Penn National threatens to halt slots construction

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Anonymous
Penn National threatens to halt slots construction

By Dawn Gagnon
Tuesday, May 08, 2007 - Bangor Daily News

BANGOR - A legislative push to increase the state's share of revenues from Hollywood Slots at Bangor could scuttle the company's $131 million project in the city.

Representatives of Penn National Gaming Inc., the Bangor facility's parent company, confirmed Monday that the possibility of losing 10 percent of current revenues could force the company to delay, scale back, or scrap altogether plans to build a gaming and hotel complex across Main Street from Bass Park.

[url=http://bangordailynews.com/news/t/news.aspx?articleid=149580&zoneid=500]...

Al Greenlaw
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Penn National threatens to halt slots construction

Blackmail!

Al

Cigarsmoker
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Blackmail???

I disagree.

This is about the State following through on their end of the deal that was agreed upon by both the State and Penn National. If this was a business reneging on a contract, this would end up in court. Why should the State be able to modify their end of the deal?

Anonymous
Penn National threatens to halt slots construction

Reaction to the State's extortion policies.

Tom C
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Penn National threatens to halt slots construction

Yeah, right, like they are really going to pull out of a goldmine like that.

Pishaw.

rurally scorned
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Penn National threatens to halt slots construction

The state of Maine should be taken to court, take that bastard Baldacci to jail for crimes against the people

Ray Richardson
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Penn National threatens to halt slots construction

Billy Childs, owner of Race Me Stables in Westbrook, will appear tomorrow morning at 8:20am to talk about this issue. Childs has a long history in the harness racing industry as well as being involved in helping bring the slot machine / harness racing marriage about.

Anonymous
Penn National threatens to halt slots construction

WOW THAT IS A SCOOP!!!

Billy is Ken's partner (ALTERATIVE BIZ) on on the WGAN Morning Show.

Mike Lange
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Penn National threatens to halt slots construction

According to Channel 2 at 5 p.m., they've stopped construction already.

No, it's not blackmail. It's an upraised middle finger to the Appropriations Committee.

And yes, I believe they will dump the project if the tax package goes through.

Mainelion
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Penn National threatens to halt slots construction

They should dump the project if this goes through. There is absolutely no end to the greed in Augusta. If there is one dollar anywhere in the state, they think it should belong to them. They made the deal and now they want to go back on it. It's no wonder that no businesses want to invest in Maine. The rules change every hour, and always for the benefit of the Kremlin.

Roger Ek
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Penn National threatens to halt slots construction

The builders should get on board with rural Maine and work to defeat this budget. If the school consolidation goes down and the gaming tax increase goes down maybe we can bring a sane budget to a vote.

Earl Nickerson . Jr
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Penn National threatens to halt slots construction

I agree with cigarsmoker and Mainelion. If the Kremlin is gonna change the deal every budget cycle they should cut their losses and flee this blackhole. :evil:

Mike G
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Penn National threatens to halt slots construction

[quote="Paul Mattson"]Reaction to the State's extortion policies.[/quote]

I find our state and county government extortionists on a regular basis. They have become the NEW MOB in so many ways.

If the state could get a knee-capping provision in there somehow, they would surely do so.

Editor
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Penn National threatens to halt slots construction

May 8, 2007
FOR IMMEDIATE RELEASE

PENN NATIONAL’S EMPTY THREATS
SHOW THE GREEDY SIDE OF GAMBLING

PORTLAND – According to an article in today’s Bangor Daily News, Penn National, the corporate gambling giant that operates Hollywood Slots in Bangor, is threatening to scale back its planned expansion or cancel it altogether if the Legislature increases the share of revenues paid to the state.

The article said the Legislature is considering a proposal to increase the state share of the gross slot machine income from 1 percent to 2 percent and reducing the amount of money set aside as the "players’ share," or the amount of bets that gets paid back in winnings, from 93 percent to 92 percent. Those changes aim to generate $5.4 million more for the state in the first year of the two-year budget and $8.4 million in the second year.

But Penn National officials object to the plan, saying the slots casino would not be profitable if the state increased its share.

“This is really hard to believe,” said Dennis Bailey, executive director of CasinosNO! “The article didn’t give any revenue figures, but Penn National made nearly $11 million in net revenue from Hollywood Slots in just the first three months of this year. If they can’t operate a profitable casino with annual revenues of more than $50 million, maybe they are in the wrong business.”

Penn National made the same threats three years ago when the state was negotiating the revenue split between the corporation and the state. Furthermore, Bailey said, the corporation as a whole earned $600 million in revenue for the period ending Mach 31. Penn National is the third largest publicly traded gambling corporation in the country, behind Harrah’s/Caesar’s and MGM Mirage/Mandalay Bay casinos, with revenues of over $2 billion in 2004.

“The state is getting fleeced just like the players at Hollywood Slots,” Bailey said. “Apparently, Penn National would rather see taxes increased on homeowners and the elderly rather than giving up a tiny slice of their billions in return for their risk-free monoploly.”

Contact: Dennis Bailey, 207-347-6077

Dennis Bailey
President
Savvy, Inc.
57 Exchange St.
Suite 205
Portland, ME 04101

(207) 347-6077
(207) 221-1076 fax
www.savvy-inc.com

EJ
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Penn National threatens to halt slots construction

Savvy-inc.com = = casinsNO.

They are the first firm to take money from them.

Also nice to see they are spokesmen for Maine Development Foundation. it appears they do not care about Maine Business.

WOW FAME too, Interesting.

Ask Bangor Savings if they like you being the spokesmen for stopping an already approved project in Bangor.

Penn National, will pack up and leave, cut their losses.

EJ

Chairman
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Penn National threatens to halt slots construction

[quote]“...Penn National made nearly $11 million in net revenue from Hollywood Slots in just the first three months of this year. If they can’t operate a profitable casino with annual revenues of more than $50 million, maybe they are in the wrong business.”[/quote]

So now the esteemed-in-his-own-mind Dennis Bailey is dictating how much a privately held business can/cannot earn?

What a moron.

Editor
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Penn National threatens to halt slots construction

Company threatens to halt gaming expansion
Wednesday, May 9, 2007

According to Penn spokesman Eric Schippers, an additional 1 percent tax on gross revenue would increase the company's tax burden from 51 percent of each dollar of net revenue to 61 percent. "Sixty-one percent would make this business unprofitable," he said.

[url=http://pressherald.mainetoday.com/news/state/070509woodslots.html]source...

Starboard
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Penn National threatens to halt slots construction

Welcome to Maine, Penn National.

You might as well get used to it, if you work or live in Maine, your taxes go up every year, or every time the local or state government feels like raising your taxes. It's just the way it is, and if you can't come to terms with that fact then perhaps this is the perfect time to step back and do rethink about laying out a mammoth capital investment.

Even if they win this stare-down, they won't win the next one once their facility is built and the investment is set in bricks and mortar.

Lenny
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Penn National threatens to halt slots construction

[quote]“Apparently, Penn National would rather see taxes increased on homeowners and the elderly rather than giving up a tiny slice of their billions in return for their risk-free monoploly.”
[/quote]

Mr Bailey plays the class envy game to a tee. Where is his outrage about the Legislature constantly raising taxes on homeowners and the elderly? Unreal.

samadams
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Penn National threatens to halt slots construction

Beth Edmonds - (D) Freeport
Glen Cummings - (D) Portland

The Portland cabal trying to stick it to Bangor? One would think Faircloth would be screaming bloody murder given the City of Bangor may well end up with 3% of nothing.

How much did you get for selling out to the Portland sphincters, Sean?

Cigarsmoker
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Mohegan Sun next week

I am headed there for a couple of days. Why in the world would I want to stay and spend my money here in Maine. The reason I am going is to see Steely Dan in concert. But, I will also be sitting at the tables spending my money gambling. I go into gambling knowing full well it is entertainment, and I will lose money. I know this and enjoy the fun. I will also be staying at a hotel in the area, and will be spending my money there on lodging, and will of course be spending money on restaurants. It is a shame I will have to drive 5.5 hours to do all this. It is a shame that my money will be leaving the state and ending up in Connecticut. But it is the only option I have to see Steely Dan, and to play the card games I enjoy. Now, Maine is doing it's best to run another business out of the state. Mr. Fischer thinks that someone else will step up to the plate, but really, who is going to be able to spend 131 million on a facility? No one, and most certainly not the tribes.

So, next week, when I am enjoying myself, having a cocktail and listening to a stupendous band, followed by some Krispy Kremes and table gaming, I will not shed a single tear for Maine. However, while on the drive back home and I see the bridge to Maine it is possible a tear will be shed as I watch the economy of Maine continue it's freefall to poverty and nowhere, as more and more businesses go belly up, and more and more jobs leave the state.

towncrier
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CITY OF BANGOR NOT HAPPY

Heard a cut on the radio News that the City Mayor was not PLEASED with the States Decision go back on their agreement. Maybe the City of Bangor should reaccess The Business Ol Baldie has within the city limits and set a new TAX RATE on it, something to equal the amount in any loss the city might get hit with if Penn National leaves.

In reality I know that can't happen, but a nice thought.

Now I see how the union MESA got their idea of cutting off their nose to spite their face with the non union folks. It came from the bedmates, THE STATE! :shock:

Towncrier

Bruce Libby
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Penn National threatens to halt slots construction

After having my inaugural trip to H Slots Monday night
at this point I can say for me there are better forms of entertainment
and probably less expensive also.

After the wife and I played for a short time and had some fun
we left not richer! I find it interesting that this is entertaining vs. just addicting,
but to each their own. I also cannot envision doubling or more the amount of
these things! It is quite apparent why these are the money makers though!

I notice that construction on the new facility was at a point where I believe a company
could cut their loses and pull out. A piece of land with some work completed and
in that area with a racino allowed etc. probably would appeal to someone.

All that aside did anyone think for a minute that the Leg. and JB would do anything different?
What better way to continue to defeat expansion i.e. tribes proposal then to show
the state will bleed it dry!

The leg. has no compulsion to do anything along the lines of upholding an agreement
when it is incapable of coming up with any reasonable attempts to solver our fiscal mess!

I did notice the pictures of the big winners on wall, of course , none indicated the %
paid in taxes on thier winnings :!:

Moving Forward
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Penn National threatens to halt slots construction

You should have seen the protest they had at the capital this afternoon. As I was working in the Cross Office Building, while countless other pro-MSEA slackers were surfing the internet and other wasteful activities, a long line parade of horse trailers and construction vehicles began rolling around the state house blowing their horns and basically paralyzing the entire area for about 30 minutes. It was certainly quite a statement.

Dan Billings
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Penn National threatens to halt slots construction

I was against the Democrats' money grab until hearing Penn National's threats. If it will run the racino out of state, I am all for the tax hike.

cp1800
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Penn National threatens to halt slots construction

My problem with the whole situation is that most of the people that support this opertion are low income or on welfare and can not afford to gamble. The second problem that I have is why do we allow gambling to be conducted in our state by a company that is from Pennslyvinia and will not keep their profits within the state of Maine. The Native American tribes of our state have tried and are still trying to go into this business (with proper management) but Govenor Baldtaxi continues to oppose them. At least they are residents of the state of Maine and their Gambling opperations would be a company that
resides in the State Of Maine. Why should we send the profits of gambling to Pennslyvinia. Rember that your tax dollars that are being invested on the welfare system are most likely being wasted at these gambling organizations, and we should try to keep the money in our own state. Speaking of welfare, I know of a situation where a husband and wife both work and one of their children needs glasses. YOU GUESSED IT Maine Care is picking the bill. However these people have to communte about fifty miles to see the eye doctor. NOT A PROBLEM, MAINE CARE IS PAYING THEM MILEAGE!!

John3:16
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Penn National threatens to halt slots construction

I am not a supporter of Penn National or of gambling in general. I opposed the slots/racino issue. Yet, the state made a promise to Penn National and is now breaking their word (democrats breaking their word...surprise, surprise! Whoodathunkit!). Penn National should play hardball with the state. The property they've invested in should be developed as planned, per the original agreement, or they should pack up and let the undeveloped land just sit and grow in value (or sell it for a profit). The blight in Bangor this will cause is significant, as will be the loss of revenue to the state, the loss of current jobs at Penn National, and the loss of constructions jobs. Only a liberal would see this as a good move - but, unfortunately, Maine is overpopulated with liberals - who are all exceedingly unsubstantive thinkers. All.

Giving the slots to the Indians is as bad an idea, no, it's a worse idea than having Penn National run it. Maine Indians have failed in 100% of every government funded or supported project they have had, but my memory goes back only 50 plus years. If the PIN RX scandal ever truly sees the light of day in court, the board of directors of PIN RX should go to jail, as felons. That board is composed of all or almost all leaders of the Penobscots.

Maine government should try something with which it is unfamiliar: it should keep its word.

Anonymous
Penn National threatens to halt slots construction

Potential change in slot machine revenue formula stirs protest
By Francis X. Quinn, Associated Press Writer | May 9, 2007

AUGUSTA, Maine --Penn National Gaming Inc.'s decision to interrupt work on its $131 million Hollywood Slots facility was followed Wednesday by a noisy demonstration protesting legislative discussions about increasing the state's take.

SNIP
Veteran Democratic Sen. John Martin of Eagle Lake shrugged off Penn National's complaint.

"I thought maybe we could transfer the license to the Native Americans," Martin said with a grin,

Penn National's decision to stop work came as preparations on a permanent facility were nearly complete, with construction expected to begin soon.

[url=http://www.boston.com/news/local/maine/articles/2007/05/09/potential_cha...

Anonymous
Penn National threatens to halt slots construction

[b]How to chase gambling out of Bangor[/b]
Thursday, May 10, 2007

We don't like gambling. When the proposal to allow slot machines into Bangor was first floated, we didn't want to see it happen.

It was a bad idea then and it's still a bad idea. While gambling may spark economic development, there are lots of other ways to spur economic activity in our state that don't include people losing their hard-earned dollars on the elusive promise of winning a jackpot.

[url=http://kennebecjournal.mainetoday.com/view/columns/3889647.html]source[/...

Al Greenlaw
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Penn National threatens to halt slots construction

I agree with Dan!

Al

Mike Lange
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Penn National threatens to halt slots construction

[quote]...most of the people that support this opertion are low income or on welfare and can not afford to gamble. [/quote]

And you can prove this? Most of the Hollywood Slots patrons I know are retirees with above-average incomes.

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