The public got a chance this week to express its opinions on a proposal to build a casino in southern Maine. The hearing, by the Legislature’s Veterans and Legal Affairs Committee, was held in Augusta, the state capital.
Lawmakers focused on a lobbyist, Dan Riley, who both told the angry legislators that the firm backing the measure, Bridge Capital, is an offshore corporation based in the Northern Mariana Islands, and that it plans to sell the rights if voters approve it. He said he had just been hired by the proponent and wasn’t prepared to answer any questions about the proposal itself.
Committee members also asked questions about the company’s dealings in Asia, where one of its casinos, in Laos, was seized for alleged corruption and tax evasion.
This caused some lawmakers to blast the proposal as “major corruption.” Senate Majority Leader Garrett Mason, the committee’s co-chairman, commented after the hearing. “I would just say that if the government of Laos thinks you’re corrupt, we have a major problem.”
The legislature normally doesn’t hold hearings on initiatives, instead usually just scheduling them for an election. It does have the authority to put up a competing measure, but cannot stop a measure from making it to the ballot.
Proponents claim they have gathered enough signatures to put the measure on the November ballot. The group, Horseracing Jobs Fairness, is operated by Lisa Scott, sister of casino developer Shawn Scott, who led the campaign to authorize Maine’s first casino in Bangor 16 years ago. He also sold his rights to the Bangor Raceway casino once voters approved it. Currently he lives in the U.S. Virgin Islands.
Opponents include Maine Governor Paul LePage and the political action committee No More Casinos Maine.
So far Scott’s group has spent more than $4 million in putting the measure on the ballot; a measure that is so closely written that the only location that fits the description is York County on land owned by Scott. It states “The Gambling Control Board may accept an application for a slot machine operator license or casino operator license . . . from any entity that owned in 2003 at least 51 percent of an entity licensed to operator a commercial track in Penobscot County.” Only Scott and his property fits that description.
Lisa Scott has commented that the proposal, “will preserve horse racing and provide hundreds of jobs.”
Scott is a controversial figure who has been denied gaming licenses in several states after regulators raised questions about his shady associations. In 2003 the Maine Harness Racing Commission criticized him for “sloppy, if not irresponsible” financial management at his companies, and noted his involvement in 37 lawsuits in four states from 1992 – 2000.
No More Casinos member Jenny Freeman told the Portsmouth Herald last month, “He made a quick $51 million from the Bangor casino . . . and thinks we’re dumb enough to give him another ridiculously sweet deal.”
The Scotts’ first effort to qualify the southern Maine casino was last year when election officials rejected more than half of the signatures. The group then took the 35,000 signatures that had been approved and gathered thousands more to qualify for this year’s ballot.
The governor has said “there is greed,” behind the casino proposal.
Lisa Scott said last week that she is “drawing up plans” and looking for sites for the casino. She told Focus Gaming News, “I personally plan to oversee this project and am committed to assembling a world-class team resulting in a facility that all of Maine can be proud of.” She promises that the casino will generate 800 construction jobs and 1,000 permanent jobs.
Maine already has two casinos, the Hollywood Slots and the Oxford Casino. The casino paid Oxford and Oxford County a total of $2.4 million last year, according to figures released by the Maine Gambling Control Board. The town of Oxford collected $1,297,129 in slot revenues and $312,757 in table revenues. Oxford County collected $648,564 in slot revenues and $156,378 in table revenues.
Voters approved of the Oxford Casino in 2012. Many see it as a positive economic engine in the area, leading directly to the building of the $15 million Hampton Inn across the street from the casino and recently the groundbreaking for a $25 million hotel next to the casino.
On the other hand, the town of Oxford had to spend money to develop a sewer and water system to support the casino.
However, officials such as Town Manager Becky Lippincott agree that the casino is key to the town’s success and has led to lowering local property taxes.
The referendum that created the Oxford Casino set aside 46 percent of slot revenue and 16 percent of table game revenue for the state, with 1 percent of slot and table game revenue going to Oxford County.
Hollywood Slots in Bangor has a somewhat different revenue sharing set up. The host city of Bangor is paid 1 percent of slots revenues and 2 percent of table game revenues. The host county, Penobscot County, is paid nothing.
There have been attempts in the legislature to take the money away from Oxford and Oxford County and earmark it for statewide education. The town successfully fought this, arguing that Oxford spent expanded amounts to serve the casino and needed the additional money to pay for that.
Both the town of Oxford and Oxford County use some of the money they receive to offset property taxes each year. It’s also used for such things as new police cars.
