An Act To Allow a Casino in Oxford County
Maine Legislature, Session 124, LD 1808
Committee Amendment CA_A-HA_A_H817 (House)
Amends: 8 MRSA §1003, 8 MRSA §1004, 8 MRSA §1011, 8 MRSA §1020

HOUSE AMENDMENT "ft, to COMMITTEE AMENDMENT "A" to I.B. 5, L.D. 
1808, Bill, "An Act To Allow a Casino in Oxford County" 
Amend the amendment by striking out the substitute title and replacing it with the 
following: 
'An Act Relating to the Establishment of Casinos' 
Amend the amendment by striking out everything after the substitute title and before 
the summary and inserting the following: 
'Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 8 MRSA §lOOl, sub-§5-A is enacted to read: 
5-A. Casino. "Casino" means a facility that offers enteliainment to the public in the 
form of various types of gambling activities, including, but not limited to, slot machines, 
card games, roulette and other games of chance on which patrons wager something of 
value with the hope of winning something of value in return. 
Sec. 2. 8 MRS A §lOOl, sub-§5-B is enacted to read: 
5-B. Casino operator. "Casino operator" means an entity or entities contracted by 
the State as an agent of the State for the purpose of operating a casino. 
Sec. 3. 8 MRS A §l002, sub-§2, as enacted by PL 2003, c. 687, Pt. A, §5 and 
affected by Pt. B, § 11, is repealed and the following enacted in its place: 
2. Members. The board consists of7 members appointed by the Governor. 
A. Two of the board members must have training or experience in at least one of the 
following fields: 
(1) Gambling industry; and 
(2) Harness racing industry. 
B. Training or experience in the following fields must be represented to the greatest 
extent possible: 
Page I - 124LR262S(OS)-1 
HOUSE AMENDMENT 
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HOUSE AMENDMENT 'if;' to COMMITTEE AMENDMENT "An to LB. 5, L.D.ISOS 
(]) Substance abuse and gambling addiction services; 
(2) Computer science or electronic monitoring and oversight of gambling; 
(3) Corporate finance or accounting; 
(4) Nonprofit gaming by veterans service organizations; and 
(5) Law enforcement. 
A member may not simultaneously serve on the Gambling Control Board and any other 
board or commission established by the State. 
Sec. 4. 8 MRS A §1003, sub-§l, GffA, as enacted by PL 2003, c. 687, Pt. A, §5 and 
affected by Pt. B, § 11, is amended to read: 
A. 
Regulate, supervise and exercise general control over the casinos and the 
ownership and operation of slot machines, the distribution of slot machines and slot 
machine facilities; 
Sec. 5. 8 MRSA §1003, sub-§2, i!ffH, as enacted by PL 2003, c. 687, Pt. A, §5 
and affected by Pt. B, § 11, is amended to read: 
H. Pursuant to subchapter 5, cause the department to investigate all complaints made 
to the board regarding casinos and ownership, distribution or operation of slot 
machines and all violations of this chapter or rules adopted under this chapter; 
Sec. 6. 8 MRSA §1003, sub-§2, 'IfI, as enacted by PL 2003, c. 687, Pt. A, §5 and 
affected by Pt. B, § 11, is amended to read: 
I. Adopt rules to prevent undesirable conduct relating to casinos and the ownership, 
distribution and operation of slot machines and slot machine facilities, including, but 
not limited to, the following: 
(1) The practice of any fraud or deception upon a casino patron, a player of a slot 
machine or a licensee; 
(2) The presence or location of a slot machine or gambling activity 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 at casinos and slot 
machines are in use machine facilities; 
Sec. 7. 8 MRSA §1003, sub-§2, GffJ, as enacted by PL 2003, c. 687, Pt. A, §5 and 
affected by Pt. B, § 11, is amended to read: 
J. Maintain a central site system of monitoring in real time both all slot machines 
licensed in accordance with this chapter using an on-line inquiry and the operation of 
other gaming activities at casinos using on-site monitoring; 
Sec. 8. 8 MRS A §1003, sub-§2, i!ffL, as enacted by PL 2003, c. 687, Pt. A, §5 and 
affected by Pt. B, § 11, is amended to read: 
HOUSE AMENDMENT 
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HOUSE AMENDMENT ·ff;o COMMITTEE AMENDMENT "A" to 1.8. 5, L.D. 1808 
L. Ensure that the slot machine operator or casino operator does not have access to 
any system that is capable of programming slot machines; 
Sec. 9. 8 MRSA §1003, sub-§2, CUD, as enacted by PL 2003,c. 687, Pt. A, §5 
and affected by Pt. B, § 11, is amended to read: 
O. Cause the central site monitoring system to disable a slot machine operated at a 
slot machine facility 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; 
Sec. 10. 8 MRSA §1003, sub-§2, '1TQ, as amended by PL 2005, c. 663, §4, is 
fUliher amended to read: 
Q. Certify monthly to the department a full and complete statement of all gambling 
revenue from casinos and slot machine revenue, credits disbursed by licensees, 
administrative expenses and the allocation of slot machine income for the preceding 
month; 
Sec. 11. 8 MRSA §1003, sub-§2, ~, as amended by PL 2005, c. 663, §5, is 
further amended to read: 
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 casino 
revenue and slot machine revenue, credits disbursed by slot machine operators, 
administrative expenses and the allocation of slot machine income for the preceding 
year; 
Sec. 12. 8 MRSA §1003, sub-§3, CUG, as enacted by PL 2003, c. 687, Pt. A, §5 
and affected by Pt. B, § 11, is amended to read: 
G. Minimum procedures for the exercise of effective control over the internal fiscal 
affairs of casinos and slot machine operators, 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; 
Sec. 13. 8 MRSA §1003, sub-§3, ~, as enacted by PL 2003, c. 687, Pt. A, §5 
and affected by Pt. B, § 11, is amended to read: 
H. Procedures for the annual audit of the books and records of casinos, slot machine 
operators, slot machine distributors and gambling services vendors; 
Sec. 14. 8 MRSA §1003, sub-§3, 'Ul, as enacted by PL 2003, c. 687, Pt. A, §5 
and affected by Pt. B, § 11, is amended to read: 
I. Establishment of a list of persons who are to be excluded or removed from any 
casino or 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 
HOUSE AMENDMENT 
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HOUSE AMENDMENT :#10 COMMIlTEE AMENDMENT" A" 10 1.8. 5, L.D. 1808 
slot machine facility would, in the opinion of the board, be inimical to the interest of 
the State; 
Sec. 15. 8 MRSA §1004, sub-§I, 'TID, as enacted by PL 2003, c. 687, Pt. A, §5 
and affected by Pt. B, § 11, is amended to read: 
D. Allow the slot machine operator or casino operator to install independent player 
tracking systems to include cashless technology as approved by the board; 
Sec. 16. 8 MRSA §1011, as amended by PL 2005, c. 663, §6, is further amended 
to read: 
§1011. License to operate 
The board shall exercise authority over the operation of casinos as governed by 
subchapter 7 and 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. Operator license required. A person may not operate any slot machine at slot 
machine facilities in the State unless the person has been issued a license to operate slot 
machines by the board. A slot machine operator license authorizes a licensee to own or 
lease slot machines operated at a licensed gambling facility. 
2. Eligible persons. The board may accept applications for a license to operate slot 
machines at a slot machine facility from any person who is licensed to operate a 
commercial track that satisfies the following criteria: 
A. The commercial track is located at or within 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. 
3. Requirements for license; continued commercial traci{ licensure. The board 
may not issue a license to operate slot machines at a slot machine facility to any person 
unless that person demonstrates compliance with the qualifications set forth in sections 
16 and 1019. A person who is granted a license to operate slot machines at a slot 
machine facility must maintain a license to operate a commercial track, without lapse, 
suspension or revocation for the duration of the slot machine operator's license. 
4. Requirement for license; agreement with municipality where slot machines 
are located. 
A slot machine operator at a slot machine facility shall enter into an 
agreement with the municipality where the slot machine operator's slot machines are 
located that provides for revenue sharing or other compensation, including, but not 
limited to, a provision requiring the preparation, in conjunction with the municipality, of 
a security plan for the premises on which the slot machines are located. The revenue-
sharing agreement must provide for a minimum payment to the municipality of 3% of the 
net slot machine income derived from the machines located in the municipality. 
HOUSE AMENDMENT 
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HOUSE AMENDMENT" /f.:to COMMITTEE AMENDMENT "A" to LB, 5, L.D, 1808 
5. Renewal. Licenses to operate slot machines at slot machine facilities may be 
renewed upon application for renewal in accordance with this subchapter, subject to 
board rules. 
Sec. 17. 8 MRSA §1020, sub-§3, as amended by PL 2005, c. 663, §9, is further 
amended to read: 
3. Limits on total slot machines at slot machine facilities and casinos. 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 net slot machine income, when 
distributed pursuant to section 1036, necessary to maintain the harness horse racing 
industry in this State and the total number of facilities licensed to operate slot machines in 
the State, except that: 
A. The total number of slot machines at slot machine facilities registered in the State 
may not exceed +,§OO 3,000; and 
B. A slot machine operator or a casino may not operate more than +,§OO 1,000 slot 
machines at anyone commercial track slot machine facility or casino. 
Sec. 18. 8 MRSA c. 31, sub-c. 7 is enacted to read: 
SUBCHAPTER 7 
CASINOS 
§1071. Casinos to be managed by the board 
Notwithstanding Title 17-A, chapter 39, the board shall be responsible for the 
management and operation of up to 3 casinos in the State through state-contracted casino 
operators in accordance with this section. 
1. Request for proposals to operate casinos. The board shall submit a request for 
proposals to operate up to 3 casinos in the State in accordance with the competitive 
bidding process established by Title 5, chapter 155, subchapter I-A, 
2. Minimum requests for consideration; municipal approval; preferences. The 
board may not consider a proposal for a casino in any region as determined in accordance 
with section 1073 unless a minimum of 2 separate proposals have been submitted to 
operate a casino in that region and the proposal includes certification of approval for a 
casino by the governing body of the municipality, or the county for an unincorporated 
place, where the casino is proposed to be located. 
When considering requests for 
proposals to operate a casino, the board shall give preference to: 
A. An entity that is working with or on behalf of a federally recognized Indian tribe 
with reservation or trust land in the State; 
B. An entity that is proposing to locate the casino in a region of proportionately high 
unemployment; and 
C. An existing commercial track licensed to accept pari-mutuel wagers on harness 
racing. 
HOUSE AMENDMENT 
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HOUSE AMENDMENT ·A" to COMMITIEE AMENDMENT "A" to I.B. 5, L.D. I ROR 
3. Profit-sharing formula required. The board shall require in the request for 
proposals to operate a casino under subsection 1 a profit-sharing fonnula that 
demonstrates the revenue to be divided between the General Fund and the operator. 
4. Minimum investment. An entity submitting a competitive bid to operate a casino 
under subsection 1 must demonstrate willingness to make a minimum investment of land, 
buildings and infrastructure at the location of a proposed casino. 
S. Privilege fee; term of contract. An entity that successfully bids for a casino 
contract pursuant to subsection 1 shall pay a minimum privilege fee of $5,000,000 to the 
board to be deposited to the General Fund. The term of the contract between the State 
and a casino operator may not exceed 20 years. 
6. Existing slot machine facility; right of refusal. Notwithstanding subsection 1 
and in addition· to the 3 casinos that are authorized and subject to the competitive bid 
process, the board may enter into a contract with an existing slot machine facility licensed 
to operate slot machines on January 1, 2010 to operate a casino at an existing slot 
machine facility location. Ifthe operator ofa slot machine facility opts to be licensed as a 
casino, the board shall negotiate a contract with the operator that must include an initial 
privilege fee of $3,000,000 to the board to be deposited to the General Fund. 
The 
contract must provide for the distribution of slot machine revenue as described in section 
1036 and the provision that net table game revenue be deposited to the General Fund in 
accordance with the percentage established by the contract. 
§1072. Casino operator to have interest in only one casino 
A casino operator may not have an interest in more than one casino in the State. This 
provision does not preclude the slot machine operator of a slot machine facility licensed 
as of January 1, 2010 from being licensed as a casino operator. 
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§1073. Location of casinos 
The board shall establish 4 regions for the location of casinos. Each region must 
have a population center that can economically sustain a casino. 
A casino must be 
located at least 75 miles from another casino or slot machine facility. If a slot machine 
facility licensed as of January 1, 2010 opts to enter into a contract with the board to 
operate a casino, the location ofthat slot machine facility must be considered one of the 4 
regions. 
§1074. State share of gaming revenue 
A casino operated in the State shall distribute to the board the state share of net slot 
machine and net table game revenue pursuant to contract under section 1071, subsection 
to be deposited in equal proportions to the funds created by sections 1075, 1076 and 
1077. 
§107S. General purpose aid to education fund 
A fund is established within the Department of Education to supplement the state 
share of essential programs and services as required by Title 20-A, section 15671 to 
which the board will credit a portion of the state share of net slot machine and net table 
game revenue in accordance with section 1074. 
HOUSE AMENDMENT 
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HOUSE AMENDMENT .. A, .. 10 COMMITIEE AMENDMENT "A" to 1.8. 5, L. D. ]808 
§1076. Veterans tax exemption reimbursement fund 
A fund is established within the Department of Administrative and Financial 
Services, Bureau of Revenue Services to reimburse municipalities for property tax 
exemptions granted to veterans in accordance with Title 36, chapter 105, subchapter 4 to 
which the board will credit a portion of the state share of net slot machine and net table 
game revenue in accordance with section 1074. 
§1077. Homestead exemption reimbursement fund 
A fund is established within the Department of Administrative and Financial 
Services, Bureau of Revenue Services to reimburse municipalities for resident homestead 
property tax exemptions in accordance with Title 36, chapter 105, subchapter 4-B to 
which the board will credit a portion of the state share of net slot machine and net table 
game revenue in accordance with section 1074. 
Sec. 19. Report; legislation. By March I, 2011 the Gambling Control Board 
shall submit a repOli to the joint standing committee having jurisdiction over gambling 
matters describing the potential location for casinos and the contents of the request for 
proposals to be submitted to potential casino operators. The board shall include with the 
repOli proposed legislation for the administration of oversight of casinos in the State.' , 
SUMMARY 
This amendment is proposed as a competing measure to the initiated bill to allow a 
casino in Oxford County. 
This amendment would authorize the establishment of 3 
casinos in the State subject to a competitive bidding process. Successful bidders would 
win the right to enter into a contract with the State to operate a casino for 20 years. A 
successful bidder is subject to a privilege fee of $5,000,000 to operate a casino. An 
existing slot machine facility would also be authorized to enter into a contract with the 
State to operate a casino at the existing slot machine facility without being subject to the 
competitive bidding process. 
A privilege fee for a casino that was an existing slot 
machine facility is $3,000,000 under this amendment. As determined by a contract with 
the State, the state share of net gaming revenue from the casinos would be divided 
equally among 3 funds that reimburse municipalities for education, veterans property tax 
exemptions and homestead propertY. tax exempti 
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SPONSORED BY: ~~ 
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(Representativty:xLENTINO) 
TOWN: Saco 
FISCAL :--;OTE REQUIRED 
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HOUSE AMENDMENT 
Approved: 04/01/10 frac 
LD 1808 
LR 2625(05) 
An Act To Allow a Casino in Oxford County 
Fiscal Note for House Amendment "/I,, to Committee Amendment "A" 
Sponsor: Rep. Valentino of Saco 
Fiscal Note Required: Yes 
Fiscal Note 
Potential current biennium revenue increase - General Fund 
Potential current biennium revenue decrease - General Fund 
Potential current biennium revenue increase - Other Special Revenue Funds 
Potential current biennium revenue decrease - Other Special Revenue Funds 
Fiscal Detail and Notes 
The impact of this bill as amended is contingent on approval by the voters as a competing measure'to the initiated bill 
at the referendum in November of 20 10. 
This amendment removes the Oxford County casino, table games at the existing Bangor facility, and the tribal 
commercial track and casino in Washington'County. It provides for up to 3 casinos to be selected through'a 
competitive bidding process and managed by the Gambling Control Board. AdditionaHy, the Board may entednto a 
contract with the existing Bangor facility to operate a casino at ~hat location. Each bid must include municipal 
approval and a profit sharing formula describing how revenues shaH be divided between the State and the operator. 
Presented below is an estimate of the amount of revenue that might be realized from these casinos assuming a total of 
2,000 additional slot machines, 84 total table games at the three casinos, and 54 table games at the Bangor facility. 
When the locations of the three casinos are ultimately decided the revenue shown below could be reduced by the 
percentage of market share the casinos take away from each other through competition. 
Summary of Potential Revenue 
Gross Slot and Table Game Income 
Player Payback (assumed at 91.55% of gross income) 
Net Slot and Table Game Income - Casinos 
Net Table Game Income - Bangor 
Privilege Fee - First Year Only - General Fund 
LR2625(05) - Fiscal Note - Page I of2 
Annual 
Estimate 
$ I ,698,693,334 
$1,555,153,747 
$125,840,000 
$17,699,587 
$ I 8,000,000 
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The State's share of profits from Bangor table games would be deposited to the General Fund. The State's share of 
profits from the three casinos would be deposited in equal proportions to 3 Other Special Revenue Funds accounts. 
The State's share of profits would only be determined once the bids are received and the contracts ~re negotiated. As 
an example, if the profit sharing percent was 35%, the amounts distributed would be as follows: 
General Fund 
Other Special Revenue Funds: 
* General Purpose Aid to Education Fu'nd ' 
* Veterans Tax Exemption Reimbursement Fund 
* Homestead Exemption Reimbursement Fund 
LR262S(OS) - Fiscal Note - Page 2 of2 
$6,194,855 
$14;681,333 
" $14,681,333 
,:, $14,681,333,