State Of Maine Gambling Control Board Patrick J. Fleming Executive Director

History of Gaming in Maine Prior to 2004 Maine had limited gambling opportunities. Lottery, Harness Racing, BEANO and Games of Chance were the only gambling legal in Maine. In 2004 the citizens of Maine voted to allow two slot facilities in cities that had commercial harness racing tracks. The law required local approval so the citizens of Bangor and Biddeford took votes and only Bangor approved a slot facility.

November of 2005 Hollywood Slots opened the first slot facility on Main St in Bangor with 500 slot machines. In November of 2010 the citizens of Maine voted once again and approved a casino in Oxford County.

In March of 2012 after legislative action and another local vote Hollywood Slots became Hollywood Casino and opened the first table games allowed in Maine. June 2012 the Oxford Casino was opened as the second casino in Maine.

What do the Casino’s Pay to the State? Both casinos are required to pay a portion of their income to the state for the privilege of operating in Maine. Both casinos slot machines are required to have a payback percentage of at least 89%. Hollywood Casino pays 1% of gross and 39% of NET of their slot revenues. Oxford casino pays 46% of the NET of the slot revenues. Both casinos pay 16% of their NET revenues from table games to the state.

In calendar year 2015 the two casinos combined contributed a total of $52,209,411 in tax revenue. The monies collected go to various funds as required by statute including harness racing, education, and veterans.

What Impact Has the expansion of Gambling Had on the State of Maine 2011 the last year Hollywood Slots was sole facility they paid $20.5 million in slot revenue alone. 2015 they paid $15.5 million in slot revenue and $1.4 million in table games revenue. A decrease of nearly 20%. Both companies still profitable but expansion definitely had an impact.

What Happened? Location, Location, Location! Maine population 1.2 million people most located in Southern Maine. New casino in Oxford located closer to the population base. Patrons that would travel north to Bangor now go to Oxford. Oxford also draws from New Hampshire and Massachusetts.

Hollywood Casino surrounded by Maine’s least populous counties and poorest economically. Some influence by the Canadian Provinces but other factors such as the exchange rate and fuel costs contribute to how big an influence.

What Have We Learned? Expansion of gambling is not necessarily a windfall for all involved. Factors such as population base and local economy will certainly affect the casinos profitability and should factor in if considering expansion. States such as Maine that have seasonal impacts such as tourists in the summer and snowstorms in the winter make it difficult to accurately forecast the ongoing revenues from the casinos.

Thank you