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Gaming Firms Ready to Lobby in Maryland

16 January 2003

ANNAPOLIS, Maryland – As reported by the Associated Press: "National gambling companies are working to gain a foothold in Maryland, hiring lobbyists and plotting strategies to persuade Annapolis lawmakers to allow them to do business if the state legalizes slot machines.

"Last week Harrah's Entertainment Inc., which operates 26 casinos in 13 states, signed a contract with an Annapolis lobbying firm. IGT Inc., the world's largest slot machine manufacturer, has also hired local lobbyists. Both firms donated $4,000 to the campaign of Gov.-elect Robert Ehrlich, who has promised to expand gambling in the state.

"Two other players in the slots sweepstakes are Magna Entertainment Corp., the Canadian racing conglomerate that recently bought a controlling interest in Maryland's Pimlico and Laurel Park racetracks, and Centaur Inc., an Indiana casino company that has a deal to purchase Rosecroft Raceway in Prince George's County. Both companies have hired lobbyists in an effort to bring thousands of slot machines to state horse racing tracks, records show.

"…On Tuesday, though, an Ehrlich aide said officials would consider letting casino firms run slots at racetracks if track owners don't ante up enough money to the state.

"…Some national casino companies have expressed interest in forming partnerships with track owners or buying the tracks outright, while others have said they're waiting to see whether lawmakers seriously consider the possibility of casinos at other sites.

"…Last week the owners of five racetracks in Maryland told Ehrlich they were willing to pay $300 million up front but expected the state to reimburse the money by taking a reduced share of future profits -- a proposal quickly dismissed by many legislators…"

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