The American Gaming Association issued a detailed statement in opposition to a recent article in the Baltimore Sun that suggested the casino industry in Maryland has not lived up to its promises to generate more than $1 billion in tax revenue. The article particularly cited a lack of funding for education, which originally was the intended target of casino revenues.
AGA Vice President of Public Affairs Erik Balsbaugh offered a point-by-point rebuke to the Sun article.
“Even as casinos in Maryland have gone above and beyond to serve as strong community partners and pay far more than their share in taxes, some casino critics cannot overcome their opposition to gaming,” said Balsbaugh. “However, it’s time to look at the facts and recognize the role gaming is playing in providing careers for thousands of workers, supporting local small businesses and yes, supporting public education through unmatched tax revenue, just as the industry promised it would. We’re pleased to play this important role, but how elected officials choose to spend the revenue is out of our hands.”
The Sun reported that “in the seven years since the first of Maryland’s six casinos opened, they have pumped $1.7 billion into the state’s Education Trust Fund—the financial windfall that advocates for gambling promised would go to the state’s public schools.”
The AGA’s point-by-point fact check emphasized that the state’s casinos are not responsible for directing where the state spends the revenue it provides.
“‘While gambling was sold as a way to bring in more money for education, it really hasn’t been putting more money in schools,’ said Benjamin Orr, director of the Maryland Center on Economic Policy.
“FACT CHECK: Casinos are not responsible for where gaming tax revenue ends up after the government collects it.
“Former Del. Heather Mizeur, a Democrat who opposed casino gambling when she was in the General Assembly, said it’s now ‘up to the legislature to try to fix the governor’s poor budget decisions. Governor Hogan’s budget does exactly what I had feared most when I was working against the casino ballot initiative—it does a bait-and-switch on the public, breaking a promise that was made by the initiative’s supporters,’ Mizeur said.
“FACT CHECK: Casinos have more than upheld their end of the bargain.
‘State Comptroller Peter Franchot opposed casino gambling in Maryland. ‘People ask me often around the state, “What happened to the casino money?”’ he said. ‘And I don’t have a good answer for them. It just disappears into the general fund.’ … It was a fiscal fairy tale from the start,’ he said.
“FACT CHECK: Again, casinos have more than upheld their end of the bargain. Casino money is supporting education, infrastructure, small business grants and many other programs throughout the state of Maryland.
“Bebe Verdery, director of the Education Reform Project of the ACLU of Maryland, said casino revenue should be doing more for education in the state. ‘Maryland school funding falls over $1 billion short of what the education formula says students need,’ she said. ‘Casino operators are receiving higher-than-expected, record profits. In this time of fiscal distress for Baltimore and other schools, why can’t part of the solution be casinos sharing more of their excess profits?’
“FACT CHECK: Casinos in Maryland pay among the highest tax rates of casinos in any state—up to 66 percent—and contribute more than their fair share to Maryland’s tax coffers. The industry is proud to be a strong community partner.”
