An Act To Increase the State Revenue from Casino Net Income, Reallocate the State Distribution and Provide Tax Uniformity
Maine Legislature, Session 130, LD 1060
Committee: Veterans and Legal Affairs
Sponsors: BABBIDGE, DUNPHY, HYMANSON, PERRY, RECKITT, RAFFERTY
Amends: 8 MRSA §1001, 8 MRSA §1036, 8 MRSA §1036-A

Legislative Document
No. 1060
H.P. 789
House of Representatives, March 11, 2021
An Act To Increase the State Revenue from Casino Net Income, 
Reallocate the State Distribution and Provide Tax Uniformity
Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative BABBIDGE of Kennebunk.
Cosponsored by Representatives: DUNPHY of Old Town, HYMANSON of York, PERRY of 
Calais, RECKITT of South Portland, Senator: RAFFERTY of York.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  8 MRSA §1001, sub-§29-A, as enacted by PL 2005, c. 663, §3, is amended 
to read:
29-A.  Net slot machine income.  "Net slot machine income" means money, tokens, 
credits or similar objects or things of value used to play a slot machine minus money, 
credits or prizes paid out to winners and amounts paid pursuant to section 1036, subsection 
1.
Sec. 2.  8 MRSA §1036, as amended by PL 2017, c. 284, Pt. C, §§1 and 2, is further 
amended to read:
§1036.  Allocation of funds
1.  Distribution for administrative expenses of board.  A slot machine operator 
licensed under section 1011, subsection 2 or a casino operator that is a commercial track 
that was licensed to operate slot machines under section 1011, subsection 2 on January 1, 
2011 shall collect and distribute 1% of gross slot machine income to the Treasurer of State 
for deposit in the General Fund for the administrative expenses of the board.
2.  Distribution of net slot machine income from casino with commercial track.  A 
slot machine operator licensed under section 1011, subsection 2 or a casino operator that is 
a commercial track that was licensed to operate slot machines under section 1011, 
subsection 2 on January 1, 2011 shall collect and distribute 39% 47% of the net slot 
machine income from slot machines operated by the slot machine that operator to the board 
for distribution by the board as follows:
A.  Three percent of the net slot machine income must be deposited to the General 
Fund for administrative expenses of the board in accordance with rules adopted by the 
board, except that of the amount calculated pursuant to this paragraph, the following 
amounts must be transferred annually to the Gambling Addiction Prevention and 
Treatment Fund established by Title 5, section 20006‑B:
(1)  For the fiscal year beginning July 1, 2011, $50,000;
(2)  For the fiscal year beginning July 1, 2012, $50,000; and
(3)  For the fiscal year beginning July 1, 2013 and for each fiscal year thereafter, 
$100,000;
B.  Ten percent of the net slot machine 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.  Three percent of the net slot machine income must be credited by the board to the 
Sire Stakes Fund created in section 281;
D.  Three percent of the net slot machine 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.  Ten percent of the net slot machine income must be forwarded by the board to the 
State Controller and except as otherwise provided in this paragraph credited to the Fund 
for a Healthy Maine established by Title 22, section 1511 and segregated into a separate 
account under Title 22, section 1511, subsection 11, with the use of funds in the account 
restricted to the purposes described in Title 22, section 1511, subsection 6, paragraph 
E.  For the fiscal years ending June 30, 2010, June 30, 2011 and June 30, 2012, the 
amount credited annually by the State Controller to the Fund for a Healthy Maine under 
this paragraph may not exceed $4,500,000 annually and any funds in excess of 
$4,500,000 annually during these fiscal years must be credited as General Fund 
undedicated revenue, and, for the fiscal year ending June 30, 2013, the amount credited 
by the State Controller to the Fund for a Healthy Maine under this paragraph is $0;
F.  Two percent of the net slot machine income must be forwarded by the board to the 
University of Maine System Scholarship Fund created in Title 20‑A, section 10909 and 
to the Board of Trustees of the Maine Maritime Academy to be applied by the board 
of trustees to fund its scholarship program.  The slot machine income under this 
paragraph must be distributed as follows:
(1)  The University of Maine System share is the total amount of the distribution 
multiplied by the ratio of enrolled students in the system to the total number of 
enrolled students both in the system and at the Maine Maritime Academy; and
(2)  The Maine Maritime Academy share is the total amount of the distribution 
multiplied by the ratio of enrolled students at the academy to the total number of 
enrolled students both in the system and at the academy;
G.  One percent of the net slot machine income must be forwarded by the board to the 
board of trustees of the Maine Community College System to be applied by the board 
of trustees to fund its scholarships program under Title 20‑A, section 12716, subsection 
1;
H.  Four percent of the net slot machine income must be forwarded by the board to the 
Treasurer of State, who shall credit the money to the Fund to Encourage Racing at 
Maine's Commercial Tracks, established in section 299;
I.  Two percent of the net slot machine 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.  After 48 months of receiving an 
allocation of the net slot machine income from a licensed operator, the percent of net 
slot machine income forwarded to the Fund to Stabilize Off-track Betting Facilities is 
reduced to 1% with the remaining 1% to be forwarded to the State in accordance with 
subsection 1 paragraph A; and
J.  One percent of the net slot machine income must be forwarded directly to the 
municipality in which the slot machines are located.;
K.  Five percent of the net slot machine income must be forwarded by the board to the 
Treasurer of State, who shall distribute the funds to the tribal governments of the 
federally recognized Indian tribes in the State in the proportions established by the 
Indian Casino Revenue Distribution Committee pursuant to section 1036-A.  If a 
federally recognized Indian tribe owns or operates a licensed slot machine facility or 
casino in the State, the net slot machine income described in this paragraph must be 
deposited in the General Fund; and
L.  Three percent of the net slot machine income must be deposited in the General 
Fund.
2-A.  Distribution from casino of slot machine income.  A casino operator licensed 
in accordance with section 1011, subsection 2-A, paragraph A shall collect and distribute 
46% 50% of the net slot machine income from slot machines operated by the casino 
operator to the board for distribution by the board as follows:
A.  Twenty-five percent of the net slot machine income must be forwarded directly by 
the board to the Treasurer of State, who shall credit the money to the Department of 
Education, to be used for essential programs and services for kindergarten to grade 12 
under Title 20‑A, chapter 606‑B;
B.  Four percent of the net slot machine income must be forwarded by the board to the 
University of Maine System Scholarship Fund created in Title 20‑A, section 10909 and 
to the Board of Trustees of the Maine Maritime Academy to be applied by the board 
of trustees to fund its scholarship program.  The slot machine income under this 
paragraph must be distributed as follows:
(1)  The University of Maine System share is the total amount of the distribution 
multiplied by the ratio of enrolled students in the system to the total number of 
enrolled students both in the system and at the Maine Maritime Academy; and
(2)  The Maine Maritime Academy share is the total amount of the distribution 
multiplied by the ratio of enrolled students at the academy to the total number of 
enrolled students both in the system and at the academy;
C.  Three percent of the net slot machine income must be forwarded by the board to 
the Board of Trustees of the Maine Community College System to be applied by the 
board of trustees to fund its scholarships program under Title 20‑A, section 12716, 
subsection 1;
D.  Four percent of the net slot machine income must be forwarded by the board to the 
Treasurer of State, who shall distribute the funds to the tribal governments of the 
Penobscot Nation and the Passamaquoddy Tribe;
E.  Three percent of the net slot machine income must be deposited to the General Fund 
for administrative expenses of the board, including gambling addiction counseling 
services, in accordance with rules adopted by the board;
F.  Two percent of the net slot machine income must be forwarded directly to the 
municipality in which the casino is located;
G.  One percent of the net slot machine 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;
H.  One percent of the net slot machine 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;
I.  One percent of the net slot machine income must be credited by the board to the Sire 
Stakes Fund created in section 281;
J.  One percent of the net slot machine income must be forwarded directly to the county 
in which the casino is located to pay for mitigation of costs resulting from gaming 
operations;
L.  Beginning July 1, 2013, 1/2 of 1% of the net slot machine income must be forwarded 
by the board to the Treasurer of State, who shall credit the money to the Maine Milk 
Pool, Other Special Revenue Funds account within the Department of Agriculture, 
Conservation and Forestry to help fund dairy farm stabilization pursuant to Title 7, 
sections 3153-B and 3153-D; and
M.  Beginning July 1, 2013, 1/2 of 1% of the net slot machine income must be 
forwarded by the board to the Treasurer of State, who shall credit the money to the 
Dairy Improvement Fund established under Title 10, section 1023‑P.;
N.  Five percent of the net slot machine income must be forwarded by the board to the 
Treasurer of State, who shall distribute the funds to the tribal governments of the 
federally recognized Indian tribes in the State in the proportions established by the 
Indian Casino Revenue Distribution Committee pursuant to section 1036-A. If a 
federally recognized Indian tribe owns or operates a licensed slot machine facility or 
casino in the State, the net slot machine income described in this paragraph must be 
deposited in the General Fund; and
O.  Three percent of the net slot machine income must be deposited in the General 
Fund.
If a recipient of net slot machine income in paragraph D, H or I owns or receives funds 
from a slot machine facility or casino, other than the casino in Oxford County or the slot 
machine facility in Bangor, then the recipient may not receive funds under this subsection, 
and those funds must be retained by the Oxford County casino operator.
2-B.  Distribution from casino of table game income.  A casino operator licensed in 
accordance with section 1011, subsection 2‑A, paragraph A shall collect and distribute 16% 
50% of the net table game income from table games operated by the casino operator to the 
board for distribution by the board as follows:
A.  Ten percent of the net table game income must be forwarded directly by the board 
to the Treasurer of State, who shall credit the money to the Department of Education, 
to be used for essential programs and services for kindergarten to grade 12 under Title 
20‑A, chapter 606‑B;
B.  Three percent of the net table game income must be deposited to the Gambling 
Control Board administrative expenses Other Special Revenue Funds account, which 
is a nonlapsing dedicated account;
C.  Two percent of the net table game income must be forwarded directly to the 
municipality in which the table games are located; and
D.  One percent of the net table game income must be forwarded directly to the county 
in which the table games are located to pay for mitigation of costs resulting from 
gaming operations.;
E.  Five percent of the net table game income must be forwarded by the board to the 
Treasurer of State, who shall distribute the funds to the tribal governments of the 
federally recognized Indian tribes in the State in the proportions established by the 
Indian Casino Revenue Distribution Committee pursuant to section 1036-A. If a 
federally recognized Indian tribe owns or operates a licensed slot machine facility or 
casino in the State, the net table game income described in this paragraph must be 
deposited in the General Fund; and
F.  Twenty-nine percent of the net slot machine income must be deposited in the 
General Fund.
2-C.  Distribution of table game income from casino with a commercial track.  A 
casino operator that is a commercial track and was licensed to operate slot machines on 
January 1, 2011 shall collect and distribute 16% 50% of the net table game income from 
table games operated by the casino operator to the board for distribution by the board as 
follows:
A.  Nine percent of the net table game income must be deposited to the General Fund 
for administrative expenses of the board, including gambling addiction counseling 
services, in accordance with rules adopted by the board;
B.  Three percent of the net table game income must be deposited to the Gambling 
Control Board administrative expenses Other Special Revenue Funds account, which 
is a nonlapsing dedicated account;
C.  Two percent of the net table game income must be forwarded directly to the 
municipality in which the table games are located; and
D.  Two percent of the net table game income must be deposited into the Coordinated 
Veterans Assistance Fund established in Title 37‑B, section 514.;
E.  Five percent of the net table game income must be forwarded by the board to the 
Treasurer of State, who shall distribute the funds to the tribal governments of the 
federally recognized Indian tribes in the State in the proportions established by the 
Indian Casino Revenue Distribution Committee pursuant to section 1036-A. If a 
federally recognized Indian tribe owns or operates a licensed slot machine facility or 
casino in the State, the net table game income described in this paragraph must be 
deposited in the General Fund; and
F.  Twenty-nine percent of the net slot machine income must be deposited in the 
General Fund.
3.  Failure to deposit funds.  A slot machine operator or casino operator who 
knowingly or intentionally fails to comply with this section commits a Class C crime. In 
addition to any other sanction available by law, the license of the operator may be revoked 
by the board and the slot machines or table games operated by that slot machine operator 
or casino operator may be disabled, and the slot machines or table games, slot machines' or 
table games' proceeds and associated equipment may be confiscated by the board and are 
subject to forfeiture under Title 17‑A, section 959 or 960.
4.  Late payments.  The board may adopt rules establishing the dates on which 
payments required by this section are due. All payments not remitted when due must be 
paid together with interest on the unpaid balance at a rate of 1.5% per month.
Sec. 3.  8 MRSA §1036-A is enacted to read:
§1036-A.  Indian Casino Revenue Distribution Committee
1.  Committee established; membership.  The Indian Casino Revenue Distribution 
Committee, referred to in this section as "the committee," is established.  The committee 
consists of the following 17 members:
A. One member to be appointed by the Penobscot Nation, one member to be appointed 
by the Passamaquoddy Tribe, one member to be appointed by the Houlton Band of 
Maliseet Indians and one member to be appointed by the Aroostook Band of Micmacs.  
Members appointed under this paragraph serve for a term of 3 years and may be 
reappointed.  In the event of a vacancy under this paragraph, the appointing authority 
may fill the vacancy for the unexpired term; and
B. The 13 members of the Maine Indian Tribal-State Commission established under 
Title 30, section 6212, each member of whom serves during that member's term, 
including any term of reappointment, on the Maine Indian Tribal-State Commission.  
2. Chair.  The chair of the Maine Indian Tribal-State Commission shall serve as the 
chair of the committee.  
3. Quorum.  A quorum of the committee consists of 9 members.
4. Duties.  By January 1, 2023, and annually thereafter, the committee shall determine 
and report to the Treasurer of State and the joint standing committee of the Legislature 
having jurisdiction over slot machines matters the proportion of the net slot machine 
income and net table game income collected under section 1036, subsection 2, paragraph 
K; subsection 2-A, paragraph N; subsection 2-B, paragraph E; and subsection 2-C, 
paragraph E that must be distributed by the Treasurer of State to the tribal government of 
each federally recognized Indian tribe in the State.
5. Contingent repeal.  This section is repealed if a federally recognized Indian tribe 
owns or operates a licensed slot machine facility or casino in the State.  The committee 
shall provide notice to the Secretary of the Senate, the Clerk of the House of 
Representatives and the Office of the Revisor of Statutes when this condition has been met.
Sec. 4.  Effective date.  The sections of this Act that amend the Maine Revised 
Statutes, Title 8, section 1001, subsection 29-A and section 1036 take effect January 1, 
2023.
SUMMARY
This bill makes the following changes, effective January 1, 2023, to the laws governing 
the allocation of revenue from slot machines and table games operated by licensed casinos 
in the State.
1.  It repeals the provision of law requiring that 1% of gross slot machine income from 
the Bangor casino be deposited in the General Fund for the administrative expenses of the 
Department of Public Safety, Gambling Control Board.
2. It repeals the provision of law requiring that 4% of net slot machine income from 
the Oxford County casino be distributed to the tribal governments of the Penobscot Nation 
and the Passamaquoddy Tribe.
3. It requires each licensed casino to collect 5% of net slot machine income and 5% of 
net table game income for distribution to the tribal governments of the federally recognized 
Indian tribes in the State in the proportions annually established by the Indian Casino 
Revenue Distribution Committee established in the bill.  If a federally recognized Indian 
tribe owns or operates a licensed slot machine facility or casino in the State, this 5% of net 
slot machine income and 5% of net table game income must be deposited in the General 
Fund instead of being distributed to tribal governments.
4. It requires each licensed casino to collect a specific percentage of net slot machine 
income and of net table game income for deposit in the General Fund so that a total of 50% 
of net slot machine income and of net table game income is collected by the casino and 
distributed to the funds, programs and governmental entities identified in the Maine 
Revised Statutes, Title 36, section 1036 or shared with the host municipality under a 
revenue-sharing agreement required by section 1011, subsection 4.
The bill also creates the Indian Casino Revenue Distribution Committee, which is a 
17-member committee composed of the 13 members of the Maine Indian Tribal-State 
Commission as well as one member appointed by the Penobscot Nation, one member 
appointed by the Passamaquoddy Tribe, one member appointed by the Houlton Band of 
Maliseet Indians and one member appointed by the Aroostook Band of Micmacs.  This 
committee must, beginning January 1, 2023 submit an annual report to the Treasurer of 
State and the joint standing committee of the Legislature having jurisdiction over slot 
machines matters setting forth the proportion of net slot machine income and net table game 
income that should be distributed to each of the federally recognized Indian tribes in the 
State in the subsequent year.