Last quarter VGM revenue dropped 5 percent
Final figures from the Gambling Control Division indicate the second quarter of Fiscal year (FY) 2009 (Oct.-Dec. 2008) was worse than originally projected.
Video gaming machine tax collections state-wide fell by $814,225 or 5.08 percent over the same quarter one year previous. Taxes collected were $15,211,010, compared to $16,025,235 last year.
This decline represents the first ever, same-period year-to-year contraction. Over the last decade, gaming grew at about 6 percent annually, but slowed to 4.38 percent growth in FY 2008. July 1-Dec. 31, 2008, gaming taxes are down 4.76 percent.
The first quarter of FY 2009, last July-September, illustrated the increasing drag on tax collections, up just 0.32 percent over the same quarter the previous year. Taxes collected exactly reflect income from gaming machines.
Most counties were down, with a few notable bright spots among the less populated, and mostly to the east: Beaverhead up 26.1 percent, Carter up 39.21 percent, Fallon up 40.7, Meagher up 22.0, Petroleum up 101.09, Powder River up 23.45, Richland up 30.2, Treasure up 23.5 and Wibaux up 83.24.
The biggest declines in terms of percentages were in smaller counties lying to the west, but in terms of net dollars, it was the most urban counties: Yellowstone down 7.79 percent (down $242,874; from $3.2 million to $2.96 million); Missoula down 8.54 percent ($145,293; from $1.7 million to $1.56 million); Cascade down 6.13 percent ($102,407; from $1.67 million to $1.57 million) and Lewis and Clark down 4.98 percent ($56,966; from $1.14 million to $1.09 million).
Gallatin was down 8.6 percent, Silver Bow was down 3.22, Ravalli down 10.57, Hill was down 10.06, Custer down 6.97, Lincoln down 1.63 and Park was down 9.85.
Of the cities, Kalispell took the hardest hit, down 16.06 percent, followed by Bozeman, down 9.92, Havre down 9.83, Belgrade down 7.76, Billings off 7.82 percent, Hamilton down 7.47 and Miles City down 7.14.
Two cities perked up...way up: Sidney, in the heart of the oil patch, leapt 26.86 while Dillon, at the extreme opposite end of the state, jumped 26.92 percent (why is unclear). Glendive, on the edge of the oil fields, was up 9.4 percent.
Source: The Montana Tavern Times
, February 2009, published monthly by Continental Communications, 125 W Granite, Suite 102, Butte MT. 59701