An Act To Establish the Gambling Control Board To License and Regulate Slot Machines at Commercial Harness Racing Tracks
Maine Legislature, Session 121, LD 1820
Committee: Legal and Veterans Affairs
Sponsors: LEMOINE, GAGNON, ANDREWS, CLARK, DAIGLE, RICHARDSON, DAGGEIT, DA VIS, MA YO, TREAT
Amends: 7 MRSA §77, 8 MRSA §298, 17-A MRSA §952, 17-A MRSA §959, 22 MRSA §1511, 36 MRSA §6652, 7 MRSA §76, 8 MRSA §263-C, 8 MRSA §271, 25 MRSA §3902

Legislative Document 
No. 1820 
H.P.1342 
House of Representatives, January 5, 2004 
An Act To Establish the Gambling Control Board To License and 
Regulate Slot Machines at Commercial Harness Racing Tracks 
(EMERGENCY) 
Reference to the Committee on Legal and Veterans Affairs suggested and ordered printed. 
/Yj~ 
'111.11!~ 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative LEMOINE of Old Orchard Beach. (GOVERNOR'S BILL) 
Cosponsored by Senator GAGNON of Kennebec and 
Representatives: ANDREWS of York, CLARK of Millinocket, DAIGLE of Arundel, 
RICHARDSON of Brunswick, Senators: President DAGGEIT of Kennebec, DA VIS of 
Piscataquis, MA YO of Sagadahoc, TREAT of Kennebec. 
Printed on recycled paper 
Emergency preamble. 
Whereas, Acts of the Legislature do not 
become effective until 90 days after adjournment unless enacted 
as emergencies; and 
Whereas, this Act allows the operation of slot machines at 
commercial harness racing tracks; and 
Whereas, 
the 
provisions 
of 
this 
Act 
are 
substantially 
similar to the initiated bill approved by the people of Maine at 
referendum 
in 
November 
2003, 
but 
resolve 
some 
logistical 
problems; and 
Whereas, in order to ensure that the will of the people is 
carried out, it is imperative that this Act be approved as soon 
as possible to prevent any injustice or hardship to the citizens 
of Maine; and 
Whereas, in the judgment of the Legislature, these facts 
create an emergency within the meaning of the Constitution of 
Maine 
and 
require 
the 
following 
legislation 
as 
immediately 
necessary for the preservation of the public peace, health and 
safety; now, therefore, 
Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A-t. 5 MRSA §t0004, sub-§4-A is enacted to read: 
4-A. 
Gambling. 
The action is based on a violation of laws 
or rules at gambling facilities that are cited by the Department 
of Public Safety, Gambling Control Board, established pursuant to 
Title 
8, 
chapter 
31, 
or 
the 
Gambling 
Control 
Board or its 
designees determine that acting in accordance with subchapters 4 
and 6 would fail to serve the public interest. 
Sec. A-2. 7 MRSA §77 is enacted to read: 
§77. Agricultural Fair Sypport Fund 
1. Fund created. The Treasurer of State shall establish an 
account to be known as "the Agricultural Fair Support Fund" and 
shall credit to it all money received for that purpose under 
Title 8, section 1036, subsection 1, paragraph B, subparagraph 4. 
2. Disbursement. No later than January 31st of each year, 
all funds held as of the end of the previous calendar year in the 
Agricultural 
Fair 
Support 
Fund 
must 
be 
distributed 
by 
the 
Treasurer of State as follows: 
Page l-LR2664(1} 
A. Sixty percent of these funds must be distributed to all 
entities licensed as agricultural fairs by the department 
that during the previous year were 
licensed to 
and did 
accept pari-mutuel wagers 
on harness horse 
races. 
Each 
licensed entity must receive a proportionate distribution 
based upon the number of days in the preceding year each 
licensee conducted live races during its regular fair meet. 
The funds must be used by the fairs to supplement purses; and 
B. Forty percent of these funds must be divided among all 
entities licensed as agricultural fairs by the department. 
These funds must be distributed in the same proportion as 
funds 
distributed for 
premium payments 
made 
pursuant to 
section 64 and may be used at the fairs' discretion. 
Sec. A-3. 8 MRSA §298 is enacted to read: 
§298. Fund to supplement harness racing purses 
1. 
Fund 
created. 
A 
fund 
is established to 
supplement 
harness racing purses to which the commission shall credit all 
payments 
received 
pursuant 
to 
section 
1036, 
subsection 
L 
paragraph B, subparagraph (2) for distribution in accordance with 
this section. 
2. Distribution. 
On May 30th, September 30th and January 
30th, 
all 
amounts 
credited to 
the 
fund established by this 
section as of the last day of the preceding month 
and not 
distributed 
before 
that 
day 
must 
be 
distributed 
to 
each 
commercial track licensed under section 271, with each track 
receiving an amount of money determined by multiplying the amount 
of money available for distribution by a fraction, the numerator 
of which is the total number of live race days conducted by the 
commercial 
track 
during 
the 
preceding 
time 
period 
and 
the 
denominator of which is the total number of race days conducted 
by all commercial tracks licensed under section 271 during that 
time period. 
The payment in January must be adjusted so that for 
the prior 3 time periods each commercial track receives a portion 
of the total money distributed over the full year from the fund 
established by this section, the amount determined by multiplying 
the total amount of money by a fraction, the numerator of which 
is the number of live race days conducted by the commercial track 
during the calendar year and the denominator of which is the 
total number of race days conducted by all commercial tracks 
licensed under section 271 during that calendar year. 
All funds 
distributed pursuant to this section must be used to supplement 
harness racing purses. 
3. Rules. 
The commission may adopt rules to enforce the 
obligation of licensees to use 
funds distributed under this 
section to 
supplement 
harness 
racing purses 
and 
to 
require 
licensees to account for funds. 
Rules adopted pursuant to this 
subsection are 
routine technical rules pursuant to Title 
5, 
chapter 375, subchapter 2-A. 
Sec. A·4. 8 MRSA c. 31 is enacted to read: 
CHAPTER 31 
GAMBLING CONTROL BOARD 
SUBCHAPTER 1 
GENERAL PROVISIORS 
SIOOI. Definitions 
As 
used 
in this 
chapter, 
unless 
the 
context otherwise 
indicates, the following terms have the following meanings. 
1. 
Applicant. 
"Applicant" means a person who has submitted 
an application for a license. 
2. Associated egyipment. 
"Associated equipment" means any 
component part used, or intended for use, in 
a slot machine, 
including, 
but 
not 
limited to, 
software, 
integrated circuit 
chips, printed wired assemblies, printed wired boards, printing 
mechanisms, video display monitors and metering devices. 
3. 
Beano. 
"Beano" has the same meaning as set forth in 
Title 17, section 311, subsection 1. 
4. 
Board. 
"Board" 
means 
the 
Gambling 
Control 
Board 
established under section 1002. 
5. 
Business organization. 
"Business organization" means a 
partnership, 
incorporated or unincorporated association, 
firm, 
corporation, limited liability company, trust or other form of 
business or legal entity other 
than 
a 
financial institution 
regulated by a state or federal agency that is not exercising 
control over a licensee. 
6. 
Conmercial track. 
"Commercial 
track" 
has 
the 
same 
meaning as set forth in section 275-A, subsection 1. 
7. 
Compensation 
percentage. 
"Compensation 
percentage" 
means the percentage of gross slot machine 
income determined 
pursuant to section 1037 and remitted to the State by a slot 
machine 
operator 
pursuant 
to 
section 
1036, 
subsection 
1, 
paragraph B. 
8. 
Control. 
"Control" 
means 
the 
power 
to 
exercise 
authority over or direct the management or policies of a person. 
9. 
Department. 
"Department" means the Department of Public 
Safety. 
10. Director. 
"Director" means the executive director of 
the board. 
11. 
Distribute. 
"Distribute" 
means 
to 
selL 
lease, 
license, place or otherwise make available for use in the State 
or to transport into the State for 
the purpose of selling, 
leasing, licensing, placing or otherwise making available for use 
in the State. 
12. Drug abuser. 
"Drug abuser" has the same meaning as set 
forth in Title 5, section 20003, subsection 10. 
13. Drug addict. 
"Drug addict" has the same meaning as set 
forth in Title 5, section 20003, subsection 11. 
14. 
Drug-d~ndent ~rson. 
"Drug-dependent person" has the 
same meaning as set forth in Title 5, section 20003, subsection 
12. 
15. Fugitive from justice. 
"Fugitive from justice" has the 
Same meaning as set forth in Title 15, section 201, subsection 4. 
16. 
Gambling activity. 
"Gambling activity" means off-track 
betting, pari-mutuel wagering at a race track, high-stakes beano, 
beano, game of chance or slot machine operation. 
17. 
Gambling facility. 
"Gambling facility" means a race 
track, off-track betting facility, high-stakes beano or beano 
facility, a game of chance facility or slot machine facility. 
18. 
Gambling services. 
"Gambling services" means any goods 
or services provided to an operator licensed under this chapter 
or at a gambling facility that are used directly in connection 
with the operation of a slot machine, inCluding, but not limited 
to, 
slot 
machine 
maintenance, 
security 
services 
or 
junket 
services, 
and excluding slot machine distribution by 
a 
slot 
machine distributor. 
19. 
Gambling services vendor. 
"Gambling services vendor" 
means a person who is licensed under this chapter to provide 
gambling services. 
20. 
Game of chance. 
"Game of chance" has the same meaning 
as set forth in Title 17, section 330, subsection 2. 
21. Gross slot macbjn~income. 
"Gross slot machine income" 
means money, 
tokens, credits or similar objects or things of 
value used to play a slot machine minus money, credits or prizes 
paid out to winners. 
22. 
High-stakes 
beano. 
"High stakes 
beano" 
means 
the 
activity authorized in Title 17, section 314-A. 
23. 
IJllllediate family. 
"Immediate 
family" 
means 
spouse, 
parents and children. 
24. 
Junket 
services. 
"Junket 
services" 
means 
an 
arrangement to facilitate the attendance at a gambling facility 
of customers selected by reason of their propensity to gamble by 
providing to those customers any consideration, including cash, 
credits or rebates or reduced charges for goods or services such 
as 
transportation, 
lodging, 
food, 
beverages 
or entertainment. 
"Junket 
seryices" 
does 
not 
include 
providing 
common 
transportation to 
a 
gambling facility to 
the public without 
limitation to selected customers. 
25. 
Key individual. 
"Key individual" means an individual 
exerc~s~ng control over managerial or administrative decisions 
concerning the applicant's or licensee's business. 
26. 
License. 
"License" means a license issued by the board 
under this chapter. 
27. Licensee. 
"Licensee" means a person granted a license 
under this chapter. 
28. 
Nongamb1ing services. 
"Nongambling services" means any 
goods or services, other than gambling services and slot machine 
distribution by 
a 
slot machine 
distributor, 
provided 
to 
an 
operator licensed under this chapter or at a gambling facility, 
including, 
but not limited to, 
hotel 
concessions, 
restaurant 
concessions or food service. 
29. 
Nongambling 
services vendor. 
"Nongambling 
services 
vendor" means 
a person who is licensed under this chapter to 
provide nongambling services. 
30. Operate. 
"Operate" means to offer for use. 
31. 
Owner. 
"Owner" means a person who owns or controls, 
directly or indirectly, 10% or more of a business organization. 
32. Pari mutuel facility. 
"Pari-mutuel facility" means 
a 
location at which a person is licensed under chapter 11 to accept 
pari-mutuel wagers on horse races. 
33. 
Payback percentage. 
"Payback percentage" means 
the 
percentage, on an annual average bas is, of the total value of 
money or tokens, credits or similar objects or things of value 
used to play a slot machine that is returned to players of that 
slot machine as winnings, prizes or credits. 
34. 
Person. 
"Person" means 
an individual or 
a 
business 
organization. 
35. 
Slot machine. 
"Slot machine" 
means 
any mechanical, 
electrical or electronic device, contrivance or machine or other 
device, contrivance or machine that is available to play upon 
insertion of money or a token, credit or similar object or thing 
of value, the play of which by the element of chance may deliver 
or entitle the person playing the device, contrivance or machine 
to receive cash, tokens or credits to be exchanged for cash, 
merchandise or anything of value, whether the payoff is made 
automatically from the device, contrivance or machine or in any 
other manner, and includes progressive electronic gaming devices 
with a payoff that increases as the electronic gaming device is 
played. 
36. Slot machine distributor. 
"Slot machine distributor" 
means a person who is licensed under this chapter to distribute 
slot machines and associated equipment for use in the State. 
37. 
Slot machine facility. 
"Slot machine facility" means a 
facility at which a slot machine operator operates slot machines. 
38. 
Slot machine operator. 
"Slot machine operator" means a 
person 
who 
is 
licensed 
under 
this 
chapter 
to 
operate 
slot 
machines and associated equipment in the State. 
39. 
Uniform 
location 
agreement. 
"Uniform 
location 
agreement" means a written agreement in a form prescribed by the 
board 
between 
a 
slot 
machine 
operator 
and 
a 
slot 
machine 
distributor 
that 
governs 
the 
terms 
and 
conditions 
of 
that 
agreement, 
including 
the 
placement 
of slot machines 
on 
the 
premises of the slot machine operator. 
§l002. 
Board 
1. 
Establishment. 
The Gambling Control Board is created 
within the Department of Public Safety to carry out the functions 
specified in this chapter. 
The board is affiliated with the 
department as specified in this chapter. 
2. 
Members. 
The board consists of 5 members appointed by 
the Goyernor. 
At least 4 of the board members must have training 
or experience in at least one of the following fields: 
corporate 
finance, 
economics, 
law, 
accounting, 
law enforcement, 
computer 
science 
or 
the 
gambling 
industry. 
An 
elected official 
or 
candidate for elective office may not serve as a board member. 
3. 
Term of office. 
Members of the board serve 3-year 
terms, 
except that the 
Governor shall initially appoint one 
member for a term of one year, 2 members for a term of 2 years 
and 2 members for a term of 3 years. 
A vacancy is filled by 
appointment for the remainder of the unexpired term of that 
member. 
Members whose terms expire serve until their successors 
are appointed and confirmed. 
Members may serve no more than 2 
full consecutive terms on the board. 
4. 
Confirmation. 
Appointees must be reviewed by the joint 
standing committee of the Legislature having jurisdiction over 
gambling matters and are subject to confirmation by the Senate. 
5. 
Chair. 
The Governor shall appoint one of the 5 board 
members as chair. 
The member serves as chair at the pleasure of 
the Governor. 
6. 
Quorum. 
An action of the board is not binding unless 
taken at a meeting at which at least 3 of the 5 members are 
present. 
7. 
Removal. 
Except 
as 
provided 
in subsection 
5, 
the 
Governor may remove any member of the board for just cause. 
8. 
Conflict of interest. 
In addition to the restrictions 
imposed pursuant to Title 5, section 18, a board member may not 
participate in any matter before the board in which that board 
member has a personal bias or any other conflict of interest as 
the board determines, either on the board's own motion or in 
response to a written complaint. 
During a board member's term of 
service and for 2 years after the end of that board member's 
service, any person with a direct and substantial interest in any 
gambling facility or gambling activity may not employ or be 
represented by the board member or a member of the board member's 
immediate family. 
For the purposes of this subsection, "direct 
and substantial" means ownership or control of more than 100;0 of 
the voting securities of any gambling facility or any entity in 
contract, consort or cooperation with a gambling facility or key 
individual. 
§l003. POwers and duties of board 
1. Powers. In administering and enforcing this chapter, the 
board or the director, as delegated by the board, may: 
A. Regulate, supervise and exercise general control over the 
ownership and operation of slot machines, the distribution 
of slot machines and slot machine facilities; 
B. 
Adopt 
those 
rules the board determines 
necessary to 
administer and enforce this chapter; 
c. 
Issue subpoenas to compel the attendance of witnesses 
and the production of evidence relevant to any fact at issue 
and administer oaths and require testimony under oath in the 
course of any investigation or hearing conducted under this 
chapter; 
D. 
Require 
a 
licensee to file an independently audited 
annual financial report with the board, including a balance 
sheet and profit and loss statement, a list of all persons 
having any beneficial or financial interest in the licensee 
and such other information as the board may require, all in 
such form as the board may establish by rule; 
E. 
Approve or disapprove terms and conditions of uniform 
location agreements; 
F. 
Subject 
to 
any 
applicable 
laws 
relating 
to 
public 
contracts, enter into a contract for the performance of the 
board's or director's duties under this chapter. 
A contract 
awarded or entered into by the board or director may not be 
assigned by the holder of the contract except by specific 
approval of the board or director. 
All contracts must be 
awarded in accordance with rules adopted by the Department 
of Administrative and Financial Services pursuant to Title 
5, chapters 141 to 145 and Title 5, sections 1812 and 1813; 
G. 
Pursuant to 
subchapter 
5, 
deny 
any application and 
limit, restrict, suspend or revoke any license, registration 
or approval under this chapter; 
H. 
Impose sanctions, penal ties and costs of investigation 
and hearing against any applicant or licensee for violation 
of this chapter or the rules adopted under this chapter; 
I. 
Take any action as may be reasonable or appropriate to 
protect the public interest and enforce this chapter and the 
rules adopted under this chapter; and 
J. 
Negotiate consent agreements to resolve administrative 
violations or investigations. 
2. Duties. The board shall hire an executive director. 
The 
board or the director, as delegated by the board, shall hire 
staff and retain professional services that the board considers 
necessary to carry out its responsibilities. 
In addition, the 
board or the director or staff, as delegated by the board, shall: 
A. 
Enforce the provisions of this chapter and any rules 
adopted under this chapter: 
B. 
Hear 
and 
decide 
all 
license 
and 
registration 
applications under this chapter and issues affecting the 
granting, suspension, revocation or renewal of licenses and 
registrations: 
C. 
Review the department's reports of its investigation of 
the qualifications of 
an applicant before 
a 
license or 
registration is issued and investigate the 
circumstances 
surrounding any act or transaction for which board approval 
is required: 
D. 
Cause 
the 
department 
to 
investigate 
any 
alleged 
violations of this chapter or 
rules 
adopted 
under 
this 
chapter and the direct or indirect ownership or control of 
any licensee: 
E. 
Refer violations of this chapter to the Attorney General 
to bring action in the courts and administrative tribunals 
of this State or the United States, in the name of the State 
of Maine: 
F. 
Collect all licensing and registration fees and taxes 
imposed by this chapter and rules adopted pursuant to this 
chapter: 
G. 
Develop a standard uniform location agreement: 
H. 
Pursuant 
to 
subchapter 
5, 
cause 
the 
department 
to 
investigate all 
complaints 
made 
to 
the 
board 
regarding 
ownership, distribution or operation of slot machines and 
all violations of this chapter or rules adopted under this 
chapter; 
I. 
Adopt rules to prevent undesirable conduct relating to 
the ownership, distribution and operation of slot machines 
and slot machine facilities, including, but not limited to, 
the following: 
J1) 
The practice of 
any fraud or deception upon 
a 
player of a slot machine or a licensee: 
(2) The presence or location of a slot machine in or at 
premises that may be unsafe due to fire hazard or other 
public safety conditions; 
(3) 
The 
infiltration 
of 
organized 
crime 
into 
the 
ownership, distribution or operation of slot machines 
and slot machine facilities; and 
(4) The presence of disorderly persons in a location 
where slot machines are in use; 
J. 
Develop, install and test a central computer system with 
continuous on-line monitoring of all licensed slot machines 
to provide auditing program information; 
K. 
Maintain 
and 
monitor 
the 
central 
computer 
system 
developed under paragraph J to ensure compliance with this 
chapter; 
L. 
Attempt to determine the cause of any slot machine 
malfunction 
detected 
by 
the 
central 
computer 
system 
developed under paragraph J and notify the department of any 
suspected 
tampering 
with 
a 
slot 
machine 
or 
any 
other 
violation of this chapter or the rules adopted under this 
chapter; 
M. 
Cause 
the 
central 
computer 
system 
developed 
under 
paragraph 
J 
to 
disable 
a 
slot 
machine 
and 
cause 
the 
department to seize the proceeds of that slot machine if the 
funds 
from that slot machine have not been distributed, 
deposited or allocated in accordance with section 1036: 
N. 
Cause 
the 
central 
computer 
system 
developed 
under 
paragraph J to disable a slot machine that does not meet the 
registration reguirements of this chapter or rules adopted 
under this chapter; 
O. 
Cause 
the 
central 
computer 
system 
developed 
under 
paragraph J 
to disable a slot machine as directed by the 
department: 
P. 
Collect all funds 
and taxes 
due 
to the State under 
sections 1019 and 1036; 
Q. Certify monthly to the department a full and complete 
statement of all slot machine revenue, credits disbursed by 
licensees, 
administrative expenses 
and the allocation of 
gross slot machine income for the preceding month: 
R. Submit by March 15th an annual report to the Governor and 
the 
joint standing 
committee 
of 
the 
Legislature 
having 
jurisdiction over gambling affairs on slot machine revenue, 
credits disbursed by slot machine operators, administrative 
expenses and the allocation of gross slot machine income for 
the preceding year: 
S. Prepare and submit to the department a budget for the 
administration of this chapter: and 
T. 
Keep accurate and complete records of its proceedings 
and certify the records as may be appropriate. 
3. 
Required rules. 
The board shall, without limitation on 
the powers conferred and duties imposed in subsections 1 and 2, 
adopt rules governing: 
A. 
Methods and forms of application that an applicant must 
follow 
and 
complete 
prior 
to 
consideration 
of 
the 
applicant's application by the board: 
B. 
Methods, 
procedures 
and 
forms 
for 
delivery 
of 
information 
concerning 
an 
applicant's 
immediate 
family, 
character , associates , criminal record, business activities 
and financial affairs: 
C. 
Procedures for the fingerprinting of an applicant, or 
other 
methods 
of 
identification 
the 
board 
determines 
necessary to accomplish effective licensing and enforcement 
of restrictions: 
D. 
The method of collection of payments of taxes, fees and 
penalties: 
E. 
The location and hours of operation of slot machines, 
types of slot machines permitted, methods of operation of 
slot 
machines 
and 
distribution 
and 
servicing 
of 
slot 
machines and associated eguipment; 
F. 
Procedures, forms and methods of management controls of 
licensees, including the structure of the organization and 
minimum 
security 
standards, 
including 
organizational 
structure 
of 
security 
personnel 
and 
alarm 
and 
other 
electrical or visual security measures; 
G. 
Minimum procedures for the exercise of effective control 
over the internal fiscal affairs of slot machine operators, 
Page ll-LR2664(1) 
slot machine distributors, 
gambling services vendors 
and 
nongambling services vendors, including provisions for the 
safeguarding of assets and revenues, the recording of cash 
and evidence of indebtedness and the maintenance of reliable 
records, 
accounts and reports of transactions, operations 
and events, including reports to the board: 
H. 
Procedures for the annual audit of the books and records 
of slot machine operators, 
slot machine distributors and 
gambling services vendors: 
I. 
Establishment of 
a 
list of 
persons 
who 
are 
to 
be 
excluded 
or 
removed 
from 
any 
slot 
machine 
facility, 
including those persons who voluntarily request that their 
names be included on the list of excluded persons. 
These 
rules must define the standards for exclusion and removal 
and include standards regarding persons who are career or 
professional offenders, as defined by rules of the board, 
whose presence in a slot machine facility would, 
in the 
opinion of the board, be inimical to the interest of the 
State: 
J. 
Gambling-related advertising; and 
K. 
Distribution and consumption of alcoholic beverages and 
tobacco products on the premises of gambling facilities. 
§l004. 
Powers and duties of department 
1. 
Powers. 
In addition to powers conferred by any other 
provision of law, the department may: 
A. 
Without notice, and at any time during regular hours of 
operation, enter the offices, facilities or other places of 
business 
of 
slot 
machine 
operators, 
slot 
machine 
distributors 
and 
gambling 
services vendors 
to 
conduct 
administrative inspections to determine compliance with this 
chapter and rules adopted under this chapter: and 
B. 
Request the director to disable any slot machine if the 
department has a reasonable articulable suspicion that the 
slot machine is being operated in violation of this chapter 
or of any rule adopted under this chapter. 
2. 
Duties. 
The department shall: 
A. 
Investigate any alleged violation of this chapter or 
rules adopted under this chapter and investigate the direct 
or indirect ownership or control of any licensee; 
Page l2-LR2664(1) 
B. 
Investigate the qualifications of each applicant before 
a 
license or registration is issued and investigate the 
circumstances surrounding any act or transaction for which 
board approval is required; 
C. 
Report to the board any alleged violations of this 
chapter or rules adopted under this chapter and the results 
of any investigations of alleged violations of this chapter 
or rules adopted under this chapter; 
D. 
Exchange fingerprint data with, 
and receive criminal 
history 
record 
information 
from, 
the 
Federal 
Bureau 
of 
Investigation for use in considering an applicant for 
a 
license issued 
pursuant to the provisions of this chapter; 
and 
E. 
Report to the board the results of any investigation of 
an 
applicant 
for 
a 
license or 
registration under 
this 
chapter. 
SUBCHAPTER 2 
LICENSING AND REGISTRATION 
S1011. License to operate 
The board shall exercise authority over the licensing of all 
persons 
participating 
in 
the 
operation, 
distribution 
and 
maintenance of slot machines and slot machine facilities and over 
the registration of slot machines. 
1. 
Qperator license required. 
A person may not operate any 
slot machine in the State unless the person has been issued a 
license to operate slot machines by the board. 
2. Eligible persons. 
The board may accept applications for 
a 
license to operate slot machines 
from 
any person who 
is 
licensed 
to 
operate 
a 
commercial 
track 
that 
satisfies 
the 
following criteria: 
A. 
The commercial track is located at or wi thin a 5-mile 
radius of the center of a commercial track that conducted 
harness racing with pari-mutuel wagering on more than 25 
days during calendar year 2002; and 
B. 
The operation of slot machines at the commercial track 
is approved by the voters of the municipality in which the 
commercial track to be licensed is located by referendum 
election held at any time after December 31, 2002 and before 
December 31, 2003. 
Page l3-LR2664(1) 
3. 
Requirements for license; 
continued commercial track 
licensure. 
The board may not issue a license to operate slot 
machines to any person unless that person demonstrates compliance 
with the qualifications set forth in sections 1017 and 1020. 
A 
person who is granted a license to operate slot machines must 
maintain a license to operate a commercial track, without lapse, 
suspension or revocation for the duration of the slot machine 
operator's license. 
§l012. Licensing of slot machine distributors 
1. 
License 
to 
distribute 
reqyired. 
A person 
may 
not 
distribute a slot machine in the State unless the person has been 
issued a license to distribute slot machines by the board. 
2. 
Requirements for license. 
The board may issue a license 
to distribute slot machines 
to 
an applicant that meets 
the 
qualifications set out in sections 1017 and 1020. 
§l013. 
Licensing of gambling services vendors 
1. 
License required. 
A person may not provide gambling 
services in the State unless the person is licensed as a gambling 
services vendor by the board. 
2. 
Requirements 
for 
license. 
The 
board 
may 
issue 
a 
gambling services vendor license to an applicant that meets the 
qualifications set out in sections 1017 and 1020. 
§l014. 
Licensing of nongambling services vendors 
1. 
License reqqired. 
A person may not provide nongambling 
services totaling in excess of $10,000 annually in the State 
unless the person is licensed as a nongambling services vendor by 
the board. 
2. 
Reqyirements 
for 
license. 
The 
board 
may 
issue 
a 
nongambling services vendor license to an applicant that meets 
the qualifications set out in sections 1017 and 1020. 
§l015. 
Licensing of employees of slot machine operators. 
slot machine distributors and gambling services vendors 
1. 
License required. 
A person may not be employed by a 
slot machine 
operator, 
slot machine 
distributor or 
gambling 
services vendor unless the person is licensed to do so by the 
board or granted a waiver by the board pursuant to subsection 3. 
2. 
Requirements 
for 
license. 
The 
board 
may 
issue 
an 
employee license to an employee of a slot machine operator, slot 
machine distributor or gambling services vendor if the applicant 
meets the qualifications set out in sections 1017 and 1020. 
3. 
Requirements for waiver. 
Upon application by a slot 
machine operator, slot machine distributor or gambling services 
vendor, 
the board may waive the employee license requirement 
under this section if the slot machine operator, slot machine 
distributor 
or 
gambling 
services 
vendor 
demonstrates 
to 
the 
board I s satisfaction that the public interest is not served by 
the requirement of the employee license. 
§1016. 
Licensing of employees of nongambling services vendors 
1. 
License required. 
A person may not be employed by a 
nongambling services vendor 
and work at 
a 
gambling facility 
unless the person is licensed to do so by the board or is granted 
a waiver by the board pursuant to subsection 3. 
For the purposes 
of this section, a person is not considered to be working at a 
gambling facility if that person's primary work assignment is at 
a 
location other than a 
gambling facility and the person is 
present at a gambling facility only occasionally and for a brief 
period of time. 
2. 
Requirements 
for 
license. 
The 
board 
may 
issue 
an 
employee license to an employee of a nongambling services vendor 
if the applicant meets the gualifications set out in sections 
1017 and 1020. 
3. 
Reguirements 
for 
waiver. 
Upon 
application 
by 
a 
nongambling services vendor, 
the board may waive the employee 
license 
requirement 
under 
this 
section 
if 
the 
nongambling 
services vendor demonstrates to the board's satisfaction that the 
public interest is not served by the reguirement of an employee 
license. 
§1011. 
Qualifications for license 
1. 
Minimum 
gualifications. 
Notwithstanding 
Title 
5, 
chapter 341, and in addition to any requirements imposed by rules 
adopted 
by 
the 
board, 
a 
person must 
satisfy the 
following 
qualifications to be 
a slot machine operator, 
a slot machine 
distributor, a gambling services vendor, a nongambling services 
vendor or an employee of these entities: 
A. 
The person has completed the application form, promptly 
and truthfully complied with all information requests of the 
board and complied with any applicable rules adopted by the 
board; 
B. 
The 
person 
has 
sufficient 
financial 
assets 
and 
responsibility to meet any financial obligations imposed by 
this chapter and, if applying for a slot machine operator 
license 
or 
slot 
machine 
operator 
license 
renewal, 
has 
sufficient financial assets and responsibility to continue 
operation of a commercial track; 
C. 
The person has not knowingly or recklessly made a false 
statement of material fact in applying for a license under 
this chapter or any gambling related license in any other 
jurisdiction; 
D. 
In the case of a person applying to be a slot machine 
operator, the person has sufficient knowledge and experience 
in the business of operating slot machines to effectively 
operate the slot machine facilities to which the license 
application relates in accordance with this chapter and the 
rules and standards adopted under this chapter; 
E. 
The 
person has 
not 
had 
a 
gambling related license 
application denied or an adverse action taken against 
a 
gambling-related license by authorities in this State or any 
other 
jurisdiction. 
For 
purposes 
of 
this 
paragraph, 
"adverse 
action" 
includes, 
but 
is 
not 
limited 
to, 
a 
condition 
resulting 
from 
an 
administrative, 
civil 
or 
criminal violation, a suspension or revocation of a license 
or a voluntary surrender of a license to avoid or resolve a 
civil, criminal or disciplinary action; 
F. 
If 
the 
applicant 
is 
a 
business 
organization, 
the 
applicant is organized in this State, although that business 
organization may be a wholly or partially owned subsidiary 
of an entity that is organized pursuant to the laws of 
another state or a foreign country; and 
G. 
The person and all key individuals are citizens or 
permanent residents of the United States. 
A person may not hold more than one class of license under this 
chapter unless 
the 
2nd license is an employee license under 
section 1015 or 1016. 
A slot machine operator may also be 
licensed as a nongambling services vendor under section 1014. 
2. 
Suitability. 
In addition to the minimum qualifications 
set forth in subsection 1, a person may not receive a license 
unless the board determines that the person is suitable and that 
the public 
interest is 
served 
by granting or 
renewing 
the 
person's license. 
In making a determination of suitability, the 
board shall consider whether the person: 
A. 
Is of good moral character. 
In determining whether a 
person is of good moral character, the board shall consider 
qualities that include but are not limited to honesty, 
candor, trustworthiness, diligence, reliability, observance 
of fiduciary and financial responsibility and respect for 
the rights of others; 
B. 
Has not in any jurisdiction been convicted of or pled 
guilty or nolo contendere to a crime punishable by one year 
or more of imprisonment; 
c. 
Has not been adjudicated of committing a civil violation 
or 
been 
convicted 
of 
a 
criminal 
violation 
involving 
dishonesty, deception, misappropriation or fraud: 
D. 
Has not engaged in conduct in this State or any other 
jurisdiction that would constitute 
a 
violation of this 
chapter, chapter 11 involving gambling, Title 17, chapter 
13-A or 
or Title 
17-A, 
chapter 
or substantially 
similar offenses in other jurisdictions; 
E. 
Is not a fugitive from justice, a drug abuser, a drug 
addict, 
a 
drug-dependent person, 
an illegal alien or 
a 
person who was dishonorably discharged from the Armed Forces 
of the United States; 
F. 
Is current in filing all applicable tax returns and in 
the payment of all taxes, penalties and interest owed to 
this State, any other state or the Internal Revenue Service, 
excluding items under formal appeal; and 
G. 
Has 
demonstrated financial 
responsibility. 
For 
the 
purposes of this paragraph, "financial responsibility" means 
a demonstration of a current and expected future condition 
of financial solvency sufficient to satisfy the board that 
the 
person 
can 
successfully 
engage 
in business 
without 
jeopardy 
to 
the 
public 
health, 
safety 
and 
welfare. 
"Financial 
responsibility" 
may 
be 
determined 
by 
an 
evaluation of 
the 
total history concerning 
the 
person, 
including past, present and expected condition and record of 
financial 
solvency, 
business 
record 
and 
accounting 
and 
managerial practices. 
3. 
Applicant other than individual. 
If the person required 
to meet the minimum qualifications and suitability requirements 
specified in subsections 1 and 2 is a business organization, the 
key 
individuals, 
directors, 
officers, 
partners, 
shareholders, 
creditors, owners and associates of the person must meet the 
suitability requirements specified in subsection 2. 
. 
Burden of proof. 
The applicant bears the burden of 
demonstrating 
eligibility, 
suitability 
and 
qualification 
for 
licensure pursuant to this chapter and any rules adopted under 
this chapter. 
§1018. Applications 
1. Fogn. 
An application for a license required under this 
chapter 
must 
be 
on 
the 
form 
provided 
by 
the 
board. 
The 
application must contain, but is not limited to, the following 
information 
regarding 
the 
individual 
applicant 
and 
each 
key 
employee, 
officer. 
director, 
partner, 
shareholder, 
creditor, 
associate or owner of any legal or beneficial interest in a 
person applying for a license: 
A. Full name; 
B. Full current address and addresses for the prior 15 years; 
C. 
A record of previous issuances and denials of or any 
adverse action taken against a gambling-related license or 
application 
under 
this 
chapter 
or 
in 
any 
other 
jurisdiction. 
For 
purposes 
of 
this 
paragraph, 
"adverse 
action" 
includes, 
but 
is 
not 
limited 
to, 
a 
condition 
resulting from an administrative or criminal violation, 
a 
suspension 
or 
revocation 
of 
a 
license, 
or 
a 
voluntary 
surrender of 
a 
license to avoid or resolve criminal or 
disciplinary action; 
D. 
All information the board determines is necessary or 
appropriate to determine whether the applicant satisfies the 
minimum qualifications specified in section 1017. subsection 
1; and 
E. 
Any information the board by rule considers necessary. 
2. Signature as certification. 
The applicant, by affixing 
the applicant's signature to the application, certifies: 
A. 
That the statements made in the application and any 
documents 
made 
a 
part of 
the application are true 
and 
correct; 
B. 
That 
the 
applicant 
understands 
that 
the 
information 
provided pursuant to subsection 1 is used by the board, 
along with other information, 
in judging the applicant's 
suitability and that this 
information may 
be 
cause 
for 
refusal to issue a license; and 
C. That the applicant understands that knowingly making a 
false statement in the application. during the application 
process or in a document made a part of the application is 
among the grounds for refusal to issue a license or for 
revocation or suspension of a license. 
3. Consent to review records. 
At the request of the board. 
the applicant shall take whatever action is necessary to permit 
the board. a designee of the board or the department to examine 
all accounts and records in the applicant's possession. under the 
applicant's control or under the control of 3rd parties but 
accessible by consent of the applicant. and must authorize all 
3rd parties in possession or in control of those accounts or 
records to allow the board. 
a 
designee of the board or the 
department to examine the accounts and records as the board. a 
designee of the board or the department determines necessary. to 
ascertain: 
A. 
Whether the information supplied on the application or 
any documents made a part of the application is true and 
correct; 
B. 
Whether each of the requirements of this chapter and 
rules adopted under this chapter has been met; and 
C. 
Whether 
the 
applicant 
meets 
the 
requirements 
for 
licensure under this chapter and under rules adopted under 
this chapter. 
The consent to review records includes the applicant's taking 
whatever action is necessary to permit the board. a designee of 
the board or the 
department to 
have 
access 
to confidential 
records held by banks, courts. law enforcement agencies and the 
military for purposes stated in this chapter. 
Refusal to provide 
consent or access to records is grounds for denial of a license. 
4. 
Application for renewal. 
Application for renewal of a 
license issued under this chapter must be made no less than 6 
months prior to the expiration of the current license. 
§1019. Fees; term of license or registration; nontransferability; 
vested rights 
1. Fees. 
The application fee for a license and the annual 
fee for a registered slot machine under this chapter are as set 
out in this subsection. 
A. The annual fee for a registered slot machine is $50. 
B. 
The gJ;!J;lIj,CgtiQn fee tQr g licen§e fQr g §!lot machine 
distributor i§ $200,000. 
C. 
The gJ;!J;!liCgtiQn fee fQr g licen§e fQr g §lot machine 
QJ;!ergt,Qr il2 
~2QQ.QQQ. 
D. 
The 
aJ;!plication 
fee 
for 
a 
license 
for 
a 
gambling 
§ervices vendor Qr nongambling §ervices vendor is $2.000. 
E. 
The 
aJ;!plication 
fee 
fQr 
gn 
emJ;!loyee 
lj,cense 
under 
sectiQn 1Q15 is $25Q and under sectiQn 1016 is $50. 
In additiQn to the aJ;!J;!lication fee for a license or annual fee 
fQr a registered slQt mgchine. the bQgrd may charge a one-time 
aJ;!J;!lication 
fee 
for 
a 
licen§e 
Qr 
registration 
listed 
in 
J;!aragraphs A tQ E in an amQunt equal tQ the J;!rojected cost of 
J;!rQcessing 
the 
aJ;!J;!lication 
and 
performing 
any 
background 
investigatiQns. 
If the actugI cost exceeds the J;!rojected cost. 
an additiQnal fee may be chgrged tQ meet the actual cost. 
If the 
J;!rojected cost exceeds the actual cost. the difference may be 
refunded tQ the aJ;!J;!licgnt. 
All fee§ collected J;!ursuant to this 
section must be deJ;!osited directly to the General Fund. 
All 
aJ;!J;!lication and regi§!tration fees are nQnrefundable and are due 
uPQn §!ubmissiQn of the aJ;!J;!lication. 
2. Term of license; renewal. 
All licenses issued by the 
board under this chaJ;!ter are effective for one year. 
unless 
revQked or surrendered J;!ursuant to subchaJ;!ter 5. 
A license may 
be 
renewed 
by the board for 
an additional year upon proper 
apJ;!lication in accordance with rules adopted by the board and 
payment of the required fees and taxes. 
3. Not transferable. 
A license issued under this chapter is 
not tran§ferable or assignable~ 
4. 
Hearing. 
A full adjudicatory hearing is not required 
fQr 
the 
denial 
of 
an 
initial 
license 
or 
registration 
applicatiQn. 
Appeals of license or registration'denials must be 
conducted in accordance with section 1051, subsection 4. 
5. 
Vested rights. 
A person does not have any vested rights 
in any license. registration. authorization. permit. application 
Qr J;!rQcess prQvided or offered under thi§! chgpter. 
§1020. 
Other requirements 
1. 
Waiver of liability for disclosure. 
An aJ;!plicant or 
licen§ee shgll J;!rovide all infQrmation required by this chapter 
and rules adQJ;!ted under thi§ chapter and satisfy all requests for 
infQrmation J;!ertaining tQ licen§ing. in the form specified by the 
board. 
An applicant or licensee shall waive liability as to the 
State, its instrumentalities and agents for any damages resulting 
from any disclosure or publication in any manner other than a 
willful unlawful disclosure or publication of any material or 
information acquired during inquiries, investigations or hearings. 
2. 
Continuing duty to disclose certain information. 
An 
applicant or licensee shall continue to provide any assistance or 
information required by the board and cooperate in any inquiry, 
investigation 
or 
hearing 
conducted 
by 
the 
board 
or 
the 
department. 
Failure to comply upon issuance of a formal request 
to 
answer or produce information, 
evidence or 
testimony may 
result in the denial or revocation of a license by the board. 
3. 
Compensation or reward prohibited. 
Except as authorized 
in this chapter~ an applicant or licensee may not give or provide 
or 
offer 
to 
give 
or 
provide, 
directly 
or 
indirectly, 
any 
compensation, 
reward or percentage or share of the money or 
property played or received through gambling activity in exchange 
for obtaining a license, authorization, permission or privilege 
to participate in gambling activities. 
4. 
Identification. 
An applicant or licensee shall submit 
to 
photographing 
and 
fingerprinting 
for 
identification 
and 
investigation purposes in accordance with procedures established 
by the board. 
5. 
Information 
regarding 
violations 
of 
chapter. 
An 
applicant or licensee shall inform the board of any action that 
the applicant or licensee believes would constitute a violation 
of this chapter. 
A person who so informs the board may not be 
discriminated against by another applicant or licensee because of 
the supplying of such information. 
6. 
Proximity of 
licensed slot machine 
facilities_ 
A 
license may not be issued under this chapter at any commercial 
track 
located within 
miles 
of 
a 
licensed slot machine 
facility. 
§1021. Registration of slot machines 
1. 
Registration 
required. 
A slot 
machine 
may 
not 
be 
operated or distributed pursuant to this chapter unless the slot 
machine is registered by the board and the slot machine operator 
and the slot machine distributor are each licensed by the board. 
2. Reqyirements for registration. 
To be registered, a slot 
machine: 
A. May not have any means of manipulation that affect the 
random probabilities of winning a game: 
B. Must have one or more mechanisms that accept money or 
tokens, credits or similar objects or things of value and 
that are designed to prevent a person from obtaining credits 
or cash without paying: 
C. Must be designed to suspend operation until reset if a 
person attempts, by physical or other tampering, to obtain 
credits or cash without paying: 
D. 
Must 
have 
nonresettable meters 
housed 
in 
a 
readily 
accessible locked slot machine area that keep a permanent 
record of all cash inserted into the slot machine, credits 
or cash awarded by the slot machine, credits played for 
games and credits distributed by tickets issued by the slot 
machine: 
E. 
Must have accounting software that keeps an electronic 
record of information that includes, but is not limited to, 
total 
cash 
inserted into 
the 
slot machine: 
total 
cash 
awarded, total credits played for games and total credits 
distributed by tickets issued by the slot machine: and the 
payback percentage of each game; 
F. 
Must have continuous on line monitoring technology that 
allows 
the 
slot machine 
to 
be 
monitored 
by 
the 
board 
pursuant to section 1003, subsection 2; 
G. 
Must have a minimum payback percentage of 90%; and 
H. 
Must have, in addition to the re9uirements of paragraphs 
A 
to 
G, 
other 
such 
characteristics 
as 
the 
board 
may 
establish by rule. 
3. 
Limits 
OD 
total 
slot 
machines. 
The 
board 
shall 
determine the number of slot machines to be registered in the 
State. 
The board shall make this determination based upon the 
minimum gross slot machine income, when distributed pursuant to 
section 1036, 
necessary to maintain the harness horse racing 
industry in this State, except that: 
A. 
The total number of slot machines registered in the 
State may not exceed 3,000; and 
B. 
A slot machine operator may not operate more than 1,500 
slot machines at anyone commercial track. 
4. 
Examination of slot machines. 
The 
board shall, 
in 
cooperation 
with 
the 
department, 
examine 
slot 
machines 
and 
associated 
equipment 
of 
slot 
machine 
distributors 
seeking 
registration as 
required in this 
chapter. 
The 
board shall 
require the slot machine distributor seeking examination and 
approval of the slot machine or associated equipment to pay the 
anticipated 
cost 
of 
the 
examination 
before 
the 
examination 
occurs. 
After the examination occurs, 
the board shall refund 
overpayments 
or 
charge 
and 
collect 
amounts 
sufficient 
to 
reimburse the board for underpayments of actual cost. 
The board 
may contract for the examinations of slot machines and associated 
equipment as required by this section. 
5. Unregistered or noncompliant slot machine 
subject to 
confiscation. 
A slot machine that is not registered as required 
by this section or that does not comply with the requirements of 
this chapter oi rules adopted under this chapter is contraband 
and a public nuisance and the slot machine and the slot machine's 
monetary contents, monetary proceeds and associated equipment are 
subject to confiscation by any law enforcement officer. 
Slot 
machines 
and 
any 
monetary 
contents, 
monetary 
proceeds 
and 
associated equipment confiscated pursuant to this section are 
subject to forfeiture in accordance with the procedures outlined 
in Title 17-A, section 959 or 960. 
SUBCHAPTER 3 
SLOT MACHINE OPERATION; ALLOCATION OF FUNDS 
SI031. 
Age limit on slot machine use; access by minors 
1. 
Minimum age. 
A slot machine operator may not permit a 
person under 21 years of age to playa slot machine. 
2. Placement of slot machines. 
A slot machine operator, 
slot machine distributor, gambling services vendor or nongambling 
services vendor shall prohibit persons under 21 years of age from 
any area in which a slot machine is located, except that a person 
to 20 years of age may be present if that person is a licensed 
employee under section 1015 or 1016. 
SI032. pazment of credits by slot machine operator 
A slot machine operator shall redeem credits for players who 
earn credits on a slot machine located on the premises of that 
slot machine operator in accordance with rules adopted by the 
board. 
SI033. 
uniform location agreement 
Each slot machine is subject to a uniform location agreement 
between 
the 
slot 
machine 
distributor 
and 
the 
slot 
machine 
operator. 
A copy of the agreement must be submitted to the board 
for approval. The uniform location agreement is the complete and 
sole agreement between the slot machine operator and the slot 
machine distributor regarding slot machines. 
No other agreement 
between 
the 
slot 
machine 
operator 
and 
the 
slot 
machine 
distributor is legally binding. 
§l034. 
Disclosure of other contracts and agreements 
A slot machine 
operator 
must 
submit 
to 
the 
board all 
contracts or agreements the slot machine operator establishes 
with 
a 
slot machine 
distributor, 
licensed gambling 
services 
vendor, licensed nongambling services vendor or a key individual. 
§l035. 
Location of slot machines 
Slot machines may be located only on the premises of a 
commercial track. 
§l036. Allocation of funds 
1. 
Distribution from 
commercial 
track. 
A slot machine 
operator shall collect and distribute gross slot machine income 
from slot machines operated by the slot machine operator as set 
out in this subsection. 
A. 
Prior to any distribution under paragraph B, the slot 
machine operator shall forward the compensation percentage 
determined pursuant to section 1037 
to the board, 
which 
shall forward it to the State Controller to be credited to 
the General Fund. 
B. After the distributio~ made pursuant to paragraph A, the 
slot machine operator shall send 25% of the remainder of the 
total 
gross 
slot 
machine 
income 
to 
the 
board 
for 
distribution by the board as follows: 
(1) One percent of the total gross slot machin~ income 
must be retained for administrative expenses of the 
board. An amount not to exceed $250,000 may be expended 
by 
the 
board 
for 
addiction counseling services 
in 
accordance with rules adopted by the board; 
(2) 
Seven percent of the total gross slot machine 
income must be used by the board to supplement harness 
racing purses and must be disbursed for that purpose at 
the times and in the manner prescribed in section 298; 
(3) One percent of the total gross slot machine income 
must be credited by the board to the Sire Stakes Fund 
created in section 281; 
(4) 
Three percent of the total gross slot machine 
income must be forwarded by the board to the Treasurer 
of 
State, 
who 
shall 
c redi t 
the 
money 
to 
the 
Agricultural Fair Support Fund established in Title 7, 
section 77; 
(5) Ten percent of the total gross slot machine income 
must be forwarded by the board to the State Controller 
to 
be 
credited 
to 
the 
Fund 
for 
a 
Healthy 
Maine 
established by Title 22, section 1511 and segregated 
into a separate account under Title 22, section 1511, 
subsection 
11, 
with 
use 
of 
funds 
in 
the 
account 
restrfcted to 
the 
purposes 
described 
in Title 
22, 
section 1511, subsection 6, paragraph E; 
(6) 
Two percent of the total gross slot machine income 
must be forwarded by the board to the Finance Authority 
of Maine for application to the University of Maine 
System Scholarship Fund created in Title 20-A, section 
11631; and 
(7) 
One percent of the total gross slot machine income 
must be forwarded by the board to the board of trustees 
of the Maine Community College System to be applied by 
the board of trustees to fund its scholarships program 
under Title 20-A, section 12716, subsection 1. 
2. Failure to deposit funds. 
A slot machine operator who 
knowingly or intentionally fails to comply with this section 
commits 
a 
Class 
C crime. 
In addition to 
any other sanction 
available by law, the license of that person may be revoked by 
the board and the slot machines operated by that slot machine 
operator may be disabled, and the slot machines, slot machines' 
proceeds and associated equipment may be confiscated by the board 
and are subject to forfeiture under Title 17-A, section 959 or 
~ 
3. Late pa,yments. 
The board may adopt rules establishing 
the dates on which payments required by this section are due. All 
payments 
not 
remitted 
when 
due 
must 
be 
paid 
together 
with 
interest on the unpaid balance at a rate of 1.5% per month. 
§l037. 
Annual compensation percentage calculation; impact fees 
for certain gambling facilities 
The annual compensation percentage distributed pursuant to 
section 
1036, 
subsection 1, 
paragraph 
A must 
be 
calculated 
pursuant to this section. 
1. 
State 
administrative. 
regulato~ and 
economic 
costs 
calculation. 
Prior to the commencement of each state fiscal 
year, the Commissioner of Administrative and Financial Services 
shall establish a compensation percentage by routine technical 
rulemaking pursuant to Title 5, chapter 375, subchapter 2-A. 
The 
amount of the 
compensation percentage must 
be sufficient to 
compensate 
the 
State 
for 
all administrative, 
regulatory 
and 
economic costs, including lost lottery revenue, 
caused by the 
gambling activities licensed under this chapter and must account 
for the amount remitted to the board pursuant to section 1036, 
subsection 
1, 
paragraph 
B, 
subparagraph 
(1). 
In 
addition, 
high-stakes beano and off-track betting operators may petition 
the commissioner for lost revenue directly associated with the 
gambling 
activities 
licensed 
under 
this 
chapter. 
The 
commissioner shall establish a 
procedure for determining such 
impacts by routine technical rulemaking pursuant to Title 5, 
chapter 375. 
2. 
Impact fees for certain gambling facility operators. 
If 
a 
high-stakes 
beano 
or 
off-track 
betting 
facility 
operator 
demonstrates 
by 
a 
preponderance 
of 
the 
evidence 
to 
the 
Commissioner of Administrative and Financial Services that the 
operator has suffered a direct adverse economic 
impact as 
a 
result of a slot machine operator's activities licensed under 
this chapter 
and 
the high-stakes 
beano 
or off-track betting 
facili ty operator quantifies the specific amount of the adverse 
economic impact, then the commissioner shall include within the 
annual compensation percentage a 
sum equal to the sum of the 
actual 
harm 
incurred 
by 
the 
affected 
high-stakes 
beano 
or 
off-track betting facility. 
The 
sum must be remitted to the 
affected high-stakes beano or off-track betting facility operator 
within 30 days of receipt by the State of the annual compensation 
percentage 
remittance. 
The 
commissioner 
may 
adopt 
rules 
to 
administer this section. 
These rules are routine technical rules 
pursuant to Title 5, chapter 375, subchapter 2-A. 
SUBCHAPTER 4 
RECORDS. ACCESS AND MONITORING 
§l04l. Reports; records 
1. Reports; records. 
The board or department may require 
from 
any 
licensee 
whatever 
records 
and 
reports 
the 
board 
considers necessary for the administration and enforcement of 
this chapter and rules adopted under this chapter. 
2. Location. 
A slot machine operator shall maintain all 
records reguired by this chapter or by rules adopted under this 
chapter at the operator's primary business office wi thin this 
State or on the premises where the slot machine is operated. 
A 
slot machine distributor shall maintain these records at the 
distributor's primary business office within this State. 
The 
primary business office must be designated by the license holder 
in 
the 
license 
application. 
All 
records 
must 
be 
open 
to 
inspection and audit by the board or its designee and a license 
holder may not refuse the board or its designee the right to 
inspect or audit the records. 
Refusal to permit inspection or 
audit of 
the 
records 
constitutes 
grounds 
for 
revocation or 
suspension of the license or registration. 
§l042. 
Access to premises. equipment and records 
1. 
Inspection. 
A person holding a license or registration 
under this chapter shall permit the board, the department or a 
designee of the board or the department unrestricted access, 
during regular business hours, 
including access to locked or 
secured 
areas, 
to 
inspect 
any 
gambling 
facility 
and 
any 
equipment, prizes, records or items and materials used or to be 
used in the operation of any slot machine or associated eguipment 
owned, distributed or operated by that person. 
A person holding 
a license or registration under this chapter shall consent in 
writing to 
the examination of all the licensee's books 
and 
records related to operations licensed under this chapter and 
shall authorize all 3rd parties in possession or in control of 
those 
books 
and 
records 
to 
allow the board or 
the board's 
designee 
to 
examine 
such 
books 
and 
records 
as 
the 
board 
determines necessary. 
2. 
Monitoring. 
The board or the depc.rtment shall monitor 
the use, operation, distribution and servicing of slot machines 
through on-site observation and other means at any time during 
the operation of any license for the purpose of certifying the 
revenue thereof, receiving complaints from the public relating to 
the 
conduct of licensees. 
examining records 
of 
revenues 
and 
procedures. 
enforcing the provisions of this chapter and the 
rules adopted pursuant to this chapter and conducting periodic 
reviews of licenses for the purpose of evaluating current or 
suggested 
provisions 
of 
this 
chapter 
and 
the 
rules 
adopted 
pursuant to this chapter. 
SUBCHAPTER 5 
KNFORCEMEH'T AND PENALTIES 
§l051. 
Disciplina~ sanctions 
1. 
Disciplinar.y proceedings and sanctions. 
The department 
or its designee shall investigate a complaint on its own motion 
at the 
reguest of 
the board or 
upon 
receipt of 
a 
written 
complaint filed with 
the 
board or 
the 
department 
regarding 
noncompliance with or violation of this chapter or of any rules 
adopted by the board. 
The board or its designee may subpoena 
witnesses, records and documents, including records and documents 
maintained 
by 
any 
gambling 
services 
vendor 
or 
nongambling 
services 
vendor 
in contract, 
cooperation or 
consort with 
a 
licensee, in any investigation or hearing it conducts. 
2. 
Notice 
of 
complaint 
or 
violation 
and 
request 
for 
hearing. 
Following 
investigation 
by 
the 
department 
or 
its 
designee, the director may file a notice of complaint and reguest 
for hearing with the board or may serve the licensee with notice 
of violation and proposed sanction and opportunity to reguest a 
hearing. 
3. 
Further action. 
If the board or its designee finds 
after notice pursuant to subsection 2 that the factual basis of 
the complaint is true and is of sufficient gravity to warrant 
further action, it may take any of the following actions. 
A. 
The board or its designee may enter into 
a 
consent 
agreement with the consent of the licensee that establishes 
the period and terms of probation necessary to protect the 
public health and safety and to rehabilitate or educate the 
licensee. A consent agreement may be used to terminate a 
complaint investigation if a consent agreement is entered 
into by the board, the licensee and the Attorney General. 
B. If a licensee voluntarily surrenders a license, the board 
or its designee 
may negotiate stipUlations necessary to 
ensure protection of the public health and safety and the 
rehabilitation 
or 
education 
of 
the 
licensee. 
These 
stipulations may be set forth only in a consent agreement 
signed by the board, the licensee and the Attorney General. 
C. 
The 
board 
may 
take disciplinary action against 
any 
applicant or licensee pursuant to this chapter or any rules 
adopted pursuant 
to 
this 
chapter. 
Disciplinary action, 
including, but not limited to, a decision to impose a civil 
penalty or 
to 
modify, 
suspend or 
revoke 
a 
license 
or 
registration, may be predicated on the following grounds: 
(1) 
Fraud or deceit in obtaining a license under this 
chapter or in connection with service rendered wi thin 
the scope of the license issued; 
(2) 
A violation of this chapter or any rule adopted by 
the board; 
(3) 
Ineligibility to hold a license or registration 
under this chapter; 
(4) 
Subject to the limitations of Title 5, chapter 
341, conviction of a crime that involves dishonesty or 
false 
statement, 
conviction 
of 
a 
crime 
for 
which 
incarceration for one year or more may be imposed or 
conviction of a crime defined in Title 17 -A, chapter 
39; or 
(5) 
Grounds 
other 
than 
those 
descr ibed 
in 
subparagraphs (1) to (4) specified by rule or law. 
4.. 
Appeals. 
A person aggrieved by the 
decision of 
a 
designee of the board in modifying or refusing to issue or renew 
a 
license or registration, 
in taking any disciplinary action 
pursuant to this chapter or 
rules 
adopted pursuant 
to this 
chapter or in the interpretation of this chapter or rules adopted 
pursuant to this chapter may appeal the decision to the board for 
a final decision. The designee's decision stands until the board 
issues· a decision to uphold, modify or overrule the designee's 
decision. In the case of appeal to the board, the person must be 
afforded an opportunity for an adjudicatory hearing in accordance 
with this chapter and the Maine Administrative Procedure Act. 
A person aggrieved by a final decision of the board in waiving 
the application of any rule, in refusing to issue or renew a 
license 
or 
registration, 
in 
taking 
any 
disciplinary 
action 
pursuant to this chapter or 
rules 
adopted pursuant 
to this 
chapter or in the interpretation of this chapter or any rule 
adopted pursuant to this chapter may appeal the board's decision 
to the Superior Court in accordance with Title 5, chapter 375, 
subchapter 7. 
§I052. 
Confidentiality 
All reports, information or records compiled by the board or 
the 
department 
pursuant 
to 
this 
subchapter 
regarding 
an 
applicant, licensee, owner or key individual are confidential, 
except that the board may disclose any confidential information 
as follows. 
1. 
Bearings or proceedings. 
Confidential information may 
be released in an 
adjudi~atory hearing or informal conference 
before the board or in any subsequent formal proceeding to which 
the information is relevant. 
2. 
Consent 
agreements 
or 
settlements. 
Confidential 
information may be released in a 
consent agreement or other 
written settlement when the information constitutes or pertains 
to the basis of board action. 
3. 
During investigation. 
All complaints and investigative 
records of the board are confidential during the pendency of an 
investigation. 
Those 
records 
become 
public 
records 
upon 
the 
conclusion of an investigation unless confidentiality is required 
by some other provision of law. For purposes of this subsection, 
an investigation is concluded when: 
A. 
A notice of an adjudicatory hearing as defined under 
Title 5, chapter 375, subchapter 1 has been issued; 
B. 
A consent agreement has been executed: or 
C. 
A 
letter 
of 
dismissal 
has 
been 
issued 
or 
the 
investigation has otherwise been closed. 
4. 
Exceptions. 
Notwithstanding subsection 3, 
during the 
pendency of an investigation, a complaint or investigative record 
may be disclosed: 
A. 
To the department: 
B. 
To 
other state or federal 
agencies when the record 
contains evidence of possible violations of laws, rules or 
regulations enforced by those agencies or as the board or 
the board's designee considers appropriate: 
C. 
When 
and to the extent considered necessary by the 
director to avoid imminent and serious harm. 
The authority 
of 
the director 
to 
make 
such 
a 
disclosure 
may 
not 
be 
delegated; 
D. 
Pursuant to rules adopted by the board, 
when it is 
determined 
that confidentiality lS no longer warranted due 
to general public knowledge of the circumstances surrounding 
the complaint or investigation and when the investigation 
would not be prejudiced by the disclosure; or 
E. 
To the person investigated on request of that person. 
The director may refuse to disclose part or all of any 
investigative information, 
including the existence of 
an 
investigation if the director determines that disclosure 
would prejudice the 
investigation. 
The 
authority of the 
director to make such a determination may not be delegated. 
§l053. 
Disciplina~ action by the board 
1. 
Possible sanctions. 
For each violation of this chapter 
or the rules or conditions of licensure or registration, the 
board may take one Qr more of the following actions: 
A. 
Issue a warning, censure or reprimand to a licensee or 
registrant. Each warning, censure or reprimand issued must 
be based upon a violation of a different applicable law, 
rule or condition of licensure or must be based upon a 
separate instance of actionable conduct or activity; 
B. 
Suspend a license or registration for up to 360 days for 
each violation of an applicable law, rule or condition of 
licensure or registration or instance of actionable conduct 
or activity. Suspensions may be set to run concurrently or 
consecutively. Execution of all or any portion of a term of 
suspension may be stayed pending successful completion of 
conditions of probation, 
althgugh the 
suspension 
remains 
part of the licensee's or registrant's record; 
C. 
Revoke a license or registration; 
D. 
Impose a fine of up to $100,000 for each violation of an 
applicable 
law, 
rule 
or 
condition 
of 
licensure 
or 
registration or instance of actionable conduct or activity; 
E. 
Impose 
conditions 
of 
probation 
upon 
a 
licensee 
or 
registrant. Probation may run for such time period as the 
board determines appropriate; and 
F. 
Impose costs of investigation and hearing. 
2. 
Consent agreements. 
The board may execute a 
consent 
agreement that resolves 
a 
complaint or investigation without 
further proceedings. Consent agreements may be entered into only 
with the consent of the licensee or registrant, the board and the 
Attorney General. Any remedy, penalty or fine that is otherwise 
available by law may be achieved by consent agreement, including 
long-term suspension and permanent revocation of a 
license or 
registration. A consent agreement is not subject to review or 
appeal and may be modified only by a writing executed by all 
parties to the original consent agreement. A consent agreement is 
enfgrceable by an action in Superior Court. 
3. 
Surrender of license or registration. 
The board may 
accept surrender of a license or registration. In order for a 
licensee's or registrant's surrender of a license or registration 
to be effective, a surrender must first be accepted by vote of 
the board. 
The board may refuse to accept surrender of a license 
gr 
registration 
if 
the 
licensee 
or 
registrant 
is 
under 
investigation or 
is 
the 
subject of 
a 
pending 
complaint 
or 
proceeding, 
unless 
a 
consent agreement is first entered into 
pursuant to this chapter. 
4. 
Letters of guidance or concern. 
The board may issue 
letters of guidance or concern to 
a 
licensee or registrant. 
Letters of guidance or concern may be used to educate, reinforce 
knowledge regarding legal or professional obligations and express 
concern over action or inaction by the licensee or registrant 
that does not rise to the level of misconduct sufficient to merit 
disciplinary action. The issuance of a letter of guidance or 
concern is not a formal proceeding and does not constitute an 
adverse disciplinary action of 
any 
form. 
Notwithstanding any 
other provision of law, letters of guidance or concern are not 
confidential. The board may place letters of guidance or concern, 
together with any underlying complaint, report and investigation 
materials, in a licensee's or registrant's file for a specified 
amount of time, not to exceed 10 years. Any letters, complaints 
and materials placed on file may be accessed and considered by 
the board in any subsequent action commenced against the licensee 
or 
registrant 
within 
the 
specified 
time 
frame. 
Complaints, 
reports 
and 
investigation 
materials 
placed 
on 
file 
are 
confidential only to the extent otherwise provided by law. 
§I054. 
Criminal violations 
A person commits a Class C crime if that person knowingly or 
intentionally: 
1. 
Tampering with slot machine. 
Manipulates or intends to 
manipulate the outcome, payback or operation of a slot machine by 
physical tampering or any other means; 
2. 
Interference. 
Interferes with the board's ability to 
monitor compliance with this chapter; 
3. 
Operation or distribution without license. 
Operates or 
distributes a slot machine in this State without a license; 
4. 
Operation or distribution of unregistered slot machine. 
Operates or distributes a slot machine that is not registered in 
this State; 
5. 
Possession of tools for purpose of tampering with slot 
machine. 
Possesses or makes any tool, implement. instrument or 
other article that is adopted, 
designed or commonly used for 
manipulating the outcome, payback or operation of a slot machine 
with intent to use that tooL 
implement. 
instrument or other 
article to commit the manipulation of a slot machine; 
6. 
Failure to disclose contracts and agreements. 
Violates 
section 1034; 
7. 
Underage use of slot machine. 
Violates section 1031, 
subsection 1; 
8. 
Failure to deposit 
funds. 
Violates 
section 
1036, 
subsection 2; or 
9. 
Failure to grant access to premises. 
equipment and 
records. 
Violates section 1042. 
SUBCHAPTER 6 
MISCELLANEOUS 
§1061. Authority to detain persons suspected of cheating; immunity 
A licensee or an officer, employee or agent of the licensee 
who has probable cause to· believe there has been a violation of 
this chapter in the gambling facility by any person may take that 
person into 
custody 
and detain that person in the 
gambling 
premises in a reasonable manner for a reasonable length of time 
for the purpose of notifying and surrendering the person to law 
enforcement authorities and, when the detained person is a minor, 
informing a law enforcement officer or the parents or guardian of 
the minor of the detention and surrendering the minor to the 
person so informed. 
The act of taking into custody and detention 
under this section does not render the licensee or its officers, 
employees or agents criminally or civilly liable, including but 
not limited to liability for false arrest, false imprisonment, 
slander or unlawful detention, unless the taking into custody or 
detention is unreasonable under all the circumstances. 
A licensee or an officer, employee or agent of the licensee 
is not entitled to any immunity from civil or criminal liability 
provided 
in 
this 
section 
unless 
there 
is 
displayed 
in 
a 
conspicuous manner in the licensee's gambling facility a notice 
in boldface type clearly legible and in substantially this form: 
"Any gambling licensee or any officer, employee or agent of a 
licensee who has probable cause to believe that a 
person is 
violating a provision of law prohibiting cheating or swindling in 
gambling may detain that person in the establishment for the 
purpose of notifying law enforcement authorities." 
§1062. 
Municipal regulation 
This 
chapter 
may 
not 
be 
construed 
to 
limit 
municipal 
regulation of the activities licensed under this chapter, as long 
as such municipal regulation does not conflict with this chapter 
or rules adopted under this chapter. 
§1063. Rules 
Rules adopted pursuant to this chapter are routine technical 
rules pursuant to Title 5, chapter 375, subchapter 2-A. 
§l064. Applicability of Title 17. chapter 14 
Except as expressly provided in this chapter, the provisions 
of 
Title 
17, 
chapter 
do 
not 
apply 
to 
the 
ownership, 
distribution or operation of slot machines in the State. 
Sec. A-5. 17-A MRSA §952, sub-§5-A, 1[1[B and C, as enacted by 
PL 2001, c. 461, §1, are amended to read: 
B. 
That is used to advance gambling activity; aBS 
C. 
That is not a machine that a person may lawfully operate 
pursuant to a license that has been issued under Title 17, 
chapter 
or 
that 
is 
operated 
by 
the 
Department 
of 
Administrative and Financial Services, Bureau of Alcoholic 
Beverages and Lottery OperationsT; and 
Sec. A-6. 17-A MRSA §952, sub-§5-A, 1[D is enacted to read: 
D. 
That is not a slot machine registered pursuant to Title 
8, 
section 1021 and owned by a slot machine distributor 
licensed pursuant to Title 8, section 1012. 
Sec. A-7. 17-A MRSA §959, sub-§§l and 2, as enacted by PL 
2001, c. 461, §2, are amended to read: 
1. 
An 
illegal gambling machine, 
including any monetary 
contents and any associated proceeds, is subject to forfeiture to 
the State. 
2. 
An illegal gambling machine aBsL any monetary contents 
and any associated proceeds may be declared forfeited under this 
section by any court that has jurisdiction over the illegal 
gambling machine or final jurisdiction over any related criminal 
proceeding brought under this chapter or by the Superior Court 
for Kennebec County. 
Property subject to forfeiture may be kept 
or stored at any location within the territorial boundaries of 
the State and is SUbject to the authority of any court in which a 
petition seeking the forfeiture of that property is filed. 
Sec. A-S. 22 MRSA §1511, sub-§ll is enacted to read: 
11. 
Restricted 
accounts. 
The 
State 
Controller 
is 
authorized to establish separate accounts within the fund 
~n 
order to segregate money received by the fund from any source, 
whether public or priyate, that requires as a condition of the 
contribution to the fund that the use of the money contributed be 
restricted to one or more of the purposes specified in subsection 
6. 
Money credited to a restricted account established under this 
subsection may be applied only to the purposes to which the 
account is restricted. 
Sec. A-9. 36 MRSA §6652, sub-§I-B, 1f1fA and B, as enacted by PL 
1997, c. 24, Pt. C, §14, are amended to read: 
A. 
Office furniture, including without limitation tables, 
chairs, desks, bookcases, filing cabinets and modular office 
partitions; aRa 
B. 
Lamps and lighting fixturesT; and 
Sec. A-I0. 36 MRSA §6652, sub-§I-B, 1fC is enacted to read: 
C. 
A slot machine and associated equipment, as those terms 
are defined in Title 8, section 1001, and any part thereof, 
and any device or machine used directly and primarily in the 
operation or 
use 
of 
a 
slot machine, 
including but not 
limited 
to 
printing mechanisms, 
video 
display monitors, 
metering devices and computer equipment. 
Sec. A-H. Report. 
The Gambling Control Board established in 
the Maine Revised Statutes, Title 8, chapter 31 shall submit by 
January 15, 2005 a report and recommendations to the Governor and 
the Legislature on bringing within the jurisdiction of the board 
regulatory authority over off-track betting, high-stakes beano, 
beano, pari-mutuel wagering and games of chance. 
PARTB 
Sec. B-1. 7 MRSA §76, as enacted by IB 2003, c. 1, §1, is 
repealed. 
Sec. B-2. 8 MRSA §263-C, sub-§4, 1f1fA and B, as amended by PL 
2003, c. 401, §4 and IB 2003, c. 1, §2, are repealed and the 
following enacted in their place: 
A. 
Management of the work of the commission, including: 
(I) 
Rulemakingj 
(2) 
Processing appeals; 
(3) 
Licensing 
of 
tracks 
and 
off track 
betting 
facilities; 
(4) 
Setting race dates; and 
(5) 
Making reports to the Governor and Legislature and 
recommendations to the commissioner regarding harness 
racing and off-track betting operations and the need 
for changes in statutes and rules; and 
B. 
Management 
of the work 
of the department 
regarding 
harness racing and off-track betting, including: 
(1) 
Supervision 
of all staff 
involved 
in harness 
racing and off-track betting functions; 
(2) 
Management of the collection and distribution of 
revenues under this chapter; 
(3) 
Budget development and management; 
(4) 
Policy development with regard to harness racing 
and off-track betting; 
(5) 
Management of participant licensing; 
(6) 
Enforcement 
of 
harness 
racing 
and 
off-track 
betting statutes and rules; 
(7) 
Investigation of 
harness 
racing 
and 
off-track 
betting violations; and 
(8) 
Facilitating the development of positive working 
relationships in the harness racing industry and State 
Government. 
Sec. B-3. 8 MRSA §271, sub-§l, as amended by IB 2003, c. 
L 
§3, is further amended to read: 
1. 
Licensing. 
If the commission is satisfied that all of 
this chapter and rules prescribed by the commission have been 
substantially complied with during the past year and will be 
fully 
complied with 
during 
the 
coming 
year 
by 
the 
person, 
association or corporation applying for 
a 
license; 
that the 
applicant, 
its 
members, 
directors, 
officers, 
shareholders, 
employees, creditors and associates are of good moral character; 
that the applicant is financially responsible; and that the award 
of 
racing dates 
to 
the 
applicant 
is 
appropriate 
under 
the 
criteria contained in subsection 2, it may issue a license for 
the holding of harness horse races or meets for public exhibition 
with pari-mutuel pools, which must expire on December 31st. 
The 
fee for a license is $100 or $10 per week, whichever is higher. 
The commission shall provide a booklet containing harness racing 
laws and rules and relevant portions of the Maine Administrative 
Procedure Act to every initial licensee and a fee not to exceed 
$10 must be included in the license fee to cover the cost of this 
publication. 
The commission shall provide necessary revisions of 
this booklet to those persons renewing licenses at the time of 
renewal 
and shall include the cost of the revisions, 
not to 
exceed $10, in the renewal fee. 
The license must set forth the 
name of the licensee, the place where the races or race meets are 
to be held and the specific race dates and time of day or night 
during which racing may be conducted by the licensee. 
If the 
commission determines that the location where a commercial track 
is licensed to conduct races is unavailable, it may permit a 
licensee 
to 
transfer its license 
to 
another 
location. 
The 
substitute location and the races conducted there by the licensee 
must be conducted in accordance with this chapter. 
A license 
issued 
pursuant 
to 
this 
subsection 
is 
not 
transferable 
or 
assignable. 
The District Court Judge, as designated in Title 4, 
chapter 
5, 
may 
revoke 
any 
license 
issued at 
any 
time 
for 
violation of the commission's rules or licensing provisions upon 
notice 
and hearing. 
A--l-i-G€-a&€---~--unde-i:---thl-6--6e€.t..,iei'l.--i6 
~~aB6~e~aa±e-~-~~~-a6-~~~-~ae-~~~~-~~&-~aa~ 
~ae--.t.£ai'l.6fe£ee--e~--~~-~~~~~-~l-l--~~a&&--feF--~ae 
i66aaBee--o-f--~ae--l-~-aeiB~--t-r--a-ntTf-e-r-r-ed--9F--as-s-i.qne.d-.---A The 
license is automatically revoked, 
subject to Title 5, 
chapter 
375, upon a change in ownership, legal or equitable, of 50% or 
more of the voting stock of --a--ee-F~Fa-&i-G-a--l-i€ei'l.-6ee.-~--I=Ri6 
6eet;iaB-~~-i-t-ut-e-&-~-~FaB6~eF--&f--t:he--±ieeB6e the licensee; the 
licensee may not hold a harness horse race or meet for public 
exhibition without a new license. 
Sec. 8-4. 8 MRSA §§296 and 297, as enacted by IB 2003, c. 1, 
§4, are repealed. 
Sec. B-5. 8 MRSA c. 30, as amended, is repealed. 
Sec. B-6. 22 MRS A §1511, sub-§10, as enacted by IB 2003, c. 1, 
§6, is repealed. 
Sec. B-7. 25 MRSA §3902, sub-§4, as enacted by IB 2003, c. 1, 
§7, is repealed. 
Sec. B-8. 
Statement of intent. 
It is 
the 
intent 
of 
the 
Legislature that this Act amend Initiated Bill 2003, chapter 1. 
This 
Act 
establishes 
the 
Gambling 
Control 
Board 
within 
the 
Department of Public Safety with authority over all slot machine 
licensing and distribution and registration. 
It is the intent of 
the Legislature that all slot machine operators and slot machine 
distributors be licensed by the Gambling Control Board pursuant 
to 
the 
Maine 
Revised 
Statutes, 
Title 
8, 
chapter 
31. 
The 
Legislature intends that the amendment effected by this Act be 
effective on or prior to the effective date of the initiated 
bill. 
It is further the intent of the Legislature that this bill 
extinguish 
any 
right, 
title or 
interest, 
whether 
vested or 
inchoate, 
in any license, 
registration, 
permit, 
privilege or 
entitlement that may 
have arisen under Initiated Bill 
2003, 
chapter 1. 
Sec. B-9. Retroactivity. 
The 
Act 
applies 
retroactively to 
January 3, 2004. 
Emergency clause. 
In view of the emergency cited in the 
preamble, this Act takes effect when approved. 
SUMMARY 
This bill effectively amends Initiated Bill 2003, chapter 1 
as approved by the voters at referendum in November 2003, which 
allows the operation of slot machines by certain persons who are 
licensed to operate commercial harness horse racing tracks. 
Part A of the bill establishes the Gambling Control Board 
within the Department of Public Safety to regulate the operation, 
distribution and maintenance of slot machines and the facilities 
at which those slot machines are located. 
The Gambling Control 
Board consists of 5 members who serve staggered 3-year terms and 
who 
are 
appointed by the 
Governor. 
The bill maintains 
the 
eligibility criteria for slot machine operators, but establishes 
licensing criteria applicable 
to all potential 
slot machine 
operators, 
thereby eliminating the initiated bill's automatic 
licensing provisions. 
The bill reverses the liberalization of 
harness 
horse 
track 
transfer 
regulations 
contained 
in 
the 
initiated bill. 
The bill creates a framework through which the 
Gambling Control Board will regulate and monitor slot 'machine 
operators, distributors and gambling-related vendors and service 
providers. 
Part A maintains the distribution of the gross income from 
slot machines, 
which is income after payback to players, 
as 
proposed in the initiated bill. 
However, the bill also allows 
the Commissioner 
of Administration and Financial Services to 
establish 
a 
"compensation 
percentage." 
The 
compensation 
percentage 
is 
defined 
as 
a 
percentage 
of 
the 
gross 
income 
necessary 
to 
compensate 
the 
Statt;! 
for 
all 
administrative, 
regulatory 
and 
economic 
costs 
associated 
with 
slot 
machine 
operations. 
In addition, the Commissioner of Administration and 
Financial 
Services 
is 
permitted 
to 
award 
"impact 
fees" 
to 
off-track 
betting 
and 
high-stakes 
beano 
operators 
that 
demonstrate 
adverse effects 
on their businesses 
as 
a 
direct 
result of the introduction of slot machine operations. 
Part 
A restricts 
the 
number 
of slot machines 
to 
that 
required to maintain the vitality of Maine's harness horse racing 
industry, 
as 
determined by the 
Gambling Control 
Board. 
The 
number is limited to 1,500 slot machines at anyone location and 
3,000 slot machines statewide. 
The bill requires slot machine 
operators to continue harness horse racing for the term of their 
licenses. 
Part A establishes a minimum payback percentage of 900,'0. 
A 
person under 21' years of age is prohibited from playing a slot 
machine. 
Part A further specifies that slot machines and associated 
equipment, as those terms are defined, are exempt from inclusion 
in the Business Equipment Tax Reimbursement program established 
in Title 36, chapter 915. 
Part B of this bill makes the changes necessary to the 
initiated bill and to extinguish any rights that may have arisen 
under Initiated Bill 2003, chapter 1 retroactive to January 3, 
2004, the effective date of the initiated bill.