Get the facts on Hollywood Slots

Whether you’re a high roller or a staunch opponent of gambling, we hope you will take time to learn the facts. Love them or hate them, slot machines are here to stay. Hollywood Slots has been open less than a year, but it seems to be enjoying a successful debut in Bangor. The total amount bet has grown month after month to its current monthly level of $50 million. But don’t be misled by that huge number. Fifty million bucks is what people bet, not what bettors lost.

It is important to understand that when Hollywood Slots takes in $50 million, it pays out nearly $47 million of that to many lucky winners. In August 2006, over 93 percent of the total amount bet was paid to winners, leaving a little more than $3.3 million. The $3.3 million left after winners are paid is called “net revenue.” That amount is subject to about 12 different taxes that go to various beneficiaries. These are dedicated funds to support important programs such as prescription drugs for seniors, college scholarships for Maine students, economic development for Bangor and to help revitalize harness racing.

Take out the taxes which amount to about half of the $3.3 million net revenue and Hollywood Slots is left with about $1,631,000. That $1,631,000 is what Hollywood Slots uses to pay its expenses which include payroll for about 160 people; it buys food and beverages to sell in the restaurant; it pays for advertising, heat, lights and power, property taxes, and all of the other traditional expenses paid by Maine businesses. Most of Hollywood Slots’ expenses (for payroll, food, advertising, etc.) are spent right here in the community. Hollywood Slots has also been a strong supporter of many community causes and charities.

Hollywood Slots is not taking $50 million a month out of the community. They have made an investment in the community and plan to invest $90 million more in the near future. I hope that the ultimate impact on the Bangor region will be positive and that the facility will continue to attract more visitors.

If your eyes haven’t glazed over, read below and see what happened to the $50 million that was bet at Hollywood Slots in August or visit www.maine.gov/dps/GambBoard/FinancialInformation.htm.

Peter Daigle is chief operating officer of Lafayette Hotels and occasionally visits Hollywood Slots.

Hollywood Slots Financial Activity for August 2006

Total Gross Amount Bet $50,123,634.95

Paid to Winners $46,783,950.71

Net Revenue $3,339,684.24

Less 1% Administration Fee into State’s General Fund $501,236.35

Net Revenue after administrative fee $2,838,447.89

Gambling Control Board and Gambling Addiction Counseling $85,153.44

Harness Racing Purses $283,844.79

Sire Stakes Fund $85,153.44

Agricultural Fair Support Fund $85,153.44

Healthy Maine Fund $283,844.79

University of Maine Scholarships $56,768.96

Maine Community College system Scholarships $28,384.48

Fund to Encourage Racing at Maine Harness Racing Tracks $113,537.92

Fund to Stabilize the State’s Off-track Betting Facilities $56,768.96

City of Bangor, Host Municipality $28,384.48

City of Bangor, Host Municipality $100,190.53

Total Taxes $1,207,185.20

Total Taxes and Fees $1,708,421.55

Net Revenue After Gaming Taxes and Fees $1,631,262.69