|
Thursday, January 22, 2004
Tribes want to operate racino
Copyright © 2004 Blethen Maine Newspapers Inc. | ||||||
 |
Also on this page: In Depth: Gambling in Maine | |||||
AUGUSTA — The Penobscot and Passamaquoddy tribes, which lost a referendum in November that would have allowed them to build a casino in Maine, now want the Legislature to give them a shot at operating slot machines in Bangor. The tribes submitted a plan to a legislative committee Wednesday that would force Bangor to start from scratch in its quest to set up a racino at the Bangor Raceway. If the plan is approved, the two Maine tribes will join with the Pequot Tribe, owner of the Foxwoods Resort Casino in Connecticut, in seeking a slot-machine license for Bangor. "That would open up the process for the city of Bangor to start over" in deciding who will install slots there, said Chief Barry Dana of the Penobscot Nation. "We're very interested. We're ready to make a legitimate proposal to the city." The two-page plan submitted to the committee says the city could initially have deals with separate contractors for harness racing and slots, or sign a deal with one bidder for both activities. If the city has a harness contract with one firm and a slots contract with another, the slot-machine operator could install slots elsewhere within five miles of the track until the harness contract expires. The slots operator would then be required to move the machines to the track and provide both horse racing and slots at the track. Richard Spencer, a lawyer for the tribes, said the Penobscots and Passamaquoddies would own 70 percent of the racino and the Pequots would own 30 percent. Dana said the Pequots would manage the racino because they have experience running gambling ventures. A statement released by their lawyers said the tribes want a fair chance to compete for the Bangor slots contract, because Bangor signed its deal with Las Vegas developer Shawn Scott even before voters passed the racino law. The tribes "see this as a chance to become real contributors to economic development in eastern Maine, as well as to address our own crushing economic difficulties," according to the statement. The city of Bangor has an agreement with Scott to have Bangor Historic Track Inc. establish a racino at the Bangor Raceway. But that deal is in limbo because Scott is selling Bangor Historic Track to Penn National Gaming, which also is working with Scarborough Downs to try to establish a racino in southern Maine. Penn National filed paperwork with the Maine Harness Racing Commission Wednesday claiming that Scott's company Capital Seven has transferred all of its stock in Bangor Historic Track to Penn National. If the state verifies that transfer and if Penn National meets state requirements for running harness meets, the commission could give Penn National a conditional harness-racing license for Bangor when it meets on Feb. 13. Under the law voters passed in November authorizing slots at harness tracks, such a license from the Harness Racing Commission would allow Penn National to install slot machines at Bangor Raceway. Gov. John Baldacci, who opposes racinos, wants the Legislature to strengthen state oversight, in part by requiring separate state licenses for harness racing and slots. A bill that Baldacci has submitted to the Legislature would create a state Gambling Control Board to license slot machines. It is that bill the tribes want the Legislature to amend, to require Bangor to solicit bids for a slot-machine license, instead of proceeding with the deal to have the owner of Bangor Historic Track install slots at Bangor Raceway. The Legislature's Legal and Veterans Affairs Committee, which is considering the governor's bill, added the tribes' proposal to a long list of suggested changes that it is reviewing. The committee is studying dozens of possible revisions, but it has not had a full discussion of any of them and no votes have been taken. The committee did not discuss the tribes' plan Wednesday. A co-chairman of the panel, Sen. Kenneth Gagnon, D-Waterville, said it is too early to predict how the committee will react. Eventually, the committee will submit its recommendations to the full Legislature. Other players in the racino fight offered various reactions Wednesday, although several withheld comment on the tribes' plan, which seemed to take many people by surprise. Lee Umphrey, Baldacci's spokesman, said the governor was reserving judgment because the legislative committee has not had time to digest it. Although Baldacci opposed the casino referendum last year, he has made overtures to the tribes since then, arguing that the state must help them promote economic development for tribal members. "The more public discussion of alternatives, the better," Umphrey said. "The governor is waiting for the committee process to continue before passing judgment on anything." Christopher Howard, an attorney representing Penn National, and Robert Tardy, a lobbyist for Scarborough Downs, said they and their clients needed time to study the proposal. But David Nealley, a former vice president of Capital Seven who is now a consultant to Scott's firm, said the Legislature should reject the tribes' plan because the voters decided the racino issue last year. "The Legal and Veterans Affairs Committee should be talking about the will of the people," instead of trying to change the voter-approved law, Nealley said. The plan also was attacked by Dennis Bailey of Casinos No!, which opposes casinos and racinos. "This is not what the people voted for," Bailey said of the tribes' bid to reopen the process of choosing a slot-machine operator in Bangor. "This is a way to get what the voters rejected" when they defeated the Indians' casino proposal, he said. "They're making a hash of the referendum process." Ed Barrett, the city manager in Bangor, said the tribes have notified the city of their intentions but the city is bound by its agreement with Scott's company, at least for now. "At the moment, of course, we have an agreement with Capital Seven and that is the basis on which we have to proceed," Barrett said. Staff Writer Paul Carrier can be contacted at 622-7511 or at: pcarrier@pressherald.com
|
||||||
