DAVE FREUDENTHAL GOVERNOR

WYOMING

STATE CAPITOL CHEYENNE, WY 82002

Office of the Governor

February 25, 2005

The Honorable Randall Luthi Speaker of the House Wyoming State Legislature State Capitol

Cheyenne, WY 82002

Re: Veto of HB0156 (House Enrolled Act 58)

Dear Speaker Luthi:

After much thought and deliberation, I have decided that I must veto HB0156 (House Enrolled Act 58).

Wyoming is at a crossroad with regard to gambling issues, and I believe that we need to carefully and thoughtfully choose which road we travel. Each legislative session we consider more and more bills concerning gambling. For instance, this Session, the Legislature pondered bills addressing a statewide lottery, electronic bingo machines, electronic pull-tab machines, Indian gaming compacts, and, of course, the instant racing machines authorized by HB0156 (House Enrolled Act 58). I believe strongly that we should not address the subject of gambling in a piecemeal fashion, authorizing one form of gambling machine here without taking a hard look at the subject of gambling in Wyoming in total.

In this regard, I am encouraged that the chairmen of both the House and Senate Travel, Recreation and Wildlife committees have indicated their intent to finally take a broad look at gambling issues during the interim period. We need to decide as a state where we want to go with this issue. Should Wyoming travel down the path of neighboring states like Montana, Colorado, or South Dakota, where gambling is generally available in numerous communities and locations? Or, should Wyoming continue down the road we have chosen for a number of years? The road we are presently traveling generally prohibits gambling with very few limited exceptions. These questions are significant, and the decisions we make today will affect generations of Wyoming citizens. I am very hesitant to choose today when I believe we have not had the time to study the issue thoroughly nor sought or gained real citizen input.

I am also troubled by the nature of the gambling activity authorized by House Enrolled Act 58. Anyone who has actually observed these machines cannot deny that the machines are entirely

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The Honorable Randall Luthi February 25, 2005

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designed to operate exactly like a slot machine. In fact, the patent for this device refers to the system as an electronic gaming device. The machines are designed specifically to provide the instant, quick action gambling gratification. Depending on the machine you play, the machines provide you with rolling video tumblers, flashing lights, and audio features that are virtually identical to what you would find on the floor of any casino in Las Vegas. I have attached the report of William L. Holmes, a gambling expert hired by the State to review the operation of these machines. Mr. Holmes' report describes the specifics of the machines the Legislature has now authorized for use in Wyoming. I don't know if the Pari-mutuel Commission or the proponents of this legislation shared this material with you, but I believe it is important that the Legislature understand the operation of the machines you have authorized.

The state ofArkansas is the only state to formally authorize these instant racing devices. They are presently in use in that state. Oregon did allow the devices, but they are not currently in use because of the issue of their legality in that state.

I mention these facts for at least two reasons. First, while the presumed object of the video gambling is some type of horse race, these machines deviate greatly from the type of horse race many of us have enjoyed for years. There is something about our historical roots that draws many of us to enjoy watching strong, athletic horses with skilled jockeys pound around a racetrack. While I understand that money generated from the gambling machines will help prop up our struggling horse racing interests in the state, the use of gambling machines designed to look and operate like slot machines strays far from the original intent of the Pari-mutuel Commission and our desire to continue our history of horsemanship, horse breeding, and horse racing. This is less about a movie like "Seabiscuit" and more like the movie "Get Shorty." I don't believe the means justify the ends.

I also want to point out that with the passage of this law, these slot machine-like gambling devices will be authorized for use in Uinta County, Laramie County, Sweetwater County, Campbell County, and Natrona County. WYO. STnT. § 11-25-110 presently provides that, "No pari-mutuel event shall be held in any county until the question has been put to the people of the county to accept or reject pari-mutuel wagering." Laramie, Sweetwater, Uinta, Campbell, and Natrona counties authorized pari-mutuel wagering years ago when the object of the pari-mutuel wagering were real horse races with real jockeys and a yearly horse racing meet. I am troubled by the fact that if this bill becomes law, the Wyoming Legislature will have dramatically altered the type of pari-mutuel wagering being conducted in the counties (live horse racing to video machine horse racing) without any input or authorization from those most affected by the activity. The minutes of the Pari-mutuel Commission meeting of April 5, 2002, indicate that the operator of the machines initially planned to put the machines in existing off-track betting locations and may expand to "truck stops and bar facilities" with the approval of the Commission. W e must carefully examine if this is where we want to go as a state.

 

 

 

The Honorable Randall Luthi February 25, 2005

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In conclusion, we must carefully choose our steps regarding where Wyoming wants to go with regard to gambling and gambling activities. I am not con inced that the passage of House Enrolled Act 58 is in Wyoming's best interests and must veto )his Act.

Dave Freudenthal Governor

Attachments

c:          The Honorable Grant Larson, President of the Senate The Honorable Joseph Meyer

Chief Clerk, House of Representatives Legislative Service Office