Gov. Mitch Daniels' administration is taking more aggressive steps than his predecessors to combat illegal gambling machines in Indiana's bars, restaurants and social clubs - a move that worries the businesses' owners.
Since Daniels took office in January, the state's excise police have begun confiscating money from the machines, citing owners for illegal gambling and removing the "motherboard" circuitry that control them. The new approach does not constitute a crackdown but could provide an additional deterrent to illegal activity, said David Heath, who has been chairman of the Indiana Alcohol and Tobacco Commission since January.
A representative for the bars and restaurants said the tougher enforcement will kill some Hoosier business. <TABLE cellSpacing=0 cellPadding=0 align=right border=0><TBODY><TR><TD></TD></TR></TBODY></TABLE>
"If Mitch Daniels decides to take a stand and outlaw these machines, I feel like a lot of the mom-and-pop places he stopped at during his campaign won't be there anymore," said Don Marquardt, president of the Indiana Licensed Beverage Association.
Last week Marquardt met with Heath to talk about the new enforcement policies, which have been under way for about 10 days. The association also mailed a notice to some retailers, warning them that if the excise police find illegal machines, they'll take the motherboards and the money, said Michael Curts, the group's executive director.
The association has estimated that 70 percent of its members use unlawful machines to supplement their revenues. Heath said excise police are not trying to put bars out of business, and continue to respond only to complaints.
The change in enforcement comes as Daniels and Indiana lawmakers are considering whether to legalize and regulate the machines - a move that could generate as much as $400 million annually for the state budget.
Daniels, who was elected in November, has said Indiana must decide whether to legalize, regulate and tax the machines, or prosecute those who illegally operate them. On Friday, he said legalization probably can't win a majority of votes in the legislature this year.
"So the remaining choice, of course, is to over time enforce the law we have more rigorously," the governor said. "We have already begun to do that."
The beverage association has been lobbying House and Senate members to pass a law that permits up to five machines per retailer. The group has estimated that if half of the retailers installed the machines and the revenue were taxed at 40 percent, the gambling would generate more than $380 million annually for the state.
Rep. Bill Cochran, D-New Albany, said until lawmakers make a decision on the matter, the state should not impose a stricter policy against the gambling machines.
"If there's a crackdown, it should be after the session if we haven't done anything," he said.
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Since Daniels took office in January, the state's excise police have begun confiscating money from the machines, citing owners for illegal gambling and removing the "motherboard" circuitry that control them. The new approach does not constitute a crackdown but could provide an additional deterrent to illegal activity, said David Heath, who has been chairman of the Indiana Alcohol and Tobacco Commission since January.
A representative for the bars and restaurants said the tougher enforcement will kill some Hoosier business. <TABLE cellSpacing=0 cellPadding=0 align=right border=0><TBODY><TR><TD></TD></TR></TBODY></TABLE>
"If Mitch Daniels decides to take a stand and outlaw these machines, I feel like a lot of the mom-and-pop places he stopped at during his campaign won't be there anymore," said Don Marquardt, president of the Indiana Licensed Beverage Association.
Last week Marquardt met with Heath to talk about the new enforcement policies, which have been under way for about 10 days. The association also mailed a notice to some retailers, warning them that if the excise police find illegal machines, they'll take the motherboards and the money, said Michael Curts, the group's executive director.
The association has estimated that 70 percent of its members use unlawful machines to supplement their revenues. Heath said excise police are not trying to put bars out of business, and continue to respond only to complaints.
The change in enforcement comes as Daniels and Indiana lawmakers are considering whether to legalize and regulate the machines - a move that could generate as much as $400 million annually for the state budget.
Daniels, who was elected in November, has said Indiana must decide whether to legalize, regulate and tax the machines, or prosecute those who illegally operate them. On Friday, he said legalization probably can't win a majority of votes in the legislature this year.
"So the remaining choice, of course, is to over time enforce the law we have more rigorously," the governor said. "We have already begun to do that."
The beverage association has been lobbying House and Senate members to pass a law that permits up to five machines per retailer. The group has estimated that if half of the retailers installed the machines and the revenue were taxed at 40 percent, the gambling would generate more than $380 million annually for the state.
Rep. Bill Cochran, D-New Albany, said until lawmakers make a decision on the matter, the state should not impose a stricter policy against the gambling machines.
"If there's a crackdown, it should be after the session if we haven't done anything," he said.
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