Lawmakers Debate Gambling Changes In Special Session

BERLIN — State lawmakers opened a special session on expanded gambling in Maryland yesterday, and despite the gnashing of teeth in some areas around the state, the bill under consideration appears to have many positives for Worcester County and the Casino at Ocean Downs.

The Maryland General Assembly is considering proposed legislation aimed at expanding the state’s nascent casino gambling programs. Among the issues up for debate is an expansion to table games, for example, and the addition of a sixth approved site in Prince George’s County. The legislation also includes the creation of a State Lottery and Gaming Control Commission, an appointed body which would hold purview on all gambling policies.

The State Senate convened yesterday, with the House of Delegates, where the battle is expected to be waged, arriving in Annapolis today. Any changes to the state’s casino gambling policies would have to be approved by the state voters through the referendum process. The General Assembly is on the clock to get the bill introduced by Gov. Martin O’Malley passed during the special session in order to get the referendum on the ballot for the November general election.

The battle will likely be waged in the big jurisdictions in the center of the state, where the recently opened Maryland Live casino in Anne Arundel County has raised concerns about another major facility not far away in Prince George’s County, likely the National Harbor project proposed by gambling bigwig MGM. Also recently awarded was a license to Caesars for a casino in downtown Baltimore.

While it lacks the size and stature of the big casinos in the center of the state, no less important is the Casino at Ocean Downs in Worcester County, and the legislation proposed by the governor appears to include language that will help the facility thrive and the community to reap the revenue benefits.

According to Delegate Mike McDermott, the proposed bill includes provisions that will ensure more of the revenue collected at Ocean Downs stays in the area, while increasing the take for the local casino and providing advantages to make sure it remains a successful enterprise.

“Going into this, I feel really good about it for a change,” he said. “I feel like we were really able to get somewhere with the governor and there are some concessions in this bill we argued for that will really help us locally.”

For example, the legislation includes a $200,000 annual grant to Worcester County in addition to the already collected local impact grants received by the local jurisdiction. The Casino at Ocean Downs would see its annual share of the revenue increase from 33 percent to 43 percent, which could help the local facility get into the black. Casino owner William Rickman, Jr. has said Ocean Downs continues to lose money.

The increase from 33 percent to 43 percent comes with some provisions. The increase only remains in effect as long as the number of machines at Ocean Downs stays under 1,000. Currently, there are 800 at the casino. Ocean Downs would also be required to reinvest 2.5 percent of the proceeds in capital improvements.

Locally, concerns were raised during the regular session when the bill under consideration included relaxing many of the provisions on Ocean Downs aimed at protecting the business interests in nearby Ocean City. However, the governor’s bill introduced this week keeps nearly all of those restrictions in place with the exception of loosening some of the restrictions on live entertainment under certain conditions.

“Almost all of the caveats for Ocean Downs remain in place,” said McDermott. “The only thing that was relaxed somewhat in the bill was the entertainment provision. If it’s approved as it stands now, they would be able to have live entertainment on a limited basis for parties and special occasions.”

Another provision in the bill would require the big casinos in the center of the state to purchase their own machines. However, at Ocean Downs and a future casino site in Western Maryland, the state would continue to own the terminals, reducing the fiscal burden on the smaller facilities.

Yet another provision in the bill would allow all of the casinos in Maryland to be open 24 hours a day, seven days a week all year long. However, McDermott said he didn’t envision Ocean Downs taking advantage of that.

“That’s a discretionary issue,” he said. “There may be days of the year, or times of the year when that’s profitable, but it’s a business decision and they’ll do what’s right for business. I can’t imagine they’d be open all night on a random Tuesday in the offseason if there wasn’t a demand for it or they were losing money by staying open.”

As far as an expansion to table games goes, McDermott said it wouldn’t happen overnight, but it appears to be a logical evolution.

“We might be waiting 18 to 24 months for table games, but that’s going to be a big boost,” he said. “The thing is, this really isn’t about gambling any more. Gambling is here and the voters approved it four years ago. This is about the business of gambling. If we have gambling, we might as well maximize the revenue, and I think adding table games does that.”