Marketplace

MARKETPLACE
PAGE 35, APRIL 30, 1975
.........
9
~.
Nevada's Gaming Control Board reported 15% gain in gaming last quarter of '74 is con-
tinuing. Both Las Vegas and Reno report crowded hotels and casinos. Big Vegas hotels are
90% occupied. Additional 15 casinos expected to open in Nevada this year •••• Pong games
on Continental Airlines for coach passengers in its DC-10s were expected to be placed in
operation la.st week of this past month •••• Ca.rd tables in taverns as well as commer-
cial bingo became legal by voter referendum in Va.ncouver,Wa.sh., and were licensed by the
Wash.State Gambling Commission. Slots were rejected by voters. City gets 10% gross from
card tables and 7% cut from bingo games •••• Mexico is trying to cut out Coke and Pepsi
and other foreign soft drinks bottlers by offering big tax rebates to bottlers who are
100% Mexican owned and produce only Mexican soft drinks.
Do not believe ugly rumor floating about that today's 3 U.S. jukebox mfrs may become
2 befo~e end of year. No basis in fact from what could be ascertained after talking with
execs of jukebox factories •••• Harsh debt collection methods are bringing legal action
by FTC (Federal Trade Comm.) Especially for those who fail to serve debtor with notice
of a lawsuit and then sue him •••• If you sell your business and promise not to compete
with the buyer in a certain area, instead of capital gains deal this can result in ordi-
nary income. The U.S.Tax Court so ruled in case where specific payment by the buyer to
the se ler was for such a promise without any coercion. The payment for the business be-
came ordinary income for tax purposes •••• Very few will be going to the British coin-
show next year. There's a crackdown under way on all expenses for overseas conventions.
Federal gov't agency, General Services Administration, Atlanta,Ga., uses United Par-
cel Service instead of U.S.Postal Service. Claims UPS gives "better service at cheaper
rates" •••• Even Uncle now admits average family pays 23% more taxes and that affluent
families pay from 25% to JOfo more taxes.
The TV playback video disks which have created so much press publicity since '72 are
now heating up with N.V.Philips and MCA in one corner and RCA in the other corner in U.S.
The idea that these disks can give a certain number of minutes of entertainment via home
TV receivers is not new. Decca Records Co.,Ltd. of London and A.E.G.Telefunken of Germany
have developed the T.E.D. system which is being marketed in Europe at about ~650 for the
player unit and about ~4.50 for each disk. So far the plan of all these firms is to win
out ov~r regular TV broadcast ~nterta.inment. (There isn't, as yet, any development here
that effects the jukebox. There may be an entertainment tie in with today's video games.
This could lead to a new type machine. As of this moment, all this talky-talk reminds of
the sensation created by "Mills Panoram" in 1939. All know what resulted in that case.)
Now that the new tax bill has become law many changes a.head for small businessmen.
First comes the lower tax on profits under $50,000. Operators should refigure, with the
help of their accountants, best combination of salary and profits as to which will pro-
duce lowest taxes. Very important - the 10% investment credit on purchases of new equip't.
Just as important, the same 10% investment credit applies to purchases of used equip't up
to $100,000. (Can prove tremendous money savers for all operators.) ••• Brunswick Corp.,
Skokie,Ill., expects profit to fall first half of '75 with possible drop for full year.
High interest costs, lower earnings from a joint Japanese venture and other recession
factors a.re indicated as the reasons.
Midway's Andy Ducay, Bally's Tom Ha.ta and Dick Linkens reported most highly success-
ful "Service Seminar", March 20, 21, held at Ed Shaffer's Shaffer Distributing Company,
Columbus,O •••• Vendo reported net loss of over $2.9 million on sales of over S88.3
million for 1974 •••• Inflation at present galloping at rate of 11.1% according to U.S.
Labor Dept's Bureau of Labor Statistics. Drop of possibly 3% to.5% pr~dicted by som~ of
the economists by end of this year. This would be due to recession which has cut prices
of many materials and components. Other economists mai~tain inflation to continue to.
gallop in double digits for the rest of the year even if recovery takes r,1ac~ later in
the Pa l l of the year than expected •••• Rush your news to "'ih.at's News? Write now to:
Marketplace, 185 N. Wabash Ave., Chicago, Ill. 60601.