An Act To Authorize a Casino To Benefit Federally Recognized Indian Tribes in the State
Maine Legislature, Session 127, LD 1446
Amends: 5 MRSA §12004-G, 8 MRSA §1001, 8 MRSA §1003, 8 MRSA §1005-A, 8 MRSA §1011, 8 MRSA §1018, 8 MRSA §1019, 8 MRSA §1020, 8 MRSA §1036

Legislative Document 
No. 1446 
H.P. 990 
House of Representatives, June 16, 2015 
An Act To Authorize a Casino To Benefit Federally Recognized 
Indian Tribes in the State 
Reported by the Majority from the Joint Standing Committee on Veterans and Legal 
Affairs pursuant to Resolve 2013 chapter 111, section 3. 
ROBERT B. HUNT 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §12004-G, sub-§32-A is enacted to read: 
32-A.   
Sec. 2.  8 MRSA §1001, sub-§6-A is enacted to read: 
6-A.  Commission.  "Commission" means the Casino Development Commission 
created under section 1005-A. 
Sec. 3.  8 MRSA §1003, 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 and 
issues affecting the granting, suspension, revocation or renewal of licenses 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 §1003, sub-§2, ¶B-1 is enacted to read: 
B-1.  Hear and decide issues affecting the granting, suspension, revocation or renewal 
of licenses and registrations; 
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, law, 
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 term 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 term of that member.  Members whose terms expire serve 
Sport and 
Entertainment 
Casino Development 
Commission 
Legislative Per 
Diem and Expenses 
MRSA §1005-A 
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 
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: 
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 1011-B 
and the applicant has received approval to operate a casino by the voters of the 
municipality where the casino will be located. 
Sec. 8.  8 MRSA §§1011-A and 1011-B are enacted to read: 
§1011-A.  County referendum   
This section applies to referendum requirements for counties in which the 
commission is authorized to receive bids for the privilege to submit an application for a 
casino operator license to the board. 
1.  Secretary of State to prepare ballots and returns.  Notwithstanding any law to 
the contrary, upon notification by the county commissioners of the date of a statewide 
election no sooner than June 1, 2016 and no later than July 1, 2017 at which a county has 
determined the county will hold a referendum asking voters of the county to authorize the 
operation of a casino subject to a competitive bid process, the Secretary of State shall 
prepare and furnish to each city, town and plantation in that county ballots and returns for 
an election to be held no sooner than June 1, 2016 and no later than July 1, 2017.  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 Secretary of State shall determine the wording of the 
question to be submitted to the voters of the county. 
2.  Referendum impact on competitive bid for privilege to submit a casino 
operator license application.  The commission may accept and consider a bid for the 
privilege to submit an application for a casino operator license to the board from a bidder 
who proposes to operate a casino in a county where the voters have approved the 
operation of a casino by referendum held in accordance with this section.  The 
commission may not accept a bid for the privilege to submit an application to the board 
for a casino operator license in a county where voters rejected the operation of a casino in 
the county by referendum vote or in a county that did not hold a countywide referendum 
within the time frame prescribed by this section. 
§1011-B.  Privilege to submit a casino operator license application for a northern 
casino pursuant to competitive bidding 
The privilege to submit an application to the board for a casino operator license for a 
casino in Washington County or Aroostook County is governed by this section. 
1.  Commission required to request statements from federally recognized Indian 
tribes.  Prior to developing a request for proposals for the privilege to apply to the board 
for a casino operator license for a casino in Washington County or Aroostook County, the 
commission shall request a statement from each of the 4 federally recognized Indian 
tribes in the State with regard to their support of and interest in entering into a partnership 
agreement relative to the operation of or ownership in a casino, or both, and whether the 
tribe wishes not to be included in such a partnership. 
2.  Request for proposals to include tribal partnership.  A request for proposals 
developed by the commission must require a partnership agreement with all of the tribes 
that provided a statement to the commission indicating that they wished to be included in 
a partnership for the operation of or ownership in a casino, except that the commission 
may not submit a request for proposals if more than 2 of the federally recognized Indian 
tribes in the State provided a statement under subsection 1 to the commission indicating 
that they do not wish to be included in such a partnership. 
3.  County approval.  If the voters of either Washington County or Aroostook 
County, or both, approve the operation of a casino pursuant to a referendum held in 
accordance with section 1011-A, 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 
one casino to be operated in either Washington County or Aroostook County, except that 
bids may not be requested for a proposal in a county in which the voters rejected the 
operation of a casino. 
4.  Information to bidders.  A request for proposals developed by the commission 
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 proposed casino will establish a 
socially responsible, economically successful business for the operator, considering 
license fees, minimum capital investment requirements, regulatory standards and required 
rates of revenue distribution.  The request for proposals must list the federally recognized 
Indian tribes in the State that provided a statement under subsection 1 to the commission 
indicating that they wished to be included in a partnership for the operation of or 
ownership in a casino and require a bid submission to include a partnership agreement 
that includes each of the tribes listed. 
Nothing in this section precludes an entity that is not a federally recognized Indian tribe 
from submitting a bid to the commission as long as the entity that is not a federally 
recognized Indian tribe has entered into a partnership agreement with the federally 
recognized Indian tribes that provided a statement to the commission indicating that they 
wished to be in a partnership for the operation of or ownership in a casino. The 
commission may require submission of documented expert analysis from a bidder to 
support the proposals submitted by the bidder. 
5.  Consideration of bids for privilege to submit casino operator license 
application to the board for a northern casino.  A bidder seeking award of the 
privilege to submit an application to the board for a license to operate a casino in 
Washington County or Aroostook County shall comply with the requirements determined 
by the commission, including the requirement that proposals include a partnership with at 
least 2 federally recognized Indian tribes in the State regarding operation of the casino or 
ownership in the casino, or both.  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 $100,000 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 155, subchapter 1-A and rules adopted pursuant to 
that subchapter. 
6.  Request for proposals; factors; northern casino.  When considering bids 
received in response to a request for proposals prescribed in this section for a location in 
Washington County or Aroostook County, the commission 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 $20,000,000 for a casino facility.  Land acquisition, license fees 
and off-site improvements are not considered to be part of the minimum capital 
investment; 
(2)  The potential gross and net income to be generated by the bidder based upon 
documented, expert market analysis; 
(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 gaming facilities in other 
states or provinces; 
(4)  The extent to which the bidder's proposed gambling facility can reasonably 
be expected to serve as a regional recreational gambling destination; 
(5)  The bidder's proposed capital investment in a gambling facility, proposed 
amenities associated with the facility and timing of capital investment 
expenditures in terms of ensuring the facility is profitable; and 
(6)  Other factors, properly disclosed in the commission's request for proposals, 
that the commission determines to be relevant; 
B.  Economic development factors, including: 
(1)  The bidder's plan to be part of or enter into a partnership with 2 or more 
federally recognized Indian tribes in the State and the extent to which the 
proposed gambling facility will maximize employment opportunities and 
economic benefits for all federally recognized Indian tribes in the State; 
(2)  The bidder's workforce development plan and the extent to which it will 
maximize use of the region's existing labor force; 
(3)  The impact on economic development, existing and planned, in the region of 
the proposed gambling facility; and 
(4)  Other factors, properly disclosed in the commission's request for proposals, 
that the commission determines to be relevant; 
C.  Site location factors, including: 
(1)  The adequacy of transportation routes leading to the proposed location of the 
gambling facility; 
(2)  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; 
(3)  The proximity of the proposed location of the gambling facility to major 
transportation routes and the Canadian border in order to maximize patronage 
from cross-border 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 proposed gambling 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. 
7.  Bid award factor priorities; northern casino.  The commission shall develop a 
system of assigning points to the factors required to be considered under subsection 6.  
The commission is authorized to hire or enter into a contract with vendors experienced in 
evaluating business plans for large-scale development and the effects 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 commission shall request, and take 
into consideration when awarding a bid, comment from members of the 4 federally 
recognized Indian tribes in the State for the purpose of determining which proposal 
provides the greatest employment opportunities and economic benefits to all of the 4 
federally recognized Indian tribes.  Development of a point system must ensure that 
factors that support the following are awarded the highest point value: 
A.  The maximum potential increase in employment opportunities and economic 
benefits for all federally recognized Indian tribes in the State; and 
B.  The representation and incorporation by the proposed casino of the character of 
the State generally and, in particular, the character of the surrounding region 
consistent with historic uses, local planning and zoning requirements. 
8.  Notice of award.  Upon award of the privilege to submit an application for a 
casino operator license to the board, the commission shall identify in a document 
provided to all bidders and posted on the board's publicly accessible website how the 
successful bidder's proposal supported the priorities described in subsection 7. 
9.  Contract required; northern casino.  A person who is selected as a 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; 
B.  Disclosure of partnership agreements with at least 2 of the federally recognized 
Indian tribes in the State and a framework of compensation to be paid to the parties in 
the partnership for failure to abide by those agreements; 
C.  An agreement that, regardless of whether the casino is operated on land owned by 
a federally recognized Indian tribe, tribal reservation land, tribal territory or land held 
in trust by a tribe, the casino is subject to the provisions of this chapter and the laws 
of the State, generally; and 
D.  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 2% but 
no greater than 3% 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 §1018, sub-§1, ¶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 1, 2015. 
Sec. 10.  8 MRSA §1018, sub-§1, ¶C-1, as amended by PL 2011, c. 417, §4, is 
further amended to read: 
C-1.  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 
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-§1, ¶¶C-2 to C-4 are enacted to read: 
C-2.  The fee for a casino operator license for a casino in Washington County or 
Aroostook County, issued in accordance with section 1011-B, is $1,000,000, 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 1011-B, subsection 5 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 Washington 
County or Aroostook County, issued subsequent to the award by competitive bidding 
in accordance with section 1011-B, is $100,000 and is due 5 years after the initial fee 
required under paragraph C-2 and every 5 years thereafter. 
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-§1-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; 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 5 
years from the date of issuance unless revoked or surrendered pursuant to subchapter 5. 
2-B.  Annual reinvestment requirements; northern casino.  A casino operator 
licensed by the board pursuant to section 1011, subsection 2-C operating a casino in 
Washington County or Aroostook County may deposit with the board the percentage of 
net slot machine income and net table game income required as an annual reinvestment 
pursuant to the contract executed in accordance with section 1011-B, subsection 9.  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 shall be 
deposited to the General Fund. 
3-A.  Licensee other than original applicant; contract applicable.  If a person 
initially licensed to operate a casino in Washington County or Aroostook 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 1011-B, subsection 9.  A subsequent licensee is 
required to submit an application to the board and is subject to the licensing qualifications 
prescribed under section 1016. 
Sec. 15.  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, except that a casino operator license may be issued pursuant to section 
1011-B for a casino located in Washington County or Aroostook County if it is located at 
least 75 miles from a licensed casino or slot machine facility.  This subsection 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. 
Sec. 16.  8 MRSA §1019, sub-§7, as amended by PL 2011, c. 417, §6, is repealed. 
Sec. 17.  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 shall determine the number of slot 
machines to be registered in the State for casinos initially licensed prior to January 1, 
2015.  The board shall 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 1-B, the total 
number of slot machines registered in the State for operation at facilities initially 
licensed prior to January 1, 2015 may not exceed 3,000; and 
B.  A slot machine operator initially licensed prior to January 1, 2015 may not 
operate more than 1,500 slot machines at any one commercial track and a casino 
operator initially licensed prior to January 1, 2015 may not operate more than 1,500 
slot machines at a casino.; and 
C.  A casino operating in Washington County or Aroostook County, licensed 
pursuant to section 1011-B, may operate up to 250 slot machines for the 3 years after 
commencement of slot machine operation at the casino and up to 350 machines after 
years of slot machine operation at the casino. 
Sec. 18.  8 MRSA §1036, sub-§2-D is enacted to read: 
2-D.  Distribution of slot machine income and table game income from a 
northern casino.  A casino operator licensed to operate a casino in Washington County 
or Aroostook County pursuant to section 1011-B shall collect and distribute 46% 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. 
Sec. 19.  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 a casino licensed pursuant to the Maine Revised Statutes, Title 
8, section 1011-B in either Washington County or Aroostook County and amending the 
laws governing the issuance of casino operator licenses and the regulation of casinos 
based on rules of the Gambling Control Board that currently govern those functions. 
SUMMARY 
This bill is presented by the Joint Standing Committee on Veterans and Legal Affairs 
pursuant to Resolve 2013, chapter 111.  The bill establishes a competitive bid process for 
a casino in either Washington County or Aroostook County, the operation of which is 
stated to maximize economic and employment benefits for the 4 federally recognized 
Indian tribes in the State.  The bill establishes the Casino Development Commission, 
which is an independent board of 5 members appointed by 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.  Prior to the commission's submitting a request for proposals for a casino operator 
license in either Washington County or Aroostook County, voters would have to approve 
the operation of a casino by a countywide referendum.  The referendum must be held on 
the same date as a statewide election and no sooner than June 1, 2016 and no later than 
July 1, 2017.  The fee to submit a bid to the commission is $100,000.  The bill 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 $20,000,000 capital 
investment in the casino and partnership with at least 2 federally recognized Indian tribes 
in the State. 
Under the bill, the commission is directed to develop a point system for the factors to 
be considered in evaluating proposals and give priority to proposals that maximize the 
employment and economic benefits to federally recognized Indian tribes in 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 bill is $1,000,000 for a 5-year term with a 
renewal fee of $100,000. 
The bill sets the distribution of net slot machine revenue for the casino at 46% and 
sets the distribution of net table game revenue for the casino at 16%.  The bill authorizes 
the Joint Standing Committee on Veterans and Legal Affairs to submit legislation 
establishing a distribution of the slot machine and table game revenue required to be paid 
by the casino. 
Approved: 06/16/15
LD     
LR 2065(01)
Fiscal Detail and Notes
The bill creates a commission to use a competitive bid process to award the privilege to apply for a casino to a single 
applicant. Bidders will pay a $100,000 bidding fee to win the right to be the applicant. Any bidding fees will be 
credited to the General Fund. The Gambling Control Board will accept an application for a casino license in either 
Aroostook County or Washington County from the winning bidder as long as the voters of the county where the 
proposed casino will be located have voted to approve a casino. Only one casino, in either Aroostook or Washington 
County, may be licensed.
The facility would be taxed at the rate of 46% of net slot income and 16% of net table game income. The bill requires a 
casino, beginning no sooner than 5 years after operation of slot machines, to make capital improvements to the casino 
using 2% to 3% of both net slot machine and net table game income or direct those funds to the Gambling Control 
Board. This fiscal note assumes that the facility will not direct these funds to the Gambling Control Board. The bill 
limits the number of slot machines to 250 for the first 3 years of the casino's operation, then allows 350 slot machines 
after that. 250 slot machines and 10 table games for the first 3 years of the casino's operation would generate estimated 
annual revenue of $7,166,711 credited to the Gambling Control Board. 350 slot machines and 10 table games starting 
in the fourth year of the casino's operation would generate estimated annual revenue of $9,804,000 for the Gambling 
Control Board. This revenue will be retained within the board until the Legislature decides on a distribution.
If Washington and Aroostook counties choose to hold referendums during the state primary election in June 2016, the 
Department of Secretary of State would need a General Fund appropriation of $11,772 for ballot printing costs and 
postage.  If the counties elect to hold referendums during the general election in November 2016, the Department of 
Secretary of State would need a General Fund appropriation of $14,464 for ballot printing costs and postage only if the 
questions require printing a separate ballot.
An Act To Authorize a Casino To Benefit Federally Recognized Indian Tribes in the State
Fiscal Note for Original Bill
Committee: Veterans and Legal Affairs
Fiscal Note Required: Yes
Fiscal Note
Contingent current biennium referendum costs - General Fund
Contingent current biennium cost increase - Other Special Revenue Funds
Contingent current biennium revenue increase - General Fund
Contingent current biennium revenue increase - Other Special Revenue Funds
LR2065(01) - Fiscal Note - Page 1 of 2
Starting in
Summary of Casino Revenue
Years 1 - 3
Year 4
Gross Slot Income
$139,156,250
$194,818,750
Player Payback - Slot Income
$124,823,156
$174,752,419
Net Slot Income
$14,333,094
$20,066,331
Operator Share of Net Slot Income - 54%
$7,739,871
$10,835,819
Share of Net Slot Income to Gambling Control Board - 46%
$6,593,223
$9,230,512
Net Table Game Income
$3,584,300
$3,584,300
Operator Share of Net Table Game Income - 84%
$3,010,812
$3,010,812
Share of Net Table Game Income to Gambling Control Board - 16%
$573,488
$573,488
State Revenues - Other Special Revenue Funds
    Gambling Control Board (from 46% slot and 16% table income)
$7,166,711
$9,804,000
    Registration fees @ $100 per slot or table per year
$26,000
$36,000
    License Renewal Fee - due after 5 years
$100,000 (one-time)
State Revenues - General Fund
    Bidding Fee - assumes 2 bidders
$200,000 (one-time)
    Casino Operator License - 1st year only
$1,000,000 (one-time)
Summary of State Expenditures - Other Special Revenue Funds
      Public Safety - Gambling Control Board
$523,510
$523,510
Each non-refundable bid proposal will generate $100,000 in General Fund revenue. The casino operator license will 
bring in General Fund revenue of $1,000,000 in the first year and registration fees of $100 per slot machine and per 
table game will generate Other Special Revenue Funds revenue of $36,000 annually. A one-time renewal fee due five 
years after the casino begins operating will generate Other Special Revenue Funds revenue of $100,000. Annual State 
costs associated with 5 inspectors, an auditor and other related expenses are estimated to be $523,510. The Department 
of Public Safety will require Other Special Revenue Funds allocations of $523,510 to cover the annual state costs.
This legislation is expected to have only a minor impact on revenues generated by the Hollywood and Oxford casinos.
Annual Estimates
LR2065(01) - Fiscal Note - Page 2 of 2