Legislators push for gambling-software jobs in Tennessee

TBI remains opposed to law that would increase gambling-technology employment in Middle Tennessee

Email | Print By Milt Capps

TBI Director Mark Gwyn

Up to 80 jobs paying at least $80,000 a year: That's what Smyrna-based Video Gaming Technologies Inc. says it can relocate from Northern Virginia to Middle Tennessee, if only the General Assembly will change Tennessee law so its software engineers can work within the state on software that will be incorporated only in out-of-state gambling devices.

Last year, Tennessee Bureau of Investigation Director Mark Gwyn played an important role in thwarting a more ambitious pro-VGT bill that would have allowed VGT to produce electronics and equipment in the state as well as software.

At the time, VGT Founder and CEO Jon Yarbrough said he would have been able to relocate about 180 jobs to Tennessee if the legislation had passed, with an initial annual payroll of at least $9 million.

On Wednesday morning, the House Judiciary Committee will review legislation that would allow Tennessee companies to design and produce gambling-related software, provided the technology is not installed in a gambling device at any time the device is in this state.

Under this year's proposal, installation of "made in Tennessee" software into gambling devices made by VGT or others could only be done in other states where that is legal — thus, VGT's Michigan workforce would continue to integrate software with other electronics and cabinetry.

Though constrained in doing business in Tennessee, VGT handles roughly $1 billion a year in wagers for American Indian-owned casinos, earning more than $200 million per year. Most of VGT's gaming machines are in Oklahoma, with business expanding in California, Washington State and Mexico. VGT's growth and Yarbrough's leadership have been heralded by media and industry-watchers nationally.

TBI spokesperson Jennifer Johnson told NashvillePost.com today that Gwyn's views are thus far unchanged from last year.

During the previous legislative round, Johnson explained that TBI endorsing gambling-related business was inconsistent with the fact that TBI regularly "conducts poker machine raids," and it would be embarrassing to find during a raid that devices from a company endorsed by the TBI director were being used in gambling.

Currently, state law prohibits production of gambling devices and related operations in Tennessee, thereby forcing VGT to manage workers in Michigan, Virginia and South Carolina from a small corporate headquarters in Rutherford County.

Middle Tennessee legislators are apparently not united on this issue. Johnson said Rep. John Hood (D-Murfreesboro) inquired about Gwyn's position "a while back," and was assured Gwyn's views on the matter had not changed.

Hood, who withheld his support from the broader bill last year, has not yet responded to an inquiry from NashvillePost.com. Hood is vice chairman of the House Calendar & Rules Committee, among other influential posts.

Sen. Bill Ketron (R-Murfreesboro) is sponsoring the VGT legislation in the Senate, while Rep. Charles Curtiss (D-Sparta) is lead in the House. Neither Ketron nor Curtiss have yet returned calls placed by NashvillePost.com. Courtney Pearre, an attorney with Waller Lansden Dortch & Davis, is representing VGT.