Tribal racino battle heats up before election
The campaigns for and against the Passamaquoddy Tribe's proposed racino in Calais are finally heating up two weeks before the statewide election.
The campaigns for and against the Passamaquoddy Tribe's proposed racino in Calais are finally heating up two weeks before the statewide election. The racino referendum will be the lead-off question on the ballot for Maine voters on November 6, and supporters and opponents of the harness racing track with slot machines are now trading barbs back and forth.
The racino would give "people a selection for what they want to do with their own personal money," says Passamaquoddy Rep. Donald Soctomah. Supporters of the proposal hope it would draw some of the over a million and a half people who annually cross the border at Calais, which is the fifth busiest crossing between Canada and the U.S. Those people normally wouldn't be spending money in the area, so the racino would "not just be recirculating money" within Washington County, Soctomah notes.
Dennis Bailey of CasinosNo!, which is opposing the racino referendum, counters that gambling takes money from local economies that would have been spent on other goods and services. "The industry makes no product," he points out. While the owners of the facility may get rich, those who gamble at a racino will not, he says. "It won't make Washington County richer; it will make it poorer."
A market study conducted by Todd Gabe, an associate professor at the University of Maine, estimates that a racino in Calais could generate $12 million to $13 million annually in net slot machine revenue. Soctomah believes the projections are low, and he notes that Hollywood Slots in Bangor has brought in 20% to 30% more revenue than was projected. But Bailey, noting that $180 million would need to be spent at the slot machines annually to generate the estimated $12 million in net revenues, flatly comments, "I don't believe it."
The coalition favoring the referendum, Yes on Question 1, makes a point in its ads that the funds generated from the racino would support programs like the Agricultural Fair Support Fund and the Fund for a Healthy Maine. The breakdown for disbursement of 41% of the net revenue also includes 1% for the Washington County Development Authority; 1% to career and technical education centers in Washington County; 1% for scholarships at the Washington County Community College; and 2% for scholarships at the University of Maine at Machias. Using projections from the market study, 1% of the net revenues would amount to approximately $150,000 annually, according to Soctomah.
Bailey, though, says that of the 41% of the net revenue that would be shared among 12 different funds and programs, most of it would go to gambling interests. He points out that the amount of the racino revenue that would go to off-track betting parlors would be double the amount going to WCCC scholarships. "It's not the deal they're making it out to be," he says. While the bill for the Washington County racino was set up to be nearly identical to the legislation that was approved that allowed for Hollywood Slots in Bangor, Bailey says that supporters should have changed the bill more substantially to provide more of the funds to other interests.
Supporters of the racino have also argued that approval of the proposal is a matter of fairness, since Maine is allowing a racino in Bangor. "I do sympathize with the tribe and Washington County. They do need economic development," says Bailey. "But there's nothing fair about slot machines. They're devised to scam people and steal their money."
In its efforts to stop the spread of gambling in Maine, CasinosNo! has publicized a significant increase in crime during the first full year of operation of Hollywood Slots, but Soctomah observes that the police chief in Bangor reportedly has stated he didn't believe that the increase in crime was directly related to the racino. While acknowledging that the police chief may be right, Bailey says that no one knows for sure why the number of crimes increased. Noting that the over 20% jump in the crime rate was the highest increase for any city in Maine, he says that the reason should be determined "before they put another 1,500 slots in."
As for why the racino campaign has not attracted the statewide visibility that the tribal casino referendum did four years ago, Soctomah says the tribe "doesn't have a lot of money," and he notes that in 2003 both sides on the casino question spent about $10 million. Bailey wishes that CasinosNo! had not just focused on the casino question then but had spent more money in opposing the racino referendum question in 2003.
The Passamaquoddy Tribe is funding the campaign for passage of the racino referendum completely on its own. The tribe has spent about $300,000 on the campaign so far, according to Soctomah. CasinosNo! expects to spend perhaps $300,000 opposing the referendum question.
Bailey argues that the tribe might only make $500,000 annually, if it signs on a partner that has close to an even split of the proceeds with the tribe. "I don't believe the tribe will end up with any more than they are spending on the campaign."
Both sides of the issue maintain that their opponents are spreading incorrect information about the racino proposal. Soctomah says that the television ads by CasinosNo! uses "blatant lies" about the high-stakes bingo games that would be part of the racino complex. The ad states that the referendum would allow high-stakes beano games in any town in Washington County without the town's approval and without a local vote and that none of the revenue would go to the state or local town. According to state law, local approval would be needed, and the profits would be taxed by the state. The tribe also has to pay $50,000 to the state for a license to operate the high-stakes beano games. Noting that the tribe already has approval to conduct high-stakes bingo games, Soctomah says the Passamaquoddys would simply be moving the games from Indian Township, where the games were conducted until the past few years, to Calais. That part of the facility would employ 30 to 50 people, he says. "I think people should be offended" by what he calls lies in the CasinosNo! ads, Soctomah says.
"I'll stand behind our ads," says Bailey. Although one of CasinosNo!'s television ads was amended following complaints by racino supporters, Bailey says one of the ads by Yes on Question 1 was pulled by a Portland television channel.
Bailey's comment to voters is: "I wish these casinos would go away. I wish we could concentrate on real economic development for a change. We can't gamble on our future. We have to build our future."
Soctomah's message is: "I hope people take this opportunity to go and vote and support the tribe and this economic project for the whole county. The money's going to be staying in the area and recirculated to area businesses."