121st Maine Legislature
		Office of Fiscal and Program Review
		LD 1361
		An Act To Support Harness Horse Racing in Maine, Equine Agriculture in Maine, Maine Agricultural Fairs and the General Fund of the State
		LR 0995(02)
		Fiscal Note for Bill as Amended by Committee Amendment " "
		Committee: Legal and Veterans Affairs
		Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2003-04	2004-05	2005-06	2006-07
Net Cost (Savings)
	General Fund		($4,287,035)	($13,281,319)	($13,601,990)	($13,860,394)
Appropriations/Allocations
	General Fund		$3,160,650	$8,078,481	$8,219,006	$8,362,342
	Other Special Revenue Funds		$11,413,508	$34,378,036	$35,065,597	$35,766,909
Revenue
	General Fund		$7,447,685	$21,359,800	$21,820,996	$22,222,736
	Other Special Revenue Funds		$11,413,508	$34,378,036	$35,065,597	$35,766,909
Correctional and Judicial Impact Statements
	Establishes new Class C and D crimes; increases correctional and judicial costs
Fiscal Detail and Notes
	This bill specifies that at least 85% of the gross terminal revenue must be paid back to users of the video gaming terminals.  Using current industry standards it is expected that 90% of the gross terminal revenue will be returned to the players. The remaining 10% of revenue collected by licensed video lottery terminal operators will be distributed as follows: 46% is kept by the licensee; 28% goes to the General Fund; 10% goes for pari-mutuel purse supplements; 5% goes to commercial race tracks; 3% goes to the Sires Stakes Fund; 4% goes to the Agricultural Fair Support Fund; 3% goes to the municipalities which host licensed video lottery terminal operators; and 1% goes to the Department of Human Services for addictive gambling treatment and prevention.
	In addition, the shift of expenditures from Lottery ticket sales and Pari-mutuel wagering to video gaming terminals will reduce both General Fund and dedicated revenue from these sources.
	Presented below is an estimate of the potential revenue and subsequent distribution that may be generated by licensed video lottery terminal operators assuming that there will be 11 licensed video terminal operators and that there will be a total of 2,200 video terminals authorized by the provisions of this bill. This table also includes a breakdown of the General Fund and Other Special Revenue Funds impacts.
	Summary of Gaming Revenue		2003-04	2004-05	2005-06	2006-07
	Total Gaming Revenue		$466,543,000	$1,405,250,000	$1,433,355,000	$1,462,022,100
	90% Payback		$419,888,700	$1,264,725,000	$1,290,019,500	$1,315,819,890
	Gross Terminal Income		$46,654,300	$140,525,000	$143,335,500	$146,202,210
	46% of Gross Terminal Income to Licensee		$21,460,978	$64,641,500	$65,934,330	$67,253,017
	Net State Share		$25,193,322	$75,883,500	$77,401,170	$78,949,193
	Required Distribution of Gross Terminal Income (54% State Share)
	General Fund		$13,063,204	$39,347,000	$40,133,940	$40,936,619
	Purse Supplements		$4,665,430	$14,052,500	$14,333,550	$14,620,221
	Commercial Tracks		$2,332,715	$7,026,250	$7,166,775	$7,310,111
	Agricultural Fair Support Fund		$1,866,172	$5,621,000	$5,733,420	$5,848,088
	Sires Stakes Fund		$1,399,629	$4,215,750	$4,300,065	$4,386,066
	Host Municipalities		$1,399,629	$4,215,750	$4,300,065	$4,386,066
	Addictive Gambling Program		$466,543	$1,405,250	$1,433,355	$1,462,022
	Other Revenue Impacts:
	License fees to the General Fund		$34,000	$0	$34,000	$0
	Reimbursements to the General Fund		$322,231	$0	$0	$0
	Impact on Lottery - Diverted "Gaming/Gambling" Revenue to Video Terminals
	5% of Gross Revenue		$23,327,150	$70,262,500	$71,667,750	$73,101,105
	25% General Fund Transfer		($5,831,788)	($17,565,625)	($17,916,938)	($18,275,276)
	Impact on Harness Racing - Diverted "Gaming/Gambling" Revenue to Video Terminals
	2% of Gross Revenue		$9,330,860	$28,105,000	$28,667,100	$29,240,442
	Loss of Revenue from diverted revenue by Fund/Account:
	General Fund		($139,963)	($421,575)	($430,007)	($438,607)
	Subtotal General Fund Revenue		($5,971,750)	($17,987,200)	($18,346,944)	($18,713,883)
	Other Special Revenue Funds
	- Purse Supplements		($167,955)	($505,890)	($516,008)	($526,328)
	- Sire Stakes Fund		($92,376)	($278,240)	($283,804)	($289,480)
	- Agricultural Fair Support Fund		($107,305)	($323,208)	($329,672)	($336,265)
	- Commercial Racetracks		($115,703)	($348,502)	($355,472)	($362,581)
	- Promotional Board		($233,272)	($702,625)	($716,678)	($731,011)
	Subtotal Dedicated Revenue		($716,610)	($2,158,464)	($2,201,633)	($2,245,666)
	Summary of Expenditure Impacts
	General Fund:
	- Administrative and Financial Services		$2,532,854	$7,287,768	$7,428,293	$7,571,629
	- Attorney General		$52,357	$67,143	$67,143	$67,143
	- Public Safety		$575,439	$723,570	$723,570	$723,570
	General Fund Total		$3,160,650	$8,078,481	$8,219,006	$8,362,342
	Other Special Revenue Funds:
	- Agriculture, Food and Rural Resources		$9,547,336	$28,757,036	$29,332,177	$29,918,820
	- Human Services		$466,543	$1,405,250	$1,433,355	$1,462,022
	- Treasurer		$1,399,629	$4,215,750	$4,300,065	$4,386,066
	Other Special Revenue Total		$11,413,508	$34,378,036	$35,065,597	$35,766,909
	Summary of Revenue Impacts
	General Fund:
	- License fees		$34,000	$0	$34,000	$0
	- Reimbursements		$322,231	$0	$0	$0
	- Proceeds From Video Terminals		$13,063,204	$39,347,000	$40,133,940	$40,936,619
	- Diverted Lottery Revenue		($5,831,788)	($17,565,625)	($17,916,938)	($18,275,276)
	- Diverted Pari-mutuel Revenue		($139,963)	($421,575)	($430,007)	($438,607)
	General Fund Total		$7,447,685	$21,359,800	$21,820,996	$22,222,736
	Other Special Revenue Funds:
	- Agriculture, Food and Rural Resources		$9,547,336	$28,757,036	$29,332,177	$29,918,820
	- Human Services		$466,543	$1,405,250	$1,433,355	$1,462,022
	- Treasurer		$1,399,629	$4,215,750	$4,300,065	$4,386,066
	Other Special Revenue Total		$11,413,508	$34,378,036	$35,065,597	$35,766,909