An Act To Establish a Competitive Bid Process for Future Casinos and Slot Machine Facilities
Maine Legislature, Session 125, LD 1897
Committee: Veterans and Legal Affairs
Sponsors: BEAULIEU, FARNHAM
Amends: 8 MRSA §1011, 8 MRSA §1011-A

Legislative Document 
No. 1897 
H.P. 1400 
House of Representatives, March 22, 2012 
An Act To Establish a Competitive Bid Process for Future Casinos 
and Slot Machine Facilities 
(AFTER DEADLINE) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205. 
Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative BEAULIEU of Auburn. 
Cosponsored by Senator FARNHAM of Penobscot. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  8 MRSA §1011, sub-§2-B is enacted to read: 
2-B.  Licenses for a slot machine facility or casino issued after September 1, 
2012.  After September 1, 2012, the board may not accept any application for an initial 
license to operate a slot machine facility or casino, or any other gambling facility for 
which the board has licensing authority where slot machines or table games may be 
operated, unless the applicant has been selected by a process of competitive bidding as 
prescribed in section 1011-A. 
Sec. 2.  8 MRSA §1011-A is enacted to read: 
§1011-A.  Privilege to submit application for a license to operate subject to 
competitive bid 
After September 1, 2012, a person is eligible to submit an application to the board for 
a license to operate a slot machine facility, casino or other gambling facility under the 
licensing authority of the board where slot machines or table games will be operated if 
that person has been determined the successful bidder for the privilege to operate such a 
facility in accordance with the minimum standards prescribed by this section.  Upon 
notification from the board of the enactment of legislation authorizing the board to issue a 
license for the operation of a slot machine facility, casino or gambling facility, the 
Commissioner of Administrative and Financial Services is authorized to award the right 
to submit an application to the board using the competitive bid process as prescribed by 
Title 5, chapter 155 and further prescribed by this section.  Notwithstanding Title 5, 
section 1825-B, subsection 2, the commissioner is prohibited from waiving the 
competitive bidding requirement. 
1.  Privilege fee.  The nonrefundable privilege fee for the right to submit an 
application to the board is $250,000, which must be deposited into the Gross Slot Income 
Other Special Revenue Funds Account within the board. 
2.  Minimum cash bid.  The minimum cash bid for the right to submit an application 
to the board is $5,000,000.  The minimum cash bid includes any initial application fee 
that is required for an operator license under section 1018.  An amount equal to the initial 
application fee required under section 1018 must be deposited into the Gross Slot Income 
Other Special Revenue Funds Account within the board. 
3.  Additional requirements.  In addition to the minimum cash bid under subsection 
2, a proposal for the right to submit an application to the board must include a proposal to 
share a portion of the net income from the operation of slot machines and table games 
with the General Fund.  The proposal must also include a commitment to establish a site 
for the gambling facility in a location that provides for hotel accommodations with a 
minimum of 150 rooms, conference facilities to accommodate a minimum of 300 persons 
and an entertainment venue with a minimum seating capacity of 500 persons.  A proposal 
must include a business plan for the gambling facility and additional accommodations 
that includes an analysis of the economic effect of the gambling facility and additional 
accommodation on the state economy and the local economy of the gambling facility's 
location. 
4.  Successful bidder.  The privilege to submit an application to the board must be 
awarded to the bidder whose proposal provides the greatest economic benefit to the 
General Fund of the State and the local economy where the gambling facility is to be 
located. 
5.  Rules.  The Commissioner of Administrative and Financial Services is authorized 
to adopt rules to facilitate the competitive bid process for the privilege to submit an 
application to the board under this section.  Rules adopted in accordance with this 
subsection are major substantive rules as prescribed by Title 5, chapter 375, subchapter 
2-A. 
6.  Limitation.  This section may not be construed to authorize the Commissioner of 
Administrative and Financial Services to issue a request for proposals to bid on the 
privilege to submit an application to the board to operate a slot machine facility, casino or 
other gambling facility where slot machines or table games will be operated without 
notification from the board that legislation has been enacted authorizing a license to 
operate a casino, slot machine facility or other gambling facility where slot machines or 
table games will be operated. 
Sec. 3.  Report.  By March 15, 2013, the Commissioner of Administrative and 
Financial Services shall report to the joint standing committee of the Legislature having 
jurisdiction over casino matters.  The report must include a draft of a request for 
proposals that would be issued based on the parameters established by this Act if a 
license for a slot machine facility, casino or other gambling facility under the licensing 
authority of the Department of Public Safety, Gambling Control Board became available.  
The report must also include a description of the process that would be followed in 
considering bids received for the privilege to submit an application for a slot machine 
facility, casino or other gambling facility under the licensing authority of the Gambling 
Control Board. 
SUMMARY 
This bill provides that, after September 1, 2012, the Department of Public Safety, 
Gambling Control Board may not accept an application for an initial license to operate a 
slot machine facility, casino or any other gambling facility for which the board has 
licensing authority where slot machines or table games may be operated unless the 
applicant has been selected by a process of competitive bidding.  Upon notification from 
the board of the enactment of legislation authorizing the board to issue a license for the 
operation of a slot machine facility, casino or gambling facility, the Commissioner of 
Administrative and Financial Services is authorized to award the right to submit an 
application to the board using a competitive bid process that includes a number of 
requirements specified in the bill.  By March 15, 2013, the commissioner is required to 
report to the joint standing committee of the Legislature having jurisdiction over casino 
matters a draft of a request for proposals that would be issued based on the parameters 
established by the bill if a license for a slot machine facility, casino or other gambling 
facility under the licensing authority of the board became available.