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The Oregon Lottery is preparing to remove its largest concentration of video-lottery terminals in the state—because of a dispute about poker.
The Lottery will disable all of its machines at Portland Meadows on July 16, according to a letter sent to the racetrack last week. The June 26 contract-termination notice says Portland Meadows can appeal the decision to a judge.
That's a big deal for one of Oregon's biggest gambling hubs, which has the most video lottery terminals at one Oregon location—10—and the state's largest horse racing track.
It's the result of a long dispute over Portland Meadows operating a poker room, despite repeated state rulings that paid card dealers are against the law.
Over a dozen poker rooms have existed in Portland since 2010, two years after the city began licensing clubs. While these clubs are allowed to remain open and operating they live in a fuzzy grey area, often violating state and local laws.
Portland Meadows opened doors to their poker room just months before one of the city's most successful poker room owners, John Ogai, committed suicide. His club, Encore, was shut down for employing professional dealers.
After the violation at Ogai's club, state investigators revved up their law enforcement. In May, an undercover police sting at the Portland Meadows in particular led to several violations discoveries.
On May 16, Portland Meadows received a letter from lottery director Barry Pack to "immediately cease operating in violation of Oregon and city laws."
This was after Oregon State Police's undercover detectives visited the poker room and identified at least six violations of state and local law. Those laws prohibit bets of more than $1, employing professional dealers, and having the "house" act as a bank.
Portland Meadows general Karstan Hennze says the racetrack is trying to save its deal with the Lottery.
"We have met with Lottery and will be asking for reconsideration," says Hennze. "We value our partner relationships and believe that this will be resolved."
The contract termination letter, served to Portland Meadows on June 26, says that Portland Meadows' violations of state card-game laws continued after racetrack officials met with the Lottery in May and said it had reformed its practices.
The Oregon State Police and Lottery Security Section conducted an undercover investigation last month and found eight violations—including many of the same violations they'd been reprimanded for in May.
Shutting down 10 lottery machines could have significant consequences for Portland Meadows. In April the cash-strapped, 70 year-old horse track and poker room asked the Oregon legislature for permission to install 40 new lottery machines.
"We're trying to keep the track alive," Mikey Dewey, the track's lobbyist, told WW at the time.
Oregon Lottery's contract termination with Portland Meadows, along with the huge new Ilani Casino in Southwest Washington (which has 75 gaming tables and 2,500 slot machines) are hits to the city's poker scene—which saw its heyday underground, and is withering quickly under state scrutiny.