An Act To Authorize Advance Deposit Wagering for Horse Racing
Maine Legislature, Session 127, LD 1279
Committee Amendment CA_A_H614 (House)
Amends: 8 MRSA §1001, 8 MRSA §1003

COMMITTEE AMENDMENT "{J" to H.P. 875, L.D. 1279, Bill, "An Act To 
Authorize Advance Deposit Wagering for Horse Racing" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec.1. 8 MRSA §1001, sub-§§1-A and 1-B are enacted to read: 
1-A. Advance deposit wagering. "Advance deposit wagering" means a form of 
pari-mutuel wagering on harness or thoroughbred races in which wagers are made by 
telephone, via electronic device or in person and the bettor deposits funds in a wagering 
account administered by an advance deposit wagering licensee from which the advance 
deposit wagering licensee makes wagers on behalf of the bettor and to which the advance 
deposit wagering licensee deposits money from winning wagers awarded to the bettor. 
1-B. Advance deposit wagering licensee. "Advance deposit wagering licensee" 
means a person that is chosen by competitive bid and licensed by the board pursuant to 
subchapter 7 to conduct advance dtmosit wagering. 
Sec. 2. 8 MRSA §1001, sub-§29-C is enacted to read: 
29-C. Net commission. "Net commission" means the amount of wagers placed via 
advance deposit wagering after payment of money from winning wagers to winning 
bettors less a percentage paid to the board for administrative expenses of the board and 
less an amount retained by the advance deposit wagering licensee. 
Sec. 3. 8 MRSA §1003, sub-§1, 1J, as amended by PL 2011, c. 469, §1, is 
further amended to read: 
J. 
Negotiate consent agreements to resolve administrative violations or 
investigations; a 
Sec. 4. 8 MRSA §1003, sub-§1, 11(, as enacted by PL 2011, c. 469, §2, is 
amended to read: 
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COMMITIEE AMENDMENT "A" to H.P. 875, L.D. 1279 
K. Ensure that public safety inspectors employed by the board assigned to enforce 
the provisions of this chapter at the site of a casino may, in the absence of a sworn 
law enforcement officer, detain any person who is suspected of violating any 
provision of this chapter. Such detention must comply with federal and state laws 
including the provisions of Title 17-A, section 107~; and 
Sec. 5. 8 MRSA §1003, sub-§1, ~ 
is enacted to read: 
L. Regulate, supervise and exercise general control over the operation of advance 
deposit wagering in the State. 
Sec. 6. 8 MRSA §1003, sub-§2, ,r,rs and T, as enacted by PL 2003, c. 687, Pt. 
A, §5 and affected by Pt. B, §11, are amended to read: 
S. 
Prepare and submit to the department a budget for the administration of this 
chapter; aftd 
T. 
Keep accurate and complete records of its proceedings and certify the records as 
may be appropriat~; and 
Sec. 7. 8 MRSA §1003, sub-§2, ,ru is enacted to read: 
U. Adopt rules relating to the conduct of advance deposit wagering, including but 
not limited to the following: 
(1) Requirements for licensure to conduct advance deposit wagering; 
(2) The prevention of any fraud or deception upon an advance deposit wagering 
account holder; 
(3) Distributions of account statements to advance deposit wagering account 
holders from the advance deposit wagering licensee; 
(4) Establishing a definition of an abandoned advance dtmosit wagering account 
and provisions for disposition of funds in an abandoned account: 
(5) Prescribing methods for verifying residency and age of an applicant for an 
advance deposit wagering account: 
( 6) Prescribing methods for verifying that an applicant for an advance deposit 
wagering account is a natural person and not a custodian, beneficiary, joint trust 
corporation or other organization: 
(7) 
Prescribing methods by which deposits are made to advance deposit 
wagering accounts. 
The methods prescribed must prohibit the use of the 
electronic benefits transfer system administered by the Department of Health and 
Human Services under Title 22, chapter 1, subchapter 1-A: and 
(8) 
Prohibiting the assignment or transfer of an advance deposit wagering 
account from an authorized account holder to another person. 
Rules initially adopted as required by this paragraph are major substantive rules as 
described in Title 5, chapter 375, subchapter 2-A. Rules adopted after the first year 
of operation of advance dtmosit wagering conducted by an advance deposit wagering 
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COMMITTEE AMENDMENT ,A,, to H.P. 875, L.D. 1279 
licensee are routine technical rules as described in Title 5, chapter 375, subchapter 
2-A. 
Sec. 8. 8 MRSA c. 31, sub-c. 7 is enacted to read: 
SUBCHAPTER 7 
ADVANCE DEPOSIT WAGERING 
§1071. Advance deposit wagering license awarded pursuant to competitive bid 
The board shall develop a request for proposals for the purpose of awarding one 
bidder the privilege to be licensed to conduct advance deposit wagering. The request for 
proposals must instruct potential bidders to propose the method by which they will 
conduct advance deposit wagering that provides the maximum benefit to the harness 
racing industry and the State in a manner that ensures wagering is conducted by residents 
of the State who are verified to be 18 years of age or older. A bidder seeking award of a 
license to conduct advance deposit wagering shall comply with the requirements 
determined by the board. The board shall require that a proposal include a nonrefundable 
application fee of $1,000 and an agreement to pay the costs of the board for processing an 
application and performing background investigations, as described in this subchapter. 
The board shall ensure that the request for proposals clearly identifies the deadline for 
submission and all bid requirements. The board 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. 
1. Eligible bidders; bid proposal factors. The board may accept bids from an 
entity that for a period of at least 2 years has been licensed to accept wagers on horse 
racing as either the operator of a commercial track. as an off-track betting facility 
licensed under section 275-D or as an entity licensed in another state to conduct advance 
deposit wagering. When considering bids for the privilege to be licensed to conduct 
advance deposit wagering. the board shall consider the following: 
A. 
The financial suitability of the bidder to operate advance deposit wagering. 
including purchase of a bond to secure the accounts of advance deposit wagering 
bettors: 
B. The extent to which the bidder's proposal to conduct advance deposit wagering 
will benefit the harness racing industry in the State and the General Fund: 
C. The percentage of wagers the bidder proposes to pay to the board to cover the 
costs of the board for administration and oversight of advance deposit wagering and 
to make distributions required under section 1072; 
D. The adequacy of systems the bidder will use to conduct advance deposit wagering 
to ensure that bettors who establish accounts to place bets on horse racing via 
advance deposit wagering are 18 years of age or older and residents of the State: 
E. The likelihood that the bidder will meet the requirements for licensure to conduct 
advance deposit wagering as prescribed by the rules of the board: 
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COMMITTEE AM.ENDMENT"~ "to H.P. 875, L.D. 1279 
F. The methods by which the bidder will provide access to systems and records to 
facilitate adequate monitoring and enforcement by the board; and 
G. Factors other than those in paragraphs A to F disclosed in the board's request for 
proposals that the board determines to be relevant. 
2. Bid award factor priorities. The board shall develop a system of priority by 
assigning points to the factors required to be considered under subsection 1. 
3. Contract required. In order to be selected as the winning bidder for the privilege 
to be licensed by the board to conduct advance deposit wagering. a person must agree to 
enter into a contract with the board that obligates the advance deposit wagering licensee 
to the proposals made in the bid submitted in accordance with this section. The contract 
must include a framework of reasonable financial penalties for failure of the advance 
deposit wagering licensee to comply with the terms of the contract and rules of the board. 
The licensee may not conduct advance deposit wagering prior to the execution of the 
contract required by this subsection. 
4. Application; investigation. In order to be licensed by the board to conduct 
advance deposit wagering, a person that is selected as the winning bidder in accordance 
with this subchapter must complete an application using forms developed by the board 
and comply with additional requests the board determines necessary to investigate the 
suitability of the winning bidder to be issued a license. 
5. 
Authority to conduct advance deposit wagering. 
A license issued in 
accordance with this subchapter authorizes the licensee to conduct advance deposit 
wagering in accordance with the requirements of this subchapter and rules of the board. 
A licensee may accept wagers made from advance deposit wagering account holders by 
telephone and via electronic device. If a licensee is also licensed to accept wagers on live 
or simulcast horse racing as a commercial track or off-track betting facility under this 
Title. the licensee may accept in-person advance deposit wagers at the commercial track 
or off-track betting facility. 
A person that facilitates an advance deposit wagering 
account on behalf of a resident of this State or accepts wagers on horse races from a 
resident of this State without a license is guilty of unlawful gambling under Title 17 -A. 
chapter 39. Upon notification by an individual, or upon its own motion, the board shall 
direct any person that facilitates advance deposit wagering without a license to 
immediately cease operations and notify the person that the person may be subject to 
prosecution for unlawful gambling. 
6. License fee; term. A license issued pursuant to this subchapter authorizes the 
licensee to conduct advance deposit wagering for a period of 5 years. The fee for a 
license to conduct advance deposit wagering is $500. The renewal fee for a license to 
conduct advance deposit wagering is $250. 
§1072. Distribution of net commission 
The net commission established in the contract executed pursuant to section 1071, 
subsection 3 must be distributed according to this section. 
1. Distribution of net commission from wagers placed on races conducted in 
State. An advance deposit wagering licensee shall collect the net commission from 
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COMMITTEE AMENDMENT "A" to H.P. 875, L.D. 1279 
wagers placed on races conducted at tracks in the State and distribute it to the board for 
distribution as follows. 
A. Ten percent of the net commission must be deposited directly to the General 
Fund. 
B. Twenty percent of the net commission must be distributed to all off-track betting 
facilities licensed under section 275-D so that each off-track betting facility receives 
the same amount. 
C. One percent of the net commission must be distributed to the Sire Stakes Fund 
established under section 281. 
D. Ten percent of the net commission must be distributed to the Agricultural Fair 
Support Fund established under Title 7, section 91 except that, notwithstanding Title 
7, section 91, subsection 2, paragraph A, no portion of the distribution required by 
this paragraph may be distributed to a commercial track. 
E. 
Twenty-four percent of the net commission must be distributed to the fund 
established under section 298 to supplement harness racing purses. 
F. Twenty percent of the net commission must be distributed to the track where the 
race upon which the wager was placed was conducted. 
G. Fifteen percent of the net commission must be distributed to all commercial 
tracks, with each commercial track receiving a portion determined by multiplying 
that 15% times a fraction, the numerator of which is the minimum number of days of 
racing the commercial track is required by law to conduct annually in order to retain 
its commercial track license and the denominator of which is the sum of the number 
of days of racing all the commercial tracks are required to conduct in order to retain 
their commercial track licenses. 
2. Distribution of net commission from wagers placed on races conducted 
outside State. An advance deposit wagering licensee shall collect the net commission 
from wagers placed on races conducted at tracks outside the State and distribute it to the 
board for distribution as follows. 
A. Ten percent of the net commission must be deposited directly to the General 
Fund. 
B. Thirty-six percent of the net commission must be distributed to all off-track 
betting facilities licensed under section 275-D so that each off-track betting facility 
receives the same amount. 
C. One percent of the net commission must be distributed to the Sire Stakes Fund 
established under section 281. 
D. Ten percent of the net commission must be distributed to the Agricultural Fair 
Support Fund established under Title 7, section 91 except that, notwithstanding Title 
7, section 91, subsection 2, paragraph A, no portion of the distribution required by 
this paragraph may be distributed to a commercial track. 
E. Seven percent of the net commission must be distributed to the fund established 
under section 298 to supplement harness racing purses. 
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F. Thirty-six percent of the net commission must be distributed to all commercial 
tracks, with each commercial track receiving a portion determined by multiplying 
that 36% times a :fraction, the numerator of which is the minimum number of days of 
racing the commercial track is required by law to conduct annually in order to retain 
its commercial track license and the denominator of which is the sum of the number 
of days of racing all the commercial tracks are required to conduct in order to retain 
their commercial track licenses.' 
SUMMARY 
This amendment replaces the bill and is the majority report of the committee. The 
amendment establishes a competitive bid process, administered by the Department of 
Public Safety, Gambling Control Board, to authorize one entity to be licensed to conduct 
advance deposit wagering in the State on horse racing. 
The board is charged with 
adopting rules to govern the conduct of advance deposit wagering in addition to 
administering the licensing process and enforcement of the laws and rules governing the 
gambling activity. 
Advance deposit wagering is a method of wagering on horse racing in which bets are 
made electronically, by telephone or in person. A bettor establishes an account with the 
licensee from which the licensee makes withdrawals to place bets on behalf of the 
account holder and into which the licensee deposits income from winning bets. 
Under the amendment, a person is eligible to submit a bid to become the single 
advance deposit wagering licensee in the State if the person is a commercial track or off-
track betting facility licensed in the State or if the person is an entity already licensed to 
conduct advance deposit wagering in another state. The person is required to execute a 
contract with the board. The contract will govern the amount of the net commission of 
advance deposit wagers that will be distributed by the board to recipients such as 
commercial tracks, the Sire Stakes Fund, the Agricultural Fair Support Fund, off-track 
betting facilities, harness racing purses and the General Fund. The amendment provides 
the percentages of the net commission that must be distributed by the board to these 
recipients. 
FISCAL NOTE UQUIIW> 
(See attaclled) 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
Approved: 03/24/16 
feac::.. 
LD 1279 
LR 685(02) 
An Act To Authorize Advance Deposit Wagering for Horse Racing 
Fiscal Note for Bill as Amended by Committee Amendment •ft [H -/p ,0 
Committee: Veterans and Legal Affairs 
Fiscal Note Required: Yes 
Fiscal Note 
Future biennium revenue increase - Other Special Revenue Funds 
FY 2015-16 
FY 2016-17 
Projections 
FY 2017-18 
Projections 
FY 2018-19 
$0 
$0 
$0 
$0 
Appropriations/ Allocations 
General Fund 
$0 
$0 
$95,000 
$95,316 
Revenue 
General Fund 
$0 
$0 
$95,000 
$95,316 
Fiscal Detail and Notes 
The bill requires the Gambling Control Board (GCB) within the Department of Public Safety to develop a Request-for-
Proposal to award one bidder the privilege to be licensed to conduct advance deposit wagering for horse races. Bidders 
will pay a $1,000 bidding fee to win the right to administer advance deposit wagering, resulting in $1,000 of General 
Fund revenue for each bid proposal. A license to conduct advance deposit wagering is $500 of General Fund revenue. 
The GCB will require a General Fund appropriation of $95,000 and $95,316 in fiscal year 2017-18 and 2018-19, 
respectively, for one Auditor II position and related costs. 
The advance deposit wager licensee shall collect the net commission from wagers and distribute 10% to the General 
Fund for both intrastate races and interstate races and 35% and 18% to certain Other Special Revenue Funds accounts 
on intrastate races and interstate races, respectively. The amount of revenue from net commissions on wagers will 
depend on the contract between the winning bidder and the GCB, especially the degree to which the winning bidder 
will cover the General Fund costs of $95,000 annually for administration and oversight of advance deposit wagering. 
No estimate of the increase in Other Special Revenue Funds revenue is made at this time. This fiscal note assumes that 
there will be an adequate amount of General Fund revenue from the net commission on wagers to cover the costs of the 
General Fund appropriations to the GCB. 
) 
LR0685(02) - Fiscal Note - Page 1 of 1