Bill to limit route‑operator advantages in casino purchases draws industry opposition; committee tables measure

Helena — Representative Ed Buttrey’s House Bill 787, aimed at preventing route operators from using proprietary machine‑play financial data to gain an advantage when acquiring alcohol‑licensed retail gaming operations, faced opposition from route operators and the gaming industry and was tabled by the committee during executive action.

Buttrey described route operators as businesses that supply casino and bar operators with gaming machines and games and then split net machine proceeds under contracts. HB 787 would bar route operators from using financial data and other leverage obtained through route‑operation contracts to gain an unfair advantage in acquiring retail establishments that hold an alcohol license and host gaming. The bill would also bar an operator who routes to a location from giving itself preferential access to games or software to disadvantage a retailer it routes for nearby, and it authorizes revocation or non‑renewal of a retail license for violations.

Route‑operator witnesses told the committee the draft does not achieve the sponsor’s intent and could create enforceability and litigation problems. Rhonda Wiggers of the Montana Coin Machine Operators Association and other industry witnesses said potential buyers and lenders routinely review business financials as part of due diligence when buying a retail business and that sellers typically provide financials to multiple prospective buyers. They warned the bill could be difficult to enforce and that it might expose route operators to complaints and litigation without a clear standard of proof. Anna Helfert of the Gaming Industry Association said exclusivity for specially designed machines already exists in Montana and that the bill’s language would not prevent parties from sharing due‑diligence material.

Buttrey said his goal was not to bar route operators from becoming retail owners, but to avoid unfair advantages that can arise when route operators have access to detailed play and profit information from other sites.

The committee ultimately adopted a substitute motion to table HB 787. The sponsor said he will continue stakeholder discussions to try to craft clearer, enforceable language that addresses fairness concerns without producing unintended litigation or regulatory consequences.

Why it matters: Route operators play a key role in Montana’s gaming economy; the bill sought to protect independent retailers from competitive disadvantages associated with private machine‑play data, but industry testimony highlighted practical and legal complications in drafting an enforceable prohibition.

Next steps: The sponsor plans to continue stakeholder work and may attempt to reintroduce a clarified version of the measure.