CRIPPLE CREEK, Colo. -- Colorado Casinos are coming off their worst economic year in the state's 17-year gambling history, but they hope a voter-approved amendment will put them out of their slump by expanding the hours and games they offer.

The passage of Amendment 50 Tuesday means that the towns of Black Hawk, Cripple Creek and Central City will be able to hold their own elections on whether casinos can raise betting limits from $5 to $100, operate 24 hours a day, and add other games. Currently, casinos must be closed between 2 a.m. and 8 a.m.

Cripple Creek Mayor Dan Baader says the proposal's approval should raise property values, create jobs for the town and bring new investments.

He said an election is likely in January.

"And then it's off to the races," Baader said.

Casino owners say the bad economy and a statewide smoking ban that was extended to casinos this year is to blame for huge losses to their businesses this year. Revenue at the casinos dropped 11.4 percent this year from 2007.

Last month, the Wild Horse Casino in Cripple Creek closed and 62 employees lost their jobs. Casino owners said the amendment was crucial to their survival.

"It was a choice of do this or sit there and watch the industry gradually die," said David Minter, general manager of Johnny Nolon's Casino in Cripple Creek.

The Colorado Legislative Council had estimated the longer hours and more games could bring in $300 million more to the casinos in the next five years but that was before the economy took a turn for the worse.

In approving the amendment, voters were also calling for 78 percent of the new tax revenue collected by the casinos to go to the state's community colleges.

"It will enable us to continue to do some very good things in community colleges and to improve on our successes," said Nancy McCallin, president of the Colorado Community College System.

Casinos Report Revenue Loss After Smoking Ban

Colorado casinos reported in June that revenue fell 10.7 percent during the beginning of 2008, the worst drop in the industry's history

The industry and gamblers are blaming the state's new smoking ban as well as high gas prices. Others blame the overall soft economy.

An analysis by The Denver Post shows that the 10.7 drop in revenue between January and April this year is the second-largest drop among gaming states. Only Illinois saw a bigger drop in revenue. Like Colorado, it banned smoking inside casinos starting in January.

Sales of lottery tickets including Powerball, meanwhile, rose 9.8 percent during the first four months of 2008 compared with the same period last year.

"The industry is experiencing its version of the perfect storm," said Don Burmania, a spokesman for the Colorado Division of Gaming. "How much each factor has contributed to the decline is difficult, if not impossible, to quantify."

Marc Murphy, co-general manager of Bronco Billy's Casino in Cripple Creek, blames the casino smoking ban for 75 percent of the latest downturn. He said he has cut about a dozen positions since the beginning of the year.

Stephanie Steinberg, who pushed for the smoking ban to be expanded to casinos, thinks the recession is more to blame. She said casino revenue in Las Vegas, where smoking is allowed, has also dropped.

Gamblers said the smoking ban and gas prices have caused them to scale back trips to the three historic mountain towns where gambling is allowed -- Cripple Creek, Black Hawk and Central City.

"I used to come up here once every week. Now it's once every three months or so," said Julie Romero, 60, during a smoking break outside the Isle of Capri. "I just like to smoke while I play the machines."

Paul Williams, 48, of Denver, said he used to go to casinos twice a week but now he only goes tree times a month.

"It's the gas prices," he said. "The gas prices are affecting everything."

The gambling industry is backing a ballot initiative that could boost business by opening the door to higher bet limits and 24-hour gambling. Casinos hope to put the issue before voters in the fall's election.

Many Colorado casinos opposed the smoking ban, which went into effect in January this year.

At the time, some gamers told 7NEWS they would stop coming when the ban took effect.

"I think it's a nice punishment for all us terrible smokers, putting us outside where we're going to get pneumonia and die," said Glenna Hess.

Proponents of the ban say it protects the health of the public.