Nebraska group targets proposal on video slots

Joe Ruff

Wednesday, July 3, 2002 | 9:34 a.m.

OMAHA, Neb. -- A group opposed to expanded gambling in Nebraska says it will campaign to defeat a proposal to legalize video slot machines if the proposal makes the November ballot.

"The people will get to vote, and they should get to vote," Pat Loontjer, executive director of Gambling with the Good Life, said Monday. "But they need to know the truth, and the truth is, this would be devastating."

The Nebraska Cooperative Government Commission, which is made up of cities and counties that operate keno lottery games, wants to allow casino-style video gambling.

The commission believes it will have the needed 110,000 valid signatures by Friday. About 130,000 signatures had been gathered by last weekend, said Kimball Mayor Greg Robinson, president of the commission. Petition circulators plan to be out in force through the Fourth of July holiday, he said.

Nebraskans lose millions of gambling dollars every year to casinos in Iowa, South Dakota, Kansas and Colorado, Robinson said.

"Our belief is that all that money that is leaving the state could very well be left here to help with our coffers," Robinson said.

Money raised from the video slot machines would be used for property tax relief and community projects, local charities, bonuses for teachers or tuition credits for students.

Loontjer and others, including former Omaha Mayor Hal Daub and Omaha City Council President Chuck Sigerson, said passing the constitutional amendment would invite social ills like gambling addictions and personal debt.

"Statistics show that for every dollar a state gains in tax revenue, it costs the state three dollars in social costs," Loontjer said.

Gambling with the Good Life will tell people about the dangers of gambling through church groups and person-by-person, organization-by-organization, she said.

The commission's proposal would allow any of the state's 3,000 outlets that sell liquor on the premises, including keno parlors, bars and restaurants, to apply for at least 10 video slot machines, Loontjer said.

A state gaming commission set up under the proposal could allow more slot machines per site, and local governments could approve more slot machines at sites within 20 miles of casinos run by another state, she said.

"That amounts to a possible 30,000 machines in addition to allowing the possibility of video slot casinos all along our borders," Loontjer said.

Robinson said all bars and restaurants could apply for video slot machines, but local governments would have to approve them and keno parlors have already been through that step.

"I don't think you'll find a lot of restaurants interested in this," Robinson said.

Loontjer also argued that the makers of video slot machines and the outlets that offer the machines would benefit more than any amount property taxes would be lowered or charities helped.

"The current slot machine petition is written to benefit a few greedy owners who will keep 50 percent of the profit, and it is being deceitfully sold to the public as 'tax relief,"' Loontjer said.

Robinson said about 50 percent of the profits after payouts and taxes would go to contractors of the video slot machine games, as opposed to about 14 percent for keno operators.

"That is the market trend of entities that do similar things to this," Robinson said.

In addition, he said, video slot machines are expensive and more costs will be incurred by the contractors.