Gaming News

Oregon bar owners fight for video gambling profits

SALEM, Oregon -- As reported by The Oregonian: "Bars and tavern owners told lottery officials Tuesday that the steep drop in money coming into state-run gambling machines has hurt their business, and that reducing the cut they collect from the machines will create more hardship.

"But supporters of cutting the retailers' commission rates argued that the state shouldn't make long-term public policy decisions based on the economic pleas of the moment. They said a new six-year contract with lottery retailers that starts in July 2010 would stretch well into a time when lottery sales will recover.

"The comments came during a public hearing as lottery officials are facing pressure to forge a new contract that pulls more money out of the games to help schools, parks and state services. Profits from the gambling machines are off by more than 20 percent over last year's numbers, and officials expect that trend to continue through next year.

"Bars and taverns keep around 23 percent of the money players lose in the machines - or an average of $71,000 for each site.

"But owners said that the recession and statewide smoking ban that started in January have hurt them, and cutting their share of video gambling profits will devastate them..."

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