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Colorado Gambling Fuels Rift

"Then legalized gambling defied gravity. Today, elegant Central City, with its famous opera house, is almost broke, and tiny, blue-collar Black Hawk boasts a budget of some $22 million.

"Instead of working side by side to promote their casinos, the two towns, whose mayors are cousins, are engaged in a bitter war over how to tap into a potentially bigger share of the region's gambling market.

" The latest chapter in the divisive history between the towns in the foothills above Denver involves access. At issue is whether to build an 8.7-mile, four-lane road or a two-lane, 7,000-foot highway tunnel to reach heavily traveled Interstate 70.

"…The tunnel would reduce the time drivers spend on a 19-mile, serpentine mountain road that leads first to Black Hawk, one mile closer to Denver, and then to Central City.

"…Central City, where mining magnates built substantial houses and the highly regarded opera house in the 1860s, developed and campaigned successfully for limited-stakes gambling to help preserve their mining town image during the late 1980s.

"To gain statewide support, it included Black Hawk and Cripple Creek, another old mining town about 75 miles away, in the initiatives voters approved in 1990.

"…Everyone expected gambling to be a quaint attraction drawing a few more tourists to mom-and-pop casinos mostly in Central City.

" Instead it was like a new gold rush.

" Since gambling debuted in late 1991, nearly $4 billion has been wagered in the three towns.

"…Central City fell on more difficult times partly because leaders imposed a moratorium on business permits in 1992, fearing they didn't have enough water to spare for big casinos. That effectively shut down casino development.

"The town's casinos have shrunk from a high of 17 in 1990 to six, which take in about $5 million each month. Eighty percent of its gambling revenue last year came from one casino on the edge of town closest to Black Hawk. Its population hovers at about 600 residents.

"Downhill, Black Hawk has 19 casinos that generate roughly $35 million each month. The population has dwindled to 118, but its annual budget has boomed from $160,000 to $22 million.

"After it became clear Black Hawk was getting most of the gambling dollars, Central City began campaigning to build the $45 million road. Black Hawk countered with a plan for a $150 million tunnel.

"…Earlier this year, a grand jury concluded that Black Hawk officials had secretly used public funds to sabotage plans for the road, including buying mining claims to block development…"

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