Saturday, January 20, 2007

A state lawmaker who favors legalizing and regulating the video gambling
machines now common in bars and social clubs has decided against filing
legislation to make that change. Rep. Win Moses, D-Fort Wayne, said
yesterday that he instead is seeking to create a committee to study the
issue this summer and consider such matters as how much to tax the machines
and how many should be allowed in a single location and statewide. "It's
very clear this is almost too complex at this time to write a single bill
without more study," Moses said. Brad Klopfenstein, executive director of
the Indiana Licensed Beverage Association, called Moses' move a "hiccup" in
the group's effort to legalize the machines, which many of its members rely
on to make ends meet. But he said he was not disheartened. "We've known for
a while that our primary supporters are in the Senate," Klopfenstein said.
"And if any gambling legislation moves, we'll be part of the discussion."
The decision leaves the General Assembly without a bill to legalize the
machines, although other gambling measures have been proposed. Senate
Appropriations Committee Chairman Bob Meeks, R-LaGrange, said last month
that he planned to write video-gambling legislation, but he has been
recovering from surgery and has not been able to file bills. Yesterday,
Senate President Pro Tem David Long, R-Fort Wayne, said Meeks might be back
in time to file a bill before tomorrow's deadline or the measure could be
amended into a gambling-related House bill later in the session. A House
committee is expected to have a hearing in the coming weeks on legislation
that would legalize slot machines at Indiana racetracks. House Speaker Pat
Bauer, D-South Bend, said that bill would preserve the "destination"
gambling that lawmakers have already established with riverboat casinos.
Bauer dislikes the idea of legalizing the video-gambling machines -- which
often are called Cherry Masters, after the name of one of the games --
because he said it would create mini-casinos on "almost every block." Moses
said Bauer's concern about the video-gambling proposal influenced his
decision not to offer it. Don Marquardt, president of the licensed beverage
association, said bars and restaurants "don't want to be mini-casinos" but
simply want to add video machines to their existing entertainment options.

"This is by far the weakest argument, but for some reason the most widely
used and what seems to be the most effective for those against our
legislation," Marquardt said in a letter responding to Moses' announcement.
"We provide many forms of entertainment to attract customers. Pool tables,
dart boards, juke boxes, pinball, etc. are commonly found in our
establishments."

But Moses said he was frustrated by the inability of supporters in the
alcohol industry to reach compromises with legislators who support the
ideas. The most complicated issues, Moses said, include whether the state or
private entities would own the machines and how to limit their number.

Yesterday, Klopfenstein said that he believed his organization had reached a
compromise with Moses about how the legalization would be structured and
that bar owners remained flexible about other issues.

He said the compromise included permitting five machines for every
for-profit bar or restaurant with an alcohol license and 10 machines each
for social, service or veterans clubs with alcohol licenses. He said the tax
rate would be 25 percent to 30 percent and produce as much as $300 million
in annual revenue for the state.

Long said yesterday that he hopes lawmakers do something about the machines
this year -- either legalize and regulate them or pass stronger enforcement
laws to eliminate them.