|
|
|
|
|
|
|
|
128th MAINE LEGISLATURE |
|
|
LD 719 |
|
LR 2245(01) |
|
|
|
An Act To Allow
Slot Machines or a Casino in York County |
|
Fiscal Note for
Initiated Bill |
|
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 citizen
initiative allows the Gambling Control Board, within the Department of Public
Safety, to accept an application for a slot machine operator license or
casino operator license for a facility in York County, so long as the
applicant, in 2003, owned at least 51% of an entity licensed to operate a
commercial track in Penobscot County and conducted a certain number of
harness races in 2002. The municipality where the proposed slot machine
facility or casino will be located must vote to approve its operation within
the municipality. This initiative increases the total number of slot machines
that may be registered in the State by 1,500. |
|
This fiscal note
assumes that one applicant will apply for a casino operator license and
operate 1,000 slot machines and 24 table games. The casino would be taxed at
the rate of 1% of gross slot machine income, 39% of net slot machine income
and 16% of net table game income. The facility would generate estimated
annual General Fund revenue of $7,204,947 and estimated annual Other Special Revenue Funds revenue
of $25,130,957. |
|
The applicant
will also be required to pay a one-time non-refundable privilege fee and a
casino operator license fee that will generate $250,000 and $5,000,000,
respectively, in General Fund revenue. The applicant will also be required to pay an initial
registration fee for each slot machine and table game, generating $2,500,000
in Other Special Revenue Funds revenue. Renewal fees for the casino operator
license, slot machines and table games will generate an estimated annual
$206,400 in Other Special Revenue Funds revenue.
Annual state costs associated with 5
positions and other related expenses are estimated to be $955,017 |
|
A 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
state General Fund revenue loss of $381,117 and Other Special Revenue Funds revenue loss of $5,984,282. The impact on
revenues generated by Hollywood Casino is not expected to be significant. |
|
|
|
|
|
|
Annual |
|
Summary of Casino Revenue |
|
|
|
|
Estimate |
|
Gross Slot Income |
|
|
|
|
$659,190,000 |
|
Player's Share |
|
|
|
|
$591,293,430 |
|
1% of Gross Slot Income |
|
|
|
|
$6,591,900 |
|
Net Slot Machine Income |
|
|
|
|
$61,304,670 |
|
Licensee's Share of Net Slot Machine Income
(61%) |
|
|
$37,395,849 |
|
State's Share of Net Slot Machine Income (39%) |
|
|
|
$23,908,821 |
|
Net Table Game Income |
|
|
|
|
$10,844,880 |
|
Licensee's Share of Net Table Game Income
(84%) |
|
|
$9,109,699 |
|
State's Share of Net Table Game Income (16%) |
|
|
|
$1,735,181 |
|
|
|
|
|
|
|
|
State Revenues by Fund |
|
|
|
|
|
|
General Fund |
|
|
|
|
|
|
1% of Gross Slot Income |
|
|
|
|
$6,591,900 |
|
General Fund |
|
|
|
|
$613,047 |
|
Subtotal of General Fund Revenue Generated by Facility |
|
|
$7,204,947 |
|
Loss of General Fund Revenue - Oxford Casino |
|
|
|
($381,117) |
|
Total General Fund Revenue |
|
|
|
$6,823,830 |
|
Casino Operator License |
|
|
$5,000,000 (one-time) |
|
|
|
Non-Refundable Privilege Fee |
|
|
$250,000 (one-time) |
|
|
|
|
|
|
|
|
|
|
Other Special Revenue Funds |
|
|
|
|
|
|
Gambling Control Board - 3% of Net Table Game
Income |
|
|
$325,346 |
|
Harness Racing Purses |
|
|
|
|
$6,130,467 |
|
Sire Stakes Fund |
|
|
|
|
$1,839,140 |
|
Agricultural Fair Support Fund |
|
|
|
|
$1,839,140 |
|
Department of Education (K-12) |
|
|
|
|
$7,106,506 |
|
University of Maine Scholarship Fund and Maine
Maritime Academy |
|
$1,226,094 |
|
Maine Community College System |
|
|
|
$613,047 |
|
Fund to Encourage Racing at Maine's Commercial
Tracks * |
|
|
$1,226,093 |
|
Municipalities (used to reduce property taxes) |
|
|
|
$1,839,140 |
|
Tribal Governments of the Penobscot Nation and
Passamaquoddy Tribe |
|
$613,047 |
|
Drug Education Initiatives |
|
|
|
|
$613,047 |
|
DHHS - to supplement programs at the Office of
Aging and Disability Services |
|
$613,047 |
|
Municipality where slot machines are located |
|
|
|
$829,945 |
|
Gambling Addiction Prevention and Treatment
Fund ** |
|
|
$100,000 |
|
Coordinated Veterans Assistance Fund |
|
|
|
$216,898 |
|
Subtotal of Other Special Revenue Funds Generated by Facility |
|
$25,130,957 |
|
Gambling Control Board - Annual Renewal Fees |
|
|
|
$206,400 |
|
Loss of Other Special Revenue Funds Revenue -
Oxford Casino |
|
|
($5,984,282) |
|
Total Other Special Revenue Funds Revenue |
|
|
$19,353,075 |
|
Table Games - Initial Gaming Table Fee |
|
$2,400,000 (one-time) |
|
|
|
Slot Machines - Initial Registration Fee |
|
$100,000 (one-time) |
|
|
|
|
|
|
|
|
|
|
Total Revenue - All Funds |
|
|
|
|
$26,176,905 |
|
|
|
|
|
|
|
|
*If all
commercial tracks obtain a license to operate slot machines, then the amount
distributed from Hollywood Casino and this casino to the Fund to Encourage
Racing at Maine's Commercial Tracks would then be deposited into the General
Fund. |
|
** Fiscal years
ending June 30, 2018 and June 30, 2019 - $50,000, thereafter - $100,000 |
|
|
|
|
|
|
|
|
|
Summary of Expenditure Impacts to the State |
|
|
|
|
|
Gambling Control Board - General Fund |
|
|
|
$429,947 |
|
Gambling Control Board - Other Special Revenue
Funds |
|
|
$525,070 |
|
Total Expenditures - All Funds |
|
|
|
$955,017 |
|
|
|
|
|
|
|