October marked the 20th anniversary of the legalization of gambling in Cripple Creek, but the celebration was mixed with apprehension in this historical mining town.
The recession has taken a big chunk out of the discretionary spending that gamblers are willing to drop into the town’s slot machines and onto its blackjack tables. And there are new worries that tax changes being considered by the state gaming commission will be another blow to Cripple Creek.
The commission is considering whether to remove a loophole in the casino tax structure that allows one owner to operate up to three licenses in adjacent buildings. Because the state’s gaming tax is graduated, dividing operations into smaller pieces can qualify operators for a lower rate.
The change would be a big deal in Cripple Creek, where many of the casinos have expanded from one historic storefront to the next and hold multiple licenses.
Bronco Billy’s Casino is one example of the practice. It operates under three licenses and occupies eight historic storefronts on Cripple Creek’s Bennett Avenue. The casino started with a single location, said co-owner Marc Murphy, and gradually acquired more properties and more licenses.
One argument given in favor of legalizing gaming in 1991 was to preserve the historic look and feel of the downtowns.
Bronco Billy’s does just that, Murphy said. “We have preserved to the best of our ability the integrity of the old, historic buildings,” he said.
Changing the rule would mean a bigger hit for Cripple Creek than for Black Hawk and Central City, said Cripple Creek city administrator Ray White.
“We have operators here that have actually taken the historic buildings and used them for gaming operations as opposed to Black Hawk, where they just knocked them down,” White said.
The gaming commission discussed the issue in October, but delayed a decision to its next meeting, scheduled for Nov. 17 in Central City.
