Commentary; Posted: 3/26/03

Pros and cons of racino betting

Don Heinzman

During these times of state revenue shortage the temptation to net $75 million from a racino is tempting. A racino is another name for a combination race track and casino. Racinos are springing up at dog and race tracks throughout the country.

An elaborate plan for one in Minnesota would place 2000 slot machines at Canterbury Downs in Shakopee where already there is horse racing, simulcast betting and poker playing. If the state were to approve the plan, Canterbury operators would build a casino, hotel and conference center with private funds.

Backers say it would save horse racing in Minnesota because 7.25 percent of the proceeds would go to increase the horse racing purses.

The state would get 40 percent which is figured to be $75 million a year for its general fund. Local, city and county government would get 1 percent and 15 percent would go to the Minnesota Lottery, already run by the state.

The major argument against approving a racino is it expands gambling in Minnesota, and notably in the Twin Cities Area.

Opponents argue forcefully that gambling would cost more in social expense than it would generate in revenues. Paul Shoemaker of Minnesotans Against Gambling sums it this way: ìIncreased gambling opportunities would prey on the poorest and weakest elements of society.î

It is well documented that casual gambling leads to compulsive gambling, which can wreck families and cause financial ruin.

Proponents say casinos already are established in Minnesota where there are 19 of them. If one isnít allowed at Canterbury, people will find a place to gamble ìjust down the roadî at the Mystic Lake Casino in Prior Lake.

The state already uses gambling proceeds for its general fund through the state-run Minnesota Lottery.

Each year the state receives unknown dollars from the state lottery.

Native-American-run casinos do not contribute any of their proceeds to the state, while it can be argued that the casinos do provide jobs and economic development.

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