Advertisement
You are here: Sun HomeCollectionsOcean Downs

Not Quite A Jackpot

Our View: Granting Ocean Downs' Slots License Is A Milestone

Let's Hope It Inspires Action At The More Lucrative Casino Sites Where The Approval Process Is Lagging

September 24, 2009

The approval Wednesday of the first slot machine gambling license in Maryland is more than just an important milestone in the long-running debate about gambling in the state. The grant of a license for Ocean Downs is also the first promising sign we've seen in more than a year for the state's coffers. A temporary facility with as many as 800 machines could be running in time for next summer's tourist season in Ocean City. That may not make much of a dent in a $2 billion budget shortfall, but it helps.

The Ocean City facility has also been blissfully free of the ethical, financial and political problems that have stymied slots development elsewhere in Maryland. The Ocean Downs site is being built by William M. Rickman Jr. of Montgomery County, who has experience in operating a successful racetrack-casino in Delaware, and he has gotten the approval of local elected officials.

It's hard to say how big a boost the first legal slots will provide. Initial estimates projected the full 15,000 machines authorized statewide would eventually produce about $600 million a year in tax revenue. That's $40,000 per machine. It's unclear in this economy whether Ocean Downs could come close to that level. And Mr. Rickman's plans for the site call for it to eventually grow to 1,500 machines, not the full 2,500 authorized for Worcester County.


Advertisement

Even so, the license for Ocean Downs counts as a major accomplishment compared to the morass that is the slots program in the rest of the state. One of the locations, Rocky Gap, got no bidders. The slots commission could soon approve a license for a Cecil County site, though the developer there, Penn National Gaming Inc., has only paid a licensing fee for 500 machines so far and doesn't anticipate going beyond 1,500, leaving it 1,000 short of capacity. Baltimore officials have been gung-ho about slots - in part because of a special deal they carved out that will provide the city with cash to reduce property taxes. But that site's development hasn't been without controversy: The sole bidder, the Baltimore City Entertainment Group, benefited from an after-the-fact land swap; the Baltimore Development Corp. approved no-bid demolition contracts for the site; and the casino developers have yet to come forward with the full licensing fee for all the 3,750 machines they hope to build.

Baltimore Sun Articles
|