Oregon Bars And Taverns Receive No Gambling Revenue Cuts

The Oregon Lottery Commission went against what many believed was the public's opinion on video gambling in the state. With many people calling for a cut in the amount that bars and taverns receive from the machines, the Commission voted against a tax increase.

Currently, bar and tavern owners receive around twenty-four cents for every dollar wagered on the machines. That figure is down from over thirty-five percent when the machines were first allowed in the bars.

Oregon Lottery Director Dale Penn not only wanted to keep the current rates, but he also proposed a six-year contract that would guarantee the same rates for bars and taverns. Penn did not receive everything he wanted, with the commission voting for only a five-year freeze instead of the proposed six.

"There's been a lot of pressure on the commission to make it (bar rate) far lower," said Lottery Commissioner Steven Ungar, "We're not in anybody's pocket. We're not providing subsidies inappropriately by the decisions we make."

There are those, however, who believe that the commission could have dropped the rate for bars and taverns. Among those who felt the rate for bars should have been decreased was the group Stand for Children.

"The lottery could have gone a lot further," said Dana Hepper of Stand for Children. The group was leading the charge for the lower rates, but the commission did not agree and the rates will now stand for the next five years.

October 31, 2009
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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