August 1st, 2004
Washington State to get shafted By Eyman with Initiative 892
Initiative 892 proposes to add over 18,000 new video slot machines to neighborhoods across the state. Oregon's video games return twice as much of the "net win" to their state budget as Initiative 892 does! What kind of rotten deal is that?

Contact: Steve Zemke
206-366-0811
stevezemke@msn.com

Seattle, WA—Are you ready to turn over up to $800 million dollars to the gambling industry in return for $400 million? If you believe Tim Eyman's figures and the so called Entertainment Industry Coalition that's just what you will do if you support Initiative 892 this November. In return they will let you play to your hearts content by yanking the arm of the one armed bandit (video slot machine) as many times as you want.

The more you play the more you lose because the industry maximum return rate overall to gamblers is 95% on slot machines. With Initiative 892 the gambling industry will put twice as much money in their pockets as campared to video games in Oregon. Expect that they will spend millions to try to get you to vote yes on Initiative 892.

Initiative 892 calls these video slot machines "electronic scratch ticket machines" According to Initiative 892 the gambling interests will keep two thirds of the "net profit" or what is left over after paying prizes and all other expenses.

The gambling industry basically wrote Initiative 892 and funded the total effort to buy signatures of Washington voters to get the initiative on the ballot. While the Secretary of State has yet to certify Initiative 892 for the ballot, it appears that there will be no problem doing this.

What is questionable in this whole process of course is who gets the lion's share of these "net profits". In the state of Oregon the return to the state is the reverse of what is proposed for Washington state in Initiative 892.

See this April 1, 2004 Miami Herald article entitled "Oregon Lottery Commission Raises State's Cut of Video Jackpot."

This article notes that originally the state of Oregon gave 35% to those operating the video gaming machines. In return Oregon got 65% to help the state budget fund schools and economic development.

The rate was lowered to 32% and further reduced in April of this year to 29%. Some studies pointed out that a rate as low as 15% would still be profitable. An aide to US Senator Gordon Smith of Oregon noted if they were just setting up video games that they would be at a much lower rate than the current ones.

I guess now we can see why the gambling industry wrote their own initiative and asked Tim Eyman to sell it for them. He certainly didn't ask any questions as to why Initiative 892 gave 65% of the "net profits" to gambling interests rather than the taxpayers of this state.

I guess the only numbers that he checked out were the flashing dollars signs of the $3100 a week they paid him to help them. If you believe his numbers its only a shift of $400 million that goes to the gambling profiteers rather than state taxpayers. Instead of the state getting $800 million, again using his numbers, they would only get $400 million as Initiative 892 is written. I bet the gambling interests in Oregon wish that Tim Eyman was down there when their legislation was passed.

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