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Video Gambling Monitoring Gets Mixed Reviews

5 December 2003

HELENA, Montana – As reported by the Helena Independent Record: "A consultant's proposal for the state to put into place forms of electronic monitoring of the state's video gambling machines drew some criticism Wednesday from the industry and a member of the state Gaming Advisory Council.

"Charles Meredith, a consultant with BearingPoint, presented a preliminary four-part recommendation for the state to consider as it tries to implement a 1999 law calling for electronic monitoring of all of the nearly 17,000 video poker and keno machines in Montana spread in nearly 1,700 locations.

"…Meredith recommended to the council that the state:

"Continue the status quo, manual reporting for the 315 small independent operators, which have 15 or fewer machines each, that own 12 percent of the machines that generate 7 percent of the state's $307 million in annual net revenue from gambling machines.

"Set up a Web site reporting system, in which 67 route operators and 148 large independent operators — representing 40 percent of the revenue — report the data by punching it into a Web site and transmitting it electronically to the state Gambling Control Division.

"…Set up an electronic data acquisition system for large route operators and selected independent operators to be funded and structured as a public-private partnership.

"…Ronda Carpenter, lobbyist for the Montana Coin Machine Operators Association, said the major route operators she represents have no interest in buying another electronic reporting system.

"…Council member John Tooke, a certified public accountant and a bar owner from Miles City, said he sees no need to proceed with such a Web-based system unless it leads to greater cost efficiencies in the state Gambling Control Divison…"

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