Northern Maine fair officials enthused about slots revenue Horse racing activities – and crowds – will likely grow, they say

PRESQUE ISLE – When it comes to slot machines in Maine, Northern Maine Fair Association officials are excited about what the gambling operation could do to strengthen agricultural fairs throughout the state and the horse racing events they host.

Since Hollywood Slots and the off-track betting parlor at Bangor Raceway, both operated by Pennsylvania-based Penn National Gaming Inc., opened for business about six months ago, many entities in the state have begun to reap the benefits of slots revenue and among them are agricultural fair associations.

As mandated by the Legislature, 39 percent of slots revenue – for the month of April, it was about $970,000 – is divided among several beneficiaries.

They include Healthy Maine initiatives, University of Maine System and Maine Community College System scholarships, the host city, Bangor, and three others in which fair officials have a particular interest – harness racing purses (10 percent), the Sire Stakes fund, and the agricultural fair support fund (both 3 percent).

According to Robert Flewelling, Northern Maine Fair Association treasurer, the money that goes into the funds gets divided between Maine fairs, in some cases including those fairs that do not host horse races.

Because the slots facility has been operating for just half a year and because payments from the state are based on the previous year’s fair operations, Flewelling said Wednesday that no one knows yet just how much the fairs are going to receive for 2006 in premium and facility stipends – over and above what the state gives them – because of the new slots revenue. But officials do know one thing: It’s probably going to be quite an increase.

“Right now, we know we’re going to have to increase our purses by $26,000 because of the purse supplement we got” from the revenues, Flewelling said.

Without it, the fair association would have received about $40,000 from the state for its harness racing purse supplement.

The association receives payments in four categories – based on formulas, partial reimbursements and premiums paid – from the state: a premium stipend, facility stipend, purse supplement and Maine Sires Stake Payment. This year’s payment for the Northern Maine Fair Association, based on last year’s operations, came to $149,188, including $26,875 in purse supplements from the slots revenue.

Flewelling expects that number to climb significantly next year and he said that’s good news for local fair associations.

“This is providing all the local fairs with additional revenue to keep going because some of these fairs, if you have a rainy day a few times during the week, you lose your crowds and you lose money,” he said. “There have been years when you wait for your stipend money that comes at the end of the year in order to pay your outstanding bills.”

Flewelling said it also will help increase premiums, or prize money, for many events and grow horse-racing activities because the bigger the purses, the better the races and the “more likely crowds are to come out.”

With Penn National officials planning to build a permanent, $70 million racino in downtown Bangor that will replace Hollywood Slots and house its off-track betting operation, local official say the future looks very bright.

“We’re pleased that some of the revenues being generated there [in Bangor] are going to come back and promote our fair and harness racing here,” said Lynwood Winslow, Northern Maine Fair Association vice president. “Harness racing has been a core part of our fair for many years and this will help it to continue.”