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NEWS BULLETIN .,.. JOHNSON WINS PRIVATE LETTER RULING . . . On March .,.. AMOA LAUNCHES JUKEBOX PROMOTION ... New releases 8, AMOA president Craig Johnson received a private letter rul ing from the IRS that allows him to use the income forecasting method for machine depreciation. This represents a major tax victory for not only Johnson and his company, Tataka of Salt Lake City, but operators all across America. "If operators take advantage of the income forecasting method, it could easily mean $50 million in deferred taxes annually," he said. Though the IRS's ruling technically applies to Tataka only (the IRS will not deal with associations), Johnson says that his case is unquestionably precedent-setting . "The IRS maintains that private letter rulings cannot be used as precedents, but every CPA I've talked to has said otherwise. The IRS can't deny that this rul ing will carry a lot of weight for other operators." Johnson added that a seminar will be held in Chicago in late June to bring operators " up to speed " on the issue. An announcement on the site is expected soon . by country music veterans George Jones and Joe Ditty, as well as upcoming pop artists Shawn Colvin and Take That, will be featured in AMOA's ''Jukebox Spring Into Action" promotion this May and June. Sony Nashville, RCA, MCA, and CBS Records are also underwriting the promotion . Coordinating the package for AMOA is Sam Atchley, AMOA's record label liaison. Promotional materials (posters, table tents, title strips) are available from one-stops at no charge. .,.. PIONEER FORMS NEW COMPANY .. . Pioneer Commun ica- the recently named chairman of Sega Enterprises Inc. (USA), said the rumor about Sega purchasing Atari Games is just that-a rumor. " I don't know where these things start," he said. "(Sega's) Mr. Nakayama and (Atari's) Mr. Nakajima are good friends, and maybe someone saw them playing golf together and jumped to conclusions. But there's nothing to that rumor." tions of America Inc. and Pioneer Laser Entertainment Inc. have joined forces to form a single entity, Pioneer New Media Technologies Inc. The new company, headquartered in Long Beach, Calif. , encompasses four divisions: Multimedia Systems, Business Systems, Optical Memory Systems, and Entertainment. The charter of Pioneer New Media Technologies includes the development, marketing , sales, and technical support of LaserJuke CD jukeboxes, CD autochangers, LaserKaraoke entertainment systems, Star Factory karaoke studios, LaserDisc players and pay-per-view systems, CD-ROM mini-changers, and profess ional audio components. In other news concerning Pioneer, all authorized LaserKaraoke dealers are now offering finance packages that require no down payment for entry level buyers, up to $1,000. Larger purchases require 10 percent down. The program is provided through GE Credit, which allows credit terms of up to 36 months. .,.. CAPCOM PROMOTES MORICI .. . Joe Morici has been named .,.. VNEA GEARING UP FOR VEGAS ... The Valley National 8-Ball to the position of senior vice president for Capcom USA's coin-op and consumer divisions. Prior to the promotion he had headed up the consumer side. Morici will essentially be responsible for " making sure that coin-op and consumer mesh properly, that the company is given a consistent look," he said. Morici added that Capcom USA is still in negotiations to move to larger facilities, possibly encompassing 100,000 square feet. "We've grown too big for our present location ," he said. An agreement was expected sometime in mid-May. League Association will stage its 13th International Championships at the Riviera Hotel in Las Vegas on May 29-June 5. A record number of pool players from across the globe are expected, and they will compete for an estimated total cash purse of $200,000. For more information , call Valley at (800) 544-1346. In other pool news, the U.S. Team Open 8-Ball Amateur pool tournament takes place at the Imperial Palace Hotel in Las Vegas on May 25-28; it's open to all jukebox operators' pool teams. Also, the McDermott Masters 9-Ball Professional tournament is coming soon thereafter at the same site on June 1-5. Valley pool players wish ing to see the latter tournament are being offered a special rate; call (800) 832-6287 for more information . .,.. ROBBINS QUELLS SEGAi ATARI RUMOR ... Joe Robbins, .,.. BETSON BUYS ATLAS DISTRIBUTORS ... Betson Coin-Op Distributing Co. Inc. has purchased "certain assets" of Pittsburgh-based Atlas Distributors, according to Joe Cirillo, president of Betson Enterprises. This division of Betson Coin-Op, now known as Betson Pittsburgh , opened on April 26. Much of the Atlas Distributors personnel remains, including general manager Jim Wittler and assistant manager Lou Larson . One of the new faces is division controller Wayne Jones. The new building is located at Z107 W. Carson St., Pittsburgh, PA 15204. The phone numbers are (800) 233-4407 and (412) 331-8703; the FAX is (412) 331-8825. .,.. FORMER LOTTERY DIRECTOR INDICTED ... Elton E. "Butch" Bryan , forme r lottery director for West Virginia, was indicted by a federal grand jury on April 23. Charges include fraud, insider trading, and perjury relating to bids for the expansion of video lottery. At present, video lottery is legal only at Montaineer Park, a horse race track in Chester, W.Va. In November 1992 the Lottery Commission voted to expand video lottery to a statewide program, a move supported by Gov. Gaston Caperton . Controversy quickly arose over the speed and method of implementing the sole-source program (one manufacturer for the central computer system and all games). Questions of improper influences surfaced , one commission member resigned over the sole-source decision on Jan. 20, the governor halted progress on the program on Jan. 21 , and Bryan resigned on Feb. 1 after nearly three years of service. What effect this may have on the future of video lottery in West Virginia is unclear. .,.. ATARI GAMES REDUCES STAFF . .. Atari Games, which recently laid off 25 employees, says the action was taken to make the company more competitive in the marketplace. "Atari Games has been investing heavily into R&D in recent years," explained marketing director Mary Fujihara. " Our strategy was to cut back in some of the support areas that won't affect our R&D." .,.. NO TAX RELIEF IN FLORIDA . .. The Florida Legislature ended its session in early April without passing any legislation that would eliminate the 7.81 percent gross receipts tax. The Florida Amusement and Vending Association (FAVA) and the Family Arcade Alliance (FAA) were pushing for legislation that would replace the gross receipts tax with either a master license plan or a flat machine fee. Neither made it, leaving operators with the gross receipts tax at least until the Legislature convenes again in January (it's unlikely that the issue will be placed on the agenda for the July special session). "We're looking to regroup and come back strong at the next session," said FAVA legislative chairman Manley Lawson. "Our trade show (April 1-3) was very successful ; a lot of our former membership is returning. We've learned from our mistakes and will be stronger and more focused the next time. I'm optimistic about our chances to get that tax repealed." .,.. SEGA TO TEST VIDEO CHANNEL . . . According to The Associated Press, Sega of America, Time Warner Entertainment, and Tele-Communications Inc. have formed a joi nt venture to launch "The Sega Channel," an interactive cable TV providing video games. It will be tested in various markets this fall and could be available to all cable system operators by 1994. Subscribers would have to obtain a Sega Genesis home arcade system and a special tuner-decoder cartridge that would attach to the TV cable. They then could select games and oth er prog ram material from a menu on the TV screen . For a monthly fee, subscribers would have access to a well-stocked and constantly updated library of games. " Virtually every cable operator will be able to offer this exciting hightech service now, without waiting for the new digital cable technologies," said TCI senior vice president Larry Romrell. PLAY METER MAGAZINE, May 1993, Volume 19, No. 6. Copyri ght 1993 by Skybird Publishing Company. PLAY METER MAGAZINE (UPS 358-350) is publ ished monthly, except for the two issues in January. Publishing office: 6600 Fleu r de Lis, New Orleans, LA 70124. MAILING ADDRESS: P.O. Box 24970, New Orleans, LA 70184, USA. Phone: 504/ 488-7003; FAX 504/488-7083. Subscription rates: U.S. and Canada-$60. Advertising rates are available upon request . NO PART OF TH E MAGAZINE MAY BE REPRODUCED WITHOUT EXPRESS PERM ISSION . The editors are not responsible for unsolicited manuscripts. PLAY METER MAGAZINE 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.O. Box 24970, New Orleans, LA 70184. PLAY METER 3 MAY1993