Regulating Racinos

Supporters and detractors of racinos, combination horse-racing tracks and betting parlors, no doubt made good arguments yesterday for and against the lengthy set of regulations Gov. John Baldacci has proposed for the fledgling industry in Maine. Some of their arguments were no doubt convincing. But the truth is, hardly anyone in Maine knows anything about regulating racinos, a relatively new breed in the gambling world.

So, it makes sense to hear from industry experts and regulators in other states who have actually had experience with race track casinos. Gov. Baldacci did this before crafting his 39-page bill. Not only did members of his staff talk with regulators in other states, they went to other states and learned what regulations worked and which ones didn’t. Lawmakers, especially those opposed to the governor’s get-tough approach, are not likely to take the administration’s word for the regulatory track record of other states. So, experts – not industry lobbyists – should be brought in to talk directly to elected officials in Augusta.

Of course, this should have been done well before a measure to allow racinos was put on the ballot, much like the state had a study commission to look into casinos before that issue was put out to voters. The casino task force, unfortunately, produced a list of questions rather than a useful report, but this mistake could be avoided by carefully selecting who should provide the answers to the long list of questions Maine lawmakers already have.

Now that voters, both in Bangor and statewide, have said they want a racino, it is too late to debate the merits of such an establishment. It is now up to the governor and legislators to make sure that any racinos that do open in Maine are properly regulated and rather than have people, however well intentioned, with no experience with racinos draft the rules, it makes sense to defer to experts. One such expert, with an office just a couple dozen miles from the State House, has offered his services to the governor’s office but has yet to hear if his expertise would be welcomed. It should be.

Maine is the only state to allow an expansion of gambling through a citizen’s initiative and it is now clear that this approach has its drawbacks. While voters approved the measure in November, most surely had not read the statutory language behind the referendum question. Had they, they would have found a new entity that would be unregulated to a dangerous extent and major costs left unaccounted for. These weaknesses in the law that was passed clearly need to be fixed. But, without a serious look at what has and has not worked in other states, Maine is likely to repeat their mistakes. Accepting expert advice could avoid this.