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Thursday, April 29, 2004
State must now build racino infrastructure
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Before the first slot machine flashes and chimes in Bangor, the state must create a new arm of government. The governor must appoint a five-member board to oversee regulation of the slot machines. Employees must be hired to check fingerprints of employees and monitor the computer system that tracks wagers and payouts. Office space must be found for the workers in charge of regulating the state's newest form of gambling. A voter-approved law legalizing slot machines at commercial tracks has been revised and finalized by the Legislature, but the actions this week left Penn National Gaming, the likely operator of the slots, questioning whether to pursue its plan to create a racino in Bangor. One change made by legislators would reduce the amount of money Penn National would collect from slot machines at Bangor Raceway. Under the referendum approved by voters last November, Penn National would have collected 7.5 percent of the estimated $825 million per year that people are expected to wager on slots. Under the modified law, which Gov. John Baldacci intends to sign within the week, the company would collect 6.1 percent of the so-called handle. If wagering estimates are accurate, the change would cost the company more than $11 million a year. The company is reviewing all of its options, including selling its interest in the company that conducts harness racing at the Bangor-owned track, said Penn National spokesman Eric Schippers. "This will have, if we move forward with this project, a dramatic impact on what we had envisioned for this project. The amount of capital investment, the amount of jobs that would be created - there are consequences to tax rates at this level, on these types of small gaming markets," he said. The Public Safety Department and Maine Harness Racing Commission are moving forward as though the company will continue pressing for slots. The racing commission was given regulatory power over slots through the state referendum question. But a bill proposed by Baldacci and approved by legislators gives responsibility to the state's Department of Public Safety. The revised law also sets up a five-member Gambling Control Board within the department. The governor would appoint the five members, to be approved by the state Senate. Appointees would serve three-year terms. At least four of the members have to have a background in corporate finance, economics, law, accounting, law enforcement, computer science or the gambling industry. One member must have experience in the harness-racing industry. The board would hire an executive director, who would hire a staff. The law will not take effect until 90 days after the Legislature adjourns, but Public Safety Commissioner Michael Cantara said the department will start advertising for staff members and identifying candidates for the executive director's job. The department will also look for office space and equipment, possibly for offices in Augusta and Bangor, he said. Once up and operating, the gambling control board will set policies and regulations for the use, operation and monitoring of slot machines. The department will investigate the suitability of any applicants who want to operate slot machines in Bangor, Cantara said. Henry Jackson, executive director of the racing commission, said his office will share records it has to help state police with their investigation. The commission will continue to investigate the moral and financial suitability of Bangor Historic Track/Penn National to conduct harness racing in Maine. A full license will be awarded following successful completion of the background check, Jackson said. The racing license is a prerequisite to a slot license. Staff Writer Grace Murphy can be contacted at 791-6383 or at: gmurphy@pressherald.com
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