Play Meter
Issue: 1981 March 01 - Vol 7 Num 4 - Page 1
UPDATE EDITION
March 1, 1981
Volume 7, Nu mber 4
Bally wins N.J. license bout
Bally Manufacturing Corp . and
Bally's Park Place, Inc . have been
granted their contested licenses to
sell gaming equipment in Atlantic
City, New Jersey and to operate
their hoteV casino on the Boardwalk.
The state's gaming enforcement
division in the fall of 1980 had
recommended denial of a permanent
license for Bally , wh ic h has a
$300 ,000 investment in its 83 percent
owned facility , Park Place. Bally
officials had stated, however, they
were confident that alfegations
shadowing the permit would not be
sustained.
Robert E. Mullane , chairman and
president of Bally Manufacturing,
announced on December 29- the
day its temporary casino permit
expired- that the five -member New
Jersey Casino Control Commission
had unanimously voted to grant
licenses to Bally and Park Place.
The New Jersey gaming licenses
were granted after William T .
O 'Donnell, former chairman of
Bally's Park Place and chairman and
president of Bally Manufacturing
Corp., agreed to submit an escrow
agreement covering prospective
dividends and interest and , by
February 2, a reasonable plan for
divestitu re of his stock in both
companies, to take effect after
disposition of all appeals by
O'Donnell.
As part of the agreement , Bally
would not employ O'Donnell until
any further order of the Commission.
He had, in December of 1979, agreed
to step down from his positions with
the two companies and to place his
stock in them in separate voting
trusts until his applications for
qualification were finally adjudicated.
Under the licensing grant of
December 1980, these voting trusts
will also continue in effect.
Mullane stated Bally's confidence
that " the good character and
integrity of Bill O 'Donnell will be
vindicated in further proceedings."
In a statement of his own ,
O'Donnell said: " ! am disappointed
by the Commission's decision .
When we made the decision to enter
Atlantic City, I was fully aware that I
would be subjected to an exhaustive
investigation into my background. It
was primarily my belief in Atlantic
City and my personal efforts that
lead Bally Manufacturing and Bally's
Park Place to invest in excess of$300
million in Atlantic City."
Mullane said , "On behalf of Bally,
its 65 ,000 shareholders and 10,000
Coin-op
employees, we are extremely
pleased that the commission has
found Bally suitable for being
granted a plenary license to operate
its Park Place Hotel and Casino in
Atlantic City, as well as to continue
to sell slot machines and other coin-
operated games to other hoteV
casinos which might open in Atlantic
City."
The grant of the licenses came
under "what has been termed the
toughest gaming legislation in the
world ," said Mullane. "! plan to fully
coordinate the operation of our hotel
and casino complex with the
Continued on page 2
~raiders' in
The city council in O akland,
California, passed an ordinance in
December placing a three ~ month
moratorium on granting permits for
new locations offering " coin -
operated mechanical amusement or
skill devices and operations (such as
pinball machines, pool tables , and
electronic video games) in the city of
Oakland."
The ordinance grew out of a
confused proposal that would have
required licenses for existing coin-op
businesses although it provided for
no licensing procedures . The
proposal also would have prohibited
minors from playing pinball, video
games, or pool in the city- and came
after some parents complained to
the council that their children were
cutting school to play the games or
were being exposed to illegal
activities in some arcades.
Attorney Marvin Ellenbe rg,
representing Oakland Ciga rette
Oakland
Company pointed out to the council
that since the series of ordinances in
the proposal were passed as
"urgency measures," there was no
notification to the industry and no
opportunity to respond.
He argued with the council that
the industry should have input into
the ordinance "before they put
everybody out of business."
The 90-day moratorium period will
be used to study the entire situation
and for the council to receive
industry feedback .
- by Mary Clair Blakeman
[Editor's Note: PLAY METER is
interested in hearing the uiews of
operators affected by the Oakland
ordinance and similar legislation
across the nation. Information on
present and past ordinances in the
Bay area and elsewher may be
particularly helpful to other coin
machine operators - uendors
included.]
March 1, 1981
Volume 7, Nu mber 4
Bally wins N.J. license bout
Bally Manufacturing Corp . and
Bally's Park Place, Inc . have been
granted their contested licenses to
sell gaming equipment in Atlantic
City, New Jersey and to operate
their hoteV casino on the Boardwalk.
The state's gaming enforcement
division in the fall of 1980 had
recommended denial of a permanent
license for Bally , wh ic h has a
$300 ,000 investment in its 83 percent
owned facility , Park Place. Bally
officials had stated, however, they
were confident that alfegations
shadowing the permit would not be
sustained.
Robert E. Mullane , chairman and
president of Bally Manufacturing,
announced on December 29- the
day its temporary casino permit
expired- that the five -member New
Jersey Casino Control Commission
had unanimously voted to grant
licenses to Bally and Park Place.
The New Jersey gaming licenses
were granted after William T .
O 'Donnell, former chairman of
Bally's Park Place and chairman and
president of Bally Manufacturing
Corp., agreed to submit an escrow
agreement covering prospective
dividends and interest and , by
February 2, a reasonable plan for
divestitu re of his stock in both
companies, to take effect after
disposition of all appeals by
O'Donnell.
As part of the agreement , Bally
would not employ O'Donnell until
any further order of the Commission.
He had, in December of 1979, agreed
to step down from his positions with
the two companies and to place his
stock in them in separate voting
trusts until his applications for
qualification were finally adjudicated.
Under the licensing grant of
December 1980, these voting trusts
will also continue in effect.
Mullane stated Bally's confidence
that " the good character and
integrity of Bill O 'Donnell will be
vindicated in further proceedings."
In a statement of his own ,
O'Donnell said: " ! am disappointed
by the Commission's decision .
When we made the decision to enter
Atlantic City, I was fully aware that I
would be subjected to an exhaustive
investigation into my background. It
was primarily my belief in Atlantic
City and my personal efforts that
lead Bally Manufacturing and Bally's
Park Place to invest in excess of$300
million in Atlantic City."
Mullane said , "On behalf of Bally,
its 65 ,000 shareholders and 10,000
Coin-op
employees, we are extremely
pleased that the commission has
found Bally suitable for being
granted a plenary license to operate
its Park Place Hotel and Casino in
Atlantic City, as well as to continue
to sell slot machines and other coin-
operated games to other hoteV
casinos which might open in Atlantic
City."
The grant of the licenses came
under "what has been termed the
toughest gaming legislation in the
world ," said Mullane. "! plan to fully
coordinate the operation of our hotel
and casino complex with the
Continued on page 2
~raiders' in
The city council in O akland,
California, passed an ordinance in
December placing a three ~ month
moratorium on granting permits for
new locations offering " coin -
operated mechanical amusement or
skill devices and operations (such as
pinball machines, pool tables , and
electronic video games) in the city of
Oakland."
The ordinance grew out of a
confused proposal that would have
required licenses for existing coin-op
businesses although it provided for
no licensing procedures . The
proposal also would have prohibited
minors from playing pinball, video
games, or pool in the city- and came
after some parents complained to
the council that their children were
cutting school to play the games or
were being exposed to illegal
activities in some arcades.
Attorney Marvin Ellenbe rg,
representing Oakland Ciga rette
Oakland
Company pointed out to the council
that since the series of ordinances in
the proposal were passed as
"urgency measures," there was no
notification to the industry and no
opportunity to respond.
He argued with the council that
the industry should have input into
the ordinance "before they put
everybody out of business."
The 90-day moratorium period will
be used to study the entire situation
and for the council to receive
industry feedback .
- by Mary Clair Blakeman
[Editor's Note: PLAY METER is
interested in hearing the uiews of
operators affected by the Oakland
ordinance and similar legislation
across the nation. Information on
present and past ordinances in the
Bay area and elsewher may be
particularly helpful to other coin
machine operators - uendors
included.]
Future scanning projects are planned by the International Arcade Museum Library (IAML).