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128th MAINE LEGISLATURE |
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LD 1447 |
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LR 232(02) |
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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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Fiscal Note for
Bill as Amended by Committee Amendment " " |
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Committee: Veterans and Legal Affairs |
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Fiscal Note Required: Yes |
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| Fiscal Note |
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 |
| 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 $4,188,607 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 Houlton Band of Maliseet Indians will be required to pay
an initial application fee for a casino operator license of $100,000 and an
initial gaming table privilege fee of $100,000 per table that together will
generate $1,100,000 in Other Special Revenue Funds. They will also be
required to pay an initial registration fee of $100 for each slot machine and
$100 for each table game, generating $36,000 in Other Special Revenue Funds
revenue. The annual renewal fees for the casino operator license of $35,000,
gaming table privilege renewal fee of $1,000 per table, slot machine renewal
fee of $100 per machine and table game renewal fee of $100 per table will
generate an estimated $81,000 annually in Other Special Revenue Funds
revenue. The GCB will require annual General Fund appropriations of $613,943
starting in fiscal year 2018-19 for costs associated with 5 inspector
positions 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) |
$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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$152,686 |
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Fund to Supplement Harness Racing Purses |
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$35,843 |
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Veterans Organizations |
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$35,843 |
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Subtotal Other Special Revenue Funds Revenue |
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$4,631,912 |
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Other Special Revenue Funds 3% revenue
reduction from Bangor Casino |
(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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$4,188,607 |
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Total Revenue All Funds |
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$4,986,496 |
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Annual |
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Licensing and Application Revenues - Other Special Revenue |
1st Year |
Estimate |
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Casino Operator - Initial Application Fee |
(one-time) |
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$100,000 |
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Casino Operator - Annual Renewal Fee |
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(annual) |
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$35,000 |
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Table Games - Initial Privilege Fee |
(one-time) |
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$1,000,000 |
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Table Games - Annual Privilege Renewal
fee |
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(annual) |
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$10,000 |
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Slot Machine - Initial Registration Fee |
(one-time) |
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$35,000 |
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Slot Machine - Annual Renewal Fee |
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(annual) |
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$35,000 |
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Table Game - Initial Registration Fee |
(one-time) |
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$1,000 |
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Table Game - Annual Renewal Fee |
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(annual) |
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$1,000 |
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Total Licensing and Application Revenues |
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$1,136,000 |
$81,000 |
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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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Total Revenue Reduction - Bangor Casino |
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(648,733) |
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Summary of Expenditures by State (GCB) |
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General Fund |
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$613,943 |
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Other Special Revenue Funds |
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$81,000 |
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Total Expenditures |
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$694,943 |
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