Betting limit increase proposed in Colorado
July 1, 2008
Voters could soon decide whether betting limits at casinos in Black Hawk, Central City and Cripple Creek, Colo., would be raised and the facilities allowed to stay open 24-7.
A proposed ballot initiative
would ask Colorado voters to allow the state’s gambling towns to increase
casino bet limits, add new games and extend operating
hours.
If approved by a statewide
vote, residents of Black Hawk, Central City and Cripple Creek could decide
whether to increase betting limits from $5 to $100, add craps and roulette, and
allow casinos to operate 24 hours a day instead of closing at 2
a.m.
The referendum also would
lock in the current tax rate on gaming and require a statewide vote to change
it. The bill, submitted in May to the Legislative Council, would need 76,000
signatures.
A legislative committee also discussed a measure
that would increase the betting limit to $10. The proposed ballot initiative was
greeted positively by Deutsche Bank gaming analyst Bill Lerner in a note to
investors. “An increase in the betting limit and the other changes would
clearly be a positive for Colorado
casino operators,” Lerner’s note said. “In 2008, Colorado casinos have been negatively
impacted by the implementation of a smoking ban and gaming revenue statewide is
down 10 percent through March.”
Under the proposal, state community colleges would receive 78 percent of
any tax revenue collected above the 2007 amount, with the remaining 22 percent
going to gambling towns.
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