Lawmakers in Maryland are continuing to tinker with the state’s gaming law, with bills that favor both the operators and the government.
Last week, the Maryland House of Delegates gave preliminary approval to a bill that would give casinos a break on taxes paid on table games. Currently, 20 percent of table game revenues go to the state, and casinos that lose money on any given day has two consecutive days to recoup the losses, or the amount of the losses are recorded as revenue, and taxed at 20 percent.
The bill passed by the Maryland House would extend the period casinos can recoup losses to seven days. Lawmakers predict it will lead to an increase in casino revenue of an estimated $800,000 in the first year, although the state’s Education Trust Fund would be short by around $150,000.
“It allows the casinos to cover their losses out of the Education Trust Fund,” said the bill’s sponsor, Del David Moon, on the House floor.
Sponsors sold the bill by stressing the extra revenue will allow Maryland casinos to draw more high-roller business to the tables.
“It is the intention if we extend the number of days then the casinos will be able to take greater risks and realize greater rewards for it,” Del. Eric Ebersole told Moon in floor debate, according to Marylandreporter.com. “The two days didn’t provide enough incentive for the (casinos) to bring in the people who were the high rollers. They want us to help them assume that risk.”
Meanwhile, the state Senate began debate on SG 1122, which would create a constitutional amendment requiring all casino revenues in the Education Trust Fund be frozen in a “lockbox” to assure they go for state education appropriations, instead of being available for other general state spending as now. That bill passed the Senate Budget and Taxation Committee by a unanimous vote last week.
