The 12 retailers offering state-owned electronic slot machines at “Lottery Row” near Jantzen Beach mall would be pared to six in July 2015, under a new regulation proposed by the Oregon State Lottery director.

State lottery chief Larry Niswender proposes to allow state video lottery terminals at no more than half the establishments at any one Oregon retail strip center. The state lottery estimates the new policy would result in six to 12 fewer video lottery retailers in Oregon, a sign that most of the impact would be in the Jantzen Beach strip center that morphed into a mini-casino complex.

Lottery Row attracts flocks of gamblers from across the state line in Washington, whose lottery doesn’t offer electronic slot machines. Several of the faux restaurants at Lottery Row — known in the industry as lottery delis — were created when existing retailers shrunk their buildings to open clones next door with different business names, sidestepping the lottery’s limit of six gambling terminals per establishment.

Neighbors concerned about spiking crime at Lottery Row recently formed an organization, Friends of Hayden Island, and are circulating petitions demanding the state reduce the gambling enclave at Jantzen Beach.

Lottery Row businesses average more than half a million dollars each in annual gambling profits for the state, plus several hundred thousand dollars each for their owners. Niswender proposes to use a random selection process to cut the number of retailers at Lottery Row when the state’s master contract with lottery retailers expires late in June 2015.

His proposed regulation also aims to limit new businesses created solely for gambling, via a provision that would require applicants to be in business 90 days before getting video lottery terminals.

The lottery will hold a rule-making hearing on the proposed new regulations Thursday, Oct. 18, from 2 to 3 p.m., at the state lottery offices at 500 Airport Road S.E. in Salem.