Montana Gaming Group

Gambling revenues down 5.35 percent pre-ban

 (Gambling Control Division graph and charts below)

    On the heals for two flat and two down quarters in Fiscal Year (FY) 2009 (July 1, 2008-June 30, 2009) the first quarter of FY 2010  brought no relief.
    According to final Gambling Control Division reports, the July 1-Sept. 30, 2009 quarter saw video gaming machine (VGM) revenues recede 5.35 percent from the same quarter one year ago. Operators paid $15,022,382 in taxes compared to $15,866,874 the same quarter the year previous, a drop of $844,492.
    Since gaming taxes represent 15 percent of total revenues, operators saw their gaming revenues decline $5.63 million in the same period, or about $3,311 for the average establishment. Revenues had been growing at a near 6 percent annual clip for the previous decade.
    Though some rural counties with small populations such as Beaverhead, Broadwater, Dawson and Granite showed small improvements, none of the more urban counties in the state did.
    Yellowstone County VGM tax collections were down 3.65 percent or $107,486, and operators there lost $716,573. Missoula County was off 7.52 percent, Cascade declined 2.9 percent, Lewis and Clark was down 6.63 percent, Gallatin was down 9.05 percent, Flathead off 9.7 percent and Butte-Silver Bow down 2.92 percent.
    For the first time in awhile, Belgrade actually ticked up .75 percent. Other cities showing an increase were: Dillon up 2.39, Glendive up 5.95 and Laurel up 3.85 percent.
    Most cities posted declines, the most severe being Whitefish which was off 16.35 followed by Miles City which was down 13.09, Bozeman was off 10.53, Columbia Falls down 9.74, Sidney down 8.02, Great Falls down 7.17 percent and so on (see chart for all cities on the next page).
    Reports indicate the smoking ban that was implemented in taverns and casinos Oct. 1 has taken a further toll. Gambling Control Division Administrator Rick Ask indicated at a Nov. 11 Gaming Industry Association that the division may compile data from machines using automated reporting – about 98 percent of the state's total – for a snapshot of smoking ban revenue impacts at the end of November.
     Gambling Control also reported for the First Quarter:

Liquor and Gambling Licenses
    The Division received 88 liquor, gambling, and combined liquor and gambling applications in the first quarter of fiscal year 2010, a slight decrease from 96 applications received in the previous quarter. However, the number of applications received in the first quarter of fiscal year 2010 represents a slight increase over the 81 applications received in the first quarter of fiscal year 2009.

Video Gambling Machine Permits
    During the first quarter of fiscal 2010, 17,564 video gambling machines received permits, up slightly from 17,306 permits issued in the first quarter of fiscal year 2009.

Card Games and Bingo
    • The number of card tables licensed in the first quarter of fiscal year 2010 was 371, down five tables for the same period the previous year.
    • The number of card dealers licensed has decreased by 57 since July 1, 2009, with 841 card dealers currently licensed.
    • The total number of bingo and keno licenses has increased to 64 in the first quarter of fiscal year 2010, an increase of one over the first quarter of fiscal year 2009.

    Video Gambling Machines Reporting Online - Currently 98 percent of all video gambling machines are reporting through an approved automated accounting system.