An Act To Provide Income Tax Relief by Expanding Gaming Opportunities
Maine Legislature, Session 127, LD 1280
Committee: Veterans and Legal Affairs
Sponsors: PARRY, COLLINS, FREDETTE, MAREAN, TIMMONS, BAKER, DUTREMBLE, KATZ, VALENTINO
Amends: 5 MRSA §1518-B, 8 MRSA §1011, 8 MRSA §1018, 8 MRSA §1019, 8 MRSA §1020, 8 MRSA §1036

Legislative Document 
No. 1280 
H.P. 876 
House of Representatives, April 9, 2015 
An Act To Provide Income Tax Relief by Expanding Gaming 
Opportunities 
Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative PARRY of Arundel. 
Cosponsored by Senator COLLINS of York and 
Representatives: FREDETTE of Newport, MAREAN of Hollis, McCABE of Skowhegan, 
TIMMONS of Cumberland, Senators: BAKER of Sagadahoc, DUTREMBLE of York, KATZ 
of Kennebec, VALENTINO of York. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §1518-B is enacted to read: 
§1518-B.  Income Tax Relief Fund 
1.  Established.  The Income Tax Relief Fund, referred to in this section as "the 
fund," is established as a nonlapsing fund within the Department of Administrative and 
Financial Services. 
2.  Purpose.  The purpose of the fund is to provide income tax relief for the citizens 
of this State. 
3.  Funding.  The fund receives money pursuant to Title 8, section 1036, subsection 
2-D, paragraph J.  The fund may receive money from other sources. 
4.  Allocations.  Allocations from the fund must be made to provide income tax relief 
to the citizens of this State. 
Sec. 2.  8 MRSA §1011, sub-§4, as amended by PL 2005, c. 663, §6, is further 
amended to read: 
4.  Requirement for license; agreement with municipality where slot machines 
are located.  A slot machine operator or a person who is initially granted a casino 
operator license after January 1, 2015 shall enter into an agreement with the municipality 
where the slot machine operator's or casino operator's slot machines are located that 
provides for revenue sharing or other compensation, including, but not limited to, a 
provision requiring the preparation, in conjunction with the municipality, of a security 
plan for the premises on which the slot machines are located.  The revenue-sharing 
agreement must provide for a minimum payment to the municipality of 3% of the net slot 
machine income derived from the machines located in the municipality. 
Sec. 3.  8 MRSA §1018, sub-§1-B is enacted to read: 
1-B.  Fee for initial casino operator license granted after January 1, 2015.  
Notwithstanding subsection 1, paragraphs C and C-1 and subsection 1-A, a person who is 
initially granted a casino operator license after January 1, 2015 shall pay an initial license 
fee of $5,000,000. 
Sec. 4.  8 MRSA §1019, sub-§6, as amended by PL 2011, c. 417, §5, is repealed. 
Sec. 5.  8 MRSA §1019, sub-§7, as amended by PL 2011, c. 417, §6, is further 
amended to read: 
7.  Countywide referendum; municipal vote.  After January 1, 2011, any proposed 
casino or slot machine facility may not be issued a license unless it has been approved by 
a statewide countywide referendum vote and a vote of the municipal officers or 
municipality in which the casino or slot machine facility is to be located, except that a 
commercial track licensed to operate slot machines on January 1, 2011 is only required, 
as a condition to obtain a casino license, to receive approval to operate a casino by means 
of a referendum of the voters of the county in which the commercial track is located. 
Sec. 6.  8 MRSA §1020, sub-§3, ¶A, as amended by PL 2011, c. 585, §8, is 
further amended to read: 
A.  Except for slot machines used for training and educational purposes at 
postsecondary institutions as provided by section 1011, subsection 1-B, the total 
number of slot machines registered in the State may not exceed 3,000 7,500; and 
Sec. 7.  8 MRSA §1036, sub-§2-D is enacted to read: 
2-D.  Distribution of net slot machine income and net table game income from 
casino with a harness racing track initially licensed to operate slot machines after 
January 1, 2015.  A casino operator with a harness racing track that was initially 
licensed to operate slot machines and table games after January 1, 2015 shall collect and 
distribute 46% of the net slot machine income from slot machines and 16% of net table 
game income from table games operated by the casino operator to the board for 
distribution by the board as follows: 
A.  Two and one-half percent of the sum received from the net slot machine income 
and net table game income must be deposited to the General Fund for administrative 
expenses of the board in accordance with rules adopted by the board under section 
1003, subsection 1, paragraph B, except that of the amount calculated pursuant to this 
paragraph, $100,000 must be transferred annually to the Gambling Addiction 
Prevention and Treatment Fund established by Title 5, section 20006-B; 
B.  Twenty percent of the sum received from the net slot machine income and net 
table game income must be forwarded by the board to the Treasurer of State, who 
shall credit the money to the fund established in section 298 to supplement harness 
racing purses; 
C.  Five percent of the sum received from the net slot machine income and net table 
game income must be credited by the board to the Sire Stakes Fund created in section 
281; 
D.  Eight and one-half percent of the sum received from the net slot machine income 
and net table game income must be forwarded by the board to the Treasurer of State, 
who shall credit the money to the Agricultural Fair Support Fund established in Title 
7, section 91; 
E.  Three percent of the sum received from the net slot machine income and net table 
game income must be forwarded directly to the municipality in which the slot 
machines and table games are located; 
F.  Five percent of the sum received from the net slot machine income and net table 
game income must be forwarded directly to the county in which the slot machines 
and table games are located; 
G.  Two percent of the sum received from the net slot machine income and net table 
game income must be forwarded directly to the municipalities that abut the 
municipality in which the slot machines and table games are located. The revenues 
must be paid in equal portions to each municipality; 
H.  Two and one-half percent of the sum received from the net slot machine income 
and net table game income must be forwarded by the board to the Treasurer of State, 
who shall credit the money to the Fund to Stabilize Off-track Betting Facilities 
established by section 300, as long as a facility has conducted off-track wagering 
operations for a minimum of 250 days during the preceding 12-month period in 
which the first payment to the fund is required; 
I.  One and one-half percent of the sum received from the net slot machine income 
and net table game income must be forwarded by the board to the Treasurer of State, 
who shall credit the money to the Coordinated Veterans Assistance Fund under Title 
37-B, section 514; and 
J.  Fifty percent of the sum received from the net slot machine income and net table 
game income must be forwarded by the board to the Treasurer of State, who shall 
credit the money to the Income Tax Relief Fund established in Title 5, section 
1518-B. 
Sec. 8.  Issuance of casino operator license.  Notwithstanding the Maine 
Revised Statutes, Title 8, chapter 31, subchapter 2, or any other provision of law, the 
Department of Public Safety, Gambling Control Board shall issue a casino operator 
license according to the provisions of this section to the person who is the best-value 
bidder selected by the Independent Facility Location Commission, established in 
subsection 1, in accordance with this section.  The board may not issue a license pursuant 
to this section until the contract requirements described in subsection 8 are met. 
1.  Commission established.  The Independent Facility Location Commission, 
referred to in this section as "the commission," is established as an independent 
commission. 
2.  Duties.  The  commission shall evaluate and award a casino operator's license to 
the best-value bidder pursuant to this section. 
3.  Members.  The commission is made up of 7 members, appointed by the Governor 
and confirmed by the Senate.  The members shall appoint a chair at the commission's first 
meeting.  A member of the commission must have experience in public accounting, 
finance, land use, large-scale development or a field requiring expertise in fiscal matters. 
A member of the commission may not: 
A.  Have a direct or indirect legal, equitable or beneficial ownership interest in, or 
any ability to influence, manage or otherwise control, any gaming interest applying 
for licensure, presently licensed, otherwise authorized or eligible to participate in 
gaming in the State, including lotteries, racing, charitable and nonprofit bingo or 
beano and games of chance, high-stakes bingo or beano and a commercial casino; 
B.  Have membership in, or an affiliation with, a federally recognized Indian tribe 
eligible to conduct bingo or beano and games of chance under Title 17, chapter 13-A 
or 62; 
C.  Be an elected official of state or local government; 
D.  Have a legal, equitable or beneficial interest in a slot machine or table game 
distributor, gambling services vendor or a provider of any independent professional 
services, including legal, accounting or consulting, to a slot machine facility or casino 
operator licensed in the State; or 
E.  Hold a direct or indirect interest in, represent or be employed by a person or 
organization submitting a bid. 
4.  Solicit bids.  In accordance with the process for a competitive bid outlined in Title 
5, chapter 155, subchapter 1-A, the commission shall solicit bids for the operation of a 
casino to be located in Cumberland County or York County. 
5.  Submission deadline; application fee.  A bid submitted pursuant to this section 
must be: 
A.  Submitted no later than 120 days after the effective date of this section; 
B.  Accompanied by a nonrefundable application fee of $250,000, which must be 
credited to an Other Special Revenue Funds account within the division of purchases 
within the Department of Administrative and Financial Services to be used to defray 
the costs of managing the application process and funding the commission; and 
C.  Accompanied by a nonrefundable investigative fee of $100,000, which must be 
credited to an Other Special Revenue Funds account within the division of purchases 
within the Department of Administrative and Financial Services to be used to defray 
the costs of any investigation required by the Department of Public Safety. 
6.  Information provided by bidders.  A bid submitted pursuant to this section must 
include the building plans and site designs for the proposed casino and information 
regarding: 
A.  The bidder's financial capacity and access to capital for use in maintaining the 
proposed casino; 
B.  How the proposed location of the proposed casino would benefit the State; 
C.  The bidder's knowledge and experience in tourism, hospitality and development 
in this State; 
D.  The impact that the bidder's overall proposal will have on the economy, 
employment and revenues of the host municipality, abutting municipalities, the host 
county and the State; and 
E.  The bidder's willingness to construct a destination resort gaming facility with 
harness racing, slot machines and table games. 
A bidder must include with the information submitted pursuant to this subsection a 
statement that the bidder has not been found to have violated any state or federal law or 
rule governing gaming and attesting to the good moral character of the bidder and any 
principal officer of the bidder. 
7.  Award of bid.  The commission shall review the bids submitted pursuant to this 
section, consider the information provided pursuant to subsection 6 and award the 
contract to the best-value bidder.  The commission shall give preference to any bidder 
who has demonstrated experience in the development of commercial, retail and 
hospitality projects within this State. 
8.  Contract requirements.  As part of the contract awarded pursuant to this section, 
the bidder must agree to: 
A.  An initial minimum capital investment of $250,000,000; 
B.  Construct in Cumberland County or York County a destination resort gaming 
facility with harness racing, slot machines and table games and a resort that includes 
a hotel, spa and pool and multiple dining options; 
C.  Construct a 5/8-mile, all-weather-surface harness racing track located at the 
gaming facility; 
D.  Include an entertainment venue at the resort; and 
E. Include retail space at the resort. 
SUMMARY 
This bill establishes the Independent Facility Location Commission to solicit bids for 
the operation of a casino to be located in Cumberland County or York County.  The 
commission must select the best-value bidder to be issued a casino operator license by the 
Department of Public Safety, Gambling Control Board for an initial license fee of 
$5,000,000.  The winning bidder must construct a destination resort gaming facility with 
harness racing, slot machines and table games and a resort that includes a hotel, spa, pool, 
multiple dining options, entertainment venue, retail space and harness racing track.  The 
casino must be approved by the voters of the county in which it is to be located and by 
the municipal officers or municipality in which the casino is to be located.  The casino 
operator must enter into an agreement with the municipality where the slot machines are 
located that provides for revenue sharing or other compensation of at least 3% of the net 
slot machine income.  The limit on the number of slot machines that may be registered in 
the State is raised from 3,000 to 7,500. 
The bill establishes the Income Tax Relief Fund.  Allocations from the fund must be 
made to provide income tax relief to the citizens of this State. 
The casino operator must distribute 46% of net slot machine income and 16% of net 
table game income to the Gambling Control Board for distribution by the board as 
follows: 
1.  Two and one-half percent to the General Fund for the administrative expenses of 
the Gambling Control Board and for the Gambling Addiction Prevention and 
Treatment Fund; 
2.  Twenty percent to supplement harness racing purses; 
3.  Five percent to the Sire Stakes Fund; 
4.  Eight and one-half percent to the Agricultural Fair Support Fund; 
5.  Three percent to the municipality in which the slot machines and table games are 
located; 
6.  Five percent to the county in which the slot machines and table games are located; 
7.  Two percent to the municipalities that abut the municipality in which the slot 
machines and table games are located; 
8.  Two and one-half percent to the Fund to Stabilize Off-track Betting Facilities; 
9.  One and one-half percent to the Coordinated Veterans Assistance Fund; and 
10.  Fifty percent to the Income Tax Relief Fund.