A Quarterly supplement to IGWB

MARCH    2 0 0 2 

COLUMNS

Cooperation, responsibility

By Patricia A. McQueen, Editor

It’s going to be an interesting year. Whether or not you believe that the economic downturn of 2001-02 is actually a recession, and whether or not the downturn is short-lived, signs everywhere point to a lot of activity in the gaming industry as a result of economic conditions.

Recognizing that many governments are financially vulnerable right now, members of the racing industry in many states have put their well-known animosity behind them and found common ground to present their case for added gaming to legislators. Expect strong lobbying for video lottery terminals (and/or slot machines) at racetracks over the next few months. And for the most part, lotteries are seen as the responsible, logical operator or overseer of these programs.

So more than ever, racetracks and their erstwhile “enemies,” lotteries, may be working together for the common good of the state, agri-business, and the gaming public. But there should be more than just forced cooperation. There should be recognition that lotteries and the racing industry can learn from each other.

Racetracks could probably learn a thing or two from lotteries’ game strategies. And there are built-in opportunities for lotteries to benefit from expertise developed by the racing industry, given that several of the major online systems providers also supply racetrack tote systems.

In particular, the use of player-activated terminals and hand-held wagering devices have been pioneered by racetracks and tote companies in various jurisdictions. And some experts believe account wagering is on the verge of exponential growth, although continued bickering between the major racing industry players may temper consumers’ enthusiasm. These types of technologies could offer enormous potential for lotteries in today’s interactive world.

New forms of gaming or accessible technology always come under scrutiny, as well they should. But the fact remains that if players want these things, and all indications are that they do, they will get them in one way or another. It’s easy enough these days. However, the responsible way is through state-authorized gaming, where participation is legal, where proceeds benefit good causes, and where help is just a phone call away.

If players are forced underground to play the games they want, they may be more reluctant to call for help on state-sponsored compulsive gambling hot lines. And by the way, different segments of the gaming industry shouldn’t be pointing fingers at “the other guy” — compulsive gamblers are going to have trouble regardless of the games they play, and help should be available everywhere they look.

There are some exemplary examples out there of cooperation in this regard, but there are also many jurisdictions where there is room for improvement.

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