Play Meter

Issue: 1984 March 15 - Vol 10 Num 5

nEWS
PENNSYLVANIA HOUSE BILL
WOULD LEGALIZE VIDEO GAMBLING
A bill currently in the Pennsylvania
House will eliminate the problem of
policing video gambling games by
legalizing them , said the bill's spon-
sor Representative Brian Clark of
Allegheny County. According to
Clark , about 40,000 video card
gambling machines are operated in
Pennsylvania , " too much of a pro-
blem to police .
" We have only two choices," he
told Play Meter. " We either regulate
them or we ignore them."
Clark is convinced it is impossible
to halt illegal gambling on videos in
Pennsylvania despite a September
22 state Supreme Court ruling . The
ruling states that all video poker and
blackjack machines equipped with
knock-off switches or meters that
count and record canceled plays
can be seized as illegal gambling
devices. Clark's assessment is a blow
to authorities nationwide who feel
the best way to put a halt to illegal
gambling on video card games is to
have them declared illegal devices
per se , which means authorities can
confiscate them without witnessing
payoffs.
Clark's bill , reviewed at a public
hearing at the capital in Harrisburg
in November, would legalize the
operation of games equipped with
totalizers , accounting devices which
track a game's revenues and payoffs.
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Totalizers would be read weekly by
state authorities to determine the
state 's take .
"The totalizer also eliminates the
problem of skimming ," Clark
explained . " Every game will be
equipped with a sensor device; a
light would go out if it is tampered
with ."
The bill also limits each operator
to 100 machines, in order to prevent
the gambling machines from being
controlled by a single powerful
source. It provides for licensing of
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manufacturers, distributors, and
operators separately and prohibits
any individual from holding more
than one type of license.
"An operator's license would cost
$50 ,000 ," Clark proposed. "We
would use the money to enforce the
bill." An undetermined amount of
the gross would go to the state to be
distributed to local governments
and school districts. All state reve-
nues from the games would be dedi-
cated to education, Clark said.
Clark believes his bill will be
looked upon with favor because it is
a substitute for taxation .
"People have learned to live with
the games," he said . "If we can regu-
late them, we can raise money with-
out raising taxes."
Clark's bill is not the only legisla-
tive effort being made in Pennsylva-
nia to legalize gambling. A bill cur-
rently being considered would
legalize slot machines for use in the
Pocono Mountain resort areas .
Another bill to sanction video poker
gambling, supported by Pennsylva-
nia operators, died in the House
recently. (Play Meter, December 15,
1983, p . 23.)
Clark is hopeful his bill will get
some attention in May.
" At any rate ," he said , "I don't
anticipate anything happening on
this until next year."

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II
PIA Y METER. March 15, 1984
nEWS
MESQUITE WITHDRAWS APPEAL,
liCENSES ALADDIN'S CASTLE
The city of Mesquite, Texas, and
Bally's Aladdin's Castle have agreed
on a new city ordinance for video
game arcades, but the city attorney
who battled Bally all the way to the
U.S. Supreme Court is unhappy with
the compromise.
The settlement comes after a
November 7 Mesquite decision to
withdraw its appeal to the U .S.
Supreme Court to review a 5th Cir-
cuit Court of Appeals opinion that
banning youngsters under 17 from
playing commercial video games
v iolates federal and Texas constitu-
tional guarantees. The withdrawal
of the appeal , in effect, allows that
ruling to stand.
That September 1 opinion was the
third issued by the Circuit Court of
Appeals in the highly publicized
Mesquite case. It was considered a
ruling favorable to Mesquite. To
include federal constitutional con-
siderations would enable Mesquite
to push for argument in front of the
High Court. Bally attorneys have not
been anxious to confront the issue
on federal grounds .
" I am certain we would have pre-
vailed if we had appealed the 5th
Circuit ruling," Mesquite City Attor-
ney Eiland Archer told Play Meter .
" But the City Council is reluctant to
spend any more money."
The agreement between Mes-
PlAY METER. March 1 5, 1984
MONEY
quite and Bally takes form in a new
ordinance that restricts youngsters
from playing during school hours. It
also provides for the city to license
Aladdin's Castle . In turn , Bally d is-
missed a suit it filed against the city
for refusing to issue a license and
agreed to assume some of the costs
the city will be assessed by the 5th
Circuit Court of Appeals .
" We have no argument with
assigning the license since Aladdin 's
Castle has removed all of its direc-
tors who had been involved with
Gerry Catina," Archer said, pointing
to the recent resignation of Aladdin's
Castle President William O ' Donnell
Jr. (Mesquite objected to O'Donnell
because of rumored business ties
between the O'Donnell family and
mobster Gerard Catina .) " The court
gave us a victory on our wording in
the ordinance that allows criminal
background investigations for arcade
operators ."
Archer said Mesquite 's costs for
the entire battle have, to date,
amounted to $10 ,000. No attorney' s
fees are included in those costs
because Archer is a salaried em-
ployee of the city . Despite low costs
for such extensive litigation , Mes-
quite councilmen were hesitant to
dedicate more of the Dallas suburb's
limited budget to the battle .

POST -BOOM LOSSES CLOSE
SANDERS DISTRIBUTING
Sanders Distributing, which served
customers for 40 years around Nash-
ville, Tennessee , is going out of
business.
Harry Sanders, Jr. , president of
the firm but not active in conducting
the business, said sales had been
declining gradually to the point that
it was no longer profitable to keep
the family-owned firm going.
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Even with the Bally and Mylstar
lines, Sanders couldn't survive the
losses of the post-video boom years .
" Those videos killed us ," said
Dillard Wright, who has been with
the firm since its inception .
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Wright will remain at the Sanders
location until the inventory has
been sold .

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8994 Seminole Blvd. , Suite # 1
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10

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