Gaming tax collections up 6.6 percent, $3.3 million
Pub Date: 10/1/2005
Video gaming machine tax collections rose by 6.6 percent in Fiscal Year (FY) 2005, which ended June 30, down from the headier 8.5 percent pace seen the preceding year.
Tax collections grew by a healthy $3.3 million compared to $3.93 million in FY '04. Last year the machines generated $50.1 million in taxes and $53.4 million this year. The revenue flows to the state general fund and approximately two-thirds is returned to local governments.
Industry authorities have attributed the steady growth to a number of factors, among them: a stable operating environment'; a dismantled logjam over automated accounting and reporting issues which freed pent up game software development'; the introduction of dual-game platforms which run both poker and keno in one device'; ramped up marketing and promotion by operators looking to recoup investments in hardware and software upgrades'; and those same upgrades yielding significant advances in player entertainment value and, thus, more play.
Machine upgrades have been occurring at a furious pace, representing millions of dollars in owner investments. The new multi-game formats, just approved in FY 2004, now outnumber traditional mono keno and poker platforms.
At the close of FY '04, there had been just 865 multi-game machines permitted. At the close of FY '05, there were 6,220, and at the opening of FY '06 July 1 of this year, already 8,139 were permitted, with just 2,839 straight poker machines and 6,239 straight keno machines still in service.
At their peak in 1993, there were 8,650 poker machines permitted'; in 2003, there were 13,659 keno machines permitted at their peak.
At the beginning of FY 2006 (July 1, 2005), there were a total of 17,014 machines in operation compared to 17,324 at the beginning of FY 2004. Some have long speculated that the introduction of multi-game cabinets could lead to the eventual contraction of the number of machine permits issued.
Machine permit fees amounted to $4.2 million for FY 2005 with $1.8 million funnelled back to local governments, and $4.1 million in FY '04 with $1.88 million sent back to cities and counties. The balance is retained by the Gambling Control Division to fiance its regulatory activities.
In some of the larger cities, collections were:
Butte-Silver Bow - $3,161,073 in FY '05 versus $3,045,259 in '04
Great Falls - $5,175,359 in '05 versus $5,006,308 in '04
Billings - $8,762,989 in '05 versus $8,295,356 in '04
Missoula - $4,522,858 in '05 versus $4,300,189 in '04
Helena - $2,730,244 in '05 versus $2,518,390 in '04
Bozeman - $1,690,899 in '05 versus $1,584,652 in '04
Kalispell - $2,087,198 in '05 versus $1,981,237 in '04
In some medium sized cities:
Lewistown - $490,005 in '05 versus $468,561 in '04
Miles City - $839,355 in '05 versus $761,401 in '04
Havre - $1,069,912 in '05 versus $967,771 in '04
Sidney - $648,626 in '05 versus $516,643 in '04
Anaconda - $698,228 in '05 versus $661,339 in '04
Livingston - $656,007 in '05 versus $583,832 in '04
In some small towns, there were gains and declines:
Terry - $17,178 in '05 versus $17,261 in '04
Philipsburg - $51,598 versus $44,417 in '04
Plentywood - $126,516 versus $118,528 in '04
Stanford - $10,082 versus $11,066 in '04
Cut Bank - $378,856 versus $387,727 in '04
Scobey - $31,552 versus $31,347 in '04
For a complete listing of VGM tax collections by city and county for FY 2005 and FY 2004, go to and look under "Gaming Taxes."
The number of locations licensed to offer gambling remained static comparesd to last year at 1,700, down from the peak of 1,759 in 1999.
The addition of live poker tables continues to surge. At the end of FY 2005, there were 359 tables licensed in 289 establishments compared to 240 tables in 196 locations at the end of FY 2004.
Poker dealer licenses kept pace, jumping from 411 at the end of FY 2004 to 802 at the end of FY 2005. Live keno licenses continue to lag, offered by 93 establishments in 2005 compared to 98 the preceding year and 139 at its peak in 1998.
Source: The Montana Tavern Times, Oct. 2005, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.