An Act To Increase Gaming Opportunities for Charitable Veterans Organizations
Maine Legislature, Session 129, LD 0661
Committee: Veterans and Legal Affairs
Sponsors: MASTRACCIO, HERBIG, BRYANT, EVANGELOS, NADEAU, SHARPE, SKOLFIELD
Amends: 5 MRSA §20006-B, 8 MRSA §1001, 8 MRSA §1011, 8 MRSA §1016, 8 MRSA §1017, 8 MRSA §1018, 8 MRSA §1019, 8 MRSA §1020, 8 MRSA §1031-A, 8 MRSA §1035, 8 MRSA §1036

Legislative Document
No. 661
H.P. 482
House of Representatives, February 7, 2019
An Act To Increase Gaming Opportunities for Charitable Veterans' 
Organizations
Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative MASTRACCIO of Sanford.
Cosponsored by Senator HERBIG of Waldo and
Representatives: BRYANT of Windham, EVANGELOS of Friendship, NADEAU of Winslow, 
SHARPE of Durham, SKOLFIELD of Weld.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §20006-B, sub-§1, as amended by PL 2011, c. 657, Pt. AA, §24, 
is further amended to read:
1.  Fund established.  The Gambling Addiction Prevention and Treatment Fund, 
referred to in this section as "the fund," is established for the purpose of supporting 
gambling addiction analysis, prevention and treatment to be administered by the 
department.  The fund is a dedicated, nonlapsing fund into which payments are received 
in accordance with Title 8, section 1036, subsection subsections 2 and 2-D.
Sec. 2.  8 MRSA §1001, sub-§13-B is enacted to read:
13-B.  Eligible organization.  "Eligible organization" means a charitable nonprofit 
organization that:
A.  Is a veterans' organization exempt from taxation under the United States Internal 
Revenue Code of 1986, Section 501(c)(19);
B.  As of October 1, 2017 has been conducting gaming under Title 17, chapter 13-A 
or 62 for at least 2 consecutive years; and
C.  Has owned, rented or leased for a minimum of 2 consecutive years the premises 
that serve as the primary location of the organization's administrative operations, and 
the premises are located in a municipality in which the voters have approved in a 
referendum election the operation of slot machines by a charitable nonprofit veterans' 
organization.
Sec. 3.  8 MRSA §1011, sub-§2-C is enacted to read:
2-C.  Organizations eligible for slot machine operator license.  Beginning January 
1, 2020, the board may accept an application for a license to operate slot machines from 
an eligible organization.  The application process is governed by this subsection.
A.  An eligible organization shall submit an application demonstrating that it is a 
charitable nonprofit veterans' organization eligible for a license to operate slot 
machines.  A refundable administrative deposit of $2,500 must accompany the 
application.  The eligible organization must:
(1)  Demonstrate that a majority of the revenue, after deductions for reasonable 
expenses, generated from gaming conducted under Title 17, chapter 13-A or 62 
has been used for the charitable purposes of the eligible organization;
(2)  Demonstrate that the premises on which the slot machines will be operated 
have been owned, rented or leased for at least 2 consecutive years, serve as the 
primary location of the organization's administrative operations and are located in 
a municipality in which the voters have approved in a referendum election the 
operation of slot machines by a charitable nonprofit veterans' organization;
(3)  Demonstrate that it has reserved in a segregated account at least $1,000 in 
cash for each slot machine the eligible organization intends to operate if issued a 
license;
(4)  Identify and submit to the board a list of the charitable purposes for which 
the revenue from the operation of the slot machines will be used; and
(5)  Meet other criteria established by the board by rule regarding the licensing 
and operation of slot machines.
B.  The board may not issue a license to an eligible organization unless that eligible 
organization demonstrates compliance with the qualifications and requirements of 
sections 1016 and 1019 and demonstrates that there is no electronic video machine, 
as defined by Title 17, section 1831, subsection 4, or similar machine on the premises 
where the slot machines will be operated.  As used in this paragraph, "electronic 
video machine" and "similar machine" do not include a machine that dispenses 
preprinted lucky seven or similar sealed tickets that the eligible organization is 
licensed to sell under Title 17, chapter 62.
C.  If at any time the number of applications received by the board exceeds the 
number of slot machine licenses that may be granted pursuant to section 1020, 
subsection 3, paragraph D, the board may use a lottery system, as developed by rule, 
to determine the order in which the applications will be considered.
D.   Prior to January 1, 2020, an eligible organization that seeks to obtain a license to 
operate slot machines may file a declaration of intent with the board, accompanied by 
a $125 fee.  The declaration of intent must include the following:
(1)  The name and address of the treasurer of the eligible organization and the 
name of at least one official on the governing board of the eligible organization 
who will submit the application to the board;
(2)  A copy of the deed, rental agreement or lease agreement for the premises 
where the eligible organization intends to operate the slot machines;
(3)  State and federal tax returns of the eligible organization for the immediately 
prior 2 calendar years; and
(4)  Copies of disposition of funds reports from the operation of games of chance 
or beano conducted by the eligible organization for the immediately prior 2 
calendar years.
This paragraph is repealed January 1, 2020.
Sec. 4.  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 Except for a slot machine operator that is an eligible organization, a slot 
machine operator shall enter into an agreement with the municipality where the slot 
machine 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. 5.  8 MRSA §1016, sub-§1, ¶D, as amended by PL 2013, c. 212, §15, is 
further amended to read:
D.  In the case of a person, other than an eligible organization, applying to be a slot 
machine operator or casino operator, the person has sufficient knowledge and 
experience in the business of operating slot machines or casinos to effectively operate 
the slot machine facilities or casino to which the license application relates in 
accordance with this chapter and the rules and standards adopted under this chapter; 
and
Sec. 6.  8 MRSA §1016, sub-§3, as amended by PL 2013, c. 212, §21, is further 
amended to read:
3.  Applicant other than individual.  If the person, other than an eligible 
organization, required to meet the qualifications and suitability requirements specified in 
subsections 1, 1-A and 2 is a business organization, the key executives, directors, officers, 
partners, shareholders, creditors, owners and associates of the person must meet the 
suitability requirements specified in subsection 2. For an eligible organization required to 
meet the qualifications and suitability requirements specified in subsections 1, 1-A and 2, 
at least 2 officers of the governing board of the eligible organization, of whom one is the 
treasurer, must meet the suitability requirements specified in subsection 2.
Sec. 7.  8 MRSA §1017, sub-§1-A is enacted to read:
1-A.  Exception for eligible organization.  Notwithstanding the requirements of 
subsection 1 regarding about whom the information must be supplied, an application 
submitted by an eligible organization must include the information required by subsection 
for at least one officer with decision-making authority in the eligible organization and 
the treasurer of the eligible organization.
Sec. 8.  8 MRSA §1018, sub-§1, as amended by PL 2011, c. 417, §4; c. 469, §5; 
and c. 585, §§5 and 6, is further amended to read:
1.  Fees.  The application fee for a license and the annual fee for a registered slot 
machine or table game under this chapter are as set out in this subsection.
A.   Except for slot machines operated as part of a training and education program as 
provided by section 1011, subsection 1-B, the initial registration fee for a registered 
slot machine is $100.  The annual renewal fee is $100 for each registered slot 
machine.
A-1.   Except for table games operated as part of a training and education program as 
provided by section 1011, subsection 1-B, the initial registration fee for a registered 
table game is $100.  The annual renewal fee is $100 for each registered table game.
B.    The initial application fee for a slot machine distributor license is $200,000.  The 
annual renewal fee is $75,000.
B-1.  The initial application fee for a table game distributor license is $5,000.  The 
annual renewal fee is $1,000. 
C.  The Except as provided in paragraph C-2, the initial application fee for a slot 
machine operator license is $200,000.  The, and 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.
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.
C-2.  The initial application fee for a slot machine operator license for an eligible 
organization is $500. The annual renewal fee is $175.
D.  The annual application fee for a license for a gambling services vendor is $2,000.
E.  The initial application fee for an employee license under section 1015 is $250.  
The annual renewal fee is $25.
In addition to the application fee for a license or annual fee for a registered slot machine 
or table game, the board may charge a one-time application fee for a license or 
registration listed in paragraphs A to C-1, D and E in an amount equal to the projected 
cost of processing the application and performing any background investigations.  If the 
actual cost exceeds the projected cost, an additional fee may be charged to meet the actual 
cost.  If the projected cost exceeds the actual cost, the difference may be refunded to the 
applicant.  All fees collected pursuant to this section must be deposited directly to the 
Administrative Expenses Other Special Revenue Funds account, which is a dedicated 
nonlapsing account within the Gambling Control Board, except that $25,000 of the 
annual renewal fee for a slot machine operator or casino operator must be deposited to the 
Gross Slot Income Other Special Revenue Funds account within the Gambling Control 
Board to be transferred to the municipality in which the slot machine facility or casino is 
operated, in accordance with subsection 2.  All application and registration fees are 
nonrefundable and are due upon submission of the application.
Sec. 9.  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 Except for a 
license issued to an eligible organization to operate slot machines, a casino operator 
license or slot machine operator license may not be issued under this chapter to operate 
any casino or slot machine facility located within 100 miles of a licensed casino or slot 
machine facility.  This subsection does 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. 10.  8 MRSA §1019, sub-§7, as amended by PL 2011, c. 417, §6, is further 
amended to read:
7.  Statewide and county referendum; municipal vote.  After January 1, 2011, any 
a proposed casino or slot machine facility may not be issued a license unless it has been 
approved by a statewide referendum vote and a vote of the municipal officers or 
municipality in which the casino or slot machine facility is to be located, except that a 
commercial track licensed to operate slot machines on January 1, 2011 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.  
This subsection does not apply to the issuance of a license to an eligible organization to 
operate slot machines under section 1011, subsection 2-C.
Sec. 11.  8 MRSA §1019, sub-§§8 and 9 are enacted to read:
8.  Maintenance contract required for eligible organization licensed to operate 
slot machines.  An eligible organization licensed to operate slot machines in accordance 
with this chapter shall enter into a contract with a slot machine distributor or, with 
approval of the board, a 3rd party for the maintenance of slot machines.
9.  Segregated account for net slot machine income distribution by eligible 
organization.  In accordance with rules established by the board, an eligible organization 
licensed to operate slot machines in accordance with this chapter shall establish a 
segregated account for the deposit of net slot machine income as required by section 
1036, subsection 2-D.  The board may require that the segregated account for the deposit 
of net slot machine income include authorization for the board to make withdrawals to 
ensure compliance with the distributions required by section 1036, subsection 2-D.
Sec. 12.  8 MRSA §1020, sub-§2, ¶G, as amended by PL 2013, c. 212, §24, is 
further amended to read:
G.  Must have a minimum average daily aggregate payback percentage of 89% 
computed for all slot machines operated at each slot machine facility or casino on a 
quarterly basis.  A slot machine operated by an eligible organization must have a 
minimum average daily aggregate payback percentage of 80% computed for all slot 
machines operated on the premises of the eligible organization on a quarterly basis; 
and
Sec. 13.  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.  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 may not exceed 3,000 3,150; and
B.  A slot machine operator may not operate more than 1,500 slot machines at any 
one commercial track and a casino operator may not operate more than 1,500 slot 
machines at a casino.;
C.  An eligible organization licensed in accordance with this chapter may not operate 
more than 3 slot machines on the premises of that eligible organization; and
D.  Prior to January 1, 2021, the total number of slot machines operated by all eligible 
organizations licensed in accordance with this chapter may not exceed 80.  Beginning 
January 1, 2021, the total number of slot machines operated by all eligible 
organizations licensed in accordance with this chapter may not exceed 150.
Sec. 14.  8 MRSA §1031-A is enacted to read:
§1031-A.  Eligible organization; age limit on slot machine use; play limited to 
members and guests; access by minors; credit prohibited
Notwithstanding the provisions of section 1031, the following provisions apply to the 
operation of slot machines by an eligible organization.
1.  Minimum age.  An eligible organization may not permit a person under 21 years 
of age to play a slot machine.
2.  Play limited to members and guests.  When slot machines are operated, there 
must be one member of the eligible organization present for every 2 nonmembers present.
3.  Placement of slot machines.  A slot machine operated by an eligible organization 
may be located only on the premises of that eligible organization.  Slot machines may be 
placed only in an area from which persons under 21 years of age are prohibited except 
during events when slot machines are not operational.
4.  Credit prohibited.  An eligible organization may not allow a person to use a 
credit card or debit card to play a slot machine.
Sec. 15.  8 MRSA §1035, as amended by PL 2011, c. 585, §10, is further amended 
to read:
§1035.  Location of slot machines
Slot machines may be located only on the premises of an eligible organization 
licensed in accordance with this chapter, the premises of a commercial track, the premises 
of a casino or the premises of an accredited postsecondary institution for the purposes of 
training and education under section 1011, subsection 1-B.  For the purposes of this 
section, "premises of a commercial track" means property owned by the person who owns 
the property on which a commercial track is located and that is either within 200 feet of 
the outside edge of the racing oval or, if the commercial track was owned by a 
municipality when a license to operate slot machines in association with that commercial 
track was issued, within 2,000 feet of the center of the racing oval.
Sec. 16.  8 MRSA §1036, sub-§2-D is enacted to read:
2-D.  Distribution of slot machine income from eligible organization.  An eligible 
organization shall collect and distribute 30% of net slot machine income from slot 
machines operated by the eligible organization to the board for distribution by the board 
as follows:
A.  Ten percent of the net slot machine income must be deposited to the Gambling 
Control Board administrative expenses Other Special Revenue Funds account, which 
is a nonlapsing dedicated account;
B.  Eight percent of the net slot machine income must be deposited to the General 
Fund;
C.  Two percent of the net slot machine income must be credited to the Gambling 
Addiction Prevention and Treatment Fund established by Title 5, section 20006-B; 
and
D.  Ten percent of the net slot machine income must be forwarded directly to the 
municipality where the slot machines are located.
Net revenue from the operation of slot machines by eligible organizations after the 
distributions required in paragraphs A to D must be used to support the charitable 
purposes identified to the board under section 1011, subsection 2-C, paragraph A, except 
that the net revenue may be used to pay compensation and defray expenses in the same 
manner as prescribed for revenue from games of chance by Title 17, section 1838.
SUMMARY
This bill permits the Department of Public Safety, Gambling Control Board, 
beginning January 1, 2020, to issue a license to a charitable nonprofit organization that is 
a veterans' organization that is tax-exempt under the United States Internal Revenue Code 
of 1986 to operate up to 3 slot machines on premises that have been owned, rented or 
leased by the organization for at least 2 consecutive years, that serve as its primary 
administrative operations headquarters and that are located in a municipality that has, by 
referendum of the voters, approved the operation of slot machines in that municipality. 
The charitable nonprofit veterans' organization must be able to demonstrate that it has a 
cash reserve of $1,000 for each machine the organization intends to operate.
A charitable nonprofit veterans' organization that wishes to apply prior to January 1, 
2020 may file a declaration of intent to apply with the Gambling Control Board. An 
application must include a refundable $2,500 deposit. The initial application fee for a slot 
machine operator license is $500, and the annual renewal fee is $175.
A slot machine operated by a charitable nonprofit veterans' organization is subject to 
the same central site monitoring that applies to casinos and slot machine facilities at 
harness racing tracks. The total number of slot machines allowed to be operated by 
charitable nonprofit veterans' organizations statewide between January 1, 2020 and 
December 31, 2020 is 80; beginning January 1, 2021 the number increases to 150.
The bill provides that 10% of the net slot machine income from a charitable nonprofit 
veterans' organization is required to be deposited directly with the Gambling Control 
Board for administrative expenses; 8% goes directly to the General Fund; 10% goes to 
the host municipality; and 2% is dedicated to gambling addiction prevention and 
treatment. A charitable nonprofit veterans' organization that is licensed to operate slot 
machines is required to establish a separate account, from which the board may withdraw 
funds to distribute the net revenue percentages. The remaining revenue generated from 
the slot machines must be used to support the charitable purposes of the veterans' 
organization.