No 'lead barrier' to Lea County track, official says

SANTA FE - There is no "lead barrier" around Lea County that would keep a new race track from being licensed, state Racing Commission Chairman Billy Blackburn assured lawmakers on Monday.

Blackburn and other commission members told a Senate committee they will make decisions on new tracks independent of what Gov. Gary Johnson wants.

"We will do what is responsible, based upon the best interests of racing in New Mexico," Blackburn said.

It was Blackburn's second appearance in four days before the Corporations and Transportation Committee, prompted by the panel's concerns that Johnson's opposition to new tracks would influence his appointees on the commission.

"There is no lead barrier around the corners of Lea County," Blackburn told Sen. Billy McKibben, a Hobbs Republican and supporter of the track.

Johnson has said he does not favor opening any new race tracks.

Two Santa Fe investors propose to build a $15 million track - with a slot machine casino and performance center - in Hobbs. Their application has been pending about three weeks with the Racing Commission. A Las Vegas, Nev., developer has also filed a preliminary application to build a track in Hobbs.

An application also is pending before the commission to reopen the defunct La Mesa Park in Raton.

Blackburn said in an interview it could be six months to a year before the commission decides whether to license the Hobbs track.

Because there is no existing track or other infrastructure and the developer must start from scratch, the commission must closely examine the building and financing plans, as well as the operating proposal, Blackburn said.

Developer Ken Newton, former owner of Santa Fe Downs, said the proposed Saddlebrook Park could be built in about eight months once it's licensed.

Newton and his partner, George Berbeco, originally proposed to build the track on city land but canceled the lease because of opposition within the community.

The track would be built on private land under the pending proposal.

Several committee members said lawmakers are increasingly looking to race tracks - rather than Indian casinos - as the future of gambling in New Mexico.

Sen. Don Kidd, R-Carlsbad, said there appear to be no consequences when tribes don't share their revenue with the state "except a lot of people up here shouting and kicking the wall."

"I just would vote to ignore the (tribal) compacts and concentrate on ... the tracks," Kidd said.

Sen. Raymond Kysar, R-Farmington, said he opposes gambling but feels a sentiment in the Legislature to expand off-reservation gambling.

"I feel ... that nobody is going to sit here and allow the Indians to be the only act in town," Kysar said.

Tracks pay the state a 25 percent tax on their slot machine revenue and give another 20 percent to purses, under state law.

"Their hands are still tied at a 12-hour day, only 300 machines and no gaming tables," Blackburn said. "They are competing ... but they're playing right now with one hand behind their back."

Tribal casinos have no limit on the number of machines and tables. They are supposed to pay the state 16 percent of their slot machine revenue under 1997 gambling agreements, but they say that's illegally high and most aren't doing so.

Tribes want the Legislature to approve new compacts with a lower revenue sharing rate before the session ends on Thursday.

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