BATON ROUGE, La. -- Churchill Downs Inc. is "suitable" to
run up to 700 slot machines at the Fair Grounds Race Course, the
Louisiana Gaming Control Board ruled unanimously.
But there's still a question about whether Orleans Parish
voters, who approved slots at the track in October 2003, must now
change a City Charter provision giving Harrah's New Orleans Casino
a monopoly on land-based casinos in Orleans Parish.
A charter change would need a simple majority in a citywide
election.
Monday's vote by the gambling board was the last step for state
regulators. It approved 500 slot machines after July 1 and as many
as 700 if Harrah's New Orleans ever generates $350 million in
revenue in one year. The Canal Street casino took in $327.2 million
during the 12 months ending in March.
Gambling board member Marcia Morgan of New Orleans was assured
during Monday's meeting that the board's approval of a license
would not keep the city from deciding the charter change question
and zoning questions about hours and security.
Attorney General Charles Foti does not think that slot machines
at the Fair Grounds would violate the City Charter, Assistant
Attorney General Jeanne-Marie Zeringue Barham said.
She presented an opinion which Foti wrote late Friday. It said
that since state law does not describe racetrack slots as a casino,
the Legislature considered them "an enterprise separate and apart
from 'casino' gaming."
The 1992 city ordinance adding a land-based casino monopoly to
the City Charter mentioned many games of chance, but not slot
machines or video poker machines, Foti noted.
Churchill's chief executive, Thomas Meeker, said he hoped that
would settle the issue without a court fight.
After City Attorney Sherry Landry told the City Council she
could not tell whether racetrack slots would violate the charter,
the council unanimously ordered her to ask for a court ruling.
"Hopefully, that will clear up what is going on in Orleans
Parish," Meeker said. "My question is: Why do we have to go to
court?"
Council members said they would have to discuss the matter with
their colleagues.
Councilwoman Jacquelyn Brechtel Clarkson, whose district
includes some of the neighborhood around the race track, said that
for her, the most important question is whether the track will keep
its current hours of 11 a.m. to 10 p.m. or midnight, depending on
night races elsewhere.
Her constituents don't want the track to extend its hours for
the slot machines, she said.
"We're very grateful to have Churchill Downs here. We think
they're a first-class corporate citizen. However, if they don't
abide by the neighborhood's request for quality of life in about
five residential neighborhoods, we will have to curtail them,"
Clarkson said. "They may be worth a lot, but the neighborhoods are
priceless."
State police said in their presentation that Churchill plans to
spend $10 million on the slots building and $8 million on slot
machines. The company hopes to open the slots casino in June 2006.
Meeker said he and other Churchill executives have been meeting
with neighborhood groups to listen to their concerns and come up
with solutions. He said he is also trying to meet with City Council
members.
Meeker said he wants to ensure that zoning and charter questions
don't delay construction, since much of the work must be done
before the racing season starts on Thanksgiving Day.
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Information from: The Times-Picayune,
http://www.timespicayune.com