Slots knots

Slot-machine woes in Maryland

Date published: 4/2/2009

AFTER YEARS of heated debate and two statewide referendums, Maryland voters last fall approved a constitutional amendment opening the door to slot machines. Boosters projected a $1.3 billion windfall that would replenish state coffers and lure Marylanders back from gambling venues in nearby states. Now, like most places that bet on gambling as a short-term cure-all, the Old Line State is having second thoughts.

Gambling revenue is declining nationwide. In Las Vegas, it's down 11 percent, while Atlantic City in Februrary reported a 19 percent decline, the sharpest ever: Three Trump casinos there are filing for bankruptcy. Also, the Mississippi Band of Choctaw Indians is laying off 570 non-tribal staff members in two casinos it owns.

So it was, perhaps, not the best time for Maryland to choose to join Pennsylvania, Delaware, and West Virginia in gaming. First, bids to run the now-approved slots were fewer than expected. Then many bidders got disqualified. The anticipated venue at Laurel Park, one of the state's struggling horse tracks, failed when the track owners neglected to pay the required licensing fee.

The last option standing--a casino next to the Arundel Mills mall--awaits approval by the Anne Arundel County Council. Do residents want a gambling venue next to a family-oriented mall? Many don't. The council's vote next week will be close.

Gambling is a short-term fix for flagging revenues that can initiate long-lasting problems. Earl Grinols, a Baylor economics professor who accepts no funding from pro- or anti-gambling parties, notes that the social costs of casino gambling are three times the revenue it generates. More suicides, crimes, divorces, and gambling addictions plague casino-hosting counties.

The failure of Maryland's slots to obtain liftoff may actually be a good thing. Once states get hooked on gambling for revenue, all bets are off.

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Date published: 4/2/2009