If you need proof that tough regulations are needed for Maine’s infant slot machine industry, look no further than the shenanigans that happened this Wednesday and Thursday in Augusta.

Shawn Scott, the owner of Bangor Raceway, is selling the track to his former rival, Penn National Gaming. Scott and his Capital Seven LLC have been warring with Penn National since voters approved the addition of slot machines at harness tracks in November. There have been lawsuits, countersuits and a nasty advertising campaign – launched by Scott and his allies – that a judge ordered stopped. Scott was part of an organized effort to keep slot machines from coming to Scarborough Downs, which had partnered with Penn.

Now the two have reached a deal. Penn will buy Scott’s stake in the Bangor track and in a similar facility in New York for an undisclosed amount.

Scott had been denied a license in New York to operate a racino, and his application in Maine was far from certain. Serious questions had been raised about his business practices, character and associates. With the deal, Scott recoups his investment, plus more we suspect, and Penn takes over the headaches and opportunities of bringing slots into a new market.

Gov. Baldacci has introduced legislation to more closely regulate slot machines. For that, he has been wrongly criticized.

Supporters of the harness racing industry accuse the governor of trying to kill slots, even though voters support them. The argument goes that the law approved by voters should not be changed. At least that’s sort of the argument.

Slot backers say the rules shouldn’t be tightened and, at the same time, they say the dates and deadlines in the current law should be relaxed. They want that part changed so Scarborough Downs will have more time to find a community willing to host a racino. So far, Westbrook, Saco and Scarborough residents have turned the track down.

While it’s true the governor is no friend of slot machines, he is right to insist that the industry be appropriately scrutinized.

The proposed regulations were developed after researching how other states with gambling handled the industry and have several provisions that make sure that harness racers aren’t just stalking horses for big-time gambling.

Here’s what the governor wants to do: establish a gambling control board to oversee racinos; limit slot machines to 1,500 per racino; ensure that players have a reasonable chance to win and that the machines aren’t rigged; and protect the state financially from the negative economic impact possible from racinos. In addition, the governor’s bill would include law enforcement in gambling oversight, prevent felons from getting a racing license and require tracks with slots to hold live races.

Perhaps a reasonable compromise would be to set a new deadline for Scarborough Downs’ search for a new home while also imposing the governor’s strict rules. While not a perfect solution, it at least might bridge the river of ill will flowing around the issue.

Penn National might make a better corporate citizen than Capital Seven. We don’t know. But we don’t think the state should gamble on the company’s good intentions.

Tough regulations would protect residents of the state without doing real harm to either the harness racing industry or the gambling business. The governor’s plan should be supported.


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