DENVER—Colorado Gov. John Hickenlooper asked for the resignation of three members of the state’s gaming commission Wednesday, citing their decision to give casinos a tax break.
Hickenlooper, a Democrat, said the gaming industry is profitable and casinos are making multimillion dollar investments even during one of the worst recessions in U.S. history.
“Gaming should be subject to the same risks and rewards of operating and expanding as other industries that don’t have the same ability to change their tax rate based on market conditions,” Hickenlooper said in a statement.
The gaming commission unanimously approved the tax break in May, prompting sharp criticism from Hickenlooper, who said it would prove too costly for community colleges and other groups that rely on the gaming-tax revenue.
The tax break took effect July 1.
Republican Rep. Carole Murray said she disagrees with the governor’s decision, noting that the gaming commission is supposed to be independent and protected from outside influences that can effect decisions about the gambling industry.
“It’s independent for a reason. It should not be subject to political reprisal,” Murray said.
Murray said some of the casinos are family-owned and are struggling during the bad economy.
“We’re not just talking about huge corporations,” she said.
The commission is made up of five members. Those asked to resign were Philip Baca, the Commerce City Police chief; Florence Hunt, a victim specialist at the Pueblo County District Attorney’s Office; and Debbie Jessup, the executive director of the Starlight Children’s Foundation Colorado.
Two other members, Meyer Saltzman and Larry Gaddis, were term-limited or did not reapply for another term.
According to commission meeting minutes, casino representatives who testified on behalf of the tax break in May said it would encourage new investments and make the industry competitive. But the Department of Revenue said at the meeting that tax revenues were estimated to be increasing slightly and that four to five new casinos were scheduled to open in 2012.
In June, the budget director of the Colorado Community College System testified in opposition to lowering casino taxes, saying it would impact staffing and scholarships. The director of The State Historical Fund said they expected to lose about $1 million for operations at the historical society.
Hickenlooper said casinos already pay some of the lowest tax rates in the country.
“And to lower them even further in these times of unmet needs in local communities makes it appear they are diverting their fair and rightful obligation onto their neighbors in the rest of the state,” Hickenlooper said.
The new gaming commission members are Adams County Sheriff Douglas Darr; Charles J. Murphy of Colorado Springs; Jannine Mohr, a Loveland attorney; Robert W. Webb of Golden; and Lowell R. Hutson of Denver.
The commission sets and enforces rules for state gambling establishments.
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