First Hand Of Video Poker A Dud In Oregon; Critics Flush With Hope

Technical problems spoiling the debut of video poker in Oregon this week have been a nightmare for state lottery officials, but an encouraging sign for the game's opponents.

"Their machines have gone kaplooey," said a delighted Rodney Page, executive director of Ecumenical Ministries of Oregon. "I hope it's an omen."

Seeking to double its lottery revenues, Oregon became the fourth state in the country to offer state-run video-poker games, in which players at coin-operated computer terminals try to draw winning poker hands for prize money.

The experiment will be watched closely in Washington state, where tavern owners have repeatedly sought to introduce the games despite strong legislative opposition to any type of slot-machine gaming.

"They have them in B.C., they have them in Oregon, and they have them in Montana," said Ron Sellar, head of the Washington State Licensed Beverage Association. "More and more of our state gambling dollars are going across our borders."

Oregon's entry into the video-poker business got off to a shaky start when technical problems shut down the game almost as soon as it started Monday night.

The game terminals, connected to state-lottery computers by telephone lines, depend on a clear, strong signal, and weren't getting it, said Marlene Meissner, lottery spokeswoman.

As of early today, machines were operating at only eight locations in the Salem area, making it unlikely state officials

would reach their goal of bringing 3,300 game terminals at 750 locations around the state on line by this weekend.

"We're still waiting for the telephone company to tell us they've solved the problem. They've got their finest technicians working on it," Lottery Director Jim Davey said.

Although the technical problem is likely temporary, church groups such as Page's are working to deliver the game a more permanent "kaplooey" - either in court or at the ballot box.

"It's bad for our citizens; it's bad for families; it's bad for Oregonians all the way around," Page said. "We have the sorry spectacle of the state or Oregon spending millions of dollars trying to entice its citizens to gamble and fritter away their money."

Two former Oregon governors, Democrat Robert Straub and Republican Vic Atiyeh, joined as plaintiffs in a lawsuit against video poker.

The suit contends that the game violates the state constitution's ban on casinos.

That argument was rejected by a county circuit court judge but will be argued before a state appeals court next month.

In addition, the "No Casino in Oregon Committee" has begun to collect the 89,000 signatures needed to put the matter on the fall ballot.

Davey disputes Page's gloomy predictions, saying that states which now offer state-run video poker - Montana, South Dakota and West Virginia - have not experienced a significant increase in gambling-related problems.

By law, 1.5 percent of Oregon's lottery revenues go into a fund for mental-health services to help people with gambling problems.

Video poker is based on the game five-card draw. An electronically random deck is "shuffled" in the computer's memory and five cards are dealt onto the screen. The player then has the option of discarding any or all of the cards and drawing new ones.

Players can play four times for $1 or risk up to $2 on a single hand. The prize depends on the amount wagered, the machine being played and the type of hand the player holds after the draw, but the prize cannot exceed $600.

Officials explained that four different brands of machine are used and each has a slightly different schedule of payoff. Davey said the state used four different suppliers to add a little variety to the game and to ensure that enough machines would be available.

On one brand of machine, the payout for a $1 hand ranges from $1 for two pair to $600 for a royal flush. Odds of getting a royal flush are about one in 40,000.

Oregon officials hope the game will generate $70 million in state revenue in its first year of operation.

Evelyn Sun, Washington lottery director, said even if Oregon's game is a success, she won't propose it here, because both the governor and Legislature have shown strong opposition to slot machines.

"That would be a basic policy question, and we don't want to get into it," she said.

Washington's lottery is expected to generate slightly more than $100 million in state revenue this year. Sun said she'll try to boost that with new variations of existing games, such as 50-cent instant-winner tickets and a "Beat the State" variation of the Quinto game, starting in May.

One factor in the Legislature's caution regarding slot-machine games is the coming of tribal casinos, such as the one opened earlier this year by the Lummis near Bellingham. Allowing any form of slot machine could lead to slots at those casinos, and increase the dimensions of gambling in Washington.

Sellar, who represents tavern owners statewide, said he thinks the state will be the loser if slot machines and video poker continue to be banned.

"I think the Legislature has to take a look at the overall view of gambling in the state of Washington and make a decision," he said. "We can either keep up with the times or we can fall behind."