Odds improve for tribal racino with legislative panel's support

The odds for a tribal racino in Washington County improved considerably following a legislative committee's strong endorsement of the proposal. On May 4, the legislature's Legal and Veterans Affairs Committee voted 12-1 in favor of a bill to authorize a tribal commercial harness racing track and up to 1,500 slot machines in Washington County. It would also allow a federally recognized tribe to operate a high stakes beano facility on non-tribal land in Washington County.

On May 11, the committee reconsidered the legislation at a work session, since amendments have been made concerning the formula for the distribution of revenues, but it was expected that the committee would still give the bill the same endorsement. The legislature is expected to consider the bill sometime next week. At the committee's April 25 hearing on the bill, representatives from the group CasinosNO! and the Maine Department of Public Safety spoke in opposition to the measure. Following the committee's vote in favor of the bill, Dennis Bailey, executive director of CasinosNO!, said if the vote is upheld by the legislature, "Washington County, the poorest county in the state, will get even poorer."

Bailey commented, "Instead of listening to the people of Maine, including the people of Washington County, who have consistently rejected slot machines for any location other than existing racetracks, our elected officials are listening to quick buck artists and charlatans who claim that Maine can gamble its way to riches." In response, Rep. Fred Moore III of Pleasant Point, who is sponsoring the bill, asks, "Who is he referring to as a charlatan -- the horsemen, the tribe or the people of Washington County?"

Although Governor John Baldacci has indicated he does not favor any expansion of gambling in the state, he has not stated he would veto the bill. Noting that the governor has also said he would like to bring economic development to Washington County, Moore comments, "The only thing he's brought to Washington County is that which he's known best for."

According to Moore, the bill has bipartisan support among the legislative leadership. Support also has been received from the Washington County sheriff, the City of Calais, the Town of Baileyville, representatives from businesses and chambers of commerce in Washington County, Maine agricultural fairs, the Maine Harness Horsemen's Association and the Maine Breeders Association. He says the other tribes in the state are supportive of the proposal. The slot machine proceeds would be available to benefit all the tribes that are willing to participate "and the communities that surround those tribes," says Moore.

The bill has been amended in committee, with changes made in the distribution formula for the proceeds. The distribution mirrors the formula approved for the Bangor racino, except in a few instances. The amendments include reducing the percentage of slot machine income that goes to the slot machine operator from 61% to 59%. One percent would still go to the Washington County Development Authority and one percent to career and technical centers in Washington County, while two percent would go to the Off track Betting Stabilization Fund, as is the case for the Bangor racino. That amount had not been included in the original bill.

As originally proposed, two percent would still be allocated to fund scholarships at the University of Maine at Machias and one percent would be for scholarships at the Washington County Community
College.

Also, four percent would go to the Fund to Encourage Racing at Maine's Commercial Tracks, as is the case for the Bangor commercial track. That four percent would have gone to a tribal commercial track development fund under the original bill, but the tribal track would now be included in the distribution from the Fund to Encourage Racing at Maine's Commercial Tracks.

Another amendment states that if a new off track betting (OTB) facility is located within 50 miles of the tribal racino, it would be eligible for slot machine funds from the racino, although a commercial track would be able to object to having an OTB within its market area.

The bill does not include a requirement that a municipal referendum be held as a condition of licensing. However, the municipality would still have input with regard to license renewal.