An Act To Provide Income Tax Relief by Expandikg' Gaming Opportunities
Maine Legislature, Session 127, LD 1280
Committee Amendment CA_D_H494 (House)
Amends: 8 MRSA §1005-A, 8 MRSA §1011, 8 MRSA §1011-A, 8 MRSA §1018, 8 MRSA §1018-A, 8 MRSA §1019, 8 MRSA §1020, 8 MRSA §1036, 8 MRSA §1036-A

COMMITTEE AMENDMENT "T\, to H.P. 876, L.D. 1280, Bill, "An Act To 
Provide Income Tax Relief by Expandikg' Gaming Opportunities" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Establish a Competitive Bidding Process for the Operation of a Resort-
style Casino in Southern Maine' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 5 MRSA § 12004-G, su b-§32-A is enacted to read: 
32-A. 
Sport and 
Entertainmen t 
Casino Development Legislative Per 
Commission 
Diem and Expenses 
Sec. 2. 8 MRSA §lOOl, sub-§6-A is enacted to read: 
MRSA § 1005-A 
6-A. 
Commission. "Commission" means the Casino Development Commission 
created under section 1005-A. 
Sec. 3. 8 MRSA §l003, sub-§2, ~B, as enacted by PL 2003, c. 687, Pt. A, §5 and 
affected by Pt. B, § 11, is amended to read: 
B. Hear and decide all license and registration applications under this chapter tmd 
issues affeoting the granting, suspension, revooation or renev/al of lioenses and 
registrations, including but not limited to applications received by the board from a 
person awarded the privilege by the commission to submit an application to operate a 
casino; 
Sec. 4. 8 MRSA §l003, sub-§2, ~B-l is enacted to read: 
B-1. Hear and decide issues affecting the granting, suspension, revocation or renewal 
of licenses and registrations; 
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Sec. 5. 8 MRSA §1005-A is enacted to read: 
§1005-A. Casino Development Commission 
1. Establishment. The Casino Development Commission, established in Title 5, 
section 12004-G, subsection 32-A, shall carry out the functions specified in this chapter 
with regard to awarding the privilege to apply for a casino or' slot machine operator 
license through a competitive bid process and establishing a contract with the winning 
bidder upon issuance of a casino operator license by the board. The commission is 
affiliated with the board as specified in this chapter. 
2. Members. The commission consists of 5 members appointed by the Governor. 
All members must be members of the general public without affiliation to the gaming or 
hospitality industry. At least 3 of the commission members must have training or 
experience in at least one of the following fields: corporate finance, economics, taw, 
economic development or accounting. A municipal employee, county employee, elected 
official or candidate for elective office may not serve as a commission member. 
3. Term of office. Members of the commission serve 3-year terms, except that the 
Governor shall initially appoint one member for a tern1 of one year, 2 members for a term 
of 2 years and 2 members for a term of 3 years. A vacancy is filled by appointment for 
the remainder of the unexpired tenn of that member. Members whose tenns expire serve 
until their successors are appointed and confirmed. Members may serve no more than 2 
full consecutive terms on the commission. 
4. Confirmation. Appointees to the commission must be reviewed by the joint 
standing committee of the Legislature having jurisdiction over gambling matters and are 
subject to confirmation by the Senate. 
5. Chair. The commission members shall elect one member to serve as chair for at 
least a 2-year term. 
6. Quorum. An action of the commission is not binding unless taken at a meeting at 
which at least 3 of the 5 members are present. 
7. Conflict of interest. In addition to the restrictions imposed pursuant to Title 5, 
section 18, a commission member may not participate in any matter before the 
commission in which the commission member has a personal bias or any other conflict of 
interest as the commission determines, either on the commission's own motion or in 
response to a written complaint. During a commission member's term of service and for 5 
years after the end of that commission member's service, any person with a direct and 
substantial interest in a gambling activity or gambling facility, including accommodations 
and amenities associated with a gambling facility, may not employ or be represented by 
the commission member or a member of the commission member's immediate family. 
For the purposes of this subsection, "direct and substantial" means ownership or control 
of more than 10% of the voting securities of a gambling facility, of an associated 
accommodation or associated amenity of a gambling facility or of an entity in contract, 
consort or cooperation with a gambling facility key executive. 
Sec. 6. 8 MRSA §1011, sub-§2-B, as enacted by PL 2011, c. 699, §1, is repealed. 
Sec. 7. 8 MRSA §1011, sUb-§2-C is enacted to read: 
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2-C. Persons eligible for casino operator license on or after January 1, 2015. 
Beginning January 1, 2015, the board may not accept an application for an initial license 
to operate a casino, slot machine facility or any other gambling facility for which the 
board has licensing authority, unless that application is submitted by a successful bidder 
for the privilege to submit an application to the board chosen pursuant to section 10 ll-A 
and the applicant has received approval by the voters of the municipality where the casino 
will be located. 
Sec. 8. 8 MRSA §1011-A is enacted to read: 
§1011-A. Privilege to submit a casino operator license application for a southern 
casino pursuant to competitive bidding 
The commission shall develop a request for proposals designed to encourage 
vigorous bidding for the purpose of awarding one bidder the privilege to submit an 
application to the board for a casino operator license. The commission shall request bids 
for the privilege to submit an application to the board for a resort-style casino in either 
York County or· Cumberland County. A request for proposals must instruct potential 
bidders to propose the scope of the gambling facility and amenities to be offered in 
conjunction with the facility and how the proposal will ensure that the proposed casino 
will provide the State with socially responsible economic growth while operating as a 
successful business for the operator, considering license fees, minimum capital 
investment requirements, regulatory standards and required rates of revenue distribution. 
The commission may require submission of documented expert analysis from a bidder to 
support the proposals submitted by the bidder. 
1. 
Consideration of bids for privilege to submit casino operator license 
application to the board. 
A bidder seeking award of the privilege to submit an 
application to the board for a license to operate a casino in York County or Cumberland 
County shall comply with the requirements determined by the commission. The 
commission shall require that a proposal for the privilege to submit an application to the 
board for the operation of a casino include a nonrefundable application fee of $250,000 
and an agreement to pay the costs of the board for processing an application and 
performing background investigations, as described in section 1018, subsection 1, if 
awarded the privilege to submit an application to the board for a license to operate a 
casino. The commission shall ensure that the request for proposals clearly identifies the 
deadline for submission and all bid requirements. The commission shall follow, as nearly 
as practicable, the provisions governing competitive bidding prescribed by Title 5, 
chapter ISS, subchapter I-A and rules adopted pursuant to that subchapter. 
2. 
Request for proposals; factors; southern casino. 
When considering bids 
received in response to a request for proposals prescribed in subsection 1 for a location in 
York County or Cumberland County, the cOlmnission shall consider the following; 
A. Business and market factors, including; 
(1) The bidder's commitment and capacity to make an initial minimum capital 
investment of $250,000,000 for a resort-style casino facility. Land acquisition, 
license fees and off-site improvements are not considered to be part of the 
minimum capital investment; 
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(2) How the bidder's proposal can be expected to preserve existing jobs in the 
State and the number of net new full-time and part-time jobs that can be expected 
to be created by the operation of the proposed facility; 
(3) The extent to which the bidder's market plans suit the character of the region 
and the local population in a way that encourages residents of the State to choose 
to patronize the bidder's proposed facility as opposed to gambling facilities in 
other states; 
(4) 
The potential created by the bidder's proposal to create commercial 
development opportunities in the host location and surrounding communities 
consistent with historic uses, regional character and local zoning and planning 
requirements; 
(5) The potential gross and net income to be generated by the bidder based upon 
documented, expert market analysis; 
(6) The extent to which the bidder's proposed facility can reasonably be expected 
to serve as a significant regional and national tourism destination; 
(7) How the bidder's proposal will result in the highest potential benefit and the 
highest prospective total revenues to the State from a bidder based upon 
documented, expert financial analysis; 
(8) The bidder's proposed capital investment in a gambling facility, proposed 
amenities associated with the facility and timing of capital investment 
expenditures in tenns of ensuring the facility is economically competitive in the 
State and regionally; and 
(9) Other factors, properly disclosed in the commission's request for proposals, 
that the commission detennines to be relevant; 
B. Economic development factors, including: 
(1) The bidder's workforce development plan and the extent to which it will 
maximize use of the State's existing labor force and create new jobs in the 
marketplace; 
(2) The impact on economic development, existing and planned, in the region of 
the proposed facility; and 
(3) Other factors, properly disclosed in the commission's request for proposals, 
that the commission detennines to be relevant; 
C. Site location factors, including: 
(1) 
The adequacy of transportation infrastructure surrounding the proposed 
location of the gambling facility; 
(2) The need for additional public infrastructure expenditures at or immediately 
surrounding the proposed location of the gambling faci Ii ty; 
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(3) Any negative impact of the proposed location of the gambling facility on the 
municipality in which the facility is to be located, including but not limited to 
traffic congestion, worsened road safety conditions and increased safety concerns 
for pedestrian traffic; 
(4) The bidder's proposals for mitigating negative impacts identified under this 
paragraph; and 
(5) Other factors, properly disclosed in the commission's request for proposals, 
that the commission determines to be relevant; and 
D. Factors other than those listed in paragraphs A to C, including: 
(1) The bidder's plan to identify, address and minimize the potential for and 
existence of negative consequences associated with gambling and the operation 
of the bidder's proposed facility, including but not limited to a financial 
commitment to efforts to address problem gambling prevention, intervention, 
treatment and research; 
(2) The effects, both positive and negative, that can be reasonably anticipated to 
be experienced by the municipality in which the facility is located and the 
communities in the region; and 
(3) 
The likelihood that the bidder will meet the casino operator license 
requirements described in section 1016. 
3. Bid award factor priorities; southern casino. The commission shaIl develop a 
system of assigning points to the factors required to be considered under subsection 2. 
The commission is authorized to hire or enter into a contract with vendors experienced in 
evaluating business plans for large-scale development and the impacts of development on 
the local and regional economies to assist with the consideration of bids and development 
of the point system required by this subsection. The development of a point system must 
ensure that factors that support the following are awarded the highest point value, with 
the criteria listed under paragraphs A and B receiving more points than those listed under 
paragraphs C ,and 0: 
A. The overaIl increase in the number of jobs created in the region that can be 
directly or indirectly attributed to the development and operation of the resort-style 
casino; 
B. The positive impacts on economic development, existing and planned, from the 
development and operation of the resort-style casino in the immediate region and the 
potential to positively impact the state economy, including opportunities to pursue 
developments that will create ongoing sources of revenue and employment for the 
region separate from the resort-style casino; 
C. The maximum potential benefits from the operation of the proposed resort-style 
casino on year-round tourism in the region; and 
D. The representation and incorporation by the proposed resort-style casino of the 
character of the State generaIly and, in particular, the character of the surrounding 
region consistent with historic uses, 10calJiliwning and zoning requirements. 
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4. Notice of award. Upon award of the ptivilege to submit an application for a 
casino operator license to the board, the commission shall cite how the successful 
bidder's proposal supported the priorities described in subsection 3. 
5. Contract required; southern casino. A person who is selected as the winning 
bidder for the privilege to submit an application to the board for a casino operator license 
shall agree to enter into a contract with the commission that obligates the casino operator 
to the proposals made in the bid submitted in accordance with this section. In addition, 
the contract must include: 
A. A framework of reasonable financial penalties for failure of the casino operator to 
comply with the terms of the contract and the circumstances under which failure to 
comply with terms of the contract justifies withholding all net slot machine income 
and net table game income until the terms of the contract are satisfied; and 
B. Annual reinvestment requirements that direct the casino operator, beginning no 
sooner than 5 years after commencing operation of slot machines at the casino, to 
either make capital improvements to the casino facility or deposit with the board, in 
an account described in section 1018, subsection 2-B, an amount no less than 3% but 
no greater than 4% of net slot machine income and net table game income generated 
by the casino during the previous year. 
The commission shall consult with the Office of the Attorney General during the 
negotiation and execution of the contract. The contract must be approved by the Attorney 
General. The casino operator license issued by the board does not take effect and the 
board may not accept the license fee required under section 1018, subsection 1, paragraph 
C-2 until the contract is executed. 
Sec. 9. 8 MRSA §l018, sub-§l, ~C, as enacted by PL 2003, c. 687, Pt. A, §5 and 
affected by Pt. B, § 11, is amended to read: 
C. The initial application fee for a slot machine operator license is $200,000. 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. This paragraph applies to slot machine 
operator licenses issued before January I, 2015. 
Sec. 10. 8 MRSA §1018, sub-§I, ~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 
conduct any authorized table game at the gaming table during the 20-year period. A 
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COMMITTEE AMENDMENT D" to H.P. 876, L.D. 1280 
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. This paragraph applies to casino 
operator licenses issued before January 1, 2015. 
Sec. 11. 8 MRSA §1018, sub-§l, ~~C-2, C-3 and C-4 are enacted to read: 
C-2. 
The fee for a casino operator license for a casino in York CountY..-QI 
Cumberland County, issued in accordance with section lOll-A, is $50,000,000. The 
license fee must be deposited in accordance with section 10 18-A. except for 
$5,000,000, which must be deposited to the Gambling Control Board administrative 
expenses Other Special Revenue Funds account, and for $15,000,000, which must be 
deposited to the General Fund and used for the administrative expenses of the board. 
The license fee is separate from the nonrefundable application fee required pursuant 
to section lOll-A, subsection 1 and the payment of costs to the board for processing 
the application and performing background investigations. 
C-3. The renewal fee for a casino operator license for a casino in York County or 
Cumberland County, issued in accordance with section lOll-A, is $250,000 due 20 
years after the initial fee required under paragraph C-2. 
C-4. The annual registration fee for a slot machine and a table game operated at a 
casino licensed on or after January 1, 2015 is $100. 
Sec. 12. 8 MRSA §1018, sub-§I-A, as enacted by PL 2011, c. 699, §2, is 
repealed. 
Sec. 13. 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 issued before January 1, 2015; renewal, renewal fees. All 
Except for slot machine operator licenses and casino operator licenses issued on or after 
January 1,2015, 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. 14. 8 MRSA §1018, sub-§§2-A, 2-B and 3-A are enacted to read: 
2-A. Term of license issued on or after January 1, 2015. A casino operator 
license issued by the board pursuant to section 1011, subsection 2-C is effective for 20 
years unless revoked or surrendered pursuant to subchapter 5. 
2-B. Annual reinvestment requirements; southern casino. 
A casino operator 
licensed by the board pursuant to section 1011, subsection 2-C operating a casino in York 
County or Cumberland County may deposit with the board the percentage of net slot 
machine income and net table game income required as an annual reinvestment pursuant 
I 
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COMMITTEE AMENDMENT.:D " to H.P. 876, L.D. 1280 
to the contract executed in accordance with section lOll-A, subsection 5. The board 
shall hold the funds in an interest-bearing, nonlapsing account. The casino operator may 
request funds from the account for the purpose of making capital investments or 
improvements to the casino facility. If there are funds in the account and the casino 
ceases operation for a period of more than 90 days, the funds must be deposited to the 
General Fund. 
3-A. Licensee other than the original applicant; contract applicable; transfer 
fee. If a person initially licensed to operate a casino after Januaty I, 2015 in York 
County or Cumberland County surrenders the license or the license is revoked, a 
subsequent licensee authorized to operate the casino in accordance with this chapter is 
subject to the terms of the contract required by and executed under section lOll-A, 
subsection 5. A subsequent licensee is required to submit an application to the board and 
is subject to the licensing qualifications prescribed under section 1016 and may only 
operate the casino for the remainder of the 20-year license term applied to the initial 
licensee. The fee for the transfer of a casino operator license initially issued subsequent 
to the competitive bid process under section 1011-A is $500,000, which must be 
submitted to the board for deposit to the General Fund. 
Sec. 15. 8 MRSA §1018-A is enacted to read: 
§1018-A. Host municipality and county revenue loss mitigation 
The portion of the license fee submitted in accordance with section 1018, subsection 
1, paragraph C-2 must be deposited into a nonlapsing, dedicated account to be 
administered by the board. The purpose of the account is to maintain the level of revenue 
distributed to host municipalities under section 1011, subsection 4; section 1036, 
subsection 2. paragraph J; and section 1036, subsection 2-A, paragraph F and to a host 
county under section 1036, subsection 2-A, paragraph J. If a casino initially licensed to 
operate prior to January 1, 2015 ceases operation within 5 years of the commencement of 
the operation of slot machines at a casino in York County or Cumberland County, the 
board shall distribute revenues to the county that received distributions under section 
1036, subsection 2-A, paragraph J, if applicable, and the municipality in which the closed 
casino was operated. The board shall determine the distribution amount by calculating the 
average annual distribution to the host county or host municipality of the closed casino 
from the last 5 full calendar years in which distributions Were received. The board shall 
determine the distribution amounts within 90 days of the closure of a casino initially 
licensed prior to January I, 2015 and begin making distributions to the municipality and 
county, as applicable, as soon as practicable thereafter. Nothing in this section prohibits 
distribution to each municipality or a county in which a casino initially licensed prior to 
January 1, 2015 is operated as long as the casino ceases operation within 5 years after the 
commencement of the operation of slot machines at a casino in York County or 
Cumberland County. Distributions made to a municipality or county in accordance with 
this section continue until 100% of the amount of the license fee deposited into the 
account is distributed. If no casino initially licensed prior to January I, 2015 ceases 
operation within 5 years of the commencement of slot machine operation at a casino in 
York County or Cumberland County, the funds must be deposited in the Department of 
Transportation, Highway and Bridge Capital program, Other Special Revenue Funds 
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I 
COMMITTEE AMENDMENT "D" to H.P. 876, L.D. 1280 
account within the Highway Fund as established by Title 23, section 1651 for capital 
improvement purposes. 
Sec. 16. 8 MRSA §1019, sub-§6, as amended by PL 2011, c. 417, §5, is repealed. 
Sec. 17. 8 MRSA §1019, sub-§7, as amended by PL 2011, c, 417, §6, is repealed. 
Sec. 18. 8 MRSA §1020, sub-§3, as amended by PL 2011, c. 585, §8, is further 
amended to read: 
3. Limits on total slot machines. The board shal1 determine the number of slot 
machines to be registered in the State for casinos initial1y licensed prior to January 1, 
2015. 
The board shal1 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. 
Except for slot machines used for training and educational purposes at 
postsecondary institutions as provided by section 1011, subsection I-B, the total 
number of slot machines registered in the State for operation at casinos initially 
licensed prior to January 1, 2015 may not exceed 3,000; and 
B. 
A slot machine operator initial1y licensed prior to January 1, 2015 may not 
operate more than 1,500 slot machines at anyone commercial track and a casino 
operator initial1y licensed prior to January 1, 2015 may not operate more than 1,500 
slot machines at a casino. 
Sec. 19. 8 MRSA §1036, as amended by PL 2013, c. 118, §§1 and 2 and c. 128, 
§ 1, is further amended to read: 
§1036. Allocation of funds 
1. Distribution for administrative expenses of board. A Except as provided by 
section 1036-A. 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. 
2. Distribution of net slot machine income from casino with commercial track. 
A Except as provided by section 1036-A, 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 39% of the net slot machine income from slot machines operated by the 
slot machine operator to the board for distribution by the board as follows: 
A. Three percent of the net slot machine 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, the 
following amounts must be transfened annual1y to the Gambling Addiction 
Prevention and Treatment Fund established by Title 5, section 20006-B: 
(1) For the fiscal year beginning July 1,2011, $50,000; 
(2) For the fiscal year beginning July 1, 2012, $50,000; and 
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.. to H.P. 876, L.D. 1280 
(3) For the fiscal year begiIming July 1,2013 and for each fiscal year thereafter, 
$100,000; 
B. Ten percent of the net slot machine 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. Three percent of the net slot machine income must be credited by the board to the 
Sire Stakes Fund created in section 281; 
D. Three percent of the net slot machine 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. Ten percent of the net slot machine income must be forwarded by the board to the 
State Controller and except as otherwise provided in this paragraph credited to the 
Fund for a Healthy Maine established by Title 22, section 1511 and segregated into a 
separate account under Title 22, section 1511, subsection 11, with the use of funds in 
the account restricted to the purposes described in Title 22, section 1511, subsection 
6, paragraph E. For the fiscal years ending June 30, 2010, June 30, 2011 and June 30, 
2012, the amount credited annually by the State Controller to the Fund for a Healthy 
Maine under this paragraph may not exceed $4,500,000 annually and any funds in 
excess of $4,500,000 annually during these fiscal years must be credited as General 
Fund undedicated revenue, and, for the fiscal year ending June 30, 2013, the amount 
credited by the State Controller to the Fund for a Healthy Maine under this paragraph 
is $0; 
F. Two percent of the net slot machine income must be forwarded by the board to the 
University of Maine System Scholarship Fund created in Title 20-A, section 10909 
and to the Board of Trustees of the Maine Maritime Academy to be applied by the 
board of trustees to fund its scholarship program. The slot machine income under 
this paragraph must be distributed as follows: 
(1) The University of Maine System share is the total amount of the distribution 
multiplied by the ratio of enrolled students in the system to the total number of 
enrolled students both in the system and at the Maine Maritime Academy; and 
(2) The Maine Maritime Academy share is the total amount of the distribution 
multiplied by the ratio of enrolled students at the academy to the total number of 
enrolled students both in the system and at the academy; 
G. One percent of the net slot machine income must be forwarded by the board to the 
board of trustees of the Maine Community College System to be applied by the board 
of trustees to fund its scholarships program under Title 20-A, section 12716, 
subsection 1; 
H. Four percent of the net slot machine income must be forwarded by the board to 
the Treasurer of State, who shall credit the money to the Fund to Encourage Racing at 
Maine's Commercial Tracks, established in section 299; however, the payment 
required by this paragraph is terminated when all commercial tracks have obtained a 
license to operate slot machines in accordance with this chapter, in which case, that 
Page J 0 - 127LRlS72(OS)-1 
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COMMITTEE AMENDMENT j)" to H.P. 876, L.D. 1280 
4% of the net slot machine income must be credited to the General Fund as 
undedicated revenue; 
I. Two percent of the net slot machine 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 250 days during the preceding 12-month 
period in which the first payment to the fund is required. 
After 48 months of 
receiving an allocation of the net slot machine income from a licensed operator, the 
percent of net slot machine income forwarded to the Fund to Stabilize Off-track 
Betting Facilities is reduced to 1 % with the remaining 1 % to be forwarded to the 
State in accordance with subsection 1; and 
J. One percent of the net slot machine income must be forwarded directly to the 
municipality in which the slot machines are located. 
2-A. Distribution from casino of slot machine income. A Except as provided by 
section 1036-A, a casino operator shall collect and distribute 46% of the net slot machine 
income from slot machines operated by the casino operator to the board for distribution 
by the board as follows: 
A. Twenty-five percent of the net slot machine income must be forwarded directly 
by the board to the Treasurer of State, who shall credit the money to the Department 
of Education, to be used to supplement and not to supplant funding for essential 
programs and services for kindergarten to grade 12 under Title 20-A, chapter 606-B; 
B. Four percent of the net slot machine income must be forwarded by the board to 
the University of Maine System Scholarship Fund created in Title 20-A, section 
10909 and to the Board of Trustees of the Maine Maritime Academy to be applied by 
the board of trustees to fund its scholarship program. The slot machine income under 
this paragraph must be distributed as follows: 
(1) The University of Maine System share is the total amount of the distribution 
multiplied by the ratio of enrolled students in the system to the total number of 
enrolled students both in the system and at the Maine Maritime Academy; and 
(2) The Maine Maritime Academy share is the total amount of the distribution 
multiplied by the ratio of enrolled students at the academy to the total number of 
enrolled students both in the system and at the academy; 
C. Three percent of the net slot machine income must be forwarded by the board to 
the Board of Trustees of the Maine Community College System to be applied by the 
board of trustees to fund its scholarships program under Title 20-A, section 12716, 
subsection 1; 
D. Four percent of the net slot machine income must be forwarded by the board to 
the Treasurer of State, who shall distribute the funds to the tribal governments of the 
Penobscot Nation and the Passamaquoddy Tribe; 
E. Three percent of the net slot machine income must be deposited to the General 
Fund for administrative expenses of the board, including gambling addiction 
counseling services, in accordance with rules adopted by the board; 
Page II - 127LRlS72(OS)-1 
COMMITTEE AMENDMENT 
o~s 
~ 
COMMITTEE AMENDMENT.]) "to H.P. 876, L.D. 1280 
F. Two percent of the net slot machine income must be forwarded directly to the 
municipality in which the casino is located; 
G. One percent of the net slot machine 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; 
H. One percent of the net slot machine 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; 
I. One percent of the net slot machine income must be credited by the board to the 
Sire Stakes Fund created in section 281; 
1. One percent of the net slot machine income must be forwarded directly to the 
county in which the casino is located to pay for mitigation of costs resulting from 
gaming operations; 
L. Beginning July I, 2013, 112 of 1% of the net slot machine income must be 
forwarded by the board to the Treasurer of State, who shall credit the money to the 
Maine Milk Pool, Other Special Revenue Funds account within the Department of 
Agriculture, Conservation and Forestry to help fund dairy farm stabilization pursuant 
to Title 7, sections 3153-B and 3153-D; and 
M. Beginning July 1, 2013, 112 of 1 % of the net slot machine income must be 
forwarded by the board to the Treasurer of State, who shall credit the money to the 
Dairy Improvement Fund established under Title 10, section 1023-P. 
If a recipient of net slot machine income in paragraph D, H or I owns or receives funds 
from a slot machine facility or casino, other than the casino in Oxford County or the slot 
machine facility in Bangor, then the recipient may not receive funds under this 
subsection, and those funds must be retained by the Oxford County casino operator. 
2-B. Distribution from casino of table game income. A Except as provided by 
section 1036-A, a casino operator licensed in accordance with section 1011, subsection 
2-A, paragraph A shall collect and distribute 16% of the net table game income from 
table games operated by the casino operator to the board for distribution by the board as 
follows: 
A. Ten percent of the net table game income must be forwarded directly by the board 
to the Treasurer of State, who shall credit the money to the Department of Education, 
to be used to supplement and not to supplant funding for essential programs and 
services for kindergarten to grade 12 under Title 20-A, chapter 606-B; 
B. Three percent of the net table game income must be deposited to the Gambling 
Control Board administrative expenses Other Special Revenue Funds account, which 
is a nonlapsing dedicated account; 
C. Two percent of the net table game income must be forwarded directly to the 
municipality in which the table games are located; and 
D. One percent of the net table game income must be forwarded directly to the 
county in which the table games are located to pay for mitigation of costs resulting 
from gaming operations. 
COMMITTEE AMENDMENT 
COMMITIEE AMENDMENT:1)" to H.P. 876, L.D. 1280 
2-C. Distribution of table game income from casino with a commercial track. A 
Except as provided by section 1036-A, a casino operator that is a commercial track and 
was licensed to operate slot machines on January 1, 2011 shall collect and distribute 16% 
of the net table game income from table games operated by the casino operator to the 
board for distribution by the board as follows: 
A. Nine percent of the net table game income must be deposited to the General Fund 
for administrative expenses of the board, including gambling addiction counseling 
services, in accordance with rules adopted by the board; 
B. Three percent of the net table game income must be deposited to the Gambling 
Control Board administrative expenses Other Special Revenue Funds account, which 
is a nonlapsing dedicated account; 
C. Two percent of the net table game income must be forwarded directly to the 
municipality in which the table games are located; and 
D. Two percent of net table game income must be deposited into the Coordinated 
Veterans Assistance Fund established in Title 37 -B, section 514. 
2-D. Distribution of slot machine and table game income from a casino in York 
County or Cumberland County. A casino operator licensed to operate a casino in York 
Co~nty or Cumberland County pursuant to section 10 ll-A shall collect and distribute 
40,% of net slot machine income and 16% of net table game income to the board. The 
distributions must be held by the board until a distribution is established by the 
Legislature for net slot machine income and net table game income generated by a casino. 
3. Failure to deposit funds. 
A slot machine operator or casino operator who 
knowingly or intentionally fails to comply with this section commits a Class C crime. In 
addition to any other sanction available by law, the license of the operator may be 
revoked by the board and the slot machines or table games operated by that slot machine 
operator or casino operator may be disabled, and the slot machines or table games, slot 
machines' or table games' proceeds and associated equipment may be confiscated by the 
board and are subject to forfeiture under Title 17-A, section 959 or 960. 
4. Late payments. The board may adopt rules establishing the dates on which 
payments required by this section are due. All payments not remitted when due must be 
paid together with interest on the unpaid balance at a rate of 1,5% per month. 
Sec.20. 8 MRSA §1036-A is enacted to read: 
§1036-A. Distributions of slot machine and table game income upon operation of a 
casino, gambling facility or slot machine facility licensed after January 1, 
2015 
The board may not make distributions as provided by section 1036, subsections 1, 2, 
2-A, 2-B and 2-C after the commencement of operations of a casino, slot machine facility 
or gambling facility subject to licensure by the board initially licensed after January 1, 
2015. Net slot machine income and net table game income collected by a casino operator 
or slot machine facility operator in accordance with section 1036, subsections 1, 2, 2-A, 
2-B and 2-C must be held by the board until a distribution of net slot machine income and 
net table game income is established by the Legislature that provides for a distribution of 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENTj) "to H.P. 876, L.D. 1280 
net slot machine income and net table game income that applies, in the same manner, to 
each casino, slot machine facility or gambling facility licensed in accordance with this 
chapter. 
Sec. 21. 
Joint Standing Committee on Veterans and Legal Affairs 
authorized to submit legislation. The Joint Standing Committee on Veterans and 
Legal Affairs is authorized to submit legislation to the Second Regular Session of the 
127th Legislature establishing a manner of distribution of slot machine and table game 
revenue that will apply to each casino, slot machine facility or gambling facility operated 
in this State. The manner of slot machine and table game revenue distribution must apply 
percentages to the following: 
1. 
The fund to supplement harness racing purses established under the Maine 
Revised Statutes, Title 8, section 298; 
2. The Sire Stakes Fund established under Title 8, section 281; 
3. The Agricultural Fair Support Fund established under Title 7, section 91, except 
that distributions to that fund may not be paid to those licensed to conduct or accept 
wagers' on harness racing at an agricultural fair or commercial track; 
4. Scholarships for the University of Maine System, Maine Maritime Academy and 
Maine Community College System; 
5. The City of Bangor, the Town of Oxford and the counties of Penobscot and 
Oxford; 
6. 
The municipality in either York County or Cumberland County in which the 
casino is operated; 
7. 
The Department of Education to fund essential programs and services for 
kindergarten to grade 12 under Title 20-A, chapter 606-B; 
8. The Fund to Stabilize Off-track Betting Facilities established under Title 8, section 
300; 
9. Each of the 4 federally recognized Indian tribes in the State if the tribe is not 
benefitting from the operation ofa casino licensed after January 1,2015; 
10. The Fund for a Healthy Maine established under Title 22, section 1511 to support 
programs that provide prescription drug benefits to the elderly; 
11. 
The Maine Milk Pool, Other Special Revenue Funds account within the 
Department of Agriculture, Conservation and Forestry for dairy stabilization programs 
under Title 7, sections 3153-B and 3153-D; 
12. The Dairy Improvement Fund established under Title 10, section 1023-P; 
13. The General Fund for administrative expenses of the Gambling Control Board 
within the Department of Public Safety and the Gambling Addiction Prevention and 
Treatment Fund established under Title 5, section 20006-B; 
14. The Coordinated Veterans Assistance Fund established under Title 37-B, section 
and the Bureau of Maine Veterans' Services within the Department of Defense, 
Veterans and Emergency Management for the purposes of developing a coordinated 
COMMITTEE AMENDMENT 
I 
COMMITTEE AMENDMENT 1)" to H.P. 876, L.D. 1280 
delivery system of services and benefits from nonprofit organizations and federal and 
state programs to veterans in the State; 
15. Established bona fide nonprofit organizations incorporated in the State whose 
charitable purpose is to serve veterans; 
16. The General Fund to provide supplemental funding for the operation of county 
jails; 
17. A fund, to be established, for the purpose of providing education in the industry 
of harness racing through paid internships for high-school-aged students; 
18. A fund, to be established, to benefit an agricultural fair association by funding 
premium payouts at agricultural fairs; 
19. A fund, to be established, to support harness racing conducted by agricultural 
fairs by assisting with improvements and maintenance to racing tracks and buildings 
associated with hal11ess racing; and 
20. 
A fund, to be established, to support the costs and promotion of educational 
programs for school-aged children conducted as part of an agricultural fair. 
Sec. 22. Statutory referendum procedure; submission at election; form of 
question; effective date. This Act must be submitted to the legal voters of the State at 
a statewide election held in the month of November 2016 following passage of this Act. 
The municipal officers of this State shall notify the inhabitants of their respective cities, 
towns and plantations to meet, in the manner prescribed by law for holding a statewide 
election, to vote on the acceptance or rejection of this Act by voting on the following 
question: 
"Do you favor the operation of a resort-style casino, licensed pursuant to 
a competitive bid process, in either York County or Cumberland 
County?" 
The legal voters of each city, town and plantation shall vote by ballot on this question 
and designate their choice by a cross or check mark placed within a corresponding square 
below the word "Yes" or "No." 
The ballots must be received, sorted, counted and 
declared in open ward, town and plantation meetings and returns made to the Secretary of 
State in the same manner as votes for members of the Legislature. The Governor shall 
review the returns. If a maj ority of the legal votes are cast in favor of this Act, the 
Governor shall proclaim the result without delay and this Act becomes effective 30 days 
after the date of the proclamation. 
The Secretary of State shall prepare and furnish to each city, town and plantation all 
ballots, returns and copies of this Act necessary to carry out the purposes of this 
referendum. I 
SUMMARY 
This amendment replaces the bill and is a minority report of the committee. The 
amendment establishes a competitive bid process for the operation of a resort-style casino 
in either York County or Cumberland County. The amendment establishes the Casino 
Development Commission, which is an independent board of 5 members appointed by 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMEN!..J) "to H.P. 876, L.D. 1280 
the Governor and confirmed by the Senate. The commission's purpose is to develop a 
request for proposals for the privilege to submit an application to the Gambling Control 
Board for a casino operator license. 
The fee to submit a bid is $250,000. 
The 
amendment provides for specific supporting information to be submitted by the bidder 
and considered by the commission including the bidder's ability to make a minimum 
$250,000,000 capital investment in the resort-style casino and information regarding job 
creation, economic development and plans to mitigate negative infrastructure impacts. 
Under the amendment, the commission is directed to develop a point system for the 
factors to be considered and give priority to factors that create jobs, promote economic 
development, increase tourism and support a casino that fits the character of the State. 
The winning bidder must enter into a contract with the commission that obligates the 
casino operator to abide by the proposals made in the winning bid. Failure to abide by 
the terms of the contract could result in financial penalties to the operator. 
The license fee for a casino under the amendment is $50,000,000, of which 
$5,000,000 is deposited with the Gambling Control Board and $15,000,000 is deposited 
into the General Fund. The remaining $30,000,000 is deposited into an account to be 
used to mitigate the impact of lost revenue on the municipalities and a county in which 
casinos are currently located. If an existing casino closes, the Gambling Control Board 
will distribute money from the account to the municipalities and county based on 
distributions the municipality or county had been receiving from the casino. 
If a person initially licensed to operate the casino surrenders the license or the license 
is revoked, a subsequent licensee may operate the casino only for the remainder of the 
license term and is subject to a $500,000 transfer fee. A subsequent licensee is subject to 
the contract executed when the casino in either York County or Cumberland County was 
initially licensed. 
The amendment sets the distribution of net slot machine revenue at 40% and the 
distribution of net table game revenue at 16% for the resort-style casino. 
Upon 
commencement of table game operations at a casino in York County or Cumberland 
County, a single distribution of slot machine and table game revenue will be applied to all 
casinos in the State. 
The amendment authorizes the Joint Standing Committee on 
Veterans and Legal Affairs to submit legislation developing this distribution of revenue 
and provides a list of funds and programs that are required to be included in that 
distribution. 
Finally, the amendment makes enactment of this bill contingent upon the approval of 
the voters of the State at a statewide referendum held in November 2016. 
fISCAL NOTE REQUIRED 
(See Attached) 
COMMITTEE AMENDMENT 
i\pproved: 06/18/15 
~L2C: 
LD 1280 
LR 1572(05) 
An Act To Provide Income Tax Relief by Expanding Gaming Opportunities 
Fiscal Note for Bill as Amended by Committee Amendment j)' L{i-qqy) 
Committee: Veterans and Legal Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
Contingent biennium referendum cost - General Fund 
Contingent future biennium cost increase - Other Special Revenue Funds 
Contingent current biennium revenue decrease - General Fund 
Contingent current biennium revenue increase - Other Special Revenue Funds 
Referendum Costs 
MonthlY ear 
Election Type 
Question 
Length 
Nov-15 
General 
Referendum 
Standard 
The Secretary of State's budget includes sufficient funds to accommodate one ballot of average length for the general 
election in November. If the number or size of the referendum questions requires production and delivery ofa second 
ballot, an additional appropriation of $107,250 may be required. 
Fiscal Detail and Notes 
The bill creates a commission to u!>e a competitive bid process for the operation of a resort-style casino. Bidders will 
pay a $250,000 bidding fee to win the right to be the applicant. The fiscal note assumes this will be credited to the 
General Fund. The Gambling Control Board (GCB) will accept applications for a casino license in either York County 
or Cumberland County for the winning bidder as long as the voters of the municipality where the proposed casino will 
be located have voted to approve a casino and the voters ofthe county have not rejected a casino. 
The facility would be taxed at the rate of 40% of net slot income and 16% of net table game income. The bill would 
require this casino, beginning no sooner than 5 years after operation of slot machines, to make capital improvements to 
the casino using 3% to 4% of both net slot machine and net table game income or direct those funds to the GCB. This 
fiscal note assumes that the facility will not direct these funds to the GCB. This fiscal note assumes a total of 1,000 slot 
machines and 24 table games, generating an estimated $28,893,809 annually in Other Special Revenue Funds (OSRF) 
revenue. 
Each non-refundable bid proposal will generate $250,000 in General Fund revenue. The casino operator license is 
$50,000,000, with $15,000,000 going to the General Fund and $35,000,000 going into an OSRF account within the 
GCB. $30,000,000 from this license fee will be used to maintain the level of revenue distributed to municipalities and 
counties receiving money from either Oxford Casino or Hollywood Casino. This $30,000,000 will be transferred to the 
Department of Transportation, Highway and Bridge Capital Program if Oxford Casino and Hollywood Casino continue 
to operate and provide revenue to host municipalities and counties. If either Oxford Casino or Hollywood Casino 
ceases operations within 5 years of commencement of the new casino, then distribution will be made from the OSRF 
account to compensate host municipalities and counties until the entire $30,000,000 is distributed. A one-time renewal 
fee of $250,000 will be due 20 years after this new casino commences operations. The GCB will generate annual 
OSRF revenue of $102,400 from registration fees. Annual State costs associated with 5 inspectors, an auditor and other 
related expenses are estimated to be $523,510. 
LRi 572(05) - Fiscal Note - Page 1 of2 
WhiteSand Gaming's market feasibility study on expanded gaming in Maine estimated a 20% reduction in revenue to . 
Oxford Casino if a new southern Maine casino were to open. This fiscal note assumes the same 20% reduction, 
resulting in an estimated annual General Fund revenue loss of $347,495 and OSRF revenue loss of $5,41 0,437. An 
ass~ssment of the impact on revenues generated by Hollywood Casino has not been done at this time. 
Under current law, State revenue from both Oxford Casino and Hollywood Casino go to various funds, but this bill 
directs all State revenue from these casinos to go to the Gambling Co~trol Board until a distribution of slot machine 
and table game revenue is established by the Legislature. The new distribution is required to be a uniform distribution 
of slot machine and table game revenue for each casino, slot machine facility or gambling facility. This will reduce 
General Fund revenue by an estimated $8,223,744 annually. 
Summary of Casino Revenue 
Gross Slot Income (total value of money, tokens, credits and other value used to play slots) 
Player Payback - Slot Income 
Annual 
Estimate 
$659,190,000 
$591,293,430 
$67,896,570 
$27,158,628 
$40,737,942 
$10,844,880 
$1,735,181 
$9,109,699 
Net Slot Income 
Share of Net Slot Income for Distribution - 40% 
Operator Share of Net Slot Income - 60% 
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 
Oxford Casino revenue reduced 
Oxford Casino revenue was GF, now OSR 
Hollywood Casino revenue was GF, now OSR 
Total General Fund Revenue 
Bidding Fee - assumes 2 bidders 
Casino Operator License 
Other Special Revenue Funds 
Registration Fees 
Oxford Casino revenue reduced 
Oxford Casino revenue was GF, now OSR 
Hollywood Casino revenue was GF, now OSR 
Total Other Special Revenue Funds Revenue 
Casino Operator License 
Renewal Fee - in 20 years 
Total Revenue All Funds 
Summary of Expenditure Impacts to the State 
Other Special Revenue Funds 
-- Public Safety 
LR1572(05) - Fiscal Note - Page 2 of 2 
($347,495) 
($1,389,981) 
($6,833,763) 
($8,571,239) 
$500,000 (one-time) 
$15,000,000 (one-time) 
$28,893,809 
$102,400 
($5,410,437) 
$1,389,981 
$6,833,763 
$31,809,516 
$35,000,000 (one-time) 
$250,000 (one-time) 
$23,238,277 
$523,510