Gaming council OKs list of proposals
The Gaming Advisory Council approved at its latest meeting Sept. 24 in Missoula a small list of proposals to work for in the 2011 Legislature that begins in January.
The legislative proposals will be drafted into a bill to be carried by Rep. Pat Noonan from Butte, who is on the Gaming Advisory Council.
The legislative proposals include:
• Increasing the single card Bingo price to $1, from .50 cents;
• Increasing the maximum payout in Bingo to $800 ;
• Initiate a “stale-date” for winners to cash their video gaming machine tickets. The measure does not call for a specific term, but simply says “reasonable time.” What's reasonable hasn't been determined, but Ask has said 48 hours has been one of the more common limits discussed.
One of the legislative proposals – the “three-way split” – was eliminated from the legislative draft. The plan would have allowed route operators and owners of machines to enter into a percentage split in cases when the route operators do not own the machines.
Some Montana coin machine operators had proposed the idea, while the Montana Tavern Association and others opposed it. On a motion by Council member Steve Morris, the board voted to “exclude that provision” from the legislative bill. Tim Carson cast the only no vote.
After the vote, Ronda Wiggers, lobbyist for the Montana Co-Machine Operators Association, acknowledged to the Council that the idea was not popular with licensed operators. She said, however, that her group believed the three-way split was a small, but progressive, idea to improve the business environment.
“We can't stay stagnant in an innovative business,” she said, “and think the world isn't passing us by. Standing still isn't the answer. We need to look for progressive, innovative ways to improve (our industry).”
Mark Staples, governmental affairs counsel for the Montana Tavern Association, responded that his group wasn't convinced that three-way splits constituted any kind of progress.
“One question on many minds was, was it progress, or just another program that might add more costs on the already beleaguered owner?” he asked.
He said his group does favor innovative ways to improve machine play, such as changes in some games for example, but at this point does not favor programs that cost more but don't “help the bottom line.”
“This is just an honest, respectful difference of opinion about what constitutes 'progress,' and whether such a proposal actually would stimulate business or just add more dominance in one sector while not enhancing the damaged income of the operator.”
Besides approving its legislative proposals, the GAC heard from Rick Ask, administrator of the Gambling Control Division. Ask provided an update on Division actions, including the completed revision of Form 37, the oft-used paperwork to apply for a change in ownership among licensees resulting from a death, divorce or gift of ownership interest.
Ask said the form has been reduced from several pages to just one, which should result in much easier and faster filings for licensees.
Staples commended Ask, the Gambling Control Division, and the attorney general for streamlining a process that had been “very laborious.”
“It was no small project,” Staples said, adding that it took “serious work and effort” to complete.
Chairman John Tooke agreed, saying, “It was a giant leap forward.”
Ask also provided some gambling statistics. He confirmed that FY10 was down about 16 percent from FY09, and that the industry experienced declines in every FY10 quarter, except for the fourth quarter that experienced a slight gain.
He also said that “interest is waning” in the Video Gaming Machine Task Force, which canceled its last meeting.
The Council also discussed some national legislation that could have shocking ramifications should it take hold here. An initiative originated by Costco in Washington state takes aim at that state's control of liquor. Washington, like Montana and 16 other states, is a “control state” that has a three-tier system of control that prevents liquor manufacturers to sell directly to retailers. Manufacturers must sell to distributors, who then sell to retailers, including bars and restaurants. Costco wants to buy liquor directly from manufacturers.
Should the initiative pass in Washington, those in attendance at the Council meeting agreed that Montana could be next.
Staples said that because Montana's gambling system is “pinioned to our liquor control system,” eliminating the liquor control system would eliminate “the basic foundation of gambling control.”
“The three-tier system works well,” he said. “And so does our system of regulating gambling.”
Chairman Tooke said, “In light of what's going on with medical marijuana – complete chaos – it makes a case for the strong regulatory frameworks on alcohol and gambling.”
Councilman Tim Carson said, “If the three-tier alcohol system was eliminated, we'd have to retool just about everything regarding gambling.”
Tim Burton, Attn. Gen. Steve Bullock's chief of staff, said Bullock just recently signed a petition from several states supporting state-control of liquor.
Bullock was scheduled to speak at the meeting, but had a scheduling conflict and was unable to make it.
Finally, the council passed a motion to support the NIL (non-institutional loan) exception, which would allow entities other than recognized financial institutions (banks) to offer 12-month loan terms for a purchase of a video gaming machine. The current maximum loan term for non-institutional entities is six months.
Councilman Mark Kennedy said the exception provides an option to the buyer.
“I think we should encourage that as much as we can,” he said.
Carson agreed.
“Right now, anything helps the business environment.”
The Council set the next meeting for Friday, Dec. 3, in Helena.