Court asked Order DOF to reduce fees for amusement machines

A locally-based amusement firm has petitioned the Superior Court to render judgment over the Department of Finance’s failure to issue licenses on certain gaming machines under the company’s ownership.

Elms Inc., doing business as Town and Country Amusement, has asked the court to order Secretary of Finance Lucy Dlg. Neilsen to approve the petitioner’s licensing application for its “Cherry Master” machines for a fee of $150 each, based on existing legal requirements.

The petitioner has cited a March 16, 2000 administrative order involving another amusement company, Pacific Amusement Inc., wherein it was held that Cherry Master machines do not fall within the definition of “pachinko slot machines.”

The respondent, in a letter addressed to the petitioner’s controller, denied the Town and Country’s application, citing that the proper fee for the particular machine is at $8,000.

But the petitioner has asserted that Cherry Master machines is an amusement device with a license fee of $150 per machine.

Last April 17, 2000, Ms. Neilsen through the Atty. General’s Office filed a petition for judicial review of the March 2000 administrative order, contending that the said machines are “pachinko slot machines” and should be licensed as such with $8,000-fees.

The civil action filed by the finance department is still pending before the courts.

The petitioner further alleged that its competitor, Pacific Amusement, currently operates various Cherry Master machines without paying for licensing as the rate applicable to pachinko slot machines.

In October of 2000, Town and Country Amusement initially filed a petition for writ of mandamus, seeking an order to mandate the secretary of finance to issue $150-licenses for the gaming machines.

But the petition was dismissed for failure to exhaust administrative remedies last January 25, 2001, according to court records.

Early this month, the firm again sought for declaratory ruling. This time, Ms. Neilsen came out with the letter addressed to the petitioner, stating briefly the reason for the denied licensing application.

Town and Country Amusement through its counsel Jay H. Sorensen, the respondent is acting contrary to her statutory duties by failing to adhere to the finding and conclusion of the administrative order that governs.

The petitioner has asked the court that there be issued against the respondent a writ mandating that the company’s application for licensing any Cherry Master machines be accepted and received according to existing rules.

The firm also prays for relief for the costs of the pending suit, and such and other relief the court deems just and proper.