By KEN de la BASTIDE, Herald Bulletin
The ongoing debate about the legalization of video gaming machines in Indiana taverns and the state’s pari-mutuel horse racing tracks will be among the top issues again during the 2006 legislative session.
Go into many taverns and fraternal organizations around Indiana and there are video gaming machines present. Enforcement of a state law prohibiting the machines differs from county to county.
Two lawmakers have announced that the Indiana Licensed Beverage Association is organizing a grassroots effort to legalize the video gaming machines where alcohol is sold.
Gene Brummett, president of the Madison County Tavern Owners Association, said Tuesday the local group has not discussed legalization of the machines.
“We don’t know what to expect,” Brummett said. “We have not committed ourselves as of now.”
He said tavern owners are not opposed to having to purchase a stamp from the state to legalize the machines.
Madison County Prosecutor Rodney Cummings said it would be a good move to legalize the machines.
“We have legalized about every other form of gaming,” Cummings said. “There are billions of dollars that people are making money on and the state is not receiving any of the revenue.”
He said no matter what action the Legislature takes the gaming will continue.
“If the machines were regulated, there would be a set percentage of winnings,” Cummings said. “The state would also receive a share of the revenue.”
Rep. Scott Reske, D-37th District, said it would be a massive undertaking to regulate machines in taverns.
“How would you regulate 2,000 taverns?” asked Reske. “It is not practical.”
Reske said there is growing support among lawmakers to allow alternative gaming at Hoosier Park in Anderson and Indiana Downs in Shelbyville. He said the 2006 effort to legalize pull-tabs at the horse racing facility will be focused on agriculture and stabilizing the horse racing industry in the state.
“The Republicans in the General Assembly need to find revenues for school funding,” Reske said.
Rick Moore, president of Hoosier Park, said the horse racing coalition has been meeting regularly, but there have been no discussions with the Indiana Licensed Beverage Association.
“I think we prefer a standalone bill,” Moore said, “one that supports the racing industry, which touches all 92 counties.”
He said the emphasis during the 2006 legislative session will be that racing is an agri-business.
Moore said having legislation start in the Agriculture Committee makes a lot of sense.
“Horse racing is an important agri-business,” he said. “We want a bill that will receive a fair hearing.”
Rep. Terri Austin, D-36th District, said video gaming in taverns is an issue that surfaces every year.
“There has not been a lot of previous support,” she said. “I have some concerns about the expansion of gaming and regulation. I am not willing to commit to supporting that effort.”
Austin said her focus is getting alternative gaming approved to stabilize the horse racing industry in the state.
She said lawmakers are concerned about an overreliance on gaming revenues to balance the state budget.
“We need to focus on a strategy where we don’t depend on gaming revenues to solve budget problems,” Austin said. “The way we do that is to encourage economic development with the dollars generated.”
Sen. Tim Lanane, D-25th District, said people supporting alternative gaming at the racetracks may have to join forces with the tavern owners to get legislation passed.
“I have mixed feelings on it,” Lanane said of legalizing video gaming in taverns. “Part of me says it makes common sense. We have to either legalize them or vigorously enforce the prohibition on the machines.”
One of his concerns is the effect that legalizing video machines in taverns would have on the venues where gaming is already legal.
“We may have to look at alternative gaming at the tracks and in the taverns,” Lanane said. “There could be a limit on the number of machines allowed in each tavern.”
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