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Friday, March 5, 2004
Critics chide Powerball plan
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AUGUSTA — Gov. John Baldacci came under attack Thursday for his flip-flop on the multistate Powerball lottery, which he previously opposed but now believes the state should join. Critics say the governor's about-face would expand gambling in Maine, despite Baldacci's long-standing opposition to more gambling. But some gambling supporters and many state lawmakers say it only makes sense to cash in on Powerball as the state tries to find money to provide tax relief. Some even say the governor should re-evaluate his opposition to other forms of gambling as well, including racinos. The conflicting responses came a day after Baldacci unveiled a tax relief plan that calls for the state to join Powerball in hopes of raising $9.1 million. The money would be used to help pay for a proposed $25 million increase in state aid to local schools during the fiscal year that starts July 1. In announcing his change of heart Wednesday, Baldacci told reporters he still does not like adding Maine to the Powerball lineup, which includes 24 states, the District of Columbia and the U.S. Virgin Islands. Maine and Massachusetts are the only New England states not enrolled in Powerball, which offers twice-weekly drawings on jackpots that are bigger than those offered by the sagging Megabucks game in Maine, New Hampshire and Vermont. In 2001, Patricia and Erwin Wales of Buxton won $41 million playing Powerball. Megabucks jackpots grow more slowly now that New Hampshire and Vermont have joined Powerball, said Pam Coutts, director of the state Bureau of Alcoholic Beverages and Lottery Operations. Coutts said Megabucks has net profits of about $8 million a year, and that number is expected to drop if the state introduces Powerball. Still, an analysis by the state Department of Administrative and Financial Services projects a net increase in lottery revenues of $9.1 million, even with a drop in Megabucks sales. "While it bothers me that we're doing it, it is going to go to a good cause," Baldacci said Wednesday. "The economy and the times demand some flexibility." In an interview Thursday, Baldacci said the lottery is not a form of high-stakes gambling, so adding a new game to it is not akin to launching a racino or a casino, both of which he continues to oppose. "In terms of tax reform, we had to put serious money on the table," and this would help do that in a way that is acceptable to lawmakers, Baldacci said. The Legislature passed a bill last year authorizing the state to join Powerball, but lawmakers recalled it from the governor's desk in the face of a likely veto. As recently as November, Baldacci's spokesman said the governor remained opposed to Powerball for Maine. Baldacci's explanation didn't satisfy opponents of gambling, who insisted that adding Powerball would expand gambling in Maine, which Baldacci has consistently opposed. "He shouldn't be doing that, given the fact that he has very publicly fought gambling in the last year and done a great job at it," said Michael Heath of the Christian Civic League of Maine. "It's an expansion of gambling because it's going to draw more people into the lottery." "We're disappointed," said Dennis Bailey of Casinos No!, which worked with Baldacci last year to defeat a referendum that would have allowed the Penobscot Nation and Passamaquoddy Tribe to operate a casino in Maine. "We've said to several groups they can't expand gambling in Maine, and now the state turns around and expands gambling," Bailey said. He said Baldacci has now lost "the moral high ground" on the issue because he is no longer consistent in his opposition to any expansion of gambling. Chief Barry Dana of the Penobscot Nation, one of the tribes behind the failed effort to open a casino in southern Maine, offered a different perspective. Dana, whose tribe wants to work with other tribes to open a racino in Bangor, said it is perfectly understandable that the governor is looking for new sources of state revenue in tough times. But Dana said Baldacci should have backed the casino referendum last year for the same reason. Now that Baldacci has acknowledged his willingness to expand the state lottery to raise money, Dana said, that is "a good reason for him to change his position on gaming" in general, and embrace racinos as well. Baldacci, who has opposed racinos, submitted a bill to the Legislature this year to tighten state regulation of slot machines at racetracks. A revised version of that bill is still under review in committee. The reaction to Powerball was generally supportive in the Legislature, where some lawmakers praised Baldacci for having the flexibility to rethink his stand on issues when conditions warrant. Several legislators noted that Mainers routinely buy Powerball tickets in New Hampshire, so Maine might as well sell them, too, to drum up business for in-state retailers. "The people who are playing (the lottery), that's what they want," said Rep. Joseph Perry, D-Bangor. "We're replacing one (game) no one wants to play with one everyone wants to play." "I would feel differently if we didn't have the lottery at all," said Senate Majority Leader Sharon Treat, D-Farmingdale, because introducing a lottery from scratch would be a big change in public policy, while adding a new game to an existing lottery is not. "I think we want a governor who's able to change his thinking," said Rep. Gary Moore, R-Standish. House Minority Leader Joe Bruno, R-Raymond, said he has no problem with bringing Powerball to Maine but Baldacci's reversal represented "a major flip-flop" by a governor who has been strongly opposed to gambling. If the Legislature goes along with the idea, state lottery officials hope to have Powerball up and running by July 1. Staff Writer Paul Carrier can be contacted at 622-7511 or at:
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