Stronger push for video gambling expected in upcoming session

INDIANAPOLIS -- Efforts to legalize video gambling machines in taverns and other places that sell alcohol could heat up when the legislative session begins in January, proponents and some lawmakers say.\nThe Indiana Licensed Beverage Association says it is drumming up more grassroots support in hopes of finally getting a bill through the General Assembly, something at least two lawmakers -- Republican Sen. Robert Meeks of LaGrange and Democratic Rep. Win Moses of Fort Wayne -- have encouraged.\n"They are definitely more organized than they were six months ago," Moses said. "It's not something that Bob Meeks and I can get passed. It has to be spoken for by people around the state."\nMeeks said he told the association, which represents taverns, restaurants and some other establishments that sell alcohol, that its members had to contact their lawmakers before the session to promote the idea if they were to have a chance at success.\n"They have to start out and meet with these folks and having eye-to-eye meetings with them," said Meeks, who like the association has supported efforts to legalize the machines for several years. "I told them how people can make a difference."\nDon Marquardt, president of the association, noted that Gov. Mitch Daniels has not said that he opposes legalizing the machines. The governor has said the state should not be hypocritical, however, and the machines should either be legalized and taxed or laws against them should be enforced.\nSince they are still illegal, his administration has taken more aggressive steps to enforce the law. Excise police began confiscating money from the machines, removing the computer circuitry that runs them, and citing owners of locations where they are operated.\nBut the machines also are located at truck stops and other locations that do not sell alcohol and are not under the jurisdiction of the excise police. And many say prosecutors are reluctant to enforce the laws at such locations.\nDaniels' spokeswoman Jane Jankowski said the governor had no initiative about the machines and they would not be part of his legislative agenda. She also said that Daniels does not sense much interest among legislators in changing current law.\nMeeks said any effort to legalize and tax the machines would have to start in the House, where revenue-raising bills generally must start. And House Speaker Brian Bosma, R-Indianapolis, is not exactly warm to the idea.\n"If we were to legalize the machines, it would be the single largest expansion of legal gaming probably in our state history, so there is some reservation about jumping into that without a lot of forethought," Bosma said.\nHe said Daniels has indicated that he "is not particularly seeking enactment this session, but I know there are members of his administration that seem to be pretty actively acting on it."\nEstimates on how many machines are being operated illegally have varied widely, but generally have ranged between 10,000 to 20,000.\nThe machines, with names such as "Cherry Master," and "Video Redemption," stack odds heavily against the player. Instead of paying out winnings directly, players get tickets to verify points and take them to a bartender or someone else to redeem for cash or merchandise.\nThe licensed beverage association wants them legalized, with proceeds taxed by the state at a level Marquardt suggested should be in the 30 percent range. That could generate up to $300 million in annual tax revenue, he said, and the group wants a third of it to go to local governments. Marquardt also said the minors should not have access to the machines.\nThe association has teamed up with some fraternal organizations to promote legalization of the machines, and meetings around the state are being held to discuss the lobbying push.