Play Meter

Issue: 1982 May 01 - Vol 8 Num 9

-------------------NEWS BEAT===================
Video "biz op" company finds
rough going in New Orleans
Apparently, video "biz op" salesmen
for Quorum Industries of Dallas,
Texas failed to consult their industry
trade publications close enough.
Dave Madden and friends came to
the home city of Play Meter unaware
that the publication had been pur-
suing a series on "blue sky" sales-
manship.
Quorum managed to contract
nearly $1 million business in a
weekend sales pitch at the Marriot
Hotel on the outskirts of the French
Quarter. But when Madden and his
crew returned the following week-
end to continue their sales work,
they were rudely greeted by local
media and law enforcement officials
who had been alerted to the com-
pany's modus operandi by editors of
Play Meter.
Quorum is being sued in Texas for
selling machines that don't exist.
Fraud, the state calls it, and the
company and all of its current
officers are named as defendants in
the case.
Out-of-state companies doing
business in Louisiana are supposed
to post $50,000 bond for the com-
pany and $25,000 for each salesman
before the!( even ~dvertise their
presence. Additionally, the company
was supposed to have posted a
surety bond with the city and
secured specific transient business
licenses.
According to the district
attorney's office in New Orleans,
none of those requirements were
met by Quorum, nor did they inform
their customers of their legal back-
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ground (a federal requirement) .
But WWL TV-Channel4 in New
Orleans-on the strength of Play
Meter's evidence, told all on a local
telecast which detailed the com-
pany's dealings. In one segment,
Channel 4 even interviewed an
obviously suffering Dave Madden
about his background in the industry.
When the district attorney's office
sent police to question Madden
about his failure to post the neces-
sary city bond and secure the proper
licenses, Madden, it appears, ran out
of his desire to create excuses.
In the midst of questioning by the
city police officer, Madden excused
himself.
"He slipped out the back door and
escaped," the district attorney's
office told Play Meter.
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16
PLAY METER , May 1, 1982
===================NEWS BEAT===================
Age ban gets popular
Mesquite, Aladdin's Castle
want more argument
Eiland Archer, city attorney for
Mesquite, Texas and the attorney
who has argued the city's case
against Bally's Aladdin's Castle all
the way to the Supreme Court,
indicates that both parties want
more argument heard in the Court of
Appeals now that the case has been
remanded there by the Supreme
Court.
When the Supreme Court decided
not to rule on whether or not Mes-
quite is constitutionally able to ban
children under seventeen years old
from playing video games, its deci-
sion was to send the case back to the
5th Circuit Court of Appeals for
clarification as to whether they made
their decision (in favor of Bally)
based on the Texas constitution or
on the U.S. Constitution.
Bally has recently submitted to the
court a motion for additional argu-
ment, indicates Archer, and the city
of Mesquite will agree, to a certain
extent.
"Bally wants to argue a broad
range of aspects but we concur only
as to the point of clarifying the con-
stitutional confusion. We want to
argue that there is no difference
between the constitutions in this
matter."
The city attorney is hopeful that
the Court of Appeals will decide that
the case was in its proper jurisdiction
when it was with the Supreme Court.
And if the case is returned to the
Supreme Court, Archer is hopeful
he will have another opportunity to
argue the case on its merits.
"Although the media has given
most attention to the under-
seventeen ban," offered Archer, 'twe
CORRECTION
In our April 1 issue we incor-
rectly referred to the Supreme
Court remanding its Mesquite
decision back to an appeals
court of "state level" (p. 11) and
as being the "appeals court in
Texas" (p. 66). The court we
refer to in both instances is the
5th Circuit Court of Appeals.
That court is not located in
Texas, nor is it a state level
court. It is a federal court and is
located in New Orleans.
don't feel it is the most important
part of the case."
The city of Mesquite, according to
Archer, is more interested in the
criminal background question. The
city still feels that Bally may be tied to
organized crime.
"We can't prove that they are;
they can't prove that they aren't,"
Archer says. And while Bally
naturally believes the burden of that
proof should rest with Mesquite, the
city believes Bally should have to
prove they have no such criminal
ties.
Meanwhile, the nation is being
beset by similar attempts to keep
youngsters from playing games.
The age ban is currently being tested
in courts in sixteen states, according
to an ABC News estimate.
Ronald Walker of The Carnival
Inc., has been fighting the ban in
Michigan. There, the state supreme
court has ordered the state appeals
court to hear the case. The appeals
court had previously refused to con-
cern itself with the issue.
Walker, a veteran in these battles,
contends that operator~ should take
their cases to federal courts rather
than state courts.
"Operators here are winning left
and right in the federal courts. If we
will fill the federal courts with our
actions, it will force the Supreme
Court to do its duty, to render some
decision on this issue."
[Ed. Note: Play Meter will continue
to keep operators informed about
these age ban court actions. If you
are aware of such action in your
state, please write or call us and
alert us to it.]
Town eliminates games
In what may be a new twist in city
ordinances, the town of Stanley,
North Carolina has completely
banned all videos from its city limits.
Lloyd Shearer, who heads up
Video Taping Services (a television
news compiling company), told Play
Meter that the city council voted to
outlaw the games because they were
displeased with the operation Space
Arcade.
Saying that "We don't want
another Bourbon Street," Mayor
William Withers dismissed the busi-
PLAY METER, May 1, 1982
ness as a site for illicit drug deals,
drinking, fighting among youngsters,
and truancy. Shearer, who reviews
and compiles tapes of regional televi-
sion newscasts, said that the Space
Arcade was a clean, well run arcade
and that its owner, Joe Wylie, had
commented that he did not let chil-
dren into the arcade during school
hours .
Additionally, Shearer stated that
the ban was being enforced selec-
tively.
"There are games in convenience
stores and gas stations and they
haven't been removed," he offered.
"I believe that it's just a case of
jealousy," Shearer said. "Wylie was
new in business and doing very well."
Although Coral Gables, Florida
has banned videos, that ordinance
includes a grandfather clause that
allows existing locations to stay in
business. Stanley is the first town
known to Play Meter as having
successfully voted into a law an ordi-
nance that calls for the total elimina-
tion of coin-operated games.
17

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