The highly lucrative video poker game makes a tempting target at a time when lawmakers are scratching for new sources of money to finance state and local programs. The proposals by Rosenbaum and others to scale back video retailer compensation wouldn't free up a lot of money for the coming two-year budget period. But Rosenbaum said lawmakers need to begin working on the issue. As bad as the budget looks right now, the situation in two years could be a lot more dire. The average commission now paid to video poker retailers amounts to 32.5 percent of net revenue.
Net revenue is total money played in the machines, minus the prize money paid out.
Jim Eastridge, owner of Magoos Sports Bar in Salem, said he and other tavern owners feel Rosenbaum's bill to limit compensation to 15 percent of net revenue punishes retailers for making video poker a financial success for the state. He also said the video lottery has helped boost local economies. Sen. Tony Corcoran has introduced a bill that would slash the compensation to 10 percent for the bars and taverns that are making the most money from video poker. His bill calls for diverting that money to cleanup of illegal methamphetamine labs and other purposes. The Cottage Grove Democrat said he doesn't approach the issue with the view that video lottery retailers are being overpaid for their services.