State could lose if restaurant poker legalized
2005/2/17 20:22:00

If Connecticut legalizes Texas Hold 'Em poker and other card games in restaurants and bars as proposed by one legislator, the Mohegan Sun will withhold the state's share of slot machine revenue, a spokesman for the Uncasville-based casino said Monday.

That would be a loss of more than $400 million a year.

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Texas Hold 'Em games have been a popular draw in some area bars and restaurants, including Eli's on Whitney in Hamden. Though the business owners don't derive any profit from the poker games, they do make money from the food and beverages poker players consume.

Last year, however, Eli's on Whitney had to stop hosting the games after receiving a cease-and-desist order from Attorney General Richard Blumenthal's office. The order said the games violated the state's gambling laws.

Other establishments in the area, such as Knickerbocker's and Bennigan's in Milford and Harborside restaurant in Stratford, continue to host weekly poker games, though the police in those two communities are waiting on word about their legality.

Last week, State Rep. Brian O'Connor, D-Clinton, who is proposing the games be legalized in restaurants and bars, said he thinks poker tournaments would be good for the economy, providing a boost to restaurants that have complained of declining revenues.

O'Connor's proposed bill, titled "An act allowing restaurants and bars to hold poker and other card tournaments," calls for the state's general statutes to be amended to allow the practice, "...as long as no profit is made off such tournaments by participants or the restaurant or bar."

The purpose of the action, according to O'Connor's proposed bill, is "to improve the business climate of restaurants and allow individuals to interact with others who enjoy card games."

The Mohegan tribe is watching the legislation, having determined that "it would be a clear violation of the state's agreement" with the tribes that run Mohegan Sun and Foxwoods casinos, according to Chuck Bunnell, chief of staff for the Mohegan tribe.


Tribe watching bill


"I have been advised by our legal team that those games are indeed illegal in the state of Connecticut," Bunnell said, "and if the state were to legalize them...it would cost them the more than $400 million we give them as their 25 percent share of our slot revenues, the most generous in the United States. We wouldn't pay it anymore."

Bunnell said the Mohegan tribe heard about the discussions in Hartford last week to legalize the games, which "prompted us to meet with our legal team."

O'Connor's proposal was referred to a joint committee of the General Law Committee, which heard testimony Feb. 8 in Hartford. To keep money out of the equation, O'Connor told reporters he is considering different ideas for the games that would give winners prizes, such as free dinners; or a point system in which people would win trophies.

"That will never fly," said Shawn Reilly, general manager of Eli's on Whitney in Hamden.

"These guys [poker players] don't want to play for color TVs or any other prizes," Reilly said. "The legislator's suggestion is beyond a waste of time. I'm speechless.

"It's so ridiculous and hypocritical," he said. "Why is it all right to go to a casino and [play poker]? The state sold its soul to the casinos for a couple of tax dollars."

Bunnell said that even if the games are played for prizes rather than money, the tribe would still withhold the state's share of slot machine revenues. "It would still be a violation of the spirit of our agreement with the state," Bunnell said.

"If we withhold the state's share of slot machine revenues, it would be a very expensive proposition for Connecticut," he said. "The two tribes [at Mohegan Sun and Foxwoods] pay more to the state than the entire corporate income tax of all the corporations in the state of Connecticut combined."


Area company testifies


One person who supports O'Connor's bill is the president of a company that provides some services to Mohegan Sun. Eric "Rick" Pullman, president of New Haven-based Autotote Enterprises Inc., even testified before the committee in support of it.

Autotote operates off-track betting facilities in 12 Connecticut cities, including New Haven's Sports Haven and the Bradley Teletheater in Windsor Locks; four Raceview Centers, and the "On The Wire" telephone wagering operation.

The company's venue management business includes operation of the race book facility at the Mohegan Sun.

Pullman said he supports the bill because "it would provide an opportunity for bar and restaurant owners to add another attraction to bring in customers. There's been a 15- to 20-percent reduction in revenues for those businesses since the smoking ban went into effect."

Pullman said he doesn't think allowing poker in restaurants and bars would hurt the casinos. "It isn't that they can pull business away from the casinos," he said. "They need these games to help them get back to an even keel with their revenues. They need some kind of unique draw to give their customers a reason to patronize them other than just drinking."

In fact, Pullman said his company is pushing for legislation that would allow smoking in businesses statewide that are willing to upgrade their facilities to include a separate smoking room that wouldn't interfere with customers in the non-smoking areas.


Police awaiting word too


Police in Milford and Stratford continue to look into the legality of the weekly Texas Hold 'Em poker games taking place at local restaurants and bars. They are conferring with prosecutors to get some direction.

While some state officials have said the games are illegal and violate Connecticut's anti-gambling laws, local police say they want to be on solid ground before taking any action.

Vaughan Dumas, spokesman for the Milford Police Department, said his office has been in contact with prosecutors "to see how far they want us to go. Once they clarify whether it's illegal, then we'll ask them how they want us to proceed.

"If we're told the games are illegal," Dumas said, "we'll probably first contact the restaurants and tell them what they're doing is not legal, and advise them to stop before we take further action."

Bunnell warned that the Mohegan tribe is watching the prosecutors too.

If the prosecutors suggest police assume a hands-off posture and allow the games to continue, "We'd still withhold the state's share of slot machine revenues," Bunnell said. "They need to stop those games. They're clearly illegal."

Blumenthal has said that the games violate several state statutes on sponsored gambling and infringe on agreements the state has with Mohegan Sun and Foxwoods casinos.

The question of whether such games are illegal is by no means limited to Connecticut. Several states across the country are experiencing the same dilemma, and legislators in some of those states are proposing laws to legalize them.

However, since the games are now played for money, the legislators interested in seeing them legalized are proposing they be played for trophies and prizes, such as T-shirts, etc.

Locally, the games take place weekly at Knickerbocker's in the Westfield Shoppingtown Connecticut Post Mall, and Bennigan's on Old Gate Lane, both in Milford, and at Harborside on Ferry Boulevard in Stratford.

Employees at the restaurants insist they're on safe ground because they don't run the games; they sell beverages and food while an independent host operates them.

But John Suchy, director of the Connecticut Liquor Control Division in the Department of Consumer Protection, has told local police that the games are "unlawful on their face. They violate the state's anti-gambling criminal statutes."

One local legislator said he believes the entire matter needs clarification. State Rep. John Harkins, R-Stratford, said that, based on his understanding, Blumenthal has said the games are illegal, and the Department of Consumer Protection did as well.

"I think we need clarification on this subject to protect the general public and the restaurants," Harkins said.

Texas Hold 'Em tournaments take place in restaurants and bars throughout Connecticut, including Milford, Stratford, Bridgeport, Trumbull, Hamden, West Haven, New Haven, and U-Conn Storrs. They range from modest cash play to high stakes poker.

Source: Milford Mirror

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