Attentive readers of this newspaper know Craig Estey. The owner of Dotty's Delis makes more money off video poker than any other Oregonian ("Video Poker's Biggest Winner," WW, July 6, 1994). What readers may not know is that the second greatest beneficiary of state-sponsored video poker is Mark Hemstreet, owner of the Shilo Inn chain. This is surprising, and not just because he doesn't need the money. Hemstreet's video poker revenue is getting attention because of the irony it presents: Here's one of this state's most powerful forces for smaller government receiving a huge windfall from a burgeoning government program. Few people in Oregon are unaware of Hemstreet. According to a recent report by the secretary of state's office, he was the largest maker of independent expenditures--to the tune of $126,878--during the 1996 general election. According to tax activist Don McIntire, Hemstreet believes "the ordinary citizen will do better if there is a smaller government and a freer economic system." So while Hemstreet has reaped millions in tax savings due to the effects of measures 5 and 47, he also has been taking in, albeit quietly, an added fortune--thanks to an arm of the same state bureaucracy he so resoundingly bashes in his political forays. A review of state lottery records shows that the hotelier raked in $706,881.50 in video poker commissions during 1996. Hemstreet's net profit on those commissions surely exceeded $400,000. To earn this money, basically all he needed was a liquor license, a roof over gamblers' heads and some phone lines to Salem. Hemstreet's situation is but an exaggerated version of what takes place all across the state. Hundreds of restaurants and bars have become as comfortable with the easy dollars from video poker machines--and as unwilling to part with them--as stereotypical welfare recipients. These same owners see even more easy money in the so-called "line games" that have been the subject of a series of statewide hearings conducted recently by the Oregon Lottery Commission. Recent conversations with key players in the ongoing line-games debate indicate the lottery commission will not be asked to vote on the question when it next meets (on Oct. 22). To casual observers, this might seem to signal a retreat by the proponents of expanded gambling. It is actually an astute political maneuver to buy time. Before the issue resurfaces, we urge the governor to consider preparing legislation that would put the whole question of state-sanctioned gambling back on the ballot to see if Oregon really wants to keep its bar and tavern owners on easy street. We also suggest that the lottery commission exercise more careful business judgment when it begins to renegotiate video poker contracts with bar and tavern owners next year. Mark Hemstreet does not need the state of Oregon to continue as his sugar daddy. |
