An Act To Permit Video Gaming for Money Conducted by Nonprofit Organizations
Maine Legislature, Session 125, LD 1469
Committee: Veterans and Legal Affairs
Sponsors: FITTS, PATRICK, PETERSON
Amends: 8 MRSA §372, 8 MRSA §374, 17 MRSA §1847, 28-A MRSA §807, 28-A MRSA §1054, 30-A MRSA §5686

Legislative Document 
No. 1469 
H.P. 1078 
House of Representatives, April 12, 2011 
An Act To Permit Video Gaming for Money Conducted by 
Nonprofit Organizations 
Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative FITTS of Pittsfield. 
Cosponsored by Senator PATRICK of Oxford and 
Representative: PETERSON of Rumford. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  8 MRSA §372, sub-§2, ¶I, as amended by PL 2003, c. 673, Pt. MM, §1, 
is further amended to read: 
I.    Carry on 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 authority to terminate the agreement upon the 
provision of reasonable notice, not to exceed 6 months.  The final agreement must 
further provide that the director may terminate the agreement at any time, without 
prior notice, in the event that the director's authority is withdrawn or limited by law; 
and 
Sec. 2.  8 MRSA §372, sub-§2, ¶J, as enacted by PL 1991, c. 780, Pt. Y, §112, is 
amended to read: 
J.    Assign duties as necessary to a designee.; and  
Sec. 3.  8 MRSA §372, sub-§2, ¶K is enacted to read: 
K.  Carry out the duties assigned to the director under Title 17, chapter 130, 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 
in implementing and enforcing that chapter. 
Sec. 4.  8 MRSA §374, sub-§1, ¶L, 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; and 
Sec. 5.  8 MRSA §374, sub-§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 game.; and 
Sec. 6.  8 MRSA §374, sub-§1, ¶N is enacted to read: 
N.  Rules to administer and enforce Title 17, chapter 130, which may be adopted 
jointly with the Chief of the State Police.  Rules adopted pursuant to this paragraph 
are routine technical rules pursuant to Title 5, chapter 375, subchapter 2-A. 
Sec. 7.  17 MRSA §1847 is enacted to read: 
§1847.  Applicability 
Except as expressly provided in chapter 130, this chapter does not apply to video 
gaming terminals. 
Sec. 8.  17 MRSA c. 130 is enacted to read: 
CHAPTER 130 
VIDEO GAMING TERMINALS 
SUBCHAPTER 1 
GENERAL PROVISIONS 
§3911.  Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings. 
1.  Associated equipment.  "Associated equipment" means any proprietary 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. 
2.  Director.  "Director" means the Director of the Bureau of Alcoholic Beverages 
and Lottery Operations in the Department of Administrative and Financial Services. 
3.  Drug abuser.  "Drug abuser" has the same meaning as set forth in Title 5, section 
20003, subsection 10. 
4.  Drug addict.  "Drug addict" has the same meaning as set forth in Title 5, section 
20003, subsection 11. 
5.  Drug-dependent person.  "Drug-dependent person" has the same meaning as set 
forth in Title 5, section 20003, subsection 12. 
6.  Engaged in reckless or negligent conduct.  "Engaged in reckless or negligent 
conduct" means engaged in conduct that in fact created a substantial risk of death, serious 
bodily injury or bodily injury to another human being while either consciously 
disregarding or failing to be aware of a risk that the conduct would cause such a result, 
and the disregard or failure to be aware of that risk, when viewed in light of the nature 
and purpose of the conduct and the circumstances known to the actor, 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, an information, a juvenile petition or other formal written accusation 
against a person for some criminal or juvenile offense. 
8.  Fugitive from justice.  "Fugitive from justice" has the same meaning as set forth 
in Title 15, section 201, subsection 4 or 18 United States Code, Section 921(a)(15) or a 
person subject to an outstanding warrant of arrest in this State or any other jurisdiction for 
a crime punishable by imprisonment for one year or longer. 
9.  Illegal gaming machine.  "Illegal gaming machine" or "illegal machine" means a 
machine as defined in section 1831, subsection 9 that: 
A.  Is required to be licensed under this chapter, but is not so licensed; 
B.  Is required to be licensed under chapter 62, but is not so licensed; or 
C.  Is licensed under either chapter 62 or this chapter, but is being operated in a 
manner that violates the license. 
10.  Licensee.  "Licensee" means a person licensed by the Chief of the State Police 
under section 3921 to operate a video gaming terminal. 
11.  Net terminal income.  "Net terminal income" means money inserted into a video 
gaming terminal minus credits paid out in cash. 
12.  Operate.  "Operate" means to offer for use. 
13.  Payback value.  "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.  Uniform location agreement.  "Uniform location agreement" means a written 
agreement in a form prescribed by the Chief of the State Police between a video gaming 
terminal licensee and a video gaming terminal wholesaler that governs the terms and 
conditions of the agreement, including the placement of video gaming terminals on the 
premises of the licensee. 
16.  Video gaming terminal.  "Video gaming terminal" or "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. 
17.  Video gaming terminal manufacturer.  "Video gaming terminal manufacturer" 
means a person who assembles or produces video gaming terminals or associated 
equipment for sale or use in this State. 
18.  Video gaming terminal wholesaler.  "Video gaming terminal wholesaler" 
means a person who sells video gaming terminals or associated equipment for distribution 
in this State. 
§3912.  License required 
A person may not manufacture, 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 under 
this chapter.  A person may not place for use or operate a video gaming terminal in this 
State unless the terminal is licensed by the Chief of the State Police under section 3923. 
§3913.  Administration and enforcement 
The Chief of the State Police and the director shall administer and enforce the 
provisions of this chapter as specified in this chapter. 
§3914.  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: 
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 adopting 
rules jointly with the State Liquor and Lottery Commission.  Rules adopted pursuant 
to this paragraph are routine technical rules pursuant to Title 5, chapter 375, 
subchapter 2-A; 
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 Department of 
Public Safety, Bureau of State Police and all violations of this chapter or the rules 
adopted under this chapter. A complaint made pursuant to this paragraph must be in 
writing, signed by the complainant and dated; 
B.  Adopt rules, which are routine technical 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: 
(1)  The practice of any fraud or deception upon a player of a video gaming 
terminal; 
(2)  The presence of a video gaming terminal on premises 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 gaming 
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; 
C.  Direct the director to disable 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 
3944, subsection 2, paragraphs A and B; 
(2)  The funds from the terminal have not been distributed, deposited or allocated 
in accordance with section 3933; 
(3)  The terminal does not meet the licensure requirements of this chapter; or 
(4)  The licensee is guilty of criminal conduct; and 
D.  Approve uniform location agreements submitted by licensees pursuant to section 
3922, subsection 2. 
§3915.  Powers and duties of director 
1.  Powers.  In addition to powers conferred by any other provision of law, the 
director may: 
A.  Propose to the State Liquor 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.  Rules adopted by the commission pursuant to this 
paragraph are routine technical rules pursuant to Title 5, chapter 375, subchapter 2-A; 
and 
B.  Subject to approval of the State Liquor 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 5, chapters 141 to 145 and Title 5, sections 1812 and 1813.  A 
contract awarded or entered into by the director may not be assigned by the holder of 
the contract, except by specific approval of the commission. 
2.  Duties.  The director shall: 
A.  Develop, install and test a central computer system with continuous online 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 implementing the necessary program modifications to 
communicate or an inability to communicate with the central computer system.  In 
developing the system, the director shall allow for a 5-year phase-in period in 
accordance with section 3923, subsection 3 for licensees to acquire equipment 
capable of interfacing with a central computer system; 
B.  Maintain and monitor the central computer system to ensure compliance with this 
chapter; 
C.  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; 
D.  Cause the central computer system to disable a video gaming terminal as directed 
by the Chief of the State Police in accordance with section 3914, subsection 2, 
paragraph C; 
E.  Collect funds due the State under section 3933 and deposit them in the Video 
Gaming Fund established in section 3934; 
F.  Immediately notify the Chief of the State Police of the failure of any licensee to 
comply with section 3933; 
G.  Certify monthly to the Treasurer of State, the State Liquor and 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; 
H.  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; 
I.  Prepare and submit to the Commissioner of Administrative and Financial Services 
a budget; and 
J.  Cooperate with the Chief of the State Police in implementing and enforcing the 
provisions of this chapter. 
§3916.  Applicability of chapter 62 
Except as expressly provided in this chapter, chapter 62 does not apply to video 
gaming terminals.  Section 1838 relating to use of proceeds applies to the use of net 
terminal income by licensees under this chapter. 
SUBCHAPTER 2 
LICENSING 
§3921.  License to operate 
1.  Eligible entities.  The Chief of the State Police may issue a license to operate a 
video gaming terminal to a person who: 
A.  Is eligible for a license to conduct games of chance pursuant to section 1832; 
B.  Is exempt from federal taxation under the United States Internal Revenue Code, 
Section 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10) or 501(c)(19); and 
C.  Owns or leases the premises upon which the video gaming terminal will be 
located and uses those premises to fulfill the primary charitable or nonprofit purpose 
of the organization.  If the premises are leased, the lease must run for a term longer 
than the license term. 
Notwithstanding paragraph B, an organization that holds a license under section 1832 to 
operate an electronic video machine on the effective date of this chapter is eligible to 
apply for and receive a license under this section to operate a video gaming terminal for 
up to 18 months, as long as the organization applies for federal tax status as specified in 
paragraph B.  If the Chief of the State Police determines that the organization is making a 
good faith effort to secure the required tax status and is likely to be given such status, the 
Chief of the State Police may extend the term of the license for an additional 6 months to 
allow the United States Internal Revenue Service time to complete processing the 
application for tax status.  If the organization applied for such status and was rejected 
within 3 years of the effective date of this section, that organization is not eligible under 
this subsection. 
2.  Qualifications for license.  A person may be issued a license to operate a video 
gaming terminal if the person is eligible for a license under subsection 1, has completed 
application forms as provided by the Chief of the State Police and has sufficient financial 
assets to meet the financial obligations imposed by this chapter and a method acceptable 
to the Chief of the State Police for meeting those obligations, and the individual applicant 
for the license and, when the person applying is a corporation, association or partnership, 
each officer, director or partner of the corporation, association or partnership: 
A.  Has not been convicted in the State or any other jurisdiction of a misdemeanor 
crime of domestic violence, within the meaning of 18 United States Code, Section 
921(a)(33); 
B.  Does not have a formal charging instrument pending in the State or any other 
jurisdiction for a misdemeanor crime of domestic violence, within the meaning of 18 
United States Code, Section 921(a)(33); 
C.  Has not been convicted in the State 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 within the past 3 years engaged in reckless or negligent conduct that is 
substantiated by information of record by a governmental entity; 
E.  Is current in payment of all taxes, interest 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 62 or of 
equivalent 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; 
I.  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 requirements of section 
3925; and 
K.  Has not knowingly made a false statement of material fact to the Chief of the 
State Police in applying for a license under this chapter or chapter 62. 
3.  Local approval of application for license.  The Chief of the State Police may not 
issue a license to operate a video gaming terminal until the initial application for the 
license is first approved by the municipal officers of the municipality in which the 
applicant's premises are located or, if the premises are located in an unincorporated place, 
until the application is approved by the county commissioners of the county in which the 
unincorporated place is located. 
4.  Hearing process.  The municipal officers or, in the case of an unincorporated 
place, the county commissioners of the county in which the unincorporated place is 
located may hold a public hearing for the consideration of 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. 
A.  The municipal officers or the county commissioners shall provide, at the 
applicant's prepaid expense, 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 hearing in a daily newspaper having general circulation in 
the municipality or unincorporated place where the applicant's premises are located or 
consecutive weeks before the date of the hearing in a weekly newspaper having 
general circulation in the municipality or unincorporated place where the applicant's 
premises are located. 
B.  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. 
§3922.  Placement and ownership of terminals 
1.  Number of terminals;  location.  No more than 5 video gaming 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 must own or control the premises on which 
a video gaming terminal is located.  The area in which the terminals are located must be 
designed to permit the licensee or an agent of the licensee to see and control the area at all 
times to ensure compliance with the provisions of this chapter. 
2.  Uniform location agreement.  A location containing a video gaming terminal 
must be subject to a uniform location agreement.  A copy of the agreement must be 
submitted to the Chief of the State Police.  The Chief of the State Police may approve or 
disapprove any uniform location agreement.  If the uniform location agreement is 
disapproved, the Chief of the State Police shall provide written reasons for the denial. 
3.  Appeal to commissioner.  A licensee denied approval of a uniform location 
agreement under subsection 2 may appeal the decision of the Chief of the State Police to 
the Commissioner of Public Safety.  The commissioner shall hold a hearing with the 
licensee and the Chief of the State Police or the chief's designee before rendering a 
decision on the appeal.  The commissioner shall render a decision within 30 days of the 
hearing. 
§3923.  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 under 
this section.  The video gaming terminal license must be prominently displayed on the 
terminal.  Language describing the odds of winning the game and warning of the danger 
of compulsive gambling must also be prominently displayed on the terminal. 
2.  Requirements for license.  To be licensed, a video 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.  After completion of the 5-year phase-in period described in subsection 3, must 
have nonresettable meters housed in a readily accessible locked area in which the 
terminals are located 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.  After completion of the 5-year phase-in period described in subsection 3, 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.  After completion of the 5-year phase-in period described in subsection 3, 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 video games, total credits distributed 
by tickets made by the terminal's printer and the payback value of each video game; 
and 
I.  After completion of the 5-year phase-in period described in subsection 3, must be 
linked to the central computer system developed under section 3915, subsection 2 to 
provide auditing program information. 
3.  Phase-in period; rules.  Requirements governing the technical capabilities of 
video gaming terminals must be phased in over a period of 5 years from the effective date 
of this chapter.  The Chief of the State Police shall adopt rules to implement this 
subsection.  Rules adopted pursuant to this subsection are routine technical rules as 
defined in Title 5, chapter 375, subchapter 2-A. 
4.  Amount of play; payback value.  A video gaming terminal may 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 $1,250.  The 
payback value of each type of video game offered by each terminal must be at least 80%. 
5.  Examination of prototypes.  The Chief of the State Police and the Attorney 
General shall examine all prototypes of video gaming terminals and associated 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 equipment to pay 
the anticipated actual cost of the examination before the examination occurs.  After the 
examination occurs, the Chief of the State Police shall refund overpayments or charge 
and collect amounts sufficient 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 as required by this 
subsection. 
6.  Illegal gaming machine.  An illegal gaming machine is subject to seizure and 
forfeiture to the State pursuant to sections 3945 and 3946. 
§3924.  Licensing of manufacturer or wholesaler; limitation on ownership 
1.  Qualifications.  To be licensed as a video gaming terminal manufacturer or 
wholesaler, a person must meet the qualifications set forth in section 3921, subsection 2. 
2.  Limitation on ownership.  A partnership, corporation, individual, individual 
partner or shareholder holding more than 5% of a corporation or an immediate family 
member of an individual, individual partner or shareholder holding more than 5% of a 
corporation may not have ownership interests in more than one distributor of video 
gaming terminals.  For the purposes of this subsection, "immediate family member" 
means a spouse, child, parent, stepchild or stepparent. 
§3925.  Applications; investigation 
1.  Form.  An application for a license required 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.  Answers to the following questions posed in substantially the following form: 
(1)  "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?"; 
(2)  "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 
(2)?"; 
(4)  "Are you a fugitive from justice?"; 
(5)  "Are you 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 3 years?"; 
(7)  "Are you an illegal alien?"; 
(8)  "Have you been convicted within the past 3 years of 3 or more crimes 
punishable by imprisonment of less than one year?"; 
(9)  "Have you been adjudged 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?"; and 
(10)  "To your knowledge, have you engaged within the past 3 years in reckless 
or negligent conduct that is substantiated by the records of a governmental 
entity?" 
2.  Signature as certification.  An applicant, by affixing the applicant's signature to 
an application for licensure under this chapter, certifies the following: 
A.  That the statements made in the application and any document made a part 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 for refusal to issue a license; 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 refusal to 
issue a license or for revocation or suspension of a license. 
3.  Consent to review records. At the request of the Chief of the State Police, an 
applicant for licensure under this chapter shall take whatever action is necessary to permit 
the Chief of the State Police to examine all accounts and records in the applicant's 
possession, under the applicant's control or under the control of 3rd parties but accessible 
by consent of the applicant and shall authorize all 3rd parties in possession or in control 
of those accounts or records to allow the Chief of the State Police or a designee to 
examine the accounts and records as the Chief of the State Police determines necessary to 
ascertain: 
A.  Whether the information supplied on the application or on any document made a 
part of the application is true and correct; 
B.  Whether each of the requirements of this section has been met; and 
C.  Whether the applicant meets the requirements for licensure under this chapter. 
This requirement includes taking 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.  Investigations; national criminal history record check. An individual applying 
for a license under this chapter and a partner of a partnership or an officer, director or 
holder of any ownership interest of a corporation or association applying for a license as a 
licensee, video gaming terminal manufacturer or video gaming terminal wholesaler must 
submit to a background investigation by the Chief of the State Police to verify the 
applicant's compliance with the requirements of section 3921, subsection 2.  In order to 
determine the eligibility of an applicant for a license under this chapter, the Chief of the 
State Police shall require the applicant to furnish a full set of fingerprints to enable a 
criminal background investigation to be conducted.  The Chief of the State Police shall 
submit the fingerprints to the Federal Bureau of Investigation for a national criminal 
history record check. 
5.  Notification of municipal officers.  An applicant for a license to operate a video 
gaming terminal must send a copy of the application to the municipal officers of the 
municipality in which the terminal will be operated or, if the terminal will be operated in 
an unincorporated place, to the county commissioners of the county in which the 
unincorporated place is located.  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. 
§3926.  Fees; term of license; nontransferable 
1.  License levels; fees.  The annual fee for a license issued under this chapter is as 
follows: 
A.  A license for a video gaming terminal manufacturer is a Level 1 license, and the 
fee for a video gaming terminal manufacturer license is $5,000; 
B.  A license for a video gaming terminal wholesaler is a Level 1 license, and the fee 
for a video gaming terminal wholesaler license is $5,000; and 
C.  A license to operate a video gaming terminal is a Level 2 license, and the fee for a 
video gaming terminal operator license is $600 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 subsection must be deposited directly into the Video 
Gaming Fund established in section 3934. 
2.  Term of license.  A license issued by the Chief of the State Police under this 
chapter is effective for one year and is renewable annually, unless sooner revoked 
pursuant to section 3927. 
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 video gaming terminal wholesaler under section 
3924 has a Level 1 license.  A licensee under section 3921 has a Level 2 license.  A 
person may not simultaneously hold more than one level of license. 
§3927.  Actions relating to licenses 
1.  Refusal to renew license.  The Chief of the State Police 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 license holder in writing of the suspension and the date the 
suspension is to take effect.  If the license holder wishes to have a hearing, the license 
holder must notify the District Court in writing within 20 days of the date of the 
suspension.  If a hearing is requested, the license remains suspended pending the outcome 
of the hearing.  If the Chief of the State Police suspends a license under this subsection, 
the license holder is entitled to a refund, on a pro rata basis, of the license fee for the 
remainder of the license period. 
3.  Suspension or revocation of license by District Court.  The District Court may 
suspend or revoke a license issued under this chapter for just cause. 
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 obtaining a 
license under this chapter or in connection with service rendered within the scope of 
the license issued; 
B.  Violating or having an agent who violates any provision of this chapter or any 
rule adopted under this chapter; or 
C.  Becoming ineligible to hold a license obtained under this chapter. 
5.  Ineligibility period following refusal to issue or renew license or revocation of 
license.  A person may not apply to the Chief of the State Police for any license under 
this chapter less than 2 years after the Chief of the State Police refuses to issue or renew a 
license under this chapter with respect to the person or less than 2 years after the District 
Court revokes a license issued to the person under this chapter. 
SUBCHAPTER 3 
VIDEO GAMING TERMINAL OPERATION; ALLOCATION OF FUNDS 
§3931.  Limits on video gaming terminal use 
1.  Hours of play.  A licensee may not permit a person to play a video gaming 
terminal at any time other than a time 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 21 years of age to play 
a video gaming terminal. 
3.  Time and money limits imposed by licensee.  A licensee may impose a daily 
limit on the amount of time or money spent by a person playing a video gaming terminal 
on the licensee's premises. 
4.  Play by members and guests.  Only persons who are members of the licensee 
organization or guests of those members may play a video gaming terminal on the 
premises of the licensee. 
§3932.  Payment of credits by licensee 
A licensee shall redeem credits for players who earn credits on video gaming 
terminals located on the premises of that licensee in accordance with rules adopted jointly 
by the Chief of the State Police and the State Liquor and Lottery Commission.  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, address and social 
security number.  The licensee shall promptly send the form to the Department of 
Administrative and Financial Services, Bureau of Revenue Services. 
§3933.  Allocation of funds 
1.  Allocation of net terminal income.  Net terminal income must be allocated as 
follows: 
A.  Eight percent must be sent to the Treasurer of State for deposit in the Video 
Gaming Fund established in section 3934; 
B.  Two percent must be sent to the Treasurer of State for deposit in the Compulsive 
Gambler Rehabilitation Fund established in Title 22, section 1700-B; 
C.  Sixty-five percent must be paid to the licensee.  If a licensee has obtained use of a 
video gaming terminal from a state-certified distributor, 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; 
D.  Fifteen percent must be transferred to the General Fund as undedicated revenue; 
and 
E.  Ten percent must be paid to the host municipality. 
2.  Deposit of state funds.  A 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 the State's share of the net terminal income attributable to the 
licensee's video gaming terminals.  If the day on which funds must be deposited is not a 
business day, the funds must be deposited on the next business day after that date. 
3.  Use of state share.  At the end of each fiscal year beginning after June 30, 2011, 
the Treasurer of State shall transfer to the Local Government Fund created in Title 30-A, 
section 5681 an amount equal to 10% of the state share of net terminal income derived 
from video gaming terminals during that fiscal year, net of state administrative costs.  
Thirty days after the end of each fiscal year, the Treasurer of State shall transfer to the 
Public Education Fund established in Title 30-A, section 5686 all unexpended amounts of 
the previous fiscal year's revenues to the Local Government Fund, except those needed to 
fund 2 months of expenses for administering this chapter. 
4.  Failure to deposit funds.  A licensee who willfully 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 payments.  All payments under this section not remitted when due must be 
paid together with a penalty assessment on the unpaid balance at a rate of 1.5% per 
month. 
§3934.  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 3926 and 3933 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 and enforcing this chapter; 
B.  For payment to the Local Government Fund pursuant to section 3933; 
C.  For payment to the Public Education Fund established in Title 30-A, section 
5686; and 
D.  For payment to the Compulsive Gambler Rehabilitation Fund established in Title 
22, section 1700-B. 
SUBCHAPTER 4 
ENFORCEMENT AND PENALTIES 
§3941.  Reports; records 
1.  Reports; records.  The Chief of the State Police or the director shall obtain from 
a licensed video gaming terminal, licensed video gaming terminal manufacturer, licensed 
video gaming terminal 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 person holding a license under this chapter shall maintain all records 
required by this chapter or by rules adopted under this chapter at the primary business 
office within this State of the license holder or, in the case of a licensee, at the licensee's 
primary business office or on the premises where the video gaming terminal is operated.  
The primary business office must be designated 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 person holding a license under this chapter may not refuse the Chief 
of the State Police, the director or the designee 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. 
§3942.  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 equipment, 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 and shall authorize all 3rd 
parties in possession or in control of those accounts or records to allow the Chief of the 
State Police or the chief's designee to examine the accounts and records as the chief 
determines necessary. 
§3943.  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 inquiry 
by the chief, the Attorney General may petition 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 requiring that witness to appear before the 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, punish the witness in the same manner and to the same extent as for contempt 
committed before the Superior Court or with reference to the process of the Superior 
Court. 
§3944.  Violations 
1.  Crimes by licensee.  A licensee who performs any of the following acts commits 
a Class D crime: 
A.  Permitting a person under 21 years of age to play a video gaming terminal 
licensed pursuant to this chapter; 
B.  Permitting a person to play a video gaming terminal licensed pursuant to this 
chapter at a time other 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 play a 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 performs any of the following acts 
commits a Class C crime: 
A.  Tampering with a video gaming terminal with intent to interfere with the proper 
operation of that terminal; 
B.  Manipulating or attempting to manipulate the outcome, payoff or operation of a 
video gaming terminal by physical tampering or any other means; 
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 gaming machine 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 a provision of this chapter 
or a rule adopted under this chapter for which a specific penalty is not provided commits 
a Class D crime. 
§3945.  Seizure and forfeiture of illegal gaming machines 
1.  Forfeiture.  An illegal gaming machine, including any monetary contents, is 
subject to forfeiture to the State. 
2.  Court jurisdiction.  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 territorial boundaries of the State and is subject to the 
authority of any court in which a petition seeking the forfeiture of that property is filed. 
3.  Procedure.  Forfeitures under this section must be accomplished by the following 
procedure. 
A.  A district attorney or the Attorney 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 
having jurisdiction over the property. 
B.  The proceeding is an in rem civil action, in which the State has the burden of 
proving all material facts by a preponderance of the evidence. 
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 gaming machine and any 
monetary contents.  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. 
D.  The court shall promptly, 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 under paragraph D, the court shall issue a 
final order from which the parties have a right of appeal.  The final order 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 
monetary contents of the machine must be used to pay the reasonable expenses of the 
forfeiture proceedings, seizure, storage, maintenance of custody, advertising and 
notice.  The balance, if any, must be deposited in the General Fund. 
4.  Records.  Any law enforcement officer, department or agency having custody of 
an illegal gaming machine or any monetary contents of an illegal gaming machine or 
having disposed of the illegal gaming machine or any monetary contents shall keep and 
maintain during 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 gaming machine and any monetary contents were 
received; 
(2)  Under what authority the illegal machine and any monetary contents are held, 
received or disposed of; 
(3)  To whom the illegal machine and any monetary contents are delivered; 
(4)  The date and manner of destruction or disposition of the illegal machine; and 
(5)  The exact kind, quantity and form of the illegal gaming machine and the 
exact amount of any monetary contents of a 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 
gaming machines seized.  At least quarterly, the department shall provide a report of 
the disposition of property previously held by the department to the Commissioner of 
Administrative and Financial Services and the legislative Office of Fiscal and 
Program Review.  These records must include an estimate of the fair market value of 
items seized. 
5.  Report to court.  A person making final disposition of or destroying 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. 
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. 
7.  Process for seizure.  At the request of the State ex parte, the court may issue any 
preliminary order or process necessary to seize or secure the property for which forfeiture 
is sought under this section 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. 
§3946.  Criminal forfeiture 
1.  Forfeiture upon conviction of violation.  A person convicted of a violation of 
this chapter forfeits to the State all rights, privileges, interests and claims to property that 
is subject to forfeiture pursuant to section 3945.  All rights, privileges, interest and title in 
property subject to forfeiture under this section vest in the State upon the commission of 
the act giving rise to forfeiture pursuant to section 3945. 
2.  Proceeding by indictment.  Property subject to forfeiture that is not yet the 
subject of a final order pursuant to section 3945 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 property have been simultaneously indicted for 
one or more violations of this chapter.  At any time prior to trial, the State, with the 
consent of the court and any defendant with an interest in the property, may file an 
ancillary charging instrument or information alleging that that property is subject to 
criminal 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 3945, 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.  Seizure upon finding of probable cause.  Property subject to forfeiture that has 
not already been seized but has been indicted by a grand jury pursuant to this section may 
also be ordered seized based upon the grand jury's finding of probable cause pursuant to 
section 3945. 
4.  Trial against property. 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 property 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 extent 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 guilty plea 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 interest in the property, the time and circumstances of the 
petitioner's acquisition of the right, title or interest in the property, any additional facts 
supporting the petitioner's 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 6 months after the petition 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 if, after the hearing, the court determines that the 
petitioner has established by a preponderance of the evidence that: 
A.  The petitioner 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 interest to the exclusion of any defendant at the time of the 
commission of the act that gave rise to the forfeiture of the property under this 
section; and 
B.  The petitioner is a bona fide purchaser 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 to property following forfeiture or guilty plea.  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 the property that is the subject of the 
indictment or information and order of forfeiture and may order all or a portion of the 
property forfeited to the State to be disposed of pursuant to section 3945. 
§3947.  Payment to Attorney General 
As provided in Title 5, section 203, the Department of Public Safety, Bureau of State 
Police shall pay the Attorney General from the Video Gaming Fund established in section 
3934 for legal services provided pursuant to this chapter. 
§3948.  Implementation 
A video gaming terminal may not be operated under this chapter before April 1, 
2012. 
§3949.  Rules 
Rules adopted by the Chief of the State Police pursuant to this chapter are routine 
technical rules pursuant to Title 5, chapter 375, subchapter 2-A. 
Sec. 9.  22 MRSA c. 276 is enacted to read: 
CHAPTER 276 
COMPULSIVE GAMBLER REHABILITATION 
§1700-B.  Compulsive Gambler Rehabilitation Fund 
1.  Creation of fund.  The Compulsive Gambler Rehabilitation 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 and shall adopt rules 
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 17, section 3933, the fund 
may receive money from any source, including grants, gifts, bequests 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 a 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 operate a video gaming terminal, as 
defined in Title 17, section 3911, subsection 16, 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 permit issued by the municipality. 
Sec. 12.  30-A MRSA §5686 is enacted to read: 
§5686.  Public Education Fund 
In order to aid in financing education services, the Public Education Fund is 
established.  Money in the Public Education Fund must be distributed to each 
municipality in proportion to the product of the population of the municipality as defined 
in section 5681, subsection 2, paragraph A multiplied by the property tax burden of the 
municipality as defined in section 5681, subsection 2, paragraph B. 
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 
United States Internal Revenue Code, Section 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10) 
or 501(c)(19).  These sections of the federal tax code refer to charitable organizations, 
civic leagues, 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 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. 
The license specifies the number of terminals allowed on the premises; the maximum 
number of terminals allowed is 5 per premises of a 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 a 5-year phase-in 
period, this computer system must provide continuous online monitoring of video gaming 
terminal activity.  Persons under 21 years of age are not allowed to use the machines. 
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 as follows:  
8% to the State for payment into the Video Gaming Fund, which is established in the bill, 
for administrative expenses, gambling rehabilitation, municipal revenue sharing and 
public education; 2% to the Compulsive Gambler Rehabilitation Fund, which is 
established in the bill; 15% to the General Fund; 10% to the host municipality; and 65% 
to the licensee. 
Licenses are issued for one year.  Applicants for an initial license must pay the actual 
costs of processing the application and performing the background investigation.