AUGUSTA – A bipartisan majority of the Legislature’s Legal and Veterans Affairs Committee is supporting legislation authorizing the Penobscot Nation to operate slot machines in Old Town. But Gov. John Baldacci says any expansion of slot machine gambling needs voter approval.
“I’d like to talk with the committee and the people who are pursuing that,” Baldacci said in an interview Monday. “But I have been very clear that I oppose expansion. I have said all along this is something that the people must approve.”
Nine of the 13 members of the committee were present during Monday’s work session and all supported the bill as amended. The other four members have 48 hours to indicate their position. The bill passed the Senate 20-15 and the House 98-40 last year.
“This had a lot of support last year, and we hope the governor will take another look at it,” said Rep. John Patrick, D-Rumford, the House chairman of the panel. “There is a negative impact from Hollywood Slots on the tribe. They are losing revenue because on the second night of their high-stakes bingo, people are going down to Hollywood Slots” in Bangor.
Patrick said that while the bill as voted by the committee would allow 400 slot machines, some of the panel’s members are working on an amendment to reduce the number of machines to 100 and limit their use to when the high-stakes bingo games are operated.
Sen. Debra Plowman, R-Hampden, said there is strong support for the proposal in both parties. She said the amendment that is being drafted limits the number of machines to a “more appropriate” number given the losses the tribe has had in its bingo games.
“This is a different approach with far fewer machines allowed,” she said. “We know the tribe needs the revenue, and this will provide what they need.”
Plowman said the bill was carried over instead of having a veto showdown last year because of the initiated referendum by the Passamaquoddy Tribe to allow slot machines in Washington County. It failed at referendum in November with 130,146 voting in support and 142,458 voting against.
“I don’t think – I certainly hope – that vote will not have an impact on this proposal,” Patrick said. “There are a lot of differences between the bills.”
Rep. Donna Loring, the Penobscot Nation’s representative to the Legislature, sponsored the original legislation. She could not be reached Monday evening to comment on the committee vote.
The measure has provisions on revenue distribution similar to those that apply to Hollywood Slots at Bangor. In addition to paying for the cost of the Gambling Control Board to oversee operations, the University of Maine System and the state’s community colleges would get a slice of the money, as would the Maine Technology Institute and the veterans program administered by the state.
But the bill has several differences as well. For example, other federally recognized tribes in the state would share 5 percent of the pie and 5 percent would go to the city of Old Town. In addition, nonprofits within 75 miles would share a pot of 5 percent of the revenue.
Both Patrick and Plowman expressed hope the additional revenues to the state and to other groups that would be generated from the additional slots would help the state’s budget situation and persuade the governor to go along with the measure.
Four hundred machines were estimated to generate $2.2 million a year for the state’s General Fund. There has not been an updated estimate for this year or on the amendment limiting the number to 100 machines.
“We are looking at tough times, and this will generate revenue,” Plowman said.
As for the governor changing his mind, he said he has not.
“I have been consistent on this,” he said. “I have opposed any expansion of gambling without voter approval, and I haven’t changed on this.”
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