An Act To Allow Maine's Harness Racing Industry To Compete with Casino Gaming
Maine Legislature, Session 126, LD 1111
Committee Amendment CA_A_H628 (House)
Amends: 8 MRSA §1011, 8 MRSA §1018, 8 MRSA §1018-A, 8 MRSA §1019

COMMITTEE AMENDMENT "R " 
to H.P. 780, L.D. 1111, Bill, "An Act To 
Allow Maine's Harness Racing Industry To Compete with Casino Gaming" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'PART A 
Sec. A-I. 8 MRSA §1011, sub-§2-A, as amended by PL 2011, c. 417, §2, is 
further amended to read: 
2-A. Persons eligible for casino operator license. 
The board may accept an 
application for a casino operator license to operate slot machines and table games at a 
casino from a commercial track that has been selected as a successful bidder by the 
Department of Administrative and Financial Services pursuant to section 10 18-A or a 
commercial track licensed to operate a slot machine facility on January 1, 2011 for the 
same location where slot machines were operated on January 1, 2011 and any person if 
that person and casino satisfy the following criteria: 
A. The casino is located on a parcel of land in Oxford County that is: 
(1) No less than 50 acres in size; and 
(2) Located not more than: 
(a) Thirty miles from a Level I or Level II trauma center verified as such by 
the American College of Surgeons or successor organization; 
(b) Fifteen miles from the main office of a county sheriff; 
(c) Twenty-five miles from the main office of a state police field troop; 
(d) Thirty miles from an interchange of the interstate highway system; 
(e) Ten miles from a fire station; 
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COMMITTEE AMENDMENT 'A "to H.P. 780, L.D. 1111 
(f) Ten miles from a facility at which harness racing was conducted pursuant 
to a license from the State Harness Racing Commission for the 2009 racing 
year; and 
(g) One-half mile from a state highway as defined in Title 23, section 1903, 
subsection 15. 
For the purposes of this paragraph, distances are determined by measuring along the 
most commonly used roadway, as determined by the Department of Transportation; 
B. The criteria adopted through rulemaking by the board regarding the licensing of 
the operation of slot machines and table games; 
C. The operation of a casino is approved by the voters of the municipality in which 
the casino to be licensed is located in a referendum election or by a vote of the 
municipal officers in the municipality in which the casino is to be licensed and 
located held at any time after October 1, 2009 and on or before December 31, 2011; 
D. The person owns a facility that is within 10 miles of the proposed casino at which 
harness racing was conducted pursuant to a license from the State Harness Racing 
Commission for the 2009 racing year; and 
E. The slot machines and table games are located and operated in the casino. 
Sec. A-2. 8 MRSA §1011, sub-§3, as amended by PL 2011, c. 417, §3, is further 
amended to read: 
3. Requirements for license; continued commercial track licensure. The board 
may not issue a license to operate a slot machine facility or a casino to any person unless 
that person demonstrates compliance with the qualifications set forth in sections 1016 and 
1019. To maintain eligibility for a slot machine operator license or a casino operator 
license under subsection 2-A issued to a commercial track with slot machines or to a 
commercial track selected as a successful bidder by the Department of Administrative 
and Financial Services pursuant to section 1018-A, a licensed commercial track must at 
all times maintain a license to operate a commercial track without lapse, suspension or 
revocation. 
A commercial track that is issued a casino operator license pursuant to 
section 10 18-A must also comply with the requirements of the contract negotiated with 
the Department of Administrative and Financial Services. 
Sec. A-3. 8 MRSA §1018, sub-§l, ~C-l, as amended by PL 2011, c. 417, §4, is 
further amended to read: 
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 of January 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 
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COMMITTEE AMENDMENT'~ "to H,P. 780, L.D. 1111 
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. A casino operator license issued 
pursuant to section 1018-A is not subject to the fees required by this paragraph. 
Sec. A-4. 8 MRSA §1018, sub-§2, as enacted by PL 2003, c. 687, Pt. A, §5 and 
affected by Pt. B, § 11, is amended to read: 
2. Term of license; renewal, renewal fees. All Except for a casino operator license 
issued pursuant to section 10 18-A, all licenses issued by the board under this chapter are 
effective for one year, unless revoked or surrendered pursuant to subchapter 5. Upon 
proper application and payment of the required fees and taxes and in accordance with 
rules adopted by the board, the board may renew a license for an additional year if 
municipal approval has been obtained as provided in section 1012. The board shall 
transfer $25,000 of the renewal fee required by subsection 1, paragraph C to the 
municipality in which the slot machines are operated. 
Sec. A-S. 8 MRSA §1018-A is enacted to read: 
§1018-A. 
Competitive bidding process for one casino operator license for 
commercial track; fee submitted as part of competitive bid 
1. 
Competitive bidding process for one casino operator license; fee. 
Notwithstanding any other provision of this chapter. the Department of Administrative 
and Financial Services may. in accordance with the process for competitive bidding set 
out in Title 5, chapter 155. subchapter I-A. administer a process of competitive bidding 
for the issuance of a casino operator license to an operator of a commercial track for one 
casino to be located in York County or Cumberland County after January 1, 2014. The 
minimum bid for a casino operator license pursuant to this section is $50,000,000. The 
sum provided by the successful bidder under this section must be transferred to the board 
as a license fee when the board issues a casino operator license to the successful bidder as 
determined by the Department of Administrative and Financial Services. 
2. Reimbursement of fee upon licensure of additional facilities. If the board 
issues a slot machine operator license or a casino operator license authorizing the 
operation of more than 5 slot machines at anyone location in the State within one year 
after the issuance of a casino operator license under subsection 1, the board shall 
reimburse 90% of the license fee under subsection 1. The amount of the reimbursement is 
reduced by 10% for each year after the first year in which no other such slot machine 
operator license or casino operator license is issued. No reimbursement may be made 
after 9 years of the date of issuance of the license under subsection 1. 
Sec. A-6. 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 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 
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machine facility. This subsection does not apply to a casino operator license issued 
pursuant to section 10 18-A and it 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. 
If a 
commercial track is initially issued a casino operator license after January 1, 2014, the 
commercial track may relocate to a new location that is not closer to an existing casino 
than is the original location of the track. 
Sec. A-7. 8 MRSA §lOl9, 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, any 
£! proposed casino or slot machine facility may not be issued a license unless it has been 
issued a license pursuant to section 1018-A or 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. 
Sec. A-8. 8 MRS A §lOl9, sub-§8 is enacted to read: 
8. Slot machine and table game operation contingent upon facility construction. 
A casino operator licensed pursuant to section 10 l8-A may not begin operation of slot 
machines and table games prior to the completion of all phases of construction of a resort 
that includes a hotel, spa, pool, dining facility and entertainment venue and provides for a 
view of the racing oval from the dining facility and from the location of slot machines 
within the facility. 
Sec. A-9. 8 MRSA §l020, sub-§3, IJA, as amended by PL 2011, c. 585, §8, is 
further amended to read: 
A. 
Except for slot machines used for training and educational purposes at 
postsecondary institutions as provided by section 1011, subsection 1-B, the total 
number of slot machines registered in the State may not exceed J.;OOO 4,500; and 
Sec. A-lO. 8 MRS A §l036, sub-§2-D is enacted to read: 
2-D. Distribution of table game income and slot machine income from a casino 
issued a license subject to competitive bidding. A casino operator that was issued a 
license subject to competitive bidding pursuant to section 10 18-A shall submit 1 % of the 
gross slot machine income to the Treasurer of State for deposit in the General Fund for 
the administrative expenses of the board. The casino operator shall submit 39% of net 
slot machine income and 16% of net table game income to the board, which shall 
distribute that revenue as follows: 
A. Eleven percent must be forwarded to the Treasurer of State, who shall credit the 
money to the fund established in section 298 to supplement harness racing purses; 
B. Four and one-half percent must be forwarded to the Treasurer of State, who shall 
credit the money to the Agricultural Fair Support Fund established in Title 7, section 
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COMMITTEE AMENDMENT "A" to H.P. 780, L.D. 1111 
C. Four and one-half percent must be forwarded to the Treasurer of State, who shall 
credit the money to the Sire Stakes Fund created in section 281; 
D. Four and one-half percent must be forwarded to the municipality in which the slot 
machines and table games are located; 
E. One and one-half percent must be forwarded to the municipalities that abut the 
municipality in which the slot machines and table games are located. The revenues 
must be paid in equal portions to each municipality; 
F. One percent must be forwarded to the Treasurer of State, who shall credit the 
money to the Fund to Stabilize Off-track Betting Facilities established by section 300. 
The amount distributed under this paragraph must be divided equally among the 
eligible off-track betting facilities except that no off-track betting facility may receive 
more than 25% of the amount forwarded to the board under this paragraph. Any 
revenues remaining after distribution to off-track betting facilities must be credited to 
the General Fund. An off-track betting facility is eligible for a distribution under this 
paragraph if it was licensed by the State Harness Racing Commission to conduct and 
actually conducted wagering operations for a minimum of 250 days during the 
preceding 12-month period in which the first payment to the fund is required. 
G. Seventy-three percent must be deposited to the General Fund for administrative 
expenses of the board in accordance with rules adopted by the board under section 
1003, subsection 1, paragraph B, except that of the amount calculated pursuant to this 
paragraph, $100,000 must be transferred annually to the Gambling Addiction 
Prevention and Treatment Fund established by Title 5, section 20006-B. 
PARTB 
Sec. B-1. Issuance of casino operator license. Notwithstanding the Maine 
Revised Statutes, Title 8, chapter 31, subchapter 2, or any other provision of law to the 
contrary, the Department of Public Safety, Gambling Control Board shall issue a casino 
operator license according to the provisions of the Maine Revised Statutes, Title 8, 
section 10 18-A and this Part to a commercial track that is the best-value bidder selected 
by the Commissioner of Administrative and Financial Services, referred to in this Part as 
"the commissioner." 
1. Solicit bids. In accordance with the competitive bidding process outlined in Title 
5, chapter 155, subchapter I-A, the commissioner shall solicit bids for the operation ofa 
new casino to be located in York County or Cumberland County. The minimum bid for a 
casino operator license pursuant to this section is $50,000,000. 
2. Submission deadline; application fee. A bid submitted pursuant to this section 
must be: 
A. Submitted no later than September 30,2014; and 
B. Accompanied by a nonrefundable application fee of $250,000, which must be 
credited to an Other Special Revenue Funds account within the division of purchases 
within the Department of Administrative and Financial Services to be used to defray 
the costs of managing the application process and for determining the market value 
for a casino operator license as required by this section. 
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COMMITTEE AMENDMENT"~" to H.P. 780, L.D. 1111 
3. Determination of market value for casino operator license. Prior to the award 
of a license to operate a casino subject to the requirements in Title 8, section 1016 and in 
accordance with this section, the commissioner shall contract with an independent 
consulting firm for the purpose of determining the current market value of a casino 
operator license in York County or Cumberland County. The determination of market 
value must take into consideration payments made by existing casino licensees as part of 
a contract to purchase a licensed existing casino or similar contracts between casino 
operators and entities that may have funded efforts to pass legislation authorizing the use 
of slot machines in the State within the past 15 years. 
4. Information provided by bidders. A bid submitted pursuant to this section must 
include the building plans and site designs for the proposed casino and information 
regarding: 
A. The bidder's financial capacity and access to capital for use in maintaining the 
proposed casino; 
B. How the proposed location of the proposed casino would benefit the State; 
C. The bidder's knowledge of the gaming industry or a related field; 
D. The bidder's knowledge of and experience in operating a commercial harness 
racing track; 
E. The impact that the bidder's overall proposal will have on the economy, 
employment and revenues of the host municipality, abutting municipalities, the host 
county and the State; and 
F. The bidder's willingness to construct a destination resort gaming facility with 
harness racing, slot machines and table games. 
A bidder must include with the information submitted pursuant to this subsection a 
statement of whether or not the bidder has been found to have violated any state or 
federal law or rule governing gaming and attesting to the good moral character of the 
bidder and any principal officer of the bidder. 
5. Award of contract. The commissioner shall review the bids submitted pursuant 
to this section, consider the information provided pursuant to subsections 3 and 4 and 
award the contract to the best-value bidder. The commissioner shall give preference to 
any bidder who has demonstrated experience providing entertainment to residents of the 
State through wagering on harness racing. 
6. Contract requirements. As part of the contract awarded pursuant to this Part, the 
bidder must agree according to Title 8, section 1019, subsection 8 to: 
A. Construct a resort that includes a hotel, spa and pool and multiple dining options; 
B. Construct an integrated, 5/8-mile, all-weather-surface harness racing track located 
at the resort; 
C. Include an entertainment venue at the resort; and 
D. Include retail space at the resort.' 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A "to H.P. 780, L.D. 1111 
SUMMARY 
This amendment replaces the bill and is the minority report of the committee. The 
amendment establishes a competitive bidding process for a resort casino in York County 
and Cumberland County that includes a minimum bid of $50,000,000 for a license fee. 
The competitive bidding process is administered by the Department of Administrative 
and Financial Services and requires that preference be given to a bidder who has 
demonstrated experience in providing entertainment to residents of the State through 
wagering on harness races. The amendment provides that a portion of the fee paid for a 
casino operator license subject to the competitive bidding process must be reimbursed by 
the Department of Public Safety, Gambling Control Board if another casino or slot 
machine facility with more than 5 slot machines is licensed within 10 years of the award 
of the casino operator license. The amendment provides for a $250,000 application fee, 
which is to be used to defray the cost of the process and to fund a study to determine the 
fair market value of a resort casino license in York County and Cumberland County. The 
amendment provides that 1 % of the gross slot machine revenue from the casino licensed 
pursuant to competitive bidding will be credited to the General Fund. It further provides 
that the Gambling Control Board must collect 39% of the net slot machine revenue and 
16% of the net table game revenue and distribute it as follows: 
% to supplement 
harness racing purses; 4.5% to the Sire Stakes Fund; 4.5% to the Agricultural Fair 
Support Fund; 4.5% to the host municipality; 1.5% divided among abutting 
municipalities; 1 % to the Fund to Stabilize Off-track Betting Facilities; and 73% to the 
General Fund. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 02/14/14 
;lJ;?ac 
LD 1111 
LR 1490(02) 
An Act To Allow Maine's Harness Racing Industry To Compete with Casino Gaming 
Fiscal Note for Bill as Amended by Committee Amendment ·fl· C i-f -a) 
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 establishes a competitive bidding process for a resort casino that includes a minimum bid of 
$50,000,000 for a license fee. Issuance of a license is contingent upon award of a bid. The facility awarded the 
license would be taxed at the rate of I % of gross slot machine income, 39% of net slot income and 16% of net table 
game income. 
Presented below is an estimate of the potential revenues that may be generated from the new facility and the 
subsequent distribution of those rev~nues. This fiscal note assumes a total of750 slot machines and 15 table games, 
generating annual revenue of $15,521 ,056 for the State's General Fund and $1,996,479 for various other funds. The 
Gambling Control Board, Other Special Revenue Funds account would also receive license fees of $483,500 in the 
first year and $230,500 for license renewals in subsequent years. The Department of Financial and Administrative 
Services would receive a one-time fee of $250,000 to cover the application process and determination of the market 
value for a casino operator license. Annual state costs associated with 5 inspectors, an auditor and other related 
expenses are estimated to be $481,478. 
This legislation could have a significant impact on revenues generated by the Hollywood and Oxford Casinos. An 
assessment of the impact has not been done at this time. 
Summary of Casino 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 - 39% 
Operator Share of Net Income - 61% 
LR1490(02) - Fiscal Note - Page 1 of2 
Annual 
Estimate 
$355,875,000 
$319,219,875 
$33,096,375 
$12,907,586 
$20,188,789 
Net Table Game Income 
Share of Net Table Game Income for Distribution - 16% 
Operator Share of Net Table Game Income - 84% 
State Revenues by Fund 
General Fund - 1 % of gross slot income 
General Fund - Net slot machine and table game income 
General Fund - Hollywood Casino distribution previously credited to Fund to Encourage 
Racing at Maine's Commercial Tracks I 
Total General Fund Revenue 
Gambling Control Board - License Fees ($483,500 to Board and $250,000 to DAFS the 1st year) 
Purse Supplements 
Sire Stakes Fund 
Fund to Stabilize Off-Track Betting 
Agricultural Fair Support Fund 
Municipality 
Fund to Encourage Racing at Maine's Commercial Tracks I 
Abutting 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 
$6,570,000 
$1,051,200 
$5,518,800 
Annual 
Estimate 
$3,558,750 
$10,189,914 
$1,772,392 
$15,521,056 
$230,500 
$1,535,466 
$628,145 
$139,588 
$628,145 
$628,145 
($1,772,392) 
$209,382 
$2,226,979 
$17,748,035 
$250,978 
$230,500 
$481,478 
I Under this legislation, if a commercial track is issued a casino operator license, the amount distributed from 
Hollywood Casino to the Fund to Encourage Racing at Maine's Commercial Tracks would then be 
deposited into the General Fund. 
LR1490(02) - Fiscal Note - Page 2 of2