GOLDEN — Facing scrutiny from Gov. John Hickenlooper over a recent decision to grant a tax break to the casino industry, gaming regulators agreed Thursday to unseal legal advice they received from the attorney general’s office during the rulemaking process.
Colorado Limited Gaming Control Commission vice chairman Philip Baca said during the group’s monthly meeting that the information is not “secretive” and will provide the “rationale that we used in our decision-making process.”
The commission agreed to waive its attorney-client privilege in response to a request from the governor’s office for access to the legal advice.
“We’re going to cooperate fully with the governor’s office,” said outgoing commission chairman Meyer Saltzman.
The five-member commission on May 19 authorized a 5 percent tax cut for the industry, citing its struggles to post profits amid the downturn, a smoking ban that extended to casinos in 2008 and high gas prices.
Hickenlooper has said the decision is troubling because it could slash millions in annual funding for community colleges and other groups that rely on gaming-tax revenue. His staff is exploring options available to overturn the cut.
Among other things, the information from the AG’s office is expected to shed light on why regulators approved an across-the-board tax cut when some of the larger casinos, such as Ameristar in Black Hawk, are prospering.
Previously, the commission had altered the tax structure to assist smaller casinos while maintaining or increasing tax levels on operators that generated more revenue.
Saltzman, who met privately with Hickenlooper on Tuesday to discuss the tax cut, said Thursday’s meeting would be his last.
Members of the gubernatorial-appointed board are limited to two consecutive terms. Appointed by former Gov. Bill Owens, Saltzman served a full four-year term and a partial one that began in January 2006.
“The governor has known and respected Mr. Saltzman for a long time,” Hickenlooper spokesman Eric Brown said. “There are times when good people disagree.”
The first term for another commissioner, Larry Gaddis, also expires early next month. Brown said commission appointments will be announced soon.
Michael Smith, president of the Colorado Gaming Association, defended the “modest tax relief” that the industry received, noting that Aurora recently approved $300 million in tax incentives for an entertainment complex near DIA.
Casinos generate 27,000 direct and indirect jobs, Smith said. The tax cut is expected to save the industry about $5 million a year.
Taxed on gross gaming revenue, Colorado casinos paid more than $107 million in taxes in fiscal 2010. After regulatory and other expenses, nearly $97 million was distributed to the general fund, historic-preservation groups and others. Community colleges received about $6 million.
