December 22, 2024
Business

Slots bring in $21M for Maine Tax revenue tallied for Bangor facility

BANGOR – The state’s harness racing and agricultural industries appear to be some of the biggest winners when it comes to the tax revenue generated from Hollywood Slots’ first 14 months of gambling.

And the biggest jackpot the racing casino paid out in the same 14 months was $50,000, according to newly released reports.

Since its grand opening in a former restaurant on Main Street, Hollywood Slots has generated some $21 million in tax revenues for state programs and for Bangor, its host.

Others receiving some of the tax revenue: the state’s university and community college systems, elderly and handicapped residents paying for prescription drugs, and the state itself.

The numbers cover the slots facility’s entire operating history so far, from its opening in November 2005 through the end of 2006.

It is owned by Penn National Gaming Inc.

The figures match those maintained by the state Gambling Control Board, housed at the state Department of Public Safety in Augusta.

The update provides a breakdown of how much each of the slots beneficiaries, defined by state law, has received as a share of the proceeds of the 475 slot machines in Bangor.

The interim facility will be replaced in mid-2008 with a larger, permanent casino across from Bass Park featuring up to 1,500 slots.

“The temporary property is doing right in line with what we had anticipated,” Jon Johnson, general manager for Penn National’s Maine operations, said Tuesday.

“We are very pleased with the first-year operating results and very proud of the economic benefits that the city and state have received,” he said.

According to data maintained by the gambling board, $624.2 million has been wagered at Hollywood Slots so far, though that figure is deceptive because, by state law, at least 89 percent of the total handle must be returned in the form of jackpots to players. In addition, the total handle figure includes winnings that are put back into the machines for continued play.

Johnson said Tuesday that the company actually has paid out $582.8 million to winners, which amounts to 93.3 percent.

The government’s piece of the revenue action comes from two taxes.

In accordance with state slots law, Hollywood Slots is assessed a 1 percent tax on its total slots wager and a 39 percent tax on its net revenue, which totaled almost $41.7 million over the 14-month period.

Between the two taxes, Hollywood Slots pays out the equivalent of 51 cents of every dollar wagered in its slot machines, or more than $21 million so far.

About $7 million of that has been earmarked for revival of Maine’s harness racing industry and agricultural fairs.

The state’s General Fund received the second-largest cut, $6.2 million. Other beneficiaries include the state’s prescription drug program for elderly and handicapped people, scholarship programs, and the city government, which has taken in more than $1.6 million.

The city has used a portion of its cut to recoup costs connected to locating the racino here, such as legal and lobbying costs, Finance Director Debbie Cyr confirmed Tuesday.

The city has been socking the rest away to be used toward a replacement for the city’s aging auditorium and civic center.

Henry Jackson, executive director of the Maine State Harness Racing Commission, said this week that the cash infusion from the slots is renewing interest in harness racing, an industry said to be in its death throes a few years ago.

The renewed interest extends beyond the state’s borders into the Maritime Provinces, he said.

From 2005 to 2006, the amount of purse money paid out to winning horses saw a nearly 60 percent surge, “much more” than projected, Jackson said. Statewide, the number of dashes, or races, jumped by 25 percent.

In addition, the number of race dates at Bangor Raceway increased last year and will grow by another 10 days in 2007, Jackson said. The Northern Maine Fair in Presque Isle also won approval for 10 more race days, although Presque Isle’s was conditional on securing necessary funding.

One sign that Maine’s harness racing industry is perking up is the recent increase in breeding activity, Jackson said.

Sixty-one stallions were registered with the state in 2005, he said. Last year, the number increased to 71, and 13 more are projected for this year.

The number of pregnant mares grew by 17 percent over the past year, from 299 in 2005 to 350 last year.

In the meantime, attendance at Hollywood Slots is holding steady.

Between 1,400 and 1,600 patrons go to the facility each weekday, and on weekends, the number jumps to 2,500 to 2,700, said Amy Kenney, Hollywood Slots’ spokeswoman.

The only thing that seems to keep patrons away is bad weather.

“We really see a drop in our head count when the weather is bad,” Kenney said.


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