LD 985 LR 2075(01)
An Act Regarding Establishing a Slot Machine Facility
Preliminary Fiscal Impact Statement for Initiated Bill
Committee: Veterans and Legal Affairs
Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
Contingent future biennium cost increase - General Fund
Contingent future biennium cost increase - Other Special Revenue Funds
Contingent future biennium revenue increase - General Fund
Contingent future biennium revenue increase - Other Special Revenue Funds
Referendum Costs Month/Year Election Type Question Length
Nov-11 General Initiated Bill Standard
The Secretary of State's budget includes sufficient funds to accommodate one ballot of average length for the general election in November. If the number or size of the referendum questions requires production and delivery of a second ballot, an additional appropriation of $107,250 may be required.
Fiscal Detail and Notes
This initiated bill would allow the Gambling Control Board to accept applications for licenses to operate additional slot machine facilities in Maine. Current law allows for a total of 1500 slot machines to be operated in the state. The existing facility in Bangor has already been licensed to operate the entire 1500, effectively preventing the establishment of additional facilities. Although this proposed legislation would open the licensing opportunity to multiple facilities with up to 1500 slot machines per facility, specific limiting criteria in the proposed language would make it highly unlikely that more than one new facility would be possible.
Presented below is an estimate of the potential revenues that may be generated from one new slot machine facility and the subsequent distribution of those revenues. This fiscal note assumes one new facility would be established with 1,000 slot machines that would generate annual revenue of $6,534,000 for the State's General Fund and $19,471,324 for various other funds. The General Fund would also receive license fees of $414,500 in the first year and $188,250 for license renewals in subsequent years. Annual state costs associated with Inspectors, State Police Detectives, an Identification Specialist, an Auditor II, contracts for monitoring services and other related expenses are estimated to be $1,071,092. This analysis assumes no significant effect on revenue generated by the licensed racino facility in Bangor. If there is an appreciable reduction in racino revenue, there will be a reduction in the amounts distributed from that facility. The tax structure at the new facility would be 1% of gross slot machine income and 40% of net slot machine income.
Summary of Casino Revenue Estimate
Gross Slot Income (total value of money, tokens, credits, other value used to play a slot machine) $653,400,000
Player Payback - Slot Income $598,187,700
General Fund - 1% of Gross Slot Income $6,534,000
Net Slot Income $48,678,300
State Share of Net Income - 40% $19,471,320
Operator Share of Net Income - 60% $29,206,980
State Revenues by Fund Estimate
General Fund
From Slot Machines $6,534,000
From Annual License Fees (1st year will be $414,500) $188,250
Total General Fund Revenue $6,722,250
Other Special Revenue Funds
Androscoggin River Minimum Water Quality Standards $1,460,349
Downtown Revitalization - Statewide $1,314,314
Downtown Revitalization - Host Municipality $146,035
Grants and Low-Interest Loans to Upgrade and Convert to Renewable Energy - Efficiency Maine $1,314,314
Grants and Low-Interest Loans to Upgrade and Convert to Renewable Energy - Host Municipality $146,035
Counties Other Than County in Which Host Municipality is Located $1,460,349
Maintenance, Repairs and Improvements to Ports and Fisheries $1,460,349
Support Collector Roads and East-West Highway $1,460,349
Capital Improvements to Rail Service $1,460,349
Capital Improvements to Support Rail Service to Bethel $973,566
Host Municipality $973,566
Municipality Closest to Host Municipality With Population of at Least 20,000 $486,783
County in Which Host Municipality is Located $486,783
Capital Improvements to the University of Maine, Maine Community Colleges and/or Maine Maritime $486,783
Organizations Licensed Under MRSA Title 17, 332 $486,783
Agricultural Fair Support Fund $486,783
Lewiston Auburn Economic Growth Council $486,783
Maine Scholars Program $486,783
Maine Office of Tourism $486,783
Maine State Grant Program $486,783
Home-Based Care for the Elderly $486,783
Maine Technology Institute $486,783
Organizations Licensed Under MRSA Title 17, 314 $243,392
Fund to Supplement Harness Racing Purses $243,392
Host Municipality - Infrastructure Improvements $243,392
Each Humane Society Within the State $243,392
Riverfront Bike Path Connecting Lewiston/Auburn to Brunswick $243,392
Meals on Wheels $243,392
Cities of Lewiston and Auburn for Joint Expenses $243,392
Municipalities Adjacent to Host Municipality $243,392
Total Other Special Revenue Funds Revenue $19,471,324
Total Revenue All Funds $26,193,574
Summary of Expenditure Impacts to the State
General Fund
- Public Safety $1,071,092