Montana Gaming Industry Divided on Proposed Video Poker Limit Increases

A bipartisan effort is underway in Montana to raise the maximum bet and payout limits for video poker machines, a move that has sparked division within the state’s gaming industry. Senate Bill 153, sponsored by State Sen. Wylie Galt (R-Martinsdale), aims to update gambling limits for the first time since 1987.

The Montana Coin Machine Operators Association estimates the proposed changes could increase gaming revenue by $8-10 million annually, benefiting the state’s general fund.

Legislative Proposal to Raise Limits

The proposed bill, which was introduced in the Senate’s Business, Labor, and Economic Affairs Committee, seeks to increase the maximum bet from $2 to $4 and the maximum payout from $800 to $1,199. The change would apply to video poker machines installed beginning in 2026.

Notably, the proposed payout cap for VP machines in Montana sits just below the $1,200 threshold that would require gamblers and businesses to complete a W-2G tax form for federal reporting purposes.

Proponents argue that updating the limits would bring in additional revenue and modernize Montana’s gaming industry. Ronda Wiggers, representing the Montana Coin Machine Operators Association, emphasized that the bill would help businesses increase revenue, stating:

“People don’t grouse when they get an opportunity to win more money. You have happy customers that are still giving more money to the bottom line of those locations.”

Concerns from Opponents

Despite from industry representatives, the proposal has met opposition from those concerned about problem gambling and the financial burden on small businesses. Critics argue that the increase could harm smaller establishments that own their machines outright rather than leasing them from operators.

John Iverson of the Montana Tavern Association voiced concerns that Montana’s gambling industry is intended for entertainment purposes and should remain low stakes.

“If you want to gamble big bucks, there’s direct flights here from a lot of airports. You can get down to Vegas in a couple hours and you can bet all the money you want,” Iverson said.

Other opponents, including Gamblers Anonymous representative Garry Rafter and the Gaming Industry Association, raised concerns about the social impact of increasing betting limits, highlighting the potential for higher rates of gambling addiction.

A previous attempt in 2023 to increase bet limits to $2.50 and payouts to $1,000 was narrowly defeated in the state House with a 47-53 vote. The Senate committee is expected to vote on the new proposal next Wednesday.

Montana Sports Betting Sees Steady Growth

In addition to debates on video poker, Montana’s sports betting market continues to grow. The state’s betting handle for November 2024 reached $7.4 million, reflecting a 7.25% increase compared to November 2023. However, the handle experienced a slight month-over-month decline of 2.1% from October’s $7.6 million.

Football remains the dominant force in Montana’s sports betting sector, ing for over 65% of the handle in November 2024, an increase from 57% in the previous year. Basketball betting, in contrast, saw a decline, with its share falling from 34% in 2023 to just over 20% in 2024.

Despite fluctuations, November’s gross gaming revenue (GGR) reached $1.6 million, representing a remarkable 122% increase from the previous year. The strong rebound followed October’s revenue struggles, which saw a loss of $27,000 due to unfavorable betting outcomes.

Source:

“Montana gaming industry split on proposal to raise maximum video poker bets, payouts”, nbcmontana.com, January 24, 2025.