Before the first slot machine flashes and chimes in Bangor,
the state must create a new arm of government.
The governor must appoint a five-member board to oversee
regulation of the slot machines.
Employees must be hired to check fingerprints of employees
and monitor the computer system that tracks wagers and payouts.
Office space must be found for the workers in charge of
regulating the state's newest form of gambling.
A voter-approved law legalizing slot machines at commercial
tracks has been revised and finalized by the Legislature, but the actions
this week left Penn National Gaming, the likely operator of the slots, questioning
whether to pursue its plan to create a racino in Bangor.
One change made by legislators would reduce the amount
of money Penn National would collect from slot machines at Bangor Raceway.
Under the referendum approved by voters last November,
Penn National would have collected 7.5 percent of the estimated $825 million
per year that people are expected to wager on slots. Under the modified law,
which Gov. John Baldacci intends to sign within the week, the company would
collect 6.1 percent of the so-called handle. If wagering estimates are accurate,
the change would cost the company more than $11 million a year.
The company is reviewing all of its options, including
selling its interest in the company that conducts harness racing at the Bangor-owned
track, said Penn National spokesman Eric Schippers.
"This will have, if we move forward with this project,
a dramatic impact on what we had envisioned for this project. The amount
of capital investment, the amount of jobs that would be created - there are
consequences to tax rates at this level, on these types of small gaming markets,"
he said.
The Public Safety Department and Maine Harness Racing Commission
are moving forward as though the company will continue pressing for slots.
The racing commission was given regulatory power over slots
through the state referendum question. But a bill proposed by Baldacci and
approved by legislators gives responsibility to the state's Department of
Public Safety.
The revised law also sets up a five-member Gambling Control
Board within the department.
The governor would appoint the five members, to be approved
by the state Senate. Appointees would serve three-year terms.
At least four of the members have to have a background
in corporate finance, economics, law, accounting, law enforcement, computer
science or the gambling industry. One member must have experience in the
harness-racing industry.
The board would hire an executive director, who would hire
a staff.
The law will not take effect until 90 days after the Legislature
adjourns, but Public Safety Commissioner Michael Cantara said the department
will start advertising for staff members and identifying candidates for the
executive director's job.
The department will also look for office space and equipment,
possibly for offices in Augusta and Bangor, he said.
Once up and operating, the gambling control board will
set policies and regulations for the use, operation and monitoring of slot
machines.
The department will investigate the suitability of any
applicants who want to operate slot machines in Bangor, Cantara said.
Henry Jackson, executive director of the racing commission,
said his office will share records it has to help state police with their
investigation.
The commission will continue to investigate the moral and
financial suitability of Bangor Historic Track/Penn National to conduct harness
racing in Maine. A full license will be awarded following successful completion
of the background check, Jackson said. The racing license is a prerequisite
to a slot license.
Staff Writer Grace Murphy can be contacted at 791-6383
or at: gmurphy@pressherald.com
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