AUGUSTA – Bangor could stand to lose more than a half- million dollars a year in slot machine revenues based on a bill advanced by a legislative committee Wednesday.

The Legislature’s Legal and Veterans Affairs Committee voted 8-3 to draft a bill that would increase the state’s share of the slots revenue to 42 percent, 1 percent of which would be dedicated to the host community of a racino.

The state’s increase, however, is almost certain to decrease Bangor’s share of the gambling pie, based on an agreement between the city and Penn National Gaming, the developer of a slots parlor at Bangor Raceway.

Under the contract, Penn National must agree to any increases in the state’s 25 percent share – as approved by voters statewide in November – for the city to receive its agreed upon cut of 3-6 percent of the slots revenue. According to state estimates based on 1,500 slot machines, the 3-6 percent share amounts to $2.5 million to $5 million for the city annually.

If Penn does not agree – and company officials said Wednesday they do not – the city’s share would likely drop to between $1.9 million and $4.4 million each year.

“We’re going to be looking at all of this very carefully,” said Bangor City Councilor Gerry Palmer when reached by phone before heading into an executive session at which the council was expected to discuss the issue.

Penn National officials, who have reportedly agreed to a 37 percent share for the state, said any additional cuts in their profits would reduce their investment in the aging Bangor Raceway.

“It will affect the type of facility we build,” Steven Snyder, the company’s vice president of development, said outside the committee’s hearing room. “What I’ve said is if they want to do an 80-20 split, they’ll get a tent with slot machines in it.”

The proposed 42 percent state share would put Maine second among states that allow racinos in terms of how much it taxes the industry, according to figures provided by Christiansen Capital Advisors, LLC, a New Gloucester firm that studies the gambling industry.

In 2002, Rhode Island collected 53 percent of the slots revenue generated there. West Virginia collected 36 percent; Delaware, 35; Louisiana, 33; Iowa, 26; and New Mexico, 25.

The legislative committee will meet next week to consider the final draft of the bill.

Based on Wednesday’s debate, which included several failed attempts to amend the bill, the final draft could be destined for a fight on the House floor.

Sen. Kenneth Lemont, R-Kittery, was in the minority in supporting an amendment that would send the new legislation back to voters, who in November initially approved slots at the state’s harness racing tracks.

“We owe it to the people if we’re going to make all these changes to give them another chance at it,” Lemont said, citing a recent poll suggesting voters would defeat the initiative if given a second opportunity.

More attempts to give Scarborough Downs its own second chance to find a host community for its slots facility were defeated in committee Wednesday.

Currently, only Bangor Raceway has the needed local approval to operate slots. Scarborough Downs missed a deadline to secure local approval from a southern Maine community.