New racino plan to aid horsemen

BANGOR – An amendment to the governor’s emergency racino bill crafted by – and apparently supported by – the various factions of Maine’s harness racing industry would reduce the earning potential for the operator of a proposed Bangor racetrack casino.

At the same time, the amendment, unveiled to city officials Monday, would increase financial support for such harness racing stakeholders as horsemen, breeders and owners, agricultural fairs, track operators, off-track betting facilities and the state’s two commercial harness racing tracks – Bangor Raceway and Scarborough Downs.

Both tracks are working with the Pennsylvania firm Penn National Gaming to develop racinos, though Scarborough’s odds of succeeding are less certain.

Portland attorney Chris Howard, who is representing Penn National, said that the amendment addresses concerns raised by Gov. John Baldacci and state lawmakers and it helps keep various sectors of that community financially viable, especially as Maine’s fledgling racino initiative gets off the ground.

Howard said Monday night that the amendment was the product of a compromise among the various harness racing industry stakeholders. It aims to keep the racino concept in Maine viable, both politically and financially, and incorporates many of the elements of a previous industry bill supported by OTBs last year.

“This [increased] sharing of some of the revenue across the industry is what made this agreement come together,” Howard said Monday night. “Penn’s desire is not to harm any aspect of the [harness racing] industry.”

The industry compromise does not involve the Penobscot Nation and Passamoquoddy Tribe, which are seeking legal standing in the licensing issue now before the Maine Harness Racing Commission.

The amendment, referred to by some as the “industry consensus” proposal, will be unveiled today to Baldacci, legislative leaders and members of the Legislature’s Legal and Veterans Affairs Committee, who are in the midst of reviewing Baldacci’s emergency bill, City Manager Edward Barrett said Monday night.

Barrett outlined some of the industry amendment’s key points during Monday night’s City Council meeting. Though Howard said he had hoped to elicit the council’s support for the industry’s proposal, councilors were still getting familiar with it and its potential implications when the time came to adjourn the workshop.

Under the citizen-initiated law and the governor’s bill, the licensed operator would keep 75 percent of the gross income from slots, or the income after winnings are paid out to players. The state would get the remaining 25 percent.

That 25 percent would be divvied up as follows: 10 percent to help the elderly and disabled pay for prescription drugs; 7 percent to supplement harness racing purses; 3 percent to support agricultural fairs; 2 percent to the University of Maine Scholarship Fund; 1 percent for Maine Community College System scholarships; 1 percent to the racing commission’s Sire Stakes Fund; and 1 percent for administrative expenses, including costs connected with programs dealing with gambling addictions.

The industry compromise would decrease the operator’s share to 65 percent and increase the state’s portion to 35 percent. To that end, the following percentage changes are proposed: the supplement to purses would increase to 10 percent, the sire stakes fund would rise to 3 percent, the fairs would receive 4 percent.

Notably, the remaining 4 percent increase in the state’s share would go to a new program called the Fund to Encourage Racing at Maine’s Commercial Tracks. The funds would go to the two existing tracks, with distribution to be based on each track’s percentage of total dashes run at both tracks during the year.

During the council workshop, Barrett estimated that based on the status quo, Scarborough would receive about three-fourths of the proceeds and Bangor, the one-fourth balance.

The governor’s bill, LD 1820, could replace part or all of the law approved by Maine voters in November that allowed slot machines at both commercial tracks.

Bangor, however, was the only community to gain the needed local approvals before a Dec. 31, 2003, deadline set by the referendum bill. The industry agreement that will be presented today marks the first time that the southern Maine track stands to gain a piece of the slots action.

Based on recent discussion at the legislative committee level, state lawmakers are divided on whether Scarborough ought to get another chance at developing a racino, despite opposition from Baldacci and other gambling foes.

During their most recent work session last Wednesday, members of the Legal and Veterans Affairs Committee discussed leaving the door open for a southern racino, but would only consider such a proposal after a two-year period during which only the Bangor track would operate.

Howard did not appear worried about such a delay.

“Penn’s in this for the long haul,” he said.