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By Phil Kabler
Staff writer

State Lottery commissioners got down to the nuts and bolts of regulating casino-style table gambling Thursday, in case voters in any or all of the four racetrack counties approve table games in elections next month.

While going over a rough draft of the table games regulations, commissioners raised some interesting issues over how to make the table games law fit real life situations:

For example, the law essentially requires the four racetracks to build on-site hotels with “significant amenities,” but how many and what types of amenities does that mean?

Commissioners left that question open Thursday, pending further research — probably including a review of amenities that travel guides require for three- and four-star hotels.

Also, the law requires each track to provide the Lottery with office space that’s accessible from the gaming areas — but will Lottery security officers need a separate location to monitor the surveillance cameras located throughout the casinos?

Lottery Director John Musgrave said the intent is to have on-site Lottery offices where track patrons can go to register complaints.

“If a patron has a complaint, we want a visible area where the patron can go and say, ‘This wasn’t right,’” Musgrave said. “There will be a [Lottery] person, with a blazer and a badge that patrons can go to.”

He said the Lottery also will need separate locations at each track where Lottery security officials can monitor surveillance cameras the tracks will operate to watch all gaming activities.

Musgrave was also adamant that the systems be designed to allow the Lottery to monitor each track’s surveillance cameras independently of the track’s security.

“We shouldn’t have to ask their permission,” he said. “We’re not going to ask to watch them.”

Questions also arose over who would investigate criminal activity in the gaming areas. As drafted, State Police would be called in for potential felony offenses, with local law enforcement officials handling misdemeanors.

The rules would prohibit all racetrack employees from carrying firearms. Initially, the rules allowed track security guards to be armed, but track officials asked that the provision be removed, over liability concerns.

The rules will even go into great detail in spelling out how each table’s daily gross receipts will be determined, in order to collect the state “tax” on gaming revenues.

John Melton, Lottery general counsel, said that unlike video lottery — where the state’s cut is automatically calculated — the table games “tax” is more like figuring out corporate net taxes.

“It’s a tax on an income stream,” he said.

On Thursday, the commissioners determined that free play coupons — given as incentives to new players or as prizes to frequent patrons — would count toward the track’s gross revenue. They made that decision over objections from track operators.

Melton said the rules would be filed with the secretary of state’s office in early June, opening a 30-day public comment period. The commission would then meet in early to mid-July to give final approval to the regulations.

Countywide referendums are scheduled in each of the four racetrack counties on June 9.

To contact staff writer Phil Kabler, use e-mail or call 348-1220.