Monday, October 18, 2010

Amendment P – Regulation of Games of Chance

This proposal would consolidate the licensing of gaming within the Department of Revenue. Casinos and the CO lottery are currently regulated by the Dept of Revenue, but bingo and raffles are regulated by the Dept of State. In a 2008 report both departments supported this consolidation for efficiency and practicality reasons.

Although this is a constitutional amendment, there is an attempt not to tie the hands of the general assembly. For instance, the general assembly may determine how long a corporation or organization must be in existence before it is allowed to apply for a gaming license, and the general assembly may change the licensing authority without a constitutional amendment.

Recommendation: YES

I like the leeway that this proposal gives to the general assembly – very atypical for constitutional amendments.

There is an estimated one-time cost of $116,000 to effect this move. According to the Blue Book, the costs will be covered by existing revenue from bingo and raffle licenses. Some organizations dependent on bingo and raffles worry that the Dept of Revenue will take more than the current share of their profits to pay for this move, but I haven’t seen any evidence to support this claim. If anyone out there has such evidence, please provide it.

Some people argue that the idea is good, but the timing of the consolidation is bad because of the cost in a tough economic year. If the idea is good, let’s pass it and not wait. Out of the entire CO budget, $116,000 is not very much money. Passing a ballot issue is a lot of work, even for “just” a referendum. If the general assembly is willing to spend $116,000 and they are the ones who have to balance the budget, let’s support them.


Approved Ballot Language

Amendment P (CONSTITUTIONAL)

SHALL THERE BE AN AMENDMENT TO SECTION 2 OF ARTICLE XVIII OF THE CONSTITUTION OF THE STATE OF COLORADO, CONCERNING THE REGULATION OF GAMES OF CHANCE BY AN AUTHORITY SPECIFIED BY THE GENERAL ASSEMBLY?

Yes _____ No _____


Full text of House Resolution 09-1003 referring Amendment P
CO Constitution, Article XVIII, Section 2 (changes)
Lotteries prohibited - exceptions
http://www.leg.state.co.us/CLICS/CLICS2009A/csl.nsf/fsbillcont3/640BEC9AFF55307D8725754000649BF8?Open&file=HCR1003_enr.pdf

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