October 24th, 2004
The I-892 story still being missed!
Oregon's video games return twice as much of the "net win" to their state budget as Initiative 892 would!

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

Seattle, WA—In Oregon, their video games return 71% of their net win to the state. 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.

See article originally written for the Oregonian entitled “Oregon Lottery Commission Raises State's Cut of Video Jackpot”.

Video games in Oregon are also administered by their Lottery Commission as I-892 proposes. The main difference from I-892 is that in Oregon the Lottery Commission owns and maintains the machines. But $252 million a year allows you to own and maintain a heck of a lot of slot machines and still put money into the state budget.

The Oregon way of running video gambling machines is not unique. Wonder why Great Canadian out of Vancouver, BC put hundreds of thousands of dollars into paying for signatures to put I-892 on the ballot. . In Alberta they would only receive 15% of the net profit. The list goes on: Saskatchewan 15%, Manitoba 20%, Prince Edward Island 20%, New Brunswick 22%, New Foundland 20 – 25%, Nova Scotia, 25%. The 65% net win they would receive under I-892 would truly be a jackpot for them!

The study done by the Oregon State Lottery Commission earlier this year on the net win for areas with a similar approach to theirs resulted in Oregon reducing their net win for establishments having video terminals to 29%.

See a summary of original study entitled Oregon State Lottery: Video Lottery Compensation in the US and Canada.

Initiative I-892 is not as much about reducing property taxes as it is about generating exorbitant profits for the so called Entertainment Industry Coalition. With Initiative 892 the gambling industry operating video slot machines in Washington State will put twice as much money in their pockets compared to video games in Oregon. Getting some $504 million dollars per year instead of only $252 million dollars is certainly a winner for them. One could call it a jackpot! The state of Washington only receiving $252 million instead of $504 million is a huge loss for Washington taxpayers.

Initiative 892 calls these video slot machines "electronic scratch ticket machines" Under Initiative 892 the Gambling Industry 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.

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