Topeka ? As lawmakers anticipate more bad budget news, a House committee is working on measures that would produce new revenue.

But for many legislators those measures, which would expand gambling in Kansas, carry a heavy moral price tag.

The House Tourism Committee is considering several bills that would expand gambling, though legislative leaders say the one that probably has the best chance of passing would allow casino-style games, such as slot machines, at Kansas racetracks near Kansas City, Wichita and Pittsburg.

During the past several years, lawmakers have consistently rejected measures to start casinos at the tracks.

Many legislators have opposed the initiatives, saying that gambling is sinful, and while the state already runs a lottery and pari-mutuel wagering, they did not want to be part of increasing gambling.

Others have said the casinos would divert recreation dollars from restaurants, theaters, and other forms of entertainment. And they say more casinos, which are already established outside the state’s authority by four Indian nations in Northeast Kansas, will lead to more bankruptcies, addictions and divorce.

“Those costs offset the financial benefits of casinos,” Rep. Tony Powell, R-Wichita, a longtime opponent of gambling, said.

But Kansas lawmakers have never faced a $500 million-plus revenue shortfall, which state leaders say can only be mended through deep cuts and tax increases.

“A lot of people are looking at it differently now,” said Rep. Jerry Aday, a Republican from Ellsworth who has tried for years to persuade his GOP colleagues to go along with casinos. He said lawmakers now are facing tough decisions. “Do I raise taxes, cut social services and education or approve gaming?”

Powell conceded the state’s fiscal condition will change some votes in the Legislature.

“There is more support in the Legislature this year because of the promise of revenues to the state. I’m not sure if they (supporters of slots) have a majority yet, but it’s a lot closer than it has been in the past,” he said.

‘Doing the doable’

Gov. Bill Graves has proposed a $228 million tax increase and said that he would consider expanding gambling on a limited basis, telling lawmakers at the start of the 2002 session, “I am willing to consider slot machines at the pari-mutuel racetracks but the more you expand the number of facilities and gaming locations, the less supportive I will become.”

Rep. Carol Beggs, R-Salina, and chairman of the Tourism Committee, said any bill that is recommended by his committee will probably adhere to Graves’ remarks.

“I’m a firm believer in attempting to do the doable, and not just run against a wall,” Beggs said.

A subcommittee is working on gaming proposals, and a proposal to allow slots at the tracks will probably be adopted by the full committee within the next couple of weeks, he said.

One major unknown is how much money casinos would produce for state coffers. Recent estimates on net revenue have varied from $270 million per year to $408 million per year.

Since the primary bill under consideration calls for 20 percent of net revenue to go to the state, that would result in the state receiving from $54 million to $82 million per year.

But a recent state audit urged lawmakers to use caution in budgeting revenue from slots because the estimates were “based at least in part on educated guesswork.”

The report by the Legislative Division of Post Audit also found that the 20 percent take for the state under the proposal was much smaller than some other states. In Oregon, the state receives 56 percent of casino revenue, Iowa, 36 percent, Delaware, 35 percent, and West Virginia, 34 percent.

No ‘miracle drug’

But Beggs said whatever the final amount for the state is it won’t be “miracle drug” for the budget because the casinos will probably take several years to become established, and will face heavy competition from riverboat casinos in Missouri and the Indian casinos.

At least one tribe, the Prairie Band Potawatomi Nation, which owns Harrah’s Casino near Mayetta, has voiced opposition to expanded gaming in Kansas, saying it would cut into its profits.

Harrah’s has “energized” the tribal nation, said Steve Ortiz, tribal secretary of the Prairie Band Potawatomi. “Rather than settle for a subsistence lifestyle, the members of the nation have been given a chance to build a long-term vision,” he said.

Revenue from the casino is helping pay for numerous improvements on the Potawatomi reservation in Jackson County, he said, such as education programs, child care, road, police and firefighting.

“As opportunities arise, we are finding out that people want to come home to the reservation. Our best and brightest want to live here,” he said.

And the Potawatomi disagree with the contention that the state receives no revenue from tribal casinos, noting that the payroll and economic activity generated by the casinos boosts income and liquor taxes that go to the state.

Gaming bills before the Legislature include House Bills 2183, 2822, 2890 and 2987.