Reprinted from Thursday, September 30, 1999 article in Bemidji's The Pioneer

By BRAD SWENSON
Political Editor

 A proposed state rule affecting the manufacture of pull-tabs could cut
charitable gambling sales by 15 to 20 percent, says an industry
official.

 "This is as big a threat to the industry since 1989" when the start of
American Indian casino gaming cut into Minnesota's lawful gambling
proceeds, says King Wilson, executive director of Allied Charities of
Minnesota, the largest association of charitable gambling organizations
in the nation.

 The State Gambling Control Board is proposing rules to redesign
pull-tabs so they are harder to '"peek" at potential winners by those
who handle them, Wilson said Wednesday night at an ACM regional meeting
in Bemidji.

 But in the process, says Wilson, the new manufacture makes the
pull-tabs harder to open, less visible and easier to throw winners away.

 The state board more than a year ago introduced new designs without
informing the charitable gambling industry - veterans' clubs,
fraternities and community organizations which run lawful gambling
operations, usually at liquor establishments. A committee has been
working this year to issue rules on pull-tab manufacturing.

 "Customers have trouble seeing the lines - winning tickets are being
thrown out because they can't see them," Wilson said. "We all know that
bars are not well lit, are smoky and that people are drinking. The
symbols have been shrunk, the lines smaller and people throw winners
away."

 The committee making the rules, which were approved in July by the
Gambling Control Board, "didn't listen to us," Wilson, a panel member,
said.

 "There are some problems with peeking at tickets, and we don't like
peeking, but why 17 pages of rules?' Wilson told about 25 gambling
representatives of organizations from Baudette to Walker.

 If the rules are put in place, Wilson said they will make pull-tabs
hard to open, will make it harder to discern winning tickets, and will
make pull-tabs cost more, cutting into the organizations' expenses.

 "It would decrease our industry and cut our business by 15 to 20
percent," Wilson said. "And, pull-tabs account for 93 percent of the
$1.4 billion we do.  It is a bad package."

 ACM won a reprieve, however, allowing Wilson to hammer the point at
regional meetings this fall. The rules were to be up for public
hearings, but Gov. Jesse Ventura delayed the process.

 King said the 1999 Legislature gave the governor veto power over agency
rules, and Ventura this month asked all state agencies to delay any
further rule-making until his office sets policy to review rules. That
could come in November, meaning public hearings couldn't be held until
late January or February - when the Legislature is in session.

 "Our top legislative priority in the 2000 session, will be for
increased criminal sanctions, Wilson said. "Making it a felony for
tampering with pull-tabs is a better way."

 Wilson said criminal sanctions would be patterned after those used in
State Lottery fraud, and would send a message that employees can't fool
with pull-tabs.

 "Sanctions are the best deterrent, not reinventing the pull-tab," he
said. "We need to send a clear message to the governor's office that
there are problems and there are alternatives. We will do everything we
can to fight this."

 Wilson said ACM will also ask the Legislature to continue reducing the
state tax charitable gambling organizations pay. The 1999 Legislature
cut taxes 5 percent, but ACM asked for 20 percent. Permanent
individualincome tax cuts nixed that, however, making less money
available.

 Also, the association will ask for an event permit for organizations
wishing to conduct gambling off-site during community events, rather
than the one-day permit allowed now. "Usually events such as community
festivals aren't just one-day events," he said.

 Gambling laws passed by the Legislature this year allow bingo for
seniors' enjoyment at such places as nursing homes with little state
regulation, allow certain dice games in bars, and provides for card
playing at Canterbury Downs.

 On the dice bill, Wilson said games are permitted "with wagers or
prizes limited to food or beverages only, and the establishment does not
play or organize it." "It is not for money, or it could jeopardize an
organization's gambling premise license."

 The ACM's bill to make minor changes in gambling policies became the
Legislature's main vehicle for card clubs for poker players at
Canterbury Downs, he said.

 A percent of money wagered will be used by the racetrack to increase
racing purses. The card clubs are slated to start sometime after Jan. 1.