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Slots Supporters Brace For Vote In Senate

Apr 28, 2004

Supporters of slot machines at Bangor Raceway braced for a showdown in the Senate this week, readying a final effort to strip a newly proposed state tax from the bill they say could derail - or at least delay - the project.

"It's trying to feed the tiger enough food so he won't bite you in the rear end ... so we can get this thing up and running," Denise McNitt of the Maine Harness Horsemen's Association said of her group's efforts to give the state enough slots revenue to cover its administrative costs while lowering the tax burden on the project.

McNitt's comments came on the heels of an Appropriations Committee vote Monday to send the bill, LD 1820, back to the Senate with the new tax - a 1 percent levy on the amount wagered in the machines - intact.

The Senate, which already has given its conditional approval to the bill, most likely will take up the issue today. The House already has given its final approval to the bill barring any changes.

The Appropriations Committee vote came despite intensified lobbying efforts to jettison the tax, expected to net the state upward of $8 million a year once a Bangor facility reaches its capacity of 1,500 slot machines.

The tax would be in addition to the 39 percent share of slots revenue after winnings are paid that the state already stands to receive under the bill. Only 3 percent would be devoted to administrative costs, with much of the rest going to the Fund for Healthy Maine or returned as purse supplements to horsemen.

Under a plan to be introduced today by McNitt's group, the horsemen would return part of their share to the state for the first three years to help with startup costs. In turn, the state would remove the new tax, added in the late days of the session as a way to close a $500,000 shortfall in the state's costs.

But now, with just days remaining in the session and little sentiment among lawmakers to tinker with the controversial bill, the horsemen's efforts could be in vain.

"They're being faced with the political reality that the amendment doesn't have any wheels," said Sen. Kenneth Gagnon, the Waterville Democrat who crafted much of LD 1820, a replacement for a citizen-initiated referendum initially allowing slots at the state's harness racing tracks.
 

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