Cash cow finally ambled into Maryland

by David Grand
November 19, 2008

After grazing in adjoining states, spreading wealth (and joy) to its inhabitants in return for their hospitality, it came here on Election Day to give us a helping hand.

Its arrival was welcomed enthusiastically as it crossed the state line by most Marylanders, particularly by those earning a living in the horse-racing industry, throwing grain and flowers in its path.

And, while it will probably take up to two years before we can fully realize its numerous benefits, we can look forward to the day when Maryland is no longer a major source of slots revenue for those other greedy states, what with over $600 million being poured into their slots annually by Marylanders.

The shame of it all, is that had the slots issue not became a political football, what with the top dogs in the Annapolis being unable or unwilling to reach a compromise on a slots bill, the state wouldn't be in the financial crunch it's in. But better late than never.

One need only look at the Quaker State as an example of how it was done the right way and with a minimum of "sound and fury." That was due in large part for their having, smartly so, included in the "Race Horse Development and Gaming Act" provisions for tax-wage and property-tax relief, including giving local governments "a piece of the pie." (I'd caution Maryland taxpayers, however, not to hold their breath waiting to receive the same or similar tax relief from Annapolis, albeit we're just as deserving of a tax break.)

Penn's report card, covering the period between November 14, 2006 when the first of seven casinos opened and Sept. 30 of this year, got high marks, indeed.

The best proof of that is the more than $1.8 billion in revenues the state has collected from those casinos in that timeframe. And that figure is expected to more than double after seven more, including two free-standing casinos in Philadelphia, open. That'll give 'em 61,000 money-guzzling slots, or four times as many as we're slated to have. But "a half loaf (or a quarter in our case) is better than none."

In addition to the monies allocated for property-tax relief statewide, $288 million went to the racetracks so as to enable them to offer bigger purses and attract higher caliber horses; the casinos have created 6,500 jobs, and brought additional employment and revenue to nearby towns; and with a large sum to school districts.

Yes, there is a downside to this bonanza in the human toll its taken among avid slots players, who've lost over $2.4 billion at the casinos, mainly by those who can ill-afford to lose money playing any game of chance, let alone slots.

Regrettable as that is, it only confirms what I've always believed about gamblers: that they can't be prevented from gambling-however unwisely-if they choose to (especially not compulsive or pathological gamblers), any more than die-hard smokers (pun intended) can be forced to quit, though they're aware it's an unhealthy and expensive habit.

Only once in our history was an attempt made to control people's freedom of choice as to how they spend their leisure time and money. And that was when alcoholic drinks were outlawed by the so-called Volstead Act between 1920 and 1933, which had the unintended consequences of people drinking more than ever and giving rise to organized crime, and proved to be as futile as trying to stop ants from invading picnic baskets.