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Taverns Keeping Video Poker

12 July 2004

Las Vegas Sun

SALEM, Oregon -- Bars and taverns seem to be sticking with video poker.

Only nine of the state's 2,158 video-lottery retailers decided against renewing their contracts when the old ones expired late last month. Another 35 have yet to make a decision, said Marcia Hutchins, who oversees retailer contracts for the Oregon Lottery.

The 98 percent renewal rate followed threats of a mass exodus after the Oregon Lottery Commission reduced the compensation that retailers could keep from the state-owned video lottery machines.

Under the prior compensation plan, retailers' average commission was $74,000, or 32 percent of sales. Under the new contract, the average commission is forecast to be $67,000, or 29 percent of sales.

A report commissioned by the Oregon Restaurant Association predicted that 15 percent of bars and taverns would drop video poker if there was any cut in their take.

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