State of Washington House of Representatives APR 1 1 2016 GAMBLING COMMISSION April 3, 2016 Commissioner Chris Stearns Washington State Gambling Commission PO Box 42400 Olympia, WA 98504 5i Subject: Group 12 Amusement Games Dear Chair Stearns, We are writing to you today to express our serious concern with the direction the Washington State Gambling Commission is headed with respect to its newly approved group 12 amusement games. As you know, the legislature recently agreed upon a supplemental operating budget. As part of that budget, we specifically directed you "to review and reconsider, including repeal, rules adopted to authorize the amusement games classified as group 12 under WAC 230?13-067, recognizing the impact such games may have on state lottery revenues used to support public education programs." See ESHB 2376, Part Section 805(3) [emphasis added}. We hope that this specific directive gives the Commission the guidance it needs to pull back these games altogether while it considers the impacts their proliferation will have on historic state gambling policy. We find it very disconcerting that, without any specific rules to implement these newly authorized games, the industry has already deployed hundreds of machines all across our state, with no consideration of the broader policy and fiscal impacts it will have. Current marketing materials of some manufacturers prey on the fact that these games are akin to slot machines, and tavern owners statewide are leasing and installing machines at a rapid clip. We understand that as of February, there were already more than 400 in play. We ask that you repeal your Group 12 authorizing rules and carefully consider whether this is a path the Commission should pursue. While it was too late in session to consider offering legislation-to ban these games and we were forced to ask for reconsideration through the budget, we will introduce legislation during the next session should these games continue forward on their current trajectory. We are committed to ta king whatever legislative action necessary to pull back this expansion of gambling. Thank you for your consideration. Sincerely, f, - is Representative Pat Sullivan Representative J.T. Wilcox House Majority Leader House Minority Floor Leader