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7/1/09
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poll Hollywood Slots marks first year at new Bangor facility
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BANGOR, Maine — It’s hard to imagine any business in Bangor — and perhaps the entire state of Maine — that is more scrutinized than Hollywood Slots Hotel & Raceway.
When the state’s only gaming facility opened its temporary location in November 2005, there was no shortage of skeptics or naysayers. They feared the racino would bring unwanted crime and turn Bangor into a less-than-desirable destination.
When Hollywood Slots moved into its permanent, $138 million facility on Main Street exactly one year ago this week and doubled its number of slot machines, opponents reiterated their concerns.
But can 1.3 million visitors all be wrong?
As the business continues to generate revenue at a steady pace even in tough economic times, perhaps the best thing that can be said about Hollywood Slots is that it has blended almost quietly into the Bangor business landscape.
“We kiddingly talk about being under a permanent microscope, but it’s justified,” Jon Johnson, general manager of Hollywood Slots, said in an interview last week from his office. “I think it’s been proven that we operate a legitimate entertainment business.”
Hollywood Slots has a number of events planned for July to coincide with its one-year anniversary, including concerts and giveaways.
Bangor City Council Chairman Gerry Palmer said he’s never been a fan of gambling personally but always has supported Hollywood Slots.
“I like to tell anyone who will listen, I’m pleased at what this adds,” he said. “It’s created another entertainment option for residents and visitors, it’s pumped life into the harness racing industry, which had been dying, and it’s helping us get close to the goal of a new auditorium.”
Not everyone agrees, though.
Dennis Bailey, who has led a number of anti-gaming campaigns in Maine throughout the last several years, said he doesn’t think Hollywood Slots has lived up to its promises.
“I don’t see how they have been that successful, although I guess it’s all relative in the casino business,” he said. “Their numbers are not that much different with 1,000 slot machines than with 475 slot machines. And their overhead has gone way up.”
Economics
Hollywood Slots, owned and operated by Penn National Gaming Inc., debuted in a temporary facility in November 2005 before moving into the permanent location in July 2008 about three years ahead of schedule.
Since the move, it’s hard to argue against the numbers. Revenue has increased for six consecutive months through May 2009. It hasn’t yet climbed back to the high-water mark of $75 million in the first month of the permanent facility, but Johnson said he’s pleased. Bailey said the numbers are deceiving.
In the first three years of the temporary facilities, May revenue averaged between $45 million and $52 million. This year, the first May that Hollywood Slots has operated at a full 1,000 slot machines, gross revenue was $64 million.
“It’s a lot of money, but it’s not double,” Bailey pointed out.
Either way, a significant portion of net revenue from Hollywood Slots (about 50 percent) goes back to the state in some fashion. The city of Bangor has received about $6 million to put toward a new auditorium. More than $3.5 million has been put into scholarship funds.
Johnson also pointed to recent improvements at Bangor Historic Track, including a $1.3 million paddock and a $900,000 barn, as a boost to the racing industry.
Already, purses at Bangor Raceway have increased from $525,000 in 2005 to $1.6 million in 2008. In addition, the track has added race dates every year from 28 in 2005 to 61 on the schedule in 2009.
Bailey, however, said the casino has not revived the harness industry.
“All it has done is subsidize it,” he said. “The interest still isn’t there.”
Because there is no template for gaming facilities in northern New England, Hollywood Slots is plowing new ground, and Johnson said things are constantly evolving.
“We’ve made adjustment on hours of operation; we’ve reduced the price of the buffet,” he said. “We’ve tried to listen to our customers.”
But there is still something lacking that customers continually request.
“We need table games,” Johnson said, referring to card games like poker and blackjack. “If we want to compete with Connecticut [Foxwoods, Mohegan Sun], we need to offer those options.”
Crime, or not?
Opponents of gaming always point to increased crime rates as a drawback.
According to statistics for the 2004 calendar year through the 2007 calendar year (the most recent data available), Bangor’s overall crime rate has increased slightly from 55 crimes per 1,000 residents in 2004 to 63 per 1,000 in 2007. Categories like murder, rape, robbery and aggravated assault showed little change, but larceny did increase substantially.
Robert Welch, executive director of the Maine Gambling Control Board, said the Bangor Police Department averages between seven and 10 calls a month originating from Hollywood Slots.
“Wal-Mart would love to have a rate that low,” he said. Bailey sees it differently.
“To suggest that there are no problems is inaccurate,” he said. “Crime has increased since [Hollywood Slots] opened. And what crimes are going up? Embezzlement.”
Welch said he knew of only two embezzlement cases linked to Hollywood Slots.
“That’s not unusual, especially if you look at the number of people over there,” he said.
Since the facility opened, a small portion of revenues has been set aside for gambling addiction resources. Welch said few people have taken advantage of those resources, and recently the funding was reduced.
“It doesn’t mean people out there don’t need resources, but we’re wondering whether we used the wrong template,” he said.
The Maine Office of Substance Abuse is working on a pilot project to develop statistics on problem gaming in Maine to determine which services would be most beneficial.
Problem gamers also can put themselves on what’s called a self-exclusion list, which bans them from being admitted into the slots facility. Welch said the number of people on that list usually sits at about 120.
The most important thing for the public to realize, according to Welch, is that Hollywood Slots operates with tremendous oversight, both on the financial side and on the public safety side.
Only game in town
It’s hard to tell what the future holds for Hollywood Slots, but Johnson said every indication from the parent company is that the facility is in Bangor to stay.
A new arena and civic center would help.
“I believe the [city] council is being careful and moving as quickly as possible,” he said. “Certainly, it would go quicker if there were other [funding] sources involved.”
Bailey, however, was skeptical of building a new auditorium with slots’ money.
“I would be very cautious if I was a city councilor in Bangor to tie one to the other,” Bailey said. “They are not going to recreate Las Vegas. A lot of communities have tried.”
So far, Hollywood Slots is the only gaming facility in Maine, although there have been numerous attempts to establish gaming facilities in other communities. In the last legislative session, there were seven individual bills that proposed expansion of gaming in some form, according to Welch. None was approved.
“We pay attention,” Johnson said, referring to other casino initiatives that so far have been unsuccessful. “We’re not afraid of competition, but we’d certainly rather be the only property around.”
The issue of table gaming is more pressing for Johnson. As the law stands now, table games are only allowed for nonprofit events. Any changes would have to come from the Legislature, and that’s unlikely to happen, at least while John Baldacci lives in the Blaine House.
Gov. Baldacci of Bangor opposed Hollywood Slots from the beginning and maintains opposition to expansion of gaming in Maine, according to David Farmer, the governor’s spokesman.
Palmer, however, said table games are probably the next logical progression.
“I think eventually that is something that will happen,” he said. “It’s something that’s a little different. It wouldn’t be harmful. But I think it will happen when people are comfortable.”
Whatever happens, the scrutiny is not likely to go away.
“I think we should always look at the businesses we have and how they fit what the community as a whole wants,” Palmer said. “But who else is investing $138 million into the city of Bangor right now?”
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irishproud....ever hear the words "No Irish Need Apply"...we were ALL foreigners once!
If they ever get table games I will return to Hollywood Slots but I will not until then. I went in and blew one hundred dollars for the fun of it as it was one hundred dollars I could afford to blow. I was very disappointed with their slots and the layout of the complex. I did win now and then but the fun of playing their slots is well, just not fun. Their machines are very boring to play.
Now once again, if they where to get table games where I could go play some Texas Hold’em or Omaha I would visit it a lot more often. I'm in control of what I do when I'm playing poker. I can fold, raise or call if I desire. I'm not forced into a pot. I love Foxwoods but it would be great to go to Hollywood Slots and play some low buy in tourneys or just play a 2/5 cash game.
Table games are the answer to bringing in a much younger crowd such as me who want to play poker. Some of us are very responsible with our bankroll and are not addicted to gambling. I just enjoy poker as it is a game that makes you think. Makes you do odds in your head and then you have to try and figure out what your opponent is holding. Poker is a very complex game but then again so is Backgammon and I love that as well.
Larceny and embezzlement increased from 2004 to 2007....well DUH !
So what exactly is "the Mouth" (aka Dennis Bailey) arguing??? That Hollywood Slots is not generating the same revenue in a recession as they did in a good economy? Is this guy for real.......do people REALLY pay this guy to spout off this baseless crap?
there is a bump in the road. It is right on front of hollywood slots. Could the state use part of the 30 million donated and spend maybe 2 to 3 dollars to fix it. I am glad the slot machines are there, I never use them, but alot of dumb people do.
bxr3main I normally don't correct people when they spell a lot wrong but you stated people are dumb when you yourself cannot type or spell out a simple word.
You wrote: but alot of dumb people do.
A lot is two words and if you are going to call others dumb. At least learn how to spell a simple word.
Kevin, maybe you should have checked your Webster before posting.
I like the buffet I am in no way tempted by the machines or would I be by table games, when I have a free buck or two maybe I would for some fun, but Maine needs the business. How many people opposing this are the same people crying that the young people are leaving Maine? I just got back from NC and there were jobs left and right... not good ones mind you but there were jobs. and I come back here and there is pretty much a joke called the classified section. We want jobs and industry in Maine why don't we put our strengths forward and allow gaming facilities and resorts to come play off our tourists?
[edit] Adverb
alot
Common misspelling of a lot.
Just a few things. Table games have better odds then the slots, so why the state is not allowing them is sort of confusing. Oh ya, the state that has more lottery games then you can shake a stick at, with odds that are through the roof... now I get it! Also the increase in crime is minimal, at only a 5% on average increase during a period of economic hardship. Not surprising, and I'm sure on par with the rest of the state.
The sad reality is that an out of state entity was approved for the one and only casino in the state, and the in state Native American tribes were denied. Why they did not sue the state for discrimination is beyond me. If anyone should have the right to have established gambling, it should be the tribes.
I wish Dennis Bailey would just shut up already. Stay in Portland! I feel so much better knowing that he is trying to protect me from myself.
I'm sure the rise in larceny and embezzlement has NOTHING to do with the ridiculous rise in the illegal use of prescription drugs and also street drugs.
I couldn't believe the amount of poor, broke, homeless gambling addicts I had to step over to get in the front door of the place..........
I am in favor of allowing adults to do what ever they wish, as long as no one is physically harmed. So go ahead have a great time paying voluntary taxes. Blow the rent, the children's college fund, and the food budget. Your life your right.
BUT I do have one question. Do they check identities at the door to be sure customers are not on Federal or State assistance? I'd hate to think that my tax money was financing Penn's profits!
Who says that double the slot machines is SUPPOSED to equal double the revenue? That is a ridiculous statement. I guess he hasn't been paying attention to what has been going on in this country and the economy for the last 12-18 months.
I've STILL never been there, but I'll probably check it out eventually one of these days. I personally find slots to be kinda boring, but I think it's awesome that people have it to visit if they choose to. Life is about making your own decisions, not letting Dennis Bailey tell you what you should think.
And if the money does help get a new auditorium, that would be incredible.
Dennis, my friend, has it ever occured to you that it's probably time to get off your high horse and to live and let live? I believe that your overall approach to life would be so much calmer and, as a result, you will probably be much happier. Honestly, it really works! Why spend your time being miserable about this? You must have family that needs you more.
A. There will never be table games at Hollywood Slots. B. I could care less if and when young people leave Maine. C. This place is only visited by Canadians and other Mainers. No one is coming to Maine to go to Hollywood Slots. Please.
I cant what till they build a casino in NH i know they will have buss out of bangor that will go there an ile be on it. The state of manine is getting money from slots that it would not of had if it was not for slots. If gambling is evil why do churchs gamble ?
I've been there and it was a good time for me. I didn't win but I didn't expect to. Those who do expect to win should stay away. :)
Oh my....... this site is strick with spelling,,,,,,, SO WATCH YOUR SPELLING AND GRAMMAR
Yeah lets celebrate a year of a new tax on the poor. As we know, just like the lottery system, only poor people play. Many waste a great deal of their income on these things. Sad.
If you don't like the place...don't go. There are MANY people who enjoy it there including me,,,good food... great fun..nice employees. That is the way I choose to spend my budgeted entertainment money... you may spend on movies, liquor, cigs, bingo, scratch tickets, ski passes, trips etc...but I like spending some of mine there. So stop being so negative towards the place and adults who choose to go there...it is an ASSET to Bangor!!!
i agree with XAVYRE only the poor play,...it is sad.
So far I haven't seen any help in the city of Bangor from Hollywood Slots. Same old crappy roads. No money for public service. Makes you wonder where this money is? Hope it's in the CITY's bank account. You can't trust city hall.
It's not with the City,...don't be fooled. it is with Penn National Gaming.
It is a business that is making money, employing people and providing a form of entertainment that people seem to enjoy. The funds the city is receiving hopefully will be used to replace the aging Auditorium / Civic Center with a new complex that can host concerts, sports events and conventions. Bringing more people and business into the area. When you look at the money being brought into the city you have to look at other motels, restaurants, stores, taxis, etc. The economy is down but they are still bring in cash into the area. If you don;t like it don't go. If you enjoy it, have fun. It is legal, voter approved and a success. Lets find another windmill to attack.
no one is debating if it is legal LAWDISORDER,...and I would have to argue it's success story. People voted for this believing that were going to be card sharks working at black jack tables,...it is the most moronic thing the city of Bangor has done.
Bangor Slots and the people who worked there and gamble there are all sick, lame, and lazy. Gamling is immoral. It'sa clear sign that America is fast going to the dogs. It's a sad state of affairs when a society must appeal to human weakness to make money! Get a life!
Hey did anyone notice the NEW BANGOR COURTHOUSE building looks just like HOLLYWOOD SLOTS :) great looking!
Dantech: you must feel pretty adamant that we are all sick, lame, lazy people seeing as you wrote almost the exact same thing in the poll comments! :)
Wonder how many lottery tickets Dantech buys??
On 7/1/09 at 8:07 AM, George451 wrote: Repeated separate thumbs down will cause comment to be hidden
Kevin, maybe you should have checked your Webster before posting.
Why should I have checked Webster before posting?
“Alot” is not a word. It does not exist. Allot is word but you will never find “alot” in any dictionary because it is not a word. It is a very common spelling error that a lot of people make. I only pointed it out because the above poster called others dumb and then screwed up a simple word.
A lot is two words. Always has been.
DanTechWriter I'm not sick. I'm healthy and I'm far from lame. I also have a full time job so I'm not lazy.
Diana22 did your magic crystal ball inform you that they never will have table games?
I too feel they should be allowed to have table games - you are can make your own decisions
DanTechWritet Dose that go for churchs too on gamblem ??
Diana22 and xavyre.....you are both clueless. I and many others have disposable income and we choose to gamble. It is OUR money not YOURS!
DanTechWriter.........thump your Bible elsewhere.
I've been trying to vote "No" in the poll posted in this article for ten minutes, and it won't accept my vote. I logged in to post this comment, and it still won't accept my vote. I wonder how many people just hit "good" to see if it would take. Par for the course BDN.
This is Maine where anything goes. If gays can get married what next.MR,BIG SHOT IN THE STATE HOUSE YOU SHOULD BE PROUD.Happy now that you almost wrecked our state.No morals in Maine wake up people before you wake up in hell.Yes I am a bible thumper Jesus is LORD .
You Bible thumpers are what ills our state and country.
The BDN deleted my comment asking for an investigation into how much money Hollywood Slots has sucked OUT of Bangor since it first opened, and also asking for an investigation into the crime rate increase since Hollywood Slots opened. Amazing how much influence one business can have on so-called unbiased journalism?