Alternative, penny-point gaming machines gain popularity in Michigan

Sunday, Aug. 13, 2000 | 12:30 p.m.

Some say they're a game of skill, great entertainment and good for business. Others loathe them for their similarities to slot machines.

They're called "redemption machines."

Rev. Tom Laymon, who recently played a hand in getting six of the machines for an American Legion Post nixed by the local zoning board, said the machines are simply another way that gambling is taking root.

"You can call it what you want, but it's gambling," Laymon told The Grand Rapids Press for a Sunday story. "I think it's kind-of a sneak attack on our city."

The Legion post nonetheless will install two machines already allowed by the zoning board.

Meanwhile, businesses around the area are getting a step ahead of an Indian tribe that wants to build a casino between Kalamazoo and Grand Rapids.

At Kurly's Korner on Michigan Street NE, two machines are perched near the entrance. Last week, Kurly's General Manager Mike Farage lost 23 cents playing the game, but he has won up to $5.

Dan Kurlenda, who owns the restaurant and lounge with his wife, Carol, said he wants to add three more machines.

"A lot of people have played them," Kurlenda said. "They're getting popular."

The machines look like slot machines and take money like slot machines. The difference is the winnings come as points, redeemable at the Kmart store at 701 68th St. SW.

Prizes can also be ordered through a catalogue.

Because of the differences, and because there's an element of skill involved to win, the machines are legal under a two-year-old state law.

"It's a skill game and there's no cash changing hands," said Jack Berke, chief executive of Vanguard Entertainment Systems, the Detroit company that distributes the games.

In Detroit, Vanguard has installed about 100 machines, Berke said. At least 50 have been ordered in the Grand Rapids area - mostly by neighborhood bars.

To play, a dollar is inserted for four plays, and there are four games to choose from. One is baseball and another is like a roulette wheel, where a light flashes around a circle of symbols - 7s, cherries, pears.

The player can stop the light by pushing a button. Three cherries wins 15 points, but different combinations can increase or decrease the winnings.

At Kmart, points are turned into store credits. Vanguard said it expects to add other local and national retailers to the mix of stores that players can redeem their points.

A catalog also offers prizes, such as a Sony Watchman for $139.99, a pearl necklace for $99.21, a Fossil watch for $85 and vacations.

But it will take a while to earn enough points to buy those items: each point is worth a penny.

Points can be collected for up to one year and exchanged for merchandise worth up to $250, a limit set by law.

For the business, it's an attractive proposition. The machines are installed free and the upkeep is handled by Vanguard. The net is split in half between the business and Vanguard.

"We see this as something that people want," Berke said of his growing business. "They're asking for it."