Gaming down 20.5 percent
Anecdotal reports from various locations across the state appeared to indicate gaming activity in the Third Quarter of Fiscal Year (FY) 2010 (Jan. 1-March 31, 2010) was staging some comeback from the unprecedented 17.38 percent decline seen in the second quarter.
So Third Quarter results must be disappointing for many in the business. The Gambling Control Division said preliminary tax collection figures were off $3.3 million Jan. 1-March 31, 2010 compared to the same time frame one year ago. That computes to a 20.5 percent decline.
Video gaming machine taxes collected were $12.28 million, compared with $15.58 million last year. A decrease of $3.3 million in taxes collected indicates a decrease of $22 million of revenue for licensed gaming operators, or about $13,000 each on average for the quarter.
The Montana Tavern Times has been told some establishments have recovered to pre-ban levels, but obviously that result is not widespread as it is apparent many have seen even further declines in the third quarter. One route operator said he was down 10 percent in the third quarter, back from a 17 percent decline in the first quarter so felt good about the extent of his recovery.
Look for a more in-depth analysis in the Tavern Times next month.
Of the larger counties, Yellowstone is down 22.5 percent from the same period the year previous, while it was down 17.92 percent in the second quarter compared to the same quarter last year. Missoula was down 22.17 percent in the third quarter compared to 19.19 percent in the second quarter. Cascade was off 13.71 percent this quarter and 16.77 last quarter.
Gallatin County was down 25.13 percent versus 21.11 in the previous quarter, Lewis and Clark fell 21.01 percent compared to 16.63 the previous quarter, Butte-Silver Bow was off 17.41 percent compared to 9.68 previously and Flathead was down 23.51 compared to 21.41.
Many of the sparsely populated rural counties posted declines in excess of 30 percent, while three such counties were up very marginally – the only ones in the state.
Of the cities, Belgrade's tax collections – and machine play – were down 31.21 percent, Livingston and Miles City were down 28 percent, Missoula 22.98 percent, Helena 20.46, Kalispell 19.42 and Bozeman was down 23.12. Great Falls saw the least damage with a decline of 14.55 percent.
Most operators are taking what steps they can to stop the hemorrhage by working on improved customer service, more entertainment offerings and so on, but many are resorting to slashing expenses and, anecdotally, layoffs and reduced hours are starting to hit the labor force.