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February 23, 2010

Indian game revenues drop, prompting legislation

BY SUSAN M. COVER Staff Writer

AUGUSTA -- The economy and competition from a nearby gambling venue have dropped revenues at the Penobscot Nation's beano games, leading a tribal representative to ask for a license fee reduction.

Rep. Wayne Mitchell, the tribe's representative in the Maine House, sponsored L.D. 1770, which would extend a temporary fee reduction for two more years.

The high-stakes beano license fee is $50,000 a year, but Mitchell asked that the tribe pay $25,000 each year for the next two years.

Members of the Legal and Veterans Affairs Committee voted 8-0 Monday in favor of the bill, which will now go before the full Legislature.

The bill is also supported by Gov. John Baldacci, according to a letter from his legal counsel.

Mitchell said the tribe originally got a break on the fee two years ago after Hollywood Slots opened a permanent facility in Bangor. The tribe continues to lose business to the new commercial venture, which is about 14 miles away, he said.

"It is our hope this will not be an ongoing situation," Mitchell said.

Mitchell said the tribe is working to make improvements to its facility in hopes of drawing bigger crowds. Beano brings in $74,000 a year for the tribe, which uses the money to pay for services that help the elderly, for youth programs and as emergency funds for the needy, he said.

Unemployment among tribal members is 46 percent, he said.

Committee Senate Chairwoman Nancy Sullivan, D-Biddeford, said the bill needs to take effect immediately to help the tribe.

"Hopefully, we can go downstairs with a unanimous report," she said.

The committee will review final language before sending the bill to the House to ensure that there's no fiscal impact to the state by granting the reduced license fee.

House Chairwoman Pam Trinward, D-Waterville, said since the money goes into a special revenue account; it's not part of the budget currently under consideration by the Appropriations Committee.

Susan Cover -- 620-7015

scover@centralmaine.com

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