| 125th MAINE LEGISLATURE | ||||||
| LD 985 | LR 2075(02) | |||||
| An Act Regarding Establishing a Slot Machine Facility | ||||||
| Fiscal Note for Bill as Amended by Committee Amendment " " | ||||||
| Committee: Veterans and Legal Affairs | ||||||
| Fiscal Note Required: Yes | ||||||
| Fiscal Note | ||||||
| Contingent future biennium cost increase - General Fund Contingent future biennium cost increase - Other Special Revenue Funds Contingent future biennium revenue increase - General Fund Contingent future biennium revenue increase - Other Special Revenue Funds |
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| Referendum Costs | Month/Year | Election Type | Question | Length | ||
| Nov-11 | General | Initiated Bill | 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 | ||||||
| This initiated bill would allow the Gambling Control Board to accept applications for licenses to operate additional slot machine facilities in Maine. Current law allows for a total of 1500 slot machines to be operated in the state. The existing facility in Bangor has already been licensed to operate the entire 1500, effectively preventing the establishment of additional facilities. Although this proposed legislation would open the licensing opportunity to multiple facilities with up to 1500 slot machines per facility, specific limiting criteria in the proposed language would make it highly unlikely that more than one new facility would be possible. | ||||||
| Presented below is an estimate of the potential revenues that may be generated from one new slot machine facility and the subsequent distribution of those revenues. This fiscal note assumes one new facility would be established with 1,000 slot machines that would generate annual revenue of $6,534,000 for the State's General Fund and $20,908,800 for various other funds. The General Fund would also receive license fees of $414,500 in the first year and $188,250 for license renewals in subsequent years. Annual state costs associated with a Deputy Director, Inspectors, State Police Detective, Auditor II, contracts for monitoring services and other related expenses are estimated to be $1,123,661. This analysis assumes no significant effect on revenue generated by the licensed racino facility in Bangor. If there is an appreciable reduction in racino revenue, there will be a reduction in the amounts distributed from that facility. The tax structure at the new facility would be 1% of gross slot machine income and 40% of net slot machine income. | ||||||
| Annual | ||||||
| Summary of Casino Revenue | Estimate | |||||
| Gross Slot Income (total value of money, tokens, credits, other value used to play a slot machine) | $653,400,000 | |||||
| Player Payback - Slot Income | $594,594,000 | |||||
| General Fund - 1% of Gross Slot Income | $6,534,000 | |||||
| Net Slot Income | $52,272,000 | |||||
| State Share of Net Income - 40% | $20,908,800 | |||||
| Operator Share of Net Income - 60% | $31,363,200 | |||||
| Annual | ||||||
| State Revenues by Fund | Estimate | |||||
| General Fund | ||||||
| From Slot Machines | $6,534,000 | |||||
| From Annual License Fees (1st year will be $414,500) | $188,250 | |||||
| Total General Fund Revenue | $6,722,250 | |||||
| Other Special Revenue Funds | ||||||
| Androscoggin River Minimum Water Quality Standards | $1,568,160 | |||||
| Downtown Revitalization - Statewide | $1,411,344 | |||||
| Downtown Revitalization - Host Municipality | $156,816 | |||||
| Grants and Low-Interest Loans to Upgrade and Convert to Renewable Energy - Efficiency Maine | $1,411,344 | |||||
| Grants and Low-Interest Loans to Upgrade and Convert to Renewable Energy - Host Municipality | $156,816 | |||||
| Counties Other Than County in Which Host Municipality is Located | $1,568,160 | |||||
| Maintenance, Repairs and Improvements to Ports and Fisheries | $1,568,160 | |||||
| Support Collector Roads and East-West Highway | $1,568,160 | |||||
| Capital Improvements to Rail Service | $1,568,160 | |||||
| Capital Improvements to Support Rail Service to Bethel | $1,045,440 | |||||
| Host Municipality | $1,045,440 | |||||
| Municipality Closest to Host Municipality With Population of at Least 20,000 | $522,720 | |||||
| County in Which Host Municipality is Located | $522,720 | |||||
| Capital Improvements to the University of Maine, Maine Community Colleges and/or Maine Mariti | $522,720 | |||||
| Organizations Licensed Under MRSA Title 17, §332 | $522,720 | |||||
| Agricultural Fair Support Fund | $522,720 | |||||
| Lewiston Auburn Economic Growth Council | $522,720 | |||||
| Maine Scholars Program | $522,720 | |||||
| Maine Office of Tourism | $522,720 | |||||
| Maine State Grant Program | $522,720 | |||||
| Home-Based Care for the Elderly | $522,720 | |||||
| Maine Technology Institute | $522,720 | |||||
| Organizations Licensed Under MRSA Title 17, §314 | $261,360 | |||||
| Fund to Supplement Harness Racing Purses | $261,360 | |||||
| Host Municipality - Infrastructure Improvements | $261,360 | |||||
| Each Humane Society Within the State | $261,360 | |||||
| Riverfront Bike Path Connecting Lewiston/Auburn to Brunswick | $261,360 | |||||
| Meals on Wheels | $261,360 | |||||
| Cities of Lewiston and Auburn for Joint Expenses | $261,360 | |||||
| Municipalities Adjacent to Host Municipality | $261,360 | |||||
| Total Other Special Revenue Funds Revenue | $20,908,800 | |||||
| Total Revenue All Funds | $27,631,050 | |||||
| Summary of Expenditure Impacts to the State | ||||||
| General Fund | ||||||
| - Public Safety | $1,123,661 | |||||