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128th MAINE LEGISLATURE |
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LD 1447 |
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LR 232(01) |
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An Act To
Recognize and Provide for the Right of the Houlton Band of Maliseet Indians
To Operate a Casino on Houlton Band Trust Land Exempt from Certain Gaming
Laws |
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Preliminary
Fiscal Impact Statement for Original Bill |
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Sponsor: Rep. Bear of Houlton Band of Maliseet
Indians |
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Committee: Veterans and Legal Affairs |
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Fiscal Note Required: Yes |
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| Preliminary
Fiscal Impact Statement |
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Current biennium cost increase - General Fund
Current biennium cost increase - Other Special Revenue Funds
Current biennium revenue increase - General Fund
Current biennium revenue increase - Other Special Revenue Funds |
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| Fiscal Detail
and Notes |
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This legislation
authorizes the Gambling Control Board to accept an application for a casino
license from the Houlton Band of Maliseet Indians. Issuance of a license is
not contingent upon approval by means of a referendum of the State or voters
of Aroostook County. The facility would be taxed at the rate of 25% of net
slot income and 15% of net table game income. Net slot machine and table game
income retained by the Houlton Band of Maliseet Indians will by used by the
tribal governement for social and economic programs that support the Houlton
Band of Maliseet Indians. |
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Presented below
is an estimate of the potential revenues that may be generated from the new
facility and the subsequent distribution of those revenues. This fiscal note
assumes a total of 350 slot machines and 10 table games, generating annual
revenue of $797,889
for the State's General Fund and $4,107,607 for various other funds. This fiscal statement assumes
and incorporates a 3% reduction in revenue to Hollywood Casino. No impact on
revenues generated by Oxford Casino is anticipated. The bill exempts the
Houlton Band of Maliseet Indians from any license fees. These fees are
usually used to support the operational costs of the Gambling Control Board
(GCB). The GCB will require annual
General Fund appropriations of $629,702 starting in fiscal year 2018-19 for
costs associated with 4 new inspector positions and two position upgrades and
other related expenses. |
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Annual |
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Summary of Casino Revenue |
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Estimate |
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Gross Slot Income (total value of money,
tokens, credits and other value used to play a slot machine) |
$194,818,750 |
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Player Payback - Slot Income |
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$174,752,419 |
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Net Slot Income |
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$20,066,331 |
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Operator Share of Net Slot Income - 75% |
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$15,049,748 |
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Share of Net Slot Income for Distribution -
25% |
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$5,016,583 |
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Net Table Game Income |
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$3,584,300 |
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Operator Share of Net Table Game Income - 85% |
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$3,046,655 |
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Share of Net Table Game Income for
Distribution - 15% |
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$537,645 |
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Annual |
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State Revenues by Fund |
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Estimate |
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General Fund |
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General Fund revenue from new Houlton Casino
(5% of net slot income) |
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$1,003,317 |
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General Fund 3% revenue reduction from Bangor
Casino |
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(205,428) |
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Total General Fund |
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$797,889 |
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Other Special Revenue Funds |
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University of Maine System Scholarship
Fund |
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$601,990 |
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Maine Community College System |
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$401,327 |
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Penobscot Nation/Passamaquoddy Tribe/Aroostook
Micmac |
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$2,257,534 |
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Town of Houlton |
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$745,362 |
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Aroostook County |
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$401,327 |
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Gambling Control Board - OSR |
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$71,686 |
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OTB Orgs, Charitable Gaming Operations,
Veterans Organizations |
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$71,686 |
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Subtotal Other Special Revenue Funds Revenue |
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$4,550,912 |
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Other Special Revenue Funds 3% revenue
reduction from Bangor Casino |
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(322,020) |
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Fund for a Healthy Maine 3% revenue reduction
from Bangor Casino |
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(121,285) |
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Total Other Revenue |
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$4,107,607 |
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Total Revenue All Funds |
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$4,905,496 |
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Detail of Bangor Casino Revenue Reduction |
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General Fund Administration (3% Reduction in
Gross Slot Machine Revenue) |
(132,732) |
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General Fund (Other) (3% Reduction in Net Slot
Machine and Net Table Game Revenue) |
(72,696) |
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Subtotal - General Fund |
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(205,428) |
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Fund for a Healthy Maine |
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(121,285) |
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Other Special Revenue Funds |
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Harness Racing Commission |
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(254,699) |
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University of Maine Scholarship Fund |
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(23,286) |
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Maine Maritime Academy Scholarship Program |
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(971) |
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Maine Community College System
Scholarships |
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(12,129) |
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Resident Municipalities |
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(17,502) |
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Gambling Control Board |
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(8,060) |
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Coordinated Veteran Assistance Fund |
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(5,373) |
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Subtotal - Other Special Revenue Funds |
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(322,020) |
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Other Revenue Total |
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(443,305) |
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Summary of Expenditure Impacts to the State |
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General Fund |
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-- Public Safety |
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$629,702 |
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Total Expenditures |
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$629,702 |
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