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MD Proposals “Less Than Ideal”

Governor Martin O’Malley of Maryland obviously did not want to come off as overly negative, but he could not deny the fact that the six proposals that were submitted for the five approved slot machine parlor locations across the state were not “ideal.” A week ago marked the deadline for all interested parties to submit proposals for sites in Allegany, Anne Arundel, Cecil, and Worcester counties, as well as the city of Baltimore. The Legislature approved the installation of over fifteen thousand slot terminals; the proposals didn’t cover half of those. Only one site –the one in Anne Arundel- received dueling bids. But that was not the only way in which the proposals were not up to snuff, O’Malley reported late last week.

Take, for example, the proposal submitted by Empire Rocky Gap LLC (a New York-based resort management firm) for the slots parlor at Rocky Gap State Park. Not only was Empire’s bid for a significantly smaller number of terminals than might have originally been hoped for, but the terms were –to put it as O’Malley did- less than ideal. The company is not interested unless the state agrees to amend the tax rate, one of the highest in the country. With revenues severely impacted by the economy, that obviously is not a palatable proposition for O’Malley and lawmakers.

The Empire proposal also did not include the five million dollar licensing fee (three million dollars per five hundred slot game terminals) that the Legislature had stated would be required. Empire’s representatives say that, unless the licensing fee is waived, the proposition just is not appealing to them. O’Malley stated that he hoped lawmakers and Empire might work together to “massage” the figures, making them more palatable to everyone involved.

Back to February 2009 Archive.