Casino revenues projected by lawmakers seeking to legalize gambling are rarely met, leaving states such as Maryland falling hundreds of millions of dollars behind their expected casino profits.
Eleven of 13 states that have legalized casinos or lotteries in the last decade have not reached revenue targets promised by politicians and investors, according to an investigation by Stateline, a Pew Center on the States publication.
Opinions vary as to why states such as Kansas, Florida and Pennsylvania have fallen behind — some blame the economy, while others point to cannibalism among states where lawmakers see casino revenue as an answer to budget woes.
Maryland may be the most troubling case, according to Frank Fantini, president of Fantini Research, a publishing service for the gambling industry.
The state set up a tax policy too restrictive to attract casino investors, he said. Slots operators keep only 33 percent of all revenue.
“They botched their opportunity to create an entertainment industry worse than any other state,” Fantini said. Maryland’s two casinos have generated $103 million as of fiscal 2011, according to the Maryland State Lottery Agency. The figures easily fall short of the $660 million projected annually once all five approved slots parlors are open.
Some experts find it laughable that Maryland lawmakers are considering another gambling site — a $1 billion casino in Prince George’s County — while struggling to support the state’s two open casinos.
Ocean Downs in Worcester County projects $2 million in losses in its first year of operation, according to General Manager Joe Cavilla.
“You really got to have rocks in your head to think about a $1 billion casino in any state right now, because you’re not going to get a good return on it,” said Alan Woinski, president of Gaming USA Corp., an industry newsletter. – Ben Giles
