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nearly $23,000, according to statistics from the Montana Department of Justice Gambling Control Division.
The Montana Lottery reported $53.1 million in ticket sales in FY14 and announced plans to introduce 50 new Scratch games and add a new online game. By growing its lineup of gambling options, the Montana Lottery now has drawings every day of the week at gas stations, convenience stores and other certified outlets across the state.
As one of the most populated regions in the state, Flathead County has become one of the most popular sources of gambling in Montana. In the last 12 months, video gaming machines in the Flathead grossed nearly $30 million, the fourth highest amount in the state be- hind Yellowstone, Missoula and Cascade counties, ac- cording to DOJ statistics.
As the economy improves, the amount of money pumped into local — and statewide — machines continues to rise. From 2013 to 2014, Flathead County posted the largest gain in gaming revenues among the top seven counties with a 7.3 percent increase.
That trend appears to be continuing into 2015 with the most recent quarterly data showing another nearly 2 percent revenue increase in Flathead County and a 7.5 percent rise statewide compared to the same period last year.
No doubt, gaming machines take millions of dollars from customers but also provide a significant amount of money to local and state governments. As video gam- bling took off in the late ‘80s, the Legislature passed a 15-percent tax on gross income from machines. One- third of the collections go to the state’s general fund and the remaining two-thirds are divvied up between local governments.
A total of $58.45 million was collected in taxes across Montana in the last 12 months, according to DOJ stats. Last year Kalispell received $2.7 million in gam- bling revenues from tax collections. Whitefish received over $500,000 and Columbia Falls received nearly $700,000. These funds are distributed to the cities’ general funds.
Statewide video tax collections peaked in FY 2008 at nearly $68 million but tumbled when the recession hit, dropping to $49 million in FY 2011. Since then, like the gross income, the tax revenues have begun to creep back up.
APRIL 22, 2015 | 19 As state and local governments reap the benefits
of gambling tax revenues, there are those who believe more funds need to be designated for treatment re- sources.
While other states take a portion of their gambling revenues and pay for public treatment and resources, Montana does not.
According to Rick Ask, the state’s administrator of the Gambling Control Division who has been with the agency since 1989, lawmakers have historically shied away from devoting funds for public treatment centers or services.
“First thing, it’s very difficult to define problem gambling,” Ask said. “No one asserts that it doesn’t ex- ist, but it’s harder to count.”
Ask said another key reason is because industry groups have stepped up to address the need.
Three industry organizations — the Montana Gam- ing Group, the Montana Tavern Association and the Montana Coin Machine Operators Association — each commit $44,000 annually to the Montana Council on Problem Gambling, a nonprofit organization dedicated to alleviating gambling problems within the state. Also, Town Pump, Inc., which is developing the new casino in Kalispell and operates dozens across Montana, com- mits $44,000 annually to the nonprofit council. The state’s lottery vendors have historically committed $25,000 annually.
According to Neil Peterson, executive director of the Montana Gaming Group and a board member with the Montana Council on Problem Gambling, these funds allow hundreds of Montanans to access help.
The council helps fund a hotline for gamblers and also reimburses professionally licensed counselors across Montana who provide one-on-one and group services for problem gamblers. Last year there were 26 providers across the state that conducted 799 group sessions, according to Peterson. A total of 4,338 people participated in those sessions. (The figures could in- clude participants who attended multiple meetings).
The previous year there were 38 providers who con- ducted 995 sessions.
Peterson attributed the decline in providers to the difficulty in finding and retaining licensed professionals. He said the council continues to actively recruit new counselors.
$379 million
TOTAL ANNUAL GROSS INCOME FROM MONTANA’S GAMING MACHINES IN FISCAL YEAR 2014
“I believe in personal responsibility, but I also be- lieve that if there is less temptation fewer people will succumb to it,” said local resident Jenny La Sorte.
When asked if the owners would consider building the gas station and convenience store without the casino, the developer said the business would not be cost efficient. By eliminating the casino, the site would not be able to sup- port itself, Dan Simpson, a construction and development manager at Town Pump, Inc., told the council.
Councilor Jim Atkinson agreed that the city should follow its “core values” and take a stand against height- ened gambling in the community.
The council narrowly approved the casino by a 4-3 vote and agreed to review the city’s regulations, and other cities’ strategies, regarding gambling oversight in the future.
Meanwhile, the Confederated Salish and Kootenai Tribes have announced plans to replace the existing Gray Wolf Casino and Hotel and build a $27 million casino re- sort in Evaro in the coming months. Earlier this year the CSKT Tribal Council approved the 40,000-square-foot development after debating whether the economic ben- efits would outweigh the environmental and social con- cerns.
The new casino is being touted as a future resort destination for gaming with over 300 machines planned. In a news release announcing the project, the tribes
stated, “Three feasibility studies have supported expan- sion at Gray Wolf to capture millions in untapped reve- nue.”
IN THE 1970S, MONTANA WAS THE FIRST STATE —
besides Nevada and New Jersey, where it was never prohibited — to legalize machine gaming by allowing virtual keno and bingo.
The number of machines proliferated after the state Legislature passed the Video Poker Machine Act in 1985, allowing bars and restaurants to operate up to five poker machines. (The limit was later raised to 20 machines per liquor license in 1991).
In 1986, the state issued 2,887 licenses to businesses to operate video poker machines. That same year, vot- ers approved the creation of the Montana Lottery.
Today there are 15,756 video gaming machines across the state. In fiscal year 2014, Montana’s machines grossed over $379 million with each machine earning
Montana’s Gambling Habit
$22,753
Average annual gross income per gaming machine in fiscal year 2014
15,756
78%
Percentage of Montanans who wagered a bet in the past year,
according to a study by the Montana Gambling Commission.
Video gaming machines operating in Montana
Source: Montana Department of Justice Gambling Control Division