Owen Donohoe - Kansas State Representative 39th District

News

Rep. Donohoe Introduces Bill For State-Operated Casinos
That Multiplies State Revenue

Kansas Representative Owen Donohoe (R-Shawnee) has introduced a bill that revolutionizes the way the state generates revenue from gaming casinos approved last year by voters. The result could yield hundreds of millions in new revenue for the state, and help reverse the tide of deficit spending proposed by the Governor.

Kansas is the only state to require state-owned and operated casinos. Last year, the Kansas Legislature enacted Senate Bill 66, which authorizes four casinos to be built in the state. Voters in four counties approved these casinos overwhelmingly.

Consider state-operated casinos to keep revenues in Kansas

Read the legislation here >>

Rep. Donohoe's proposed bill, HB 2703, suggests that the state actually run the casinos and keep all the revenue, rather than outsourcing the operation to gaming companies who return only a small percentage (22%) of revenues to the state.

According to Rep. Donohoe, this approach could send an estimated $400 million-plus in additional revenue to the state. Rep. Donohoe launched this plan to draw attention to the possibility of state-owned and operated casinos, which could have many benefits, including lower property taxes for senior citizens and additional cost-of-living adjustments for KPERS beneficiaries.

"This bill is about giving the good people of Kansas their money," says Rep. Donohoe. "Rather than the money going to the out-of-state gaming companies, the money goes to the state of Kansas, and can be returned to Kansas taxpayers and benefit the individuals, families and small businesses of Kansas."

Rep. Donohoe opposed gaming proposals during last year's legislative session. But because voters supported it in four counties, including Wyandotte County, the state should benefit more from it, Rep. Donohoe contends. "If we have to have it, let's do it right," Rep. Donohoe asserts. "There's no reason the state of Kansas can't operate these casinos as businesses whose revenue goes to the state. We did it with the Lottery and that has now brought in $1 billion to the state since its inception."

Declining state revenues and skyrocketing debt have plagued Kansas for years, worsening dramatically in the past seven years under Gov. Sebelius. "The sooner we move to consider this opportunity, the better," explains Rep. Donohoe. "And we can bring real relief to Kansas taxpayers, and real impact to reducing the state's staggering debt load (currently more than $3.8 billion)."

Last year, as a member of both the Economic Development and Tourism Committee and the Federal and State Affairs Committee, Rep. Donohoe examined state economic development issues in depth. Kansas ranks first in state and local taxes as a percentage of income, and the burden for businesses is similarly great. Rep. Donohoe, though just in his first term, sees tremendous economic benefit in both the short- and long-term by having voter-approved gaming operated and managed by the state, rather than by gaming companies who garner a whopping share of gaming revenues.

"I want to make sure Kansans know they have this option, rather than outsourcing casino operations and revenues. No state in the United States has the opportunity to make such a dramatic impact in favor of its taxpayers like Kansas does with HB 2703," Rep. Donohoe says. "We must show leadership in solving our state's problems, and this is an outstanding opportunity to do so."

HB 2703 moves through committee hearings beginning this week.