When they met in Helena Jan. 26, the Gaming Industry Association (GIA) Board of Directors were asked to consider a projected budget deficit at the Montana Council on Problem Gambling, the entity that, with substantial funding from gaming business associations, administers the state's problem gambling help and treatment services.
The board's agenda also closely mirrored the one taken up by the Gaming Advisory Council in Billings the week before, dwelling on automated reporting of gaming machine data, revised poker rules and statute, internet gaming, new gaming machine concepts and the smoking ban implementation, as well as coming elections.
Montana Council on Problem Gambling Mark Kennedy, Billings, chairman of the MCPG Board of Directors, addressed the GIA board at the Best Bet Casino, reporting that the council has become a victim of its own success.
Kennedy, who has been involved with the council for five years, said in 2000 the MCPG was working with nine treatment providers, conducted 110 group therapy sessions with 210 participants. Last year, he said, the council worked with 37 licensed clinicians who conducted 970 groups with 2,607 participants.
That near 10-fold increase in sessions and participants means the council is encountering increasing costs to pay treatment providers, Kennedy said. He projected a $27,000 deficit at the close of 2006 with current levels of funding and the ink running red by September.
He said the Montana Lottery has expressed an interest in shouldering its share of the burden and is contemplating a future budget request, but that wouldn't be the short-term--and may not be the long-term--fix.
GIA Executive Director Rich Miller said there have been discussions with the Gambling Control Division, too, about the potential for help and there was some indication there might be some resources available from the state health department as well.
Kennedy said the council board has also been in contact with a grant writer, but that the grant application process is a long-term and on-going one that may not yield dividends in the near term.
He said he will be traveling to the nation's capital to represent Montana before the National Council on Problem Gambling and is planning to lobby the state's Senators and Representatives while there.
Four other state's have contacted Montana's council, Kennedy said, to learn about what is perceived to be an innovative approach to problem gambler help programs utilizing an industry funding component.
Several GIA board members recounted efforts over the years to involve government in a program and the rebuffs they had seen. They said the current group therapy treatment format needed additional support, but would be reluctant to approach government for fear of the government taking over the program.
Automated Reporting Miller told his board the Gaming Advisory Council Audit Subcommittee dealing with internet-based reporting of gaming machine data appeared to making good progress, judging from its report to the GAC.
He said the "tier" concept for operators will require some ironing out.
Those on the top tier will be able to gather and download machine data automatically to on-site computers, then can transfer the data to a main business computer for processing before it is sent to Gambling Control, or can send it directly from the location to the state.
Tier-two operators may manually collect site data for download, processing and forwarding to the state.
Tier-three licensees may continue to gather and report data manually using current methods.
Record keeping requirements will be different for each tier with a minimum required for the top tier and the most for the bottom.
Miller said Gambling Control envisions most route operators stepping into tier-one, though he said he feels most may choose tier-two initially. He stressed that though operators may be reporting weekly or bi-weekly, taxes will still be paid quarterly.
Miller said he thought draft rules may be presented at the next GAC meeting scheduled for April 21 in Helena.
GIA board member and GAC member Tim Carson urged everyone to "pay close attention to this. We don't want operators forced into a tier or to have equipment forced into obsolescence."
GIA President Marc Wass stressed that automated reporting is "strictly voluntary; we don't want forced upgrades."
Live Poker Updates John Tooke, the GIA point man on live poker rules and statute revisions, and a member of the Gaming Advisory Council, told directors the GAC subcommittee was conducting further discussions including representatives from the various business associations. Tooke said some discrepancies will likely be worked out prior to the next GAC meeting in April.
He emphasized that poker rules had not seen any significant revisions for more than a decade, and that this round needs to encompass the whole gamut of needed changes because no one wants to be revisiting the issue with any future regularity.
"We want it done once and done right," Tooke said. "It may be another 10 or 15 years before we take another shot at it." He said he thought the end work product of the GAC subcommittee could be characterized as "a clean-up bill."
He said the booming national and state popularity of live poker has necessitated changes in dealer licensing practices, tournament formats and pot limits (see complete report from GAC meeting in Feb., 2006 Montana Tavern Times).
Tooke noted a bill to update poker statutes would come out of the GAC at the behest of the Gambling Control Division, so would likely represent the consensus comprised in the council--legislative, regulatory, public and business. He said the added complexities of charity gaming operations were being taken into account.
GIA director Kent Frampton said he thought revisions to live poker should be designed to get people away from the no-limits games of questionable regulation now being played on home computers and into the well regulated, limited live games offered in Montana's licensed venues.
Game Designs Concerns regarding on-screen display of potential win percentages featured in a new game design from U-1 and covered at length at the last GAC meeting also generated some discussion with the GIA board.
The GAC had voted to explore legislation that would regulate display of potential paybacks, but the GIA directors indicated they believed such a complex issue would be best sorted out between purchaser/operators and manufacturers and asked their representative on the GAC, Tooke, to take that position to the council.
Miller also reported the Montana Coin Machine Operators had voted two days previously to see if the snag can be worked out by means other than legislative.
One director said he thought excessively robust pay scales would erode the "hold" for operators and hurt the viability of licensed businesses. Another said players would only become confused over "theoretical" payouts for given betting situations, and a third said some players might be inclined to increase wagers to achieve higher potential payouts, getting less entertainment for the dollar in return and perhaps spending more than they should.
After lunch, director Mark Ehli brought the board up to speed on minor bingo statutory modifications having to do with card and win patterns that the GAC is developing for the 2007 legislative session.
Miller then briefed the group on recent filings for the coming June primary election and offered some prognostications on possible outcomes. He also summarized the machinations and results of the December special session.
He noted elections filings are open until March 23 and urged members to work with suitable candidates.
Miller said the U.S. Department of Justice has been eyeing new ways to enforce the Johnson Act which regulates gaming at the national level. He said their latest interpretations could have an impact on reservation gambling and have been received unfavorably by tribes.
He added he was unaware of any activity relating to tribal/state negotiations for new or renewed compacts.
Miller said officials in the state health department have indicated smoking ban enforcement would be stepped up in February.
Tom Kenneally, Jr., said he had attended a health department sponsored meeting in Butte where it was stated a citizen complaint constituted a violation. He said he then checked with Montana Tavern Association attorney Mark Staples, who inquired at both the state and county level, and had been assured that a complaint instead triggers an investigation which could then result in a charged violation, which in turn could be contested.
Miller reported Fiscal Year 2006 second quarter (Oct.-Dec. 2005) gaming machine tax collections were $13,982,000, nearly matching the first quarter collections but well ahead of the same quarter the previous year, which was at $13,125,315.
Miller said GIA membership renewals were "on pace" and would continue to come in through February.
He said the GIA convention will be conducted May 22-24 at Fairmont Hot Springs with a poker tournament to commence the night of the 22nd. A golf tournament will take place on the 23rd along with a trade show and social with the association's annual business meeting conducted on the 24th.
Source: Montana Tavern Times, March, 2006, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.