GIA covers 'stale dates,' more
When the Gaming Industry Association Board of Directors met in Helena, Nov. 11, they decided to endorse the concept that gaming machine win tickets should be subject to an expiration date as a means of cutting down on ticket counterfeiting.
The subject initially came up at the Oct. 23 Gaming Advisory Council meeting, with the Council opting to solicit further input from interested parties. Discussion centered on the need to reduce ever easier and more accurate fraudulent ticket reproduction, and the tendency for the new-to-Montana thermal-printed tickets to deteriorate relatively quickly, especially through exposure to heat.
Jeff Bryson of the Gambling Control Division (GCD) said during the GAC meeting that ticket verification can be problematic and that an expiration date might help reduce the potential for, and number of, disputes. GCD Administrator Rick Ask said at the same meeting the gambling statute could be changed to include a "stale date" or the statute could be changed to allow the Division to set the date in rule.
Some members of GIA said they preferred that win tickets be redeemed before a customer leaves the premise, but appreciated that very occasionally someone may forget to redeem it promptly, and that a reasonable time ought to be allowed to do so. The board voted to adopt 24 hours as its preferred redemption time period. That position will be conveyed
Atty. Gen. Steve Bullock addressed GIA directors.
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to the GAC at its Feb. 3 meeting.
It was also noted that on-premise signage would need to be posted to notify customers of the change if and when it occurred. Printing the information on win tickets could be accomplished with future software upgrades, machine manufacturer representatives told the group, but that to require printing it on current generation machines with impact printers would require an impractically expensive software retrofit.
The board then discussed implementation of the Clean Indoor Air Act, noting that gaming revenues, already suffering under a contracting economy, had dipped significantly further as a result of full implementation of the smoking ban Oct. 1.
GIA Executive Director Neil Peterson said the law regulates indoor air and that outdoor customer areas are not addressed, though he acknowledged some local jurisdictions may push for that authority. Other directors suggested all interested parties should first let the dust from the Oct. 1 implementation settle and should avoid further complications until a realistic assessment of the ban effects can be made.
Peterson again urged members to remain vigilant to actions at the local level and advised members to be proactively engaged and "out front" of developments.
He added that people he's talked to with tobacco prevention groups expressed pleasure at the very high rate of compliance from licensed businesses. He said about only a dozen complaints involving licensed premises had been registered statewide in the first five weeks of the ban, and the bulk of those were about "outside" smoking.
But some directors expressed serious concerns the ban's effect on gaming - and gaming tax - revenues.
Heidi Schmalz, representing Century Gaming, said play on the over 4,000 machines her company services "is down about 16 percent across the board" over the previous quarter, meaning the 16 percent decline comes on top of a 5-6 percent recessionary decline reported in the quarter prior to the ban's implementation. Some specific locations were down 30 and 40 percent, she added, with eastern Montana faring better than the more populous west.
Schmalz said she thought a decline in unemployment might be the key to some future level of recovery for gaming businesses. The coincidental timing of the ban's implementation during a major recession was "amazingly unfortunate," she said.
Clint Lohman of Rocky Mountain Gaming said they, too, had seen declines in the wake of the ban in the range of 5 percent in eastern Montana to 15 to 20 percent to the west.
Joe McKenney, who operates the Cartwheel in Great Falls, said his package store business was steady and the bar was holding its own, but that gaming was down 5.5 percent.
"We used to have a dozen or so customers in the morning; now that's gone," McKenney said. His happy hour is somewhat stronger but the place empties out earlier in the evenings now, he said. He is placing more emphasis on working his players club and using more direct mail, he said.
GIA President John Tooke said Gambling Control's Ask had randomly sampled 25 machines and found a 13 percent decline from one year ago, with more urban establishments taking a relatively bigger hit than their more rural counterparts.
Mark Ehli of Big B Bingo in Billings said since the ban attendance in his bingo parlor is down 6 percent, but "spend" is up 3 percent, while machine play in his casino is up 10 percent over last year. "I think we'll get the 6 percent (decline in players) back in six months," he said. "We're seeing a lot more new faces."
Tooke said he had observed that many smoking patrons will leave for a smoke and come back in, but that when it was time for another smoke, they would step out and not return.
Tooke said operators are going to "need to be imaginative to counter this." He said if "business enhancements" can be identified, now is the time to start working on them. "We need to see if we can find a silver lining," he said.
Shifting gears, Tooke noted the Department of Revenue and Department of Justice Gambling Control Division had collaborated with the Gaming Advisory Council subcommittee to produce a highly streamlined license amendment application process that now involved a simple single form and inclusion of select documents.
Tooke said the result was clearly positive and commended all involved, noting regulators and business operators should now realize substantial savings of time and money when amending a license. A hearing on rules to implement the changes was scheduled for Dec. 3 and Tooke said he thought there were no snags to be anticipated.
Industry had asked the Advisory Council to explore a simplification of the amendment process is cases where a party departs a license due to death or divorce or when shares are gifted from one partner to another.
Ehli reported on efforts to update bingo rules, noting representatives of fraternal, charity and commercial bingo games had met and agreed the game needed revitalization, and that examining payout limits could be part of the answer. He said another meeting of licensees would occur before the next Gaming Advisory Council meeting Feb. 3 and they would develop a better handle on specific recommendations. "I'm encouraged," he said.
Atty. Gen Steve Bullock and GCD Administrator Ask joined the board for lunch where Bullock told directors that justice department staffing – "a good group" – was gelling and "settling down."
"It's hectic and crazy every day," he said, "but I'm enjoying it."
He noted the good work done on streamlining the license amendment process, but urged GIA and regulators to continue to identify opportunities to "make your business operations easier while we continue to fulfill our regulator responsibilities."
Ask told the board indeed gaming revenues were down and some of the decline appeared attributable to the smoking ban, but that more firm numbers at the end of the month would be more revealing. He said it is typical of a smoking ban to see a decline, then some recovery.
When the meeting resumed, Tooke noted a vacancy on the Gaming Advisory Council since Kalispell Mayor Pam Kennedy, a local government representative to the council, had lost her re-election bid. He urged directors to consider if qualified members of their local governments would be good applicants. Other GAC terms were expiring Jan. 1 but Tooke said he was hopeful the Council could be kept intact since the issues learning curve was long and steep.
Peterson told the board association finances were tracking as expected and the budgets appeared to be in line.
After setting Jan. 27 as the next meeting date, the board adjourned.