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Lottery chief proposes lower commissions on slot games

Wednesday, Feb. 16, 2005 | 9:34 a.m.

SALEM, Ore. -- Lottery Director Dale Penn on Tuesday recommended that commission payments for new slot-machine style video games be about one-half the rates now paid to bars and taverns with video poker.

Lottery retailers get an average of 28.8 percent of net revenue from video poker machines. Penn proposed a 15 percent rate for revenue from slot-type games when they are added in a few months.

Net revenue is money played on the video terminals minus prizes paid out.

A final rate decision is up to the state Lottery Commission. Penn said he expects the panel may take that action in April, following a hearing on his recommendation that is set for March 25 in Salem.

Gov Ted Kulongoski directed the commission to add so-called line games to video machines to raise an additional $60 million a year to finance the state police.

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