Slots compromise increases state’s gain

AUGUSTA – Striking what they see as a “politically viable” compromise to allow slot machines at Bangor Raceway, the chairmen of the Legal and Veterans Affairs Committee on Thursday pushed a draft plan to increase the state’s share of the profits and close the door on a southern Maine track.

“There was zero support,” said the committee’s co-chairman, Sen. Ken Gagnon, D-Waterville, of the sentiments among Senate Democrats for allowing a racetrack casino at Scarborough Downs. The potentially lucrative southern track has faced several obstacles, not the least of which has been Gov. John Baldacci, who has opposed any expansion of gambling not allowed by the voter approved November referendum that legalized racetrack casinos.

Under that referendum language, only the Bangor track is eligible for slots because, unlike Scarborough, it gained the needed local approval before the Dec. 31, 2003, deadline.

Industry officials, including those from Bangor Raceway’s potential operator, Penn National Gaming, have continued to push for slots at the southern track, however. The latest attempt came by way of an industry agreement that would allow slots at Downs in 2005 pending local approval.

That agreement, presented to the committee earlier this week, was written in large part by attorneys for Penn National, which also has a deal to operate a southern Maine racetrack casino.

Penn National spokesman Eric Schippers said in a Thursday telephone interview that he would reserve comment on the chairman’s proposal until he could review it.

The committee will consider the matter next at 1 p.m. Wednesday.

The latest draft penned by Gagnon and House chairman Rep. Joseph Clark, D-Millinocket, would increase the state’s share of the gaming revenue to 40 percent from 25 percent allowed in the original bill. The industry agreement increased the state’s share to 37 percent.

According to state estimates, the 3 percent difference translates into an extra $1 million for the state in fiscal year 2005 and $2.5 million in fiscal year 2006.

The draft did come under fire from several fronts Thursday, signaling a strong likelihood there would be numerous attempts to amend the plan next week before it hits the House floor.

Rep. Pat Blanchette, D-Bangor, said she wanted a new bill to reserve up to 2 percent of the revenue for communities that host a so-called “racino.” While that money might be destined only for Bangor now, Blanchette predicted the city’s exclusive agreement wouldn’t last long.

“Don’t bury your head and think this is going to be the only card game in town,” she told her fellow committee members. “If this works, other communities around the state are going to do it.”

Baldacci’s office issued a statement Thursday saying that while they were reviewing the financial implications of the chairmen’s draft, it appeared that it “has largely improved the regulatory elements of the governor’s bill.”

In many ways, the chairmen’s compromise resembles Baldacci’s bill, LD 1820, including its formation of a Gambling Control Board to oversee the new industry.

Also like the governor’s bill, the chairmen’s draft includes a statewide limit of 3,000 slot machines.