Gaming taxes up 6.5 percent in most recent quarter
Pub Date: 4/1/2006
Gaming machine tax collections for the second quarter of Fiscal Year (FY) 2006 (Oct. 1-Dec. 31, 2005) were up 6.5 percent over the same quarter the previous year.
The Gambling Control Division reported $13,982,777 was collected this year versus $13,125,315 last year, a gain of $857,462. Second quarter tax
collections, however, were nearly identical to the previous quarter when $13,993,833 was reported collected.
Gaming business authorities have noted steady gains in the 5-7 percent range over the last couple of years and attribute them to improved technology and performance of the machines and, more importantly, an improved Montana economy.
Gaming machine programs have seen a significant round of enhancements since the logjam over automated reporting issues was broken in 2003, releasing new engineering of graphics, animation, audio and hardware components, including multi-game software.
Not to be overlooked, though, is that the very substantial investments in new equipment has spawned robust promotional efforts by operators working to recover investment costs, authorities note. Some promotions involve "match play" where an operator will match a player's first $5 or $10 in play. The "match play" expenditures by operators are taxed and accounted for in the same way as player expenditures, so tend to inflate tax collection numbers.
Gaming tax collections in Butte-Silver Bow were relatively stagnant, increasing only $3,111, while tax collections in Great Falls increased $55,630.
In Billings, collections grew from $2,195,518 to $2,319,997, an increase of $124,479. Missoula saw collections grow $61,470 while Helena taxes increased $58,906.
Some others were: Bozeman, up $45,578'; Kalispell, up $36,275'; Belgrade, up $45,698'; Lewistown, up $14,915'; Livingston, up $13,694'; Libby, up $7,631'; Havre, up $8,265 and Hamilton, up $23,743.
Some cities saw declines including Polson, down $5,940'; Miles City, down $405'; Anaconda-Deer Lodge, down $10,624'; Fort Benton, down $1,432'; Shelby, down $2,914 and Colstrip, down $5,910
Source: The Montana Tavern Times, April, 2006, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.