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.....• Video Lottery • MMBA |
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Video
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For the past four (4) years the Minnesota Licensed Beverage Association (MLBA) has been monitoring discussions involving gambling and Minnesota’s budget deficits. The linking of gambling and deficits is not unique to Minnesota. Nationwide from California to New York, Governors and State Legislators are discussing gambling revenue as a means of solving budget woes. In Wisconsin an agreement was reached that allowed the Indian Casinos to provide craps and roulette in exchange for giving payments to the state. Governor Tim Pawlenty is trying to follow the Wisconsin example by asking Minnesota’s Indian Bands to accept a similar offer. For some, the Governor’s offer appears to be a no-brainer. The Bands give Minnesota revenue in exchange for being able to continue control over the most popular forms of gaming and being able to add popular games such as craps and roulette. This would allow the Minnesota Bands to compete with the Wisconsin casinos. For others, it is not so simple. Several Band leaders have expressed opposition to any renegotiation. They believe attempts to renegotiate the Indian Gaming Compacts are examples of history repeating itself as government again tries to break a treaty with Native Americans. One has to admit there is overwhelming history that Band leaders can point to and at the same time it can also be shown what a good deal it would be to compete with Wisconsin’s casinos that are just a short half day’s drive for 70% of Minnesota’s 5 million residents.
It is the belief by representatives lobbying for a metro casino, that the latter position will prevail with Band leaders unable to renegotiate. Failing to renegotiate or no negotiation at all leads these representatives to believe that their proposals will become popular and gain support. So with this backdrop, MLBA’s former Presidents, Dennis Dahl and Colin Minehart, have spearheaded a four year effort criss-crossing Minnesota meeting with Indian leaders, their representatives, legislators, their staff, charitable gaming interests, state lottery directors in several states and Las Vegas gaming interests. In that time, Dennis and Colin have represented their members’ interests by quietly and patiently setting the stage, should renegotiation of the compacts not occur and elected officials go looking for revenue. By being honest and straight forward, the two MLBA leaders have made friends and avoided needlessly making enemies. For those that are not aware, the MLBA proposal promoted by Dennis Dahl and Colin Minehart allows:
The discussions concerning the MLBA proposal have received positive feedback from legislators. MLBA has been told that should the Indian Bands not agree to renegotiation of the gaming compacts, MLBA’s proposal would be preferred over the creation of a casino for several reasons.
One reason is the costs associated with the creation and operation of a casino. It will take a great deal of start up capital and time to build a casino, while the MLBA proposal simply involves delivery of a machine, the plugging in of an electric cord and a phone line connection to the state lottery. The former head of the state lottery told a Senate committee that he estimated the MLBA proposal could be up and running in 60 days with little overhead. While it is appealing to put the construction trades to work building a casino, it is more appealing to put people to work statewide. The MLBA proposal has winners in every corner of the state, versus the casino proposals that only benefit the metro economy. When looking for votes statewide, the MLBA proposal introduces gaming off the reservation in very small doses in establishments already regulated by law enforcement, treating all communities in the state the same. The fact that there are no bricks and mortar associated with the MLBA proposal means that it can be stopped as easily as it is started. Should it be determined that the video lottery operation is bad for Minnesota, due to the ills associated with gaming, the MLBA proposal could be stopped without significant expense or job loss. This would not be the case with the creation of a casino. MLBA’s proposal also does what a metro casino fails to do, which is to provide revenue without the casino management costs and because the state operates the machines there is less chance for fraud. As the MLBA proposal gains quiet support, the representatives wanting big Las Vegas type casinos try to create fear and mislead legislative leaders by derogatorily calling the MLBA proposal “slots in bars.” This is done because most people know that the odds of winning while playing a slot machine are much lower than winning on a video poker machine. For those unfamiliar with the difference between slots and video poker, let me explain. A slot machine is the old gambling device with bad odds that traditionally requires three or more objects to appear in a row. Three lemons or three dollar signs ($$$) for example. While video poker is like playing five card draw with the player having to make decisions on which cards to keep and how many new cards to draw to obtain a winning hand. Video poker has a better chance of the player winning. However, make no doubt about it, both are forms of gambling with the house having the best odds. In choosing which game is best for the player, experts will tell you the MLBA proposal of video lottery is preferred. Those same experts will tell you the player’s odds improve if the video poker machine is operated by a state lottery with no significant overhead expense.
So there you have it, MLBA’s long-standing proposal that has been promoted diligently by Dennis Dahl and Colin Minehart. Do not be confused, misled or fooled by other proposals. Only MLBA put in the time over four years to develop a proposal that helps existing businesses in the state, gives the largest sum of money to the government with least expense and limits harm to existing forms of gaming (both Charitable and Indian run gaming). Having done the work, we now wait to see if the Bands and the Governor are able to reach agreement on a renegotiated compact. Should this occur, the issue of video lottery most likely would not advance. Should a renegotiation fail, then MLBA members need to be prepared to discuss with their legislators why the MLBA proposal is the way to go. If you would like more information, contact Dennis Dahl or Colin Minehart at 651.772.0910. They are always ready to discuss the MLBA video lottery proposal. MLBA Proposes Video Lottery December 3, 2001, St. Paul, MN - The Minnesota Licensed Beverage Association (MLBA), a statewide non-profit trade association of licensed alcohol beverage retailers, announced its proposal to address a funding mechanism for Minnesota's infrastructure needs, including a baseball stadium for the Minnesota Twins. Colin Minehart, MLBA Chairman set forth a proposal that would partner bars and restaurants with Indian casinos via the state lottery. "Tribal governments have worked hard to develop Indian gaming for the betterment of Minnesota's Native Americans and local communities statewide," stated Minehart. "We need to work with Tribal governments acknowledging their sovereignty and we hope the Tribes will see our respect for their sovereignty with this proposal." The MLBA proposal would have Indian casinos owning video lottery machines that would be leased to the Minnesota State Lottery. This would allow the Tribe's to keep some of the revenue for themselves and maintain their monopoly over video gaming. While some Indian casinos have had great success, others primarily in less populated parts of Minnesota have not seen the economic prosperity that more densely populated areas of the state have enjoyed. The MLBA proposal hopes to create opportunity for Tribes that have gaming operations in areas of small population. Minehart said that in meetings with lottery officials this summer, it was estimated that the MLBA proposal would raise $300 million annually. "Clearly, this would give the state the money to do good things for many people. We would put people to work building necessities such as libraries, recreation centers and yes, baseball stadiums," stated Minehart. "Major League Baseball owners have made it clear that a new baseball facility is needed or the Minnesota Twins will cease to exist. It is also clear that the Governor and a majority of Legislators have promised voters not to use taxpayer dollars to build a stadium for the Twins. On its face the two positions are irreconcilable, however, our proposal allows for elected officials to keep their word and for Minnesota to keep the Twins." The video lottery proposal allows for a voluntary act by those that play the games. Gamblers could decide to play the video lottery machines or go to a casino and avoid having their losses go to pay for a stadium. Minehart also stressed that his group's proposal would also generate revenue for the state's environmental trust fund. "Minnesota law requires 40% of lottery proceeds to go into the state's Environmental Trust Fund. We propose that the new revenue from video lottery going into that fund be used for environmental health and terrorism preparedness," said Minehart. The revenue from the proposal would also be ear marked for local projects that do not have statewide significance. "We agree with Governor Ventura who has objected to using state bonding dollars for projects that do not have a statewide impact. However, we are also sympathetic with the many needs in our local communities that go unmet because of a lack of local resources. Our proposal allows for local governments to capture some of the revenue to meet local needs." Our proposal is respectful of those that have concerns about gambling. We have limited the number of machines per establishment and require that the alcohol license have been active for at least 3 years. This will prevent unwanted opportunists from outside the state of Minnesota. Also, there is a sunset provision that will allow the legislature in 10 years to determine the impact of our proposal. Regulatory oversight would be done by the Department of Public Safety, Division of Alcohol & Gambling Enforcement, which currently oversees alcohol sales and gambling activity in the state. "Now is the time to be putting people to work and building our communities. The events of September 11th should not slow us down, but should create greater resolve in all of us to seize opportunities to build and strengthen our communities. The MLBA video lottery proposal does just that, by putting people to work through partnerships that create economic opportunity for Minnesota's statewide," finished Minehart. In a time when our State is faced with many tough economic decisions, a number of ideas for determining new revenue streams have been brought forth. Some proposals would place additional taxes on food, beverages and services. Another would produce a private casino within the Twin Cities metro area. Yet another promotes the building of a new state-owned casino. The Minnesota Licensed Beverage Association (MLBA) is a non-profit trade organization representing business owners and retailers of beverage alcohol throughout the State. Every one of the current proposals would have a negative impact on our members and more importantly, the communities that they serve. No one in this state wants to pay more taxes. A private casino within the metro would transfer even more entertainment dollars from rural areas already facing hard times. A state-owned casino not only poses new questions about tribal sovereignty, but exposes everyone in Minnesota to the liability of actually building another casino in a statewide market where only a handful are flourishing. With a sixty-year history of operation, we have learned that solution-based thinking and common sense are two important ingredients for economic success. Our unique plan involves a partnership between state, local and tribal governments, working with MLBA members and all beverage alcohol retailers throughout the state. Installing up to five video lottery machines in establishments with an active license history of at least three years is the answer. Tribal governments keep their control over video gaming, the machines are networked through the existing operating systems of the State Lottery, and the Division of Alcohol and Gaming Enforcement would continue to oversee and enforce state gambling laws as it currently does. In addition, we recommend a ten-year sunset be included, insuring that the citizens of Minnesota would be able to evaluate the program and its impact on our State. This plan would generate between three hundred million and five hundred million dollars per year. It could be up and running in a relatively short time, providing needed dollars for economic infrastructure and environmental health issues at all levels of government in Minnesota. The MLBA's proposal has been introduced for review during the upcoming legislative session. It makes the most sense with the least liability. It distributes revenues throughout the entire state. Those wishing to make the smart decision are encouraged to contact their legislators and express their support. |
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