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NEWS BULLETIN When does it stop being fun and not being worth our while? That depends on each operator's debt load, overh~ad, an.ct financial infrastructure. Maybe the common denominator is 40 percent, but I can't imagine any operator wanting to give away that much to the state." The problems that exist in Louisiana's video poker industry aren't at the street level, he believes. "If that's where they were I'd say, 'Let's start here and clean things up,' but that isn't the case," Goudeau concluded. "The negative publicity is coming primarily from the truck st?ps. The vide.o poker industry was conceived on a level playmg field, but it doesn't appear level any more. There's been favoritism shown toward the truck stops at the expense of street operations. But one thing is for sure: there will be som~ video poker-related activity at this legislative session." GAME TROUBLES IN MEXICO It appears the United States and Mexico .are e~broiled i.n a battle over product testing-and the com-op industry .is being caught in the middle. Judy Gomez Holbro~k of the distributorship Southgate Amusement & Vendmg m San Antonio explained the company's problem. "Mexico's version of UL (Underwriters Laboratory) testing is the NOM, but it's never been enforced," she said. "Now that NAFTA has been passed, Mexico wants to send some electrical components to the United States. Their standards don't meet ours, so some of the products aren't being allowed in. Now they're retaliating by making the United States meet Mexico's standards." In order for a piece of equipment to be allowed across the border, the person buying it has to pay $1,500 for it to be tested in a Mexican lab. A NOM number is then assigned to the piece and must be on all subsequent pieces purchased and tested by the buyer. "We're a full-line distributor that's used to selling containers filled with games into Mexico," Holbrook said. "When you have three 45-foot containers sitting at the bridge, they're not going to pass through. The custom~r doesn't want to spend all that money for testing. He s already spent about $250,000 for the equipment itself." This new policy, which is separate from the NAFTA agreement, went into effect without notice on March 7. "The information was forwarded to the agents on March 7 and went into effect on the same day; there wasn't any time to prepare for this," she said. "Also, as of June 1, all boxes going into Mexico must be labeled in Spanish, and all game manuals have to be written in Spanish. It's really bad." Not surprisingly, Southgate's equipment sales into Mexico have come to a screeching halt. "We had an open house recently, and people came to look at the equipment, but they couldn't buy anything after I informed them of the situation in their country," Holbrook said. "And it's not just our industry; this affects every electrical component going into Mexico-TVs, VCRs, blow dryers, etc. The equipment can stay in the laboratory for up to four weeks before being tested." If your company is experiencing similar problems, contact AAMA executive director Bob Fay at (708) 290-9088. The association has a good relationship with the U.S. Department of Commerce and may be able to help. JACOBS RESIGNS FROM DATA EAST Effective May 15, Paul Jacobs will no longer be executive vice president and general manager of Data East USA. Although he supports the company's plans to consolidate all coin-op tlivision functions in Chicago, Jacobs says he prefers to remai\n in California. "You know, it's funny," he said. "I was one of the very first managens to highly recommend this consolidation as being in the company's best long-term interests. However, what's best for the company as a whole is not necessarily the best for each individual. "It has been a particular pleasure working with Gary Stern, Joe Kaminkow, and all the other highly talented people at Data East. I wish them all the utmost success in the future. As for me, California is home." Jacobs says he's going to take a vacation for a while and then turn his attention to finding another coin-op position. "I have no immediate plans, but I have every intention of remaining in the industry," he concluded. "I've been in it full time for 27 years; this is the business for me. " LAZER-TRON ISSUED PATENT Lazer-Tron was issued a patent on March 8 that covers the combination of a progressive bonus jackpot apparatus linked with multiple skill redemption games. The patent has a potential life of 17 years from the date of issuance. The progressive unit is connected to each of the game units to accumulate a progressive award based upon contributions from the individual units. The award may be won by the player of an individual game when he accomplishes a predetermined task. Lazer-Tron introduced the progressive display with the game Spin to Win and has since incorporated it into Jungle Rama, Spin a 21 , Aftershock, and the latest piece, Shake Rattle & Roll. Matt Kelly, Lazer-Tran's vice president of marketing, says a number of redemption manufacturers are using the patented feature in their games. "We would prefer to license the technology in the patent," he said. "We have a licensing structure in mind that we're going to talk to the other companies about. But if that fails, we will enforce our patent rights." · LA. GOVERNOR WANTS TAX HIKE ON VIDEO POKER Louisiana Gov. Edwin Edwards has asked the Legislature to consider increasing the taxes on video poker machines, which he considers an "insidious form of gambling." The Legislature convened on April 25 to open a fiscal session. In addition to a graduated tax- with the machines that generate the most money paying the highest tax-Edwards called for a limit on the number of machines operating in the state. The purpose, he says, is to reign in the growth of truck stops with the machines. A recent court ruling has resulted in a less stringent definition of what a truck stop is. All that's needed to attain truck stop status-and the ability to place 50 machines-is five acres of land, a diesel pump, and the space to park a couple of 18-wheelers. State and local governments receive about $95 million annually from video poker. The state receives a flat 22.5 percent fee on the machines' revenue. In response to Edwards' comments, David Goudeau of Southland Distributors in Lafayette, La., said: "Video poker is here to stay, and I think the governor realizes that. Look at the amount of money it generates; how are you going to replace that kind of revenue? Before he was calling for repeal, but now he's calling for higher taxes. That's because he knows that video poker isn't going anywhere." Though he and other operators aren't happy about giving the state a bigger piece of the pie, Goudeau realizes there's little that can be done to prevent it. "It's purely speculation at this point as to how far it'll go beyond 22.5 percent," he said. "Personally, I'd hate to see it go above 30 percent. PLAY METER DIVERSIFIED COIN BOUGHT OUT IN MEXICO Video Games Las Vegas, a former joint partner of California-based Diversified Coin Service, has purchased DCS's operations in Cancun, Mexico City, and several other small towns. Raul Mondragon, who served as DCS's vice president of international sales, is president of Video Games Las Vegas. "Our joint venture was very successful, but now it's time for both parties to move on," he said. "Diversified Coin is concentrating on the U.S. market; we'll concentrate on the Mexican market and will continue to do joint ventures with U.S. corporations." Video Games Las Vegas, founded in 1988, was already operating substantial routes before the buyout. The additional routes from DCS gives the company over 700 machines on location. Mondragon can be reached by calling 011 525 760 4981. 1 MAY1 994