Don’t Gamble on Oversight

Despite outcry from some Republicans that Gov. John Baldacci is subverting the will of the people by trying to strengthen the law regulating racinos, the governor is right to seek to ensure that Maine doesn’t end up with some of the weakest gambling laws in the country. It is fair to assume that, while the majority of voters approved racinos for Maine in November, they also expect that these new entities – a combination horse racing track and casino – to be properly regulated. The law behind the Nov. 4 ballot question, largely drafted by the man who seeks to develop a racino in Bangor, does not do this. That’s why tougher legislation is needed.

First, the governor is right that a new entity is needed to oversee any racinos that open in Maine. The Maine Harness Racing Commission, which sets racing dates and approves licenses for harness racing tracks and off-track betting facilities, has no expertise in regulating slot machines. No current state entity does. That is why a new oversight entity is needed. Whether it should take the shape of the governor’s proposed Gambling Control Board and be affiliated with the Department of Public Safety is a matter for lawmakers to decide when they reconvene next month. This new entity’s bills, as well as the costs of additional law enforcement, traffic control and gambling-addiction treatment, should be covered by racino operators, not state taxpayers. The existing legislation divies up 25 percent of slot proceeds between many state entities, but makes inadequate provisions for money to go to the state for administrative expenses, which the governor’s office has estimated could run millions more than the state will take in.

Other weaknesses in the current racino law that the governor has addressed include limiting the number of slot machines to 3,000 statewide and 1,500 owned by a single operator. The law as passed has no limits. The governor’s proposed legislation would also tighten licensing requirements. Now, a prospective licensee must only be of “good moral character,” a weak and subjective standard. It also makes sense that a slot machine operator must continue harness racing at the racino, something that is not required under the referendum language approved by 53 percent of voters.

Of course, it would have been better to address these issues before the referendum was put out to a vote – first in Bangor in June and then statewide in November. But, with most lawmakers and lobbyists focused heavily on the casino measure on the ballot, due consideration was not given to the racino issue. It is not too late to correct this oversight. As the governor said last week: “If we don’t get our arms around this at the beginning, we never will.” So, despite the push by Bangor racino developer Shawn Scott to rush the process so that his complex at Bass Park can open as soon as possible, state lawmakers are wise to go slow.

They will have plenty of time to debate the particulars of racino regulation when they return to Augusta. What must be clear to them, however, is that better rules are needed. Based on that premise, they should seek to craft the best rules to benefit Maine’s citizens and its newest enterprise.