An Act Regarding Establishing a Slot Machine Facility
Maine Legislature, Session 125, LD 0985
Amends: 8 MRSA §1001, 8 MRSA §1003, 8 MRSA §1011, 8 MRSA §1012, 8 MRSA §1016, 8 MRSA §1019, 8 MRSA §1020, 8 MRSA §1035, 8 MRSA §1036

Legislative Document 
No. 985 
I.B. 1 
House of Representatives, March 8, 2011 
An Act Regarding Establishing a Slot Machine Facility 
Transmitted to the Clerk of the 125th Maine Legislature by the Secretary of State on March 
7, 2011 and ordered printed. 
HEATHER J.R. PRIEST 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  8 MRSA §1001, sub-§23-A is enacted to read: 
23-A.  Host municipality.  "Host municipality" means a municipality within which a 
slot machine facility is located or proposed to be located. 
Sec. 2.  8 MRSA §1003, sub-§2, ¶M, as enacted by PL 2003, c. 687, Pt. A, §5 
and affected by Pt. B, §11, is amended to read: 
M.    Inform commercial track operators applying all applicants for a license to 
operate slot machines that any slot machines licensed by the board must be 
compatible with the central site system of on-line monitoring used by the board; 
Sec. 3.  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 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 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.  Commercial track operators.  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 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. 
2-A.  Other eligible persons.  The board may accept applications for a license to 
operate slot machines from any person whose application satisfies the following criteria: 
A.  The applicant proposes to operate slot machines at a slot machine facility within a 
specific host municipality; 
B.  The host municipality has a population of at least 30,000; 
C.  No slot machines licensed under this chapter were in operation within the host 
municipality as of July 1, 2010; 
D.  The applicant holds an option that was in effect on July 1, 2010 to purchase real 
property located in and owned by the host municipality; and 
E.  The voters of the host municipality have approved the option under paragraph D 
no later than July 1, 2010. 
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 1016 and 1019.  A 
person who is granted a license to operate slot machines under subsection 2 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 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.  This minimum payment requirement is 
satisfied by a person licensed under subsection 2-A by compliance with section 1036, 
subsection 2-A. 
5.  Renewal.  Licenses to operate slot machines may be renewed upon application for 
renewal in accordance with this subchapter, subject to board rules. 
6.  Additional licenses.  Notwithstanding any other provision of law, if an additional 
type of gambling-related license is authorized under this chapter or any other provision of 
law after July 1, 2010, any person who holds a license under subsection 2 or 2-A is 
automatically eligible to obtain such a license, regardless of the criteria imposed or 
required to obtain such a license. 
Sec. 4.  8 MRSA §1012, as enacted by PL 2003, c. 687, Pt. A, §5 and affected by 
Pt. B, §11, is amended to read: 
§1012.  Local approval for renewal of slot machine operator license 
An application for renewal of a slot machine operator license must first be approved 
under this section by the municipal officers of the municipality in which the slot machine 
facility or commercial track with slot machines is located or, if the slot machine facility 
or commercial track is in an unincorporated place, the application must be approved by 
the county commissioners of the county in which the slot machine facility or commercial 
track with slot machines is located. 
1.  Hearings.  Municipal officers or county commissioners, as the case may be, may 
hold a public hearing for the consideration of a request for the renewal of a license to 
operate slot machines, except that, when an applicant has held a license for the prior 5 
years and a complaint has not been filed with the board against the applicant within that 
time, the applicant may request a waiver of the hearing. 
A.  The board shall prepare and supply application forms for public hearings under 
this subsection. 
B.  Municipal officers or county commissioners, as the case may be, shall provide 
public notice of any hearing held under this section by causing, at the applicant's 
prepaid expense, a notice stating the name and place of the hearing to appear on at 
least 3 consecutive days before the date of the hearing in a daily newspaper having 
general circulation in the municipality where the premises of the slot machine facility 
or commercial track with slot machines are located or one week before the date of the 
hearing in a weekly newspaper having general circulation in the municipality where 
the premises are located. 
C.  If municipal officers or county commissioners, as the case may be, fail to take 
final action on an application for a renewal of a slot machine operator license within 
days of the filing of an application, the application is considered approved and 
ready for action by the board.  For purposes of this paragraph, the date of filing of the 
application is the date the application is received by the municipal officers or county 
commissioners. 
2.  Findings.  In granting or denying an application under this section, municipal 
officers or the county commissioners shall indicate the reasons for their decision and 
provide a copy to the applicant.  A license may be denied on one or more of the following 
grounds: 
A.  Noncompliance of the slot machine facility or commercial track licensed to 
operate slot machines with any local zoning ordinance or other land use ordinance not 
directly related to slot machine operations; 
B.  Conditions of record such as waste disposal violations, health or safety violations 
or repeated parking or traffic violations on or in the vicinity of the premises of the 
slot machine facility or commercial track with slot machines and caused by persons 
patronizing or employed by the slot machine facility or commercial track licensed to 
operate slot machines or other such conditions caused by persons patronizing or 
employed by the premises that unreasonably disturb, interfere with or affect the 
ability of persons or businesses residing or located in the vicinity of the premises to 
use their property in a reasonable manner; 
C.  Repeated incidents of record of breaches of the peace, disorderly conduct, 
vandalism or other violations of law on or in the vicinity of the premises of the slot 
machine facility or commercial track with slot machines and caused by persons 
patronizing or employed by the slot machine facility or commercial track licensed to 
operate slot machines; and 
D.  A violation of any provision of this chapter. 
3.  Appeal to board.  Any applicant aggrieved by the decision of the municipal 
officers or county commissioners under this section may appeal to the board within 15 
days of the receipt of the written decision of the municipal officers or county 
commissioners.  The board shall hold a public hearing in the city, town or unincorporated 
place where the premises of the slot machine facility or commercial track with slot 
machines are situated.  In acting on such an appeal, the board may consider all licensure 
requirements and findings referred to in subsection 2.  If the decision appealed is an 
application denial, the board may issue the license only if it finds by clear and convincing 
evidence that the decision was without justifiable cause. 
4.  Appeal to District Court.  Any person or governmental entity aggrieved by a 
board decision under this section may appeal the decision to the District Court within 30 
days of receipt of the written decision of the board.  An applicant who files an appeal or 
who has an appeal pending shall pay the license renewal fee the applicant would 
otherwise pay.  Upon resolution of the appeal, if an applicant's license renewal is denied, 
the board shall refund the applicant the prorated amount of the unused license fee. 
Sec. 5.  8 MRSA §1016, sub-§1, as enacted by PL 2003, c. 687, Pt. A, §5 and 
affected by Pt. B, §11, is amended to read: 
1.  Minimum qualifications.  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 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 slot machine facility or 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 executives 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. 
Sec. 6.  8 MRSA §1019, sub-§6, as enacted by PL 2003, c. 687, Pt. A, §5 and 
affected by Pt. B, §11, is amended to read: 
6.  Proximity of licensed slot machine facilities.  A license may not be issued under 
this chapter at any commercial track located within 100 miles of a licensed slot machine 
facility.  This subsection does not apply to any license issued under section 1011, 
subsection 2-A or 6. 
Sec. 7.  8 MRSA §1020, sub-§3, as amended by PL 2005, c. 663, §9, is repealed 
and the following enacted in its place: 
3.  Limits on total slot machines.  A slot machine operator may not operate more 
than 1,500 slot machines at any one slot machine facility. 
Sec. 8.  8 MRSA §1035, as amended by PL 2007, c. 611, §11, is further amended 
to read: 
§1035.  Location of slot machines 
Slot machines operated by persons licensed under section 1011, subsection 2 may be 
located only on the premises of a commercial track.  For the purposes of this section,  
"premises of a commercial track" means property owned by the person who owns the 
property on which a commercial track is located and that is either within 200 feet of the 
outside edge of the racing oval or, if the commercial track was owned by a municipality 
when a license to operate slot machines in association with that commercial track was 
issued, within 2,000 feet of the center of the racing oval. 
Sec. 9.  8 MRSA §1036, sub-§2, as amended by PL 2007, c. 466, Pt. A, §29, is 
further amended to read: 
2.  Distribution from commercial track.  A slot machine operator licensed under 
section 1011, subsection 2 shall collect and distribute 39% of the net slot machine income 
from slot machines operated by the slot machine operator to the board for distribution by 
the board as follows: 
A.  Three percent of the net slot machine income must be deposited to the General 
Fund for administrative expenses of the board, including gambling addiction 
counseling services, in accordance with rules adopted by the board; 
B.  Ten percent of the net slot machine income must be forwarded by the board to the 
Treasurer of State, who shall credit the money to the fund established in section 298 
to supplement harness racing purses; 
C.  Three percent of the net slot machine income must be credited by the board to the 
Sire Stakes Fund created in section 281; 
D.  Three percent of the net slot machine income must be forwarded by the board to 
the Treasurer of State, who shall credit the money to the Agricultural Fair Support 
Fund established in Title 7, section 91; 
E.  Ten percent of the net 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 the use of funds in the account restricted to the purposes 
described in Title 22, section 1511, subsection 6, paragraph E; 
F.  Two percent of the net slot machine income must be forwarded by the board to the 
University of Maine System Scholarship Fund created in Title 20-A, section 10909; 
G.  One percent of the net 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; 
H.  Four percent of the net slot machine income must be forwarded by the board to 
the Treasurer of State, who shall credit the money to the Fund to Encourage Racing at 
Maine's Commercial Tracks, established in section 299; however, the payment 
required by this paragraph is terminated when all commercial tracks have obtained a 
license to operate slot machines in accordance with this chapter; 
I.  Two percent of the net slot machine income must be forwarded by the board to the 
Treasurer of State, who shall credit the money to the Fund to Stabilize Off-track 
Betting Facilities established by section 300, as long as a facility has conducted off-
track wagering operations for a minimum of 250 days during the preceding 12-month 
period in which the first payment to the fund is required.  After 48 months of 
receiving an allocation of the net slot machine income from a licensed operator, the 
percent of net slot machine income forwarded to the Fund to Stabilize Off-track 
Betting Facilities is reduced to 1% with the remaining 1% to be forwarded to the 
State in accordance with subsection 1; and 
J.  One percent of the net slot machine income must be forwarded directly to the 
municipality in which the slot machines are located. 
Sec. 10.  8 MRSA §1036, sub-§2-A is enacted to read: 
2-A.    Distribution from other slot machine operators.  A slot machine operator 
licensed under section 1011, subsection 2-A shall collect and distribute 40% of the net 
slot machine income from slot machines operated by the slot machine operator to the 
board for distribution by the board as follows: 
A.  Three percent of the net slot machine income must be forwarded by the board to 
the Treasurer of State for distribution as determined by the joint standing committee 
of the Legislature having jurisdiction over natural resources matters to support 
bringing the Androscoggin River up to the minimum standards of water quality 
classification of the state water classification program under Title 38, chapter 3, 
subchapter 1, article 4-A and subsequently to support other water quality initiatives 
for rivers in the State; 
B.  Two and seven-tenths percent of the net slot machine income must be forwarded 
by the board to the Department of Economic and Community Development to be 
used for renovations and improvements for downtown revitalization throughout the 
State, and 0.3% of the net slot machine income must be forwarded by the board to the 
host municipality to be used for renovations and improvements to its downtown; 
C.  Two and seven-tenths percent of the net slot machine income must be forwarded 
by the board to the Efficiency Maine Trust established in Title 35-A, section 10103, 
and 0.3% of the net slot machine income must be forwarded by the board to the host 
municipality to be used to provide grants and low-interest loans to residents to 
upgrade or convert homes or businesses to renewable clean energy sources as 
determined by the Efficiency Maine Trust Board or the host municipality, as 
applicable; 
D.  Three percent of the net slot machine income must be forwarded by the board for 
distribution equally to each county in the State, other than the county in which the 
host municipality is located, for their unrestricted use; 
E.  Three percent of the net slot machine income must be forwarded by the board to 
the Treasurer of State for distribution as determined by the Department of Marine 
Resources for maintenance, repairs and improvements to ports and fisheries in the 
State, including for expenses attributable to bond issuances, to obtain federal funds 
and for similar costs and expenses; 
F.  Three percent of the net slot machine income must be forwarded by the board to 
the Treasurer of State for distribution as determined by the Department of 
Transportation to support collector roads and an east-west highway, including, in the 
case of an east-west highway, for expenses attributable to bond issuances, to obtain 
federal funds and for similar costs and expenses; 
G.  Three percent of the net slot machine income must be forwarded by the board to 
the Treasurer of State for distribution as determined by the Department of 
Transportation to support capital improvements to rail service within the State; 
H.  Two percent of the net slot machine income must be forwarded by the board to 
the Treasurer of State to be distributed as determined by the Department of 
Transportation for capital improvements to support rail service to the Town of Bethel, 
including for expenses attributable to bond issuances, to obtain federal funds and for 
similar costs and expenses; 
I.  Two percent of the net slot machine income must be forwarded by the board to the 
host municipality for its unrestricted use; 
J.  One percent of the net slot machine income must be forwarded by the board to the 
municipality that is closest to the host municipality and has a population of at least 
20,000 as of the 2010 Federal Decennial Census for its unrestricted use; 
K.  One percent of the net slot machine income must be forwarded by the board to the 
county in which the host municipality is located for its unrestricted use; 
L.  One percent of the net slot machine income must be forwarded by the board to the 
Treasurer of State to be distributed as determined by a committee consisting of the 
Chancellor of the University of Maine System, the President of the Maine 
Community College System and the President of Maine Maritime Academy for 
capital improvements to the University of Maine System, Maine Community College 
System and Maine Maritime Academy; 
M.  One percent of the net slot machine income must be forwarded by the board to 
the Chief of the State Police to be distributed to persons licensed under Title 17, 
section 1832 for use by such persons for charitable donations, unless such persons are 
permitted under applicable law to operate video gaming terminals or similar 
machines that are available to play or simulate the play of a video game upon the 
payment of something of value in exchange for which the player may receive 
something of value, including but not limited to free games or credits; in which case, 
one percent of the net slot machine income must be forwarded by the board to the 
Treasurer of State to be distributed as determined by the joint standing committee of 
the Legislature having jurisdiction over legal and veterans affairs to benefit veterans; 
N.  One percent of the net slot machine income must be forwarded by the board to the 
Treasurer of State, who shall credit the money to the Agricultural Fair Support Fund 
established in Title 7, section 91; 
O.  One percent of the net slot machine income must be forwarded by the board to an 
economic growth council in Lewiston-Auburn for its unrestricted use; 
P.  One percent of the net slot machine income must be forwarded by the board to the 
Treasurer of State to provide funding for the Job Creation Through Educational 
Opportunity Program established under Title 20-A, section 12542; 
Q.  One percent of the net slot machine income must be forwarded by the board to the 
Department of Economic and Community Development, Office of Tourism to 
promote the State as a tourist destination; 
R.  One percent of the net slot machine income must be forwarded by the board to the 
Treasurer of State for distribution to the Finance Authority of Maine to provide 
funding for the Maine State Grant Program established in Title 20-A, section 11612; 
S.  One percent of the net slot machine income must be forwarded by the board to the 
Department of Health and Human Services to provide funding for home-based care 
for the elderly; 
T.  One percent of the net slot machine income must be forwarded by the board to the 
Maine Technology Institute for its unrestricted use; 
U.  One-half of one percent of the net slot machine income must be forwarded by the 
board to the Chief of the State Police to be distributed to persons licensed under Title 
17, section 314 to be used to increase winnings, as follows:  1/3 to licensees located 
within 25 miles of the host municipality, 1/3 to licensees located 25 to 50 miles from 
the host municipality and 1/3 to licensees located more than 50 miles from the host 
municipality; 
V.  One-half of one percent of the net slot machine income must be forwarded by the 
board to the Treasurer of State, who shall credit the money to the fund established in 
section 298 to supplement harness racing purses; 
W.  One-half of one percent of the net slot machine income must be forwarded by the 
board to the host municipality for infrastructure improvements; 
X.  One-half of one percent of the net slot machine income must be forwarded by the 
board to each of the humane societies, as defined in Title 17, section 1011, subsection 
15-A, located within the State on an equal basis; 
Y.  One-half of one percent of the net slot machine income must be forwarded by the 
board to the Department of Transportation for the purpose of developing a riverfront 
bike path connecting the City of Lewiston and the City of Auburn with the Town of 
Brunswick and then continuing to other communities along the Androscoggin River; 
Z.  One-half of one percent of the net slot machine income must be forwarded by the 
board to the Department of Health and Human Services to provide funding for meals 
on wheels; 
AA.  One-half of one percent of the net slot machine income must be forwarded by 
the board to the City of Lewiston and the City of Auburn to provide funding for joint 
expenditures; and 
BB.  One-half of one percent of the net slot machine income must be forwarded by 
the board to municipalities, not including the municipality under paragraph J, that are 
adjacent to the host municipality, allocated according to population, for their 
unrestricted use. 
A slot machine operator who complies with the requirements of collection and 
distribution to the board as set forth in this subsection is in compliance with the minimum 
payment requirement of section 1011, subsection 4. 
SUMMARY 
This initiated bill authorizes the establishment of a slot machine facility in a 
municipality with a population of at least 30,000 in which slot machines were not in 
operation as of July 1, 2010 if the person who applies for a license to operate slot 
machines holds an option to purchase real property located in and owned by that 
municipality that was in effect on July 1, 2010 and approved by the voters of the 
municipality no later than July 1, 2010. 
The initiated bill removes the existing limit on the total number of slot machines that 
may be registered in this State, 1,500 machines, and replaces it with a limit of 1,500 slot 
machines at each licensed slot machine facility. 
The initiated bill provides for regulation of the slot machine facility authorized in the 
initiated bill by the Gambling Control Board. 
The slot machine operator would be required to collect and distribute 1% of gross slot 
machine income to the Treasurer of State for deposit in the General Fund for the 
administrative expenses of the Gambling Control Board.  The initiated bill also requires 
the slot machine operator to collect and distribute 40% of net slot machine income to the 
board for distribution to various entities, in specified percentages for a variety of purposes 
that are also specified in the bill.