|
|
|
|
|
|
|
|
127th MAINE LEGISLATURE |
|
|
LD 1280 |
|
LR 1572(05) |
|
|
|
An Act To Provide
Income Tax Relief by Expanding Gaming Opportunities |
|
Fiscal Note for
Bill as Amended by Committee Amendment " " |
|
Committee: Veterans and Legal Affairs |
|
Fiscal Note Required: Yes |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fiscal Note |
Contingent biennium referendum cost - General Fund
Contingent future biennium cost increase - Other Special Revenue
Funds
Contingent current biennium revenue decrease - General Fund
Contingent current biennium revenue increase - Other Special Revenue Funds |
|
|
|
|
|
|
|
| Referendum Costs |
Month/Year |
Election Type |
Question |
Length |
|
|
|
Nov-15 |
General |
Referendum |
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 |
|
|
|
|
|
|
The bill creates a
commission to use a competitive bid process for the operation of a
resort-style casino. Bidders will pay a $250,000 bidding fee to win the right
to be the applicant. The fiscal note assumes this will be credited to the
General Fund. The Gambling Control Board (GCB) will accept applications for a
casino license in either York County or Cumberland County for the winning
bidder as long as the voters of the municipality where the proposed casino
will be located have voted to approve a casino and the voters of the county
have not rejected a casino. |
|
The facility would
be taxed at the rate of 40% of net slot income and 16% of net table game
income. The bill would require this casino, beginning no sooner than 5 years
after operation of slot machines, to make capital improvements to the casino
using 3% to 4% of both net slot machine and net table game income or direct
those funds to the GCB. This fiscal note assumes that the facility will not
direct these funds to the GCB. This fiscal note assumes a total of 1,000 slot
machines and 24 table games, generating an estimated $28,893,809 annually in
Other Special Revenue Funds (OSRF) revenue. |
|
Each
non-refundable bid proposal will generate $250,000 in General Fund revenue.
The casino operator license is $50,000,000, with $15,000,000 going to the
General Fund and $35,000,000 going into an OSRF account within the GCB.
$30,000,000 from this license fee will be used to maintain the level of
revenue distributed to municipalities and counties receiving money from
either Oxford Casino or Hollywood Casino. This $30,000,000 will be
transferred to the Department of Transportation, Highway and Bridge Capital
Program if Oxford Casino and Hollywood Casino continue to operate and provide
revenue to host municipalities and counties. If either Oxford Casino or
Hollywood Casino ceases operations within 5 years of commencement of the new
casino, then distribution will be made from the OSRF account to compensate
host municipalities and counties until the entire $30,000,000 is distributed.
A one-time renewal fee of $250,000 will be due 20 years after this new casino
commences operations. The GCB will generate annual OSRF revenue of $102,400
from registration fees. Annual State costs associated with 5 inspectors, an
auditor and other related expenses are estimated to be $523,510. |
|
WhiteSand Gaming's
market feasibility study on expanded gaming in Maine estimated a 20%
reduction in revenue to Oxford Casino if a new southern Maine casino were to
open. This fiscal note assumes the same 20% reduction, resulting in an
estimated annual General Fund revenue loss of $347,495 and OSRF revenue loss
of $5,410,437. An assessment of the impact on revenues generated by Hollywood
Casino has not been done at this time. |
|
Under current law,
State revenue from both Oxford Casino and Hollywood Casino go to various
funds, but this bill directs all State revenue from these casinos to go to
the Gambling Control Board until a distribution of slot machine and table
game revenue is established by the Legislature. The new distribution is
required to be a uniform distribution of slot machine and table game revenue
for each casino, slot machine facility or gambling facility. This will reduce
General Fund revenue by an estimated $8,223,744 annually. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual |
|
Summary of Casino Revenue |
|
|
|
|
Estimate |
|
Gross Slot Income (total value of money, tokens,
credits and other value used to play slots) |
$659,190,000 |
|
Player Payback - Slot Income |
|
|
|
|
$591,293,430 |
|
Net Slot Income |
|
|
|
|
$67,896,570 |
|
Share of Net Slot Income for Distribution - 40% |
|
|
|
$27,158,628 |
|
Operator Share of Net Slot Income - 60% |
|
|
|
$40,737,942 |
|
Net Table Game Income |
|
|
|
|
$10,844,880 |
|
Share of Net Table Game Income for Distribution
- 16% |
|
|
$1,735,181 |
|
Operator Share of Net Table Game Income - 84% |
|
|
|
$9,109,699 |
|
|
|
|
|
|
|
|
State Revenues by Fund |
|
|
|
|
|
|
General Fund |
|
|
|
|
|
|
Oxford Casino revenue reduced |
|
|
|
|
($347,495) |
|
Oxford Casino revenue was GF, now OSR |
|
|
|
($1,389,981) |
|
Hollywood Casino revenue was GF, now OSR |
|
|
|
($6,833,763) |
|
Total General
Fund Revenue |
|
|
|
|
($8,571,239) |
|
Bidding Fee - assumes 2 bidders |
|
|
|
$500,000 (one-time) |
|
|
Casino Operator License |
|
|
|
$15,000,000 (one-time) |
|
|
|
|
|
|
|
|
|
Other Special Revenue Funds |
|
|
|
|
$28,893,809 |
|
Registration Fees |
|
|
|
|
$102,400 |
|
Oxford Casino revenue reduced |
|
|
|
|
($5,410,437) |
|
Oxford Casino revenue was GF, now OSR |
|
|
|
$1,389,981 |
|
Hollywood Casino revenue was GF, now OSR |
|
|
|
$6,833,763 |
|
Total Other Special Revenue Funds Revenue |
|
|
|
$31,809,516 |
|
Casino Operator License |
|
|
|
$35,000,000 (one-time) |
|
|
Renewal Fee - in 20 years |
|
|
|
$250,000 (one-time) |
|
|
|
|
|
|
|
|
|
Total Revenue All Funds |
|
|
|
|
$23,238,277 |
|
|
|
|
|
|
|
|
Summary of Expenditure Impacts to the State |
|
|
|
|
|
Other Special Revenue Funds |
|
|
|
|
|
|
-- Public
Safety |
|
|
|
|
$523,510 |
|
|
|
|
|
|
|