Penn gets its license for OTB Bangor racino operator also gets simulcast OK

AUGUSTA – Another piece of the Bangor racino puzzle fell into place Friday for Penn National Gaming Inc.

After a nearly three-hour hearing at the Augusta Civic Center, members of the Maine Harness Racing Commission voted 5-0 to grant the Pennsylvania-based gaming and racing company a state license to operate the off-track betting facility that it is acquiring as part of its $3.8 million purchase of Miller’s Restaurant.

The commissioners granted Penn the authority to conduct simulcast wagering in a separate 5-0 vote.

The commissioners’ decisions followed testimony from Henry Jackson, harness racing commission executive director, and representatives of Penn National, Miller’s, the Maine Harness Horsemen’s Association and the Maine Standardbred Breeders and Owners Association.

In addition, the commissioners heard a report on Penn’s financial condition and suitability to operate an OTB from Christian Smith, a certified public accountant hired to look at Penn’s financial track record.

Smith concluded that Bangor Historic Track Inc., the Penn subsidiary that operates city-owned Bangor Raceway, still is losing money but that Penn has the means to cover operating expenses.

“I’ve gone through [the criteria] and believe the issuing of a license would be appropriate,” said Norman Trask, a commissioner from Easton.

Commissioner James Tracy of Farmingdale agreed. “I see no reason why we should not proceed,” he said.

In his motion to grant the license, Commissioner Stanley Kuklinksi of Farmington added several conditions, among them that Penn National: submit a copy of a recorded deed as evidence of the real estate closing with the Miller family; take out a $50,000 surety bond or irrevocable line of credit in that amount; and provide copies of its Class A restaurant and lounge license and corporate affirmative action policy. The company also must show how it will keep minors out of areas in which wagering is conducted.

Ann Jordan, a commissioner from South Portland, added the requirement that Penn National submit written proof of a security plan for the OTB it plans to move from Miller’s to the Bangor Raceway grandstand.

The OTB is part of Penn National’s plan to open a temporary gaming facility at the former Miller’s Restaurant on Main Street, according to Steven Snyder, the company’s senior vice president for corporate development. The company is beginning renovations aimed at turning the restaurant into a gaming facility that will house up to 500 slot machines, Snyder said. If all goes according to plan, that facility will be up and running by November or December.

As another aspect of that plan, the Post Time OTB that has operated out of the basement at Miller’s since mid-1994 will be moved to the Bangor Raceway grandstand.

Though the grandstand was overhauled to the tune of $575,000 less than two years ago by a former operator that hoped to install slot machines there, Snyder said Friday that Penn plans to spend an additional $600,000 on the facility.

In the meantime, the OTB at Miller’s is still being operated by John Miller, who said he planned to keep it open until after the Belmont Stakes in June.

After that, the OTB will close until its new home is ready.

“We plan to open as close to July 1 as possible,” Snyder said of the facility, which will accommodate about 200 patrons.

The temporary facilities at the grandstand and at Miller’s eventually will be replaced with a $75 million permanent gaming complex that will house 1,500 slots and the off-track betting operation.

In response to a question about smoking from George McHale of Orrington, chairman of the harness racing panel and the state’s Gambling Control Board, Snyder said both the OTB and slots parlor would be smoke-free.

Though smoking now is allowed at the Post Time under an exemption to state laws banning smoking in public places, Snyder said it does not appear the exemption can be transferred to Penn.