Maine Bills Aim to Boost Tribal Gaming Revenues
Key Takeaways
Currently, several legislative proposals are being discussed in Maine that aim to improve the Wabanaki tribes’ access to gaming revenues. At the centre of the debate is LD 1851 – a bill that proposes to allocate a portion of the slot machine revenues from Hollywood Casino in Bangor to two tribes that have not previously been included. The goal is to create a fairer distribution of gaming revenues among the state’s Indigenous nations.
What is LD 1851 About?
The LD 1851 bill proposes that 7% of the slot machine revenues from Hollywood Casino be allocated to the Houlton Band of Maliseet Indians and the Mi’kmaq Nation. Up to now, only the Penobscot Nation and the Passamaquoddy Tribe have benefited from such revenues through the Oxford Casino. Their existing agreements will remain unchanged.
The proposed change would increase the total share of slot machine revenues that Hollywood Casino contributes from 39% to 46%. For the two newly included tribes, this would amount to approximately USD 3.5 million annually.
Why Is This Important?
The Wabanaki tribes in Maine are excluded from many federal regulations under the Maine Indian Claims Settlement Act of 1980, including the Indian Gaming Regulatory Act (IGRA) of 1988. IGRA allows other Indigenous groups in the U.S. to operate their own casinos or regulate online gaming. In contrast, tribes in Maine require special state approval for any form of gaming.
According to a 2022 report by the Harvard Kennedy School, this disparity has led to the Wabanaki tribes falling behind economically compared to other federally recognized tribes. LD 1851 aims to help close this gap without jeopardizing existing agreements with other tribes.
Voices from Politics and the Tribes
Representative Marc Malon, who introduced LD 1851, emphasizes that the bill is about fairness. Representatives of the affected tribes also support the proposal. Zeke Crofton-Macdonald, ambassador for the Houlton Band of Maliseet Indians, describes it as a step toward economic equality. Chief Clarissa Sabattis stresses that the intention is not to take anything away from other tribes: “All of our tribes have significant unmet needs.”
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Additional Legislative Initiatives: LD 1164 and LD 1838
In addition to LD 1851, two other legislative proposals are under discussion:
- LD 1164: This bill would grant the Wabanaki tribes exclusive rights to operate online gaming in Maine. It has already received majority support in committee but faces opposition from Governor Janet Mills and private casino operators.
- LD 1838: This proposal would allow the tribes to operate electronic Beano terminals (electronic bingo devices) – creating an additional source of revenue.
Steve Silver of the Maine Gambling Control Unit expressed concerns that implementing LD 1164 might require a review of the existing revenue obligations of Oxford Casino.
Economic Impact and Concerns
Not all stakeholders support the proposals. Chris Jackson, a representative of Hollywood Casino, is open to discussions but warns against increasing the effective tax burden. Operators are willing to talk, as long as their contribution rate does not rise further.
Our Assessment
LD 1851 is a pragmatic approach to correcting existing inequalities in the distribution of gaming revenues in Maine. The proposed redistribution affects only Hollywood Casino and leaves existing agreements with other tribes untouched. This encourages acceptance and improves the chances of implementation.
The other legislative proposals – particularly LD 1164 – would more significantly alter existing market structures and therefore face greater resistance. Nevertheless, the debate shows growing political will to improve the economic situation of the Wabanaki tribes.
If LD 1851 is passed, the model could serve as a template for other states with similar legal restrictions.
Sources
- Maine Gambling Control Unit
- Harvard Kennedy School Report 2022
- Statements from Chief Clarissa Sabattis and Zeke Crofton-Macdonald
- Legislative hearings in the State of Maine
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