An Act To Ensure Fair Competition by and between Maine's Commercial Tracks
Maine Legislature, Session 127, LD 1213
Committee: Veterans and Legal Affairs
Sponsors: VACHON, VOLK, McELWEE, RUSSELL, SIROCKI, DIAMOND, DUTREMBLE, VALENTINO
Amends: 8 MRSA §1011, 8 MRSA §1018, 8 MRSA §1019, 8 MRSA §1020, 8 MRSA §1036

Legislative Document 
No. 1213 
H.P. 831 
House of Representatives, April 2, 2015 
An Act To Ensure Fair Competition by and between Maine's 
Commercial Tracks 
Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative VACHON of Scarborough. 
Cosponsored by Senator VOLK of Cumberland and 
Representatives: McELWEE of Caribou, RUSSELL of Portland, SIROCKI of Scarborough, 
Senators: DIAMOND of Cumberland, DUTREMBLE of York, VALENTINO of York. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  8 MRSA §1011, sub-§2, as amended by IB 2009, c. 2, §29, is further 
amended to read: 
2.  Eligible persons.  The board may accept applications for a license to operate slot 
machines or a casino from any person who is licensed as of December 31, 2003 to 
operate a commercial track that satisfies the following criteria: 
A.  The commercial track is located at or within a 5-mile 12-mile radius of the center 
of a commercial track that conducted harness racing with pari-mutuel wagering on 
more than 25 days during calendar year 2002; and 
B.  The operation of slot machines at the commercial track is approved by the voters 
of the municipality in which the commercial track to be licensed is located by 
referendum election held at any time after December 31, 2002 and before December 
31, 2003.; 
C.  The slot machines and all gambling activities are located within a building 
immediately adjacent to the racetrack from which the races can be seen and that 
features a principal dining facility with a clear view of the racing oval, and the 
building is part of a complex that includes a resort hotel with at least 100 rooms, a 
spa, indoor and outdoor pools, entertainment facilities and retail space; and 
D.  The racing oval is at least 5/8 of a mile long. 
Any additional assurances the commercial track provides to the Commissioner of 
Administrative and Financial Services as part of the procedures to establish the 
competitive bidding and fair market value license fee for that commercial track in 
accordance with section 1018, subsection 1-B must be imposed as conditions on the 
commercial track's license as a slot machine operator or a casino, and the commercial 
track must be in compliance with those conditions in order to operate any gambling 
activities for which the license is required. 
Sec. 2.  8 MRSA §1018, sub-§1-A, as enacted by PL 2011, c. 699, §2, is amended 
to read: 
1-A.  Fees for slot machine and casino operator licenses on or after September 1, 
2012.  Notwithstanding subsection 1, paragraphs C and C-1, beginning September 1, 
2012, an applicant for a slot machine operator license or a casino operator license must 
pay a $250,000 nonrefundable privilege fee to be submitted with the application for the 
license and a minimum license fee, or cash bid if the license is part of a competitive 
bidding process established by law, of $5,000,000.  This subsection does not apply to a 
casino licensed for operation in the State as of September 1, 2012 or to a commercial 
track licensed before January 1, 2003 that was first licensed to operate slot machines or a 
casino on or after January 1, 2013.  A commercial track first licensed to operate slot 
machines or a casino on or after January 1, 2013 shall pay a nonrefundable application 
fee of $250,000 and at the time of licensing shall also pay a competitive bidding and fair 
market value license fee determined in accordance with subsection 1-B.  The fee must be 
paid to the Treasurer of State and credited to the General Fund.  The competitive bidding 
and fair market value license fee must be returned to the licensee by the State if, during 
the 10 years following payment, any other person receives an initial license from the 
State or is otherwise authorized by the State to operate within 50 miles of the commercial 
track a slot machine facility with more than 5 slot machines or a casino. 
Sec. 3.  8 MRSA §1018, sub-§1-B is enacted to read: 
1-B.  Competitive bidding and fair market value license fee.  The Commissioner 
of Administrative and Financial Services shall assess the competitive bidding and fair 
market value license fee under subsection 1-A to a commercial track that after January 1, 
2014 becomes eligible for and applies for a slot machine operator or casino operator 
license.  The commercial track shall negotiate with the commissioner to reach an 
agreement on the fee amount, taking into account the factors listed in paragraphs A to I.  
If an agreement under this subsection is not reached, the commissioner shall conduct a 
hearing and make a determination of the competitive bidding and fair market value 
license fee for that commercial track, taking into account the following factors: 
A.  The amounts that have been previously paid for the value of licensing under this 
subchapter as determined by the commissioner; 
B.  The likely gambling market of the commercial track; 
C.  The extent to which the commercial track is required under its racing and 
gambling licenses to conduct live harness racing and other activities that are not 
likely to generate additional profits but that serve other interests of the State or the 
local community and the likely costs and benefits of those activities; 
D.  The taxation and other laws that apply to the commercial track's gambling 
operations; 
E.  Any commitment the commercial track makes in writing to accept conditions on 
its gambling licenses that add expense and capital obligations but that, in the opinion 
of the commissioner, provide substantial value to the people of the State or the local 
community; 
F.  The market risks associated with the commercial track's existing and proposed 
business;  
G.  The capital investment likely to be required of the commercial track to carry on 
all racing, gambling and other activities required as conditions to its gambling and 
racing licensure; 
H.  The extent to which the commercial track, as a condition of licensure, is willing to 
commit to create on-site stabling facilities for horses owned and trained by licensees 
of the State Harness Racing Commission and the likely capital investment associated 
with such facilities; and 
I.  The existing and likely competition the commercial track faces from within and 
outside the State for gambling and other revenues. 
A fee determination by the Commissioner of Administrative and Financial Services under 
this subsection constitutes final agency action. 
Sec. 4.  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 
machine facility.  This subsection does, subsection 7 and section 1011, subsection 2-B do 
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 or a commercial track that was licensed to accept any 
form of wagers prior to December 31, 2002 from obtaining a casino operator license or a 
slot machine operator license for any facility where bets on harness racing were taken 
prior to December 31, 2002 or at any other new facility that, under section 275-A, 
subsection 1, is considered the same commercial track as such a facility and is not located 
nearer to any existing casino or slot machine facility than was the commercial track that it 
replaced. 
Sec. 5.  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, any 
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 or a casino that is 
required to pay a competitive bidding and fair market value license fee under section 
1018, subsection 1-B is not required to obtain referendum approval other than local 
referendum approval as may be required by law, and except that any commercial track 
licensed to operate slot machines that is not required to pay a competitive bidding and fair 
market value license fee 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. 6.  8 MRSA §1020, sub-§3, ¶A, 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 3,000 7,500; and 
Sec. 7.  8 MRSA §1036, sub-§1, as amended by PL 2011, c. 417, §7, is further 
amended to read: 
1.  Distribution for administrative expenses of board.  A slot machine operator 
licensed under section 1011, subsection 2 or a casino operator that is a commercial track 
that was licensed to operate slot machines under section 1011, subsection 2 on January 1, 
2011 shall collect and distribute 1% of gross slot machine income to the Treasurer of 
State for deposit in the General Fund for the administrative expenses of the board.  
Sec. 8.  8 MRSA §1036, sub-§2-D is enacted to read: 
2-D.  Distribution of net slot machine income and net table game income from a 
casino with a commercial track licensed to operate slot machines and table games 
after January 1, 2014.  A casino operator that is a commercial track that was initially 
licensed to operate slot machines and table games under section 1011, subsection 2-A 
after January 1, 2014 shall collect and distribute 39% of the net slot machine income from 
slot machines and 16% of net table game income from table games operated by the casino 
operator to the board for distribution by the board as follows: 
A.  Two and one-half percent of the net slot machine income and net table game 
income must be deposited to the General Fund for administrative expenses of the 
board in accordance with rules adopted by the board, 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; 
B.  Twenty percent of the net slot machine income and net table game income must 
be forwarded by the board to the Treasurer of State, who shall credit the money to the 
fund established in section 298 to supplement harness racing purses; 
C.  Five percent of the net slot machine income and net table game income must be 
credited by the board to the Sire Stakes Fund created in section 281; 
D.  Eight and one-half percent of the net slot machine income and net table game 
income must be forwarded by the board to the Treasurer of State, who shall credit the 
money to the Agricultural Fair Support Fund established in Title 7, section 91; 
E.  Five percent of the net slot machine income and net table game income must be 
forwarded directly to the municipality in which the slot machines are located; 
F.  Two and one-half percent of the net slot machine income and net table game 
income must be forwarded by the board to the Treasurer of State, who shall credit the 
money to the Fund to Stabilize Off-track Betting Facilities established by section 300, 
as long as a facility has conducted off-track wagering operations for a minimum of 
days during the preceding 12-month period in which the first payment to the fund 
is required; and 
G.  All remaining amounts under this subsection must be forwarded to the Treasurer 
of State, who shall credit the money to the General Fund. 
SUMMARY 
This bill eliminates the deadline for local approval of the operation of slot machines 
or a casino at a commercial track in the State and allows the commercial track greater 
latitude in relocating to a municipality that supports the commercial track and harness 
racing as long as the commercial track does not relocate closer to any existing casino or 
slot machine facility.  The bill also requires that gaming operations be located at the 
racetrack as part of a fully integrated destination resort and also requires a one-time 
competitive bidding and fair market value license fee to be determined by the 
Commissioner of Administrative and Financial Services.  The bill provides that most of 
the revenues distributed from the commercial track are credited to the General Fund.