Challenges are providing opportunities
By Neil Peterson
Executive Director
Gaming Industry Assn.
By now everyone is well aware that for the first time in at least 10 years video gaming machine tax collections were less than the same quarter for the previous year. 
I have received calls from a number of newspaper reporters wanting to know what’s going on with gaming tax collections. My answer is very simple: it’s the economy.
While Montana is doing much better than a lot of other states, the economy is having a definite impact on the business climate. The old adage that “gambling is recession proof” is being proved false not only in Montana but across the nation.
While our gaming tax revenues are down 5.4 percent you don’t have to look far to see that other states such as Nevada have experienced significantly greater reductions in their gaming tax revenues.
Just the other day, a reporter from the Flathead area wanted to know why gaming tax revenues in Kalispell were down more than the state drop of 5 percent. All you have to do is read the paper to know the Flathead area has been hit with significant job losses in a number of prominent area businesses.
While Eastern Montana has seen some growth due to increased activity in the oil patch, it's a relatively small portion of the total when compared to the rest of the state.
The gaming and hospitality industry rely on discretionary income.
Tough economic times result in less discretionary income for our customers. We respect that our customers are having other priorities to deal with in these tough times. Even those with jobs are thinking differently when it comes to spending or saving their money.
When you throw in the upcoming smoking ban things look quite uncertain. No matter who you talk to, the prevailing opinion is the smoking ban will have an impact on gaming revenues.
What should operators do? Throw their hands up and pack it in?
In my opinion, no one should throw in the towel. With tough times come opportunities. Challenges provide the impetus and opportunity for change.
Operators need to be more involved in paying attention to providing outstanding customer service. Operators need to be more involved in their industry helping to set in place changes to make the industry stronger and better.
Being proactive rather than reactive will allow operators to shape their future successes.
There is no better time than now to get going and get involved. Those who do will see the results.
Source: The Montana Tavern Times, April 2009, published monthly by Continental Communications, 125 W Granite, Suite 102, Butte MT. 59701