State: Progress made on racino

BANGOR – Despite widespread perceptions of foot dragging on the part of the Baldacci administration, state officials have made significant strides in their effort to develop the necessary regulatory framework for a racetrack-casino headed for Bangor Raceway.

That was among the messages delivered to local leaders Friday by Kurt Adams, Gov. John Baldacci’s chief legal counsel, and Public Safety Commissioner Michael Cantara during a gathering Friday of the Action Committee of 50, a local organization dedicated to improving the economic health of Greater Bangor.

Baldacci sent the two here to clarify his position on the racino after receiving a letter from Bion Foster, chairman of the Bangor Region Chamber of Commerce board of directors. In his letter, Foster noted that while the need for regulation was not at issue, the chamber’s board was growing frustrated with the perceived lack of progress toward allowing the racino to open. He urged the governor to move the project forward with as little delay as possible.

“Our region sees this project as one of the drivers of central Maine’s economic engine,” Foster wrote. “Each month, actually each week, we are seeing area businesses close, leaving behind a talented pool of workers. It is very much in our best interests and the state’s best interests to retain these workers. The jobs offered at this facility will help us do just that.

“We must also keep in mind the ripple effect the project will have within central Maine,” he noted. “As the dollars flow through the system we will see payroll increases, vendor orders rise, an increase in occupancy within our hospitality industry as well as added dollars to the state’s sales tax coffer. It is a win-win situation, with great odds. Our residents win, Maine’s merchants win and the state wins.”

Though opposed to casino-style gambling, Baldacci has stated that he intends to honor the will of Maine voters, who approved slot machines for the state’s commercial harness racing tracks in Bangor and Scarborough in a Nov. 4 referendum. Bangor, however, was the only location that won the necessary local approval.

“The governor is very clear about one thing,” Adams said. “The people have spoken. The people have voted to have a racino [in Bangor].” Adams noted, however, that Baldacci also made clear his intention to ensure the racino operates in the best interest of Bangor and Maine and not at the expense of crucial state programs.

To that end, Baldacci directed staff to draft emergency legislation calling for strict regulations and financial safeguards that state officials say were absent in the citizen-initiated law voters approved late last year, Adams said.

“The initiated bill, as passed, did not serve the interests of the people of Maine and the people of Bangor,” he noted.

Had the original bill remained intact, he said, Maine would have been one of the least-regulated racino host states in the nation. That bill set no limit on the number of slots, gave state police no oversight, would have allowed convicted felons to work at the racino and did not cover all of the state’s expected administrative costs. It also did little to encourage harness racing, the rationale supporters gave for its passage.

Cantara noted that developing regulations for the racino “has been a matter of process,” an effort that he acknowledged had taken some time.

The governor’s bill, he said, is based on “best practices” drawn from racino laws in several other states. State staffers also noted potential pitfalls.

“This is a new venture,” Cantara said. “This is new for all of us. With it comes a commitment to wanting to do it right the first time.”

Baldacci’s bill has been reviewed by the Legislature’s Legal and Veteran’s Affairs Committee, which made numerous amendments before approving it in a 10-3 vote. The bill is expected to go before lawmakers in the near future.

Provisions of the governor’s bill include a five-member gambling control board and executive director and a cap of 1,500 slot machines for Bangor and 3,000 statewide. The bill also cut the racino operator’s slot revenues from 75 percent under the law approved by voters in November to 61 percent, which has been a matter of concern for developer Penn National Gaming, which has suggested it needs 63 percent to keep the project viable because of Maine’s relatively small market.

Cantara noted that the current version of the bill shifts the responsibility of conducting a state-mandated suitability investigation for prospective racino operators from the Maine Harness Racing Commission to the state Department of Public Safety. Cantara said that state police personnel will assist with many aspects of the state-mandated background checks, but that consultants likely will be brought in to handle aspects requiring specialized expertise.

Among those on hand for the talks were representatives of Penn National. “We found the meeting informative and were very pleased by the show of support for this economic development project from the Bangor business community and members of the City Council,” Penn spokesman Eric Schippers said.

Penn plans to invest between $40 and $50 million in the project. Penn’s predecessor, Shawn Scott, planned to invest $30 million before selling his development rights in early January.