Maryland lawmakers are grappling with a $1.7 million deficit, and the debate over slot machines has once again begun to stir emotions in Annapolis. Those opposed to slot machines will not sit down without a fight - and they shouldn't. At the heart of all good government is robust, healthy debate.
This past summer, Gov. Martin O'Malley dispatched me to racetracks in Delaware, West Virginia and Pennsylvania to examine how slots have affected horse racing. My goal was to evaluate the situation firsthand, and to separate fact from fiction.
One major misconception about slot machines is that revenues from slots are overblown. Pennsylvania has had slots for less than a year, yet the state's cut of revenue from licensing fees and 10,000 slot machines recently topped $1 billion. For the past decade, Delaware and West Virginia have used slots revenue to subsidize schools, roads and other needs. In 2006, Marylanders playing slots contributed about $150 million to the budgets of those states.
FOR THE RECORD - A Commentary article yesterday gave an incorrect figure for Maryland's budget deficit. The shortfall is $1.7 billion. The Sun regrets the error.
Opponents argue that slots are a regressive tax on the poor. Unlike the lottery, which is available at any neighborhood store, slots parlors are typically destination locations. Visitors to Delaware Park get an immediate sense of the target market and the typical customer. The site includes restaurants, a golf course and a banquet facility. The predominant demographic I encountered at each location was middle-class, white retirees.
At Charles Town Races and Slots in West Virginia, more than a quarter of the revenue comes from visitors from two of the nation's wealthiest counties: Montgomery in Maryland and Fairfax in Virginia. Slots parlors succeed because people with disposable income visit them to eat a meal, see a show, play the slots and shop. Retirees from around Maryland board buses regularly to travel to slots locations.
Some opponents have argued that slots would create menial, low-wage jobs. Of the approximately 3,000 employees at three racetrack slots sites in Delaware, the vast majority earn between $10 and $20 per hour, plus benefits. Many are union jobs.
Officials at slots locations and in the jurisdictions that host them believe this job creation is one reason that, despite initial concerns, crime has not increased. In Jefferson County, W.Va., home to Charles Town, the crime rate has dropped significantly since slots were introduced, the West Virginia State Police Web site shows. Dover County, Del., home to Dover Downs, saw a drop in the violent crime rate following slots. Concerns about crime should not be ignored, but the experiences of our neighbors show it is possible to introduce slots without increasing crime.
