Topeka ? Expanded gambling would be good for Kansans, and the first step should be a premier casino near the Kansas Speedway in Wyandotte County.

That recommendation is the conclusion of Gov. Kathleen Sebelius’ task force on expanded gambling. But enacting it, or something like it, promises to be one of the most complicated and politically wrenching issues of the 2004 legislative session, which begins Jan. 12.

“This session will be key,” said Sebelius, who supports expanded gambling as part of a solution to the state’s budget shortfall.

For the past 10 years, efforts to expand gambling in Kansas — during both the best and worst economic times — have been killed by a combination of special interest infighting and general moral opposition to the idea.

And Glenn Thompson, a gambling opponent from Wichita, is predicting this session will be no different. He dismissed the governor’s task force report as gambling proponents telling gambling proponents what they want to hear.

“The committee was stacked to start with, Thompson said. “I doubt the Legislature will give the report much credibility.”

Legal gambling

Kansas already has gambling in the form of the state lottery, pari-mutuel wagering at horse and dog tracks, bingo parlors and at four American Indian tribal casinos, from which the state receives no revenue.

The issue now is whether to allow casinos with thousands of slot machines, or video lottery terminals, to put the state on par with neighboring states such as Missouri. Task force member Sherman Jones, a former state senator from Kansas City, Kan., summed up the group’s 47-page report, saying, “People tend to go where the prettiest lights are.”

Pedestrians pass the Wyandotte Nation Casino in Kansas City, Kan., in this August 2003 file photo. Gov. Kathleen Sebelius has expressed interest in expanding gambling in Kansas to pad the state budget; her efforts are expected to create controversy.

Some officials see casinos as a way to generate revenue for needed state programs during tight budget times, while increasing tourism and boosting local economies. Interests in Kansas City, Kan., Wichita, Frontenac, Dodge City and Junction City are vying for casinos.

But getting true estimates of how much the state could reap from expanded gambling has been an iffy proposition.

Millions in revenue

According to gambling supporters, the various casino proposals, depending on the state’s cut and the size of the facility, would produce anywhere from $10 million to $300 million annually in direct state revenue, without counting the secondary benefits of increased tourism and jobs.

In addition, a group representing convenience stores said that putting 8,000 video lottery terminals, such as touch-screen slot machines, in stores that sell regular lottery tickets would generate $300 million per year.

The wide variance in estimates has prompted the state to do an $80,000 market analysis of gambling that is expected to be completed later this month or in early February.

Gambling opponents, however, say that revenue would be offset by the social cost of gambling — increased bankruptcies, family problems associated with gambling addiction, crime and the loss of other revenue from other entertainment options to gambling.

In addition to the money issue, the state constitution allows only state-owned and state-operated gambling, so the choice is between operating a state-run casino or contracting with an Indian tribe.

How to do it?

No state in the country has operated a casino, and some gambling supporters say it would be a fruitless venture.

“Where would the state get the money?” to build a casino, asked Jones.

Some have suggested private investors could front the money to the state. But, Jones wondered, “Why would John Doe want to put $150 million into a project if he doesn’t own it?”

Others have said the definition of state-owned in the constitution is open to interpretation, and eventually would have to be decided by the courts.

“State-owned and operated is a term of art. How it works out is another story,” said Tom Wright, chairman of the task force.

Let voters decide

Another option is allowing Indian tribes to build a casino. But the major proposals from tribes so far would require the federal government to take off-reservation lands into trust, a proposal that is not guaranteed. The task force also said partnering with Indians would mean less money for the state.

A third option would be for the Legislature to approve putting a constitutional amendment before voters in November that would allow privately owned and operated casinos.

Voters overwhelmingly approved a 1986 amendment that allowed a state lottery and betting on horse and dog races.

“The sense I get from being around the state and talking to individuals is it would pass again, if citizens were given the (opportunity) to vote,” Sebelius said.

But getting a proposed amendment on the ballot requires a two-thirds majority vote in the state House and Senate. Sebelius noted that would be problematic since numerous gambling expansion measures have failed to get even a simple majority in the Legislature.