The argument that gambling is unethical is fast losing to the one that it is necessary to shore up state coffers. On the east coast, where placing bets was limited to Atlantic City and Indian reservations, states are now jockeying for more gamblers’ money by lifting restrictions and encouraging casino development. Montana was in a similar position in 2003.
During the state Legislature that year, Carter Republican lawmaker John Witt proposed that Butte become the epicenter of gaming in the northern Rockies. House Bill 757, also referred to as “Destination Montana,” would have created a wide-open gaming district in part of the city, which the legislation’s supporters argued would attract almost $2 billion in development, including 40 music halls, 10 casinos, a theme park, 15,000 hotel rooms, three golf courses and a sports stadium.
The bill was touted as a partial cure for an ailing economy, with proponents arguing that it would create 24,000 permanent jobs. It was the brainchild of Barry Singer of West Palm Beach, Fla., whose company spent about $250,000 pushing the idea, and Robert Tormey of Dayton, Ohio. It enjoyed considerable support, especially among lawmakers from Silver Bow County.
“This is economic development,” Rep. Brad Newman, D-Butte, said at the time. “Are southwestern Montana’s unemployment lines so short that we don’t need thousands of new jobs?”
But critics were leery of the proposal, especially since its backers would pony up just $10 million of their own money for the project and rely on investors for the rest. Before the state House voted on legislation, Rep. Scott Mendenhall, R-Clancy, said, “It’s kind of incredible that today is April 1, otherwise known as April Fool’s Day. Let’s not be fooled by this.”
Skeptics also worried that expanding gambling in Butte would allow Montana’s Indian reservations to follow suit and eventually lead to unrestricted betting across the state. The Montana Gaming Industry Association vehemently opposed the bill, fearing it would force most of the state’s small casinos out of business.
Still, HB 757 cut across party lines in the House, failing on a 59-41 vote, with 20 Republicans and 21 Democrats supporting the legislation. Montana Sen. Jon Tester, who was still a state senator at the time, signed on to the legislation, but it never made it to his chamber.
After its failure, the project’s supporters promised to regroup and return to the 2005 Legislature with a similar proposal and better answers to relevant questions posed by lawmakers. “We will be back and we plan to succeed,” Singer said at the time. But two years later the deal was officially dead.
Gambling, with restrictions, is still a big part of Montana’s culture. Casinos are managed by size and limits on their payouts. Poker games are allowed to a point, while other table games and slot machines are prohibited. With much fanfare, horse racing has returned to the fairs in Missoula and Flathead counties.
What would have happened if HB 757 had passed? Would the Mining City be as familiar among gamblers as Atlantic City? Seven years later, several other states are hoping to replicate what Singer and Tormey proposed here.
Pennsylvania expanded its gambling offerings earlier this year. So did Delaware. Lawmakers in Massachusetts and California are considering taking similar action. Meanwhile, profits in traditional gambling hubs have been decimated by the recession and increased competition.
Revenue from Montana’s gaming machines has also fallen substantially over the last year – attributed to the smoking ban and economy – but it did pick up a bit in the most recent quarter.
If Montana’s 2011 budget is as bad as some economists have forecast, and the jobs picture continues to worsen, lawmakers will be asked to raise more revenue – and it won’t be through raising taxes on citizens. If other state governments are any indication, capitalizing on more gamblers’ money may, once again, be in the cards.