November 23, 2024
VOTE 2003

Casino referendum questions, answers

Q: Who would own the casino?

A: The Penobscot Nation and Passamaquoddy Tribe would own the casino. The project would have investors, however, who would share in the revenues.

Q: Who would regulate the casino?

A: The Maine Department of Public Safety would oversee the operation, including licensing and enforcement of criminal laws. The Maine State Auditor has financial oversight over the operation, but the Maine casino, unlike other Indian casinos, would not be subject to federal regulation.

Q: Where would the casino be located?

A: The proposed site is in the York County town of Sanford. However, the statute itself includes no mention of a specific location.

Q: Would the casino pay taxes?

A: The casino would pay the state a gaming tax equal to 25 percent of the gross revenue (revenue minus winnings paid) from the slot machines. The tribe would not pay state corporate income tax, according to the plan.

It would, however, pay local property taxes. The casino operation would also be subject to all other state taxes including excise, payroll and sales tax.

Q: What happens if another casino opens in the state?

A: The deal would remain unchanged unless the state approved a more favorable deal for the new casino, for instance if the state decided to collect only a 10 percent gaming tax. In that case, the Indian casino would be taxed at the lower rate.

Slot machines proposed for the Bangor Raceway would not affect the deal because, like the casino, the Bangor facility would also pay a 25 percent gaming tax.

Q: Can the agreement be changed?

A: Yes. But only if both the state and tribes agree to the changes. However, Maine’s Attorney General suggested that the Legislature might be able to clarify parts of the bill without the tribes’ consent.

Q: How much money would go to the two tribes?

A: While there is no set percentage returned to the tribes, they would split the expected annual profit of between $50 million and $100 million, according to supporters’ estimates.

Q: Will this open the doors to more casinos in Maine?

A: The act allows the tribes to operate a single casino.


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