Positive changes ahead for gaming industry
By Neil Peterson,
Executive Director, Gaming Industry Association
Hopefully some positive changes are coming to the gaming industry in the next couple months. By the time you read this article, first quarter gaming tax revenue numbers for fiscal year 2012 should be out. Just like the previous quarter's tax revenue, we are all hoping the trend of increased tax revenues will continue.
Higher tax revenues mean higher revenues for locations and a reverse of the declines we have experienced the previous year and a half due to the smoking ban, downturn in economic conditions and some of the worst winter weather in the last 15 years.
Also coming Jan. 1, 2012, are new video line games – the first new game-type since video gambling machines were introduced 20 some years ago. They will provide our customers a new entertainment experience that is available in almost every other state that surrounds Montana.
Video line games are creating some excitement in the industry, which really needs some excitement. Video gaming machine manufacturers are ramping up their development and production capabilities to meet the anticipated demand for the new video line games and the new video gaming machines. We have at least two new manufacturers in the state as a result of video line games and maybe some more down the road.
Route operators and location operators want to have the video line games loaded on their machines with the switch ready to be turned on at 12:01 a.m. on Jan. 1. I am confident the new video line games will be approved through the Gambling Control Division and ready for the 2012 roll out.
Positive changes are also in the works to improve the simplified licensing process for more situations that occur during the normal course of business. Rules should be in place that will allow the short licensing form to be used when a previous owner has to foreclose under a contract-for-deed sale; when a manufacturer, distributor or route operator changes their business location; when a location owner changes their business entity type, such as from a corporation to a limited liability company, and change of a license type at a location (e.g. beer license to all-beverage license.
These changes didn't happen on their own. They happened because people involved in the industry make them happen. Industry representatives working with location owners, route operators and manufacturers are responsible for getting things done that will improve the bottom line for everyone.
If you are not involved in an industry association, I encourage you to get involved. Everyone in this industry has made substantial investments in their businesses. Don't rely on someone else to take care of your interests. Get involved and know what's going on in the regulatory environment, the business operations environment and the political environment. Get the latest information regarding your business and develop relationships with peers in the business.
If gaming revenues are a major revenue stream for your business, give me a call at 406-459-5771 or e-mail me at n.peterson@bresnan.net for membership information in the Gaming Industry Association. I promise you that industry involvement is definitely worth your time.