Governor plans gambling commission

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AUGUSTA – Flanked by legislative leaders, Gov. John E. Baldacci promised Wednesday to deliver a new racino bill to lawmakers next month in an effort to craft some of the toughest gambling regulations in the country.

The Bangor Democrat’s remarks followed last month’s voter approval of slot machines at the state’s two major harness racing tracks: Bangor Raceway and Scarborough Downs. Baldacci, who opposed the slots plan, promised to scrutinize the racino legislation the day after the vote and to submit revisions to correct any perceived deficiencies.

Using a side-by-side comparison chart to illustrate differences in the racino law approved by the voters and the proposed revisions sought by the administration (see Page A4), Baldacci emphasized he had no intention of allowing the Maine Harness Racing Commission to regulate slot machine activities as directed under the voter-approved bill. He said that instead of the commission, his five-member Gambling Control Board would ensure strict conformance with all Maine laws.

“We will see to it that the gambling industry is fashioned to protect the public interest and welfare of our state,” Baldacci said. “The initiated bill falls too far short of the mark in terms of regulation and gambling control. As public officials, we cannot allow this law to take effect without reforming its regulatory structure.”

Still, there were more questions than answers concerning the details of how the governor plans to establish criteria for:

. Determining who is qualified to serve on the gambling board.

. Determining how many slot machines should be permitted at a racetrack.

. Determining how administrative costs borne solely by the state under the law approved Nov. 4 would be revised to be shared between all affected parties.

. Determining how many slot machine licenses a racino owner can hold.

. Determining time sequences for when a racino could actually be up and running in the state.

Timetables remain a primary issue for Las Vegas developer Shawn Scott who has applied for a gambling license from the Maine Harness Racing Commission to operate a racino in Bangor where his Capital Seven LLC owns 49 percent of the track.

When the governor signed the citizen initiated racino legislation last week, he cited a rarely used provision of the state Constitution delaying the law’s implementation until Feb. 21, 45 days after the Legislature reconvenes.

Normally, the law would take effect Jan. 3, 30 days after the governor signed it.

Capital Seven is supposed to appear before the Maine Harness Racing Commission on Monday to argue for a license granting it the right to install 250 slot machines at Bangor Raceway by Jan. 3. Although administration officials said they “would not attempt to influence” the commission’s decision-making process, four of the five commissioners’ terms are due to expire soon. They have all reportedly indicated to the governor they would like to be reappointed.

Baldacci made it clear Wednesday that he wants any Maine racino operator to undergo the scrutiny of his gambling board – not the harness racing commission. While the governor would probably welcome a decision by the harness racing commission to defer a decision on the Capital Seven license, he said he would not make such a request.

He did indicate, however, that any decision his gambling board makes would be retroactive in the event a license is granted by the commission.

“If the initiated bill is allowed to stand, it will be the least-regulated piece of gambling legislation in America and it won’t even pay for the direct costs it would impose on Maine taxpayers,” the governor said. “As public officials we owe the people more. … No one will get a license to operate or distribute a slot machine in Maine without going through a rigorous licensing protocol and only after the gambling control board is fully constituted.”

The developments at the State House were still being studied by Capital Seven representatives Wednesday. The firm’s spokeswoman, Christen Graham, said she hadn’t seen the governor’s remarks and therefore had no reaction to them.

“We just hope that the legislation will not delay the opening of the slot machine facility in Bangor, especially on the heels of a job fair that was attended by more than 300 people from the Bangor area,” she said.

Three of the Legislature’s four political factions stood squarely with the governor Wednesday. Senate Republicans and Senate and House Democrats said it was important for the state to have the tools it needed to do an effective job regulating the new gambling industry.

“This is a bipartisan effort and it’s an effort that’s important to the Legislature,” said House Speaker Patrick Colwell, D-Gardiner. “The people of Maine have spoken through this citizens initiative bill and I think we all respect the decision – whether we agree with it or not.”

But House Republican leaders did not appear at Baldacci’s press conference Wednesday and instead fired off a statement saying they believed “the governor’s proposal is off track.” Although GOP leaders would not identify the specific details of their objections, State House sources indicated that the two House GOP leaders – both of whom are from southern Maine – are concerned that the governor is not doing enough to respect the will of the people in their region. They argued that southern Maine voters approved a bill that would establish a racino at Scarborough Downs.

But the statewide referendum also stipulated that local approval is required before slot machines can be installed, and voters in Scarborough rejected the gambling venture.

Scarborough Downs owners have said they will relocate the racetrack to Saco or Westbrook if they can get voters to approve slot machines in local referendums scheduled at the end of the month.

Under the racino bill, the developers have until Dec. 31 to get local approval.

Republican House Leader Joe Bruno, R-Raymond, is concerned that if both communities reject the plan, the opportunity for a southern Maine racino will evaporate with the Dec. 31 deadline.

House Republicans want the governor to reserve the opportunity for a future vote on a southern Maine racino in 2004 just to keep the slot machine option alive.

“We have concerns that this legislation attempts to subvert the will of the people,” said Assistant Republican House Leader David Bowles of Sanford. “It appears to us that the governor’s proposal amounts to a closet veto.”

Well-placed officials within the Baldacci administration said Wednesday that House Republicans were setting themselves up for a major disappointment.