Bill would let nonprofits pay video poker gamblers Part of machine’s proceeds earmarked for state

AUGUSTA – Although it’s illegal to use video poker machines for gambling purposes, the practice is common at many fraternal organizations in Maine – and law enforcement often turns a blind eye, says Rep. John Michael.

“It’s an absolutely bizarre situation,” said Michael, an independent from Auburn. “It’s a ‘don’t ask, don’t tell’ deal.”

Michael is pushing for legislation that would make it legal for nonprofit groups that keep the machines to make payouts to players who hold winning hands.

Under his proposal, nonprofits would receive 40 percent of video poker proceeds, which would help pay for grants and scholarships. Another 40 percent would be earmarked for distributors of the machines, while 20 percent of the profits go to the state.

The state licenses video poker machines and permits their use only in nonprofit organizations, such as fraternal and veterans clubs.

State police have conducted crackdowns on video gambling. A York County grand jury this month handed up 90 felony indictments stemming from raids last year on a half-dozen clubs.

Although Michael maintains that clubs would benefit from his bill, many members object to the gambling, said Maine State Police Lt. William A. Snedeker, who oversees gambling activities at the Department of Public Safety.

When state police make their rare raids on clubs, Snedeker said, “we’re responding to citizen complaints.”

In at least one case, a club had installed an automatic teller machine near the video poker game. Compulsive gamblers would clean out their bank accounts playing, he said.

Gov. Angus King said he opposes any effort to expand gambling in Maine, including video poker. Michael’s bill has had a public hearing before the Legislature’s Legal and Veterans Affairs Committee. A work session on the bill is scheduled for this week.