Kansas Gaming Director Stephen Martino: Higher ethics required for gambling management

Stephen Martino, Kansas Racing & Gaming Commission Executive Director, gave a speech (with questions taken) to the Dodge City Rotary Club public lunch forum held Wednesday, July 23. The major keynote and theme of the speech was Mr. Martino's clear and serious statements about the ethics rules imposed on the whole KS Gaming commission -- not only can they not have any financial interest,etc., in a Kansas casino, but can't even stay at the future hotels that will part of the Ford County - Dodge City casino when built.

Stephen Martino has been in the position since appointed in 2005 by Governor Sebelius. He is a lawyer, and also founded the Kansas Responsible Gambling Alliance, "a group of state agencies and interest groups involved in responsible gambling promotion and problem gambling treatment."

It will be of interest how local conflict of interest issues affect the casino review board's decision -- Mr. Martino is not on it -- but if his speech is any indication, it wouldn't seem good for any applicant to be anywhere near any ethical or legal issues at all, let along be directly involved in a formal business manner.

The issue will be presented in the brief comment section of the July 31st public hearings in Dodge City for Butler National Services Inc. and Dodge City Gaming Inc.

Whatever the outcome, Mr. Martino was very sincere and serious about the requirement of his agency to hold to a higher ethical standard than even required by law.

Thank you for that, Stephen.

Best, Uncle George
(note: no financial connections to any of the proposals, the land, the land sales, the road construction, the water wells, none, nope.)

Dodge City Resort and Gaming Co. presentation:

Dodge City Casino Presentation by Dodge City Resort and Gaming Co.

...If Dodge City Resort and Gaming's proposal is selected by the Lottery Gaming Facility Review Board for further development, the casino would be built on 281 acres in the northeast corner of the city by Highway 50. The Western-style casino would consist of 800 gaming machines, 20 gaming tables, conventions and meeting rooms, three rodeo arenas, an RV park and livestock showroom and several buildings reminiscent of Front Street in the 1880s....

...During the first year of operation, the casino developer would pay the state about $13 million in gaming revenues as well as property, local and sales taxes, said Joseph. Of that amount, $1.3 million would be split evenly between the Ford County and Dodge City....

Time that Dodge City and Ford County citizens faced facts -- $1.3 million oh boy -- with need for expanded fire, EMS and police force....... property taxes watch out. We're high anyway. Guess we're going to be higher.

Makes matters even more expensive for the Butler National Services proposal -- way out 2 miles west of town. No fire/EMS near it at all. Will require a new fire station I would bet. Money, money, money. And none of it for you or me. Darn it. Unless you're the winner at the casino. Yup, that one. Or you're the real estate CFAB chair broker for Butler National, if they get it.

Don't bet on that yet, folks. The massive complaints about conflict of interest concerning one CFAB Chair Greg Starks may take up an hour at the July 31st public statement part of the review. Might make a difference, might not.

But given the time delays that could be caused by legal action against the Events Center location, et al, I would suggest that the Kansas state review board (hi, board members) might not want to bet on income for the state of Kansas for a long time if that west location is chosen -- unless one CFAB Chair resigns before the July 31 meeting. Then, no issue.

Best, Uncle George (note: no financial connections to any of the proposals, the land, the land sales, the road construction, the water wells, none, nope.)

Dates for Dodge City/Ford County casino decision - Sept. 18-19

[Note that "The emphasis throughout the process will remain on doing things in the open." There are and have been conflict of interest issues in the Dodge City decisions -- private gain planned that was clearly not discussed in the open. Since no doubt these conflict of interest issues will come up in the July public hearings in Ford County and involve the city/county CFAB committee chair -- unless Mr. Starks is off of CFAB by then -- wonder how they will play with the state?]


Gaming board's job won't be lit by neon, Hutchinson News, June 9, By Carl Manning

Deciding who will manage the four state-owned and operated casinos in Kansas won't be a task filled with glitz and glamour.

More likely, it'll be filled with non-glitzy topics such as revenue estimates, population projections and targeted markets.

By the end of September, the decisions will have been made by the seven-member Lottery Gaming Facility Review Board on the developers for a single casino each in Cherokee, Ford, Sumner and Wyandotte counties.

It's important for the board to pick the strongest proposals and the ones offering the best deals for the state. But it's just as important to do it in the open, where the public can see what's happening. Gambling automatically raises concerns for many.

Over the years, the gambling industry has worked on its image, promoting its locations as family friendly, touting its amenities, donating to various causes and making "gaming" the industry term of art.

"There is a sleaze factor associated with the gambling industry, and some of that is deserved from years ago, and they've worked hard to change that. But the sleaze factor is still there, which makes transparency even more important," said Joe Aistrup, head of Kansas State University's political science department.

He said that makes it even more important for the board to go out of its way to show that everything is on the up and up.

"They want to make sure people perceive the decision was made on the merits of each bid compared to a decision being made based on somebody lining their back pockets," Aistrup said.

Chairman Matt All, the former chief lawyer for Gov. Kathleen Sebelius, has emphasized the need for doing everything in the open. To him, transparency is the hallmark of success....

The decision about who will operate the casinos in Cherokee and Sumner counties will come Aug. 21-22 and for Wyandotte and Ford counties Sept. 18-19. Between now and then, board members will conduct public hearings, hear sales pitches from prospective casino managers, talk to their consultants and among themselves....

The emphasis throughout the process will remain on doing things in the open.

"If it gets tainted, then you have the first steps of casino gambling going down the wrong path," Aistrup said. "It could lead to some people wanting to reconsider gambling in the state and maybe legislation affecting the casinos."

Ford Co. Dodge City casino plans advance

[Note that the promised donations to Western tourism venues isn't part of either presentation. Both of these Kansas companies, with local supporters, have made oral statements of a percent or so of their revenues going to help SW Kansas Western heritage tourism. Time will tell.]

Two Ford Co. casino plans advance

Developers' proposals will now move on to second round of the competition,

By Chris Green, Hutchinson News, May 28, 2008

Two developers cleared an initial hurdle Tuesday in their battle for the right to build and manage a state-owned resort casino in Ford County.

The Kansas Lottery Commission voted to endorse contracts with both Olathe's Butler National Service Corp. and Wichita's Dodge City Resort and Gaming Co. to develop a Dodge City casino with a Wild West theme. ...

Wichita attorney Steve Joseph, who leads a bid by Dodge City Resort and Gaming Co., said his group's task is to now persuade the seven-member review board to the merits of its plans.

Joseph's venture includes former Wichita Mayor Bob Knight, state media magnate Larry Steckline and his wide, former Kansas Attorney General Carla Stovall Steckline among its investors.

It plans to spend $20 million to build a temporary casino by spring 2009. It would later develop a $92.3 million permanent gaming site, complete with hotel, restaurants, shops and three rodeo arenas near the northeast corner of Dodge City.

Joseph said his group has the biggest "concept" for southwest Kansas and hopes to make Dodge City an entertainment capital in the model of Branson, Mo.

"If Branson, Missouri, can do it, Dodge City can do it, too," Joseph said.

But Clark Stewart, president and chief executive officer of Butler National, said it's his firm's plans that would be in the best interest of the state and the southwest region.

The project's manager emphasized the company's support from local officials and how the project will help Dodge City's economy and its effort to retain its young people during a presentation to the commission last week.

Butler National, hired by Dodge City's Boot Hill Gaming Inc., plans to build a $92.9 million casino in two phases near U.S. 50 on the city's western edge.

Initially, the company would open a $22.3 million interim gaming site by September 2009. It plans to complete the project, along with a 124-room hotel, restaurants and a spa, by September 2011. ...

FORD COUNTY

Butler National Service Corp.

(Boot Hill Casino and Resort)

State: 22 percent of annual casino revenues plus an additional percentage based on revenues above projections, up to 38 percent.

Ford County: 1.5 percent.

Dodge City: 1.5 percent.

Problem Gambling-Addictions Fund: 2 percent.

Dodge City Resort and Gaming Co.

(Dodge City Casino Resort)

State: 22 percent of annual casino revenues, plus 10 percent of net cash flow when revenues exceed $95 million.

Ford County: 1.5 percent.

Dodge City: 1.5 percent.

Problem Gambling-Addictions Fund: 2 percent.

Dodge City casino: some new plans & visitor numbers

The Hutchinson News, May 21, has two different views of the tourism impact of the two different casino proposals for Ford County/Dodge City -- neither set of figures seems to match any research done on the Dodge City location -- research that clearly states most gamblers would be coming from within 50-100 miles from Dodge City.

With gas heading for $4.00 a gallon and higher, seems unlikely that either set of figures will be accurate. And, of course, with casinos going up all over Kansas and Oklahoma, I wouldn't want to be planning much on any of these projections. Only the State of Kansas will win in this casino building orgy, and of course, those selling the land, and constructing the buildings.

Developers present plans for new casino, Hutchinson News:

"...Butler National, hired by Dodge City's Boot Hill Gaming Inc., plans to build a $92.9 million casino, called the Boot Hill Casino and Resort...

The developers said the project would employ 654 full-time workers and could, by 2013, draw up to 418,000 annual visitors traveling from more than two hours away...

...The competing project, the Dodge City Casino Resort, ...said the casino would likely draw 1 million people per year [nee', 1 million visits], 250,000 to 300,000 of whom would come from outside the state or from more than 100 miles away. It would employ at least 377 full-time workers...."

[Compare these numbers with the 2007 research quoted often in public by one of the applicants -- before $4.00 gas -- which states:]

"In order to maintain the quality of life of the area, the additional fiscal and economic costs incurred due to a casino would need to be covered by additional governmental revenues...

"Conversely, benefit-cost ratios of 0.75 shows public benefits are only 75 percent of public costs – costs exceed benefits...

"Since gambling has been legalized and made accessible in several states, the range of pathological gamblers has increased to 1.5 to 5 percent in those states..."

"Distance from Casino in miles and
Annual Spending per Person*


0-10 $ 527.64
10-25 $ 234.23
25-50 $ 114.76
50-75 $ 66.97
75-100 $ 32.22
100-125 $ 13.37
125-150 $ 14.36
150-175 $ 8.99
175-200 $ 3.29

*Estimates by Christiansen Capital Advisors, LLC in current dollar value (2007$)

WSU_Impact_Study_on_Expansion

Best, Uncle George

Untangling the Kansas casino legal mess: Dodge City Events Center issue

Questions that the various Dodge City Daily Globe articles by Mark Vierthaler on the $34 million casino infrastructure costs, forgot to ask, re: public funds paying for casino infrastructure --

From:
Untangling the Kansas casino legal mess, By Rick Alm, The Kansas City Star, April 07, 2008

The question of public financing for state-owned casinos in Kansas is a sticky one. It’s also an odd one considering that state dollars and state manpower will be expended in coming years in the state’s role as casino owner.

That dilemma hasn’t come up yet.

For now, both sides in the battle are lawyered up, and the legal briefs are flying.

A lawsuit financed in part by Topeka-based taxpayer watchdog Americans for Prosperity-Kansas has alleged that all three casino projects proposed for Kansas City, Kan., violate the state casino law’s ban on public financing of casinos.

And from same article:

Kansas’ casino law is clear: “No state or local tax abatement … no revenue bonds, tax increment financing or similar financing shall be used to finance any part of any lottery gaming enterprise or any racetrack gaming facility.

Seems that with the location of our Events Center being decided, without vote, by a member of the private casino applicant Boot Hill Gaming Inc./Butler National -- ie., CFAB Chair Greg Starks -- that the Americans for Prosperity-Kansas will have a field day when public tax money is used to pay for $34 million dollars of infrastructure NOT NEEDED by our Events Center, except that the location was suddenly moved to help the CFAB Chair's private interests. Remember that Mr. Starks, for 10-years, pushed and pulled the Events Center to the center core of the city -- where the costs would be only a fraction of the 2-miles from downtown location that he wants now -- on land he brokered, from a fellow Boot Hill Gaming Inc. board member.

That Starks had to quit the gaming board was at least finally a statement of ethical problems, but of course, after the fact of his profit.

Time for the City/County Commissions to review the location of the public Events Center or state that the cost of at least half or more of the infrastructure must be paid by one of the two casino applicants, when awarded the exclusive multi-year contract by the State of Kansas.

Lawyers are going to love this otherwise.

Signed: Uncle George

1st Annual Legends of McCarty Speedway, May 24 & 25

Put it on your calender now -- 1st Annual Legends of McCarty Speedway, Dodge City Raceway Park, May 24 & 25

Both nights will feature a program of weekly racers highlighted by the "Boot Hill 1000." Details to follow.



1956 Trophy Dash Champion Race Team, No. 98 Jalopy, McCarty Speedway, Wright Park, Dodge City, KS.

Junior (Cecil) Maupin, Jr. driver, with (from l.) Hank
(Henry) Palmer, car builder; Bud Stanley, chief mechanic; Burney Faulkner and unknown -- the 1933 Ford coupe jalopy racer's first-class crew, rare in 1956. Note matching overalls and bill-less caps, and also infamous McCarty Speedway's tin fence in background.

No deaths were recorded at races on McCarty Speedway, which featured two dirt tracks -- a 1/2-mile track for motorcycles and horses, and a 1/4-mile track for cars. (Photograph courtesy: Roger and Troy Burnett, Dodge City, KS.)