A study authorized by the Maine Legislature concludes that the state could absorb another two casinos without becoming saturated. The study recommends that an additional casino be located in the south, and a smaller one in the north, with no more than 100 slot machines.
The study, conducted by WhiteSand Gaming, was released August 30. The state has two existing casinos, one of them in Oxford and the other in Bangor.
It recommends that a southern casino be located near to Interstate 95 and known tourist attractions to be financially viable. WhiteSand was chosen because it is not an interested party in trying to locate a casino in the state.
According to the 138-page study, “Southern Maine includes not only substantial Maine population but is positioned to draw upon important demographics in New Hampshire and Massachusetts.”
The study also recommends charging $5 million for a five-year casino license in addition to application fees and $100 per machine per year. It also recommends that the casino develop company be required to make a minimum investment of $250 million.
The legislature’s Veterans and Legal Affairs Committee will review the study, possibly as soon as September 10.
The two existing casinos in Maine have revenue-sharing agreements with the state. Last year Oxford Casino netted $58.4 million in slots revenue and $13.3 million from table games. Hollywood Casino netted $47.3 million from slots and $7.4 million from tables.
