ORONO (AP) – An economic study of the first 15 months of new slot machine gambling in Bangor estimates that customers spent more than $20 million in area restaurants, hotels and motels.
Comparing the relationship between net gaming revenues at Hollywood Slots and area restaurant and hotel sales, University of Maine Associate Professor Todd Gabe says that from November 2005, when the temporary gaming facility opened, to March 2007, racino patrons spent an estimated $14 million at Bangor-area restaurants and an estimated $6 million at local hotels.
Focusing on only some of the sectors potentially affected by Hollywood Slots, Gabe says the effect on local businesses could shift once the racino opens in a permanent facility.
“The results of the study alone cannot be used to conclude whether Hollywood Slots has a positive or negative effect overall on the region or state,” he says in his report.
The study shows that a $1 increase in monthly net gaming revenues is associated with a 29-cent increase in restaurant sales and a 12-cent increase in lodging.
Currently, the Hollywood Slots at Bangor site has only one interior restaurant and offers no lodging.
“If they were to have a hotel, we wouldn’t know if that additional lodging sales were at Hollywood Slots or in a different area,” Gabe said. “Right now, we can assume that the kind of bump to other sectors is mostly taking place outside their facility.”
Gabe obtained data for his study from the Maine Gambling Control Board, which regulates the gaming facility, and from Maine Revenue Services.
“I was just looking at kind of one aspect of the facility. There are other questions,” Gabe said. “We didn’t look at employment; we didn’t look at any of the fiscal impacts on taxes.”
Dennis Bailey of Casinos No! said Monday there may not be new money being introduced into the economy, but more likely just a transfer from one sector or area to another.
“Ninety-five to 98 percent of the patrons to Hollywood Slots are Maine residents,” Bailey said. “All that money they’re spending is simply money they’re not spending somewhere else in the Maine economy so all you’re talking about is a transfer. There’s nothing wrong with that, but from a statewide perspective there’s not much of an economic gain.”
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