Sunday, August 19, 2012

How will YOU vote on the Casino Referendum?

Did you even know that there was a special session of our Maryland State Legislature?  Did you know we the residents took the hit for that special session for two issues:  Pit Bulls and the Expansion of Casinos by opening one in Prince George's County.

Below is our Delegate Doyle Niemann's take on this issue, why and how he voted.


A Disappointing Special Session

On Tuesday night, slightly before midnight, the second special session this year of the Maryland General Assembly came to an end.  It was not one of our better moments.
This session was called for two purposes. 
·         First, to correct problems created by a court decision that declared pit bulls to be inherently dangerous. This meant landlords could be held liable for any harm they cause. As a result, the owners of rental properties are facing loss of insurance and pet owners may have to give up their dogs.
·         Second, to consider a proposal to expand gambling to include table games and a new casino in Prince George's County. 

No Action on Dogs

On the dog front, we failed to do anything.  The Senate passed a bill that abolished Maryland’s long-standing policy requiring proof that a dog is dangerous before an owner or landlord can be held liable for damages.  The House passed a narrower bill.  But in the craze over gambling nothing was done to reconcile the two.

Concessions and Give-Aways on Gambling

On gambling, a poorly crafted bill passed by the narrowest of margins.  Because I believe it will cause lasting damage to Maryland consumers and communities, I voted against it.
The problem the casino owners and their supporters had was that they didn’t have the votes to pass their bill on its merits.  So they had to make big concessions and deals to get the 71 votes they needed.
To appease existing casino owners, the leaders in the House slashed the amount of money going to the state’s Education Trust Fund, giving much more to the casino owners.  For “Maryland Live!” in Anne Arundel County, the share going to education was cut from 67% to 51%, with the possibility of another 2% reduction in the future.  For the proposed facility in Baltimore, the share for education was cut from 67% to 54%, with the possibility of a cut to 51% in the future. The casino owners get the rest.
But that was not enough. Casinos will now be able to operate 24 hours a day, 365 days a year.  The late hours won’t attract many “recreational gamblers,” but they will make it easier for the desperate and the addicted to lose their money.  That’s a big dollar gain for the casinos but a loss for Maryland families.
And still more, the casino owners will now be allowed to keep 80% of the proceeds from unlimited table games.  In 2017, that would be $255 million to the owners but a credit of only $50 million for education.

Adding It All Up: A Bad Deal

Adding it all together, with the increased payouts to owners and the reduction in the share for education, the 24-hour operation, and table games, in 2017, the Education Trust Fund will get less than $40 million more from the expansion of gaming.  The owners, on the other hand, will get a whopping $435 million on top of what they already get.  That is more than double what they would have received if we had left things as they are.
Looked at another way, under this bill, Maryland families will be allowed (encouraged even) to lose more than half a billion dollars ($577 million) in additional money at the casinos to gain the Educational Trust Fund less than $40 million in new money.[1]
I do not believe this makes economic or social sense.  That is why I voted against the bill.

Neighborhood Slots and More Questionable Deals

In one of the most disturbing deals to win votes, a floor amendment was adopted that allows entities that declare themselves to be “veterans” organizations to apply for up to five slot machines.  That will put gambling within reach of virtually every neighborhood in the state (except for Montgomery County, whose leaders cynically exempted themselves out).
In Prince George's County alone, 26 VFWs and American Legions could qualify for five slot machines each.  But the deluge of slots isn’t likely to be so limited.  Given the poor definitions in the bill, the actual number of eligible organizations and slot machines could be many times higher.  (You can be sure that those looking for a quick buck will figure out how to use this to their advantage.)
I led a floor fight on this amendment but lost after the Speaker refused to allow a recorded vote.  I believe this proposal alone could result in the placement of thousands of slot machines in neighborhoods around the state – with all the negative consequences that can bring.
Local communities where casinos are located get money under the bill.  That is one of the stated reasons County Executive Baker pushed so hard for a casino in our county.  In our case, this could be as much as $16 million.  But to win a vote in committee, 40% of that money must go just for infrastructure along Indian Head Highway.
To win some Baltimore votes, House leaders also agreed to a provision that will make it harder to eliminate illegal slot machines in bars, restaurants and other locations in Baltimore County and City.  This overturned a decision the legislature made in January.  Its supporters believe it will open the door to an expansion of neighborhood-based slots in those areas.

How to Vote in November

The real damage caused by the bill, which has now been signed into law by Governor O’Malley, does not come from the addition of a Prince George's County casino, whether at National Harbor or elsewhere.  It comes from the changes in hours, the changes in formulas, the addition of table games, and the expansion of non-casino slots into neighborhoods.  All of this is either in effect now or will go into effect if the package is approved by voters statewide.
We face a dilemma. If Prince George's County voters do not approve the bill in November, no casino will open here.  This opens the all-too-likely possibility that some of the casino interests will push Prince George's voters to vote no, while encouraging state voters to vote yes.  For them, that would be the best of all worlds: they avoid competition but get the benefit of all the concessions and giveaways.
As a county, we have been placed in a no-win situation.  We have lost the critical battle, which had to do with the expansion of gambling on our borders.  We must now think hard about whether to vote yes or no in November.
 
Delegate Doyle Niemann
Maryland House of Delegates, District 47

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