125th MAINE LEGISLATURE
		LD 1203		LR 2103(02)
	An Act To Amend the Laws Governing the Deadline and Conditions for Municipal Approval of a Second Racino and To Allow a Tribal Racino in Washington County
	Fiscal Note for Bill as Amended by Committee Amendment "   "
	Committee: Veterans and Legal Affairs
	Fiscal Note Required: Yes
Fiscal Note
Contingent current biennium cost increase - General Fund Contingent current biennium cost increase - Other Special Revenue Funds Contingent biennium revenue increase - General Fund Contingent biennium revenue increase - Other Special Revenue Funds
Fiscal Detail and Notes
	The impact of this initiated bill is contingent on approval by the voters at a statewide referendum.  It would allow the Gambling Control Board to accept applications from federally-recognized Indian tribes located in Maine to operate a slot machine facility in Maine if the tribe owns and operates a commercial race track.  It also expands the allowable distance a commercial track eligible for slots can be from a pre-existing commercial track and extends the deadline for municipal approval of the facility.  Current law allows a total of 1,500 slot machines to be operated in the state.  The existing facility in Bangor has already been licensed to operate the entire 1,500, effectively preventing the establishment of additional facilities.  This proposed legislation allows an additional 1,500 slot machines to be operated at each facility licensed by the Gambling Control Board.
	Presented below is an estimate of the potential revenues that may be generated from additional slot machine facilities and the subsequent distribution of those revenues.  This fiscal note assumes there would be two new facilities established with a total of 2,000 additional slot machines that would generate annual revenue of $34,138,824 for the State's General Fund and $19,701,336 for various other funds.  The General Fund would also receive license fees of $564,500 in the first year and $213,250 for license renewals in subsequent years.  Annual state costs associated with Inspectors, State Police Detectives, Auditor II, contracts for monitoring services and other related expenses are estimated to be $1,897,471.  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 facilities would be consistent with the facility in Bangor, with 1% of gross slot machine income and 39% of net slot machine income going to the state.
						Annual
	Summary of Racino Revenue					Estimate
	Gross Slot Income (total value of money, tokens, credits, other value used to play a slot machine)					$1,306,800,000
	Player Payback  - Slot Income					$1,189,188,000
	General Fund - 1% of Gross Slot Income					$13,068,000
	Net Slot Income					$104,544,000
	State Share of Net Income - 39%					$40,772,160
	Operator Share of Net Income - 61%					$63,771,840
						Annual
	State Revenues by Fund					Estimate
	General Fund
	From Slot Machines1					$34,138,824
	From Annual License Fees (1st year will be $564,500)					$213,250
	Total General Fund Revenue					$34,352,074
	Other Special Revenue Funds
	Purse Supplements					$10,454,400
	Sire Stakes Fund					$3,136,320
	Fund to Encourage Racing at Commercial Tracks1					($2,252,904)
	Fund to Stabilize Off-Track Betting					$1,045,440
	Agricultural Fair Support Fund					$3,136,320
	University of Maine Scholarship Fund					$2,090,880
	Maine Community College System Scholarships					$1,045,440
	Resident Municipalities					$1,045,440
	Total Other Special Revenue Funds Revenue					$19,701,336
	Total Revenue All Funds					$54,053,410
	Summary of Expenditure Impacts to the State
	General Fund
	- Public Safety					$1,897,471
	1  Under current statute, 4% is credited as dedicated revenue to the Fund to Encourage Racing at Maine's Commercial Tracks.  This 4% payment is terminated when all commercial tracks have obtained a license to operate slot machines.  Although current law does not specify where this payment would then be credited, it is assumed it would be credited to the General Fund and is included above as General Fund Revenue from Slot Machines.