Aug 2014
Transcription
Tavern Times Visit these Hospitality/Gaming Industry Web sites: Montana Gaming Group: http://www.montanagaminggroup.com Montana Gaming Research & Education Fund: http://www.gamblingmontana.org Montana Winners Circle – Page 15 E-mail: [email protected] Main Office: 406-782-3660 VGM growth “Dedicated to Serving the Montana Tavern and Gaming Industries” Vol. 19, Number 9 Last quarter shows gain of 2 percent By Paul Tash Montana Tavern Times Video gaming machine (VGM) revenues in the fourth quarter of Fiscal Year 2014 totaled the most in nearly five years, according to preliminary figures recently released by the state’s Gambling Control Division. VGM revenues increased to about $14.7 million in the fourth quarter, compared to $14.4 million in fourth quarter FY13, an increase of about 2 percent. Last quarter’s revenues are the highest since the $15 million total in the first quarter of 2010, the quarter before Montana’s smoking ban took effect. Despite last quarter’s gain, tax revenues remain about 8 percent behind A Tash Communications Publication August 2014 the industry’s high mark of $16 million recorded in the second quarter of FY08. Last quarter’s revenues were also up nearly 3 percent from the previous quarter (3Q FY14), which were about $14.3 million. Revenues for the entire 2014 fiscal year totaled about $57 million, about the same as the year before. Industry representatives hope last quarter’s results mark the start of more stable, positive VGM revenue growth. Revenues have been streaking, both good and bad, for several years. The first three quarters of FY14 showed slight decreases, so the fourth quarter, which ended June 30, provided a nice rebound. Previous to this year, the industry enjoyed a string of See REVENUE Page 6 Summit is back with new games By Paul Tash Montana Tavern Times Summit Gaming recently released its first upgrade to its Royal Touch machine in nearly six years, and representatives of the company said more games are on the way soon. The gaming manufacturer released four new line games in April with its new Royal Touch upgrade, which also includes $50 and $100 bill acceptors and is tier 1 compatible. The line games are Peter Jacobsen, Sands of Time II, This publication endorsed by the Montana Tavern Association Treasure Hunt II, and Raging Rubies. The Peter Jacobsen line game “is all new,” while the other three titles carry over from successful keno games, said Kelly Michalies, Summit’s operations manager in Billings. Another feature of the Royal Touch upgrade is expanded menu screens, which allow operators to “turn on” more games that are already on the machine. So cus- Change service requested: 914 Holmes Ave., Butte, MT 59701 PRSRT STD U.S. POSTAGE P A I D Permit No. 93 Livingston, MT tomers receive an additional five games at one time that they didn’t have access to before. The upgrade also includes some hardware enhancements. For example, state inspectors don’t have to remove the logic board to access machine data, they can simply use a flash drive. Removing logic boards runs the risk of damaging them. Kit Seaton, a game designer for Summit, said response to the new line games has been “very good.” “We’ve been concentrating on the Royal Touch in the short term,” Seaton said. “We’ll be updating other platforms in the near future.” Those platforms include the MegaPlex and the Royal Touch Evolution. He said the updates will proSee SUMMIT Page 8 MTA reviewing by-laws Janet Prescott, chairperson of a Montana Tavern Association subcommittee working on changes to the organization’s by-laws, is requesting input from MTA members. “I’m asking members to review the current by-laws, which are in the back of the 2014 MTA Contact Book, and develop ideas to be presented to the attendees at convention,” she said. “This would enable us to have discussion about the proposals and go from there.” MTA convention is Sept. 8-11 in Bozeman. Montana Tavern Times – 2 August 2014 Tri-county storms on to raise funds August 2014 By Paul Tash Montana Tavern Times An old-fashioned thunder bumper failed to dampen the festive mood at the Tri-County Licensed Beverage Association’s annual dinner-fundraiser July 15 in Helena at Jorgenson’s. Festivities started outside in nice weather, which lasted about an hour. A strong wind then blew some rain in, and pushed the party inside. But no matter, Jorgenson’s had dinner set up downstairs, and the evening progressed beautifully. Tri-County volunteers pushed a variety of fundraisers, available to party-goers for a donation. Those events included beer pong and a popular hoop shoot. In addition, Jorgenson’s Barb Morris dealt onehand games of five-card stud. Dennis White, the dinner’s longtime emcee, worked the microphone, encouraging participation in the fundraisers and keeping the evening moving along. The Tri-County group also raffled off several prizes, including some cold, hard cash. A delicious prime rib buffet, featuring the cheesiest cheesy potatoes ever, was served around 7:30. After dinner, the popular Calcutta grabbed everybody’s attention as 11 lucky participants were drawn. Taking seats at the Calcutta were Yacht Basin, Rocking R Bar, Mountain West Bank, Off the Wall Advertising, Island Liquor, First Security Bank, VFW East Helena, Papa Ray’s Casino, Lucky Lils Casino, Chubby’s Bar, and Mallory Redmond, who won her seat in a raffle. White began the Calcutta by calling seat numbers drawn from a tumbler. The first eight numbers called eliminated those players sitting in the corresponding seats. Those eight who were first out won $200. The final three finish in the “big money,” with third place receiving $400, second place $800 and first place $2,000. The last two standing, or sitting as the case may be, were Neven Sather of Papa Ray’s and Lavonne Hahn of Chubby’s Bar. They decided to split the top prize money and take home $1,400. The third-place winner, receiving $400, was Dax Cetraro of the Rialto, who earlier had purchased a seat from First Security Bank … for $500. Sorry, Dax, but your “win” cost you a hundred bucks. As always, proceeds from the night’s fundraising activities as always help Tri-County Licensed Beverage Association support a variety of non-profit organizations and community events throughout the year. Montana Tavern Times – 3 Paul Tash photos LAVONNE HAHN is thrilled to split the top Calcutta money with Neven Sather, top, while Barb Grubbs, left, shows off her raffle winnings to her husband Jim. Lower left, Maria Bachmeier, Kristen Cetraro and Nava Connor pose. Lower right, Chris Simac and Ashley Bachmeier try their hand at hoop shoot. Bottom, Randy Wilke gives his wife Sue some beer-pong pointers. Montana Tavern Times – 4 Tavern Times August 2014 Opinion/Editorial Membership, convention and football By Chris Caldwell MTA Administrator The Montana Tavern Association office has been busy with membership renewals and convention details this past month. July is the beginning of our new membership year, and memberships have been coming in steadily and at a higher number than this time last year. We’ve also gained some new members. If you haven’t yet renewed, please do so at your earliest opportunity. All members paid by Aug. 15 are listed in our Convention Agenda book. MTA’s 59th Annual Convention and Trade Show is only five weeks away! The Convention is Monday through Thursday, Sept. 8-11, at the GranTree Inn in Bozeman. Registrations for the Convention are starting to come in. If you plan to attend and did- T he Trade Show is filling up, but a few booth spaces are still available. Chris Caldwell n’t receive a registration form, call or email me and I’ll make sure you get one. The Trade Show is filling up, but a few booth spaces are still available. If you are a vendor who plans to participate in our trade show, I recommend you register soon. Our Convention host, the Gallatin County Licensed Beverage Association, has great plans for those who are coming to Convention. It will be well worth your time to attend. Hope to see you at Convention. This year’s “On The House*Pitality” brochures and Footballmania tickets have been distributed to many establishments across the state and are available for sale. Get yours now! This promotion entitles the purchaser to 60 free drink tickets for taverns across the state. You will also be entered in a football sweepstakes for prizes generated from 17 weeks of the 2013 NFL football season. Eleven prizes are awarded each week, and a grand prize is awarded at the end of the season. A whole season of fun and 60 free drinks for just $20. You can’t beat that. For those tavern owners wishing to participate in this promotion by selling tickets, please call or email me for more information. Incentives are available for the sellers. As always, if you have any questions or need any information call me at (406) 442-5040, send an email to [email protected], or if you are a member, leave a message on our hot line. State’s liquor warehouse an extremely busy place as long as the others. These racks, howevBy Steve Swanson er, make up the repack section, where indiLiquor Control Division vidual bottles are picked from one box and Each day hundreds upon thousands of placed in another. cases of liquor move across the state of All product picked goes to a vestibule, Montana. Half of the freight is destined for agency liquor stores, while the other half is destined for the state liquor warehouse. Located in Helena in an unmarked building about 100,000 square feet in size, the state liquor warehouse is the hub for all liquor sold in the state. It’s constantly turning product to fill the state’s liquor demand. Twenty-six columns of racking, each more than 150 feet long and packed with cases, make up the center of the warehouse. These columns contain Steve Swanson just about every size and variety where it is counted one last time, shrink of whiskey, vodka, rum, gin, tequila and wrapped and loaded on a truck for delivery. brandy imaginable. From the most popular The Liquor Control Division employs 30 products, such as Black Velvet Canadian individuals to run the distribution and licensWhiskey and Nikolai Vodka, down to onetime special order products, such as Dry Fly ing functions. A third of these individuals operate forklifts and pallets jacks, zipping Triticale Whiskey, these columns hold it all. up and down and snaking through the On any given day, about 140,000 cases columns as they pick cases to fill each of liquor are stored at the warehouse. order. Immediately to the north and east rests Each month, we ship an average of pallet after pallet of additional inventory. 62,000 cases from the warehouse. In the These are regularly stacked three pallets past fiscal year, which ended on June 30, high and five pallets deep. we shipped a total of 752,977 cases. That To the west is another set of racks, just O total represents an increase of almost 3 percent over the prior fiscal year and equates to more than $124 million in sales. Above the warehouse sits a small mezzanine that houses the rest of the division’s staff. The distribution team sits on one side, researching new products, ordering products to replenish what was shipped, answering phone calls and monitoring accounts. On the other side sits the licensing team, processing applications, maintaining accounts and answering a wide array of phone calls and emails. July marks the time of year when the licensing team reviews and processes masses of onpremises license renewals. To date, we have received about 2,100 renewals, more than 750 of which were filed electronically via the Department of Revenue’s online Taxpayer Access Point. The sounds of horns, back-up beepers, telephones, printers, copy machines and voices continually echo throughout the warehouse and offices for more than 10 hours each work day. Each day, the staff works on deadlines to ensure orders are processed, cases are picked, incoming trucks are unloaded and outgoing trucks are loaded. Evening comes, the lights go out, and the cycle starts right back over again the next day. n any given day, about 140,000 cases of liquor are stored at the warehouse. August 2014 Tavern Times Montana Tavern Times – 5 Opinion/Editorial Protect your assets from cybercriminals By Conte Vorobetz Investigator Gambling Control Division (Last of three-part series) Last month we discussed some practices to help reduce the risk of cyber criminals infiltrating your system. In this last part of the series we will discuss other practices to reduce your risk. Create backups If an intruder corrupted your computer systems or destroyed software programs, files and folders on the system, could you continue to operate your business effectively? Will your insurance coverage compensate for the lost business of several days, while the computer systems are repaired, and information is rebuilt manually? Many general insurance policies no longer cover cyber losses. Backups are another form of insurance to help you recover when an intruder attacks or a disaster such as fire or flood harms your technology environment. Copying files, folders, and software onto some other media (like a disk or CD) provides a source for recovery if it is needed. Manually creating copies can be tedious, and automated options are available. You may already have some of the content in another form, such as software programs that were initially loaded from CD. Keep software current Software vendors routinely provide updates (also called patches) to fix problems and enhance functionality within their products. In addition, many of these patches fix vulnerabilities that could be used by viruses and other attacks to harm your computer and its contents. By keeping software up-to-date, software malfunctions and opportunities for system compromise are minimized. Control access Good access control is critical for wireless access since use of this type of connectivity is less visible. It is not uncommon for someone sitting in a car in the parking lot to be able to access an unsecured wireless network and jeopardize everything on the entire network. You may have a wireless or remote access (dial-in) connection to your network and not realize it, since many vendors install them to provide remote support capabilities. Point-ofsales devices and inventory devices communicate to central servers via wireless. The more access restrictions you can legitimately place on your network using blocking capabilities within the firewall and other similar services, the easier it will be to keep it secure. Use encryption When access to information cannot be tightly controlled, such as e-mail or a credit card transaction over the Internet, this information can be concealed through a mathematical process called encryption. Encryption transforms information from one form (readable text) to another (encrypted or scrambled text). The encrypted text appears to be gibberish and remains so for people who don’t have the formulas (encryption transformation scheme and the decryption keys) to turn the encrypted text back into readable text. The encryption mechanism must be sufficiently complex or someone with electronic tools could guess the formulas and defeat the encryption. Establish risk plan In order to be effective, security must be consistently applied across the organization. For example, the use of very tight technology controls with lax or non-existent organization- al security policies does not provide protection. The best way to validate your security is through the application of a security risk management methodology. In a structured sequence of activities, participants at multiple levels of the organization work together to devise a plan that makes sense for the needs of the organization based on its use of technology. To be comprehensive, this planning process must consider the following areas: 1. Security awareness and training for all technology users 2. Organizational security policies and regulations 3. Collaborative security management (partners, thirdparties and contractors) 4. Contingency planning and disaster recovery 5. Physical security 6. Network and data security In the rush of daily activities it is easy to overlook the need for such things as employee security training, contingency planning, and disaster recovery. You may not even be aware of the level of dependency your organization has developed on technology and the potential impact that a failure of one or more components will cause. See CYBER Page 6 Know your candidates before they’re legislators W By Neil Peterson GIA Executive Director The 2015 Legislative Session convenes in a little over five months. Campaigns will be heating up in the next few weeks as candidates look to peak on Election Day in November. Every two years I write a similar article to this one sometime during an election year, but it’s worth repeating for the Neil Peterson Montanans who make a living in the hospitality indusnew slate of legislators comes to Helena. try. It is nearly impossible for your represenWhen we enacted term limits for our tatives to find the time to meet before Legislature, we fundamentally shifted the January with all the candidates to discuss way your representatives work to improve our issues and concerns and to develop your business climate during a legislative session. Just when relationships have been working relationships with them. Nor is there enough time to find out what issues developed, term limits kick in, and a whole e can’t wait until after the election to get involved because it’ll be too late to make a meaningful difference .... are important to the candidates. That’s why it is so important that folks involved in the hospitality industry take the time now to get to know the candidates from your Senate and House districts. Take the time to develop a relationship with your candidates, so when they get to Helena in January, you can be a source of information on issues that may arise during the session that will impact our industry. You are a voter in their district, and so it’s you who they seek to represent during the legislative session. We can’t wait until after the election to get involved because it’ll be too late to make a meaningful difference. I encourage all of you to get involved now. Come January 2015 it will make a difference. Thanks, and I look forward to working with all members of the Legislature in the New Year. Montana Tavern Times - 6 August 2014 Cyber from Page 5 By developing a security risk management plan, these dependencies will be highlighted and mitigation steps can be identified to reduce the potential impact of technology compromise or failure. Get technical expertise Because you have a business to run and technology security is not something you can afford to have consume all or most of your time, good technical assistance can be a valuable asset. Employees, friends, and family with a technical interest can help you get started, but you need someone with security training and experience to tie all of the individual activities together into a working security protection mechanism for your organization. Further information on these steps can be found at Internet Security Alliance website: http://www.isalliance.org/. If you become a victim of cybercrime, contact the Gambling Investigations Bureaus or your local Law Enforcement Agency for assistance. (Conte Vorobetz has been an investigator for the Gambling Investigation Bureau since 2011. He specializes in online investigations and can be reached at 406-586-9703.) Write us Revenues from Page 1 nine consecutive quarters of revenue growth, but that streak followed eight consecutive quarters of severe revenue declines. Those drops in 2010 and ‘11, which totaled about 23 percent during the period, coincided with the nation’s economic recession and the state’s smoking ban. Of the state’s seven largest counties, five showed growth last month – Cascade, Flathead, Gallatin, Lewis and Clark, and Missoula – while Yellowstone was flat, and Silver Bow showed a decline. Flathead paced the larger counties, improving a solid 7.3 percent over last year, with revenues moving to $1,219,000 from $1,137,000. Fourth quarter results for the other largest counties are: • Cascade, up 3.4 percent to The Montana Tavern Times welcomes letters to the editor. Letters must include the writer’s name and address. The word limit is 300. Mail to Montana Tavern Times, 914 Holmes Ave., Butte 59701, or email the office at pault@tashcom munications.com. The Times reserves the right not to print letters it finds objectionable. A Tash Communications Publication Tavern Times Business and News Office: 914 Holmes Ave., Butte, MT 59701 • TEL: 406-782-3660 • FAX: 406-494-1324 • E-MAIL: [email protected] Paul Tash, Editor/Publisher • [email protected] Office phone: 406-782-3660 • Cell: 406-491-0100 Paul Vang, Contributing Writer • [email protected] Phone 406-494-5736 Ad Production • [email protected] Reprints of articles and back issues are available at a cost of $10. If you wish to begin receiving the Montana Tavern Times, send your name, mailing address, telephone number and $29 to the address above. Postmaster: Please send address change requests to 914 Holmes Ave., Butte, MT 59701 All rights reserved by publisher This publication has been endorsed by the Montana Tavern Association $1,551,000 from $1,499,000; • Gallatin, up 4 percent to $792,000 from $761,000; • Lewis and Clark, up 4 percent to $1,078,000 from $1,037,000; • Missoula, up 1.4 percent to $1,390,000 from $1,371,000; • Yellowstone, down .1 percent to $2,916,000 from $2,920,000; • Silver Bow, down 4 percent to $782,000 from $815,000. The growth recorded in Flathead and Missoula is a good sign for the state’s northwest region, which has been slow to recover from the economic downturn. Ravalli County (county seat – Hamilton) also showed a significant increase, climbing 10.3 percent to $362,000 from $328,000. Some eastern counties in the oil-rich Bakken region showed renewed strength after following off some in the previous two quarters. Dawson County (county seat – Glendive) jumped 16.9 percent to $221,000 from $189,000, while Richland (county seat – Sidney) moved up 7.0 percent to $504,000 from $471,000 last year. Custer County (county seat – Miles City) edged up 1.8 percent to $280,000 from $275,000, but Roosevelt (county seat – Wolf Point) fell a bit, about .4 percent, to $426,000 from $427,000. Fourth quarter results for other larger counties across the state include: • Hill (county seat – Havre), down 5.1 percent to $270,000 from $285,000; • Park (county seat – Livingston), up 2.9 percent to $209,000 from $201,000; • And Lincoln (county seat – Libby), down 5.1 percent to $290,000 from $306,000. Overall, 35 counties enjoyed revenue growth, while 21 showed losses. Please see the accompanying tables for gaming revenue specifics on other counties and cities. August 2014 Montana Tavern Times – 7 Montana Tavern Times – 8 Summit from Page 1 vide “more modern play,” but with the “traditional Royal Touch feel that players like so much.” The four new reel games are the first half of the upgrade that later will provide two new keno games and two new poker games, Michalies said, hopefully by the end of the year. “We’ll show what we have” at the Montana Tavern Association convention in Bozeman in September, he added. Michalies said the company is looking at new cabinets, as well. In the meantime, Summit will continue to “foster personal relationships” with its customers, Michalies said. Michalies thanked Summit’s “dedicated players” for sticking with Summit the last several years as it dealt with problems created by its parent company, GameTech International. Summit Gaming through 2012 claimed about a third of the market share in Montana, with about 5,000 machines. However, Reno-based GameTech, struggling with debt and poor management, was hindering Summit’s research and development efforts that kept it from developing new games and MTA Insurance Products! y l e v i us d l c x E se r o d A en T M e h t y 96 b 9 1 e c n i s CALL ONE OF OUR DEDICATED AGENTS TODAY! – Rod Gabriel, 532-3884 – Rod Crawford, 532-3881 – Mark Kuhr, 756-4137 Work Comp • Property • Liability • Liquor Liability • Health Ins August 2014 machines. Customers were growing restless, as games and machines became stale, or even obsolete in some cases. GameTech filed for bankruptcy in July 2012 in order to restructure about $16 million in debt. Then in August 2012, FortuNet, one of the nation’s largest electronic bingo manufacturers and distributors, offered an undisclosed bid for GameTech’s assets. The U.S. Bankruptcy Court in Delaware accepted the bid, and the sale went final in October 2012. News of GameTech’s bankruptcy and subsequent purchase sparked some concern among state industry representatives, who wondered what the actions would mean to the operators of all those Summit machines, especially the service and maintenance of those machines. However, Michalies said, the company never stopped servicing its machines. “Machine service kept us going,” he said. “Our service department is still going strong.” And now the company is back into research and development, and bringing new games to the market. “Software development takes time,” Michalies said. “But we’re returning to a competitive level.” “We’ve got lots of exciting stuff.” August 2014 Montana Tavern Times – 9 Montana Tavern Times – 10 August 2014 August 2014 Montana Tavern Times – 11 Montana Tavern Times – 12 August 2014 August 2014 Montana Tavern Times – 13 Liquor Biz Suit over watered-down beer dismissed By Paul Vang Montana Tavern Times An Ohio federal judge, Donald C. Nugent, threw out a multidistrict lawsuit against AnheuserBusch that accused the brewing company of watering down its beers. According to the Law 360 report, Judge Nugent determined that the Federal Alcohol Administration Act allows a tolerance of 0.3 percent, either above or below the stated percentage of alcohol on the label, and that the eight states in which the class actions were filed either explicitly or implicitly support the federal law. “There is no allegation in the complaint that the alleged mislabeling of alcohol content in Anheuser-Busch products has ever exceeded the tolerance amount of 0.3 percent,” Judge Nugent noted. The plaintiffs in the case had alleged that a number of A-B products, such as Budweiser, Bud Ice, Bud Light Platinum, Michelob, and others, had lower-than-advertised content. Washington privatization Two years ago, the state of Washington privatized the liquor business, from distributors down to retailers, following a public referendum backed by Costco and other big box retailers. My Northwest, an online news service of KIRO radio in Seattle, came to some general conclusions about the big change after two years of experience. First of all, it’s definitely easier to get liquor. Four times as many stores are selling spirits today compared to before privatization. Overall, statewide sales are up by 3 percent. It’s more expensive than it was before. The Bellingham Herald reported the average price per bottle is about three dollars higher than when the state was running the business. There are also indications that alcohol-abuse problems are increasing. In King County (Seattle), based on prior statistics, about 10,000 alcohol-related emergency room visits would have been the norm between June 2012 and September 2013. However, the county experienced about 5,500 more emergency room visits than anticipated during that period. The State Department of Health researcher who looked into the situation cautioned that there wasn’t enough information to say that privatization was responsible for the increase in ER traffic, but felt it was worth tracking. Prior to the big change, critics of privatization predicted that it would make it easier for minors to get their hands on liquor. The researcher from the State Department of Health said there wasn’t any data to support that teen alcohol use was up, though surveys indicate that positive views of alcohol use were up. Compliance checks indicate that sales to minors haven’t significantly changed since privatization. Whiskey shortage? Bourbon and whiskey sales are experiencing a worldwide boom, according to a USA Today report, leading to speculation of a possible shortage of the American whiskeys, especially Tennessee whiskey. According to David Ozgo, chief economist for the Distilled Spirits Council (DISCUS), sales rose 10.2 percent in 2013. “We have seen an explosion internationally,” Ozgo said, citing that exports of bourbon and Tennessee whiskey exceeded $1 billion last year, up from $400 million a decade ago. Lower tariffs in some markets, including China, Australia and South Korea, have opened the door to American whiskey products. Tennessee whiskeys, such as Jack Daniels (Brown-Forman) and George Dickel (Diageo) have been leading the whiskey market. In fact, gains in whiskey sales are outpacing production by a two-toone margin. Along this line, the Wall Street Journal reported that BrownForman’s earnings for the quarter ending April 30 were up 17 percent, based on higher sales and profit margins. According to a separate article in the Herald-Leader of Lexington, Kentucky, Diageo, the Londonbased distilling giant, announced plans to build a new distillery in Shelby County, Kentucky. The distillery will have a capacity of 1.8 million proof gallons, or 750,000 9-liter cases. In addition, the company would build six barrel-storage warehouses on the site. Until now, Diageo hasn’t owned an active distillery in Kentucky, though it has owned the Sitzel-Weller distillery in Louisville, which is being developed into a tourist attraction. Diageo also markets Bulleit bourbon and rye whiskeys. The Diageo proposal still has to get approval from local government. No Oregon privatization Backers of an initiative to put a liquor privatization measure on the November ballot have dropped their efforts – for the time being, according to Oregon Live, the online service of The Oregonian. Backers of the change had two possible proposals to put on the ballot, one of which was stuck in the state’s Supreme Court over disputes in the wording of the proposal. A second, less-preferred measure, was in the signature-gathering process, but privatization backers, calling themselves Oregonians for Competition, decided that they preferred the stuck measure, so they elected to step away from the process for this year. The group continues plans to push for privatization during the 2015 legislative session, or if that fails, to try again for the 2016 ballot. On the other hand, a spokesperson for the Oregon Beer & Wine Distributors Association said the news was welcome and “not a surprise—this was a solution in search of a problem to benefit big grocers—and with it over we can turn our attention back to creating economic opportunities that help our craft distillers, brewers and wine growers continue to grow and succeed.” Craft brew build-up SABMiller, the London-based brewer and world’s second largest brewing company, is increasing efforts to build up its share of the U.S. premium beer market, where, according to a Financial Times report, it has been lagging behind the explosion of higher-price craft beers. In an interview, Alan Clark, SABMiller’s chief executive, said that the company needs to build their market share of premium beers to “well north” of 20 percent, and a big jump from the company’s current 14 percent share. In the United States, SABMiller markets beer through the joint ven- ture, MillerCoors. The beer group is putting emphasis on their “craft” labels, such as Leinenkugel’s, Third Shift and Blue Moon. Clark said that the largest craft beer in the United States, Blue Moon Belgian White, “is ours,” and that 25 percent of the growth in the American craft beer industry came from SABMiller brands. The craft brewers’ trade association, the Brewers Association, commented that the big international brewers seek to “blur the lines between their crafty, craftlike beers and true craft beers from today’s small and independent brewers.” While SABMiller works on expanding sales, the real speculation, as usual, is on which company is going to try to do a takeover of the brewing company. Usually the speculation is that AnheuserBusch InBev, the world’s largest beer company is getting ready to make a move. The Financial Times reports that Carlos Brito, CEO of A-B InBev has an appetite for expanding the company. A drawback, however, would be that if A-B InBev did acquire SABMiller, they would likely have to sell off the U.S. portion of the business because of anti-monopoly laws. A surprising new possibility was that Diageo, the world’s largest spirits company, but also owner of the Guinness lines of beers, might be interested in SABMiller. A merger with SABMiller would be a major deal in the African market where Diageo’s beers would be a strong partner with SABMiller’s longtime African beer brands. At the other end of the beer business, Forbes magazine published a feature on the sad story of the demise of the Stroh’s brewing company, once the nation’s third largest brewer. Stroh’s lost its market position when Coors began distributing nationwide. At the end, the remaining pieces of Stroh’s were, essentially, rummage sale bargains. Jameson expansion Finally, returning to the whiskey scene, Irish whiskey distiller, Jameson, part of the Pernod Ricard distilling company, is building a new facility in County Cork, Ireland. The expansion is part of a plan to double sales of Jameson’s to more than 1 billion Euros by 2020. The goal is to build a brand as big as Jack Daniel’s, according to the Bloomberg report. Tavern Timetable Montana Tavern Times – 14 Aug. 15 Sept. 8-11 Sept. 18 Sept. 26 — UPCOMING EVENTS — Toole County Tavern Assoc. festival, Elks, Shelby MTA Convention, GranTree, Bozeman Gaming Industry Association, Best Bet, Helena Gaming Advisory Council meeting, Missoula — STANDING DATES — 2nd Tues. of month 1st & 3rd Wed. month Second Tue. of month Quarterly (call) 1st Thurs. of month 2nd Wed. of month 2nd Wed. of month 2nd Tues. of month 1st Tues. of quarter 3rd Thurs. of month Last Tues. of month 2nd Thurs of month 2nd Thur. of month 2nd Wed. of month Last Wed. of month 1st Mon. of month 2nd Tues. of month 1st Tues. of month Carbon/Stillwater TA 237-9844 Cascade Co. TA 453-9567 Central Montana TA 868-4693 Flathead Co. TA 270-8069 Hi-Line TA 265-9551 Lake Co. TA 883-2553 Lincoln Co. TA 293-4493 Miles City TA 234-3164 Missoula Co. TA 728-0030 Park County TA 222-0665 Ravalli Co. TA 821-1853 Richland Co. TA 433-4354 Sheridan-Richland-Daniels 474-2358 Silver Bow TA 494-6062 Southwest Montana TA 835-2150 Toole Co. TA 434-2442 Tri-County LBA 475-9560 Yellowstone TA 656-3991 Buying or selling your business? I can help! • Specializing in putting buyers and sellers together for merger and acquisition of businesses • Past beer and wine wholesaler in Montana and Arizona • 22 years experience in alcohol-related businesses • Seeking listings in Tavern, Restaurant and Gaming Industry “I’m looking forward to meeting many of my old-time friends and getting to know new acquaintances. If I’m given the opportunity to work for you, I don’t believe you will find anyone who will work harder than I will.” 404 N. 31st Street, Suite 205 P.O. Box 7225 Billings, MT 59103-7225 Cell: 406 425-0180 E-mail: [email protected] August 2014 MTA seeks nominations for employee award By Paul Tash, Montana Tavern Times The Montana Tavern Association's Public Relations Committee is calling for nominations for the MTA's Worker of the Year Award. Deadline for nominations is Friday, Aug. 22. “The MTA Worker of the Year Award is a prestigious honor,” said Bobby Lincoln, head of the PR committee, which selects the winner. “We’re really encouraging tavern owners across the state to nominate a special employee.” The MTA asks that nominations consist of a short essay of no more than 250 words outlining why the nominee is an exemplary example of a dedicated and valuable worker, how many years of service have been rendered, what are the employee's outside interests and who are his or her family members. Examples of achievement, or courage and perseverance in the face of adversity, should be included. "Quality employees are vital to the hospitality businesses," Lincoln said. “We hope to get some great nominations.” The award was presented for the first time at the 2006 MTA convention. The Montana Tavern Times sponsors the honor, known as the Gary Langley Memorial Worker of the Year award. Langley was a popular long-time editor of the monthly trade publication. Winners receive a specially created plaque, adorned with a bartender's jigger and stir spoon, along with a $100 bill. The winner also will be featured in the postconvention edition of the Montana Tavern Times. The Aug. 22 deadline will allow the committee to review nominations and select a winner. The winner's employer will be notified by Aug. 31. The PR committee urges the employer submitting a nomination to have the employee present at the final convention banquet to personally accept the award if chosen. The 2014 MTA convention will take place in Bozeman Sept. 8-11 with the banquet Sept. 10. Nominations should be sent to the Montana Tavern Association, P.O. Box 851, Helena, MT 59624. They also can be emailed to [email protected]. ELEC T RONIC GA MBLING SUPPLY SPECIAL!!! PRINTER RIBBONS (12 $3.95 EACH MINIMUM ) GOOD THROUGH SEPT . Star SP300 • Okidata 182 • NCR 7156 3 Summit, IGT, Grand Vision, Power Station Slot tickets • Printer Paper • Printer Ribbons Flourescent Lamps • Starters • Etc. 1-406-253-7674 PO Box 1346, Whitefish, MT 59937 Business partners, life partners August 2014 Montana Tavern Times – 15 Winners Circle owners vault into remodel By Paul Tash Montana Tavern Times Kristie and Dan Horgan met playing cards at the Turn of the Century bar in Billings in 1993, and though it hasn’t been all fun and games since, they’ve both been “all in” nurturing a healthy marriage and growing a strong business. The couple, who’ve been married for 18 years, have owned the Winners Circle sports bar in Billings on Grand Avenue for 16 years. Earlier this year they remodeled the entire joint, actually creating a new casino called The Vault in the process. “We’re very pleased,” Dan Horgan said. “We couldn’t be happier with the way (the remodel) turned out.” His patrons seem to like the changes, too. Business, he said, has been strong so far this summer, which traditionally is a slower time. Hospitality experience Both Kristie and Dan have worked in the hospitality business for much of their adult lives, with Kristie on the food-service side and Dan more on the liquor side. A Butte native, Dan graduated with a business degree from the University of Montana in 1975. He worked for Gov. Tom Judge, in business development first and later as a personal aide, until Ted Schwinden defeated Judge in 1980. The lost election resulted in a lost job, so Dan was forced to find employment elsewhere, including as a bill collector. It wasn’t the best career move. “I was put in the hospital in San Antonio trying to collect a bill,” he said with a laugh. “I started looking for something else to do.” He began selling beer for Coors and other distributors for a time, before accepting an offer to manage the Turn of the Century bar in the late ‘80s. The bar business “runs in the family,” Dan added. His uncle Ed owned the Lost Weekend bar and later the U & I bar in Uptown Butte. A Billings native, Kristie started working in high school. “My first job was at Le Captain’s in the mall,” she said of the ice cream and burger joint now long gone. Paul Tash photos DAN AND KRISTIE Horgan stand behind a new bar in their new casino called The Vault, with one of its realistic murals in the background. At right is the front of the building that faces Grand Avenue. The Lyndon Pomeroy sculpture of a football player wears number 41, the number Kristie’s father, Joe Keating, wore as a member of Billings Central’s first 11man football team in 1948. She later worked at several other restaurants, including CJs and Cellar 301. Kristie met Dan in 1993 at the Turn of the Century, but not by accident. The bar manager had his eye on her. “It was kind of a blind date,” she said. “Dan told a bartender if I ever came in again to hook us up, and he’d give him a raise.” “I went in to play cards, and he was a card player.” Dan must have played his hand right – the two married four years later. They purchased the Winners Circle from Mark Ehli a year after that in 1998. Thriving sports bar Though the new casino has drawn deserved attention, the Horgans emphasized that the Winners Circle is still thriving as one of Billings’ best sports bars. The extensive remodel included adding some space to the tavern by removing a wall. In addition, the Winners Circle boasts a new interior color and several new flat screen TVs, among other improvements. “We can’t wait until football season,” Dan said. “That’s our motto – all sports all the time.” Even the recent World Cup soccer tournament in Brazil was a big hit, Dan said. “Somebody has to explain offsides to me,” he added with a laugh. The Winners Circle is known as a UM Grizzly bar, a fact UM grad Dan embraces. They are currently looking for someone to lease the kitchen. Kristie has been operating it, but after 16 years she’s ready to relinquish that responsibility. Casino murals The Horgans designed the new casino using tavern space previously dedicated to gaming machines. They built a wall to separate casino from tavern, with the two businesses accessible to each other through a glass door. A sparkling new bar and gorgeous new bathrooms were built in the casino to specifically accommodate players. “Casino players will have their own bathrooms and bar,” Dan said. Patrons old and new will notice new specially designed murals that play to The Vault theme that create a great feel in the space. The large mural behind the bar shows off a realistic 3-D quality that makes players feel like they’re actually in a vault. An operator who has always owned his own machines in the past, Horgan said he’s gone with a vendor, Century Gaming, for the first time. And he’s glad he did. “They’ve been great to work with,” he said, “and we can offer state-of-the-art machines.” Horgan also appreciates Century’s “i-Rewards” player rewards program. “The players love it,” he said. Work and adapt After 16 years, the Horgans have learned a thing or two about (Continued on next page) Montana Tavern Times – 16 August 2014 (Continued from previous page) the tavern business, but they’ve had their “ups and downs,” Kristie Horgan said. “We didn’t know what to expect,” she said, when the couple first decided to buy the Winner’s Circle. “We’ve had to continually adapt.” “You got to work it,” Dan added. “You can’t be an absentee owner.” The couple said one of their keys to success is finding and properly training good employees. “We have a great staff,” Kristie said. “We have a mutual respect for each other. Some of our employees have been with us from the start.” As is the case with many longtime tavern owners, the Horgans said the relationships they’ve built with patrons and others in the business are very important to them. “I’ve met a lot of great people,” Dan said. “When I get out, I’m going to miss the people.” For now, the two are looking forward to running the Winners Circle and The Vault with the same dedication they’ve shown in the last 16 years. “Without Kristie, this wouldn’t go,” Dan said. Working with your spouse has its special challenges, but the Horgans work them out. “You respect each other, and give each other some space,” Dan said. “We each have our own job descriptions,” he added. “We try not to infringe on each other.” Though they didn’t have children together, Kristie took Dan’s son and daughter from a previous marriage “under her wing,” he said. “She’s been like a second mom to them.” It’s been quite a ride since the Horgans’ first poker game 24 years ago. But that first blind date still provides good memories. “I beat him in cards,” Kristie said with a laugh. • Karoake 7 nights a week 9 p.m. to 2 a.m. • Large Variety Poker & Keno Machines Queen of Hearts • Packaged Liquor To-Go Card Club • Great Drink Prices Best Live Poker Action in Town in the Queen of Hearts Card Room. crystalloungebillings.com 101 North 28th Street • Billings, Montana • 406-259-0010 August 2014 Montana Tavern Times – 17 MILODRAGOVICH, DALE, STEINBRENNER Attorneys P.C. Liquor License Transfers, Gaming Applications, Real Estate, Business Sales, and Estate Planning GERALD W. STEINBRENNER (406) 728-1455 Fax (406) 549-7077 E-Mail: [email protected] www.bigskylawyers.com P.O. Box 4947 620 High Park Way Missoula MT 59806-4947 Join the MTA! Regular Membership (for Licensees Only) $100 Plus Keno & Poker Machines @ $15 Each Optional Gold Star ($100 extra) Associate Membership (non Licensees Only) Type of Business: Individual Firms $100.00 (Gold Star $200.00) Minor Distributor $250.00 (Gold Star $500.00) Major Distributor $500.00 (Gold Star $1000.00) Mail to: MTA, P.O. Box 851, Helena, MT 59624 Phone (406) 442-5040 [email protected] montanatavernassociation.com Business name Membership Application Mailing Address St. # (if different from above) County City Zip Name of Licensee MT Retail Number Phone State Fed. Id Number____________________________ Check enclosed for $ ___________________________________________ Credit card charge for $ ___________________________________________________ COMPLETE THE FOLLOWING PAYMENT INFORMATION: ____ Master Card ______ Visa_____Discover Card (Plus 3% Convenience Fee ) _____ American Express (Plus 5% convenience fee) Credit Card # ____________________ Exp. Date______Card Code______ Signature_________________________________Phone#______________ Cardholders Name (Please Print) __________________________________________ Address______________________________________________________ City ________________________State ________Zip_________________ Montana Tavern Times – 18 August 2014 MTT • Buy • Sell •Trade BUSINESSES FOR SALE BUSINESSES FOR SALE Mother Lode Casino, Restaurant & Lounge – Thompson Falls BEST BUY TO COME AROUND IN A LONG TIME! PRICE JUST REDUCED BY $325,000. Owners are in their late 70s and want to retire. Casino, restaurant and lounge right on Main Street. WHAT A REAL MONEY MAKER! Well established with many years of business. A full beverage liquor license and a gaming license with maximum number 20 owned gaming machines. Complete restaurant with great seating. Property has 2 buildings that connect together. Building 1 has a second floor with an apartment that includes a living room, kitchen, bedroom and bathroom. Reduced from $875,000. THIS IS A GREAT BUY AT $550,000. Lyle Dunham, agent, 406 425-0180. Billings Landmark Muzzleloader Café, Powder Horn Bar and Casino, one of Billings most popular restaurants, Meals equal Quality, Quantity and Price world famous hand breaded chicken fried steak. Popular casino and bar. Great location, 2.38 acres, 8,000-plus sq ft building built new in 2007. Owners wishing to retire. Check This Out! Long-established west-end full service restaurant and casino, AAA location, very favorable lease, long-time loyal customer base, B&W, includes gaming machines, turn key $750,000. Only Game in Town Water Hole Saloon, Reed Point, Mt. Home of world famous Sheep Drive. Serves as gathering place for morning coffee and after work problem solving over your favorite choice of wisdom-enhancing beverage. Includes land, building, FF&E, all-beverage liquor license. After 38 years owners wishing to move on. $125,500. West-end Casino, King Ave and Shiloh Road Fastest growth of commercial and investment property in Billings. 1,000-plus new apartments and 282 on drawing board and under construction. Features 4,284 sq. ft. building, land, FF&E, including B/W. Check it out. $1,650,000. Not a Mistake (under contract) Business only featuring all-beverage license, FF&E, casino w/small food operation. Includes state-of-the-art outdoor sign with reader board. Performs very well. $695,000. Land and building available. West-end Casino And investment property on Grand Avenue. $1,200,000. Casino, Restaurant, Bar Land, building, all-beverage license, restaurant leased to prominent restaurant operator, high traffic location. Business doing very well. $1,100,000. Rare Find (under contract) Fun, friendly, popular neighborhood bar. Located on main Billings main artery. Great lease, all beverage, pencils very well! $750,000. Licenses - Billings all-beverage license w/furniture fixtures and equipment $650,000. (under contract) - Billings cabaret restaurant beer and wine seating 61 to 100. Bob Pulley, Real Estate Broker, 406-670-7947 BUSINESSES FOR SALE SPRING CREEK BAR, RESTAURANT AND RV PARK This is a year-round establishment located on ten treed acres in the Wolf Mountains near the Sarpy Creek Mine. Sale includes liquor license, furniture, fixtures and equipment along with two rental units. A fourbedroom residence for owner or manager is included. Health forces sale. $500,000. Call 406-342-5414. Just $4.50 per line 1-406-782-3660 [email protected] BUSINESSES FOR SALE The Hideout Bar & Restaurant Great food, river views in Hamilton, MT. All-beverage liquor license. Casino ready. Price cut to $499K. Bob Pauley, broker. 406-369-0210 City of Billings Beer and Wine License with gaming (PENDING). This license is ready to transfer! $350,000 Tremendous Location!!! Billings Bar, Lounge, Casino, Liquor Store. Includes All Beverage License, 1.6 acres Land, 3,745 sf building. Three income streams – excellent cash flow! $1,900,000 City of Billings Caberet License Chuck Platt 406-861-8000 [email protected] RE/MAX of Billings Commercial Division FULL MOON SALOON HISTORICAL STEVENSVILLE Where everybody knows your name. Full liquor, gaming, catering, café and bingo licenses. A whole lot of fun! Price reduced! Call Craig Siphers, 406-360-9108. Established bar with full liquor & gaming license in Great Falls. · Complete turnkey operation; · Newly remodeled building; · New bar & furniture; · New Aloha P.O.S. System; · Surveillance camera system. $395,000. Call (907) 252-6493 Bar, casino, & restaurant in Thompson Falls, MT. $550,000. Average NET profit of $137,000 over the last 5 years, even after manager paid! Health forces sale. Bennett Realty, 406-544 4641 or www.thompsonfalls.com August 2014 Montana Tavern Times – 19 MTT • Buy • Sell •Trade BUSINESSES FOR SALE BUSINESSES FOR SALE BUSINESSES FOR SALE Great business for sale in Livingston, Montana Bar/Liquor Store combination, includes kitchen! One of the top liquor-selling businesses in the state! Sale includes liquor license, real estate and equipment! Great income producing property ... Call PEDE at (406) 570-1541 or [email protected] Create your concept ... 6,000 sf building holds 266 people. Includes all beverage liquor license, furniture, fixtures and equipment. Located minutes from Malmstrom AFB. The building is a landmark to the local community. $900,000 Tracy Johnson, Broker Dahlquist REALTORS 406-788-0443 Texas Club in Miles City Well established bar located on historic Main Street, Miles City, MT. Sale includes all fixtures, furniture, equipment, real property and floating all-beverage liquor license. Structure is about 2,750 sq. ft. and includes dance floor, darts, TVs, and a partial basement. Asking $425,000. Melynda Hould, 406-853-6680. Bryan Holmen, 406-853-0576. www.milescityproperty.com BAR, RESTAURANT, CASINO IN GREAT FALLS 22,000 SF building, 2.6 paved acres, 2 complete bars, dance floor. Best view in Great Falls, at I-15 interchange adjacent to International airport. Additional 6 acres available. All beverage license available. Excellent, proven income. 3 million replacement cost. $800,000. 406-781-9111. Montana agency liquor store for sale in Cut Bank. Serious inquiries only. Call 406-949-4442. BEN’S ARENA BAR & CASINO Deer Lodge. Full liquor license with gaming, plus inventory. Great location. Selling due to health. $450,000. 406-846-1617. The Grand Bar and Grill Located on Hwy 2 in the middle of Chester, Montana. This established business has a full liquor license, grill with separate dining area, live and machine gaming, established clientele, and an attached 1 bedroom, 1 bathroom apartment. Lot size: 12,600 sq ft. Age: 1970 – remodeled in 2001. $320,000. Call Bootegger Realty, (406) 759-5560. Cubs Den Bar, Monarch, MT Restaurant, 14-unit motel with pool and hot tub, convenience store with gas pump, 6 new gaming machines and 3 bedroom full residence lower level. One of only two bar, restaurants and motels between Belt and Forest Green. A great opportunity in a busy recreational area. Reduced for fast sale at $650,000. Call Dick Seim, ReMax of Great Falls. 406-799-0307 THE OLD SALOON AND LIVERY STABLE STEAK HOUSE (Price Reduction) Historical Bar/Restaurant with Liquor/Gaming license, Real Estate and FF&E located 20 miles from the North entrance to Yellowstone Park. sits on 1.2 acres. Price reduced to $550,000. Possible owner financing. Call Dave Everett, 406-600-0647. Bar, restaurant and casino in Bakken oil field. Well established clientele, full-beverage license with catering endorsement, great revenue. Great central location. Established in 1955. Serious inquiries only. Call Mike or Randy Severson, 406-482-4566. Just $4.50 per line 1-406-782-3660 [email protected] LICENSES FOR SALE All beverage floatable liquor license. Will sell with bar, with gaming or separately. 406-323-2347. Missoula city all-beverage liquor license. Motivated seller. 406-370-0146. Billings all beverage liquor license with gaming. $700,000. Seller may finance $500,000 over 20 years OAC. Call 406-672-4434. Billings beer and wine license with gaming. Price negotiable. Bob Pulley, Real Estate Broker, 406-670-7947 All-beverage floating liquor license. 55K OBO. 406-490-3706. Full-beverage liquor license without gambling. 495K. Serious inquiries only. 406-661-1436. All-beverage liquor license for sale in Saco, MT. For information contact Brittnee Zanto-DeLaRosa with Bear Paw Development Corporation, 406292-9226 or [email protected] Kalispell All-Beverage Liquor License No. 07-901-2541-001 for sale. Call Mike Nissen, 406-752-4050. EQUIPMENT TO BUY, SELL Blodgett pizza ovens with hood, stainless steel 3 compartment sink, griddle, True Beer cooler, and more. 406-599-6909. Located in Anaconda. Beveridge Air 3 tap beer cooler. $750 OBO. 406-442-3096 2007 Model 2400GH Broaster Great condition, clean. Gas heat, single phase, 120 volts, 7 amps. $10,000. Call Kelly Heiser, 406-8910239 or 406-778-2001. Montana Tavern Times – 20 August 2014
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