Legislature(2005 - 2006)BUTROVICH 205
05/05/2005 08:30 AM Senate JUDICIARY
| Audio | Topic |
|---|---|
| Start | |
| SB74 | |
| Confirmation Hearings | |
| the Commission on Judicial Conduct – Mr. Jerry Story || the Commission on Judicial Conduct – Ms. Ethel Staton || the Alaska Judicial Council – Ms. Cristina Williams || the Violent Crimes Compensation Board – Mr. Leroy J. Parker. | |
| SB74 | |
| SB165 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 74 | TELECONFERENCED | |
| += | SB 165 | TELECONFERENCED | |
| + | HB 53 | TELECONFERENCED | |
| + | HB 268 | TELECONFERENCED | |
SB 165-CARD ROOMS & OPERATIONS
9:31:39 AM
CHAIR RALPH SEEKINS announced SB 165 to be up for consideration.
MR. RYAN MAKINSTER, staff to Senator John Cowdery, introduced SB
165, which would allow card playing for money in the public
arena. Under SB 165 card rooms would be limited unless expanded
by a vote from Alaskan citizens.
9:33:33 AM
Bonds and application fees would apply so the state would not
incur any burden. Underground games happen and there is crime
associated with it.
9:34:59 AM
CHAIR SEEKINS asked whether a home was the only place where card
games were legal.
MR. MAKINSTER said yes, if played for money.
CHAIR SEEKINS understood a game of poker was legal anywhere so
long as the house doesn't take a rake.
MR. MAKINSTER alleged the statute says "in a home."
CHAIR SEEKINS asked whether SB 165 related to professional
gambling.
MR. MAKINSTER speculated it would be a friendly game. SB 165
would be doing a service by providing a conduit for the games.
9:36:31 AM
CHAIR SEEKINS asked the amount of income a card table would be
expected to bring in annually.
MR. MAKINSTER responded the average is $90 gross per table per
hour. Ten tables would bring about $3 million a year.
9:37:58 AM
CHAIR SEEKINS asked who the proprietors would be.
MR. MAKINSTER anticipated they would be proprietors of current
bars.
CHAIR SEEKINS asked the application process.
MR. MAKINSTER informed there would be a $25,000 non-refundable
fee to apply. The application process would be left to the
Department of Revenue (DOR) through regulations. Factors would
be based on reputation and controlling interests. Also a person
would have to put up a $500,000 cash bond up front.
SENATOR HOLLIS FRENCH asked whether the bond would be supplied
with the application or upon winning the permit.
MR. MAKINSTER responded after winning the permit. License would
be granted before obligation of the cash bond.
SENATOR FRENCH asked whether a board would review the person's
financial statement.
9:39:38 AM
MR. MAKINSTER advised the DOR would make the decision. The DOR
would come up with a process to determine who is best suited to
be licensed.
SENATOR FRENCH asked whether there would be a public comment
period during the process.
9:41:07 AM
MR. MAKINSTER said that would be up to the DOR.
SENATOR GRETCHEN GUESS asked the number of cribbage
establishments that would put up $10,000 per table. She asked
the reason SB 165 doesn't simply deal with poker.
MR. MAKINSTER advised other states have added games besides
poker. He claimed people do play cribbage for money.
SENATOR GUESS asked the definition of a "non-banking" card game.
9:43:04 AM
MR. MAKINSTER explained it is a game not played against the
house.
CHAIR SEEKINS asked who the owners of card rooms are in
Washington and Oregon.
MR. MAKINSTER implied various sorts of people.
CHAIR SEEKINS asked whether other states had the same
application fee.
MR. MAKINSTER responded no.
CHAIR SEEKINS said he did not know any bar owners who have that
kind of money. He anticipated the card room owners would be
professional gamblers.
MR. MAKINSTER agreed.
9:44:42 AM
CHAIR SEEKINS stated SB 165 would virtually be opening the state
to professional gambling. He asked the name of a prospective
owner.
MR. MAKINSTER indicated a Mr. Perry Green.
CHAIR SEEKINS speculated Mr. Green has financial backers from
out of state.
SENATOR JOHN COWDERY commented Alaskans should control a
percentage of the license.
CHAIR SEEKINS said that would be at the discretion of the DOR.
He inquired whether the hourly wage and the house rake should be
set in statute.
MR. MAKINSTER responded it should be fluid.
9:47:27 AM
SENATOR FRENCH commented there are different ways to determine
the rake.
9:48:45 AM
CHAIR SEEKINS asked Mr. Makinster whether he has seen the House
companion bill.
MR. MAKINSTER advised it was similar to SB 165.
CHAIR SEEKINS asked whether the sponsor has researched the
sociological effect of card rooms.
MR. MAKINSTER alleged there is no study dealing specifically
with card rooms.
9:50:30 AM
CHAIR SEEKINS asked whether card rooms in Washington are
restricted to class 2 card games.
MR. MAKINSTER said no. The Gambling Commission allowed bank
games to occur and card rooms to compete. Poker and blackjack
are allowed but no casino games such as slot machines.
SENATOR FRENCH asked whether bank games in Washington were
statewide or limited to reservations.
MR. MAKINSTER replied statewide on a limited basis.
9:52:41 AM
SENATOR THERRIAULT asked Mr. Makinster to describe current
Anchorage card rooms.
MR. MAKINSTER advised some bars have card tournaments.
9:55:56 AM
SENATOR GUESS asked the limit of card rooms that SB 165
proposes.
MR. MAKINSTER said three.
SENATOR GUESS asked the amount of illegal gambling SB 165 would
stop.
MR. MAKINSTER did not know. He assumed people would rather play
in a safe environment.
9:58:20 AM
SENATOR GUESS asked whether there would be security in the card
rooms.
MR. MAKINSTER said it is in the best interest of the card room
to provide security.
CHAIR SEEKINS expressed concern about big gambling from Las
Vegas entering Alaska.
10:00:45 AM
SENATOR HUGGINS asked Mr. Makinster to address the fears of his
constituents and to comment on Indian gaming.
10:03:51 AM
MR. MAKINSTER advised SB 165 would not be full on gambling.
Poker is a slow paced methodical game. Mobsters ran Las Vegas so
the crime rate was higher, he alleged. Opinions from the Indian
Gaming Commission find the games listed on SB 165 are class 2
and would not open the door to class 3 gaming.
10:06:45 AM
MR. ROBERT HALL, fisherman, testified in support of SB 165.
People already play on the Internet. He supports a strong gaming
authority. Locals would join together and put together a game
room.
10:08:47 AM
MS. PAT ROSE, retired psychiatric nurse, testified in opposition
of SB 165. Gambling can be addictive and it is heartbreaking to
families. The move to innocent card games is a foot in the door
to bigger operations in the future.
10:10:23 AM
PASTOR PHILLIP POLK, Calgary Church, Anchorage, testified in
opposition of SB 165. He asserted any gaming license that
requires such a large fee is not small business. SB 165 would
promote greed throughout the state.
10:12:35 AM
PASTOR NORMAN LINDSAY, Assembly of God, testified in opposition
to SB 165. He noted no one has spoken yet in regard to the
devastation to individuals who are adversely affected by
gambling. SB 165 would open the door to big time gambling.
SENATOR FRENCH asked Pastor Lindsay whether his church sponsored
lotteries, raffles, or bingo games.
MR. LINDSAY said no.
10:14:46 AM
MS. NORMA GOTT, Assembly of God, testified in opposition of SB
165. She shared her experience of growing up with a father who
played poker on a regular basis. It was devastating to the
family. Studies prove that when gambling was legalized in Iowa
crime skyrocketed.
CHAIR SEEKINS asked Ms. Gott whether her church sponsors
lotteries, raffles, or bingo games.
MS. GOTT said no.
10:16:43 AM
MR. JIM SCHULTZ, Anchorage resident, testified in opposition to
SB 165. The negative impact that legalized gambling would have
on the State of Alaska would be devastating.
10:18:31 AM
MR. CHIP WAGGONER, executive director, Alaska Catholic
Conference, testified in opposition of SB 165. He asked Mr.
Myers whether betting games in bars were currently legal.
MR. LARRY MYERS, Alaska Department of Revenue (DOR), answered
the current games are missing one element of gambling and that
is consideration and so they are legal. "Consideration" means an
entry fee, a game of chance, and a prize.
10:20:11 AM
CHAIR SEEKINS asked whether there was a definition of personal
residence in the statutes.
MR. MYERS responded AS 11.66.280 contains the definition.
10:22:17 AM
MR. WAGGONER disputed testimony by the sponsor that SB 165
addresses friendly games. SB 165 takes Alaska into commercial
gaming enterprises. The rooms will be designed to entice people
to gamble all of their money. There is no evidence or research
to prove SB 165 would result in less crime or less illegal
gambling, rather it would increase crime. SB 165 would hurt
Alaskans and the state does not have the money to deal with all
the problems the bill would create.
10:24:38 AM
Card rooms add fuel to the fire to those who have susceptibility
to becoming addicted. The American Psychiatric Association
classifies pathological gambling as an impulse control disorder.
10:26:37 AM
The American Research Council review on pathological gambling
agrees that pathological gamblers engage in destructive
behaviors. They commit crimes, run up large debts, damage
relationships with family and friends, and they commit suicide.
10:28:13 AM
CHAIR SEEKINS held SB 165 in committee.
| Document Name | Date/Time | Subjects |
|---|