Compromise slot bill passes

CARSON CITY -- The Senate, without dissent, approved a compromise bill Tuesday that had once pitted some major casinos on the Las Vegas Strip against International Gaming Technology, the nation's top slot machine manufacturer.

Sen. Mark James, R-Las Vegas, said AB651 details which party should be liable for the taxes on inter-linked slot machine systems such as Megabucks and Wheel of Fortune.

It says the distributor of the machines must pay part of the taxes. Circus Circus Enterprises had complained the casinos were getting stuck with the full tax. But IGT disputed this.

The bill also requires the state Gaming Control Board to set minimum standards on the progression rate in building up the jackpots on these slot systems, which are tied between various casinos.

James said the state has already required that 75 percent of what is wagered be returned in winnings on regular slot machines. But most clubs offer a payout of 90 percent or better.

On the inter-linked system, James said the board will decide how fast the jackpots build up.

Sen. Joe Neal, D-Las Vegas said the "public is getting ripped off," because the jackpot amount builds up too slow. For instance, he said a $27 million Megabucks jackpot at Palace Station should have actually paid $37 million.

Neal wanted to know if the public would ever know the rate of progression on the various jackpots. James said the state will establish the minimum progression rate and then casinos will be able to advertise they have higher progressional rates.

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