Maine lawmakers voted on Thursday to delay action on two proposed legislations for the establishment of new casinos in the state to January 2016, when the Legislature is scheduled to reconvene.
This was the third legislative session that the two bills were neither signed into laws, nor killed completely. Last month, the Maine House of Representatives approved LD 1280, which calls for the establishment of a new casino in the southern part of the state. Later on, the Senate rejected the measure. The proposal for a tribal gaming facility in northern Maine was also killed by the Senate in June. However, it seems that the two bills will get yet another chance next year.
Sponsored by Rep. Henry John Bear, member of the Houlton Band of Maliseet Indians, LD 1446 calls for the construction of a casino in Aroostook County or Washington County after a competitive bidding process is carried out. The gambling venue is to economically benefit the four federally recognized tribes that reside on the territory of the state.
If the bill is eventually signed into law, a Casino Development Commission would be established. It would be an independent board that would be run by five members. Those would be named by the Governor and approved by Senate members. The commission would have to issue a request for proposals from operators that are interested to manage a gambling venue in one of the above-mentioned counties.
Once a host municipality is chosen, voters would have to cast their votes on whether they approve of the establishment of a casino. That is, a countywide referendum is to be held no earlier than June 1, 2016 and no later than July 1, 2017.
Any interested operators would have to pay $100,000 in order to be able to submit a bid to the Casino Development Commission and the state Gambling Control Board. Under the bill, the minimum capital investment in the potential new casino is $20 million. Furthermore, it requires for the casino operator that is to run the property to sign an agreement with at least two of Maine’s four federally recognized tribes.
The winning bidder would have to pay a license fee of $1 million. Its license would be valid for a 5-year period. Renewal fees would amount to $100,000.
If the bill passes and a casino opens doors in Aroostook County or Washington County, it would have to contribute to the state 46% of its net slot machine revenue and 16% of its net table game revenue.
Following the announcement that his proposal would be considered once again in January, Rep. Bear said that he is pleased that legislators would care over his proposal as well as the other one submitted, instead of killing them completely.
As for LD 1280, it calls for the construction of a new gambling venue either in Cumberland County, or in York County. Under it, an Independent Facility Location Commission, which would accept bids from interested casino operators, is to be established. Commissioners would have to pick the “best-value bidder” that would be awarded a license by the state Gambling Control Board. The initial license fee would amount to $5 million.
The winning casino operator would have to establish a hotel and casino resort that would feature slot machines, table games, harness racing, a hotel, as well as a number of dining, retail, and entertainment options. Both residents and officials from the selected host community would have to vote in favor of the project before the winning bidder could proceed with its construction.
Once completed and operational, the potential new casino would have to contribute no less than 3% of its net slot machine income to the host municipality.
It is also interesting to note that under bill LD 1280, the number of slot machines registered on the territory of the state may be raised to 7,500.
If signed into law, the proposal would establish an Income Tax Relief Fund and allocations from it would be intended to provide residents of Maine with income tax reliefs.
The winning casino operator would contribute to the Gambling Control Board 46% of its net slot machine revenue and 16% of its net table game revenue. The regulator would distribute the money for various causes that would be intended to benefit the host municipality and its residents as well as the state as a whole.
As mentioned above, further action on the two proposed legislations might be expected no earlier than January 2016, when the Legislature is to convene again.
Currently, there are two state-run casinos in Maine – Hollywood Casino Hotel and Raceway in Bangor and Oxford Casino in Oxford.
