November 08, 2024
GAMBLING

Slots take in $12M in 11 days As of Sunday, 22,000 patrons had visited new Bangor facility

BANGOR – Ka-ching!

In the first 11 days Hollywood Slots operated in Bangor, patrons pumped more than $12.5 million into the gambling facility’s 475 slot machines, according to a financial report presented Tuesday to the Maine Gambling Control Board.

All of the machines were on line in time for the Main Street racino’s debut in a Tinsel Town-style premiere Nov. 4, Executive Director Robert Welch told board members, who received a briefing on the facility’s startup.

“They are up and operating very smooth,” Welch said. The only community issue has been parking on side streets near the racino, but city police have been working on that.

But the financial report generated the most interest. The report prepared by Scott Woods, the gambling control unit’s auditor, shows that the racino has taken in a total of $12,529,720, according to data collected by Scientific Games International, the contractor the state chose to monitor the slot machines and which also monitors the state lottery system.

Though Hollywood Slots has an internal tracking system of its own, the totals tracked by Scientific Games are the “official” figures the state will use to calculate the amount due in taxes, Woods said.

“Woods is probably the man of the hour today,” gambling board Chairman George McHale quipped, referring to the intense media interest in how the state’s only slots facility is faring financially.

Though the portion paid out to winners is not yet available, the 1 percent tax on the total played generated $125,297 for the state’s General Fund. Of the remaining 99 percent, 39 percent – or $278,150, based on the first 11 days – goes to the state for distribution among 10 beneficiaries set by state law.

Those beneficiaries include the Maine harness racing community, Maine’s public universities and colleges for scholarships, and the city of Bangor.

McHale, however, cautioned after the meeting that the $12.5 million-plus that the racino has racked up does not translate into individual new dollars because some patrons put their winnings back into the slots.

“So it could be the same dollars over and over,” he said. Despite that, Hollywood Slots’ tax rate is based on the total played.

In a separate report, Hollywood Slots General Manager Jon Johnson said that as of Sunday, some 22,000 patrons had visited the Bangor racino.

Eighty people under 21 who tried to enter were headed off at the door, he said.

All in all, he said, “The guests have been very pleased.” It is not unusual to have 50 to 100 people waiting to get in each morning and to have more than 100 people inside at closing time, he added.

In response to a question about jobs, Johnson said Hollywood Slots has hired about 130 people, all but 10 of them full-time and with benefits. With the exception of managers, who needed gaming industry experience, the workers have been drawn from the area.

“The quality of the employees we hired is exceptional,” he said. “The work ethic of Maine [residents] is wonderful.”

Although Tuesday’s report was not one of the legally required ones, McHale asked Woods to provide weekly and monthly financial reports so that members can track racino-related earnings.

“I want to see them every week – my neck is on the line,” joked McHale, who also is chairman of the Maine Harness Racing Commission.

In his report, Woods said he will be keeping a close eye on the distribution to slots’ beneficiaries.

“We’ve got contact with those certain agencies, especially in the beginning, to make sure the money is going into the right places and is being used in the right way,” he said.

Board member Peter Danton of Saco wanted more details about how the 2 percent to stabilize the state’s OTBs, including one operated by Hollywood’s parent company, Penn National, will be used. The percentage was a legislative concession to the OTB operators, who were worried that the slots would cut into their profits.

“What if they are making money? Do they still get the [subsidy]?” Danton asked. He asked whether the OTB operators have done anything to “stabilize themselves … or is it just a gift that we’re giving to the off-track betting parlors?”

“I’d like to know exactly what the money is being used for,” he said.Welch will provide the information at a future meeting.

Woods’ financial report had a breakdown of daily totals, the highest so far at $1,758,179 on Friday, Nov. 4, the day Hollywood Slots opened its doors to patrons who showed up four hours before the 10 a.m. opening time.

Less than two weeks into its operations, the emerging trend appears to be that Thursday through Sunday see the heaviest play, with most daily totals exceeding $1 million.

Monday, Tuesday and Wednesday appear to be generating less action, with totals in the $800,000 and $900,000 range.

The exception was Nov. 2, when Hollywood Slots held a private party featuring charity play. On that day, guests played to the tune of $87,158, some of which was paid out in jackpots.

Johnson said after the meeting that it was difficult to measure the Bangor racino’s startup success compared to other facilities of its type.

“Every [facility] is different, so there really is no typical [performance standard for new racinos],” Johnson said Tuesday. “All I can really tell you is that the gaming facility is performing as we had anticipated it would. We’re pleased and the customers are very positive.”

Hollywood Slots

The amount of money played

Wednesday, Nov. 2* $87,157.91

Thursday, Nov. 3 not open

Friday, Nov. 4 $1,758,178.63

Saturday, Nov. 5 $1,481,042.70

Sunday, Nov. 6 $999,578.89

Monday, Nov. 7 $955,904.28

Tuesday, Nov. 8 $874,637.09

Wednesday, Nov. 9 $846,543.54

Thursday, Nov. 10 $1,210,170.27

Friday, Nov. 11 $1,599,884.15

Saturday, Nov. 12 $1,532,322.77

Sunday, Nov. 13 $1,184,299.73

Total $12,529,719.96

*Charity event

SOURCE: Maine Gambling Board

Unpublished note used to prepare graphic:

The breakdown of beneficiaries of slots revenue is as follows: gambling control board administration, 3 percent; harness racing purses, 10 percent; Sires Stakes fund, 3 percent; agricultural support fund, 3 percent; Healthy Maine, 10 percent; University of Maine System scholarships, 2 percent; Maine Community College System Scholarships, 1 percent; fund to encourage racing at Maine commercial harness racing tracks, 4 percent; fund to stabilize the state’s off-track betting facilities, 2 percent for the first 48 months and 1 percent thereafter; and host municipality, the city of Bangor, 1 percent.

– Maine state statute


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