International Arcade Museum Library

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Issue: 1982 April 15 - Vol Num - Page 8

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AN OPERATOR STATES HIS CASE: Little cities play 'Big Brother' As told to President Reagan by Gene Beley To the Editor San Gabriel Valley VIEW Section, Los Angeles Times Los Angeles, California Dear Editor: I have been in the amusement game business' for 15 years. After being alarmed by general economics threatening our business the past several years, I am now more shocked by politicians trying to put us out of business. Indeed, 1984 with Big Brother on the video wall monitor is not far away! The Los Ange/es Times' September 27, 1981 article "S. Pasadena Zaps Electronic Games" is an example of how government is continuing to kill free enterprise and erode individual freedoms in our nation. And newspaper reporters always lean on governme ntal sources for information, seldom digging in and getting the business people's in-depth side of the story. The amusement game industry in the West, especially, is still comprised mostly of small business Mom and Pop type companies who buy the games- frequently on time payments from distributors, and split 50/ 50 with the locations leasing the games. Whereas my mother-in-law once joked, "Don't get too big, the Mafia will get you," I have never encountered the Mafia: only city halls. Five years ago, when there was an influx of new people into the business after pinballs were legalized, a similar political climate erupted , and I helped at least three cities, including Pasadena, write fair laws to all parties concerned. At the time, I was previously paying more for' my business license in one community, El Segundo, than Standard Oil Refinery , which the City Council agreed was not right. State Supreme Court rulings at that time made pinball games legal. 8 Today we are fortunate that electronic games have evolved to a much higher intellectual challenging level for young people and adults. These games are providing more preeducation for the computer world they will encounter than the schools are able to offer. Whereas each school today should have a bank of computers in each classroom for the kids to learn basic computer language, budgets prevent it. Thus the kids, especially, turn to game rooms and computer shops. 'My personal v1s1on to establish a Leisure Center could be severely retarded by current (local) politicians enacting over-reactionary laws that retard legitimate computer/game businesses.' I will concede my company has taken the responsibility not to place any of our games in liquor stores. I regret this trend, but still think parents should take more responsibility to police their children, rather than blaming machines. Ever since the California Supreme Court made pinballs legal, forcing city councils like San Marino and others to update their bluenose laws into the 20th Century, these uptight council people have been waiting for revenge. When San Gabriel and other cities pulled the Moratorium on game licenses and, like the Gestapo, closed existing businesses, other city fathers must have grinned and said, "If they can do it, we can too." One thing I have learned is there is no originality among city governments. Any time they do socalled research, it means "Call all the other city halls and see how they handle it." Thus this type of incestuous governing for the people will eventually kill the people. When all else fails, the cities have found they can set a high fee on individual game licenses to make it uneconomical for the game owner to operate-which is just as effective as making them illegal. Thus we have come to know "legislation by eco. " nom1cs. Currently, in Arcadia, I pay $30 per game to the city for license fees , which is exorbitant. Why? Most other businesses pay only $30 for their entire business for a business permit. I have waged this economic battle for years, never dreaming in 1981 we would have to begin fighting a war for our very survival. Although I am paying more than $600 a year for games in just two locations in Arcadia, for my one business, fight ing for the freedom to continue business without governmental interfe rence now takes precedencE::. Since we do operate in many different communities in the San Gabriel Valley, though , the economics involve paying more than $2,000 a year for various business permits and county Personal Property Taxes on our machines. I always shudder whan a newspaper or politician picks out an outstanding location like a pizza parlor and tells how they "bring in about $2,000 a month. " Chances are, a game service company provides the restaurants their games on a lease plan, with free service to the location, in exchange for 50% of the gross. Thus if that good location does get $2,000 a month, the game owner has only $2,000 to pay for about $20,000 in games, gasoline expenses, truck overhead, office, labor, and his own s kyrocketing cost

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