Voters in Maine will be asked next month whether to allow the Passamaquoddy Tribe to develop a racino on land in Washington County, the easternmost county in the United States. The tribe want to build a racetrack with a 1,500 slot machine facility in the Calais area and asked University of Maine School of Economics associate professor Todd Gabe to conduct a feasibility study. The researcher was not compensated for his work and the study built on his previous work into casinos and the tourism industry.

Gabe estimates that the Passamaquoddy could generate between US$11.9 and US$13 million in slots revenue, but was unable to determine whether this would be from new money coming into the region rather than redistribution of cash already present in the economy. For this, he says, there would need to be a more detailed study of racino patrons. The report is intended to give an idea of the amount a racino should generate if people in Maine and visitors to the state gambled at the national average.

The research assumes that a racino would attract people within a two-and-a-half hours drive of Calais and include people from New Brunswick across the border in Canada. The Passamaquoddy River, now known as the St Croix River, serves as the USA/Canada border and divided the Passamaquoddy homeland around 200 years ago. The city of Calais has fewer than 4,000 residents but is located at a busy US-Canada border crossing. It is also a primary shopping centre for the region.

Gabe commented, "The projected impact of $11.9 million to $13 million in slot machine revenue is actually larger than the total sales generated by restaurants and hotels in the Calais area." By comparison, slot machine revenues at Hollywood Slots are equivalent to less than 20% of total hospitality sales in the Bangor region.

Following the results of the research, the Passamaquoddy Tribe is certain that a racino would benefit the local economy in general and the tribal economy in particular. The 2000 National Census revealed that per capita income for the reservation was US$10,808 and that 23% of families were below the poverty line. (E-10.04.07)

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