Wisconsin Tavern League

From The Green Bay Press

To the Wisconsin Tavern League, There's a budget shortfall.

They will raise the beer tax!
They will raise your license fee!
They will increase the Cigarette tax!
They will go smoke free state wide!
And now they will take your pull tabs.

"Lottery says illegal pull-tabs cost Wisconsin millions

The Associated Press • November 20, 2008 " Lottery says illegal pull-tabs cost Wisconsin millions | greenbaypressgazette.com | Green Bay Press-Gazette

MADISON — Illegal pull-tab games are costing the Wisconsin Lottery millions in revenue, but prosecutors rarely go after their operators, according to an audit released Thursday.

The Lottery’s sales of such tickets fell 22 percent to a low of $3.2 million in the budget year that ended June 30, according to the Legislative Audit Bureau report. Twenty years ago, pull-tab games brought in $25 million a year.

The Lottery offers 10 such games ranging in cost from 50 cents to $2 per ticket. Players pull back tabs and win money if their tickets reveal certain symbols, such as three cherries in a row.

Taverns, gas stations and other retailers are choosing to sell games offered by private vendors because they get commissions of up to 30 percent compared to no more than 6.25 percent under the state-run program.

Lottery officials say the private games are being sold illegally or under a loophole in Wisconsin law.

State law specifically bans private vendors from operating lotteries but exempts “promotional games of chance” that are sold with products. The Lottery says that’s a loophole that vendors are exploiting to sell tickets, commonly with coupons or collectible “milk caps.” A court decision in 2001 found such tickets qualified for the exemption.

In a letter to auditors, Revenue Secretary Roger Ervin said a staff analysis has concluded the Lottery could generate up to $23 million more per year if state law were changed to put shady competitors out of business.

The private tickets may be a bad deal for customers, the Lottery says, because there is no way to verify their advertised odds or audit whether prizes are awarded appropriately.

The audit said the Wisconsin Department of Justice receives requests from the Lottery, private citizens and local agencies to investigate suspected illegal operators. In recent years, the department has referred 13 cases to local district attorneys for prosecution.

But district attorneys have been reluctant to bring charges, saying they have more pressing priorities and noting the private tickets are prevalent at bars and other retailers, the audit found.

As a result, the Department of Justice has investigated fewer cases in recent years. In the recent budget year, the agency only looked into one such case compared to five in 2005.

The audit bureau is required under state law to review the Lottery’s operations every two years. Thursday’s report also recommended the Lottery make changes to better hold two major contractors accountable for their work.

When will they take your video machines?

Next thing you know they will put security cameras in your bar to make sure you don't cheat the state out of revenue!

The time will come! They need more money!