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Maine Gaming Supplier Regulatory Overview

26 August 2016

Regulatory Management Counselors, P.C.

Maine currently has two commercial casinos, the Hollywood Casino Hotel and Raceway and the Oxford Casino, both of which are regulated by the State of Maine Gambling Control Board (“Maine Gambling Control Board”). The Maine Gambling Control Board also reviews and grants gambling licenses.

Business Entity/Gambling License Application

This application contains five categories regarding business entities seeking to work with Maine’s casinos. Applicants must then indicate which license they are applying for by attaching the required information.

The five license categories contained within the Business Entity Application include:

1. Slot Machine Operator License, which is required for any person who operates slot machines and associated equipment. A “slot machine operator” is defined as a person, not including a casino operator, who is licensed under this chapter (31) to operate slot machines and associated equipment in the State. “Associated equipment” means any component part used, or intended for use, in a slot machine or table game.

2. Casino Operator License, which is required for any person who operates a facility with both slot machines and table games and associated equipment.

3. Slot Machine Distributor License, which is required for any person who sells, leases, or distributes slot machines and associated equipment for use in the State of Maine.

4. Table Game Distributor License, which is required for any person who sells, leases, or distributes table games and associated equipment for use in the State of Maine.

5. Gambling Services Vendor License, which is required for any person who provides gambling services. “Gambling services” means any goods or services provided to an operator licensed at a gambling facility that are used directly in connection with the operation of a slot machine or table game, including, but not limited to, maintenance, security services or junket services, and excluding slot machine or table game distribution by a slot machine distributor or table game distributor.

Duration

Licenses are valid for one year and must be renewed annually using the Business Renewal Application. All feeds paid are nonrefundable. Application for renewal of a license must be made no less than 6 months prior to the expiration of the current license.

Maine also offers temporary licenses. They can be used when a person who has applied for a permanent license works under a temporary license until the permanent license is granted or the Main Gambling Control Board revokes the temporary authority. An applicant whose temporary authorization is suspended or revoked is not eligible for employment in a position requiring an employee license pursuant to subsection 1 until such time as the suspension or revocation is withdrawn or an employee license is issued.

Fees

Slot Machine Operator: $200,000 license fee; $75,000 annual renewal fee plus an amount, set by the rules of the board, equal to the cost to the board of licensing slot machine operators and determined by dividing the costs of administering the slot machine operator licenses by the total number of slot machine operators licensed by the board.

Slot Machine Distributor: $200,000 initial license fee; $75,000 annual renewal fee.

Table Game Distributor: $5,000 initial license fee; $1,000 annual renewal fee.

Casino Operator: $225,000 license fee; $80,000 annual renewal fee plus an amount, set by the rules of the board, equal to the cost to the board of licensing casino operators and determined by dividing the costs of administering the casino operator licenses by the total number of casino operators licensed by the board. In addition, a casino operator shall pay an initial gaming table fee of $100,000 for the privilege to operate each gaming table for a period of 20 years as long as the casino operator is licensed. Each gaming table is also subject to an annual gaming table renewal fee of $1,000. The gaming table fees authorize the casino operator to conduct any authorized table game at the gaming table during the 20-year period.

Gambling Services Vendor: $2,000 annual fee.

Background Investigation Deposit: $200 fee.

Each fee must be paid annually by check or money order.

Application

1. Basic Identification Information
2. Ownership Structure
3. Licensing History
4. Financial History
5. Statement of Pre-Opening Cash

Other information will be necessary for the varying applications including but not limited to:

1. Stock Information
2. Applicant’s Charter
3. Financial Statements for Preceding Three Years
4. Tax Returns for a Period of Three Years
5. Copies of Insurance Policies Insuring Applicant or Premises

Any amount of ownership is required to be disclosed, and persons owning more than 10% of the company will be subject to a background investigation.

In addition, no waivers are offered for institutional investors, but institutional investors are treated as individuals so information required would be subject to the percentage of ownership.

There are no restrictions on political contributions for persons interested in applying for a license.

A copy of the application can be found on the Maine Gambling Control Board’s website by clickinghere.

Key Executive-Employee Application

The Key Executive-Employee Application or Background Questionnaire must be submitted for each person with a direct or indirect interest in the company, including officers, directors, equity security holders or shareholders of 10% or more, partners, general partners, limited partners, limited partners, trustees, beneficiaries, key executives and any other individuals who exert significant influence in the company. For publicly traded companies, it must submit recent shareholder lists from its transfer agent for all shares of common and preferred stock.

1. Basic Identification Information
2. Residence Data
3. Family/Social Data
4. Military Service Data
5. Educational Data
6. Titles and Offices Held
7. Criminal/Disciplinary History
8. Ownership Interest
9. Financial History

Licensed Employee Application

Any person employed by a slot machine operator, casino operator, slot machine distributor, table game distributor or gambling services vendor must be licensed to do so by the Maine Gambling Control Board.

A waiver may be granted in lieu of an employee license if applied for. Such application must be in writing and document facts sufficient to demonstrate that the public interest is not served by the licensing requirement. The Board shall consider the extent to which the employee has access to slot machine equipment, table game equipment, proceeds from slot machine activity or table game activity; or is engaged in security or surveillance at the slot machine facility or casino; or is engaged in other activities directly related to the gambling activity or proceeds. An employee’s access or activity in these areas is an indication that the public interest would not be served by granting the requested waiver.

It is possible to receive a temporary license if a new employee of a slot machine operator, casino operator, slot machine distributor, table game distributor or gambling services vendor has completed an employee license application and it has been received by the board.

1. Basic Identification Information
2. Residence Data
3. Family/Social Data
4. Military Service Data
5. Educational Data
6. Licensing Data
7. Criminal History

The Employee Application fee is $250 plus $49 to cover the FBI fingerprint-based background check. The annual renewal fee is $25.

Tax Clearance Form

The Tax Clearance Form is an additional document required for any applicant who has lived or is currently living in Maine.

In completing this form, an applicant authorizes Maine Revenue Services to release their tax history results to the Maine Gambling Control Board, their Designees and the Maine State Police.

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