|
|
|
|
|
|
|
|
127th MAINE LEGISLATURE |
|
|
LD 1280 |
|
LR 1572(02) |
|
|
|
An Act To Provide
Income Tax Relief by Expanding Gaming Opportunities |
|
Fiscal Note for
Bill as Amended by Committee Amendment " " |
|
Committee: Veterans and Legal Affairs |
|
Fiscal Note Required: Yes |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fiscal Note |
|
|
|
|
|
|
|
Contingent current biennium referendum costs - General
Fund
Contingent future biennium cost increase - Other Special Revenue
Funds
Contingent current biennium revenue increase - General Fund
Contingent current biennium revenue increase - Other Special Revenue Funds |
|
|
|
|
|
|
|
|
|
|
FY 2015-16 |
FY 2016-17 |
Projections FY 2017-18 |
Projections FY 2018-19 |
| Appropriations/Allocations |
|
|
|
|
|
|
Other Special Revenue Funds |
|
$500 |
$500 |
$500 |
$500 |
|
|
|
|
|
|
|
| Fiscal Detail
and Notes |
|
|
|
|
|
|
If York and
Washington counties choose to hold referendums during the state primary
election in June 2016, the Department of Secretary of State would need a
General Fund appropriation of $11,772 for ballot printing costs and postage. If the counties choose to hold referendums
during the general election in November 2016, the Department of Secretary of
State would need a General Fund appropriation of $14,464 for ballot printing
costs and postage only if the questions require printing a separate ballot. |
|
The bill
establishes the Fund to Reform Veterans Services in the Department of
Defense, Veterans and Emergency Services with a base Other Special Revenue
Funds (OSRF) allocation of $500 beginning in fiscal year 2015-16 in order to
allow the department to spend any monies received. |
|
The bill creates
a commission to use a competitive bid process to award the privilege to apply
for a casino to a single applicant. Bidders will pay a $250,000 bidding fee
to win the right to be the applicant. The fiscal note assumes this will be
credited to the General Fund. The Gambling Control Board will accept an
application for a casino license in either York County or Cumberland County
from the winning bidder as long as the voters of the county and municipality
where the proposed casino will be located have voted to approve a casino.
Only one casino, in either York or Cumberland County, may be licensed. |
|
The facility
would be taxed at the rate of 46% of net slot income and 16% of net table
game income. The bill requires a casino, beginning no sooner than 5 years
after operation of slot machines, to make capital improvements to the casino
using 3% to 4% of both net slot machine and net table game income or direct
those funds to the Gambling Control Board. This fiscal note assumes that the
facility will not direct these funds to the Gambling Control Board. This
fiscal note assumes a total of 1,000 slot machines and 24 table games,
generating an estimated annual revenue of $31,709,674 in OSRF revenue and
$1,257,931 in General Fund revenue. |
|
Each
non-refundable bid proposal will generate $250,000 in General Fund revenue.
The casino operator license is $25,000,000, with $5,000,000 going to the
General Fund and $20,000,000 going into an OSRF account within the Gambling
Control Board. $102,400 will be generated annually from registration fees of
$100 per slot machine and per table game. The $20,000,000 will remain in the
OSRF account for 5 years and then be transferred to the Department of
Transportation, Highway and Bridge Capital Program if Oxford Casino and
Hollywood Casino continue to operate and provide revenue to host
municipalities and counties. If either ceases to operate, then distribution
will be made from the OSRF account to compensate municpalities and counties,
with the distributions lasting 5 years. Annual state costs associated with 5
inspectors, an auditor and other related expenses are estimated to be $523,510. |
|
WhiteSand
Gaming's 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
opened. This fiscal note assumes the same 20% reduction, resulting in an
estimated annual General Fund revenue loss of $347,495 and OSRF revenue loss
of $5,410,437. An assessment of the impact on revenues generated by Hollywood
Casino has not been done at this time. |
|
|
|
|
|
|
Annual |
|
Summary of Casino Revenue |
|
|
|
|
Estimate |
|
Gross Slot Income (total value of money,
tokens, credits and other value used to play slots) |
$659,190,000 |
|
Player Payback - Slot Income |
|
|
|
|
$591,293,430 |
|
Net Slot Income |
|
|
|
|
$67,896,570 |
|
Share of Net Slot Income for Distribution - 46% |
|
|
|
$31,232,422 |
|
Operator Share of Net Slot Income - 54% |
|
|
|
$36,664,148 |
|
Net Table Game Income |
|
|
|
|
$10,844,880 |
|
Share of Net Table Game Income for Distribution
- 16% |
|
|
$1,735,181 |
|
Operator Share of Net Table Game Income - 84% |
|
|
|
$9,109,699 |
|
|
|
|
|
|
|
|
State Revenues by Fund |
|
|
|
|
|
|
General Fund |
|
|
|
|
$1,257,931 |
|
Loss of General Fund Revenue - Oxford Casino |
|
|
|
($347,495) |
|
Total General
Fund Revenue |
|
|
|
|
$910,436 |
|
Casino Operator License |
|
|
|
$5,000,000 (one-time) |
|
|
Bidding Fee - assumes 2 bidders |
|
|
|
$500,000 (one-time) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Special Revenue Funds |
|
|
|
|
|
|
Gambling Control Board - Annual Registration
Fees |
|
|
$102,400 |
|
Department of Transportation Highway and Bridge
Capital Program |
|
$13,579,314 |
|
Harness Racing Purses |
|
|
|
|
$4,073,794 |
|
Fund to Reform Veterans Services |
|
|
|
$5,808,975 |
|
County Where Casino is Located |
|
|
|
|
$1,357,931 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual |
|
|
|
|
|
|
Estimate |
|
Sire Stakes Fund |
|
|
|
|
$1,018,449 |
|
Agricultural Fair Support Fund |
|
|
|
|
$1,018,449 |
|
Fund to Stabilize Off-track Betting |
|
|
|
$678,966 |
|
Municipality Where Casino is Located |
|
|
|
$678,966 |
|
Municipality or Municipalities Abutting Casino
Municipality |
|
|
$678,966 |
|
Oxford County |
|
|
|
|
$678,966 |
|
Penobscot County |
|
|
|
|
$678,966 |
|
City of Bangor |
|
|
|
|
$678,966 |
|
Town of Oxford |
|
|
|
|
$678,966 |
|
Gambling Addiction Prevention and Treatment
Fund |
|
|
$100,000 |
|
Loss of Other Special Revenue Funds Revenue -
Oxford Casino |
|
|
($5,410,437) |
|
Total Other Special Revenue Funds Revenue |
|
|
|
$26,401,637 |
|
Casino Operator License |
|
|
|
$20,000,000 (one-time) |
|
|
|
|
|
|
|
|
|
Total Revenue All Funds |
|
|
|
|
$27,312,073 |
|
|
|
|
|
|
|
|
Summary of Expenditure Impacts to the State |
|
|
|
|
|
General Fund |
|
|
|
|
|
|
-- Public Safety |
|
|
|
|
$421,110 |
|
Other Special Revenue Funds |
|
|
|
|
|
|
-- Public Safety |
|
|
|
|
$102,400 |
|
|
|
|
|
|
|
|
Total Expenditures |
|
|
|
|
$523,510 |
|
|
|
|
|
|
|