State will need to ante up for casino

OXFORD - The Maine State Gambling Control Board (GCB) says that the casino will cost the state about $1.8 million in startup costs.

"We knew realistically that at some point in time we were going to have to face a second facility," said Bob Welch, the outgoing director of the GCB.

Welch outlined a variety of costs to the state that will be associated with the casino, although he also said that they were subject to change.

"We are envisioning as many as eight public safety inspectors to be added, a state police detective, a state Bureau of Identification position, and a clerk," said Welch.

The additional payroll costs will be a large chunk of the outlay, but there are also other considerations, including the drafting of new rules and regulations, the payment of Scientific Games, a company that will monitor the slot machines to ensure fairness and accuracy.

"I projected it out into 2012. The addition of inspectors will be huge," said Welch. "It will probably be over half a million dollars. Scientific Games will be monitoring another 1,000 [to] 1,500 slot machines. They'll have to be paid."

In response to a question, he said that Scientific Games would only monitor the slot machines, not the table games.

"There is no electronic monitoring of table games," said Welch. "That's more of an audit function."

The costs that the GCB is worried about is not the final word in public expenses, said Welch.

"This does not estimate out cost for things like state police patrols or county patrols or local patrols," said Welch. "These are just matters that are under the Gambling Control Board responsibilities, the hiring of people for the regulations."

Welch tied the expenses to a timeline that was in line with a timeline BBE has released, but he cautioned that it is only an estimate.

"This could be accelerated or slowed down," he said, "whatever."

According to the timeline, in December 2010, state personnel will be trained in writing rules for table games, which will be introduced to the state for the first time.

The opening of the facility was estimated to come between July and December of 2011. Close to the opening date would be the licensing of employees.

"There's no timetable," said Welch. "It doesn't take a month, it doesn't take six weeks, it doesn't take eight weeks. It takes what it takes, and you don't issue a license one second before you're comfortable with the people that are there."

GBC chair George McHale said that the acquisition of the funds would be a political challenge.

"Remember, these expenses are not there," said McHale. "They're not waiting in a, we don't have a draw-down account. These are going to have to be additional allocations to us to start up with in 2011."

Public Safety Commissioner Anne Jordan said that the state government would be very likely to cough up the capital needed to open the casino's doors.

"I fully anticipate that the legislature will understand that you can't open these facilities without appropriate staff," said Jordan. "I think it's just going to be a matter of education, it's going to be a matter of setting up plans, its going to be a matter of figuring out how we're going to pay for this."

Jordan said that the casino will not automatically generate revenues to provide for the GBC's expanded oversight responsibilities.

"There's a common misconception out there, even the law says that we're supposed to get the 3 percent," said Jordan. "We don't. We have to get in line and fight for the general fund dollars just like everyone else ... that's going to be an issue."

Black Bear Entertainment introduced the board to Dan Walker, an attorney with Prety Flaherty, who will be working with the GBC throughout the process.