LD 1329 LR 1002(01)
An Act To Allow a Resort Casino in Oxford County
Preliminary Fiscal Impact Statement for Original Bill
Sponsor: Rep. Millett, Jr. of Waterford
Committee: Legal and Veterans Affairs
Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
2009-10 2010-11 Projections 2011-12 Projections 2012-13
Net Cost (Savings)
General Fund $0 ($7,650,567) ($7,411,895) ($7,392,390)
General Fund $0 $1,146,256 $1,158,678 $1,178,183
Other Special Revenue Funds $0 $24,963,231 $24,963,231 $24,963,231
General Fund $0 $8,796,823 $8,570,573 $8,570,573
Other Special Revenue Funds $0 $24,963,231 $24,963,231 $24,963,231
Correctional and Judicial Impact Statements
Establishes new Class C crimes; increases correctional and judicial costs.
Based on experience with the slot machine operation in Bangor, no additional criminal cases are expected.
Fiscal Detail and Notes
The implementation of this bill is contingent upon approval by the voters of the local governmental body where the casino is proposed.  Assuming voter approval and opening on July 1, 2010, presented below is an estimate of the potential revenues and subsequent distribution that may be generated.   This estimate assumes the facility would install 1,000 slot machines upon opening, along with 54 gaming tables, and indicates a potential annual distribution of gaming revenues of $8,376,923 to the General Fund and $24,963,231 to Other Special Revenue Funds in fiscal year 2010-11.  The first year license fees to the General Fund would be $419,900 in fiscal year 2010-11.  Annual state costs associated with Inspectors, a State Police Detective, a Clerk IV and related costs are estimated to be $1,146,256 in fiscal year 2010-11.  
This legislation also creates the Improve Maine's Economic Development and Transportation Infrastructure Fund within the Gambling Control Board, into which the funds for economic development and transportation infrastructure are deposited.  The bill does not include language indicating how these funds would be distributed, or how such projects would be selected.
This analysis assumes no significant effect on revenue generated by the licensed racino facility in Bangor. If there is an appreciable change in racino revenue, there will be a change in the amounts of revenue distributed from that facility.  
Summary of Gaming Device Revenue Estimate
Gross Revenue (total value of money, tokens, credits, other value used to play a gaming device) $837,692,308
Player Payback (assumed at 91.55% of gross revenue) $766,907,308
Administration Reimbursement to State (1% of gross revenue) $8,376,923
Net Income (gross revenue - player payback - general fund administration) $62,408,077
State Share of Net Income (40% of net income) $24,963,231
Municipal Share of Net Income (assumed at 3% of net income) $1,872,242
Operator Share of Net Income (57% of net income) $35,572,604
State Revenues by Fund Estimate
General Fund 
Administration (1% of gross revenue) $8,376,923
    Total General Fund Distribution $8,376,923
Other Special Revenue Funds
Economic development projects - 50% statewide and 50% Oxford County $12,169,575
Transportation infrastructure projects - 50% statewide and 50% Oxford County $12,169,575
Municipality in which gaming facility is located $624,081
    Total Other Special Revenue Funds Distribution $24,963,231
Other Revenue Impacts to the State
License fees to the General Fund $419,900
Summary of Expenditure Impacts to the State
General Fund
 - Public Safety  $1,146,256