Slot machine gambling in Maine has gotten off to a multimillion-dollar start
Slot machine gambling in Maine has gotten off to a multimillion-dollar start. Figures released Tuesday by regulators show customers are pumping an average of $1.2 million a day into the machines at Hollywood Slots in Bangor.
The first day the slots spun was the most lucrative, with people betting $1.76 million on Nov. 4. And Crowds continue to come. Hollywood Slots saw more than $8 million pumped into the machines during the week that ended Sunday, according to a Maine Gambling Control Board report.
"I'm moderately surprised that they were as high as they are. But after walking through the casino one time and seeing the enthusiasm, I guess I understand," said George McHale, chairman of the gambling control board.
Millions of dollars bet at the slots means hundreds of thousands of dollars in revenue for the parlor, the state and the harness racing industry in the first weeks of operation.
Regulators say 87 percent to 95 percent of the money gambled in the machines gets returned in the form of winnings. The remaining money is divided among several parties.
Penn National Gaming, operator of the parlor, receives the largest cut. The board's report shows that in the first 10 days of operation, Penn National received $435,000.
"The numbers are in line with what we hoped would happen," said Jon Johnson, general manager of Hollywood Slots.
The state, the harness racing industry, agricultural fairs and other special funds received a total of $403,000 over that same period. This money is divided under a percentage system set up in state law.
Members of the gambling control board deemed the start of slot gambling in Maine a success during a meeting Tuesday.
"They are up and operating smoothly," said Robert Welch, the board's executive director.
Slot machines arrived in Maine this month after decades of debate over casino-style gambling. Bangor is the only community in the state allowed to have slots. It got permission after voters approved local and statewide referendums in 2003.
Penn National spent $17 million to convert the former Miller's Restaurant into Hollywood Slots. The gaming giant plans to spend another $71 million to build a new building for 1,500 slot machines nearby. That parlor should open in 2007.
So far the Main Street slot parlor has drawn lots of interest and few objections.
Johnson said a line continues to form at the door each morning when the parlor opens, and dozens of people are inside when the slots stop at 2 a.m. He estimates 22,000 people have visited Hollywood Slots during its first 10 days of operation.
A test for the new parlor is finding out whether the crowds are coming for the novelty or buying in for the long haul, said Lawrence Klatzkin, a gaming industry analyst for Jefferies & Co. in New York City.
The early revenues are beating his predictions, he said, but he warned that the operation is still less than two weeks old. The surprise, he said, would have been if Hollywood Slots hadn't drawn a crowd in its opening days.
While describing the opening of Hollywood Slots as smooth, members of the gambling control board did mention one problem.
Regulators need to address discrepancies between the state's computer system and the one Penn National uses. The two systems that monitor the slots are showing different amounts for how much is put into and paid out of the machines each day.
Penn National and regulators are working to solve the glitches and hope to have similar daily figures in the coming weeks, Welch said.
