Protect Video Gaming from Abusers
Recently the state tavern league has been working with local leagues who have dealt with resistance from local officials, and occasionally vocal citizens, who have sought to curb video gaming in their areas. Some of the resistance comes from general opposition to gaming, but some has been a response to bad actors who have caused greater scrutiny to the industry and to video gaming in particular. Tensions between business owners and local officials has escalated in some areas.
As we’ve discussed before, the legislature passed and Governor Jim Doyle signed into law in 2003, a measure that greatly reduced the penalties for video games in Class B establishments. It also shifted enforcement from local governments to the state Department of Revenue. The DOR can remove video games and owners can be fined up to $500 for each machine, but the priority has been focused on other enforcement actions. Those include the removal of video games from Class A establishments, which still carry much more significant penalties, including felonies for convictions.
Recent developments are beginning to receive attention, however. More reports have surfaced recently of games in non-Class B establishments. Some business owners have sought Class B licenses for what can accurately be described as an effort to have video games more than to be a part of the tavern or restaurant industry. This flies in the face of what was intended by the legislature. Many folks have also heard of unreasonably large jackpots. This also conflicts with the legislature’s intention when it sought to give some needed assistance to the tavern industry a generation ago. These and other examples have the potential to jeopardize the current status of video gaming in the state if the bad actors continue to cast the entire industry in a bad light.
It’s important to remember that the only legal gambling in the state is run by the state lottery, or tribal gaming run on tribal lands. That’s because of a constitutional prohibition on gambling in this state, and there appears to be little public appetite for repeal. Video gaming devices remain a violation, but the legislature has simply reduced the penalties and has not prioritized enforcement. But abuses of the system could change that if we don’t help police against bad actors in the industry.
Local law enforcement in one county is sending out notifications to its citizens explaining that they can’t enforce laws against gaming in taverns because that’s the state’s jurisdiction. They claim that they need to send out the information due to increased complaints from citizens who are opposed. Some municipalities are no longer licensing the games, concerned that they can’t license unlawful machines. Other municipalities are revising licensing forms to require establishments to list their gaming machines, and indicated that they may want to hold the games over their heads at renewal time or use the issue in order to prevent a new establishment from receiving a Class B.
We’ve had success in pushing back against government overreach, in part because the public supports laws that help preserve our state’s tavern industry heritage and balance the playing field against challenges faced by the industry, including the massive expansion of casino gaming over the years. That public support could change fast if the abuses from bad actors are allowed to put a cloud over the entire industry, and that’s why we all have a role to play in protecting the current structure. Dealing with bad actors is important. If reports surface of large jackpots, for example, it’s important for neighboring businesses and peers to point out that they’re jeopardizing the video games for themselves and everyone else. Any abuses put the industry at risk. And of course, state officials expect sales taxes and any income taxes that are generated to be reported and paid.
The tavern industry in Wisconsin is a strong economic driver in this state and video games are a part of that culture. Abuses can threaten their future if we’re not careful, so we all have a role to play in preserving what we have.