Maryland’s five casinos have asked state lawmakers to lower the average minimum payback percentage threshold of slot machines from its current 90 percent to 85 percent.
The request was one of a group of recommendations casino operators recently submitted to the Maryland Lottery and Gaming Control Agency. The requests were made public by the Baltimore Sun, which had requested their release under the Maryland Public Information Act.
Maryland, which imposes one of the nation’s highest slot revenue taxes at 67 percent, is seeking the change to increase revenue both to the casinos and the state. The 90 percent payback minimum—or, 15 percent average hold for the casinos—is similar to the individual machine payback required in New York.
The state’s required minimum payback for individual machines is 87 percent—higher than the state’s closer neighbors Pennsylvania, which requires an 85 percent payback minimum, and New Jersey, which requires at least 83 percent of slot wagers be returned as winnings to players. In the recommendations, the casinos are requesting that number also be reduced to 85 percent.
“The patrons would end up receiving less,” state Assistant Director for Gaming Charles LaBoy told the Sun. “But the flip side is that the hold would increase. So, there is a potential revenue upside to the state on this.” The state could generate additional revenue in the tens of millions of dollars annually, the Sun estimated.
“It’s really about flexibility, and how we can change and create unique and distinct gaming opportunities at our casino,” Robert Norton, president and general manager of Maryland Live!, told the newspaper.
