The Potomac Highlands Dispatch - the online newspaper

Slots at Rocky Gap could be in jeopardy
Myers: 'I believe those machines are at risk'
Edwards: ‘back to the drawing board’
Kelly: ‘going to be difficult to catch up’

By The Potomac Highlands Dispatch
CUMBERLAND, Dec. 7 -Delegate LeRoy Myers is not a fan of slots or gambling in general.

The District 1C Republican said the people have spoken, however. Myers said Tuesday during the annual pre-legislative breakfast at the Cumberland Holiday Inn that he’s concerned that potential success at four other voter-approved slots locations across Maryland could jeopardize the placing of slots at Rocky Gap State Park in eastern Allegany County.

The breakfast event is coordinated by the Legislative Committee of the Allegany County Chamber of Commerce. Nearly 55 people attended the event, which aims to brief business professionals on the hot topics in Annapolis and what they might expect from their elected officials during the legislative session.

Rocky Gap Lodge & Golf Resourt was one of five approved by voters in a November 2008 referendum. To date, two rounds of requests for proposals have yet to attract a qualified, successful bidder for the westernmost location.

Up to 1,500 machines could be placed at Rocky Gap. Lawmakers passed this passed session in the Maryland General Assembly amendments to current law to allow a greater take by the gambling company - to 35.5 percent from 33 percent - and to temporarily house the slots in the existing lodge while a new, separate slots parlor was being built.

Myers said he feels up to 500 machines should be permitted in the existing lodge for up to three years - and only then should the clock start ticking on the gaming company’s time to build a new slots parlor.

“I don’t believe the General Assembly is going to allow us to make it more profitable” for a company to bring slots to Rocky Gap, Myers said, “when these machines show they can turn a profit in the other places” at the current tax rates.

He said that while Rocky Gap is, by law, one of the five approved sites, the 1,500 machines allotted for Allegany County could be used elsewhere. And the success of those other locations, as time passes, could pressure lawmakers to approve the relocation of those machines to other, more profitable areas. That would ensure the state’s 67 percent take of gaming revenue to be a portion of something rather than nothing.

“The state doesn’t lose,” Myers said. “I believe these machines are at risk.”

State Senator George Edwards, chairman of the District 1 delegation to Annapolis, said slots should have - and could have - been in Maryland eight years ago if it weren’t for “political bickering.”

But Edwards said he didn’t think lawmakers would improve upon the 35.5 percent take that a casino operator at Rocky Gap can earn.

The consensus among state politicians, he said, was they “felt that was enough.”

But after a second round of RFPs that failed to attract a single qualified bid, “we’re back at the drawing board,” Edwards said.

It might not matter, said Delegate Kevin Kelly. The District 1B representative said while Maryland is struggling to successfully launch slots, surrounding states have table gaming along with slots.

“It’s going to be difficult to catch up,” Kelly said.

And Pennsylvania offers casinos a larger piece of the pie, Kelly noted. There, Kelly said the state takes only 14 percent of table gaming revenue and just 52 percent of slots revenue.

“If you have a caravan of 10 people and only one of them wants to play table gaming, where do you go,” Kelly asked rhetorically. “You accommodate everyone” and bypass the site that offers only slots.

Edwards said he hoped lawmakers and the state slots commission, which is spearheading the slots initiative in Maryland, could agree on a new proposal. He said a third RFP could be solicited next summer.