HomeMy WebLinkAbout2011-08-09 Government Operations Committee Minutes
Government Operations Committee
August 9, 2011
Minutes
Council Members: Blanchette, Gratwick, Nealley, Longo,
Staff: Conlow, Heitmann
Other: Richard Trahey, John Osborn,
1. Update from Legislative Consultant Richard Trahey
Councilor Blanchette began the meeting by introducing Richard Trahey, lobbyist
from Augusta, who has been following the gambling regulations as well as aspects
of legislation that may have an influence on Bangor.
Trahey, who is also self employed with Maine Governmental Relations Firm in
Hallowell, explained that by mid January there were 17 gaming bills in play, 2 or 3
didn’t make it far in process, and another 2 or 3 applied for only minor Bingo
regulations. There were approximately 12 gaming bills that potentially have
impact on Hollywood Slots revenue. The table bills passed, and an amendment
was created by the Veterans Committee. The amendment established
preliminary fees, licenses, and regulations. Thus far there is a 2% increase in
revenue to the City of Bangor from table games. A rough estimate from
Hollywood slots was based on 12 tables and an estimated 8% increase in slot
revenue because of the additional table games. This would be total to an
additional $151,300/per year to Bangor. One primary focus next year will be a
complete review of the revenue cascade from racino's and casino’s and how it is
distributed.
Gratwick asked for a further explanation of the additional 2% revenue. In
response to Gratwick, John Osborn, a Bangor resident and General Manager of
Hollywood Slots, stated that of the approximately $60 million annually in slot
revenue, the City receives 4%. This is equal to roughly $2.4 million. The
anticipation is that the table games themselves will be an incremental $5.0 million
in revenue. Of that, an additional 2% is gained for the City on table revenue
alone. On the slot side, a forecasted $5.0 million increase is expected. 4% of this
is slot revenue (or $200,000.) It is anticipated that the City of Bangor will receive
$300,000. more than what the City currently receives.
There were discussions around Hollywood Slots distribution of funds and the
cascade. The Veterans and Legal Affairs will need to develop a model for the
cascade that is fair to all. It will be an extremely complicated process and much
will depend on the November elections.
Further discussions included comparisons of Hollywood Slots with Oxford,
Biddeford, Lewiston and Scarborough Downs. Blanchette talked about support
from the Legislature and how it relates to limiting the number of gambling
operations allowed in the State of Maine. The concern is oversaturation.
Blanchette expressed her concern for fairness in all areas involved as far as
distribution goes.
Blanchette closed with a statement about the importance of a county wide vote
in favor of the table games at Hollywood slots. If this does not pass, Bangor as
well as the rest of the region will suffer.
A motion was made and seconded to close. The meeting ended at 6:25pm.