SCRATCH AND TAX

The votes on Tuesday’s referendum on a tribal racino in Washington County had barely been counted before opponents of the project celebrated by suggesting the Passamaquoddy Tribe join them in eliminating slot machines from Maine. Turning around the tribe’s argument that it is unfair for only one entity – Hollywood Slots at Bangor – to have this type of gambling, opponents now argue that slot machines are unfair because they take money from unwitting state residents. To be fair then, all gambling, not solely slot machines would have to be outlawed.

The state lottery would be a good place to start. By state law, Hollywood Slots at Bangor must return at least 89 percent of wagers to patrons. That does not mean that for every dollar bet an individual gambler gets 89 cents back; it takes a lot of losers to equal a $10,000 winner.

Last year, the lottery paid out 63 percent of its revenue in prize money. Which is more unfair?

Dennis Bailey, executive director of CasinosNO!, which made the offer to partner with the tribes to eliminate slot machines, says he favors eliminating the lottery, too, but this would be a difficult battle because the state relies on the revenue it generates.

So much for fairness.

Last year, more than $225 million worth of lottery tickets were sold, adding more than $50 million to the state’s General Fund, an increase of more than $10 million in five years.

Despite Tuesday’s defeat of the tribal racino proposal, the debate over the morality of gambling is largely over. By taking their gambling dollars to Hollywood Slots, area residents have shown this is their preferred form of entertainment – to the tune of $1 billion wagered.

Questions about the impacts, both positive and negative, of slot machines in Maine need to be better answered.

A recent University of Maine study, for example, found that for every $1 in net gaming revenue to Hollywood Slots, area restaurants gained 29 cents increased sales and hotels saw a gain of 12 cents. Questions such as whether this means racino patrons are not spending money elsewhere locally or are foregoing shopping and entertainment farther away were not answered. Nor was whether the racino was attracting out-of-state visitors rather than shrinking local bank accounts.

In the meantime, Mainers, whether they play the lottery or slot machines, have accepted a voluntary tax – the money they wager but don’t recover in winnings – as a cost of their momentary entertainment.