Gaming news briefs for September 28, 2005

Wednesday, Sept. 28, 2005 | 9:56 a.m.

Hearings to revoke Emerald license wrap up

CHICAGO -- Attorneys for the Illinois Gaming Board told an administrative judge Tuesday that Emerald Casino Inc. should lose its gambling license for repeatedly lying to regulators about its plans to finance and build a casino in Rosemont.

But lawyers for the bankrupt casino argued the board is unfairly punishing Emerald because of separate allegations of mob influence in the Chicago suburb, and said the state wants the lucrative license back only so it can sell it to another casino operator.

Their statements came during closing arguments in the Gaming Board's four-month administrative hearing aimed at stripping Emerald of the state4s only unused casino license.

Assistant State's Attorney Paul Gaynor said Emerald no longer deserves the license because of a string of "misrepresentations, omissions and lies."

Casino revenue lagging

OKLAHOMA CITY -- Revenue from tribal casinos is lower than state officials predicted but they say it's too soon to say whether initial projections were too high.

Eighteen American Indian tribes paid Oklahoma $880,391 for card games and compacted electronic gambling machines, a decline of 16 percent from the $1,048,015 tribes paid last month for games played in July, figures released Monday show.

The state of Oklahoma has received $4,951,206 for the calendar year.

At that rate, the state will receive about $12 million this fiscal year, but state Treasurer Scott Meacham had projected $40.5 million.

Meacham cited vendors slowness to deliver the compacted gaming machines and tribes not installing those machines as reasons for a lag in revenues.

Federal law allows tribal casinos to offer Class II games, which must be based on bingo or pull-tabs. Class III games, which include slot machines, unrestricted card games, roulette and keno, require a compact between a tribe and a state.

Oklahoma's compacts allow for certain faster machines and card games in which the casino can't profit from the outcome.

Most tribes were concerned that federal regulators would crack down on Class II games being played throughout Oklahoma, so they signed the compacts. That threat never developed, however, and Meacham said the lack of compacted machines reflects that.

Cherokee Nation spokesman Mike Miller said Oklahoma has a unique market.

"You can't just take a game played in Nevada and put it in Oklahoma," he said. "They (game manufacturers) had to create a machine just for Oklahoma."

Miller's tribe plans to install 450 compacted machines in its Catoosa casino next month, and 100 more total in its other casinos.

Meacham said officials aren't in a place where the compacts have reached maturity.

"Until we get to a point where the (new) games are readily available to the tribes ... we won't know," he said.

Candidate urges gambling ban for Katrina aid recipients

EUGENE, Ore. -- Gubernatorial candidate Pete Sorenson is calling on his rival, Gov. Ted Kulongoski, to prevent hurricane victims from gambling away their federal relief money in Oregon.

In a letter to the governor, Sorenson asked Kulongoski to "direct all Oregon lottery and video poker outlets to immediately institute procedures to refuse to cash federal disaster relief checks or allow the use of federally issued debit cards issued as part of relief efforts."

He added that Kulongoski should ask Oregon tribal casinos to follow the same restrictions.

The Lane County commissioner is one of three Democrats planning to run against Kulongoski in the May primary. In an interview, he said his concern was "constituent driven," and he wasn't aware of any evacuees gambling away their relief checks.

Chuck Baumann, a spokesman for the Oregon Lottery, said he met with agency field managers on Monday. He said there was no talk of storm victims trying to use relief money for gambling.

Groups working with the evacuees said Sorenson's concerns are misplaced.

"The majority of people I've met are just looking to get back on their feet," said Ellen Cedergreen, a founder of Eugene Cares, which is helping look after an estimated 100 evacuees in Lane County. "They're not spending their money on anything other than trying to survive."

Holly Armstrong, a spokeswoman for Kulongoski, said Sorenson's actions were an attempt to get political mileage out of the tragedy.

"I think you're getting into dangerous territory when you're telling people who have been through a horrendous experience how they should and shouldn't spend their money, and assuming that they don't have the judgment to spend it appropriately," she said.