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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.