128th MAINE LEGISLATURE
		LD 1201		LR 1992(02)
	An Act To Authorize Tribal Gaming
	Fiscal Note for Bill as Amended by Committee Amendment " "
	Committee: Veterans and Legal Affairs
	Fiscal Note Required: Yes
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
	This bill authorizes the Gambling Control Board to accept an application for a casino license from a joint tribal entity comprised of the Passamaquoddy Tribe, the Penobscot Nation, the Aroostook Band of Micmacs and the Houlton Band of Maliseet Indians. The location of the facility cannot be located within 50 miles of an existing casino facility. The facility would be taxed at the rate of 25% of net slot income and 16% of net table game income. The bill also requires that when the Passamaquoddy Tribe and the Penobscot Nation begin receiving distributions from the new joint tribal entity casino, the distributions they currently receive from the Oxford Casino will instead go to the General Fund.
	The bill exempts the applicant for a casino license from paying the $250,000 one-time non-refundable privilege fee and from the $5,000,000 minimun license fee required by MRSA Title 8, section 1018, subsection 1-A, but the applicant would be subject to an application fee of $225,000, a slot machine registration fee of $35,000, a table game initial privilege fee of $800,000 and a table game registration fee of $800. This would generate $1,060,800 in the first year for the Gambling Control Board. Renewal fees for the casino operator, slot machines registration, table games registration and a table games privilege fee will generate an estimated $123,800 annually thereafter. Annual state General Fund costs associated with 4 positions and other related expenses are estimated to be $878,835
	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 8 table games, generating annual revenue of $5,475,373 for the State's General Fund. A reduction in revenue to Hollywood Casino and Oxford Casino is anticipated because of the increased competition for customers created by the new casino. That reduction's impact on the General Fund is not estimated at this time but would be partially offset by this bill's provision that the current distributions from Oxford Casino to the Passamaquoddy Tribe and the Penobscot Nation be diverted to the General Fund once the Passamaquoddy Tribe and the Penobscot Nation begin receiving revenue from the new casino. Overall, the authorization of a third casino which distributes 25% of net slot machine income and 16% of net table game income to the General Fund will result in significant additional revenue to the General Fund.
	Summary of Casino Revenue					Annual
						Estimate
	Gross Slot Income (total value of money, tokens, credits and other value used to play a slot machine)					$194,818,750
	Player Payback - Slot Income					$174,752,419
	Net Slot Income					$20,066,331
	Operator Share of Net Slot Income - 75%					$15,049,748
	Share of Net Slot Income for Distribution - 25%					$5,016,583
	Net Table Game Income					$2,867,440
	Operator Share of Net Table Game Income - 84%					$2,408,650
	Share of Net Table Game Income for Distribution - 16%					$458,790
	Total General Fund Revenue Annually					$5,475,373
					1st year
					Estimate
	Casino Operator Initial Application Fee				$225,000
	Slot Machine Registration Fee	$100 x 350 machines			$35,000
	Table Games Initial Privilege Fee	$100,000 x 8 tables			$800,000
	Table Games Registration Fees	$100 x 8 tables			$800
	Total Other Special Revenue to Gambling Control Board - 1st year only				$1,060,800
	Casino Operator Renewal Fee					$80,000
	Slot Machine Renewal Fee	$100 x 350 machines				$35,000
	Table Games Annual Privilege Fee	$1000 x 8 tables				$8,000
	Table Games Renewal Fees	$100 x 8 tables				$800
	Total Other Special Revenue to Gambling Control Board - Annually after 1st year					$123,800
	Summary of Expenditure Impacts to the State
	General Fund - Public Safety					$878,835