An Act To Amend the Advance Deposit Wagering Laws
Maine Legislature, Session 130, LD 0623
Committee: Veterans and Legal Affairs
Sponsors: McCREIGHT, DILLINGHAM, CLAXTON, JACKSON, LIBBY
Amends: 8 MRSA §1001, 8 MRSA §1015, 8 MRSA §1016, 8 MRSA §1071, 8 MRSA §1072, 8 MRSA §1073

Legislative Document
No. 623
H.P. 459
House of Representatives, March 1, 2021
An Act To Amend the Advance Deposit Wagering Laws
Received by the Clerk of the House on February 25, 2021.  Referred to the Committee on 
Veterans and Legal Affairs pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint 
Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative McCREIGHT of Harpswell.
Cosponsored by Representative: DILLINGHAM of Oxford, Senators: CLAXTON of 
Androscoggin, President JACKSON of Aroostook, LIBBY of Androscoggin.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  8 MRSA §1001, sub-§1-A, as enacted by PL 2015, c. 499, §1, is repealed 
and the following enacted in its place:
1-A.  Advance deposit wagering.  "Advance deposit wagering" means a form of pari-
mutuel wagering on horse races in which wagers are made in person or by telephone, 
Internet, mobile device, electronic communication or, if approved by the board, other 
electronic medium and the account holder deposits funds in a wagering account 
administered by an advance deposit wagering licensee.  An advance deposit wagering 
licensee makes wagers from the wagering account at the direction of and on behalf of the 
account holder, and the advance deposit wagering licensee deposits money into the 
wagering account from winning wagers awarded to the account holder.
Sec. 2.  8 MRSA §1001, sub-§1-B, as enacted by PL 2015, c. 499, §1, is amended 
to read:
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 deposit wagering.
Sec. 3.  8 MRSA §1001, sub-§20-A is enacted to read:
20-A.  Gross advance deposit wagering income.  "Gross advance deposit wagering 
income" means the total amount of wagers placed by residents of this State via advance 
deposit wagering before payment of money to winning bettors.
Sec. 4.  8 MRSA §1001, sub-§29-D is enacted to read:
29-D.  Multijurisdictional account wagering provider.  "Multijurisdictional account 
wagering provider" means a business entity domiciled in a jurisdiction other than this State 
that is licensed by another jurisdiction to offer advance deposit wagering on horse races for 
which it offers wagering to account holders in or out of the jurisdiction that issued the 
license, including in this State.
Sec. 5.  8 MRSA §1015, as amended by PL 2013, c. 212, §§13 and 14, is further 
amended to read:
§1015.  Licensing of employees of slot machine and casino operators, slot machine and 
table game distributors and, gambling services vendors and advance deposit 
wagering licensees
1.  License required.  A person may not be employed by a slot machine operator, 
casino operator, slot machine distributor, table game distributor or, gambling services 
vendor or advance deposit wagering licensee unless the person is licensed to do so by the 
board, temporarily authorized as an employee pursuant to subsection 4 or granted a waiver 
by the board pursuant to subsection 3.
2.  Requirements for license.  The board may issue an employee license to an 
employee of a slot machine operator, casino operator, slot machine distributor, table game 
distributor or, gambling services vendor or advance deposit wagering licensee if the 
applicant meets the qualifications set out in sections 1016 and 1019.
3.  Requirements for waiver.  Upon application by a slot machine operator, casino 
operator, slot machine distributor, table game distributor or, gambling services vendor or 
advance deposit wagering licensee, the board may waive the employee license requirement 
under this section if the slot machine operator, casino operator, slot machine distributor, 
table game distributor or, gambling services vendor or advance deposit wagering licensee 
demonstrates to the board's satisfaction that the public interest is not served by the 
requirement of the employee license.
4.  Employees authorized temporarily.  A new employee of a slot machine operator, 
casino operator, slot machine distributor, table game distributor or, gambling services 
vendor or advance deposit wagering licensee is temporarily authorized to work in a position 
requiring an employee license pursuant to subsection 1 as of the date a completed employee 
license application is received by the board.  A completed employee license application is 
composed of:
A.  The completed form for application for an employee license approved by the board;
B.  Two complete sets of the fingerprints of the applicant;
C.  The fee for processing the employee license application as prescribed by the board; 
and
D.  The results of the background investigation conducted by the employer.
If the department determines after receiving an employee license application under this 
subsection that the application is incomplete, it may suspend the new employee's temporary 
authorization until such time as the new employee files a completed application.
Temporary authorization is not available for renewal of employee licenses.
5.  Termination of temporary authorization.  Unless suspended or revoked, a 
temporary authorization under subsection 4 continues until the granting or denial of the 
new employee's employee license application in accordance with sections 1016, 1017 and 
1019 and any applicable rules adopted by the board. An applicant whose temporary 
authorization is suspended or revoked is not eligible for employment in a position requiring 
an employee license pursuant to subsection 1 until such time as the suspension or 
revocation is withdrawn or an employee license is issued.
6.  Exception.  An employee of an advance deposit wagering licensee that is a 
multijurisdictional account wagering provider is not subject to the employee license 
requirement under this section if:
A.  The employee is not involved in the processing of wagers by residents of this State; 
or
B.  The employee is not located in this State and is licensed in a jurisdiction in 
connection with the multijurisdictional account wagering provider's operations in that 
jurisdiction.
Sec. 6.  8 MRSA §1016, sub-§1, as amended by PL 2013, c. 212, §§15 to 18, is 
further amended to read:
1.  Minimum qualifications.  Notwithstanding Title 5, chapter 341, and in addition to 
any requirements imposed by rules adopted by the board, a person must satisfy the 
following qualifications to be a slot machine operator, a casino operator, a slot machine 
distributor, a table game distributor, a gambling services vendor, an advance deposit 
wagering licensee or an employee of these entities:
A.  The person has completed the application form, promptly and truthfully complied 
with all information requests of the board and complied with any applicable rules 
adopted by the board;
B.  The person has sufficient financial assets and responsibility to meet any financial 
obligations imposed by this chapter and, if applying for a slot machine operator license, 
casino operator license, slot machine operator license renewal or casino operator 
license renewal, has sufficient financial assets and responsibility to continue operation 
of a commercial track or casino;
B-1.  If applying for an advance deposit wagering license or advance deposit wagering 
license renewal under section 1073, subsection 1, paragraph A or B, the person has 
sufficient financial assets and responsibility to continue operation of a commercial 
track or off-track betting facility;
C.  The person has not knowingly or recklessly made a false statement of material fact 
in applying for a license under this chapter or any gambling-related license in any other 
jurisdiction;
D.  In the case of a person applying to be a slot machine operator or, casino operator 
or advance deposit wagering licensee, the person has sufficient knowledge and 
experience in the business of operating slot machines or, casinos or advance deposit 
wagering to effectively operate the slot machine facilities or, casino or advance deposit 
wagering to which the license application relates in accordance with this chapter and 
the rules and standards adopted under this chapter; and
F.  If the applicant is a business organization, the applicant is organized in this State, 
although that business organization may be a wholly or partially owned subsidiary of 
an entity that is organized pursuant to the laws of another state or a foreign country.
Except as provided by section 1013, subsection 3 and section 1013‑A, subsection 3, a 
person may not hold more than one class of license under this chapter unless the 2nd license 
is an employee license under section 1015.
Sec. 7.  8 MRSA §1071, as enacted by PL 2015, c. 499, §8, is repealed.
Sec. 8.  8 MRSA §1072, as enacted by PL 2015, c. 499, §8, is amended to read:
§1072.  Distribution of net commission advance deposit wagering revenue
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 revenue from wagers placed on races conducted 
in State.  An advance deposit wagering licensee shall collect the net commission 5% of 
gross advance deposit wagering income from wagers placed with the licensee 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 amount collected under this subsection must be 
deposited directly to the General Fund.
B.  Twenty percent of the net commission amount collected under this subsection 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 amount collected under this subsection must be 
distributed to the Sire Stakes Fund established under section 281.
D.  Ten percent of the net commission amount collected under this subsection 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 amount collected under this subsection 
must be distributed to the fund established under section 298 to supplement harness 
racing purses.
F.  Twenty percent of the net commission amount collected under this subsection must 
be distributed to the track where the race upon which the wager was placed was 
conducted.
G.  Fifteen percent of the net commission amount collected under this subsection 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 revenue from wagers placed on races conducted 
outside State.  An advance deposit wagering licensee shall collect the net commission 5% 
of gross advance deposit wagering income from wagers placed with the licensee 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 amount collected under this subsection must be 
deposited directly to the General Fund.
B.  Thirty-six percent of the net commission amount collected under this subsection 
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 amount collected under this subsection must be 
distributed to the Sire Stakes Fund established under section 281.
D.  Ten percent of the net commission amount collected under this subsection 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 amount collected under this subsection must 
be distributed to the fund established under section 298 to supplement harness racing 
purses.
F.  Thirty-six percent of the net commission amount collected under this subsection 
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.
Sec. 9.  8 MRSA §1073 is enacted to read:
§1073.  Advance deposit wagering license
1.  Eligibility.  To receive an advance deposit wagering license from the board, an 
entity must meet the requirements of this section and the rules adopted by the board under 
section 1003, subsection 2, paragraph U and must be:
A.  A commercial track licensed under section 271;
B.  An off-track betting facility licensed under section 275-D; or
C.  A multijurisdictional account wagering provider.
Neither a multijurisdictional account wagering provider nor its parent company, 
subsidiaries or affiliates may be found in violation of this section or any other laws of this 
State or ineligible to receive an advance deposit wagering license or may be subject to any 
other disciplinary action as a result of unlicensed conduct under this Title before the 
effective date of this section that was conducted pursuant to its multijurisdictional license 
and would have been permitted as licensed conduct under this section.
2.  Authority to conduct advance deposit wagering.  An advance deposit wagering 
license issued by the board under this section grants a licensee authority to conduct advance 
deposit wagering in this State, including accepting deposits and wagers from account 
holders.  An advance deposit wagering licensee may accept a wager from an advance 
deposit wagering account holder in person or by telephone, Internet, mobile device, 
electronic communication or, if approved by the board, other electronic medium.
3.  Contract.  Advance deposit wagering may be conducted directly by an advance 
deposit wagering licensee or through such a licensee entering into a contract with a provider 
of advance deposit wagering services located within the United States.
4.  Conditions of licensure.  An advance deposit wagering licensee shall:
A.  Purchase a bond to secure the accounts of advance deposit wagering bettors; and
B.  Use a system 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.
5.  Application fee.  The board shall require a nonrefundable application fee of $1,000 
for a license under this section and an applicant shall pay the costs of the board for 
processing an application and performing background investigations.
6.  License fee; term; renewal.  A license issued under this section 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.
SUMMARY
This bill allows commercial tracks, off-track betting facilities and multijurisdictional 
account wagering providers to obtain a license to conduct advance deposit wagering.  It 
repeals the provision that directs the Department of Public Safety, Gambling Control 
Board, through a competitive bidding process, to award one bidder the privilege to be 
licensed to conduct advance deposit wagering.  It requires advance deposit wagering 
licensees to remit 5% of the licensees' gross advance deposit wagering income to the board 
for distribution by the board.  The bill also requires licensure of employees of advance 
deposit wagering licensees.