Patrick Fleming- Gaming

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