Gambling News by Gambling Headquarters

Legislation aimed at cracking down on illegal gambling -- particularly the
video wagering machines often found in clubs, bars and truck stops -- is
headed to the Senate after the Rules Committee unanimously endorsed it
yesterday. House Bill 1510 would pay for 25 new state excise police officers
dedicated to rooting out illegal gambling and create a special state
prosecutor to try the offenses when local prosecutors decline. The
crackdown's sponsor, Sen. Jim Merritt, R-Indianapolis, said it would "put
some teeth" into efforts to eliminate illegal card clubs and unlawful video
gambling machines. The measure marks the first time in years that lawmakers
have seriously considered something aimed at reducing illegal gambling, in
contrast to bills expanding legal wagering. But even as the committee acted
on HB 1510, negotiations continued to pass separate legislation that would
authorize 3,000 slot machines at Indiana's racetracks. That bill has already
passed the House and Senate in different forms. If the Senate passes HB
1510, it would have to return to the House, which passed a version that
included only changes to charity gambling regulations. Rep. Trent Van
Haaften, D-Mount Vernon and the bill's House sponsor, said yesterday that he
didn't know whether the House would go along with the Senate provisions but
that he found "nothing objectionable" in them. Indiana Gaming Commission
executive director Ernie Yelton assured lawmakers yesterday that if both
bills pass -- and HB 1510 was strictly enforced -- "the totality would be a
decrease in gambling in Indiana." The key, though, would be enforcement.
Indiana's estimated 30,000 video gambling machines -- which have names like
Cherry Master and Pot O' Gold -- are illegal. State excise police routinely
bust bars, restaurants and clubs, taking computer chips out of the devices
and confiscating the winnings. That puts the owners' alcoholic beverage
permit at risk. Last year, excise police cited 435 gambling-related
violations and seized the computer chips from about 1,600 illegal video
gambling machines. But state officials say that has only driven the machines
to other places -- including truck stops and coin laundry businesses -- that
don't have alcohol permits, and that local police and prosecutors often look
the other way. HB 1510 would offer new options for battling such gambling.
As approved yesterday, it would authorize the state to revoke lottery
contracts, retail merchant permits, and state licenses for the sale of
tobacco and alcohol for any company or organization found with illegal
gambling machines.

It would also increase the criminal penalties for people charged a second
time with promoting professional gambling.

"It certainly seems to have a lot of things in it that would make it easier
to enforce (laws against) illegal gambling," said Dave Heath, chairman of
the Indiana Alcohol and Tobacco Commission. "It will be a benefit."

Lawmakers also added language that would clarify that card games played for
money -- including Texas Hold 'em and blackjack -- are illegal. Yelton said
yesterday that at least one Indiana prosecutor had declined to act against
people operating a professional poker game because state law defines
gambling as games of chance and the prosecutor believed Texas Hold 'em to be
a game of skill.

As passed yesterday, HB 1510 would make it clear those games are illegal.

Dan Gangler, communications director for the Indiana Area Office of the
United Methodist Church and a board member for the Indiana Coalition Against
Legalized Gambling, praised the bill.

He said Hoosiers can go through thousands of dollars looking for a win at
video gambling machines.

"These machines make them losers," he said.

Loren Fifer, vice president of the Indiana Licensed Beverage Association,
acknowledged the machines in use today are "a bad thing," even though many
restaurateurs rely on their income to make ends meet.

But Fifer urged the committee to consider legalizing slot machines or other
video gambling that could be regulated, controlled and taxed. That would
help bar owners and the state, he said.

If not that, Fifer said, then bar owners were seeking what he called
"parity" with nonprofit social and veterans clubs. Those clubs are allowed
to sell paper pull-tab and punchboard games. He said bars would like that
same option.