Slot machines might roll by fall

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AUGUSTA — Maine could get its first slot machines this fall under a new plan to convert a well-known Bangor restaurant into a parlor with slot machines.

Penn National Gaming announced Thursday it would renovate Miller's Restaurant and install 475 slot machines there, opening the parlor in November or December. The company has agreed to buy the restaurant for $3.8 million.

Penn National also would relocate an off-track betting center from the Main Street restaurant to the grandstand at Bangor Raceway, which it operates.

"The commencement of operations, pending all necessary licensing approvals, provides benefits to all involved parties," Peter Carlino, chief executive officer of Penn National, said in a statement.

Bangor residents, state officials and members of the harness racing community have watched the progress of Penn National closely since a 2003 referendum legalized slot machines within 2,000 feet of Maine's two commercial harness tracks.

Some saw Thursday's announcement as a key to speeding up the lengthy process of bringing slots and their revenue to Bangor.

"This is an important step. . . . Perhaps now I can walk down the street in Bangor and not have someone ask when are we going to get slot machines," said George McHale, chairman of the Maine Gambling Control Board.

Penn National officials described the parlor as temporary. The company still plans to build a new facility that would hold 1,500 slot machines and possibly feature dining and entertainment.

But Penn National gave no date for when construction would start on the permanent building. Company officials said they are still deciding whether to put the so-called racino next to the raceway or locate it on a nearby site.

Penn National had said it would forgo a temporary parlor and open a new building and parking garage in 2006 on the same site as the raceway. Company officials changed their plans for several reasons.

The Legislature's debate this winter over a bill, which would shield some of the information Penn National files for a state gambling license, created a delay. An amended version passed two weeks ago.

Penn National also encountered local objections to the site it was planning for the raceway. Residents had concerns that the construction would affect the Bangor State Fair and Bangor Civic Center and Auditorium, which would share the same site. And waiting for a new building meant the city won't have slots for some time. Penn National needs state and local building approvals and then 12 to 18 months for construction.

Bangor officials and gambling regulators applauded the decision to open the temporary parlor. They viewed it as a good way to get slots spinning for the first time in Maine. The parlor also allows Bangor and the state to collect millions of dollars in annual revenue for harness racing purses, college scholarships, and a prescription drug assistance program, as required by state law.

"I am excited. I think it is good news for the city of Bangor," said state Rep. Michael Edward Dunn, D-Bangor.

But Penn National's lack of a date to start construction on the permanent facility created some concern. Members of the state's harness racing community didn't comment as they left the gambling board meeting where the plan was announced. They stressed to gambling board members that the Miller's site should be viewed as a temporary facility.

Dennis Bailey of Casinos No!, an anti-gambling group, questioned how a slot parlor away from the racetrack would increase interest in harness racing. He said that was a key reason why voters backed the referendum to legalize slots.

Penn National, however, said it remains committed to building a permanent home near the raceway. State law requires the slots to be within a 2,000-foot radius of the track. A spokesman for Penn National said the company is looking for a location in this radius and still may build right at the raceway.

Bangor City Manager Edward Barrett said he is confident Penn National will follow through. In the meantime, the city would benefit from an estimated $1.1 million it would get annually from its share of slot revenues from the temporary facility.

"I think it is very exciting. I am happy for you and I am happy for the city," Jean Deighan, a Bangor resident and a gambling control board member, told Penn National officials.

Penn National still has several regulatory steps before it can open a parlor. It needs final approval for its state gambling license, which was put on hold until the Legislature passed the bill making certain information confidential. The slot machine distributors, monitoring company and parlor employees also need to get state licenses.

The plans that Penn National showed to the board spread the parlor over two floors with a small restaurant. The outside of the building would likely be unchanged.

The off-track betting operation to be housed at Bangor Raceway would operate year-round. The track is now open only in the summer for harness racing.

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