By Gene Huntington Administrator
The Gambling Control Division
By the time you read this issue of the Montana Tavern Times, multi-game agreements will no longer be required to get permits for a new video gambling machine.
While this should simplify everyone' life, it has raised a number of questions about connecting to an automated accounting system.
The 2003 Legislature authorized multi-game agreements and the agreements were only supposed to be in effect until an automated accounting system was available. Once an automated system was available, the law required that owners be approved to use the system before offering multi-game machines.
All but a handful of locations have signed a multi-game agreement. In the majority of cases these agreements were brought to the location owner by a manufacturer or a route operator. This has created some good questions about the obligation of the machine owner as opposed to the location owner.
The answer to most of these questions can be found in the law that was passed by the 1999 Legislature authorizing multi-game. The statute (23-5-637 (5)) provided:
"If a permit holder voluntarily utilizes an approved automated accounting and reporting system for one or more video gambling machines at a premises, all video gambling machines on the premises that utilize the approved system, including video gambling machines replacing video gambling machines that utilize the approved system, must continue to use the approved system as long as video gambling machines are operated on the premises."
The key to answering most questions is that the obligation to utilize an accounting system is related to the "premises" and not the owner of the video gambling machine. Here are some of the questions we've been getting:
Q. What if I change route operators and the multi-game agreement was signed by the previous route operator?
A. The premises are committed and the new route operator is obligated to report with an approved system at the time you receive notice from GCD.
Q. What if a route operator signed the agreement but now I want to buy my own multi-game machines?
A. You are committed by agreement but you do not need to implement an approved system until you receive notice from GCD.
Q. What if my route operator is already reporting my location and I get a new route operator. Must the new operator continue reporting or can he wait until the location receives notice that it will need to connect?
A. Reading the law it would appear that the new route operator would need to continue to report utilizing an approved system. However, the Division would view filing an application to use an approved system in the next quarter as continuing to report with an approved system.
Q. What if I am a new owner and the previous owner or his route operator signed the agreement. Am I committed?
A. Yes, the obligation is defined by the premises.
Q. What if I am a new owner and the previous owner never signed a multi-game agreement?
A. You will not be able to have multi-game machines until you have an accounting system in place. However, if you use a route operator with an approved system, the route operator could utilize multi-game machines.
Q. What if I have a new building with a new or transferred license. Am I committed?
A. No you are not committed but you will not be able to have multi-game machines until you have an approved reporting system or use a route operator with an approved system.
Most locations do not need to be concerned. About half of the video gambling machines in the state are already reporting on-line or will begin on January 1. Almost everyone else has signed an agreement that should allow them to operate multi-game machines until they receive notice that they need to start using an approved accounting system.
The potential issues will arise when someone starts a new location that has never had video gambling machines or when someone acquires one of the few locations that have never signed a multi-game agreement. In these cases the applicants for these licenses will need to be planning on using an approved system from day one.
The Division will attempt to spot these situations during the licensing process and advise the applicants in time to get an approved system in place before they need to get machine permits.
Source: The Montana Tavern Times, January, 2008, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.