Challenge coming to new gambling device law

Several Clinton County businesses are considering suing the state over a reinvigorated state law forcing a crackdown on electronic gambling machines because they say it is unconstitutional.

Indiana House Bill 1510, in effect since July 1, clarified the use and possession of electronic gambling machines, such as the so-called Cherry Master and digital coin slots, as illegal.

Clinton County prosecutor Anthony Sommer's enforcement has business owners fuming because his 2006 election campaign suggested turning a blind eye to the issue.

The revision clarifies a person or business operating an electronic gaming device where one is risking money or property for gain as a Class D felony when the device owner profits, said Sommer. He estimated 19 businesses have been affected.

"I am looking at shutting down," said Bill Eldridge, who removed three machines from his Ganderville Diner in Michigantown. "That revenue helped the business and the community."

Fair Gaming Committee, a contingent of businesses represented by former Clinton County prosecutor Louis Evans, is seeking clubs and businesses statewide to fight the law. They says the law is unconstitutional because it allows game machines only in state-licensed casinos and race tracks.

The goal, they say, is a state-regulated system, such as Illinois' tax stamp, in which a yearly fee allows business owners to provide electronic gambling. Now violators there can lose their alcohol, tobacco or retail permits.

"This bill affects the entire state of Indiana, not just Clinton County," said Jim McDaniel of Frankfort, committee president and Two Bit Coffee Shop owner. "We don't want preferential treatment, just equal treatment."

The previous law's ambiguity about what machines were allowed let businesses believe they were legal and made enforcement spotty, Sommer said.

"Now I think it is clear under the law that these devices should be used by places that are licensed," he said. "And those are riverboat casinos and horse race tracks."

Committee members contend games such as video poker provide enjoyment for patrons who can't afford traveling to riverboat casinos. And, they say, the revenue often helps cover business costs or is given to charity.

That is cause for enforcement, said Jerry Long, executive director of the Indiana Council on Problem Gambling.

"Anyone can get access to these machines," he said, calling the revenue hidden money.

Tom Click, owner of Main Street Smoke Shop in Frankfort, said he donated heavily to the Veterans of Foreign Wars, thanks to regular players on 10 gaming machines.

"We gave a lot of money," he said. "Now we can't."

Since the law, Main Street reduced operation to 12 hours a day. It had been a 24-hour-a-day business.

But, like McDaniel, Click said he will stay open despite lost business.