Play Meter

•••••••••••••••••••••••••••••••••••••• The AOE-AGMA Lawsuit Rufus King, Play Meter's legal counsel, explains ••••••••••••••••••••••••••••••••••••• I t now appears that Play Meter and its partner, Conference Management Corporation, (Joint Venture, Inc.-JVI ), will be compelled to go all the way in defending their 1984 show from the Amusement Game Manufacturers Association and Amusement and Vending Machine Distributors Association's attack on it, either by seeking an injunction again, or claiming treble damages, or both. When preliminary negotiations failed last summer, leaving only two choices, stand by and risk seeing AOE destroyed, or fight, the partners elected to fight. Once committed, against such powerful adversaries who had struck without warning and offered no quarter, there was no alternative but to hit back as hard as possible. The lawsuit filed in federal court in Virginia on September 22, against AGMA and AVMDA and their officers and directors, pulled no punches. If ASI was not enjoined, its sponsors faced a claim for three times the damages actually caused to AOE (unless AOE, with operator support, turns out to be a total success anyway), plus, possibly, exemplary damages and other long-term relief against the two associations, their individual officer- and directordefendants, and even the associations' manufacturer and distributor members. But no one in the Play Meter camp wanted that. It was hoped some compromise settlement could at least be discussed while everyone was in New Orleans for the AMOA Show, but AGMA refused to meet with AOE spokesmen. The aim was some arrangement, such as combining the 1984 shows, which could have avoided the forthcoming battle. But time has run out, and neither Play Meter nor JVI can change the course of events by themselves. Background of the Suit 8 A few years ago, when Gary Stern area video card and casino games and William O'Donnell Jr. began beginning to appear. The Millspromoting the idea of a manufac- Jennings case in Ohio, an early turers' association for the amuse- triumph for the Ohio Music and ment-game industry, Play Meter Amusement Association, was also a •••••••••••••••••••••••••••••••••••••••• ult should not really have been such a surprise that AGMA would try to take over operator oriented AOE.'' /t was hoped some compromise settlement could at least be discussed... but AGMA refused to meet with AOE spokesmen. general enthusiasm. AMOA had always been primarily concerned with music operators' problems, and leadership in the games field came haphazardly from a few strong manufacturers, a few independent distributors and operators, and a handful of effective state associations. There had long been a classic split in the industry, Bally on one side pushing "gray area" bingos, and Gottlieb, with Williams, then Stern, and then, briefly, Atari on the other, defending the amusement-only concept and image. (Gary Stern tells his father's story of a showdown 40 years ago between Dave Gottlieb and Herb Jones of Bally. Gottlieb proposed that a then-new industry association take a stand against gambling, and Jones rose, seconded the proposal, and walked out, never to return.) By 1980 the bingos had been driven out everywhere except from a few isolated pockets like Tennessee, South Carolina, and parts of Maryland, and all the majors except Bally were joined in resisting the spread of the new generation of gray facturers , who intervened in the case to support the Ohio attorney general. (Play M eter readers will remember that this publication, since its first issue in 1974, has spoken for amusement operators, and, while not opposing legalized gambling, has consistently resisted all those in the industry who would damage the amusement-only image by confusing, defying, or corrupting law enforcement in order to run illegal gray area devices. ) AGMA was first named ADMA (Amusement Device Manufacturers Association), and one reason was that its founders wanted to welcome companies like Bally and (at that time) Williams, who had legitimate slot machine products i.e., "devices," openly aimed at Nevada, Puerto Rico, Atlantic City, and foreign markets . The original ADMA position on gambling was that it would take no stand on legalizing casinos, lotteries, charity events, etc., preserving its options on gray area issues and illegal operations, and admitting anyone who had at least some amusement-only products. 11 JJ •••••••••••••••••••••••••••••••••••••••• joined wholeheartedly in the victory for seven leading U.S. manu- PLAY METER. February 15, 1984