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Gambling revenue declines sharply

by ERIKA HOEFER/Daily Inter Lake
| May 16, 2010 2:00 AM

Gaming across Montana continued to decline in first three months of 2010.

The state Gambling Control Division’s figures show a 20.5 percent decrease in gaming tax revenue between Jan. 1 and March 31 this year.

The Montana Tavern Times estimated that tax collection figures were off $3.3 million during that period, the third quarter of the fiscal year.

That translates to a decline of $22 million in revenue for licensed gaming operators, or roughly $13,000 per operator.

Second-quarter figures showed a drop of 17.38 percent, which was unprecedented at the time.

Flathead County gaming tax revenue decreased 23.51 percent over the three-month period, 2.3 percent more than its decline over the previous three months. Dropping 42.18 percent, Lake County suffered the biggest setback in the state.

Three counties did experience growth in gambling.

Granite County increased 9.59 percent, Golden Valley County 7.62 percent and Daniels County 3.05 percent.

“We’re definitely off from last year,” said Jeff Windorski, owner of Cattlemen’s Casino in Kalispell. He cited the economy and the state smoking ban as reasons his clientele has diminished. Even more than the gaming, his bar revenue has dropped significantly from a year ago.

To combat the change, he publishes coupons in the Inter Lake on Mondays, posts five-for-five deals at Rosauers and offers free pool all day on Sundays and through 3 p.m. during the week.

He poured concrete over a green space to create a place for smokers to congregate outside, started a Vegas giveaway drawing to entice others to come in and made cutbacks to his staff.

“There’s not one magic bullet,” he said.

While he saw a boost in business when Sawbucks closed down across the street last year, business is largely following the statewide trend. He hopes the opening of the Montana Club this summer will draw more attention to the south side of town.

“We just take it a day at a time,” he said.

Gaming across Montana continued to decline in first three months of 2010.

The state Gambling Control Division’s figures show a 20.5 percent decrease in gaming tax revenue between Jan. 1 and March 31 this year.

The Montana Tavern Times estimated that tax collection figures were off $3.3 million during that period, the third quarter of the fiscal year.

That translates to a decline of $22 million in revenue for licensed gaming operators, or roughly $13,000 per operator.

Second-quarter figures showed a drop of 17.38 percent, which was unprecedented at the time.

Flathead County gaming tax revenue decreased 23.51 percent over the three-month period, 2.3 percent more than its decline over the previous three months. Dropping 42.18 percent, Lake County suffered the biggest setback in the state.

Three counties did experience growth in gambling.

Granite County increased 9.59 percent, Golden Valley County 7.62 percent and Daniels County 3.05 percent.

“We’re definitely off from last year,” said Jeff Windorski, owner of Cattlemen’s Casino in Kalispell. He cited the economy and the state smoking ban as reasons his clientele has diminished. Even more than the gaming, his bar revenue has dropped significantly from a year ago.

To combat the change, he publishes coupons in the Inter Lake on Mondays, posts five-for-five deals at Rosauers and offers free pool all day on Sundays and through 3 p.m. during the week.

He poured concrete over a green space to create a place for smokers to congregate outside, started a Vegas giveaway drawing to entice others to come in and made cutbacks to his staff.

“There’s not one magic bullet,” he said.

While he saw a boost in business when Sawbucks closed down across the street last year, business is largely following the statewide trend. He hopes the opening of the Montana Club this summer will draw more attention to the south side of town.

“We just take it a day at a time,” he said.