House-Banked Card Rooms

People are more likely to call our establishments "Mini-Casino's," but whatever you call them, they are the largest sector of the state's non-tribal gaming industry in terms of net receipts. Larger than the State Lottery and larger than any other forms of recreational gaming like Bingo, Pull Tabs or Horse Racing.

House-banked card rooms, or HBCR's, were first authorized by the legislature in 1997 and differ from earlier social card rooms in that players may wager against the house, rather than just against each other. HBCR's are limited to 15 tables, and they offer only card games such as Black Jack, Pai Gow and Spanish 21, in addition to player-banked Poker.

Tribal casinos, on the other hand, can offer a larger number and wider variety of table games, such as roulette and craps, and only they are allowed to offer electronic machine games that are essentially slot machines.

The Recreational Gaming Association of Washington, the RGA, works on behalf of these establishments and their approximately 6,000 employees to sustain this important industry and the jobs, revenues, and economic vitality it provides. LEARN MORE ABOUT OUR INDUSTRY HERE...

From the story on TVW Capitol Record:
"...Alexander said they're not giving up on the idea of expanded gaming. "We will be exploring the options of gaming alternatives, whether that be in the area of extending video terminal machine gaming to our existing non-tribal casinos" or punch-card technology. He said the potential revenue is attractive, particularly in contrast to an increased sales tax, which Republicans do not support."

With the legislature focused now on budget issues, the RGA's electronic gaming bill was introduced in the House on February 16th. A companion bill in the Senate is expected to be introduced shortly.

HB 2786 is a bi-partisan effort, with five Democratic and seven Republican sponsors, who see this not only as a bill to ease the current budget shortfall pressure, but as a long term, sustainable revenue source for critical programs like education, human services and public safety.

The bill also saves and generates jobs in our industry, which is not only good for our workers and the families they support, but for our communities and the state as a whole.

For an overview of what this new bill does, check out the FACT SHEET.

A more detailed analysis of the bill can be found here.

A copy of the bill is here.

In its 2012 policy guide, the Washington Policy Center, one of our state's most respected think tanks, provides a very clear and thorough discussion of tribal vs. non-tribal gaming issues.
Read the chapter on "Tax Advantages of Tribal Businesses" here. To see the entire policy guide, click here.

A poll conducted last summer on behalf of the Washington State Gambling Commission by WSU shows some interesting results:

• While gaming revenues are way up over 2005, gaming activity is down.
• People with higher incomes are more likely to gamble than those with lower incomes.
• 91% look at gaming as a fun, recreational activity.
• The biggest concerns about gaming are internet gambling (credit card fraud, cheating) and underage gambling.
• The State Lottery is the most popular form of gambling, but the most money is spent on tribal and out-of-state casino gambling.

For the complete report...click here.

Some 6,000 workers who depend on house-banked card rooms to support themselves and their families want legislators to know how important these jobs are to them and their communities.

Take Chris Douglas, for example, who works as a surveillance lead at Maverick's Casino in Cle Elum. He writes:

"My job is vital to my very survival, especially when living in an area of declining employment. But it's a lot more than that. This job has given me my honor, my self-respect, and my dignity back. I'm a proud member of the Maverick's Casino & Saloon family!"

Here's the letter in Chris' own hand.

The RGA's lobbying team worked around the clock during the legislature's special session that began November 28th, to try and gather sponsors from both sides of the aisle in the House and Senate for its new bill to authorize electronic gaming in house-banked card rooms. The session ended earlier than anticipated, but the team will pick up its efforts again when the regular session starts on January 9th.

The bill is titled THE ELECTRONIC GAMING REVENUE ACT OF 2012, "concerning the authorization and regulation of electronic scratch ticket machines for house-banked card rooms and providing funding for education, health and human services, and public safety."

We felt it was important that the bill title and description focus on its impact in creating much needed new revenue to help "buy back" some of the devastating cuts in education and other vital state programs. The bill authorizes house-banked card rooms to operate the same kinds of electronic scratch ticket games currently allowed only in tribal casinos. There is a limit of 200 machines per establishment, with a total limit statewide of 7,875. Only currently operating house-banked card rooms—now 63—will qualify. New licensees will have to operate for at least 5 years before they are eligible.

The measure will raise $380 million per biennium, with as much as $160 million in the first year of operation. These are conservative estimates, developed by Gaming Market Associates, a leading gaming marketing firm based in Las Vegas. For more of what the bill does, click here for a quick overview, or for a more comprehensive Bill Summary and section by section analysis click here.

Stay tuned for updates as the bill moves forward...

The Lakewood Chamber of Commerce Board of Directors supports H-3076.1, an act relating to the authorization and regulation of electronic scratch ticket machines for non­tribal, house-banked card room establishments and utilizing the taxes generated for education, health and human services, as well as public safety; amending RCW 67.70.040, 67.70.330, and 9.46.291; creating a new section; adding a new chapter to Title 67 RCW; and declaring an emergency.

The legislature has declared that electronic scratch tickets are a legal form of gambling in the state of Washington. This position is intended to grant specific authority to the Washington state lottery commission to regulate electronic scratch ticket gambling by non-tribal house-banked card rooms that are currently allowed in state tribal gaming venues.

The Chamber Board finds this chapter will assist in job creation and retention. The Chamber Board further finds that this chapter is necessary for the immediate preservation of public health and safety and the support of state government and its existing public institutions as it is intended to generate tax revenue appropriated in the 2011-2013 biennium. Programs dependent upon the additional revenue forecasted under this chapter provide for the health, education, and welfare of the citizens of the state of Washington.

The legislature faces a looming $1.4 billion deficit in this biennium. Citizens are rightly resistant to further taxes and fees imposed on their existing limited budgets. A fee imposed on recreational gaming would be self-imposed to only those who choose this form of entertainment.

If you would like to download this document CLICK HERE

The Washington State Fairs Association has come out in support of electronic machine gaming to boost state and local revenues. The Association is a non-profit group of fair and youth shows that has been working to showcase our state's agriculture, business, and industry since 1940. Learn about the good work they're doing HERE.

Recreational gaming is a $2.5 billion industry, according to the latest figures released by the Washington State Gambling Commission. The figures show that year over year, gaming has grown from $2.29 billion in FY 2010 to over $2.5 billion in FY 2011. That's a nearly 10% increase.

Just about all of that increase, however, is attributable to tribal operations, which increased from an estimated $1.74 in FY 2010 to $1.95 in FY 2011! Market share for tribal casinos is also steadily increasing, from 72% in 2009 to 78% in 2011.

Meanwhile, house-banked card rooms continue to have declining receipts, though they are holding their own. Receipts declined from $252 million in FY 2009, to $228. 6 million in FY 2010, and $225.7 in FY 2011.

All other sectors, except the state lottery, which increased receipts by about 8% also continued to decline. For an illustration of the overall trend in gaming receipts and their distribution in 5-year increments since 2005, CLICK HERE.

What's New...

• House Republicans will consider electronic gaming options for budget.
  Read the story on TVW's Capitol Record...
• RGA introduces HB 2786, the Electronic Gaming Act of 2012
  Read the PRESS RELEASE here.
• The Washington Policy Center's legislative policy guide for 2012 is out. See what it says about the "Tax Advantages of Tribal Businesses."
• State Gambling Commission releases poll findings.
  Last summer, the Gambling Commission surveyed people statewide about their views on gambling.
  READ MORE...
• Lakewood Chamber endorses proposed Electronic Gaming Act of 2012.
  READ MORE...
• WA State Fairs Association supports RGA bill...
• Like Us on Facebook!
  Just click on the link above, and don't forget to tell all your FB friends…
• Card Room Workers speak out on the difference this industry makes in their lives...
  Click here
• Proposed RGA electronic gaming legislation would raise $380 million to "buy back" devastating cuts in education and human and health services.
• Frequently asked Questions about RGA's proposed legislation. Click Here for some thoughtful answers.
• Voters Support Electronic Gaming for House-Banked Card Rooms. An Elway poll conducted last year shows solid voter support (64%) for extending electronic gaming to the state's house-banked card rooms.
  Click Here for more details on the poll's findings.
• Latest Gambling Commission figures show recreational gaming is a $2.5 billion a year industry.

Events...

• Monday, January 9th, 2012:
  The Regular Session of the legislature convenes.

The RGA and its members work closely with the
When Gambling becomes a problem, Help Starts Here:
1-800-547-6133