In capitulating to Penn National’s implied threat to scuttle its $131 million racino development in Bangor, lawmakers have set a dangerous precedent regarding the proliferation of gambling in Maine.

Legislators on both sides of the aisle eyed additional revenue from Penn National’s successful Hollywood Slots operation to balance the biannual budget, but the gaming corporation – accustomed to dealing with the outstretched hand of government – slapped it back with a work stoppage.

This was an embarrassing episode for the Legislature, and chilling when considered against the push to spread casino gaming in Maine. Opponents of gambling, like us, believe its expansion would have a negative effect on residents and communities, as the allure of easy bucks would cause unforeseen ills.

This is exactly what happened in Augusta.

An intoxicating revenue stream presented by Hollywood Slots made lawmakers consider reneging on their agreement with Penn National, either by raising taxes on wagers or diverting funds Hollywood Slots contributes to the Bangor region, its host, into state coffers. Penn National responded predictably.

Now, Monday’s hasty retreat by the Legislature’s Appropriations Committee from taking more gambling funds leaves the state’s budget further unbalanced in the race to win two-thirds approval. At least Penn National has agreed to put its construction workers back on the job.

This sordid tale, however, paints the Maine Legislature as dishonest and greedy, and its surrender to the shutdown has displayed, with a cringe, the power of gambling money in government. This situation can only be exacerbated if gaming is allowed to spread throughout the state.

Maine shouldn’t create new, exploitable, revenue streams through gambling to support the state bureaucracy, when tax reform, efficient economic development and streamlining government spending are more important.

Tax reform, however, is an apparent victim of the budget impasse. Gov. John Baldacci said his preference is to stall reform until the budget is settled, which likely puts taxation legislation off until the next session, according to the Capitol News Service.

This delay was avoidable, but by chasing gambling dollars, the Legislature has put itself in the awkward position to disappoint taxpayers, and has given casino interests notice that their coinage has weight in Augusta.

In going against Penn National, lawmakers should have respected the old gambling axiom.

Nobody beats the house.