By Amelia Arvesen
KU Statehouse Wire Service
TOPEKA – In effort to bring horse racing back to Kansas, horse racers, breeders and ranchers want to see the Woodlands Racetrack in Wyandotte County reopened.
In a Thursday hearing, advocates of Senate Bill 192 said lower taxes on slot machines operating at horse tracks would revitalize the industry. The tax reduction from 40-to-22 percent would provide greater incentive for investment in the Leavenworth facility that has sat vacant for seven years, Republican Sen. Steve Fitzgerald’s district.
“Folks actively engaged in racing today are doing so outside the state of Kansas, fostering none of the economic benefits associated with a vibrant horse-racing culture,” Fitzgerald said.
Currently, horse racers must travel to Missouri, Oklahoma, Iowa, Nebraska, Colorado, Arizona, New Mexico and many other states to compete.
Proponents of the legislation said a racetrack cannot afford to stay open with the current Kansas tax rate. Oklahoma horse racetracks pay between 10 and 30 percent on gaming tax revenue, according to the American Gaming Association.
In Kansas, state-owned casinos are taxed 22 percent under current law. Whitney Damron with the Kansas Entertainment, LLC, said reopening the racetrack would jeopardize the viability of casinos such as the Hollywood Casino at Kansas Speedway located six miles from Woodlands Racetrack.
“Changing the rules…puts us at a competitive disadvantage and risks future investment that we have indicated we would like to see made at that facility,” Damron said.
A study by Oxford Economics found that three commercial casinos contributed more than $672 million to the Kansas economy and supported more than 4,000 jobs in 2013.
SB 192 would not require additional costs from state agencies, according to the fiscal note. However, because a market study has not been conducted a full revenue estimation was not provided.
Proponents have attempted to pass this bill for several years. No action was taken Thursday. The Federal and State Affairs Committee has not scheduled to revisit the bill next week.
Amelia Arvesen is a University of Kansas senior from San Ramon, Calif., majoring in journalism