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······~·································· News Notes v VIDEO POKER GETS ABOOST IN WISCONSIN v NAMCO TO PURCHASE EDISON BROS. ENTERTAINMENT The Wisconsin Joint Committee on Tax Exemptions last month declared that a proposal to legalize video poker in taverns would be "good public policy." The committee includes Gov. Tommy Thompson's Revenue Secretary Mark Bugher. The committee's vote is a major step for this recurring issue which must now be approved by the state Assembly's Special Gambling Oversight Committee. The proposed legislation must also go before the full Assembly and state Senate. And the revenue department has estimated that video poker could result in the loss of $21 million in state sales tax revenue because the games would be exempt. While Thompson has said he believes video poker is probably unconstitutional, the local press has said this current move could give the governor more leverage in renegotiating contracts with Wisconsin's Indian casinos. Wisconsin Attorney General Jim Doyle has also said that video poker is unconstitutional. Doyle, who has accused legislators of using the issue to raise campaign funds, said the only way video poker could be legalized is a constitutional referendum. A 1993 vote that prohibited the expansion of gambling passed two to one. St. Louis, Mo.-based Edison Brothers Stores Inc. announced late last month that it had entered into a definitive purchase agreement with Namco Cybertainment Inc., a wholly owned subsidiary of Namco Ltd. of Tokyo, Japan, to sell the assets and selected stores of Edison Brothers Mall Entertainment and Horizon Entertainment. The sale of Edison's entertainment divisions, which operate approximately 128 game rooms and larger entertainment centers, is subject to approval by the U.S. Bankruptcy Court in Wilmington, Del. A hearing was scheduled for Jan. 30. "We are pleased with the agreement we have reached with Namco," said senior executive vice president Peter Edison. "The completion of the sale will allow us to focus our attention on our core footwear and apparel business and move forward with the company's other restructuring initiatives." v AMOA RESPONDS TO NEW CIGARETTE REGULATIONS On Jan. 18, the Substance Abuse and Mental Health Service Administration released regulations that would give states, not the Food and Drug Administration (FDA) and federal government, the right to decide restrictions on cigarette sales to minors. Last fall the FDA issued a controversial proposal on the subject which called for a federal ban on cigarette sales through vending machines. AMOA representatives concurred with Senator Wendell Ford's (D-Ky.) assessment that SAMHSA's pending regulation is a more reasonable approach to the issue as it allows states to make decisions about the regulation of sales through vending machines. Cigarette vending machines owners, who have a long history of supporting age restrictions for use of the machines, have been vehemently opposed to the proposed FDA regulations. AMOA adopted policy statements several years ago calling for restricting the use of cigarette vending machines to locations that require patrons to be over 18 years of age and/or where the machines utilize lock-out devices. Legislation to this effect is already in place in many states and has proven effective. v MERIT OFFERS NEW GAME SOFTWARE Merit Industries announces a free software update for all Megatouch II touch screen video games which will add the hot new card game 11-UP to the game menu. According to Dave Myers, Merit vice president of sales and marketing: "Operators have shown us a lot of support and loyalty during the past couple of years. We wanted to show our appreciation by giving them something that would really make a difference on their route, and saw a free update for II-UP, a proven, high-earning game, as the best way for us to say thanks." Call Merit's sales department (800) 523-2760; ask for Kim or Markia. Give the serial number of one Megatouch II game and the company will send two free upgrade kits. v JUKEBOX LICENSE FEES RISE SLIGHTLY FOR '96 The Jukebox License Office has released the jukebox license fees for 1996, which are 1.0280 percent higher than in 1995 (adjustment based on the consumer price index). Fees are: first jukebox--$302; second through lOth--$57; 11th and above--$48. The revised rate schedule will be mailed to all jukebox operators who obtained agreements in 1995. The JLO is available to answer questions at (800) 955-5853 or (212) 581-0190. v WILLIAMS TO ADDRESS HARD DRIVES Tom Cahill, technical services manager for Williams Electronic Games, will be presenting a technical discussion of hard drives in the technical section of Play Meter's March issue. Hard drives are quickly becoming standard issue in video games because of their capacity to store mass quantities of information. They require special care, however, because they are sensitive to rough handling and electrostatic discharge. Tom will discuss the handling, installing, and transporting of hard drives in detail. V' YOU HEARD IT ON THE RADIO AAMA is about to launch a radio advertising campaign to be tested in the Minneapolis area March 1-31 as part of an overall program to promote the coin-op entertainment industry. The program is under the guidance of Industry Promotion Committee cochairmen Marty Glazman of Williams Bally/ Midway and Dick Shelton of Valley Recreation Products. During the radio campaign over 1,000 locations in the state will be promoting the Great Amusement Giveaway. The grand prize winner, drawn at random from entries at the locations, will receive a coin-op game (pinball, dart board, or pool table). Small first prizes will be awarded in each region. v GRAND JURIES LOOK AT I.A. POKER CASES While grand juries in New Orleans and Baton Rouge investigate an alleged scheme by truck stop owners to influence Louisiana legislators on a 1995 local option gaming vote, a number of anti-gambling legislators and a new governor have taken office. A special session to offer voters a choice on all forms of gambling is on the way. Gov. Mike Foster's Commissioner of Administration Mark Drennen has told local media that the state can survive without video poker. On the other hand, Drennen said, the loss of riverboat gambling revenue could create budgetary problems. Reaction has been different at the local level, with a number of parishes and municipalities expressing fear that the loss of video poker could create a revenue shortfall for those communities. Foster reportedly intends to let voters cast one vote on all forms of gambling (land-based casino, riverboat gaming, and video poker), instead of separate votes on each. PLAY METER v SHOP ONLINE FOR COIN-OP EQUIPMENT Southcoast Amusement and Vending Exchange is the first and only Internet-based barter network devoted to the coin-op industry. Through the Internet, members worldwide may participate in bartering new, used, or obsolete inventory for goods and services throughout the United States. The program is available on the 'Net at http://adventurecom.com/ SAVE or call (504) 482-2121. 3 FEBRUARY 1996