Fly the friendly slots; New tax takes aim at slot routes

Unlike most states, Maryland hasn’t hit the saturation mark and a bill to put a slot route into Thurgood Marshall Airport will probably have little effect on that. The slots will Great_Seal_of_Maryland_reverseonly be accessible to ticketed passengers, with the idea being to ‘tax’ out-of-state travelers for Free State infrastructure improvements. Not only has the airport stopped opposing the concept but the House Ways & Means Committee has new 13 members, at least some of whom could be receptive to the idea, which has been killed annually for the last six years, like some sort of legislative skeet shoot.

According to the Baltimore Sun, the city’s airport would — if the legislation is passed — have more slot machines than McCarran International Airport. Look to thy laurels, Michael Gaughan! Paradoxically, chief proponent Delegate Eric Bromwell said, “We don’t want to be Nevada. We don’t want these to line the terminals as you’re walking through BWI.” At least the passengers-only access should allay fears of competition at Horseshoe Baltimore and Maryland Live, which sit on opposite sides of the airport.

HoganMaryland Aviation Administration Chief of Staff Dale Hilliard said, “We’re not opposing it, we’re not supporting. The new administration wanted to take a look at everything.” Playing his cards closer to the vest is Gov. Larry Hogan (R, right), who says he doesn’t want to weigh in on the bill until it’s nearer his desk. However, Hogan has effectively defunded some transportation projects by lowering gas taxes, so he could view Bromwell’s proposal as a painless alternative. As the latter observed, “The idea behind this is to capture money from people who are not Maryland residents. You have a new governor who wants to raise revenue without raising taxes.”

Even if Hogan and the Lege are sold on the idea, it would still have to face the Maryland electorate in 2016, although voters have been generally receptive to gambling.

* When looking for new tax revenue in Nevada, politicians always attack the soft underbelly: gaming, in whose defense no one arises (even if it metaphorically pays to keep the lights on). sandoval-markellGov. Brian Sandoval (R, right, with the good hair day) has proposed a tax on restricted gaming-license holders — read: slot routes — if your business has either 500 machines or more than $10 million in revenue, you’re in the cross-hairs. This could be bad news for Dotty’s, Golden Gaming or JETT Gaming (the Herbst family) but so far the only vocal protester seems to be Century Gaming Technologies (formerly United Coin), which has 3,000 machines in the field.

Slot-route operators could either resign themselves to a smaller share of the revenue pie they share with the convenience stores, restaurants and other businesses that lease them space (unless, like Golden and Dotty’s they own the whole enchilada) or have to renegotiate how the revenue is split. The legislative battle comes as Century is rolling out a new product line — including Aristocrat Technologies bartop machines and new Gambler’s Bonus applications. It’s good to know that CEO Steve Arntzen isn’t letting that possible new levy crimp his style.

This entry was posted in Aristocrat, Cordish Co., Dotty's, Golden Gaming, Harrah's, Maryland, Michael Gaughan, Politics, Taxes, Technology, Transportation. Bookmark the permalink.