A new push to expand gaming

Swiping at Minnesota's tribal gaming industry Monday, Republican lawmakers proposed allowing slot machines at racetracks and using some of the proceeds to fund state economic development.

It is the latest version of a perennial effort, known as racino, to expand gaming at Minnesota's two state-regulated horse tracks. Rather than tying the new revenue to deficit reduction or a new Vikings stadium, the bill's sponsors said they would devote at least $125 million per year to spurring job creation through a special "Minnesota Future Fund."

"The money is not going to the general fund to grow more government or anything like that," said Republican Sen. David Senjem, a bill sponsor.

The idea of slots at racetracks has long rattled around the Capitol, but backers think it could have new life, given Republican majorities in the Legislature, a governor who is, at the very least, not opposed, and the state's need for cash.

Sponsors also said the proposal would help bolster what they said was an ailing Minnesota horse racing industry.

Tribal interests, with about 25,000 slots in 18 casinos, say allowing racetracks to host slots would do serious harm to their business.

The proposal, with a long way to go to become law, also lacks full support from one of the state's two racetracks.

"If we can't come to some sort of an agreement, we may be forced to introduce our own legislation," said Running Aces spokesman Darin Broton.

Estimates varied on how much money the slots could generate for the state's job fund, with some pledging it would raise at least $125 million a year and others believing that figure is inflated.

Under the plan, the Department of Employment and Economic Development (DEED) would dole out cash to help companies expand in Minnesota and provide seed money for next-generation businesses.

The racinos' profits would fund the state lottery, the tracks and prize money for winning horsemen.

John McCarthy of the Minnesota Indian Gaming Association said the Mille Lacs Band could lose 40 to 50 percent of its gaming revenue if the Aces had slots, and Minnesota could see a flurry of new gambling venues.

Added might?

Bill opponents and supporters largely agreed Monday that, given the state's economic situation, 2011's racino push may have more fuel than past years.

"It is the sixth edition and I will tell you, hopefully, the last edition," said Senjem, of Rochester.

But GOP Party chairman Tony Sutton has asked Republican lawmakers to oppose efforts to expand gambling, echoing the party's platform.

"As the platform outlines, we just don't think it's a good idea for the state to be involved in gambling," said Sutton, on the board of the nonprofit Citizens Against Gambling Expansion.

One sign it may have legs? Gov. Mark Dayton did not rule it out.

Dayton said he wanted to see the language of the bill, which had not been finalized Monday, but he might consider the idea if the money went to job creation.

"I've stated earlier, I think the money ought to go to education," Dayton said, adding that he believes most gaming proceeds should go to public purposes.

Stadium talk

The proposal is not designed to help the Vikings build a new stadium, but one of the bill's sponsors said the football team could potentially benefit anyway.

"You can build a very good case that the Vikings stadium, at a certain level, is great job production and economic development," Gunther said. He added that, in theory, DEED could give the funds toward a Vikings stadium.

The racino bill is not the only pending effort at the Capitol to expand gambling. The state's powerful liquor lobby is pushing a proposal that would allow for electronic pulltabs and slot machines in bars. Senate President Michelle Fischbach, R-Paynesville, is carrying that bill.

Both proposals are likely to take a back seat to budget bills until later this month.