ELECTION SPECIAL — 2007
Don't gamble with the states
future
Top 10 Reasons to Vote No on Question 1
By Dennis Bailey Executive Director,
CasinosNO!
This November, voters will be
asked to approve another racetrack casino in Maine, this one in Washington County. Here
are the best reasons to vote NO on Question 1.
1. It's a major expansion of
gambling. Question 1 will double the number of slot machines in Maine, from 1,500 to
3,000. It will also permit a federally recognized Indian tribe to conduct high stakes
bingo games off the reservation in Washington County and increase the number of
off-track-betting (OTB) parlors in Maine.
2. Loss of local control. There
is no provision in the bill giving local voters a say over whether they want the high
stakes bingo operation in their community. Similarly, neither the state, the host
community, the harness racing industry, nor anyone else will receive a share of the
proceeds from the high stakes bingo games. The revenues go entirely to the developer.
3. Unfair allocations. You'll
hear a lot about the money from the slots that is allocated to state services and economic
development. But in fact, more than 60% of the revenues not retained by the owners go to
other gambling interests - OTBs, higher racing purses, a fund to promote horseracing, etc.
For example, the state's community colleges would receive about $120,000 a year from the
slots proceeds, but the state's five OTBs would get twice as much. Similarly, the host
community is allocated about $120,000 from the slots revenues, while "A Fund to
Encourage Racing" - which is really just a payout to the state's harness racing
tracks - will get nearly $500,000 a year.
4. It won't attract tourists.
There is no evidence that a racetrack casino in Washington County will attract tourists as
its promoters claim. In fact, the opposite is true. More than 95 percent of the patrons at
Hollywood Slots are Maine residents, and they came from within a few hours drive of the
facility. A casino in Washington County will only attract area residents, and make them
poorer than they already are.
5. It will hurt local
businesses and charities. Since Hollywood Slots opened its doors, area church and charity
bingo games have suffered, losing players to the Bangor slots parlor. These local bingo
games provide scholarships and donations to local charities. Now, the money is going
mostly to the out-of-state owner of Hollywood Slots. This shows that casinos don't add to
an area's economy, they just take money that would have been spent at local charities,
businesses and other retail stores and hand it over to the casino owners.
6. Will crime increase? In
2006, the first full year of operation of Hollywood Slots, the crime rate in Bangor rose
an alarming 22%, much more than any other city in Maine. Local authorities blame drugs for
the rise in crime, but drugs have been around for years and are a problem in many Maine
communities. Yet cities of similar size (Lewiston, Biddeford) saw their crime rates go
down or rise only slightly last year. What's going on in Bangor? Before doubling the
number of slot machines in Maine, we should find out.
7. It will only lead to more
casinos. There are several proposals for more casinos waiting in the wings. Scarborough
Downs wants slot machines at its southern Maine racetrack. A group is proposing a huge Las
Vegas-style casino in the Rumford area. A businessman is planning a casino cruise ship
from Old Orchard Beach. If voters approve another racetrack casino for Maine, these
developers and others will argue that it's only fair that they are allowed to have slot
machines too, and suddenly Maine's image and reputation will look a lot like Atlantic
City's.
8. Too Many Questions. The
Passamaquoddy Tribe says it will be "the majority owner" of the racetrack casino
in Washington County. But it hasn't said who the minority owner or owners will be, whether
they come from in state or out, and how much of the slots' revenue they will be paid.
Voters deserve to know these answers before approving more slot machines in Maine.
9. Funny math. The proponents
of Question 1 say their racetrack casino will reap $12 million in annual revenues to help
the Tribe and local economic development. Let's take a closer look: Under the proposal, 41
percent of that money (plus a state tax on the gross income) is allocated to a variety of
interests (including other gambling interests) leaving $6 million in net revenues. The
operating margin for most casinos is around 20%, so after paying debt service, salaries
and other costs, what's left over would shrink to about $1.2 million a year before taxes.
Then, assuming their minority partner would take up to 49% of that, the Tribe would reap
less than $600,000 for its programs or services - or roughly what the Tribe is currently
spending on its campaign to get Question 1 passed.
10. Maine people lose. If
Question 1 passes and a racetrack casino gets built in Washington County, someone might
get rich, but it won't be the residents of that chronically depressed area. In order to
reap that $600,000 in profit, the casino patrons will have to gamble $180 million a year.
You read that right. $180 million will have to be put through the slot machines in order
for the Tribe to end up with just $600,000 for their programs. Does that sound like
sensible economic development to you?
The Washington County casino
will create a lot of losers and very few winners, and it will open the door to more
casinos that will hurt the character and reputation of Maine. This November, please vote
NO on Question 1.
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