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127th MAINE LEGISLATURE |
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LD 1280 |
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LR 1572(20) |
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An Act To Provide
Income Tax Relief by Expanding Gaming Opportunities |
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Fiscal Note for
Senate Amendment " " to Committee Amendment "E" |
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Sponsor: Sen. Patrick of Oxford |
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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 increase - General Fund
Contingent current biennium revenue increase - Other Special Revenue
Funds
Change to tribal revenue |
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| Fiscal Detail
and Notes |
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If Washington and
Aroostook 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 elect 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. |
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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 $100,000 bidding fee
to win the right to be the applicant. Any bidding fees will be credited to
the General Fund. The Gambling Control Board will accept an application for a
casino license in either Aroostook County or Washington County from the
winning bidder as long as the voters of the county where the proposed casino
will be located have voted to approve a casino. Only one casino, in either
Aroostook or Washington County, may be licensed. The Department of the Attorney General will
also require a General Fund appropriation of $63,354 in fiscal year 2016-17
for one part-time Assistant Attorney General position dedicated to the Casino
Development Commission. |
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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
2% to 3% 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. The bill
limits the number of slot machines to 250 for the first 3 years of the
casino's operation, then allows 350 slot machines after that. 250 slot
machines and 10 table games for the first 3 years of the casino's operation
would generate estimated annual revenue of $7,166,711 credited to the Gambling
Control Board. 350 slot machines and 10 table games starting in the fourth
year of the casino's operation would generate estimated annual revenue of
$9,804,000 for the Gambling Control Board. This revenue will be retained
within the board until the Legislature decides on a distribution. |
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Each
non-refundable bid proposal will generate $100,000 in General Fund revenue.
The casino operator license will bring in General Fund revenue of $1,000,000
in the first year and registration fees of $100 per slot machine and per
table game will generate Other Special Revenue Funds revenue of $36,000
annually. A one-time renewal fee due five years after the casino begins
operating will generate Other Special Revenue Funds revenue of $100,000.
Annual State costs associated with 5 inspectors, an auditor and other related
expenses are estimated to be $523,510. The Department of Public Safety will
require Other Special Revenue Funds allocations of $523,510 to cover the
annual state costs. |
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Under current law,
4% of net slot machine income from Oxford Casino is directed to the Penobscot
Nation and the Passamaquoddy Tribe unless they receive funds from a slot
machine facility or casino other than Oxford Casino or Hollywood Casino, in
which case Oxford Casino would retain the 4% of net slot machine income. This
amendment allows the Penobscot Nation and the Passamaquoddy Tribe to receive
the 4% regardless of whether they receive revenue from casinos other than
Oxford or Hollywood. This results in an estimated annual revenue increase of
$2,527,134 to the tribes. |
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This legislation
is expected to have only a minor impact on revenues generated by the
Hollywood and Oxford casinos. |
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Annual Estimates |
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Starting in |
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Summary of Casino Revenue |
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Years 1 - 3 |
Year 4 |
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Gross Slot Income |
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$139,156,250 |
$194,818,750 |
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Player Payback - Slot Income |
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$124,823,156 |
$174,752,419 |
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Net Slot Income |
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$14,333,094 |
$20,066,331 |
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Operator Share of Net Slot Income - 54% |
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$7,739,871 |
$10,835,819 |
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Share of Net Slot Income to Gambling Control
Board - 46% |
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$6,593,223 |
$9,230,512 |
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Net Table Game Income |
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$3,584,300 |
$3,584,300 |
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Operator Share of Net Table Game Income - 84% |
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$3,010,812 |
$3,010,812 |
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Share of Net Table Game Income to Gambling
Control Board - 16% |
$573,488 |
$573,488 |
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State Revenues - Other Special Revenue Funds |
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Gambling Control Board (from 46% slot and 16% table income) |
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$7,166,711 |
$9,804,000 |
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Registration fees @ $100 per slot or table per year |
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$26,000 |
$36,000 |
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License Renewal Fee - due after 5 years |
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$100,000 |
(one-time) |
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State Revenues - General Fund |
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Bidding Fee - assumes 2 bidders |
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$200,000 |
(one-time) |
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Casino
Operator License - 1st year only |
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$1,000,000 |
(one-time) |
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Summary of State Expenditures - Other Special
Revenue Funds |
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Public Safety - Gambling Control Board |
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$523,510 |
$523,510 |
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