An Act To Permit Video Gaming for Money Conducted by Nonprofit Organizations
Maine Legislature, Session 125, LD 1469
Committee Amendment CA_A_H887 (House)
Amends: 8 MRSA §1001, 8 MRSA §1011, 8 MRSA §1016, 8 MRSA §1017, 8 MRSA §1018, 8 MRSA §1019, 8 MRSA §1020, 8 MRSA §1031-A, 8 MRSA §1035-B, 8 MRSA §1036

COMMITTEE AMENDMENT "A" to H.P. lO78, L.D. 1469, Bill, "An Act To 
Permit Video Gaming for Money Conducted by Nonprofit Organizations" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Increase Gaming Opportunities for Charitable Fraternal and Veterans' 
Organizations' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 8 MRSA §1001, sub-§5-C is enacted to read: 
5-C. 
Charitable nonprofit organization. 
"Charitable nonprofit organization" 
means a fraternal beneficiary society, order or association exempt from taxation under the 
United States Internal Revenue Code, Section 501(c)(8), a domestic fraternal society, 
order or association exempt from taxation under the United States Internal Revenue 
Code, Section 501(c)(10) or a veterans' organization exempt from taxation under the 
United States ~ternal Revenue Code, Section 501(c)(19) that: 
A. As of October 1, 2012 has been conducting gaming under Title 17, chapter 13 -A 
or 62 for at least 2 consecutive years; and 
B. Has owned or leased for a minimum of 2 consecutive years the building that 
serves as the primary location of the organization's administrative operations and 
where the slot machine will be operated. 
Sec. 2. 8 MRSA §1011, sub-§2-B is enacted to read: 
2-B. 
Charitable nonprofit organizations eligible for slot machine operator 
license. Beginning October 1, 2013, the board may accept an application for a license to 
operate a slot machine from a charitable nonprofit organization located in the State. The 
application process is governed by this subsection. 
A. The organization shall submit an application demonstrating that it is a charitable 
nonprofit organization eligible for a license to operate a slot machine. A refundable 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT 'A" to H.P. 1078, L.D. 1469 
administrative deposit of $5,000 must accompany the application. The organization 
must: 
(1) Be able to demonstrate that a majority of the revenue, after deductions for 
reasonable expenses, generated from gaming conducted under Title 17, chapter 
13-A or 62 has been used for the charitable purpose of the organization; 
(2) Be able to demonstrate that the building in which the slot machine will be 
operated is located in a municipality that has approved, either by the voters of the 
municipality or the municipal officers, the operation of slot machines; 
(3) Be able to demonstrate that it has at least $2,000 in cash reserved in a 
segregated account for each slot machine the organization intends to operate if 
issued a license; and 
(4) Meet other criteria established by the board pursuant to rule regarding the 
licensing and operation of slot machines, including, but not limited to, a 
requirement that the organization identify and submit to the board a list of the 
charitable purposes for which the revenue from the operation of the slot machine 
will be used. 
B. The board may not issue a license to a charitable nonprofit organization unless 
that organization demonstrates compliance with the qualifications and requirements 
of sections 1016 and 1019 and demonstrates that there is no other electronic video 
machine or similar machine, as defined by Title 17, section 1831, on the premises 
where the slot machine will be operated. As used in this paragraph, "electronic video 
machine or similar machine" does not include a machine that dispenses preprinted 
lucky seven or similar sealed tickets that the charitable nonprofit organization is 
licensed to sell under Title 17, chapter 62. 
C. If at any time the number of applications received by the board exceeds the 
number of slot machine licenses that may be granted pursuant to section 1020, 
subsection 3, paragraph D, the board may use a lottery system, as developed by rule, 
to determine the order in which the applications will be considered. 
D. Prior to October 1, 2013, a charitable nonprofit organization that seeks to obtain 
a license to operate a slot machine may file a declaration of intent with the board, 
accompanied by a $250 fee. The declaration of intent must include the following: 
(1) 
The name and address of the treasurer of the charitable nonprofit 
organization and the name of at least one official on the governing board of the 
charitable nonprofit organization who will submit the application to the board; 
(2) The deed, rental agreement or lease agreement for the premises where the 
charitable nonprofit organization intends to operate the slot machine; 
(3) State and federal tax returns of the charitable nonprofit organization for the 
immediately prior 2 calendar years; and 
(4) Copies of disposition of funds reports from the operation of games of chance 
or beano conducted by the charitable nonprofit organization for the immediately 
prior 2 calendar years. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ,A" to H.P. 1078, L.D. 1469 
This paragraph is repealed October 1, 2013. 
Sec. 3. 8 MRSA §1011, sub-§4, as amended by PL 2005, c. 663, §6, is further 
amended to read: 
4. Requirement for license; agreement with municipality where slot machines 
are located. A Except for operators who are charitable nonprofit organizations, 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. 
Sec. 4. 8 MRSA §1016, sub-§I, ~, as amended by IB 2009, c. 2, §33, is further 
amended to read: 
D. 
In the case of a person who is not a charitable nonprofit organization applying to 
be a slot machine operator or casino operator, the person has sufficient knowledge 
and experience in the business of operating slot machines or casinos to effectively 
operate the slot machine facilities or casino to which the license application relates in 
accordance with this chapter and the rules and standards adopted under this chapter; 
Sec. 5. 8 MRSA §1016, sub-§3, as enacted by PL 2003, c. 687, Pt. A, §5 and 
affected by Pt. B, § 11, is amended to read: 
3. Applicant other than individual. If the person, other than a charitable nonprofit 
organization, required to meet the minimum qualifications and suitability requirements 
specified in subsections 1 and 2 is a business organization, the key executives, directors, 
officers, partners, shareholders, creditors, owners and associates of the person must meet 
the suitability requirements specified in subsection 2. 
For a charitable nonprofit 
organization required to meet the minimum qualifications and suitability requirements 
specified in subsections 1 and 2, at least 2 officers of the governing board of the 
organization, one of whom must be the treasurer, must meet the suitability requirements 
specified in subsection 2. 
Sec. 6. 8 MRSA §1017, sub-§I-A is enacted to read: 
I-A. 
Exception for charitable nonprofit organization. 
Notwithstanding the 
requirements of subsection 1 regarding for whom the information must be supplied, an 
application submitted by a charitable nonprofit organization must include the information 
required by subsection 1 for at least one officer with decision-making authority in the 
organization and the treasurer of the organization. 
Sec. 7. 8 MRSA §1018, sub-§I, as amended by PL 2011, c. 417, §4, is further 
amended to read: 
1. Fees. The application fee for a license and the annual fee for a registered slot 
machine or table game under this chapter are as set out in this subsection. 
A. The initial registration fee for a registered slot machine is $100. The annual 
renewal fee is $100 for each registered slot machine. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ,A " 
to H.P. 1078, L.D. 1469 
A-I. The initial registration fee for a registered table game is $100. The annual 
renewal fee is $100 for each registered table game. 
B. The initial application fee for a slot machine distributor license is $200,000. The 
annual renewal fee is $75,000. 
B-1. The initial application fee for a table game distributor license is $5,000. The 
annual renewal fee is $1,000. 
C. +he Except as provided in paragraph C-2, the initial application fee for a slot 
machine operator license is $200,000~, and the annual renewal fee is $75,000 
plus an amount, set by rules of the board, equal to the cost to the board of licensing 
slot machine operators and determined by dividing the costs of administering the slot 
machine operator licenses by the total number of slot machine operators licensed by 
the board. 
C-l. The initial application fee for a casino operator license is $225,000, except that 
the initial application fee for an applicant that is a commercial track that was licensed 
to operate slot machines as ofJanuary 1,2011 is $25,000. The annual renewal fee is 
$80,000 plus an amount, set by rules of the board, equal to the cost to the board of 
licensing casino operators and determined by dividing the costs of administering the 
casino operator licenses by the total number of casino operators licensed by the 
board. In addition, a casino operator shall pay an initial gaming table fee of $100,000 
for the privilege to operate each gaming table for a period of 20 years as long as the 
casino operator is licensed. Each gaming table is also subject to an annual gaming 
table renewal fee of $1,000. The gaming table fees authorize the casino operator to 
conduct any authorized table game at the gaming table during the 20-year period. A 
casino licensed in accordance with section 1011, subsection 2-A, paragraph A is not 
required to pay the gaming table fees until after one calendar year of table game 
operation. Fees collected in accordance with this paragraph must be deposited to the 
Gambling Control Board administrative expenses Other Special Revenue Funds 
account, which is a nonlapsing dedicated account. 
C-2. The initial application fee for a slot machine operator license for a charitable 
nonprofit organization is $1,000. The annual renewal fee is $350. 
D. The annual application fee for a license for a gambling services vendor is $2,000. 
E. The initial application fee for an employee license under section 1015 is $250. 
The annual renewal fee is $25. 
In addition to the application fee for a license or annual fee for a registered slot machine 
or table game, the board may charge a one-time application fee for a license or 
registration listed in paragraphs A to C-1, D and E in an amount equal to the projected 
cost of processing the application and performing any background investigations. If the 
actual cost exceeds the projected cost, an additional fee may be charged to meet the actual 
cost. If the projected cost exceeds the actual cost, the difference may be refunded to the 
applicant. All fees collected pursuant to this section must be deposited directly to the 
General Fund, except that $25,000 of the annual renewal fee for a slot machine operator 
or casino operator must be deposited to the Gross Slot Income Other Special Revenue 
Fund account within the Gambling Control Board to be transferred to the municipality in 
which the slot machine facility or casino is operated, in accordance with subsection 2. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT·A "to H.P. 1078, L.D. 1469 
All application and registration fees are nonrefundable and are due upon submission of 
the application. 
Sec. 8. 8 MRSA §1019, sub-§6, as amended by PL 2011, c. 417, §5, is further 
amended to read: 
6. Proximity of licensed casinos and slot machine facilities. A Except for a 
license issued to a charitable nonprofit organization to operate a slot machine, a casino 
operator license or slot machine operator license may not be issued under this chapter to 
operate any casino or slot machine facility located within 100 miles of a licensed casino 
or slot machine facility. This subsection does not prohibit a commercial track that was 
licensed to operate slot machines on January 1, 2011 from obtaining a casino operator 
license for the same facility where slot machines were operated as of January 1,2011. 
Sec. 9. 8 MRSA §1019, sub-§7, as amended by PL 2011, c. 417, §6, is further 
amended to read: 
7. Statewide and county referendum; municipal vote. After January 1,2011, fffiJ' 
~ proposed casino or slot machine facility may not be issued a license unless it has been 
approved by a statewide referendum vote and a vote of the municipal officers or 
municipality in which the casino or slot machine facility is to be located, except that a 
commercial track licensed to operate slot machines on January 1,2011 is only required, 
as a condition to obtain a casino license, to receive approval to operate a casino by means 
of a referendum of the voters of the county in which the commercial track is located. 
This subsection does not apply to the issuance of a license to a charitable nonprofit 
organization to operate a slot machine under section 1011, subsection 2-B. 
Sec. 10. 8 MRS A §1019, sub-§§8 and 9 are enacted to read: 
8. 
Maintenance contract required for charitable nonprofit organizations 
licensed to operate slot machines. A charitable nonprofit organization licensed to 
operate slot machines in accordance with this chapter shall enter into a contract with a 
licensed slot machine distributor or, with approval of the board, a 3rd party for the 
maintenance of slot machines. 
9. Segregated account for net slot machine income distribution by charitable 
nonprofit organizations. In accordance with rules established by the board, a charitable 
nonprofit organization licensed in accordance with this chapter shall establish a 
segregated account for the deposit of net slot machine income as required by section 
1036, subsection 2-D. The board may require that the segregated account for the deposit 
of net slot machine income include authorization for the board to make withdrawals to 
ensure compliance with the distributions required by section 1036, subsection 2-D. 
Sec. 11. 8 MRSA §1020, sub-§2, ,G, as enacted by PL 2003, c. 687, Pt. A, §5 
and affected by Pt. B, § 11, is amended to read: 
G. 
Must have a minimum average daily aggregate payback percentage of 89% 
computed for all slot machines operated at each slot machine facility on a weekly 
basis. A slot machine operated by a charitable nonprofit organization must have a 
minimum average daily aggregate payback percentage of 80% computed for all slot 
machines operated at the facility of each charitable nonprofit organization on a 
weekly basis; and 
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COMMITTEE AMENDMENT·A" to H.P. 1078, L.D. 1469 
Sec. 12. 8 MRSA §1020, sub-§3, as amended by IB 2009, c. 2, §37, is further 
amended to read: 
3. Limits on total slot machines. The board shall determine the number of slot 
machines to be registered in the State. The board shall make this determination based 
upon the minimum net slot machine income, when distributed pursuant to section 1036, 
necessary to maintain the harness horse racing industry in this State, except that: 
A. The total number of slot machines registered in the State may not exceed ~ 
3,250; and 
B. A slot machine operator may not operate more than 1,500 slot machines at any 
one commercial track and a casino operator may not operate more than 1,500 slot 
machines at a casin07~ 
C. A charitable nonprofit organization licensed under this chapter may not operate 
more than 5 slot machines on the licensed premises of that charitable nonprofit 
organization; and 
D. 
Until October 1, 2014, the total number of slot machines operated by all 
charitable nonprofit organizations licensed in accordance with this chapter may not 
exceed 100. Beginning October 1, 2014, the total number of slot machines operated 
by all charitable nonprofit organizations licensed in accordance with this chapter may 
not exceed 250. 
Sec. 13. 8 MRSA §1031-A is enacted to read: 
§1031-A. Charitable nonprofit organizations; age limit on slot machine use; play 
limited to members and guests; access by minors; credit prohibited 
Notwithstanding the provisions of section 1031, the following provisions apply to 
slot machines operated by a charitable nonprofit organization. 
1. Minimum age. A charitable nonprofit organization slot machine operator may 
not permit a person under 21 years of age to playa slot machine. 
2. Play limited to members and guests. When slot machines are operated under 
this section, there must be one member of the charitable nonprofit organization present 
for every 2 nonmembers present. 
3. Placement of slot machines. A charitable nonprofit organization slot machine 
operator shall place slot machines in an area where persons under 21 years of age are 
prohibited except for occasional events when slot machines are not operational. 
4. Credit prohibited. A charitable nonprofit organization slot machine operator 
may not allow the use of a credit card or debit card by a person to playa slot machine. 
Sec. 14. 8 MRSA §1035-B is enacted to read: 
§1035-B. Location of slot machines operated by charitable nonprofit organizations 
Notwithstanding section 1035, a slot machine operated by a charitable nonprofit 
organization may be located only on the premises of that charitable nonprofit 
organization licensed in accordance with this chapter. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT·A "to H.P. 1078, L.D. 1469 
Sec. 15. 8 MRSA §1036, sub-§2-D is enacted to read: 
2-D. 
Distribution of slot machine income from a charitable nonprofit 
oreanization. A charitable nonprofit organization slot machine operator shall collect and 
distribute 30% of net slot machine revenue from slot machines operated by the charitable 
nonprofit organization to the board for distribution by the board as follows: 
A. Ten percent of the net slot machine income must be deposited to the Gambling 
Control Board administrative expenses Other Special Revenue Funds account, which 
is a nonlapsing dedicated account; 
B. Eight percent of the net slot machine income must be deposited to the General 
Fund; 
C. Two percent of the net slot machine income must be credited to the Gambling 
Addiction Prevention and Treatment Fund established by Title 5, section 20006-B; 
and 
D. Ten percent of the net slot machine income must be forwarded directly to the 
municipality where the slot machines are located. 
Net revenue from the operation of slot machines by charitable nonprofit organizations 
must be used to support the charitable purposes identified to the board except the net 
revenue may be used to pay compensation and defray expenses in the same manner as 
prescribed for revenue from games of chance by Title 17, section 1838.' 
SUMMARY 
This amendment replaces the bill and is the majority report of the committee. This 
amendment permits the Gambling Control Board, after October 1, 2013, to issue a license 
to a charitable nonprofit organization that is a fraternal organization or a veterans' 
organization that is tax-exempt under the federal Internal Revenue Code to operate up to 
slot machines at a facility that is owned or leased by the organization and serves as its 
primary headquarters for fulfilling its charitable mission. The organization must be able 
to demonstrate that it has a cash reserve of $2,000 for each machine the organization 
intends to operate. An organization that wishes to apply prior to October 1, 2013 may file 
a declaration of intent to apply with the Gambling Control Board. An application must 
include a refundable $5,000 deposit. 
The initial application fee for a slot machine 
operator license under this amendment is $1,000, and the annual renewal fee is $350. A 
slot machine operated by a charitable nonprofit organization is subject to the same central 
site monitoring that applies to casinos and slot machine facilities at harness racing tracks. 
The total number of slot machines available to be operated by nonprofit organizations 
statewide is 250. Ten percent of the net slot machine income is required to be deposited 
directly with the Gambling Control Board for administrative expenses and 8% goes 
directly to the General Fund. Another 10% goes to the host municipality and 2% is 
dedicated to gambling addiction prevention and treatment. The board may require a 
charitable nonprofit organization that is licensed to operate slot machines to establish a 
separate account, from which the board may withdraw funds, to distribute the net revenue 
percentages. The remaining revenue generated from the slot machines must be used to 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to H.P. 1078, L.D. 1469 
support the charitable purposes of the fraternal organization or veterans' servIce 
organization. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
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Approved: 03/31112 
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LD 1469 
LR 1684(02) 
An Act To Permit Video Gaming for Money Conducted by Nonprofit Organizations 
Fiscal Note for Bill as Amended by Committee Amendment ,~ " {~- ~8" ~ 
Committee: Veterans and Legal Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
Contingent future biennium cost increase - General Fund 
Contingent future biennium cost increase - Other Special Revenue Funds 
Contingent current biennium revenue increase - General Fund 
Contingent current biennium revenue increase - Other Special Revenue Funds 
Fiscal Detail and Notes 
This legislation allows the Gambling Control Board to accept applications for slot machine operator licenses, 
beginning October 1, 2013, from charitable nonprofit organizations. Documentation of approval of the voters of the 
municipality must be submitted with the application. The Board may license up to 100 slot machines during the first 
year, with 250 total slot machines allowed. 
Presented below is an estimate of the potential revenues that may be generated from new slot machine facilities and 
the subsequent distribution of those revenues. This fiscal note assumes 20 charitable nonprofit organizations would 
be licensed with a total of 100 slot machines, generating annual revenue of $62,208 for the State's General Fund and 
$188,072 for various other funds. The Gambling Control Board, Other Special Revenue Funds account would also 
receive license fees of $30,000 in the first year and $17,000 for license renewals in subsequent years. Annual state 
costs associated with an Inspector, an Auditor and other related expenses are estimated to be $147,860. 
Summary o[Slot Machine Facility Revenue 
Gross Slot Income (total value of money, tokens, credits, other value used to playa slot machine) 
Player Payback - Slot Income 
Net Slot Income 
Share of Net Income for Distribution - 30% 
Operator Share of Net Income -70% 
State Revenues by Fund 
LR1684(02) - Fiscal Note - Page 1 of2 
Annual 
Estimate 
$4,320,000 
$3,542,400 
$777,600 
$233,280 
$544,320 
Annual 
Estimate 
General Fund - Slot Machines 
Total General Fund Revenue 
Gambling Control Board - Slot Machines 
Gambling Control Board - License Fees ($30,000 the 1st year) 
Subtotal 
Gambling Addiction Prevention and Treatment Fund 
Municipalities 
Total Other Special Revenue Funds Revenue 
Total Revenue All Funds 
Summary of Expenditure Impacts to the State 
General Fund 
- Public Safety 
Other Special Revenue Funds 
- Public Safety 
Total Expenditures 
LR1684(02) - Fiscal Note - Page 2 of2 
$62,208 
$62,208 
$77,760 
$17,000 
$94,760 
$15,552 
$77,760 
$188,072 
$250,280 
$53,100 
$94,760 
$147,860