As reported by: The World Herald
Bars and restaurants that serve alcohol in Nebraska could each have up to 50 slot machines under a new gambling petition supported by veterans groups.

A coalition of veterans groups, including the American Legion and the Veterans of Foreign Wars, wants a constitutional amendment allowing nonprofit organizations to sponsor the slot machines.

The goal is to offset a decline in pickle cards, sold by veterans groups and other nonprofits in Nebraska, with video and slot machines, said Jim Cada, a Lincoln attorney and member of the Nebraska Veterans Council.

"All of this money stays in Nebraska," Cada said. "It's a very positive thing."

Opponents noted the petition would not allow the state to get involved in the regulation of the games. In addition, the state would get little of the money. It would go to the county, nonprofit groups, the bars and restaurants and veterans groups.

In addition, the petition calls for creation of a six-member council to adopt all rules and regulations. The council would include four people from veterans groups and two from nonprofit groups. They would be appointed by the governor.

"It's hard to be negative about something the veterans want to do," said State Sen. DiAnna Schimek of Lincoln. "But, once again, it's out of control of the state. . . . I don't think that would be very good public policy."

Schimek would limit gambling in Nebraska to five or eight casinos. However, she and other pro-casino lawmakers have failed to muster the 30 votes the Legislature needs to put a proposed constitutional amendment to a statewide vote.

The veterans must collect about 110,000 valid signatures to put their proposal on the November 2004 ballot.

The veterans petition was filed with the state by the Nebraska Veterans Council, which plans to use volunteer veterans to gather signatures.

The council is a coalition of seven groups. It was established in 1968 to coordinate veterans issues. It meets at least three times a year, Cada said.

The seven groups send 17 delegates to the council. All 17 are listed as sponsors on the petition.

The seven groups: The American Legion, Veterans of Foreign Wars, AMVETS, Paralyzed Veterans of America, Disabled American Veterans, American Ex-Prisoners of War and the Military Order of the Purple Heart.

The delegates voted unanimously in May to support the petition, Cada said.

However, not every organization polled its membership. For example, The American Legion left the vote to its four delegates, said Richard Baxter, one of the legion's delegates on the council.

Baxter said he voted for the petition because he believes it will help small towns.

The petition was written by John DeCamp, a former state senator and a member of AMVETS.

DeCamp said one goal of the petition is to keep Las Vegas-owned casinos out of Nebraska. "The key thing is to try to find some funding source for veterans who have run out of everything and for charitable groups," said DeCamp.

The petition would:

• Limit slots to bars and restaurants in business if the amendment wins voter approval. This limitation would last until 2010.
• Limit the age of players to 19 or older.
• Permit businesses to have from three to 50 slot machines, depending on their rated occupancy.
• Require a 90 percent return to players.
• Require net profits, after prizes are paid, to be divided four ways: 50 percent to the establishment; 25 percent to the county for property tax relief; 20 percent to veterans group; and 5 percent to the Nebraska Department of Veterans Affairs.

The petition is unlikely to be the only one circulated in the coming year. For example, another petition is the subject of a lawsuit pending before the Nebraska Supreme Court.

The Supreme Court is expected to rule later this year whether that proposal, put forth by bar owners and keno operators, violates the state requirement that constitutional amendments be limited to a single subject.