Every day I’m asked, “What’s going on with the racino?” or “Why’s the state trying to block the racino?” Even those deeply involved in the process have found the situation confusing at times. I’d like to clarify the city’s role throughout this process, one involving all branches of state government, and to separate fact from fiction about who’s helped and who’s hurt.
In June 2003, Bangor citizens approved slots by a vote of 2,917 to 2,199. In November 2003, statewide voters joined us by approving Question 2 by a margin of 53 percent to 47 percent. That question asked, “Do you want to allow slot machines at certain commercial horse racing tracks if part of the proceeds are used to lower prescription drug costs for the elderly and disabled, and for scholarships to the state universities and technical colleges.” The initiated bill was 19 pages long, but most relied on that one sentence in casting their ballot.
During the 2002 gubernatorial campaign, John Baldacci made no secret of his opposition to expanding gambling in Maine. After the racino referendum passed, however, the governor stated that the will of the people would be honored, but that stronger regulatory safeguards were needed to protect the public.
I believe Mainers supported the referendum because we recognized that racinos were necessary to save harness racing and because it provided a prescription drug benefit for the elderly and scholarships for students. It also limited the number of allowed gambling locations. I do not believe that voters studied the proposed regulatory system, the tax rate, the payback percentage, or other details. We assumed that the State would address these issues and protect the public.
In January, the Legislature began to debate these issues. Their discussion focused on two issues – appropriate regulation and taxes. Everyone, including Penn National, quickly recognized that the regulatory environment of the initiated bill was inadequate. Appropriate regulation was the focus of LD 1820, Gov. Baldacci’s bill. That bill also retained the 25 percent tax proposed in the initiative. Penn, working with other industry groups, subsequently proposed increasing the tax to 37 percent in an effort to provide additional financial support to the agricultural and racing industry.
There were also those working to overturn the November election. Newspapers in southern Maine ran weekly editorials calling for a new vote. CasinosNo! added fuel to the fire by urging the Legislature to send the issue back to the voters. From the beginning, the governor and the majority of the legislature stood firm with the city in opposing any effort to bring this issue to another vote.
Last week, the Legislature adopted LD 1820. This bill includes a stronger regulatory framework and an adjusted tax rate. As the Legal and Veterans Affairs Committee worked their way through this bill, they were also sensitive to how it would impact Bangor. The final bill includes provisions that we requested to protect the city’s slot revenues and give us a role in the regulatory process.
We recognize that the task is not yet complete. The Gambling Control Board must be appointed, staff hired, and regulations written. We must work together to insure that this moves quickly and that the state, Penn and Bangor work together to protect the public and to allow the operator to prosper, maximize its investment, and create jobs and economic activity. We must insure that statutory requirements work in the real world. The adopted tax rate may also be too burdensome. While gambling operations must cover state costs, the tax rate in the bill may restrict private investment. LD 1820 is a work in progress, and it may need modifications to insure that our region reaps the maximum economic impact. We must keep an open mind and work cooperatively for the benefit of our community, region, and state.
There is a great deal at stake. In addition to its impact on our economy, Bangor stands to see upward of $2 million to $3 million a year in new taxes, lease payments, and slot revenues. It is our hope that these funds will allow us to replace the Bangor Auditorium without burdening our property tax payers.
Throughout this process, we have worked to protect the city’s interests. We have communicated frequently with the governor and other administrative officials and closely monitored the legislative process. To assist, the city employed a lobbyist to stay in close contact with legislative leadership, members of the committee that worked the bill, and other interested groups. This was a challenging job, and employing a representative in Augusta was one of the city’s wisest moves.
While we are anxious for slots to be up and running at Bass Park, we know we have only one chance to do this right. At the end of the day, we will be judged as having taken the right path by working with and continuing to work with Gov. Baldacci and the Legislature to ensure that the Bangor racino will be one we can be proud of and where the public interest will be protected.
I would like to thank State Sen. Kenneth Gagnon and State Rep. Joe Clark, Co-Chairs of the Legal and Veterans Affairs Committee, as well as the members of that committee and our local legislative delegation for their hard work and efforts on our behalf. I would also like to recognize Gov. Baldacci for his leadership on this issue and his commitment to move rapidly to bring slots to successful operation in Bangor.
Gov. Baldacci signed LD 1820 at Husson College Thursday morning. I hope he will be back soon to pull the first lever and begin a new era for Bangor.
Daniel J. Tremble is the mayor of Bangor.
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