Play Meter

Issue: 1989 December - Vol 15 Num 12

NEWS BULLETIN
• At the behest of AMOA president Jack Kerner,
representatives of every association connected with
the vending industry met in Washington, D.C., on
Nov. 8 to discuss the 1990 Washington Conference,
set for April 29-May 1. Present at the meeting were
Kerner and Wally Bohrer of AMOA, Bob Fay and
Alan Stone of AAMA, James Rost of NAMA, and
Morris "Ti ny" Weintraub of CVIC. Representing the
Tobacco Institute were Jack Regan and Larry
Schreiber of R.J. Reynolds and lrv Otte of Brown
and Williamson .
"I called the meeting because I feel it's important
that we go to Washington as one united industry,"
Kerner said . "Everything went great; each associa-
tion voiced its concerns and hopes for the industry. I
think it was the first time that all the different associa-
tions sat down and broke bread together. Some
have committed to attending the Washington Con-
ference already, like AAMA and the Tobacco Insti-
tute. The others may or may not send a group there .
But either way, it's a promising start to having a truly
united industry."
• Rowe International celebrated the 1 OOth anni-
versary of the jukebox in a unique manner on Nov.
15 and 16. Officials of Rowe's home office in Whip-
pany, N.J., joined with those of the Grand Rapids,
Mich., manufacturing facility in welcoming members
of the Amusement and Music Operators Association
(AMOA) Jukebox Promotion Committee and other
guests for an unprecedented tour of the assembly
plant and grand opening of the Rowe Jukebox Mu-
seum .
Rowe's Grand Rapids plant is staffed by an un-
usually large number of long-term employees, with
years of service ranging anywhere from four to 42
years. All were extremely cooperative in explaining
their particular job responsibilities . They are also
proud of their contribution to the final products: high-
quality jukeboxes, bill changers and acceptors.
Look for complete coverage of this special event
in our January issue, with many photos along the
assembly line and a nostalgic look into the past
history of quality music machines-dating back to
1934.
• The coin-operated amusement industry-and
video games, specifically-will get an image boost
from Hollywood on Dec. 15. That's the date set for
the nationwide premiere of "The Wizard, " a film
starring Fred Savage of TV's "The Wonder Years."
Produced by Pipeline Productions and released
through Universal Studios, "The Wizard" is an in-
spirational story that follows a traumatized child's
transformation into a confident teenage hero.
Twelve-year-old Jimmy is a withdrawn boy who is
forever trying to run away from home with one posses-
sion: his lunch pail. The only one who truly unde-
rstands him is his 13-year-old brother Corey, an outgo-
ing, self-reliant youth. After Jimmy is placed in an
institution, Corey becomes distraught and decides to
free his brother. Together they flee to California, where
they meet up with a companion, a 12-year-old girl
narned Haley.
As the trio travel along the road, they always stop
in an arcade to play video games. Jimmy, it is re-
vealed, is quite a "wizard" of a player. Haley de-
cides that Jimmy must enter the National Video
Championships in Los Angeles, which offers a
grand prize of $50,000.
At the very end ... no, we won 't spoil it for you!
Suffice it to say that the mystery of why Jimmy car-
ries a lunch pail everywhere-and why he's been
living in a shell-is solved by movie's end.
The good news for those of us in the industry is
that "The Wizard" portrays video games as a posi-
tive force in children's lives, not a harmful activity for
juvenile delinquents. "This movie will really boost
the video arcade industry," said Craig Lazar of the
firm Wallen Green Direct. They are handling the
direct marketing and merchandising activities in
conjunction with "The Wizard ." Continued Lazar,
"Fred Savage is extremely popular among kids. He
will demonstrate that playing video games is a posi-
tive activity that builds self-esteem ."
A " collectibles" program designed by Universal
Studios, with assistance from Lazar's firm, will ac-
company the film. Wallen Green Direct plans to dis-
tribute a small catalog filled with ''Wizard'' merchan-
dise, including T-shirts, lunch boxes, pins, stickers,
baseball caps, arcade change cases (for the play-
ers' quarters), and a poster featuring Savage.
Though plans haven't been finalized, it's likely that
the brochures will be circulated throughout arcades
and stores where home video games are sold.
• Donald Wall of Amusement Inc. in Nashville,
Tenn., was elected the new president of the Amuse-
ment Operators of Tennessee (AMOT) on Oct. 31 .
The special election was held in the wake of former
president Phil Dollar's tragic death; he died in a
plane crash on Oct. 18.
• Play Meter extends its deepest sympathies to
the family of George Kane Sr., 69, who passed away
in Tampa, Florida, on Oct. 28. According to Kane's
wife Marisa, the couple ventured into the coin-op
business as a mere hobby in 1960. That was in
Jacksonville, Fla., and over the years they and their
son George Kane Jr. operated and distributed in
Florida, Mississippi, and briefly in Louisiana.
George Jr. continues to operate in Hattiesburg.
• Operators in Los Angeles County have been
rocked with a large increase in their game license
fees, a move that got lost in the workings of gov-
ernment bureaucracy. David Jackson of Pachinko
Palace, who's also president of the Amusement As-
sociation of California (AAC), says the fee was put
through with a bunch of other business license fee
December 1989/ PLA Y METER 3
NEWS BULLETIN
increases in the county (barbershops, movie thea-
ters, etc.). Therefore, operators weren't prepared for
the Oct. 10 hike.
Under the new ordinance-which only applies to
unincorporated areas within the county-operators
must pay $251 for every game or jukebox for the first
year and $169 per machine to renew. The previous
renewal fee was $68 per game. Also, new game ar-
cades pay $1 ,464 for the first year, renewing at
$199.
"The law says that business licenses are sup-
posed to be revenue-neutral, not revenue-generat-
ing," Jackson explained . "I don't think the commis-
sioners who voted realized that operators might
have four to six new games per location. I know it
doesn't cost the county that much to license that one
location; they cannot justify these charges. I believe
they reviewed business fees in other counties and
figured they could raise them $100 across the board.
The problem is they didn't compare the license fees
for video games in those counties."
In Alameda County, for example, operators pay a
flat fee of $60 per amusement device. Clark County
has a $50 fee for the first 25 machines, with a $2
charge for any subsequent ones . San Diego County
levies a $30 fee per machine, plus $4 per employee.
AAC has retained David Hagen from the law firm
of Merritt and Hagen; he'll serve as legal coordinator
for the association's efforts.
" Even though it's already been enacted, we're
setting up appointments with the individual commis-
sioners to see if we can do something about it,"
Jackson said. " I'm not personally affected, because
I don 't operate in any unincorporated areas in Los
Angeles County. But if I and other operators ignore
it, something similar could pass that may hit us
where we do operate. Besides, this is an ideal issue
for an association to tackle.''
• California isn't the only state with license fee
woes. Operators in the city of Baltimore, Md., were
socked with a $150 increase in October; it went from
$300 per machine to $450.
" The city council is always trying to scratch up
some tax money, and again, they seem to think
we're a nice, easy target,'' said T.P. Foley, president
of the Maryland Amusement Operators Association
(MAOA). "It was one of those midnight, hurry-up
deals; we were caught off-guard. A number of Balti-
more operators are screaming about it. They're hav-
ing to auction off a lot of their games because they
can't afford the fees. And in the long run, the city is
going to end up losing money with less machines out
there."
Foley added that MAOA is trying hard to have the
fee increase rescinded, but he realizes that once a
tax is enacted, doing so is a difficult task.
Said J.P. Schumacker of Fair Lanes Inc. in Balti-
more, "This is quite a significant problem for the
operator and the customer. It severely curtails our
ability to purchase new equipment, so we in the
Baltimore market are put at a d isadvantage. It's like
hitting us with a sin tax similar to cigarettes and
alcohol. Why lump video games in with those two? If
they want to enact controls on video games, do so.
But don't try to get at us through big, unfair fee
hikes."
• Operators have until Dec. 29 to donate games to
their local Ronald McDonald House, as that is the
closing date for the AAMAIAMOA-sponsored pro-
gram. The coin-op industry has brought joy to fami-
lies of sick children during 1989, donating or pledg-
ing to donate equipment to over 75 houses nation-
wide. But there are still those seeking equipment
who haven't been contacted by local operators.
Those interested in this worthwhile project can call
Jim Stansfield at (608) 782-7181 .
• A federal judge has issued a preliminary injunc-
tion to halt the misappropriation of Nintendo game
products by Jackson, Miss.-based Larry and Charlie
Game Sales and its principal , Larry Macaluso. The
company had been accused by Nintendo of copyr-
ight and trademark infringement, based on their
alteration and sale of Nintendo Entertainment Sys-
tem (NES) products as coin-operated video games.
The judge deemed this to be in violation of Ninten-
do's exclusive copyright and trademark interests.
According to the complaint, Larry and Charlie
Game Sales unlawfully modified NES console units
for use as coin-op video games, then sold such
systems under the trade name " Video Master II. "
The injunction bars the defendants from selling any
NES hardware or software as a part of any coin-op
video games. It also prohibits them from selling any
video game under the " Video Master II" name.
"We are pleased with the outcome of this action,''
said Howard Lincoln, Nintendo's senior vice presi-
dent. "We will continue discovery in this case to
determine damages due Nintendo and to identify
and halt the use of any of these illegal products that -
may have already reached the marketplace."
PLAY METER, December, 1989. Volume 15, No. 12. Copyright 1989 by Skybird Publishing Company. PLAY METER (ISSN 0162-1343) (UPS
358-350) is published once monthly on the 1st of the month. Publishing office: 6600 Fleur De Lis, New Orleans, LA 70124; MAILING ADDRESS
P .0. Box 24970, New Orleans, LA 70184, U.S.A.; phone: 504/488-7003; FAX 504/488· 7083. For Subscriptions: 504/488-7003. Subscription rates:
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EXPRESS PERMISSION. The editors are not responsible for unsolicited manuscripts. PLAY METER buys ALL RIGHTS, unless otherwise
specified, to accepted manuscripts, cartoons, art work, and photographs. Second-class postage paid at New Orleans, LA 70113 and additional
mailing offices. POSTMASTER Send Form 3579 to Play Meter, P .0. Box 24970, New Orleans, LA 70184.
4 PLAY METER/December 1989

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