An Act To Increase Gaming Opportunities for Charitable Fraternal and Veterans' Organizations
Maine Legislature, Session 126, LD 0031
Committee Amendment CA_B_S400 (Senate)
Amends: 5 MRSA §20006-B, 8 MRSA §1011, 8 MRSA §1016, 8 MRSA §1020

COMMITTEE AMENDMENT "~ "to S.P. 20, L.D. 31, Bill, "An Act To Increase 
Gaming Opportunities for Charitable Fraternal and Veterans' Organizations" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Increase Gaming Opportunities for Off-track Betting Facilities, 
Charitable Nonprofit Organizations and Veterans' Organizations' 
Amend the bill by inserting after the enacting clause the following: 
'Sec. 1. 5 MRSA §20006-B, sub-§l, as amended by PL 2011, c. 657, Pt. AA, 
§24, is further amended to read: 
1. Fund established. The Gambling Addiction Prevention and Treatment Fund, 
referred to in this section as "the fund," is established for the purpose of supporting 
gambling addiction analysis, prevention and treatment to be administered by the 
department. The fund is a dedicated, nonlapsing fund into which payments are received 
in accordance with Title 8, section 1036, subsection subsections 2, 2-D and 2-E.' 
Amend the bill by striking out all of sections 2 and 3 and inserting the following: 
'Sec. 2. 8 MRS A §1001, sub-§13-B is enacted to read: 
13-B. Eligible organization. "Eligible organization" means an organization that: 
A. 
Is a charitable nonprofit organization that, as of Octoberl, 2013, has been 
conducting gaming under Title 17, chapter 13-A or 62 for at least 2 consecutive years 
and has owned or leased for a minimum of 2 consecutive years the premises that 
serve as the primary location of the organization's administrative operations, which 
are located in a municipality in which the voters have approved in a referendum 
election the operation of slot machines by a charitable nonprofit organization; or 
B. Is an off-track betting facility licensed under section 275-D and was in operation 
as ofJanuary 1, 2013. 
Sec. 3. 8 MRSA §1011, sub-§2-C is enacted to read: 
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COMMITTEE AMENDMENT" B" to S.P. 20, L.D. 31 
2-C. Organizations eligible for slot machine operator license. Beginning January 
1, 2015, the board may accept an application for a license to operate slot machines from 
an eligible organization. The application process is governed by this subsection. 
A. The eligible organization shall submit an application demonstrating that it is a 
licensed off-track betting facility or charitable nonprofit organization eligible for a 
license to operate slot machines. A refundable administrative deposit of $5,000 must 
accompany the application. The eligible organization must: 
(1) If the eligible organization is a charitable nonprofit organization, demonstrate 
that a maiority of the revenue, after deductions for reasonable expenses, 
generated from gaming conducted under Title 17, chapter l3-A or 62 has been 
used for the charitable purpose of the eligible organization; 
(2) If the eligible organization is a charitable nonprofit organization, demonstrate 
that the premises on which the slot machines will be operated have been owned 
or leased for at least 2 consecutive years and serve as the primary location of the 
organization's administrative operations and are located in a municipality in 
which the voters have approved in a referendum election the operation of slot 
machines by a charitable nonprofit organization; 
(3) Demonstrate that it has at least $2,000 in cash reserved in a segregated 
account for each slot machine the eligible 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 eligible organization identify and submit to the board a list 
of the charitable purposes for which the revenue from the operation of the slot 
machines will be used if the operator is a charitable nonprofit organization. 
B. The board may not issue a license to an eligible organization unless that eligible 
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 machines 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 eligible 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 E, 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 January 1, 2015, an eligible organization that seeks to obtain a license to 
operate slot machines 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 eligible organization and, for a charitable 
nonprofit organization, the name of the organization's treasurer and at least one 
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COMMITTEE AMENDMENT "6" to S.P. 20, L.D. 31 
official on the governing board of the eligible organization who will submit the 
application to the board; 
(2) The deed, rental agreement or lease agreement for the premises where the 
eligible organization intends to operate the slot machine; 
(3) State and federal tax returns of the eligible organization for the immediately 
prior 2 calendar years; and 
(4) For a charitable nonprofit organization, copies of disposition of funds reports 
from the operation of games of chance or beano conducted by the eligible 
organization for the immediately prior 2 calendar years. 
This paragraph is repealed January 1, 2015.' 
Amend the bill by striking out all of sections 5 and 6 and inserting the following: 
'Sec. 5. 8 MRSA §1016, sub-§l, ~, as amended by PL 2013, c. 212, §15, is 
further amended to read: 
D. In the case of a person who is not an eligible organization that is 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; and 
Sec. 6. 8 MRS A §1016, sub-§3, as amended by PL 2013, c. 212, §21, is further 
amended to read: 
3. 
Applicant other than individual. 
If the person, other than an eligible 
organization that is a charitable nonprofit organization, required to meet the qualifications 
and suitability requirements specified in subsections 1, I-A 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 an eligible organization that is a charitable nonprofit organization 
required to meet the qualifications and suitability requirements specified in subsections 1, 
I-A and 2, at least 2 officers of the governing board of the eligible organization, of whom 
one is the treasurer, must meet the suitability requirements specified in subsection 2.' 
Amend the bill in section 7 in subsection I-A in the 3rd line (page 3, line 20 in L.D.) 
by inserting after the following: "organization" the following: 'that is a charitable 
nonprofit organization' 
Amend the bill in section 11 in subsection 9 in the 5th line (page 5, line 24 in L.D.) 
by striking out the following: "subsection 2-D" and inserting the following: 'subsections 
2-D and 2-E' 
Amend the bill in section 11 in subsection 9 in the last line (page 5, line 26 in L.D.) 
by striking out the following: "subsection 2-D" and inserting the following: 'subsections 
2-D and 2-E' 
Amend the bill by striking out all of section 12 and inserting the following: 
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COMMITTEE AMENDMENT"~ "to S.P. 20, L.D. 31 
'Sec. 12. 8 MRSA §1020, sub-§2, ~G, as amended by PL 2013, c. 212, §24, is 
further 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 or casino on a 
quarterly basis. A slot machine operated by an eligible organization must have a 
minimum average daily aggregate payback percentage of 80% computed for all slot 
machines operated on the premises of each eligible organization on a quarterly basis; 
and' 
Amend the bill in section 13 in subsection 3 by striking out all of paragraphs C and D 
(page 6, lines 7 to 12 in L.D.) and inserting the following: 
'e. An eligible organization that is an off-track betting facility may operate up to 50 
slot machines; 
D. An eligible organization that is a charitable nonprofit organization licensed in 
accordance with this chapter may not operate more than 5 slot machines on the 
licensed premises of that eligible organization; and 
E. Until January 1, 2015, the total number of slot machines operated by all eligible 
organizations licensed in accordance with this chapter may not exceed 100. 
Beginning January 1, 2015, the total number of slot machines operated by all eligible 
organizations licensed in accordance with this chapter may not exceed 250.' 
Amend the bill in section 14 in § 1 031-A in subsection 2 in the first line (page 6, line 
in L.D.) by striking out the following: "When" and inserting the following: 'Except for 
slot machines operated by an off-track betting facility, when' 
Amend the bill in section 16 in subsection 2-D in the first line in the headnote (page 
7, line 4 in L.D.) by striking out the following: "eligible" and inserting the following: 
'charitable nonprofit' 
Amend the bill in section 16 in subsection 2-D in the 2nd line (page 7, line 5 in L.D.) 
by inserting after the following: "organization" the following: 'that is a charitable 
nonprofit organization' 
Amend the bill by adding after section 16 the following: 
'Sec. 17. 8 MRS A §1036, sub-§2-E is enacted to read: 
2-E. Distribution of slot machine income from off-track betting facilities. An 
eligible organization that is an off-track betting facility shall collect and distribute 45% of 
net slot machine income from slot machines operated by the eligible organization to the 
board for distribution by the board as follows: 
A. One 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. Five percent of the net slot machine income must be deposited to the General 
Fund; 
C. One 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; 
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COMMITTEE AMENDMENT" 6 "to S.P. 20, L.D. 31 
D. Five percent of the net slot machine income must be forwarded directly to the 
municipality where the slot machines are located; and 
E. Thirty-three percent of the net slot machine income must be deposited into the 
Coordinated Veterans Assistance Fund established in Title 37-B, section 514.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment, which is the minority report of the committee, adds off-track 
betting facilities in operation as of January 1, 2013 to the definition of "eligible 
organization." Under the bill, an eligible organization is authorized to operate up to 5 slot 
machines. The amendment provides that an eligible organization that is a charitable 
nonprofit organization may operate up to 5 slot machines and that an eligible organization 
that is an off-track betting facility may operate as many as 50 slot machines. The 
amendment also requires a distribution of 45% of net revenues from slot machines 
operated by an off-track betting facility, which includes 33% to be deposited into the 
Coordinated Veterans Assistance Fund. The amendment also includes technical changes 
to the bill to reflect changes made by Public Law 2013, chapter 212. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 02/03114 ?1vac 
LD31 
LR 47(03) 
An Act To Increase Gaming Opportunities for Charitable Fraternal and Veterans' Organizations 
Fiscal Note for Bill as Amended by Committee Amendment "B' (S -tja:> ) 
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 January 1,2015, from charitable nonprofit organizations and off-track betting facilities. 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 50 veterans' organizations and 1 off-track 
betting facility would be licensed with a total of 250 slot machines, generating annual revenue of $91,541 for the 
State's General Fund and $490,337 for various other funds. The Gambling Control Board, Other Special Revenue 
Funds account would also receive license fees of $61 ,000 in the first year and $42,850 for license renewals in 
subsequent years. Annual state costs associated with an inspector, an auditor and other related expenses are estimated 
to be $171,523. 
Summary of 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% charitable organizations 
- 45% off track betting facilities 
Operator Share of Net Income 
- 70% charitable organizations 
- 55% off-track betting facilities 
LR0047(03) - Fiscal Note - Page I of2 
Annual 
Estimate 
$7,662,000 
$6,282,840 
$1,379,160 
$413,748 
$225,828 
$281,880 
$965,412 
$526,932 
$344,520 
State Revenues by Fund 
General Fund - Slot Machines 
Total General Fund Revenue 
Gambling Control Board - Slot Machines 
Gambling Control Board - License Fees ($61,000 the 1st year) 
Subtotal 
Gambling Addiction Prevention and Treatment Fund 
Municipalities 
Coordinated Veterans' Assistance Fund 
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 
LR0047(03) - Fiscal Note - Page 2 of2 
Annual 
Estimate 
$91,541 
$91,541 
$81,540 
$42,850 
$124,390 
$21,319 
$137,916 
$206,712 
$490,337 
$581,878 
$124,390 
$47,133 
$171,523