GCD watching revenue picture
By Paul Tash
Montana Tavern Times
Rick Ask, administrator for the Gambling Control Division, reported on a variety of issues at the latest Gaming Industry Association board meeting Nov. 17.
He said the two percent dip registered in the first quarter of FY2011 that ended Sept. 31 was “a little bit of a surprise for me,” saying he expected a bit better results.
“So we're still watching revenues.”
He said his department is also watching the fall in video gaming machine permits, and its effect on his department's budget.
“We're down about 800 permits from the same time period last year,” Ask said. “That's another trend that we have to keep an eye on.”
He said currently his division subsists on state special revenue, most of which is video gambling machine permit fees.
“We're holding a lot of vacancies open right now,” he said, “just to make sure we break even.”
He added that the new monitoring system has improved his department's efficiency, thus lightening its work load.
He also said the division is fortunate to have a little reserve it can use, as well.
“We're going to be OK in the foreseeable future,” he said. “If things don't turnaround, we'll have to figure out how to make it on less.”
If cutting expenses doesn't work, he said, then “we'll start talking about possibly increasing fees.”
“I don't see that happening,” he said, “at least for a couple years.”
Ask listed a few proposals the GCD is taking to the state Gambling Advisory Council for its approval.
One item involves a couple of amusement games. Though the GCD does not regulate or permit amusement games, “we have responsibility for inspection and approval of devices,” Ask said.
Ask said an issue with bar-top trivia games has come up.
“If you order them without poker games, you're fine,” he said. “If you order them with a poker game, you're not OK. We need a little reminder out about that.”
Also, a question regarding the Golden Tee golf arcade game that is popular in many taverns has come up, specifically regarding tavern-run tournaments.
“There's some question with what you can do with respect to tournament games,” Ask said.
“We'll bring that up at the Gaming Advisory Council and start talking about it,” he said. “We need to make it clear that you can participate in tournaments or make it clear that you can't.”
Another item the GCD will want to discuss with the Council is internet gaming, he said.
“We've always said that for enforcement purposes, our focus with respect to internet gaming, which is an illegal activity, is on the provider of the game or activity,” Ask said.
“We're not going to be out kicking in doors … catching some guy in his underwear in the basement playing poker online.”
One reason the issue is coming up is the story a few months ago in the Great Falls Tribune about a Great Falls man who won $2 million playing internet poker.
The GCD wants to discuss possible options or suggestions the Council would like the GCD to take to the Legislature, he said.
“Do we change, do we stay the same? I think we'll have a good discussion about that.”
Ask also mentioned that 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.
“It doesn't give us any heartburn,” Ask said, “and falls within our reasonable standard evaluation on these types of agreement.”
The rules hearing on the issue is set for Dec. 29, and Ask said “barring any unforeseen changes or objections to it, it will go into effect I think the second week of January.”
In response to a question about a proposal before Congress to legalize poker-betting online, Ask said he believes that bill, championed by Rep. Barney Frank (D-Mass.), contains an opt-out provision that would allow states to keep internet gambling illegal, should the national bill pass.