RSS 2.0 FeedVol. 3, No. 11, November 2007, Global Gaming Roundup
Gaming’s M&Ms
Maryland and Massachusetts head down the gaming path
The dominos continue to fall in the eastern part of the U.S.
Responding to difficult budget environments and evidence that state residents are playing elsewhere, the governors of Massachusetts and Maryland last month proposed legislation that would legalize gaming in their states.
Standing in the paddock of a horse breeding farm, Maryland Governor Martin O’Malley last month proposed legalizing slot machines at state racetracks in order to save the state’s racing industry, and also, by the way, to close some of a $1.7 billion state budget shortfall.
O’Malley’s plan would permit up to 9,500 slot machines—all owned by the state—at various locations throughout the state, mostly at racetracks. When fully operational, the governor expects it to generate up to $550 million for the state each year. He will designate $100 million of that to the tracks and $6 million to problem gambling treatment programs.
In Massachusetts, Governor Deval Patrick broke a summer of silence to propose three casino resorts, one in the state’s southeast corner, one in the west and a third in Boston.
The casinos, said the governor, would put $400 million into the treasury and generate 20,000 jobs. But he emphasized that he doesn’t want to transform “Massachusetts into Las Vegas.”
The money, from a 27 percent tax rate and the sale of casino licenses, would go for roads, infrastructure and property tax relief. At least 2.5 percent would be earmarked for public health, including battling gambling addiction. It would also fund Patrick’s dream projects, like the world’s largest stem cell bank and expanded commuter rail. It is considered by many politicians to be the last revenue source besides raising taxes.
Licenses, good for 10 years, would be sold for $200 million. Casinos could open within
five years, according to estimates.
Fiscal desperation seemed to be the principal reason behind the proposals in each state,
In Maryland, O’Malley is not the first governor to support slots. His predecessor, Robert Ehrlich, also supported slot parlors in the state but his proposals were shot down by a Democrat-controlled legislature. O’Malley, also a Democrat, believes he has the power to move the plan through the legislature.
“What we have tried to do from the first days of our administration is restore a spirit of civility and the ability to search for compromise and consensus,” O’Malley said.
“Certainly we’re all talked out on this, aren’t we? I don’t think there’s a single other issue to be debated or considered.”
O’Malley’s main opponent is House Speaker Michael E. Busch, who spearheaded the defeat of Ehrlich’s proposals. Busch doesn’t much like O’Malley’s plans either.
“My position on gambling has not changed,’’ Busch said in a statement. “I am not an advocate for slot machines. I don’t think we can expect Marylanders to step up to the plate and pay $2 billion in taxes while unjustly enriching racetrack owners.”
Massachusetts is also facing a huge budget crunch and the hundreds of millions of dollars in revenue that would be gained by approving the three casinos apparently convinced the previously anti-gaming Patrick.
Some economists feel that high price of the licenses could shut out many potential developers and possibly cap the casinos’ economic benefits.
Critics say that the governor relied heavily on gaming moguls such as Donald Trump, Charles Sarkis, owner of Wonderland Greyhound Park, Sheldon Adelson, CEO of Las Vegas Sands Corp. and representatives of Indian gaming tribes to provide information for the economic assessment of the benefits of casinos. These same people will bid for casino licenses.
Others who interested are Harrah’s Entertainment Inc., whose chairman, Gary Loveman, hails from Massachusetts, Steve Wynn and MGM Mirage.
Like Maryland, however, Patrick faces opposition.
State Rep. Daniel Bosley announced, “I am profoundly disappointed in this governor. There really isn’t new revenue here. It just gives him cover to spend more money.” Casinos make it harder for other businesses to operate near them, he alleges.
House Speaker Salvatore DiMasi’s office announced himself willing to look at Patrick’s proposals before taking a position.
Another senator commented, “Most of these developers are nothing more than glorified snake oil salesmen.”
Responding to difficult budget environments and evidence that state residents are playing elsewhere, the governors of Massachusetts and Maryland last month proposed legislation that would legalize gaming in their states.
Standing in the paddock of a horse breeding farm, Maryland Governor Martin O’Malley last month proposed legalizing slot machines at state racetracks in order to save the state’s racing industry, and also, by the way, to close some of a $1.7 billion state budget shortfall.
O’Malley’s plan would permit up to 9,500 slot machines—all owned by the state—at various locations throughout the state, mostly at racetracks. When fully operational, the governor expects it to generate up to $550 million for the state each year. He will designate $100 million of that to the tracks and $6 million to problem gambling treatment programs.
In Massachusetts, Governor Deval Patrick broke a summer of silence to propose three casino resorts, one in the state’s southeast corner, one in the west and a third in Boston.
The casinos, said the governor, would put $400 million into the treasury and generate 20,000 jobs. But he emphasized that he doesn’t want to transform “Massachusetts into Las Vegas.”
The money, from a 27 percent tax rate and the sale of casino licenses, would go for roads, infrastructure and property tax relief. At least 2.5 percent would be earmarked for public health, including battling gambling addiction. It would also fund Patrick’s dream projects, like the world’s largest stem cell bank and expanded commuter rail. It is considered by many politicians to be the last revenue source besides raising taxes.
Licenses, good for 10 years, would be sold for $200 million. Casinos could open within
five years, according to estimates.
Fiscal desperation seemed to be the principal reason behind the proposals in each state,
In Maryland, O’Malley is not the first governor to support slots. His predecessor, Robert Ehrlich, also supported slot parlors in the state but his proposals were shot down by a Democrat-controlled legislature. O’Malley, also a Democrat, believes he has the power to move the plan through the legislature.
“What we have tried to do from the first days of our administration is restore a spirit of civility and the ability to search for compromise and consensus,” O’Malley said.
“Certainly we’re all talked out on this, aren’t we? I don’t think there’s a single other issue to be debated or considered.”
O’Malley’s main opponent is House Speaker Michael E. Busch, who spearheaded the defeat of Ehrlich’s proposals. Busch doesn’t much like O’Malley’s plans either.
“My position on gambling has not changed,’’ Busch said in a statement. “I am not an advocate for slot machines. I don’t think we can expect Marylanders to step up to the plate and pay $2 billion in taxes while unjustly enriching racetrack owners.”
Massachusetts is also facing a huge budget crunch and the hundreds of millions of dollars in revenue that would be gained by approving the three casinos apparently convinced the previously anti-gaming Patrick.
Some economists feel that high price of the licenses could shut out many potential developers and possibly cap the casinos’ economic benefits.
Critics say that the governor relied heavily on gaming moguls such as Donald Trump, Charles Sarkis, owner of Wonderland Greyhound Park, Sheldon Adelson, CEO of Las Vegas Sands Corp. and representatives of Indian gaming tribes to provide information for the economic assessment of the benefits of casinos. These same people will bid for casino licenses.
Others who interested are Harrah’s Entertainment Inc., whose chairman, Gary Loveman, hails from Massachusetts, Steve Wynn and MGM Mirage.
Like Maryland, however, Patrick faces opposition.
State Rep. Daniel Bosley announced, “I am profoundly disappointed in this governor. There really isn’t new revenue here. It just gives him cover to spend more money.” Casinos make it harder for other businesses to operate near them, he alleges.
House Speaker Salvatore DiMasi’s office announced himself willing to look at Patrick’s proposals before taking a position.
Another senator commented, “Most of these developers are nothing more than glorified snake oil salesmen.”
Please login to post your comments.