews.com or 303-954-2544
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