Crusade to stop growth of gambling failing in Louisiana

Alan Sayre

Tuesday, May 22, 2001 | 11 a.m.

NEW ORLEANS -- Less than two years ago the plugs were pulled on 4,200 video poker machines at the mandate of Louisiana voters. Now the number of machines has just about rebounded to the pre-shutdown level.

An anti-gambling legislator says the comeback shows that efforts in 1996 to stop wagering's spread failed.

"That is the point we made in the very beginning," said Rep. Tony Perkins, R-Baton Rouge. "What we said during the debate over local option was that this would not limit gambling, it would merely shuffle the deck. Clearly, the numbers speak for themselves. Since 1996 we've seen a growth of gambling in this state."

As the result of 1996 parish-by-parish referendums, video poker was made illegal in 33 of Louisiana's 64 parishes.

However, operators were allowed to continue to continue the games until June 30, 1999, to recoup their investments. When the deadline came, state police shut down 4,258 of the 14,600 machines then on line.

But the business has been steadily growing in the 31 remaining parishes where the devices are legal. As of March 31, there were 13,277 machines in operation, according to state police.

Applications pending before state gambling regulators could boost the number of machines almost to the same level before the shutdown. State police have applications for truck stops, bars and restaurants that could bring in 593 to 1,174 additional machines.

That would raise the number of machines statewide to between 13,870 and 14,451. The applications are at various stages of the regulatory process, leaving the timing for final decisions in the air.

The number of establishments with video poker is nowhere near the 3,656 before the 1999 shutdown. As of March 31 there were 2,839 locations with the devices.

However, truck stops have made a sharp rebound. The shutdown reduced the number of the mini-casinos from 110 to 88. As of March 31 there were 108 truck stop locations. Applications for 11 others are pending before gambling regulators.

Truck stops can have 35 to 50 machines, depending upon the amount of monthly fuel sales. Bars and restaurants can have up to three machines. State video poker licenses do not specify a specific number of machines at each location, but allow the license holder to have up to the legal maximum.

Also pending -- and not included in the estimate of potential new machines -- is an application for video poker for a new off-track betting parlor in Jefferson Parish. OTBs and race tracks can have an unlimited number of machines.

The parish referendums were approved by the Legislature in 1996 during the first year of Gov. Mike Foster's initial term, following a year when Harrah's temporary casino in New Orleans closed and FBI affidavits alleging widespread gambling corruption cost a number of legislators their seats.

Foster favored a statewide, up-or-down referendum on the future of gambling, while gambling opponents wanted the Legislature to have a chance during a special session to repeal gambling, which the governor refused to go along with.

In separate votes on the same ballot, all the state's riverboat casinos survived the local votes, along with the New Orleans casino. If the vote had been tallied on a statewide basis, video poker would have survived.

Gambling opponents were critical of the parish referendums at the time, saying the machines would simply be moved to parishes where the devices remained legal. At the same time, the constitutional amendment setting up the referendums allows new votes to reinstate the machines, but not to throw them out.

Lobbyist Alton Ashy, who represents video poker through the Louisiana Amusement and Music Operators Association, said the business expected to rebound in the remaining parishes following the shutdown.

However, Ashy said he doubts the eventual total of machines will creep much higher because of market conditions and competing forms of gambling and other entertainment.

"At first, the attitude was if you build it, they will come. But we are now competing for entertainment dollars. You get to a point where there are only so many spendable funds. You reach a saturation point," Ashy said.

Perkins said there is little doubt that video poker will try to get back into the banned parishes, probably with local governments leading the way.

"The machines just moved across a parish line," Perkins said. "They're having the problems that go with video poker, but none of the revenue."

Ashy said the current political and economic climate is not favorable for that now.

"I think at some point in the future, some parishes will do it, but I don't think it will happen at the present time," he said. "It depends upon financial constraints and people's attitude toward gaming in general. It's hard to predict that right now."