$1.13 billion wagered on video gambling

By The Associated Press - 01/02/2007

BILLINGS (AP) — A record $1.13 billion was wagered on video gambling in Montana in fiscal year 2006 despite a slight decline in the number of gaming machines, the state Justice Department said.

The Gambling Control Division said the money fed into the video gambling machines from July 2005 through June 2006 was up over the $1.06 billion wagered in fiscal year 2005 and $1.01 billion in fiscal year 2004.

Gambling tax collections — from a 15 percent tax on grass gambling machine income — totaled just under $57 million in 2006, up from a little over $53 million in 2005. The tax money goes into the state’s general fund.

The Gambling Control Division said the total number of video gambling machines declined from 17,239 in 2005 to 16,498 in 2006. But officials say those figures can be misleading, because each machine can now offer several games.

Initially, video gambling machines offered just one game — poker or keno — and for a time a bar or casino could only have 10 poker and 10 keno machines. Now, casinos can have up to 20 machines with any combination of games.

‘‘I think gambling’s on the rise, maybe because of the bells and whistles,’’ said John Blair, owner of the Reno Club and a former chairman of the state Gaming Advisory Council.

And newer bells and whistles are on the way.

U1 Gaming Group, Inc., of Bozeman, is testing a new machine that has a 24-inch wide, ultrahigh definition screen and an adjustable chair.

Steve Arntzen a co-owner and chief operating officer of Century Gaming Inc. of Missoula, which is distributing the U1 games, said the difference between the U1 machines and traditional games is like the difference between PlayStations 2 and 3.

Spending on other forms of gaming in Montana were well below the spending on video gambling.

In fiscal year 2006, $39.9 million in lottery tickets were bought in Montana; $7 million was bet on simulcast racing; $3.5 million on live bingo; $3.1 million on live keno and $1.9 million on live horse racing.

The state doesn’t track how much is wagered on live poker games. However, the Gambling Control Division said the number of card dealer licenses fell from 582 in 2005 to 450 in 2006.