GOLDEN, Colo.—Officials who replaced members of the state’s gambling commission over a tax break for Colorado casinos have yet to discuss whether to repeal it, the panel’s new chairman said Thursday.
Gaming Commission Chairman Robert Webb said the five new members of the panel, which is charged with setting and enforcing rules for state casinos, have not talked about the tax rates since Democratic Gov. John Hickenlooper appointed the group earlier this month.
Hickenlooper criticized the previous commission for approving a 5 percent tax cut for casinos in May and asked three members to resign. Two others were term-limited or decided not to seek another term. The tax break took effect July 1.
The governor said casinos have been profitable despite the bad economy and that they should be treated like other businesses that have not had their taxes cut.
Thursday was the first time the new commissioners met, and they selected Webb as their chairman.
“We really haven’t had any discussions with respect to the tax rates, so I really have no comment at this point in time,” Webb said. He also declined to talk about any conversations he may have had with Hickenlooper about the issue.
“Any discussions that I’ve had with him prior to my appointment are considered private,” Webb said.
Casinos argued for the tax break, telling previous commissioners it would help them remain competitive and encourage new investments. But Hickenlooper said the tax cut would come at the expense of community colleges and other groups that rely on gaming tax revenue.
Michael Smith, president of the Colorado Gaming Association, said the industry is waiting to see if the new commissioners will undo the tax break. It could be a process that takes months, he said.
Smith did not bring up the tax cut during remarks to the new commissioners, but he told them the casino industry has struggled during the last three years because unemployment remains high and people have less disposable income. Colorado’s unemployment rate was 8.7 percent in May. New state unemployment figures will be released Friday.
Smith said after the meeting that when casinos have previously gotten tax breaks, they have used the money to invest in their operations to try to generate more revenue. He said he hopes the commission will let the tax cut stand for a year to see the results.
“Let’s see if it provides any benefit to anybody,” he said.
Eric Brown, Hickenlooper’s spokesman, said the governor “has not directed the gaming commission toward any course of action.”
“What the gaming commission does next is up to the game commission,” Brown said.
———
Follow Ivan Moreno on Twitter at
