In Montana, there is an apparent consensus between government, the public and businesses licensed for gambling that the legal gaming status quo--with allowances for changing technologies--should be maintained, and significant expansion resisted.
Montana differs from many gaming jurisdictions in that gaming was legalized largely to assure a reliable and badly needed revenue stream for local and state government, while allowing the state's small, family-owned taverns to earn the income to replace losses from declining sales of beverage alcohol. Of course, having another entertainment option in this rural state is also widely appreciated (78 percent of Montana adults gamble in some form or another).
Beginning in the 1970s and continuing into today, drunk driving has been recognized as the social scourge it is. Dozens of new laws with increasingly stiff penalties have been enacted, discouraging tavern patrons from excessive drinking, then driving home or to another destination.
Indeed, these tough social policies have been paying dividends in drastically reduced drunk driving accidents, injuries and fatalities among adults and the under-aged.
But the state's traditional taverns have felt the effects, and it was recognized by the public and legislature that the new policies would lead to the demise of hundreds of small businesses--often the only ones open in our small communities after 6 p.m.--and the badly needed employment opportunities they provide (22,500 jobs). These oasis are valued social centers for the residents of the state.
So, when gambling was introduced, it was done so with strict limitations:
- Only legal residents who have met rigorous screening processes to assure good character can hold alcohol licenses.
- Individuals can only own one all-beverage alcohol license, but can own numerous beer and wine licenses.
- Only alcohol licensees, after additional strict scrutiny, can apply for and be awarded gambling licenses.
- Montana restricts the availability of alcohol licenses--and thus gambling licenses--using a quota system that limits and apportions licenses based on a given local jurisdiction's population, but also convenience and necessity.
- The number of licensed establishments has, thus, held relatively constant over the last decade and was at 1,675 as of Sept. 30, 2004.
- Each licensed location is allowed a maximum of only 20 machines (some Las Vegas casinos have upwards of 4,000 machines under one roof!).
- Montana has issued permits for about 17,300 machines as of July 1, 2004. That is roughly an average of a little more than 10 machines per licensed location.
- Video gaming accounts for most of all wagering in Montana. Yet it is very limited--especially compared to Las Vegas, Atlantic City, Deadwood (South Dakota), Indian casinos and the like, which may have no limits.
- Video game wagers are a 25-cent minimum and are limited to a maximum of $2. Prizes (other than some Montana tribal venues) are limited to $800.
- Montana machines must, under law, return at least 80 percent of wagers as prizes, but in reality, because of competitive considerations, are returning on average more than 90 percent.
- Only a limited number of games are allowed including, live and video poker, keno and bingo; state lottery, pari-mutuel racing, raffles, calcuttas, sports pools and tabs, shake-a-day and other clearly small-time wagering.
- No significant legislation has been introduced to expand gambling since 1991.
- Montanans apparently support the status quo as two attempts to ban gambling in Montana through the initiative process have failed by huge margins to make the ballot, due to a lack of signatures.
Montana has truly devised a system of small-time, small-stakes "mom 'n' pop" gaming venues that helps keep our taverns from closing, maintains jobs, provides badly needed "voluntary" tax revenue for government and provides another valued entertainment option for Montanans.
Montana Governor Brian Schweitzer said in the Oct., 2004
Montana Tavern Times, "Every other business group wants something. Tavern owners are telling me, 'Just leave it alone. Just stay with the status quo.'"
Sources: The above facts are gathered from sources too numerous to list here, though they are primarily from state statute, the Gambling Control Division and the monthly trade journal The Montana Tavern Times,
published by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.