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127th MAINE LEGISLATURE |
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LD 1280 |
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LR 1572(03) |
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An Act To Provide
Income Tax Relief by Expanding Gaming Opportunities |
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Fiscal Note for
Bill as Amended by Committee Amendment " " |
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Committee: Veterans and Legal Affairs |
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Fiscal Note Required: Yes |
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| Fiscal Note |
Contingent current biennium referendum costs - General
Fund
Contingent current biennium cost increase - Other Special Revenue
Funds
Contingent current biennium revenue decrease - General Fund
Contingent current biennium revenue increase - Other Special Revenue Funds |
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FY 2015-16 |
FY 2016-17 |
Projections FY 2017-18 |
Projections FY 2018-19 |
| Appropriations/Allocations |
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Other Special Revenue Funds |
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$500 |
$500 |
$500 |
$500 |
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| Referendum
Costs |
Month/Year |
Election Type |
Question |
Length |
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Nov-15 |
General |
Referendum |
Standard |
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The Secretary of
State's budget includes sufficient funds to accommodate one ballot of average
length for the general election in November.
If the number or size of the referendum questions requires production
and delivery of a second ballot, an additional appropriation of $107,250 may
be required. |
| Fiscal Detail
and Notes |
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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. |
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The bill creates
a commission to use a competitive bid process to award the privilege to apply
for the operation of a resort-style casino. 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 (GCB)
will accept applications for a casino license in either York County or
Cumberland County from the winning bidder as long as the voters of the
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. |
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The facility
would be taxed at the rate of 40% 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 GCB. This fiscal note assumes that the facility will not
direct these funds to the GCB. This fiscal note assumes a total of 1,000 slot
machines and 24 table games, generating an estimated annual revenue of
$27,158,628 to the GCB and $1,735,181 to the Fund to Reform Veterans
Services. |
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Each
non-refundable bid proposal will generate $250,000 in General Fund revenue.
The casino operator license is $10,000,000 in OSRF revenue in the first year
of the casino's operation. The $10,000,000 will be used to provide revenue to
host municipalities and counties receiving distributions from either
Hollywood Casino or Oxford Casino. $250,000 in OSRF revenue will be generated
in the fifth year of the casino's operation from the renewal fee for the
casino operator license. $102,400,will be generated annually from the
registration fees of $100 per slot machine and per table game. Annual State costs associated with 5
inspectors, an auditor and other related expenses are estimated to be
$523,510. |
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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
open. 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. |
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Under current
law, State revenue from both Oxford Casino and Hollywood Casino go to various
funds, but this bill directs all State revenue from these casinos to go to
the GCB until a distribution of slot machine and table game revenue is
established by the Legislature. The new distribution is required to be a
uniform distribution of slot machine and table game revenue to each casino,
slot machine facility or gambling facility. This results in an estimated
annual General Fund revenue decrease of $8,223,744 and an annual OSRF revenue
increase of $8,223,744. |
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Annual |
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Summary of Casino Revenue |
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Estimate |
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Gross Slot Income (total value of money,
tokens, credits and other value used to play slots) |
$659,190,000 |
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Player Payback - Slot Income |
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$591,293,430 |
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Net Slot Income |
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$67,896,570 |
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Share of Net Slot Income for Distribution - 40% |
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$27,158,628 |
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Operator Share of Net Slot Income - 60% |
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$40,737,942 |
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Net Table Game Income |
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$10,844,880 |
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Share of Net Table Game Income for Distribution
- 16% |
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$1,735,181 |
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Operator Share of Net Table Game Income - 84% |
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$9,109,699 |
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State Revenues by Fund |
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General Fund |
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Oxford Casino revenue reduced |
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($347,495) |
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Oxford Casino revenue was GF, now OSR |
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($1,389,981) |
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Hollywood Casino revenue was GF, now OSR |
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($6,833,763) |
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Total General
Fund Revenue |
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($8,571,239) |
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Bidding Fee - assumes 2 bidders |
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$500,000 (one-time) |
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Other Special Revenue Funds |
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Gambling Control Board - Net Slot Income |
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$27,158,628 |
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Fund to Reform Veterans Services - Net Table
Game Income |
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$1,735,181 |
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Gambling Control Board - Annual Registration
Fees |
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$102,400 |
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Oxford Casino revenue reduced |
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($5,410,437) |
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Oxford Casino revenue was GF, now OSR |
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$1,389,981 |
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Hollywood Casino revenue was GF, now OSR |
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$6,833,763 |
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Total Other Special Revenue Funds Revenue |
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$31,809,516 |
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Casino Operator License - 1st year only |
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$10,000,000 (one-time) |
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License Renewal Fee - due after 5 years |
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$250,000 (one-time) |
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Total Revenue All Funds |
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$23,238,277 |
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Summary of State Expenditures |
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Public Safety - Other Special Revenue Funds |
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$523,510 |
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