BANGOR – The chief executive officer of Foxwoods Resort Casino has written a letter to Bangor city councilors indicating the casino’s ongoing interest in developing the state’s first racino as part of its partnership with Maine’s Penobscot Nation and Passamaquoddy Tribe.

The project would involve bringing up to 1,500 slot machines to the city-owned track located in Bass Park in Bangor, currently the only commercial harness racing track with the needed voter approval to do so.

As things stand, Penn National Gaming is the designated developer of the Bangor racino. It also holds a conditional harness racing license, with a permanent license to follow upon completion of a state-mandated background check.

Under a plan endorsed by the Legislature’s Legal and Veteran Affairs Committee, the Pennsylvania-based gaming and racing operator would get 61 percent of the slot-machine revenues.

Penn National, however, contends that given Maine’s relatively small market, it needs to retain at least 63 percent of the proceeds to remain profitable.

In his letter to local officials, Foxwoods CEO Bill Sherlock maintained that Foxwoods and the tribes could – and would – operate profitably even with the larger share for the state.

“We understand that Penn National has claimed that this tax rate would force Penn National to reduce or terminate its commitment to developing the racino,” Sherlock wrote. “We want you to know that should Penn National decide to abandon the project because of the new tax rate, Foxwoods and the tribes would stand ready to step in and meet all of the commitments in your existing contracts.

“Based upon our experience operating [Foxwoods], we are confident that we could successfully develop and operate a first-class racino facility with an adequate return to the tribes even with the larger share for the state.”

Penn National spokesman Eric Schippers found Foxwoods’ position curious.

“We find the offer by Foxwoods ironic since the tax rate for their casino in Connecticut is 25 percent on slot revenues,” he said. “Perhaps the governor of Connecticut ought to take a look at what they’re saying in Maine.”

“It’s hard to imagine any operator arguing for a higher tax structure. The higher the tax, or statutory payments, the lower the amount of money that can be invested in the property and the lower the number of jobs that can be created,” Schippers said.

Sherlock had a different view: “We can only surmise that Penn National may be handicapped as prospective developer of the racino by the size of the financial commitments it has made to its predecessors, Capital Seven LLC and Shawn Scott.”

“The economics of the racino itself would support the tax rate recommended by the committee,” Sherlock noted, concluding that “of course, in the event that Penn National walks away from Bangor and you chose to reach agreement with the tribes, the state would also benefit from tribal ownership of the racino since the bulk of the profits would remain and be reinvested in Maine.”