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Spokane, Washington  Est. May 19, 1883

‘Instant racing’ repeal clears House committee, 15-2

Vito Barbieri (Associated Press)
BOISE – Idaho lawmakers shot down a plan for a new state Gaming Commission on Thursday, and instead advanced to the full House a proposal to ban “instant racing” – the slot machine-like gambling terminals that have popped up at three locations around the state, including the Greyhound Park in Post Falls. The Legislature in 2013 authorized betting on “historical horse racing,” which was described as a way of taking bets on broadcasts of past horse races. But lawmakers said they never envisioned the slot machine-like “instant racing” terminals that tracks ended up installing this year. Just two lawmakers – Reps. Vito Barbieri, R-Dalton Gardens, and Shannon McMillan, R-Silverton – opposed letting the full House vote on the repeal bill. “The conclusion that these instant racing machines are slot machines is still supposition,” Barbieri declared. “There is no facts yet. The (Post Falls) police department is doing an investigation.” He called the repeal bill – which was proposed by the Coeur d’Alene Tribe – “a knee jerk, a reactionary, to a complaint that was brought by a competitor.” Doug Okunewicz, general manager for Coeur d’Alene Racing, which operates the Greyhound Park Event Center, said the 35 gaming machines at the center are just like the machines at tribal reservation casinos. “The two games are almost exactly the same,” he told the House State Affairs Committee. “They function almost identically. And yet we have tribal representatives saying that the one is a representation of casino gambling and the other is not. Well, that’s just silly.” The tribes’ gaming machines were authorized through a 2002 voter initiative and then formalized through negotiated compacts, with oversight from the National Indian Gaming Commission and the Idaho Lottery Commission; their legality has been upheld by both state and federal courts. Under federal law, tribes can offer any form of gaming on their reservations that states authorize elsewhere; the opening for tribal gaming in Idaho came when Idaho authorized a state lottery. Rep. Christy Perry, R-Nampa, the lead sponsor of the “historical horse racing” bill two years ago and the sponsor of the unsuccessful state gaming commission bill on Thursday, told the House committee, “It has been determined in the state that Indian gaming is constitutional, and you know what, you’ve got to quit going there. It is, and the public likes it. And the public also likes pari-mutuel gaming. … And the public also likes having the lottery in Idaho. If there is a constitutionality issue, that’s got to be addressed in the courts. … If they determine something to be unconstitutional, then it’s our job then to repeal that.” But she said that hasn’t happened yet, and urged the committee to approve her bill setting up a new state gaming commission to oversee all forms of gambling in Idaho, including “instant racing.” Committee members bristled at that proposal. Rep. Lynn Luker, R-Boise, said, “I’ve never voted for or supported instant racing, that’s not in our code right now. So can you explain why that is being put in this bill?” “It actually only came from me because I had heard the term in the media and those sorts of things,” Perry said. “I am more than happy to take it out.” The only testimony in favor of the gaming commission bill came from the three companies now operating instant racing machines, including Les Bois Park in Boise and the Double Down Betting Bar in Idaho Falls, which is affiliated with the Sandy Downs racetrack. John Sheldon, president of Treasure Valley Racing, which operates Les Bois, said, “I hope this committee can take a step back, avoid making a hasty repeal decision, and instead form a commission to regulate and maintain gaming within our borders.” Opponents of the commission bill included the vendor for the state lottery, whose attorney and lobbyist pointed to numerous problems in the measure; and Bill Roden, lobbyist for the Coeur d’Alene Tribe, who called it “an attempt to divert attention” from the repeal bill. Barbieri’s motion to pass the commission bill failed on a 5-18 vote; North Idaho Reps. Don Cheatham, R-Post Falls, and Kathy Sims, R-Coeur d’Alene, joined Barbieri in supporting it. A substitute motion from Cheatham to hold off on a decision then failed on a 7-10 vote, with Sims, Barbieri, and North Idaho Rep. Shannon McMillan, R-Silverton, joining Cheatham. The committee then killed the bill on a voice vote. It immediately moved to SB 1011, the bill to repeal the 2013 law and end instant racing, which was the subject of two days of testimony last week, but no vote. Among those who testified was Melissa Bernard, operator of the Double Down Betting Bar in Idaho Falls, who told the committee, “I followed the law and currently I’m being persecuted for it. … I see this as an illegal taking of my business.” Rep. Lynn Luker, R-Boise, proposed a two-year moratorium, to let the existing instant racing machines be phased out before a repeal. “We’ve heard a lot of emotional testimony,” he said. “I’m the first to say that I believe we were misled in committee two years ago when these were presented. Unfortunately, as the saying goes, the horse is out of the barn. We have a lot of folks that have made investments.” Rep. Melissa Wintrow, D-Boise, moved instead to send the bill to the full House without a recommendation, to let the full House decide its fate. “The Legislature did not intend for slot machines to go in,” she said. “And I am really quite troubled by the blaming of the tribes on this. The focus keeps coming back to the tribes, however they have done everything in compliance with the law, it’s been underlined and underscored numerous times.” Barbieri argued against Wintrow’s motion. “Gambling is here, the revenue is real and it helps the state,” he said. “We have to look at the survival of the industry itself.” But only McMillan voted with Barbieri, and the repeal bill, SB 1011, cleared the House committee on a 15-2 vote. It earlier passed the Senate, 25-9. If it passes the House and receives the governor’s signature, instant racing would become illegal in Idaho July 1.