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http://www.news-sentinel.com/news/local-news/2017/10/24/kevin-leininger-its-a-gamble-but-indiana-should-look-at-legalizing-video-gaming/
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Just 1,200 people live in Monroeville, and back in 2006 it almost seemed as though there was an illegal gambling machine for each of them.“Cherry Masters” and similar devices were in a gas station, the Pour House tavern and even a supposedly vacant grocery store, and one employee of the ersatz casino no doubt was correct when she assured me there were at least“50 places in Allen County just like this.”
Those days are long gone, thanks to stepped-up law enforcement, but veterans groups, bars and others hurt by the crackdown are hoping to go back to the future with the help of a predictable advocate that will be in Fort Wayne Wednesday to plead its case.
“This could generate $165 million per year in taxes for state and local governments,” predicted Kim Pugh of the Indiana Amusement & Music Operations Association, which represents about 34 coin-operated vending companies statewide. In addition to taxes, video gaming could also generate hundreds of millions of dollars for small business — which no doubt is why representatives of the liquor industry, bowling centers, bars and truck stops will be at VFW Post 857 at 3 p.m. Wednesday to urge Hoosier legislators to do in 2018 what they did not do this year: legalize video gambling.
Success would come as very good news to members of Post 857, which built its facility at 2202 W. Main St. with revenues from 11 illegal machines that used to line the walls — an absence that has been keenly felt in the form of lost income and patronage.
“We’re paying our bills, but we don’t have as much money to donate to charity (such as youth sports),” Commander Bob Beason said. “We have a lot of older members who can’t go out of town (to gamble), and some stopped coming in. The state just increased the gas tax, but (gaming taxes) are voluntary and could fix roads and bridges. Why is the state so reluctant?”
Post 857 Canteen Officer Tom Douglass figures the question was mostly rhetorical, but he answered it anyway.
“The casinos have a lot of money,” he said.
Cynical, perhaps, but possibly also true. If the state allows relatively low-cost video gaming in bars and other over-21 businesses, owners who have invested millions in casinos — no doubt lured by the state’s promise of limiting competition — could lose lots of money. So, for that matter, could the state’s own lottery. In other words, a lot of people have a lot of very good reasons to hope Pugh’s organization fails in its legalization attempt again this year.
But this is an issue that deserves serious consideration, because it epitomizes the danger of government “picking winners are losers.” It’s no secret many bars and service organization have been hurt or have even closed because they could not weather the loss of gambling revenue. But as I mentioned, casino owners have invested heavily under one set of rules and could properly question whether it would be fair to change the rules of the game now. A good argument could be made either way, although my preference would be to allow licensed video gaming, as former Mayor and State Rep. Win Moses proposed in 2006 when it was estimated there were as many as 30,000 illegal machines in use statewide.
That’s not an endorsement of gambling, just an acknowledgement that the lottery and proliferation of casinos has rendered any moral opposition to legalized gambling moot. Is playing a penny machine at the VFW really more dangerous to society than gambling at a casino or buying a lottery ticket?
Back in 2009, as you may recall, studies indicated a casino in Fort Wayne could generate $244 million in annual revenue, $44 million in gaming taxes and support more than 2,280 jobs. But another study by IPFW’s Community Research Institute cautioned a casino could promote“pathological” gambling among a small percentage of the population. Mayor Tom Henry asked the Legislature to allow voters to decide the issue, but the referendum never happened and, given the increasingly saturated casino market, it’s probably just as well.
Video gambling is something else entirely, and deserves a thorough and impartial review. Beason hopes Wednesday’s event will energize supporters who will encourage lawmakers to “get off their dead (seats) and get it done. With penny machines, it’s not like we’d be taking anybody’s pension away.”
This column is the commentary of the writer and does not necessarily reflect the views or opinions of The News-Sentinel. Email Kevin Leininger at kleininger@news-sentinel.com or call him at 461-8355.
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