Business unusual for those associated with video gambling in industry’s final days

Dan Lewerenz

Thursday, June 29, 2000 | 10:54 a.m.

SPARTANBURG, S.C.- Loyd Trent already had packed up six of his 20 machines Thursday, two days before video gambling becomes illegal.

But Trent isn't in the video gambling business. He's in the cigarette business, stocking machines for Ace Vending, of Spartanburg.

Trent thought it was good business to put his machines in casinos - bars often asked for a percentage, while casino operators just wanted to know the machines would be stocked. But when the casinos close for good Saturday, it will hit Trent's wallet as well.

"That's where I've got most of my machines," Trent said. "When they close up, I've got to close up, pick up my machines."

Under pressure from anti-gambling groups, the Legislature last summer approved a referendum to decide the fate of video gambling. But the state Supreme Court in October struck down the referendum, leaving intact the part of the law that bans video gambling machines as of July 1.

All video gambling machines in the state must be turned off by midnight Friday. The State Law Enforcement Division has said it will give operators one week to get the machines out of the state.

Jimmy Gaskins owns the St. James Sports Bar and Grill in Goose Creek, a cool, dark neighborhood tavern that features raised round tables, a karaoke machine, a juke box and, in the rear corner, three video gambling machines. Gaskins and others now will have to find other ways to replace the gambling revenue that kept their businesses alive.

"These things kept a lot of little places going," Gaskins said.

Gaskins sees his gambling machines as just another of the bar's attractions. Patrons don't pour money into the machines all day, Gaskins says, but he estimates the machines bring in between $400 and $600 a week.

Because of the loss of that revenue next week, Gaskins says he will have to raise the price of his chicken wings to 15 cents each after selling them for a dime for 13 years.

"We've got to increase our revenues somehow," he said. "Our fixed costs stay the same."

Things are simpler - though no more pleasant - for businesses that rely entirely on video gambling. Kathy Babbitt, co-owner of The Money Pit in Spartanburg, said two of her employees have found new jobs after July 1. Eleven others, including Babbitt, are still looking.

"I'm 56 years old and unemployed," said Babbitt.

To make matters worse, Babbitt is having trouble selling the video gambling machines still in her casino. She says she'll be lucky to recover one-third of the $7,000 she paid for each machine. For the time being, Babbitt has arranged to store them in North Carolina.

Steve Sato, owner of Los Angeles-based Golden State Gaming, a gambling equipment distributor, said most buyers want a machine that can make cash payouts. South Carolina law required machines to issue tickets that could be redeemed later for cash.

"We get calls on a daily basis from guys out of South Carolina trying to move their stuff, but nobody's taking it," Sato said.