“Yes on Question 1” Coalition Calls on Maine Stations to Pull Opponent’s Misleading Ad

Paid for by the Yes on Question 1 Committee, Donald Soctomah, Treasurer

FOR IMMEDIATE RELEASE

Contact: Yes on Question 1 Communications Office 207-699-7292

The “Yes on Question 1” campaign is asking all television and radio stations to pull the opponent’s television advertisement off the airwaves. A thorough legal review (attached) raises questions about the content of the ad and reveals several blatantly false statements.

“The misleading ad and negative tactics employed by the opponent of “Yes on 1” is standing in the way of jobs and economic growth,” said Passamaquoddy Tribal Governor William Nicholas. “These are dirty tricks and out of state contributors are giving $10,000 checks to fund our opponent’s deceptive tactics. It’s a fact.

Question 1 will fund programs like the Fund for a Healthy Maine, the Agricultural Fair Support Fund and education.” Governor Nicholas went on to say that he had asked Former Attorney General Michael Carpenter of Houlten, ME to review the proposed law. Carpenter said, “As I understand the content of the ad it seems to me to be misleading. The law would require licensing fees to the state of some $200,000 in 4 years and patrons would still have to pay state taxes on their winnings.” He added, “State law also requires a vote of the local City Council before engaging in any bingo games.”

The October 10, 2007 “Campaign Finance Report” filed with the Maine Commission on Governmental Ethics lists contributors from Texas, Vermont and Massachusetts. (Source: PAC Campaign Finance Report 2007, PAC Campaign Finance Report 2007 )

Yes on Question 1 is a state-wide coalition of citizens, elected officials, businesses and organizations who support The Passamaquoddy Tribe’s quest for economic self-reliance through a harness racing track with limited slot machines in Washington County. In addition to helping the Tribe, a harness racing track will also provide much needed revenue and hundreds of jobs to Washington County.

www.Yesfor1.com
Paid for by the Yes on Question 1 Committee, Donald Soctomah, Treasurer
October 18, 2007

Dear Station Manager:
Re: Casinos No! Misleading Voters

Casinos No! recently placed a 30-second television advertisement on your station regarding “Question 1” which will be on the November 6th ballot. After reviewing the ad, our legal counsel, supported by Former Attorney General Michael Carpenter of Houlton, agree that the ad Another Bad Deal for Maine is misleading and false.

We request that this ad be removed from the airwaves immediately. We further request that your legal counsel review the attached memorandum that clearly points out Maine Law supporting our request. If you have any questions, please contact us at (207) 699-7292.

Sincerely,
Governor William Nicholas Chief Richard Phillips-Doyle Passamaquoddy Tribal Leader Passamaquoddy Tribal Leader cc: Joseph H. Groff III

TEN FREE STREET
P.O. BOX 4510
PORTLAND, MAINE 04112-4510

JBGH website

Joseph H. Groff III (207) 775-7271 (Phone)
e-mail: Joseph H. Groff III (207) 775-7935 (Fax)

Over 50 Years of Service

October 18, 2007
Memorandum Re: Recent Casinos No! Television Advertisement Casino No! has recently run a television advertisement in which it makes the following statements:

1. The current ballot question is another “deceptive gambling proposal.”

2. Question 1 would allow high stakes beano games in any town in Washington County without the town’s approval and without a local vote.

3. All the revenue goes to the operators and not one penny to the local town and not one penny to the state.

4. While the proponents make huge profits, Maine gets nothing. This ad is misleading and false. The only change this ballot measure allows is for the Passamaquoddy Tribe to operate high stakes beano (with the approval of the city or town where it is to be located), in Washington County, not just on Tribal lands. The ballot measure also allows the Tribes in Maine to have a joint license. However, the licenses remain non-transferable, and under § 314 of the existing law, there cannot be more than one license to a federally recognized Tribe for the same period.

Jensen Baird
Gardner Henry
October 18, 2007
Page 2

This ballot measure does not allow for an increase in the amount of high stakes beano. It just allows the Passamaquoddys, or theoretically Penobscots, to have high stakes beano in Washington County. The Passamaquoddys plan to operate such a facility in Calais with the approval of the Town.

Beano was approved years ago by the Legislature with very strict rules and oversight by the Maine State Police. Subsequently, “high stakes” beano was approved by the Legislature, Title 17 § 314-A. All the other prior statutory restrictions and State Police rules concerning beano still apply to high stakes beano unless specifically stated otherwise by State statute (Title 17 § 314-A).

Under current Maine law, the Penobscots and the Passamaquoddys have had high stakes beano. The ballot initiative only makes changes in one subsection of Title 17 § 314-A, which is subsection 5. It reads:

5. Restrictions; Penalty. A licensee may not:

A. Transfer or assign the license issued under this section;

B. Operate or conduct a beano game or high stakes beano game on the same premises on the same date as another licensee; or

C. Conduct a game outside the Indian Territory of the licensed organization.

A licensee who violates this subsection commits a civil infraction for which a fine of not more than $1,000 may be adjudged.

Jensen Baird
Gardner Henry
October 18, 2007

Page 3

The only change to the high stakes beano law in this ballot measure is to add a new subsection 5-A, as follows:

5-A. Games on Non-Tribal Land

Notwithstanding subsection 5, upon proper application, the Chief of the State Police may issue a high stakes beano license to a federally recognized Indian Tribe to operate games on non-Tribal land in Washington County. The Chief of the State Police may issue a high stakes beano license in accordance with this section to all federally recognized Indian Tribes in the State jointly.

This ballot initiative does not change the other statutory restrictions. Section 313 still requires any organization desiring to conduct beano to apply to the Chief of the State Police for a license. The applicant must still list the name and address of the organization, and the location where it wants to conduct beano. Applications must still bear the consent of the town council or board of selectmen of the town or city where the beano would operate.

Additionally, when the State previously enacted § 314-A which allows high stakes beano, the law specifically limited the eligible organization, to be federally recognized Indian Tribes, and further prohibited the Chief of the Maine State Police from issuing more than one license to a federally recognized Tribe for the same time period. The most a licensee can have is 27 weekends. One license was issued to the Penobscots and one license was issued to the Passamaquoddys. Under § 314-A(8) the Tribes must report

Jensen Baird
Gardner Henry
October 18, 2007

Page 4

quarterly to the State. Under § 314-A(4), the annual license fee is $50,000 paid to the State.

The ballot initiative changes none of this, except that it allows the high stakes beano to be conducted on non-Indian land in Washington County, and it will now allow the Chief of the Maine State Police to grant a license to the Maine Tribes to have a joint license.

This ballot initiative does not change the State’s relationship to high stakes beano. For the Passamaquoddys or the Penobscots to have a license for high stakes beano, they still have to pay $50,000 to the State for a maximum of 27 weekends.

Secondly, the federally recognized Tribes in Maine, unlike most Indian Tribes in the country, are still subject to state and federal tax for profits earned. In this case, the Passamaquoddys, if they make any money on high stakes beano as part of the Racino effort, would be taxed by the State of Maine the same as any other business.

Additionally, if the Passamaquoddys buy land and construct a building in conjunction with the Racino effort, the host municipality would tax that facility the same as any other commercial property in the municipality.

In this ad, Casino No! is, at best, intellectually dishonest, or at worst, intentionally false and misleading.

Jensen Baird
Gardner Henry

October 18, 2007 Page 5 1. It is false that Question 1 would allow high stakes beano games in any Town in Washington County without the Town’s approval.

2. It is false that the revenue goes solely to the operators.

3. It is false that the proponents make huge profits and Maine gets nothing. High stakes beano already exists in Maine. The new law would simply allow the licensed high stakes beano game to be run and be coordinated with Racino effort. It does not allow for an expansion of high stakes beano. There still can only be one high stakes beano game for the same period of time.

The Casino No! ad is false, misleading and, sadly, not in keeping with the tradition of fair and honest Maine election campaigns.

Very truly yours,
Joseph H. Groff III
JHG/ph

Yes on Question 1 is a state-wide coalition of citizens, elected officials, businesses and organizations who support The Passamaquoddy Tribe's quest for economic self-reliance through a harness racing track with limited slot machines in Washington County. In addition to helping the Tribe, a harness racing track will also provide much needed revenue and hundreds of jobs to Washington County.

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October 2007 Reports

Last updated on October 20, 2007