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Slot license bids off to slow start in Maryland

ANNAPOLIS, Maryland -- As reported by The (Baltimore) Sun: "Prospects for a near-term gambling windfall in Maryland fizzled yesterday as state officials acknowledged that two of six bidders for gambling licenses failed to submit millions of dollars in legally required fees and that Baltimore's applicant is proposing a small, 500-machine parlor, not a 3,750-machine one.

"After accounting for the incomplete proposals for casinos at Laurel Park racetrack and Rocky Gap State Park - which could doom those applications - and the shrunken bid for Baltimore, the total number of slot machines proposed this week was just 6,550, out of 15,000 authorized.

"Lawmakers in Annapolis reacted with disappointment as bad news trickled out during the day. After years of debate, Maryland voters approved a constitutional amendment in November legalizing slot machine gambling, and state officials have been counting on an estimated $600 million in annual slots-related tax revenue to support schools and close a yawning budget gap.

"Senate President Thomas V. Mike Miller denounced the 'egregious' behavior of companies that neglected to submit $22.5 million in required license fees, or $3 million per 500 machines proposed. State officials were counting on the money this year.

"But he also blamed the lackluster bidding on the poor economy, high capital investments required under state law and a 67 percent tax rate, which combine to give gambling operators what he called 'the smallest amount of return in the U.S.'

"On Monday, the state received six bids for five eligible gambling sites in Baltimore and in Anne Arundel, Cecil, Worcester and Allegany counties. The incomplete bids were made by the Maryland Jockey Club, which proposed a 3,000-machine casino at its Laurel Park racetrack, and by Empire Rocky Gap LLC, which envisions a 750-machine casino at the state park in Western Maryland..."

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