Gambling workgroup falters

The Workgroup to Consider Gaming Expansion failed to reach a consensus yesterday, as the likelihood of a second special session retreated.  The sticking point appears to be whether to keep the 67 percent tax rate on casinos or reduce it. Members representing the House of Delegates were willing to support a sixth casino, if it delayed opening until 2016 and if the tax rate remained the same.  While supporters of a casino at National Harbor were willing to delay its opening, they argued that it only made business sense if the tax rate were lowered.

However, there was significant agreement on other issues, including:

• Allowing table games such as blackjack and poker.  This could net the state an additional $51 million, and create 1,900 jobs.
• Transferring ownership of slots machines from the state to the operators. This would save Maryland about $80 million annually.
  
• Establishing an independent gambling commission to oversee casino operations, separate from the lottery commission.
• Ending restrictions on casinos' hours of operation.

The consensus suggests some or all of these issues could be addressed in the 2013 regular legislative session. The 2013 legislature could act on the recommendations regarding ownership of the machines, the organization of the regulatory commission, and hours of operation. Of course, those are not the big issues. The legislature could also act to adjust the tax rate on gaming proceeds, which is one of the big issues.

However, any expansion of gaming - either to a new location or for table games, requires approval by the voters in a referendum. If there is indeed no special session prior to the November election, those issues will need to wait for the next statewide general election in November 2014.