BY
MIKE
SHAW
JUSTICE DEPARTMENT SUES LEISURE TIME • PENNSYLVANIA SCRUTINIZES GRAY GAMES • GAMES GALORE
WINS 'CRAZY KONG' SUIT • FIVE GAME LIMIT DROPPED • FBI, D.A. WIN GRAY AREA CASE • PLAYER EXPO
ATTRACTS HUGE CROWD • lTC STUDIES VIDEO PRODUCTION • PENNSYLVANIA OPS WON'T PAY TAX •
DISTRIBUTORS SIGN UP FOR CVS SYSTEM • THEY STEAL TO PLAY •
QUEEN DUBS COIN CONTROLS • BIG 3 EARNINGS DISMAL
JUSTICE
DEPARTMENT
SUES
LEISURE TIME
The U.S. Justice Department has filed
suit against defunct Leisure Time Elec-
tronics and its principals Eugene HilL
Joseph Cassioppi, and William
Thompson for violating ITC regula-
lions governing the sale of business
opportunities and franchises.
For almost three years, the Federal
Trade Commission gathered informa-
tion on Leisure Time Electronics and its
principals. The suit was filed in the U.S.
District Court in Indianapolis
The company-subject of exposes
by Play Meter (January 15, 1982, pgs.
39-41 ), ABC-1Vs 20/ 20, and several1V
news programs nationwide where
Leisure Time had set up its traveling
sales show-is accused of violating
FTC regulations devised in 1978 to pro-
tect investors from business opportu-
nity scams.
.
If guilty, Leisure Time principals
10
face civil penalties-tines. injunctions,
and refunds to unhappy customers.
"If the court finds them in violation of
the rule, we will do our best to contact
the injured parties and to publicize the
decision so that those whom we are
not aware of can come forward with
their claims,"an FTC official said.
More likely, however, a decision
against the Leisure Time principals
will bring only an injunction against
their further participation in the same
business. Seldom, indicate several ITC
attorneys, is any significant redress
accomplished in matters like these.
According to several people who
bought games from Leisure Time, or its
Texas-based sister company Fasci-
nation InternationaL salesmen lied
about minimum levels of expected
game income. They said salesmen
also lied about pre-arranged loca-
tions-Leisure Time told customers it
had location agreements with the
Marriot and Hilton hotels and Burger
King restaurants-and about the ease
of maintaining and servicing video
games.
They also told customers their busi-
ness opportunity was approved by the
ITC and the Department of Com-
merce. But no approval was or could
have been given.
The suit contends that Leisure Time,
Fascination, and Challenge Elec-
tronics ( a name Leisure Time princi-
pals currently use to market their
games ) are "mere shams, organized
and operated under the total dominion
and control of. as the alter egos of. and
solely tor the personal benefit of. HilL
Thompson, and Cassioppi. "
Leisure Time won an initial bout with
the FTC. In July I 980, the commission
issued a demand tor materiaL includ-
ing Leisure Time's client list but a
federal judge in Denver ruled the
commission overstepped its authority.
Over the last two years, Play Meter
has interviewed Leisure Time cus-
tomers. They had not been associated
with coin-op amusements before they
attended a Leisure Time show . The
customers claim Leisure Time to ok
advantage of their Jack of knowledge
of the industry.
" I bought an inferior product at a
higher price than I would have paid for
a good game," one Leisure Time cus-
tomer complained. He echoed the
sentiments of several others who have
fallen victim to Leisure Time claims
that games it sold tor $3,000 to $4.000
apiece would pay for themselves
within a few months.
•
PENNSYLVANIA
SCRUTINIZES
GRAY GAMES
WHICH WAY DID IT GO?
The Pennsylvania Supreme Court
will rule whether " gray area" games
should be classified as gambling
devices in that state .
( c ontinued on page 15)
PlAY METER, June 1 5, 1983