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http://www.omniture.com --> Sections Home Page Local News AP News Blogs Archives Business Classifieds Event Calendar Forums Life Opinion Obituaries Photo Gallery Readers Photo Gallery Sports Tempo Weather Road Cams Special Coverage 2006 Britt Festivals --> Shop Our Valley AutoFinder HomeFinder JobFinder Search Our Valley Special Sections Distinctly Northwest Readers' Choice Homelife Magazine Joy Magazine Oregon Golf Info Oregon Wine Info Other Publications Local Links Ashland News eSouthernOregon Newspapers In Education Personals Moving Here Movie Listings TV Listings Volunteer Customer Service Advertise With Us Media Kit Place Classified Ad Contact Us FAQ's Home Delivery Site Map --> Email Story to a Friend February 3, 2007 Retailers must limit gambling By John Darling for the Mail Tribune Local lottery-deli owners are not pleased with the new state rule restricting gambling income to 50 percent of total post-payout sales and, combined with a looming 1.5 percent cut in the retailer share, they're concerned about being able to survive and make a profit. "It hurts. Everything they (the Oregon Lottery Commission) do hurts. They're out to do whatever benefits themselves," said Steve Apted, owner of four Lumpy's outlets in the valley. "It's tough. You try to pay 17 people. The money just isn't there." Apted said his establishments are "absolutely not casinos." Gambling at his Phoenix shop, for example, accounts for 48 percent of sales "so the new rule probably won't affect me." Starting Sunday, lottery retailers must limit gambling sales to no more than half the total, instead of the previous 60 percent. They must keep records, to be submitted to the commission a year from now, said Ken Brenneman, retail contracts director of the Oregon Lottery. Those with excessive lottery sales will be examined to see if they're advertising and stocking food, beverages and cigarettes in a way "that says they're not operating as a casino," he added. They will have six months to rectify the situation. Advertisement Phyllis Simpler, owner of Time Out in Medford said, "It's pretty unfair and it will kill the goose that laid the golden egg, because less people will apply for video poker machines." Simpler said the lottery-café business is very cost-intensive because of labor, liability insurance and higher minimum wage. "It looks to people like we're getting rich. That's so far from the truth," she said. The 50 percent rule comes from the state's desire to eliminate outlets that "look like casinos," Simpler said. The lottery was intended to be an adjunct to establishments that look like restaurants and have menus, food, beer and wine, she added, noting that her café fits that description. Owners of the many local Purple Parrot outlets, which filled the top five spots in post-payout sales for Jackson County two years ago, the latest figures available for this story, did not return calls seeking comment. As the 50 percent rule starts, the state's new "lookback rule" will cut the retailer's post-payout take by 1.5 percent for the rest of their contracts, which all end in 2010, if net lottery sales exceed $805 million before the end of this fiscal year on June 30. Apted said, "The more you make, the more they take. People have the impression we're making all this money, but the vast majority (of retailers) don't. The gamblers do fine. They get 93 percent of what they put in. We get 23 percent of what's left." However, lottery spokesman Chuck Baumann said the reduction is being made to compensate for the 40 percent increase in sales since the introduction of line games (electronic slot machines) in May 2004. The lottery commission was prepared to cut the retailer take if improved revenues were found to be from the line games, but would leave them alone, he said, if they resulted from an increasing number of retailers. There was only a 4 percent increase in the number of retailers and, with $836 million in projected sales for this fiscal year, he said, the commission has told retailers to expect a reduction in take by August or September. The 50 percent change arose from a case brought by the Ecumenical Ministries of Oregon, a coalition of 17 Christian congregations, in the 1990s, in which the Supreme Court ruled that an establishment is a casino (prohibited by law), if gambling is its "dominant use or dominant purpose." The 50 percent rule is the commission's response, setting a ceiling to keep gambling from being dominant in any establishment, said Baumann. The change was announced Wednesday. John Darling is a freelance writer living in Ashland. E-mail him at [email protected]. Would you like to respond to this story? If so Click Here to visit our forums. Advertisement Copyright © 1997-2007 Mail Tribune, Inc. All rights reserved. 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