PORTLAND (AP) – The costs of having 1,500 slot machines at a horse track would outweigh the proceeds to the state and be a drain on the state’s general fund, according to a state analysis.

The Office of Fiscal Programming and Policy Review’s report concluded that slot machine revenues designated for the general fund would fall short of covering administration costs, law enforcement costs and a loss of lottery proceeds.

The analysis shows that, overall, the state would collect more money from slots than it spends. But only a small portion of the $26 million the state would get in future years would go to the general fund because the law requires most of the money to go to racing purses and county fairs, prescription drug cost assistance and scholarships.

The analysis concludes that the law allowing “racinos,” an industry term for horse tracks with slot machines, could cost the state nearly $1 million this fiscal year and $17.2 million by 2006-2007.

That is one reason Gov. John Baldacci has moved to delay the effective date of the law approved by Mainers in a Nov. 4 referendum allowing slot machines at Bangor Historic Raceway and Scarborough Downs.

Capital Seven LLC, the company that wants to bring slot machines to Bangor Historic Raceway, contends the benefits of a racino extend beyond slot machine revenues.

A study for the company by the University of Maine says an additional $57.8 million in sales will be generated from a racino.

The study was based on information provided by Capital Seven.

The company said a racino would create $5.1 million in wages and salaries for workers. The city of Bangor would also get $30 million in capital improvements to its track and grandstand and a share of slot machines revenues.

“In addition to actual dollars being raised in taxes, we will be generating money to enhance the purses at the tracks, support agricultural fairs, providing pharmaceutical benefits to elders and scholarships to help students,” said Capital Seven spokeswoman Christen Graham.

AP-ES-12-09-03 1310EST