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NEWS ./SOUTH CAROLINA GAMING FACES HURDLES Several recent court rulings in South Carolina may jeopardize the future oflegalized video gaming, which has been plagued by roadblocks since it passed in all but a handful of counties last year. The first decision was handed down by a judge in one of the counties that voted no . In it, he ruled that the county-by-county referendum held last year was in violation of the state constitutional clause prohibiting the passage of certain special legislation on the local level. The suit was brought by operators in counties that voted against the referendum. As a result, enforcement of the referendum has been stayed, at least temporarily allowing previous gaming activities to continue in the counties that voted the measure down. But state association president George Harrison of Darlington Music Co. said ifthat decision is uphe ld by the state Supreme Court it could result in another referendum statewide. "We have local optional sales tax and Sunday sales of alcohol," he explaine d. "Ifthe referendum is declared illegal, they would be illegal as well. But nobody's taken the other issues to court." In another ruling, the state Supreme Court has determined that 8-line machines are not covered under the legal exemptions to gaming. However, Harrison said the court by its own admission did not consider a 1993 state law addressing the issue b ecause the case stemmed from 1991 . "The '93 law was clear that they are included in the exemption," he said, adding that the state is not requiring the machines to be removed until June. "In the meantime we hope we can get something passed by the Legislature that says we can keep them." On other fronts in South Carolina, some state officials say they want to retain an eight-machine limit d espite the fact that last year's referendum reduced that number to five. The reduction will cost the state $8 million annually, some officials have predicte d . There is also a move afoot to raise the licensing fee for five machines from $1 ,5QQ to $2,QQQ and to charge $3,5QQ, $5,QQQ, and $7,5QQ respectively for each additional machine if they are allowed. ./VIDEO GAMING KILLED IN NEW MEXICO Six months after voters approved video lottery in New Mexico, operators are back to square one with little chance of seeing legalized gaming in bars and restaurants this year. The failure of video gaming began early in '95 when the state Supre me Court ruled that the referendum was unconstitutional because it addressed both a paper lottery and video gaming. The state Legislature sealed the envelope this spring by failing to pass a bill authorizing video gaming. New Mexico 's constitution does not expressly prohibit gambling, thus such a move could have been enacted by legislators. "In the last two minutes of the session, the bill died on the floor," explained Ken Anderson of A & B Vending in :p.ortheast Albuquerque. "There has been some talk of a special session because of the referendum." Anderson said he predicts the issue will lay dormant for the year despite pressure from race tracks, which say they are sure to lose money from the paper lot- N 0 TES tery the legislature did enact and casinos being developed by Indian organizations around the state. "It's going to be tough, " noted Anderson. "When the Indians come in, you not only give away the gambling, you give away the b ars, you give away the restaurants. The street operator doesn't have a chance on the reservation. But come next year we 'll be back at the legislature trying to get video gaming in the bars if there are any left." ./WMS GAMING AND BALLY GAMING STRIKE A DEAL On April 18, WMS Industries announced that its wholly owned subsidiary, WMS Gaming Inc. in Chicago, Ill. , has reached an agreement in principle regarding the terms of a merger transaction of Bally Gaming in Las Vegas, Nev., in which shareholders of Bally Gaming will receive Q.6 shares of WMS common stock for each outstanding share of Bally Gaming common stock (about $12 per share on the day of the announcement). The transaction is subject to the completion of due diligence , regulatory approvals , the approvals of the boards of directors and stockholders of both companies, and the execution of a d efinitive merger agreement. The companies expect to reach a final agreem e nt by mid-May. ./MERIT ANNOUNCES FINANCING PROGRAM Merit Industries has launched a factory-assisted prime rate financing program for street operators, effective May 1. Operators need only purchase lQ Megatouch touch screen video games in any configuration Ccountertop, cabaret, or upright) from an authorized Merit distributor. In return, prime rate financing will be available for 12 months. No down payment is required other than freight and tax, and there is no payment due until 6Q days after the purchase. For the name of your nearest distributor, call Merit, (8QQ) 523-276Q. ./GET UP CLOSE AND PERSONAL IN WASHINGTON, D.C. It's time to bring your concerns to the attention of your congressmen in person by participating in the joint legislative conference sponsored by AMOA and AAMA on May 2Q-23. Dollar coin legislation is the number one issue to discuss with members of the 1Q4th Congress as they tackle the budget. Register by calling either AMOA at (SQQ) YES-AMOA or AAMA at(7Q8l29Q-9Q88. ./LAST BUT NOT LEAST Namco-America announces the shipment of its Air Combat 22 dedicated video and the n ewest in its line of motorcycle racing games, Cyber Cycles. Kits to upgrade the original Air Combat will be available soon . Competitive Products has just completed its new amusement game parts and billiard supply catalog. Call (8QQ) 562-7283 or write P.O. Box 1645, Tullytown, PA 19007 . Acclaim Coin-Op Entertainment has selected Mountain View, Calif., for its corporate headquarters, where it expects to locate 50 employees by the end of the year. Tornado Table Soccer's spring tour rolls on with the Masters Open on May 26-29 at the Atlanta Airport Hilton. Call (404) 76790QQ for details ..