OCEAN CITY — Delegate Mary Beth Carozza (R-38C) this week continued to go to bat for historic Boardwalk arcade owners battling increased regulations, this time testifying in front of the Governor’s Regulatory Reform Commission at a meeting in Cambridge.
Last year, the Lottery and Gaming Control Agency proposed new regulations that would apply fees and other regulatory requirements on certain Boardwalk-style arcade games that issue prizes of a certain cash value. The proposed regulations would target arcade games such as claw machines, for example, that offer players a chance to win iPods and other prizes that have a wholesale value of over $30.
The proposed regulations would not target skee ball and other games that issue tickets that are accumulated for the chance to win larger prizes when certain point values are reached. The regulations, if approved, would apply to the defined machines statewide, although their impact would most acutely be felt on the Boardwalk in Ocean City with its historic arcade games enjoyed by families for generations.
Last year, a campaigning Governor Larry Hogan toured Boardwalk arcades and vowed to oppose the new regulations on certain arcade games if elected. Once elected, Hogan was able to get the regulations pulled for further impact studies. However, it remains uncertain if similar legislation will resurface next year, and despite the governor’s efforts and promises from state gaming officials, the threat remains clear and present.
A major plank in Hogan’s campaign was reversing some of the onerous regulations on the private sector that have gained Maryland the reputation as one of the toughest state’s in which to do business. Hogan promised to pore over state regulations on the private sector with a fine-toothed comb and see where any relief could be found.
To that end, earlier this year Hogan announced the formation of his new Regulatory Reform Commission. The commission met on Tuesday in Cambridge and Carozza was invited to testify on behalf the Ocean City Boardwalk arcade owners threatened by the proposed regulations.
“As a Delegate representing Worcester and Wicomico Counties, I am here today in support of Ocean City’s family amusement and arcade business owners and our efforts to ensure that the regulations proposed by the previous administration are not moved forward in the future,” she said.
Carozza testified on Tuesday the embattled arcade owners have been waging the war against the proposed regulations through three sessions.
“Our local arcade owners have been opposing these regulations for the past three years,” she said. “Often, they have had to take time away from running their own business in order to fight these regulations and in an effort to save their business,” she said. “When proposed regulations have that kind of impact, it is not right and should be a concern to all of us in public service.”
Like Hogan, Carozza has visited Boardwalk arcades first hand to gain an understanding of the potential impact of the proposed regulations. Also like Hogan, she stands resolute against any similarly proposed regulations in the future.
“Our strong opposition is based on personal visits with several local arcade operators who told us that the regulations as first proposed would prohibit our Ocean City arcade owners from continuing their operations as they are permitted to do so today,” she said. “These draft regulations did not appear to differentiate between legitimate family arcade centers and illegal gaming operations. There is no reason to change the history and tradition of the Boardwalk arcades.”
According to Carozza, new Lottery Director Gordon Mendenica has said any new regulations dealing with amusement devices would carve out historic arcade operators, which would include the Boardwalk and other Maryland family arcade owners.
Carozza said her colleagues from the Lower Shore in the House and Senate were united in their efforts to protect the arcade owners and all small business owners from undue increased regulations.
“We in the Shore Delegation will continue to work with our local arcade owners, the Ocean City Chamber of Commerce and the new Maryland Lottery director to ensure that we protect the local family arcade owners from any regulations that would have a negative impact on the current way they do business,” she said.
The delegate praised the shared efforts of Hogan and the new Lottery Director for their understanding of the complexities of the Boardwalk arcade business and their impact on generations of visitors to the resort.
“We are grateful to Governor Hogan, his new Lottery Director for taking the time to understand how these initial regulations would have had a devastating impact on our local family arcade businesses and would have made it very difficult for us to carry on our Ocean City arcade traditions.”
