An Act To Permit Video Gaming for Money Conducted by Nonprofit Organizations
Maine Legislature, Session 122, LD 1169
Committee: Legal and Veterans Affairs
Sponsors: DUPLESSIE, FLETCHER, JACKSON, JENNINGS, PINEAU, SAVIELLO, SMITH, GAGNON
Amends: 8 MRSA §372, 8 MRSA §374, 28-A MRSA §807, 28-A MRSA §1054

Legislative Document 
No. 1169 
H.P.812 
House of Representatives, March 8, 2005 
An Act To Permit Video Gaming for Money Conducted by 
Nonprofit Organizations 
Reference to the Committee on Legal and Veterans Affairs suggested and ordered printed. 
Presented by Representati ve PATRICK of Rumford. 
Cosponsored by Senator BR Y ANT of Oxford and 
'-7r/~ /J7. 71!dC~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: DUPLESSIE of Westbrook, FLETCHER of Winslow, JACKSON of Fort 
Kent, JENNINGS of Leeds, PINEAU of Jay, SAVIELLO of Wilton, SMITH of Van Buren, 
Senator: GAGNON of Kennebec. 
Printed Oil recycled pnrer 
Be it enacted by the People of the State of Maine as follows: 
Sec.t. 8 MRSA §372, sub-§2, 111, as amended by PL 2003, c. 673, 
Pt. MM, §1, is further amended to read: 
I. 
Carryon a continuous study and investigation of the 
lotteries 
throughout 
the 
State 
and 
the 
operation 
and 
administration of similar laws that may be in effect in 
other jurisdictions. 
The director, 
subject to the prior 
approval 
of 
the 
commission, 
may 
enter 
into 
a 
written 
agreement with a multijurisdictional lottery association for 
the operation, marketing and promotion of a joint lottery or 
joint lottery games with other jurisdictions. 
Any final agreement entered into with a multijurisdictional 
lottery association must provide that the director has the 
authori ty to terminate the agreement upon the provision of 
reasonable 
notice, 
not 
to 
exceed 
months. 
The 
final 
agreement 
must 
further 
provide 
that 
the 
director 
may 
terminate the agreement at any time, without pr ior notice, 
in the event that the director's authority is withdrawn or 
limited by law; aBe 
Sec. 2. 8 MRSA §372, sub-§2, 1fJ, as enacted by PL 1991, c. 780, 
Pt. y, §112, is amended to read: 
J. 
Assign duties as necessary to a designeeT; and 
Sec.3. 8 MRSA §372, sub-§2, 1fK is enacted to read: 
K. 
Carry out the duties assigned to the director under 
Title 17, chapter 16, including developing and maintaining a 
central computer system to monitor licensed video gaming 
terminals and coordinating and cooperating with the Chief of 
the State Police or the chief's designee in implementing and 
enforcing that chapter. 
Sec. 4. 8 MRSA §374, sub-§l. 1fL, as amended by PL 1997, c. 
301, §1, is further amended to read: 
L. 
The apportionment of the total annual revenue accruing 
from the sale of lottery tickets or shares and from all 
other sources for the payment of prizes to the holders of 
winning tickets or shares; for the payment of costs incurred 
in 
the 
operation 
and 
administration 
of 
the 
lotteries, 
including the expenses 
of 
the 
commission 
and 
the costs 
resulting from any contract or contracts entered into for 
promotional, advertising, consulting or operational services 
or 
for 
the 
purchase or 
lease of lottery equipment 
and 
materials; for the repayment of the money appropriated to 
the State Lottery Fund; and for transfer to the General Fund 
for distribution pursuant to section 387; aRa 
Sec. 5. 8 MRSA §374, sub-§I, 1[M, as enacted by PL 1997, c. 
301, §2, is amended to read: 
M. 
The imprinting on all lottery tickets sold in the State 
of the overall odds of winning a prize for each gameT~ 
Sec. 6. 8 MRSA §374, sub-§I, 1[N is enacted to read: 
N. 
Rules to administer and enforce Title 17, chapter 16, 
which may be adopted jointly with the Chief of the State 
Police. 
These rules are major substantive rules pursuant to 
Title 5, chapter 375, subchapter 2-A. 
Sec. 7. 17 MRS A §348 is enacted to read: 
§348. 
Applicability 
Except as expressly provided in chapter 16, this chapter 
L4 
, n 
1' .... u 
J(j 
does not apply to video gaming terminals. 
Sec. 8. 17 MRSA c.16 is enacted to read: 
VIDEO GAMING TERMINALS 
SUBCHAPTER 1 
GENERAL PROVISIONS 
§36l. 
Definitions 
As 
used 
in 
thi~h£Pt~r, unless 
the 
context 
otherwise 
\8 
indicates, the following terms have the following meanings. 
,-to 
1. 
Associated equipment. 
"Associated eguipment" means any 
propr ietary device, machine or part used in the manufacture or 
maintenance 
of 
a 
video 
gaming 
terminal, 
including, 
but 
not 
limited to, integrated circuit chips, printed wired assemblies, 
printed wired boards, printing mechanisms, video display monitors 
and metering devices. 
,-t6 
2. 
Director. 
"Director" means the Director of the Bureau 
of 
Alcoholic 
Beverages 
and 
Lottery 
Operations 
within 
the 
Department of Administrative and Financial Services. 
3. 
Drug abuser. 
"Drug abuser" has the same meaninq as set 
forth in Title 5, section 20003, subsection 10. 
4. 
Dr~.Q~ic-.t._. __ 
"D-.X_ug addict" has the same meaninq as set 
forth in Title 5, section 20003, subsection 11. 
5. 
Drug-de~l1dent~rson. 
"Drug-d~ndent person" has the 
same meaning as set forth in Title 5, section 20003, subsection 
12. 
6. 
Engage!1 in 
rec~le_~_s __ Q.r 
n~ql.J,g~D,.t conduct. 
"Enqaged in 
reckless or negligent conduct" means that the applicant. either 
consciously disregarding or failing to be aware of a risk that 
the applicant's conduct would cause such a result, enqaged in 
conduct that in fact created a substantial risk of death, serious 
bodily injury or bodily injury to another human being and the 
applicant's disregard or failure to be aware of that risk, when 
viewed in light of the n<;Lt_ure 
and llliJ.'pose of the applicant's 
conduct and the circumstances known to the applicant, involved a 
gross deviation from the standard of conduct that a reasonable 
and prudent person would observe in the same situation. 
7. 
Formal 
charging 
instrument. 
"Formal 
charging 
instrument" 
means 
a 
complaint, 
an 
indictment. 
informa.tion, 
a 
juvenile petition or other formal w:ritten accusation against a 
person for some criminal or juvenile offense. 
8. 
Fugitive from jy,stice. 
"Fugitive from justice" means a 
person described in Title IS, section 201, subsection 4; or 18 
United States Code, Section 921, Subsection (a), Paragral?h (15); 
or a person subject to 
q~J'!.J;,_standin~rant of arrest in this 
State 
or 
any 
other 
jurisdiction for 
a 
crime 
punishable 
by 
imprisonment for one year or longer. 
9. 
IllegaLg~i-1l-9_gl~cb_i-1l~_. __ 
"Illegal gaming machine" or 
"illegal machine" means a machine as defined in section 330 that: 
A. 
Is required to be licensed under this chapter, but is 
not so licensed; 
B. 
Is required to be licensed under chapter 14, but is not 
so licensed; or 
C. 
Is licensed under either ch9 pter 14 or this chapter, but 
is being operated in a manner that violates the license. 
"Illegal gaming machine" does not include those machines owned or 
leased 
by 
the 
Department 
of 
Administrative 
and 
Financial 
Services, Bureau of 
A.1coholi~everages and Lottery Operations 
and operated in accordance with this chapter. 
... 
10. 
Licensee. 
"Licensee" means a person licensed by the 
Chief of the State Police to operate a video gaming terminal. 
11. 
Net termin_~1 iJ!.~Q ... ~~ ____ 
"Ne.t.....J:._erminal income" means money 
inserted into a video gaming terminal minus credits paid out in 
~ 
12. 
Operate. 
"Operate" means to offer for use. 
13. 
Payback val\le. 
"Payback value" means 
the value of 
credits granted to players by a video gaming terminal compared to 
the 
value 
of 
money 
inserted into 
the 
terminal 
by 
players, 
calculated as a percentage on an annual basis. 
14. 
Person. 
"Person" 
means 
an 
individual, 
corporation, 
association or partnership. 
15. 
Video-s~i~q 
___ teXJPiDaL 
"Video gaming terminal" means a 
machine that, upon insertion of coin or currency, is available to 
play or simulate the play of a video game authorized by the Chief 
of the State Police, including, but not limited to, poker, keno, 
blackjack 
and 
line 
games 
using 
a 
video 
display 
and 
microprocessor, in which by chance the player may receive free 
games or credits that may be redeemed for cash. 
16. 
Vid~i;)IIling terminal 
mimufacturer. 
"Video 
gaming 
terminal manufacturer" means a person who assembles or produces 
video gaming terminals or associated equipment for sale or use in 
this State. 
17. 
Video 
qqmJn-Y-----terminal 
1{holesaler. 
"Video 
terminal 
wholesaler" 
means 
a 
person 
who 
sells video 
terminals or associated equipment for distribution in this 
gaming 
gaming 
State. 
§362. 
License required 
IU 
~.e..rson_iJl~UQt manufact1,J~e, sell. operate or place a video 
gaming terminal 
for 
use in this State unless 
the person is 
licensed to do so by the Chief of the State Police. 
A person may 
not place for use 
o~erate a video gaming terminal in this 
,.12 
State unless the machine is licensed by the Chief of the State 
Police. 
4R 
')0 
§363. 
Administration and ~~forcement 
The 
Chief 
of 
the 
State 
administer 
and 
enforce 
the 
specified in this chapter. 
Police 
and 
the 
director 
shall 
provisions 
of 
this 
chapter 
as 
§364. 
Powers and duties of Chief of State Police 
1. 
Powers. 
In addition to powers conferred by any other 
provision of law, the Chief of the State Police may: 
J4 
A. 
Regulate, supervise and exercise general control over 
the operation of video gaming terminals; 
B. 
Investigate the direct or indirect ownership or control 
of a video gaming terminal or associated equipment by any 
licensee; 
C. 
Adopt rules necessary to administer and enforce this 
chapter, 
including jointly with the 
Maine 
State Lottery 
Commission. 
Rules adopted pursuant to this paragraph are 
major substantive rules as defined in Title 5, chapter 375, 
subchapter 2-Al... 
D. 
In any investigation conducted under this chapter, issue 
subpoenas to compel 
the attendance of witnesses 
and the 
production of evidence relevant to any fact at issue; and 
E. 
Approve or disapprove terms and conditions of uniform 
location agreements. 
2. 
Duties. 
The Chief of the State Police shall: 
A. 
Investigate or cause to be investigated all complaints 
made to the State Police and all violations of this chapter 
or the rules adopted under this chapter; 
B. 
Adopt rules, which are major substantive rules pursuant 
to 
Title 
5, 
chapter 
375, 
subchapter 
2-A, 
to 
prevent 
undesirable 
conduct 
relating 
to 
the 
operation of 
video 
gaming terminals, including the following: 
(I) 
The practice of any fraud or deception upon a 
player of a video gaming terminal; 
(2) 
The 
pre~ence of 
a 
video 
gaming 
terminal 
on 
premi~that may be unsafe due to fire hazard or other 
such conditions; 
(3) 
The use of obscene advertising; 
(4) 
The solicitation on a public way of persons to 
play video gaming terminals; 
(5) 
The 
infiltration of 
organized 
crime 
into 
the 
operation of video gruning terminals; 
• 
(6) 
The presence of disorderly persons in a location 
where video gaming terminals are in use; and 
(7) 
The use of the word "casino" to describe any video 
gaming terminal licensed under this chapter or as the 
name or any part of the name of the licensed premises 
or of a portion of the premises where the video gaming 
terminal is located; and 
C. 
Direct the directo~t~isable any video gaming terminal 
if the Chief of the State Police has reason to believe that: 
(1) 
A person has illegally tampered with the terminal 
as described in section 394, subsection 2; 
(2) 
The 
funds 
from 
the 
terminal 
have 
not 
been 
distributed, deposited or allocated in accordance with 
section 383; 
(3) 
The 
terminal 
does 
not 
meet 
the 
licensure 
reguirements of this chapter; or 
(4) 
The licensee is guilty of criminal conduct. 
§J95. 
Powers and duties of director 
;~8 
1. 
Powers. 
In apdition to powers conferred by any other 
1() 
3(; 
4H 
')0 
provision of law, the director may: 
A. 
Propose to the State Liguor and Lottery Commission for 
adoption rules 
necessary 
to 
administer 
and enforce this 
chapter, 
including rules to be 
adopted jointly with the 
Chief 
of 
the 
State 
Police. 
These 
rules 
are 
major 
substantive 
rules 
pursuant 
to 
Title 
5, 
chapter 
375, 
subchapter 2-A; and 
B. 
Subject to approval of the State Liguor and Lottery 
Commission and to any applicable laws relating to public 
contracts, 
enter into 
a 
contract for performance of the 
director's duties under this chapter. 
All contracts must be 
awarded in accordance with rules adopted by the Department 
of Administrative and Financial Services pursuant to Title 
~ chapters 141 to 145 al].d Title 5, sections 1812 and 1813. 
A contract awarded or entered into by the director may not 
be~igned by 
the 
holder 
of 
the 
contract, 
except 
by 
specific approval of the commission. 
2. 
Duties. 
Tpe director shall: 
A. 
Contract to purchase or lease video lottery 
tE~rminals 
and place or cause to be placed video lottery terminals on 
premises licensed under this chapter: 
B. 
Develop, install and test a central computer system with 
continuous on-line polling to all licensed video 
gaming 
terminals 
to 
provide 
aUditing 
program 
information. 
The 
system may not limit participation to only one manufacturer 
of video gaming terminals by either the cost of implE!menting 
the necessary program modifications to communicate or an 
inability to communicate with the central computer system; 
C. 
Maintain and monitor the central computer system to 
ensure compliance with this chapter; 
D. 
Attempt to determine the cause of any video gaming 
terminal malfunction detected by the central computer system 
and notify the Chief of the State Police of any suspected 
tampering 
with 
a 
video 
gaming 
terminal 
or 
any 
other 
violation of this chapter or the rules adopted under this 
chapter; 
E. 
Cause the central computer system to disable 
a. video 
gaming terminal as directed by the Chief of the State Police 
in accordance with section 364; 
F. 
Collect 
funds 
due 
the State 
under 
section 
and 
deposit them in the Video Gaming Fund established in section 
384; 
G. 
Immediately notify the Chief of the State Police of the 
failure of any licensee to comply with section 383; 
H. 
Certify monthly to 
th~"---,T"-,r,-,e"-,a",-",-s-",u",r-"e,-"r~.><o,"",f~-",S,-"t,,,a~t,,-,e,,-,,,----,t,,",h,,-,i,,,-~----"M-,-,a",~",,' n...."e. 
State 
Lottery 
Commission 
and 
the 
Commissioner 
of 
Administrative and Financial Services a full and complete 
statement of all video gaming terminal 
revenue, 
credits 
disbursed 
by 
licensees, 
administrative 
expenses 
and 
the 
allocation of net terminal income for the preceding month; 
I. 
Submit by January 15th an annual report to the Governor 
and the joint standing committee of the Legislature having 
jurisdiction over gaming matters. 
The report must include 
information 
on 
video 
gaming 
terminal 
revenue, 
credits 
disbursed 
by 
licensees. 
administrative 
expenses 
and 
the 
allocation of net terminal income for the preceding year; 
J. 
Prepare and submit to the Commissioner of Administrative 
and Financial Services a budget; and 
K. 
Cooperate 
with 
the 
~hief of 
the 
State 
Police 
in 
implementing and enforcing the provisions of this chapter. 
§366. 
Applicability of chapter 14 
Except as 
~J;;~_lY 
.. _RrOyi<;le<:1 in this chapter, chapter 14 
does not apply to video gaming terminals. 
Section 335 relating 
to use of pr_oceed~plies to thl3 use of net terminal income by 
licensees under this chapter. 
SUBCHAPTER 2 
§371. 
License to operate 
1. 
Eligible enti_ti,e..s. 
The Chief of the State Police ma""y 
issue a license to operate video gaming terminals to a person who: 
A. 
Is e_ligible for a license to conduct games of chance 
pursuant_ to section 332; 
B. 
Is 
Revenue 
exempt 
fro~~Qeral ~~tion under 
the 
Internal 
Code, Section 501(c)(S), 501(c)(10) or 501(c)(l9); 
c. 
Owns or leases th~remises upon which the video gaming 
terminals will be located and uses those premises to fulfill 
the 
primary 
charitable 
or 
nonprofit 
purpose 
of 
the 
Qrganizati..o-..-n. 
If th..e __ ~mises are leased, the lease must 
run for a term longer than the license term. 
2. 
Qualifications for license. 
A person may be issued a 
\4 
license to operate a 
vide..o--------9Ql11ing 
terminal if the person is 
eligible for 
a 
license un<:1er 
subsection 1 
and has sufficient 
-)6 
financial assets to meet the financial obligations imposed 
b""y 
this chapter and a method acceptable to the Chief of the State 
Police for meeting those obligations, and the individual and each 
off icer, director or partner of the corporation, association or 
partnership: 
A. 
Has 
not 
been 
convicted 
in 
Maine 
or 
any 
other 
jurisdiction of a misdemeanor crime of domestic violence, 
within the meaning of IS United States Code, Section 921, 
Subsection (a), Paragraph (illl.. 
'-18 
B. 
Does not have a formal charging instrument pending in 
Maine or 
allY......-Q....th~..L....i..!!~_isdiction for a misdemeanor crime of 
domestic violence, within the meaning of IS United States 
Code, Section 921, Subsection (a), Paragraph (33); 
C. 
Has 
not 
been 
convicted 
in 
Maine 
or 
any 
other 
jurisdiction within the past 3 years of 3 or more crimes 
punishable by imprisonment for less than one year, if those 
convictions arose from different criminal episodes; 
D. 
Has not engaged wi thin the past 3 years in reckless or 
negligent conduct that is substantiated by information of 
record by a governmental entity; 
E. 
Is 
current 
in 
payment 
of all 
taxes, 
intere!st 
and 
penalties owed to the State or to a municipality, excluding 
items under formal dispute or appeal pursuant to applicable 
statutes or ordinances; 
F. 
Has not been involved in any criminal activity and has 
not been convicted of a crime punishable by one year or more 
of imprisonment in any jurisdiction unless at least 10 years 
have passed since satisfactory completion of the sentence or 
probation imposed by the court for the crime; 
G. 
Has not been convicted of a violation of this chapter or 
chapter 14 or of eguivalent laws in any other state; 
H. 
Has not been adjudicated within the past 3 years of 
having committed a juvenile offense involving conduct 
that~ 
if committed by an adult, would cause the Chief of the State 
Police to refuse to approve a license application under this 
section; 
1. 
Is not a fugitive from justice, a drug abuser, a drug 
addict, 
a 
drug-dependent 
person, 
an illegal alien or 
a 
person 
who 
was 
discharged 
from 
the United States 
Armed 
Forces under dishonorable conditions within 3 years prior to 
the date of application; 
J. 
Has completed the application form and complied with the 
reguirements of section 375; and 
K. 
Has not knowingly made a false statement of material 
fact to the Chief o[ the State Police in applyinq [or a 
license under this chapter or chapter 14. 
3. 
Local approval of application for license. 
The Chief of 
the State Police may not issue or renew a license to operate a 
video gaming terminal: 
A. 
Until the initial 
is 
first 
approved 
municipali ty in which 
a~ication for the license or 
by 
the 
municipal 
officers 
the applicant' s premises are 
renewal 
of 
the 
located 
or, if the premises are located in an unincorporated place, 
until 
the 
application 
is 
approved 
by 
the 
county 
co~nissioners of 
the 
county in which 
the unincorporated 
place is located; and 
B. 
Until 
the voters 
of 
the municipality 
applic-.£!t~premis-.es are located or, if the 
located in an unincorporated place, the voters 
in which the applicant' s premises are located 
the operation of video gaming terminals. 
in which 
the 
premises are 
of the county 
have approved 
4. 
Heari.ng process. 
The municipal officers or, in the case 
of 
an 
unincorporated place, 
the 
county 
co~nissioners of 
the 
county in which the unincorporated place is located may hold a 
public hearing for the consideration of the applications for new 
video gaming terminal licenses. 
The municipal officers or county 
commissioners may hold a public hearing for the consideration of 
requests for renewal of licenses . 
:26 
.12 
Hl 
...,A'-.!.. __ 
T""h""e 
ChieL9J---.tJ1e._S~t..ate Police shall pre.pare and supply 
license application forms. 
B. 
The municipal officers or the county commissioners shall 
provide, at the applicant' s pre.paid expe.nse, public notice 
of a hearing held under this section by causing a notice 
stating the time and place of hearing to appear at least 6 
consecutive days before the date of the he.aring in a daily 
newspaper having general circulation in the municipality or 
unincorporated place where the premises are located or 2 
consecutive weeks before the date of the hearing in a weekly 
newspaper having general circulation in the municipality or 
unincorporated place where the premises are located . 
C. 
In granting or denying an application, the municipal 
officers or 
the 
county commissioners 
shall indicate the 
reasons for their decision and provide a written statement 
of their reasons to the applicant. 
Denial of an initial 
application and refusal to renew a license. by the municipal 
officers is subject to appeal to the Chief of the State 
Police-,-
§J72. 
Placement and o~ershjp of terminals 
1. Number of 
te_~miItQls; 
location. 
No more than 5 video 
ggming terminals may be placed on the premises of a licensee. A 
terminal 
may 
not 
be 
placed in 
any 
location other 
than 
the 
premises of the licensee. 
A licensee mJ,lst own or control the 
premises 
on 
which 
a 
video 
gaming 
terminal 
is located. 
The 
terminal area must be designed to permit the licensee or an agent 
SO 
of the licensee to see and control the area at all times to 
ensure compliance with the provisions of this chapter. 
§373. 
Licensing of terminals 
1. 
License required. 
A video gaming terminal may not be 
placed for public use or operated in this State unless the 
terminal is licensed by the Chief of the State Police and owned 
or leased and placed in a licensed facility by the Bureau of 
Alcoholic Beverages and Lottery Operations. 
The terminal license 
must 
be 
prominently 
displayed 
on 
the 
terminal. 
Language 
describing the odds pf winning~he game and warning of the danger: 
of compulsive grunbling must also be prominently displayed on the 
terminal. 
2. 
Req].lirements 
for 
lice_n""""s-"'e'-".'------~T"_'o"'________"'b"'e'__~l~l=_" ""c-"e""n..."s'-'e"-'d""-L,_-'i'I,'------'v'--'l=_" d",-"e"""o 
gaming terminal: 
A. 
May offer only games permitted by the Chief of the State 
Police; 
B. 
May not have any means of manipulation that affect the 
random probabilities of winning a game; 
C. 
May not directly dispense coins, cash or tokens; 
D. 
Must have one or more mechanisms that accept coin or 
cash in the form of bills and that are designed to prevent a 
person from obtaining credits without paying; 
E. 
Must be designed to suspend operation until reset if a 
person attempts, by physical or other tampering, to obtain 
credits without paying; 
F. 
Must 
have nonresettable meters housed in 
a 
readily 
accessible locked terminal area that keep a permanent record 
of all cash inserted into the video gaming terminal, credits 
awarded by the terminal, credits played for video games and 
credits 
distributed 
by 
tickets 
made 
by 
the 
terminal's 
printer; 
G. 
Must be capable of printing a ticket voucher stating the 
value of the credits for the player at the end of play, the 
time of day in 24-hour format showing hours and minutes, the 
date, the terminal's serial number, the sequential number of 
the ticket voucher, and an encrypted validation number from 
which the validity of the credits may be determined; 
H. 
Must have accounting software that keeps an electronic 
record of information that includes, but is not limited to, 
total cash inserted into the video gaming terminal, total 
credits awarded by the terminaL total credits played for 
Page ll-LR0985(1) 
• 
may 
video games, total credits distributed by tickets made by 
the terminal's printer and the payback percentage of each 
video game; and 
I. 
Must-be linked to the central computer system developed 
under section 365 to provide auditing program information. 
3. 
Amount of pl~.Ll@"yback value. 
A video gaming terminal 
be played for a maximum of 
~5 in a single game. 
A video 
gaming terminal may not accept more than 
~20 at a time. 
The 
maximum prize awarded may not exceed the value of U,250. 
The 
payback value of each type of video game offered by each terminal 
must be at least 80
0b. 
4. 
Examinat;.AQg,_Q~r_Q.t9_t;.ypes. 
The Chief of the State 
Police and the Attorney General shall examine all prototypes of 
video gaming terminals and assoc_iated equipment for which a video 
gaming terminal manufacturer seeks a license as required in this 
chapter. 
The 
Chief 
of 
the 
State Police 
shall 
require 
the 
manufacturer seeking the examination and approval of the video 
gaming terminal or associated eg:uipment to pay the anticipated 
actual cost of 
t.h~_!;L~gJItillatiQP~efo(e the examination occurs. 
After the examination occurs, the Chief of the State Police shall 
refund overpayments or charge and collect amounts suff icient to 
reimburse the Chief of the State Police for underpayments of 
actual cost. 
The Chief of the State Police may contract for the 
examinations of video gaming terminals and associated equipment 
~R 
as required by this section. 
5. 
I llegal 
gamin--9--!!@-~.i""n""e""-!.._-",A",n,---=i",l~l"-,e"-,g~a-=I~""g-"a"-,m-,-,,i,-,n~g::l--2m!.!:a~c",h,-"i,-"n-"e"----,i,,-,,,-s 
subject 
to 
seizure 
and 
forfeiture 
to 
the State pursuant 
to 
sections 395 and 396. 
§374. 
Licensing of manufacturer or wholesaler 
.16 
1. 
Qualifi~tions. 
To 
be 
licensed 
as 
a 
video 
gaming 
terminal 
manufacturer 
or wholesaler, 
a 
person must 
meet 
the 
.18 
qualifications set forth in section 371, subsection 2. 
2. 
Li ... it_a,~i~9~QWDer_~h.-tp. 
A pi3-rtnership, 
corporation, 
person, individual partner or shareholder of more than 
5~0 of a 
1!2 
corporation or an iml1lediate family member of a person, individual 
partner or shareholder of more than 5% of a corporation may not 
have ownership interests in more than one distributor. 
For the 
purposes of this subsect.ion, "immediate family" means a spouse, 
child, parent, stepchild or stepparent. 
3. 
Preparation of list. 
The Chief of the State Police 
shall prepare a list of state-certified distributors of video 
SO 
gaming terminals. 
§315. 
Applications; investigation 
I. 
Form. 
An application for a license reguired under this 
chapter must be on a form provided by the Chief of the State 
Police. 
The 
application 
must 
be 
signed 
by 
the 
individual 
applicant or by a duly authorized officer of the partnership, 
corporation 
or 
association 
applying 
for 
the 
license. 
The 
application must contain, but is not limited to, the following 
information regarding the individual applicant and each officer, 
director, partner or owner of any interest in a partnership, 
corporation or association applying for a license: 
A. 
Full name; 
B. 
Full current address and addresses for the prior 5 years; 
C. 
A record of previous issuances of, refusals to issue and 
revocations of a license under this chapter; and 
D • 
Answe r s 
to 
the 
f,-"o0-.l"-,l~o",-w~i~n.."g:l--_-';Ig--"u'-Se,-,s2.-t;...±i-",o~n,-,s,-----_""p,,,o,-,s,-,e"-'d"--_-"icHn 
substantially the following form: 
ill "Is there a formal charging instrument now pending 
against you in this or any other jurisdiction for a 
crime that is punishable by imprisonment for one year 
or 
more 
or 
for 
a 
misdemeanor 
crime 
of 
domestic 
violence?" 
U) 
"Is there a formal charging instrument now pending 
against you in this or any other jurisdiction for a 
juvenile 
offense 
that 
involves 
conduct 
that, 
if 
committed 
by 
an 
adult, 
would 
be 
punishable 
by 
imprisonment for one year or more or would constitute a 
misdemeanor crime of domestic violence?" 
(3) "Have you ever been convicted of a crime described 
in subparagraph (1) 
or adjudicated as having committed 
a juvenile offense as described in subparagraph (~ 
(4) 
"Are you a fugitive from justice?" 
( 5) 
"Are 
:rou 
a 
drug 
abuser , 
drug 
addict 
or 
drug-dependent person?" 
(6) 
"Have you been discharged from the United States 
Armed Forces under dishonorable circumstances within 
the past 5 years?" 
(7) 
"Are you an illegal alien? " 
(8) 
"Have you been convicted wi thin the past 3 years 
of 3 or more crimes punishable by imprisonment of less 
than one year?" 
i9~aY~L.You been adjud~ within the past 3 years to 
have committed 3 or more juvenile offenses involving 
conduct 
that, 
if 
committed 
by 
an 
adult, 
would 
be 
punishable by imprisonment of less than one year?" 
( 10 ) 
"To your knowledge, have you engaged wi thin the 
past 3 years in reckless or negligent conduct that is 
substantiated by the records of a governmental entity?" 
2. 
S.i,~~t]~~~ __ ~!ii ____ <;Et~tJ,.ficat.i,on. 
Each applicant, by affixing 
application, 
certifies 
the 
the 
applicant's 
signature 
to 
the 
following: 
A. 
That 
documents 
the 
made 
statemepts 
a 
part 
made in the application and any 
of 
the application are 
true 
and 
correct; 
B. 
That 
the 
applicant 
understands 
that 
an 
affirmative 
answer to one or more of the questions in subsection 1, 
paragraph D is cause fQ£ refusal; and 
C. 
That the applicant understands that knowingly making any 
false statement in the application or any document made a 
part of the application is grounds for a refusal to issue a 
license or for revocation or suspension of a license. 
.12 
3. 
Consent to_:reyjJ!W 
rec.o~ds. At the request of the Chief 
of the State Police or the chief's dGsignee, the applicant shall 
-)4 
take whatever action is necessary to permit the Chief of the 
State 
Police 
to 
examine 
all 
accounts 
and 
records 
in 
the 
.10 
applicant's possession, under the applicant's control or under 
the control of 3rd parties but accessible by consent of the 
]8 
applicant and shall authorize all 3rd parties in possession or in 
control of those accounts or records to allow the Chief of the 
'fO 
State Police or a designee to examine the accounts and records as 
the Chief of the State Police determines necessary to ascertain: 
h~gthe~b.e inJ.QJ:maUon supplied on the qpplication or 
on any documents made a part of the application is true and 
correct; 
B. 
Whether each of the requirements of this section has 
been met; and 
C • 
Whe the r 
the 
app li c an t~-,m"-,-",e-,=e,-"te..>s"------,t""h...,e"------,r,-,e""g:"*-",u,"",i,-"r,-"e,,-,-m!!:e,,,-l •• l-,=t,,,,s,-------,,,f-,=Oo.=-r 
licensure under this ch.QP-teJ:.-,-
This reg:uirement includes 
tQ.l:L-L~ whatever action is necessary to 
permit the Chief of the State Police or a designee to have access 
to 
confidential 
records 
held 
by 
banks, 
the 
courts, 
law 
enforcement agencies and the military for the purposes stated in 
this subsection. 
4. 
Investigation~tional criminal history record check. 
Any 
individual 
apply~Ag for 
a 
license L 
any 
partner 
of 
a 
partnership or any officer, director or holder of any ojomership 
interest of a corporation or association applying for a license 
as 
a 
licensee, 
manuf;3.cturer 
or wholesaler must 
submit 
to 
a 
background 
invepti~a~ion by 
.th~hief of the State Police to 
verify 
the 
applicant's 
compliance 
with 
the 
reg:uirements 
of 
section 371, subsection 2. 
In order to determine the eligibility 
of an applicant for a 
licenS~',ll1d~~thi.S~haJ2.t.e.~e Chief ot: 
the State Police shall reg:uire the a-P£licant to furnish a full 
set of fingerprJnts to enabl.E;L_SL_.GrimJnal -.lLackground invesl;;igatio_n 
to be conducted. 
The Chief of the State Police shall 
su~nit the 
fingerprints 
to 
the 
Federal 
Bureau 
of 
Investigation 
for 
a 
national criminal history record check. 
5. 
Notification of ~~icip~l ofIice~s. 
An applicant for a 
license to operate a video gaming terminal must send a copy of 
the 
application 
to 
the 
officers 
of 
the 
municipality 
or 
unincorporated place in which the terminal will be operated. 
The 
applicant must certify in the application that the copy has been 
sent and must list the names and addresses of the persons to whom 
the copy was sent. 
The annual fee for 
a 
license 
issued under this chapter is as follows: 
A. 
A license for a 
vide~ming terminal manufacturer is a 
Level 1 license and the fee for a video gaming terminal 
manufacturer license is $3,500; 
B. 
A license for a 
vi!;l~ming 
Level 1 license and the fee for 
terminal 
a video 
wholesaler is a 
gaming terminal 
C. 
A li~ense to o-p-erate a vid~aming terminq.l is a Level 
license and the fee for a video gaming terminal operator 
license is $500 per terminal. 
In addition to the annual license fee, the Chief of the State 
Police may charge a one time application fee for a license issued 
under this chapter in an amount equal to the actual cost of 
processing 
the 
application 
and 
performing 
any 
background 
investigations. 
All fees collected pursuant to this section must 
be deposited directly into the Video Gaming Fund established in 
section 384. 
2. 
Term of license. 
All licenses issued by the Chief of 
the State Police under this chapter are effective for one year 
and are renewable annually, unless sooner revoked pursuant to 
section 377. 
3. 
Nontransferable. 
A license issued under this chapter is 
not transferable or assignable. 
4. 
Levels 
of 
license: 
prohibition 
against 
multiple 
licenses. 
A 
person 
licensed 
as 
a 
video 
gaming 
terminal 
manufacturer or wholesaler 
under 
section 
has 
a Levell 
license. 
A licensee under section 371 has a Level 2 license. 
A 
person may not hold more than one level of license. 
§377. 
Actions relating to licenses 
1. 
Refq~~JLto ren~w l~~ense. 
The Chief of the State Poli~~ 
may refuse to renew a license issued under this chapter for just 
cause after a hearing in accordance with the Maine Administrative 
Procedure Act. 
2. 
Suspension of license by Chief of State Police. 
The 
Chief of the State Police may suspend a license issued under this 
chapter for just cause for a period of up to 180 days. 
The 
license may be suspended under this subsection only if the Chief 
of the State Police receives a written statement made under oath 
from a 
law enforcement officer establishing probable cause for 
the suspension. 
The Chief of the State Police shall immediately 
notify the licensee in writing of the suspension and the date the 
JCl 
suspension is to take effect. 
If the licensee wishes to have a 
hearing, the licensee must notify the District Court in writing 
within 20 days of the date of the suspension. 
If a hearing is 
reguested, the license remains suspended pending the outcome of 
the hearing. 
If the Chief of the State Police suspends a license 
under this subsection, the licensee is entitled to a refund, on a 
l2..U2- rata basis, of the license fee for the remainder of the 
license period. 
4(' 
3. 
Su~~n~o.g. or revocgtion of license by District Court. 
The District Court may suspend or revoke a license issued under 
this chapter for just cau~ 
4. 
Just cause. 
As used in this section, "just cause'" means: 
A. 
Making or causing to be 
made 
a 
false statement of 
material fact in obtil.ni~ license under this chapter or 
in connection with service rendered within the scope of the 
license issued; 
B. 
Viola_ting or having an agent who violated any provision 
of this chapter or any rule adopted under this chapte:~ 
C. 
Becoming ineligible to hold that license. 
5. 
Ineliqil>J,..l,itY-Rerj,od follow:i1J,gJefusal to issue or rene~ 
license or revocation of license. 
A person may not apply to the 
Chief of the Sta~lice.Lor a_~_lJcense under this chap1:er less 
than 2 years after the Chief of the State Police refused to issue 
or renew a license und~-.th.is chapter or less than 2 years after 
the District Court revoked a license issued to the person under 
this chapter. 
SUBCHAPTER 3 
VIDEO GAMING TERMINAL OPERATION; ALLOCATION OF FUNDS 
§381. 
Limits on video gaming terminal use 
1. 
Hours of play. 
A licensee may not permit a person to 
P.lay a video gaming termin_al at any t,ime other than a time when 
the sale of liquor is permissible under Title 28-A, section 4, 
subsection 1. 
If an operator licensed under this chapt.er does 
not have a license to sell liquor, the hours of play are limited 
to the hours when the sale of liquor is permissible under Title 
28-A, section 4, subsection 1. 
2. 
Age of player. 
A licensee may not permit a person under 
years of age to playa video gaming terminal. 
3. 
T~an.Jl-.mop.~~_lJmjts imp.9Ji..4;Ld by licensee. 
A licensee 
may impose a daily limit on the amount of time or money spent by 
a person playing the video gaming terminals on the licensee' s 
premises. 
4. 
Play by 
memb~ and guests. 
Only 
members of the licensee organization or guests 
may playa video gaming terminal on the premises 
persons 
who 
are 
of those members 
of the licensee. 
5. 
Suspension of liquor license. 
If at any time the liquor 
license of an operator licensed by this chapter is suspended or 
revoked, 
the 
license 
to 
operate 
video 
lottery terminals 
is 
suspended until the liquor license is reinstated. 
6. 
Qm;t~~t._ion QL vig~o~tt.~u;y_t~pninals separate 
from 
conduct of beano. 
If an operator licensed under this chapter is 
9.1so licen.sed to conduct beano, the op_eration of beano must be 
kept physically separate from the operation of video lottery 
terminals. 
§382. 
Payment of credits by licensee 
A licensee shall redeem credits for players who earn credits 
on 
terminals 
located 
on 
the 
premises 
of 
that 
licensee 
1n 
accordance with rules adopted jointly by the Chief of the State 
Police 
and 
th~irector. 
If 
a 
person 
receives 
a 
credit 
redeemable for more than the minimum amount required by federal 
law to be reported to the United States Internal Revenue Service, 
the licensee shall require the person to complete a form listing 
the person's 
name~ddress and 
social security number. 
The 
licensee shall promptly 
send the 
form 
to 
the 
Department 
of 
Administrative and Financial Services, Bureau of Revenue Services. 
§383. 
Allocation of funds 
1. 
Allocation of net terminal income. 
Net terminal income 
must be allocated as follows. 
J6 
.18 
A. 
Thirty-fo1,lr percent must be sent to the Treasurer of 
State for deposit in the Video Gaming Fund established 1n 
section 384. 
B. 
One percent must be sent to the Treasurer of State for 
~~posi~~ __ tPe 
Compulsive 
G9ffibling 
Rehabilitation 
Funq 
established in Title 22, section l700-A. 
C. 
Sixty-five percent must be paid to the licensee. 
If a 
licens.~~l;l~ ___ Qbtained use of a video gaming terminal from a 
state-certified distr ibutor, the distributor must be paid, 
pursuant 
to 
an 
agreement 
between 
the 
licensee 
and 
the 
distributor, out of the funds received by the licensee under 
this paragraph. 
2. 
Deposit of state funds. 
Each licensee shall maintain a 
bank account accessible by- the State for the deposit of funds 
owed to the State under this chapter. 
The licensee shall deposit 
in that account tpe State's share of the net terminal income 
attributable to video gaming terminals 
owned or leased. 
The 
licensee shall de'posit in that account the State's share of net 
terminal income at.tributable to terminals. 
If the day on which 
funds must be depositetd is not a business day, the funds must be 
deposited on the ne~t busine~~~9~fter that date. 
Page l8-LR0985(1) 
3. 
Use 
Q.f-----.St~~_e_sh~e. 
At the end of each fiscal year 
beginning after June 
30, 
2007, 
the Treasurer of State shall 
transfer to the Local Government Fund created in Title 30-A, 
section 5681 an amount equal to 50q,0 of the state sharE! of net 
terminal income derived from video gaming terminals durin9..--that 
fiscal year, net of state administrative costs. 
Not later than 
days after the end of each fiscal year, the Treasurer of State 
shall issue to municipalities that host an organization licensed 
to operate video lottery terminals all unexpended amounts of the 
state share, 
in 
proporti~to the 
all}Punt 
generated by video 
lottery terminals operated in that municipality. 
4. 
Failure to deposit funds. 
A licensee who 
'W"illfully 
fails to comply with this section commits a Class C crime. 
The 
license of that person may be revoked by the District Court, and 
the video gaming terminals to which the undeposited funds are 
attributable may be disabled by the director at the direction of 
the Chief of the State Police. 
5. 
Late P~~UltS. 
All payments not remi ttec1 when due must 
be paid together with a penalty assessment on the unpaid balance 
at a rate of 1.5% per month. 
§384. 
Video Gaming Fund 
1. 
Fund created. 
There is established the Video Gaming 
Fund. 
The fund consists of all revenue payable to the State 
pursuant to sections 376 and 383 and all other money credited or 
transferred to the fund from any other fund or source pursuant to 
law. 
2. 
Use of money. 
The money in the Video Gaming Fund may be 
used only: 
A. 
For expenses incurred in implementing or enforcing this 
chapter that do not exceed 10% of the fund; and 
B. 
For payment to the Local Government Fund pursuant to 
section 383. 
]::NFORC"~ AND PENALTIES 
§39l. 
Report~ecor~~ 
1. 
Rep9r~_records. 
The Chief of the State Police or the 
director shall require from any licensed video gaming terminal, 
manufacturer, wholesaler or licensee whatever records and reports 
the 
chief 
or 
the 
director 
considers 
necessary 
for 
the 
administration and enforcement of this chapter. 
2. 
Location. 
A license holder shall maintain all records 
reguired by this chapter or by rules adopted under this chapter 
at the primary business office within this State of the license 
holder or on the premises where the video gaming terminal is 
operated. 
In the case of a video gaming terminal manufacturer or 
wholesaler, 
the 
records 
must 
be 
maintained 
at 
the 
primary 
!:l 
business office of the manufacturer or wholesaler. 
The primary 
business office must be designated by the license holder in the 
license application. 
All records must be open to inspection by 
the Chief of the State Police, the director or the designee of 
either of them, and a license holder may not refuse the Chief of 
the State Police, the dire~tor or __ 
~he d~~i9nee of either of them 
the right to inspect or audit the records. 
Refusal to permit 
inspection or audit of the records is not a 
crime under this 
chapter but does constitute grounds for revocation of the license. 
§392. 
Access to premises. equipment. records 
A person holding a license under this chapter shall permit 
the Chief of the State Police or the chief's designee to inspect 
any eguipment, prizes, records or items and materials used or to 
be 
used 
in 
the 
operation 
of 
any 
video 
gaming 
terminal 
manufactured, owned or operated by that person. 
A person holding 
a 
license under this chapter shall consent in writing to the 
examination of all accounts, 
bank accounts and records in the 
license holder's possession or under the license holder's control 
2[3 
and shall authorize all 3rd parties in possession or in control 
of those accounts or records to allow the Chief of the State 
)0 
Police 
or 
the chief's designee 
to 
examine 
the 
accounts 
and 
records as the chief determines necessary. 
]2 
§393. 
Contempt 
If a witness in a case involving a violation of this chapter 
refuses to obey a 
subpoena issued by the Chief of the State 
Police or to give any evidence relevant to proper inguiry by the 
.) 8 
chief, the Attorney General may peti tion the Superior Court in 
the county where the refusal occurred to find the witness in 
contempt. 
The Attorney General shall cause to be served on the 
witness an order reguiring that witness to appear before the 
'12 
Superior Court to show cause why that witness should not be 
adjudged in contempt. 
The court shall, in a summary manner, hear 
the evidence and, if it is such as to warrant the court to do so, 
')0 
punish the witness in the same manner and to the same 
for 
contempt 
committed 
before 
the 
Superior 
Court 
reference to the process of the Superior Court. 
§394. 
Violations 
extent as 
or 
with 
1. 
Crimes by licensee. 
A licensee who negligently performs 
any of the following acts commits a Class D crime: 
A. 
Permitting a person under 21 years of age to playa 
video gaming terminal licensed pursuant to this chapter; 
B. 
Permitting a person to 
Ql""a,z.y_-"a'---"-v--"i'-'d...,e"'o"'----_g'='-"'a"-'m'-"i~n"'-'g:l__-t""-e""--".r~m'-"i'"'n~a"'-""I 
licensed pursuant to this chapter at a time 
otheJ~ than a 
time when the sale of liquor is permissible under Title 
28-A, section 4, subsection 1; 
C. 
Extending credit to a person in order for the person to 
playa video gaming terminal: 
D. 
Permitting a person to use a credit card as a method of 
payment for playing a video gaming terminal; and 
E. 
Permitting a visibly intoxicated person to play a video 
gaming terminal. 
2. 
Class C crimes by any person. 
A person who negligently 
performs any of the following acts commits a Class C crim~~: 
A. 
Tampering with a video gaming terminal with intent to 
interfere with the proper operation of that terminalt 
B. 
Manipulating or attempting 
payoff or operation of a video 
tampering or any other means; 
to manipulate the 
outC_QID~L 
gaming terminal by physical 
C. 
Manufacturing, 
distributing, 
selling, 
operating 
or 
placing 
a 
video 
gaming 
terminal 
for 
use 
in this State 
without a license or manufacturing, distributing, selling, 
operating or placing an illegal terminal for use in this 
State; and 
D. 
Placing for public use or operating an unlicensed video 
gaming terminal in this State. 
3. 
Class D crimes by any person. 
A person who violates any 
provision of this chapter or any rule adopted under this chapter 
for which a specific penalty is not provided commits a Class D 
crime. 
§395. 
Seizure and forfeiture of illegal gaming machines 
1. 
Forfeiture. 
An illegal gaming machine I 
including any 
monetary contents and any funds that have passed through the 
machine since the commission of the illegal act, is subject to 
forfeiture to the State. 
.. 
2. 
Court jurisdicti9n. 
An illegal gaming machine and any 
monetary contents may be declared forfeited by any court that has 
jurisdiction over the illegal 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 
~erritorial 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. 
,10 
')0 
_3_. __ P~Qc~d~1".~. __ 
FQ_rfe-.i_tures 
uncler 
this 
section must 
be 
accomplished by the following procedure. 
A. 
A district atto.rn~Y 
___ 9L_the-.At_torney General may petition 
the Superior Court in the name of the State in the nature of 
a proceeding in rem to order forfeiture of an illegal gaming 
machine 
and any monetary contents. 
The petition must be 
filed in the court havi~ jurisdiction over the property. 
B. 
The proceediI19-is an in rem civil action, 
State has the burden of proving all material 
preponderance of the evidence. 
in which the 
facts by a 
C. 
The court shall order the State to give notice of the 
pendency 
of 
the 
action 
and 
the 
right 
to 
be 
heard 
by 
certified or registered mail or hand delivery by a deputy 
sheriff to any person who appears to have an interest in the 
illegal machine 
and any monetary contents. 
Receipt by a 
person then licepseg~~~erate a motor vehicle in the State 
is presumed when notice is mailed to the last known address 
of thaL.-.person on file with the Department of the Secretary 
of State, Bureau of Motor Vehicles. 
D. 
The court shall PI:..QDlptly, 
but not less than 2 weeks 
after notice, hold a hearing on the petition under paragraph 
A after an answer is filed by a person served with notice 
under paragraph C. 
At the hearing, the court shall hear 
evidence and make findings of fact and enter conclusions of 
law. 
E. 
Based on the findings and conclusions, the court shall 
issue a final order from which the parties have a right of 
appeal. 
The fin~rder must provide for disposition of the 
illegal gaming machine 
and any monetary contents by the 
State. 
Any 
revenue generated by the disposition of the 
illegal machine 
and anY--JIlonetary contents of the mach,ine 
must 
be 
used 
to 
pay 
the 
reasonable 
expenses 
of 
the 
fQrfeiture 
proceedings, 
seizure, 
storage, 
maintenance 
of 
custody, advertising and notice. 
The balance, if any, must 
be depQsited in the General Fund. 
4. 
Record;;;~ 
Any 
law enforcement officer, 
depart.ment or 
agency 
having 
custody 
of 
an 
illegal 
gaming 
machine 
or 
any 
monetary 
content~~p illegal 
gaming 
machine, 
or 
having 
disposed of the illegal gaming machine 
or any monetary contents, 
shall keep and maintain dur ing the pendency of the action full 
and complete records in accordance with this subsection. 
Upon 
issuance by the court of a final order ordering the disposition, 
destruction or return of the illegal machine or the monetary 
contents, the officer, department or agency shall transmit a copy 
of those records to the Department of Public Safety for inclusion 
into a centralized record. 
A. 
The records must show: 
( 1) 
From whom the illegal machine 
and any monetary 
contents were received; 
(2) 
Under what authority the illegal machine and any 
monetary contents are held, received or disposed~ 
(3) 
To 
whom_tJ)~illegal machine 
and 
any 
monetary 
contents are delivered; 
(4) 
The date and m_apner of destruction or disposi tion 
of the illegal machine and any monetary contents. and 
(5) 
The exact kinds, quanti ties and forms of illegal 
gaming machines and the exact amount of any monetary 
contents of any machine held in custody or disposed of. 
B. 
The records must be open to inspections by all federal 
and state officers authorized by the laws of the United 
States, 
a state or territory of the United States or 
a 
foreign nation to investigate or prosecute gambling laws. 
C. 
The 
Department 
of 
Public 
Safety 
shall 
maintain 
a 
centralized record of illegal machines seized. 
At least 
quarterly, 
the 
de~artment shall provide 
a 
report of the 
disposi tion of p~erty previously held by the depart_ment to 
the Commissioner of Administrative and Financial Services 
and the le_gislative Office of Fiscal and Program Review. 
These records must include an estimate of the fair market 
value of items seized. 
5. 
Report to court. 
PersQ11s making final disposition or 
destruction of an illegal gaming machine or its monetary contents 
under court order shall report, 
under oath, to the court the 
exact circumstances of the destruction or disposition. 
')0 
6. 
Seizure. 
An illegal gaming machine 
together with any 
monetary contents is contraband and may be seized by any law 
enforcement officer pursuant to subsection 7 or 8. 
1. 
Process for seizure. 
At the request of the State ex 
parte, 
the court may 
issue any preliminary order or process 
necessary to seize or sec~the property for which forfeiture is 
sought and provide for its custody. 
A. 
Process for seizure of the property may issue only upon 
a 
showing of probable cause. 
The application for process 
for seizure of the property and the issuance, execution and 
return of the process are subject to the provisions of 
applicable state law. 
B. 
Any property subject to forfeiture under this section 
may be seized upon process. 
8. 
Seizure without process. 
Seizure without process may be 
made when seizure is incident to a legal search or inspection if 
the law enforcement officer has probable cause to believe the 
property seized is an illegal gaming machine. 
§396. 
Criminal forfeiture 
1. 
Forfeiture 
upon 
conviction of violation. 
A person 
convicted of a violation of this chapter forfeits to the State 
?8 
all rights, privileges, interests and claims to property that is 
subject to forfeiture pursuant to section 395. 
2. 
Proceeding 
by 
indictment. 
Property 
subject 
to 
forfeiture that is not yet the subject of a final order pursuant 
to 
section 
may 
be 
proceeded 
against 
by 
indictment 
or 
superseding indictment of a grand jury in any related criminal 
proceeding in which one or more persons with an interest in the 
~roperty have 
been 
simultaneously 
indicted 
for 
one 
or 
more 
violations of this chapter. 
At any time prior to triaL the 
\ 8 
State, with the consent of the court and any defendant with an 
interest 
~n 
the 
property, 
may 
file 
an 
ancillary 
charging 
instrument or information alleging that that property is subject 
to 
cr iminal 
forfeiture. 
Upon 
commencement 
of 
a 
criminal 
forfeiture by indictment or information of any property that may 
be the subject of any pending civil action commenced pursuant to 
section 395, 
the civil action must be immediately stayed and 
subrogated to the criminal forfeiture action. 
Discovery in the 
criminal 
action must 
be 
as 
provided 
by 
the 
Maine 
Rules 
of 
Criminal Procedure. 
3. 
S~iz'qre _~pon findinCL.QL.RX-Qbable cause. Property subject 
'10 
to forfeiture that has not already been seized but has been 
indicted by a grand jury pursuant to this 
ordered seized based upon the grand jury's 
cause pursuant to section 395. 
section may also be 
finding of probable 
4. 
Trial against propert,y. Trial against property charged 
by indictment or information may be by jury and must be held in a 
single proceeding together with the trial of the related criminal 
violation. 
Forfeiture of the property must be proved by the 
State by a preponderance of the evidence. 
The court, in its 
discretion, may allow any defendant with an interest in ~~ty 
indicted pursuant to this section to waive the right to trial by 
jury as against the property while preserving the right to trial 
by jury of any crime alleged. 
At trial by jury, the court, upon 
motion of a defendant or the State, may separate the trial of the 
matter against the defendant from the trial of the matter against 
the 
property 
subject 
to 
criminal 
forfeiture. 
If 
the 
court 
bifurcates the jury trial, the court shall first instruct and 
submit 
to the 
jury the 
issue of the guilt or 
innocence of 
defendants to be determined by proof beyond a reasonable doubt 
and shall restrict argument of counsel to those issues. 
After a 
verdict upon the guilt or innocence of all defendants, the court 
shall instruct and submit to the jury the issue of the forfeiture 
of the property to be determined by proof by a preponderance of 
the evidence and the court shall restrict argument to those 
issues. 
A special verdict must be returned as to the e}:tent of 
the interest in property subject to forfeiture, if any. 
5. 
Person interested in forfeited property. 
A person not 
charged in the 
indictment may not 
intervene in the 
criminal 
action. 
Following 
the entry of 
a 
verdict of forfeiture 
of 
property pursuant to this section or the entry of a gui1 ty p1ea 
.3 2 
in open court on the record, 
the State shall provide written 
notice of its intent to dispose of the property to any person 
known to have alleged an interest in the property. 
The notice 
may be by certified, return receipt mail or as otherwise ordered 
by the court. 
Receipt by a person then licensed to operate a 
motor vehicle in the State is presumed when notice is mailed to 
the last known address of that person on file with the Department 
of the Secretary of State, Bureau of Motor Vehicles. 
A person 
other 
than 
the 
defendant asserting 
a 
legal 
interest in 
the 
property within 30 days of the date of receipt of the notice may 
petition the court for a hearing to adjudicate the validity of 
any alleged interest in the property. 
The hearing must be held 
before the court without jury. 
The request for the hearing must 
be signed by the petitioner under penalty of perjury and must 
state the nature and extent of the petitioner's right, title or 
jnterest in the 
propertYL--~~ime and circumstances of the 
petitioner's acquisition of the right, title or interest in the 
property, any additional facts sUl?Porting the petitioner':5 claim 
and the relief sought. 
Upon the filing of any petition for 
hearing, 
the 
court 
shall 
schedule 
the 
hearing 
as 
soon 
as 
practicable, 
but in no 
event later than 
months after the 
Qetition is filed or after 
the 
sentencing of 
any defendant 
convicted upon the same indictment. 
The court shall issue or 
amend 
a 
final 
order 
of 
forfeiture 
in 
accordance 
with 
its 
determination 
il~~ter the hearing, the court determines that 
the petitioner has established by a preponderance of the evidence 
that: 
A. 
ThiL-P..e_titioner has a legal right, title or interest in 
the property and the right, title or interest renders the 
order of forfeiture invalid in whole or in part because the 
right, title or interest was vested in the petitioner rather 
than any defendant or was superior to any right, title or 
interesL~t.b~~~..Q,l.J,!~ion of any __ Q..e..I..endant at the time of 
lG 
the commission of the acts that gave rise to the forfeiture 
of the property under this section; and 
B. 
The p_e...titioner is a bona fide ---l211rchaser for value of the 
right, title or interest in the property and was at the time 
of purchase reasonably without cause to believe that the 
property was subject to 
forfeiture under this section. 
6. Title 
t2.._p-~~rtY-.fo.Llowing forfeiture. 
Following the 
entry of a verdict of forfeiture of property pursuant to this 
section or the entry of 
a guilty plea in open court on the 
record, the State has clear title to property that is the subject 
2H 
of the indictment or information and order of forfeiture and may 
order all or a portion of the property forfeited to the State to 
JO 
be disposed of pursuant to section 395. 
§391. 
Payment to Attorney General 
\4 
As provided in Titl~ section 203, the Bureau of the State 
Police shall pay the Attorney General from the Video Gaming Fund 
for legal services provided pursuant to this chapter. 
A video gaming terminal 
may 
not be operated under this 
chapter before April 1, 2004. 
§399. 
Rules 
Rules adop~ursuant to this chapter are major substantive 
rules pursuant to Title 5, chapter 375, subchapter 2 A. 
Sec. 9. 22 MRS A c. 276 is enacted to read: 
CHAPTER 276 
COMPULSIVE GAMBLER REHABILITATION 
§1700-A. 
Compulsive Gambler Rehabilitation Fund 
1. 
Creation of f~. The Compulsive Gambler Rehabilitation 
U 
Fund, referred to in this section as "the fund," is established 
as 
a 
nonlapsing 
fund 
to 
provide 
rehabilitation services 
to 
persons who 
are compulsive gamblers and are determined to be 
eligible according to 
rules 
adopted by 
the 
department 
under 
subsection 2. 
2. 
Administration. 
The 
department shall administer 
the 
fund through the Office of Substance Abuse and shall ado~les 
as necessary to administer the fund and to determine the criteria 
for 
eligible 
recipients. 
Rules 
adopted 
pursuant 
to 
this 
subsection are routine technical rules as defined in Title 5, 
chapter 375, subchapter 2-A. 
3. 
Funds. 
In addition to funds deposited pursuant to Title 
8, 
section 383, 
the fund may receive money from 
any source, 
including grants, gifts, beguests and donations. 
Sec. 10. 28-A MRSA §807 is enacted to read: 
§807. 
Notice to Chief of State Police 
The commission shall notify the Chief of the State Police of 
the suspension or revocation of any license under this chapter. 
The commission shall also notify the Chief of the State Police of 
any investigation of a violation of any provision of this Title. 
Sec. 11. 28-A MRSA §1054, sub-§11, ~C is enacted to read: 
C. 
A municipality may not combine a permit to oI2,erate 
a 
video gaming terminaL as defined in Title 17, section 361, 
with any other permit. 
The fee for a permit to operate a 
video gaming terminal may not be higher than the fee for any 
other 
special 
entertainment 
penni t 
issued 
by 
the 
municipality. 
Sec. 
12. 
Appropriations 
and 
allocations. 
The 
following 
appropriations and allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES. DEPARTMENT OF 
Nonprofit Gaming 
.. 
Initiative: 
Appropriates funds for one Clerk III position, one 
Clerk IV position, the costs of leasing video gaming terminals, 
the costs of providing a computerized monitoring system and other 
operational costs. 
General Fund 
Positions - Legislative Count 
Personal Services 
All Other 
General Fund Total 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPAR"rMENT OF 
DEPARTMENT "l"OTALS 
GENERAL FUND 
DEPARTMENT "l"OTAL -
ALL FUNDS 
AGRICULTURE, FOOD AND RURAL 
RESOURCES, DEPARTMENT OF 
Harness Racing Commission 
0320 
2004-05 
2005-06 
(0.000) 
(2.000) 
$0 
$81,518 
2,668,750 
$0 
$2,750,268 
2004-05 
2005-06 
$0 
$2,750,268 
$0 
$2,750,268 
Initiative: 
revenues. 
Deallocates funds to reflect a 
loss of dedicated 
(~ 8 
.HI 
Other Special Revenue Funds 
All Other 
Other Special Revenue Funds Total 
AGRICULTURE, FOOD AND RURAL 
RESOURCES, DEPARTMENT OF 
DEPARTMENT "l"OTALS 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT "l"OTAL -
ALL FUNDS 
ATTORNEY GENERAL, DEPARTMENT OF THE 
Administration - Attorney General 
0310 
2004-05 
$0 
$0 
2004-05 
$0 
$0 
2005-06 
($37,014) 
($37,014) 
2005-06 
($37,014) 
($37,014) 
Initiative: 
Provides funds 
for 
an Assistant Attorney General 
position 
to 
assist 
in 
rulemaking, 
forfeitures, 
license 
application denial appeals and other required legal services. 
General Fund 
Positions - Legislative Count 
Personal Services 
All Other 
General Fund Total 
A'l'"l"ORNEY GENERAL, DEPARTMENT OF THE 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL -
ALL FUNDS 
HEALTH AND HUMAN SERVICES, 
DEPARTMENT OF 
Office of Substance Abuse 
0679 
2004-05 
2005-06 
(0.000) 
(1.000) 
$0 
$62,234 
8,664 
$0 
$70,898 
2004-05 
2005-06 
$0 
$70,898 
------
$0 
$70,898 
Initiative: 
Allocates funds for the newly established Compulsive 
Gambler Rehabilitation Fund. 
Other Special Revenue Funds 
All Other 
Other Special Revenue Funds Total 
HEALTH AND HUMAN SERVICES, 
DEPARTMENT OF 
DEPARTMENT TOTALS 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL -
ALL FUNDS 
PUBLIC SAFETY, DEPARTMENT OF 
.18 
State Police -
Nonprofit Gaming Enforcement 
2004-05 
$0 
$0 
2004-05 
$0 
$0 
2005-06 
$96,390 
$96,390 
2005-06 
$96,390 
$96,390 
Ini tiative: 
Appropriates funds for one Sergeant position 
portion of the operating costs necessary to enforce the 
requirements of nonprofit video gaming. 
and a 
legal 
General Fund 
Positions - Legislative Count 
Personal Services 
All Other 
General Fund Total 
2004-05 
(0.000) 
$0 
o 
$0 
2005-06 
(1.000) 
$99,416 
68,236 
$167,652 
State Police - Nonprofit Gaming Enforcement 
Initiative: 
Allocates funds for one Detective position, 3 Public 
Safety Inspector I positions, one Clerk Typist III position, one 
Clerk Typist II position and a portion of the operating costs 
necessary to enforce the legal requirements of nonprofit video 
gaming. 
Other Special Revenue Funds 
Positions - Legislative Count 
Personal Services 
All Other 
Other Special Revenue Funds Total 
PUBLIC SAFETY, DEPARTMENT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
OTHER SPECIAL REVENUE FUNDS 
DEPARTMENT TOTAL -
ALL FUNDS 
TREASURER OF STATE, OFFICE OF 
Nonprofit Gaming - Municipal Distribution 
2004-05 
(0.000) 
$0 
o 
$0 
2004-05 
$0 
o 
$0 
2005-06 
(6.000) 
$383,524 
45,442 
$428,966 
2005-06 
$167,652 
428,966 
$596,618 
Initiative: 
Allocates funds 
for the distribution of funds to 
those municipalities who are hosts to licensed nonprofit video 
JO 
gaming operators. 
lH 
Other Special Revenue Funds 
All Other 
Other Special Revenue Funds Total 
State - Municipal Revenue Sharing 
0020 
2004-05 
$0 
$0 
2005-06 
$1,930,349 
$1, 930,349 
Initiative: 
Allocates funds to reflect the distribution of funds 
'±o 
from the Video Gaming Fund. 
'16 
Other Special Revenue Funds 
All Other 
Other Special Revenue Funds Total 
TREASURER OF STATE, OFFICE OF 
DEPARTMENT TOTALS 
2004-05 
$0 
$0 
2004-05 
2005-06 
$1, 930,349 
$1,930,349 
2005-06 
OTHER SPECIAL REVENUE FUNDS 
$0 
$~J, 860,698 
DEPAR"l"MERT TOTAL -
ALL FUNDS 
$0 
$3,860,698 
SECTION TOTALS 
2004-05 
2005-06 
GENERAL FUND 
$0 
$2,988,818 
OTHER SPECIAL REVENUE FUNDS 
4,349,040 
SECTION TOTAL -
ALL FUNDS 
$0 
$7,337,858 
SUMMARY 
This bill allows operation of video gaming terminals by 
nonprofit organizations that are eligible for games of chance 
licenses and that are exempt from federal tax under the Internal 
Revenue Code, Section 501(c)(8), 501(c)(10) or 501(c)(19). 
These 
sections of the tax code refer to fraternal benefit societies, 
domestic 
fraternal 
societies 
and 
associations 
and 
veterans' 
organizations. 
Organizations that currently have licenses for 
electronic video machines but do not qualify under one of those 
code sections may apply for an initial license while they seek 
the required federal tax status. 
The organization applying for 
the license must own or lease the premises on which the terminals 
will be placed and must use the premises for its charitable or 
nonprofit purpose. 
Video gaming terminals operated by organizations licensed 
under this bill must be owned or leased by the Department of 
Administrative 
and 
Financial 
Services, 
Bureau 
of 
Alcoholic 
Beverages 
and 
Lottery 
Operations. 
Video 
gaming 
terminal 
manufacturers, wholesalers and operators must be licensed by the 
Chief of the State Police, following background investigations of 
the applicants and their major business partners. 
Local approval 
is required for a license to operate video gaming terminals and 
is also required for renewal of a license to operate video gaming 
terminals, and municipal decisions are subject to appeal to the 
Chief 
of 
the 
State 
Police 
in 
accordance 
wi th 
thE~ 
Maine 
Administrative Procedure Act. 
The license specifies the number of video gaming terminals 
allowed on the premises, 
and the maximum number of terminals 
allowed is 5 per licensee. 
Terminals must be licensed by the 
Chief of the State Police and must be connected to a computer 
system operated by 
the 
Director of 
the 
Bureau 
of 
Alcoholic 
Beverages 
and 
Lottery 
Operations 
within 
the 
Department 
of 
Administrative and Financial Services. 
By the end of as-year 
phase-in period, 
this computer 
system must provide continuous 
• 
.. 
2G 
on-line monitoring of video gaming terminal activity. 
Persons 
under 21 years of age are not allowed to use the machines. 
The 
bill specifies 
that if 
an 
organization's 
liquor 
license 
is 
suspended, the license to operate video gaming terminals is also 
suspended until the liquor license is reinstated. 
Only members 
of the organization and their guests are allowed to play. 
The 
maximum dollar amount for each play is $5 and the maximum payout 
is $1,250. 
Each game on each machine must return at least 80~ of 
wagers to players, calculated on an annual basis. 
Net 
terminal 
income, 
which 
is 
income 
after 
payback 
to 
players, 
is 
divided 
among 
the 
State, 
the 
municipalities, 
a 
compulsive 
gambling 
fund 
for 
prevention 
and 
treatment 
of 
compulsive gambling and the charitable organization. 
The bill 
provides 
that 
2% 
of 
the 
net 
terminal 
income 
goes 
to 
the 
Compulsi ve Gambler Rehabilitation Fund and 65°-0 to the licensee. 
The bill provides that 23~ of the net terminal income goes to the 
State for payment into the Video Gaming Fund for administrative 
expenses not to exceed 
10~; the rest of the Video Gaming Fund is 
divided between municipal revenue sharing and the municipalities 
that host the organizations that operate video gaming terminals. 
Host municipalities receive their share in proportion to the 
amount of revenue that is generated by video gaming terminals in 
their municipality. 
Licenses are issued for 
one year. 
The 
license 
fee per 
terminal 
is 
$500, 
and 
for 
wholesalers, 
manufacturers 
and 
operators, the fee is $3,500. 
Applicants for an initial license 
must pay the actual costs of processing the application and 
performing the background investigation. 
The bill also specifies 
Bureau of Alcoholic Beverages 
Chief of the State Police to 
that any rules put forth by 
and Lottery Operations 
and 
administer and enforce the 
the 
the 
laws 
related to video gaming by nonprofits are major substantive rules.