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Gambling In Oregon Exceeds Expectations

22 December 2004

RAND RONDE, Oregon – As reported by the Oregonian: "Over the background cacophony of 1,500 electronic slot machines, Randy Dugger is confident the Confederated Tribes of Grand Ronde will be able to meet new competition for its Spirit Mountain Casino.

"…The growth of gambling in Oregon has been outstripping predictions for two decades, ever since voters created the Oregon Lottery, which was sold as a low-key affair to raise a little cash for economic development.

"Since then, legalized wagering in Oregon has evolved from a business of less than $100 million a year into a $1.1 billion behemoth that is one of the state's major forms of entertainment.

"According to estimates, Oregonians spend more than $310 a year for every person in the state on everything from bingo to blackjack. That's about 25 percent more than the national average.

"Gambling is part of the daily fabric of Oregon life, from video poker in the corner tavern to the ubiquitous advertising for Spirit Mountain and other tribal casinos. Increasingly, concerns about the social and moral costs of gambling are being pushed aside as the various players in the industry engage in their own arms race to win the bettors' allegiance.

"With the lottery preparing to expand deeper into electronic games and the prospect of new tribal casinos rising closer to Portland, gambling seems destined to become an even more powerful force in the state.

"…Not long ago, few would have described gambling in Oregon as much of an industry. Before the lottery was approved in 1984, legal gambling largely was restricted to horse and dog racing, and to charitable bingo games and raffles.

"The lottery initially was promoted as a modest series of scratch-off ticket and numbers games that would allow bettors to fantasize of a big score while plunking down a few extra dollars at a convenience store. To allay fears Oregon would turn into another gambling mecca, the initiative -- financed by a lottery ticket manufacturer -- explicitly outlawed casino gambling

"However, under the direction of lottery Director Jim Davey, who later went to work for a gambling machine manufacturer, the lottery quickly became one of the most aggressive in the nation.

"…The video games changed the economics of bars and taverns. It became common for businesses to break even on food and drink while earning their real money on video poker. Retailers fought to keep their commission level -- which critics charged was overly generous -- with the tenacity of a professional poker player.

"The machines also opened the door to tribal casinos, something the Legislature had not considered in 1991. Under federal law, the tribes were allowed to offer the same kinds of games otherwise permitted in a state.

"…The Oregon Lottery's surveys show about two-thirds of the state's adults have positive feelings about the lottery.

"…Most observers say gambling will continue its climb toward market saturation. The lottery will continue to face pressure to move into new games that come on the market. Inevitably, tribal gaming seems headed to the Portland area…"

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